Global Markets
Home›Global Markets›India›Senco Gold shares fall 14.5% after Q1 results, margins…
Senco Gold shares fall 14.5% after Q1 results, margins weigh
Even with Q1 revenue rising 67% to ₹3,056 crore, the company’s EBITDA margin slipped to 7.0% and net profit fell 3% year over year.
India jewellery retailer Senco Gold saw its shares drop 14.5% to a four-week low of ₹343 in Wednesday trade, after reporting Q1 results. LiveMint Markets attributed the selloff to margin pressure weighing on investor sentiment despite stronger topline growth.
The company reported revenue of ₹3,056 crore, up 67% year over year, with retail sales rising 50% to ₹2,651.5 crore. Same-store sales growth stood at 39% for the quarter.
LiveMint Markets said higher average gold prices and a customs duty increase from 6% to 15% affected gold demand, even as marketing efforts such as old-gold exchange campaigns helped sustain momentum. The old-jewellery exchange, representing 43% of sales, continued to be a key driver, though the company noted it partly impacted gross margin due to a “0% deduction” campaign.
At the operating level, Senco Gold’s EBITDA grew 16% year over year to ₹213 crore, but EBITDA margin fell to 7.0%, down 310 basis points from 10.1% a year earlier, with discounts cited as a factor. Net profit declined 3% year over year to ₹101 crore, and the company said it expects the September quarter to stay soft before demand improves in the subsequent quarter, supported by monsoon and festive-season gold-booking schemes. Managing director and CEO Suvankar Sen said the firm remains focused on achieving 20% plus value growth in FY27 and pursuing profitable expansion in East and North India.
Latest closeGold $4,292.50 ▼0.6%