RBZ Jewellers Limited — Q4 FY26

Rbz Jewellers Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=_dAEjbR7jYA Published: 1d ago

0:00 Ladies and gentlemen, good day and welcome to the Q4 FI26 earnings conference call of RBZ Travelers Limited hosted by Ballerum Advisers. 0:12 12 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:21 21 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:29 29 seconds I now hand the conference over to Miss Hinak Kadri from Valerum Advisers. Thank you and over to you ma'am. Uh thank you. Good evening everyone and a 0:38 38 seconds very warm welcome to you all. My name is Hina Kadri from Valerum Advisers. We represent the investor relations of RBZ Dwellers Limited. On behalf of the 0:47 47 seconds company and valum advisers, I would like to thank you all for participating in the company's earnings conference call for the fourth quarter full year and full year ended financial year 2026. 0:59 59 seconds Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings conference call may be forward-looking 1:07 1 minute, 7 seconds in nature. Such forward-looking statements are subject to risk and uncertaintity which could cause actual results to differ from those 1:14 1 minute, 14 seconds anticipated. Such statements are based on management beliefs as well as assumptions made by and the information currently available to management. 1:22 1 minute, 22 seconds Audiences are cautioned not to place any undue reliance on this forward-looking statements in making any investment decisions. The purpose of today's 1:30 1 minute, 30 seconds earnings call is purely to educate and bring awareness about the company's fundamental business and the financial year under review. Let me now introduce 1:40 1 minute, 40 seconds you to the management participating with us in today's earnings call and hand it over to them for opening remarks. We have with us Mr. Harid Zeri, joint MD 1:49 1 minute, 49 seconds and CFO of the company, Mr. Harshed Gandhi, internal financial controller and Mr. Bhaves Sabani, senior manager, accounts and finance of the company. 1:58 1 minute, 58 seconds Without any further delay, I request Mr. 2:00 2 minutes Harit Zeri to start with his opening remarks. Thank you and over to you sir. 2:07 2 minutes, 7 seconds Uh thank you Hina and good evening everyone. Uh welcome to our earnings conference call for discussing our performance for the fourth quarter financial year 2026. 2:18 2 minutes, 18 seconds Before I give you the financials and operational highlights of the period under review. Let me first start by giving a brief overview of the company 2:26 2 minutes, 26 seconds for some of those participants that may be new to our company. 2:31 2 minutes, 31 seconds RBZ is one of the leading organized manufacturers of gold jewelry transforming itself into a B2C segment. 2:40 2 minutes, 40 seconds We are unique jewelry company with diversified business model wherein we offer products to national retailers on 2:46 2 minutes, 46 seconds a wholesale and job basis as well as direct to consumers from our flagship retail store in Nepal. We have a 2:54 2 minutes, 54 seconds state-of-the-art manufacturing facility equipped with advanced casting, laser, 3D printing technologies supported by 3:01 3 minutes, 1 second 280 plus professionals and 200 steel articians. Because of our manufacturing setup and presence across both wholesale 3:09 3 minutes, 9 seconds and retail segment, we are able to garner better margins than our peers. 3:15 3 minutes, 15 seconds We offer a diverse range of jewelry collection comprising of different manufacturing techniques and varieties. 3:21 3 minutes, 21 seconds But our specialty lies in antique gold bridal jewelry. Our flagship showroom harins jewelers in Ahmedabad offers 3:29 3 minutes, 29 seconds bridal occasional and daily well jewelry across diverse price ranges. The product portfolio features of diverse collection 3:37 3 minutes, 37 seconds of gold, silver, studded and other jewelry including bangles, chains, necklace, rings, earrings etc. We are also planning to expand our retail 3:46 3 minutes, 46 seconds presence in Bajcotur, Surat and Ahmedabad as well. Now coming to the financial highlights for the period under the company reportedly reported a 3:55 3 minutes, 55 seconds healthy profit uh healthy performance during the quarter with a revenue growth broadly in line with the guidance and expectations shared with investors in 4:04 4 minutes, 4 seconds the previous quarter. The growth momentum was supported by festive demand particularly during a zitya season. For 4:11 4 minutes, 11 seconds the quarter under review, revenue from operations stood at 190 crores, registering a strong growth of 38% Y on 4:19 4 minutes, 19 seconds Y. AITA for the quarter came in 21 crores, reflecting a healthy growth of 46% with AITA margins improving to 4:27 4 minutes, 27 seconds 11.19% up 63 basis point year on year. Profit after tax for the quarter increased by 4:35 4 minutes, 35 seconds 36% yearonear to 12 crores translating the PAT margins of 6.17 crores 6.17%. 4:44 4 minutes, 44 seconds For the financial year 2026 revenue from operations stood at INR 637 crores reflecting the growth of 20% 4:51 4 minutes, 51 seconds yearonearita for the year increased significantly by 43% to 92 crores with AITA margins 4:59 4 minutes, 59 seconds improving to 14.44% at 44% and expansion of 233 basis points. Profit after tax 5:05 5 minutes, 5 seconds was a yearly increase by 41% yearonear to 55 crores with PAT margins at 8.61% 5:13 5 minutes, 13 seconds reflecting continued improvement in profitability and operating efficiency. 5:18 5 minutes, 18 seconds In terms of segmental performance for the quarter, retail revenue stood at INR 121 crores, registering a healthy growth of 31% yearon year. Wholesale revenue 5:27 5 minutes, 27 seconds stood at 67 crores reflecting a strong growth of 57% by on while job revenue stood at approximately 1 cr. Now coming 5:36 5 minutes, 36 seconds to the operational highlights of the period under review. During the quarter we actively participated in key exhibitions including national level and state level across B2B and B2C segments. 5:49 5 minutes, 49 seconds Further strengthening the brand visibility, market presence and customer outreach across market. We launched multiple digital campaigns to strengthen 5:56 5 minutes, 56 seconds customer engagement and brand visit visibility across both occasion wear and daily wear categories in occasion well 6:03 6 minutes, 3 seconds segment campaigns such as shade queso or holi axity and red breakers showcased company's gold bulky and antique jewelry 6:12 6 minutes, 12 seconds collections. Additionally, the company continued to strengthen the positioning of its lightweight and elegantly designed daily wear uh portfolio through 6:20 6 minutes, 20 seconds targeted digital campaigns such as Viva and Pokey Bridle across social media platforms enhancing brand recall and customer outreach. During this quarter, 6:29 6 minutes, 29 seconds we launched 730 new designs averaging eight designs per day primarily in occasion segment further strengthening 6:38 6 minutes, 38 seconds our product portfolio. Additionally, we are set to commence certain products in in house in daily segment from quarter 1 6:45 6 minutes, 45 seconds F at 27 with delegated infrastructure increases. On the retail front encouraged by the strong performance of our Ahmedabad store, we are now planning 6:53 6 minutes, 53 seconds to expand in other key Gujarat markets including Surat Rashort. Both the showrooms are targeted to commence operations by quarter 2 of FY27. 7:01 7 minutes, 1 second Further, we are actively exploring strategic location in eastern Ahmedabad and nearby cities such as Gandhiagar for midsize stores around 5,000 square ft 7:09 7 minutes, 9 seconds and aimed at strengthening as a regional presence and driving incremental growth. 7:14 7 minutes, 14 seconds Overall, we concluded the financial year 2026 on a strong note and remain focused on carrying this momentum into the current fiscal year supposeded by the 7:23 7 minutes, 23 seconds preparation of upcoming wedding season and key regional festive across core markets. We continue to witness steady 7:30 7 minutes, 30 seconds consumer demand in occasion wear segment ahead of the wedding season while also optimizing our inventory mix with a 7:37 7 minutes, 37 seconds greater focus on lightweight and budget friendly product offering to cater to evolving consumer preference. With this I now open the floor for questions and answer session. Thank you. 7:48 7 minutes, 48 seconds Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the 7:57 7 minutes, 57 seconds touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants 8:05 8 minutes, 5 seconds are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 8:16 8 minutes, 16 seconds We take the first question from the line of Sha from Vimmana Capital. Please go ahead. 8:22 8 minutes, 22 seconds Uh sure thank you sir for taking us through the presentation. Uh I just had a few questions. So first is due to 8:29 8 minutes, 29 seconds recent increase in customs duty and the advanced authorization on import of gold that was announced yesterday. Do you see 8:36 8 minutes, 36 seconds any impact on volumes or revenue or margins? 8:42 8 minutes, 42 seconds So uh see these are very uh uh you know very immediate events or uh it has just 8:49 8 minutes, 49 seconds been few days that this all things are happening and uh generally we would take some time let's say a week or two uh in 8:58 8 minutes, 58 seconds fact a little bit more to understand what how the market and the consumers are reacting. uh while I understand that 9:05 9 minutes, 5 seconds there are news and all but uh this uh this type of uh appeals uh the government has also done in past uh we 9:14 9 minutes, 14 seconds have seen in the previous government that you know things were announced. Now uh what we are really waiting or what we 9:24 9 minutes, 24 seconds are really wanting to see is the what is happening on the actual ground levels right like are the customers slowing 9:31 9 minutes, 31 seconds down or is their exchange happening more you know so uh as like you when we are 9:39 9 minutes, 39 seconds studying uh what uh there uh certainly I think uh 9:47 9 minutes, 47 seconds you know this restrictions are uh not advantageous but up to what level there 9:54 9 minutes, 54 seconds is an impact uh is is crucial. Now when you talk about the industry quarter one post Akshakita remains low on in terms 10:03 10 minutes, 3 seconds of uh sentiments and all in the buying there is no buying season as such in know late quarter one. So uh even if 10:13 10 minutes, 13 seconds there is an impact on a you know uh it it it can be quite low because you know this has not come in the period of 10:20 10 minutes, 20 seconds Navaratri Diwali this type of announcements. So this is also seen as a positive sign that okay what will happen in the quarter upcoming quarters and in 10:28 10 minutes, 28 seconds the year you know we have to just understand and see but generally uh you know uh uh like you we are also 10:37 10 minutes, 37 seconds understanding what is happening on crowd doesn't look that discouraging uh but uh certainly on the wholesome 10:46 10 minutes, 46 seconds perspective we have witnessed things like this in the past uh I don't uh uh I don't have I comments on this until 10:54 10 minutes, 54 seconds unless there is something really concrete to tell you but we are on it. 11:01 11 minutes, 1 second Yeah. 11:03 11 minutes, 3 seconds Uh sure sir and then the second question is likely more related to the geopolitical scenario right now. Uh so 11:11 11 minutes, 11 seconds if this change any of our strategies around gold hing particularly around the gold metal loan like we've been doing it in the past but are we anticipating to 11:20 11 minutes, 20 seconds increase that in future or do we plan to keep it at the same level? 11:25 11 minutes, 25 seconds So we will be exploring uh GML in this financial year perhaps for buying uh the 11:35 11 minutes, 35 seconds new buying of gold that will happen for the upcoming stores and uh the uh how we 11:43 11 minutes, 43 seconds generally play a safeguard is uh we have our weighted weighted inventory at about 11:49 11 minutes, 49 seconds 20 to 25% lower than the current market price. So whatever we buy we try to maintain it in the range of let's say 11:57 11 minutes, 57 seconds whatever the new buying or new absorption of gold has happened it should still uh the weighted average still has to remain at least 15% lower 12:05 12 minutes, 5 seconds toward the current market price now you know so if there is a correction and all we can straight away hedge it on the 12:14 12 minutes, 14 seconds forward markets uh so your to answer your question yes we are looking for GML uh the practices 12:22 12 minutes, 22 seconds are quite good. We are not a company who is looking forward to realize all our profits once the gold patties has gone 12:29 12 minutes, 29 seconds up and you know jump in to sell all the gold in the market etc. 12:35 12 minutes, 35 seconds uh we maintain certain uh percentage of uh you know uh certain percentage 12:43 12 minutes, 43 seconds wherein of cushion that that is required you know to even if there's an absorption of cool to what extent can 12:50 12 minutes, 50 seconds absorb and then uh obviously once the pricing are coming to parity we are sure to catch it. 12:59 12 minutes, 59 seconds Got it. Got it. Thank you sir. 13:04 13 minutes, 4 seconds Thank you. We take the next question from the line of Raj Sha from RK family office. Please go ahead. 13:12 13 minutes, 12 seconds Am I audible? Yes Raj. 13:16 13 minutes, 16 seconds Yeah. Uh so uh hi. Uh this year there was a volume deg growth in our jo business and in the last quarter you had 13:23 13 minutes, 23 seconds told that Jobbox services are in demand and uh due to the price rise jobbox services are in demand. So what is the outlook for FY27? 13:33 13 minutes, 33 seconds How many kgs do we target and what is the order book? 13:38 13 minutes, 38 seconds So uh generally if you see the value of merchandise in job work last year and this year you will find that there is a 13:46 13 minutes, 46 seconds significant increase. Uh now when you say about the quantity uh if the coal price has doubled and let's say the 13:55 13 minutes, 55 seconds revenue uh you know has not doubled that means there is certainly going to be a dip in terms of quantity you know now uh 14:04 14 minutes, 4 seconds you know uh what we see in what I had told in the last quarter was that there's a preference that corporate 14:13 14 minutes, 13 seconds jewelers are having because of steep increase in price that they are going for job work instead of wholesale 14:20 14 minutes, 20 seconds business and thus uh there is a you know a change in how the demand is uh getting to us and I we as a company would always 14:29 14 minutes, 29 seconds prefer job book because we get cold a little bit in advance hence uh you know uh it's it's a it's a better thing for 14:37 14 minutes, 37 seconds us but uh g given that in quarter 4 we are uh seeing some difference in quarter 14:43 14 minutes, 43 seconds 4 the wholesale sales actually increased uh you know to 56% and uh you know some 14:51 14 minutes, 51 seconds of the people who were doing job work uh tilted their demand into full sales. The better way of looking at this as uh you 14:59 14 minutes, 59 seconds know this is combining the B2B segment of both uh uh you know streams that is 15:07 15 minutes, 7 seconds job work kg plus wholesale kgs or uh you know and then multiplied by the average value. So just to give you a 15:16 15 minutes, 16 seconds perspective, the total amount of uh value of merchandise this year that we have sold is 1251 crores. The retail 15:24 15 minutes, 24 seconds segment has done 408 crores and the B2B segment has done 843 crores. So this will be a better picture to look at and 15:32 15 minutes, 32 seconds you know thus both the things will get combined. 15:38 15 minutes, 38 seconds So in in looking forward uh we don't know whether the demand will going is going to come from job work much uh or 15:46 15 minutes, 46 seconds the demand is going to come from the wholesale but in whichever way the B2B demand is coming we are just equip 15:53 15 minutes, 53 seconds equipping ourselves to serve it if you ask my preference I would really go for job work despite it not 16:02 16 minutes, 2 seconds correct so the reason I ask this question because I think uh in the current year um like bulk of our uh bulk 16:11 16 minutes, 11 seconds of our like significant portion of our profit is because of our of our job work services and if in next year uh the 16:20 16 minutes, 20 seconds jobbox services are lower uh then it will take a good hit on on our profits. 16:26 16 minutes, 26 seconds So that is the reason why I'm asking about this. 16:30 16 minutes, 30 seconds So uh you know if you check the value of merchandise now if it is coming from job work or wholesale the value of merchandise should actually increase. 16:39 16 minutes, 39 seconds What is the value of merchandise this year it is 1251 crores. Now say next year if job work remains for an example 16:46 16 minutes, 46 seconds just just a case if job birth remains consistent at 600 let's say 21 crores and wholesale increases to let's say 16:54 16 minutes, 54 seconds again couple of hundred cr still the bottom line will be secured. If you're talking about margins that you know the margins will improve or decrease 17:02 17 minutes, 2 seconds depending on the sales mates because jobbox is contributing highly in terms of you know the bottom margins etc then your point is valid but if you're 17:09 17 minutes, 9 seconds talking about absolute number change then uh we should look at the value of merchandise okay got it uh then uh currently there 17:18 17 minutes, 18 seconds is uh 336 cr uh kg of gold on our on our balance sheet and uh the gold price has 17:25 17 minutes, 25 seconds risen and uh there reduction in volumes in all our three segments because of of course uh price has increase. So do we 17:32 17 minutes, 32 seconds still need 200 K more gold for Rajat and Surat or it has reduced and some of our some of our current gold can transfer can get transferred. 17:43 17 minutes, 43 seconds So there is a 336 crores of inventory which is lying it's I don't think so it 17:50 17 minutes, 50 seconds is kgs and sorry no that is fine uh so but the intention of your question is quite clear that how 17:58 17 minutes, 58 seconds much do we need in Surat and Rajcot so these are large format stores like how we have in Ahmedabad a typical large 18:05 18 minutes, 5 seconds format store will need an inventory of somewhere around 125 to 150 crores so there will inventory shift there will 18:13 18 minutes, 13 seconds be an addition additional uh debt uh which will be required and hence uh the all the showrooms will be funded. Uh we 18:21 18 minutes, 21 seconds see Surat and Rajot both are a very potential market. Ahabad uh ranks number 18:27 18 minutes, 27 seconds seven, Surat ranks number nine and Rajot ranks in the top 20 economies of India. 18:34 18 minutes, 34 seconds Hence uh the large stores are uh there has to be a large store and it is in the in the right prominent location where 18:41 18 minutes, 41 seconds the gold market is basically situated and uh thus the amount of inventory that we are forecasting is required doing all 18:48 18 minutes, 48 seconds the competitor analysis the consumers etc. We have previously done exhibitions also in this areas to you know and we 18:56 18 minutes, 56 seconds have got sufficient marketing budget to push it. Yeah. So the reason I'm asking you to uh it's it's in continuation. 19:05 19 minutes, 5 seconds It's in continuation. This is the last uh question I'm asking. So uh what I'm asking is uh gold price has risen and 19:12 19 minutes, 12 seconds volumes have uh reduced uh and because of that do you think that the earlier estimate of our uh 150 125 K of gold in 19:22 19 minutes, 22 seconds our new showrooms is required because uh due to uh rise in gold prices volumes have decreased that's why I'm asking uh 19:30 19 minutes, 30 seconds that 120 150 K has it reduced and uh because uh uh volumes is not coming in our current business some of our current 19:38 19 minutes, 38 seconds gold can get transferred uh to uh Raj for Rajcot and Surat. 19:45 19 minutes, 45 seconds Correct. Correct. So again I I think I had answered this. So there will be a transfer of stock in terms of kgs. Uh 19:52 19 minutes, 52 seconds but your fundamental uh question was that if we are allocating some rupees uh then will it get reduced? The answer is 20:01 20 minutes, 1 second no. Why? Because people generally when the gold prices are rising still they are you know their value does not the 20:09 20 minutes, 9 seconds budget does not change like for an example. Okay. Now 20:18 20 minutes, 18 seconds that is different but generally people the behavior of consumer is to buy from a budget perspective. Now peak debt will 20:26 20 minutes, 26 seconds be increased right. What will be our peak debt after uh we take the this loan because currently 120 crores are in short-term debt. 20:34 20 minutes, 34 seconds We we want to we want to we want to stay uh we want to keep the debt levels at uh one one is to1 ratio ideally or 1 is to 20:42 20 minutes, 42 seconds 1 maybe leverage to 1.4 1.5 but generally uh right now I think for this 20:49 20 minutes, 49 seconds four showrooms it'll be around uh 1 is to 1.2 to at least for this this career that I'm understanding. 21:01 21 minutes, 1 second Thank you. We take the next question from the line of Shikar Mundra from Vivok Commercial Limited. Please go ahead. 21:08 21 minutes, 8 seconds Uh hi Ari. Uh congrats on a good set of numbers. Uh what was the approximate inventory gains this year uh because of the increase in gold prices? 21:19 21 minutes, 19 seconds So it's a nice question. uh uh so currently uh I do not have a you know a number on it but uh in future uh let me 21:29 21 minutes, 29 seconds let me take this up into you know number categories and etc stuff but u I think 21:35 21 minutes, 35 seconds uh assuming that around uh around 10 to 12 crores or 10 to 11 crores 12 crores should be inventory gain number that is 21:44 21 minutes, 44 seconds what we are anticipating on the you can I mean if uh gold prices then not to increase I think somewhere where around 21:51 21 minutes, 51 seconds uh uh 40 45 crores should be should be the bank. I'm I'm still see this is just 21:59 21 minutes, 59 seconds a very very uh don't take don't take me on numbers because if we are having it we I would have said it right now we don't have that inventory gain number as 22:06 22 minutes, 6 seconds such what we really have is the cushion that we have uh from the current market price to the inventory and that is around 20 25%. 22:16 22 minutes, 16 seconds Okay. He has not but uh like assuming no inventory gains then what would have been our profit 22:23 22 minutes, 23 seconds growth like compared to last year FI25 I'm just trying to get that. If you say 40 45 k then that's uh not a 22:31 22 minutes, 31 seconds yeah so so supposedly if so uh generally when we calculate uh you know gold uh if 22:38 22 minutes, 38 seconds we do if we were to do a GML like how other players do then the in the interest cost should have been half 22:46 22 minutes, 46 seconds right so we'll be saying somewhere around 8 cr rupes in our interest cost and uh subtract the inventory gain maybe 22:54 22 minutes, 54 seconds and that will become the uh but uh exactly if I if I could have the number I would have given it to you right now we don't but I hope that in 23:02 23 minutes, 2 seconds future this number transparency will be better I I just hope there's no commitment got it got it got it and my second 23:11 23 minutes, 11 seconds question is our trade receivables have jumped like from 17 to 56 what's the reason for the same so this 23:18 23 minutes, 18 seconds must be 24th of March there was an eight mission in Bangalore ISIa And of course because of the condition 23:27 23 minutes, 27 seconds there was a spike in sales that's akedya this year came in a little early if you understand from 30th of April 2025 to 19th April 2026. 23:40 23 minutes, 40 seconds Hence that last 10 days of March where a little bit of there was a little bit spike in sales and the data now it has come down again to a normal level. 23:50 23 minutes, 50 seconds Got it. Got it. Right. Thank you and all the Thank you. Thank you. 23:56 23 minutes, 56 seconds Thank you. We take the next question from the line of Yash from Dandequitti. Please go ahead. 24:04 24 minutes, 4 seconds Hi. Um, so just wanted to understand uh I think you know shared number kind of missed it. What would be the uh 24:11 24 minutes, 11 seconds inventory required for the next upcoming two stores? 24:16 24 minutes, 16 seconds So uh inventory generally both the stores are large format stores. We anticipate about 125 to 150 K of inventory for each store. 24:27 24 minutes, 27 seconds Uh are are we anticipating any sort of dilution to fund this? 24:33 24 minutes, 33 seconds No, I think in uh uh raise of debt plus inventory transfer plus the profit gain would actually suffice it. 24:41 24 minutes, 41 seconds Right. Uh as far as the next uh three years are concerned because I think you're very focused on Gujarat as a state, right? 24:49 24 minutes, 49 seconds uh just wanted to understand uh why the focus on Gujarat is it because you're a local player there uh because I mean you 24:58 24 minutes, 58 seconds anyways do a lot of wholesale right so I'm assuming you have supply chain networks throughout um uh why not Mumbai 25:06 25 minutes, 6 seconds uh right uh why not any other city uh just curious uh not not a not questioning anything 25:13 25 minutes, 13 seconds yeah yeah so that that is fine it's a good question in fact you know so if If you if you look at Gujarat and pinpoint 25:21 25 minutes, 21 seconds the pan India players that are present in Gujarat uh there are there are four to five players who are having 25:28 25 minutes, 28 seconds approximately a nil level presence in Gujarat they are having maybe some six seven stores just take out the data from any stats and you know maybe all the 25:36 25 minutes, 36 seconds paninda players you can take it out apart from a one player there is no other player who has penetrated the Gujarat market or been successful and in 25:44 25 minutes, 44 seconds Gujarat there is particularly no chain brand so that's clear white space that we are having. But why is that? 25:52 25 minutes, 52 seconds Why is that? The market is great. Uh there are southern pan India jewelers uh who have not been able to cater to this 26:00 26 minutes market well and hence we are in we have an opportunity over here. I mean we should realize this as fast as possible. 26:09 26 minutes, 9 seconds Uh we should become uh a good jeweler uh you know a chain store in Gujarat and because there's a clean white space. I 26:17 26 minutes, 17 seconds just take out the number uh you know I cannot uh but but if you take out the number of let's say an eastern player or a southern player having x number of 26:25 26 minutes, 25 seconds stores in a particular state in which in which it was their home ground I think those many numbers of stores we should 26:33 26 minutes, 33 seconds be having in our home ground if the GDP data and the population data matches and which matches right Gujarat is a 26:41 26 minutes, 41 seconds prosperous state and that's a clear white space available and hence this this this uh thought you know after a 26:48 26 minutes, 48 seconds lot of uh and you know debates and things have come out to be very clear that yes yes we should go forward for 26:54 26 minutes, 54 seconds this thing. But uh is it do you uh so uh just uh pick from the original question 27:01 27 minutes, 1 second do you think uh uh in the next 3 years or four years or 5 years when you're looking at growing your retail business 27:08 27 minutes, 8 seconds which you obviously are uh uh do you think it's wise to be concentrated in just one state I got your POV in terms 27:17 27 minutes, 17 seconds of the lack of retail uh chain uh presence in organized wry in Gujarat uh 27:24 27 minutes, 24 seconds but What would you think like five years ahead or 3 years ahead do you think it's wise for there will be there is no yeah yeah so 27:32 27 minutes, 32 seconds there is a vision and uh you know aspirations 100% are there uh you know in future to expand we are we we are 27:40 27 minutes, 40 seconds certainly right now we are a single flagship store we are going to have let's say four stores in this calendar 27:47 27 minutes, 47 seconds year but uh uh you know uh and we are talking about becoming a good player in state of Gujarat uh but we are not 27:55 27 minutes, 55 seconds restricted to Gujarat itself. Let us first you know play out this this four five stores etc. Well and you know uh 28:04 28 minutes, 4 seconds you know uh let the pulse come. I think we are 100% aggressive in terms of scaling. If you look at post IPO things 28:13 28 minutes, 13 seconds uh you will understand that you know when we when we came to IPO our turnover was around 300 crores. Now we have reached let's say 600 crores. The profit 28:21 28 minutes, 21 seconds margin was X. The pack level was 22. So we have reached to let's say 50 55 we will be scaling and uh the company has 28:29 28 minutes, 29 seconds got aspirations to become we will be not we are not restricted to any of our you know states or anything like that let 28:36 28 minutes, 36 seconds the opportunity come let the capital good so what's been your request to please join back with you for follow-up 28:44 28 minutes, 44 seconds questions yeah I'll do that thank you ladies and gentlemen in the interest of time and fairness to others 28:53 28 minutes, 53 seconds We request you to restrict to two questions per participant. 28:57 28 minutes, 57 seconds We take the next question from the line of Rajendal Pasi from NP analyst. Please go ahead. Hello. Am I audible? 29:06 29 minutes, 6 seconds Yes, you're audible. 29:08 29 minutes, 8 seconds Yeah. So, hi Har. Uh so, uh my first question is um initially we planned that we are going to uh open the two doors 29:17 29 minutes, 17 seconds like one in early T2 and the other one maybe in late T2. So is the timelines still correct and about 29:26 29 minutes, 26 seconds the showroom third and showroom fourth do we have any estimated timelines now previously because you you didn't 29:34 29 minutes, 34 seconds provide any estimated time lines of the third and fourth which you're talking yeah so I think uh the timelines for uh 29:41 29 minutes, 41 seconds suras and batch court remains same and uh the timelines for uh the third and 29:48 29 minutes, 48 seconds the fourth store Still it is a little early to give but we should be opening in the season time but within this year. 29:59 29 minutes, 59 seconds Yeah within this calendar year. 30:01 30 minutes, 1 second Okay. And uh the other question would be regarding uh a sharp increase in the fixed budget as well as uh a sharp 30:10 30 minutes, 10 seconds increase in the current work in progress. So is it related to these two showrooms which are going to be open in Q2? Correct. 30:19 30 minutes, 19 seconds Okay. And as we mentioned that as a criteria came in early this year right 30:25 30 minutes, 25 seconds on 19th of April and uh you had a big uh sale in the Bangalore side in the late of March and that increased the 30:34 30 minutes, 34 seconds receivables to 56 cr this year. So what is the current status of receivables as of today? 30:41 30 minutes, 41 seconds the current status uh you know it has gone to a normal level basically cannot actually disclose the number but you will certainly get it in the quarter one 30:49 30 minutes, 49 seconds of the results uh but yes there was a spike and it has now uh it has now reduced generally the data days in 30:57 30 minutes, 57 seconds wholesale are approximately 30 days so the realization has happened okay and and how this quarter has been 31:05 31 minutes, 5 seconds for us so far since because now there has been a peak and 31:13 31 minutes, 13 seconds sentiment is no no very honestly I'll tell you see post Modi we are also gauging right and 31:21 31 minutes, 21 seconds you are also gauging and uh whatever the anticipation is I think ground level reality will matter the most you know 31:28 31 minutes, 28 seconds all the assumptions etc you know we will not be working on that we'll be working on what the customers and the real-time demand is now how has been April April 31:37 31 minutes, 37 seconds has been very Thank you. We take the next question from the line of Om G Cole from Adit Wealth Advisory. Please go ahead. 31:49 31 minutes, 49 seconds Hi. Am I audible? Hello. Yes, please go ahead. 31:56 31 minutes, 56 seconds Hello. Thank you. Yes. U recently that uh like our prime minister told that everyone should not purchase 32:04 32 minutes, 4 seconds gold for one year, right? And also we are planning to open new stores in Q2 and Q3 like so how we are going to face 32:13 32 minutes, 13 seconds the situation like what will be our strategy to pull the demand and all. So this is my first question. 32:21 32 minutes, 21 seconds Yeah. So uh so uh see uh the prime minister has uh requested that uh you 32:30 32 minutes, 30 seconds know you all know what the announcement is and uh uh uh let us see what the impact of that 32:39 32 minutes, 39 seconds words you know are and how will it remain. India is a much rooted in a traditional uh you know country. So 32:48 32 minutes, 48 seconds certainly if there is weddings and the prime minister has said etc stuff uh will that really you know stop the you 32:58 32 minutes, 58 seconds know buying of gold jewelry and you need to have social status uh there is a lot of uh traditions uh 33:05 33 minutes, 5 seconds that are going on uh I don't think so things are going to really uh you know let let let's see uh again what you're 33:13 33 minutes, 13 seconds telling me about what you're asking me is about strategy and uh uh what what we are seeing is that there's a huge market 33:23 33 minutes, 23 seconds there is a new market that we are exploring and uh you know uh we are in 33:30 33 minutes, 30 seconds this game for a very long term and uh hence this kind of things uh will come uh and uh because of our marketing spend 33:39 33 minutes, 39 seconds if you were expecting X it will be X minus some percentage but in the overall kitty it has to really grow uh 33:48 33 minutes, 48 seconds uh currently uh I really don't have you know that level of u you know I really don't have uh you know exact uh uh 33:56 33 minutes, 56 seconds strategy saying but exchange of gold is one thing that everyone is looking forward likewise we will also look forward uh uh is that going to make 34:05 34 minutes, 5 seconds everything just perfectly okay we don't know the best part about our company is we are in occasion occasion jeweler more 34:13 34 minutes, 13 seconds hence all the demand is linked through weddings So daily wear purchases here and there can can really take a pause but I don't think so dailyware occasion 34:22 34 minutes, 22 seconds where we actually take a pause you know and perhaps uh let us go all in for the occasion uh you know the the upcoming 34:30 34 minutes, 30 seconds market like the season time I think uh uh rest uh you know see we as an uh 34:38 34 minutes, 38 seconds organization we go we go all in for the season times we will not uh I understand the sentiments and etc but But the 34:46 34 minutes, 46 seconds announcement has come on a very favorable time. It's a low season time. 34:50 34 minutes, 50 seconds Uh know if the announcement has come on day and etc. It will be very different but not that condition of Yes. 34:58 34 minutes, 58 seconds Let us see. Let us see. Yeah. 35:00 35 minutes Okay. Okay. Well understood. Thank you so much sir. Yeah. Thank you. 35:05 35 minutes, 5 seconds Thank you. We take the next question from the line of sor dole from fire asset management. Please go ahead. 35:13 35 minutes, 13 seconds Yeah. Good evening. Uh I have two questions. Uh first is uh when you say the stores that you plan to have in 35:21 35 minutes, 21 seconds let's say a city like Gambin uh I'm curious to know why would you start with a small store? Is it uh you know for 35:29 35 minutes, 29 seconds capital constraints or you're not as positive about this particular market versus say your current uh you know end 35:36 35 minutes, 36 seconds of our market. So that is question one and the second one is uh can you talk about the two stores through the clutch 35:43 35 minutes, 43 seconds code uh what is the you know how much time will it take for these stores to kind of uh come to end level sales you 35:52 35 minutes, 52 seconds did about 400 cing fi26 from I mean roughly on a volume equivalent 35:59 35 minutes, 59 seconds basis when do you think uh it will I mean solo then will be touching these levels. 36:06 36 minutes, 6 seconds So uh first question was Gandhiagar location. Uh Gandhiagar comes into the northern side of Ahmedabad. 36:15 36 minutes, 15 seconds Uh from center Ahmedabad uh you know is a 10 kilometer or 12 km uh radius kind 36:23 36 minutes, 23 seconds of a circle city and Gandhi just comes at around 15 km or so. It's a very good 36:30 36 minutes, 30 seconds location to have you know basically we are having a presence in the north of Hindabad. 36:36 36 minutes, 36 seconds It is going to act as a feeder store and also certain kind of it's a right catchment area because it is any catchment with which is spread 7 36:45 36 minutes, 45 seconds kilometers far consider is considered to be a good area to open a retail store. 36:49 36 minutes, 49 seconds It itself a nice city. It is one of the prominent city in Gujarat. A lot of advantages is what we are able to see. 36:58 36 minutes, 58 seconds uh there is a market over there and also the brand itself the brand presence is if the people are seeing multiple modes of that same brand again and again here 37:06 37 minutes, 6 seconds and there in the city the the brand is going to increase the visibility is going to increase basically so yeah 37:13 37 minutes, 13 seconds seems to a very promising and strategic location the uh the second store will be on the eastern side of Ahmedabad again 37:21 37 minutes, 21 seconds it will it will really have a good impact on the brand overall because then we are having you three stores in uh in Ahmedabad or in 37:31 37 minutes, 31 seconds and around Ahmedabad. Uh now the the second question about uh Surat and 37:37 37 minutes, 37 seconds Rajport. Uh uh how the sales are going to turn up etc. Uh see we are uh when 37:46 37 minutes, 46 seconds whenever the store is happening it is happening for a very long period of time. We generally do a long-term lease agreement. So you know uh we uh this is 37:55 37 minutes, 55 seconds too much a nent kind of a stage wherein we would comment anything and I don't know you know uh ultimately what what it 38:05 38 minutes, 5 seconds will land to but let us look let us be you know let the time pass let a month pass we will understand how the market 38:13 38 minutes, 13 seconds is reacting right uh uh there might be another news coming up suddenly we don't know right the market will sentiments 38:22 38 minutes, 22 seconds and I think you people are much better in understanding how quickly market changes the sentiments. So we you know 38:30 38 minutes, 30 seconds we just wait and watch. We are good at our domain at what we do and we will continue to do that. Uh be it expansion, 38:37 38 minutes, 37 seconds be it generating uh better uh profitability, be it growing the organization 38:45 38 minutes, 45 seconds uh being fundamentally investing in the company's infrastructure. This is all things that we will continuously do. 38:53 38 minutes, 53 seconds Right. Right. No. Uh the first question I the main thing was that why would you start with a smaller store uh in US 39:01 39 minutes, 1 second because you want it to be store strategy. It's a strategy. Large format, mid format and small format are three formats of stores that company will 39:10 39 minutes, 10 seconds generally have. We have got two large format stores in Surat Dashport and two mid format stores to start with Hundagar and Moneyagar which are considered to be 39:17 39 minutes, 17 seconds a strategic location. So any any market which has a lesser population will have mid format stores. Let's say a if a 39:25 39 minutes, 25 seconds market has a 50 lakh population like Ahmedabad has some 70 80 lakh population there will be a large format store is good over there. If a Rajot market has a 39:33 39 minutes, 33 seconds population of let's say uh 20 lakh 30 lakhs it will be a large home. If a market is having the population of let's say uh 10 lakh people or eight lakh 39:40 39 minutes, 40 seconds people or six lakhs people then there will be a mid format score. It depends on the size of the market and uh then the decision will be made. It has got nothing to do with other things. 39:52 39 minutes, 52 seconds Thank you. We take the next question from the line of Sahil Patani from Strokes Capital. Please go ahead. 40:00 40 minutes Hi, thanks for the opportunity. Um, so wanted to understand what is your capacity utilization for FY6. 40:08 40 minutes, 8 seconds The capacity utilization is approximately 50% or 55%. 40:14 40 minutes, 14 seconds Okay. Uh I know in one of your slides you've mentioned that you are targeting uh maximum peak capacity utilization by 40:21 40 minutes, 21 seconds 26. So is this can we say like 50 to 55% is your peak or do you think we have more room to grow before like going into 40:30 40 minutes, 30 seconds like further capex and taking on more expansion? 40:35 40 minutes, 35 seconds See uh when I uh when I did an IPO it was in 2023 December let's say 54 fiscal year the price was 60,000 rupees. Okay. 40:46 40 minutes, 46 seconds My single artician was able to do let's say uh 800 g to,000 uh 1,000 g per month 40:53 40 minutes, 53 seconds and hence I calculated the capacity to be let's say two tons and they have 200 carriers. Now the gold prices has 41:01 41 minutes, 1 second increased from uh 60,000 to 1 and a half lakh. Now the same artician is still doing 1,000 g. Okay. Uh he has not his 41:11 41 minutes, 11 seconds potential is to 2,000 g. So in rupee wise my capacity has increased uh to 41:17 41 minutes, 17 seconds let's say 3,000 crores from let's say 1200 crores before right in when I when I did the IPO. So because of the value 41:25 41 minutes, 25 seconds of commodity price gets getting increased the you know it is right now we are in a comfortable state still 41:32 41 minutes, 32 seconds despite doubling our revenue uh you know and I think uh right now we are not 41:39 41 minutes, 39 seconds looking for any kind of apex in manufacturing setup uh we are at a comfortable scenario. 41:47 41 minutes, 47 seconds Got it. Got it. Thanks for that. And uh my second question is Arit with these four new stores coming up this year uh 41:54 41 minutes, 54 seconds by how much are you expecting to grow your top line and bottom line for 27? 42:00 42 minutes You know uh I think in the scenarios like this uh we would really not give out the guidance for this year. Uh not 42:09 42 minutes, 9 seconds that we are not optimistic for it or anything but you know let us reserve this guidance. Uh let us talk about the 42:17 42 minutes, 17 seconds month of April or miday. It has been good. April has been very good. Uh you know May we are yet to have 15 days 42:25 42 minutes, 25 seconds more. So we cannot even comment about the month May. Uh but I think uh we uh 42:32 42 minutes, 32 seconds to talk about future or coming season or etc. We are optimistic. I can just say 42:39 42 minutes, 39 seconds that uh um we are investing uh but uh we don't know exactly you know what is what 42:48 42 minutes, 48 seconds is uh what is going to be you know how the scenarios are going to turn up etc etc etc the market is huge market is big 42:55 42 minutes, 55 seconds you know it is not that India is a concrete consumable consumer market so nothing diverse or inverse is going to 43:03 43 minutes, 3 seconds happen we are uh and henceh we are looking you know for we looking for the for the market very aggressively. There 43:10 43 minutes, 10 seconds might be a haircut here and there but we don't know even if that is going to happen or not. Let us wait and watch there you know there is no guidance for this you are frankly saying 43:19 43 minutes, 19 seconds okay yeah that is that is fine basically because previously you know whenever you've guided you more or less met it right so it's fine that you are taking a 43:26 43 minutes, 26 seconds pragmatic approach but we expect in the coming quarters when you see kind of the picture getting clear you kind of give 43:32 43 minutes, 32 seconds some sort of uh I would be very I would be very honest uh you know in that in that case uh you 43:40 43 minutes, 40 seconds would be getting uh guidance or etc stuff Once see it is too early. The government has just announced it in a 43:48 43 minutes, 48 seconds very recent time. We the market has reacted in a different way. We are waiting how the consumers are reacting 43:56 43 minutes, 56 seconds and you know it is too less a time for me to judge channelize or you know understand anything and tell you. 44:03 44 minutes, 3 seconds Yeah. No makes sense. Uh thank you and organized. Thank you. Thank you. 44:08 44 minutes, 8 seconds Thank you. We take the next question from the line of Deep JS Sancheed from Vana Finance. Please go ahead. 44:21 44 minutes, 21 seconds Dep please unmute your line and proceed with your question. 44:23 44 minutes, 23 seconds Okay. Can can you hear me? Can you hear me? Yes. 44:27 44 minutes, 27 seconds Yeah. Hi. Hi. Uh sorry. Uh I just landed that way. Uh just wanted to understand 44:33 44 minutes, 33 seconds have have only two questions. uh one uh with Shringar uh coming into uh wedding 44:40 44 minutes, 40 seconds jewelry uh how much of uh uh you know a competition would uh you face have you seen into the BP? 44:52 44 minutes, 52 seconds Not really. I mean uh seeing their uh I think they are coming into a plain gold segment of uh wedding jewelry. They are into an antique segment of wedding 45:01 45 minutes, 1 second jewelry. So as such uh there is no competition. Uh on the other side uh they are in they the Ahmedabad antique 45:10 45 minutes, 10 seconds jewelry is very different from you know another regional uh antique jewelry and uh generally when a company comes it 45:19 45 minutes, 19 seconds takes you know time to mature itself in terms of any goods whatever the product 45:26 45 minutes, 26 seconds category they offer. uh you know right now we we are not seeing any impact of shringard as such. 45:35 45 minutes, 35 seconds Okay, great. That's uh reacting to some and uh the second thing is now with uh the current uh um I mean the gold prices 45:44 45 minutes, 44 seconds increasing a government focus on uh uh you know reducing gold imports with uh more of uh with especially with uh this 45:53 45 minutes, 53 seconds uh uh duty and uh sales increasing a lot of uh gold from the black market would 46:01 46 minutes, 1 second come in. How much do you see that you know the corporate business will be affected because of this because there will be a difference in the prices which 46:09 46 minutes, 9 seconds the corporate will offer and what uh the normal jewelers can offer. 46:17 46 minutes, 17 seconds So see uh you are you are partially you know correct that the prices of uh you 46:25 46 minutes, 25 seconds know the unorganized or the local jewelers would be different from the corporate jewelers or their cost would be different let's say but uh consumer 46:33 46 minutes, 33 seconds market will run on the brands and you know the trust that they have etc. So uh 46:40 46 minutes, 40 seconds let me let this again too soon for to gauge anything because the news are very recent. You know let the time pass. I 46:49 46 minutes, 49 seconds think uh couple of months or one one month at least to observe will be a very nice thing. In fact a quarter will be a very right thing. I think by August 12 46:58 46 minutes, 58 seconds when we come up we should be able to say something more better and concrete and how the how the IGS turns up. You know 47:05 47 minutes, 5 seconds uh I I know you have been visiting IS and etc. I think marketure. 47:15 47 minutes, 15 seconds So I think uh let us let us look at the market and uh I I I think still uh from 47:22 47 minutes, 22 seconds the company's point of view we are uh we are optimistic but at the same time we are uh conservative. We are conservative 47:30 47 minutes, 30 seconds in the sense that uh we will you know we we are not the the we are from the current market level the inventory is 20 47:38 47 minutes, 38 seconds 25% uh you know conservatively uh kept and I think those are the good signals that we are having otherwise we 47:46 47 minutes, 46 seconds are optimistic in terms of a long-term expansion plan right and if I can squeeze in one more question uh that uh you know how 47:55 47 minutes, 55 seconds confident are you especially with the new store openings uh you think that you know even in this kind of scenario you will be having all the openings and the 48:04 48 minutes, 4 seconds on the prescribed date only or you want to you know go slow how how how you as a entrepreneur are looking into this. 48:12 48 minutes, 12 seconds So we want to enter the market in a season time market is big uh opportunity is there uh there is a clear 48:21 48 minutes, 21 seconds transformation in the from you know from the unorganized market to the organized market. We really think there is an 48:29 48 minutes, 29 seconds opportunity doing all the studies about the panindia players and etc in Gujarat their presence etc is really motivating 48:37 48 minutes, 37 seconds us to go ahead very uh you know as fast as possible and covering the market of Gujarat. I think uh we should from the 48:47 48 minutes, 47 seconds company's point of view we should not waste more time and scale as much as possible. Uh short-term hiccups and all are okay. We are here for the business 48:55 48 minutes, 55 seconds and for long term. So there is no question about uh consumption and there is no question about the transformation 49:03 49 minutes, 3 seconds both are happening. uh the short-term things can yeah I mean ultimately if if you see Modi has told that one year 49:12 49 minutes, 12 seconds purchase right it will not be a it is not going to be longer otherwise also this is on a lighter note but the statement will you 49:20 49 minutes, 20 seconds know let us see in a in a month or two what is actually happening otherwise we are we are in for expansions 49:28 49 minutes, 28 seconds okay always pleases Dr. to you Har and all the very best and uh uh all the very best for the store 49:35 49 minutes, 35 seconds openings and we're looking forward to uh be in the store openings also. Sure. Sure. Sure. 49:42 49 minutes, 42 seconds Thank you. We take the next question from the line of Mos Oranka from Oruram Capital. Please go ahead. 49:51 49 minutes, 51 seconds Sir, I want to understand you made around 92 Ka in Fi 26. So can you provide in a break up how much uh of it 49:59 49 minutes, 59 seconds was in B2C and some B2B like a ballpark number to understand? 50:05 50 minutes, 5 seconds I think uh I don't have the numbers very much handy uh as of now you were talking 50:12 50 minutes, 12 seconds about margins and etc. But uh what I can really tell you is uh you know uh I 50:20 50 minutes, 20 seconds think the from the revenue contribution side sales of merchandise if you look at it uh we have 1251 crores which of the 50:28 50 minutes, 28 seconds total value of merchandise. Now if you divide it into B2C and B2B around 850 crores or 840 crores is into B2B and 408 50:37 50 minutes, 37 seconds crores are into retail. Now breaking that up, I think it's a uh 3366 ratio 50:45 50 minutes, 45 seconds and uh generally we get a lesser margins in wholesale and in a B2B segment than in a B2B to C segment. Uh I think there 50:54 50 minutes, 54 seconds is a uh 3% or so margin difference. So I think that will be sufficient for me to 51:01 51 minutes, 1 second derive every numbers beta, beta, OPM etc. 51:05 51 minutes, 5 seconds Okay. And also like we are into antique jewelry and antique jewelry is like the highest margin segment against margin segment in terms of markups or whatever. 51:14 51 minutes, 14 seconds So uh gold jewelry yes in terms of gold jewelry yes otherwise diamond would be the highest margin segment but in gold jewelry antique will be the highest margin segment. 51:23 51 minutes, 23 seconds Okay. So generally like what's so the difference between gross margins in B2B and V23 would be just 3%. 51:34 51 minutes, 34 seconds Uh so when you talk about uh uh B2B and B2C uh the gross margins uh I was 51:42 51 minutes, 42 seconds talking about the OPM but even if you say the gross margin it depends on the national retailer or the regional retailer or the local jeweler whom you send. Okay. 51:52 51 minutes, 52 seconds But generally could you like provide me a a range at which like uh for example I think uh retail would be around 10 to 15% gross 52:01 52 minutes, 1 second margin you might have and then yes retail would be around uh 12% or 14% GP wholesale will be around 7 to 8% GP. 52:13 52 minutes, 13 seconds B2B will be around 6 to 7 7 and 8% GP. Yeah. Okay. I have a couple of questions. 52:20 52 minutes, 20 seconds We'll get back to this. Yeah. 52:25 52 minutes, 25 seconds Thank you. We take the next question from the line of Raj Sha from RK family office. Please go ahead. 52:33 52 minutes, 33 seconds Um am I audible? Yes. 52:38 52 minutes, 38 seconds Yeah. Uh so sir after uh considering accident uh what uh will be the peak debt uh and uh are we comfortable at that number? 52:50 52 minutes, 50 seconds See business is fundamentally right now leveraging that we are right now underleveraged. I think we are very much 52:59 52 minutes, 59 seconds comfortable given uh the the position we are in you know to even have this year we are having equity of 300 crores by 53:08 53 minutes, 8 seconds the time we open showroom half year you know we are almost in the quarter two of the next year. So I think we are in a very comfortable situation with respect 53:17 53 minutes, 17 seconds to debt equity ratios etc. Don't see any challenge over there. 53:21 53 minutes, 21 seconds So 1 is to1 we are targeting like 300 cr of equity and 300 cr of debt overall like broadly one one.2 is to1 1 1.5 is 53:31 53 minutes, 31 seconds to1 is what we are targeting. Uh it should be good I mean that that that's the right uh we we particularly believe 53:38 53 minutes, 38 seconds even if you uh see in the peers competition etc. 53:43 53 minutes, 43 seconds uh people work at a high debt level and uh be it any of the larger companies etc and I think those bets are reasonable 53:52 53 minutes, 52 seconds enough 1 is to1 is in fact a right thing but we can leverage it to one one is to 1.5 also 54:00 54 minutes thank you thank you we take the next question from the line of rishi kotari from capital 54:09 54 minutes, 9 seconds bridge advisor please go ahead Hello. Thank you so much for taking the question. 54:19 54 minutes, 19 seconds But your audio is not clear. Could you please use your hands? 54:28 54 minutes, 28 seconds Is it audible now? Hello. Yes, please. Go ahead. Yeah. 54:33 54 minutes, 33 seconds Yeah. Thank you so much for uh taking my question on the retail front which more or less companies focuses on going 54:40 54 minutes, 40 seconds forward. Uh as you said that we have two sets of uh retail store format. One is flagship and other is mid market segment 54:49 54 minutes, 49 seconds kind of a format right. So that you categorize because we go with population thing that that always sort 54:58 54 minutes, 58 seconds of particular thing we have our retail format channel but are there other factors that influence the sort of 55:06 55 minutes, 6 seconds retail format we go with population that we are developing from from there. 55:13 55 minutes, 13 seconds So basically the demographic study that we'll be asking for what is the you know gram of gold consumption per capita is 55:21 55 minutes, 21 seconds what you know we will be understanding we'll be studying the competitive markets we'll be studying the you know the space that we really have inside 55:29 55 minutes, 29 seconds that area etc. we we would be wanting to study you know in the catchment area of let's say around 7 six kilometers do we 55:38 55 minutes, 38 seconds have another opportunity you know what you know uh there's there's a lot of uh you know research that goes into goes 55:45 55 minutes, 45 seconds into it but uh you know ultimately uh ultimately if there's a marketplace and if it's a growing market space place we 55:54 55 minutes, 54 seconds certainly want to go in uh we have an understanding about merchandise quite deeply as we are attracting into the 56:02 56 minutes, 2 seconds same market of Gujarat, right? So Andabad we have got a very good success despite having zero legacy. You know the 56:09 56 minutes, 9 seconds store is new fresh the brand is new fresh and we have proved that in a few years uh in retail even in the jewelry 56:17 56 minutes, 17 seconds segment things can roll up very easily you know uh and it gives us a real motivation to actually go forward and you know dive in other marketplaces. 56:27 56 minutes, 27 seconds Okay. Understood. Uh makes sense. Now following up to this question I mean of course you already have to open new 56:34 56 minutes, 34 seconds stores in a B1 but do we have any sort of future plans I I know it's a bit early to ask for it that tier three or 56:43 56 minutes, 43 seconds four I think there's a small set of you know um jewelry shop format where I think most of the market that we're 56:51 56 minutes, 51 seconds looking at pretty much on organized I think that's where the real market capital could be for us so we have that sort of future focus for the company. 57:03 57 minutes, 3 seconds See if you're talking about u placing the brand into tier three or tier four cities if there is a consumption 57:12 57 minutes, 12 seconds uh I mean why won't the brand go let us map out which are the lowhanging fruits and basis on that uh the strategy will 57:20 57 minutes, 20 seconds be prepared where to really place ourself or not currently if you look at it in Gujarat Ahmedabad Surat Rajput Boda are four prominent cities we should 57:29 57 minutes, 29 seconds be targeting at opening this kind of cities and making the brand more stronger by opening more stores within the same city. So if uh there is a good 57:39 57 minutes, 39 seconds opportunity uh you know for a tire three or tire four city we see that we will we will we will go forward and we will uh 57:47 57 minutes, 47 seconds you know do it but as of now in this calendar year uh four stores is what what is coming up too large and too big. 57:56 57 minutes, 56 seconds Okay. Company is open for uh any kind of uh uh you know any kind of retail stores 58:05 58 minutes, 5 seconds for the coming year for you know in the coming years if the opportunity is there. 58:10 58 minutes, 10 seconds Okay. Understood. Got it. Thank you so much for answering the questions. 58:17 58 minutes, 17 seconds Thank you. We take the next question from the line of Yash from Dandequity. Please go ahead. 58:24 58 minutes, 24 seconds Yeah. Uh so um just wanted to understand uh I kind of understood uh what you just 58:30 58 minutes, 30 seconds explained about uh how your um wholesale uh manufacturing capacities uh at 50 to 58:37 58 minutes, 37 seconds 60%. uh with our retail growth um endeavors. So the next 2 three years uh when do you think our uh capacity will 58:47 58 minutes, 47 seconds hit higher uh 8085 8085 digit numbers in terms of capacity utilization. 58:55 58 minutes, 55 seconds Um see even if the retail stores are coming the retail model is also getting uh the work done uh you know we are also 59:02 59 minutes, 2 seconds getting the job book done from other vendor players. So it's first is that using the in-house capacity versus uh 59:11 59 minutes, 11 seconds doing the combination of getting uh the product sourced plus going inhouse I mean the combination really works well 59:18 59 minutes, 18 seconds and uh at least for a couple of years let us understand where the gold prices is heading you know what is actually 59:25 59 minutes, 25 seconds happening and then take a call uh see to increase the capacity is not a um you know it is not going to be that much of 59:33 59 minutes, 33 seconds a problem the supply basically is not a problem. So, uh the the issue would be that uh you know if the gold prices 59:42 59 minutes, 42 seconds jumps from here to let's say 2x I don't know whether it's going to happen or not. Even 60,000 we thought the prices are high. So you know uh if it is then 59:51 59 minutes, 51 seconds there will be no almost no need of in increasing capacity from here on. But let us let us study let us uh understand 1:00:00 1 hour the market better. Right now we are at 50 55%. That is the truth. 1:00:05 1 hour, 5 seconds Right. My second question is regarding uh this whole uh started dwelling segment that seems to be the highest 1:00:12 1 hour, 12 seconds margin, highest growth business. Uh you're looking at blue stone, carrot lane and uh uh a couple of new age uh 1:00:20 1 hour, 20 seconds you know players coming in especially uh I don't know about west India but at least as far as south India is concerned uh strategic 1:00:29 1 hour, 29 seconds in terms of margins, debita growth uh uh revenue growth, top end growth. What uh I I do get the focus on antique jewelry 1:00:36 1 hour, 36 seconds but I want to understand from you that uh uh from lab drone diamonds to studed 1:00:42 1 hour, 42 seconds jewelry uh uh you know everyday jewelry what what's your view on these segments 1:00:49 1 hour, 49 seconds uh and uh you know when are we going to do something in in in in this sort of uh uh a market. 1:00:58 1 hour, 58 seconds So right now we are not doing labrown diamonds. Right now we are into uh the daily wear jewelry and the occasion 1:01:05 1 hour, 1 minute, 5 seconds jewelry be it antique or diamonds. uh how much aggressively we are looking for stated jewelry that is a diamond jewelry 1:01:13 1 hour, 1 minute, 13 seconds that if you are asking that type of a question company uh will have a you know company uh as a whole has a view of 1:01:22 1 hour, 1 minute, 22 seconds still uh you know being into the segment of antique jewelry and uh realizing its potential. So you have seen that okay 1:01:30 1 hour, 1 minute, 30 seconds diamond jewelry does well in terms of margin but in gold category being the safest category antique has a very good 1:01:37 1 hour, 1 minute, 37 seconds margins. So uh and it's a very safe thing to play. Now with gold you can really take the you know you can really take the risk of expansion and there is 1:01:46 1 hour, 1 minute, 46 seconds no cash flow stoppage in this because gold itself is liquid. So it's a good place to be and if you strategically look at it uh you can explore experiment 1:01:55 1 hour, 1 minute, 55 seconds uh you know and if it uh you know fails even let's say 5% 10% then you can remelt it and reuse it. With diamond it becomes tough you need a very different 1:02:04 1 hour, 2 minutes, 4 seconds kind of an ecosystem etc. We as a company will be developing that and uh the the strength is anticulary. We will 1:02:12 1 hour, 2 minutes, 12 seconds be utilizing the strength for the expansion. 1:02:16 1 hour, 2 minutes, 16 seconds So we are keen on taking aggressive steps to in all the categories or taking forward the steps in all the categories but aggressively looking at empty right now. 1:02:26 1 hour, 2 minutes, 26 seconds Right. No. Uh but uh do you see potential in the categories that I just mentioned to you? 1:02:32 1 hour, 2 minutes, 32 seconds Yeah. Yeah. Yeah. I see potential in diamond jewelry, studded jewelry. Why not? there is a market right because uh obviously I mean uh uh 1:02:40 1 hour, 2 minutes, 40 seconds uh just on the diamond jewelry I did read a post uh uh you know by uh economic desk saying that diamond uh 1:02:48 1 hour, 2 minutes, 48 seconds natural diamond jewelry is hit uh a decade low or two decade low in terms of their pricing right uh natural diamond 1:02:56 1 hour, 2 minutes, 56 seconds jewelry so uh that is one thing and the second thing is the um at least as far as next generation is concerned right uh 1:03:04 1 hour, 3 minutes, 4 seconds the gen uh or the generation above that uh as far as they are concerned I think uh they are more into everyday jewelry 1:03:12 1 hour, 3 minutes, 12 seconds nothing too flashy uh you know um uh and solitaire and uh lab grown diamonds and um studded jewelry in in in a very basic 1:03:21 1 hour, 3 minutes, 21 seconds sense. So I really hope you kind of look at that segment too a little more seriously. uh uh the antique jewelry is a great segment but I also believe that 1:03:29 1 hour, 3 minutes, 29 seconds the studied jewelry is a low capital intensive uh business compared to uh uh you know pure gold business. 1:03:37 1 hour, 3 minutes, 37 seconds Yeah, I I mean uh let us let us look at the market. See the size of market for antiques itself very very big. So when 1:03:45 1 hour, 3 minutes, 45 seconds you're talking about other market like are we having diamond? Yes, we are having diamond as a category. Are we looking forward that for that thing? 1:03:52 1 hour, 3 minutes, 52 seconds Yes, we are looking forward for that thing. Now let grown and all we are really not looking forward. And as far the consumer behavior goes, the Gen Z 1:03:59 1 hour, 3 minutes, 59 seconds and all, the first shopping that any girl does by herself is her wedding 1:04:06 1 hour, 4 minutes, 6 seconds jewelry, right? So you can really take an example of your own families uh you know that when a when when a girl 1:04:14 1 hour, 4 minutes, 14 seconds genuinely selects a jewelry for her own that is the first occasion is always the bridal occasion. uh and post then when 1:04:22 1 hour, 4 minutes, 22 seconds she enters the stage of 30s she basically enters into the daily wear segments of jewelries celebrating her anniversaries and joyous occasions etc. 1:04:32 1 hour, 4 minutes, 32 seconds So uh when they are selecting the bridal jewelry we are right on it we are sitting on the antique jewelry segment. 1:04:39 1 hour, 4 minutes, 39 seconds So who is catering to the uh uh first customer who is going to be a Gen Z customer looking forward for a gold 1:04:46 1 hour, 4 minutes, 46 seconds jewelry? It will be our brand uh in the positioning way. I mean the occasion where what you're talking about daily wear. Yes, Gen Z will wear daily but 1:04:55 1 hour, 4 minutes, 55 seconds when are they going to wear daily wear jewelry like gold and all in college times? No. Post the college time when they are getting married they are getting married in the occasion where 1:05:03 1 hour, 5 minutes, 3 seconds and then they'll be buying the daily wear jewelry on their anniversary etc. 1:05:07 1 hour, 5 minutes, 7 seconds what I mentioned. Hence, this is how the consumer behavior is working for us. 1:05:14 1 hour, 5 minutes, 14 seconds Thank you. We take the next question from the line of Rajendal Pasi from NP analyst. Please go ahead. 1:05:22 1 hour, 5 minutes, 22 seconds I'm audible. Yeah. Yeah. Yes. 1:05:26 1 hour, 5 minutes, 26 seconds Yeah. Uh so I wanted to ask like as the growth uh growth budget have risen so much, right? So across industry we are 1:05:35 1 hour, 5 minutes, 35 seconds seeing a trend that there will be you know uh exchange of gold will happen more as compared to the new gold buying by the customers. So what kind of trends 1:05:44 1 hour, 5 minutes, 44 seconds are we seeing right now and what do you anticipate on this part? 1:05:49 1 hour, 5 minutes, 49 seconds See uh the sense of uh you know it is too early to comment on what is the trend that we are seeing. Uh like you we 1:05:58 1 hour, 5 minutes, 58 seconds are also observing uh are there walk-ins in the store? Yes, there are walk-ins in the store. Is the business happening? The business is 1:06:06 1 hour, 6 minutes, 6 seconds happening. Now, if you're telling me to show a trend, basically you will be motivating people to exchange gold. Uh 1:06:14 1 hour, 6 minutes, 14 seconds do they really want to exchange? Depends on them. Do they want to listen, not listen, behave in whatever ways we are here to analyze and then react. Okay. 1:06:25 1 hour, 6 minutes, 25 seconds Our intention is to sell jewelry in whichever mediums it is possible. Be it exchange or be it a fresh bag. Now uh 1:06:33 1 hour, 6 minutes, 33 seconds you know I think uh more or less it is uh you know the gold prices has risen etc. This has happened in past in 1:06:40 1 hour, 6 minutes, 40 seconds historic way. Gold has always risen and we see that generally 40 to 50% of the jewelry is exchanged and 40 to 50% or 50 1:06:50 1 hour, 6 minutes, 50 seconds to 60% is a new mile. Will this trend change? I don't know. Let me let me let me gauge it for at least a month or two or a quarter. 1:07:01 1 hour, 7 minutes, 1 second So as of now you're saying that it is already at 50%. 1:07:06 1 hour, 7 minutes, 6 seconds Yes it is it is showing the same momentum a little bit exchange is increase but this is too soon a data I mean what I will tell you in 3 five 10 days. 1:07:15 1 hour, 7 minutes, 15 seconds Yeah. Yeah that is that is fine and my second question is like from and if I have heard it correctly you mentioned 1:07:22 1 hour, 7 minutes, 22 seconds that from the starting of FY 27 we have started on the daily segment as well. So what kind? 1:07:31 1 hour, 7 minutes, 31 seconds Yeah. 1:07:32 1 hour, 7 minutes, 32 seconds What what kind of growth are we expecting or do we have any internal numbers uh from the retail side or uh what kind of you know orders are we 1:07:41 1 hour, 7 minutes, 41 seconds expecting or have we had any discussion from our uh wholesale side whether it is from the job work or B2B side. Uh so any 1:07:49 1 hour, 7 minutes, 49 seconds any so you know inside of we are yeah so we are in daily wear segment we are already doing good daily wares in 1:07:56 1 hour, 7 minutes, 56 seconds terms of our retail store uh the consumption is approximately uh 35% of daily wear and uh 65% of occasion wear. 1:08:06 1 hour, 8 minutes, 6 seconds Now when it comes to B2B segment we have we are doing a pilot testing in IGS we'll be launching a few varieties of 1:08:14 1 hour, 8 minutes, 14 seconds let us sense how this how this comes across uh and uh post that I think uh post the learnings and the learning 1:08:22 1 hour, 8 minutes, 22 seconds curve will be developed and then we will be telling you how how are we really launching it or you know this is just a pilot testing that we are doing for B2B 1:08:30 1 hour, 8 minutes, 30 seconds side uh in direct terms like what all have we launched as of now like from 10 karat or maybe 18 karat 20 karat. 1:08:42 1 hour, 8 minutes, 42 seconds Yeah. So antique jewelry 18 karat is what we have really sold uh in the quarter three there are there's a good 1:08:49 1 hour, 8 minutes, 49 seconds interest of corporates looking for 18 karat antique jewelry. Uh the company has also made some color stone 1:08:58 1 hour, 8 minutes, 58 seconds collection which was needed again by a corporate and uh it has turned out to be a positive response. But these are 1:09:06 1 hour, 9 minutes, 6 seconds collections. Let us see the longevity of it. Uh know let us then understand uh 1:09:12 1 hour, 9 minutes, 12 seconds you know what kind of market generally the sense is that low carage anticularly uh is 1:09:20 1 hour, 9 minutes, 20 seconds you know is still in experiment. this season or this uh coming year will actually able to translate that what you know how how much kg we produce in that 1:09:30 1 hour, 9 minutes, 30 seconds category but yes we we we are producing 18 karat jewelry as well as a little bit of color stone jewelry also uh that we 1:09:37 1 hour, 9 minutes, 37 seconds have got orders and we have dispatched and and what about from the daily side on the car side 1:09:45 1 hour, 9 minutes, 45 seconds so dailyware side we are I told you right pilot testing has been done and in August we will understand uh what is the you know how So how did it how did it 1:09:53 1 hour, 9 minutes, 53 seconds work? Did we get orders? You know we do do we need to improve our products much better? You know what is to be done? Uh 1:10:01 1 hour, 10 minutes, 1 second that segment will uh you know we will understand it better once uh you know we get the reviews from the market in a 1:10:08 1 hour, 10 minutes, 8 seconds very stronger way and that is the right platform for that would be an exhibition. 1:10:13 1 hour, 10 minutes, 13 seconds Got it. But as you already mentioned that we are already doing uh 35% in our retail right. So can you provide like uh 1:10:21 1 hour, 10 minutes, 21 seconds the details from that part like uh what kind of carrots are customers generally you know picking up 18 karat 18 karat is generally picked up 1:10:30 1 hour, 10 minutes, 30 seconds more in terms of growth 18 karat is gaining more growth than 22 karat uh but 22 karat still remains as a preferred category. 1:10:45 1 hour, 10 minutes, 45 seconds Thank you ladies and gentlemen. Due to time constraint that was the last question and we conclude the question answer session. I now have hand 1:10:53 1 hour, 10 minutes, 53 seconds conference over to the management for their closing comments. 1:10:58 1 hour, 10 minutes, 58 seconds Uh thank you all uh for participating in the earnings conference call. If you have any further questions or would like to know more about the company, please 1:11:07 1 hour, 11 minutes, 7 seconds reach out to our investor relationship manager at Welleram Advisors. Thank you. 1:11:13 1 hour, 11 minutes, 13 seconds Thank you. On behalf of Wellm Advisers, that concludes this conference call. Thank you for joining us.