Revenue and Profit Growth
Sky Gold & Diam. has seen its net sales surge from ₹785.70 crores in March 2022 to ₹3,548.02 crores by March 2025, reflecting a compound growth trajectory that underscores strong market demand and operational expansion. Total operating income mirrored this trend, rising in tandem with net sales, as the company maintained zero other operating income throughout the period.
Operating profit before depreciation and interest (PBDIT) excluding other income increased markedly from ₹20.29 crores in March 2022 to ₹196.37 crores in March 2025. Including other income, operating profit rose to ₹229.33 crores in the latest fiscal year, a substantial improvement from ₹30.85 crores three years prior. This growth was achieved despite rising raw material costs, which climbed from ₹774.03 crores to ₹3,393.24 crores, reflecting the scale of operations.
Profit after tax (PAT) also showed a strong upward trend, increasing from ₹16.95 crores in March 2022 to ₹132.66 crores in March 2025. The PAT margin improved from 2.16% to 3.74%, indicating enhanced profitability relative to sales. Earnings per share (EPS) rose to ₹9.04 in March 2025 from ₹1.73 in March 2023, although the EPS in March 2022 was notably higher at ₹15.78, likely influenced by changes in equity capital and share base.
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Balance Sheet and Financial Position
The company’s total assets expanded significantly from ₹175.15 crores in March 2022 to ₹1,356.84 crores in March 2025, reflecting aggressive asset accumulation and investment. Shareholder’s funds increased from ₹76.74 crores to ₹683.80 crores over the same period, supported by a rise in equity capital from ₹5.37 crores to ₹146.70 crores and reserves growing to ₹531.84 crores.
Long-term borrowings remained relatively stable, hovering around ₹16-17 crores, while short-term borrowings surged from ₹73.87 crores to ₹588.46 crores, indicating a shift towards more working capital financing. Total liabilities rose in line with asset growth, reaching ₹1,356.84 crores by March 2025.
On the asset side, net block (fixed assets net of depreciation) increased from ₹4.93 crores to ₹79.43 crores, signalling capital expenditure and capacity expansion. Non-current assets more than quintupled, driven by investments and advances. Current assets also saw a substantial rise, particularly inventories and sundry debtors, which grew to ₹396.86 crores and ₹452.19 crores respectively, reflecting higher operational scale.
Cash Flow and Liquidity Trends
Cash flow from operating activities remained negative in recent years, with ₹-273 crores in March 2025, reflecting increased working capital requirements. Changes in working capital were a significant drag, with a ₹-434 crores impact in the latest year. Investing activities also showed consistent outflows, indicative of ongoing capital investments.
Financing activities provided substantial inflows, peaking at ₹426 crores in March 2025, which helped offset operational cash deficits and support growth initiatives. Despite these pressures, the company maintained a modest closing cash and bank balance of ₹10 crores in March 2025, up from ₹1.38 crores in March 2022.
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Summary and Outlook
Over the four-year period ending March 2025, Sky Gold & Diam. has exhibited strong top-line growth and improved profitability margins, supported by expanding operational scale and strategic investments. The company’s balance sheet reflects a growing asset base and enhanced shareholder equity, although rising short-term borrowings and negative operating cash flows highlight the need for careful liquidity management.
Investors should note the company’s ability to sustain profitability while scaling operations, alongside its ongoing capital expenditure and working capital demands. The upward trajectory in earnings per share and reserves suggests a positive fundamental outlook, positioning Sky Gold & Diam. as a noteworthy player in the gems and jewellery sector.
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