Kalyan Jewellers India Q3 results today; what stock investors should know

Kalyan Jewellers India Ltd, whose shares have fallen 42 per cent in January so far, is all set to announce its December quarter results today. Analysts said jewellery companies continued to enjoy robust growth in Q3 with strong same store sale growth (SSSG). The average gold prices were up 30 per cent YoY for the quarter in rupee terms. The one-off impact of inventory losses though may optically weigh down margins, analysts said.

For Kalyan, MOFSL sees adjusted profit growing 46.3 per cent YoY to Rs 264.30 crore compared with Rs 180.60 crore in the same quarter last year. Sales are seen rising 38.4 per cent YoY to Rs 7,228 crore from Rs 5,223 crore. SSSG is expected to be at 21 per cent. MOFSL expects 25 store additions for India Kalyan, 8 for Candere and 3 store addition in the Middle East, taking the total count to 339 stores.

"We expect inventory loss of Rs 50-60 crore in 3Q due to customs duty reduction. We have not considered the impact in operating performance numbers," MOFSL said.

ICICI Securities said Kalyan continued to outperform Titan in Q3FY25 with strong (standalone jewellery) revenue growth of 41 per cent against 25 per cent YoY for Titan. Also its SSSG stood at 24 per cent YoY against 22 per cent YoY for Titan’s domestic jewellery business). 

"There has been acceleration in revenue growth trajectory for both the players driven by strong festive and wedding demand across both gold and studded categories. Kalyan benefits from rapid retail expansion (+30 per cent YoY vs Tanishq’s +10 per cent YoY) through its (capital-light) FOCO model," it said.

Kalyan added 24 new showrooms (up 30 per cent YoY) in Q3FY25 and 49 stores in 9MFY25 in India, in-line with expectations.  It plans to open 30 new showrooms of Kalyan in India and 15 new showrooms of Candere in Q4FY25. Overall, it plans to open 80 new showrooms of Kalyan, implying retail expansion of 40 per cent in Kalyan in FY25, similar to FY24. 

"It also launched its first store in the US (COCO) during the quarter. Further, the management plans to open 90 new stores of Kalyan (implied growth of 32 per cent) (FOCO: 75 stores in non-south India and 15 stores across South India and International markets) and 80 Candere stores in India," ICICI Securities said.