As per the credit ratings agency ICRA, the organised jewellery retailers in India are expected to continue outpacing the industry in FY24, which would be aided by planned store additions by a majority of large jewellery retailers and market share gains due to the accelerated formalisation of the industry.
According to an analysis of the agency with 12 major organised jewellers as its sample set, they are expected to record revenue growth of 12-15% year-on-year (YoY) in FY24.
On the other hand, as per the analysis, in terms of profitability, operating margin, debt protection metrics, and liquidity position of players in the sample are expected to remain stabilised.
Furthermore, ICRA is expecting the revenue growth to moderate to 8-10% YoY in terms of value in FY24.
The benefits of economies of scale and the likelihood of inventory gains for some jewellers in FY24 are likely to support the operating margins in the range of 7.5-8% in the coming years, higher than the average levels of 6.5% witnessed before the pandemic.
According to Mr. Kaushik Das, Vice President and Co-Group Head, ICRA, it has been estimated for the store count to increase by over 18-20% in FY24 YoY.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.