Senco Gold (SENCO) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue grew 21% year-over-year, with gold jewelry value up 20% but volume down 6% due to higher gold prices; diamond jewelry value rose 38% and volume 21% in Q4, with full-year diamond value up 15% and volume up 2%.

• EBITDA margin improved to 9.2% in Q4 from 7.7% last year; Q4 EBITDA grew over 44% year-over-year.

• 16 new stores opened in FY25 (6 franchisee, 9 company-owned, 1 lab-grown diamond-focused), with non-east business growing 23% to INR 1,230 crore.

• Same store sales growth maintained at 15%-16%; footfalls increased 17% and new customers added reached 253,000.

• Board approved audited consolidated and standalone financial results for Q4 and FY25, with unmodified audit opinions from statutory auditors.

• Final dividend of 20% (₹1.00 per share of face value ₹5) recommended for FY25, subject to AGM approval.

• Qualified Institutional Placement (QIP) of 4.08 million shares raised ₹4,590 million, mainly used for debt repayment.

Financial highlights

• Standalone revenue for FY25 was INR 6,258 crore, with adjusted PAT at INR 207 crore; consolidated revenue was INR 6,328 crore and adjusted PAT INR 201 crore.

• Adjusted EBITDA rose from INR 381 crore to INR 427 crore (12.2% growth); EBIT was stable at INR 369 crore.

• Consolidated revenue for FY25: ₹63,280.72 million, up from ₹52,414.43 million in FY24.

• Consolidated net profit for FY25: ₹1,593.09 million, compared to ₹1,810.04 million in FY24.

• Finance costs increased due to higher borrowings; gold metal loan rates rose from 3.6% to 6.6% during the year.

• Inventory increased by INR 819 crore, mainly due to gold price rise and new store openings.

• Old gold exchange contributed close to 40% of sales, up from 25% two to three years ago.

Outlook and guidance

• Targeting 18%-20% top-line growth and 6.8%-7.2% EBITDA margin for FY26; PAT margin expected at 3.5%-3.7%.

• Plan to open 18-20 new stores in FY26, with at least 10 franchisees and 8-10 company-owned stores, focusing on East and North India.

• Diamond jewelry sales and stud ratio improvement remain key focus areas; aim for 15% stud ratio in 3-4 years.

• Final dividend proposed, reflecting confidence in future cash flows and profitability.

• QIP proceeds to support future growth and strengthen balance sheet.