The consolidated revenue growth of Kalyan Jewellers for the first quarter of FY24 was 31 percent year on year. This includes 34 percent revenue growth for India operations.
The strong operating momentum sustained through the entire quarter, including during Akshaya Tritiya. While momentum in same-store revenue growth 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 12 months.
Gross margin at the showroom level improved as compared to the same period in the previous financial year and has remained broadly in line with the prior quarter. Given the higher share of revenue from franchised showrooms, blended gross margin declined sequentially as well as when compared to the same period in the previous financial year.
The jewellery retailer added 12 new ‘Kalyan’ showrooms across non-south markets during the recently concluded quarter and expects to launch about 20 new showrooms across non-south markets before Diwali, as part of its previously communicated plan of launching 52 new showrooms during the current year.
In the Middle East, the jewellery retailer witnessed robust momentum in footfalls and revenue driven by strong economic activity in the region. Revenue growth for the recently concluded quarter was about 21 percent and Middle East contributed 16 percent to the consolidated revenue for the first quarter of FY24. The growth in the recently concluded quarter was predominantly same-store-sales driven, since network expansion in the region during the last 12 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 Jewellers is expected to launch the first FOCO (Franchisee Owned Company Operated) showroom in the region during second quarter of FY24.
The online jewellery platform, Candere, recorded a revenue de-growth of 22 percent year on year. However, there are encouraging trends in Candere’s two physical showrooms. As a part of the previously announced omni-channel growth strategy for the platform, there are plans to launch about 20 physical showrooms of Candere during the next 6 months.
As of June 30, 2023, the total number of showrooms across India and the Middle East stood at 194.
Peer, Titan has also announced a healthy business update for the first quarter of FY24.
The shares of Kalyan Jewellers opened the new trading session on July 7 with a jump of 5 percent.
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