Senco Gold Ltd Reports Impressive Q1 Growth Amid Customs Duty Reductions

Kolkata-based Senco Gold Ltd posted a net profit of Rs 51.27 crore for Q1 FY24, an 85.4% increase, driven by higher revenue. The company's consolidated revenue rose by 7.5% to Rs 1,403.89 crore. With customs duties on precious metals reduced, growth prospects appear positive.

Senco Gold Ltd has posted a remarkable net profit of Rs 51.27 crore for the first quarter of the current fiscal year, registering an 85.4 per cent surge thanks to higher revenue.

The Kolkata-based gold and diamond jewellery chain experienced a 7.5 per cent year-on-year growth in consolidated revenue, reaching Rs 1,403.89 crore for the quarter that ended on June 30.

The company's EBITDA increased by 61.8 per cent to Rs 108.74 crore during this period, as reported to bourses.

In a bid to expand its presence, the jewellery retailer opened six new showrooms, lifting its total to 165, including an outlet in Dubai. Year-on-year retail sales rose by 9.6 per cent, with same-store sales growth standing at 4 per cent.

Senco Gold MD and CEO Suvankar Sen remarked, "The Indian government's reduction of customs duties on gold, silver, and platinum is expected to boost demand, particularly the latent demand from Q1. This reduction should lead to lower gold prices, attracting more customers and increasing market shares for organized players."

Company CFO Sanjay Banka indicated that the customs duty cuts would affect inventory valuation, impacting gross margins and EBITDA over the coming quarters. "We are drawing up plans to mitigate these impacts and aim to achieve our targeted EBITDA and PAT alongside significant growth," he stated.

(With inputs from agencies.)