Kalyan Jewellers Sees Resilient Gold Demand Amid West Asia Tensions
Kalyan Jewellers, an Indian jewellery retailer, reported robust sales in the June quarter despite volatility in gold prices due to tensions in West Asia. The company's consolidated revenue rose 46% year-on-year to Rs 10,588 crore, with net profit increasing 32% to Rs 348 crore.
Executive Director Ramesh Kalyanaraman stated that demand for gold jewellery remains strong, driven by wedding and festive sales. He noted that while consumers may pause purchases during price volatility, they eventually return when prices stabilize.
Kalyan Jewellers added 12 new showrooms in the quarter, taking its India network to 354 Kalyan showrooms and 129 Candere outlets. The company's reliance on recycled gold increased to 46% of total sales, up from 30% in the previous quarter.
The retailer's margins were under pressure due to higher old-gold exchange volumes and promotional offers following customs duty changes. However, Kalyan Jewellers aims to become debt-free by September after repaying its outstanding non-gold metal loan (non-GML) debt of Rs 318 crore.