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Kalyan Jewellers profit rises 32% YoY, but sequentially declines in June quarter

Revenue climbed 46% YoY to ₹10,589 crore, while EBITDA margin fell 100 basis points to 6% as studded jewellery contribution weakened.

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Kalyan Jewellers reported June-quarter earnings after market hours on August 4, posting net profit of ₹348 crore, up 32% year on year from ₹264 crore. On a sequential basis, profit slipped from ₹409 crore in the March quarter, according to LiveMint Markets.

The company said revenue from operations rose to ₹10,589 crore, up 46% YoY, but declined 3% quarter on quarter. It also noted that revenue contribution from studded jewellery fell during the quarter, with its share in India dropping to 29.7% from 30.3% a year earlier, and in the Middle East to 16.3% from 18.3%.

At the operating level, EBITDA increased 25% YoY to ₹632 crore, but fell 14% sequentially, and EBITDA margin contracted by 100 basis points to 6% on both YoY and QoQ measures. Gross margins were pressured by a higher proportion of exchanged gold, promotional offers under the exchange campaign, and a one-off gain in the base quarter, LiveMint Markets said.

Kalyan Jewellers expanded its retail presence by adding 12 showrooms in India during the June quarter, versus 10 a year earlier, and reported 38% YoY India revenue growth led by same-store sales growth of 28%. The company also said it is in discussions with potential investors in the Middle East to build a larger Franchisee Owned, Company Operated partnership.

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