Thrissur: Kalyan Jewellers India Limited’s consolidated revenue grew by 109% in Q1FY22 compared to Q1FY21, primarily driven by robust sales momentum across stores both prior to and post lockdowns in the recently concluded quarter, as well as a low base in the last financial year. While the India revenue grew by 94%, Middle East growth was 183%.
Total revenue for the quarter was Rs. 1,637 Crs, compared to a total revenue of Rs. 782 Crs for the same period during the previous financial year. At a consolidated level, the company recorded Earnings Before Interest and Tax (EBIT) of Rs. 11 crores for the quarter compared to Rs. 68 lakhs in the same quarter of the previous year. The consolidated loss for the quarter was Rs. 51 Crs as against Rs.86 Crs in Q1FY21.
The robust momentum that the company witnessed at the start of the current financial year slowed down once lockdowns and restrictions were imposed by various State governments in the last few weeks of April. Following the second wave of COVID-19, most stores remained closed during the month of May. In June, Kalyan witnessed strong momentum in the stores that were open. The company recorded a 68% same store sales growth (excluding revenue from gold savings schemes) for June 2021 as compared to the prior year, adjusted for store operational days in both periods.
In the Middle East, almost all the showrooms remained operational through the recently concluded quarter and the region witnessed a strong recovery in April, similar to the recovery levels witnessed during Q4FY21. However, on the back of a peaking second wave of COVID-19 in India, there have been temporary disruptions to business in the region driven largely by the travel restrictions imposed between India & Middle East, as well as muted consumer sentiment amongst Indian expats in the region.
The e-commerce division Candere has continued its growth momentum. The revenue for the recently concluded quarter was Rs. 24 Crs versus Rs. 5 crores in Q1-FY21, a growth of 363%. The company recorded a PAT of Rs. 31 lakhs compared to a loss of Rs. 1.08 crore for the same period of the last financial year.
The Company’s retail footprint is spread across 146 stores in 21 Indian states and 4 countries in the Middle East, with a retail area exceeding 500,000 sq. ft. The company added 9 new stores in the recently concluded quarter – 4 in Tamil Nadu, 3 in Telangana and 1 each in Gujarat & Kerala.
Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers India Limited said, “The outcome of the first quarter has been above our expectations and we are happy with the overall performance. The pace of demand recovery witnessed in the just concluded quarter was higher than what we experienced in Q1FY21, and the momentum in the stores that were operational was similar and comparable to that in Q4FY21. The compulsory hallmarking move by the Government will play a significant role in transforming the sector and making it more transparent, while also accelerating the shift from unorganised to organised. The organised players in our sector have significant tailwinds and we are well positioned to address this opportunity.”