Highlights from Senco Gold’s Q1 management commentary-
Jewellery is a 4.5 lakh cr/yr industry in India – That’s big !!!
About 35 pc of Industry is organised
Hallmarking, GST-tailwind for organised players
Industry wide Stud ratio at aprox 15 pc (Gold:Daimond jewellery ratio)
For Senco, Stud ratio stands at 11 pc
Total stores now at > 140 (owned + franchise)
Secco’s Stud ratio in Delhi NCR is much better at 18-20 pc. This helps boost profitability
Gold, Silver, Platinum volumes increased by 8, 7, 9 pc in Q1. Total sales value increased by 29 pc YoY
Same store growth (vol+value) in Q1 at 21 pc
No of unique customers increased by 8 pc yoy in Q1
Generally, Q2 is weaker vs Q1 by aprox 10 odd pc
Sale of billion (coins etc) is about 1-2 pc of sales
Company follows a robust hedging policy. Remains > 80 pc hedged at all times
Company’s sale of diamond jewellery doubled from FY 17-22. Then grew 30 pc in FY 23. In Q1 FY 24, the same has grown by > 30 pc – a very encouraging trend as margins are higher here
Company sells inventory to Franchise owners in one go ie upfront
Company’s current focus is pre dominantly in North and East India – specially towards Tier -2,3 Cities/Towns
Current avg ticket size @ 60k vs 55k YoY
Expect sales of > 1000 cr in Q2 vs around 900 cr LY despite fewer wedding days in Q2 this yr
Have been developing designs differently for North and East Indian tastes. Avg ticket size is higher in North vs East India
Company runs Gold SIP scheme – Gold Swarna Yojana. Has been recieving very good response
Disc: holding, intend to add more on Dips
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