Kalyan Jewellers Q2 earnings show 3.3% dip in profit, revenue growth rises 37%

Kalyan Jewellers Ltd., headquartered in Thrissur, Kerala, released its earnings report for the September quarter, revealing a decline in both net profit and profit margins year-on-year. The jewelry retailer reported a net profit of ₹130 crore, reflecting a 3.3 percent decrease from ₹134.8 crore in the corresponding period of the previous year.

A significant factor contributing to this decline was a one-time loss of ₹69 crore incurred due to a reduction in customs duty in India during the quarter. Despite this setback, the company posted a robust 37.5 percent increase in revenue, amounting to ₹6,091.5 crore compared to ₹4427.6 crore in the same period last year.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for Kalyan Jewellers rose by 4.3 percent, reaching ₹327.1 crore, up from ₹313.6 crore in the previous year. However, the EBITDA margin experienced a decline of 170 basis points, standing at 5.4 percent on a year-on-year basis.

Meanwhile, in the first half of financial year 2024-25 (H1FY25), the company's net profit climbed 10.6 percent to ₹308 crore as against ₹278.4 crore in H1FY24. Its total income also increased 32 percent to ₹11,649 crore versus ₹8815 crore in the same period last year.

Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers India, expressed optimism about the company’s performance despite challenges. “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,” Kalyanaraman stated.

He added that the company is positive about the current wedding season across the country and anticipates closing the calendar year on a strong note, buoyed by increased consumer engagement and sustained demand.

Stock price trend

The stock declined as much as 5.4 percent to its day's low of ₹666.30 post the earnings.

Post this fall, it is over 15 percent away from its peak of ₹786, hit in September 2024. Meanwhile, it has surged over 118 percent from its 52-week low of ₹305.20, recorded in Novemebr last year.

The stock has jumped 109 percent in the last 1 year and over 89 percent in 2024 YTD.