Jewellery chain Senco Gold is looking at 15-20 per cent growth in revenue and profit in the current fiscal, despite rising prices of the yellow metal and global uncertainties. The jeweller is also planning to add 15-20 stores in the current 2024-25 financial year (FY’25), of which around 50 per cent will be franchisee-owned.
“We are looking at a growth of 15 per cent as a conservative estimate, which may go up to 20 per cent in normal circumstances, in both revenue and profit in FY’25,” Senco Gold MD & CEO Suvankar Sen told PTI.
The jewellery chain reported a 39 per cent year-on-year revenue growth in the fourth quarter of FY’24 (2023-24) to INR 1,137 crore, while its profit jumped 23 per cent to INR 32.17 crore.
For the entire fiscal year, the revenue growth was 29 per cent with turnover reaching INR 5,241 crore, backed by rising gold prices and increased demand from existing and new stores. The net profit expanded by 14 per cent to INR 181 crore.
In 2023-24, the retail jewellery chain opened 23 new outlets, taking its total count to 159.
“We plan to add another 15-20 stores in the current fiscal. These outlets will be divided equally between company-owned and franchisee-based ones. We have invested in new store capex (capital expenditure) and capacity building for the future, amounting to over INR 38.23 crore for our pan-India strategy,” he said.
Sen also mentioned that the retail jewellery chain is entering new markets in the west and south of the country but 70-80 per cent of its growth would come from east and north India.
The company will continue to build upon its brand in the new markets.
Sen said Senco will leverage its brand and customer loyalty, but margins will remain under pressure due to a sharp rise in gold prices.
The company has to incur additional costs to offer customer-centric schemes like protection from gold price volatility to drive footfall in stores, he said.
Its EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin slipped 60 basis points year-on-year to 7.2 per cent in FY’24.
