KALYAN JEWELLERS 2023-24 Annual Report Analysis

Mon, 29 Jul

KALYAN JEWELLERS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

KALYAN JEWELLERS Income Statement Analysis

• Operating income during the year rose 31.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.3% in FY24 as against 8.0% in FY23.
• Depreciation charges increased by 12.2% and finance costs increased by 7.1% YoY, respectively.
• Other income grew by 119.4% YoY.
• Net profit for the year grew by 38.1% YoY.
• Net profit margins during the year grew from 3.1% in FY23 to 3.2% in FY24.

KALYAN JEWELLERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	140,714	185,483	31.8%
Other income	Rs m	379	831	119.4%
Total Revenues	Rs m	141,093	186,314	32.1%
Gross profit	Rs m	11,317	13,586	20.0%
Depreciation	Rs m	2,446	2,743	12.2%
Interest	Rs m	3,535	3,786	7.1%
Profit before tax	Rs m	5,715	7,888	38.0%
Tax	Rs m	1,396	1,925	37.9%
Profit after tax	Rs m	4,319	5,963	38.1%
Gross profit margin	%	8.0	7.3
Effective tax rate	%	24.4	24.4
Net profit margin	%	3.1	3.2

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KALYAN JEWELLERS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 80 billion as compared to Rs 68 billion in FY23, thereby witnessing an increase of 18.2%.
• Current assets rose 16% and stood at Rs 103 billion, while fixed assets rose 40% and stood at Rs 30 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 134 billion as against Rs 111 billion during FY23, thereby witnessing a growth of 21%.

KALYAN JEWELLERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	36,347	41,780	14.9
Current Liabilities	Rs m	67,984	80,328	18.2
Long-term Debt	Rs m	78	0	-100.0
Total Liabilities	Rs m	110,864	133,949	20.8
Current assets	Rs m	88,116	102,651	16.5
Fixed Assets	Rs m	21,409	29,959	39.9
Total Assets	Rs m	110,864	133,949	20.8

KALYAN JEWELLERS Cash Flow Statement Analysis

• KALYAN JEWELLERS's cash flow from operating activities (CFO) during FY24 stood at Rs 13 billion, an improvement of 30.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -11 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 368 million from the Rs -81 million net cash flows seen during FY23.

KALYAN JEWELLERS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	10,134	13,218	30.4%
Cash Flow from Investing Activities	Rs m	-3,839	-1,370	-
Cash Flow from Financing Activities	Rs m	-6,376	-11,480	-
Net Cash Flow	Rs m	-81	368	-

Current Valuations for KALYAN JEWELLERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.8, an improvement from the EPS of Rs 4.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 569.7, stands at 98.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.1 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 31.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	136.6	180.1
TTM Earnings per share	Rs	4.2	5.8
Diluted earnings per share	Rs	4.2	5.8
Price to Cash Flow	x	16.0	31.9
TTM P/E ratio	x	25.1	98.5
Price / Book Value ratio	x	2.7	6.7
Market Cap	Rs m	97,443	278,011
Dividends per share (Unadj.)	Rs	0.5	1.2

Ratio Analysis for KALYAN JEWELLERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.3x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 3.1x during FY24, from 2.6x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 14.3% during FY24, from 11.9% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 27.9% during FY24, from 25.4% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 7.3% during FY24, from 7.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	6	6
Interest coverage	x	2.6	3.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.1	7.3
Return on equity	%	11.9	14.3
Return on capital employed	%	25.4	27.9

To see how KALYAN JEWELLERS has performed over the last 5 years, please visit here.

KALYAN JEWELLERS Share Price Performance

Over the last one year, KALYAN JEWELLERS share price has moved up from Rs 175.3 to Rs 569.7, registering a gain of Rs 394.5 or around 225.1%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for KALYAN JEWELLERS and quarterly results for KALYAN JEWELLERS)