Kalyan Jewellers India Limited’s consolidated revenue grew by 61% in Q2FY22 compared to Q2FY21. The revenue growth was broad-based across geographies with both India and international markets growing at the same pace.
Total revenue for the quarter was Rs.2889 crore, compared to a total revenue of Rs.1798 crore for the same period during the last financial year. The company recorded Earnings Before Interest, and Tax, Depreciation & Amortization (EBITDA) of Rs.228 crore for the quarter compared to Rs.18 crore in the same quarter of the previous year. Consolidated PAT for the quarter was Rs.69 crore as against a loss of Rs.136 crore in Q2FY21.
The revenue growth in India was approximately 61% during the recently concluded quarter as compared to the same period in the previous year. This was despite the fact that there were lockdown related disruptions in showroom operations during the recently concluded quarter in one of our key markets – Kerala. Showrooms in Kerala resumed full operations only by the second week of August. Total standalone revenue for the company in India, for the recently concluded quarter was Rs.2,503 crore, as against Rs.1,556 crore for the same period in the previous year.
The Same Store Sales Growth (SSSG) in Non-South markets was 72% compared to the Southern markets, which had an SSSG of 44%. This differential was predominantly due to COVID-19 related closures of showrooms in Kerala during the recently concluded quarter. The overall SSSG in India during the quarter was 52%.
The India operations recorded Earnings Before Interest, Tax, Depreciation & Amortization (EBITDA) of Rs.201 crore for the quarter compared to Rs.147 crore in the same quarter of the previous year. PAT for the quarter was Rs 68 crore as against Rs 29 crore in Q2FY21.
In the Middle East, we witnessed a significant improvement in customer sentiment during the quarter, resulting in a revenue growth of 61% as compared to the same quarter during the prior year. This, despite the continuing travel restrictions between India and the region, for most parts of the recently concluded quarter. Total revenue from the Middle East operations for the recently concluded quarter was Rs 360 crore as against Rs 224 crore for the same period in the previous year. The growth was largely same store sales driven since we did not add any new showrooms in the region during the last 12 months. Middle East region contributed ~12% to the overall consolidated revenue of the company.
The Middle East operations recorded Earnings Before Interest, Tax, Depreciation & Amortization (EBITDA) of Rs.26 crore for the quarter compared to a loss of Rs.132 crore in the same quarter of the previous year. PAT for the quarter was Rs 35 lakhs as against a loss of Rs 165 crore in Q2FY21.
The e-commerce division Candere has continued its growth momentum. The revenue for the recently concluded quarter was Rs.32 crore versus Rs.22 crore in Q2-FY21, a growth of 47%. The company recorded a PAT of Rs.54 lakhs compared to a PAT of Rs.1 crore for the same period of the last financial year.
Presently, the Company’s retail footprint is spread across 150 stores in 21 Indian states and 4 countries in the Middle East, with a retail area exceeding 5,00,000 sq. ft.
Mr. Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers India Limited said, “The Company’s performance during the recently concluded quarter has been very strong and we remain confident of the current quarter given the continued easing of COVID-19 related restrictions as well as the return of buoyancy in consumer sentiments across markets. We are witnessing a continuation in revenue momentum that had started around the same time last year and are encouraged by the trends that we are seeing in our operating performance.”
