Senco Gold Stock Plummets Over 19% as Q3 Profit Crashes 69%

Senco Gold’s stock dropped 18% on February 14, 2025, following a sharp EBITDA margin decline to 3.8% from 11% YoY, driven by higher subsidiary setup costs, gold price volatility, and increased customs duties. Despite this, revenue rose 27% YoY to ₹2,100 crore, with a record ₹1,000 crore single-month revenue during Dhanteras. Management remains optimistic about achieving a 7-8% EBITDA margin in Q4 and beyond, supported by brand strength and premium pricing strategies.

CONTENTS:

• Stocks Hitting 52-Week Lows on February 14, 2025
• Senco Gold Shares Plunge Over 19% Following Weak Q3 Results

Senco Gold Stock Plummets Over 19% as Q3 Profit Crashes 69%

Stocks Hitting 52-Week Lows on February 14, 2025

Several stocks hit their 52-week lows today, including Varun Beverages, Iris Clothings, Life Insurance Corporation of India, CANARA BANK, and Hero Motocorp. The broader market also saw a decline, with Nifty 50 dropping by 107.2 points (-0.47%) and Sensex falling by 331.91 points (-0.44%) as of 10:59 AM IST.

Bank Nifty also recorded a decline of 279.25 points (-0.57%) at 10:44 AM IST.

Meanwhile, some stocks reached their 52-week highs, including Norben Tea & Exports, Aarvee Denims & Exports, and SBI Cards & Payment Services.

Top Gainers & Losers:

• In the BSE Sensex Index:
  • Top Gainer: ICICI Bank
  • Top Losers: CANARA BANK, Au Small Finance Bank, Punjab National Bank, Indusind Bank, Bank of Baroda

• In the Bank Nifty Index:
  • Top Gainer: ICICI Bank
  • Top Losers: CANARA BANK, Au Small Finance Bank, Punjab National Bank, Indusind Bank, Bank of Baroda

Senco Gold Shares Plunge Over 19% Following Weak Q3 Results

Senco Gold’s stock saw a sharp decline of over 19% during morning trading on February 14, 2025, after the jewellery chain reported a significant drop in profits for the October-December quarter.

Key Financial Highlights (Q3 FY25):

• Net Profit: ₹33.4 crore, down 69.4% YoY from ₹109.3 crore in Q3 FY24.
• Revenue from Operations: ₹2,102.5 crore, reflecting a 27.3% YoY increase from ₹1,652.2 crore.
• EBITDA: ₹79.9 crore, down 56% YoY from ₹181.1 crore.
• EBITDA Margin: 3.8%, compared to 11% YoY.

At 10:20 AM, Senco Gold’s stock was trading at ₹361.8 per share on BSE, marking a 19.05% decline.

Management Commentary:

Suvankar Sen, Managing Director & CEO, highlighted that gold prices exhibited high volatility in Q3, surging 22% YoY and 20% since April 2024. Despite this, consumer demand remained strong, with reduced customs duties in Q2 acting as a positive factor, especially during Dhanteras and Diwali.

Sanjay Banka, Chief Financial Officer (CFO), expressed confidence in achieving a 7%-8% EBITDA margin on an annualized basis, excluding one-time impacts. He attributed the lower EBITDA and PAT margins this quarter to customs duty effects but expects margins to improve in Q4 FY25 and beyond.

Strategic Moves & Expansion Plans:

• ₹459 crore raised via Qualified Institutional Placement (QIP) to repay debt, expand operations, and manage inventory.
• Stock Split (1:2) announced on January 31, 2025, aimed at enhancing shareholder value.
• 171 showrooms in total, including 70 franchise locations.
• 12 new showrooms opened in the last nine months, with 7 company-owned.
• Plans to launch 8-10 new showrooms in Q4 FY25, including 5-7 franchise outlets.

Despite the short-term financial setback, Senco Gold remains optimistic about its long-term growth strategy, leveraging brand strength, operational efficiency, and innovative offerings to drive future sales.

Senco Gold’s stock saw a sharp 18% decline in early trading on February 14, 2025, following disappointing Q3 financial results. The company’s EBITDA margin fell to 3.8%, a significant drop from 11% YoY, mainly due to higher costs associated with setting up new subsidiaries, gold price volatility, and an increase in customs duties.

Key Financial Highlights (Q3 FY25):

• Net Profit: ₹33.5 crore, down from ₹101.3 crore YoY.
• Revenue: ₹2,100 crore, marking a 27% YoY increase.
• EBITDA Margin: 3.8%, compared to 11% YoY.
• Stock Price: At 09:28 AM, shares were trading at ₹369.30 on NSE.

Despite the weak profitability, Senco Gold achieved its highest-ever Q3 revenue, with a record single-month revenue of ₹1,000 crore during Dhanteras. Management highlighted that gold prices surged 22% YoY and 20% since April 2024, while the Q2 reduction in customs duties supported strong consumer demand during the festive season.

Management’s Outlook:

Suvankar Sen, Managing Director & CEO, described Q3 as a milestone quarter, emphasizing the company’s record revenue figures.

Sanjay Banka, CFO, expressed confidence in achieving a 7-8% EBITDA margin in Q4 and beyond, driven by strong brand positioning and operational efficiencies. He also highlighted plans to enhance sales through innovative offerings and premium pricing strategies.

Senco Gold’s share price has dropped 32% over the last six months, but the company remains optimistic about long-term growth in the Indian gems and jewelry sector.