Speciality Restaurants LtdQ1 FY17

Speciality Restaurants Ltd Q1 FY17 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹136P/E: 24.9Market Cap: ₹658 CrSector: Leisure Services

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4
  • The company plans to open about six new restaurants in the current year, including two Hoppipola outlets and one Sigree Global Grill, focusing on a mix of Mainland China, Asia Kitchen, Café Mezzuna, and Hoppipola formats.
  • Expansion strategy is cautious due to subdued discretionary spending but aims for selective openings in key cities.
  • Efforts are being made to boost footfalls through aggressive festivals and promotions, showing positive impact especially in July.
  • Signs of improvement observed in select geographies like Bangalore.
  • Some newly opened restaurants (including one Hoppipola) are yet to breakeven but focus is on quicker breakeven by targeting suitable locations.
  • Raw material cost pressures are moderating.
  • No price increase taken recently; possible adjustments planned based on demand-supply in festive quarters (Q3, Q4).
  • Overall, growth in sales/revenue expected to be gradual amid improving market conditions and strategic expansions.

See what Speciality Restaurants Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • The transcript does not explicitly mention any current or future plans for fundraising through debt or equity.
  • The management focuses more on cautious expansion and improving operational metrics rather than raising new capital.
  • Rajesh Mohta discusses financials, closures, and store openings but does not disclose any fundraising activities.
  • The company maintains a conservative approach towards expansion amid discretionary spending pressures.
  • No specific mention of debt or equity issuance or fundraising strategies is found in the provided pages.

See what Speciality Restaurants Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes
  • The company has adopted a cautious expansion strategy due to subdued discretionary spending.
  • Plans to open about 6 new restaurants as gross additions in the current financial year.
  • New restaurant formats like Hoppipola and smaller-sized outlets with lower rentals are being prioritized for better economics.
  • Existing properties are being leveraged to amortize rent costs for new outlets.
  • No significant new capital expenditure details are provided, but the focus is on right-sizing the restaurant portfolio by closing underperforming outlets.
  • The Mainland China outlet in Doha, Qatar, was opened recently under a joint venture with minority shareholding, indicating strategic investment abroad.
  • Continued investment in promotions and advertising to boost footfalls but no explicit mention of large capex.

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How does Speciality Restaurants Ltd rank vs peers in Leisure Services?

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Rev 4Mar 3

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