Kalyan Jewellers Reports Strong Q1 Growth, Unveils Strategic Initiatives
Kalyan Jewellers India Limited reported strong Q1 results with consolidated revenue reaching INR 7,268.00 crores, a 31% YoY growth. Consolidated PAT increased by 49% to INR 264.00 crores. The company announced strategic initiatives including a pilot project to reduce vendor credit periods, plans to launch a regional brand retail format, and development of a jewellery park in Thrissur. The FOCO revenue share reached 43%, and e-commerce business Candere posted revenue of INR 66.00 crores. Management expects continued strong demand and anticipates PBT for India operations to be on the upper side of 5% for coming quarters.

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Kalyan Jewellers India Limited has reported robust financial results for the first quarter, with significant growth in revenue and profitability. The company also announced several strategic initiatives aimed at enhancing operational efficiency and expanding its market presence.
Financial Highlights
- Consolidated revenue reached INR 7,268.00 crores, representing a 31% year-over-year growth.
- Consolidated profit after tax (PAT) increased by 49% to INR 264.00 crores from INR 178.00 crores in the previous year.
- The India business achieved a 31% revenue growth to INR 6,142.00 crores, with PAT growing by 55% to INR 256.00 crores.
- Middle East operations reported a 27% growth, with revenue of INR 1,026.00 crores and a profit of INR 22.00 crores.
Strategic Initiatives
Leaner Credit Period
Kalyan Jewellers has successfully implemented a pilot project to reduce vendor credit periods, which has shown promising results:
- The pilot project demonstrated higher returns than the company's corporate Return on Capital Employed (ROCE).
- The company plans to implement this strategy across its operations, potentially requiring INR 1,500.00-2,000.00 crores in working capital.
- This initiative is expected to drive significant margin improvements and cost efficiencies.
Regional Brand Strategy
The company announced plans to launch a third retail format focusing on regional brands:
- The first regional brand is expected to be launched before the end of the calendar year.
- Initial investment for the regional brand is estimated at INR 300.00 crores.
- The company plans to open five showrooms for the regional brand in the next 12 months.
- After the initial company-owned stores, expansion will primarily be through the Franchise-Owned Company-Operated (FOCO) model.
Jewellery Park
Kalyan Jewellers is developing a jewellery park in Thrissur, Kerala:
- The park will serve as a hub for contract manufacturers, particularly those from South India.
- This initiative aims to improve efficiency and attract younger generations to the jewellery manufacturing business.
Operational Updates
- The company's FOCO revenue share reached 43% as of the end of the quarter.
- Candere, the company's e-commerce business, posted revenue of INR 66.00 crores, up from INR 39.00 crores in the previous year.
- Management expects Candere to reach PAT neutral by the end of the current financial year.
Future Outlook
- The company remains optimistic about the upcoming festive season and is preparing to launch fresh collections and campaigns.
- Kalyan Jewellers anticipates continued strong demand in both its India and Middle East markets.
- The management expects the PBT (Profit Before Tax) for India operations to be on the upper side of 5% for the coming quarters.
Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, expressed satisfaction with the company's performance, stating, "I'm extremely satisfied with our performance in the recently concluded quarter. We have been able to substantially reduce our non-GML working capital loans over the last 2 years, and we are seeing meaningful improvements in our return profile."
As Kalyan Jewellers continues to implement its strategic initiatives and expand its market presence, the company appears well-positioned for sustained growth in the coming quarters.
Historical Stock Returns for Kalyan Jewellers
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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-1.35% | -12.63% | -11.97% | -2.05% | -7.61% | +585.70% |