Shares of Kalyan Jewellers will be in focus in trade Friday after the Kerala-based company reported a revenue growth of over 33% year-on-year on a consolidated basis for the December quarter, compared to the same period last year. Kalyan Jewellers said it saw a continued robust momentum in both footfalls and revenue across its markets in India and the Middle East in the quarter gone by.
The company, in its quarterly business update to the exchanges, said that its India operations saw a revenue growth of 40% on-year during the third quarter as compared to the same period last year. This was led by robust operating momentum on the ground with healthy same-store-sales growth across all the key markets in the country.
Its Middle East operations continued to witness positive operating momentum. Revenue growth saw a 6% on-year jump during the December quarter. Middle East contributed about 13% to the company's consolidated revenue for the quarter under review.
The jewellery company added 22 net new ‘Kalyan’ showrooms in India during the third quarter. "While only 16 of these were under the FOCO (Franchisee Owned Franchisee Operated) model, we expect the company-owned showrooms launched during the previous quarter to be converted to FOCO during the ongoing quarter," it said.
Additionally, Kalyan Jewellers has completed signing Letters of Intent (LOIs) for the 80 showrooms planned for FY25 with a significant majority of these being established under a revised franchise model with further improved economics for Kalyan.
The company's first digital-first jewellery platform, Candere, recorded a revenue de-growth of 34% on-year during the reported quarter. However, Kalyan Jewellers said that it is continuing to witness encouraging trends in its already opened 7 physical showrooms.
"We continue to be encouraged by the underlying momentum in footfalls across all our major markets and are gearing up with fresh collections and campaigns for the upcoming wedding season across the country," Kalyan Jewellers said.
As of December 31, 2023, Kalyan's total number of showrooms across India and the Middle East stood at 235. For the March quarter, the jewellery maker plans to add another 15 ‘Kalyan’ showrooms in India, 2 ‘Kalyan’ showrooms in the Middle East and 13 ‘Candere’ showrooms.
The ongoing quarter should witness the launch of company’s 250th showroom in Ayodhya, a milestone in our journey, it said in a release.
Shares of Kalyan Jewellers settled 1.17% higher at ₹363.80 apiece on the NSE. The stock has rallied nearly 400% as against its listing price of ₹73.95 on March 26, 2021.
First Published: Jan 5, 2024 8:48 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Over 50 onion farmers detained in Nashik ahead of PM Modi's visit
May 16, 2024 11:14 AM
Why Google CEO is cautiously optimistic about the election year
May 16, 2024 9:51 AM
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM