Kalyan Jewellers India's Q2 profit rises on strong domestic demand

Kalyan Jewellers India

14/11/2023 08:06

BENGALURU, Nov 14 (Reuters) - Kalyan Jewellers India
 KALN.NS  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.
    "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. 
    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
 TBZL.NS  reported a near 65% rise in profit, while Tanishq
jewellery brand owner Titan  TITN.NS  reported a
bigger-than-expected second-quarter profit during the quarter.

($1 = 83.1850 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru)
 ((AshnaTeresa.Britto@thomsonreuters.com;))