Devyani International’s shares were in the red, breaking a four-day gaining streak, after the a major shareholder sold a large chunk of its stake in the fast-food restaurant operator.
What Happened: Yum Restaurant India Private Ltd’s completely exited the Indian firm, selling its 4.4% stake in the KFC operator, marking the transaction at ₹871 crore. Nippon India Mutual Fund acquired 80 lakh shares, representing a 0.66% stake, at an average price of ₹164, according to stock exchange data.
Devyani International reported a significant 87% decline in profit in the third quarter, attributing it to subdued consumer sentiment. The company, which operates KFC and Pizza Hut outlets, saw its consolidated net profit plummet to ₹9.6 crore from ₹71.6 crore in the corresponding period last year.
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Additionally, the company’s EBITDA saw a 17% decrease, amounting to ₹146 crore compared with ₹175 crore in the previous year, with EBITDA margins recorded at 17.3%.
Devyani International primarily focuses on developing, managing and operating quick-service restaurants and food courts for renowned brands such as Pizza Hut, KFC, Costa Coffee and Vaango.
Price Action: Devyani International’s share price was down 0.99% at ₹165.40 around noon on Thursday.
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