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Revenue
₹4,415 Cr
verified against source
Revenue YoY
27%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Kalyan Jewellers reported a strong Q2 FY24 with consolidated revenue of ₹4,415 crore (+27% YoY) and PAT of ₹135 crore (+27% YoY). India business grew 32% in both revenue and PAT, driven by robust same-store sales growth of 10% (8% South, 15% non-South) and rapid franchise expansion. The company opened 15 stores in Q2 and plans 65 for FY24, with 80 targeted for FY25. Franchisee contribution reached 20% of India revenue, and management is renegotiating terms to improve margins by 25-50 bps and shift CapEx to franchisees. Debt reduction is on track, with non-GML loans down ₹157 crore in H1. Near-term demand remains strong with 35% revenue growth in Q3-to-date. Risk: Rising gold price volatility could dampen consumer sentiment and pressure margins.
Colored figures show movement against the previous available record.
Guidance to track
- Management plans to open approximately 80 Kalyan showrooms across India in the next financial year, mostly in non-South markets.
- The company aims to reduce debt by ₹350 crore in the current financial year, with ₹157 crore already achieved in H1.
- For new franchisee stores from FY25, Kalyan expects to improve its margin share by 25-50 basis points through revised terms.
- Management expects to fully repay non-gold metal loan working capital debt in India within the next 2-3 years.
Risks flagged
- Sharp fluctuations in gold prices can cause consumers to pause purchases, as seen during the quarter. Management noted that Middle East demand is particularly sensitive.
- The franchisee model is still in pilot stage in South India with only 6 LOIs signed. Management was evasive on conversion plans for existing owned stores.
- Candere revenue declined in Q1 and Q2. Management downplayed it as 'inconsequential' but offered no turnaround timeline, raising concerns about the omni-channel strategy.
- Higher interest rates in the Middle East compressed PBT margins despite stable gross margins, as noted by management.
Key quotes
- We have witnessed approximately 35% growth in revenue for the current quarter till twelfth of November and compared to the same period during the prior year.
- For the next financial year, we have drawn up plans to launch around 80 Kalyan showrooms across India.
- We'd probably get between 25 basis to 50 basis, thereabout. Cash flows on the capital expenditure that we put out on the top, that are going to move from our balance sheet to the franchise balance sheet.
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