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GOLDIAM reports its Q1FY23 results, share of Lab grown diamond & jewellery strengthens further
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  • Revenue for Q1FY23 stood at ₹ 1,410 mn
  • EBITDA stood at ₹ 320 mn, margin up by 110 bps YoY and 141 bps QoQ
  • Pat stood at ₹ 214 mn
  • Cash Balance as on Q1FY23 at ₹ 2200 mn

MUMBAI, India, Aug. 9, 2022 /PRNewswire/ --  Goldiam International Ltd. (Goldiam), an integrated manufacturer and supplier of fine diamond jewellery to leading retailers and wholesalers in the USA and Europe, has announced its results for the quarter ended on June 30th, 2022.

Q1FY23 started with a cautious optimistic note for the company on back of record-breaking inflation in major economies like USA. High Inflationary scenario in these economies lead to postponement of discretionary spending by the consumers and subsequently by the retail customers. Company was well prepared for this scenario and reacted with further emphasizing LGD jewellery and Ecommerce sales to address all these factors.

Company's lab grown diamond & jewellery played a pivotal role in protecting company margins for Q1FY23. Higher cost of polished natural diamond impacted margins for natural diamond jewellery business, however lab grown offerings cushioned such increase and generated a resilience performance for Q1FY23. Backward integration of lab grown diamonds has aided company's performance for Q1FY23.

Financial Highlights (Consolidated) – Q1FY23

Particulars (₹ in Mn)

Q1 FY23

Q1 FY22

Y o Y

FY22

Revenue

1,411

1,550

-9  %

7,124

EBITDA

320

335

-4.4  %

1,547

EBITDA margin

22.7  %

21.6  %

110 bps

21.7  %

PAT

214

238

-10.4  %

1,060

 

  • Consolidated Revenue during Q1FY23 decreased by 9% YoY to ₹ 1,411 million, due to higher inflationary scenario in USA. Lab Grown Diamond & Jewellery sales grew 5X from Q1FY22 to Q1FY23 showing robust & growing demand for this segment.
  • Consolidated EBITDA for Q1FY23 fell marginally by 4% YoY due to some postponing in jewellery buying in USA for its natural diamond jewellery. However, EBITDA margins witnessed a resilience and improved by 110 bps YoY and 141bps QoQ to 22.7%. Goldiam continues to benefit from its strategy of selling Lab Grown Diamond jewellery backed by captive Lab-Grown diamonds growing, presence across the value chain, and its omnichannel selling strength. The Company's agile and efficient raw material procurement strategy has also helped maintain its overall margin profile, despite inflation in mined diamond prices globally. The Company has also successfully been able to pass on price increases to its clients as on current date.

Lab-Grown Diamond & Jewellery business-enhancing overall margin profile:  The Lab-Grown Diamonds and Lab-Grown Diamond jewellery account for 15-20% of the Company's revenue in FY22 against under 5% for the jewellery export industry. However, from FY23 onwards the share of Lab grown diamonds has been further consolidating towards 25%.

Along with a focus on larger caratage diamonds, the Company has focused on integrating these diamonds into its jewellery distribution thereby securing captive consumption in a rapidly growing segment of the industry. This also allows Goldiam to enhance offerings as a larger caratage diamond  plays within the premium to super premium bridal category.

Order Book Status ensures Revenue visibility:  Goldiam has an order book size of ₹ 1,600 mn. This order book is expected to be executed in next four-six months. E-commerce sales, given their nature of being booked online (on a spot basis), are not part of the order book.

Commenting on the performance, Mr. Rashesh Bhansali, Executive Chairman, Goldiam International, said, "  FY22 was an excellent year for the company. FY23 started with a global inflationary scenario with various central banks increasing the interest rates. This created caution for discretionary spending for weddings, gifts etc. However, the company was well geared for this situation and introduced offerings accordingly. Our investment in Lab grown diamond facilities has been reaping benefits. On one hand where natural diamonds saw a price increase, backward integration of lab grown diamonds kept the margin profile of the company intact.

Total share of lab grown diamonds and jewellery in order book now stands at more than 30%, which was earlier at 20%. The journey of lab grown has been accomplishing new milestones for the company and provides an exciting headroom to grow from hereon. Awareness among domestic consumers is rising for lab grown diamond jewellery, and management is evaluating various omnichannel strategy to make an early breakthrough in domestic market as well.

With an increasing demand for Lab-Grown Diamonds, Goldiam had done a CAPEX to increase its capacity by 40% in FY22. We further expect to double our capacities over FY23 and FY24. The new capacity will be used for Goldiam's jewellery manufacturing & distribution business, leading to a more robust margin profile. We are confident about the Lab-Grown diamonds business going ahead. This has been further cherry-topped with our omnichannel delivery strategy, making our model even more lucrative for our customers."

About Goldiam International Limited

Goldiam International Limited  (NSE: GOLDIAM) (BSE: 526729) is a 3-decade old preferred OEM partner and exporter of exquisitely designed and luxurious diamond jewellery.  Functioning as the manufacturer of choice to many of the leading global branded retailers, departmental stores and wholesalers across American and European markets, the Company is also renowned for utilising responsibly sourced diamonds, leveraging cutting edge technologies and efficient manufacturing processes for optimal costings and quick delivery lead-times. Targeting the mid-to-affordable diamond & bridal jewellery segments, Goldiam has a dedicated sales office in New York, with design teams in both India and the USA.

Forward-Looking Statement:

Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Goldiam International Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

 

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