Price surge dampens demand for jewellery: Senco Gold
Senco had reported a 23 per cent growth in its consolidated net profit at Rs 27.6 crore for the quarter ended June 2023, from revenue expansion of 30 per cent to Rs 1,305 crore.
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KOLKATA: Jewellery retail major Senco Gold Ltd on Friday said the recent sharp spurt in gold prices due to geopolitical reasons has dampened demand, and the industry’s first-quarter performance hinges upon ongoing buying propensity during festive and auspicious New Year celebrations.
The Kolkata-based retail chain said it has taken a slew of measures to combat the demand situation, with a push toward diamond-studded gold jewellery and consumer-centric schemes. However, these may not compensate for the 15-20 per cent de-growth in volume terms witnessed in March and April, a top company official said.
“In the last 30 days, the gold price has jumped about 10 per cent, and in the last six months, it has become costlier by 23-25 per cent. This sharp volatility has hit retail buying sentiment. Volumes have plummeted by 15-20 per cent for the industry,” Senco Gold managing director and CEO Suvenkar Sen said.
Senco had reported a 23 per cent growth in its consolidated net profit at Rs 27.6 crore for the quarter ended June 2023, from revenue expansion of 30 per cent to Rs 1,305 crore.
He, however, acknowledged in “value terms,” the market is expected to be flat as gold is hovering around Rs 70,000 per 10 grams.
Sen expects a flattish performanceperformance in the year-on- year Q4 sales that ended in March 2024.
