Kalyan Jewellers Q2 FY25: Net Profit Declines 3.3%, Revenue Grows 37%

Kalyan Jewellers Ltd. reported its financial results for the quarter ending September 2024, showing a decline in net profit despite strong revenue growth. The company posted a net profit of ₹130 crore, down 3.3% from ₹134.8 crore in the same quarter last year. A key factor behind the decline was a one-time loss of ₹69 crore, resulting from a reduction in customs duty in India during the quarter. Revenue surged by 37.5%, reaching ₹6,091.5 crore, up from ₹4,427.6 crore in the previous year. Additionally, EBITDA rose by 4.3%, reaching ₹327.1 crore, up from ₹313.6 crore in the same time last year.

Quick Insights:

• Revenue: ₹6,091.5 crore, up by 37.5% YoY.
• Net Profit: ₹130 crore, down by 3.3% YoY.
• Segment Performance: Candere, the company’s e-commerce division generated revenue of ₹80 crore in H1FY25, compared to ₹66 crore in H1FY24.
• Management’s Take: Robust growth despite volatile gold prices. Outlook remains positive.
• Stock Reaction: Results were announced on Wednesday post-market hours. Kalyan Jewellers share price closed at ₹666.05 on NSE. 

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Management Commentary

Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers India, post Q2 results stated, “We are extremely excited with the way the current year has progressed thus far, despite volatile gold prices, and the ongoing quarter is also witnessing robust footfalls. We recorded SSSG (same-store sales growth) in excess of 20 percent for the Diwali minus 30 days period when compared to the base year.”

He mentioned that the company is optimistic about the ongoing wedding season across the country and expects to finish the calendar year on a strong note, driven by higher consumer engagement and continued demand.

Stock Market Reaction After Quarter Results

Results were announced on Wednesday post-market hours. Shares closed at ₹666.05 on NSE, around 5.43% down. On Tuesday, shares of Kalyan Jewellers closed at ₹704.30. However, shares have rallied more than 85% this year. 

About Kalyan Jewellers

Kalyan Jewellers is a leading jewelry retailer based in Thrissur, Kerala, with a significant presence across India and in international markets. During the recently concluded quarter, Kalyan Jewellers launched 15 Franchisee-Owned-Company-Operated (FOCO) showrooms across India, with a strong pipeline of additional showrooms set to open in October. In the Middle East, the company experienced a revenue growth of approximately 24% compared to the same period last year. As of July 2024, Kalyan Jewellers has 277 showrooms in operation across India and the Middle East.