Kalyan Jewellers Falls 5% Despite 38% Q1 Revenue Growth

Kalyan Jewellers shares hit a day’s low of Rs 348.35 on NSE despite the company reporting 38% revenue growth in the June quarter update.

In its filing, the company said consolidated revenue climbed around 38% year on year in the April to June quarter. Growth in India alone kept pace, helped by same-store sales growing 28% across key markets.

This came despite Adhik Maas, an inauspicious period in the Hindu calendar when wedding-related jewellery demand typically slows.

The quarter had 28 days falling under this period this time round, which made the growth numbers more notable.

International business grew 35% year on year, with the Middle East up 30% even as geopolitical tensions weighed on footfall in April.

Candere, the company’s digital-first jewellery platform, once again outpaced the rest of the business, with revenue up 112%.

Kalyan also pushed ahead with its ‘Shine with India’ campaign. Launched in May, it encourages customers to exchange old gold for new jewellery.

Recycled gold made up over 46% of revenue in the quarter, and that share crossed 55% in June alone. On expansion, the retailer opened 12 new Kalyan stores and five Candere outlets in India during the quarter.

It now runs 524 showrooms worldwide, spread across India, the Middle East, the US and the UK, with Candere alone accounting for 129 of those.

None of this cushioned the stock today. At 11:46 am, Kalyan Jewellers was trading at Rs 361.65 on NSE, down 5.14%, from the previous close of Rs 381.25. It’s now trading well below its 52-week high of Rs 617.70, hit last July.

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