Kalyan Jewellers India Ltd. witnessed an uptick in its share price on Friday, rising by 1.56% to close at ₹318.25 and peaking at ₹320.05, bucking the prevailing market downturn. The company's financial performance for the second quarter of the fiscal year 2024 (Q2 FY24) demonstrated robust growth, with consolidated revenue reaching ₹4,415 crore, a significant increase of over 27% year-on-year.
The growth trajectory was led by the company's operations in India, which saw an approximate 32% year-on-year growth in both revenue and profit after tax (PAT). Specifically, Indian operations reported revenue of ₹3,754 crore and a PAT of ₹126 crore. The Middle East operations also reported positive results with approximately a 5% growth in revenue at ₹629 crore (INR100 crore = approx. USD12 million) and PAT at ₹12 crore.
Candere, Kalyan Jewellers' e-commerce division, posted revenues of ₹66 crore in the first half of FY24, although this figure represents a decrease from ₹81 crore recorded in the same period of the previous fiscal year. For the quarter specifically, Candere's revenue was ₹31 crore, down from ₹37 crore in Q2 FY23.
Despite the mixed performance from the e-commerce segment, analysts from Citi and HSBC (LON:HSBA) have maintained their bullish stance on Kalyan Jewellers' stock. Citi has set a target price of ₹440 per share while HSBC has a target of ₹370 per share.
A key driver for the company's impressive domestic sales growth of 32% year-on-year has been the significant contribution from new customers, who accounted for 36% of sales. Kalyan Jewellers attributes its positive results to effective network expansion strategies that are both franchise-led and asset-light, signalling an efficient approach to scaling its business operations while managing costs.
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