Speciality Restaurants Limited reports mixed financial results for Q4 FY24

Speciality Restaurants Limited, a prominent operator of fine dining restaurants with brands like Mainland China, Oh! Calcutta, and Sigree-Global Grill, has released its financial results for the fourth quarter ending March 31, 2024. Despite challenges, the company continues to expand and innovate its offerings across the globe.

Financial Overview

In the fourth quarter of FY24, Speciality Restaurants reported a consolidated total income of ₹100.91 crores with an EBITDA of ₹18.62 crores and a Profit After Tax (PAT) of ₹3.38 crores. The standalone financial results show a slight decrease in total income from ₹97.62 crores in Q4 FY23 to ₹94.64 crores in Q4 FY24, a 3% reduction year-over-year. Standalone EBITDA fell by 30% to ₹16.54 crores from ₹23.82 crores, and PAT significantly decreased to ₹1.64 crores from ₹54.92 crores, primarily due to exceptional items in the previous fiscal year.

Speciality Restaurants Limited Navigates Market Challenges with Strategic Global Expansions

Speciality Restaurants Limited Operational Highlights and Strategic Initiatives

Despite the financial downturn, Speciality Restaurants has been actively expanding its footprint. Anjanmoy Chatterjee, Chairman & Managing Director, noted that new restaurants generally take 6 to 8 months to reach breakeven and begin contributing to the bottom line, with recent openings expected to start adding to profits in the coming months.

The company has also been proactive in navigating inflationary pressures and improving overall margins. Plans are underway to open new outlets specializing in Oriental cuisine and to renovate existing Mainland China restaurants to boost ‘same store sales.’ Additionally, the launch of wet-led outlets is in progress.

During Q4, Speciality Restaurants expanded internationally by opening an ‘Asia Kitchen by Mainland China’ franchise in the Mall of Oman, Muscat, and continuing operations in the UAE and the United Kingdom.

Brand and Global Presence

Speciality Restaurants has built a robust portfolio of diverse culinary brands, catering to a variety of tastes and preferences. Its flagship brand, Mainland China, is renowned for its authentic Chinese cuisine, while Asia Kitchen by Mainland China offers a broader Pan-Asian menu. The company’s other brands, such as Oh! Calcutta and Sigree-Global Grill, provide unique dining experiences that celebrate regional and international flavors.

As of March 31, 2024, the company operates 84 restaurants and 42 confectionery stores across 12 cities in India, along with international outlets in the UAE, Oman, and the UK.

Future Outlook for Speciality Restaurants Limited

Looking ahead, Speciality Restaurants is poised for continued growth with a focus on enhancing customer experience and expanding its market reach. The company’s long-standing expertise in the restaurant industry and ongoing strategic expansions are expected to strengthen its position both domestically and internationally.

Speciality Restaurants Limited’s latest financial results reflect a period of strategic realignment and investment in future growth. With a strong brand portfolio and an expanding global presence, the company is well-positioned to capitalize on emerging opportunities in the dining sector.