Senco Gold Ltd. (NSE: SENCO) Q3 2025 Earnings Call dated Feb. 14, 2025
Corporate Participants:
Unidentified Speaker
Sanjay Banka — Chief Financial Officer
Suvankar Sen — Managing Director and Chief Executive Officer
Analysts:
Praveen Kumar — Analyst
Mook Ranka — Analyst
Naveen Trivedi — Analyst
Unidentified Participant
Navin Matta — Analyst
Devanshu Bansal — Analyst
Videesha Seth — Analyst
Presentation:
Unidentified Speaker
[Starts Abruptly] In Q1, Q2 and Q3 all taken together. So this entire loss on account of hedging and similarly gold metal loan also we — a major partner that we keep unfixed that all cost is loaded on the inventory, while there will be a realization gain on account of increase in the gold prices, it is countered by the loss on account of hedge position. Net-net, due to the of impact, the hedge accounting impact and hedge accounting does not give you a perfect result within the same quarter.
So what I’m trying to explain is that due to the hedge accounting, due to the price variations, due to the hedge percentages, the result in the quarter cannot be net-debt zero. So even if I 100%, the result cannot be zero. While I understand that other dealers may not have — do not have a major variance, but we are expanding our vision of variance.
So we have given two numbers in the slide number 32. One is the hedging loss, which was INR94 crore in-quarter one, INR2 crore in-quarter two and INR6.5 crore again INR89 crores and then there is custom duty impact in Q2 and Q3. So these two unique events, the margins of the current year are not in-line with the past. We once again say in future also, the margin may not be exactly same with the previous quarter because the events are entirely different.
But over three to four quarters, you will always find 14% to 15% gross margin and 7% to 8% EBITDA. So having said that, while our adjusted gross margin for nine months is 6.1%, which we have explained the reason, we feel that the custom rate impact is always back. The market is good. Despite the rising prices, consumer continue to be interested. We hope and confident that in Q4, we will deliver 7% to 7.5% gross margin demand is picking-up and with the same confidence 7.5% EBITDA margin I’m saying. And then with that confidence, we will look at delivering similar gross margin and EBITDA in future as well.
And one more point which you want to say that the growth which we have achieved in the current year, which we’ve reported at 27% in Q3 and 22% Y-o-Y nine months, that growth has been achieved in all the segments. So like in, the growth is 21%. In that diamond jewelry, it has grown by 9%.
So even though the ratio has come down, but since the absolute volume, the total base is increasing, that’s why optically the ratio is looking down, 30% 5% growth will happen in silver jewelry and even our costume jewelry rents, which is for the youngsters and Jenji, that has also grown by 18%. So we are very happy with the business.
Yes, the business cannot be looked from 1/4 to another. So we assure you that we are conducting the business with the best of our efforts and the management team is fully committed, hedging is fully done. And then we request that the keep of safe interest in us. And if you have any query, we’ll be very much pleased to address to your queries, particularly on the gross margin variance or EBITDA variance. Thank you very much.
Operator
Sir, should we open the floor for the Q&A session now?
Unidentified Speaker
Yes, please. Yes, please.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask questions may press star and one on their touchstone form. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only handsets while asking a question.
Ladies and gentlemen, we will wait for a moment while the question queue assemblesthe first question is from the line of Praveen Kumar, an Individual Investor. Please go-ahead.
Praveen Kumar
Hi, can you hear me? Yes, sir, you’re audible. Yes, so good morning, sir. Sir, my question is on your Q3 update versus the current results. And in the Q3 update you mentioned is a 22% growth and now you’re saying 27% growth. And why is this conclusion and why is this deviation? Can you help me understand please?
And my second question is on the — yeah, my second question is on your press release and you said you have new startups and subsidiaries. But when I dig it deeper, you have only fashion as the only subsidiary. What are those extra subsidiaries? Please help me understand. Thank you.
Unidentified Speaker
Right. So to thank you very much, sir. To answer to the first part of the question, the 22% growth has been the retail sales growth that we have announced when the press release after the — after the quarter ended. But the 27% growth that we are seeing is because it’s consolidated. So there is — we have our multiple companies, the mother company, Senate Fashion, the Dubai company, we have a subsidiary called, which is running two factories. So all put together, it is 27% growth. So that is the reason why in the press release in the — after ending the particular quarter, we said 22%, which is mostly retail and that’s what we tried to mention and 27% is consolidated.
And the second part is the opening of the company, which is Fashion. Yes, that is the new subsidiary company that has opened in this particular quarter that I have been speaking about. That is it. So this is to answer to your question. Okay. So I can comment on your first question. So Pravit, let’s to add here, we have already launched the brand and opened four — we had opened four stores also in Canada.
So the objective was to keep it a separate legal entity and have a more focused operation. So we have a very long-term plan for our lifestyle business. And with that objective, this entity has been created, which will house our aspiration for lifestyle business.
Praveen Kumar
Yes. So you’re saying something on the first point?
Unidentified Speaker
Yeah, yeah, sure.
Praveen Kumar
Sir, if it was if it was clearly mentioned the retail growth of 50%, we could have been well-aligned with your thoughts as well. But now that led to confusion, 22 versus 27%, I request you to not to maintain this kind of confusion going-forward. My humble request.
Unidentified Speaker
Okay. Yes, sir. Thank you. Thank you.
Operator
Thank you.
Praveen Kumar
Thank you, sir.
Operator
Yeah. Participants, you may please press star and want to ask questions. The next question is from the line of Jerry, — Jaiver, an Individual Investor. Please go-ahead.Javier, I have unmuted your line. Please proceed with your question as the current participant is not answering, we will move on to the next question, which is from the line of Mook Ranka from Aurum Capital. Please go-ahead.
Mook Ranka
Hello. My question was on the competitive aspect of the business. What we have observed is that a lot of branded jewelry players have done QYPs and IPOs and they are using that money to open fresh stores. And when you open a new-store, what you have to do is to you have to offer discounts and is that — is that something which is affecting margins as an industry-wide and this is a temporary phenomenon and it should subside in the future.
So that’s my question..
Unidentified Speaker
So thank you for your question. So it all depends on whichever — for whichever company it is applicable that in which part of the country you’re opening a new-store. So if you are opening a new-store in an existing market, which is your strong market, there is already a sense of loyalty and a customer-base, then your new-store does, you know, does make you give some offer or discount, but not to that extent on a continuous basis to attract footfall from customers.
But if you open a new-store in a market in which you are going there as a challenger brand and you want to capture more market-share in that particular market, then you will need to give a higher discount and offer and keep your prices lower to attract the consumers and have a market-share. So it is dependent on that. And as a strategy, what we at SENCO are trying to do is that in terms of our expansion, we have always been saying that East India is our strength and North India is our focus market in terms of the future growth potential.
And therefore, 60% to 70% of our new stores, we will continue to focus on growing in East India and 20% odd we will grow in North India and remaining 10% in West and South. So with that strategy in mind, like for example, in this particular quarter, which is quarter-four, which is running, we have opened two stores in an emerging kind of a suburb of Calcutta. And just to give you an example that you know, we have seen that the numbers of those stores, even though they are new stores, the first day sales have crossed INR1
Unidentified Speaker
Crore or 50 lakh 60 lakhs for another store. So therefore, the consumers feel happy that, yes, the brand has come closer to their house and in their locality and that will allow them not to go to another competitive store, but visit that particular store. So this is the quality — that this is what we see when we open in a strong market area.
And at the same time, when you open, we’ve opened a store in Dehradun. And that is a market which is new for us, our entry into the hill area. So that we are having to spend on marketing, brand-building, reaching out to customers, giving them offers, discounts, talking about the brand. And that will — that is taking a little more energy, but it will give us returns in the future. This is how the balancing out is happening.
Mook Ranka
Okay. My next question was on the pricing scenario for natural diamond and diamonds. And also like we plan to be present in both if we plan to be present in natural as well as lab grown. So like don’t we think it would cannibalize in a way and also the falling diamond prices, like what is the — could you help me understand the impact on the consumer behavior? Because essentially a consumer is buying a natural diamond for the stores of value. Right.
Unidentified Speaker
So buying of natural diamond as a store of value is mostly done for the purpose through solitairs, one carat and above. And what we have seen in the last one year is that the prices of solitaire have come down to a large extent falling almost 25% to 30%, if not more and that is what is impacting the consumer and their faith on diamond solitaire as a store of value has gone down for the short-term, while their faith on gold as a store of value and an asset has gone up to a certain extent.
And therefore, a large number of customers at the ground level is when they have been asked to buy diamonds, they have — not everyone is getting convinced and that is the reason why we are seeing that while the overall growth is happening, the growth of diamonds has not happened to the same extent as the growth of overall business and gold in terms of value. So — but our business, 90% of it is diamonds, which is below $0.50 or below $0.30. So it is the smaller-sized diamonds.
And while this consumer sentiment of a emotional kind of attachment more towards gold have happened in the last one year and rightly so, but the diamond pickup has started happening now that the gold price has gone to all-time high, people are preferring 14 carat, 18 carat jewelry started. And this is the kind of behavior we had seen in 2021, ’22, ’23 where the diamond jewelry sales growth was about 20% 25%. So for the first, you know, I would say half of the year H1 and to a certain extent in Q3, it was not happening in that manner, but from end of Q3 and now what we see in Q4, as I again said that we are seeing that the shift of consumers towards diamond jewelry is gradually happening more-and-more because gold prices has gone very, very-high now.
So this is what is happening on the consumer side. And if you ask me as a consumer with the diamond solitaire prices have come down to a large extent, now that there are talks of the Russia-Ukraine war to be kind of stopped in the coming months, it will — it will — it will might have an impact of gradually the diamond prices will stabilize and move upwards. Now coming to your diamond question, we maintain our risk register and we kind of list out all the various risks and the future or any kind of events, lack swan events or what could happen in the future.
And there, we have very much consciously noted that this lab-grown diamonds will be a stone in the studded share that will continue to gain more traction, especially in terms of fashion kind of jewelry. They will not be considered as investment, but more as a fashion and adornment and it will have a share of the overall ratio. So people who will want to invest for the future, for the value and asset will continue to invest in natural diamonds and that in the overall market is around 15% to 20% of the share. For SENCO, it is about 10% to 11% share, which we intend to take it towards, 14% 15% and we are taking steps towards that.
But over a period of time, though the value of lab-grown diamonds is almost one-third or one-fourth of the value of a natural in terms of selling prices to consumers, but it will also gradually take about 2%, 3% share of the overall sales over a period of time. So this is how we see it. And as a company to hedge our own risk, we are creating a separate identity, separate store, separate entity and trying to provide any kind of option, whatever the consumers want in terms of either be natural or lab-grown. So this is how we would want to look at it.
Mook Ranka
And those are my only two. Thank you for your commentary.
Operator
Thank you, sir. We’ll take the next question from the line of Naveen Trivedi from Motilal Oswal. Please go-ahead.
Naveen Trivedi
Good morning, everyone. Sir, could you please explain a bit more on the gross margin side? I know that you explained about the custom duty impact also was there. So even if we adjust the same, even the gross margins are up around 700 bps down versus Y-o-Y. Even the sequentially where we typically see quarter two to quarter three more seasonally gross margins are accretive. We have seen sequentially also it is down. While our start ratio sequentially was similar and Y-o-Y, it is still has seen expansion. So mix actually has been the most favorable. So if you can just explain the thing?
Unidentified Speaker
Yes. Yes. Hi, Navin, thank you very much for asking this question. So that’s why we have uploaded this slide on slide number 45, see, gross margin is some total of for jewelry industry, some total of primarily making charge. That’s a major contributor for the gross margin and then diamond in our case, the margin on diamond, then there’ll be marginal petinum, silver, etc., so on. And then margin on gold, if any. So seeing the competitive scenario today, when we are seeing that the competitors are offering huge discount on the gold price and we don’t understand how the competitor is offering discount on the gold.
So effectively, there may not be any margin on the gold metal as such. Now only of that, due to price volatility and as you said earlier, there may — if you keep your unhing, then you can make money. So it depends upon how the jeweler hedges its position. But we have been hedging our position more than 80%. So there is no — there is no scope for upside on the gold price rise. And depending upon the hedge accounting, so we have said earlier also there can be INR15 crores to INR20 crore-plus or minus on account of gold — gold metal loan due to the gold hedging and the price volatility.
So now we are left this making charge in Diamond. So if you look at our presentation today, in serial number, just one minute slide, sir, making charge percentage we have given us 10% to 11% on total basis. So when we talk about the balance of, let’s say, 4.5% to 5% that comes from diamond, platinum, silver and so on. Your point was that it has been volatile. So what we have explained to you that as far as the making charge is concerned, we have seen it is consistent over last 11 quarters.
I can get into more, let’s say, last 20 30 quarter, but given the past gross margin trend, it is in the range of 10% to 10.5%. Now step ratio has been also stand standard. What you are seeing, the variance is primarily on account of price volatility, hedging position, unwindening of hedging position, the mark-to-market of the mark-to-market of the future position and the timing effect which comes due to India’s. So our gross margins are fairly stable.
That’s what we say. Now in a particular quarter, the sales volume will increase and the gross margin — absolute amount will increase. But we don’t — we have never guided that our gross margin percentage will increase or EBITDA margin percentage will increase. EBITDA margin percentage will increase due to operating leverage, but not due to pricing where the competition is intense.. But I’m just trying to understand — I can understand about the gold price which is there.
Naveen Trivedi
So is it that now you also expand about the making charges are also stable. So I’m assuming that there is no added consumer offers which you have done this quarter, while you are seeing the competition is doing it. So it still doesn’t explain about the gross margin dip both on the Y-o-Y side and the sequentially you’re seeing. Is there any hedging cost which you had spent during the quarter, which was higher than to first-half or something over last year.
Unidentified Speaker
See, hedging cost, hedging cost, we had a hedging cost probably
Unidentified Speaker
Loss of around INR95 crore in-quarter — quarter one, INR2 crore in-quarter two and INR6 crores gain in-quarter three. Effectively INR90 crore impact which has come. So in-quarter three, there is no loss, there is a gain, right? Custability impact is there. So the major reason for difference in the — this quarter and last quarter is the custability impact.
So we have taken a hit of INR29 crore in Q2 and INR27 crore in Q3. That has probably distorted the business. But the question is that the Q3 cannot which we explained in the starting line that the Q3 of ’23 and ’24 have been 11% — 12% and 11%, but that is not — that is only incidental, coincidental. There is no — even in our business when we make the business plan, we keep the gross margin consistent over every month and all the quarter.
So this is just an impact of the India’s accounting and price volatility. So comparing this 3.9 the reported number or 5.3 adjusted versus 11.1 may not be a correct indication.
Naveen Trivedi
Okay. So we actually — what I understood is that the larger part of the gross margin impact is because of the gold price inflation. Is the understanding right?
Unidentified Speaker
So absolutely, absolutely.
Naveen Trivedi
And what gives you — and what gives you — sorry, what gives you confidence that in-quarter four, your margin will return to normalized level considering we are still seeing the gold inflation is on the right — is inflation is there. So what gives you confidence that your Q4 numbers will be at a normalized level?
Unidentified Speaker
See, we are — we are at a hedging of 80% plus, okay. So let’s say, if the gold price rises from here, so we don’t foresee that the gold price rise will rise from this INR2950 level, which is already touch to a very-high to very-high, it may not touch beyond INR3,000. And if it falls then the hit, whatever hit will be there, that will be covered by our hedging position because we have — we invest a lot of time and money as our risk management strategy. So that gives us comfort.
Our Board closely monitored our hedging practices. So these are the two reasons. And as far as the — we don’t give — we don’t give random discounts on the gold metal. So we don’t come under competitive pressure and don’t enter into any comfort competition even if we lose still some time and making charges, we generally remain — intact, we don’t run discount offer very severe risk and we try to rather spend the money on marketing and brand-building so that the customers would see our brand is a and should not see our product discount that.
So just to add to Mr Banka, our making charge income percentage has continued to remain at the same level. That is what gives us confidence. Our diamond income from the margin in diamond part of the diamond jewelry also remains at the same level in terms of overall percentage.
It is just that as we have grown, the growth in gold jewelry in terms of value terms have been higher than in diamond jewelry for which the start ratio is looking down and we — and now that we are seeing that January, February the diamond jewelry sales have gone up and diamond start ratio is marginally going up also. So that is also giving us the confidence that nothing and the quality of business changes.
The only thing as we are reiterating is for all of you to look at the numbers, not quarter-on-quarter. Look at the numbers over the last three, four quarters, look at the previous year’s full 3/4, the year before that full 3/4 and this full 3/4 because gold price movement impact of hedging when we take metal gold loans from the bank that we take-in August-September to build-up their inventory for the festive season and then we kind of fix the rate for those flexible gold loan loans in October and November for. There is — we have a — we Call-IT the value differences, the price fixing, the impact of that on the inventory, which is nothing but the hedging processes that we do, which will give certain movement.
So again, maybe you know, I’m reiterating it again and again, but when the numbers of Q1 was looking extremely good, it was the election quarter. The markets were challenging. But because of this similar situation, the numbers, the growth percentage looked much higher. We were all very happy that, yes, but we tried to guide everyone that over a period of the whole year, we are still expecting EBITDA 7% to 8% and the PAT as it is and the top-line will be 18% to 20% growth.
And we are continuously with the firm belief telling all of you that, yes, the EBITDA will be around 7% to 8%. We are putting our best effort to increase the diamond jewelry sale, which is going to impact directly on the EBITDA. And I’m sure this normalization of overall numbers is going to happen. So this is our guidance. But at the same time, let us also talk about certain of the risks that we see that we must be conscious of and take action upon.
And one is that the metal gold loans that we are taking as a process of hedging due to the tariff initiatives by US, the banks are increasing their interest-rate, which for us was approximately 2.5% to 3% by 3% furthermore percent, 3%, 3.5%. So the interest on gold loan that for till about, I would say, January, which we were enjoying say at about an average of 3% going-forward in February and March, we are having to take into account that, that metal gold loan interest will move-up to about 6% to 7% depending from bank to bank, which means that for these two months, we will have a higher-cost of kind of funding by 0.5% or so.
So which is going to have an impact of approximately INR7 crores to INR8 crores on the overall numbers and we need to either have actions in terms of making charges or higher cut ratio and whichever to compensate for the same. So that is one a situation which will impact in the coming two months and even for the whole year.
But again, it all depends on how we look at the whole year. Will this higher interest-rate for metal gold loan continue for the whole of next year or it will — it is only a temporary phenomenon of three, four months and then we — and then it kind of again normalizes back to its 3%, 3.5%. We have to keep on observing and taking updates quarter-on-quarter on the situation. So these are certain things that we would like to also inform all of you about.
Naveen Trivedi
Yeah. Yeah, thank you so much, sir.
Operator
Thank you. We’ll take the next question from the line of Gandre from Canara HSBC Life Insurance. Please go-ahead.
Unidentified Participant
Yeah. Thank you for taking my question, sir. Sir, two questions from my side. So I’ll start with — sir, what was the studded mix in Q3 of this year versus year?
Unidentified Speaker
The studied mix of Q3 for this year versus maybe last year as of Q3, the number is we have reported the number here is approximately and 10.5% as of — as of Q3 YCG nine months. Kind of quarter-to-quarter Q3 was 11.5%.
Operator
And you was not clear. Can you just repeat the last line, please?
Unidentified Speaker
So our nine months touch ratio was 10.5% and our Q3 touch ratio has been about 11% — just Q3 has been about 11% and we are seeing that this 10.5%, which was the nine months touch ratio, as we like February 15, that 10.5% is moving up to 10.7%, 10.8%. So the start ratio as we are moving and we are seeing this whole diamond season and Valentine’s Day, it is moving up towards 7.7%, but nine months is 10.5%.
The stud ratio for H1 was lower. So Q3 kind of picked-up in terms of the stud ratio to close to 11%, but nine months 10.5% Q3 order with last-time in Q3, this 11% like-for-like was — was how much? We’ll just look at the last quarter, we’ll get back to you.
Naveen Trivedi
So see, broadly, I mean what I want to say that you basically mentioned that start ratio was weaker in Q3 versus previous year, right, because so more or less will be lower by 1% to 2% at the best, right, not beyond that. So maybe I
Unidentified Speaker
Mean, that would have kind of at the max reduce your gross profit margins by around INR10 crore to INR15 crore more or less.
Unidentified Participant
Okay. But still then if I adjust for that also it’s like around 6.5% at best-case you will reach for the Q3. So is the rest largely a the explanation of the hedging part of it where basically there is a timing difference which you kind of is pointing out towards and that is — that should kind of reverse in the Q4 is how the understanding should be.
Unidentified Speaker
Yes, yes. Q4 and Q4 will have a reversal in terms of what we are seeing in Q3 and a little bit of it will flow into the Q1 of next financial also. And again, the start ratio, let me reiterate. And since we are having this discussion, one is that what is the diamond jewelry as a total sales of jewelry, right? So again, we’ve got this number for you. So stud ratio for December ’23 nine months was 11.6%, which is 10.5%. So this is just a comparison. The second thing what I would like to again state is even in the diamond jewelry, so start ratio is percentage of diamond jewelry was in the overall sale.
In a diamond jewelry, there is a diamond, there is a gold, there is a making charge. And the gold value is moving up. So the percentage share of the diamond in the diamond jewelry is also down. So when we are defining and making a percentage profit or gross margin of diamond jewelry, then because the gold prices of the diamond jewelry has moved up higher than the diamond prices, therefore, the margin on diamond jewelry itself is also not the way it was when the gold prices were lower and the share of diamond in the diamond jewelry was higher. So there — these are the two impacts.
So our sale of diamond, just to kind of reiterate, last nine months was INR143 crore or INR142 crore and this particular nine months is around INR143 crores. So when we see — and when we say that our diamond jewelry sales have gone up by 9% also or this particular year when we have said that till February, it has grown by 59%, we need to delve deeper down and say that what has been the increase of diamond in the overall diamond jewelry and what has been due to the increase of gold in the gold price in the overall diamond jewelry and the more-and-more diamond we sell, the margins will be higher. So I hope I could make myself clear.
Unidentified Participant
Yeah, I got that, sir, but broadly, because the gold prices have moved further in Q4 and then the — like mentioned, the percentage of diamond value becomes lower in our diamond jewelry also and hence the margins become lower because of the weighted-average. So that should — that will kind of continue in Q4 also so Q4 say Jan-Feb — Jan-Feb,
Unidentified Speaker
We are growing 59% last quarter-four now. It’s a good number to talk about. Now 59% looks very good, but we have to break it up. How much of that 59% is because of the gold price increase and how much of it is because the volume increase, right? So volume increase of diamonds and overall volume increase in gold and volume increase due to the price increase. So to the extent that it is the volume increase of diamond, we will see that, that will have an impact on the gross margin.
Unidentified Participant
Okay. So, but I mean historically,
Operator
I’m sorry to interrupt, I would request you to rejoin the queue. There are others who are waiting for their turn. Thank you, sir.
Unidentified Speaker
It’s just one minute me I have to build one query and I am trying to explain it voluntarily so we have provided some explanation for the variance but I think it is not clear. I’m trying to explain it once again with reference to slide number slide number 44, I was just on this, very important point.
And if required, we will update this slide with more visibility. Slide number 45. So what we have explained in this slide, there is different — there were more dimension to the slide. So basically the gross margin which we have earned is let’s say it’s a INR5007 crore of making charge and the margin on the diamond,, etc of around INR165 crore, total gross margin of INR621 crore. So there is a negative impact of hedging and custom duty, the net impact of the same is INR515 crores INR51 crore.
So the total gross margin excluding the hedging impact and I’m putting all these numbers on YTD basis is INR673 crore. That gives me adjusted gross margin of 13.7%. Now with adjusted gross margin of 13.7%, YCD is 13.7%, Q1 it was 13.5%, Q2 it was 12.9% and Q3 was 14.5%. So the point is that 27 detail we provide, the fact remains that there are minor movement in the gross margin quarter-to-quarter and it cannot be injectly explained.
So we’ll try to add an additional slide as a part of addendum to what we have submitted to the stock exchanges today. So that’s all from my side and I invite questions again. So this new slide — this new slide will be numbered is 45A.
Operator
Thank you. Thank you, sir. We’ll take the next question from the line of Naveen Mahta from Mahindra Manual Life. Please go-ahead.
Navin Matta
Yeah, hi, sir. Sorry, I’m not able to kind of reconcile on the numbers. So once again, I’ll try and understand. So there are two effects. One is you’re saying that the added mix itself was lower by almost 60 basis-points on a year-on-year basis. And the second effect is that within the diamond jewelry, there is a higher gold component and because of the pricing change and that’s what has kind of led to dilution in margin on the diamond jewelry itself. Am I right, is there any other effect that one should think of? I’m adjusting the impact of adjusting the impact of. So any other effect one should think of?
Unidentified Speaker
Sorry, I missed your question. So you’re saying that your margin is one it off because of the diamond start ratio being lower, right even the margin is impacted because the gold component has gone up. Third is the customs duty. Any other reason for the margin to look lower, which is the hedging — what is the hedging impact?
Navin Matta
Yeah,
Unidentified Speaker
That is hedging impact? No, so that I start — at the beginning, I explained that what is the hedging impact — hedge accounting impact, customs duty, right? Now what you explained is that my adjusted gross margin is 6.2% as against 7.1% last year for nine months. That means it gives us a gap of around 90 basis-points. So 90 basis-points on, let’s say, INR4,900 crore, it gives you a gap of INR45 crore, right, roughly INR5,000 crore into 90 basis-point beyond INR45 crore.
Now we were trying to do a waterfall and trying to see what is the gap. So this gap is primarily by two reasons. One is that the diamond, why we explained that the — while diamond has grown by around just one minute, the diamond still we have said it has grown by 9%, but still the ratio is lesser. So approximately on account of lower diamond sales, there is an impact of INR15 crore INR16 crores. Similarly, in the total sales, export is higher and due to export being higher, we have seen around INR5 crores to INR6 crores is gross margin is lower due to higher export because in the export, the margin is lesser vis-a-vis what we sell at our own store.
Now these two are very clear reasons. Now what are the other reasons due to which the margin is lower, the adjusted gross margin is 6.2% versus 7.1%, which can be due to the product mix. See, as the prices are rising, customers are going for lightweight jewelry and customers are — and those customers who are going for a heavy diamond where our margins are lesser more than 35%, they are going for diamond jewelry with lesser diamond percentage.
There are mix of multiple reasons. And then when we talk about EBITDA, the opex element also, so in the current year, as the competitive intensity increase, we have to make investments in the marketing. We constantly have to make investment in our IT. We continuously have to make investment in our people. And because it is not —
Unidentified Speaker
— we don’t run the business for quarter-to-quarter. We have a long-term vision of the company. We are at a five-year company. We have a vision for next 200, 200 300 years for the company. So we spend money for the future and hence, these are investments. So we don’t consider this while from — I’m an accountant, this can be a accounting concept, but these are investment for which will yield long-term dividend for us.
Navin Matta
Right. Okay. And sir, you also alluded to this aspect of higher competition and you know there are certain players who are probably not hedging and that’s how they are kind of kind of holding on to margins. From our perspective, I understand we have 80% hedged. The effect of that in terms of either you know giving customer incentives is fully reflected in the gross margin or there is something in operating expenses also?
Unidentified Speaker
The duty — the duty impact, just to kind of not the duty impact, sorry, I was referring to any incentives or discounts you may have given because you mentioned about competitive intensity. Is that reflected in the gross margins for, let’s say, the nine-month period this year versus last year?
Yes, yes. Because if we give any discounts or any offers that is given on say as a percentage of making charges. So if that is given, then it will be reflected in the gross margin itself. But again, we want to reiterate that the making charge income and from retail sales that we have gained in the nine months has continued to remain in the range about 10.5%. So there has not been any major, major reduction due to the offers and discounts that we’ve given.
Yes, may we had to give or whenever there is that offer we give, but that has not impacted the margins. Again, as Bankaji has said that our margin — the income that we have received from making charges, which is the margin that is there. The income that we received by selling diamonds or the margin we received from platinum as a metal, that particular margin, if we look quarter-on-quarter has remained in the similar range. It is only the hedging impact, the impact of gold price, the — where we are fixing the gold loan and that move very strong quarter-to-quarter. So 1/4 would look higher and the other quarter would look lower. But if you look at nine months, it is normalized. So that is the impact that it has taken. And yes, in terms of percentages because the share of diamond jewelry has come down. Therefore that has taken its own impact and you see that from an EBITDA 1%, 7% — we are at say EBITDA 6% for nine months and gradually with higher, higher-growth of diamond jewelry sales compared to overall jewelry sales, we will be taking this 6% EBITDA to closer to 7% to 7.5%.
So that will be our endeavor with higher diamond jewelry sales. And then in Q3, now if we go below and we look at the other opex, marketing, branding, since it’s the festive season, we have invested in a branding and marketing in Q3. In Q4, obviously, that percentage expenditure towards branding and marketing will be lower. So those will have it — the leverages will play-out and we will be having a bottom-line, which will be percentage-wise stronger.
So this is how we are looking at it. No, I think, sir, let me build-on my answers. See, this INR51 crores which is we is the impact of gold — gold hedging and custom duty and so on, INR51 crore. It was INR52 crore gain in-quarter one, INR52 crores gain, INR17 crore loss in-quarter two, 55 crore loss in-quarter three. That’s why this INR52 crore gain in-quarter one, it gave you a say higher gross margin in-quarter one and EBITDA margin. In-quarter two, it was a loss, it was lesser and quarter three grow a loss. But the point is that, sir, we are consistently explaining that we are not a hedge fund.
Our business is not to enter into hedging position. We don’t take a call on the whole. We don’t do hedging as a business area. We do hedging purely to cover our risk as a risk management tool and we don’t decide the timing of this accounting of the number. Our job is to run the business and we do a proper accounting in ERP and we have got a very reputed auditor firm. It’s not that we decide the timing that this will come in-quarter two or this will come in-quarter three. So I’m making it very clear on the earnings call, sir, that this — this timing of the impact of the hedging, when does it flow, it is not decided by the management or by the company.
It is decided by the and by the statutory auditor. So that is where it is. And due to this timing gap, which is saying is that the gross margin is impacted optically, I will say. I want to use the word optically. This may not be a cash-flow impact. We are not required to provide the cash-flow, but in our quarterly accounts, in our quarterly accounts — sorry, for the — for the full-year when we provide the accounts, we will provide the quarterly cash-flow also to give inspire the confidence and trust. That’s all I can say. And once again, maybe the question please.
Operator
Thank you, sir. And we’ll take the next question from the line of question from Bajaj AMC. Please go-ahead.
Unidentified Participant
Yeah. Hi, thanks for the opportunity. Am I audible?
Operator
Yes, please proceed, sir.
Unidentified Participant
Yeah. Hi, hi, jee. Hi, Sanjaji. While there has been a lot of discussion on margins, I just have a question on the growth. So nine months we have crossed INR5,000 crores and for the full-year, we are guiding for INR6,200 crores that implies close to INR1,200 crores in Q4, which is almost very low, I mean growth when we compare to the Q4 of last year, close to 5%, 6% of growth, despite you calling out that there has been a 59% growth till-date in Q4 in studded in diamond and there is a good wedding season lined-up in Feb, March and beyond.
My question is, why are we looking for this very low-growth in this scenario in this environment.
Sanjay Banka
So we are — see this year comparing to last year Q4 to this year Q4, and we see we have had a wonderful Q3 crossing INR5,000 crores. And we are saying that we will be crossing INR1,200 crores this particular Q4, taking it to INR6,200 or 6,300 crores. And the growth in diamond is higher than the growth in, say, gold utility. So that is a good sign in which we will see that the quality of business in terms of the higher start ratio in Q4 will be impacting the bottom-line.
But then we also have to, you know, say that the gold prices at all-time highs and then that is where we will see that value-wise we are growing, the wedding season is there, but obviously, there will be consumers that will kind of wait for the price to stabilize. So this is how it is. So we are looking at a 6%, 7% growth. And then maybe as we end February and we move towards March, that 6%, 7% growth can move-up to 10% growth.
But all-in all, if you look at the overall numbers from last year’s 5,200 to 6,200, we will be blocking 18% to 20% growth Y-o-Y. So that is how it is. So you know, maybe quarter-four, currently we are being 7%, 8%, that is how we have to look at it. So is there any slowness in-demand that you are seeing in gold jewelry? I understand started, I mean diamond is growing fast, but is there any — January — January sales were much higher, the demand was much more robust. And if we look at what has been happening in the last seven, 10 days in terms of the demand for gold jewelry.
Obviously, because of the gold prices that have moved up so high in the last seven, 10 days, there has been a little bit of slowness on-demand of gold jewelry. But once — this is a behavior of the consumer that we see all-the-time when there is a sudden jump-in terms of pricing, consumers are in a wait-and-watch mode. And again, when the prices stabilize, the consumers will start buying again. So this is how we are looking at it.
Operator
Thank you. We’ll We’ll take the next question from the line of Shaker from Motilal Oswal Mutual Fund. Please go-ahead.
Unidentified Participant
Yeah. Thanks a lot for the opportunity, sir, and good morning and thank you for doing the call so early in the morning. Sir, you’ve already given a lot of explanation on your gross margin. But I mean, I just have one observation, sir. So, see, generally the hedging is done basically to protect your gross margins. And what you’ve explained not so-far, of course, one is your impact on your making charge or your — probably your mix of being impacted, but the majority of the impact is going to be hedging. Now ideally, your hedging should help you protect your gross margin.
So in your case, it’s been — this is the second-quarter in a row that we are seeing a very-high fluctuation in gross margin. So I’m quite perplex that actually hedging study should have helped you in a volatile, you know gold price environment. Instead, on the other hand, it is actually hurting you more.
Secondly, sir, I mean, if you look at the other listed companies who all have reported their numbers from one company like who has not yet fully reached its hedged 100% hedge position or to the other like a Titan or a who is 100% hedged and they have also you know been able to have a normalized gross margin despite the same volatility in gold prices that you’re talking about. So I heard you saying that I mean you are using the best accounting practices and you have the best auditor there is very much acceptable.
But the problem is, sir, as institual investors, you know, I mean to be honest, the reason why we prefer gold companies which have a fully hedged gold situation, inventory is so that you can have a normalized gross margin and you don’t run the risk of very big impacts on gross margin. But to be honest, that is not helping. So you’ve given a lot of explanation on your multiple slides and disclosures are very-high. But is this something which I don’t think I’m able to really get my head around for last two quarters that why the gross margin impact should be so high when others are able to manage it.
So I don’t know if this point explains my worry but over to you sir.
Suvankar Sen
Help us to mitigate the risk. We are hedging not — so multiple companies are talking hedging differently. This public forum, I don’t want to talk about the competition. Everybody is talking hedging in a different way and kindly read-through the statements. So how do you hedge, let’s say, from the rail, you can use umbrella, you can — so we hedge our inventory position. We kindly ask specific question to others as to what are the hedging.
We have an inventory exposure of, let’s say, INR2,800 crores to INR7,900 crores in our balance sheet. If we exclude the diamond, this — so when we say hedging this INR2,400 crores to INR25 crores of the gold position is to be hedged. And when we say 80% minimum, it means at least INR2,000 crores hedging. That means the hedging position should protect me from this INR2,000 crore position, right? And which is done.
So when we — and I’m giving you a little ballpark number, so which means that almost INR1,000 crore will be why we are gold metal loan and balance INR1,000 crore will be why MCX future sell. So we have been able to protect our position by hedging. But incidentally, in the last 3/4, the price has been only going northward. So we have the gain on realization. So it’s not that we’ve only suffered on account of any. We — we have a gain on realization and we have a loss on the hedging position. Both have utilized each other, but it is not in a percent order, it’s not a fully position.
If you say that due to India’s accounting due to the MC exposition, realized gain, unrealized gain mark-to-market cash-flow hedge, it will require one full debt to explain and are not that expert actually. So we have not lost our account of hedging. It has been counted by the hedging position and we are very happy with our hedging strategy. But we could have made money by not hedging our, but we will never do that. And that’s why you are seeing the that is how a conservative and stable company was. We don’t — we don’t want to show number for the sake of.
We believe in corporate governance and that’s how sometimes the number you will not likely. But in the long-run, you will know which is a strong company.
Sanjay Banka
And then, you look at the nine months YTD and you will then understand that whatever be the quarterly fluctuations that you are seeing from Q1 to Q2 and Q3, it is normalizing towards the expectation that we are moving towards. So kindly appreciate the effort that we are taking to explain all of this to all of you investors.
And this particular year Q2, the duty rate cut has happened, it has its own impact on pricing. You have already paid the duty for the gold loans that you have taken and when you are again selling those gold and you have taken the benefit, why did you know say that the loss on-Q2 was minimum, there was rather a gain from hedging is because we were in a hedge position and that is why at one end, when the gold prices came down due to the duty cut, we could take some benefit of the hedging.
But what duties paid out is paid out. So you get all of this has its impact. You all have to maybe have the faith and trust in us. We are doing our best to explain the situation and we are confident that we will be moving towards an EBITDA of 7% and to be 19% to 20% year-on-year. As per our expectation, we will open 18 to 20 stores for the year as we had told all of you and next year also plans are on and we will continue to grow in the same manner of 18% to 20% year-on-year.
So this is how we would like to.
Unidentified Participant
So just last year just quickly. So 7% margin is what we can model for the full-year, right, EBITDA margin and for the coming year FY ’26 as well.
Suvankar Sen
So good for — since we already have a — we only have a reported a EBITDA margin of 5% and adjusted or normalized EBITDA of 6.2%. So it cannot be fully recovered in Q4. What we said is that in Q4, it will be 7% to 8% just in-line. Q4, Q4 standalone sir will be 7% to 8%, obviously, the 7% to 8% with reported 5% will not give you 7%.
But yeah, we — for years next year and next to next year, we are consistently looking at and working at 7% to 8% EBITDA margin. But this year, this year 2024, ’25, EBITDA margin will be lower. It’s a fact other listed players have reported huge impact on account of custom duty. We are completed listed EBITDA.
Operator
Thank you, sir. We’ll take the next question from the line of Devanshu Bansal from Emkay Global Financial Services Limited. Please go-ahead.
Devanshu Bansal
Yes, sir. Hi, sir, there is some confusion as the numbers that you’ve spoken about are not visible in the PPT. I would just request you if you could provide the comparable gross margin numbers adjusted for customs duty impact and whatever hedging gain loss that we have seen over last six, seven quarters, maybe from Q1 FY ’24 to Q3 FY ’25, if you could provide the adjusted gross margin number that will sort of help us better understand because these numbers are not visible in the PPT, but you have sort of spoken about this in your commentary.
Suvankar Sen
So, so this year, we were by the excessive disclosure. So — but yeah, we take your view with very-high respect and we will try to upload the revised slide, as I said, slide number 40 45A in next two to three hours.
Devanshu Bansal
Understood. But sir, you did mention about 13.7%. So what exactly is that number as in for nine months this year it is 13.7 what was this comparable number for last year nine months.
Suvankar Sen
So this is the adjusted gross margin adjusted for the hedging — hedging loss and custom duty and last year this number was 15% for full-year last full-year, this is just. So to the 15.2% and 14.7%, it will be approximately 15% last year, adjusted gross margin and the same number for ’22 ’23 also similar. So out-of-the growth out-of-the adjusted gross margin of 13.7%, which is 13.5%, 12.9% and 14.5%, the making is around 10.5%.
Devanshu Bansal
Understood. And this 130 bps fall on a Y-o-Y basis is largely attributed to all these regions, right, studied mix exports,
Suvankar Sen
Yeah, yeah. Yeah, yeah. So primarily export product mix ratio, these are three, four millions.
Devanshu Bansal
Understood, sir. Yeah, thanks for taking my questions.
Operator
Thank you. We’ll take the next question from the line of Vidisha, an Individual Investor. Please go-ahead.
Videesha Seth
Yeah. Hi, this is Sheth from Ambit Capital. So please accommodate if my questions are repetrative in nature. But number-one, on the growth aspect that you mentioned for 4th-quarter, it being lower at 6% to 7% on an implied basis. Can you just share what is the growth in the month of Jan, the Y-o-Y growth in the month of Jan.
Sanjay Banka
See Y-o-Y growth in the month 19% to 20%,
Suvankar Sen
Yes. So then it’s too early to — it’s too early to be 20% despite the gold price rise, the demand for the gold has not come down, then the festival season continues.
Videesha Seth
Okay. So then what leads to this 6% to 7% growth guidance?
Sanjay Banka
Yes. So the — we are talking of a YTD — the whole year growth of 19% to 20%. Right now, January has been a growth of 21% 22%. February, you know, we have seen that the 21% 22% has taken a little hit because of the gold price increase, but we will still the wedding season continues to play on and we will see that in the whole year, we will achieve 18% to 20%, but with this price range, we are we are being expecting a 7% to 8%.
If you see only Q4 to Q4, but YTD way — look, we are at 18% to 19% 20%. So you need to understand that YTD will be at 19% to 20%. So Q4 to Q4, you will not see that 19% to 20%. Yes. So — and just to again double down on this. Is this — is this low-growth assuming that footfalls don’t come back because typically how customers behave is that if there is a sharp increase in gold prices, they eventually adjust to it and the footfalls do come back because purchases can’t be postponed to a large extent.
So the April, April month, March, all of it will see that you know the people will be buying, people will be buying and weddings cannot be postponed, only personal purchases will be postponed. But let me assure you that this 19% 20% growth for the whole year and in Q4, we will — while we say that, yes, at the lower-end, there will be 7%, 8% growth, but at a higher range, we will all expect that the 20% growth will continue to happen.
So let me, I think you know modify my statement as to exactly what we were trying to say is that in terms of value, we will grow by 20% in terms of volume, that growth percentage will be in single-digit. But in terms of value, we will continue to grow at 20%.
Videesha Seth
Understood. Now coming to the margin front again, this is more of a clarification. On the MCX hedging gain and loss, which is impacting the COGS or the gross margin, is it also a function of the gold volume bought through gold volume bought versus what was sold? And just in addition to that, is there going to be any timing reversal in the 4th-quarter as well?
Suvankar Sen
Yeah, it’s a very complex service MCX position is — first of all, we take total inventory position. Now out of total inventory, a part is covered by the gold metal loan, okay. Now gold metal loan also you have to see across multiple banks, multiple expiries. So there is no fixed formula that how much I will do by — so we prefer to do hedging primarily by the — by the — by the position and then second offset is MCX.
Now MCX will depend upon if you do increase the frequency like as you trade-in the market, if you’ve got a trading mentality and if you want to make money, one is no hedging is dependent upon whether you Call-IT smart hedging or you Call-IT a conservative hedging. So if a person starts trading into MCs on daily basis and every day they use it every day, then they will earn money and the gross margin will increase and they will earning 80% hedging. On the other hand, there is a stable investor, you take a hedging position and you don’t look at hedging position and you try to match it with the full expiry.
So we have nuances and we think it is and we can go on discovering these things. Okay. If someone use the hedging, if someone uses hedging at a treasury desk, then he will make money, his gross margin may be higher. I’m not making any comment against any of my respective pillow industry colleagues. Understood. So if I were just to simplify the question, in the 4th-quarter, how should we be looking at gross margins and EBITDA margins on a Y-o-Y basis. So gross margin, as you’ve said,, 14% to 15% is the gross margin of 14% to 15% once again is a function of own store and franchisee store.
Own store will be 19% to 20%, franchisee will be 6% to 7%. It will depend upon what sort of product customers pick-up in this market when the gold price are at a higher. So and then the export also we are increasing. But broadly, we’ve said 14% to 15% gross margin, 7% to 8% EBITDA and we are working very clearly to — along those lines. And with this, just to add to Bankaji, let me give you a number — updated number that as on-date, we have clocked a turnover of INR5,700 crore as we speak to you, right?
Sanjay Banka
So if we look at — in that aspect, so our expected revenue number for the whole of the year should be anywhere between INR6,300 crores to INR6,400 crores. So this is the confidence that we would like to give all of you that in terms of revenue numbers, we will be in the range of INR6,300 to 6,400. That is number-one. Number two, again, I mean, at the cost of reiterating December, January until now February, we have seen that the diamond jewelry sales growth has picked-up to a large extent, which will have a positive impact on the gross margins and on all the numbers, EBITDA and PAT.
And that will — currently it is growing at for January, February at 59% year-on-year for these date range. So we are again positive while our — again, the guidance that we would like to give is that adjusted EBITDA is coming to 6% as of now, but due to the positive impact of higher diamond jewelry sales and you know, the gold price hedging impact that Q3 has taken a hit, but the way in Q1 and Q2, the gains that were being made in Q3, it has taken a hit. But again, we believe that it will normalize in Q4 and that will make the EBITDA margins look much better than the adjusted EBITDA of 6% to closer to 7% due to these scenarios that we are seeing.
And yes, the concerns are that gold is at all-time high, but the sales continue to happen for weddings. Our diamond jewelry ratio is on the rise and Akshay is in the end of April. So our endeavor to reach-out to the customers to ensure that we take, you know the bookings will begin from March. And overall, I think the consumer sentiment for the short-term due to the price rise has been a little slow in the last seven, eight days because of the sudden jump. But consumers inside their heart is happy that gold is — price is increasing. The old exchange that we usually talk about has been about 38% to 39%.
And once again, we say that the 62% of that is non-SENCO gold that comes to us. So this growth that we see, the same-store sales growth for us has been in the range of 13% to 14% in the overall growth of 19% to 20%. So while this price movement of gold and hedging and duty cut and this lower diamond ratio in the overall sales have given this — this YTD adjusted EBITDA of 6% versus the 7.1% of the last year for the nine months. But with the fundamentals to remain strong and with our marketing and branding and sales endeavor, we will continue to grow in the top-line . And yes, these headwinds of duty cut or though these interest-rate changes in gold loan, these will have it short-term phenomenon, which will be adjusted over a period of time by controlling of expenses or any kind of moving into selling of more higher-margin products in. So this is how we will continue to do our business.
Videesha Seth
Thanks. Is it possible to share the cash-flow number for nine months FY ’25 versus nine months now versus the base period?
Suvankar Sen
So cash-flow is not specifically required to be prepared for the — for the Q3 numbers. So that led to work separately. We just completed about it. But yes. But as far as custom duty is concerned, clearly there is a cash-flow impact and that I wrote — that we wrote in the presentation as well that INR57 crorespect custom duty impact.
But what we purchased at INR115 rupee, we have sold at INR106 rupee. So while INR100 could have become INR115, but this custom duty part is a clear loss. And ultimately this is a core site and it’s a gratitude to government that they have taken this village statement, while definitely the industry will be, we are. But long-term for the Indian economy, it’s a very, very positive moment that the government is taking steps to stop the unethical practices.
Net-net, these are good in the interest of Indian economy, short-term trends are there and we again honest and responsible citizen have to bear the same.
Videesha Seth
Just the last question from my side on the studied portfolio. So for peers, the studied — their studied portfolio has grown although the mix would have impacted depending on the NIM. So what is the reason why it did not grow for? Is it the geography exposure or are there any other factors that have come into play?
Suvankar Sen
We have explained earlier that our ratio, the number changes so that one is our own store and franchisee store. So what we look at 10.5%, in the own store, it is 14% and we have said earlier that in the drones like Delhi NCR, it is 17%. So the ratio clearly has a potential to touch up to 17%. Yeah, much — your question, right? It is the existing business model. So the extent business model started with a focus on the growth and we have been consistently giving — you are aware that in a diamond jewelry, the inventory turn is. So one has to take share of all these things and it is now the extent ratio itself will give you the high division.
Had it been so, then you must-have compared our financial with others. So while some players footstep received higher and more than more than 25% 26%, but the gross margin is different than us. Why don’t you add to Mr., sorry, one minute. I would just like to say that the growth of diamond jewelry has in-quarter three has been 18%. The growth of diamond jewelry has been 18%. It is just that the share or the ratio — touch ratio, which we mean to say is the share of diamond jewelry in the overall sales has not grown in the whole of year. I hope I could make myself clear in this, right?
Videesha Seth
Got it. Thanks.
Suvankar Sen
Q3. YTD diamond jewelry sale is 9%. Q3 diamond jewelry sales growth is 19%. So in the Q1 and Q2, diamond jewelry sales were lower, but Q3 onwards, diamond jewelry sales are growing at a higher-rate. And Q4 as we move — as we are moving through it, January and now we are in middle of Feb, as I again to reiterate that the diamond jewelry sale is growing at 59% Q4 to Q4. So please try to understand that people in Q1 and Q2 did not buy much of diamond jewelry, but Q3 and Q4 onwards, the — that sale is increasing.
Operator
Thank you, sir. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to the management for closing comments. Over to you, sir.
Sanjay Banka
Thank you. So thank you very much to all the you know partners and investors for being with SENCO having the faith. We understand the answer that the movement of gold price, the duty cut and its impact on the overall numbers has certain — you know people have been — there are queries and there are thoughts in the mind that whether this particular fall in terms of margin, the Q3 versus Q3 numbers is something which will continue to happen in the future or not.
But again, as we end the conversation, we would like to request all of you to look at a longer period of time, you see Q1, Q2, Q3 and you will see that the adjusted EBITDA and the adjusted PAT normalizes. It’s a Q1 and Q2 numbers in terms of growth of EBITDA, growth of PAT has been much higher. In Q3 due to the duty cut and the movement of gold price and the lower start ratio, it has taken a hit. But again, Q4 numbers are picking-up. So while in terms of top-line, we are very proud and happy to say that we have performed crossed INR2,000 crore, had the best-ever month of INR1,000 crore-plus sales and consumers continue to get added of, say, 4.5% more invoice, higher ATV, higher ASP. But in terms of the overall numbers as we end the year, we will continue to see the way we are growing 18% to 20%.
We will continue to do that in terms of value. In terms of volume, it is going to be low-single digit in terms of value. We will end the year with 18% to 20% and Q4 growth year-on-year also in terms of value will be 18% to 20% minimum. And that will have its own positive impact on the EBITDA and the overall numbers of adjusted EBITDA will move upwards. So thank you once again. Happy Valentine’s Day and wishing all of you a great next few months ahead.
Suvankar Sen
Thank you, everybody. Thank you very much.
Operator
Thank you, members of the management. On behalf of Emkay Global Financial Services Limited, that concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you