What initially appeared to be a difficult quarter for Kalyan Jewellers, one of India's leading organised jewellery retailers, has turned into one of the biggest positive surprises for investors in Q1.
The odds seemed firmly stacked against the company. Soaring oil prices, rising inflation concerns and renewed expectations of higher interest rates amid the West Asia crisis coincided with the once-in-three-years Adhik Maas period, which typically dampens wedding-related jewellery demand. At the same time, Prime Minister Narendra Modi urged citizens to curb gold purchases to help arrest the freefall in the Indian rupee, while customs on gold were raised to 15% from 6%.
