Thangamayil Jewellery (THANGAMAYL) Q2 24/25 earnings summary

Executive summary

• Achieved record half-year sales of Rs. 2,398 Cr, up 23% year-over-year, with adjusted PAT at Rs. 85 Cr versus Rs. 53 Cr last year.

• Opened two new outlets, bringing total to 59, with further expansion planned including a flagship Chennai store by January 2025.

• Net loss before tax of Rs. 23.55 Cr in Q2, compared to a profit of Rs. 12.26 Cr in Q2 last year, due to adverse gold price movements, hedging losses, and increased operating expenses.

Financial highlights

• Q2 FY25 total income from operations: Rs. 1,18,105 lakh, down 3% sequentially but up 19% year-over-year.

• Adjusted gross profit for Q2: Rs. 102 Cr, up 36% year-over-year; adjusted EBITDA: Rs. 54 Cr, up 32% year-over-year.

• Half-year adjusted EBITDA: Rs. 143 Cr, up 47% year-over-year; adjusted PAT: Rs. 85 Cr, up 60% year-over-year.

• Reported EBITDA and PAT impacted by Rs. 26.33 Cr hedging loss and higher expenses.

• EPS for H1 FY25: Rs. 14.25, down from Rs. 24.42 in H1 FY24.

Outlook and guidance

• No adverse customs duty under-recovery expected in Q3 due to prevailing high gold prices.

• Operating expenses expected to rise further due to ongoing expansion and infrastructure strengthening.

• Expansion plan includes 7 new outlets in Q4 FY25 and a proposed rights issue up to Rs. 600 Cr.