Thangamayil Jewellery - Q1 Result

The numbers posted by Thangamayil Jewellery is way above my expectations.

Revenues have grown almost 20% YoY as well as QoQ, even in bad times, largely because of the expansion in form of opening new branches.

Net Profit stands at unbelievable 13.75 Cr, where many expected another loss in this quarter.
In any case, it stands at a net profit of 13.75 Cr Vs a loss of 5.72 Cr QoQ.
On YoY basis, net profit is down to 13.75 Cr from 15.13 Cr, which is marginal, and expected as the gold situation was way better last year.
EPS have gone up from (-)4.18 to 10.03 QoQ and from 11.03 to 10.03 YoY.

Company says that it accounted the entire publicity and advertising expense incurred in the current quarter as per the Accounting Standards Requirement. Whereas the corresponding quarter of last year, a sum of 5.35 Cr were transferred to Deferred Revenue Expenditure. If the same treatment is given for the current quarter, the profits would have been higher by 1.26 Cr on comparable basis.

Company started 4 new branches this quarter and they all are performing satisfactorily.

Link: Click Here

My Views: Excellent numbers have been posted by the company, and I would recommend a strong hold/buy at current levels. With more and more branches coming up, we can expect a very strong performance by the company in coming quarters. The only worrying factor is the prices of gold which is fluctuating heavily, but with their expansion, and probably, very good demand in south india, I dont think company will face any problems in growing their business.