Goldiam International : A rare shareholder friendly and debt free Jewelry company

Goldiam has reported its financial results for the second quarter and the first half of fiscal year 2024. Here are the key highlights:

Q2 & H1 FY24 Financial Highlights:

• Q2 FY24 Consolidated Revenue: Goldiam’s revenue in Q2 FY24 reached ₹1,393 million, marking an impressive 50% year-on-year (YoY) growth and a 15% quarter-on-quarter (QoQ) increase.
• H1 FY24 Revenue: For the first half of FY24, the total revenue amounted to ₹2,605 million, showing a solid 10% YoY growth. This growth was attributed to a smart product mix, improved inventory management, and the upcoming festive season.
• EBITDA and Profit: In Q2 FY24, the EBITDA increased by 10% YoY to ₹332 million, with a substantial 40% QoQ growth. The EBITDA margin for the quarter improved by 422 basis points over Q1 FY24. Additionally, the Profit After Tax (PAT) for Q2 FY24 surged by 25% YoY and 36% QoQ, reaching ₹235 million. The H1 FY24 PAT increased by 2% YoY to ₹440.8 million.

Key Highlights:

• Lab-Grown Diamond Jewelry: Lab-grown diamond jewelry contributed significantly to the revenue mix, accounting for 34% in Q2 FY24, up from 19% in Q2 FY23 and 33% in Q1 FY24. This shift is driven by the growing preference for lab-grown diamond jewelry among consumers in the US market.

• Online Sales: The revenue from online sales increased to 24% in Q2 FY24, compared to 22% in Q2 FY23 and 18% in Q1 FY24. Lab-grown diamonds, in particular, witnessed robust traction, with the share of online sales for lab-grown diamonds increasing from 3.5% in Q2 FY23 to 12% in Q2 FY24.

• Inventory Management: Approximately 75% of the inventory (jewelry) as of September 30, 2023, is held by customers as finished stock to be sold in subsequent months.

• Expanding Geographies: While the USA remains the primary market for Goldiam, the company is actively exploring new geographies, including the Middle East, Europe, Australia, and India for both natural and lab-grown diamond jewelry. The order book as of September 30, 2023, stands at ₹1,650 million.

• Shareholder Rewards: Goldiam has a consistent track record of rewarding shareholders through dividends and share buybacks. They recently completed a buyback of equity shares, and their consolidated cash and cash equivalents (including investments) stood at ₹2,776.4 million as of September 30, 2023.