Khazanchi Jewellers Ltd (BSE: 543953) Q4 2025 Earnings Call dated May. 28, 2025
Corporate Participants:
Unidentified Speaker
Rajesh Mehta — Chairman and Joint Managing Director
Analysts:
Unidentified Participant
Harshil Ghanshyani — Analyst
Mohit Kumar — Analyst
Shreya — Analyst
Shyam — Analyst
Darshan Bhandari — Analyst
Ramesh — Analyst
Hardik Sukumar Shetty — Analyst
Vijay Chauhan — Analyst
Abhishek Sharma — Analyst
Mahesh Seth — Analyst
Rahil — Analyst
Purnima — Analyst
Priya Jain — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to Kazanshi Jewelers Limited H2 and FY25 earnings conference call hosted by. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshal Ganshani from Kirin Advisors. Thank you and over to you sir.
Harshil Ghanshyani — Analyst
Thank you so much. On behalf of Kirin Advisors, I welcome you all on the conference call of Kajansi Journals. From the management team we have Mr. Rajesh Kumar Mehta, Chairman and Joint Managing Director. Now I hand over the call to Mr. Rajesh Kumar Mehta. Over to you sir.
Rajesh Mehta — Chairman and Joint Managing Director
Hello everyone. A very good afternoon and thank you for joining us today. It’s my pleasure to welcome you to the earning call of Kajanshi Jewelers Limited. FY25 has been a defining year for us marked by strong operational progress, digital innovation and robust financial performance. With over five decades of legacy, Kajanshi Jewelers Limited has been making excusite gold, diamond and precious stone jewelry since 1971. We have established ourselves as the trusted name in both corporate and retail segment and continue to be a key player in India’s organized jewelry sector. Our commitment to excellence is strengthened by our recognition as qualified jewelers on the India International Bullion Exchange that is IIBX, IFSCA Limited and BIS Hallmarking certification.
Our listing on the BSE SME platform in August 2023 has further enhanced our market presence and growth trajectory. On the operational front, we have made significant steps in our current place of business at sowcarpet Chennai which remains a key growth driver. Small and effective strategical amendments on day to day basis Improving our intangible assets of Our Design Library 5 lakh designs spread across more than 25 product categories. As a part of our expansion strategy, we are on track to launch a new flagship showroom in second quarter of FY26. This state of art space will redefine the retail experience and further strengthen our market leadership.
In southern market we have started manufacturing and marketing of traditional diamond jewelry which would improve our B2B business in diamond jewelry segment which in turn will add additional margin and improve our profit. We are also embracing diamond jewelry, precious stones and digital transformation to enhance customer engagement. Recently we upgraded our online jewelry app which offers features like real time gold rate tracking, secure online payment, personalized support and exclusive offers and initiatives that reflect our vision to blend radiation with technology and offer a seamless omnichannel experience. Another key highlight of this year was a strong presence at the Gem and Jewelry India International Fair B2B Expo of 2025 where we secured a significant order book worth 55 to 60 crores, a clear testimony to the growing preference for our designs and craftsmanship among industry peers.
In order to expand our B2B business geographically, we are on the path of setting up a strategical plan for participating in various exhibitions pan India where potential demand for our manufactured products is high. Looking at the broader environment, the Indian jewelry sector is poised for sustained growth. The Union Budget FY25 introduced several supportive measures such as reduction in gold import duties and compulsory hallmarking which is expected to boost affordability and strength organized retail. Additionally, the RBI rate cut and revised tax labs are likely to increase discriminationary spending, further supporting industry growth. These macroeconomic developments are well aligned with our strategic priorities which includes pursuing both organic and inorganic growth, expanding our physical footprints and accelerating our digital transformation.
Together, these focus areas position us to capitalize on emerging opportunities and build a strong business for the future. Now I am coming to the financial highlight of Kajansi Jolath Limited in H2FY25 the Janshi Jewelers delivered exceptional financial results. The total income stood at 1,016 crore. 01 crores reflecting 144.6% year on year growth. EBITDA came in at 36.12 crores, a 78.71.8% increase. Profit after tax reached 24.93 crores up by 114.85%. EPS rose by 114.71% reaching at 10 rupees 7 paise. For the full fiscal year FY25 the momentum continued. Total income was 1,772.53 crores up by 115.76%.
Year on year EBITDA reached 64.92 crores, an increase of 55.41%. PAT stood at 44.92 crores, up by 64.43%. EPS increased by 64.4% reaching 18.15 paisa, 18 rupees 15 paisa. These outstanding figures underscore the strength of our business model, operational efficiency and ability to execute on growth opportunities. In conclusion, our strong performance in H2FY25, supported by a favorable policy landscape and well executed expansion plan positions Kajanshi Jewelers Ltd. For continued success Our strategic focus is firmly aligned with value addition and long term growth. We are working towards expanding our design capabilities going forward, establishing our own in house manufacturing facility and broadening our client base across both B2B and B2C segment.
These initiatives are aimed at enhancing product differentiation and improving margin. Combined with the launch of our flagship showroom, ongoing digital transformation and unwavering focus on customer experience, we are confident in our ability to further strengthen our market presence and deepening customer relationships. I would like to extend my sincere gratitude to our shareholders, customers and all stakeholders for their continued trust and support. We look forward to achieving new milestones together and capitalizing on the promising opportunity that lies ahead. Once again, thank you for being with us today. Thank you all. I now open the floor for question and answers.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar, an individual investor. Please go ahead.
Mohit Kumar
Yeah, thank you. My first question is how many active B2B clients does the company currently serve and what percentage of sales come from repeat orders?
Rajesh Mehta
Company currently serves nearly, you can say somewhere around 500 lines B2B and it is on repeated basis only. Whatever the requirement of the clients come in, they come in touch with us and it is on recurring basis we are serving with all their product requirements.
Mohit Kumar
Okay, second question I have is are you planning to franchise or directly operate future showrooms?
Rajesh Mehta
Initially we have a plan of opening up over the flagship showroom of 10,000 square feet that the command management is planning to open it in the by the second quarter and later on on a future state after having two, three showrooms of our company owned it may even think of working on fantasy module.
Mohit Kumar
Okay, so the next question I have is what are your criteria for selecting future showroom locations?
Rajesh Mehta
We are looking up since we are expired. We have a very good base in the southern India. So we are planning to have it in south part of only in Tamil Nadu. And we have been working on selecting of area and as per our patterns and design type of area where we could sell our products. So we have been working on that.
Mohit Kumar
Okay, yeah, that’s it. From my side. Thank you.
Rajesh Mehta
Thank you so much.
operator
Thank you. The next question is from the line of Shreya. An individual Investor please go ahead.
Shreya
Hi Shreya. Am I audible?
Rajesh Mehta
Yeah.
Shreya
So how are you managing inventory levels given the high volatility in gold prices?
Rajesh Mehta
The inventory is managed on day to day basis. It is on refilling system. It is a traditional method of buying gold as soon as it sells. That is the way we follow replacing of goods what you have sold. So that the fluctuation does not affect much.
Shreya
Has the launch of lighter and fusion jewellery impacted your gross margins positively?
Rajesh Mehta
Repeat the question please. Louder please. Hello, I could not hear your question please. Louder please.
Shreya
Has the launch of lighter and fusion jeweler impacted your gross margins positively?
Rajesh Mehta
As the prices are going up, we are also manufacturing and creating lots of designs which are of affordable range and or lightweight jewelry. And since the lightweight jewelry are fusioned with latest designs and technology, obviously it is giving a higher margin.
Shreya
Okay. What is the current stock turnover cycle and how has it improved compared to previous years?
Rajesh Mehta
The stock turnover cycle has improved. Improved nearly by 40% from last year.
Shreya
Okay, there’s one last question from my side. 1. What percentage of your jewelry portfolio consists of high margin? Templar designer jewelry.
Rajesh Mehta
We cannot define that separately. But you can say that somewhere. Total turnover of 15% are of higher margin. And all others are regular margin. And we are dealing with all handmade jewelry. So major portions are. You can. It’s not that low margin. We can define it as medium margin and high margin.
Shreya
Okay, thank you. That’s all. Currently, if there are any more questions, I’ll be back in the future. Thank you.
Rajesh Mehta
Sure. Sure. Thank you so much.
operator
The next question is from the line of Shyam, an individual investor. Please go ahead.
Shyam
Hi, good afternoon. Am I audible?
Rajesh Mehta
Yes, sir.
Shyam
Yes, good afternoon. I am Shyam and angel investor. I’ve been chucking Kazansi since quite some time now. Just to question what Mohit just asked me asked you some time back regarding the third question of his regarding the location of your jewelry shop. I believe we are primarily based out of Socarpet Chennai, right? I’m not sure.
Rajesh Mehta
Yes. Yes.
Shyam
And are we targeting any prospective locations down the line anytime soon in terms of expansion? Like you mentioned that we have plans of bringing out two more three soldiers after.
Rajesh Mehta
Yeah, after opening up our flagship showroom. Anyway, beyond they say the coming financial year say we somewhere around FY28. We are planning of expanding into various different areas where we could open four to five branches.
Shyam
So nothing at the moment. Nothing for this year. Only for the next year.
Rajesh Mehta
Initially we are focusing on opening up our flagship showroom.
Shyam
Okay.
Rajesh Mehta
And on latest that’s what we Are on the working of selection of areas and everything. And as soon as the practice showroom is launched and things get in operation and later on we will move on for expense in that way.
Darshan Bhandari
Okay.
Shyam
Okay. The reason why I asked this question is if I’m not wrong, Kalyan Jewel is sometime back also put up a showroom in Kelly’s I believe in Chennai. And I’m not much familiar with the Chennai area. But I kind of heard that even Kachanshi has bought some property in Pashwakam somewhere around Dutharan Road. Is that information right? I’m not sure if the source data is right or not.
Rajesh Mehta
We are having the company owned property in this flagship showroom alone. And future expansions we are thinking of making it asset light. So we are not going to own a property. We will source it some on lease or something of that sort and go for expansion. But it will take its own time. It will be on the after opening of this flagship showroom. It may take another one year for that process.
Shyam
But we don’t have any property or we didn’t purchase any property recently in somewhere in Persuadance.
Rajesh Mehta
That is a management residential property. Yeah, that is management residential property. There is a commercial portion also. In future if required, there is a possibility that the management can think of opening a showroom there. Not yet decided. Okay.
Shyam
Okay. Okay. Okay. Just a minute. Just a minute. Yeah, that’s it. From my side. Thank you so much for your time.
Rajesh Mehta
Right. Thank you. Thank you so much. Yeah.
operator
The next question is from the line of Darshan Bandari from Dari Tools Private Limited. Please go ahead.
Darshan Bhandari
Hello. Firstly I would like to congratulate on outstanding results. My only question is. Yes.
Darshan Bhandari
In the last earnings call it was said that the flagship showroom will be open by May. But now we are saying that it will be open in the second quarter of this financial year. So I’d like to know what problems are we facing.
Rajesh Mehta
Yeah, that’s true. Technically there were reasons for. Since the work of all they say since we have started with the civil constructions and all it got delayed and we are working on There it is in the second quarter. We are even. There is a plan of the management that they are planning to open it by first by portion wise. One of the portions which is operating which may be operating B2B segments and all will be opened in say maybe by July.
Darshan Bhandari
Okay.
Rajesh Mehta
Next quarter. That’s what Second quarter. Yeah. Okay.
Darshan Bhandari
My follow up question would be what steps are we taking in turning our cash flows into positive like currently our cash flow Is like only two cruise in positive. Right. So what steps are taking?
Rajesh Mehta
As we are in the jewelry segment the stock portion plays a very vital role here. And the value of stock is mainly the inventory part occupies the most of the operating funds. So in that case it is equivalent to cash. You can believe. So that’s what we can say on that.
Darshan Bhandari
Okay. That is on my side.
Rajesh Mehta
Thank you. Yeah.
operator
Thank you. The next question is from the line of Ramesh an individual investor. Please go ahead.
Ramesh
Good afternoon sir. So in line with the question asked by previous speaker. So the property in the Pushwakam areas owned by the company or residential property. I don’t understand. Is it on the book?
Rajesh Mehta
Is a property of promoter.
Ramesh
Okay.
Rajesh Mehta
Okay. Okay. Okay. Connected with the company.
Ramesh
Oh okay. So at currently how much inventory we having now the in the sense of gold can be quantified?
Rajesh Mehta
Value wise, we are having around some inventory of some 260 crores.
Ramesh
In the one of the previous con calls we were told that there is three. Okay. Value wise. Okay. KG wise 300. We were told in one of the previous con calls Gold said 300kg was inventory.
Rajesh Mehta
That’s what I told you. Volumize is to around 260 gravy. 260 gold. Okay.
Ramesh
Thanks.
Rajesh Mehta
Yeah.
operator
Thank you. The next question is from the line of Hardik Sukumar Shetty from Anandrati. Please go ahead.
Hardik Sukumar Shetty
Hi. Hi sir. Congratulations on a great set of numbers.
Rajesh Mehta
Hello sir. Thank you so much.
Hardik Sukumar Shetty
Yeah, I just wanted to understand your inventory days have reduced significantly, you know from 89 in FY24 to 53 in FY25. So just wanted to understand what is driving this significant reduction in inventory case. Have we been doing something on the back end or what’s the main reason behind this?
Rajesh Mehta
Yeah, there was an better inventory days because all the ornament sales and all we were offering it. Just a minute.
operator
Hello.
Hardik Sukumar Shetty
Hello.
Rajesh Mehta
Yeah. Yeah. Hello. Hello.
Hardik Sukumar Shetty
Audible. Yeah.
Rajesh Mehta
Yes sir. Yes sir.
Hardik Sukumar Shetty
Yeah, I just wanted to know.
Rajesh Mehta
Yeah. Yeah. You are talking about the inventory turnover day. Yeah. There was a. There was a sale of bullion in the last quarter which was of a high quantum. So the overall inventory turnover was fast.
Hardik Sukumar Shetty
Okay. And going forward what kind of. So will we maintain these level of inventory days? Like close to 50, 60 days in FY26 and 27 or will be higher close to 1890 or more appropriate assumption.
Rajesh Mehta
As for the asins we are going to open up the retail store and we are constantly focusing on the top line of the same segment. It will be somewhere near only maybe 25% here and there.
Hardik Sukumar Shetty
Okay. Okay. And on the second follow up to that, our bullion sales, you know, this year they’ve increased substantially to 48 as against 16% last year. So the reason behind such a drastic increase in our bullion sales and what should be a fair assumption to be made going ahead, the bullion side of the business.
Rajesh Mehta
Yes. Because it was an sepa allotment, the quantum of sepa allotment for the company and it was restricted to 31,3 and till that date we are getting an additional margin of 1 to 1.25% extra on that bullion sale. So. Yeah, and the market demands for that was high. So the company in order to complete that whatever allotment was there. So the Boolean turnover was high.
Hardik Sukumar Shetty
Okay, where we have to set it off in the six months.
Rajesh Mehta
Yeah, yeah.
Hardik Sukumar Shetty
Okay. And just what, what is the guidance for next year top line wise? I think you mentioned 25% growth for FY26. That excluding B2C revenues from B2C or including even from the ocean, the top lines for next year.
Rajesh Mehta
That’s what every year the top line, what we define, we are achieving it and it is moving much higher than that. Once again I tell you that it would be 25% plus from the current top line.
Hardik Sukumar Shetty
Okay. Okay, thank you. Thanks.
Rajesh Mehta
Yeah, thank you. Sir.
operator
The next question is from the line of Vijay Chauhan from rhpms. Please go ahead.
Vijay Chauhan
Yeah, so like congrats on the good side of rumbas in long term because like our base is also small and the execution capability is also phenomenal. So how do you see like revenue growth if we talk about little bit larger horizon, let’s say four to five years period. And what kind of challenges you would see in terms of scaling up to the any desired number that you are targeting in next four to five years.
Rajesh Mehta
So on the constrained business up, we are trying out to be working at least 25% annual year on year on that and improving our bottom line by adding up various other higher margin products. And we are entering into retail segment also and that will add on additional value. So in that case for consistent four, five years. And in that four, five years period we are, we have also plans for opening up an additional showrooms. So in that all if you take it will be surely an higher top line with higher profit.
Vijay Chauhan
Right, right. And if we look at the EBITDA margin, so what will be the EBITDA margin differential for B2C versus B2B? So in B2B what is the range and B2C going ahead. And how do you see blended margin maybe four or five years down the line because margins will improve very slowly because we have major portion from B2B but once we scale up then there will be some margin accretion which will happen because of the B2CP’s. So how do you see in terms of the margin acceleration going ahead?
Rajesh Mehta
That’s what sir, as I defined since we have been working on various higher end products and we have also introduced diamond jewelry for B2B segments which is an high viewing, high margin being product. In that case B2B margins are going to improve. As previously we have defined that B2B margin would be somewhere around 4% and B2C would be around 9 to 10%.
Vijay Chauhan
Okay.
Rajesh Mehta
So blended margin, you can say that it would be somewhere 5%.
Vijay Chauhan
Okay. Okay.
Rajesh Mehta
Yeah.
Vijay Chauhan
Okay. Okay. Okay. And in terms of. Let’s say we when we are launching B2C so which kind of marketing activity we like we are taking is it. It must be mostly regional only. And how is the acceptance like. Like in terms of demand also because there was some slowdown on the. Like on the B2B piece. I’m asking basically like there was some slowdown because of the higher gold prices. So any material difference we are seeing in terms of demand and the marketing strategy on the B2C side. So two parts to this question. Yeah.
Rajesh Mehta
This has been happening. The price race is gradually happening. On various times now the prices have increased. That is. It’s true that at the. At the initial stage when the prices go up and it takes quite a little time for the people to digest that. But once it’s get done, that is for a very shorter period of time. Once the price is accepted by the crowd then things start working at the same pace. So that is not the big issue. And it is on cyclic basis only. The prices are ever increasing and for a very short while there is a slowdown.
But once again it picks up.
Vijay Chauhan
Okay. Okay. Okay. In terms of marketing strategy, would you like to throw some light?
Rajesh Mehta
Yeah. That’s what. Since we are coming up to coming with an B2C store. We have and we are planning, we have planned regional marketing only since because our presence is in region only and we will be focusing there only. The overall management has decided to spend on marketing of somewhere around 4 to 5%.
Vijay Chauhan
Okay. Okay. That will be all from my side. Thank you and good luck for the future.
Rajesh Mehta
Thank you so much.
operator
The next question is from the line of Abhishek Sharma and individual investor. Please go ahead.
Abhishek Sharma
Hello.
Rajesh Mehta
Hello sir.
Abhishek Sharma
My question is what is your current debt structure and are there any plans for reduction or refinancing?
Rajesh Mehta
Could not understand your question. Please, louder and clear please.
Abhishek Sharma
What is your current debt structure and are there any plans for reduction or refinancing?
Rajesh Mehta
Yeah. You’re talking about current debt ratio.
Abhishek Sharma
Yes.
Rajesh Mehta
The current debt to equity is 0.11.
Abhishek Sharma
Okay.
Rajesh Mehta
Yeah. And on a future date. Yeah. For the expansion plan, if anything is required, the company may go for additional debt. It has not been decided yet. But if anything required for the expansion purpose, there is a possibility that company can go for it.
Abhishek Sharma
And how do you expect demand patterns to evolve in financial year 26, especially with the macro tailwinds like rate cuts and increased disposable income.
Rajesh Mehta
That’s what the demand is going to increase as the gold jewelry has always given a better return to all the investors whether it is in the jewelry form or whether it is in 24 karat coin forms or everywhere. So the demand is gradually going to increase only and at the constraint phase we are seeing that the demand would increase by 25% but it would be much better than I think.
Abhishek Sharma
Okay, my last question is what is the succession planning framework? Especially given the family driven leadership.
Rajesh Mehta
Sorry, once again I could not get your question.
Abhishek Sharma
What is the succession planning framework?
Rajesh Mehta
Succession planning that initially we are working on opening up our practice showroom. Later on we will be expanding. This was our strategy.
Abhishek Sharma
Okay, so that’s it from a. Sir, thank you.
operator
The next question is from the line of Mahesh Seth, an individual investor. Please go ahead.
Mahesh Seth
Yeah, can you hear me?
Rajesh Mehta
Yes sir.
Mahesh Seth
Yeah. So my first question is like how does the company plan to differentiate itself from larger competitors like Titan or Malawar in the retail jewelry space?
Rajesh Mehta
That’s what we have. We have our own intangible assets of the design pattern varieties. The management has a very wide experience of say five decades at the. We have been working on it and we have got tie up with all the best quality artisans in India and regionally we are well known here. So in that way we are working and that way our growth is coming up.
Mahesh Seth
Okay, and what are your medium to long term expansion plans beyond Chennai and Southern market?
Rajesh Mehta
That’s what seems we have participated in an exhibition recently where we have found a very positive approach. So the management has been planning to place and participate in all the B2B exhibitions pan India level for expansion purpose and for the retail segment. Initially we are opening up coming up with our flagship showroom and after completion of that say in another one or two years there Is an expansion plan of five to six showroom on the retail segment. So we have company is planning expansion on both sides. B2B and B2C.
Mahesh Seth
Okay. So as you said like five to six stores in like next two to three years, right?
Rajesh Mehta
Yeah.
Mahesh Seth
So how do you plan fund this next phase of expansion? Are you considering any equity raise or debt?
Rajesh Mehta
That has not been actually decided now till date. Because it would be a combination of debt and equity maybe. And the company is growing or out of it reserve profits also it can grow. So that is. That has not been decided till now.
Mahesh Seth
Thank you. Thank you.
operator
The next question is from the line of Rahel from Crown Capital. Please go ahead.
Rahil
Hi sir. Good evening. Can you hear me?
Rajesh Mehta
Yes, sir. Yes. Hi.
Rahil
So first question is as of FY25N so what was your revenue mix? B2B B2C in percentage terms?
Rajesh Mehta
Yes. Yeah. In terms. In percentage terms, somewhere around 10% was our B2B. Sorry. B2C at 90% was B2C sorry. B2B 90% and B2C 10. Yeah.
Rahil
So after this flagship store comes on which is the retail B2C portion. Correct. What will the B2C percentage be by year end?
Rajesh Mehta
Yeah. If everything works right as of the percentage would be improved by 10% addition For B2C.
Rahil
It will be 20% then.
Rajesh Mehta
Yeah.
Rahil
Okay. And so along with this 25 plus growth which you target, you did way much more in FY25. So what was the leading growth drivers for this year? And do you expect the same to continue in FY26?
Rajesh Mehta
That’s what the main drivers that were our creations or marketing strategies and our product specialties. Since we have the prices are increased, we have introduced various lightweight jewelries, our fusion style of production and the management experience, everything add on. For this growth strategy and constraint level, we are defining it that we will grow at the pace of 25%. But we will be doing surely better.
Rahil
And this retail showroom which you said you expect 150 crore additional sales. So when do you expect it to show in A, P and L? Will it be this year completely or some portion this year? Some portion next year.
Rajesh Mehta
That’s what we are thinking of starting up the showroom in like second quarter, second quarter, monthly, this year and upcoming years. It will be continuing.
Rahil
Right? Okay. And lastly margins also you said you’re planning to improve, right? And yeah, bottleneck will definitely improve if you basically because you’re adding higher margin project products. But NFI25, what led to the drop?
Rajesh Mehta
That’s what we. I told you know, since we have. We were. We are higher turnover of bullion was there in the last quarter. So the margins in the bullions are less. But since we haven’t gotten the SEPA quota from MyIBX so we. We are trying to use it to increase our total profit.
Rahil
So do you expect to reach back to 5% in FY26? 5% or plus? Is that something possible?
Rajesh Mehta
Yeah, there is a possibility of improved margin since we are entering into a retail segment where there is a higher profit and we are working on it hard for that. So it is going to improve. We cannot define that. It may reach to 5% in next year itself. But gradually, surely in coming two years it will surely reach 5%.
Rahil
Okay sir, thank you and all the best.
Rajesh Mehta
Thank you so much.
operator
The next question is from the line of Purnima from ICICI Bank. Please go ahead.
Purnima
Hi Mr. Rajesh, good evening. First of all congratulations on your. Congratulations on your results. So I think most of the question. Yes sir, most of the questions was answered already. So. However I just wanted to understand a couple of things. My first question is here we see this showroom that is coming up. So is there any debt addition in the books with respect to the opening of the showroom in Saukarpet pertaining or is it completely funded via our issue process that was raised last year?
Rajesh Mehta
That’s what even the issue process where the very optimistically used and the business was grown accordingly. The management has not decided on any debt pay addition. I think we can have from our own reserves and. Okay. On a future date if any debt is required it may also go for it.
Purnima
Okay sir. Because in the balance sheet I can see there is an debt addition in the books in FY25 especially on the non current borrowings. Because since I don’t have the breakup of the lease liability and the term debt. Can you please throw some light on non current borrowing? Sir, it has increased from 18.64 crores to 25.6 crores. Hello.
Rajesh Mehta
Just a minute, I will check out.
Purnima
Yes sir. Okay.
Rajesh Mehta
The debt from the bank has not increased. It is an unsecured loan that has increased.
Purnima
Okay. Okay sir. And sir, another thing. Just wanted to understand the proportion of your gold purchase. So what is the proportion that you are purchasing from the nominated agencies like bankers and what is the proportion of your outright purchaser?
Rajesh Mehta
Suppose it and all. We are not calculated in that personally. If anything you please drop in your number so that I can show you that I will send you the biker patient.
Purnima
Okay. And final question sir, from Your balance sheet. I understand you are completely relying on your working capital. That is a. You know, CC type of a facility. Why not offer gold metal loan, sir?
Rajesh Mehta
Gold metal loan? We have not ever gone for gold metal loans. Because everything is not that feasible in market itself. We are getting hold at a better price on day to day basis. And okay. As on when required we can use the cash credit limit. All that things add additional value to the company’s policy. So in that case we are not opting for that.
Purnima
Okay. Thank you sir. Thank you so much for your patience. Thank you sir.
operator
The next question is from the line of Hardik Shetty from Anandrati. Please go ahead.
Hardik Sukumar Shetty
Hi. Thank you for the opportunity.
Rajesh Mehta
Sir.
Hardik Sukumar Shetty
Just wanted to confirm and we earlier alluded to having our own in house manufacturing setup. Where we’ll do close to 20% of the production in the next two years. Are we still on track for the same or what’s. How are we progressing over there?
Rajesh Mehta
That’s what. Initially the management is focusing on opening up of the flagship showroom. We have been working on our own manufacturing process. And as stated 20% of our production will be owned manufactured in the coming year.
Hardik Sukumar Shetty
Okay. In the coming. Okay, that is helpful.
Rajesh Mehta
Yes sir.
operator
Thank you. The next question is from the line of Ramesh, an individual investor. Please go ahead.
Ramesh
Sir. Thank you for allowing me to join the queue again. Sir, going through the annual report came across the company called Kazanji Sewers Private Limited.
Rajesh Mehta
Yeah.
Ramesh
So does the company have its operation? Can you just share more information about where is it based out of.
Rajesh Mehta
It in. It is an related company to the management. And it is an sister concern.
Ramesh
It’s based out of Chennai.
Rajesh Mehta
Yeah, it is based in Chennai only, sir.
Ramesh
Because. Does it have operations anywhere else outside?
Rajesh Mehta
No, no. The it is. And it has operations only in Chennai.
Ramesh
But the reason I ask it. The company is registered with RoC Kolkata. And it is registered in West Bengal in a district called Vishnu Poor. That’s why you a little concerned regarding clarification.
Rajesh Mehta
Yeah, it is registered in Kolkata. But all the operations are have been happening in Chennai. We are under the process of shifting that company to Chennai.
Ramesh
Oh, okay. Okay. So one more thing. What is actually the cause for delay in opening of the showroom? It was said that the showroom will open this last Concord was able to open this March April.
Rajesh Mehta
Actually looking for technically since we have started from the base constructions and all. So the completion certificate got delayed. So simultaneously the upcoming processes got delayed. So we have extended the opening date.
Ramesh
Okay. So few more questions. What is the share of Jeddah Jones in the portfolio do we do we jewelry or how is it?
Rajesh Mehta
We do sell Jadao Jewelry but the proportion is very less as in the current showroom. Now on the new showroom we are going to add up an sufficient quantity of Jadao and diamonds and all and which are higher margin segments. So that is going to be an addition higher margin product with volumes.
Ramesh
Thank you. So Jada actually is there the share is less now any reason? Is it less margin? How is it?
Rajesh Mehta
No, no, it is. It is marginal item only. It’s not less margin. But since we have a constraint of space here already we are into the what is there a regional design and local customer products which are already in what they say high selling range here. So they cannot afford to keep for that additional space. So on the new new showroom where we have an abundance of space, we are going to add up all those products.
Ramesh
So what is the difference between Jadao and Kundan Jewelry? Came across something called Kundan. Yeah, what is Kundan?
Rajesh Mehta
Kundan is. Kundan is also a. It is a process of Jaro. Actually Kundan is the pure gold.
Ramesh
Okay.
Rajesh Mehta
In this. In the. In which the Jada is set that I was and what they say Polki diamond uncut diamonds that are set in Kundan. Then is the. What is the purest form of gold that is called Kundan. Yeah.
Ramesh
So one of the previous questions asked in by one of the previous speakers was regarding the succession plan. I do not understand the answer. In a sense to travel between entrepreneurship succession plan. If any discussed or.
Rajesh Mehta
You are talking about succession plan means I could not Understand you define properly.
Ramesh
The succession plan in the sense the ownership is a family driven organization. The succession hierarchy. Hello.
Rajesh Mehta
Hello.
Ramesh
Succession plan. That in the sense who comes next? Since it’s a family driven organization and we have already seen. We have seen in many companies that usually there is a internal conflict. So that. That is the concern of the previous speaker. I guess the answer was not clarified. That’s why.
Rajesh Mehta
Actually the success of LAD has not been defined. If I will you share me your number so that I can get it done and give you the reply?
Ramesh
Oh, sure.
Rajesh Mehta
Yeah. Thanks.
operator
Thank you. The next question is from the line of Priya Jain from Green Capital. Please go ahead.
Priya Jain
Hello sir. So I have covering questions. Like. I want to understand how company hate against fluctuation in gold prices. Are you using futures or any stock replacement?
Rajesh Mehta
Sorry, ma’ am, could not understand the question. Please.
Priya Jain
So my question was regarding. Like how the company might, you know, hedge against a fluctuation in gold prices.
Rajesh Mehta
Okay. That’s what we have been working on a refilling system on daily basis. Whatever we sell, we buy it back and it is an or the traditional method of buying and selling of gold so that the fluctuation risk of fluctuation can be avoided.
Priya Jain
And what is the impact of currency fluctuation on your import score?
Rajesh Mehta
There is no much impact as such because the moment applies fluctuation happens but we refill it on the day to day basis, hourly basis according to the market scenarios.
Priya Jain
Also, how do you view the risks from lab grown diamonds or sift shifting consumer prefinders nowadays?
Rajesh Mehta
Yes, in lab grown diamonds yes, things are there but demand for the there is a preference for always a natural diamonds and yeah, lab grown diamonds are. Also. On high demand when solitaires are concerned because the price variation between natural diamonds of solitaire and lab grown is very wide. So acceptance with regards to lab grown diamond is there for solitary pieces. Solitary pieces you could understand Bigger size of one carat. Two carat. Yes.
Priya Jain
That’S it from my side. Thank you.
Rajesh Mehta
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one at this time. A reminder to all participants that you may press star and one to ask a question. As there are no further questions from the participants. I now hand the conference over to Mr. Harshal for his closing comments.
Harshil Ghanshyani
Yeah. Thank you everyone for joining the conference call of Karvanchi Solas Ltd. If you have any query you can write us@researchirinadvisors.com Once again, thank you everyone for joining the conference call.
Rajesh Mehta
Thank you so much. Thank you everyone.
operator
Thank you. On behalf of Kirin Advisors. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.
Rajesh Mehta
Thank you.