Speciality Restaurants Q4 net profit up 138%; focus on cost cutting

KOLKATA: Fine dining chain, Speciality Restaurants Ltd reported 138% jump in net profit for the fourth quarter ending March 31, 2013, at Rs 5.34 crore, riding on 23% jump in net sales at Rs 54.44 crore.

The owner of popular brands like Mainland China and Oh Calcutta, Speciality Restaurants managing director Anjan Chatterjee said the company achieved such high growth in net profit by rationalisation of its manpower cost and cost-cutting across levels, without increasing menu prices.

"During the year, we have reduced the manpower requirement per restaurant from 70-72 people to around 48-50, which we will further reduce. We are upgrading the skills of our existing staff for newer restaurants putting a hold on fresh recruitment," said Mr Chatterjee.

Mr Chatterjee said the company has reduced manpower cost to total operating cost of a restaurant from 20% to 17% last fiscal and plans to further trim it to 15% this fiscal. "There will also be around 5% increase in menu prices over the next three months," he said.

Speciality Restaurants reported 35.7% jump in net profit at Rs 23.41 crore for the full year 2012-13 on back of 14.3% jump in net sales at Rs 214.83 crore. The company's stock went up by 6.23% at Rs 180.65 at the Bombay Stock Exchange on Wednesday. Speciality Restaurants board recommended a dividend of Rs 1 per equity share for the last fiscal.

Speciality Restaurants currently has 82 restaurants and 14 confectionaries across the country. Last year, the company rolled out 14 new restaurants with ten new outlets for Mainland China.