Shares of Sky Gold and Diamonds Ltd. gained on Tuesday, October 27, after the company reported a sharp rise in its September-quarter earnings, with consolidated net profit rising 91% year-on-year to ₹128 crore from ₹67 crore in the corresponding quarter last year.

Revenue from operations increased 61% year-on-year to ₹2,390.6 crore in the September quarter from ₹1,484.4 crore a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 89.6% to ₹189.4 crore from ₹100 crore in the year-ago period. The EBITDA margin expanded to 7.9% from 6.7%, indicating an improvement in operating profitability.

Sky Gold approves fundraise of up to ₹1,800 crore
Alongside its results, the company’s board approved raising up to ₹1,800 crore through a qualified institutions placement (QIP), other permissible modes or a combination of these routes. The proposed fundraise is subject to shareholder and other requisite regulatory approvals, with the issue price to be determined later.

The board also approved convening an extraordinary general meeting on November 18 to seek shareholders’ approval for the proposed fundraise.

Fraud incident at subsidiary
In its consolidated financial results, Sky Gold disclosed a fraud incident at its wholly owned subsidiary, Starmangalsutra Private Limited, during the September quarter. The incident involved unauthorised fund transfers amounting to ₹10.70 crore, allegedly carried out using an employee’s company-issued mobile phone and laptop through deepfake methods and coercion.

The company said it had recovered ₹3.35 crore, while the remaining ₹7.35 crore was recognised as an exceptional loss in the consolidated results. A complaint was filed with the cyber police to recover the outstanding amount from the bank accounts of the suspects and beneficiaries.

Separately, Sky Gold said it completed the acquisition of 100% of the issued, subscribed and paid-up equity capital of Purvi Gems & Jewellery (India) Private Limited on October 7, after the end of the September quarter.

Shares of the company were trading 5.1% higher at ₹986.7, following the results announcement on Tuesday. The stock has gained 183% since January this year and more than 174% over the last 12 months.

Courtesy: CNBCTV 18