Sky Gold and Diamonds (541967) Q2 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 768.8 crore (₹76,884.84 lakhs) in Q2 FY25, up 94% year-over-year, and PAT of INR 36.7 crore (₹3,671.22 lakhs), up 405% year-over-year.

• Strong demand driven by festive and wedding seasons, with a positive outlook for upcoming quarters.

• Expanded product portfolio and completed acquisitions of Starmangalsutra and Sparkling Chains to enhance market presence.

• Raised INR 270 crore (₹26,999.98 lakhs) to support growth initiatives, including international expansion and capacity enhancement.

Financial highlights

• Q2 FY25 revenue: INR 768.8 crore (94% YoY growth); PAT: INR 36.7 crore (up from INR 7.3 crore YoY); H1 FY25 revenue: INR 1,491.9 crore (93% YoY growth); PAT: INR 57.9 crore.

• Q2 FY25 EBITDA at INR 38.8 crore (+154% YoY); gross margin improved to 6.5%; EBITDA margin at 5%.

• Export revenue contributed 9% in Q2 FY25; domestic 91%.

• Basic EPS for Q2 FY25 was ₹34.58, up from ₹6.76 in Q2 FY24.

• Net cash flow from operating activities for H1 FY25 was negative at ₹(6,175.54) lakhs, mainly due to increased receivables and inventory.

Outlook and guidance

• FY25 revenue guidance: INR 3,300 crore (INR 2,700 crore core, INR 600 crore subsidiaries); targeting revenues of ~INR 6,300 crore by FY27.

• Q3 revenue expected at INR 1,000 crore (INR 700-750 crore parent, INR 156-350 crore subsidiaries).

• Targeting export share to rise to 12-13% in FY25 and 15% in FY26.

• Volume guidance: 375-400 kg/month by FY25 end, 550-600 kg/month by FY26, 750 kg/month by FY27.

• Long-term gross margin target: 7-8%; EBITDA margin: 5-5.5%; PAT margin: 3.5-4% by FY27.