Notes from Q4 FY 24 call

1. Revenue grew by 12% year-on-year to Rs. 1,513 million for Q4.

2. LGD segment now at 49% of revenue, up from 25% in FY 23

3. Order book stands at 120 crore. To be executed over next 3 months. Export order of 60 crore

4. Launched retail operations in domestic market by the name of Era.
   a. Appointed Mr. Abhinav Kumar as President of India Retail for Goldiam and ERA.
   b. Planning to have first few stores up & running smoothly by Q3 FY25 (by festive season)
   c. Will have significant mall-based presence with average retail price between Rs 45 to 55,000
   d. Competition is currently into Natural Diamond Jewellery only
   e. Targeting launch in Mumbai, Bengaluru & Delhi NCR in first 6 months
   f. Targeting gross margin in range of high 30s or low 40s for new stores

5. Acceptance in US – Gaining traction and acceptance in US. More than 50% sale of engagement rings in US has come from LGD

6. Other geographies –
   a. Seeing traction in LGDs in Middle east and in Europe and looking to further grow there

7. Pricing strategy
   a. Media articles on reduction in prices (De Beers etc), pertains more to B2C / consumer prices. Within B2B, price trend is stable. They do not see a massive price decline coming ahead
   b. Company marks down inventory whenever necessary, due to differential pricing
   c. Margin profile in lab-grown diamonds expected to remain healthy.

8. Outlook and guidance
   a. Similar revenue growth guidance as we have seen in last few years
   b. Focusing on maintaining EBITDA margin of 20 to 21%
   c. Targeting to become the largest retailer of lab-grown diamond jewelry in India.

Disc: Invested

sir, why result is so dull, and what is its furter prospect…?

Sastasundar looks very interesting.

I would agree, Uniparts as much as they discuss they are agriculture related it is important to appreciate that in the US agriculture trucks are much higher HP than what we see in India. So firstly, Uniparts is not as agri focused as they might highlight. They saw strong revenue numbers in Covid due to people using their tractors for leisure in the US but with inflation and other things going on people have left this behind. Uniparts is more linked to discretionary expense as opposed to agri cycle. If you see their customers John Deere have actually done well on Higher HP segment but lower has suffered which is where Uniparts participates.

Ma’am, you are correct but in my opinion the company is stuck in the agriculture downcycle where a lot of destocking is happening. Case in point: Agrochemicals which is in the same industry
The company has repeatedly pointed out that 2021 margins were abnormal and the stable state margins are 21%,14% and 7% at EBITDA, PAT and FCF levels.

Disclosure: Invested