Senco Gold – 03.01.2024 – Interview Notes:
• Q3 first half has seen good growth; Dec onwards demand tapered due to higher gold prices
• 20-25% growth seen in Q3FY24
• Increase in Gold Prices is keeping the demand in check but consumers are happy to see the value of existing jewellery going up
• Growth in Diamond Jewellery – 14C, 18C products is showing good demand
• Profits improving due to premiumization
• 18-20% growth guidance held for the year; Q4 may not be as good due to seasonality
• Diamond share is at 12% of the whole revenues – targeting 15%+ in coming years
• H1 – 33% Diamond, 11.4% Gold
• 80% of the inventory remains hedged (making charges is where they earn their margins)
• Trying to balance b/w growth and margins via diamond growth and discounts / offers
• Stores: 153 stores (4-5 stores in Q3FY24 and 3 stores to be opened in Q4FY24; 18-20 stores opened in FY24) – 60-70% Company-owned, Rest is franchise owned
• SSSG at 19%
• 1-1.5% market share at a national level; much better at a regional level
• Online: Lighter jewellery doing well as customers are getting comfortable; Heavier jewellery remains more retail stores based
• Lead generation and digital led retail sales is what one needs to look at
Disc: Invested
Link to the interview: https://youtu.be/AXw-dTO9V64?si=8T6HkrieRb9YbM61
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