Gold stock held by Ashish Kacholia engaged in designing and manufacturing a wide range of pieces of jewellery hit a 5 percent upper circuit upon posting a 99 percent jump in Net Profits in Q1FY25.
Price Action
With a market capitalization of Rs. 3,123 Crores, the shares of Sky Gold Limited hit a 5 percent upper circuit at Rs. 2,359.80 per equity share, from its previous day’s close price of Rs. 2,247.45.
Q1FY25 Results
Its Revenue from operations grew by 93 percent YoY from Rs. 375.69 Crores in Q1FY24 to Rs. 723.02 Crores in Q1FY25 and it grew by 41 percent QoQ from Rs. 513.37 Crores in Q4FY24 to Rs. 723.02 Crores in Q1FY25. The Sales volumes for the quarter stood at 349 Kgs/ month and profit soared ~2x YoY and capacity utilization stood at 33% of the total capacity.
Its Net Profit grew by 99 percent YoY from Rs. 10.67 Crores in Q1FY24 to Rs. 21.22 Crores in Q1FY25 and grew by 56 percent QoQ from Rs. 13.61 Crores in Q4FY24 to Rs. 21.22 Crores in Q1FY25. Its Net Profit Margin increased from 2.83 percent in Q1FY24 to 2.93 percent in Q1FY25.
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Fund Raising
In Addition, the Board of Directors of Sky Gold Limited has considered and approved raising funds for an aggregate amount not exceeding Rs. 270 Crores in one or more tranches by way of issuance of such number of equity shares having face value Rs. 10 each by way of preferential issue or Qualified Institutional Placement
Future Guidance
Moving forward in FY25, it plans to increase capacity utilization at its new facility, invest in IT and automation, implement an ERP system, strengthen mid-management and regional sales teams, and optimize the financials through the use of gold metal loans to improve profitability and reduce borrowing costs.
It is confident that these initiatives will help achieve its goal of Rs. 6300 Crores in revenue by FY27 while aiming for capacity utilization of 1050 Kgs from 750 kgs post its recent acquisition per month within the next three years.
About the Company
Sky Gold Limited is one of the leading jewellery companies based in Mumbai, specializing in lightweight jewellery of 18 & 22 Carat gold, manufacturing a variety of designs including plain gold jewellery, studded gold jewellery, diamond-studded jewellery, and Turkish jewellery.
Operating on a B2B model, Sky Gold collaborates with leading jewellery retailers like Malabar Gold and Diamonds, Joyalukkas, Kalyan Jewellers, GRT Jewellers, and Senco Gold, making its products available in over 2000 showrooms across India.
It has a state-of-the-art 81,000 sq ft manufacturing facility in Navi Mumbai, equipped with German and Italian machinery, and has a processing capacity of 750 kg of gold per month. The company boasts a design library of over 500,000 designs of rings, bracelets, bangles, fancy pendants, earrings, and more.
Ace Investor
Ace Investor Ashish Kacolia holds a 3.05 percent stake in the company consisting of 4.04 Lakh Equity shares. He made a fresh position in the company in December 2023 by purchasing a 3.09 per cent stake consisting of 4.04 Lakh Equity shares.
Written by: Bharath K.S
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