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Kalyan Jewellers Quarterly Update: Q3 FY 2022

Consolidated revenue growth for the recently concluded quarter was ~17%. The company has witnessed strong momentum in footfalls and revenue over the past four quarters commencing from the same period in the last financial year (Q3 FY 2021).

The positive traction continued during this festive season on the back of further easing of COVID-related restrictions across all its markets in India and the Middle East, further supported by increased levels of vaccination and continued buoyancy in consumer sentiments.

Kalyan Jewellers witnessed revenue growth of over 15% for its India operations during the recently concluded quarter, as compared to the same period in the previous year despite a strong base, Q3 of the previous financial year being the first normalized quarter post the initial COVID related market dislocation.

Gross margin improved sequentially for the recently concluded quarter. The company is encouraged by the expansion in gross margin over the past two quarters, especially as it is nearing the pre-COVID levels. Key drivers for margin expansion have been improvement in both studded share and share of revenue from non-south markets. Kalyan's studded share saw meaningful growth sequentially as well as when compared to the same period in the previous year, driven by the introduction of refreshed updates to its existing studded collections, launch of a new sub brand within the category and a higher share of revenue from the non-south markets. The company also witnessed improvement in the Gold Savings Scheme (GSS) enrolments sequentially, as well as when compared to the same period in the previous year.

In the Middle East, Kalyan Jewellers witnessed significant improvement in customer sentiment during the recently concluded quarter, resulting in a revenue growth of over 22% as compared to the same quarter during the prior year. This growth was entirely same-store-sales driven since it did not add any showrooms in the region during the last 12 months. For the first time post the onset of COVID, majority of its showrooms in the region have recorded revenue higher than pre-COVID levels. The region contributed ~15% to Kalyan's consolidated revenue.

Kalyan Jewellers online jewellery platform, Candere, recorded a revenue growth of over 35% during the quarter, compared to the same period during the last year, demonstrating continued positive traction of its digitally-oriented initiatives, particularly around e-commerce.

During the recently concluded quarter all Kalyan's showrooms across India and Middle East have been fully operational, as was the case during the same period in the prior year. However, during the recently concluded quarter, there were minor disruptions to showroom operations in certain parts of Kerala and Tamil Nadu, two of its large markets, owing to floods in the region.

The company added 5 new showrooms in India (4 in non-south markets) during the recently concluded quarter. As of 31st December 2021, its total number of showrooms across India and the Middle East stood at 151.

The company is closely monitoring the evolving situation on the ground in relation to the spread of the Omicron variant and continue to take steps to ensure the safety of consumers and its employees.

Courtesy: AOJ Desk News