With the easing of input prices and a pick-up in growth, earnings are expected to improve.
Highlights: Margins affected by higher employee costs Demand to pick up from Q3 To double store count over the next four years Menu innovation to boost sales Margins to improve The Q1 margins of Devyani International (DIL; CMP: Rs 189; Market Cap: Rs 22,856 crore) were lower than expected because of an increase in the employee cost. With inflationary pressures waning, the company expects demand to recover from Q3FY24.
