Confident of achieving 15% topline growth in FY17: PC Jeweller

With most global equity markets correcting post the Brexit event, investors have taken refuge in gold. Gold prices have surged above USD 1300 per ounce. Gold ETF holdings, too, are at the highest since October, 2013.

In India, the MCX Gold is trading above the Rs 30,000 per 10 gram market.

Talking about the impact of surge in gold prices in an interview to CNBC-TV18, Sanjeev Bhatia, CFO, PC Jeweller, said in India it only increases the charm of gold. For the jewellery companies, the working capital requirements start going up as the cost of raw material goes up. Moreover, as demand for gold jewellery goes up, it also impacts diamond jewellery sale, which is a high margin business. Therefore, margins in percentage terms may come under pressure although in absolute terms they may go up, said Bhatia.

However, he is confident of 15 percent revenue topline growth in FY17.