Khazanchi Jewellers (543953) Q4 23/24 earnings summary

Executive summary

• FY24 total revenue was ₹82,152.91 lakh and revenue from operations ₹82,078.33 lakh, versus ₹48,181.65 lakh and ₹48,065.77 lakh in FY23; PAT was ₹2,731.94 lakh versus ₹756.49 lakh.

• FY24 standalone total income reached INR 821 crore, up 70.51% YoY; volume growth also contributed to sales.

• Strategy focuses on a 10,000 sq ft flagship showroom, geographic expansion, higher-margin retail and diamond products, and selective in-house manufacturing.

• Audited results received an unmodified opinion; M/s. Ak Jain and Associates was appointed secretarial auditor for FY25, effective May 17, 2024.

Financial highlights

• FY24 EBITDA rose 148.77% to INR 51.78 crore, with margin up 150 bps to 5.09%; PAT increased 261.13% to INR 27.32 crore, with margin up 126 bps to 3.33%.

• FY24 profit before tax was ₹3,670.52 lakh versus ₹1,027.02 lakh; total expenses were ₹78,482.39 lakh versus ₹47,154.63 lakh, and finance cost was ₹480.31 lakh versus ₹643.53 lakh.

• H2 FY24 total income was INR 415.38 crore, up 16.38%; EBITDA rose 24.6% to INR 21.02 crore, with margin up 50 bps to 5.06%.

Outlook and guidance

• Management expects FY25 growth of at least 25%-30% and said the INR 1,000 crore revenue milestone is achievable.

• Retail is targeted to reach at least 50% of sales in coming years, from 10% currently; management expects the mix shift to benefit overall margins.

• Plans include 3-4 showrooms over 2-3 years and at least 20% in-house manufacturing within 2 years.

• Management expects continued growth and rising volume demand in coming years.