Organized jewellery players like Tribhovandas Bhimji Zaveri (TBZ) and PC Jewellers have received a boost from the government's digitisation drive and demonetisation. Moves like no cash transactions above Rs 3 lakh has also helped them.
Giving an outlook on the business going forward both Sanjeev Bhatia, CFO, PC Jeweller and Saurav Banerjee, Chief Financial Officer, TBZ are upbeat on back of uptick seen in sales for the fourth quarter.
Banerjee says November month and the third quarter saw a bit of blip due to demonetisation but since January up until now the footfalls have only increased. With the upcoming festivals like Gudi Padva, Akshay Tritiya the footfalls will increase further. Moreover, the extended wedding season too has helped the company clock better sales in the quarter.
So, one can say that the sales in Q4 could compensate for the Q3 impact. The latent demand is strong, says Banerjee.
Bhatia too agreed that the footfalls in Q4 have gone up. Although the base in Q4FY17 is low when compared to the same quarter last fiscal, in absolute terms too there has been an uptick in sales this quarter.Bhatia said every organised jewellery company will report good growth in the current quarter.