For India business, Kalyan said that a significant portion of our revenue for Q1 FY 2022 was booked during April, during which many of the showrooms in non-south markets either remained closed or were operating with restrictions resulting in a higher share of business accruing from south markets, as well as from the gold division. Partly as a result of this phenomenon as well as the continuing impact of the customs duty cut, the gross margin in India remained muted and below our historical levels.
Further, Kalyan said that in the Middle East, all of our showrooms have been operational during the recently concluded quarter. However, on the back of a peaking second wave of COVID-19 in India, there have been temporary disruptions to business in the region driven largely by the ongoing travel restrictions imposed between India & Middle East, as well as muted consumer sentiment amongst Indian ex-pats in the region. Revenue achievement for the recently concluded quarter in the Middle East was more than 50% of Q1 FY 2020 despite closing 7 showrooms or ~20% of the existing Middle East base during 2020. Q1 FY 2021, is not a comparable period as most of the showrooms in the region were closed for almost the entire quarter last year.
The company said, "We began the first quarter of this financial year with continued robust momentum in both footfalls and revenue, driven largely by the resilience of our category, sustained buoyancy in consumer sentiments and the continuing shift in consumer demand from the unorganized to the organized segment."
According to Kalyan, despite only ~80% of our showrooms being operational during April 2021, revenue for the month was similar to April 2019 (April 2020 being a COVID-impacted period). Revenue growth excluding our monthly gold savings scheme (GSS), adjusted for the operational days, was ~40% as compared with April 2019 on a same-store-sales basis. The drop in GSS contribution in April 2021 was driven by disruption in scheme enrollments during the prior-year period due to lockdowns.
Given the government-imposed lockdowns, Kalyan said that in May 2021 "we saw the vast majority of our showrooms in India remaining closed."
Meanwhile, in June 2021, the company saw the lifting of lockdowns across India, and consequently, many of our showrooms gradually resumed operations during the month, albeit with restricted operating days and hours. As of June 30, 2021, 92% of our showrooms in India were operational, although only ~40% of our showrooms were operational on the weekends.
On Sensex, Kalyan Jewellers closed at Rs77.90 per piece up 0.5%.