Senco Gold Ltd. achieves YoY operational revenue growth of 26% for Q2 & 28% for H1 FY24

The company declared a 10% interim dividend amongst stakeholders. On NSE, Senco Gold share prices were listed at Rs 430 apiece levels whereas on BSE, the prices opened at Rs 431 per share levels

Kolkata:  Senco GoldLimited announced its unaudited Q2 financial results in their board meeting held on November 9, 2023.

Key highlights of the consolidated financial results for the second quarter that ended on September 30, 2023 included a growth in operational revenues to Rs 1,147 crore and a year-on-year growth of 26%.EBITDA increased to Rs 39 crore recording a YoY growth of 21% , and the EBITDA margin was range bound at 3.4% for Q2 FY24 vis-à-vis Q2 FY23. The profit before exceptional items increased to Rs. 11.9 crore, recording a YoY growth of 36%.

Suvankar Sen, Managing Director & CEO, Senco Gold Ltd. commented on the brand’scontinued robust momentum in both footfalls and revenue across all markets – “The recently concluded quarter has been yet another positive one for us. Despite volatile growth prices, we achieved volume growth consistently in Q2 , leading to H1 level YoY volume growth of 11%  in gold and 33% in diamond. We have continued to expand our showroom presence pan India and have rolled out two of our own stores and one franchise store in Q2 achieving 145 mark ending September, 2023.”

“The Q2 revenue was highest ever at Rs 1,158 Cr and the growth had a secular trend across all zones and channels. The tailwind for the growth came from higher footfall based on enhanced customer engagement, higher wedding sales, relaunch of our Rajwada wedding collection, new collection launches and a higher old-gold exchange of 35%. We have also achieved consistent improvement in stud ratio (sales of diamond jewellery as a percentage of total turnover) attaining 13.7% mark in our showrooms, while the blended stud ratio rose to 11.4% as against 9.8% H1, last year,” Sen added.

Sanjay Banka (CFO), Senco Gold Ltd. Commented on how the brand’s financial performance underscored resilience and their strategy of sustainable profitable growth. The company also declared a 10% interim dividend amongst stakeholders.

“The revenue for the quarter increased by 26% YoY to Rs 1158 cr and at H1 level YoY by 28% amounting to Rs 2473 crore. At EBITDA level, we achieved 21% growth to Rs 39 cr and H1 level YoY growth of 21.7% to Rs 107cr. The EBITDA margin for the quarter was range bound at 3.4% and at H1 level 4.4%. The PAT for the quarter also demonstrated growth and improved to Rs 11.9 cr with 36% YoY growth and at H1 level 26% YoY growth. The fund raised from IPO have been fully deployed for working capital purposes leading to improvement in Inventory level improved from Rs 1,885 Cr to Rs 2,060 Cr as on Quarter end. Our inventory turnover also improved to 2.4x in H1 indicating the efficient working capital management.”

SENCO Gold doubles allottees’ money in four months

The initial public offering (IPO) of Senco Gold was launched in July 2023. The public issue was offered at a price band of 301 per share to ₹317 per equity share. The book build issue was listed on BSE and NSE on July 14, 2023. On NSE it listed at Rs 430 apiece levels whereas on BSE, Senco Gold share price opened at Rs 431 per share levels.

The jewellery stock delivered over 35% returns to its allottees on the share listing date. However, the jewellery stock didn’t end here – it continued to scale upwards, recording Rs 683.95 per share levels during the Muhurat trading session. If an allottee had remained invested in Senco Gold shares despite a strong debut on Dalal Street, the absolute value of one’s investment would have surged to the tune of 11% in the last four months.

Retail Jeweller India News and LiveMint