Thangamayil Jewellery, a notable player in the diamond and gold jewelry sector, has seen impressive growth in its financial performance during the third quarter of FY24-25. The company’s key performance metrics revealed a substantial rise in profits and net sales. The profit before tax (PBT) soared to Rs 67.45 crore, reflecting an increase of 111.7% year-on-year. Similarly, the profit after tax (PAT) reached Rs 48.19 crore, up by 102.1%.
Net sales for the half-year period also showed strong results, totaling Rs 2,313.51 crore, which marks a 22.45% increase compared to the previous year.
However, despite these strong financial indicators, Thangamayil Jewellery faces challenges related to debt management. The company’s Debt to EBITDA ratio stands at 2.77 times, indicating that managing debt remains a concern. Additionally, its long-term growth outlook seems limited, as operating profit growth has averaged 17.26% annually over the past five years.
On a positive note, Thangamayil Jewellery has significantly outperformed the broader market. Over the past year, the company’s stock has provided a 51.90% return, far exceeding the BSE 500 index’s return of 1.93%, highlighting its strong market performance despite the ongoing challenges.
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