Senco Ltd has posted its business update for Q3 and the first nine months of FY25.
On January 10, 2025, Senco share price opened at ₹1,120.00, down from its previous close of ₹1,127.55. At 9:50 AM, the share price of Senco was trading at ₹1,082.80, down by 3.97% on the NSE.
The company stated that the gold prices have experienced a slowdown in their upward movement since early November 2024. After months of record highs, gold prices dropped from a peak of US$2,787 per ounce to US$2,605 per ounce by December 2024, a decline of nearly 6%.
Despite this dip, the gold market continued to show resilience, with a significant increase in prices. In Q3, gold prices increased by 24% year-on-year (YoY), and 8% quarter-on-quarter (QoQ). Indian consumers, driven by the reduction in customs duty, remained committed to buying gold despite rising prices. This sustained demand was particularly evident during the Dhanteras period and in the second week of December.
Senco Ltd successfully raised ₹459 crore through a Qualified Institutional Placement (QIP), allotting equity shares at ₹1,125 per share, which is nearly 3.5 times the IPO price. As a result of this allotment, the company’s equity share capital base has increased from 7.77 crore shares to 8.18 crore shares, marking a notable expansion.
Senco Ltd achieved growth in the third quarter and the first nine months of FY25. The company recorded its highest-ever monthly sales in October 2024, crossing ₹1,000 crore in a single month. In Q3 FY25, the company achieved over ₹2,000 crore in sales, marking another milestone. The total trailing twelve months (TTM) revenue has surpassed ₹6,000 crore, reflecting the company’s steady march toward its annual revenue growth target of 19%-20%.
In terms of growth, Senco reported a 22% YoY revenue increase in Q3 and a 19% YoY growth in the first nine months of FY25. Retail growth was steady at 19% YoY in Q3, with Tier 3 and Tier 4 towns outperforming metro and Tier 2 cities, a trend consistent with broader economic patterns and retail consumption.
The Same Store Sales Growth (SSSG) remained strong in the 13%-14% range, indicating that existing showrooms continue to perform robustly. The stud ratio, a key metric for the company’s product offerings, remained steady at 10.5%, with ongoing investments in marketing, inventory build-up, and customer engagement programs aimed at enhancing this ratio, particularly in northern markets.
The company’s old gold recycling program continued to be a key component of its business, contributing 38% from old gold and 62% from non-sourced gold. This initiative supports the shift from unorganised to organised markets, aligning with industry trends.
Additionally, Senco incorporated a wholly owned subsidiary named Sennes, which will drive its value-creation strategy. Sennes will focus on the consumer lifestyle segment, including premium leather accessories, lab-grown diamond jewellery, and perfumes. The company also witnessed an increase in its Average Selling Price (ASP) and Average Transaction Value (ATV), with both growing by 28% and 14%, respectively, during the nine-month period.
Senco Ltd’s showroom network has expanded to 170, including 69 franchisee showrooms, with 12 new showrooms launched in the last nine months. The new openings include stores in Gwalior (MP), Dehradun (UK), Barakar (WB), and Chandaneshwar (Odisha). Notably, the Dehradun store marks the company’s entry into Uttarakhand, which is considered a significant milestone for Senco. The company is also celebrating the centennial mark in its own showroom portfolio.
Looking ahead, Senco Ltd is committed to opening 18-20 new jewellery showrooms during FY25, with plans to establish 10-12 franchisee outlets.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jan 10, 2025, 9:56 AM IST
Nikitha Devi
Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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