Kalyan Jewellers surge 6% after a positive Q1 update

Kalyan Jewellers’ gross margin at showroom level has improved in Q1FY24 year-on-year, and is in line with the last quarter number.

Shares of Kalyan Jewellers gained 6 percent on Friday after the jeweller maker said its revenue grew 34 percent in the April-June quarter, compared to the same period last year.

Shares of the company were up 6.3 percent at Rs 163.55 at 10.21 am on the National Stock Exchange.

The non-south markets for Kalyan Jewellers recorded higher revenue growth as a large number of showrooms were launched in the non-south markets in the last one year. Kalyan Jewellers opened 12 new showrooms in the non-south markets in the April-June quarter. It plans to open 20 more showrooms in the same market before Diwali.

Kalyan Jewellers’ gross margin at showroom level has improved in Q1FY24 year-on-year and is in line with the last quarter's number. Blended gross margins (showroom and franchise) have declined sequentially in Q1FY24 year-on-year, said the company.

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The gold maker’s online jewellery platform-Candere witnessed a 22 percent year-on-year fall in revenue in Q1FY24. However, Kalyan Jewellers is seeing positive trends in Candere’s two physical showrooms.

For the Middle-east market, revenue increased by around 22 percent year-on-year in Q1FY24. “Eid holidays-driven sales, which was not part of the base quarter revenue in the prior year, also contributed to the higher than usual same-store-sales growth during the recently concluded quarter,” said Kalyan Jewellers.

The company plans to launch its first Franchise Owned Company Operated showroom in the July to September quarter.

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