Thangamayil Jewellery (THANGAMAYL) Q4 18/19 earnings summary

Executive summary

• FY19 revenue rose 5% to ₹144,335 lakh; EBITDA increased 21% to ₹7,347 lakh, while PAT reached ₹3,026 lakh from ₹2,287 lakh.

• Profit growth reflected stronger realization, cost-effective procurement, working-capital use and higher contributions from diamond and silver products, despite subdued topline growth.

Financial highlights

• Revenue from operations ₹144,335 lakh, up 5% YoY; other income ₹287 lakh versus ₹155 lakh.

• Gross profit ₹14,047 lakh, up 10%; EBITDA ₹7,347 lakh versus ₹6,090 lakh; PBT ₹4,554 lakh versus ₹3,394 lakh.

• PAT ₹3,026 lakh versus ₹2,287 lakh; total comprehensive income ₹3,025 lakh versus ₹2,274 lakh; basic and diluted EPS ₹22.05 versus ₹16.58.

• Operating cash flow ₹8,470 lakh versus an outflow of ₹5,278 lakh in FY18; closing cash and cash equivalents ₹894 lakh versus ₹368 lakh.

Outlook and guidance

• FY20 began well; management expected moderate growth across performance measures and further gross-margin improvement, barring unforeseen circumstances.

• Targeted 45 Tamil Nadu outlets by March 2020; two branches opened in FY20 and work on three more was progressing, alongside a Trichy outlet targeted for December 2019.

• Potential expansion of up to 25 additional branches over 30–42 months, conditional on each location’s economic and financial viability.