Kalyan Jewellers posts ₹108 cr net profit; looks forward to festive sales

• Kalyan Jewellers India has recorded a profit after tax (PAT) of ₹108 crore in Q1FY23.
• The company has witnessed momentum in footfalls and revenue across India and Middle East markets.
• Kalyan aims to increase its retail footprint in India by another 8%, before Diwali this year.

Hefty import duties and gold price volatility did not take the shine off Kalyan Jewellers, as it reported a net profit of ₹108 crore in the April-June quarter. In the same period last year, it reported a loss of ₹51 crore.

Its consolidated revenues stood at ₹3,333 crore almost doubling from ₹1,637 crore reported in the same quarter last year.

“The recently concluded quarter has been a positive one for Kalyan Jewellers, having witnessed robust momentum in both footfalls and revenue across India and Middle East markets. Revenue momentum in the current quarter has remained encouraging, thus far, and we are keenly looking forward to the upcoming festive season,” said Ramesh Kalyanaraman, ED, Kalyan Jewellers India.

In the Middle East, which contributes around 17% to its overall business, the jewellers’ total revenue from operations went up by 69% to ₹574 crore in Q1 as against ₹340 crore last year.

The jewellers’ stock surged by 5.87% in today’s trade, as per NSE.

Increasing its footprint

Kalyan Jewellers, which launched its first franchised showroom in Q1, aims to increase its retail footprint in India by another 8%, before Diwali this year.

This new line up is planned in the non-South markets. It will also focus on scaling up operations within micro markets of tier-1 cities like Delhi and Mumbai, while aggressively expanding its presence in tier-2 and tier-3 markets.

“We have built a meaningful pipeline of additional franchise showrooms on the back of very encouraging responses from potential franchise partners, and we are on track with our expansion plans for the current financial year. We believe the successful launch of the first set of franchised showrooms will give us the confidence to further enhance the pace of expansion through this significantly more capital efficient and return accretive path,” said Kalyanaraman.

As of June 30, 2022, Kalyan Jewellers' store network across India and the Middle East stood at 158.