Westlife Development Ltd

About [ edit ]

Westlife Development Limited (WDL) focuses on establishing and operating McDonald’s restaurants across West and South India, through its wholly owned subsidiary Hardcastle Restaurants Pvt Ltd (HRPL). #

Today, It manages 319 McDonalds restaurants and 223 McCafé outlets in West and South India in easily accessible and popular locations like malls, high-streets, shopping complexes and residential areas’ after outlet presence. It employees close to 10,000 employees. #

Key Points [ edit ]

History of Hardcastle Restaurants
Hardcastle Restaurants Pvt Ltd was established as a joint venture with McDonald’s Corporation, USA in 1995. McDonalds Corporation exited the Joint Venture in 2011 after selling its 50% stake to HRPL. It is the now the master franchisee of McDonald’s under an agreement of 2010. The agreement grants HRPL the authority to provide initial capital for the business, with operational and technical business support from McDonald’s Corporation. #

Relations with Vendors
Company focuses on improving its supply chain and see it as the most critical aspect of its business. It focuses on maintaining long-term relationships with its Vendors. It also focuses on optimizing its costs against volumes, a win-win situation for both the vendors and the company. #

Increase in Restaurant Operating Margins
Focus on effective store-level cost management and moderated cost of store rollout reduced the break-even point and helped the company to increase its Restaurant operating margins by 33% in the last 3 years. #

  • Market Cap 7,323 Cr.
  • Current Price 470
  • High / Low 500 / 267
  • Stock P/E
  • Book Value 31.0
  • Dividend Yield 0.00 %
  • ROCE -0.07 %
  • ROE -0.07 %
  • Face Value 2.00

Pros

  • Company is almost debt free.

Cons

  • Stock is trading at 15.16 times its book value
  • Company has low interest coverage ratio.
  • Company has a low return on equity of -0.08% for last 3 years.
  • Company has high debtors of 4102.60 days.
  • Promoter holding has decreased over last 3 years: -3.09%

Peer comparison

Sector: Quick Service Restaurant Industry: Hotels

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Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Mar 2018 Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020
0.00 0.00 0.00 0.00 0.11 0.11 0.16 0.12 0.11 0.19 0.10 0.08
0.22 0.15 0.21 0.19 0.22 0.16 0.24 0.19 0.21 0.25 0.21 0.16
Operating Profit -0.22 -0.15 -0.21 -0.19 -0.11 -0.05 -0.08 -0.07 -0.10 -0.06 -0.11 -0.08
OPM % -100.00% -45.45% -50.00% -58.33% -90.91% -31.58% -110.00% -100.00%
Other Income 0.00 0.10 0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Profit before tax -0.22 -0.05 -0.11 -0.19 -0.11 -0.05 -0.08 -0.07 -0.10 -0.06 -0.11 -0.08
Tax % 0.00% 0.00% 0.00% -15.79% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Net Profit -0.22 -0.05 -0.11 -0.22 -0.11 -0.05 -0.08 -0.07 -0.10 -0.06 -0.11 -0.08
EPS in Rs -0.01 -0.00 -0.01 -0.01 -0.01 -0.00 -0.01 -0.00 -0.01 -0.00 -0.01 -0.01
Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 TTM
1.32 0.26 0.25 1.71 2.37 1.91 0.29 0.31 0.20 0.00 0.44 0.50 0.48
0.33 0.09 0.23 1.31 2.17 3.40 0.59 0.74 0.65 0.57 0.77 0.81 0.83
Operating Profit 0.99 0.17 0.02 0.40 0.20 -1.49 -0.30 -0.43 -0.45 -0.57 -0.33 -0.31 -0.35
OPM % 75.00% 65.38% 8.00% 23.39% 8.44% -78.01% -103.45% -138.71% -225.00% -75.00% -62.00% -72.92%
Other Income 0.56 0.12 0.00 -1.23 2.25 1.40 0.26 0.24 0.15 0.04 0.00 0.00 0.00
Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Profit before tax 1.55 0.29 0.02 -0.83 2.45 -0.09 -0.04 -0.19 -0.30 -0.53 -0.33 -0.31 -0.35
Tax % 9.68% -3.45% 0.00% -19.28% 2.86% 333.33% -225.00% -136.84% 0.00% 0.00% -9.09% 0.00%
Net Profit 1.40 0.30 0.02 -0.99 2.38 0.21 -0.13 -0.45 -0.30 -0.53 -0.36 -0.31 -0.35
EPS in Rs 0.09 0.02 0.00 -0.06 0.26 0.01 -0.01 -0.03 -0.02 -0.03 -0.02 -0.02 -0.03
Dividend Payout % 114.29% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Compounded Sales Growth
10 Years:7%
5 Years:12%
3 Years:36%
TTM:-4%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:-1%
TTM:-13%
Stock Price CAGR
10 Years:63%
5 Years:16%
3 Years:9%
1 Year:7%
Return on Equity
10 Years:0%
5 Years:-0%
3 Years:-0%
Last Year:-0%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Sep 2020
16.00 16.00 16.00 16.00 18.75 31.11 31.11 31.11 31.11 31.12 31.12 31.13 31.13
Reserves 0.43 0.74 0.76 -0.23 2.14 444.40 446.05 447.22 448.50 449.83 443.60 445.77 451.82
Borrowings 0.00 0.00 0.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.02 0.09 0.05 0.23 1.32 0.25 0.04 0.10 0.08 0.04 6.96 6.28 0.09
Total Liabilities 16.45 16.83 16.96 16.00 21.75 475.76 477.20 478.43 479.69 480.99 481.68 483.18 483.04
0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01 0.00 0.00
CWIP 0.67 1.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Investments 7.25 1.03 1.04 2.79 0.02 61.81 62.04 62.28 475.18 475.18 476.21 477.30 477.59
8.52 14.52 15.92 13.21 21.73 413.95 415.16 416.15 4.51 5.80 5.46 5.88 5.45
Total Assets 16.45 16.83 16.96 16.00 21.75 475.76 477.20 478.43 479.69 480.99 481.68 483.18 483.04

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
7.76 -7.97 -0.26 1.65 4.26 0.73 -0.03 -0.10 0.16 -0.42 -0.14 -0.28
1.00 0.00 0.00 -1.71 5.01 -189.46 0.03 0.00 -0.30 -0.01 0.00 -0.60
-0.97 0.00 0.00 0.00 2.76 176.75 0.00 0.27 0.14 0.25 0.25 0.98
Net Cash Flow 7.79 -7.97 -0.26 -0.06 12.03 -11.98 0.00 0.17 0.00 -0.19 0.10 0.09

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
ROCE % 6.17% 1.75% 0.12% 2.69% 13.37% -0.04% -0.01% -0.04% -0.06% -0.11% -0.07% -0.07%
Debtor Days 0.00 0.00 0.00 4.27 146.31 0.00 0.00 0.00 0.00 4,371.70 4,102.60
Inventory Turnover

Shareholding Pattern

Numbers in percentages

Mar 2018 Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020
62.17 62.17 62.17 62.16 62.16 62.15 62.14 62.14 59.12 59.12 59.12 59.08
13.16 13.35 14.55 14.79 15.12 15.80 17.80 17.21 12.65 10.12 10.02 9.59
8.72 8.33 7.14 7.05 7.45 7.41 8.14 9.31 16.05 18.55 19.40 20.44
15.95 16.15 16.14 16.00 15.26 14.65 11.91 11.34 12.18 12.21 11.46 10.89

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