Kalyan Jewellers’ executive director Ramesh Kalyanaraman said hallmarking will increase the shift from unorganised to organised players in the market.
“The shift from unorganised to organised, the momentum which we saw in Q4 was accelerated in Q4 itself because people wanted to come to standalone stores and with hallmarking coming in, the acceleration is going to go up further,” Kalyanaraman told CNBC-TV18 in an interview.
The remark comes a day after the company reported earnings for the March-ended quarter and saw a strong performance on a low base. Profit after tax (PAT) was aided by lower finance cost in Q4 but margins contracted impacted by a decline in the studded segment.
A hallmark is an official mark on items made of metal to certify the content of noble metals such as platinum, gold, silver and in some nations, palladium.
Talking about demand during the pandemic, Kalyanaraman said, “Q1 was totally gone last year. But, demand reappeared and we reached around 93 percent of the previous financial year in terms of revenue. So demand does not go away, it comes back in the next quarter.”
He added that more than 80% of showrooms are shut due to COVID-19 restrictions across states but they expect demand to bounce back once curbs are eased.
For the entire management interview, watch the video