Organised Gold Jewellers’ Revenue To Surge 16-18% In Current Fiscal Year

Mumbai
Organised gold jewellery retailers are expected to witness a significant boost in revenue during the current fiscal year. Sustained high gold prices are anticipated to drive a revenue increase of 16-18% for these retailers, according to a CRISIL Ratings report.
This positive projection follows a period of remarkable compound annual growth rate (CAGR) of approximately 35% recorded in the previous fiscals of 2022 and 2023 primarily driven by strong volume growth fueled by pent-up demand and increased consumer spending. Furthermore, the average realisations during this period witnessed a CAGR of approximately 5%.
Despite the positive revenue outlook, there is an anticipation of a moderate decline in operating margin, estimated to be around 30 basis points, settling at 7.8-8.0%. This dip can be attributed to rising promotional and store-related expenses. Nonetheless, the margin will remain above the pre-pandemic level of 6.8-7.0%.
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