Shares of Jubilant FoodWorks , the master franchisee for Domino's Pizza in India, saw an uptick in trading on Monday following reports of a potential Goods and Services Tax (GST) waiver on pizza bread. The news, initially reported by CNBC Awaaz, sparked investor interest in the quick-service restaurant chain.

Potential Tax Relief

According to the report, Jubilant FoodWorks could benefit from a GST waiver specifically on pizza bread. This development, if implemented, could potentially reduce costs for the company and possibly lead to more competitive pricing for consumers.

Market Reaction

While the exact details of the potential waiver are yet to be officially confirmed, the market responded positively to the news. Investors appear to be optimistic about the possible financial implications for Jubilant FoodWorks, which operates over 1,800 Domino's Pizza outlets across India.

Company's Recent Activities

In related news, Jubilant FoodWorks recently conducted a postal ballot to seek shareholder approval on certain matters. According to the Latest Operational Data Report (LODR) filed by the company:

• The company initiated a postal ballot process on September 1, with the voting period set from September 2 to October 1.
• The postal ballot notice was sent electronically to shareholders whose email addresses were registered with the company or depository participants as of August 22.
• The results of this postal ballot are expected to be announced shortly after the voting period concludes.

Industry Implications

If implemented, a GST waiver on pizza bread could have broader implications for the quick-service restaurant industry in India. It may lead to similar considerations for other food items and potentially impact pricing strategies across the sector.

As of now, neither Jubilant FoodWorks nor tax authorities have officially commented on the reported GST waiver. Investors and industry observers will be keenly watching for any official announcements or clarifications regarding this development.

Note: Readers are advised to await official confirmation from the company or relevant tax authorities regarding the reported GST waiver.

Jubilant FoodWorks Limited (JFL), a leading food-tech company, has reported robust growth for the first quarter and announced ambitious expansion plans.

Strong Financial Performance

JFL posted impressive financial results for Q1:

• Consolidated revenue grew by 17.00% year-over-year to Rs. 22,609.00 million
• Consolidated EBITDA increased by 14.30% to Rs. 4,380.00 million, with an EBITDA margin of 19.40%
• Profit After Tax from continuing operations rose by 59.80% to Rs. 972.00 million

The company's standalone performance was equally strong:

• Revenue increased by 18.20% to Rs. 17,016.00 million
• EBITDA grew by 16.20% to Rs. 3,233.00 million, with an EBITDA margin of 19.00%

Expansion Plans and Growth Strategy

Jubilant FoodWorks has outlined an aggressive growth strategy:

• The company plans to open 1,000 new stores over the next three years
• JFL aims to achieve 200 basis points margin growth over three years
• A 10-15% annual decrease in store capital expenditure is expected due to efficiency gains

Domino's India Performance

Domino's, JFL's flagship brand in India, showed remarkable growth:

• Revenue increased by 17.70%, driven by strong order growth of 17.30%
• Like-for-Like (LFL) growth stood at 11.60%, with delivery LFL growth at 20.10%
• 61 net new Domino's stores were opened, expanding the network to 2,240 stores across 484 cities

Digital and Delivery Focus

JFL continues to strengthen its digital and delivery capabilities:

• Delivery channel revenue grew by 24.60%, now accounting for 72.90% of the mix
• Monthly Active Users (MAU) for the Domino's app reached 14.70 million, up 21.50% year-over-year
• App installs increased by 19.40% to 12.30 million

International Operations

The company's international business also showed positive results:

• In Turkey, system sales reached Rs. 9,300.00 million, with revenue up 12.40% and a PAT margin of 9.40%
• Domino's Sri Lanka and Bangladesh operations reported revenue growth of 42.40% and 4.30% respectively

New Initiatives and Product Innovation

JFL introduced new products and initiatives to drive growth:

• Launched the new Chicken Burst Pizza, expanding its menu offerings
• Continued progress on the Popeyes brand, aiming to make it India's most loved chicken brand

Management Commentary

Mr. Shyam S. Bhartia, Chairman, and Mr. Hari S. Bhartia, Co-Chairman of Jubilant FoodWorks Limited, commented on the results: "We are pleased with the strong start to the year, marked by healthy top-line growth and disciplined profitability. This performance sets a solid foundation for what we believe will be a high-impact year."

Mr. Sameer Khetarpal, CEO and MD, added: "Q1 has been a stellar start, setting the tone for a dynamic year ahead. We've accelerated menu innovation, significantly expanded the share of our own digital assets and made decisive strides towards achieving 20-minute delivery."

With its strong financial performance, ambitious expansion plans, and focus on innovation and digital capabilities, Jubilant FoodWorks appears well-positioned for continued growth in the food-tech sector.