Kalyan Jewellers India (KALYANKJIL) Q4 20/21 earnings summary

Executive summary

• FY21 performance recovered after a lockdown-driven Q1 disruption; consolidated Q4 revenue grew 42.8% YoY, while full-year revenue declined 15.1% to ₹85,733 mn.

• A consolidated net loss of ₹61 mn reflected the revenue shortfall and one-time Middle East write-offs; adjusted EBITDA was ₹6,845 mn, excluding ₹902 mn of one-time items.

• The IPO brought ₹7,998 mn of fresh capital, and the shares listed on NSE and BSE on March 26, 2021.

Financial highlights

• Consolidated revenue from operations was ₹85,733 mn, down 15.1% YoY; total income was ₹86,187 mn versus ₹101,810 mn in FY20.

• Consolidated EBITDA was ₹5,943 mn versus ₹7,603 mn; adjusted EBITDA was ₹6,845 mn excluding ₹902 mn of one-time write-offs, lease-termination losses and impairment provisions.

• Consolidated PBT was ₹394 mn versus ₹2,209 mn; net loss was ₹61 mn versus profit of ₹1,423 mn, and diluted EPS was -₹0.07 versus ₹1.49.

• Cost of sales declined 15.2% to ₹71,141 mn; employee expenses fell to ₹3,315 mn, while other expenses included ₹902 mn of one-time charges.

• Standalone India PBT was ₹1,875 mn versus ₹2,353 mn; Candere revenue rose to ₹821 mn from ₹557 mn and it recorded its first PAT profit, ₹31 mn.

Outlook and guidance

• Plans called for continued showroom expansion, with personalised service and strict hygiene measures; 9 India showrooms opened in April 2021, bringing the network to 146 by June 30, 2021.

• Strategic priorities include expanding branded and higher-margin studded jewellery, deepening the My Kalyan network, and investing in CRM, marketing and analytics.

• Management expected India’s recovery to continue, while noting that a full economic recovery was anticipated in H2 FY22 and normal growth levels by FY23, subject to no further disruption and vaccination progress.