This year, Dhanteras will bring 25 percent rise in gold sales for PC Jeweller compared to last year, says RK Sharma, ED and COO of the company. October imports of gold are at a nine-month high.
Gold is seeing a price drop this festive season which has led to a massive boost in demand. Along with good monsoons, it has led to a spur in rural buying, too.
Gold has been doing well in the commodity market owing to a weaker rupee against the US dollar, says Sharma. Another key reason is the expectation that US Federal Reserve is going to take its time raising rates.
Below is the verbatim transcript of RK Sharma’s interview to Reema Tendulkar & Nigel D’Souza on CNBC-TV18.
Nigel: You are one of the potential beneficiaries of this kind of event? How is demand on the ground? Is it looking good better than last year? Give us some sense of the demand scenario?
A: This year demand is more in comparison to last year. If we see the gold rate, gold rate shows Rs 4,000 per 10 gram increase in comparison to last year which clearly shows that people who invested last year they got return. In international market also after, if Fed rate is changed then there may be some decline in gold rate but India because rupee will weak, the rupee-dollar parity will maintain the rate. So, there is no chance of gold being cheaper, this year also people who will purchase that will be a very good chance for appreciation.
Secondly, monsoon is good. 7th pay commission salary have been received by all government employees. The arrears have been given to them, so this is very positive feeling in gold market and jewellery purchase especially we are seeing an upbeat in this area.
Reema: Could you help us with some volume growth numbers, this year what will be the volumes that you are likely or the total revenues that you are likely to clock in this festive season. How would it compare with last year? We just wanted to assess how much better this year compared to the growth that you saw last year, if you can help us with some numbers?
A: I am not having numbers presently with me, but last 10 days we are watching our sales trend and even in last one month, if you see last one month sales that is around 22-25 percent more than last year sale. We believe that this Dhanteras also we will be doing more sales around 25 percent at least.