Jubilant Has Biggest Fall in a Month as Food Prices Increase
Jubilant FoodWorks Ltd., the Indian franchisee of Domino’s Pizza Inc., had its biggest decline in a month after the company said inflation is “putting strain,” on its business.
The shares dropped 6 percent to 560.3 rupees at the 3:30 p.m. close in Mumbai. The Bombay Stock Exchange’s benchmark Sensitive Index, or Sensex, lost 1.8 percent.
India’s inflation accelerated for the first time in three months in December as food costs increased, according to a commerce ministry statement in New Delhi today. Prices of onions, wheat and eggs, raw materials for the company’s pizzas, pastas and cakes have been rising, increasing costs. Food-price inflation has remained above 12 percent for four straight weeks.
“There are inflationary pressures on labor, food items and fuel, which are putting strain on the business,” Ajay Kaul said in a phone interview from Noida, near New Delhi, yesterday. The cost of labor “is something we are watching because that can put pressure on our margins in times to come.”
The benchmark wholesale-price index rose 8.43 percent in December from a year earlier after a 7.48 percent gain in November, adding pressure on the central bank to extend last year’s fastest round of monetary tightening in Asia.
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