Kalyan Jewellers India spurts on positive Q4 business update

4 Apr 2022 , 11:07 AM

During the quarter, Kalyan Jewellers India saw a strong operating momentum in its business driven by resilience of its category, Q4 FY22 was a satisfying quarter with strong momentum, given the context of disruption to showroom operations during the month of January 2022 due to Omicron-driven 3rd wave of the COVID-19 pandemic, the geo-political situation in Russia/ Ukraine and its related impact on the markets & gold price volatility, and the unusually high base in the same quarter a year ago due to the bounce-back from COVID-19 (growth for Q4 FY21 was at 61% over Q4 FY20 in India).

The business in India saw a 7% decline in revenues when compared to the same quarter in the prior year, although when compared to the same quarter two years ago (Q4 FY20), the recently concluded quarter saw over 47% growth, as a result of acceleration in the business performance through the COVID pandemic and the increase in footfalls across the store network over the past several quarters. On a consolidated basis (including the Middle East), the business has seen 6% decline in revenues when compared to the same quarter in the prior year and over 33% growth when compared to the same quarter two years ago (Q4 FY20).

The online jewellery platform, Candere, recorded a revenue growth of over 80% during the quarter, as compared to the same period during the last year, demonstrating a continued positive traction of the digitally-oriented initiatives, particularly around e-commerce. The company is witnessing trends in the advance collections for both Akshaya Tritiya as well as for wedding purchases during the quarter.

Kalyan Jewellers India has added 3 new showrooms in India during the recently concluded quarter taking the total number of new showrooms launched during FY 2022 to 18. As of 31 March 2022, the total number of showrooms across India and the Middle East stood at 154. For the full year FY 2022, we recorded a revenue growth in excess of 25% over the prior year on a consolidated basis, with the India business recording revenue growth of over 23% as compared to the prior year.

Additionally, during the recently concluded quarter we announced board approval for the appointment of Vinod Rai as the chairman and independent non-executive director on the board of the company. Mr Rai was the former Comptroller and Auditor General of India, the former chair of the United Nations Panel of External Auditors and has held various positions within the government where he has been instrumental in a wide variety of reforms in India. This appointment will be subject to obtaining requisite regulatory and shareholders approvals.

Seperately, the board of directors of Kalyan Jewellers India on 14 January 2022, had granted its approval to provide an unconditional and irrevocable guarantee (the Guarantee) of upto $200 million, for the senior U.S. dollar denominated fixed rate notes, being considered for issuance by Kalyan Jewellers FZE, a wholly-owned subsidiary of the company.

Kalyan Jewellers India has further informed that its subsidiary in the meeting of its board of directors approved the potential issuance of fixed rate, senior U.S. dollar denominated notes for an aggregate principal amount of up to $200 million.

The company posted a 17.3% rise in consolidated net profit to Rs 134.5 crore in Q3 FY22 from Rs 114.9 crore registered in Q3 FY21. Revenue from operations also grew by 17% to Rs 3,435.3 crore in Q3 FY22 as compared to Rs 2,936.2 crore posted in the same quarter last year.

Kalyan Jewellers is one of Indias largest jewellery companies with 154 showrooms across India and the Middle East.

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