Sky Gold and Diamonds (541967) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue reached ₹723 crore, up 92.4% year-over-year, with PAT at ₹21.2 crore (+98.9%) and EBITDA at ₹37.3 crore (+100%).

• Capacity utilization and turnover improved, aided by technology and automation, supporting operational leverage.

• Strategic acquisitions of Starmangalsutra and Sparkling Chains expanded the addressable market, product offerings, and capacity.

• Focus remains on corporate clients, aiming to increase their share to 100% over three years.

• Total comprehensive income for Q1 FY25 stood at ₹3,002.50 lakhs, a significant increase from the previous quarter.

Financial highlights

• Q1 FY25 revenue reached INR 723 crore, up 92% year-over-year and 40% sequentially.

• PAT for the quarter was INR 21 crore, nearly doubling year-over-year.

• Gross margin stood at 6.5%, with volatility attributed to product mix changes.

• EBITDA was INR 37 crore, up 100% year-over-year, with EBITDA margin at 5.2%.

• Basic and diluted EPS for Q1 FY25 were ₹16.04 and ₹15.97, respectively, compared to ₹9.93 in Q1 FY24.

Outlook and guidance

• FY25 revenue guidance is INR 3,300-3,400 crore, with PAT margin targeted at 3.5%.

• Long-term revenue target of INR 6,300 crore by FY27, with 100% capacity utilization.

• Export revenue share expected to sustain at 9-10% for the year.

• Diamond jewelry sales projected to reach 10-15% of turnover in four quarters.

• Strategic realignment includes dissolution of the foreign subsidiary, with no material impact on financials.