Shares of Senco Gold Ltd fell by 3.95% to ₹1,083 in early trade on January 10, following the company’s Q3 FY25 business update. Despite reporting robust revenue growth and expansion plans, the market reacted negatively.
Key Business Highlights:
- Revenue Growth:
- Achieved a 22% year-on-year (YoY) revenue growth in Q3 FY25.
- Nine-month (9M) revenue growth stood at 19% YoY, driven by strong retail demand, particularly in Tier 3 and Tier 4 towns.
- October 2024 was a record month, with over ₹1,000 crore in sales and ₹2,000 crore for the quarter.
- Trailing twelve-month (TTM) revenue crossed ₹6,000 crore, indicating an annual growth of 19-20%.
- Key Performance Metrics:
- Same Store Sales Growth (SSSG): Remained steady at 13-14% during the quarter.
- Stud Ratio: Maintained at 10.5%, with investments in marketing and inventory build-up targeting northern markets.
- Old Gold Recycling: Contributed 38% to sales, driven by a transition from non-organized to organized channels.
- ASP and ATV: Average selling price (ASP) and average ticket value (ATV) increased by 28% and 14%, respectively, in the 9M period.
- Expansion Efforts:
- The showroom network expanded to 170, including 69 franchise outlets.
- Four new showrooms were launched in Q3, including in Dehradun (marking entry into Uttarakhand), Gwalior, Barakar, and Chandaneshwar.
- Plans to open 18-20 new showrooms in FY25, with 10-12 as franchise outlets.
- Strategic Initiatives:
- Successfully raised ₹459 crore through a Qualified Institutional Placement (QIP) at ₹1,125 per share.
- Launched a new subsidiary, Sennes, focusing on premium leather accessories, lab-grown diamond jewelry, and perfumes.
TOPICS:
Senco Gold