Analyst Concall
Kalyan Jewellers to expand presence globally in FY26
This story was originally published at 20:45 IST on 13 November 2024
Register to read our real-time news.Informist, Wednesday, Nov. 13, 2024
Please click here to read all liners published on this story
--Kalyan Jewellers: To open showroom in US by Dec-end
--CONTEXT: Comments by Kalyan Jewellers mgmt in post-earnings analyst concall
--Kalyan Jewellers: Opened net 14 showrooms under co brand Jul-Sept
--Kalyan Jewellers: Opened net 12 showrooms under Candere brand in Jul-Sept
--Kalyan Jewellers: Seeing strong demand from consumers for gold products
--Kalyan Jewellers: Plan on expanding Candere branded showrooms by end-FY25
--Kalyan Jewellers: May opt to expand stores in regions outside south India
--Kalyan Jewellers: Working on plan to expand presence in UK, US, West Asia
--Kalyan Jewellers: Aim to open 30 showrooms in India in Jan-Mar
--Kalyan Jewellers: Aim to open more than 80 showrooms in FY26
--Kalyan Jewellers: Aim to reduce debt by INR 3.5 bln-INR 4.0 bln in FY26
--Kalyan Jewellers: Aim to reduce debt by INR 3 bln by end of FY25
--Kalyan Jewellers: See potential to open 25 stores in mkts outside West Asia
By Apratim Sarkar and Avishek Rakshit
MUMBAI, KOLKATA – Kalyan Jewellers Ltd. is planning to strengthen its presence in global jewellery markets in the financial year 2025-26 (Apr-Mar) and also plans to foray into the UK and US jewellery markets, as well as expand its presence in West Asia, Executive Director Rajesh Kalyanaraman said in a post-earnings conference call Wednesday.
According to an internal survey conducted by the company, Kalyan Jewellers has the potential to open 25 stores in countries outside West Asia, Kalyanaraman said. He said the company is also on track to open a showroom in the US by the end of December quarter.
Talking about the company's Indian jewellery business, the company said the store expansion was mainly in the non-southern states as margins were higher compared to the southern states. The company said franchise interest is low in the southern states as compared to other states. The company is also looking to expand stores in regions outside south India.
The management said it aims to open more than 80 showrooms in FY26. In India, it plans to open 30 showrooms by the end of the March quarter. The company also opened 12 new showrooms under the Candere brand and 14 new showrooms under its company brand during the September quarter. The company has a total of 252 stores in India till date, of which it owns 120 stores, while 132 stores are franchised.
The company aims to reduce debt by INR 3.5 billion-INR 4 billion in FY26. The initial plan was to reduce debt by INR 3 billion by the end of FY25, the management said. The company said it is on track for repayment of debt in India by next year because of additional cash flow from its new franchise model.
The management expressed its interest in taping the US and UK markets because of the higher Indian population residing in these countries who are interested in purchasing jewellery. The company has also started surveying locations in London, New Jersey, and Los Angeles to open showrooms.
Kalyanaraman said the company is seeing strong demand from consumers for gold products. The company expects gold sales to increase because of the upcoming wedding season, and it has reported strong gold sales because of Diwali. The company also expects the products sold under the Candere brand to report stronger sales in the coming two quarters.
Kalyan Jewellers announced its earnings during the market hours. The company reported a consolidated net profit of INR 1.31 billion for the September quarter on consolidated revenues of INR 60.65 billion. On Wednesday, shares of Kalyan Jewellers closed at INR 670.45 on the National Stock Exchange, down 4.8%. End
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
