Shares of Kalyan Jewellers India Ltd are expected to draw attention as the company reports continued robust momentum in footfalls and revenue across its markets in India and the Middle East for the last quarter. Despite facing challenges such as extreme gold price volatility, an increased number of “Shradh” days, and flash floods impacting retail sales, Kalyan Jewellers achieved positive operating performance.
The recently concluded quarter recorded consolidated revenue growth of over 33%, with India operations showing a revenue growth of 40% compared to the same period in the previous financial year. The company added a net of 22 new ‘Kalyan’ showrooms in India during the quarter and plans to convert company-owned showrooms launched in the previous quarter to the Franchisee Owned Franchisee Operated (FOCO) model.
In the Middle East, Kalyan Jewellers continued to witness positive operating momentum, contributing 13% to consolidated revenue for the December quarter. The company’s digital-first jewellery platform, Candere, reported a revenue de-growth of 34%, but physical showrooms are showing encouraging trends.
As of December 31, 2023, Kalyan Jewellers had a total of 235 showrooms across India and the Middle East. For the March quarter, the company plans to add 15 ‘Kalyan’ showrooms in India, 2 in the Middle East, and 13 ‘Candere’ showrooms. Additionally, Kalyan Jewellers is gearing up for the launch of its 250th showroom in Ayodhya during the ongoing quarter, marking a significant milestone in its journey.
The positive performance in the face of challenges and expansion plans signal optimism for Kalyan Jewellers as it navigates market dynamics in the jewellery sector.
