Senco Gold Share Price Falls The Most Since Listing As Q3 Profit Dips

Shares of Senco Gold Ltd. fell nearly 19% on Friday, hitting an 11-month low and seeing the most decline since its listing in 2023. In addition, the shares were at 17 times its 30-day average.

The decline in shares comes after the jeweller's consolidated net profit fell 69% to Rs 33.48 crore for the quarter ended December 2024, compared to Rs 109.32 crore in the same quarter of the previous fiscal year, according to its stock exchange notification. This was below Bloomberg's estimates of Rs 121 crore.

Revenue increased 27.3% year-on-year for the three months ended December, reaching Rs 2,102.55 crore. In same-store sales growth, revenue rose 16.4% and the stud ratio was in the range of 10.5%, the company said in an exchange filing on Thursday.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 56% year-on-year to Rs 79.96 crore. The Ebitda margin contracted to 3.8% from 11%.

"The lower Ebitda and PAT margin in the current quarter emanated due to customs duty impact," said Sanjay Banka, chief financial officer at Senco Gold. The company expects to achieve an Ebitda margin of 7-8% in the fourth quarter, it said in the press release.

The company also added that it had achieved the best third quarter revenue in the quarter ended December. "The reduction in customs duties during Q2 acted as tailwind for Q3 sales, especially during Dhanteras and Diwali," said Suvankar Sen, managing director and chief executive officer at Senco Gold.

Shares of Senco Gold fell as much as 18.81% to Rs 362.90 apiece, the lowest level since March 20, 2024. It pared losses to trade 18.48% lower at Rs 364.40 apiece, as of 10:22 a.m. This compares to a 0.15% advance in the NSE Nifty 50.

The stock has fallen 4.39% in the last 12 months. Total traded volume so far in the day stood at 17 times its 30-day average. The relative strength index was at 27.