Jubilant Food Works

Preparation of FPO
Final Assignment
Submitted by :- Aman Jakhar (20BSP0203)
Current economic and financial scenario

 Jubilant Foodworks Ltd., incorporated in the year 1995, is a Large Cap company (having a
market cap of Rs 54,144.26 Crore) operating in Tourism & Hospitality sector.
 Jubilant Foodworks Ltd. key Products/Revenue Segments include Pizza, Others, Beverages,
Desserts, Dips, Other Operating Revenue and Others (Traded) for the year ending 31-Mar-2021.
 For the quarter ended 30-06-2021, the company has reported a Consolidated Total Income of Rs
901.35 Crore, down 14.22 % from last quarter Total Income of Rs 1,050.78 Crore and up 124.59
% from last year same quarter Total Income of Rs 401.34 Crore. Company has reported net profit
after tax of Rs 60.50 Crore in latest quarter.
 The company’s top management includes Mr. Shyam S Bhartiya, Mr. Berjis Minoo Desai, Mr.
Ashwani Windlass, Mr. Abhay Prabhakar Havaldar, Mr.Vikram Singh Mehta, Ms. Aashti Bhartia,
Mr. Shamit Bhartia, Mr. Pratik R Pota, Mr. Hari S Bhartia, Ms. Deepa Misra Harris. Company
has Deloitte Haskins & Sells LLP as its auditors. As on 30-06-2021, the company has a total of
13.20 Crore shares outstanding.
Financials

 The Balance Sheet Page of Jubilant Foodworks Ltd. presents the key ratios, its
comparison with the sector peers and 5 years of Balance Sheet i.e. March 2017 to
March 2021.
Growth and Profitability

Investor related parameters….

Growth assumptions
 The company opened 53 new stores during the quarter, including 50 new Domino’s stores and
one new store each for Hong’s Kitchen, Ekdum and Dunkin’ Donuts. It also acquired 32.81%
equity stake in DP Eurasia N.V., an exclusive master franchisee of Domino’s Pizza in Turkey,
Russia, Azerbaijan and Georgia, and announced an agreement to bring Popeyes® to India,
Bangladesh, Nepal and Bhutan.
 For the financial year 2020-21, Revenue from Operations stood at Rs 32,689 million. EBITDA
came in at Rs 7,666 million at 23.5% of revenue — up by 88 bps year-on-year. Profit after Tax
stood at Rs 2,337 million at 7.1% of revenue.
 Commenting on the performance for Q4 and FY21, Shyam S. Bhartia, Chairman and Hari S.
Bhartia, Co- Chairman, JFL said, “We are glad to have transitioned from recovery to growth
phase and concluded the fiscal year on a positive note despite unique challenges posed by the
global pandemic. Our relentless focus on driving customer experience, customer and employee
safety, cost management and productivity, resulted in a strong operating performance in Q4.”
Pandemic takeaways for serving in
future
 Expectations of a strong recovery, an aggressive store-expansion rollout for FY22 and
plans to transition to a food tech company led to a 12 per cent rally in Jubilant Food
Works, the India franchisee for Domino’s. The shift to branded players during the
pandemic, strong execution and growth prospects of the quick service restaurant (QSR)
format is expected to help sustain its growth and profitability going ahead.

 The extent of recovery in the September quarter is a key near term trigger. While sales
were impacted in the first two months of the June quarter, system sales recovered
PURPOSE OF FPO

 A company generally needs a follow-on offering to raise ‘additional capital’ for various
reasons and this goal is achieved by conducting a dilutive FPO where new shares are
offered and new money is generated.

 The issue price for an FPO is mostly lower than the prevailing market price. This is
done by the company to get more and more subscribers to its issue. Lower demand for
the listed shares eventually brings down the market price and levels it with the FPO
issue price.

 Share capital will increase because the company issues fresh capital to the public for
listing.
THANK YOU..!