Akshaya Tritiya and regional festivals served as a strong consumption lever for the first quarter of this financial year and led to a 24% jump in Senco Gold Ltd.'s retail growth despite the rising gold prices, according to its quarterly business update.
In the first quarter, the company posted a total revenue growth of 28%.
The company said that festive demand had given a boost in the quarter under review, leading to more footfalls and improvement in invoices. The same-store-sales growth was 19% in this quarter.
The coin and bullion sales continue to be a small fraction of total gold sold, standing at 4.5%. The company has achieved 35% growth in diamond jewellery sales.
Retail demand in value terms remained strong, supported by the widespread adoption of old gold exchange, which contributed to 40% of total sales. The rise in gold price by 5% quarter-on-quarter had a natural impact on customers leading to reduction in average weight by 6.5% in line with increasing ASP and ATV of gold jewellery by 22%
In the June quarter, the company launched nine new showrooms under the franchisee and COCO model in West Bengal, Uttar Pradesh and Maharashtra.
The company expects the demand in the second quarter to be weakened with no major festivals or wedding demand. The company in the coming quarter will focus on inventory optimisation, festive collection and accelerating diamond and lightweight jewellery lines.
Additionally, price volatility in gold and upcoming festivals like Raksha Bandhan and Onam will share demand in the next quarter.
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