Kalyan Jewellers India has reported 55 percent overall revenues for Q1 FY 2020. While Q1 FY 2021 is not a strictly comparable period given the nationwide lockdown, revenue achievement in Q1 FY 2022 was 190 percent when compared to Q1 FY 2021, the company said.
A significant portion of its revenue for Q1 FY 2022 was booked during the month of April, during which many of the showrooms in non-south markets either remained closed or were operating with restrictions resulting in a higher share of business accruing from south markets, as well as from the gold division
Kalyan Jewellers began the first quarter of this financial year with continued robust momentum in both footfalls and revenue, driven largely by the resilience of our category, sustained buoyancy in consumer sentiments and the continuing shift in consumer demand from the unorganized to the organized segment.
Only 80 percent of the company’s showrooms were operational during April 2021, but revenue for the month was similar to April 2019 (April 2020 being a COVID-impacted period). Revenue growth excluding its monthly gold savings scheme (GSS), adjusted for the operational days, was 40 percent as compared with April 2019 on a same-store-sales basis. The drop in GSS contribution in April 2021 was driven by disruption in scheme enrollments during the prior year period due to lockdowns.
Given the government-imposed lockdowns, in May 2021 a vast majority of its showrooms in India remaining closed. June 2021 saw the lifting of lockdowns across India, and consequently, many of showrooms gradually resumed operations during the month, albeit with restricted operating days and hours.
As of June 30, 2021, 92 percent of its showrooms in India were operational, although only 40 percent showrooms were operational on the weekends. The company has witnessed encouraging recovery trends in customer footfalls and revenue in our showrooms that have re-opened, with most showrooms broadly operating at daily levels seen in the prior quarter (Jan-Mar 2021) and experienced a very strong revenue performance.
Revenues in June 2021 were significantly higher than in the prior year, adjusted for store operational days. Based on these trends, it expects pace of demand recovery has exceeded what was experienced during the prior year.
In the Middle East, Kalyan Jewellers showrooms have been operational during the recently concluded quarter. However, on the back of a peaking second wave of COVID-19 in India, there have been temporary disruptions to business in the region driven largely by the ongoing travel restrictions imposed between India and Middle East, as well as muted consumer sentiment amongst Indian expats in the region. Revenue achievement for the recently concluded quarter in the Middle East was more than 50 percent of Q1 FY 2020 despite closing 7 showrooms or 20 percent of the existing Middle East base during 2020. Q1 FY 2021, is not a comparable period as most of the showrooms in the region were closed for almost the entire quarter last year.
The government’s implementation of compulsory hallmarking during the recent quarter is expected to standardize the purity of gold jewellery and bring further structure and transparency to the industry, which will accelerate the consumer demand shift from unorganized businesses to organized players, the company said in a press release
Kalyan Jewellers has opened 9 showrooms in India in April 2021 taking the total number of showrooms in India to 116 and the total number of our showrooms on a consolidated basis to 146.
The stock was up 0.40 points or 0.52 percent at Rs 77.90 a piece at close of day.