Organised gold jewellery retailers set to clock 17-19% revenue growth in FY25: Crisil
Benefiting from strong sales, Crisil has said that organised gold jewellery retailers are set to clock 17-19 per cent revenue growth in the current financial year 2024-25 (FY25). It asserted that the projected revenue would be driven by higher realisations stemming from elevated gold prices, while volume remains steady.
Gold, considered a safe haven asset for investment, has been in demand for considerable period of time, with its prices rallying to hit record highs every now and then. Geopolitical conflict in the West Asia that stretched for long now, buying by several central banks including RBI, physical demand, have altogether pushed gold prices towards northwards.
It stated retailers are likely to step up marketing and promotional campaigns this fiscal to combat the moderation in demand amid rising gold prices. Hence, operating profitability may marginally moderate 20-40 basis points (100 basis points is equal to 1 percentage point) year-on-year to 7.7-7.9 per cent. Besides, it said Working capital requirements may rise, too, resulting from increased inventory due to a substantial rise in gold prices and new stores additions. That said, credit profiles should remain stable.
