Company Update : P N Gadgil Jewellers Ltd By Motilal Oswal Financial Services Ltd
Beat on profitability; store expansion on track
Revenue
* PNGJ’s consolidated sales rose 5% YoY to INR15.9b (est. INR16.6b) in 4QFY25.
* The company discontinued HO Bullion accounting from 3QFY25, and thus the reported numbers were lower than the underlying numbers.
* The retail revenue grew by 50% YoY to INR12.9b. Retail EBITDA margin was 7.9%, and PAT margin was 4.2%.
* Footfalls increased by 38%, supported by a strong conversion rate of 92%, indicating healthy demand, high customer engagement, and consistent in-store purchasing behavior.
* The stud ratio improved 200bp YoY to 8% in 4QFY25 from 6% in 4QFY24. Stud revenue was up 31% YoY during the quarter.
* Transaction volumes grew 40% YoY, underscoring resilient demand and rising customer activity, despite record-high gold prices.
* The average transaction value was INR77,000.
* Franchisee revenue grew by 37% YoY to INR1.9b.
* E-commerce revenue grew by 244% YoY to INR907m.
* The festive season remained a key growth driver, with Gudi Padwa sales rising 40% YoY.
* The company has added five stores during the quarter, taking the total count to 53 stores in 27 cities.
Profitability
* Gross margin expanded 160bp YoY to 12% (est. 10.3%).
* EBITDA margin flat YoY at 5.9% (est. 5.3%).
* Employee expenses rose 32% YoY, and other expenses grew 45% YoY.
* EBITDA grew 6% YoY to INR941m.
* PAT improved 13% YoY to INR620m. The PAT margin was 3.9% vs. 3.6% in 4QFY24.
* In FY25, the company delivered an SSSG of 26.5%.
* In FY25, PNGJ’s net sales, EBITDA, and APAT grew 26%, 30%, and 52%, respectively.
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