Kalyan Jewellers reports robust revenue growth in Q2FY23; Stock surges ~3%

7 Oct 2022 , 09:19 AM

Kalyan Jewellers India has announced the positive results of recently concluded quarter which has achieved robust momentum in footfalls and revenues across all its markets in India and Middle East, despite challenging economic environment.

The Company has recorded consolidated revenue growth of approximately 20% in Q2 FY2023 as compared to the same period in the previous financial year, and approximately 50% in H1 FY2023 as compared to the same period in the previous financial year. Consolidated revenue during the recently concluded quarter grew at a CAGR of approximately 18% over the last 3 years (i.e. as against Q2 FY2020; pre-COVID).

Kalyan’s India standalone operations recorded revenue growth of approximately 14% during the recently concluded quarter as against the same period in the previous year, despite a strong base (Q2 of the previous financial year benefitted from pent-up demand caused by COVID-driven lockdowns in various parts of India during Q1 FY2022). Revenue growth in H1 FY2023 was approximately 48% as compared to the same period in the previous financial year.

“While the recently concluded quarter did see heightened levels of competitive intensity across various markets resulting in a lower gross margin than previously seen, we are continuing to see robust operating momentum in our business in India, driven by the resilience of our category, effective execution of growth strategies and our business being a beneficiary of the significant shift in demand towards branded retail chains”, company said in a regulatory filing.

Revenue from India operations during the recently concluded quarter grew at a CAGR of approximately 20% over the last 3 years (i.e. as compared to Q2 FY2020; pre-COVID).

In the recently concluded quarter it has opened 2 more franchised showrooms and a further 2 in the first week of October 2022, taking the total to 5 franchised showrooms opened so far in the current financial year.

Furthermore, Company’s online jewellery platform, Candere, launched its first physical showroom during the recently concluded quarter marking the beginning of the next phase of growth in its journey. Candere recorded a revenue growth of more than 15% during the quarter, compared to the same period during the last year.

it has also added 5 new showrooms in India (all non-south) during the recently concluded quarter, including our first physical showroom by Candere, as previously mentioned. As of September 30, 2022, Company’s total number of showrooms across India and the Middle East stood at 163.

At around 9:19 AM, Kalyan Jewellers India Ltd is currently trading at Rs102.40 per share up by Rs2.85 or 2.86% from its previous closing of Rs99.55 per share on the BSE.

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