Overview of Q1 FY25 Results
• Conference call held on August 12, 2024, with key management members.
• Results were below expectations due to:
• Opening of three new restaurants (9-12 months to break even).
• Challenges: inflation, temporary closures during elections, market slowdown.
• Future plans include opening 6-8 more restaurants by fiscal 2025.
Growth Strategies
• Three key growth engines identified:
• Expanding Asian brands (e.g., Asia Kitchen).
• Enhancing liquor-driven food offerings.
• Strengthening delivery services with high average order volumes.
• Renovated outlets saw a 15-25% increase in dine-in revenue; liquor sales doubled post-renovation.
Revenue Growth Targets
• Ambitious goal to double revenue and triple it in 5-6 years through organic growth.
• Focus on profitable growth rather than acquisitions.
• New CEO to be appointed by fiscal year-end to enhance operational efficiency.
Financial Performance
• EBITDA growth of 13.34% in the current quarter.
• Target EBITDA margin of 20-24% as new restaurants open.
• Revenue growth primarily volume-driven, with tactical pricing adjustments.
Expansion Plans
• Plans to open 7-9 new stores by fiscal 2025, focusing on Asian cuisine.
• Expansion into Gujarat with two stores planned within three years.
• Walter's Burger branding initiative in prime locations.
Investor Engagement
• Management addressed investor inquiries regarding revenue growth, employee benefits, and market expansion.
• Clarified that forfeited warrants contribute to net worth, with post-allotment share capital expected to be INR 48.23 crores.
• Company reported net cash of INR 163.84 crores as of June 30.
Conclusion
• Management expressed gratitude to investors and optimism about future growth despite current challenges.

Submission Details
• Date of submission: May 22, 2024
• Conference call date: May 15, 2024
• Hosted by: ICICI Securities
• Key management present:
• Anjan Chatterjee (Chairman)
• Avik Chatterjee (Whole Time Director)
• Rajesh Kumar Mohta (CFO)
Company Overview
• Transitioned from dine-in to delivery during the pandemic.
• Delivery sales increased from 7-8% to 28%.
• Closed 29 underperforming locations.
• Focus on growth through Asia Kitchen brand with five new openings last fiscal year.
• Plans to open eight new restaurants this year and a minimum of 25 over the next three years.
Capital Expenditure and Growth Plans
• Renovations for existing stores: INR 2 crores each (three stores planned).
• New store expansions: projected capex of INR 25 crores.
• Ongoing negotiations for inorganic expansion with international brands.
• Aims to triple revenue over the next six years.
Financial Updates
• INR 24 crores utilized from funds raised; INR 169.7 crores remaining.
• Recent margin decline attributed to new store openings.
• Focus on strengthening Asian food brands and expanding liquor-driven business.
Catering and Loyalty Programs
• Dynamic model for catering operations in Kolkata and Bandra.
• Reintroduction of the "Speciality Privilege" loyalty program digitally.
Liquor Sales and Brand Expansion
• Current liquor sales: 11-12% of total sales; target to increase to 15-18%.
• Plans to open three new "Episode" brand stores with a capex of INR 25-30 crores.
International Expansion
• Ongoing franchise operations in Dubai with plans for further Middle East expansion.
• Positive response to restaurant presence in Dubai, leading to inquiries from ten countries.
Revenue and Margin Insights
• New restaurants typically take 6-8 months to break even.
• Cost escalations noted, but potential to increase prices by 10-12%.
• Interest in developing the Chourangi brand in the UK and US.
Store Economics
• Capital expenditure for dine-in formats: INR 3-3.5 crores for 2,500 sq. ft. restaurants.
• Gross margins: 74-75%, EBITDA: 16-18%.
• Episode 1 format EBITDA: 22-24%.
• Revenue split: 28% delivery, 72% dining.
Conclusion
• Management committed to keeping stakeholders informed about progress and growth strategies.