Sky Gold and Diamonds (541967) Q4 18/19 earnings summary

Executive summary

• FY2018-19 revenue was ₹8,074.42m, up 47% YoY; profit after tax was ₹30.48m, up 15.97%.

• Operations focused on gold jewellery; the business became publicly listed on BSE’s SME Platform in October 2018 after an IPO.

Financial highlights

• Total revenue reached ₹8,074.42m in FY2018-19 versus ₹5,488.95m in FY2017-18; reported growth was 47%.

• PBT was ₹44.77m versus ₹39.44m; PAT was ₹30.48m versus ₹26.26m, with reported YoY growth of 13.71% and 15.97%, respectively.

• Net cash flow from operating activities was negative ₹132.54m; net cash flow from financing activities was positive ₹194.68m, including IPO proceeds.

• Net worth rose to ₹416.4m at 31 March 2019 from ₹134.8m a year earlier; no dividend was recommended to conserve resources.

Outlook and guidance

• Industry outlook was described as positive, supported by rising incomes, a growing middle class, branded jewellery demand and policy support, including 100% FDI under the automatic route.

• India’s gold demand reached 760.40 tonnes in 2018; the domestic gems and jewellery market was cited at US$75bn in 2017 and forecast to reach US$100bn by 2025.