Senco Gold –
Q1 FY 25 concall and results highlights –
Current breakdown of number of showrooms –
Company operated – 97
Franchise showrooms – 68
Total – 165 ( spread across 109 towns and cities and 01 in Dubai )
Added a total of 06 new stores in Q1
Q1 financial outcomes –
Revenues – 1403 vs 1305 cr, 7.5 pc
EBITDA – 108 vs 67 cr, up 62 pc
PAT – 51 vs 27 cr, up 85 pc
Same Store sales growth @ 4 pc
Avg Ticket value @ Rs 73.9k vs Rs 63.7k for FY 24
Q1 Stud ratio @ 9.9 pc vs 11 pc for FY 24
( diamond sales were down by 3-4 pc in Q1 – due rising gold prices )
**Sale of recycled gold stood at 35 pc of total sales ( ie customers exchanging old gold ornaments for new ones ) **
Have launched lab grown diamonds under the Sennes brand
Aim to add about 12-14 more stores in FY 25
Aim to add about 12-14 more stores in FY 25
About 95 pc of company’s gold stocks are hedged. Due to the sharp duty cut on Gold imports announced by the GoI ( recently ), there will be an adverse financial impact of about 50 cr for the company for the remaining 9Ms this FY. However, the duty cuts have also stimulated the demand for gold and gold jewellery which should help the company offset this impact
Aim to grow topline by 18-20 pc for FY 25 vs FY 24
Depreciation charges in Q1 are 18 vs 12 cr ( up 50 pc YoY ) – mainly because of aggressive store opening in FY 24
Confident of touching a stud ratio of 12 pc for full FY 25
Growth in Q2 ( as on the date of Concall ) has been a whopping 25 pc ( triggered by duty cuts ). Hence the confidence to guide for a 18-20 pc topline growth for full FY ( with same store growth guidance @ 11-13 pc )
Also seeing healthy growth in Franchise stores in Tier -2,3 towns – probably an indication of improvement in rural economy and normal monsoons
Elevated levels of other expenses in Q1 are unlikely to continue wef Q2. The same were elevated as the company was spending a lot on brand promotion / marketing etc as the Mkt was showing weakness wef late May / Jun
Company is confident of making up for a large part ( if not for the full part ) of inventory losses of around 50 cr in the next 3 Qtrs – due increased sales, lesser discounting etc
To be on safer side, company is guiding for 15-18 pc bottomline growth for FY 25
Disc: holding, biased, not SEBI registered, not a buy sell/recommendation
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