Business Update of Senco Gold Ltd for Q1 FY 2024-25

Business Highlights: Q1 FY 2024-25 (Q1 25)

Business performance

Senco Gold and Diamonds achieved retail sales growth of 11% and same store sales growth (SSSG) of 4% in recently concluded Q1 25 . Akshay Tritiya auspicious period performance was as per our expectation with YOY growth of 21% against the same period last year despite extreme high heat wave across the country, Lok Sabha elections and low wedding days in Q1. ATV and ASP also grew in 12% range. The total sales growth was 9% YoY in Q1 including exports, ecommerce, corporate, digital products etc.

Q1 was marked by successful execution of marketing and branding strategies to attract the footfall during traditional New Years in many parts of India like Bihu, Gudi Padwa, Poila Baisakh , Baisakhi and Akshay Tritiya. We launched several new collections such as Gathbandhan Wedding collection to help customers start doing wedding buying for limited summer wedding dates or year end wedding, also attractive lightweight Everlite diamond collections like Ribbon, Forest Queen and Pleat etc.

We focussed on new designs , collections, and innovative pocket friendly new generation products launching the newest sensation in the world of investments- " Senco Gold Beans" ! India's first tablet-sized gold beans are hallmarked for purity and innovation. Gold Beans present an ideal avenue for young investors to embark on their financial journey, offering an accessible means to cultivate wealth gradually.

Industry Update

Gold prices rose globally by ~17% between April 23 to Mar 24 (from US$ 1960/Oz to US$ 2234/Oz) and further ~9.5% in Q1 leading to US$ 2340/Oz level on June 24 . The peak price level was touched in mid-May-24 at around US$ 2450/Oz level. On YoY basis, average gold price have risen by almost ~20% in Q1 ; and QoQ basis 13% versus Q4.

The gold price rise has primarily been driven by global economic uncertainty, Israel-Hamas war weakening US dollar and global talks on dedollarization - all leading to heightened central bank buying globally. As per World Gold Council report, gold buying by central banks was the key driver for price rise in Q1(CY 24-25) with ~290 tonnes central bank buying primarily led by China, Turkey and India.

Showroom Expansion:

In Q1, we added 6 new showrooms taking to the total showroom portfolio to 165. The new addition includes 4 owned and 2 franchisee.

Outlook FY 24-25

We are readying for wedding buying in Q2 & H2 which includes festivals like Rath Yatra, Freedom Independence day Period, Teej, Durga Puja,Navrarti , Dhanteras/ Diwali and Weddings etc . We have strong funnel of new showrooms in both channel throughout the year for our planned growth. Senco has maintained a healthy CAGR growth of 21% in last 5 years and expect to grow at 18% - 20% percent this year too.

Shares of Senco Gold Limited was last trading in BSE at Rs. 1078.80 as compared to the previous close of Rs. 1092.35. The total number of shares traded during the day was 29026 in over 2873 trades.

The stock hit an intraday high of Rs. 1110.15 and intraday low of 1064.95. The net turnover during the day was Rs. 31319477.00.

Source : Equity Bulls

Keywords

SencoGold INE602W01019 Jewellery Gems Watches BusinessUpdate Q1FY2025