Senco Gold Expects Most Growth From New Stores, Looking To Expand Global Presence

Senco Gold Ltd. Chief Executive Officer, Suvankar Sen, expects the most growth from the new stores. About 4–5% growth is already coming in from new stores, according to him.

October saw sales worth Rs 1,000 crore due to festive purchases and Sen recalls Q2 to be one of the best quarters, with 29% growth pushed up by the customs duty cut.

"Growth is coming from the smaller towns. We have focused on the east and northern side of India. North is an open market for everyone with diamond jewellers. The stud ratio is going up and gold is driving sales," he said.

There has been double digit growth in operational profitability and revenue for Senco Gold. The revenue of the company stands at Rs 5,241 crore and Ebitda at Rs 377 crore so far this year. The gross debt is recorded at Rs 1,500 crore and their cash reserves are at Rs 552 crore.

One concern is the return ratio that has come down from about 15% in 2022 to 12.5% in 2024. The price-to-earnings value is also expected to see a downtick in 2025, according to Bloomberg.

Sen expects diamonds to pick up next year and the US economy decisions will have a direct impact on sales. The sector is getting more organised with stronger software, more team strength and better ability to raise capital, he noted.

"The smaller players are also trying to be more organised. Gold prices are going up and people are sitting in huge quantity of old gold. People do have faith is gold and are buying," he said.

Talking about the growth and expansion plans of the company, Sen mentioned international branches.

"We have opened our first international store in Dubai. We are looking to expand to the US and Europe," he said. Though the plans may not be executed this year, he said that it may happen within the next three to four years.

Sen noted that the other players have also rapidly expanded on a global scale. The company is keeping a close eye and observing the consumer trends, according to Sen.