Kalyan Jewellers on Monday reported a 1.6 percent year-on-year (YoY) decrease in its consolidated profit after tax to Rs 71 crore for the quarter 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.
The firm clocked a 18.4 percent increase in consolidated revenue at Rs 3,381.8 crore during the quarter under review, which stood at Rs 2,857 crore in the year-ago period. Its Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) were recorded at Rs 256.7 crore, up 17.5 percent compared to Rs 218.5 crore in the same quarter of the last fiscal.
Margins were flat at 7.6 percent on-year.
Shares of Kalyan Jewellers were trading 2.12 percent lower at Rs 106.35 apiece in today's trade. It opened at Rs 109.30 and went on to hit an intra-day high and low of Rs 111.45 and Rs 104, respectively. The stock rose 3 percent in the last 6 months, while it fell 15 percent on a year-to-date basis.
According to Bloomberg, the company has six 'buy' calls, zero 'hold' and zero 'sell' calls. The 12-month consensus target price on the stock is Rs 156.50, which indicates a 47 percent upside.
Kalyan Jewellers plans to open 52 showrooms in the non-South markets in 2023, which means almost one store every week, at an investment of Rs 1,300 crore that will largely be borne by the franchisee. Non-South markets contribute to 35 percent of the company’s India business and Kalyan aims to take it to 50 percent by 2025. The company is working with the Franchise Owned Company Operated (FOCO) model.
First Published: May 15, 2023 1:54 PM IST
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