Coffee Day Enterprises Limited (CDEL) has announced a change in its shareholding structure, with the transmission of shares belonging to the late promoter V G Siddhartha to Mrs. Malavika Hegde. This development marks a transition in the ownership of the company following the demise of its founder.

Key Details of the Share Transmission

• 9,99,658 equity shares, representing a 0.47% stake, were transmitted from the late promoter VG Siddhartha to Malavika Hegde.
• This transmission has increased Malavika Hegde's shareholding from 0.73% to 1.20%.
• Consequently, VG Siddhartha's holding has been reduced from 0.57% to 0.10%.
• The company received an intimation from the promoter regarding the share transmission.
• Coffee Day Enterprises has informed both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) about this development.
• The communication to the stock exchanges was made by Sadananda Poojary, the Company Secretary and Compliance Officer of Coffee Day Enterprises Limited.

Regulatory Compliance

According to the LODR (Listing Obligations and Disclosure Requirements) data, the share transmission is in compliance with:

• SEBI (Prohibition of Insider Trading) Regulations, 2015
• SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

The company has submitted the necessary intimation letters and documents to the stock exchanges for record purposes.

Implications for Coffee Day Enterprises

This share transmission represents a shift in the company's ownership structure. Mrs. Malavika Hegde, who has now received the shares, may play a role in the future direction of Coffee Day Enterprises. The move ensures continuity in the promoter's stake and could provide stability to the company's governance structure.

Coffee Day Enterprises Limited, known for its chain of Café Coffee Day outlets, has been navigating challenges since the passing of its founder, V G Siddhartha. This share transmission is a step in the company's efforts to maintain operational continuity and shareholder confidence.

Coffee Day Enterprises , the company behind the popular Café Coffee Day chain, has reported a remarkable turnaround in its financial performance for the first quarter. The company has successfully transformed its bottom line, moving from a loss to a substantial profit.

Profit Surge

Coffee Day Enterprises reported a net profit of ₹28.2 crore for the quarter, marking a significant improvement from the ₹11.5 crore loss recorded in the same period last year. This impressive shift demonstrates the company's ability to navigate challenges and implement effective strategies for growth.

Revenue Growth

The company's revenue also saw an uptick, rising to ₹269.00 crore from ₹260.00 crore in the corresponding quarter of the previous year. This 3.46% increase in revenue indicates a gradual recovery in the company's operations.

EBITDA Performance

One of the most notable aspects of Coffee Day Enterprises' quarterly results was the substantial surge in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The company's EBITDA jumped to ₹32.20 crore, a significant increase from ₹3.74 crore in the same quarter last year. This nearly 9-fold increase in EBITDA underscores the company's improved operational efficiency and cost management.

Margin Considerations

Despite the overall positive results, it's worth noting that the EBITDA margin saw a decline. The margin dropped to 11.96% from 14.36% in the previous year. This decrease in margin percentage, despite the increase in absolute EBITDA value, suggests that while the company has grown its operations, it may be facing some pressure on profitability ratios.

Summary

Coffee Day Enterprises' Q1 results paint a picture of a company on the path to recovery. The shift from loss to profit, coupled with revenue growth and a substantial EBITDA increase, indicates that the company's turnaround strategies are yielding positive results. However, the declining EBITDA margin highlights the ongoing challenges in maintaining profitability levels amidst growth.

As Coffee Day Enterprises continues to navigate the competitive landscape of the coffee and quick-service restaurant industry, the sustainability of this positive momentum in the coming quarters will be of keen interest to investors and market watchers.