Senco Gold (SENCO) Q3 24/25 earnings summary

Executive summary

• Consolidated revenue grew 27% YoY in Q3 FY25 to INR 21,025.5 million, marking the best-ever quarterly performance, with record single-month revenue of INR 1,000 crore during Dhanteras.

• Retail revenue grew 22% in Q3, with robust consumer demand for gold despite high prices; diamond and silver jewellery segments also grew.

• The company expanded to 171 showrooms, including 12 new showrooms in 9M FY25 and its first international store in Dubai.

• Raised INR 459 crore via QIP and announced a 1:2 stock split to enhance shareholder value and liquidity.

• Unaudited financial results for Q3 and 9M FY25 were reviewed and approved, with no material misstatements identified by auditors.

Financial highlights

• Q3 FY25 revenue from operations was INR 21,025.5 million, up 27.3% YoY; 9M FY25 revenue was INR 50,069.2 million, up 22% YoY.

• Q3 FY25 EBITDA was INR 799.6 million (3.8% margin); adjusted EBITDA (excluding custom duty impact) was INR 1,075.5 million (5.1% margin).

• Q3 FY25 PAT margin was 2.8%, impacted by duty cuts and lower stud ratio; 9M FY25 adjusted PAT was INR 1,388 million.

• Finance cost for 9M FY25 was INR 987.2 million; blended borrowing cost reduced to 5.6% p.a.; net debt/equity improved to 0.7x.

• Same-store sales growth was 13%-14% in 9M FY25.

Outlook and guidance

• Q4 is expected to be robust, with EBITDA margin guidance of 7%-7.5% and full-year revenue projected at INR 6,200-6,400 crore.

• On track to open 8-10 new showrooms in Q4 FY25, including 5-7 franchise outlets.

• Targeting 7%-8% EBITDA margin on an annualized basis, with expectations of 14-15% gross margin.

• Management expects 18%-20% annual revenue growth to continue into the next financial year.

• Diamond jewellery sales are rebounding, with 59% YoY growth in early Q4, expected to positively impact margins.