Senco Gold Limited — Important, 20-11-2024: General Updates

**Financial Highlights:** For H1 FY25, Senco Gold reported revenues of ₹29,044 Mn, a significant 18.5% increase year-on-year. Their EBITDA improved by 31.5% to ₹1,606.62 Mn, and the profit after tax (PAT) rose 60% to ₹634 Mn. The EBITDA margin, however, reflected a drop to 5.5%. The stud ratio reached 11%, indicating a stable demand for studded jewellery.

**Strategic Initiatives and Growth Drivers:** The company aims to add 18-20 showrooms in FY25, maintaining an aggressive expansion strategy. Their focus on lightweight jewellery has proven beneficial, catering to the younger demographic while launching multiple initiatives to enhance operational efficiency through technology.

**Business Developments:** Senco has expanded its geographic footprint, with a total of 167 showrooms, including 61 franchisee-operated locations. The brand's marketing strategy emphasizes a digital presence through innovative platforms like "My DigiGold" and "My DigiSilver," and it aims to attract Gen Z and millennials with modern shopping experiences.

**Market Position and Competitive Advantage:** Recognized as India's 2nd most trusted jewellery brand, Senco's asset-light franchise model gives it a competitive edge in a rapidly growing segment. Its significant presence in both metropolitan and tiered cities strengthens its market position.

**Investor Implications:** With consistent revenue growth projecting a positive outlook for FY25 amid an expanding product portfolio and strategic geographic expansion, Senco Gold represents a compelling opportunity for investors looking to tap into the thriving jewellery sector in India.