Kalyan Jewellers Q2: Consolidated revenue grows 37% YoY; shares fall 5%

The company, in its Q2 update, said the recently concluded quarter has been a very encouraging one, recording consolidated revenue growth of approximately 37% when compared to the same period in the previous financial year. 

"Our India operations witnessed revenue growth of approximately 39% during Q2 FY2025 as compared to Q2 FY2024, led by robust operating momentum on the ground across all markets with healthy same-store sales growth of approximately 23%," the company said.

Custom duty reduction on gold imports, announced during the Union Budget, resulted in significantly higher levels of footfalls from the last week of July till the end of August, mostly negating the impact of 14 days of Shradh (when sales are typically more muted) during the quarter and extreme volatility in gold prices. In comparison, only two days of Shradh were part of the second quarter in the base year, the company added. 

Kalyan Jewellers said it launched 15 Kalyan Franchisee-Owned-Company-Operated “FOCO” showrooms in India during Q2, with a strong pipeline of showrooms set to open over the course of October in line with our previously communicated guidance.

In the Middle East, the company witnessed revenue growth of approximately 24% when compared to the same period in the previous financial year. During the quarter, the company completed the first set of conversions of owned showrooms to FOCO showrooms, taking the total number of franchised showrooms in the region to four. The Middle East contributed ~13% to our consolidated revenue for the recently concluded quarter.

However, shares of the company slipped in the trade. The stock declined as much as 4.74% to ₹678.85 apiece on the BSE. 

During the quarter under review, Kalyan Jewellers launched 26 net showrooms across Kalyan and Candere formats, taking the total number of showrooms as of September 30, 2024, to 303 (Kalyan India: 231, Kalyan Middle East: 36, Candere: 36). 

Its digital-first jewellery platform, Candere, recorded a revenue growth of approximately 30% during the recently concluded quarter as compared to the same period during the last year. "We launched 12 Candere showrooms during Q2 FY 2025," the company said.