Kalyan Jewellers Reports Q1FY25 Earnings: Net Profit Rises 24%
Kalyan Jewellers India Ltd. has reported impressive financial results for Q1 FY25, showcasing a 24% increase in net profit, which reached ₹177.8 crore compared to ₹144 crore in the same quarter of the previous year. This significant profit growth is accompanied by a substantial 26.5% rise in revenue from operations, which climbed to ₹5,535.5 crore from ₹4,375.7 crore. Additionally, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 16.5%, reaching ₹376.1 crore, up from ₹322.8 crore in Q1 FY24.
Margins and Operational Insights
Despite these strong gains, Kalyan Jewellers experienced a slight dip in its EBITDA margin, which fell to 6.8% from 7.4% in the same quarter last year. This decrease in margin is attributed to higher advertising expenses and a greater share of revenue from franchised showrooms, which typically offer lower profit margins. On the operational front, the company reported notable achievements, including a 79% increase in revenue compared to Q1 FY24. The same-store sales growth (SSSG) rose by 12%, indicating robust performance across existing stores. Furthermore, new customer additions constituted over 35% of the total customer base, reflecting successful customer acquisition strategies. As of the end of the quarter, Kalyan Jewellers operated 277 showrooms, demonstrating ongoing expansion and market presence.
Strategic Developments and Market Response
In addition to its financial successes, Kalyan Jewellers is pursuing strategic initiatives to bolster its market position. The company announced plans to convert its business unit, Candere, into a wholly-owned subsidiary, a move aimed at enhancing its digital footprint and broadening its market reach. Despite these positive developments, Kalyan Jewellers’ share price closed 2.55% lower at ₹565.05 per share, indicating a cautious market reaction. Overall, the company’s Q1 FY25 results highlight significant growth in net profit, revenue, and operational expansion. While the slight dip in EBITDA margin presents a challenge, the strategic initiatives and continued market expansion position Kalyan Jewellers well for future success.
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