Kalyan Jewellers reports flat Q4 margins on higher costs

Kalyan Jewellers reported an 18% increase in overall revenue, to 33.82 billion rupees ($413.6 million), helped by new showroom launches outside of its core markets in south India.

The revenue jump was offset by a near 18% growth in the Thrissur, Kerala-based company’s expenses as well. That led to its earnings before interest, tax, and amortisation (EBITDA) margins staying flat at around 7.6%.

Kalyan Jewellers also decided to sell two company-owned aircraft in an effort to lower its non-essential costs.

However, it had to write down the value of the aircraft by 332.5 million rupees, which led to a 3% drop in its profit to 700.9 million rupees. Excluding that, its profit rose 33.5%.

Kalyan Jewellers said it was seeing encouraging trends for the current quarter on the back of the wedding season and Akshaya Tritiya – an Indian festival considered auspicious for investments in gold in April.

Moreover, analysts expect gold prices to stay near all-time highs in the coming months as central banks stop raising interest rates and investors buy bullion as a hedge against economic uncertainty.

Kalyan Jewellers’ shares, which were higher before the results, were last down around 2%. ($1 = 81.7800 Indian rupees)