Team News Riveting
Thrissur, August 10
Kalyan Jewellers India Limited’s consolidated revenue grew by 109 per cent in first quarter (Q1) of the financial year 2021-22 (FY22) compared to the corresponding period of last fiscal.
The robust growth is primarily driven by strong 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 per cent, Middle East growth was 183 per cent.
Total revenue for the quarter was Rs 1,637 crore, compared to a total revenue of Rs 782 crore 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 crore for the quarter compared to Rs 68 lakh in the same quarter of the previous year. The consolidated loss for the quarter was Rs 51 crore as against Rs 86 crore 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 per cent 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 and Middle East, as well as muted consumer sentiment amongst Indian expats in the region.
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 and Kerala.
