Sky Gold and Diamonds (541967) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue reached ₹72,302.72 lakhs (₹723 crore), up 92.4% year-over-year, with PAT at ₹2,122.85 lakhs (₹21.2 crore), and EBITDA at ₹37.3 crore, driven by higher capacity utilization, increased exports, and successful acquisitions.

• Strategic focus on operational efficiency, product innovation, corporate partnerships, and expansion into new segments and geographies is positioning the company for sustained growth.

• Acquisitions of Sparkling Chains and Starmangalsutra expand product portfolio, market reach, and are expected to add significant scale and margin improvement.

• Total comprehensive income for Q1 FY25 stood at ₹3,002.50 lakhs, a significant increase from the previous quarter.

Financial highlights

• Revenue for Q1 FY25 was ₹723 crore, up 92% year-over-year and 40% sequentially, with gross profit at ₹45.9 crore and gross margin at 6.4–6.5%.

• PAT for the quarter reached ₹21.2 crore, nearly doubling year-over-year, with PAT margin at 2.9%.

• EBITDA for Q1 FY25 was ₹37.3 crore, with EBITDA margin at 5.2%.

• Volume turnover increased to 349 kg per month in Q1 FY25, up from 270 kg per month last year.

• Basic and diluted EPS for Q1 FY25 were ₹16.04 and ₹15.97, respectively.

Outlook and guidance

• FY25 revenue guidance is INR 3,300–3,400 crore, with PAT margin targeted at 3.5% by March.

• Long-term revenue target of INR 6,300 crore by FY27, with 100% capacity utilization and 1,050 kg/month expected by then.

• Export contribution expected to sustain at 9–11% of revenue for the year.

• Diamond jewelry sales projected to reach 10–15% of turnover within four quarters.

• Aiming for ROCE above 25%.