Kalyan Jewellers Q2 Results: Net profit rises 27% YoY on strong domestic demand

Kalyan Jewellers India reported a 27.1% rise in its second-quarter profit on Tuesday, helped by rising domestic demand for its ready-to-wear jewellery line and increased traffic at stores ahead of the festive season.

Consolidated net profit rose to 1.35 billion rupees ($16.23 million) from 1.06 billion rupees year ago for the three-months ended Sept. 30.

Its India operations, the biggest in terms of revenue contribution, saw revenue grow about 32%. Its Middle East operations saw a 5% jump in revenue as Eid holidays drove sales.

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"We are extremely excited with the way the festive quarter has progressed thus far," said Ramesh Kalyanaraman, executive director, Kalyan Jewellers India.

Revenue from operations grew 27% to 44.15 billion rupees, aided by strong demand and as same-store-sales- grew across all key markets, the company said via its quarterly update.

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The company also added that it expects to see robust momentum in both footfalls and revenue across all markets for the second half of FY24.

However, gold prices stretched to a record high of 61,845 rupees per 10 grams this year in India, pushing the jeweler's cost of raw materials up by 20.4% during the quarter.

Kalyan Jewellers' rivals Tribhovandas Bhimji Zaveri reported a near 65% rise in profit, while Tanishq jewellery brand owner Titan reported a bigger-than-expected second-quarter profit during the quarter. 

On Monday, Kalyan Jewellers shares closed flat at ₹337 apiece on BSE. 

($1 = 83.1850 Indian rupees) 

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