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Jewellery retailer PN Gadgil eyes 40% revenue growth for the year
Saurabh Gadgil, MD of PN Gadgil Jewellers, reported that the company's studded jewellery ratio has remained steady at 10-11% compared to last year. The goal is to increase this share to 15% within the next 2-3 years
Newly-listed jewellery retail chain PN Gadgil Jewellers is targeting 40% revenue growth in 2024-25.
Managing Director Saurabh Gadgil expects profit margins to improve to 3-4% by year-end due to increased hedging activities.
The October-December quarter started off on a strong note for the Maharashtra-based company aided by the recent store launches.
“We added nine stores post-IPO. They became operational just before the festive season, and have been a big boost to us. Diwali, Dussehra, the entire season has seen strong value growth, upward of 25% value, and the trend continues currently,” Gadgil noted.
Demand for gold jewellery is seen picking up with an estimated 40 lakh weddings over the next three months, per a report by the Confederation of All India Traders (CAIT).
In July-September 2024 (Q2FY25), PN Gadgil reported a revenue of ₹2,001 crore with operating margin at 2.7% and a profit after tax (PAT) of about ₹35 crore.
However, there was an ₹18 crore loss due to inventory valuation after the customs duty reduction.
"The PAT, which is around ₹36 crore post this ₹18 crore hit, should have been ₹50 crore if we hadn’t faced the duty cut,” Gadgil said.
The jeweller has also seen growth in studded and diamond jewellery, which now accounts for 10-11% of their total sales.
Gadgil remains optimistic about this segment's potential, aiming to increase its share to 15% over the next two to three years.
The company, which debuted on September 17 this year at ₹830 per share on the NSE, is currently trading at around ₹707. The market capitalisation is at ₹9,614 crore.
Managing Director Saurabh Gadgil expects profit margins to improve to 3-4% by year-end due to increased hedging activities.
The October-December quarter started off on a strong note for the Maharashtra-based company aided by the recent store launches.
“We added nine stores post-IPO. They became operational just before the festive season, and have been a big boost to us. Diwali, Dussehra, the entire season has seen strong value growth, upward of 25% value, and the trend continues currently,” Gadgil noted.
Demand for gold jewellery is seen picking up with an estimated 40 lakh weddings over the next three months, per a report by the Confederation of All India Traders (CAIT).
In July-September 2024 (Q2FY25), PN Gadgil reported a revenue of ₹2,001 crore with operating margin at 2.7% and a profit after tax (PAT) of about ₹35 crore.
However, there was an ₹18 crore loss due to inventory valuation after the customs duty reduction.
"The PAT, which is around ₹36 crore post this ₹18 crore hit, should have been ₹50 crore if we hadn’t faced the duty cut,” Gadgil said.
The jeweller has also seen growth in studded and diamond jewellery, which now accounts for 10-11% of their total sales.
Gadgil remains optimistic about this segment's potential, aiming to increase its share to 15% over the next two to three years.
The company, which debuted on September 17 this year at ₹830 per share on the NSE, is currently trading at around ₹707. The market capitalisation is at ₹9,614 crore.
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