Senco Gold To Achieve 7% Margin Guidance In FY25 Despite Tepid Q3: CEO
Senco Gold’s Ebitda margins shrunk to 3.8% in Q3 from 11% in the year-ago quarter.

Senco Gold Ltd. is on track to achieve its Ebitda margin guidance in the range of 7–8% despite a sharp drop in the third quarter, Chief Executive Officer Suvankar Sen told NDTV Profit on Friday.
Senco Gold recorded a subdued financial performance in Q3 with net profit falling a sharp 69% to Rs 33.5 crore versus Rs 109.3 crore a year ago. However, revenue rose 27% YoY to Rs 2,102.6 crore. The Ebitda came down by 56% to Rs 79.96 crore against Rs 181.10 crore in Q3 of last financial year. The Ebitda margins shrunk to 3.8% in Q3 from 11%. The adjusted Ebitda stood at 6% during the quarter.
"We will be moving closer to 7% for the full year. The top-line growth continues to remain strong, the sale of diamond jewellery continues to pick up. From a 6% adjusted Ebitda that we have, we will be moving closer to 7% by the end of this year," he said.
Sen listed three factors that played a key role in the company's subdued financial performance in the December 2024 quarter.
"There are two-three reasons why the margins have gone down. One is the duty cut that was done in July, which impacted the overall numbers. We have taken a Rs 58-crore impact due to the duty cut, a part of it was taken in Q2, and a part of it is in Q3," he said.
According to Sen, the lower-than-expected sale of diamond jewellery also contributed to the company's weaker Q3.
"The share of diamond jewellery sale in the overall jewellery sale has been on the lower side. So, in terms of overall gross margins of gold, we have seen a 22% growth, and in the whole consolidated part of the company, we have seen 27% growth. But the growth has come mainly from the sale of gold jewellery. The share of diamond jewellery has been down, which means that the impact on gross margins has been on the lower side. As a result, Ebitda has been on the lower side," he explained.
Drastic movement in gold prices also played a key role in the lower margins for the company. "Drastic price movement of gold, we have seen that the hedging impact we had to take in Q3 led to a lower number overall," Sen said.
The Senco Gold CEO highlighted that on a comparable basis, the Ebitda margin for the nine months ended December 2024 stood at 6%, which is only marginally lower than the 7% recorded in the corresponding period last year.