Editor’s Note
This article details the strong Q2 performance of Sky Gold And Diamonds Limited, highlighting its financial growth and strategic expansion plans as a leading B2B jewellery manufacturer.
Sky Gold And Diamonds Limited, a leading B2B jewellery manufacturer, has reported a stellar performance for the second quarter, showcasing robust growth and strategic expansions. The company’s financial results and recent developments paint a picture of strong market positioning and ambitious growth plans.
Sky Gold And Diamonds recorded an impressive 93.1% year-on-year growth in revenue for Q2, reaching INR 1,484.00 crores. This substantial increase was accompanied by a remarkable 82% rise in Profit After Tax (PAT), which stood at INR 67.00 crores. The company’s performance demonstrates its resilience and strength in a dynamic market environment.
Metric | Q2 | YoY Growth
Revenue | INR 1,484.00 crores | 93.1%
PAT | INR 67.00 crores | 82%
EBITDA | INR 99.00 crores | 157%
EBITDA Margin | 6.7% | 163 bps improvement
Gross Margin | 8.2% | 170 bps improvement
Volume Growth: The company increased its production volume to 544 kgs per month, marking a 20% growth compared to Q1.
Product Mix: Sky Gold And Diamonds has seen a shift in its product mix, with 18Kt gold business now accounting for 7% of sales, and the studded jewellery segment doubling to 1.5% of total revenue.
Advanced Gold Model: The company’s advanced gold model now stands at 7% in Q2, contributing to improved gross margins.
Working Capital Management: Sky Gold And Diamonds improved its working capital cycle by 7 days in September compared to March, reflecting better inventory management.
Speed Bangle Private Limited: Sky Gold And Diamonds completed the acquisition of Speed Bangle Private Limited (formerly Ganna N Gold), which is expected to strengthen the working capital cycle with its 100% advanced gold business model.
Shri Rishab Gold Acquisition: The company entered into a non-binding term sheet to acquire a majority stake in Shri Rishab Gold, a reputed Mumbai-based jewellery firm known for its strong presence in the mangalsutra segment.
International Expansion: Sky Gold And Diamonds established a new B2B sales office, Sky Souk Jewellery Trading LLC, in Dubai, UAE, to strengthen its foothold in the Middle East market.
The company’s exports have doubled this quarter, reaching approximately INR 150.00 crores, reflecting early success in its international expansion strategy. Sky Gold And Diamonds remains on track to achieve its revenue target of INR 5,400.00 crores, driven by new client acquisitions, operational efficiencies, and enhanced management capabilities.
— Mangesh Chauhan, Managing Director of Sky Gold And Diamonds Limited
Sky Gold And Diamonds Limited’s impressive Q2 results, coupled with its strategic initiatives and expansions, underscore the company’s strong position in the jewellery manufacturing sector. With a focus on operational efficiency, product diversification, and international growth, Sky Gold And Diamonds is poised to capitalize on the evolving dynamics of the gold and diamond jewellery market.
