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CRISIL Ratings reaffirms Jubilant FoodWorks' CP rating at 'A1+' As on : 18-Dec-24  10:18

CRISIL Ratings said that the rating continues to reflect the established market position of JFL in the food service market, robust supply-chain network, over 27 years of experience in the business, supportive operating environment with rising disposable income and a younger population, and strong financial risk profile.

These strengths are partially offset by concentration of revenue and profitability, which is driven by Domino's Pizza; and its susceptibility to competitive intensity and cost pressures.

The agency further said that a substantial decline in revenue with operating margin falling to below 7-8%, impacting cash generation; and any large, debt-funded capital expenditure or acquisition weakening the financial risk profile substantially on a sustained basis.

Jubilant FoodWorks ranks among the leading emerging markets' food service companies. Its Group network comprises 3,130 stores (as of September 2024) across six markets ' India, Turkey, Bangladesh, Sri Lanka, Azerbaijan and Georgia. The Group has a strong Portfolio of Brands in emerging markets with franchise rights for three global brands - Domino's, Popeyes and Dunkin' ' and two own-brands, Hong's Kitchen, an Indo-Chinese QSR brand in India, and a CAFÉ brand - COFFY in Turkey.

The scrip fell 1.02% to currently trade at Rs 676.10 on the BSE.

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