Khazanchi Jewellers (543953) Q1 24/25 earnings summary

Executive summary

• Q1 FY24/25 revenue from operations was ₹38,107.44 lakh and net profit was ₹920.75 lakh, compared with ₹18,676.57 lakh and ₹277.14 lakh a year earlier.

• FY24 standalone total income rose 70.51% to ₹821 crore, EBITDA increased 148.77% to ₹51.78 crore, and net profit grew 261.13% to ₹27.32 crore.

• Strategy centers on retail expansion, diamond sales, geographic growth and selective in-house manufacturing; B2B currently contributes ~90% of sales and retail ~10%.

• Unaudited Q1 results were approved by the Board on August 09, 2024; auditors’ limited review identified no material misstatement.

Financial highlights

• Q1 revenue from operations was ₹38,107.44 lakh versus ₹18,676.57 lakh; total income was ₹38,118.97 lakh versus ₹18,696.99 lakh in Q1 FY23/24.

• Q1 total expenses were ₹36,867.42 lakh versus ₹18,183.94 lakh; profit before tax was ₹1,251.55 lakh versus ₹513.05 lakh.

• Q1 net profit was ₹920.75 lakh versus ₹277.14 lakh in Q1 FY23/24.

• FY24 gold ornament sales were cited at ~₹650 crore and bullion sales at ~₹130 crore.

Outlook and guidance

• Growth comments ranged from 20%-25% YoY to a 30%-40% ambition; management cited ~30% volume growth, with gold-price increases additional.

• FY25 revenue could reach ₹1,000 crore if growth is 25%-30%.

• Plans include 3-4 additional showrooms in 2-3 years and increasing B2C to at least 20% of sales.

• Management expects gold demand and volumes to continue increasing, including when prices rise.