Jubilant Food Works

Preparation of FPO(Follow-on-Public Offer)

Final Evaluation Assignment

Submitted by: Ashutosh Kumar Singh

Enrol. Number: 20BSP0432

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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.
z 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.”
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Pandemic Takeaways

 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.