Will the price raise affect the volumes ?
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Looks like just a marketing gimmick. None of that looked real.
AB Novel Jewels has kept ambitious plans to be in number 3 in Indian Jewelry market and will have expansion plans to add up to 300 stores in next 3 years. As AB Novel Jewels is existing custome, it is going to benefit Skygold.
Disc: Invested
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Recurring export order of 200 KG per month from one of the most
reputable name in the jewellery industry. Q3 fy 25 volume was 447 kg per month.
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Anyone knows what Skygold does for gold exposure. Gold has had a good run and if they are not hedged the revaluation gains on inventory alone could be quite substantial
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Yes, they hedge every sale and purchase on a daily basis on the MCX. Therefore, whenever GML is introduced, their hedging exposure will decrease, but they hedge after the sales are made.
Based on my understanding of their hedging policy, they will neither benefit when the gold rate increases nor incur losses when it decreases.
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But the one consequences of Gold Prices falling would reflect into their sales growth slowing down a bit as Sales = Volume x Realisation as the prices of gold had a really good run-up in the past the Top-Line growth we saw was also a consequence of the same. But if prices fall from here, that topline growth might slow, although the growth in volume might still continue. The growth in realisation might turn negative if prices fall.
Although this shouldnβt affect the margins hence the PAT growth as they donβt make money by selling gold (essentially their buying and selling price per unit gold are same) they make money on the making charges essentially.
Also one more impact of gold prices falling could be accelerated growth in volumes as cheaper gold might attract more buyers(but need to keep an eye out for macroeconomic factors as well).
Disclosure: Invested, views might be biased!
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Board meeting for fund raise