Does increase in gold price positively effects Tanishq sales and net profit?
I do understand that with increase in gold price, jewelry would become more expensive and subsequently high price will be passed on to its customers(upto some extent). But gold for Jewelry mfg is mostly imported in India, so sales will rise but cost of materials will also rise which will negate the difference and have marginally no impact on net profit.
Please correct me if I’m wrong.