The recently concluded quarter has been positive for Kalyan Jewellers as it witnessed continued robust momentum in both footfalls and revenue across all our markets in India and Middle East, announced the company through an exchange filing. Consolidated revenue growth for the first quarter of this financial year was ~31 per cent as compared to the same period in the previous financial year.
Kalyan Jewellers in the regulatory filing added that it has witnessed revenue growth of ~34 per cent for its Indian operations during the recently concluded quarter as compared to Q1 FY 2023. “Strong operating momentum has been consistent and sustained through the entire quarter, including during Akshaya Tritiya, underpinning the resilience of our category within the overall consumption basket and demonstrating strong execution in the market by our operating team on the ground,” the company said.
While momentum in same store revenue growth according to the company was broad-based across geographies. Non-south markets recorded higher overall revenue growth largely due to the greater number of showrooms launched in that region over the last twelve months.
Gross margin at the showroom level has improved as compared to the same period in the previous financial year and has remained broadly in line with the prior quarter. Kalyan Jewellers also added, “As expected, given the higher share of revenue from franchised showrooms, blended gross margin has declined sequentially as well as when compared to the same period in the previous financial year.”
The Jeweller has added 12 new ‘Kalyan’ showrooms across non-south markets during the recently concluded quarter and expects to launch close to 20 new showrooms across non-south markets before Diwali, as part of our previously communicated plan of launching 52 new showrooms during the current year.
Kalyan Jeweller's Middle East update
In the Middle East, Kalyan Jeweller continued to witness robust momentum in footfalls and revenue driven by strong economic activity in the region. Revenue growth for the recently concluded quarter was nearly 21 per cent.
The growth in the recently concluded quarter was predominantly same-store-sales driven since network expansion in the region during the last twelve months has not been meaningful. Eid holidays-driven sales, which was not part of the base quarter revenue in the prior year, also contributed to the higher than usual same-store-sales growth during the recently concluded quarter.
Kalyan Jeweller while giving monthly updates said, “We expect to launch the first FOCO (Franchisee Owned Company Operated) showroom in the region during Q2 FY 2024.”
The Middle East contributed nearly 16 per cent to the consolidated revenue for the recently concluded quarter.
Kalyan Jeweller’s online jewellery platform, Candere, recorded a revenue de-growth of close to 22 per cent during the recently concluded quarter as compared to the same period during the last year. However, the company added that it is witnessing encouraging trends in Candere’s already opened two physical showrooms and as part of the previously announced omni-channel growth strategy for the platform, it plans to launch around 20 physical showrooms of Candere during the next 6 months.
The company said, “We are upbeat about the upcoming new showroom launches and are gearing up with fresh collections and campaigns for the upcoming festive and wedding season across the country starting with Onam towards the end of the current quarter.”
As of June 30, 2023, Kalyan Jewellers total number of showrooms across India and the Middle East stood at 194.