Analyst Concall
Kalyan Jewellers eyeing INR 10 bln Candere sales in 2-3 yrs
This story was originally published at 19:58 IST on 30 January 2025
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--Kalyan Jewellers: Aim for INR 10 bln revenue for Candere in 2-3 yrs
--Kalyan Jewellers: Demand for jewellery strong despite high gold prices
--Kalyan Jewellers: Customers not wary of higher gold prices
--Kalyan Jewellers: Oct-Dec sales growth driven by festival demand
--Kalyan Jewellers: Sticking to guidance of opening 90 new stores in FY26
--Kalyan Jewellers: To repay INR 1.5 bln debt in Jan-Mar
--Kalyan Jewellers: Wedding wear accounts for 60% of total sales as of Dec 31
--Kalyan Jewellers: South India accounts for 40% of total sales as of Dec 31
--CONTEXT: Kalyan Jewellers mgmt comments in post-earnings analyst call
By Narayana Krishna and Ashutosh Pati
HYDERABAD – Kalyan Jewellers India Ltd. is aiming for revenue of INR 10 billion for its wholly-owned subsidiary, Enovate Lifestyle Pvt. Ltd., also known as Candere, in the next 2-3 years, the company's management said in a post-earnings analyst call on Thursday.
For Oct-Dec, Candere reported net sales of INR 550 million against INR 290 million a year ago, while the arm reported a net loss of INR 69 million against a loss of INR 16 million a year ago.
The company is in the process of expanding the Candere store network by adding 15 new showrooms under the brand in Jan-Mar.
Kalyan Jewellers' management said customers are not backing out from buying gold jewellery despite higher prices, and the demand is strong. The management said gold prices in the country have increased around 7% in Oct-Dec when compared to Jul-Sept, but demand is still high and increasing. The demand in Oct-Dec is mainly driven by festivals and higher number of auspicious days.
The Kerala-based jewellery retailer posted a consolidated net profit of INR 2.19 billion, up 21.2% on year, for the December quarter. Its revenue was INR 72.87 billion, up nearly 40%.
The company's management said it will stick to its earlier guidance of opening 90 new stores under the Kalyan brand in 2025-26 (Apr-Mar), adding that agreements for the stores planned for the first six months of the next financial year had already been signed. For Jan-Mar, the company guided for opening 30 new Kalyan showrooms across the country. The management said FY27 onwards, it will focus on increasing its showroom network which will be owned and operated by the company.
The company said it also cautious on expanding its franchise model showrooms, given the challenges involved in operating such stores. As of Dec. 31, South India accounts for 40% of the total sales, while wedding wear accounts for 60% of the sales.
Kalyan Jewellers is planning to repay INR 1.5 billion of debt during Jan-Mar as part of its debt reduction plan. The company made repayment of INR 4.5 billion of debt in FY24. The company said 40-50% of the profits generated will be used for paying down debt and rewarding the shareholders.
On Thursday, shares of Kalyan Jewellers ended at INR 440.65 on the National Stock Exchange, down 1.8% from its previous close. End
Edited by Tanima Banerjee
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