In March 2021, Kalyan Jewellers successfully completed its initial public offering (IPO) and raised approximately Rs. 800 Crore (Rs. 8,000,000,000) of primary capital for the Company, representing a significant milestone in the evolution of its growth journey.
The company witnessed a robust increase in consumer demand in Q4 FY 2021, resulting in a revenue growth of approximately 60% for our India operations, as compared to the same quarter in the prior year. Revenue growth for the first two months of the quarter (January & February) was approximately 35%, while growth in March was significantly higher, skewed by the loss of sales the company experienced in the base due to the COVID-19 pandemic's impact on our retail operations in March 2020. The vast majority of its growth in the recent quarter was same store sales driven, as only two stores were opened during the past one year period. The company believes a significant driver of its recent revenue growth momentum in India has been a meaningful shift in consumer demand from the unorganized to the organized segment, which has been evident in the increase in footfalls it has seen across its store network. The growth in India was broad-based across geographies, although the growth in South India was better than in Non South. While it did witness growth in its higher-margin studded product portfolio, the acceleration in demand for the plain gold jewellery products was higher, particularly for the faster-moving, staple, regionally-oriented gold jewellery collections which carry lower making charges. Given company's hyperlocal approach towards conducting business catering to its customers' regional preferences, which often vary significantly by geography and micro market, the company was well-positioned to cater to this shifting demand across our store portfolio.
However, gross margin in the most recent quarter has been adversely impacted, partly due to a combination of the previously mentioned factors, as well as the recently announced reduction in customs duty.
The company is closely monitoring the evolving situation on the ground in relation to the ongoing COVID-19 pandemic and continue to take steps to ensure the safety of consumers and its employees. As on date, other than our 9 stores in Maharashtra (out of a 107 total base), all of its stores in India are currently operational.
In the Middle East, company's business continues to recover from COVID-19 related dislocations as restrictions are gradually being lifted within the markets in which its operate. For Q4 FY 2021, the Middle East business witnessed a decline in revenues of approximately 20% over Q4 FY 2020, partially attributable to the decision to close 7 of our stores in the region (out of
a 37 total base at the time) during FY 2021.
The metrics and other details provided above are subject to statutory audit process. Post board approval of our financials for the quarter and year ended March 31, 2021, a detailed information update will follow.