Kalyan Jewellers India witnessed a notable 27.1% increase in its second-quarter profit on Tuesday. This uptick was fueled by a rising domestic demand for its ready-to-wear jewellery line and a surge in store traffic leading up to the festive season.
The consolidated net profit for the three months ending on September 30 climbed to 1.35 billion rupees ($16.23 million), marking an increase from the 1.06 billion rupees recorded in the same period last year.
In terms of revenue contribution, its largest segment, the India operations, experienced a growth of approximately 32%. Meanwhile, the Middle East operations observed a 5% increase in revenue, driven by heightened sales during Eid holidays.
“We are extremely excited with the way the festive quarter has progressed thus far,” said Ramesh Kalyanaraman, executive director, Kalyan Jewellers India.
The company reported a 27% increase in revenue from operations, reaching 44.15 billion rupees. This growth was attributed to robust demand, with same-store sales expanding across all key markets, as stated in its quarterly update.
The company further stated its anticipation of strong momentum in both foot traffic and revenue across all markets for the second half of FY24.
Nevertheless, gold prices reached a record high of 61,845 rupees per 10 grams in India this year, causing a 20.4% increase in the jeweller’s raw material costs during the quarter.
Tribhovandas Bhimji Zaveri, a competitor of Kalyan Jewellers, disclosed an almost 65% surge in profits, and Titan, the owner of the Tanishq jewellery brand, reported a second-quarter profit that exceeded expectations during the same period.
