The newly-listed jewellery company PN Gadgil has seen December quarter sales start off on a strong note, growing 25% year-on-year during Dussehra and Diwali, Group CFO & executive director Kiran Firodiya said in a conversation with FE on Wednesday.
The company closed the September quarter of FY25 (Q2FY25) with revenue of Rs 2,001.31 crore, a growth of nearly 46% versus the previous year. Net profit grew 59.11% versus last year to nearly Rs 35 crore in Q2. Operating margins were in the region of 2.7% for the period, which the company is hoping to improve in the future.
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“While gold prices were volatile, consumer demand was firm in Q2. The festive period too has been good from a demand perspective,” Firodiya said.
The company is aiming for a 35-40% revenue growth for the full year of FY25, led by new store additions and robust demand thanks to an estimated 40 lakh weddings over the next few months, according to a report by the Confederation of All India Traders (CAIT).
The company added nine stores after its recent initial public offering in September, taking its store count to 48 outlets in Maharashtra. It is now looking to add another 4-6 stores in the next few months, taking its store count to over 50 by the end of March 2025, Firodiya said.
Expansion into markets beyond Maharashtra is expected to start in FY26 into adjoining states such as Madhya Pradesh, Firodiya said.
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The jeweller has also seen growth in studded and diamond jewellery, which now accounts for 10-11% of its total sales. Firodiya says that the company is looking to increase its share to around 15% over the next two to three years, as the focus on younger consumers grows.
Shares of PN Gadgil were down 2.26% at the close of trade on the BSE at Rs 691.15 apiece. This came amid an overall weak market, with the broader BSE Sensex down 1.25% to 77,690.95 points.
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