Senco Gold (SENCO) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw a 27% YoY revenue growth, with gold value up 30% and diamond value up 9%.

• H1 FY25 revenue grew 18.5% YoY to INR 2,904 crore, with EBITDA up 50% and PAT up 60% despite a one-time customs duty impact.

• October sales reached a record INR 1,000 crore, driven by festive and wedding demand.

• Management maintains a conservative 18% annual growth outlook, aiming to outperform guidance.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024 were reviewed and approved by the Board and Audit Committee on 13 November 2024.

Financial highlights

• Q2 standalone revenue was INR 1,515 crore (30% YoY), PAT increased to INR 14.2 crore (33% YoY).

• H1 EBITDA grew from INR 106.7 crore to INR 160.7 crore; PAT from INR 39.6 crore to INR 63.4 crore.

• Standalone revenue for Q2 FY25 was ₹14,586.82 million, up from ₹11,444.04 million in Q2 FY24; consolidated revenue was ₹15,004.87 million, up from ₹11,465.57 million YoY.

• Standalone PAT for Q2 FY25 was ₹168.32 million, compared to ₹120.15 million in Q2 FY24; consolidated PAT was ₹121.22 million, up from ₹119.48 million YoY.

• Gross margin for H1 stood at 14.7% (net of customs duty), effectively 15.7% adjusted.

Outlook and guidance

• FY25 revenue growth guidance is 18% YoY, with bottom-line growth targeted at 15-18%.

• Gross margin expected to normalize at 15-16% for the full year.

• Store addition target remains 18-20 for the year, with a focus on East India.

• Wedding season and recent gold price declines expected to boost demand in coming quarters.

• Management and auditors confirm compliance with Indian Accounting Standards and SEBI regulations.