Revenue of organized gold jewelery retailers, which had spurted 36 per cent last fiscal on a low base of the pandemic-induced financial year, is expected to grow up to 23-25 per cent in 2023 largely due to pent-up demand and recovery in discretionary consumer spending, said rating agency CRISIL. In the financial year 2023-24, their growth is expected to moderate to 8-12 per cent.
CRISIL Ratings conducted a study of 76 gold jewelery retailers, which account for 33 per cent of the Rs 3.5 lakh crore annual revenue of the organized sector and the credit outlook for retailers is seen to be “stable”. In the retail gold business, the organized sector accounts for almost a third of the market size. “We expect organized jewelery retail sales volume to increase 16-18 per cent on-year to 670-700 tonnes this fiscal, crossing the pre-pandemic level of 600 tonnes, supported largely by wedding and festival demand, which accounts for 80-85 per cent of gold jewelery sales. Realization will also support the revenue growth with an expected on-year increase of 5-7 per cent,” said Aditya Jhaver, Director of CRISIL Ratings.
With sales rising, store expansion, which had moderated between fiscal 2021 and part of fiscal 2022, is also expected to gather pace. An increase in penetration of Goods and Services Tax (GST) and mandatory hallmarking will further aid volume growth and assist in resulting in market share gains. (ANI)
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