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Yahoo
15-05-2025
- Business
- Yahoo
Westlife Foodworld Ltd (BOM:505533) Q4 2025 Earnings Call Highlights: Navigating Growth Amidst ...
Same-Store Sales Growth (SSSG): 0.7% in Q4; adjusted SSSG excluding leap year impact at 1.7%. Consolidated Sales: INR6 billion, up 7% year-on-year. On-Premise Business Growth: 8% year-on-year. Off-Premise Business Growth: 5% year-on-year. Full-Year Sales: INR24.9 billion, growing by 16% on a three-year CAGR basis. EBITDA: INR3.3 billion, growing by 17% on a three-year CAGR basis. Cash Profit After Tax (PAT): INR1.9 billion, growing by 14% on a three-year CAGR basis. Gross Margin: Approximately 70% in Q4. Restaurant Operating Margin: Decreased by 30 basis points year-on-year. Operating EBITDA Margin: Decreased by 50 basis points year-on-year. Cash Profit After Tax in Q4: INR469 million or 7.8% of sales. New Restaurants Opened in FY25: 47 new restaurants. Total Restaurants as of March 31: 438 across 69 cities. Net Debt Position: Stable at INR90 crores; net debt to equity at 0.15 times. Digital Sales: Accounted for almost 75% of total sales in Q4. Warning! GuruFocus has detected 3 Warning Sign with BOM:505533. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Westlife Foodworld Ltd (BOM:505533) reported a 7% year-on-year increase in consolidated sales, reaching INR6 billion. The company opened 47 new restaurants in FY25, aligning with their expansion guidance. Digital sales accounted for nearly 75% of total sales, driven by self-ordering kiosks and mobile apps. Westlife Foodworld Ltd achieved top ranking in India and fifth place globally in S&P Global's Corporate Sustainability Assessment. The company maintained a stable net debt position with a comfortable net debt to equity ratio of 0.15 times. Same-store sales growth (SSSG) was relatively low at 0.7%, with adjusted SSSG at 1.7% excluding the leap year impact. The food retail sector faced challenges with soft demand and stagnant consumption trends. Restaurant operating margin and operating EBITDA margin dipped by around 30 basis points and 50 basis points year-on-year, respectively. Off-premise sales growth was slower compared to on-premise sales, accounting for 43% of total sales. The company faced inflationary pressures, particularly in commodities like coffee, oil, and cocoa. Q: Can you give some idea about the demand through the quarter? Did you see it accelerating, and do you see that trajectory continuing? A: Akshay Jatia, Whole Time Director: We have been seeing sequential improvement, and our efforts are resulting in traction. While it's too early to call a major recovery, we are confident in achieving mid- to high single-digit same-store sales growth (SSSG) over the next couple of years. Q: What are your thoughts on margins in light of comments by other QSR companies that a 3% to 4% SSSG is required to maintain current margins? A: Saurabh Kalra, Managing Director: While inflation is a reality, we handle it through multiple levers like product mix, pricing, and cost efficiency programs. Despite challenges, we are confident in managing these effectively. Q: How has the SSSG been broken into the number of transactions and average value per transaction? A: Saurabh Kalra, Managing Director: Our growth is primarily driven by volume rather than value, thanks to our value offerings. While we don't provide specific breakups, the growth is largely volume-based. Q: Are you seeing competition emerging specifically in the burger QSR space, and are there signs of consolidation? A: Akshay Jatia, Whole Time Director: Competition has always been present, which grows the market. We don't see anything new in terms of consolidation, but brands like Westlife that stand out will continue to lead. Q: How should one look at the performance going ahead given the favorable base from last year? A: Saurabh Kalra, Managing Director: We focus on gaining traction and maintaining momentum rather than comparing to last year's base. We aim to continue growing and achieving better results. Q: What kind of inflation are you seeing on the store staff level in terms of their salaries? A: Saurabh Kalra, Managing Director: Wage inflation is typically between 5% to 10% year-on-year, which is factored into our projections and remains stable. Q: Are you holding on to the store guidance for 2027, and do you expect an acceleration in store additions? A: Akshay Jatia, Whole Time Director: We continue to hold on to our Vision 2027 guidance of 580 to 630 restaurants by 2027. Q: Off-premise growth has been relatively muted. What steps are you taking to improve growth in this channel? A: Akshay Jatia, Whole Time Director: While delivery growth has slowed, we remain leaders in this category and plan to accelerate growth through partnerships and our own channels. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Economic Times
10-05-2025
- Business
- Economic Times
HPCL and Mahanagar Gas stand out as top picks in a mixed oil & gas landscape; Motilal sees 17-28% upside
Marketing and CGD segments shine amid stable crude, but refining faces pressure from global capacity glut and weaker demand, say experts tracking the sector closely. India's oil and gas sector sees strength in marketing and city gas distribution due to stable margins and volume growth, while refining struggles with overcapacity and weak global demand. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads HPCL: Buy| Target Rs 455| LTP Rs 387| Upside 17% Tired of too many ads? Remove Ads Mahanagar Gas Ltd: Buy| Target Rs 1760| LTP Rs 1368| Upside 28% (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) A combination of favorable crude oil dynamics, stable pricing policies, and volume growth underpins the positive outlook for marketing and CGD segments. However, a glut in global refining capacity and muted demand projections cast a shadow over refining remains the preferred sub-sector, driven by expectations of lower crude oil prices (FY26E: $65/bbl) and stable retail fuel prices. Despite a recent INR2/litre excise duty hike on petrol (MS) and diesel (HSD), marketing margins remain robust at ~INR12/litre, well above our long-term assumption of INR3.3/ resilience, coupled with a healthy 4% annual volume growth, supports earnings visibility for oil marketing companies (OMCs). Private players are capitalizing on strong margins, with their combined diesel and petrol sales surging 19.7% YoY in FY25, outpacing state-run competition intensifies, the sector's earnings face limited near-term risks, with potential upside if crude stays maintaining a neutral stance since November 2023, the CGD segment is now turning attractive. Falling raw material costs, driven by a looming global LNG surplus and lower gas pricing slopes, are expected to boost rising CNG adoption—supported by favorable economics vs. traditional fuels—is likely to sustain volume growth. With compressed natural gas (CNG) demand projected to grow at a steady clip, CGD companies stand to benefit from both margin expansion and volume tailwinds, marking a notable shift in sector refining segment faces challenges as global net capacity additions (0.4/0.95 mb/d in CY25/26) outpace demand, worsened by the International Energy Agency's (IEA) 300 kb/d downgrade to CY25 oil demand Brent prices are forecast at $65/bbl in FY26/27, downside risks persist, potentially denting profitability for upstream players like ONGC and Oil India . Though these firms trade at cheap valuations (0.8x–1.1x FY27E book value), weak realization trends justify sector's near-term fortunes hinge on crude oil trends and policy decisions. While marketing and CGD segments offer growth and margin resilience, refining and upstream activities face structural may prioritize OMCs and CGD players, leveraging their earnings stability, while adopting a selective approach in a volatile macro environment. Risks such as sharper-than-expected crude price declines or policy shifts warrant monitoring, but the current setup favors downstream and gas-focused Petroleum reported EBITDA 61% above estimates, driven by stronger-than-expected GRM of USD8.5/bbl. & marketing margin of INR4.5/lit, leading to PAT of INR33.5b, (+114% beat). We model a marketing margin of INR 3.3/litre for both MS and HSD in FY26/27, while the current marketing margins for MS and HSD are both above INR 10/ identify several key catalysts for the stock going forward: (1) the de-merger and potential listing of its lubricant business, (2) the commissioning of its bottom upgrade unit in 2QCY26, (3) the start of its Rajasthan refinery in FY26, and (4) LPG under-recovery Gas (MAHGL)'s adjusted EBITDA margin stood at INR 8.35/scm, below our estimate of INR 10/scm (reported EBITDA: INR 10/scm). During the quarter, MAHGL added 0.15 million domestic connections and 164 industrial/commercial customers, taking the total to 5, believe MAHGL's EBITDA margin has scope for further improvement, supported by two key factors: (1) the recent CNG price hike of INR 1.5/kg and D-PNG price hike of INR 1/scm, which will aid margins, & (2) declining raw material costs in fall in crude oil & Henry Hub index prices, along with INR appreciation on a QoQ basis, should help lower gas procurement costs going forward. We expect a 10% CAGR in volume over FY25-27.
Time of India
10-05-2025
- Business
- Time of India
HPCL and Mahanagar Gas stand out as top picks in a mixed oil & gas landscape; Motilal sees 17-28% upside
A combination of favorable crude oil dynamics, stable pricing policies, and volume growth underpins the positive outlook for marketing and CGD segments. However, a glut in global refining capacity and muted demand projections cast a shadow over refining profitability. Marketing remains the preferred sub-sector, driven by expectations of lower crude oil prices (FY26E: $65/bbl) and stable retail fuel prices. Despite a recent INR2/litre excise duty hike on petrol (MS) and diesel (HSD), marketing margins remain robust at ~INR12/litre, well above our long-term assumption of INR3.3/litre. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If You Eat Ginger Everyday for 1 Month This is What Happens Tips and Tricks Undo This resilience, coupled with a healthy 4% annual volume growth, supports earnings visibility for oil marketing companies (OMCs). Private players are capitalizing on strong margins, with their combined diesel and petrol sales surging 19.7% YoY in FY25, outpacing state-run firms. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. While competition intensifies, the sector's earnings face limited near-term risks, with potential upside if crude stays subdued. After maintaining a neutral stance since November 2023, the CGD segment is now turning attractive. Falling raw material costs, driven by a looming global LNG surplus and lower gas pricing slopes, are expected to boost margins. Live Events Additionally, rising CNG adoption—supported by favorable economics vs. traditional fuels—is likely to sustain volume growth. With compressed natural gas (CNG) demand projected to grow at a steady clip, CGD companies stand to benefit from both margin expansion and volume tailwinds, marking a notable shift in sector sentiment. The refining segment faces challenges as global net capacity additions (0.4/0.95 mb/d in CY25/26) outpace demand, worsened by the International Energy Agency's (IEA) 300 kb/d downgrade to CY25 oil demand growth. While Brent prices are forecast at $65/bbl in FY26/27, downside risks persist, potentially denting profitability for upstream players like ONGC and Oil India . Though these firms trade at cheap valuations (0.8x–1.1x FY27E book value), weak realization trends justify caution. The sector's near-term fortunes hinge on crude oil trends and policy decisions. While marketing and CGD segments offer growth and margin resilience, refining and upstream activities face structural headwinds. Investors may prioritize OMCs and CGD players, leveraging their earnings stability, while adopting a selective approach in a volatile macro environment. Risks such as sharper-than-expected crude price declines or policy shifts warrant monitoring, but the current setup favors downstream and gas-focused segments. HPCL: Buy| Target Rs 455| LTP Rs 387| Upside 17% Hindustan Petroleum reported EBITDA 61% above estimates, driven by stronger-than-expected GRM of USD8.5/bbl. & marketing margin of INR4.5/lit, leading to PAT of INR33.5b, (+114% beat). We model a marketing margin of INR 3.3/litre for both MS and HSD in FY26/27, while the current marketing margins for MS and HSD are both above INR 10/litre. We identify several key catalysts for the stock going forward: (1) the de-merger and potential listing of its lubricant business, (2) the commissioning of its bottom upgrade unit in 2QCY26, (3) the start of its Rajasthan refinery in FY26, and (4) LPG under-recovery compensation. Mahanagar Gas Ltd: Buy| Target Rs 1760| LTP Rs 1368| Upside 28% Mahanagar Gas (MAHGL)'s adjusted EBITDA margin stood at INR 8.35/scm, below our estimate of INR 10/scm (reported EBITDA: INR 10/scm). During the quarter, MAHGL added 0.15 million domestic connections and 164 industrial/commercial customers, taking the total to 5,105. We believe MAHGL's EBITDA margin has scope for further improvement, supported by two key factors: (1) the recent CNG price hike of INR 1.5/kg and D-PNG price hike of INR 1/scm, which will aid margins, & (2) declining raw material costs in 1QFY26-to-date. The fall in crude oil & Henry Hub index prices, along with INR appreciation on a QoQ basis, should help lower gas procurement costs going forward. We expect a 10% CAGR in volume over FY25-27. ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
