The jewellery retailer said it witnessed revenue growth of over 115% for India operations during the recently concluded quarter, as compared to Q1 FY22. The firm continues to see strong operating momentum in India business, driven by the resilience of its category.

Kalyan Jewellers said that its business has been a significant beneficiary of the shift in demand from the unorganised to the organised segment, further benefitted by the strength of its brand, depth of retail and MyKalyan networks and the agility of its business model through the pandemic. This has been evidenced by the significant growth in the business through COVID, with the last twelve months of revenues in India being 35% higher as compared to FY 20 revenue (pre-COVID), it added.

The company saw an improvement in gross margin for Q1 FY23 year over year, driven largely by increase in the studded mix and share of business from non-south markets, although gross margins have remained at similar levels from the prior quarter.

The jewellery company said that in Q1 FY23 the firm has launched its first franchised showroom in Aurangabad. The company has developed a strategy and execution roadmap for franchise operations, including working with a consultant to assess the market opportunity, develop a robust economic model and assess potential franchisee partners. Successful launch of the first set of pilot showrooms will give the confidence to further enhance the pace of expansion through this significantly more capital efficient and return accretive path, the company added.

In the Middle East, the company saw a strong revenue momentum driven largely by the overall recovery in the economic activity in the region and the return of tourist traffic, which has been visible over the past several quarters. Revenue growth for the recently concluded quarter was over 65%. Kalyan Jewellers said, unlike in India, during Q1 FY22, showroom operations in the Middle East remained uninterrupted even though demand was impacted to some extent due to travel restrictions to India. The growth in Q1 FY23 was predominantly same-store-sales driven, since the company added only one showroom (during May 2022) in the region during the last 12 months. Middle East contributed 17% to the firm's consolidated revenue for the recently concluded quarter.

The online jewellery platform, Candere, recorded a revenue growth of over 80% during the quarter, compared to the same period during the last year, demonstrating continued positive traction in our digitally-oriented initiatives, particularly around e-commerce.

Kalyan Jewellers India has added 4 new showrooms (3 in non-south and 1 in Middle East) during the recently concluded quarter, including its first franchised showroom in Aurangabad. As of 30 June 2022, the total number of showrooms across India and the Middle East stood at 158.

Headquartered in Thrissur in the state of Kerala, Kalyan Jewellers is one the largest jewellery retailers in India with a presence in the Middle East. It offers an array of traditional and contemporary jewellery designs in gold, diamonds and precious stones catering to the distinct needs of the customers. Kalyan Jewellers has 154 showrooms across India and the Middle East.

The company's consolidated net profit fell 2.55% to Rs 72.29 crore on 6.53% decline in net sales to Rs 2,857.06 crore in Q4 FY22 over Q4 FY21.