A day after Titan Co, India’s largest gold retailer, reported a strong, 36% growth in its festival quarter revenue, rival Kalyan Jewellers said it witnessed an estimated 17% increase in sales during the same period.
The company, which also has outlets in the Gulf region, said India revenue jumped 15% over the final quarter of 2020. The final three months of 2020 had itself seen strong growth due to the easing of lock-down restrictions following nearly eight months of curbs related to COVID-19.
The revenue growth is partly because of the addition of 5 new showrooms in India during the period, including four outside the core market of South India. Moreover, gold prices have increased slightly this year compared to the past.
As of 31st December 2021, the company’s total number of showrooms was at 151.
“We have witnessed strong momentum in footfalls and revenue over the past four quarters commencing from the same period in the last financial year (Q3 FY 2021),” the company said in a third-quarter business update.
It attributed the strong demand to greater consumer confidence owing to declining COVID cases.
“The positive traction continued during this festive season on the back of further easing of COVID-related restrictions across all our markets in India and the Middle East, further supported by increased levels of vaccination and continued buoyancy in consumer sentiments.”
Kalyan Jewellers said its gross margin improved during the quarter when compared with the preceding three months of July-September.
It attributed the better margins to improvements in both studded jewellery share in overall sales and an increased share of revenue from non-south markets.
“Our studded share saw meaningful growth sequentially as well as when compared to the same period in the previous year, driven by the introduction of refreshed updates to our existing studded collections, launch of a new sub brand within the category and a higher share of revenue from the non-south markets.
“We also witnessed improvement in the Gold Savings Scheme (GSS) enrolments sequentially, as well as when compared to the same period in the previous year,” it pointed out, adding that margins are nearing pre-COVID levels.
Middle East, meanwhile, performed better than India, with revenue growing 22%, and contributing around 15% to the company’s overall top line.
“This growth was entirely same-store-sales driven since we did not add any showrooms in the region during the last 12 months.
“For the first time post the onset of COVID, majority of our showrooms in the region have recorded revenue higher than pre-COVID levels.”
Kalyan Jewellers’ online jewellery platform, Candere, saw revenue grow 35%, but the company did not give any idea of how substantial this was.
During the quarter, all the showrooms across India and Middle East were operational, though floods disrupted operations in some areas on Kerala and Tamil Nadu.
On the recent spike in COVID cases, the company said it was still monitoring the situation.