RBZ Jewellers Limited (RBZJEWEL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the RBZ Jewellers Limited Q1 FY '25 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Harit R. Zaveri, Joint Managing Director. Thank you, and over to you, sir.

Thank you, Chorus Call, for arranging the call. So during the quarter 1 results of June 30th, the revenue has been around INR 82.41 crores and it has an increase of around 50% plus from INR 51.32 crores in the same quarter last year. The expense is INR 70.47 crores vis-a-vis INR 46.53 crores last year in the same quarter. And the bottom lines are -- have increased from INR 3.72 crores to INR 9.08 crores in comparison with quarter. The volume growth that the company has seen in the first quarter is 224 kgs of gold which is -- which includes sale of services, that is job work, versus -- and the sale of goods, that is B2B and the B2C line that we are in. The last year, same quarter, the volume was 144 kgs. So clearly, despite the prices rising from around INR 55,000 to INR 75,000 or INR 60,000 to INR 75,000 in the year time, the company has still retained its volume growth. And this -- because of the growth in the volume and the spike in the prices, the profits are there. Also in the preceding quarter, company had seen that due to the COGS getting higher, it has done a lesser profitability in the Q4, that is INR 2.69 crores, and that was -- and I think the reason for higher profitability was also that the base itself of the COGS was already low. So, yes, the business has done incrementally well. I think a 50% rise in volumes itself speaks a lot despite prices getting hiked by around 25% plus. And we are investing in the resources, that is HR resources. We are seeing a continuous increase in number of employees to match up our volumes and to gain all the time, right fundamentals in terms of resources in department. Also this result this year has been declared on the last day. That is because of the migration of software. We are -- this result has been declared from SAP software. So company has -- the legacy software is now gone and SAP -- we are an SAP-enabled company. The company is investing into machineries and technologies and into human resources, qualitative human resources. And I think the ERP getting better, all round performance of volumes is -- seem to be good. I think the way forward in the second quarter, because the first quarter of organized retailer is weak, the company would have a little bit of impact in the second quarter. The demand that was deferred in the quarter 4 of financial year '24, which was backed up because of Akshaya Tritiya was late. So, in the quarter 1, we had Akshaya Tritiya not in April midweek, but in the midweeks of May. So the company had demand on the first quarter at this time. Now the results of an organized retailer being low in the first quarter, the impact -- because we are a majorly B2B player, the impact will be seen in the second quarter. Due to duty rate cut in gold, organized retailers will have a strong demand coming in, in the month of July end. This will result into a very -- this has resulted already into good order books in the midweeks of August. That means that this year, the company will have strong quarter 3 forecast. I mean, we are -- our order book shows that our time lines to complete are much in the month of October than in the month of September, because again, the duty rate cuts have benefited us in terms of consumer sentiment and demand going up. And I think this year, we should judge Q2 and Q3 cumulatively rather than just judging Q2. So far, the exhibition has just finished, IIJS exhibition, which was again delayed by around -- generally, it happens in the end week of July. This time it has happened in the midweeks of August, that was from August 8 to August 13. We had -- it was a successful exhibition, and we are seeing a continuous growth in demand. When I speak demand, I mean rupees and volumes both. We will be, whatever the company has committed, we are going to -- we are on the right mark to achieve the INR 35 crores of PAT in this financial year. And the top line will have around INR 500 crores to INR 600 crores of turnover, more probably towards the INR 600 crores mark. I think apart from this, I know these are my remarks but apart from this, any questions that anybody has, we can continue with that.

[Operator Instructions] The first question is from the line of Prerna from RS Capital.

Congratulations on a good set of numbers. My first question is regarding the guidance that you had revised in the earlier quarter. Since the management commentary has been very positive, do you still plan to increase the guidance in the sense -- I believe in the last quarter, you told from 1,600 to 1,650 kgs of gold, which we had targeted for this year, you revised it to 1500. So are we going to be doing 1,500 or more than that?

So as of now, if we are looking at quarter 1 of last year, we had done 144 kgs. This year, despite prices rising from last year, quarter 1 prices were around INR 55,000 to INR 60,000. This year, the quarter 1 prices were around INR 75,000. But still, we have grown 50% in terms of volumes. Now this has come due to 2 reasons, sister. One is that in the quarter 4, there was a lag of demand due to extreme spike in prices and Akshaya Tritiya was 20 days deferred. If you see in '23 of -- in year '23, Akshaya Tritiya was in somewhere around April 22. This year, Akshaya Tritiya was in May 13 or May 10. So the days were deferred, and that is the reason the demand also -- was also deferred because the consumer or the retailers were confused at what rate to buy. Obviously, Akshaya Tritiya people would stock in, but at what rate? So that is where the Q4 did not pull up as much as demand and Q -- the quarter 1 of this year had pulled up a good demand, but we are seeing that even in quarter 2, demand will be good. But organized -- because of quarter 1, very new organized players, quarter 2 demand is not as optimistic as -- in terms of percentage, the growth is not as optimistic as quarter 1. Still, quarter 3 will suffice everything because ultimately, duty rate cut has helped a lot for organized players. If you see, there is a previous spike in demand in terms of retailers in quarter -- in the late weeks of July and the early weeks of August. So I think we will be doing -- I think we'll be doing good in terms of quarter 3. It will be a blended effect. Till last year, quarter 2 was #1. In this fiscal year, I think quarter 3 will be very strong because of the deferred demand also. Again, putting a blank shot on your question, we are still on the remarks of 1,500 kg of gold or plus. But yes, I think quarter 3 will -- quarter 2 and quarter 3 blended-ly will say a lot of things. If we are about 450 kg for quarter 2, then I think, yes, quarter 3, we will be able to match the demand of 1,500 to 1,600 kgs.

Okay, sir. Sir, as of Q1 FY '25, can you just give a revenue breakdown as to like what has been the B2B, the retail as well as the job work like? What is the percentage of revenue coming from each of these segments?

So if you talk about revenue coming from sale of services, it will be hardly marginal. Why? Because you just book your making charges over there. But on an overall basis, it is B2B -- if you talk about volumes, 80% of the volumes comes still from B2B model and in terms of revenue, 50%. Because 50% is sale of services. So if I had to tell you, let's say around 110, 120 kg, we have done sale of services this quarter. And total kg is 224. So if you put that into place, we have -- the retail portion in terms of volume is quite less, it is 20%. But if you -- but because sale of services only has making charge that is getting booked in terms of top line, in that case, 50% will be wholesale and 50% will be retail. But ultimately, we are a B2B player because 80% of the volume drives from B2B segment.

Okay. Sir, just one last question. In your retail, what has been the SSG?

I'm sorry?

Sir, what has been your -- the SSG, the same-store sales growth for your retail, your showroom. I think you have one in Ahmedabad, right?

Correct, correct. So right now, we are at -- last year, the top line was around INR 188 crores in retail. This year, we are expecting a top line of around INR 250 crores in retail. So that is around 35%, 40% growth. We are still expecting -- and it has a capacity to go up to INR 400 crores, INR 500 crores. Also, there was floor space that is getting increased. I think it should be operational in the month of October, here in 2 to 4 weeks. But yes, October start or October end, it has to be operational. I think with that, we will be able to generate again a good amount of revenue. But yes, retail is growing at around 35%, 40%, pace.

But our focus will be more on B2B, right? Because I remember in one of your interviews, you told that organized jewelry manufacturers are still at 15 percentage whereas organized retail is at 40%. So I think if we focus more on this since there is no competition over here much, it would be better than, let's say, retail.

Correct, correct. So when I say that we are 80% B2B, it clearly indicates that volumes are very strong in B2B. And we are -- even in this year, if you see, the major drivers will be B2B. If you check last year, 144 kg, this year, 224 kg in the same quarter, B2B has been the driver. So retail has its own level of growth. But again, we are focused into an occasion category B2B segment. And that is where the -- even in the next financial year, we are seeing the major growth engines to pull up. You are correct in saying that manufacturers are quite less in terms of percentage. And in occasion jewelry, it is much more lesser than the percentage that you have quoted. At least in daily wears, they are still organizing, but in occasion category, there are almost quite less than the percentage that you have quoted. And we are focused on the B2B business, on the corporate side of the business, and we will do -- the exhibition is getting over. And I can give you a fair remark that the volumes will be on the upward trend, be it wholesale, be it the job work, both in this financial year as a whole.

Okay, sir. And we'll be clocking this year, I believe, INR 600 crores in revenue and INR 35 crores in PAT according to...

Correct, correct, correct. That is where the indicator fits.

The next question is from the line of Deepesh from Manya Finance.

Am I audible?

Yes, sir.

Okay. You just mentioned, the last question, that lastly, your retail sales was about INR 188 crores. Did I get it right? And this year, you are expecting around INR 250 cores?

Correct, correct, correct. More or less correct. Yes.

That is from retail, from your Ahmedabad unit?

Yes.

From Ahmedabad showroom?

Correct.

And you're expecting INR 500 crores as total turnover in this year?

Yes. INR 500 crores of total turnover this year. INR 500 crores, INR 600 crores is what it is...

You're saying that 50% of it will come from retail?

Correct.

From the B2C?

Correct. So first, let us understand the business model. Again, let me go back to the business model. So RBZ has on a very broader perspective, you can say sale of goods and sale of services. The sale of goods happens in both B2C and B2B format. The sale of services only happens in B2B format. When I say sale of services, that means we get metal in advance, we book our making charges and that is a service that we provide. It is in one sense, that is a job of services that we do. So 50% of the business of volumes is through the job work. If I say 224 kg, we have done approximately 110, 120 kg of job work services. So if you -- and the job work figures will be -- because it is just booking the making charges and the salvages also comes under the closing stock, so particularly, one will not be able to gauge the business in terms of just top line. You need to see the volume figures and what is the sale of services business. Because though it indicates a very less top line, it has a very strong impact on the bottom line. So overall, we are a 20% B2C business despite having 50% revenue over there because 20% -- only the 20% volume is coming from B2C, whereas 80% volume is coming from B2B segment.

Okay. And the revenues are coming -- okay, it's 50-50 mix. Perfect. Now I wanted to understand how is the IIJS, first of all? And how much orders did we book in this? And so -- and since IIJS has happened in this Q2, why do you think that Q2 demand will be not as high as Q1 and Q3 will be stronger?

No. So Q2, the revenue booking will be higher, but the volumes of Q2 seems to be lower than the last year Q2 or it will be parallel. I just cannot comment that it will be lower, but it will be parallel. Now the reasons are that Q1, Akshaya Tritiya was deferred, right, for 15, 20 days. I have already mentioned that. So the organized retailers have booked and have bought it from us, but the sales did not happen as strongly as it should have happened in Q1 for them. Q2, due to rate cut -- duty rate cut, the strong demand has already flown. So the demand with them has, let's say, come in the month of -- if Akshaya Tritiya went great for all the organized retailers, you would have gone up very strong orders in Q2. But because the duty rate has helped, so we have got orders recently, that is in like August 15 or so. So we are seeing that this year, it would not be Q2 who would be having this hero story or a good, great quarter for us, it will be a blended effect. That means Q2 and Q3 cumulatively will have strong impact on the balance sheet, approximately I can say around 65% or so. So again, if you talk about revenue, yes, the quarter 2 revenue will be stronger than quarter 1 revenue. And quarter 3 revenue will be much stronger than quarter 2 revenue, but if you let us understand that the bottom line boils down with volumes being in place, so in terms of volumes or in terms of the sales of services side of business, Q2 and Q3 cumulatively will show you a stronger growth.

The next question is from the line of Sahil Patani from Stokes Capital.

Congratulations on a great set of numbers. I just have a query. I wanted to understand your employee expenses and finance costs went up this quarter compared to Q4 of the last financial year. So can you just explain why was that?

The number of employees and the team is what we are building up. If you see, we are -- the expenses, what we are projecting is we are still making sure that we are taking the right quality of team. Ultimately, brother, the company is actually too small. If you gauge, we need the right team, we need the right people in place. And for that, you need to spend. I mean, I think these expenses, I'm not seeing that, okay, 10% expenses year-on-year will get increased with the increments and all. But the team has also grown from, let's say, 183 odd to 233 employees as of July. So -- and we are still on a pattern that we have still a gap in employees and in the processes that we have set up. So more -- yes, more quality employees in place, stronger team in place. I think this is what also the company philosophy is. Not that it will not help us in boosting revenue. Once we have a good team, I personally look at it as an asset. And sure, it reflects on the expense side of the balance sheet or the profit and loss account, but it's fine until and unless you are doing strong in terms of performance and fundamentals are in place, and you're doing good and strong on your core areas. So I think finance team has gone up, and there are many functionalities of manufacturing. We have entered into an ERP software, which is a global ERP-type software from our legacy software. So more better controls in audit, more better controls in accounting. Ultimately, public is my partner and why do we want to have the best integrity in terms of numbers in place in every area, so that -- and for that, you need resources. I mean -- and in future also, this is going to be the case. But yes company will grow, it will grow because of these expenses and the deployment of money into these kind of resources or segments.

Got it. Got it. And just one more question. So obviously, we have a lot of retailers, big retailers as our clients like Senco, Joyalukkas. Now I want to understand, are there any new retailers that you're looking at? Are there inquiries for like having new clients on board? So just wanted to understand what that sales pipeline looks like for you to like onboard new clients and what from of future point of view are you looking at that strategy as well?

See, one is client expansion, other thing is client penetration. We have clients in play, right? I mean, when we say that we have -- if you just refer to our client list, we have Titan, we have Malabar, Joy. So these are massive players. Once you have this kind of client, it is then we want to look for how much more you can penetrate them versus how much less dependency is -- you as a company have from them. So yes, we have -- we do exhibitions to cater to new clients. And we have Bhima Jewellers and we have Senco, we do with Kalamandir in West, we do at P N Gadgil in West. So a lot of retailers is that we do -- but now doing with all these retailers, do we have enough resources to then supply? I mean at one point of time, we are catering to demand, but other of time, we need -- we should make ourselves sufficient enough to even supply goods. And how many of them are willing to give you advances in gold? Generally, it doesn't happen with the jewelry industry that the company gets advanced. It is very honestly, the sale of services side of business, if you notice, it is not there. Nobody gives you advanced goods. It is the expertise that we have that makes us unique, and it makes us a company, which demands for advances when it comes to retailers. So yes, customer penetration and customer expansion, both are in place. The IIJS has gone successful. We have gotten new good independent retailers and the corporate retailers as well. I think it will reflect you in numbers in the cumulative way in quarter 2 and quarter 3. But company will reduce dependency and will have an expansion base plus penetration, to answer you more precisely.

[Operator Instructions] The next question is from the line of Prince Choudhary from PINC Wealth.

Thanks for taking up my questions. In last con calls, you have mentioned that you have current capacity of around 1,700 to 2,000 kgs of gold and you're planning to expand it to 5x of the current capacity. So can you share some light by when it will be operational?

Correct. So we have right now the capacity of 1,700 to 2,000 kgs there. And as of this year, we are not expected to fulfill. I think 80% of the capacity will be maxed. I think by next -- we have to -- we are in the processes to spot a land and the construction and everything. But yes, we are 100% sure of going to the capacity of 1 lakh square feet plus. And that will be soon after this financial year-end, I think in next financial year, we should be able to get into that space. And nonetheless, the company does a lot of manufacturing in-house and also is a principal job worker to a lot of units in Ahmedabad and around. So we do not have any crunch in terms of capacities. We are not seeing any high crunch in terms of capacity that in-house we have or out-house we have. But in future, after a year or so, the company is planning for a bigger manufacturing setup, which will at least cater to around 5, 6 tons of demand.

All right. So we are in a process of land procurement and everything, right?

Correct, correct, correct.

All right. So how much revenue do you expect if it comes to operational and all?

I'm sorry, could you repeat it, sir?

How much turnaround do you expect from this, from the operational once it goes the size of the capacity?

So it will be -- the demand that we will be having, I think it will be incremental only. See, once you do a 5x capacity, it is not that you will get -- in 1 shot, you'll get a 5x demand. But because we have good clients and good client base with us, we are hopeful to have a demand. Let's say, I'm clearly indicating that, okay, by fiscal '26, we will be having around -- roughly around INR 44 crores of PAT and maybe around INR 800 crores of revenue. So I think 25% or so will be -- should be an incremental demand because it's ultimately a small company. One can easily grow that much. And if you have 6x of capacity in place, I think the demand, we should be able to utilize it for another, let's say at least -- it depends on how the funds are in terms of how much we can raise debt or how much funds we'll be able to gear up. And can we -- I mean, we are looking forward for becoming an occasion player in -- the #1 operation player across all categories, be it temple jewelry, be it antique jewelry that we are right now in, be it all other types of occasion categories. So I think these are all the future plans. And with that, we will be able to utilize. I mean, stronger demands will come in. But we are already having a decent pace of growth, and we will be maintaining that pace of growth.

The next question is from the line of Gaurav Agrawal from Nine One Capital.

Congratulations on good start of numbers. Sir, I did hear your FY '26 guidance. And also, if you have any 3-year plan that you wanted to give it to us. It would be great if you can give us a longer-term guidance.

So if you talk about the current financial year, I have already said the figure of around INR 500 crore to INR 600 crores of revenue that we'll be doing. I think then by next year, it should be around INR 800 crores. And subsequently, we should be able to at fiscal '27, it should be at least INR 1,000 crores plus that we are hopeful to get. I think roughly, the ROCE part of the balance sheet should remain consistent. So let's say, the balance sheet has a size of around INR 200 crores, it will generate profit of around INR 20 crores, INR 25 crores. Similarly, the other balance sheet sizes of INR 400 crores, because we have got INR 100 crores of equity and we will be raising INR 100 crores of debt, the PAT level should be around INR 40 crores to INR 50 crores or INR 44 crores that we have committed. And in the subsequent year, putting back all the profits, and -- I think we should be able to get INR 1,000 crores top line versus somewhere around INR 55-ish crores or INR 55-odd of profit. So this is a 3-year indicative figure that I would want to -- I'm hopeful to -- we are hopeful to project and -- but we are building the same fundamentals and in terms of human resource or ERP or machineries and all, we're building up in that phase. And on a macro level again, if you look at -- you can look at RBZ as a -- on the occasion where category has a very strong or the #1 player in the occasion where segment, wherein we will pull in demand from South or all the zones of India and catering to all the corporates in their domain. Let's say Malabar is stronger in South, we will cater to them for the southern market. Let's say, other jewelers are stronger in different, different zones, so we want to be their #1 preference in terms of occasion wear category.

Okay, okay. So sir, I guess now in terms of zones, where do you take your most revenue from? Is it North and the East or is it -- how much does it come from South and West? And where is your focus area for the next 3 years?

So generally, till date, RBZ has done most of its business in Northern, Eastern and Western belt. Now to, again, segment it, our Northern belt is more stronger than the Eastern Western belt. For the next financial year or so, we are focusing on -- we will be more focused on our Western belt. And then in the preceding year -- on the succeeding year, I mean, we will be doing Southern belt. So our continuous demand will be generating. We are already established in Northern, Eastern and the Western part and we are hopeful to generate -- penetrate more in that zone. In fiscal '27, we'll be able to attract the Southern demand also much stronger. So that opens approximately 40%, 50% of the market, which is still untapped or unopened by us. Yes that is my...

Understood. If I may ask one more question to you. So sir, as of now, we are only on the occasion wear side. So firstly, sir, of that overall organized market, the organized retailers market for the general sector, how much would this occasion wear be in terms of revenue percentage? And also, after we are done with these short term-plans and long-term plans, do we have plans to get into the non-occasion wear segment as well?

So right now, India has around 600 tons of market and 300 tons of market is purely into occasion wear segment. We are hardly a play of ton, ton and a half. Let us first at least reach -- can we reach 10 tons? Can we reach 20 tons? Can we reach 50 tons? I mean, besides the broader lines, I mean, where we are placed in, we have that scale. Now once we have the scale, let us encash our -- let us encash that scale. Then we can surely adopt. I mean, there is no issues with going into daily wear but [Foreign Language] and I think we should you should move forward in that zone. Why not actually mint the area where we are very strong? And in future also, there is no sign in which the occasion wear segment is getting dull. Marriage, it's an event-linked purchase. People buy gold because it's a marriage. I think this occasional wear demand has done great in quarter 1 also for us. So right now, we are focused in occasion wear sir. But yes, we are always open for manufacturing daily wear.

[Operator Instructions] The next question is from the line of Deepesh from Manya Finance.

Yes. So have you identified the land for expansion, which you're planning to do next year?

A lot of landfill has already happened, and I think we are waiting for -- I mean, yes, spotting has happened. It is too premature to say about the further things. But I mean, production capacity won't be a question when it comes to demand and flow. So capacity will be built up as and when it is required, but yes, the process is on.

Okay. And our IPO funds which we had raised, most of it cost for increasing the stock because I had spoken to you during our IPO. So how much stock have we increased out of the INR 100 crores which we raised?

Out of INR 100 crores that we raised, approximately INR 10 crores goes into the expense of IPO, rest of INR 10 crores is for general corporate purpose. And the INR 80 crores that we have is actually pulled in the stock already. In fact, we have utilized not only the IPO proceeds but also the bank loans that we had previously. Everything has been utilized into the stock itself. And you can see that the inventory that we are right now holding is plus of around INR 250 crores or I think in the last figures also. So everything is generally filled on into inventories.

Yes. In terms of kgs, how many -- what is the inventory?

I would not -- right now, I don't have numbers handy in terms of kgs, but somewhere around 300 kgs plus at least.

Yes, that ballpark figure is fine. Okay. And my question on IIJs was that I had been to your stall and it was really wonderful. But most of the -- from IIJS, what I got, the feedback was that we are booked for 6 months, we are booked for 8 months. That was the kind of buoyancy which was there in IIJS. So can I hear the same thing from you? I mean, did you also get this similar kind of response? And the second thing was, in this question, sir, was there any -- is there any chance for a margin reduction because of a lot of competition from players?

So let me address, if you have visited RBZ stall, I mean, on the first day or the second day, there was no space to even sit. We had got a very warm response. But when it comes to orders, we see -- I don't understand how the jewelry industry works for an 8-month order because it has a very seasonal demand or so. We are focused that, yes, we have got good order [ KT ] in hand for at least the season till Diwali end. And till November 3, we have got orders in hand. So usually, we get this in the first week of -- or the end of week of July. This year, we have got it in the third week of August, but it is a good order book. And we are hopeful to give you a fair result. That is what, in fact, when I say that the company will grow from INR 327 crores to INR 600 crores or INR 500 crores, that means that I am talking basis on my -- growth that all the IIJS order books that I have got. Plus in terms of when I say that quarter 1 of the thing was dull and due to that, there is a deferment of demand in the month of July for organized retail segment who are in -- whom we do job work for, that clearly indicates, okay, now the demand has come in and that is why I'm actually telling that quarter 2 and quarter 3, we will be able to see a cumulative effect. But 100%, we have a good -- like the orders are good and we should be able to complete this order at least by Diwali. We are hopeful to do that.

Great speaking to you. I really like your clarity. And so whenever in FY '26, if you're doing a fundraise for your future expansion, we would like to participate in that. I would like to tell you this on the call, and all the very best for you.

Thank you.

The next follow-up question is from the line of Prerna from RS Capital.

Just wanted to -- just a bit of clarity on business model. You mentioned that sale of gold is both your B2C and the B2B that you're manufacturing, right? And the sale of services, the job work for the curricular work that you're doing. Did I get this right, first of all?

No, ma'am. The sale of services is for corporate. We do a job work. Like when you say -- let's say, a company -- let's say, you are organized retailer and you have 100 showrooms. You tell me that, okay, can RBZ produce, let's say, 100 kg of gold every month? I would say, sister, I do not have the capacity to do so. And because of my resources of fund or anything, you will say that, okay, I'll give you advance, you can use my material and you can just book the revenue on the on the job work. So when I say that, okay, I take, let's say, just a ballpark, a 10% job work or a 5% job work. So that 100 kg, I will take only 5%, that will be my top line. So that 10% or 5% will be my top line. That top line will be very minimal. You will book 100 kg, means you can do INR 75 crores of revenue. Now 5% of INR 75 crores is -- you can book only INR 3 crores of revenue or INR 4 crores of revenue, whatever. But the bottom lines are more stronger, right, because ultimately, your margins are going to come from making charges. So why simply book revenue for gold? For me as a businessman, it doesn't really matter. For me, what it matters is, am I doing the right return on investment or [Foreign Language] fundamentals of the business has to be more right. And if I'm getting advance, it is great for the company. Why to simply just establish a top line? Ultimately, if you're getting -- if the company is able to pull out advances, nothing better. And that is where RBZ is unique. I mean, it is able to cater, it is able to ask advances from its customers.

The next question is from the line of [ Chintan Shah ], who is an individual investor.

Yes. So sir, the good growth that we are seeing is mainly due to fresh B2B demand or new funds inclusion has increased our working capital for addressing the existing demand?

Sir, your voice was a little bit blurred. I'm not able to hear your question clearly. Can you repeat it again, sir?

Mr. Chintan, may I request you to please use your handset?

Yes. So is it audible now?

Much better.

Yes. So sir, the good growth we are seeing is mainly due to fresh B2B demand or new funds inclusion has increased our working capital for addressing existing demand?

Okay. So what has happened is in the quarter 1, last year, we had done 144 kg of volumes. And the average price of gold was INR 5,500 per gram. This year, we have done 224 kg of volumes and the average price is somewhere around INR 70,000, INR 75,000 of 24-carat gold. So with that in place, the fundamentals of the business plus the growth or the strong -- it had a very strong demand in quarter 1. Yes, the funds which had come in has helped the business, because ultimately, it had built up a lot of inventory in the quarter 4 of last financial year. And those inventories, we could sell in quarter 1 because of the strong demand. And I think in quarter 2, you will see again the similar kind of results because sale of services or sale of goods will spike again because we had funds in place or stock in place. Overall, I think this quarter, the result of this quarter can be also -- you cannot establish that okay, INR 9 crores is exactly -- the COGS, higher COGS in the last quarter was also -- was an impact. But last quarter also, fundamentals and everything was in place. So again, in future, I think subsequent quarters, quarters 2 and quarters 3, we should be able to see good demand for IIJS and because of IIJS happening. And again, the duty rate cuts and all has helped a lot in the business. Yes, also as committed, we are into place for INR 35 crores of PAT and INR 500 crores to INR 600 crores of top line.

Okay. Sir, my second question is that for FY '25, are we expecting a product mix change compared to FY '24?

Product mix, I mean, we are into antique jewelry. We are into the domain of occasion wear. Product mix, I don't think so it will change. Sales mix can be variable. Sales mix, I think we would be -- there will be a good percentage up in terms of sale of goods on a ratio level. I mean you would do good both in terms of sale of services and sale of goods. But sale of goods, let's say, for an example, if I have done 500 -- 1,000 kg, if I have done 500 kg of sales of services and 500 kg of sale of goods. In the FY '25, I will be doing, let's say, 600 kg of sale of services versus 700 kg or 750 kg of sale of goods. So both the segments will be growing, but proportions will be different. I'm seeing a good growth in terms of sale of goods in the coming financial year.

Okay. That clarifies a lot, sir. Because if the sale of services was similar, then we would be looking at [ 40% ] on each of the top 10.

Thank you. Ladies and gentlemen, we will take that as the last question. I would now like to hand the conference over to Mr. Harit R. Zaveri for closing comments.

So I think there were quite a few of questions and I hope that I have answered them well. Still on the closing remarks, I would say that the company wants to establish a sustainable growth. We are focused on fundamentals and the core of business and making the core and the fundamentals more better to do that. We are focused on integrity. When we speak of integrity, we are focused on the delivery that we make, when we say a word, that we will deliver what we have said. And we're focused on better resources, be it in terms of team, in terms of machine, in terms of manpower. We are -- the company has a long-term view into the business to remain, and I'm sure that these quarter-on-quarter calls and ups and downs is part and parcel of business. But ultimately, our goal is to reach a -- to make the company very strong in its domain that it is operating in. And fundamentally, on the core, it has to be much more sound and stronger. So yes, this is what I, as a promoter or as a director, I would -- I am focused on. Yes, the company will grow, and it will deliver results as committed. We are on it. Thank you.

Thank you. On behalf of RBZ Jewellers Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.