Senco Gold Ltd Q3 revenue indicates robust performance, a 23.3% YOY growth to Rs 1,652 crore

The jewellery brand attributed the strong performance to showroom expansions, launch of new collections, new formats like House of Senco and Sennes and offers during the festive season

Kolkata:  Senco Gold Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2023, in the Board meeting held on 13th February 2024.

Key financial highlights

• Posted highest revenue in 9M FY24 revenue of Rs 4,104 Cr (26% YoY growth) surpassing FY 22-23 Revenue of Rs 4,077 Cr

• EBITDA margin substantially improves over H1 in Q3 to 11.0% in line with earlier trends

• 9M FY24 PBT grows to Rs 197.2 Cr (9% YoY growth)

• Q3 FY24 PAT stood at Rs 109.3 Cr and 9M FY24 PAT grew 12.4% to Rs 148.9 Cr on a YoY basis

Speaking on the business performance, Suvankar Sen, Managing Director & CEO, Senco Gold Ltd. commented, “This year so far, we have seen a robust performance from Team Senco in terms of showroom expansion, topline achievement, launch of new collections, new formats like ‘House of Senco’ and ‘Sennes’, resulting into sound financial performance. We have so far rolled out 19 showrooms including 4 franchisee showrooms. 

“The key offers during the Q3 were Dhanteras Offer, Pujo Offers – Flexi Gold Offer and Wedding Offers, which helped in enhancing footfall and catalyzing the sales in line with market sentiments. Stable gold prices throughout Q3 also helped in higher sales in Q3 with YTD 9% volume growth in Gold and ~ 27% volume growth in Diamond. Dhanteras’ period sales contributed Rs 920 Cr, which is about 55% of Q3 Revenue in line with last year’s trend. We have also achieved an almost 40% increase in footfall and 6% increase in Invoices, which have contributed to this growth. 

Sen added, “The old Gold Exchange was 33% of total sales indicating shift from non-organized to organized and Senco as the preferred Jeweller.  The stud ratio also further improved from 11.2% to 11.6%. We have also become the first Indian jewellery brand to join Open Network for Digital Commerce (ONDC) Network and now our catalogue will be available across various shopping apps within the expanding ONDC Network, facilitating smooth and efficient transactions.” 

“In our constant endeavors to innovate and create new designs for our customers, the brand has launched a premium wedding range for 2023-24 wedding season- Vivaha & Rajwada Collections in Gold and diamonds. Shagun collection for Dhanteras festival, Solitaires under perfect love hearts and arrow cut diamonds, and SiyaRam Collection as a perfect tribute to the personification of love, peace and perfection amongst Ram, Sita, Lakshman, and Hanuman to celebrate the inauguration of Ram Mandir in Ayodhya,” Sen maintained.

Elaborating on the financial performance,Sanjay Banka, Chief Financial Officer, Senco Gold Ltd. commented,“Our consistent performance demonstrates our robust execution capability, operational prudence and financial rigour. We achieved the highest ever Q3 Revenue of Rs 1,652 Cr recording QOQ growth of 43% and YoY growth of 23%. For the 9 month period, we achieved a top line of Rs 4,104 Cr, surpassing FY 23 topline and achieving best in class YoY growth of 26%. This growth has been led by Same Stores Sales (SSS) growth of 17% and volume growth in Gold and Diamond both. 

“Our EBITDA Margin for Q3 improved substantially to 11.0% in line with Q3, FY 23 ; and for the 9-month period, we achieved a stable EBIDTA margin of 7.0% vis a vis 7.7% last year same period. Our inventory turnover also remained at 152 days (2.4x), which is amongst the best in Industry. We continue to focus on enhancing the GML % (presently 60%) in our total bank borrowing to reduce our blended borrowing cost which presently is about 6%. The new showroom launches of 18 so far have also led to investment in working capital out of our internal accruals, IPO funds, and incremental borrowing. We thus remain dedicated to delivering value to our stakeholders,” Banka concluded.

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