Kalyan Jewellers India 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 reported a near 65% rise in profit, while Tanishq jewellery brand owner Titan reported a bigger-than-expected second-quarter profit during the quarter. ($1 = 83.1850 Indian rupees) (Reporting by Ashna Teresa Britto in Bengaluru)