Gold jewellery retailers’ revenue to increase by 12 to 15 percent in FY23: Crisil

By

Maverick Martins

Published
Mar 31, 2022

Gold jewellery retailers are likely to witness a 12 to 15 percent increase in their revenue for the financial year 2022-23, on steady demand and sustained high prices of gold, according to rating agency Crisil.
 

During 2021-22, revenue of gold jewellery retailers is expected to rise 20-22 percent on the back of pandemic-impacted last fiscal year.
 
Commenting on the report, Anuj Sethi, Crisil Ratings senior director in a statement said, “Revenue growth would have been even higher next fiscal but for the Russia-Ukraine conflict, which have cranked up gold prices to Rs 55,000 per 10 gram. While prices have corrected a touch, continuing volatility will constrain volume growth in the first quarter of next fiscal year, ahead of the wedding and festive seasons, due to partial deferral of purchases.

“While operating profitability is expected to moderate to 6.5-7 per cent this fiscal due to limited inventory gains, and more expenditure on rentals, employees and advertisement, higher operating leverage will help restore margins to the pre-pandemic levels of 7.3-7.5 percent next fiscal year,” he added.
 
Crisil claims to have done an analysis of 82 jewellery retailers, which accounts for 40 percent of the sector’s revenue for the report.