- By Aditya Pratap Singh
- Fri, 14 Feb 2025 11:47 AM (IST)
- Source:JND
Senco Gold Share Price: Senco Gold Ltd shares plunged 20% to ₹357.60 in early trade on Friday after the company's weak Q3 numbers. The stock price plunged sharply from the last close of Rs 447 on the NSE as the company reported a steep 70% fall in consolidated net profit to Rs 33 crore in the October-December quarter. This is a big decline from a net profit of ₹109 crore in the same quarter last year.
The decline in profitability was largely due to a one-time effect of customs duty reduction, which negatively impacted the performance of the company. But even with the decline in profit, Senco Gold saw its highest-ever quarterly revenue of Rs 2,103 crore, a 27.3% jump from Rs 1,652 crore in Q3FY23. Revenue in the previous September quarter was at Rs 1,500 crore.
On the operating side, the company achieved an EBITDA of Rs 79.9 crore for the quarter with a year-to-date (YTD) EBITDA of Rs 240.6 crore. Adjusted for the impact of customs duty in Q2 and Q3, standing at Rs 29.8 crore and Rs 27.6 crore, respectively—the adjusted nine-month EBITDA stood at Rs 298 crore, with an adjusted EBITDA margin of 6.0%.
The adjusted PAT for Q3 was at Rs 53.8 crore and YTD PAT for the period of nine months at Rs 96.9 crore. Adjusted for one-time impacts, the PAT of the period was at Rs 138.8 crore.
Senco Gold further pointed out that its diamond jewelry business also suffered from pressure on profitability because of a temporary challenge posed by lab-grown diamonds affecting the stud ratio.
The soft profit figures overpowered the robust revenue growth, triggering a steep selloff in the shares of the company. Market players are now eagerly observing how Senco Gold tackles these issues, especially the impact of customs duty and changes in the diamond jewellery segment.