Senco Gold, a prominent Indian jewellery retailer, has reported a robust financial performance for the first quarter of the fiscal year 2025.
The company’s stock surged 8.73% to Rs 1126.75 following the announcement of its Q1 results.
According to a report in Business Standard, Senco Gold’s net profit increased substantially by 85.29%, reaching Rs 51.27 crore.
Revenue from operations grew by 7.54% to Rs 1403.89 crore compared to the same quarter last year.
The company’s EBITDA showed significant improvement, rising 61.82% to Rs 108.73 crore, while EBIT grew by 60.6% to Rs 102.96 crore, resulting in an EBIT margin of 7.3%.
In the report, Suvankar Sen, managing director & CEO of Senco Gold, noted the company’s strong start to the year with a 7.54% increase in overall sales.
Despite challenges, he highlighted the expansion of their retail footprint with six new showrooms and a robust performance during Akshay Tritiya.
Per the report, Sen also mentioned increases in average ticket value and selling price.
CFO Sanjay Banka stated that the company has maintained a strong % CAGR growth of 21% over the past four years and aims for an 18-20% growth rate in the current fiscal year.
However, he cautioned that the recent reduction in customs duty on gold and silver will impact the company’s gross margin and EBITDA in the coming quarters.
Despite these potential challenges, Senco Gold remains optimistic about future growth.
The report stated, the company plans to expand its retail network further and has launched lab-grown diamonds under its Sennes brand.
Currently, Senco Gold operates over 164 showrooms across India, including 68 franchisee outlets, and one international showroom.
The report added that the recent government decision to reduce customs duty on gold, silver, and platinum is anticipated to boost demand for jewellery.
