Kalyan Jewellers India Limited , one of India's largest jewellery retailers, has reported a robust financial performance for the first quarter, with significant growth in both revenue and profitability.

Financial Highlights

The company recorded consolidated revenue of ₹7,268.00 crore, marking a substantial 31% increase from ₹5,528.00 crore in the same period last year. This strong top-line growth was accompanied by an impressive 49% surge in consolidated Profit After Tax (PAT), which reached ₹264.00 crore, up from ₹178.00 crore in the previous year's corresponding quarter.

India Operations

Kalyan Jewellers' standalone revenue from India operations grew by 31% year-on-year to ₹6,142.00 crore. The company's PAT from Indian operations saw an even more substantial increase of 55%, reaching ₹256.00 crore for the quarter.

A key driver of this growth was the company's strong same-store sales growth (SSSG) of 18% in India. The non-South Indian market contributed 51% to the total revenue, indicating successful expansion beyond the company's traditional stronghold.

International Performance

The company's international operations, primarily in the Middle East, also showed significant growth. Middle East revenue increased by 27% to ₹1,026.00 crore, with PAT growing by 18% to ₹22.00 crore.

Expansion and Future Outlook

Kalyan Jewellers continued its expansion strategy, operating 406 showrooms across India, the USA, and the Middle East by the end of the quarter. The company has been actively pursuing a franchise-owned company-operated (FOCO) model, with 161 FOCO Kalyan showrooms in India as of June 30.

Mr. Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers India Limited, expressed optimism about the upcoming festive season, stating, "We have started off the ongoing quarter well despite continuing volatility in gold prices and a higher base. We are upbeat about the upcoming festive season across the country and are gearing up for the launch of fresh collections and campaigns."

Product Mix

The company's studded jewellery share remained stable at 30.3% of revenue, compared to 30.4% in the same quarter last year. This indicates a consistent demand for higher-margin studded jewellery products.

Conclusion

Kalyan Jewellers' strong quarterly performance demonstrates the company's resilience and ability to capitalize on market opportunities despite challenges such as gold price volatility. With its expanding network, focus on both traditional and emerging markets, and strategic initiatives like the FOCO model, Kalyan Jewellers appears well-positioned for continued growth in the Indian jewellery market.

Kalyan Jewellers , a prominent player in India's jewellery market, has announced an ambitious expansion strategy that aims to significantly increase its retail footprint while simultaneously reducing its debt burden. The company's bold move underscores its confidence in the growing demand for jewellery across various market segments.

Expansion Through Franchise Model

The jewellery giant plans to open 170 new stores through a franchise model, marking a significant shift in its growth strategy. This expansion includes:

• 90 Kalyan stores, comprising:
  • 83 stores across India
  • 7 overseas locations in the UK, US, and Middle East
• 80 Candere lifestyle jewellery stores

This ambitious plan will substantially increase Kalyan Jewellers' presence from its current network of 406 showrooms spread across India and the Middle East.

Strategic Focus on Non-South Markets

Kalyan Jewellers is setting its sights beyond its traditional stronghold in South India. The domestic expansion will primarily target non-south markets, including tier I to tier IV cities. This strategic move aims to capture a larger share of the growing jewellery market across diverse regions of the country.

Debt Reduction and Financial Strategy

Alongside its expansion plans, Kalyan Jewellers has outlined a clear financial strategy:

• Target to reduce debt by Rs 300.00 crore
• Primary focus on reducing Gold Metal Loan liabilities
• Follows last year's successful Rs 400.00 crore debt reduction

This two-pronged approach of expansion and debt reduction demonstrates the company's commitment to sustainable growth and improved financial health.

Capital Expenditure and Manufacturing Plans

To support its growth initiatives, Kalyan Jewellers has allocated:

• Rs 350.00-400.00 crore for capex, focusing on maintenance and inventory

The company is also planning to:

• Establish a contract manufacturing hub in Thrissur
• Explore opportunities in new international markets including Australia, Malaysia, and Singapore

Current Market Position

Kalyan Jewellers continues to maintain a strong presence in the organised jewellery segment:

• Reported consolidated net revenue of Rs 5,557.63 crore in the first quarter
• Holds an 8-9% market share in the organised jewellery segment

Kalyan Jewellers' ambitious expansion plan, coupled with its debt reduction strategy, signals a new phase of growth for the company. By leveraging the franchise model and targeting diverse markets both domestically and internationally, the jewellery retailer is positioning itself to capitalize on the growing demand for both traditional and lifestyle jewellery across various consumer segments.