Gold stock engaged in the business of buying and selling Gold ornaments, Jewelleries, Gold bullion, and Silver bullion jumped 13 percent in the day’s trade upon posting its Q1FY25 results with a 232 percent jump in Net Profits.
Price Action
With a market Capitalization of Rs. 1,236 Crores, the shares of Khazanchi Jewellers Limited were trading at Rs. 499.70 per equity share, up 5 percent from its previous day’s close price of Rs. 475.60.
About the Company
Khazanchi Jewellers Limited is engaged in the business of buying and selling Gold ornaments, Jewellery, Gold bullion, and Silver bullion. It specializes in the production and sale of a wide range of jewelry products, including gold jewelry, diamond jewelry, precious stones, and other fancy jewelry and bullion in the form of coins and bars
Q1FY25 Results
Khazanchi Jewellers Limited’s Revenue from operations grew by 104 percent YoY from Rs. 186.76 Crores in Q1FY24 to Rs. 381.07 Crores in Q1FY25 and the EBITDA grew by 109 percent from Rs. 6.45 Crores in Q1FY24 to Rs. 13.48 Crores in Q1FY25.
Its Net Profit grew by 232 percent YoY from Rs. 2.77 Crores in Q1FY24 to Rs. 9.21 Crores in Q1FY25 and Its Net Profit Margin increased from 1.48 percent in Q1FY24 to 2.42 percent in Q1FY25. The earnings per share grew by 140 percent from Rs. 1.55 to Rs. 3.72.
Management Message and Guidance
Commenting on the performance Mr. Rajesh Kumar, Chief Operating Officer, of Khazanchi Jewellers Limited said,
“We are pleased with the remarkable growth trajectory that Khazanchi Jewellers Limited has achieved. The overall performance of the company has shown significant growth, underscoring our continued operational efficiency and profitability. In the full year FY24, we achieved a PAT of Rs. 27.32 Cr, while for the Q1FY25 our PAT reached RRs 9.21 Cr. This substantial growth reflects our successful strategies and commitment to excellence in the jewelry industry.
Driven by strategic capacity expansions and initiatives in FY24, we successfully met increased demand and enhanced our market presence. Our commitment to delivering high-quality jewellery products has significantly improved our operational efficiency.
Additionally, we look forward to the upcoming launch of our flagship showroom at Sowcarpet, Chennai, which is expected to open this year. Spanning 10,000 sq. ft., this showroom will feature an extensive range of silver and diamond jewellery, designed to offer an exceptional shopping experience.
Looking ahead, we plan to expand our showroom network to sustain our growth momentum. The reduction in the custom duty on gold and silver from 15 percent to 6.4 percent in the Union Budget 2024-25 is a significant development that will benefit the company.
This reduction will make precious metals more affordable, positively impacting the jewellery industry by driving growth and increasing accessibility. We anticipate that this change will enhance the affordability of our products, broaden our market opportunities, and contribute to our continued success.”
Written by: Bharath K.S
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