Gold prices continued its northward journey throughout FY 23-24 including in Q4 on account of heightened geopolitical tensions, increased gold buying by central banks across the globe, high FED rates and likely soft landing, INR US$ exchange rates and momentum effect, added the company.
During FY24, the jeweler’s revenue jumped 28% as compared to the same period a year ago.
Despite rising gold prices, on YoY basis the company has achieved 13% volume growth in gold and 19% volume growth in diamond in full year. The old gold exchange as % of sales increased from 29% to 32% YoY; out of which and almost 65% of old gold was from non senco customer indicating shift from non-organised to organized, the company stated in the press release.
The same store sales growth (SSSG) during FY24 was 19% out of retail sales growth; and was 23% out of total 30% retail sales growth during Q4 giving a major impetus for growth contributing about, it added.
Further, the firm said that it has achieved consistent improvement in stud ratio; blended (own showroom and franchisee showroom) stud ratio improved to 11.4% as against 10.4% recorded in last year. The company’s own showrooms achieved stud ratio performance of 13.1% as compared to 12% reported in previous year.
In its outlook Senco Gold stated, “We continue to have optimistic outlook for FY 24-25 , starting from Q1, FY 25 which has local new years (like Poila Baisakh/ Ugadi/ Baisakhi) and Akshay Tritiya staring from 10 May alongwith upcoming marriage season acting as tailwind for growth.”
During the year the company has launched 23 showrooms on net basis, reporting 17% growth including 4 showrooms in Q4, taking the total showroom portfolio to 159, the highest ever expansion since its inception. During the year, the firm launched 5 FOFO and 18 COCO showrooms.
Senco Gold is a pan-India jewellery retail player with a history of more than five decades. The company is the largest organized jewellery retail player in the eastern region of India based on number of stores. Among eastern India based jewellery retailers, it has the widest geographical footprint in non-eastern states.
The company’s consolidated net profit grew by 5.8% to Rs 109.32 crore on 23.3% increase in net sales to Rs 1,652.20 crore in Q3 FY24 over Q3 FY23.
The scrip hit an all time high of Rs 960 in intraday today.