Senco Gold shares plunge 32% in 2 days on weak Q3 earnings; brokerages downgrade
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Shares of Senco Gold tumbled as much as 14.8% on Monday to Rs 304.5 on the BSE, extending losses to nearly 32% over two sessions after the company reported a sharp 69.3% year-on-year (YoY) drop in its third-quarter profit after tax (PAT). The jewellery retailer’s PAT slumped to Rs 33.48 crore in the October-December quarter, compared to Rs 109.32 crore in Q3FY24. Adjusted PAT also declined 50.9% YoY to Rs 53.74 crore. Despite robust revenue growth of 27.3% to Rs 2,102.55 crore in the third quarter, profitability was hit by higher costs, declining margins, and losses tied to customs duties, the company said. Senco Gold’s gross margin contracted 740 basis points YoY to 11.3%, largely due to customs duty-related inventory losses of Rs 276 crore and gold price hedging costs exceeding Rs 500 crore. The company’s EBITDA declined 55.8% YoY to Rs 79.96 crore, with adjusted EBITDA falling 40.4% to Rs 107.55 crore. The EBITDA margin shrank to 3.8% ...