Kalyan Jewellers surges 6%; reports up to 13% revenue growth in Q3

The company said December quarter witnessed positive momentum in footfalls and revenue across all the markets majorly driven by strong festive demand.

Shares of Kalyan Jewellers surged 6 per cent to Rs 127.60 on Monday after the company said it recorded consolidated revenue growth of approximately 13 per cent in December quarter (Q3FY2023) as compared to the same period of previous financial year, as quarter witnessed positive momentum in footfalls and revenue across all the markets majorly driven by strong festive demand. The stock had hit a 52-week high of Rs 134 on December 29, 2022.

The company’s year to date (YTD) consolidated revenue for the first nine months (April-December) of the financial year 2022-23 grew 35 per cent as compared to the same period in the previous financial year, Kalyan Jewellers said in Q3 business update.

India operations witnessed revenue growth of around 12 per cent YoY for Q3FY23 despite a strong base with Q3 of the previous financial year being the first normalized quarter posts 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 company said.

The company witnessed gross margin expansion, which grew sequentially in the recently concluded quarter, driven largely by the improvement in both studded share and share of revenue from non south markets. The company 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 December 31, 2022.

Kalyan Jewellers expects to open 11 new franchised showrooms across non-south markets over the coming 3 months as part of the targeted launch of 52 new showrooms during CY 2023.  The company have signed 25 more LOIs (Letters of Intent) with potential franchise partners for showroom launches during the next financial year (FY 2024).