Shares of Jubilant FoodWorks Ltd. plunged 3% after reaching a day’s high of Rs 685.95 on 1st October. This was following the firm’s announcement that it received a final assessment order from the Income Tax Department dated 27th September, raising a tax demand of Rs 70.8 crore for the financial year 2016-2017.

The tax demand is related to certain Transfer Pricing Adjustments. The company plans to appeal the assessment order before the Income Tax Appellate Tribunal (ITAT), as they believe the demand was raised without considering its arguments.

Jubilant stated that it expects the tax demand to be dismissed after the appeal process. The company is confident that its contentions were ignored, and the demand will likely be deleted once redressal is complete.

They reported a standalone net profit of Rs 51.5 crore for the quarter ending 30th June 2024, down 31.4% from Rs 75.1 crore in the same period last year.

Despite the decline in profit, revenue from operations increased by 9.9% year-over-year to Rs 1,439.6 crore, up from Rs 1,309.6 crore, mainly due to an 8.5% growth in Domino’s India.

Jubilant FoodWorks’s shares have surged by 17.50% so far in 2024. The company’s market capitalisation currently stands at around Rs 43,470 crore.

At 3:30 PM, the shares of Jubilant FoodWorks closed 3.36% lower at Rs 659 on NSE.

Unlock profitable opportunities every day! Unicorn Signals provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Unicorn Signals and start winning now!