Kalyan Jewellers jumps 6% on doubling of revenues in Q1

NEW DELHI: Shares of Kalyan Jewellers climbed nearly 6 per cent in Thursday's trade after the jeweller said its revenue jumped over 100 per cent in the June quarter.

The company said its consolidated revenue growth rose 105 per cent in the first quarter of the ongoing fiscal on a year-on-year (YoY) basis.

Following the development, the scrip climbed 5.71 per cent to hit a high of Rs 64.70 on BSE.


The company said it witnessed revenue growth of over 115 per cent YoY for India operations and 65 per cent for Middle East operations. Larger peer Titan Company, on the other hand, has reported revenue growth of 207 per cent YoY (excluding bullion sales) for the segment on a low base.

"We are continuing to see strong operating momentum in our business in India, driven by the resilience of our category. Furthermore, we believe our business has been a significant beneficiary of the shift in demand from the unorganised to the organised segment," Kalyan Jewellers said.

"This has been evidenced by the significant growth in our business through Covid, with the last twelve months of revenues in India being 35 per cent higher as compared to FY 2020 revenue (pre-COVID)," Kalyan Jewellers said on Thursday.

The company said it saw an improvement in gross margin in the June quarter YoY, driven largely by an increase in the studded mix and share of business from non-south markets, although gross margins remained at similar levels from the prior quarter.

The Middle East, which contributed 17 per cent to consolidated revenue in the June quarter, recorded revenue growth of 65 per cent YoY.

"Unlike in India, during Q1FY22 (base year), showroom operations in the Middle East remained uninterrupted even though demand was impacted to some extent due to travel restrictions to India. The growth in the recently concluded quarter was predominantly same-store sales driven since we added only one showroom (during May 2022) in the region during the last 12 months," it said.