PL First Cut - Restaurant Brand Asia 1Q24

PL First Cut – Restaurant Brand Asia 1Q24 – Amnish Aggarwal – Head of Research, Prabhudas Lilladher Pvt Ltd

Restaurant Brand Asia 1Q24: Narrows losses, Margins inline

(CMP: Rs119|Accumulate)

India Business

> Revenues grew by 25.3% YoY to Rs4.2bn (PLe: Rs4.3bn)

> Gross margins expanded by 12bps YoY to 66.5% (Ple: 66.7%)

> EBITDA grew by 45.9% YoY to Rs484.7mn (PLe:Rs539mn); Margins expanded by 162bps YoY to 11.5% (PLe:12.5%)

> Loss stood at Rs-221.5mn in 1Q24 vs 227mn in 1Q23 (PLe:Rs-166mn)

Indonesia Business

> Revenues grew by 23.9% YoY to Rs1.9bn

> Gross margins contracted by 128bps YoY to 58.6%

> EBITDA loss stood at Rs1.6mn vs Rs40mn in 1Q23, Margins expanded by 254bps YoY to -0.1%.

> Loss stood at Rs319mn vs Rs282mn in 1Q23.

We have a ACCUMULATE rating on the stock with a SOTP target price of Rs146