Kalyan Jewellers India Ltd. is slated to announce its September quarter results today, following a period of healthy demand across the jewellery sector. Analysts anticipate a strong performance, forecasting substantial year-on-year growth in both profit and sales.
Robust Growth in India and International Markets
During the second quarter, Kalyan Jewellers demonstrated significant growth in India, achieving a 27% year-on-year increase. This was supported by a 20% rise in same-store sales, despite the high base set by all nine days of Navratri falling in Q2 of the previous year. The company's international business also saw an 18% year-on-year growth, contributing 11% to the consolidated revenue.
Overall demand for jewellery makers remained robust, rising 28% year-on-year, even amid elevated gold prices. This growth was fueled by festive demand, a trend towards premiumisation, and continued market share gains by organized players. However, demand did soften towards the end of the quarter due to a shift in the festive calendar to Q3.
Analyst Expectations and Showroom Expansion
Investment firm Jefferies projects Kalyan Jewellers to report a pre-exceptional profit of Rs 364.10 crore for the quarter, marking a 39.8% year-on-year increase. They also anticipate a 28.3% year-on-year jump in sales to Rs 10,078 crore, with EBITDA expected to rise 32.7% year-on-year to Rs 660 crore.
Meanwhile, MOFSL estimates Q2 profit at Rs 332 crore and sales at Rs 10,452 crore. The domestic brokerage expects a contraction in gross profit margin by 140 basis points year-on-year to 11.1%, and an EBITDA margin contraction of 60 basis points year-on-year to 5.7%.
Kalyan Jewellers significantly expanded its footprint during the quarter, launching 12 new showrooms in India (11 net additions) and nine Candere showrooms across the country. Additionally, the company opened one Kalyan showroom in the UK and its first Akshaya Thanga Maligai (ATM) store in Chennai, bringing its total showroom count to 546.