Strong festive demand drives Senco Gold’s Q1 performance, with retail revenue rising 48% despite higher gold duties and margin pressures.
Senco Gold, one of India’s pan-India jewellery retail chains, reported a strong business update for the quarter ended June, with robust growth across revenue and retail performance, driven by festive demand and higher same-store sales.
The company reported a 60 per cent year-on-year increase in revenue, while sequential growth stood at 53 per cent.
Retail revenue rose 48 per cent year-on-year and 51 per cent quarter-on-quarter. Same-store sales growth (SSSG) came in at 38 per cent, supported by a strong festive calendar that included Akshaya Tritiya, Poila Baisakh, Baisakhi, Bihu and the onset of the summer wedding season.
The company said performance remained resilient despite the Adhik Maas period and the sharp increase in customs duty on gold from 6 per cent to 15 per cent. It added that gold prices remained elevated on a year-on-year basis, although they eased sequentially due to geopolitical developments.
Senco Gold said it expects to benefit from the recent 9 per cent customs duty increase on gold over the first and second quarters. However, it noted that the impact will be partly offset by its current 50 per cent hedging position and higher discounting during the quarter, which is expected to weigh on margins in the June quarter.
The diamond jewellery segment also delivered strong growth. Value sales rose 40 per cent year-on-year, while diamond volumes increased 15 per cent. Growth was driven by higher volumes, an improved product mix, expansion of lower-priced offerings under Rs 50,000 in the Everlite segment, and new product launches.
During the quarter, Senco Gold added eight new showrooms, comprising three company-owned company-operated (COCO) outlets, four franchise stores and one Sennes store. With one store closure factored in, the total network now stands at 208 showrooms.
The company continues to expand its retail footprint and plans to open 12–15 additional showrooms over the next three quarters, with a continued focus on strengthening its franchise-led expansion model.
Looking ahead, Senco Gold expects the September quarter to remain subdued, followed by an improvement in the subsequent quarter, supported by the monsoon season and festival-led gold demand. “Our focus will remain on inventory optimisation, lightweight and 9K collections, and margin protection,” the company said.
