Thangamayil Jewellery will expand its store network using funds raised through an upcoming rights issue. said Vice President Finance and Accounts, SM Lakshmanan. The company expects to raise ₹510 crore by the end of March 2025.

So far in the financial year 2024-25 (FY25), the company has opened four showrooms, including its first outlet in Chennai. The flagship showroom is scheduled to launch on February 23, with three more outlets expected by March 31. This will bring the total number of new showrooms to eight for the financial year.

“The company goes ahead with the expansion for the financial year 2025-26 (FY26) in and around Chennai city and in a few pockets in the state of Tamil Nadu. So, the money which is going to be collected in terms of rights is going to be used for this onward expansion,” Lakshmanan said.

Discussing the impact of gold prices on margins, he stated that Thangamayil has increased its hedging policy from 65-75% (post-COVID) to 85-90% now. The company aims to maintain this level despite fluctuations in gold prices.

On the financial front, Lakshmanan said Thangamayil reported revenue of ₹3,530 crore for the nine months of FY25, marking a 24% year-on-year (YoY) growth in retail revenue. Gold volumes increased by 4%, while diamond volumes rose by 14%. The company expects to close the financial year with a stronger performance than its nine-month YoY growth.

“The company is confident of maintaining EBITDA margin at 6% plus going forward,” he added.

In the October-December quarter of 2024 (Q3FY25), Thangamayil posted a revenue increase of 26.5% YoY to ₹1,131.64 crore, with earnings before interest, taxes, depreciation and amortisation (EBITDA) surging 65.6% to ₹82.35 crore. Margins improved from 5.6% to 7.3%, while profit after tax (PAT) grew by 72.1% to ₹48.19 crore.

Thangamayil’s market capitalisation stands at ₹5,463.96 crore, with its shares gaining nearly 44% over the past year.

Courtesy: CNBC TV 18