The company’s retail growth increased by 27% year-on-year (YoY), while same-store sales growth (SSSG) rose to 20% in Q2, up from 4% in Q1. Senco Gold attributed its strong Q2 performance to the consistent rise in gold prices, driven by central bank buying, a Federal Reserve rate cut, and geopolitical tensions that positioned gold as a safe-haven asset.
In the quarter, gold prices climbed 5% sequentially and 31% YoY, while silver prices rose 3% and 30%, respectively.
Additionally, favorable monsoon conditions in Eastern India contributed to robust growth in tier 3 and tier 4 cities. The reduction in customs duty in the Union Budget also helped stimulate pent-up demand from Q1, Senco Gold stated in an exchange filing.
The company further added that the high growth momentum till the first fortnight of the quarter was impacted by gold crossing $2680/0z in the international market along with the Shraddha period in the last week of September.
Looking ahead, Senco Gold plans to launch 18-20 jewellery showrooms this year, including 10-12 franchise locations. It has already opened 8 showrooms in the first half of FY25.”We have a strong pipeline of own and franchisee showrooms to meet the yearly target. We are also on course for 18-20% YoY revenue growth for FY25 considering the ensuing festive season Dhanteras, Diwali and Durga Puja. We are also taking all strategic initiatives, launching new collections and taking all steps to improve the stud ratio to 12%+ level,” the company said in an exchange filing.Last Friday, Senco Gold’s board approved a qualified institutional placement (QIP) of Rs 500 crore, alongside a 1:2 stock split. The record date for the stock split is yet to be determined, but the company intends to complete the process within three months of obtaining shareholder approval.
At 10:34 am, the stock was trading 3.2% higher at Rs 1,400 on BSE. Its shares have surged 99% in 2024 to date and 130% over the past 12 months, with the company currently holding a market capitalization of Rs 10,880 crore.
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