On consolidated basis
Quarter ended December 2024 compared with Quarter ended December 2023.
Net sales (including other operating income) of Senco Gold has increased 27.26% to Rs 2102.55 crore. Operating profit margin has declined from 10.96% to 3.80%, leading to 55.86% decline in operating profit to Rs 79.95 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 67.88% to 69.52%. Purchase of finished goods cost rose from 16.08% to 20.37%. Employee cost increased from 1.69% to 1.74%. Other expenses fell from 4.93% to 4.51%. Other income rose 42.42% to Rs 12.69 crore. PBIDT fell 51.25% to Rs 92.64 crore. Provision for interest rose 20.02% to Rs 33.93 crore. PBDT fell 63.70% to Rs 58.71 crore. Provision for depreciation fell 17.41% to Rs 13.09 crore. Profit before tax down 68.73% to Rs 45.62 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 12.14 crore, compared to Rs 36.58 crore. Effective tax rate was 26.61% compared to 25.07%. Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 69.37% to Rs 33.48 crore. Promoters’ stake was 64.11% as of 31 December 2024 ,compared to 68.46% as of 31 December 2023 .
For year-to-date (YTD) results analysis.
Net sales (including other operating income) of Senco Gold has increased 22% to Rs 5006.92 crore. Operating profit margin has declined from 7.01% to 4.81%, leading to 16.39% decline in operating profit to Rs 240.62 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 69.12% to 67.78%. Purchase of finished goods cost rose from 17.67% to 20.84%. Employee cost increased from 1.81% to 1.85%. Other expenses rose from 5.14% to 5.23%. Other income rose 35.68% to Rs 39.89 crore. PBIDT fell 11.56% to Rs 280.51 crore. Provision for interest rose 26.08% to Rs 98.72 crore. PBDT fell 23.90% to Rs 181.79 crore. Provision for depreciation rose 17.45% to Rs 49 crore. Profit before tax down 32.65% to Rs 132.79 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 35.91 crore, compared to Rs 48.33 crore. Effective tax rate was 27.04% compared to 24.51%.Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 34.91% to Rs 96.88 crore. Promoters’ stake was 64.11% as of 31 December 2024 ,compared to 68.46% as of 31 December 2023 .
Full year results analysis.
Net sales (including other operating income) of Senco Gold has increased 28.55% to Rs 5241.44 crore. Operating profit margin has declined from 7.77% to 7.16%, leading to 18.60% rise in operating profit to Rs 375.50 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 66.44% to 68.29%. Purchase of finished goods cost fell from 18.91% to 17.67%. Employee cost decreased from 2.09% to 1.95%. Other expenses rose from 5.49% to 5.51%. Other income rose 35.65% to Rs 42.24 crore. PBIDT rose 20.13% to Rs 417.74 crore. Provision for interest rose 25.62% to Rs 108.1 crore. Loan funds rose to Rs 1,761.15 crore as of 31 March 2024 from Rs 1,386.93 crore as of 31 March 2023. Inventories rose to Rs 2,457.02 crore as of 31 March 2024 from Rs 1,885.46 crore as of 31 March 2023. Sundry debtors were higher at Rs 52.87 crore as of 31 March 2024 compared to Rs 45.42 crore as of 31 March 2023. Cash and bank balance rose to Rs 551.36 crore as of 31 March 2024 from Rs 437.57 crore as of 31 March 2023. Investments rose to Rs 0.15 crore as of 31 March 2024 from Rs 0.13 crore as of 31 March 2023 . PBDT rose 18.32% to Rs 309.64 crore. Provision for depreciation rose 31.96% to Rs 60.11 crore. Fixed assets increased to Rs 360.73 crore as of 31 March 2024 from Rs 290.44 crore as of 31 March 2023. Intangible assets increased from Rs 2.30 crore to Rs 2.75 crore. Profit before tax grew 15.44% to Rs 249.53 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 68.53 crore, compared to Rs 57.67 crore. Effective tax rate was 27.46% compared to 26.68%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 14.21% to Rs 181.00 crore. Equity capital increased from Rs 55.85 crore as of 31 March 2023 to Rs 77.70 crore as of 31 March 2024. Per share face Value remained same at Rs 10.00. Promoters’ stake was 68.45% as of 31 March 2024 ,compared to 95.23% as of 31 March 2023 . Cash flow from operating activities decreased to negative Rs -293.83 crore for year ended March 2024 from negative Rs -78.20 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 38.23 crore, compared to Rs 31.11 crore during the year ended March 2023. Other highlights
During the quarter ended December
2024, the company conducted a Qualified Institutional Placement (QIP) of
4,080,000 equity shares with a face value of Rs 10 each. This resulted in an
increase in equity share capital from Rs 77.688 crore in Q2 FY25 to Rs 81.802
crore in Q3 FY25.
Management Comments :
Mr. Suvankar Sen, Managing Director &
CEO, Senco Gold , said, “During the quarter, we received an overwhelming
response to our Qualified Institutional Placement (QIP) and successfully raised
? 459 Cr, in testament of faith and trust of investor community. These funds
have been utilized to repay short-term debt, support our expansion plans and
arrange inventory for existing and new showrooms. Additionally, we also
announced a 1:2 stock split on January 31, 2025, further enhancing shareholder
value. High volatility was observed in gold prices during Q3, recording a 22%
YoY increase and 20% increase since April 2024. However, consumer demand for
gold remained robust throughout Q3. The reduction in customs duties during Q2
rather acted as tailwind for Q3 sales, especially during Dhanteras and Diwali.
This quarter marked a milestone for us, as we achieved the highest-ever Q3
revenue of Rs 2,000 Cr and a single-month revenue of Rs 1,000 Cr during the
Dhanteras month, reflecting a robust 22% YoY growth. In terms of jewellery wise
performance on Value terms - we achieved 21% growth in Gold jewellery, 9% in
diamond jewellery, 35% in silver jewellery, while our Gossip jewellery 18%
growth. In terms of expansion, our showroom portfolio has grown to 171,
including 70 franchisee showrooms. Over the past nine months, we have launched
12 new showrooms, 7 of which are company-owned. Looking ahead, we remain on
track to open 8-10 new showrooms in Q4 FY25, including 5-7 franchise outlets,
in line with our earlier outlook. The short-term impact of lab-grown diamonds
has temporarily affected the stud ratio; however, we remain confident that the
diamond jewellery segment in which we primarily operate will rebound to lead us
to 15% stud ratio. We are pleased to announce the incorporation of our wholly
owned subsidiary, Sennes Fashion Limited, which will cater the consumer
lifestyle segment. This strategic initiative will cover premium leather
accessories, lab-grown diamond jewellery, and perfumes, allowing us to expand
our customer reach and remain at the forefront of evolving market trends. To
strengthen our brand presence, we launched new campaigns such as "Glow
Karo, Grow Karo" for Everlite and "Khushiyon ki Reet" for our
wedding collection, which have been well-received by customers. Our ongoing
efforts to deepen market presence, introduce innovative products, and invest in
customer-centric initiatives position us strongly for future growth.”
Mr. Sanjay Banka (CFO), Senco Gold
commented, “We remain confident that given the long-term prospect of the Indian
gems and jewellery which is presently US$ 85- 90 bn, we will achieve 7%-8%
EBITDA margin on an annualized basis excluding any one-off event. The lower
EBITDA and PAT margin in the current quarter emanated due to custom duty impact
while the adjusted 9 months EBITDA margin was 6.0%. We are likely to achieve
7%-8% EBITDA margin in Q4 and going forward based on our brand positioning and
operating leverage and will try to further improve the sale by innovative
offerings and premium pricing by being 2nd most trusted brand in jewellery
domain. On the profitability front, EBITDA for the quarter stood at Rs 79.9 Cr,
while YTD EBITDA was Rs 240.6 Cr. However, considering the adverse impact of
customs duty in Q2 and Q3, amounting to Rs 29.8 Cr and Rs 27.6 Cr respectively,
the adjusted EBITDA for the 9-month period stands at Rs 298.0 Cr with an
adjusted EBITDA margin of 6.0%. Similarly, PAT for the quarter was lower at Rs
33.5 Cr, while the adjusted PAT for the quarter stood at Rs 53.8 Cr, YTD PAT
for the 9-month period was Rs 96.9 Cr, with an adjusted PAT of Rs 138.8 Cr.”
He emphasized that “We look at Gross Margin
and EBITDA on YTD basis and have always maintained that due to gold price
volatility on Quarter-to-Quarter basis coupled with hedging practices/ levels
and IND AS 109 Accounting, it leads to uneven EBITDA % during quarterly
reporting vis-a vis previous quarter or last year same quarter. The actual
margins qualitatively remain range bound in 50- 100 basis points i.e. 7%-8% The
margin may also vary as aforesaid due to factors like- Product Mix,
Geographical Sales Mix, Studd Ratio, Channel Sales Mix etc. Please refer to
table for quarterly EBITDA trend over last 3 years whereby it is evident that
incidentally the EBITDA margins in Q1 and Q2 of previous years were lower,
while they were higher at 11%+ level in Q3. While this has been the past trend
of last 2 years, however during the current year due to consistent gold price
rise, Q1 and Q2 adjusted EBITDA margin was higher vis-à-vis earlier years, were
higher while Q3 adjusted EBITDA margin was lower. But overall, the YTD GM level
was 5%. On adjusting the custom duty impact the Q2 and Q3 Adjusted EBITDA
margins has slightly improved by 120 basis points. Thus, effectively the
adjusted EBITDA is lower against last 2 years YTD EBITDA of 7% range by only 90
basis points which translates to about Rs.44 cr, a part of which can be
ascribed to lower stud ratio, higher export sales and opex increase. We have
maintained above 80% hedge ratio during Q1 and Q2 as reported earlier and hence
in the price rise scenario, hedging will result in adverse P&L impact. We
stringently follow hedge accounting as per IND AS 109 which is lying with the
global IFRS Standards and duly audited by our statutory auditors; thus, the
financial results as above reflect the true and fair view of the Gross Margin
considering impact of derivative instruments like unfixed GML and MCX future
instruments with MTM impact as well. As regards cash flow impact, custom duty
reduction has surely impacted our OCF by Rs. 57 cr but we are fully supportive
of the noble intent of Hon’ble Finance Minister behind this decision. Further,
if we look at the below table for the previous 11 quarters it is evident that
on excluding the impact of hedge accounting the business model remains
resilient and we have consistently 13%making charge revenue while the balance
is contributed by diamond and gold price volatility net off our robust hedging
practices. (YTD Avg/AHR- 81%) We believe that with full impact of custom duty
reduction has already taken in 9-month results; and considering the present
vibrant demand, we will be able to deliver 14-15% Gross Margin and 7%-8% EBITDA
margin.”
| Senco Gold : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202412 | 202312 | Var.(%) | 202412 | 202312 | Var.(%) | 202403 | 202303 | Var.(%) |
|---|
| Net Sales (including other operating income) | 2,102.55 | 1,652.20 | 27.26 | 5,006.92 | 4,104.16 | 22.00 | 5,241.44 | 4,077.40 | 28.55 | | OPM (%) | 3.80 | 10.96 | -716 bps | 4.81 | 7.01 | -221 bps | 7.16 | 7.77 | -60 bps | | OP | 79.95 | 181.11 | -55.86 | 240.62 | 287.78 | -16.39 | 375.50 | 316.61 | 18.60 | | Other Inc. | 12.69 | 8.91 | 42.42 | 39.89 | 29.40 | 35.68 | 42.24 | 31.14 | 35.65 | | PBIDT | 92.64 | 190.02 | -51.25 | 280.51 | 317.18 | -11.56 | 417.74 | 347.75 | 20.13 | | Interest | 33.93 | 28.27 | 20.02 | 98.72 | 78.30 | 26.08 | 108.10 | 86.05 | 25.62 | | PBDT | 58.71 | 161.75 | -63.70 | 181.79 | 238.88 | -23.90 | 309.64 | 261.70 | 18.32 | | Depreciation | 13.09 | 15.85 | -17.41 | 49 | 41.72 | 17.45 | 60.11 | 45.55 | 31.96 | | PBT | 45.62 | 145.90 | -68.73 | 132.79 | 197.16 | -32.65 | 249.53 | 216.15 | 15.44 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 45.62 | 145.9 | -68.73 | 132.79 | 197.16 | -32.65 | 249.53 | 216.15 | 15.44 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 45.62 | 145.9 | -68.73 | 132.79 | 197.16 | -32.65 | 249.53 | 216.15 | 15.44 | | Taxation | 12.14 | 36.58 | -66.81 | 35.91 | 48.33 | -25.70 | 68.53 | 57.67 | 18.83 | | PAT | 33.48 | 109.32 | -69.37 | 96.88 | 148.83 | -34.91 | 181 | 158.48 | 14.21 | | Minority Interest (MI) | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit | 33.48 | 109.32 | -69.37 | 96.88 | 148.83 | -34.91 | 181 | 158.48 | 14.21 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 33.48 | 109.32 | -69.37 | 96.88 | 148.83 | -34.91 | 181 | 158.48 | 14.21 | | EPS (Rs)* | 2.05 | 6.68 | -69.37 | 5.92 | 9.10 | -34.91 | 11.06 | 9.69 | 14.21 | | | * EPS is on current equity of Rs 81.80 crore, Face value of Rs 5, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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