Senco Gold Revenue Gains From Budget Filip To Sales

Senco Gold reported a solid start to the financial year 2024–25, with net profit rising over 82% year-on-year to Rs 51 crore in the first quarter, beating the consensus estimate of Rs 32 crore given by analysts tracked by Bloomberg. 

The gold jeweller's revenue grew 7.6% YoY to Rs 1,404 crore during the period under review.

“We saw a growth of 7.1% in the top line in Q1 in terms of gold but the budget really helped in triggering consumers to come to the store and the footfall increased. We could see that the growth in Q1 has gone up above 15% to date. So that's the kind of traction in terms of footfall and sales post-budget we have witnessed. Consumers have taken the customs duty cut decision in a very positive manner,” Senco Gold Chief Executive Officer Suvankar Sen said.

He believed that the policy change would help the industry become more organised and reduce the discrepancies caused by the influx of illegal gold.

Speaking on the sidelines of the Ambit India Access Singapore Conference, Sen also shed light on the prospects of lab-grown diamonds in India. 

“Right now, it is in a nascent stage. We are also working with four or five stores to understand consumer behaviour. Now, the base is very low but the future is bright. Over a period of five years, they might be a part of 2–5% of the industry.”

Senco plans to add 18–20 new stores to its network in the financial year 2024–25, with nearly 50% of these outlets working on a franchise model. 

"The focus will be mostly in the eastern and northern parts of the country because we will try to continue to go for the low-hanging fruits where the return on capital probability will be higher. This is because of the uncertainty in the market, volatility of prices, and risk factors associated with the geopolitical situation that will continue to happen," he said.