💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Handicrafts (Glass Beads, Necklaces, Imitation Jewelry), which grew 11.85% YoY to INR 31.56 Cr in FY 2024-25.

Geographic Revenue Split

Mainly Varanasi-based commercial activity; the company identifies as an Export House, indicating a high percentage of international revenue, though specific % split is not disclosed.

Profitability Margins

Net Profit Margin for FY 2024-25 was 9.78% (INR 3.08 Cr), a slight improvement from 9.75% (INR 2.75 Cr) in FY 2023-24.

EBITDA Margin

Not explicitly disclosed, but Net Profit Before Taxation margin was 12.84% in FY 2024-25, up from 13.06% in FY 2023-24.

Capital Expenditure

The company is in the process of expanding into developing a Logistic Park/Godown to generate additional income; specific INR Cr values are not disclosed.

⚙️ Operational Drivers

Raw Materials

Glass, beads, and jewelry components are the primary raw materials; specific % of total cost is not disclosed.

Capacity Expansion

Expanding into Logistic Park/Godown development; current manufacturing capacity for beads/jewelry is not disclosed in MT/units.

Manufacturing Efficiency

The company employs 236 permanent employees (including 98 women) as of March 31, 2025; labor relations are reported as cordial.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be driven by the launch of the 'de-Lemon' retail brand in the indigenous market, online sales through Amazon and Flipkart, development of a Logistic Park/Godown, and continuous development of new handicraft designs.

Products & Services

Glass Beads, Necklaces, and Imitation Jewelry.

Brand Portfolio

de-Lemon

New Products/Services

New handicraft items/designs and the 'de-Lemon' retail product line; expected revenue contribution % is not disclosed.

Market Expansion

Targeting the indigenous Indian market through retail counters, stores, and e-commerce platforms.

Strategic Alliances

Online retail partnerships with Amazon and Flipkart.

🌍 External Factors

Industry Trends

The handicraft industry is seeing increased demand in international and indigenous markets, with a shift toward organized retail and e-commerce adoption.

Competitive Moat

Moat is derived from its status as a Government-recognized Export House and ISO 9001:2015 certification, ensuring quality standards for international buyers.

Macro Economic Sensitivity

Highly sensitive to global economic conditions and government fiscal policies related to exports (duty drawback, DEPB).

Consumer Behavior

Shift toward online purchasing for imitation jewelry and handicrafts via platforms like Amazon and Flipkart.

Geopolitical Risks

Trade barrier impacts and changes in international custom duties/government policies.

⚖️ Regulatory & Governance

Industry Regulations

Operations are affected by duty drawback schemes, DEPB, and custom duty on imports.

Environmental Compliance

ISO 9001:2015 certified; specific ESG compliance costs are not disclosed.

Taxation Policy Impact

Effective tax rate for FY 2024-25 was approximately 23.8% (INR 0.96 Cr tax on INR 4.05 Cr PBT).

Legal Contingencies

A 2.509-hectare land parcel was acquired by VDA in 2000; the company issued a forfeiture notice to 403 shareholders for 40,300 partly paid-up shares.

⚠️ Risk Analysis

Key Uncertainties

Future Covid-19 impacts, changes in duty drawback/DEPB rates, and exchange rate volatility could impact profitability by over 10-20% based on growth targets.

Geographic Concentration Risk

Commercial activity is primarily concentrated in Varanasi, Uttar Pradesh.

Third Party Dependencies

Dependency on e-commerce platforms (Amazon, Flipkart) for the new retail strategy.

Technology Obsolescence Risk

The company is mitigating technology risks by implementing new online retail systems.