Enclosed are the audited annual financial results for the quarter and financial year ended 31-Mar-2025
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Sovereign Diamonds, a Mumbai-based 18K fine jewellery maker, reported its FY25 audited results. Total income fell sharply to ₹21.47 crore from ₹28.42 crore last year, a drop of about 24%. Net sales declined to ₹19.97 crore from ₹27.09 crore, down roughly 26%. Full-year profit after tax collapsed to just ₹1.26 lakh versus ₹1.38 crore in FY24, with Q4 FY25 slipping into a loss of ₹12.58 lakh. The auditor (J.D. Zatakia & Co.) issued an unmodified opinion. Operating cash flow remained positive at ₹2.54 crore, and the company reduced its borrowings from ₹11.49 crore to ₹8.90 crore during the year.
Weak top-line and near-flat bottom-line signal demand pressure and rising finance costs in the jewellery business. The sharp FY25 PAT decline (over 99% drop) and quarterly loss could weigh on the stock and signal stress on margins. However, debt reduction and positive operating cash flow provide some comfort.