Our discussions with key jewellery retailers indicate that recent fall in gold prices
led to sharp uptick in volume growth for gold jewellery during the months of April
and May 2013. This was also supported by ongoing wedding season and some
auspicious days during these months. Demand trends have moderated a bit post
the initial rush but still remain fairly healthy. Gold rush, however, led to lower
proportion of diamond jewellery sales and this could weigh on % margins in
Q1FY14; though absolute profit growth is likely to be higher. Recent RBI
notification restricting gold imports by consignment route though unfavorable
may not impact the organized players much
led to sharp uptick in volume growth for gold jewellery during the months of April
and May 2013. This was also supported by ongoing wedding season and some
auspicious days during these months. Demand trends have moderated a bit post
the initial rush but still remain fairly healthy. Gold rush, however, led to lower
proportion of diamond jewellery sales and this could weigh on % margins in
Q1FY14; though absolute profit growth is likely to be higher. Recent RBI
notification restricting gold imports by consignment route though unfavorable
may not impact the organized players much