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

Executive summary

• Consolidated revenue grew 27% year-over-year to ₹55,355 million in Q1FY25, with India standalone revenue up 29% and strong SSGs across India and the Middle East, despite gold price volatility and a high base.

• PAT rose 24% to ₹1,776 million, with India operations adding 13 new showrooms and SSSG of 12%.

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

• Robust operating performance was supported by higher advertisement spend to counter gold price volatility and drive market share.

• Continued expansion via capital-light FOCO/franchise model, with 80 new FOCO showrooms planned for FY25.

Financial highlights

• Consolidated Q1FY25 revenue: ₹55,355 million (+27% YoY); India: ₹46,875 million (+29% YoY); Middle East: ₹8,105 million (+16% YoY).

• Consolidated EBITDA: ₹3,760 million (up 16% YoY); PAT: ₹1,776 million (up 24% YoY); PAT margin: 3.2%.

• India EBITDA: ₹3,150 million (up from ₹2,690 million YoY); India PAT: ₹1,651 million (up from ₹1,293 million YoY).

• Middle East EBITDA: ₹640 million (up from ₹550 million YoY); PAT: ₹187 million (up from ₹170 million YoY).

• E-commerce (Candere) revenue: ₹490 million (up from ₹340 million YoY); loss: ₹22 million (flat YoY).

Outlook and guidance

• Store expansion remains a key focus, with 35 Kalyan and 20 Candere showrooms to open before Diwali and 80 new FOCO showrooms planned for FY25.

• SSGs in July were stronger than Q1, and management expects continued robust revenue growth.

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

• Management is confident of margin expansion for the financial year, pending a couple of quarters for optimization.

• Plans to reward shareholders with dividends, with FY24 payout exceeding 20%.