KOCHI: Joyalukkas India Ltd (JIL) has firmly established itself as one of the leading jewellery retailers in the country, achieving a significant financial milestone in the fiscal year 2023-24 (FY24).
The Joyalukkas profit after tax (PAT) surged past the Rs1,000-crore mark, reaching Rs1,020 crore, compared with Rs899 crore in the previous fiscal – registering a year-on-year growth of 13.46 per cent.
During the same period, JIL’s operating income rose from Rs14,513 crore to Rs16,903 crore. Despite this growth, the net profit margin saw a marginal dip from 6.2 per cent to 6 per cent, reflecting a competitive yet dynamic operating environment.
Crisil Ratings forecasts that Joyalukkas’ revenue will grow by more than 14-15 per cent in FY25, backed by strong operating profitability. The company’s operating margin is expected to remain healthy at 10-11 per cent, translating into an estimated EBITDA of over Rs2,000 crore.
The company’s net worth rose sharply from Rs3,317 crore as of March 31, 2023, to Rs4,337 crore as of March 31, 2024, driven by healthy cash accruals. Net worth is projected to increase further to around Rs5,500 crore in the current fiscal.
Financial position and debt profile
JIL’s total bank facilities stand at Rs1,450 crore. To support higher sales and fund inventory for new stores, the company’s total debt increased slightly from Rs1,668 crore to Rs 1,707 crore. Despite this, JIL is expected to sustain its financial resilience through effective cost management and stable profitability.
JIL has faced regulatory challenges in the past. In February 2023, the Enforcement Directorate (ED) attached assets worth Rs305.84 crore belonging to promoter Joy Alukkas Varghese under Section 37A of the Foreign Exchange Management Act, 1999 (FEMA).
The assets included landed properties, bank accounts, fixed deposits, and JIL shares. However, in August 2023, the Commissioner of Customs and Competent Authority under Section 37A(3) of FEMA set aside the seizure order, and the attachment was later released by a High Court order. Importantly, JIL’s operations remained unaffected during this period.
The matter concerning the alleged FEMA violation is currently with the Adjudicating Authority, where the hearing has concluded, and the final order is awaited.
Market presence and expansion
Founded in 2002, JIL has grown into one of India’s most prominent jewellery retailers. The company operates 98 showrooms as of December 2024, with a strong presence in South India, particularly in Kerala, Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka, according to CRISIL.
In recent years, JIL has expanded into key metropolitan markets, including New Delhi, Punjab, Kolkata, and Mumbai.
A golden future ahead
JIL’s robust financial performance, strong brand presence, and disciplined cost management position it well for sustained growth in the coming years. With rising consumer demand for gold and studded jewellery, strategic store expansions, and a solid financial foundation, the company remains poised for further success in India’s evolving jewellery market.
As regulatory scrutiny continues, Crisil Ratings underscores that the resolution of legal matters will remain a key factor in assessing JIL’s future trajectory. However, with its steady expansion, disciplined financial management, and strong brand loyalty, JIL appears well-positioned to navigate challenges and seize growth opportunities in the Indian jewellery sector.
