Despite soaring gold prices, Senco Gold, one of India's leading jewellery brands, delivered a stellar performance in October 2024, achieving record sales of over Rs.1,000 crore during the festive period. This remarkable feat underscores the resilience of India's gold market and Senco's robust strategies.  

Festive Season Drives Sales  
Suvankar Sen, Managing Director and CEO of Senco Gold, attributed the achievement to the festive season and strong consumer demand. “We witnessed 14-15% year-over-year growth in festive sales, supported by a 20% surge in same-store sales. Rural demand from Tier 2, 3, and 4 cities also played a pivotal role in driving this growth,” said Sen.  

The company's success is further reflected in its second-quarter performance, where revenue from operations saw a 31% rise year-over-year, driven by a 7% increase in gold volumes and significant value growth of 30% in gold jewellery and 9% in diamond jewellery.  

Challenges of High Gold Prices  
Gold prices hit record highs globally in 2024, fueled by geopolitical tensions, central bank purchases, and economic uncertainties. According to the World Gold Council, 39 new all-time highs were recorded in dollar terms by October this year.  

Sen acknowledged the challenges posed by high prices, noting that “gold’s all-time high during the festive season impacted some customers’ purchasing decisions.” Despite this, Senco's net profit for Q2 rose marginally by 1% to Rs.12.1 crore, demonstrating the brand's ability to adapt in a challenging market.  

Gold Price Drop Fuels Optimism  
Recent developments, including a 6% decline in gold prices on the Multi Commodity Exchange (MCX) since November 4, have sparked renewed consumer interest. In the midst of the ongoing wedding season—a time synonymous with gold purchases in India—many consumers are adopting a wait-and-watch approach, anticipating further price drops before making significant purchases.  

Outlook  
Senco Gold's exceptional October sales highlight its ability to navigate market challenges and leverage festive demand. As gold prices soften, the company is well-positioned to capitalise on wedding season demand, reinforcing its leadership in India's jewellery market.