Kalyan Jewellers sees 60% revenue growth in India in FY21 Q4
Kalyan Jewellers saw its revenue increase by close to 60% year-on-year in the fourth quarter of the 2021 financial year, thanks to strong consumer demand, especially in the south.
“Our growth in India was broad-based across geographies, although the growth in south India was better than in non-south,” said the business in a statement, the Press Trust of India reported.
“While we did witness growth in our higher-margin studded product portfolio, the acceleration in demand for our plain gold jewellery products was higher, particularly for our faster-moving, staple, regionally-oriented gold jewellery collections which carry lower making charges.”
The first two months of the financial quarter, January and February, saw growth of around 35% and March saw growth accelerate significantly, according to Kalyan Jewellers’ quarterly update. Strong sales in March 2021 was contrasted with the drop in sales experienced in March last year when the economic effects of lockdowns began to be felt.
The business partially attributes recent growth to the move towards organising the jewellery market. This trend has benefitted brands including Kalyan Jewellers which has an established retail presence in the organised segment of the market. Compulsory hallmarking on gold jewellery has added to the development of this trend.
Although Kalyan Jewellers’ India sales are up, it is still experiencing a downturn in the Middle East, the Press Trust of India reported. Middle East sales decreased by around 20% year-on-year in the past quarter which the business attributes in part to its decision to close seven stores in the region.
Kalyan Jewellers completed its initial public offering last month and raised around Rs 800 crore ($120.3 million).
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