India`s Kalyan Jewellers quarterly profit surges on seasonal demand
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Kalyan Jewellers India reported on Wednesday a 33% surge in its first-quarter profit, underpinned by premium pricing and improved demand during the festive season.
The jewellery retailer's profit came in at 1.44 billion rupees ($17.39 million) for the three-month period ended June 30.
Demand for gold usually stays strong in April as Indians celebrate annual festival of Akshaya Tritiya, when buying bullion is considered auspicious.
The Reserve Bank of India's decision to withdraw 2,000-rupee notes also helped jewellers charge a premium for the yellow metal during most of the reported quarter.
The Thrissur, Kerala-based company's revenue grew 31.3% to 43.76 billion rupees, led by a 34% increase in revenue from its operations in India - the world's second-largest consumer of gold.
"The recently concluded quarter ... witnessed continued robust momentum in both footfalls and revenue across all our markets in India and the Middle East," Executive Director Ramesh Kalyanaraman said in a statement.
Shares of Kalyan, which gained 45.2% so far this year, were up 3.4% after the results were announced.
Kalyan Jewellers' peer Tribhovandas Bhimji Zaveri posted a five-fold jump in profit, while Tanishq jewellery brand owner Titan reported strong gold sales during the first quarter.
