34% down in 2 days—Why Senco Gold shares are crashing
What's the story
Senco Gold's shares have plummeted a whopping 15% to ₹304.5 in today's market session. The fall has taken the stock value below its IPO price of ₹317. The decline comes after a 19% fall on Friday, taking the overall decline to a concerning 34% in just two trading sessions. The last time the company saw such a major drop was in October last year when it witnessed a single-session tumble of 19%. But why is the stock in free fall?
Financial performance
Q3 net profit dips by 69%
Senco Gold reported a massive 69% year-on-year decline in its net profit for the December quarter, which stood at ₹33.5 crore. This is a sharp decline from ₹109.3 crore in the same period last year. Meanwhile, the adjusted profit after tax (PAT) also declined by 50.9% YoY to ₹53.7 crore. The disappointing Q3 performance appears to have triggered a wave of selling pressure, as investors react to the company's financial figures.
CEO statement
Customs duties impact Senco Gold's financial performance
Suvankar Sen, the MD and CEO of Senco Gold, blamed the decline in EBITDA and PAT margins on customs duties. He said these duties had a ₹70 crore impact in Q3 on account of customs duty and hedging costs. For FY25, Senco Gold expects 18-20% revenue growth with a 7% EBITDA margin. The company also expects EBITDA margin guidance for FY26 at 7-8%.