P N Gadgil Jewellers 35% QoQ decline in Q1 PAT at ₹35 cr

P N Gadgil Jewellers co. had a 7% decrease in early trading on Monday, October 7, following the announcement of a roughly 35% sequential reduction in its consolidated net profit at ₹35.32 crore for the June 2024 quarter. 

The firm was recently listed. For the quarter ending March 31, 2024, the firm reported a net profit of ₹54.92 crore.
Due to the company's success in growing its store count, its consolidated PAT YoY increased by 60% in the June 2024 quarter. At the same time last year, it declared a net profit of ₹22.15 crore.

P N Gadgil Jewellers Quarter Results: Quick Insights:

• Revenue: ₹1,668.2 crore, up by 32.75% YoY.
• Net Profit: ₹35.32 crore, increased by 60% compared to last year.
• Segment Performance: Jewelry sales driven by flagship brand "PNG" and expanding store network contributed to revenue growth.
• Management's Take: Strong growth driven by increased store openings and product demand; outlook remains focused on Navratri expansion strategy.
• Stock Reaction: Shares down by 6% post-results due to profit-taking.

Management Commentary

The firm opened three new stores in the first quarter of fiscal 2025, according to managing director and CEO Saurabh Gadgil, who also stated that the company anticipates consistent sales growth in the range of 20 to 25% in the upcoming quarters. 

According to him, gold is not a short-term investment, and the company's Gudi Padwa and Akshaya Tritiya experienced incredible increases. Additionally, he stated that the demand and interest from consumers for gold indicate that the upcoming season would be greater.

 
Stock Market Reaction 

P N Gadgil Jewellers share price dropped to ₹695 per share, the lowest since September 20, by as much as 8.17%. 
As of 12:12 p.m., it reduced losses to trade 5.6% down at ₹714.35 apiece. This is in contrast to the NSE Nifty 50 Index declining by 0.4%. 

The day's total traded volume was 0.4 times higher than the 30-day average. The relative strength index was at 38.4.

PN Gadgil Q1-FY25 Operational Updates

P N Gadgil Jewellers introduced two new collections in the first quarter: the Polmi Polki Collection (diamond jewelry) and the Saptam 2 (gold jewelry). In Q1 FY25, the firm added three more outlets in Maharashtra, increasing its total to 39.