Senco Gold shares surged over 13 percent on April 15 following the company’s business update, which highlighted a 28 percent revenue growth for FY24 and a remarkable 39 percent year-on-year growth for the quarter ending March 2024.
Despite the upward trend in gold prices, Senco Gold achieved a 13 percent volume growth in gold and a 19 percent volume growth in diamonds for the full fiscal year. The company noted that while the rise in gold prices has affected unorganized jewelers, organized listed jewelers like itself have shown growth.
However, the increase in gold prices has tightened working capital availability due to higher margins for Gold Hedging and Gold Metal Loan (GML), according to Senco Gold.
The business update also revealed that old gold exchange as a percentage of Senco Gold’s sales increased to 32 percent from 29 percent last year, while its same-store-sales growth (SSSG) for the full year stood at an impressive 19 percent.
Despite challenges posed by the recent surge in gold prices due to geopolitical tensions in the Middle East, Senco Gold remains optimistic about its first-quarter performance, particularly during ongoing festive and auspicious New Year celebrations. The company has implemented several measures to address the demand situation, focusing on diamond-studded gold jewelry and consumer-centric schemes.
However, these measures may not fully offset the 15-20 percent decline in volume witnessed in March and April.
In FY24, Senco Gold expanded its footprint significantly by launching 23 net showrooms, including 4 in the January-March quarter, bringing its total showroom count to 159, the highest-ever expansion since its inception.
Senco Gold made its stock market debut in July 2023 through an Initial Public Offering (IPO) at an issue price of Rs 317. Since then, its share price has more than doubled, trading at Rs 913.15 at 10:27 am, up nearly 13.93 percent from the previous close.
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