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regular-article-logo Friday, 21 June 2024

Senco sees sharp spike in exchange of old gold

'We have seen that old gold exchange by our customers has grown substantially. Two years back it was about 22 per cent of the overall business but now around 32 per cent of our overall business is through the exchange of old gold,' Suvankar Sen, MD and CEO, said at the earnings call

A Staff Reporter Calcutta Published 26.05.24, 11:30 AM
Representational image

Representational image File picture

Senco Gold Ltd has witnessed an increase in the share of gold sourced through old jewellery exchange to around 29 per cent of the total sourcing in 2023-24.

In 2021-22, the share was around 22 per cent, according to the company’s fourth quarter earnings presentation. Jewellers generally depend on banks, old jewellery, bullion dealers and trading for sourcing gold. Old gold jewellery exchange as part of the total business has grown for the company.

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“We have seen that old gold exchange by our customers has grown substantially. Two years back it was about 22 per cent of the overall business but now around 32 per cent of our overall business is through the exchange of old gold,” Suvankar Sen, MD and CEO, said at the earnings call.

“Hallmarking policies of the government is working in the right direction. Consumers are much more aware of all the established brands and the importance of buying jewellery of the right purity and standards. As a result, we are seeing a shift of the consumers from unorganised to organised jewellers,” he said.

The jewellery company has posted a 23.6 per cent growth in net profit for the fourth quarter ended March 31, 2024. Net profit during the quarter was 32.17 crore compared with 26.03 crore in the corresponding quarter of the previous year.

Revenue from operations was 1,137.28 crore, a 39.7 per cent rise from 813.93 crore in the corresponding quarter of the previous year, aided by rising gold prices.

“In this rising gold price scenario, we have achieved a total revenue growth of 28.5 per cent (for FY24) and retail revenue growth of 25 per cent, which included same store sales growth of 19 per cent — amongst the highest in the industry,” said Sen.

Sen said the company will continue to grow the topline at about 18-20 per cent. The jeweller is also looking to add 15-20 stores in this fiscal.

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