Kalyan Jewellers shares hit 10% upper circuit post-Q3FY25 results

The company’s India operations saw a notable increase in profit after tax (PAT), reaching Rs 218 crore, up from Rs 168 crore in the previous year. Adjusting for the inventory loss due to a customs duty reduction, the PAT growth would be an impressive 54 percent.

Despite the sharp 40 percent decline in the stock price this month, Kalyan Jewellers’ shares have now hit the upper circuit limit after the announcement of these results.

Ramesh Kalyanaraman, executive director, Kalyan Jewellers India, said about the earnings for Q3FY25, “We are extremely excited with the way the current year has progressed. The current quarter has started off well despite the volatility in gold prices. We are upbeat about the ongoing wedding season and expect to end the financial year on a strong note. We are on track for the launch of 30 Kalyan showrooms and 15 Candere showrooms in India during the current quarter."

During the earnings conference call for Q3FY25, Kalyan Jewellers management indicated that EBITDA margins may decline in the near term due to the company’s focus on expanding its FOCO (Franchise Owned, Company Operated) model. However, following debt repayments, Kalyan Jewellers plans to resume expansion of company-owned stores starting from FY27. The management expects the revenue share between franchise-owned and company-owned stores to reach a balanced 50:50 by FY27. Candere’s revenue is expected to reach Rs 1,000 crore within the next three to four years. EBITDA margins are expected to stabilize at around 6 percent by FY27.

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