NEW DELHI: Jewelers are shedding their expansion plans this year as sales in the second largest market are set to grow even more after nearly doubling in 2021.
Sales in the country have started improving as the fear of the pandemic subsides. According to the World Gold Council, India’s gold imports hit a decade-high level in 2021 as jewelry purchases rose. It’s a turnaround for jewellers, who had put on hold expansion plans and focused on easing debt after nearly two years denting demand as the coronavirus postponed several weddings – a major source of demand. .
According to Fitch Group’s local arm India Ratings and Research Pvt, the demand is set to grow by 10% in the year starting April. This is encouraging jewelers and the next financial year will see a “revival in capital expenditure, while improving credit metrics in the medium term,” it said in a report on Thursday.
Kalyan Jewelers India Ltd last month said it plans to expand its network by adding 10 to 15 new stores, while Kerala-based jeweler Joyluckas India Ltd last weekend announced plans for an initial share sale as it plans to add stores. demands money for. Meanwhile, improving demand has benefited India’s largest gold retailer Titan Company by market value, which has risen nearly 63% in the past one year.
Jewelery retailers’ revenue is expected to grow by up to 15% in the next financial year, owing to higher gold prices and stagnant demand, and building on the projected growth of around 22% this year, said Crisil Ltd., the Indian arm of S&P. Global Inc said in a note on Wednesday.
“This would keep the credit outlook for organized jewelers ‘stable’ in the next financial year, notwithstanding higher capital expenditure and inventory,” it said. “Revenue growth in the next fiscal year would have been even higher, but thanks to the Russia-Ukraine conflict, which has cranked up gold prices” and continued volatility will limit volume growth in the April-June period, it said.
Sales in the country have started improving as the fear of the pandemic subsides. According to the World Gold Council, India’s gold imports hit a decade-high level in 2021 as jewelry purchases rose. It’s a turnaround for jewellers, who had put on hold expansion plans and focused on easing debt after nearly two years denting demand as the coronavirus postponed several weddings – a major source of demand. .
According to Fitch Group’s local arm India Ratings and Research Pvt, the demand is set to grow by 10% in the year starting April. This is encouraging jewelers and the next financial year will see a “revival in capital expenditure, while improving credit metrics in the medium term,” it said in a report on Thursday.
Kalyan Jewelers India Ltd last month said it plans to expand its network by adding 10 to 15 new stores, while Kerala-based jeweler Joyluckas India Ltd last weekend announced plans for an initial share sale as it plans to add stores. demands money for. Meanwhile, improving demand has benefited India’s largest gold retailer Titan Company by market value, which has risen nearly 63% in the past one year.
Jewelery retailers’ revenue is expected to grow by up to 15% in the next financial year, owing to higher gold prices and stagnant demand, and building on the projected growth of around 22% this year, said Crisil Ltd., the Indian arm of S&P. Global Inc said in a note on Wednesday.
“This would keep the credit outlook for organized jewelers ‘stable’ in the next financial year, notwithstanding higher capital expenditure and inventory,” it said. “Revenue growth in the next fiscal year would have been even higher, but thanks to the Russia-Ukraine conflict, which has cranked up gold prices” and continued volatility will limit volume growth in the April-June period, it said.