Sky Gold and Diamonds (541967) Q2 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 768.8 crore (₹76,884.84 lakhs) in Q2 FY25, up 94% year-over-year, with PAT at INR 36.7 crore (₹3,671.22 lakhs), up 405% year-over-year.

• Strong demand driven by festive and wedding seasons, with a positive outlook for upcoming quarters.

• Completed acquisition of Starmangalsutra Private Limited and Sparkling Chains Private Limited, expanding product portfolio and market presence.

• Raised INR 270 crore (₹26,999.98 lakhs) through QIP to support growth, capacity enhancement, and subsidiary expansion.

• Launched new initiatives including a client ordering app and ESOP scheme, and made key leadership hires.

Financial highlights

• Q2 FY25 revenue: INR 768.8 crore (94% YoY growth); PAT: INR 36.7 crore (up from INR 7.3 crore YoY); H1 FY25 revenue: INR 1,491.9 crore (93% YoY growth); H1 PAT: INR 57.9 crore.

• Q2 FY25 EBITDA: INR 38.8 crore (154% YoY growth); EBITDA margin: 5% (up 119 bps YoY); gross margin: 6.5%.

• Export revenue contributed 9% in Q2 FY25; domestic 91%.

• Basic EPS for Q2 FY25 was ₹34.58, up from ₹6.76 in Q2 FY24.

• One-time other income from sale of legacy equity investments boosted results.

Outlook and guidance

• FY25 revenue guidance: INR 3,300 crore (INR 2,700 crore core, INR 600 crore subsidiaries); FY27 target: INR 6,300 crore.

• Q3 revenue expected at INR 1,000 crore; export share to rise to 12-13% in FY25 and 15% in FY26.

• Volume guidance: 375-400 kg/month by FY25 end, 750 kg/month by FY27.

• Long-term EBITDA margin guidance: 5-5.5%; PAT margin target: 3.5% in FY26, 4% in FY27.

• Additional investments of up to ₹70 crore each in both subsidiaries approved in October 2024.