Kalyan Jewellers has provided an update on its Q1 performance, revealing that its revenue has increased by 31%, although the blended gross margin has declined. The company has expanded by opening 12 new showrooms under the 'Kalyan' brand in non-south markets during the quarter. Additionally, it plans to launch an additional 20 showrooms in these markets before Diwali.

The shares of Kalyan Jewellers will be closely watched on Friday following the announcement that its consolidated revenue for the June quarter has risen by 31% year-on-year. This growth can be attributed to the continued positive performance in footfall and revenue across markets in India and the Middle East. The company's India operations have specifically experienced a 34% increase.

Kalyan Jewellers stated that its operational momentum remained consistent throughout the quarter, including during Akshaya Tritiya, which highlights the resilience of its category within the overall consumption sector. Although revenue growth in the same-store segment was strong across different regions, the non-south markets reported higher overall revenue growth due to the recent launch of more showrooms in that area over the past year.

The company noted that the gross margin at the showroom level has improved compared to the previous year and remained relatively stable compared to the prior quarter. However, the blended gross margin declined sequentially and year-on-year due to the higher proportion of revenue from franchised showrooms.

Looking ahead, Kalyan Jewellers plans to launch 20 additional showrooms in non-south markets before Diwali as part of its strategy to open a total of 52 new showrooms this year. The company aims to maintain its positive momentum in the Middle East, where it has witnessed robust footfall and revenue growth driven by strong economic activity in the region. In the recently concluded quarter, revenue growth in the Middle East reached 21%. The company attributed this growth primarily to same-store sales, as network expansion in the region over the past year has been limited. Additionally, sales during Eid holidays, which were not included in the previous year's revenue, contributed to higher-than-usual same-store sales growth in the recently concluded quarter.

Furthermore, Kalyan Jewellers anticipates launching its first Franchisee Owned Company Operated (FOCO) showroom in the Middle East during Q2 FY 2024.