Gold jewelery demand in the country may decline in Q2-Q3: Ikra
Higher import duty, negative return against price increase
Demand for gold jewelery in India will decline during the second and third quarters of the current fiscal due to increase in import duties, price volatility and inflationary pressures. During the second quarter of the year, the demand will fall by 8% year-on-year while during the third quarter the demand may fall by up to 15% due to a higher base, said Iqra’s report.
The performance improved due to the pick-up in economic activity post-Covid and increased demand especially during the wedding and festive seasons. The industry is expected to register a growth of 10% in the current fiscal due to strong performance in the first quarter and good demand during the festive season.
The revenue of the jewelery retail industry is likely to grow at a rate of 14 per cent YoY in FY23 due to store expansion. In addition, higher spending on travel and an overall decline in jewelery purchases due to fewer restrictions could hit demand.
Estimated 14% growth in retailers’ revenue
Retailers’ revenue is projected to grow by 14 percent year-on-year during FY 2023 due to expansion in stores and shift from the unorganized to the organized sector. Margins for organized sector retailers will also be higher and are likely to remain stable between 7-7.5%. During the first quarter of FY’23, the jewelery retail sector witnessed a growth of approximately 88% due to the Akshay Tritya season and increased trend in wedding purchases.
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