💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment of diamond-studded gold jewellery. Total operating income grew 27.19% in 9MFY25 to INR 191.12 Cr from INR 150.26 Cr in 9MFY24. For the full year FY24, revenue was INR 230.47 Cr, a slight decline of 1.27% from INR 233.44 Cr in FY23.

Geographic Revenue Split

100% of revenue is generated from international markets, specifically the UAE, Saudi Arabia, Qatar, Kuwait, and the USA.

Profitability Margins

Net profit margin improved to 4.77% in FY25 from 4.23% in FY24. 9MFY25 PAT margin stood at 4.98% compared to 3.50% in 9MFY24, driven by better operational efficiencies and higher scale.

EBITDA Margin

EBITDA margin improved to 8.56% in 9MFY25 from 6.63% in 9MFY24. For FY24, the EBITDA margin was 7.05%, up from 6.56% in FY23, representing a 49 basis point improvement.

Capital Expenditure

While no major capex was executed in FY24, the company has announced plans to establish a new manufacturing facility outside the SEEPZ zone to target the Indian domestic market. Historical tangible net worth increased to INR 53.97 Cr in FY24 from INR 45.42 Cr in FY23 due to profit accretion.

Credit Rating & Borrowing

The long-term rating is IVR BBB-/Stable, upgraded from a Negative outlook in March 2025. Short-term rating is IVR A3. Total rated bank facilities amount to INR 35.50 Cr. Interest coverage improved to 6.36x in 9MFY25 from 4.51x in 9MFY24.

⚙️ Operational Drivers

Raw Materials

Primary raw materials are gold and diamonds used for studded jewellery manufacturing. Raw material price volatility is a key constraint on profitability.

Import Sources

Imports accounted for 21% of total purchases in FY24, sourced globally to support 100% export-oriented production.

Capacity Expansion

Current manufacturing capacity is over 500 pieces per day at the SEEPZ facility. Planned expansion includes a new facility outside SEEPZ to cater to the domestic Indian market.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; susceptibility to price fluctuations in gold and diamonds impacts margins, though EBITDA grew 64.16% YoY in 9MFY25 to INR 16.35 Cr.

Manufacturing Efficiency

ROCE improved to 31.74% in FY25 from 31.16% in FY24. Inventory turnover ratio significantly improved to 17.02 in FY25 from 12.65 in FY24, indicating higher throughput.

Logistics & Distribution

The company is 100% export-oriented, with distribution focused on major global hubs like the UAE and USA.

📈 Strategic Growth

Expected Growth Rate

27%

Growth Strategy

Growth will be driven by entering the Indian domestic market via a new manufacturing facility, launching a lab-grown diamond segment for environmentally conscious consumers, and forming strategic alliances with major jewellery chains and online marketplaces.

Products & Services

Diamond-studded gold jewellery and upcoming lab-grown diamond jewellery collections.

Brand Portfolio

Not disclosed in available documents; primarily operates through private-label manufacturing and retail partnerships.

New Products/Services

Lab-grown diamond jewellery segment targeting younger consumers in developed markets.

Market Expansion

Expansion into the Indian domestic market and strengthening presence in developed markets through sustainable jewellery options.

Market Share & Ranking

Not disclosed in available documents; operates in a highly fragmented market with intense competition from unorganized players.

Strategic Alliances

Building alliances with prominent retail networks, jewellery chains, and large-format retailers for exclusive product collections.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable luxury, with lab-grown diamonds gaining traction among younger demographics. The company is positioning itself by launching a dedicated lab-grown segment.

Competitive Landscape

Intense competition from both large integrated manufacturers and numerous unorganized players in the fragmented gems and jewellery sector.

Competitive Moat

Moat is based on the promoters' 30-year track record and established long-term relationships with international customers. Sustainability is supported by the SEEPZ location's operational advantages.

Macro Economic Sensitivity

Highly sensitive to global economic conditions and consumer spending in the UAE and USA, as well as gold price volatility.

Consumer Behavior

Increasing demand for ethically sourced and environmentally friendly jewellery is driving the shift toward lab-grown diamonds.

Geopolitical Risks

Susceptible to changes in trade policies, taxation structures, and government guidelines in India and major export countries.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (LODR) Regulations, SEBI (Prohibition of Insider Trading), and various Government of India export-import guidelines.

Environmental Compliance

Focusing on sustainable jewellery innovation through lab-grown diamonds to meet ethical standards in developed markets.

Taxation Policy Impact

Subject to Indian corporate tax and regulatory guidelines for SEEPZ-based export units.

Legal Contingencies

The company reported no instances of significant fraud or material legal non-compliance for the year ended March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Forex volatility and raw material price fluctuations are the primary business risks, potentially impacting margins by 2-3% in volatile periods.

Geographic Concentration Risk

100% of revenue is concentrated in international markets (UAE, Saudi Arabia, Qatar, Kuwait, USA).

Third Party Dependencies

High dependency on bank financing for working capital, with 91% utilization of fund-based limits.

Technology Obsolescence Risk

The company is mitigating technology risks by adopting lab-grown diamond manufacturing and innovative jewellery design processes.

Credit & Counterparty Risk

Trade receivables turnover ratio was 2.91 in FY25, compared to 3.22 in FY24, indicating a slight elongation in collection cycles.