Senco Gold Limited More Than Doubles Profit in H1

News Hungama:

290.1 Cr, while PAT surged by 80% YoY to Rs. 153.4 Cr. Our H1 EBITDA margin expanded YoY by 310 basis points to 8.6% driven by a combination of strong brand image, pricing edge supported by improved product mix and higher stud ratio of 12%. Our inventory levels increased to Rs. 4309.2 Cr mainly due to the gold price rise of GML and stocking for Dhanteras Sale & New showrooms opened. Despite the capital requirements for this inventory, our balance sheet remains robust with Net Debt at Rs. 1578.4 Cr and a comfortable Debt-to-Equity ratio of 0.75 (including GML). Looking ahead, the strong festive sales in October 25 driving a YTD retail growth of 25% give us confidence for solid H2 performance. As we move into H2, our priority is to maintain this financial discipline, build up stock for upcoming wedding seasons and Q4 and ensure cash flow availability for business growth. The GML availability has improved, and we will enhance GML level back to 65% level to improve the blended ROI and maintain strict vigil on various levers of growth and operating efficiency to enhance ROE and ROCE by year-end.”