True Indonesia business has been a drag on the consolidated business so far.
But if u see they have managed to EBITDA and Cash breakeven, get to +ve SSSG (which they achieved in Feb), thus helping it stop the pressure on the consolidated P&L. Decision of not adding any new allocation into the Indonesia subsidiary until the geo-political situation improves, also neutralises the risk to balance sheet. This decision would also help improve KPI (at unit level) as the existing stores mature. They have also done some 20% cost rationalisation at corporate levels; hence the effect closure of 15% under performing BK restaurants on fixed costs, should be taken care of.
I believe if the above continues, the Indonesia business will be overlooked and India business might get it’s required re-rating.
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