Senco Gold Limited, India’s leading jewellery retailer having over 80 years legacy and with 150+ showrooms across nation has announced its unaudited financial results for the second quarter ended on September 30, 2023 in the Board meeting held on 9th November 2023.
Key Highlights of Consolidated Financial Results for Quarter Ended September 30, 2023 are,
1: Revenues from operations increased to Rs. 1,147 cr, recording a YoY growth of 26%,
2: EBITDA increased to Rs. 39 cr recording a YoY growth of 21%,
3: EBITDA margin was range bound at 3.4% for Q2 FY24 vis-à-vis Q2 FY23 &
4: Profit before exceptional items increased to Rs. 11.9 crore, recording a YoY growth of 36%.
Speaking on the performance, Suvankar Sen, Managing Director & CEO, Senco Gold Ltd. commented, the recently concluded quarter has been yet another positive one for us at Senco Gold & Diamonds, achieving continued robust momentum in both footfalls and revenue across all markets. Gold prices in Q1 were volatile versus Q4 and almost 15% higher YoY.
This price volatility continued in Q2 as well, with a sudden fall in August 2023 and again increasing trend by quarter end with YoY price higher by 13% leading to above growth. We again 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 2 own and 1 franchisee stores in Q2 achieving 145 mark ending September 2023.
On revenue as well, we have been consistently growing with 19% CAGR since FY 2020; and continuing our growth track record, in Q2 also we achieved topline growth of ~26% YoY leading to overall 28% YoY growth in H1 and the Same Store Sales Growth (SSSG) of 19%. 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 Rajwada wedding collection, new collection launches (Mariposa, Spectra and Tria) and higher old gold exchange of 35%.
We have also achieved consistent improvement in stud ratio (Diamond Jewellery as percentage of total turnover) attaining 13.7% mark in own showroom (showing improvement of 250 basis points over 11.2% last year H1), while the blended stud ratio rose to 11.4% as against 9.8% H1, last year.
Also, we are pleased to declare Interim Dividend of 10% to reward our shareholders based on our profitability and as per our past track record of interim dividend payments.
Elaborating on the financial performance, Sanjay Banka (CFO), Senco Gold Ltd. commented, “Our financial performance underscores financial resilience and our strategy of sustainable profitable growth. The revenue for the quarter increased by 26% YoY to Rs 1158 cr and at H1 level YoY by 28% amounting to Rs 2473 cr.
The Gross Margin % has remained muted in Q2 based on Product mix, Channel Mix, offers and schemes and higher old gold exchange in line with Q1 and H1 last year. 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 funds 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.”
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