SENCO - Senco Gold Limited Share Price

1. Question: "Can you update on the status of the levels of GML (Gold Metal Loan) or non-GML borrowing and cash flows as of date, or as of October?" Answer: "As of now, the GML mix decreased from around 65% to 51%. This was due to volatility in gold prices, prompting us to rely on Cash Credits instead to avoid margin calls. Currently, the GML levels stand at about 54%-55% as of October, considering the ongoing risk of margin calls."

2. Question: "Would you share the current trends observed in retail level sales versus company-level sales?" Answer: "The growth we reported at the retail level mirrors what we see company-wide. We believe that the divergence won't happen; the notable sales growth we've recorded is consistent across both levels."

3. Question: "Why did Senco Gold experience slower growth despite peers posting strong results?" Answer: "The eastern region, which accounts for 60-65% of our business, faced unique challenges such as cultural events and GST adjustments that led to a slower growth trajectory in Q2, while many peers did not have similar exposures."

4. Question: "Can you clarify the challenges faced with margins in comparison to previous quarters?" Answer: "In Q1, our margins peaked due to favorable hedging conditions. However, in Q2, with a stable hedging ratio of 70%, our EBITDA stabilized at expected levels. While Q1 had notable gains, Q2 reflected stable profitability amidst ongoing operational ratios."

5. Question: "What is the outlook for the wedding season and how will it influence your sales?" Answer: "With a strong number of weddings from November through March, we anticipate demand to remain robust. Our strategy will focus on capturing both wedding and gifting markets, contributing positively to our sales momentum."

6. Question: "How has consumer behavior shifted towards lightweight jewelry in the current market?" Answer: "Consumers are increasingly opting for lighter-weight jewelry options and exploring alternatives like 9-karat and 14-karat items. This shift allows us to meet varied budgetary needs and ensure continual purchasing despite high gold prices."

7. Question: "Could you elaborate on the recent free cash flows and future profit generation strategy?" Answer: "Our operating cash flows appear negative due to seasonal factors, but this is managed through effective working capital borrowings. We maintain a structured approach to balance growth with financial viability, thus securing our growth targets."

8. Question: "Could you share insights on gross margins in studded jewelry versus gold jewelry?" Answer: "While we're unable to share exact figures due to competitively sensitive information, we can confirm that our studded jewelry is performing well, enhancing overall margins through better pricing strategies driven by innovative designs."

9. Question: "How are you ensuring that operating cash flow won't hinder growth?" Answer: "We're leveraging both retained earnings and working capital financing to facilitate growth. Our strategy entails building on cash flow management, especially during peak seasonal demands, which mitigates any hindrance to our operational capabilities."

10. Question: "What are your expectations for studio ratios and sales in upcoming periods?" Answer: "We aim to increase the stud ratio toward 13-13.5% by FY'27 while ensuring that the product mix stays attractive comes the wedding season. Our robust design pipeline and marketing strategies will support this aim effectively."