Khazanchi Jewellers Limited has reported a strong start to the fiscal year, with a remarkable 65% year-on-year growth in Profit After Tax (PAT) for the first quarter. The company's strategic focus on Southern India expansion and premium product offerings appears to be paying off, as it capitalizes on festive demand and evolving consumer preferences.

Q1 Financial Highlights

The jewellery retailer posted impressive financial results for the quarter:

The company's EBITDA margin improved significantly to 5.24% from 3.53% in the same quarter last year, while the PAT margin rose to 3.75% from 2.41%.

Growth Drivers and Strategic Initiatives

Rajesh Kumar, Chairman & Joint Managing Director of Khazanchi Jewellers, attributed the strong performance to several factors:

1. Festive and Wedding Demand: The company capitalized on the seasonal uptick in jewellery purchases.
2. High Gold Prices: Record-high gold prices contributed to increased revenue.
3. Product Innovation: A shift towards lighter yet high-value designs drove consumer interest.
4. Southern India Focus: The company leveraged its strong presence in the region to capture market share.
5. Brand Trust: Khazanchi's reputation for hallmarked purity and transparent pricing supported sales momentum.
6. Agile Inventory Management: Efficient stock control ensured robust sales performance.

Future Outlook

Khazanchi Jewellers is targeting sustained growth through multiple strategic initiatives:

1. Expanding Southern India Presence: The company plans to further strengthen its foothold in the region.
2. Premium Lightweight Jewelry: Focus on innovative designs to meet evolving consumer preferences.
3. Seasonal Demand Capture: Strategies to maximize sales during festive and wedding seasons.
4. Industry Reforms: Khazanchi aims to benefit from ongoing reforms enhancing transparency and affordability in the jewellery sector.

Corporate Actions

The Board of Directors has recommended a dividend of ₹0.50 per equity share (5%) for the financial year ended March 31, 2025, subject to shareholder approval. Additionally, the company plans to increase its authorized share capital from ₹25 crore to ₹35 crore, indicating potential for future growth and expansion.

Khazanchi Jewellers' strong Q1 performance and strategic focus on Southern India position it well in the competitive Indian jewellery market. As the company continues to adapt to changing consumer preferences and industry trends, investors and market watchers will be keen to see if this growth trajectory can be maintained in the coming quarters.

Khazanchi Jewellers , a prominent player in the Indian jewellery sector, has announced a significant business collaboration with Malabar Gold & Diamonds, marking a major milestone in the company's growth strategy.

Strategic Partnership

Khazanchi Jewellers, known for its expertise in gold, diamonds, precious stones, and bullion items, has successfully onboarded Malabar Gold & Diamonds Limited as a valued client. This partnership is expected to substantially boost Khazanchi's business growth and strengthen its position in the B2B jewellery supply segment.

Impact on Business

The collaboration with Malabar Gold & Diamonds, one of the world's largest jewellery retailers, is anticipated to bring several benefits to Khazanchi Jewellers:

• Enhanced Production Utilization: The partnership is expected to significantly increase Khazanchi's production capacity utilization.
• Improved Revenue Visibility: With steady, high-volume institutional orders, the company's revenue streams are likely to become more predictable.
• Elevated Brand Positioning: Aligning with a globally recognized brand like Malabar Gold & Diamonds is set to enhance Khazanchi's market reputation.

Management's Perspective

Mr. Rajesh Mehta, Chairman & Joint Managing Director of Khazanchi Jewellers Limited, expressed his enthusiasm about the partnership, stating, "Partnering with Malabar Gold & Diamonds is a transformational moment for the Company. Their global stature and stringent quality benchmarks are a strong validation of our design capabilities, manufacturing excellence, and commitment to timely delivery."

He further added, "This association is more than just a business collaboration; it opens up long-term growth opportunities for us across India and potentially global markets."

About Malabar Gold & Diamonds

Malabar Gold & Diamonds, established in 1993, has grown into a global jewellery retail giant with:

• Over 400 outlets across 13 countries
• Presence in India, Middle East, Far East, USA, UK, Canada, and Australia
• Annual turnover of USD 7.5 billion
• 14 manufacturing units across India and the GCC
• Portfolio of 12 exclusive jewellery brands

Khazanchi Jewellers: A Snapshot

• Over five decades of experience in the Indian jewellery sector
• Specializes in gold, diamonds, precious stones, and bullion items
• Holds BIS Hallmark Certificate and Import-Export Certificate
• Engages in gold imports through the India International Bullion Exchange IFSC Limited (IIBX) platform

Financial Performance

Khazanchi Jewellers reported the following financial results:

This strategic partnership between Khazanchi Jewellers and Malabar Gold & Diamonds represents a significant development in the Indian jewellery industry, potentially reshaping the landscape of B2B jewellery supply and manufacturing.