BlueStone Q2 revenue rises 37% on festive demand, tops Rs 500 Cr
BlueStone reported strong growth in the September quarter as festive demand and wider distribution helped lift revenue and narrow losses despite volatility in gold prices and continued store expansion.
Bengaluru-based BlueStone Jewellery and Lifestyle reported a 37% year-on-year rise in operating revenue in the September quarter as it managed to rein in its losses, the company said in a filing with the stock exchanges.
The company posted a consolidated loss of Rs 51.8 crore, compared with a cash loss of Rs 84.6 crore in the same quarter last year.
"Given the significant growth opportunity ahead, we remain focused on striking the right balance between growth investments and profitability. Much of our investments over the past 15 –24 months were frontloaded, and their productivity is starting to get visible in the metrics we track and report," shared the company management.
During the same period, BlueStone saw consolidated revenue from operations stand at Rs 513.6 crore as compared to Rs 373 crore in the previous year. On a sequential basis, it clocked a marginal 4% increase from Rs 492 crore in the June quarter.
Growth in the quarter was helped by a wider distribution reach and a pickup in festive demand in the latter half of September. The month of September was mixed, with softened demand early in the month due to rising gold prices; however, festive buying stayed resilient.
Even with a dynamic operating environment with fluctuation in gold prices, the company managed to hold same-store sales growth of 11.1% in the second quarter. After adjusting for a high base of last year with custom duty cuts, same-store sales growth stood at 43.8% year-over-year.
"We are seeing divergent consumer demand behaviour in the short term in response to the volatility in gold prices—as seen in the initial restraint in early September, followed by resilient festive demand later in the month," shared the management on its SSG performance.
On a standalone basis, the company saw positive cash PAT for the quarter at Rs 6.1 crore against a cash loss of Rs 53.6 crore in the same quarter last year.
Edited by Jyoti Narayan