P N Gadgil Jewellers Q1 Update: Retail-Business Revenue Rises 19%
The share of studded jewellery increased 42% year-on-year, taking the ratio to 10% of the retail sales.
P N Gadgil Jewellers Ltd. said on Monday that revenue from its retail business for the April-June period of the current financial year has grown 19% against last fiscal's similar quarter.
For the quarter under review, PNG Jewellers' total revenue jumped 30% to Rs 1,713.7 crore against last year’s similar period, the company said in the exchange filing.
As for the e-commerce segment, the jeweller’s revenue increased an astounding 126% year-on-year in the June quarter. However, it only accounted for 3.9% of the total revenue. While the franchisee operations revenue rose 109%, it accounted for 15.7% of the total revenue.
The other segment, excluding refinery, contributed 0.1% of total revenue in the quarter. The segment consists of business-to-business and corporate sales.
The share of studded jewellery increased 42% year-on-year, taking the ratio to 10% of the retail sales. "This uptick highlights the growing popularity of stud-based Jewellery, aligning with evolving consumer preferences," it said.
PNG Jewellers' same-store sales growth for the quarter under review was at 8%, primarily impacted by the absence of the Gudi Padwa festival during the quarter. The festival that was earlier part of the first quarter was preponed to the fourth quarter this time. This according to the company has impacted the like-for-like comparability.
The company added that it has launched one new company-owned store and one franchise outlet in this quarter. It has also launched a sub-brand Lifestyle for address the growing demand for stylish and lightweight jewellery.
The company expects to add seven to nine new stores in the next quarter in a move to reach a target of opening 20-25 new stores in this financial year. Madhya Pradesh and Uttar Pradesh will be the centre of the company's expansion plan as it presents strong growth potential.
The business update was shared after market hours. The stock settled 2.56% higher at Rs 609.95 apiece on the NSE, compared to a flat close in the benchmark Nifty 50. PNG Jewellers' shares have fallen 23.11% since its listing in September and 8.33% year-to-date.
An analyst tracking the stock has a 'buy' rating, according to data on Bloomberg. The average of 12-month analysts' price target of Rs 825 implies a potential upside of 35.3% from its previous closing.
