KALYAN JEWELLERS QUARTERLY UPDATES: Q1FY24

7th July  2023

The recently concluded quarter has been yet another positive one for Kalyan Jewellers, having witnessed continued robust momentum in both footfalls and revenue across all our markets in India and Middle East over the past several quarters. Consolidated revenue growth for the recently concluded quarter was 31% as compared to the same period in the previous financial year

• The company witnessed robust moment of recorded consolidated revenue growth of approximately 31% in Q1 FY2024, as compared to the same period in the previous financial year.
• The India business of Kalyan Jewellers recorded revenue growth of approximately 34% during the recently concluded quarter as compared to Q1 FY 2023.
• Kalyan Jewellers further added 12 new showrooms across non-south markets in the recent quarter, and is expected to launch 20 new showrooms in non-South markets before Diwali.

We witnessed revenue growth of 34% for our India operations during the recently concluded quarter as compared to Q1 FY 2023. Strong operating momentum has been consistent and sustained through the entire quarter, including during Akshaya Tritiya, underpinning the resilience of our category within the overall consumption basket and demonstrating strong execution in the market by our operating team on the ground. While momentum in same store revenue growth was broad-based across geographies, non-south markets recorded higher overall revenue growth largely due to the greater number of showrooms launched in that region over the last twelve months.

Gross margin at the showroom level has improved as compared to the same period in the previous financial year and has remained broadly in line with the prior quarter. As expected, given the higher share of revenue from franchised showrooms, blended gross margin has declined sequentially as well as when compared to the same period in the previous financial year.

We added 12 new ‘Kalyan’ showrooms across non-south markets during the recently concluded quarter and expect to launch 20 new showrooms across non-south markets before Diwali, as part of our previously communicated plan of launching 52 new showrooms during the current year.

In the Middle East, we continued to witness robust momentum in footfalls and revenue driven by strong economic activity in the region. Revenue growth for the recently concluded quarter was 21%. The growth in the recently concluded quarter was predominantly same-store-sales driven since network expansion in the region during the last twelve months has not been meaningful. 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.

We expect to launch the first FOCO (Franchisee Owned Company Operated) showroom in the region during Q2 FY 2024.

Middle East contributed ~16% to our consolidated revenue for the recently concluded quarter.

Our online jewellery platform, Candere, recorded a revenue de-growth of 22% during the recently concluded quarter as compared to the same period during the last year. However, we are witnessing encouraging trends in Candere’s already opened two physical showrooms and as part of the previously announced omni-channel growth strategy for the platform, we plan to launch 20 physical showrooms of Candere during the next 6 months.

We are upbeat about the upcoming new showroom launches and are gearing up with fresh collections and campaigns for the upcoming festive and wedding season across the country starting with Onam towards the end of the current quarter.

As of June 30, 2023, our total number of showrooms across India and the Middle East stood at 194.