Company Update : Senco Gold Ltd By Motilal Oswal Financial Services Ltd
In-line sales; a sharp miss on profitability
Consolidated results
* Senco’s consolidated revenue grew 27% YoY to INR21.0b (est. INR20.7b).
* The company presentation has not yet been released. However, management previously reported an inventory loss of ~INR500m due to customs duty. Adjusting for the INR298m inventory loss in 2Q, we consider the INR200m inventory loss in 3Q to understand the underlying margin.
* After adjusting the inventory effect, the consolidated gross margin contracted by a sharp 770bp YoY to 10.9%. (vs. 13.2% in 2QFY25; est. 17.7%).
* Employee expenses were up 11% YoY, while other expenses remained flat YoY.
* EBITDA margin (ex-custom duty impact) contracted 620bp YoY to 4.8% (vs. 5.4% in 2QFY25; est. 10.3%).
* EBITDA declined (ex-custom duty impact) 45% YoY to INR1,000m (est. INR2,129m).
* APAT (ex-custom duty impact) contracted 56% YoY to INR485m (est. INR1,304m).
* Reported PAT was down 69% YoY to INR335m.
* In 9MFY25, net sales/EBITDA grew 22%/1%, while APAT dipped 10% YoY.
For More Research Reports : Click Here
For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412
