Kalyan Jewellers sees 27% growth in revenue despite volatile gold prices in Q1
Fri July 05 2024
Kalyan Jewellers on Friday announced a 27% year-on-year (YoY) growth in its consolidated revenue for the first quarter of the financial year 2025. The company reported that its India and Middle East businesses performed well despite a strong base quarter and extreme volatility in gold prices during the quarter. Shares of the firm were trading higher by nearly 2% on Friday.
The company’s India operations saw a growth of 29% YoY led by a 12% growth in same-store sales and strong operating momentum. The company opened 13 Kalyan franchisee-owned-company-operated “FOCO'' showrooms in India during the quarter. Kalyan Jeweller’s Middle East operations accounted for nearly 15% of the company’s consolidated revenue and saw 16% YoY growth.
Meanwhile, the company’s digital-first jewellery platform, Candere’s revenue was up nearly 13% YoY. The company has signed documentation to increase its stake by acquiring the balance 15% stake in the business and converting Enovate Lifestyles into a wholly-owned subsidiary for a consideration of ₹42 crore.
TS Kalyanaraman, Managing Director at Kalyan Jewellers said with Candere, said the firm is excited to explore an emerging market segment within the jewellery industry, focusing on lightweight, fashion-forward, and universally appealing designs.
The company stated that it will be launching new collections for the upcoming festive and wedding season, beginning with Onam at the end of the quarter.
Further, the company has drawn up plans to open an additional 40 Kalyan showrooms in India, up to 30 Candere showrooms, and the company’s first showroom in the United States by Diwali.
At the end of the first quarter, the company had opened up 24 showrooms under the Kalyan and Candere formats. The company has a total of 277 showrooms, of which Kalyan India has 217 showrooms, Kalyan Middle East has 36 showrooms, and Candere has 24 showrooms.
Shares of the company have risen by nearly 39% since the beginning of the year. The stock has gained over 239% in the last one year.
Source: https://upstox.com