CHAIRMAN'S MESSAGE
Dear Shareholders,
As we reflect on the fiscal year 2023-2024, a year that has tested our resilience and
adaptability. Despite a challenging global environment, we have been able to navigate
market volatility by diversifying the Company's revenue base resulting in a stable
performance forthe year.
The past year was marked by significant pressures on demand in our key markets, due to
high inflation and interest rates. The post covid bounce back of travel and
experience-based entertainment options led to a reduced share of the customers wallet
towards jewellery. That said, western economies have shown resilience and economic
buoyancy despite hawkish central bank policies and we are seeing early signs of demand
stabilization for our products across channels.
Our emphasis on growing our branded jewellery business remains a strategic priority for
us. We expanded our licensing portfolio by signing new licenses during the year, which are
at various stages of development and testing. The launch of 'Wonder Fine
Jewellery'(combining Disney jewels, Star Wars™ and Marvel brands in one showcase)
with two major retail partners in the US has shown very good results. Our licensed brand
portfolio now includes Enchanted Disney, Marvel, Star Wars™, Disney Jewels, NFL, DC
Comics, Harry Potter, and House of the Dragon. B2B and D2C revenues from licensed brands
recorded a 3.4% YoY increase to T437 crore and they now represent 23.4% of the Company's
studded jewellery revenues.
Our In-house brands, led by the online lab grown diamond engagement rings business
acguired in 2022, have been showing very exciting growth at a CAGR of 152% over the last 2
years.This division looks promising in delivering double digit profitable growth over the
coming years as we continue to invest in this business through addition of senior level
talent in the US and setting-up cutting-edge production and design facilities in India to
serve unigue needs of these business models. We have recently appointed a CEO in the US to
head our In house brands business. She has extensive experience in growing luxury brands
through effective brand building and marketing strategies and we are confident in the
management's ability to scale our brandstothe next phase of growth.
Our India focused jewellery retail brand IRASVA is alsoshowing signs of reaching
breaking-even with 4 luxury boutigues in key locations across India. Revenues from
In-House brands increased 24.5% YoY to T187 crore and these brands now contribute -10% of
the Company's studded jewellery revenues compared to merely 1.5% in FY22.
FY 24 was a lacklustre year for our Customer Brands division with revenues declining
12.6% to close at Rs.1,239 crore. We expect this vertical to experience healthy growth
this year as we have entered OEM arrangements with some global fine jewellery and luxury
fashion brands, as they look to add Indian manufacturers as a part of their supply chains.
Another growth initiative under this division is developing exclusive brands in
partnership with major retailers to leverage specific ideas, trends and target markets.
Our plain gold business in the Middle East showed stability in revenue but EBIDTA
margins declined due to higher competition and input costs, resulting in lower return on
capital. To sharpen our strategic focus, we are currently exploring alternatives to exit
this business.This move is expected to release capital and enhance overall margins,
allowing us to concentrate on our high-margin branded segments.
Overall, our total income stood at Rs.2,117 crore, a decline of 5.6% from Rs.2,243
crore in FY23. Despite the revenue decline, EBITDA remained flat at Rs.168 crore, with an
improvement in EBITDA margins from 7.5% in FY23 to 7.9% in FY24, reflecting our focus on
cost management and operational efficiency. The Profit AfterTax, after discontinued
operations, stood at Rs.73.6 crore.
During the year, we were honoured to receive recognition at the 50th GJEPC award
ceremony, further affirming our consistent performance and leadership in the jewellery
export sector. This accolade reflects our commitment to excellence and innovation in all
aspects of our business.
Finally, an important area of focus for us during the year was sustainability. Apart
from continuing our unwavering support to child education, animal welfare and healthcare
for the needy, we have been actively focusing on measuring ourselves against globally
accepted sustainability metrics such as the UN Sustainable Development Goals. We have
significantly enhanced our efforts to reduce our environmental footprint and contribute
meaningfully to the communities in which we operate.
Overall, we continue to evolve from a private label B2Bplayertoan integrated Branded
jewellery player, operating in both B2B and D2C channels, with a robust growth pipeline,
leaner working capital and higher margins to boost the return on capital generated by the
business.
We thank you for your continued support and trust in our vision.
Sumit N. Shah
Chairman