Kalyan Jewellers India shares surge 6% as Q2 sales jump 27% YoY
Kalyan Jewellers India: For India operations, it clocked a revenue growth of 32 per cent on account of robust operating momentum on the ground with healthy same-store-sales growth across key markets in the country.
- Oct 6, 2023,
- Updated Oct 6, 2023 10:14 AM IST
Shares of Kalyan Jewellers India Ltd surged 6 per cent in Friday's trade as it saw strong footfalls across India and the Middle East in the September quarter. For the quarter, the jeweller recorded a consolidated revenue growth of 27 per cent YoY. It posted 29 per cent in the first half of the ongoing financial year.
For India operations, it clocked a revenue growth of 32 per cent on account of robust operating momentum on the ground with healthy same-store-sales growth across key markets in the country. This is despite the Adhik Maas period falling in the quarter from the third week of July until the third week of August. Adhik Maas is a once in a 3-year phenomenon during which wedding jewellery demand tends to take a pause.
The stock climbed 5.5 per cent to hit a high of Rs 247.20 on BSE.
"The impact was mitigated by a fewer number of Shradh days during the recently concluded quarter when compared to the same period in the previous financial year. Non-south markets recorded higher revenue growth largely due to the greater number of showrooms launched in that region over the last twelve months. Overall, the first half of the current financial year witnessed 33 per cent revenue growth in India when compared to the same period in the prior year," it said.
Kalyan Jewellers said its gross margin at the showroom level was stable YoY. Given the higher share of revenue from franchised showrooms, blended gross margin, however, declined sequentially and YoY.
Kalyan Jewellers added 13 new ‘Kalyan’ showrooms across non-south markets during the quarter. It plans to launch 26 showrooms in the next 40 days, as part of the previously announced showroom roll-out plan.
With this, its total number of new showrooms would hit 51 by Diwali.
"In addition, we signed 6 LOIs for the first set of pilot franchised showrooms in the south region and we expect to
launch these showrooms sometime during the second half of the current financial year. In the Middle East, we continued to witness positive operating momentum. As previously indicated, Eid holidays-driven sales (recorded during Q1 of the current financial year), which was part of the Q2 revenue base in the prior year, impacted the overall revenue growth during the recently concluded quarter," Kalyan said.
Revenue growth for Q2 FY2024 was in excess of 4 per cent while revenue growth for the first half of the current financial year was 13 per cent YoY, it said.
"We launched the first franchised showroom in the Middle East region during the recently concluded quarter and have signed an additional 5 LOIs for franchised showrooms in the region. Middle East contributed 14 per cent to our consolidated revenue for the recently concluded quarter," it said.
Shares of Kalyan Jewellers India Ltd surged 6 per cent in Friday's trade as it saw strong footfalls across India and the Middle East in the September quarter. For the quarter, the jeweller recorded a consolidated revenue growth of 27 per cent YoY. It posted 29 per cent in the first half of the ongoing financial year.
For India operations, it clocked a revenue growth of 32 per cent on account of robust operating momentum on the ground with healthy same-store-sales growth across key markets in the country. This is despite the Adhik Maas period falling in the quarter from the third week of July until the third week of August. Adhik Maas is a once in a 3-year phenomenon during which wedding jewellery demand tends to take a pause.
The stock climbed 5.5 per cent to hit a high of Rs 247.20 on BSE.
"The impact was mitigated by a fewer number of Shradh days during the recently concluded quarter when compared to the same period in the previous financial year. Non-south markets recorded higher revenue growth largely due to the greater number of showrooms launched in that region over the last twelve months. Overall, the first half of the current financial year witnessed 33 per cent revenue growth in India when compared to the same period in the prior year," it said.
Kalyan Jewellers said its gross margin at the showroom level was stable YoY. Given the higher share of revenue from franchised showrooms, blended gross margin, however, declined sequentially and YoY.
Kalyan Jewellers added 13 new ‘Kalyan’ showrooms across non-south markets during the quarter. It plans to launch 26 showrooms in the next 40 days, as part of the previously announced showroom roll-out plan.
With this, its total number of new showrooms would hit 51 by Diwali.
"In addition, we signed 6 LOIs for the first set of pilot franchised showrooms in the south region and we expect to
launch these showrooms sometime during the second half of the current financial year. In the Middle East, we continued to witness positive operating momentum. As previously indicated, Eid holidays-driven sales (recorded during Q1 of the current financial year), which was part of the Q2 revenue base in the prior year, impacted the overall revenue growth during the recently concluded quarter," Kalyan said.
Revenue growth for Q2 FY2024 was in excess of 4 per cent while revenue growth for the first half of the current financial year was 13 per cent YoY, it said.
"We launched the first franchised showroom in the Middle East region during the recently concluded quarter and have signed an additional 5 LOIs for franchised showrooms in the region. Middle East contributed 14 per cent to our consolidated revenue for the recently concluded quarter," it said.