Be held yellow jewelry retailers will continue to report strongly revenue growth this financial year, driven by pent-up demand and recovery in discretionary spending, with higher performance, according to Crisis Rating.
The ratings firm is predicting jewelers to post 23-25% revenue growth in fiscal year 2023, on top of 36% growth in the pre-comparison financial year supported by the low base of fiscal year 2021 due to the raging pandemic.
However, revenue expansion will moderate at 8-12% next fiscal year, with a higher basis for this fiscal year and expectations of slower disposable income growth amid an economic downturn. sure.
Against this backdrop, operating margins will decline by 0.4-0.7 percentage points year-on-year as store-related and marketing costs increase and stabilize at pre-pandemic levels. is 6.7-7.0% in this fiscal year and the following year.
According to Kaushik Das, vice president and co-head of the group at ICRA, “Although the jewelry sector recorded good sales during Dussehra and Diwali seasons, factors such as high domestic inflation, cautious sentiment Consumer spending on discretionary spending and a weak rural economic recovery due to erratic monsoons are likely to continue to limit demand growth in the near term. However, the medium to long-term demand outlook for this sector remains favorable.”
crisis The ratings’ projections are based on research on 76 gold jewelry retailers, accounting for 33% of the organized sector’s total annual sales of ₹3.5 lakh. The credit outlook for these players is considered stable. For the record, the organized sector accounts for almost a third of the market.
