Kalyan Jewellers reports 24% rise in Q1 PAT at ₹178 crore, shares fall 1%

Revenue from operations rose 26.5% YoY to ₹5,535.48 crore during the quarter while operating earnings before interest, tax, depreciation, and amortization (EBITDA) rose 16% to ₹376 crore. Total revenue increased 27% to ₹5,557.64 crore. EBITDA margins, however, declined to 6.8% from 7.4% in the same period a year ago.

The firm said new customer additions continued to stay healthy and share of new customers stood at over 35% during the quarter. The company saw a higher share of revenue from franchised showrooms leading to lower overall gross margin and EBITDA margin. Revenue growth was driven largely by same-store-sales-growth (SSSG) of 10%.

Kalyan Jewellers added 13 new showrooms during the first quarter in India. The firm pointed out that fiscal year 2025 will see the launch of 80 franchise owned company operated stores (FOCO) in India.

The firm also launched its first FOCO showroom in the Middle East during FY24 with five more letter of intents (LOIs) signed for FY25.

The company pointed out that the FOCO model of franchised showrooms is playing a major role in increasing the pace of expansion, both in India and the Middle East in a more capital efficient return accretive path. It provided further fillip to the overall return profile of the business, it said.

The firm concluded sale of a movable non-core assets during the quarter for which it received ₹110.30 crore. It is also planning a sale of immovable non-core assets in the current fiscal year.

Shares of the company have risen over 53% since the beginning of the year. The stock has gained nearly 231% in the last one year.