Speciality Restaurants Ltd Results Summary

Incorporated in 1999 Speciality Restaurants Ltd is a fine dining operator in India. At the end of financial year ended March 31 2018 Speciality Restaurants had 106 Restaurants including 27 franchisees and 22 Confectionaries. The companys flagship brand Mainland China focuses on serving Chinese cuisine with contrasting flavours and spices. Originally the company launched its first restaurant network in 1992 under the name Only Fish which was later renamed as Oh Calcutta in 1996.Kix was launched in 2007 as a bar with dance floor and music. It is targeted at young professional segment of the Indian population. Shack was launched in 2009 as a bar lounge with a beach theme targeted at the young Indian professional segment. Kibbeh was launched in May 2010 as a Lebanese bar and lounge that is targeted at the young Indian professional segment.In May 2012 Speciality Restaurants came out with an initial public offer IPO of 11739415 equity shares. The IPO was open for subscription during the period from 16 to 18 May 2012. The IPO was priced at Rs 150 per share.During the financial year ended 31 March 2014 the company introduced new brands like Sigree Global Grill Cafe Mezzuna and Hoppipola in an effort towards sweating of assets. Hoppipola is an allday bar and restaurant that offers contemporary food.Speciality Restaurants entered into a joint venture with the Al Mohannadi Group for the purpose of setting up a restaurant under the brand name Mainland China and a Joint Venture Company was incorporated during the financial year 201314 under the name of Mainland China Restaurant LLC in Doha Qatar. The Company had invested 490000 QAR Qatari Riyal in the equity instruments of the Joint Venture Company for the subscription of 490 equity shares of QAR 1000 each fully paidup.During the financial year ended 31 March 2015 the company commenced 14 restaurants out of which 10 are Company Owned Company Operated COCO while 4 are Franchise Owned Company Operated FOCO. Out of the 4 FOCO restaurants 2 represent international destinations in Dar es Salaam Tanzania. The company opened a new restaurant under the brand Mainland China Asia Kitchen at Oberoi Mall in Goregaon East Mumbai. It has 60 per cent of Mainland Chinas offerings but there is 40 per cent value addition in the form of Pan Asian cuisine which includes gourmet dishes from Hong Kong Singapore Malaysia Thailand Japan Korea Myanmar in addition to China. The outlet has a more casual atmosphere with a much younger crowd mix. Based on the overwhelming response the second outlet was opened at Palladium Mall Phoenix Mills Lower Parel Mumbai.During the year under review the company entered into a Share Purchase and Shareholders Agreement with Love Sugar and Dough Private Limited LSDPL Mr. Nauzad Kersi Munshi and Ms. Tarannum Imtiaz Merchant the Promoters of LSDPL for acquisition of 51 stake in LSDPL and accordingly acquired 51 stake in LSDPL by purchase of 5100 equity shares of LSDPL for a consideration of Rs 7.5 million and thus LSDPL became the subsidiary of the Company with effect from December 30 2014.During the financial year ended 31 March 2016 the company opened 14 restaurants out of which 13 are Company Owned Company Operated COCO while 1 is Franchise Owned Company Operated FOCO. Hoppipola which was launched to attract younger generation has seen five more outlets opened during the year two in Mumbai and one each in Pune Chennai and Kolkata. It is an All Day Bar serving finger food bar nibbles and innovative mocktails. Its target market is those of youngatheart.The company entered into a Share Sale Agreement with Love Sugar and Dough Private Limited LSDPL and the Promoters of LSDPL for sale of 51 stake in LSDPL back to the promoters of LSDPL and accordingly the company sold the entire 51 stake in LSDPL by sale of 5100 equity shares of LSDPL for a consideration of Rs 5.7 million and thus LSDPL ceased to be a subsidiary of the company with effect from August 3 2015.During the financial year ended 31 March 2017 the company opened two confectionaries and six restaurants out of which three are Company Owned Company Operated COCO while three 3 are Franchise Owned Company Operated FOCO. Hoppipola which was launched to attract younger generation has seen two more outlets opened during the year.The Mainland China restaurant at Doha Qatar started commercial operations with effect from May 10 2016 in joint venture with the Al Mohanndi Group Qatar. Speciality Restaurants has 49 stake in the limited liability company Mainland China Restaurant LLC.During the financial year ended 31 March 2018 the company continued its focus on cost rationalisation and improving efficiencies. During the year under review the company opened nine restaurants out of which three are Company Owned Company Operated COCO while six are Franchise Owned Company Operated FOCO and five confectionaries. Hoppipola which was launched to attract younger generation has seen one more outlet opened during the year. It is an All Day Bar serving finger food bar nibbles and innovative mocktails. Its target market is those of youngatheart.The partners of the joint venture company Mainland China and Indigrill Restaurant LLC erstwhile Mainland China Restaurant LLC discontinued operations of the Mainland China restaurant with effect from May 16 2017. The JV was closed down due to unfavourable market conditions in Qatar and in view of the losses incurred by the JV. Speciality Restaurants made provision for financial commitment and other dues from the JV amounting to Rs 101.4 million.Speciality Hospitality UK Limited was incorporated as a wholly owned subsidiary company on August 22 2017.