Shares of Senco Gold shares as much as 10.5% on Thursday, October 8, after the company reported a healthy business update for the second quarter. This is the biggest single-day gain for the stock since April this year.
In its exchange filing on Wednesday evening, Senco disclosed that its September quarter revenue grew by 31% during the same quarter last year, while revenue in its retail division saw growth of 29%.
Same Store Sales Growth (SSSG) for Senco grew by 19% from last year during the September quarter, while diamond jewellery sales value grew by 40% from last year. In volume terms, the growth stood at 7%.
Senco Gold also reported an increase of 50% in customers exchanging their old gold in the second quarter.
The company opened six new showrooms in the quarter under review. Its network has now expanded to a total of 215 stores.
Senco Gold highlighted that expects to witness strong seasonal demand in the third quarter, supported by underlying affinity for gold fueled by wedding demand, which is mostly price inelastic and providing a structural demand backdrop from wedding-led jewellery consumption; and a favourable festive calendar.
The company said the underlying jewellery consumption opportunity remains strong. While elevated gold prices create affordability and working-capital challenges, Senco Gold said they also provide an oportunity for organized players with strong brands, sourcing capabilities, exchange programs and disciplined inventory management to gain market share.
It added that the focus remains on driving lightweight and 9K collections, improving inventory turns and reducing inventory days, replenishment discipline and faster conversion of non-moving inventory.
Shares of Senco Gold are trading 10.3% higher on Thursday at ₹353.7. With this, the stock has also turned positive on a year-to-date basis, up 11% for the year so far.
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