Kalyan Jewellers intends to sell aircraft to reduce gross debt by 15% in FY24

He said, “It’s part of our strategy which we decided last year wherein we want to liquidate certain non-core assets in the company, which includes the aircraft and we already signed a letter of intent (LoI) to sell those aircraft and that is why the onetime write-off is there in the books and the proceeds will go and decrease our bank exposure or anything which is more capital efficient is what we will do with the money which comes in.”

In addition to the aircraft sale, Kalyan Jewellers pledged land parcels as collateral against bank loans. This move demonstrates the company's proactive approach to managing its financial obligations. By providing collateral, Kalyan Jewellers aims to secure favourable terms for its loans while maintaining its commitment to repaying the borrowed funds.

The decision to utilize land parcels as collateral underscores the company's confidence in its core business operations and assets. Kalyan Jewellers recognizes the value of these land parcels and believes in their potential to generate returns in the future.

As Kalyan Jewellers continues its efforts to reduce debt, the sale of aircraft and collateralization of land parcels represent significant steps toward achieving its goals. By carefully managing its financial obligations, the company aims to strengthen its balance sheet and create a more favourable financial position for itself and its stakeholders.

Kalyan Jewellers, on May 15, reported a 1.6 percent year-on-year (YoY) decrease in its consolidated profit after tax to Rs 71 crore for the quarter that ended March 31, 2023. The company reported a net profit of Rs 72 crore in the same quarter of the previous fiscal year. The board has recommended a final dividend of Rs 0.50 paise, which is 5 percent per equity share of Rs 10 each, for fiscal 2023.

 

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