- Senco Gold's Q1 consolidated net profit declined 3.4% year-on-year to Rs 101 crore
- Revenue surged 67.4% year-on-year to Rs 3,056 crore in the first quarter
- Consolidated EBITDA rose 16.2% to Rs 213 crore, with margin falling to 7% from 10%
Senco Gold Ltd reported a 3.4% year-on-year decline in consolidated net profit for the first quarter ended June, despite a sharp increase in revenue during the period.
The jewellery retailer's consolidated net profit stood at Rs 101 crore in Q1, compared with Rs 105 crore in the corresponding quarter of the previous year, according to an exchange filing on Tuesday.
Revenue from operations surged 67.4% year-on-year to Rs 3,056 crore from Rs 1,826 crore a year earlier, reflecting strong growth in the company's top line. However, the pace of growth in operating profit remained significantly lower than that of revenue.
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Consolidated Ebitda rose 16.2% year-on-year to Rs 213 crore from Rs 184 crore in Q1 of the previous fiscal. Consequently, the Ebitda margin contracted sharply to 7% in the June quarter from 10% in the year-ago period.
The decline in profitability, despite robust revenue growth, points to pressure on operating margins during the quarter. While the company delivered strong top-line growth, the relatively slower expansion in Ebitda resulted in lower earnings at the net profit level.
Senco Gold's Q1 performance comes amid a strong operating environment for the jewellery sector, with elevated gold prices influencing both the value of sales and consumer buying patterns.
The company's revenue growth outpaced its operating profit growth substantially during the quarter, leading to a three-percentage-point contraction in Ebitda margin.
Overall, Senco Gold delivered strong revenue growth in Q1, but the performance was tempered by margin pressure and a marginal decline in consolidated net profit.
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