D john moneycontrol

Sustained high gold prices are likely to hike revenues of organised gold jewellery retailers by 16-18 percent this fiscal, a report said on Thursday. However, volume growth will remain modest due to elevated prices this fiscal. This comes after a stellar compound annual growth rate (CAGR) of 35 per cent logged during FY22 and FY23, mainly due to strong volume growth, driven by pent-up demand and increased consumer spending. Average realisations during the previous two fiscals increased at a CAGR of 5 per cent, Crisil Ratings said in a report. "We expect a low single-digit volume growth for the organised players during FY24, given elevated gold prices. That said, organised players will continue to see modest market share gain, compared with unorganised players. While revenue will grow by 16-18 per cent on sustained high gold prices," Crisil Ratings Senior Director Anuj Sethi said. The organised sector accounts for slightly more than a third of the market, with the unorganised sector making up the rest. The report said the operating margin is expected to moderate by up to 30 basis points to 7.8-8 per cent, led by increasing promotional and store-related expenses. Still, the margin will remain above the pre-pandemic level of 6.8-7 per cent, it added. Working capital debt requirement will continue to rise as jewellers keep expanding stores, though at a slower pace than in the past two fiscals. Credit profile for the players will remain stable, Crisil Ratings said. Domestic pri...