Kalyan Jewellers reports 60% revenue growth in Q4

Kalyan Jewellers said on Thursday it witnessed a robust increase in consumer demand in the fourth quarter of FY21, resulting in a revenue growth of approximately 60% year-on-year for India operations.

Revenue growth for the first two months of the quarter (January and February) was approximately 35%, while the growth in March was significantly higher, skewed by the loss of sales experienced in the base due to the pandemic’s impact on retail operations in March 2020, the company said in a regulatory filing.

However, in the West Asia, the company witnessed a decline of approximately 20% in revenues over Q4FY20, partially because of the decision to close seven stores in the region.

In March 2021, the Thrissur-based jeweller successfully completed its initial public offering and raised approximately Rs 800 crore.

“The vast majority of our growth in the recent quarter was same store sales driven, as only two stores were opened during the last one year. We believe a significant driver of our recent revenue growth momentum in India has been a meaningful shift in consumer demand from the unorganised to the organised segment, which has been evident in the increase in footfalls we have seen across our store network,” the company said in the filing.

The growth in India was broad-based across geographies, although the south India fared better compared with other parts. However, the gross margin in the latest quarter was adversely impacted, partly due to a combination of the previously mentioned factors, as well as the recently announced reduction in the customs duty, the company said.