Kalyan Jewellers India (KALYANKJIL) Q1 24/25 earnings summary

Executive summary

• Consolidated Q1FY25 revenue grew 27% YoY to ₹55,355 mn, with India revenue up 29% YoY and Middle East up 16% YoY, supported by strong SSGs and FOCO expansion.

• PAT rose 24% YoY to ₹1,776 mn, with India PAT at ₹1,651 mn and Middle East PAT at ₹187 mn.

• New customers contributed over 35% of revenue, and Non-South market share increased to 49% from 44% last year.

• FOCO (franchise) model accelerated expansion, with 89 FOCO showrooms in India and 16 in Candere as of June 2024.

• Board approved and auditors reviewed Q1 results, with no material misstatements identified.

Financial highlights

• Consolidated Q1 revenue: ₹55,355 mn (+27% YoY); India: ₹46,875 mn (+29% YoY); Middle East: ₹8,105 mn (+16% YoY).

• Consolidated EBITDA: ₹3,760 mn (up 16% YoY); PAT: ₹1,776 mn (up 24% YoY); EBITDA margin: 6.8%.

• India PAT: ₹1,651 mn (up 28% YoY); Middle East PAT: ₹187 mn (up 11% YoY).

• Candere e-commerce revenue: ₹1,352 mn in the last 12 months, with 16 FOCO showrooms.

• Basic and diluted EPS (consolidated) for Q1 FY25 were ₹1.73 and ₹1.72, respectively.

Outlook and guidance

• Plans to open 80 new FOCO Kalyan showrooms in India and 5 in the Middle East in FY25.

• SSGs in July were stronger than Q1, with management expecting continued robust revenue growth.

• PBT margin target of 5% for the year, with India already at 4.8%.

• Management confident of margin expansion for the financial year, pending further optimization.