By Surabhi Upadhyay and Prashant Nair
Kalyan Jewellers, one of India’s leading jewellery chains, is witnessing a significant shift in consumer preference from the unorganised market to established brands like itself.
This trend is reflected in the company’s robust same-store-sales growth (SSSG), which stood at 10% in Q2, with the South region registering an 8% growth. The company targets a consistent SSSG of 5-6%.
Ramesh Kalyanaraman, Executive Director shared insights into the company’s recent performance and future plans in a chat with CNBC-TV18. He noted that Q3 has started on a strong note, with revenue growth so far at 35% and the India business growing the fastest. This surge in revenue is accompanied by a notable increase in footfalls across stores.
Kalyanaraman highlighted a decline in margins year-on-year (YoY), attributing it to the increase in franchise stores. Despite this, the company is optimistic about its growth trajectory, especially given the ‘amplified shift’ in demand from the unorganised to the organised market.
Kalyanaraman revealed plans to augment the company’s presence by adding a substantial number of stores in the upcoming quarters. In the third quarter, it is slated to open nine new stores, followed by an even more expansive plan for the fourth quarter with the addition of 12-15 stores. Next year, the company plans to add 80 new showrooms.
Kalyan Jewellers on Tuesday, November 14 reported an over 27% YoY growth in consolidated profit after tax (PAT) at ₹134.87 crore for the quarter ended on September 30.
Headquartered in Thrissur, Kerala, Kalyan Jewellers has a market cap of ₹34,713 crore and stands as one of the largest jewellery retailers in India with a notable presence in the Middle East.