Shares of Senco Gold plunges the most since listing after weak Q3 earnings

Shares of Senco Gold tumbled as much as 19.2% in Friday’s trade, marking its biggest fall since listing. The jewellery maker, which debuted on Dalal Street on July 14, 2023, saw its stock drop to a low of ₹361.40 on the NSE. The last time the stock experienced a similar decline was in October 2024, when it plunged 19% in a single session.

The company’s net profit for the December quarter plunged 69.3% year-on-year (YoY) to ₹33.5 crore, down from ₹109.3 crore in the same period last year. Similarly, the adjusted profit after tax (PAT) dropped 50.9% YoY to ₹53.7 crore.

The jewellery maker attributed the decline in EBITDA and PAT margins to the impact of customs duties but remains optimistic about achieving a 7%-8% EBITDA margin going forward. “There was an impact of ₹70 crore in Q3 due to customs duty and hedging costs,” said Suvankar Sen, MD and CEO of the company, in an interaction  with CNBC-TV18. He further stated that the additional cost impact was accounted for in Q2 and Q3 of FY25, ensuring there will be no impact in Q4FY25.

Alos read: Senco Gold shares fall after Q3 update, give up all of Tuesday’s gainsFor the financial year 2025, the company expects revenue growth of 18-20% with an EBITDA margin of 7%. The EBITDA margin guidance for FY26 stands at 7-8%. According to the company, studded jewellery witnessed weak demand in Q3 but is showing signs of improvement in Q4.

Also Watch | Suvankar Sen, MD and CEO of Senco Gold discusses October-December quarter 2024 (Q3FY25) figures in an interview with CNBC-TV18.

Senco Gold’s stock is currently trading at ₹363.70 on the NSE, down 18.6% from its previous close