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Coffee Day Enterprises Q1 profit zooms to Rs 1,567 cr


Coffee Day Enterprises Q1 profit zooms to Rs 1,567 cr
Image Credit: Pixabay

Coffee Day Enterprises on Wednesday reported a multi-fold jump in consolidated net profit at Rs 1,567.20 crore for the June quarter, helped by an exceptional gain from stake sale in IT firm Mindtree. The company, which runs Cafe Coffee Day chains, had reported a profit of Rs 21.06 crore for April-June period a year ago, Coffee Day Enterprises Ltd (CDEL) said in a regulatory filing.

Coffee Day Enterprises also said there would be delay in announcement of results for the second quarter ended September. Revenue from operations was down at Rs 941.69 crore during the period under review as against Rs 966.04 crore in the same period of the previous fiscal.

"EBITDA for the period Q1FY'20 includes exceptional gain amounting to Rs 1,777 crore and PAT for the period Q1FY'20 includes exceptional gain amounting to Rs 1,659 crore primarily on account of sale of equity stake held in Mindtree," the company said. Total expenses were at Rs 1,144.60 crore during the period as against Rs 981.16 crore earlier, up 16.65 per cent.

Revenue from coffee and related business was at Rs 459.68 crore in the June quarter, down 2.57 per cent as against Rs 471.85 crore in the year-ago period. Revenue from integrated multimodal logistics segment was at Rs 362.07 crore during the period as against Rs 323.51 crore in June quarter 2018.

Financial services' revenue was at Rs 67.18 crore, down 47.71 per cent from Rs 128.48 crore in the year-ago period. Revenue from leasing of commercial office space was at Rs 45 crore as against Rs 36.75 crore earlier.

Besides, CDEL said it is awaiting the report from Ashok Kumar Malhotra, retired DIG of CBI, who was appointed to investigate into the circumstances leading to statements made in a letter by late V G Siddhartha dated July 27, 2019 and to scrutinize the books of accounts of the company and its subsidiary. "The said assignment is under progress and is likely to take few more weeks for completion," said CDEL.

"Hence, there will be a delay in submission of unaudited financial results (with the limited review by the auditor) as stipulated under Regulation 33 of Listing Regulations for the quarter ended June 30, 2019 and 2nd quarter, half year ended September 30, 2019 within the prescribed statutory timelines." Malhotra is looking into the letter purportedly written by Siddhartha, days before he went missing in July.

The company has submitted unaudited management compiled standalone and consolidated profit and loss account and segment wise performance for the June quarter along with the financial highlights. In August, CDEL had said it was postponing its earnings announcement for the June quarter due to certain unavoidable circumstances.

Moreover, CDEL said the completion of transaction to transfer the assets of Global Village Tech Park in Bengaluru to Blackstone and Salarpuria Sattva Group at an enterprise value of Rs 2,700 crore is subject to various approvals, including regulatory. The company's board had approved the deal on August 14, 2019 and the company has executed definitive agreements with entities concerned.

CDEL has also authorised Malavika Hegde, Director or Chief Financial Officer of Coffee Day Global Ltd to finalise the appointment of required agencies for conducting financial, legal, commercial due diligence towards disinvestment of stake in the company. In a separate filing, CDEL informed that its board has accepted the resignation of Sanjay Nayar, who had resigned vide his letter dated November 11, 2019.

CDEL has been trying to divest its assets to pare debt after the death of its promoter V G Siddhartha. His body was found in the Netravati river in Dakshina Kannada district of Karnataka on July 31, a day after he went missing. Shares of CDEL on Wednesday settled at Rs 43.30 per scrip on the BSE, up 4.97 per cent.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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