Shares of Kalyan Jewellers India fell as much as 5 per cent on October 7 as investors rushed to book profits off the stock after the company released strong Q2 business updates. The 40 per cent run-up in the stock in the past three months gave investors plenty of leeway to take home partial profit, resulting in the selloff in the counter today.
At 10.17 am, shares of Kalyan Jewellers India were trading at Rs 694.55 on the NSE, slightly off its day's low of Rs 678.50.
The Kerala-based jewellery maker recorded a consolidated revenue growth of around 37 per cent for the September quarter compared to the same period last year. In India, growth momentum continued as revenue grew by 39 per cent, driven by strong operational performance across all markets, with same-store sales rising by nearly 23 per cent in the second quarter.
The jewellery maker attributed the boost in footfalls from late July through August to the reduction in customs duty on gold imports, announced in the Union Budget, which largely offset the typically muted sales during the 14-day Shradh period. In contrast, only two days of Shradh fell within the second quarter of the base year, the company said in its exchange filing.
In the Middle East, Kalyan Jewellers saw revenue growth of about 24 per cent compared to the same period last year. The Middle East market contributed 13 per cent of Kalyan's consolidated revenue for the July-September quarter.
Meanwhile, the company's digital-first platform, Candere, reported revenue growth of around 30 per cent compared to the same period last year. During Q2 FY25, the company launched 12 new Candere showrooms.
As part of its previously announced plan to open over 130 new showrooms in the current financial year, Kalyan has already opened 51 showrooms and plans to launch an additional 25 Kalyan showrooms in India, 18 Candere showrooms, and its first US showroom by Diwali. In total, the company opened 26 new showrooms across both Kalyan and Candere formats during the quarter, bringing the total number of showrooms to 303 as of September 30, 2024.
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