Senco Gold Limited (SENCO) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Senco Gold Limited Q2 FY '26 Earnings Conference Call hosted by Avendus Spark. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. [ Ranganathan ] from Avendus Spark. Thank you, and over to you, sir.

Thanks. Good morning, everyone. On behalf of Avendus Spark, it's our pleasure to host the Q2 FY '26 earnings conference call for Senco Gold Limited. Today, from the management's side we have Mr. Suvankar Sen, MD and CEO, and Mr. Sanjay Banka, the CFO. Now I hand the conference call to the management for their opening remarks, followed by a Q&A session. Thank you. Over to you, sir.

Thank you, Mr. Ranganathan. This is Suvankar Sen, the MD and CEO of Senco Gold Limited, and we would like to welcome every one of you all to the conference call. And as we begin the call, we would be happy to share the updates. Primarily, if we look at it, that this particular quarter, Q2, Senco Gold & Diamonds has achieved a very good performance in terms of increase in profitability, whether you call it adjusted or without adjustments. So in terms of PAT, we have increased our PAT by almost 300% compared to the Q2 of last year from INR 12.1 crores to INR 48.8 crores. And if we take the adjustment of the customs duty impact that was there, still there would be an increase in PAT of 43%. And this is very important, at this high gold price, when we could see that there were certain headwinds in terms of the sales, especially in the month of September where consumers were in a mood of postponing their buying and confused as to what to do with the increase in gold price. And as a result, we have seen that in a consolidated manner, our revenue growth has been about 2% to about INR 1,536 crores compared to INR 1,500 crores of revenue in the previous year's quarter. But in a stand-alone financials, we have seen a 6.6% growth for the company. Now there are certain good things that has happened during this particular quarter that we have been able to continuously innovate with jewelry as per the demand of the consumer. And as a result of the planning in terms of marketing, promotion and product development, we could see that there was a very good response in terms of revenue in the month of October. We had clocked the highest ever sales in any single month of INR 1,700 crores in the month of October compared to about INR 1,100 crores of sales in the previous year's October month of the festive season. And as we speak to you, we have already crossed INR 5,000 crores of revenue growth, which makes us strong enough that we are moving towards the target of our revenue growth of INR 7,400 crores for the whole year. So that is one very good sign. And the momentum post the Dhanteras buying also continues to remain strong. There is a strong number of days for the upcoming wedding season. We can see that whether it be November, December, January, February, right up till March, there are a large number of wedding days. And there is a sentiment in the consumer's mind that in this volatile gold scenario the prices of gold could go up, which is making the consumers come and prepone their buying, which is for the next year to this year and ensuring that the wedding jewelry sales continue to happen. In terms of average selling price and average ticket price in an increasing gold scenario, we have seen that it has almost gone up by 16% to INR 86,200. So that is one important point to take note of. The other aspect that we need to take note of is that the old gold exchange in the overall transaction that we do with the consumer, that has gone up to 42% to 43% from 35% a year back, which is showing that consumers are utilizing their old gold to exchange for new jewelry that they are buying. Whenever we are seeing YTD growth of almost 25% year-on-year as on date, -- but in spite of the value growth of 25% in terms of volume, we are seeing that the volume growth is in very low single digit or almost 0, mainly because of the increase in gold price scenario. People are looking at buying lighter weight jewelry in 22 carat, or in diamond jewelry we are seeing that there is a tendency to buy 9 carat and 14 carat just to make and fit into the budget of the consumer. One good thing that has happened, which is helping the profitability is that the stud ratio continues to remain strong at about 12%, and our effort and endeavor is as a company that we continue to make good designs. We have right now more than 2 lakh designs in gold jewelry and 1 lakh plus designs in diamond jewelry and the growth that we intend to do, I think we can be more sure that the 20% growth for the whole year will be very much in the pipeline and continuing with new designs and working on optimizing the stocks at this high gold price scenario. We will continue to look at increasing the ROE and the ROCE of the company and take it to a very nice handsome robust level. So thank you very much from my side. I will request Mr. Banka to share his thoughts.

Yes, sir. Thank you. So just to give a, once again a sharper background, we have launched 6 showrooms in Q2 and total 16 showrooms we have launched so far, while we are cognizant for the SSG growth. So while the Q2 growth has been slower and as you've said that this industry sometimes depends upon the gold prices. So since the gold prices were extremely high in Q2 and the GST cut was very important. People were waiting for the new GST rate to come accept and they had withheld their purchases, purchase of the capital goods. So that was one of the major reasons for the slower growth in Q2, coupled with global uncertainty, the rains in Eastern India. And accordingly, the moment these things settled, we saw a huge growth in October, which was almost more than 50% growth Y-o-Y in October, INR 1,700 crores plus sales and YTD growth again is back on track to 25%. And we have given a guidance of around 18% to 20% growth for the rest of the year, which means that 25% plus 18% to 20% for 5 months, we would be crossing 20% growth for sure for the whole year. Financial number you've seen that the revenue growth in Q2 was 2% on a stand-alone basis, consolidated was 2%, stand-alone was 6%. But we have to see the number for the PTM growth. So when we published that PTM number as well, and we are very happy to inform you that the trailing 12 months sales has crossed INR 7,400 crores, which is a good sign, which shows that clearly for the whole year, we'll be crossing INR 7,400 crores. Similarly, EBITDA margin for the quarter and for the whole year has been range-bound. So you would see an EBITDA margin improvement by 340 bps from 3.5% to 6.9% on a consol basis. And similarly, EBIT margin growth Y-o-Y from 3.3% to 6.9%, once again 360 bps growth. And moreover, for Q1 and Q2, both taken together, the PAT is INR 153 crores. This is almost 75% or 80% of last year PAT Obviously the adjusted PAT was slightly higher at INR 200 crores. So this indicates that the business is quite solid and remains on track based upon the improved stud ratio, the pricing power which we enjoy. As you are aware that a lot of discounting happened in the market, but we maintain the brand image perfect. We don't indulge into discounting either in the making charges. We rather play in attracting our customers with more new designs and attractive offers. So this is one part. Similarly, if you look at balance sheet, you will find an increase in the inventory level from around INR 3,500 crores level to INR 4,200 crore level, which we have explained. This has got 2 reasons. One is that there is preparedness and secondly the gold price rise impact. Similarly, borrowings had also increased, so they have settled down now. But this is a business where the business is hungry for growth and more and more capital will be required for inventory. And when I say capital, I mean capital employed. So that we will continue to infuse in the business in the form of claw back of profits. That's one. The net debt to equity is also in the range of 0.75. Overall, we are very confident that the business is showing its resilience despite competitive pressure in the market, but we maintain our strength in the market. An important point was the GML, which rate had increased in quarter 4 and in the previous 2 months, the GML rate has come down. So I think that the slight risk on the profitability, which was there that has also come down. So that will add another INR 20 crores to the PAT for the whole year. Our working capital limits are in place. Overall, we are very much poised for the wedding season now for Q3 and Q4. With that, we request -- we open the call question and answer, and we'll be very happy to answer your queries and curiosity about our company. Thank you.

Thank you, Mr. Banka. Thank you, everyone. I think now we can take any questions from all of the participants.

[Operator Instructions] The first question is from the line of Videesha Sheth from AMBIT Capital.

I just had one question. If you all can update on the status of the levels of GML, non-GML borrowing and cash flows as of date or as of October. Just trying to understand the issue here because typically, every second quarter -- I mean, as of the first half of every year, the inventory balance would be elevated given the upcoming festive and wedding season. But I was wanting to understand what led to the GML mix going down? Were there any issues on the margin side of it? Or was it a conscious call, if you can please elaborate?

Yes. So as you have said, Videesha, [indiscernible] was lower in quarter, and that's why from around 65% level it has come to 51% level. Although the GML availability had improved in quarter 2. But once again, as you are aware, GML is on unfixed basis. And due to the extreme volatility in the gold prices, we had -- we were receiving a lot of margin calls. So to avoid the margin call pressure, we resorted to CC instead of GML. So it was primarily due to the gold prices rise and volatility and to avoid the margin calls on the GML.

So just a follow-up then to this. Then what is the approach that you're looking to take going forward? Because gold prices, I mean, it can't be predicted very accurately, right? But on the other hand, you said that you were wanting to increase the GML mix. So how should one think about this sourcing mix going forward?

It's a very dynamic situation, see, it cannot be predicted. It's a cash flow management on a day-to-day basis, while our ideal target to take the GML to 75% remains there. But as of now, we are seeing -- again, we are seeing volatility for the last 3, 4 days. So going forward, we have to see. But in terms of impact, the differential impact is what around from 6.5 -- from, let's say, the GML interest rate is 3.5% and CC around 9%, 6% on the differential will not be a huge amount. So we weigh the benefit of higher interest rate on the CC versus the margin call and accordingly calibrate to ensure that our -- both the profit target, the OpEx as well as the cash flow availability, all these 3 angles are balanced properly, and we will manage it properly.

Sure. And would you be able to share the current GML levels or -- as of October '25?

It's too early. I don't have exact number, but I can give you around 54%, 55% only because the rates remain volatile. The margin call risk is there. There is always a risk of gold rate moving [indiscernible]. So better to manage the working capital more importantly at this stage.

Okay. And the second question was while you've called out that at retail level you've seen 50% plus kind of a revenue growth. Would there be a similar divergence between retail versus company level sales? Or can we expect company level sales also to be north of 30%, 40% for the month of October?

Sir, can you take that?

No. I think that the divergence won't be happening. This kind of growth that we have mentioned is at a retail level as well as at a company level, yes.

The next question is from the line of [ Raj Ra ] from [ Finvestors ].

Couple of questions from my side. So I just want to understand that every gold jewelry company in the country, listed, unlisted has -- though they have the volume degrowth for this quarter, but the sales number is actually a multiplication of volume and the growth in the gold prices. So by virtue of that, they have posted at least, if I talk about the biggest peer, that is north of 20% sales growth. So I just want to understand that the spending pattern in the region in which majority of our branches are also a factor?

So are you saying about the volume degrowth and the profitability linked to that, just to clarify what exactly is the question?

I just want to understand that our majority of our branches are in Eastern sectors. So that is the reason, or spending pattern of that region is actually pushed us to have degrowth in this quarter, while our each and every peer has posted some kind of sales growth driven by the gold price spike. So why didn't we able to get our revenue at least passing with a good number?

Right, right. Okay. Yes. See, there could be a possibility that 60% to 65% of our stores and business is from the Eastern part of the country. And as a result, in Q2, we have seen that the growth has not happened as per our peers. But all in all, if we look at H1 and if we also -- while October, we have seen the growth that has happened and also the growth that we are seeing continuing in the month of November, it kind of reinforces the fact that a particular quarter does not really should be a matter of concern and worry. And also amongst our consumer base, and we must keep in mind that almost 65% of the business that we get is from our loyal customer base and our repeat customers. So for them as well, everyone looks forward on buying something for the auspicious season. And there was continuous effort and relationship building exercise during the month of September. And as a result, we have seen that in October we have had a growth of almost 55%, 60%. So maybe that is one of the reasons while the other peers have not been able to kind of see that growth level in October that we have seen. But all in all, in YTD, again, maybe I'm repeating that we are seeing a YTD growth of almost 25% as on date.

Mr. Raj, if I can build on this query. West Bengal and Eastern region of India has been, in fact, somewhere I've read that West Bengal is among the top 5 fastest-growing economy state in India. So to [indiscernible] rest to speculation, Eastern states are growing equally. The spend in Eastern state remains same. This disparity which we are trying to see whether the Eastern states have grown less, so that consumer spending has reduced, that is not the reason. So maybe Durga Puja could be one of the reasons. GST 2.0, where customers have suspended their purchase for purchase of capital goods. So the cultural pattern varies from region to region. I think that could be one of the reasons. And that's why we have disclosed this Dhanteras sale and 25% growth is there, while 50% of our sales come from Eastern region. Even from future perspective, the market is quite strong. The GDP growth in the Western region is strong. The state governments are stable. Bihar region will come soon. So we think that on a pan-India basis, our business remains derisked in terms of growth, while there has been a slight difference in the growth. But overall, for a long term, we see our portfolio equally distributed and totally derisked, and we are always confident of 18% to 20% growth year-on-year for the next 5 to 10 years, minimum.

Okay. And sir, and so the next some questions on -- sir, margin this year has been to H1, that is north of 9%. So our sustainable margin is 7%. Though I have gone through the presentation in which there is a mention that this year the margin would be 8%. So just want to understand how much hedging has helped us? And are we hedged -- how much percentage are we hedged right now?

So our sustainable EBITDA that we have always been speaking about is anywhere between 7% to 7.5%, and to be more accurate, between 7.2% to 7.5%. And it is a blend of the various channels of sales, it is the blend of the various products, whether it be gold, diamond, platinum, silver, all the various products that we are selling. So we will continue to reinforce the fact that this year also we should be clocking an EBITDA between 7.2% to 7.4% on a full year level. And hedging perspective, I would like to say that when it comes to hedging in terms of the sales that we are doing, we are almost hedging 90% to 100%, that is buying as much as we are selling. And if you are looking at the hedging levels of the inventory that we have, so as we ended Q2, our hedging percentage has been in the range of 65% to 70%. So I guess that the hedging might have an impact of 0.4%, 0.5% overall. But all in all, most of the gross margins and the profit that has been earned from the making charges and from the diamond jewelry sales.

Okay. So just give a clarification, sir, on the Slide #7 of your presentation in the profitability growth para, in the last time you have mentioned that we have maintained our guidance of sustainable EBITDA margin of 7% range. FY '26 EBITDA may be 8% range higher than our stand-alone outlook. So are you standing by these statements, sir?

Mr. Banka?

Yes, yes. Yes, sir, yes, yes. See, what we have clearly said, like, let's say, in quarter 1, it was 10%, right? In quarter 2 it is around 7.4%. We clearly stand by our guidance of the range bound of, let's say, 7.1% to 7.4%. And so for H1, since it is more than -- I think blended is more than 8.5%. So for the rest of the year, we will -- we are confident of 7% range. And hence, the blended for the whole year will be higher. For future also, we are driving the business clearly with a minimum 7% EBITDA target. In fact, going year-on-year, as we are looking at improving our said ratio, it should increase by 20, 30 bps more because with a larger network and with the larger brand building expenses, our strength will happen. And let us very humbly highlight that our pricing is amongst the best in the industry without taking any name. We don't discount our product. We don't sell too much bullion. So if you look at even our coin sales, that is only around 4% to 5% maximum for a whole year. Rest assured of a minimum 7%, 7% range I'm saying, earlier we had taken [indiscernible].

And sir, just last question from my side. Sir, as you are saying that the consumer must have held themselves for the festive season. So as I have gone through some of the peers' festive season updates. So 2 of the peers have grown even more than 70% and one is more than 100%, which is in southern state. So the trend is absolutely saying that the festive season has been good for every jewelers. What I'm not able to actually understand in our entire period why we have not grown on the sales number, whether -- each and every small and big company have grown at least the sales at least 20%, and we have not grown, sir. And one more also clarification, this is my last question. Year till date growth of 25%, it is on a stand-alone basis or consol basis because in the last H2 update which you have given, there have been written 6.5% growth and there has been not written the stand-alone consolidated. So I was expecting at least that the consolidated number to be at least 6% more than the last quarter, last quarter of the last year. But it was actually more than 2% and the stand-alone number is 6.5%. So please clarify this.

See, if you look at the difference, it is around INR 40 crores to INR 50 crores, right, between, say, 2% and 6%. So around INR 40 crores, INR 50 crores is the difference between stand-alone and consol. So even when we are saying INR 1,700 crores versus INR 1,100 crores, it is that we initially speak of standalone. And if there is any deviation, it will be in the range of 2%. So it is not going to be a major range. So our stand-alone and consol, as I shared it in the previous answer, is at that same level. And this 24%, 25% growth that we are seeing on YTD, primarily it is on stand-alone, but the difference, even if it is there, will be in the range of 1% to 2%, not more.

The next question is from the line of Ankit Minocha from Adezi Ventures Family Office.

If I look at the sequential numbers for margins, what substantially changed in Q2 versus, say, Q1 and Q4 previous to that, that the EBITDA margins have come down. I mean what would you attribute this to? And could we also say that in Q4 and Q1, there was a higher level of inventory gains that would have not come in this quarter?

Mr. Banka, are you there to take the question? While we are waiting for him to join, so we have to understand that 10% that happened in Q1 was something that we explained in the last earnings call is because of the hedging percentage being on the lower side, we could get some more profit. And we had also determined that, that was in the range of INR 20 crores to INR 25 crores, and that was the Q1 scenario. But what we have seen in Q2 is that at the current hedging levels of 70%, the EBITDA number has stabilized. And what we always say that EBITDA will be in the range of 7% to 7.5%. So here, we are seeing that the EBITDA is at the standard level with the stud ratio at around 12% and jewelry has been selling the way it has been selling. Another benefit that had happened in Q1 is that we had done INR 1,800 crores sales and leading to a higher overall absolute numbers of gross margin, which kind of percolated into the overall profitability. But in this Q2, we have had a INR 1,530 crores of revenue sale, and that is what the overall impact has been. And again, Q3, with a much higher sales number, we hope that when the sales number become a little higher, the operation leverages comes into the picture and there could be some extra benefit if it happens. So yes, you can say that Q1 had an extra benefit of having a lower head ratio, but Q2 did not see any such extra benefit, and it is on the stable side as per our expectation.

* So I mean, what would be -- how should we understand inventory gains, losses that could be coming up considering your hedging policy? I mean if it's, say, changing from quarter-to-quarter, then in that case the margins would also be widely different. Also, should you not be seeing stronger EBITDA margins for the next 2 quarters for H2, considering the strong rise in gold and that we should expect some more inventory gains?

So, see, in the first place, we are not guiding for higher EBITDA margin more than -- earlier we had said 6.8% to 7.2%. But even right now I said 7.1% to 7.3%. So clearly the market is quite competitive. And see, every quarter, we don't increase or reduce our prices, making charges or diamond prices, right? So clearly, we are expecting a range bound EBITDA growth in the future. And the pricing sometimes is dependent upon the extreme competition, even some listed players are offering discount. So you see that we maintain our pricing policy very, very constant. We ensure that instead of offering discounts on the gold or making charges, we rather attract the customers to the new and innovative designs. So for future look at a similar number, yes, Q1 was higher, which we had called out that part of the higher EBITDA was around 10.1%. We had clarified that part of higher EBITDA is due to the hedging, I mean the realization gain. And you see that there was a huge fluctuation in Q1 in the gold prices, whereas in Q2 the quarter-on-quarter increase in gold prices was only 6%. July and August were almost at the same level what was in June. And in September, partly it has increased. And that's why you have seen a stable EBITDA margin. Now looking at Q3, you would have seen that the prices have come down. And if the prices remain stable in the same range then you can certainly look at 7.1% to 7.4%. But if prices rise considerably high, then we have to see what is the result. But minimum 7.1% to 7.2%. Your hedging concern, I think if you finally look at our presentation on hedging, we have very clearly clarified that hedging has to be seen from 2 perspectives. One is on the sales hedging, which is almost 90% to 100%. I would rather go one step ahead and I say 105% because whatever I sell, I have to propose buy on the same day to keep my inventory level. And in fact, for the new stores and for upcoming festive season, I will end up buying more than that. So I will say 105%. So that is one very important part of the hedging, to ensure that at the business level. So I'm distinct 2 parts. At a business level, definitely, we don't do it. Our accounting, once again, it is subject to the weighted average cost in there. I think as a [indiscernible] business manager, prudent investor, we have to look both sides and the inherent strength of the business. I think that should be enough and we will surely get the confidence into our business model and risk management practices.

* Okay. Yes. That's quite clear. My second question is with regard to now investment levels that you would have to see for the new franchise partners to come on board. I mean, considering how gold has risen, I believe the investment for a new franchise in the channel would be becoming significantly higher. How are you seeing the impact of this issue currently? And how do you think that this issue could be dealt with you in the future?

No, see, one good thing that we have seen in this financial year is that we have already opened 8 franchisee stores, and the management focus is that we will drive in more and more franchisees. So we have about 8 to 10 more franchisees that are to be opened in the pipeline and our effort is towards building connects and having a focus on opening more and more franchisees. So even in the future, when we plan to have our growth journey in terms of number of stores, we will continue to look at seeing as the opportunities that are lying in the Tier 2, 3, 4 towns and cities. And in this increasing gold price scenario, 2 things have happened, one is that the confidence of not only the consumers but also the potential franchisee buyers on gold and silver as an asset class has grown and the interest of their towards opening franchisees is also very much there. It is just the ability to have the commercial capital to open the stores. And we have multiple formats of stores for Senco compared to many of our competitors. We have got stores in Tier 2, 3, 4 towns and cities with various levels of inventories. And also our Everlight model, which is the INR 6 crores, INR 7 crores, INR 8 crores of capital required to open a store focusing on light weight jewelry is very much there as well. So our focus is that the future growth potential will continue to remain strong and our effort towards opening more stores to franchisees will be there. Yes, as you said that the other competition players are also there. So I think that the market overall, let us not forget that it is a large market and India is shifting from an unorganized to organized situation. And in this scenario of higher volatile gold price, players like us, the organized players will continue to remain strong and keep opening stores. So I guess that's the way to look at it.

* Sure. And my final question was to understand, say, an inverse scenario happens and gold prices were to start going down next year. Now what is the impact of your -- of that on your profitability and considering your hedging policy this year? So I mean, what kind of scenario should we build in if in case gold prices start dropping slightly next year?

We have a very strong framework, and the hedging scheme is working as per that strong framework and guideline. And if the scenario of the various scenario builds up that you are talking about and if the gold prices suddenly is in a downward trend, then this 70%, 65%, 70% hedging can be very comfortably converted into 80%, 85%, 90% hedging. And if you look at it, it is only in the last, I would say, 6 months 9 months in this volatile gold price volatility that we are keeping our hedging ratio at about 60% to 70%. But in the previous financial year, we were at 85%, 90% hedging. So there are certain constraints of liquidity of margin calls that forces us to reduce our hedging position from 80%, 90% to 65%, 70%. But as you -- in your kind of bearish scenario, we will make sure that as per the framework, we will increase our hedge percentage.

But on sales level we are 100%.

And to again reinforce the fact that at the sales level we will always remain at 90% to 100%. So that much confidence and comfort is something that you can take from us.

The next question is from the line of Devanshu Bansal from Emkay Global.

Congratulations on a good growth pickup in festive and the guidance upgrade on both growth and margin. And Suvankar, I wanted to understand the payables have increased in H1. So we were able to get higher credit period from our vendors. So what different are we doing now in terms of sourcing versus what we were sort of practicing earlier? So that's your thoughts if there is a strategic change here.

The payables, is that what you're saying?

Yes. Yes, payables have increased. So has there been a change in sourcing strategy? Has there been a change in credit terms from vendors? So I wanted some thoughts there.

Devanshu, what has happened is that in the month of September, it was just before the peak festive season. And this time, if you see that the Navratri started in the last week of September and Dhanteras was in middle of October compared to usually Dhanteras and Diwali being towards the end of October. So as a result with our expansion of network and the increase of stores, we tried to ensure that we have enough inventory at the various store level and we have taken support from our suppliers and vendors for the festive season to ensure that we have enough and more inventory at the stores. And it is because of that planning that we did from before that we could make sure that the inventory was there in the stores during the peak festive season and we could achieve the sales that we could have achieved. So it was more from that perspective rather than any kind of change of policy. It was more in terms of planning that is the reason why the payables have been on that side.

Understood. So a small follow-up on your first question. So that implies that debt levels would still have remained at the September end levels, right? So because whatever payable must have happened must have been through internal accrual. So debt level sort of must be at a similar level as of now.

Yes, Devanshu at least for December, let's say, the debt level has come down now. So the debt level was higher, is always elevated in March and September for the Dhanteras preparedness. And it comes down by INR 300 crores to INR 400 crores. And by, let's say, by December, depending upon the seasonal requirement. But as far as March '26 is concerned, the debt level will be slightly more elevated than September level because we'll be up stocking for the upcoming Akshaya Tritiya and Pohela Boishakh and for further 20% growth. So if it is TDM INR 7,400 crores and 20% you add on that. So the debt level will increase. But we have to look at the debt equity ratio and net debt to equity is 0.75%. So business will continue to be range bound in terms of the financial indicators.

Yes, sir, I agree, the debt equity is in a good shape, yes.

Devanshu, see business is very -- of most importance. And if you look at it this time in the upcoming season, Akshaya Tritiya is in month of 19th of April, right? Usually, Akshaya Tritiya happens end of April or in May. This time it is in the 19th of April. So I think for the industry, we need to make enough and more inventory for that particular season and the day. So that is how we have to keep it in mind.

Fair enough. Sir, second and last question from my end. So I was referring -- this is in reference to studded sales. So there is almost a 25% better realization that we are able to command for studded sales. So wanted to check, is it largely due to increase in the gold component in our studded sales or we are seeing better realizations for natural diamonds also within that mix? So just your thoughts here.

So I think that in terms of realization, we have had growth in diamond jewelry as well as value growth in gold jewelry maybe. So I guess that with the festive season coming in in October and the buildup. So it's been both sides. And we are also using technology and tools to optimize the stocks. And I think that is of most importance in this high gold price scenario, there is a lot of -- and I've been saying it in each and every earnings call that at store level we are looking at the faster-moving inventory, the top-selling designs, all of it. And the merchandising team is working with that. And for the industry, when the gold prices have gone up by 40% to 50%, we have to actually get into the minute levels of what is the budget of the customers, what are the weight ranges that are moving. The same designs might be selling in a much lighter weight, and we have to keep working on that. So those kind of initiatives in terms of building efficiency is being done. And I guess that could be one of the main reasons why you are seeing this kind of a better...

So Suvankar, I was checking that in October you mentioned 30% growth in studded and you mentioned that volume carat growth is 5%. So there is 25% better realization that we are able to command. The question was what is leading to this 25% rise? Is this largely due to the gold component within the studded sales or this is also being led by better realization per carat for natural diamond? So that was what I was trying to...

Okay, volume cartages. Sorry, sorry, the volume cartages have also gone up by, I would say, low double digits. So there is some amount of cartage growth. And the gold aspect of it in the overall diamond jewelry has also played a role. And along with 18 carats, 14 carat is of a critical nature. And we have also launched 9 carat purity products, and we are gradually doing that also to fulfill the demand of having products at the lower ticket size levels of consumers. So yes, there's not only that the gold price has played a role, but diamond jewelry volume growth has also happened in the low single-digit numbers.

And lastly, from a realization per carat of natural diamond, has that remained stable? How has that sort of moved, realization per carat of natural diamond?

Realization per carat of natural diamond has been stable. That has -- the prices of natural diamond has not moved up the same way as it has with the gold prices. So per carat has been in the similar range.

The next question is from the line of Naveen Trivedi from Motilal Oswal.

Sir, just quickly, what was our same-store sales growth for this quarter? And my second question is on the -- what are our gross margin for our studded jewelry? I remember, I think earlier we were guiding around 25%, 30% sort of a gross margin. So if you can just give us these 2 numbers?

So you have to look at the same-store sales growth for the quarter for the half year and also YTD. So first, in terms of SSG growth of Q2 has been minus 4%, SSG growth for 6 months, H1 has been plus 8% and SSG growth for YTD October has been 17%. So that is where one has to look at the bigger picture, that is in terms of SSG. And the other question you had was...

Naveen, actually you asked a question on the gross margin on the studded product. I think this is slightly sensitive information and competitive information. I think let us look at the blended gross margin and blended EBITDA. We can take this call one to one.