PUSHPA - Pushpa Jewellers
Financial Performance
Revenue Growth by Segment
Total income grew 10.09% YoY to ā¹ 28,127.08 Lakhs. The gold jewellery segment remained the primary revenue contributor, while diamond-studded jewellery recorded healthy growth and silver jewellery saw steady sales momentum.
Geographic Revenue Split
Domestic operations are primary, with moderate growth in exports to the United States, the Middle East, and select Asian markets.
Profitability Margins
Net Profit Ratio improved significantly from 5.19% to 7.93% due to cost-controlling measures. Net Profit for the year stood at ā¹ 2,980.25 Lakhs, marking an increase of 64.13% YoY.
EBITDA Margin
Not explicitly disclosed, but Net Profit grew 64.13% to ā¹ 2,980.25 Lakhs, driven by cost controlling measures and operational efficiencies.
Capital Expenditure
Not disclosed in absolute INR Cr, but the company maintained records for Property, Plant and equipment and did not revalue assets during the year.
Credit Rating & Borrowing
Debt Equity Ratio increased from 0.23 to 0.38 as the overdraft limit was enhanced by the bank. Debt Service Coverage Ratio improved from 9.69 to 22.67.
Operational Drivers
Raw Materials
Gold, silver, and diamonds are the primary raw materials, subject to price volatility and high import duties.
Import Sources
Not explicitly disclosed, though export markets include the United States, Middle East, and Asia, implying global supply chain links.
Capacity Expansion
Expansion is focused on Tier-II and Tier-III cities and increasing omni-channel retail presence.
Raw Material Costs
Volatility in gold and diamond prices impacts procurement costs and working capital requirements; high import duties on precious metals also influence margins.
Manufacturing Efficiency
Return on Capital Employed (ROCE) decreased from 43.65% to 38.87% during the year.
Strategic Growth
Expected Growth Rate
10.09%
Growth Strategy
The company plans to achieve growth through expansion into Tier-II and Tier-III cities, strategic investments in digital infrastructure for omni-channel retail, and targeting the Indian diaspora in international markets.
Products & Services
Gold jewellery, diamond-studded jewellery, silver jewellery, and gem-studded jewellery.
Brand Portfolio
Pushpa Jewellers.
New Products/Services
Lightweight, personalized, and contemporary designs targeting younger urban customers.
Market Expansion
Targeting Tier-II and Tier-III domestic cities and international markets including the USA and Middle East.
External Factors
Industry Trends
The industry is shifting toward branded, certified, and hallmarked products, with increasing emphasis on ESG compliance and ethical sourcing.
Competitive Landscape
Intense competition from both organized and unorganized players continues to exert pricing and margin pressures.
Competitive Moat
Brand equity, operational efficiencies, and a customer-centric approach provide a competitive advantage in a market evolving toward transparency.
Macro Economic Sensitivity
Demand is sensitive to rising disposable incomes, urbanization, and seasonal factors like wedding and festive periods.
Consumer Behavior
Younger buyers are gravitating toward lightweight, personalized, and contemporary designs.
Geopolitical Risks
Geopolitical tensions and disruptions in supply chains present risks to export-oriented business lines.
Regulatory & Governance
Industry Regulations
Operations are affected by hallmarking norms, responsible sourcing requirements, and high import duties on precious metals.
Environmental Compliance
ESG compliance and traceability are emerging as key differentiators for consumer and investor emphasis.
Taxation Policy Impact
Regulatory changes and taxation policies are cited as factors that may require operational adjustments and additional compliance costs.
Legal Contingencies
The company reports INR 0 in pending litigations, stating there is no impact on its financial position.
Risk Analysis
Key Uncertainties
Volatility in commodity prices (gold/diamonds) and regulatory changes in hallmarking or taxation are key business risks.
Geographic Concentration Risk
Primary revenue is domestic, with export concentration in the USA, Middle East, and select Asian markets.
Technology Obsolescence Risk
The company is mitigating technology risks through strategic investments in digital infrastructure and ERP systems.
Credit & Counterparty Risk
Trade Receivable Turnover Ratio dropped from 47.27 to 22.72 due to improper realization during the year, indicating increased credit risk.