New Delhi: Jewelry retailer Senco Gold has reported an 85.4 per cent increase in consolidated net profit at Rs 51.27 crore for the first quarter (Q1) of the fiscal year 2024-25 (April-June 2024) as compared to Rs 27.66 crore in the same period previous fiscal, it said in a regulatory filing on Tuesday.
Its consolidated revenue saw a year-on-year increase of 7.5 per cent, reaching Rs 1,403.89 crore. Customs duty reduction on gold has impacted inventory valuation, as per the BSE filing.
The Kolkata-based gold and diamond jewelry chain recorded a growth in its EBITDA, which surged by 61.8 per cent to Rs 108.74 crore for the quarter ending June 30.
The company expanded its footprint by opening six new showrooms, including one in Dubai, bringing its total count to 165. Its retail sales also rose 9.6 per cent year-on-year while same-store sales growth stood at 4 per cent.
Senco Gold MD and CEO Suvankar Sen said, “To enhance domestic value addition in gold and precious metal jewellery, the government of India has reduced customs duties on gold and silver to 6 per cent, and on platinum to 6.4 per cent from the earlier 15 per cent.”
He added, “This reduction is expected to galvanize future demand, especially the pent-up demand from Q1. With lower gold prices, jewellery companies anticipate more footfalls and increased market share for organized players.”
Senco Gold has set an ambitious growth target of 18-20 per cent for the current fiscal year. The company’s CFO, Sanjay Banka, expressed that the customs duty reduction from 15 per cent to 6 per cent will affect inventory valuation and consequently impact the gross margin and EBITDA over the next two to three quarters.
“We are working on action plans to mitigate this impact to achieve the targeted EBITDA and PAT with commensurate growth over last year,” Banka said.
The company’s revenue growth and strategic expansion efforts underscore its positive trajectory despite the challenges posed by changes in customs duty.
