Senco Gold jumps 17% after company reports 28% growth in FY24 revenue

Shares of Senco Gold jumped over 17% during Monday morning trade after the company announced significant growth in its annual and quarterly revenues. Senco is a pan-India jewellery retailer with over 159 showrooms across India.

Senco said in an exchange filing that the company witnessed a 28% year-over-year (y-o-y) growth in fiscal year 2024 revenues while its fourth quarter revenue jumped 39%.

The company pointed out that despite rising gold prices, it achieved a 13% volume growth in gold and 19% volume growth in diamond during the full year. The old gold exchange as percentage of sales increased from 29% to 32% year-over-year, of which almost 65% of old gold was from non-Senco customers, indicating a shift from non-organised to organised, it said.

During the year, the company launched 23 showrooms on a net basis, registering a 17% growth. It included the launch of four showrooms during the fourth quarter.

Senco said it continues to have an optimistic outlook for the current fiscal year, starting from the first quarter of FY25 which has local new years and Akshay Tritiya starting from May 10 along with upcoming marriage season acting as tailwind for growth.

The company pointed out that gold prices continued its northward journey throughout FY24 including Q4 on account of heightened geopolitical tensions, increased gold buying by central banks across the globe, high Federal Reserve rates and likely soft landing, dollar-rupee exchange rates and momentum effect. The rise in gold prices has impacted unorganised jewellers, but as far as organised listed jewellers are concerned, they have grown impressively, it said. Senco stated that price rise has led to squeeze in the working capital availability due to higher margins for gold hedging and gold metal loan.

Shares of Senco have risen over 34% since the beginning of the year. The stock has gained over 133% in the last one year.