Sky Gold reports solid results for Q1FY25

PRNewswire

Mumbai (Maharashtra) (India), August 16: Sky Gold Limited (SGL), one of the leading jewelery companies based in Mumbai engaged in the business of designing, manufacturing and marketing of gold jewelery has reported its results unaudited financial statements for the quarter ended June 30, 2024.

T1FY25 Consolidated snapshots of financial performance (yearly)

* Revenue from operations grew 92.4% YoY to Rs. 723.0 crores

* EBITDA increased by 100% to Rs. 37.3 million euros

* Profit after tax (PAT) increased by 98.9% to RS. 21.2 million euros

* Sales volume for the quarter was 349 kg/month and profit is growing ~2x per year

The main financial aspects:

Operational milestones:

* Consolidated income from operations for Q1 FY25 stood at Rs. 723 Crs, registering a growth of 92.4% over last year

* EBITDA for the current quarter was Rs. 37.3 Crs, registering a growth of 100% annually

* PAT for Q1 FY25 was at Rs. 21.2 Crs, registering an increase of 98.9% compared to the same quarter of the previous year. Thus, recording the 2nd consecutive quarter of two-fold growth in PAT on a year-on-year basis.

Commenting on the results, Mangesh Chauhan, Managing Director and Chief Financial Officer, said:

“Sky Gold Ltd posted exceptional growth in the first quarter of FY25. Our revenue from operations grew 92.4% year-on-year to Rs 723 crore. EBITDA increased by 100% to 37.3 million lei, and our profit after tax increased by 98.9% to 21.2 million lei. This outstanding performance is attributed to our recent expansion to a larger facility in Navi Mumbai, which has significantly increased our production capacity.

In Q1 FY25, our capacity utilization was 33% of total capacity (including additional capacity from acquisitions). This highlights our ability to expand operations and strengthen our position in the gold jewelery market both in India and globally. The recent integration of Starmangalsutra and Sparkling Chains into Sky Gold is perfectly aligned with our growth strategy. These acquisitions are expected to enhance our margins through the synergies they bring to the business. By consolidating our operations, we are expanding our total addressable market and expanding our product presence in numerous retail outlets.

Moving forward into FY25, we plan to increase capacity utilization at our new facility, invest in IT and automation, implement an ERP system, strengthen our mid-sized and regional sales teams, and optimize our financial position by using loans from gold to improve. profitability and reducing debt costs.

We are confident that these initiatives will help us achieve our target of INR 6,300 crore in revenue by FY27, while targeting a capacity utilization of 1050 kg from 750 kg per month after our recent acquisition over the next three years .”

Sky Gold also plans to raise funds to increase equity capital. The recent cut in import duties on gold in the Union Budget has triggered a surge in demand for gold jewellery, with more consumers now preferring organized markets over unorganized markets. These events are expected to further strengthen the company’s position in the industry.

Sky Gold Ltd is focused on increasing operational efficiency and expanding market presence. Investments in IT and automation will facilitate expanding operations and improving productivity. Implementing an ERP system will streamline processes and improve decision-making capabilities.

To support its growth ambitions, Sky Gold is also strengthening its middle management team and regional sales force. It reduced its percentage of guarantees to free up capital from 50 to 40%. The company is optimizing its financial structure through gold metal loans, which will lead to better profitability and lower borrowing costs.

About Sky Gold Limited:

Established in 2008, Sky Gold Limited is one of the leading jewelery companies based in Mumbai. The company specializes in 18 and 22 carat gold light jewelry, producing a variety of designs including plain gold jewelry, studded gold jewelry, diamond jewelry, and Turkish jewelry. Operating on a B2B model, Sky Gold partners with leading jewelery retailers such as Malabar Gold and Diamonds, Joyalukkas, Kalyan Jewellers, GRT Jewelers and Senco Gold, making its products available in over 2000 showrooms across India.

SGL’s state-of-the-art 81,000 sq ft manufacturing facility in Navi Mumbai, equipped with German and Italian machinery, has a processing capacity of 750 kg gold per month. The company boasts a design library of over 500,000 designs of rings, bracelets, bangles, fancy pendants, earrings and more. Sky Gold was listed on the BSE SME platform in October 2018 and migrated to the main board of BSE and NSE in January 2023.

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