Shares of Kalyan Jewellers soared 6% to Rs 127.60 on Monday after the company said its consolidated revenue for the December quarter (Q3FY23) rose by about 13% compared to the same period in the previous financial year, as the quarter witnessed Traffic and revenue across all markets was driven by festive solid demand. The stock touched a 52-week high of Rs 134 on December 29, 2022.

In its third-quarter business update, Kalyan Jewellers said the company’s consolidated revenue for the first nine months (April-December) of the 2022-23 fiscal year rose 35% compared to the same period in the previous financial year.

Revenues from India business grew 12% year-over-year in Q3FY23, although Q3FY19 was the first quarter of normalisation following COVID-related market disruptions. While traffic momentum was broad across regions, revenue growth was higher in non-Southern markets, mainly due to an increase in the number of new showroom launches in the area over the past 12 months, the company said.

The company witnessed gross margin expansion, growing sequentially in the most recently ended quarter, mainly due to concentrated share and revenue share improvement in non-Southern markets. The company added a net of 5 new ‘Kalyan’ showrooms (all non-Southern showrooms) in the recently ended quarter, bringing the total number of showrooms in India to 136 as on December 31, 2022.

Kalyan Jewellers expects to open 11 new franchised showrooms in non-Southern markets in the next three months to open 52 new showrooms by FY2023. The company has signed 25 letters of intent (LOIs) with potential franchise partners, and the showroom will be launched in the next financial year (FY2024).