PRESS RELEASE

FOR IMMEDIATE CIRCULATION

WESTLIFE DEVELOPMENT LTD REPORTS STRONG REVENUE

GROWTH FOR THE FOURTH QUARTER AND FISCAL ENDED 2016
Records high double digit revenue growth of 17.6 per cent in Q4FY16

Reports third consecutive quarter of positive Comparable Sales of 8.4 per cent
Restaurant Operating Margin Expanded by ~445 bps
PAT growth of 33.2 per cent

Mumbai, May 6, 2016: Westlife Development Limited (BSE: 505533) owner of the
Master Franchisee of McDonalds restaurants in India, today announced its audited
financial and operating results for the quarter and fiscal ended March 31, 2016. The
results were taken on record by the Board of Directors at a meeting held in Mumbai.
FINANCIAL HIGHLIGHTS FOR QUARTER ENDED MARCH 31, 2016:

Revenue growth of 17.6 per cent year-over-year to `2126.2 million, riding on the
strong performance of its subsidiary, Hardcastle Restaurants Pvt. Ltd. (HRPL)

Operating EBIDTA stood at `118.6 million

Profit/(Loss) After Tax stood at `(65.3) million as against `(97.8) in the same
quarter of the previous year

Cash Profit stood at `89.9 million as against `39.7 million in the same quarter of
the previous year

13 new restaurant and 12 McCafe openings in Q4FY16

FINANCIAL HIGHLIGHTS FOR FISCAL ENDED MARCH 31, 2016:

Revenue growth of 12.1 per cent year-over-year to `8568.3 million, riding on the
strong performance of its subsidiary, Hardcastle Restaurants Pvt. Ltd. (HRPL)

Operating EBIDTA stood at `721.7million

Profit After Tax stood at `28.3 million as against `(291.1) in the same quarter of
the previous year

Cash Profit stood at `671.8 million as against `273.1 in the same quarter of the
previous year

Total Restaurant network at 236, Y-o-Y gross additions at 30; Total McCafe
Count at 75

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Commenting on the financial results for the fourth quarter and fiscal ended March 31,
2016, Mr. Amit Jatia, Vice-Chairman of Westlife Development Limited said, We are
pleased to report another strong quarter. Our performance in the second half of the fiscal year 2016
has been much better than that in the first half. Despite a challenging market environment, we have
delivered robust performance across all of our offerings; recording the highest level of positive
Comparable Sales of 8.4 per cent after 13 quarters and third consecutive quarter of positive SSSG
this year.
Our competitive and profitable growth in the quarter was driven by high quality innovations and
sharper in market execution. The consistency and resilience of our performance, in what has been a
demanding market environment for some quarters now, is a reflection of the discipline with which we
are managing our business and executing our strategy. With our diverse portfolio of business and
disciplined management approach, we remain confident in our ability to continue delivering value
for our clients and shareholders.
Q4 & FY16 RESULT ANALYSIS:

WDL reported 12.1 per cent increase in total revenues for the fiscal year to `8568.3
million from `7,643.3 million Y-o-Y riding on its restaurant expansion. The Company
witnessed 17.6 per cent increase in total revenues for the fourth quarter to `2126.2
million from `1807.8 million in the same quarter of previous year

Y-o-Y gross additions stood at 30; 13 new restaurant openings in Q4FY16; total
network of 236 restaurants across west and south India

System-wide comparable sales (SSSG)1 for the fiscal year was 1.8 per cent compared to
(5.9) per cent in FY15. Fourth quarter SSSG stood at 8.4 per cent as against a (5.1)
per cent in the same quarter in the previous year against a backdrop of soft consumer
sentiment

Overall gross margin was `5,238.4 million compared to `4,466.3 million in FY15. As
a percentage of total revenues, gross margin expanded by ~270 bps Y-o-Y; driven by
efficiencies in product management and menu pricing

Restaurant operating margin [2] was at `1228.5 million; ROM expanded by ~560 bps
Y-o-Y on account of various restaurant productivity initiatives.

Operating EBITDA in FY16 stood at `721.7 million compared to `204.6 million

Y-o-Y, representing a growth of 252.8 per cent. Operating EBITDA for Q4FY16
stood at `118.6 million as against `22.3 million Y-o-Y, representing a growth of 431.6
per cent

General and administrative expenses in FY16 increased to `503.7 million compared

to `463.3 million Y-o-Y due to investment in people and resources over the year to
drive business growth

WDL reported cash profit of `671.8 million in FY16

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WDL expanded McDonalds restaurant footprint with gross addition of 30 new

restaurants in FY16, taking the total count to 236 in west and south India. In the quarter,
the brand marked its entry into Calicut to further broaden its accessibility in south India.
WDL added 13 new restaurants in Q4FY16 06 in Maharashtra, 2 each in Gujarat,
Karnataka and Kerala and 01 in Telangana, reporting a 13 per cent unit growth over the
previous year. The Company is on track to deliver its stated goal of 175-250 restaurants
in the 5 years.
Furthermore, WDL successfully launched its new Restaurant Operating Platform 2.0,
delivering 20-25 per cent saving in CAPEX. The Company has maintained a prudent
focus on restaurant development costs which helps in maintaining healthy unit economics
as the restaurant base, grows.
During the year under review, WDL consistently advanced its strategy on developing
newer offerings that can best fulfill existing and emerging consumer needs. The
Company made concerted efforts across all its brand extensions - an important growth
lever. WDL sustained its investments to increase the McCafe footprint, adding 12 McCafe
locations in Q4FY16 as against 07 McCafes in the same quarter of the previous year,
taking the total count to 75 as against a total of 37 in the previous year. McCaf enables
the Company broaden its addressable market beyond the QSR industry and grow
baseline sales. WDL is on track to double the base in the next 12-18 months.
Convenience initiatives remained in focus the Company optimized its delivery business
through operational efficiencies by building online capabilities with McDelivery. The
Company made significant investments to innovate and accelerate efforts towards
leveraging digital platforms to enhance user-friendly experience on the mobile and web
platforms of McDelivery. WDL continued to see a surge in sales through its online &
mobile platform, delivering over 20 per cent growth Y-o-Y. In the coming years, we will
continue to invest in building these brand extensions to enhance the companys margin
profile.
During the year under review, we consistently advanced our strategy on developing
newer offerings that can best fulfill existing and emerging consumer needs. The product
initiatives are successfully leveraging McDonalds brand heritage of quality and
innovation and are distinguishing the company in the competitive marketplace. In the
quarter, WDL grew baseline sales through new premium menu items and Limited Time
Offerings. Introduction of premium offerings like the first ever Veg Maharaja Mac, and
the new flame-grilled Chicken Maharaja Mac along with Limited Time menu offerings
like Black Forest McFlurry and Maha Smoothie helped mitigate the challenging
environment.
~ends~
NOTE TO THE EDITORS: Westlife Development Limited and Hardcastle Restaurants follow an April-March fiscal
year. The results reported are for the fourth quarter and fiscal ended March 31, 2016.
THE FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED THROUGHOUT THIS RELEASE:
[1]

Comparable sales (SSSG) represent sales at all restaurants operated by the Company, in operation at least thirteen
months excluding those temporarily closed. Some of the reasons restaurants may be temporarily closed include reimaging or
remodeling, rebuilding, road construction and natural disasters. The number of weekdays and weekend days, referred to as
the calendar shift/trading day adjustment, can impact comparable sales. In addition, the timing of holidays also can impact

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comparable sales.
[2]
Restaurant Operating Margin represents the total revenue of company
operated restaurants less the operating costs of these restaurants (including
royalty etc.) before depreciation and corporate overheads; expressed as a percent
of total revenue.

WESTLIFE DEVELOPMENT LIMITED

Consolidated Financial Performance
(` in millions)
For the
quarter
ended March
31, 2016

For the
quarter
ended March
31, 2015

For the year

ended
March 31,
2016

For the year

ended
March 31,
2015

REVENUES
Sales
Other Operating Income[1]
TOTAL REVENUES

2,075.4
50.8
2,126.2

1,797.8
10.0
1,807.8

8,234.4
333.9
8,568.3

7,597.9
45.4
7,643.3

OPERATING COSTS AND EXPENSES

Restaurant Operating Cost and Expenses
Food & Paper
Payroll and Employee Benefits
Royalty
Occupancy and Other Operating Expenses
General & Administrative Expenses
TOTAL OPERATING COSTS AND EXPENSES
OPERATING EBIDTA

831.6
241.4
83.9
693.1
157.6
2,007.6
118.6

753.2
212.7
32.2
655.6
131.7
1,785.5
22.3

3329.9
912.8
289.5
2,807.6
506.8
7,846.6
721.7

3177.0
861.9
268.2
2,667.9
463.8
7,438.7
204.6

Extra-ordinary Expenses
Financial Expense (Interest & Bank Charges)
Depreciation

(8.8)
3.8
36.7
150.2

(51.5)
6.61
36.4
128.4

(84.7)
49.1
149.9
576.5

(149.5)
37.8
102.2
504.4

PROFIT/(LOSS)BEFORE TAX

(63.4)

(97.6)

30.9

(290.2)

1.9

0.2

2.6

0.9

(65.3)

(97.8)

28.3

(291.1)

89.9

39.7

671.8

273.1

Particulars

Other (Income)/Expenses, (net)

[2]

Taxes
PROFIT/(LOSS) AFTER TAX
CASH PROFIT
1]

Includes the recognition of additional credit in respect of indirect taxes paid on inputs up to March 31, 2015, amounting to `234.0 Million
One-time expenses on account of assets written off pertaining to restaurants relocation/re-build

2]

About Westlife Development:

Westlife Development Limited (BSE: 505533), focuses on putting up and operating Quick Service Restaurants (QSR) in India
through its subsidiary Hardcastle Restaurants Pvt. Ltd. (HRPL). The Company operates a chain of McDonalds restaurants in
west and south India, having a master franchisee relationship with McDonalds Corporation USA, through the latters Indian
subsidiary. Marquee investors such as Arisaig India Fund Ltd and Tree Line Asia Master Fund (Singapore), Ward Ferry Fund,
SBI Mutual Fund among others are stakeholders in WDL and the company will continue to broad base its investors over the

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coming years.
About Hardcastle Restaurants:
Hardcastle Restaurants Pvt Ltd (HRPL) is a McDonalds franchisee with rights to own and operate McDonalds restaurants in
Indias west and south markets. HRPL has been a franchisee in this part of India since its inception in 1996.
HRPL serves approximately 185 million customers, annually, at its 236 (as of March 31, 2016) McDonalds restaurants across
30 cities in the states of Telangana, Gujarat, Karnataka, Maharashtra, Tamil Nadu, Kerala, Chhattisgarh and parts of Madhya
Pradesh, and provides direct employment to over 7,500 employees. McDonalds operates through various formats and brand
extensions including standalone restaurants, drive-thrus, 24/7, McDelivery, dessert Kiosks. The menu features Burgers,
Finger Foods, Wraps, Hot and Cold Beverages besides a wide range of desserts. Several of the McDonalds Restaurant feature
in-house McCaf.
The pillars of the McDonald's system Quality, Service, Cleanliness and Value are evident at each of the restaurants where
HRPL operates.

For further information, please contact:

Ritika Verma
Corporate Communications
E: [email protected]
T: 022 49135096 | M: 098203.32757

Ankit Arora
Investor Relations
E: [email protected]
T: 022 49135306 | M: 099206.64475

Disclaimer:
This document by Westlife Development Ltd (the Company) contains forward-looking statements that represent our beliefs, projections and
predictions about future events or our future performance. Forward-looking statements can be identified by terminology such as may, will, would,
could, should, expect, intend, plan, anticipate, believe, estimate, predict, potential, continue, expected, outlook, future or the
negative of these terms or other similar expressions or phrases or their variations. These forward-looking statements are necessarily subjective and
involve known and unknown risks, uncertainties and other important factors that could cause our actual results performance or achievements or
industry results to differ materially from any future results, performance or achievement described in or implied by such statements. The forwardlooking statements contained herein include statements about the Companys business prospects, its ability to attract customers, its affordable platform,
its expectation for revenue generation and its outlook. These statements are subject to the general risks inherent in the Companys business. These
expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In
addition, the Companys business and operations involve numerous risks and uncertainties, many of which are beyond the control of the Company,
which could result in the Companys expectations not being realized or otherwise materially affect the financial condition, results of operations and cash
flows of the Company. The forward-looking statements are made only as of the date hereof, and the Company does not undertake any obligation to (and
expressly disclaims any obligation to) update any forward-looking statements to reflect events or circumstances after the date such statements were
made, or to reflect the occurrence of unanticipated events.

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