Ashish Kacholia Strikes Gold; Secured Stake in company with 700 per cent profit jump, Multibagger stock logged 300 per cent returns

Company secured Rs 99.14 Crore through preferential allotment from prominent investors such as Ashish Kacholia, Bengal Finance & Investments Private Limited, and 16 other investors.

In the second quarter of fiscal year 2023-24, Sky Gold Ltd exhibited robust financial performance, with total revenues reaching Rs 396.86 crores, marking a significant YoY increase of 30.50 per cent. The EBITDA showed a remarkable surge, escalating to Rs 16.14 crores from Rs 4.77 crores in Q2 FY23, reflecting an outstanding 238.42 per cent YoY growth. The EBITDA margin also experienced a substantial boost, climbing to 4.07 per cent, representing a 250-basis points improvement over the previous year. The Profit After Tax demonstrated an exceptional surge, reaching Rs 7.27 crores, reflecting an impressive YoY change of 712.91 per cent. The corresponding PAT margin witnessed a notable increase, reaching 1.83 per cent, a 154-basis points improvement. Earnings per Share (EPS) soared to Rs 6.76, showcasing an extraordinary YoY growth of 714.46 per cent.

In the first half of fiscal year 2024, Sky Gold Ltd exhibited robust financial performance, marked by a notable increase in Total Revenues, which surged to Rs 773.38 crores, reflecting a substantial growth of 25.33 per cent compared to Rs 617.05 crores in H1 FY23. The EBITDA soared to Rs 35.60 crores, a remarkable YoY increase of 172.06 per cent from Rs 13.08 crores, and the EBITDA margin expanded significantly by 248 basis points to 4.60 per cent. The Profit After Tax witnessed a substantial upswing, reaching Rs 17.94 crores, demonstrating an impressive YoY growth of 190.10 per cent from Rs 6.18 crores, with a PAT margin of 2.32 per cent, reflecting an increase of 132 basis points. The Earnings Per Share also surged to RS 16.70, marking a substantial YoY growth of 189.93 per cent from Rs 5.76.

Management Commentary

Speaking on the occasion Mr. Mangesh Chauhan, Managing Director and Chief Financial Officer of Sky Gold Limited said "During the eventful Q2 FY24, Sky Gold Limited successfully transitioned to our new 81,000 Sq. ft. manufacturing facility in Navi Mumbai from 18,000 Sq. ft. facility in Mulund, boasting a processing capacity to 750 Kg of gold per month. Our Q2 performance has been highly encouraging, evident in our robust financial results. We're particularly pleased with the growth in revenue and profitability, accompanied by notable improvements in margins at both the EBITDA and PAT levels. These positive outcomes are attributed to enhanced operational efficiency.

The move to our new facility has opened avenues for margin improvement, thanks to its state-of-the-art features, including the latest filtration equipment that aids in minimizing gold loss during the production process. In a strategic move for future expansion, we secured Rs 99.14 Crore through preferential allotment from prominent investors such as Ashish Kacholia, Bengal Finance & Investments Private Limited, and 16 other investors.

Looking ahead to the remainder of FY24 and beyond, we are optimistic about leveraging our recent expansion, successful fundraise, strong market demand, and the commitment of our capable team. We are well-positioned to seize opportunities and deliver sustained growth."

Stock Performance

Sky Gold Ltd has demonstrated remarkable performance over the past year, with a YTD return of 291.66 per cent. The stock's strong performance extends to shorter time frames, with a 3-month return of 193.93 per cent and a 6-month return of 144.21 per cent. While the 1-month return of 36.02 per cent is the lowest among the periods considered, it remains positive, indicating a consistent upward trend. The company was listed on the stock exchange on January 6, 2023.

About Company

Sky Gold Limited specializes in the creation, production, and distribution of gold jewellery. They employ a B2B model, catering primarily to mid-range jewellers and boutique stores that use online platforms and physical stores to reach their clientele.

Disclaimer: The article is for informational purposes only and not investment advice.