NEW DELHI: Kerala-based Kalyan Jewellers, which runs a chain of jewellery showrooms across India and the Middle East, on Saturday reported consolidated revenue growth of 13% YoY in the December quarter. The company is yet to declare its full quarterly results.
“The recently concluded quarter witnessed positive momentum in footfalls and revenue across all the markets majorly driven by strong festive demand. We recorded consolidated revenue growth of approximately 13% in Q3 FY2023 as compared to the same period in the previous financial year, and approximately 35% for YTD (nine months) FY2023 as compared to the same period in the previous financial year,” Kalyan Jewellers said in an exchange filing.
Noting that while the competitive intensity with respect to metal pricing continues, it recorded a sequential expansion in its gross margin, driven largely by the improvement in both studded share and share of revenue from non-south markets.
“Our studded share saw growth sequentially as well as when compared to the same period in the previous year,” it said.
In the domestic market, the revenue growth came in at around 12% YoY despite a strong base, with Q3 of the previous financial year being the first normalized quarter post the COVID-related market dislocation. While momentum in footfall was broad-based across geographies, non-south markets recorded higher revenue growth largely due to the greater number of showrooms launched in that region over the last twelve months.
The jeweller added 5 net new ‘Kalyan’ showrooms (all non-south) during the recently concluded quarter, taking the total number of showrooms in India to 136 as on 31st December 2022. It expects to open 11 new franchised showrooms across non-south markets over the coming three months as part of the targeted launch of 52 new showrooms during the calendar year 2023.
“We have signed 25 more LOIs (Letters of Intent) with potential franchise partners for showroom launches during the next financial year (FY 2024),” it said.
The Middle East market, which contributed 16% to the consolidated revenue, saw revenue growth of 24% as compared to the same quarter during the prior year. “This growth was mostly same-store-sales driven since we added only one showroom in the region during the last 12 months,” it said.
The online business, however, recorded a revenue de-growth of 5% during the quarter, compared to the same period during the last year. Candere launched its second offline store during the recently concluded quarter.
As on 31st Dec 2022, the total number of showrooms across India and the Middle East stood at 169, Kalyan said.
Shares of the company ended 2.2% lower on Friday at Rs 120.40.
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