Business Desk – Senco Gold Share Price: Jewelery company Senco Gold presented excellent results for the March quarter. However, despite this, investors sold the stock. On Wednesday, the company’s shares fell by more than 3% on NSE. The day’s low reached Rs 338.
Interestingly, the company’s net profit increased by 151% year-on-year to Rs 157 crore, compared to Rs 62.4 crore in the same quarter last year. Despite such strong results, the fall in the stock price has attracted the attention of the market.
The company’s revenue from operations also increased by 45% to Rs 1,996.7 crore in the March quarter, which was Rs 1,377.7 crore in the same period last year. Meanwhile, EBITDA margin increased from 9.2% to 13.7%. According to the company, rising prices of gold, silver and platinum strengthened margins.
Sales boost from wedding and gifting season
Senco Gold recorded its highest ever retail sales in the fourth quarter. The company’s fourth quarter retail sales stood at Rs 1,731 crore, showing a growth of 35% year-on-year. The company said that the sales were driven by the wedding season which lasted for the entire quarter. Strong demand for gifting during Valentine’s Day and its “Old Gold Exchange Program” helped a lot. It is noteworthy that the Old Gold Exchange Program contributed about 50% of the fourth quarter’s revenue, which enabled customers to purchase new jewelry products despite high gold prices.
Impact of record gold prices
Although the company’s earnings remained strong, record high gold prices impacted sales volumes. The average price of gold increased by 79% year-on-year and 20% quarter-on-quarter to Rs 1,69,403 per 10 grams. As a result, gold sales volumes declined by about 6% in FY26. In contrast, silver sales saw a huge jump. Silver sales volume increased by approximately 35%. Meanwhile, the sales volume of diamond jewelery also recorded an increase of about 9%.
Increasing demand for light and low carat jewelery
The company’s Managing Director and CEO, Subhankar Sen said that despite the huge rise in gold prices, customer demand remained strong. He said that customers are now gradually turning towards lighter and lower carat jewellery. He also told that the company has expanded into new markets like Rajasthan, Central Maharashtra and Western Uttar Pradesh. Additionally, the company considers Bengal and Eastern India as key hubs for future growth.
rapid expansion of the network
Senco Gold’s showroom network has also expanded rapidly. The company now has a total of 201 outlets, which include its own stores, franchise outlets and stores located in Dubai. During this financial year, the company opened 26 new showrooms, out of which 7 new outlets were launched in the fourth quarter alone.
Although today there was a decline in the stock, but in the last one month the shares of Senco Gold have increased by about 8%. In the last six months, the stock has registered a gain of about 12%.
