Senco Gold Achieves Record Q3 Revenue, Shares Soar 15.58%

Senco Gold Achieves Record Q3 Revenue, Shares Soar 15.58%

VoM News Desk | January 11, 2024 | 11:43 AM IST | Breaking News | Follow on Google News

Senco Gold Achieves Record Q3 Revenue, Shares Soar 15.58% /Mint

Senco Gold Achieves Record Q3 Revenue, Shares Soar 15.58%

In early trade on Thursday, Senco Gold witnessed a remarkable surge of 15.58%, reaching a fresh lifetime high of ₹850 per share, following the release of its Q3FY24 business update after market hours on Wednesday. The company reported its highest-ever Q3 revenue, demonstrating consistent growth across diverse geographies and channels.

During Q3 FY24, Senco Gold achieved a remarkable 24% revenue growth compared to the same period in the previous fiscal year and a substantial 26% YoY growth in the first nine months of FY24. This impressive performance can be attributed to strategic factors like the Dhanteras offer, festive promotions, and wedding offerings, driving increased footfall and boosting sales in alignment with market sentiment.

Despite the upward trend in gold prices, Senco Gold achieved a commendable 9% volume growth in gold and an impressive 27% volume growth in diamond jewellery. The company highlighted that the old gold exchange accounted for 33% of total sales, with nearly 70% of old gold sourced from non-Senco customers, indicating a shift towards organized and Senco as the preferred jeweller.

The Same Store Sales Growth (SSSG) contributed significantly to the overall growth, representing 17% out of the total 24% growth in Q3 FY24. The nine-month SSSG stood at 19% out of a total 26% YoY growth. Senco Gold also achieved a consistent improvement in the stud ratio, with showrooms displaying a stud ratio performance of 13.2%, a growth of 190 basis points over the last year.

The company, with a history spanning more than five decades, has expanded its presence by launching 19 showrooms over the last nine months, bringing the total showroom count to 155. Senco Gold’s shares, which debuted at ₹405.3 apiece in July of last year, have shown an impressive upward trend, currently trading at a 157% premium over its IPO price.

Earlier in December, SBI Securities initiated coverage on the stock with a ‘buy’ rating and a target price of ₹920 apiece, citing significant growth prospects in the Indian retail jewellery market due to its strong legacy, focus on affordable jewellery, robust business model, expanding regional presence, and effective hedging practices. As of 10:00 am, the stock was trading at ₹820.90 apiece, with a gain of 11.56%.

VoM News Desk

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