In the quarterly update for Q2 FY 2024, Kalyan Jewellers reported robust performance in both footfalls and revenue across their markets in India and the Middle East, the company announced through an exchange filing.
The company recorded a consolidated revenue growth of approximately 27 per cent for the recently concluded quarter compared to the same period in the previous financial year, with a growth of around 29 percent in revenue for the first half of the current financial year compared to the same period in the prior year.
Specifically in India, Kalyan Jewellers achieved a revenue growth of approximately 32 percent during Q2 FY2024 when compared to Q2 FY2023. This growth was driven by strong operating momentum and healthy same-store-sales growth across key markets, despite the Adhik Maas period occurring during the quarter, which typically sees a slowdown in wedding jewelry demand. However, this impact was offset by fewer Shradh days compared to the previous financial year. Non-south markets experienced higher revenue growth, partly attributed to the launch of more showrooms in that region over the last twelve months. Overall, the first half of the current financial year witnessed a revenue growth of approximately 33 per cent in India compared to the same period in the previous year.
Gross margins at the showroom level remained stable compared to the same period in the previous financial year. However, the blended gross margin declined sequentially, mainly due to the increased share of revenue from franchised showrooms.
During the recently concluded quarter, Kalyan Jewellers expanded by adding 13 new 'Kalyan' showrooms across non-south markets and plans to launch an additional 26 showrooms in the next 40 days, as part of their showroom roll-out plan. This will bring the total number of new showrooms launched during the current financial year to 51 by Diwali. Additionally, the company signed 6 Letters of Intent (LOIs) for the first set of pilot franchised showrooms in the southern region, expected to be launched in the second half of the current financial year.
In the Middle East, Kalyan Jewellers reported positive operating momentum. However, the impact of Eid holidays-driven sales, which were part of the Q2 revenue base in the previous year, affected overall revenue growth in the recently concluded quarter. Revenue growth for Q2 FY 2024 exceeded 4%, while revenue growth for the first half of the current financial year reached approximately 13% compared to the same periods in the previous financial year. The company also launched its first franchised showroom in the Middle East during the quarter and signed 5 LOIs for franchised showrooms in the region. The Middle East contributed around 14% to the consolidated revenue for the recently concluded quarter.
Kalyan Jewellers' digital-first jewelry platform, Candere, opened its first franchised showroom in Jammu during Q2 FY 2024. Despite experiencing a revenue decrease of around 15% in the recently concluded quarter compared to the same period last year, the company has seen positive trends in its already established physical showrooms and has signed 25 LOIs with potential franchisees.
Looking ahead, Kalyan Jewellers remains optimistic about their markets and is preparing for the upcoming festive and wedding season with fresh collections and campaigns. They plan to unveil 33 more showrooms before Diwali, comprising 26 Kalyan and 7 Candere formats, across India.
As of September 30, 2023, Kalyan Jewellers operates a total of 209 showrooms across India and the Middle East.