Thangamayil Jewel

The company posted a good set of numbers for Q3FY16, thanks to the reduction in costs. Its net sales for the quarter was down 115 (YoY) at Rs.336 crore but total costs dropped 12% and this helped recoup the bottomline. Raw material cost, which is the purchase of gold is what helped – it was down 17%. EBITDA was up 83% at Rs.11 crore and margins doubled up from 1.54% to 3.28%. The company posted a turnaround – from a loss of Rs.2 crore in previous Q3 to a profit of Rs.2 crore in current Q3. In Q2, net profit was at Rs.4 crore.

During the quarter, working capital exposure was brought down by Rs.35 crore. Volume of gold ornaments fell 12% and silver products fell 5%. In the coming months, the company expects interest costs to come down as it has arranged more line of metal credit, to replace the existing cash credit.