Madurai, February 5, 2025 – Thangamayil Jewellery Limited (BSE: 533158, NSE: THANGAMAYL) has reported robust financial performance for the third quarter ended December 31, 2024. The company's unaudited financial results highlight significant year-over-year (YoY) growth in revenue, profitability, and operational efficiency.
Key Financial Highlights (Q3 FY25 vs. Q3 FY24)
| Particulars | Q3 FY25 | Q3 FY24 | YoY Growth |
|---|
| Total Sales (₹ Crs) | 1,131 | 895 | +26% |
| Retail Sales (₹ Crs) | 1,095 | 854 | +28% |
| Gold Jewellery Sales (₹ Crs) | 1,000 | 771 | +30% |
| Gross Profit (₹ Crs) | 134 | 97 | +38% |
| EBITDA (₹ Crs) | 83 | 51 | +63% |
| Profit After Tax (PAT) (₹ Crs) | 48 | 28 | +71% |
| EPS (₹ per share) | 17.56 | 10.21 | +72% |
The company posted a
26% YoY growth in total sales, reaching
₹1,131 Cr, supported by
28% growth in retail sales and a
30% increase in gold jewellery sales. Gross profit surged
38% YoY to ₹134 Cr, while
EBITDA grew 63% to ₹83 Cr.
Quarter-over-Quarter (QoQ) Performance (Q3 FY25 vs. Q2 FY25)
| Particulars | Q3 FY25 | Q2 FY25 | QoQ Growth |
|---|
| Total Sales (₹ Crs) | 1,131 | 1,178 | (4%) |
| Retail Sales (₹ Crs) | 1,095 | 1,131 | (3%) |
| EBITDA (₹ Crs) | 83 | (7) | +1285% |
| PAT (₹ Crs) | 48 | (17) | +382% |
Despite a
4% sequential decline in total sales, EBITDA rebounded significantly from a loss of ₹7 Cr in Q2 FY25 to a
profit of ₹83 Cr in Q3 FY25. Similarly, PAT surged
382% QoQ from a loss of ₹17 Cr to a
profit of ₹48 Cr.
Nine-Month Performance (April – December 2024)
| Particulars | 9M FY25 | 9M FY24 | YoY Growth |
|---|
| Total Sales (₹ Crs) | 3,530 | 2,846 | +24% |
| Retail Sales (₹ Crs) | 3,404 | 2,739 | +24% |
| Gross Profit (₹ Crs) | 330 | 270 | +22% |
| EBITDA (₹ Crs) | 167 | 168 | (1%) |
| PAT (₹ Crs) | 87 | 95 | (8%) |
For the nine-month period,
total sales grew 24% YoY, while EBITDA remained largely stable at ₹167 Cr.
PAT declined by 8% YoY to ₹87 Cr, mainly due to
import duty reductions impacting inventory realization.
Operational & Strategic Developments
- Expansion Strategy: The company has signed lease agreements for up to 8 new retail outlets in Chennai, including a flagship store in T. Nagar slated to open on February 23, 2025. At least three more outlets are expected in Q4 FY25.
- Capital Raising: The board has approved a ₹510 Cr rights issue at ₹1,400 per share (face value of ₹10 per share), with a record date of 2:15.
- Customs Duty Impact: No adverse customs duty impact was recorded in Q3 FY25.
- Inventory Management: Gold inventory hedging increased to 91.09% compared to 83.80% last year.
- Legal Update: The ₹70.18 Cr tax dispute case with the Income Tax Department is nearing resolution, with the final judgment awaited.
Management Commentary
Balarama Govinda Das,
Chairman and Managing Director of Thangamayil Jewellery Ltd., stated:
"Our Q3 FY25 performance reflects our strong market positioning, operational efficiency, and expansion drive. The retail sales growth of 28% and EBITDA recovery are positive indicators of sustained demand. We remain committed to expanding our presence in Chennai and further strengthening our financial position through our rights issue."
Outlook
Thangamayil Jewellery Ltd. expects strong growth in
Q4 FY25, driven by:
- The opening of new outlets in Chennai.
- A strong festival season demand.
- Favorable gold price movements and stable hedging strategies.
With its
aggressive retail expansion and
capital infusion through the rights issue, the company is well-positioned for continued growth in FY25.
Stock Performance
Following the results announcement,
Thangamayil Jewellery's stock is expected to react positively, given the
strong profitability recovery and expansion roadmap.
Conclusion
Thangamayil Jewellery Ltd. has demonstrated
resilience and growth in Q3 FY25, with
robust YoY performance and a
turnaround in profitability on a QoQ basis. With
strategic expansions, strong retail demand, and improved margins, the company is on a
strong trajectory for the upcoming quarters.
