Senco Gold share price jumps 7% after Q3 results; up over 152% from IPO price

Shares of Senco Gold jumped 7 percent in intra-day deals on Wednesday, snapping 3 sessions of losses after the firm posted decent results for the quarter ending December 2023 (Q3FY24). The stock declined over 5 percent in the previous 3 sessions (February 9-13).

Its consolidated net profit for the quarter under review rose 5.8 percent to ₹109.3 crore as against ₹103.3 crore in the year-ago period. Meanwhile, its revenue from operations jumped 23.3 percent to ₹1,652.2 crore in Q3FY24 versus ₹1,339.6 crore in Q3FY23.

On the operating front, the jewellery maker's EBITDA advanced 11.3 percent to ₹181.1 crore in the December FY24 quarter as compared to ₹162.7 crore in the December FY23 quarter. However, its EBITDA margin declined 1.1 percent to 11 percent in Q3FY24 versus 12.1 percent in Q3FY23.

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"Our consistent performance demonstrates our robust execution capability, Operational Prudence and Financial rigour. We achieved the highest-ever Q3 Revenue of ₹1,652 Cr recording QOQ growth of 43 percent and YoY growth of 23 percent. For the 9 month period, we achieved top line of ₹4,104 Cr surpassing FY 23 Topline and achieving best-in-class YoY growth of 26 percent. This growth has been led by Same Stores Sales (SSS) growth of 17 percent and volume growth in Gold and Diamond both," stated Sanjay Banka, CFO, Senco Gold.

The stock rose as much as 6.9 percent to its day's high of ₹800. It has now surged over 123 percent from its 52-week low of ₹358.25, hit on July 21, 2023. However, it is still around 5 percent away from its peak of ₹840, hit on January 11, 2024. Overall, the stock has been flat in February, up just 0.7 percent after a 13.15 percent gain in January.

Meanwhile, in the 9 months ending December 2023 (9MFY24), the firm posted a 12.4 percent rise in profit to ₹148.9 crore versus ₹132.4 crore in 9MFY23. Its revenue also rose 25.8 percent to ₹4,104.2 crore in 9MFY24, its highest ever from ₹3,263.5 crore in 9MFY23. However, its EBITDA margin again declined 70 bps to 7 percent in 9MFY24 from 7.7 percent in 9MFY23.

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"This year so far, we have seen a robust performance from Team Senco in terms of Showroom Expansion, Topline achievement, launch of new collections, New Formats like House of Senco and Sennes resulting into sound financial performance. We have so far rolled out 19 showrooms including 4 Franchisee Showrooms. Stable gold prices throughout Q3 also helped in higher sales in Q3 with YTD 9 percent volume growth in Gold and 27 percent volume growth in Diamond," said Suvankar Sen, Managing Director & CEO, Senco Gold.

Sen added: “We have also become the first Indian jewellery brand to join the Open Network for Digital Commerce (ONDC) Network and now our catalogue will be available across various shopping apps within the expanding ONDC Network, facilitating smooth and efficient transactions.”

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From its IPO price of ₹317, the stock has soared over 152 percent.

It made a strong debut on the bourses on July 14, 2023, listing at ₹430, a premium of 35.65 percent versus its IPO price.

The ₹405 crore initial public offering (IPO) was open for subscription from July 4 to July 6 with a price band of ₹301-317. The offer comprised a fresh issuance of shares worth ₹270 crore and an offer-for-sale (OFS) of ₹135 crore by investor SAIF Partners India IV. The issue also received a robust response from all kinds of investors and was subscribed to 77.25 times.

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Senco Gold is a pan-India jewellery retail player with a history spanning more than five decades. The company’s products are sold under the brand 'Senco Gold & Diamonds’ through multiple channels, which include owned stores, franchise stores, and various online platforms.