Organised jewellery sector to grow up to 18% is fiscal: Crisil

By

Isabelle Crossley

Published
Jan 9, 2023

India’s organised gold jewellery industry is expected to surpass pre-pandemic levels in terms of sales this financial year. According to ratings agency Crisil Ratings, the sector could grow by 16% to 18% year-on-year this fiscal. 

“We expect organised jewellery retail sales volume to increase 16-18% on-year to 670-700 tonne this fiscal, crossing the pre-pandemic level of ~600 tonne, supported largely by wedding and festival demand, which accounts for 80-85% of gold jewellery sales,” said Crisil Ratings’ director Aditya Jhaver, the Gem and Jewellery Export Promotion Council reported on its website. “Realisation will also support the revenue growth with an expected on-year increase of 5-7%.”
 
The 2022 financial year saw high growth levels of 36% on a low base for India’s gold jewellery industry as the 2021 financial year was significantly impacted by the pandemic. Although growth is moderating this financial year, it remains high despite rising cost of living prices for consumers. 

“Strong revenue growth and better operating leverage will help buttress the impact of higher interest outgo because of the increased debt,” said Crisil Ratings’ director Himank Sharma, the GJEPC reported. “Total outside liabilities to tangible net-worth ratio and interest coverage will improve to one time and 9.80 times, respectively, this fiscal from the pre-pandemic 1.4 times and 6.3 times, respectively. The ratios are expected to remain comfortable in fiscal 2024 as well.”