PN Gadgil Jewellers, a newly-listed jewellery retail chain, is setting ambitious targets for the upcoming fiscal year, aiming for a 40% increase in revenue for 2024-25. The Maharashtra-based company has seen strong performance following recent store openings and expects improved profit margins, driven by increased hedging activities.
Saurabh Gadgil, the company’s Managing Director, highlighted that the firm’s profit margins are projected to rise to 3-4% by the end of the year. This optimism comes on the back of nine new stores launched post-IPO, which began operations just before the festive season. According to Gadgil, the festive period—spanning Diwali and Dussehra—has contributed significantly to growth, with a reported 25% increase in value growth.
The demand for gold jewellery is also on the rise, fueled by an expected 40 lakh weddings over the next three months, as reported by the Confederation of All India Traders (CAIT). This surge in demand is expected to further benefit the company.
For the July-September quarter (Q2FY25), PN Gadgil reported a revenue of ₹2,001 crore, with an operating margin of 2.7% and a profit after tax (PAT) of ₹35 crore. However, the company faced an ₹18 crore loss due to inventory revaluation following a customs duty reduction. Gadgil noted that without this setback, the PAT would have reached approximately ₹50 crore.
The jeweller has also experienced growth in its studded and diamond jewellery segment, which now makes up 10-11% of total sales. Looking ahead, Gadgil plans to increase this share to 15% within the next two to three years.
PN Gadgil debuted on the National Stock Exchange (NSE) on September 17 at ₹830 per share but is currently trading at around ₹707. The company’s market capitalisation stands at ₹9,614 crore.
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