Kalyan Jewellers Q2 Results: Profit Jumps 64% To Rs 427 Crore On One-Time Gain, Revenue Up 31%

Kalyan Jewellers India reported a 63.9% year-on-year jump in consolidated net profit to Rs 427 crore for the September quarter, aided in part by a one-time gain of Rs 73.5 crore. 

The jewellery retailer had posted a net profit of Rs 261 crore in the corresponding quarter last year.

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Revenue from operations rose 31.4% to Rs 10,323 crore during the quarter, compared with Rs 7,856 crore a year earlier, reflecting growth in the company's business during the reporting period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 29.7% year-on-year to Rs 644 crore, against Rs 497 crore in the year-ago period.

However, the company's operating margin remained largely flat, easing to 6.2% in the September quarter from 6.3% a year earlier, indicating that EBITDA growth trailed the expansion in revenue.

The Rs 73.5 crore one-time gain contributed to the reported bottom-line performance, accounting for a portion of the sharp increase in net profit. 

The company's operating performance, meanwhile, was reflected in the growth in revenue and EBITDA during the quarter.

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Kalyan Jewellers, one of India's leading organised jewellery retailers, operates across domestic and international markets through its Kalyan and Candere brands.

Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers India Limited said, “The ongoing festive quarter has started off very well and we are very encouraged by the growth on the ground, especially during Navratri and Dhanteras. We are upbeat about the wedding season and look forward to ending the quarter on a strong note.”

The September-quarter performance comes amid continued expansion in India's organised jewellery retail market, where established players are seeking to strengthen their presence through store additions and a wider retail footprint.

Investors generally distinguish between recurring earnings and one-off gains. The underlying profit performance is still encouraging, but the 64% growth may overstate the improvement in the company's regular earnings.

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