Kalyan Jewellers has released its investor update for Q2 FY2024, showcasing growth across various parameters.
Robust Consolidated Revenue Growth
Kalyan Jewellers achieved a consolidated revenue growth of approximately 27% in the recently concluded quarter when compared to the same period in the previous financial year. Additionally, there was a remarkable 29% revenue growth in the first half of the current financial year when compared to the same period in the previous year.
Exceptional India Operations
The company reported a significant revenue growth of around 32% for its India operations during Q2 FY2024 as compared to Q2 FY2023. This growth was attributed to robust operating momentum and healthy same-store sales growth across key markets, despite the Adhik Maas period, which usually witnesses a slowdown in wedding jewelry demand.
Non-South Markets
Non-south markets demonstrated higher revenue growth, primarily due to the increased number of showrooms launched in that region over the last twelve months. Overall, the first half of the current financial year saw a remarkable 33% revenue growth in India compared to the same period in the previous year.
Stable Gross Margin
The gross margin at the showroom level remained stable when compared to the same period in the previous financial year. However, the blended gross margin has declined sequentially due to a higher share of revenue from franchised showrooms.
Showroom Expansion
Kalyan Jewellers expanded its presence by launching 13 new ‘Kalyan’ showrooms across non-south markets during the recently concluded quarter. An additional 26 showrooms are slated to be launched in the next 40 days, taking the total number of new showrooms launched during the current financial year to 51 by Diwali.
Middle East Expansion
In the Middle East, the company witnessed positive operating momentum. It launched the first franchised showroom in the Middle East region during the recently concluded quarter and signed 5 Letters of Intent (LOIs) for franchised showrooms in the region.
Digital-First Platform
Kalyan Jewellers’ digital-first jewelry platform, Candere, launched its first franchised showroom in Jammu during Q2 FY2024. While Candere experienced a revenue de-growth of approximately 15% during the recently concluded quarter compared to the same period last year, the brand remains optimistic about its physical showrooms and has signed 25 LOIs with potential franchisees.
Upcoming Showrooms
The company is preparing for the upcoming festive and wedding season by unveiling 33 more showrooms before Diwali, across Kalyan and Candere formats in India (26 Kalyan and 7 Candere).
Total Showrooms
As of September 30, 2023, Kalyan Jewellers operates a total of 209 showrooms across India and the Middle East, solidifying its position in the market.
These growth figures underline Kalyan Jewellers’ continued success and expansion efforts in the jewelry industry, both in India and the Middle East.
