Kalyan Jewellers India Ltd

- There is no mention of any current or planned new fundraising through debt or equity in the provided transcript. - The company is focusing on reducing net debt by INR 350 to 400 crores during FY 2025 via free cash flow and asset sales. - Debt reduction targets are INR 350-400 crores next year, and INR 400-500 crores the year after, aiming to eventually hold only gold loans and eliminate non-gold loan working capital limits. - Capital expenditure (Capex) is expected to decline as more stores are franchised, reducing capital needs. - No explicit plans for raising fresh equity or debt were disclosed; the strategy centers on deleveraging and capital-efficient expansion through franchising.

- For the next financial year, Kalyan Jewellers plans to open 80 franchise Kalyan stores in India. - Out of these, 50 stores will be fully funded by franchise partners (including Capex), and for the remaining 30, Kalyan will fund the Capex. - Estimated Capex for the 30 stores is around INR 3-3.5 crores per store, totaling about INR 100 crores. - Additionally, maintenance Capex is expected, bringing total Capex for next year to approximately INR 250 crores. - In the following year, Capex will reduce to around INR 150 crores as all new store expansions will be franchise-funded, requiring no Capex from Kalyan. - The management anticipates almost no Capex increase beyond this phase, transitioning to a capital-light franchise model. - Outside India, the focus will be on opening 6 new stores per year and converting existing stores into franchise formats to reduce invested capital.

- Strong store expansion planned with 130 new showrooms in India for the current year: 80 Kalyan and 50 Candere stores. - 6 new showrooms targeted overseas this financial year. - Continued focus on franchise model expansion, especially for non-South markets, with 80 franchise stores signed, 50 fully franchise-funded. - Expected steady same-store sales growth (SSSG) around 6-7%, despite last year's exceptionally high 12-15% range. - New customer acquisition is a key driver, with 38% new customer growth noted recently. - Volume growth is expected to moderate due to high gold prices, but value growth anticipated due to volume-value mix. - Candere's offline expansion underway with aspirations for 50 new stores this year, but profitability milestones expected to be clearer after Q1 FY25. - Revenue growth may see some seasonality changes with increased share of non-South markets and franchise operations.

- PBT margins are expected to cross 5% within 2-3 years due to franchise mix and debt reduction. - Franchise stores have budgeted PBT margins of ~5.25%, and existing owned stores already near 4.8%, with potential to exceed 5%. - EBITDA margins for franchise stores expected around 5%, owned stores closer to 7.5%-8%. Overall EBITDA margin may decline due to increasing franchise revenue share. - Growth in profitability expected through operating leverage as debts reduce, lowering finance costs. - Increase in franchise stores with capex borne by franchise partners improves ROCE, targeted to reach 18%-20% by end of FY 2025. - Strong same-store sales growth (SSSG) momentum and new customer acquisition support revenue growth. - Modest margin improvement expected on better gross margins beyond 20% at store level, with marginal share in increased gross margin. - No significant pressure on gross margins; investments in advertising aimed at maintaining market share, which may impact short-term EBITDA.

- As of the latest update, Kalyan Jewellers has a pipeline inventory investment of approximately INR 200 crores. - Existing showrooms required an investment of around INR 300 crores due to price rises and refurbishments. - Additional showroom inventory held at year-end (planned openings in early April) was close to INR 200 crores. - Total inventory investment across these categories sums to a significant portion of working capital. - New showrooms added in the year were all franchise stores (58 new franchise stores in India). - There is a plan to open 130 showrooms in India in the current financial year: 80 Kalyan franchise and 50 Candere showrooms. - Additionally, 6 new showrooms are planned overseas during the current financial year. - These expansions contribute to an increasing order book or pending store openings.