Rbz Jewellers Ltd (NSE: RBZJEWEL) Q2 2025 Earnings Call dated Nov. 14, 2024
Corporate Participants:
Harit Rajendrakumar Zaveri — Zaveri, Joint Managing Director
Harmil Shah — Chief Financial Officer
Analysts:
Prerana Amanna — Analyst
Balakrishnan — Analyst
Rajendra Pasi — Analyst
Kunal Sharma — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to the RBZ Jewellers Limited Q2 FY25 Earnings Conference Call. As a reminder, all participants lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
Before we proceed to call, let me remind you that the discussion may contain certain forward-looking statements that may involve known or unknown risks, uncertainties and other factors. It must be viewed in conjunction with our business risks that could cause actual results or performance or achievements to differ significantly from what has been expressed or implied in such forward-looking statements.
Please note that the company have uploaded the results and the outcome of the Board meeting on the website of stock exchange and website of the company. I now hand the conference over to Mr. Harit Rajendrakumar Zaveri, Joint Managing Director of the company. Thank you, and over to you, sir.
Harit Rajendrakumar Zaveri — Zaveri, Joint Managing Director
Good evening all. We have just concluded our quarter two results and we are happy to announce that the revenue growth of the company on Y-o-Y basis is around 57% from last year’s INR74 crores to this year’s INR116 crores and then Q on Q 41% from INR82 crores to INR116 crores. Half yearly growth has also shown positive in terms of revenue in the quarter two our retail and wholesale business has done very well. That is on the B2B side the sale of goods business, the sale of goods business. The sale of service business had shown an impact because of which the EBITDA levels of the company has dropped significantly considering the Y-o-Y last year second quarter of 2024 to this year’s second quarter of 2025.
Apart from this company has invested in — heavily in HR resources and team building and we are moving on a much stronger path ahead. The fundamentals of the company are intact and we are building brick by brick be it team, be it resources, be it infrastructure. And despite duty cuts and despite prices going down and significant changes in volatile environment of gold prices, we have seen the revenue going up last — in the last earnings call, I had clearly mentioned that the quarter 2 and quarter 3 has to be looked on a mixed basis. Again, I have my same things.
We have just completed the festive month of Diwali.
It has been a great season. After Diwali, we are full of orders when it comes to sale of services, that is, job work part. The wedding season is doing good and the wholesale business on the B2B side is seeing good demand. So certainly, the — what we are expecting is a much better quarter ahead than last year or ahead — or the quarter 2 that we have done so far. As company has — on the financial level, we have done a PAT which is approximately INR8 crores, more or less on the same lines with last year quarter 2 PAT and year-on-year basis, we are at INR17.14 crores versus last year’s INR12.9 crores oddly.
We are PAT positive. We are revenue positive and third quarter will bring out the, I think, more realities and the festive month and the wedding months combined will show 100% better track records and better results. This is it. For the — I’m open to questions from any of the investors or any of the call attendees.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. [Operator Instructions] The first question is from the line of Prerana Amanna from PNA Capital. Please go ahead.
Prerana Amanna
Hello sir. Good evening. So my first question is how many kgs of gold have you done in H1. We had a target of doing 1500 kgs right for this year.
Harit Rajendrakumar Zaveri
Correct. So Prerna, 1500 kgs was in line with the actual gold rate of INR6000 rupees a gram. So if the gold prices escalated by around 17% to 25% because of the duty rate cut, the price has gone down and again it reached to the level of 80,000. Right now it is 77,000. So because of that volumes in retail and wholesale has shot up. But in the sale of services the volume has gone down. So overall we are looking at around — right now we are at around 542 kilos and we are hopeful to get the two quarters much better. So even if we are at volume positive of around let’s say 1300 kilos or so still we are, that would result in actually a net of revenue more than the company actually growing at more than 45%, 25% growth in volume prices itself. The value of gold itself. But the retail and the wholesale business has seen a volume positive and to the tune of around, 260 kgs has come from the retail and wholesale alone.
From last year, I think that is approximately a volume jump of 25% to 30%. So — or plus. So only the sale of — because of the sale of services, that is Q1 was slow for organized retailers. Q2 they have, after the duty rate cut, the demand actually flowed in. So we will be getting, we got the orders quite late. So the demand has been postponed. We got orders in the month of August mid. So September was the only month to have. September, October are the months where we have completed the orders. So yes, by the end of the year or by quarter 3, we would be volume positive. And by the end of the year, I think we should be having a volume growth of around 20%.
Prerana Amanna
Okay sir, and regarding this, a lot of companies have been reporting this inventory loss because of this cutback on import duty. So what has been the inventory losses that we’ve had this quarter like in Q2.
Harit Rajendrakumar Zaveri
So we maintain our books on the weighted average principle. So whatever the if the prices goes down the 1book value of gold supports the prices. So in general our book — there was a sudden decrease in custom duty but that has not impacted the books to the greater extent. Yes, the book value did support it. So book value was near about where the prices of gold were. And so we did not see any significant loss of inventory because of the duty rate cut. And I think you can say that there was an opportunity loss because of the rate that happened. But again the rate went back to 75,000 or so and it was a good quarter for that reason. In fact duty rate cut also witnessed a very strong walk ins and especially in organized segment they had a very good demand and because of that our Q3 will be going or September, October went beautiful. So I think duty rate cut was a nice thing that happened and no such substantial losses that has been there because of book Value of gold was already lesser.
Prerana Amanna
Okay. And sir, what was the reason that our PAT was flat compared to last Q2 and this Q2 then if there was no inventory losses as such?
Harit Rajendrakumar Zaveri
Yes. So only reason was sale of services demand was lower. So last year, yes, and that was because I had said in my last earnings call also, if you just follow in quarter 2 — quarter 1 I had said that the organized retailers have not done well in quarter 1. Their revenue were not highly growing. So in quarter 2, because of duty rates, they have done a nice, and we have also got in orders. So Akshaya Tritiya, the inventory that they loaded has to sell off, but because of elections, because of a lot of other economical factors, it did not turn out well. But in quarter 2, their demand is good, and so we are also having good orders in hand on the mid — after mid of August. And certainly, in quarter 3, you will see that all the three segments, be it retail, wholesale or job work or sale of goods and sale of services, both the segments will be doing fairly well. And in line, I mean, we are growing at around 55% in revenue terms, we’ll continue to grow at the same pace hopefully. I mean October has gone and we are almost in the mid of November, and I think we are in right track as of now.
Prerana Amanna
So sir, you can like you’re confident about achieving that INR600 crore revenue mark and INR35 crore impact I assume.
Harit Rajendrakumar Zaveri
Correct. So if you. If you. Right now we are almost on 90%, 95% of last year’s mark we have achieved. So I can say that we are pretty confident for achieving mark from INR500 to INR600 crores and INR35 crores impact.
Prerana Amanna
Okay sir. Wonderful, wonderful. All the best for the coming quarters. Prerana
Harit Rajendrakumar Zaveri
Thank you. Thank you Prerana.
Operator
Thank you. [Operator Instructions] The next question is from the line of Balakrishnan from Tata Consultancy Services. Please go ahead.
Balakrishnan
Sir, I have a question here. In this statement, financial statement. This one is very high. I mean 602788[Phonetic] change in inventories of finished goods under work in progress. What is this sir? I mean it is very high, very very high compared to the last quarter and the previous year. Previous year. Previous year it was only 2174[Phonetic] but in the current year it is showing 6027[Phonetic]. How come it sir.
Harmil Shah
So sir, if we look at the COGS year-on-year, the total is INR52 crores against INR74 crores of topline, that is around 73%. And currently, the COGS has hit INR91 crores, that is around 78% of our top line. So the increase is mainly due to the job work, the sale of services that has hampered because the reduction in job work volume has impacted, has a lower COGS. But as the retail has increased, if you will see year-on-year, last September, we have grown retail quite significantly. So that is the purchase of traded goods and the increase and decrease in traded goods is also bearing minus INR60.27 crores. So if we see the reason the increase from 73% to 78%, this is the major reason.
Harit Rajendrakumar Zaveri
Also that there is an inventory purchase that has been taken. We have utilized the limits in quarter 2. So there is a — we are — in the month of August, it’s a kick start month for the jewelry industry. So because of purchase of inventory, be it in traded or in manufacturing goods, the inventory, there is a change in the inventories.
Balakrishnan
Sir, this inventory, we bought the inventory, but we haven’t sold that inventory. I mean, that will — that you will show it in the next quarter or what?
Harit Rajendrakumar Zaveri
Correct. So it is not necessarily that we have just bought this inventory and not sold this particular inventory. It is the combination of opening stock plus purchases, minus sales and the changes in inventory than results.
Balakrishnan
So how much of 60720[Phonetic] is the gold sir, that is bought?
Harit Rajendrakumar Zaveri
INR6,027 lakhs is almost gold sir. So we have — we are 95% into — 90%, 95% into gold. And INR60 crores of this is almost all gold that is bought.
Balakrishnan
Again, like sir, my only question is like how it can became like from INR322 crores to INR6,027 lakhs, that’s quite a big number.
Harmil Shah
So sir, if I give you the breakup of INR60 crores, INR60.27 crores. We can see that 50% of these changes is due to the finished goods that is — that we produced and that would be us holding future and INR50 crores — 50% is from the retail bank that we did in this quarter 2.
Balakrishnan
So you mean to say.
Harmil Shah
We — see if you see the purchase of traded goods year-on-year, if you see last September ’23, there was an H1 purchase of INR76 crores, which has gone up to INR101 crores. So there was a buying also in traded goods during this quarter.
Balakrishnan
So my question is like I mean will it be added to the revenue or profit or anything for the next quarter or something like that, is what I’m asking?
Harmil Shah
Yes, yes, definitely. Whenever it would be sold in probably next quarter, it would be directly impacting the top line. And it would go to purchase of traded goods or cost of material consumed. If it is FG, then it would be parked in cost of material consumed. And if it is traded goods, then it would be going through traded goods.
Balakrishnan
No, this is the item, like maybe, I don’t know, because of these — yes, cost of the material used, okay? Okay, sir, anyway like you will be meeting the guidelines for this year. What is the target sir, for this year? I mean how much sales and how much profit by end of the year, we can see?
Harit Rajendrakumar Zaveri
So INR500 crores to INR600 crores will happen top line. So we are — the topline has already grown by around 55% to 60% this year, on a Y-o-Y basis. I think continuous topline growth will happen around 55% to 60% even in this quarter or more in the — on a year-on-year basis, INR500 crores to INR600 crores is what we are looking forward for a topline and INR35 crores is what we’re looking for the bottom line and around 1,200 to 1,300 kilos is what we are looking at the volumes. So because the price has escalated very high, so that there is a lower volume growth. Otherwise, we were looking at around volume of around 1,400 to 1,500 kilos. But 30%, 25% volume prices have hiked. That is why we have to cut our estimates and volumes. But yes, year-on-year growth of revenue and PAT levels are intact.
Balakrishnan
Okay. So whatever the impact that happened in this quarter, we are not expecting any kind of that in the next three or four quarters, right? Next three and four quarter, right?
Harit Rajendrakumar Zaveri
So this — I mean, this is just a postpone of demand. See quarter 1, organized retailers did not do well. Quarter 2 they did well. So quarter 3, B2B will be doing well because of there is a demand in the market. Even the festives have gone good for all the retailers. So I think there is good demand in the market right now. We are hopefully — and we are growing good. We are growing at around 55% to 60%. So I think if the top line is growing, it’s a good growth. And bottom line, I think it’s intact. Half yearly, we have already done INR17 crores, and we are projecting, INR35 crores. I think, yes, we’ll be able to meet it up.
Balakrishnan
At the same rate, I mean, half yearly INR17 crores means, next one more INR17 crores, you are expecting, that’s it.
Harit Rajendrakumar Zaveri
INR17 crores, INR18 crores, we’re expecting.
Balakrishnan
I mean like third quarter seasonally, it should be a good quarter, sir. Then like you should expect something more, right? Why again like only INR17 crores.
Harit Rajendrakumar Zaveri
Sir, I think we are taking — not only taking third quarter, we are also taking fourth quarter into place. Let us see how the third quarter rolls out. Like you, even we are hopeful, but when we give out the numbers, I mean, we are committed to it, right? So the whole team is working to achieve better numbers. But I think from INR22 crores last year to INR35 crores this year is a decent jump. We are — our hunger is more than — I can put it in words, but the company has to grow more on a fundamental basis. I mean the better questions would be that how growth is sustainable. We have, we are adding SAP to the, we have added SAP, financial integrity is high, our team is expanding, robustness is coming into the system. So this is all the parameters, I think, by which we can continuously grow and that is more core for the company. Yes, this year, we will be hopeful that your words should turn true and we should be turning better numbers than INR35 crores. Let us see, sir. Let us work that. The seasons have gone good. October has been good. November is so far so good. Let us see, hopefully we will do better.
Balakrishnan
How about this expansion plan, sir? You were talking about some expansion plan last time.
Harit Rajendrakumar Zaveri
Correct Sir. So the addition of new manufacturing facilities on the map. We are right now still watching the volume figures. See, we are — we have an infrastructure of around 2 tonnes. We are — right now, we are projecting that this year, we should have done 1,500, 1,600 kilos. We have not done that kilos because 30%, 25% price of gold went up. So we will be doing perhaps 1,300 kilos or so. So I mean we do have a capacity in hand. We should be very — the timing of the expansion has to be very right. I think after this — I think in the next fiscal year by fiscal ’26, we should be ready with all the expansion plans and certainly moving ahead.
Balakrishnan
Okay sir, thank you. Thanks for the information. Thank you so much.
Operator
Thank you. [Operator Instructions] The next question is from the line of Rajendra Pasi, an individual investor. Please go ahead.
Rajendra Pasi
So, hello sir. My first question would be, you mentioned about the opportunity growth, right? So can you explain like what percentage of opportunity cost were you talking about whether you have purchased the gold at lower prices and due to a decrease in the gold duty, you had lost like the top and bottom line? And did we work anything on basically to buy it again during that time so that we can get the benefit in the future?
Harit Rajendrakumar Zaveri
Correct, sir. So opportunity growth is some opportunity profit or sort of that is always there in the market. So the gold prices come — goes up and there’s always an opportunity to sell that gold. But our company is into making of jewelry, selling of jewelry. We are fundamentally based company. We look forward for a consistent growth. Once the profit, if there is a price of let’s say, INR80,000, once the profit can be delivered. But consistency of profit would come by building up a much stronger base of a company by selling jewelry and getting new clients and so on and so forth. So, yes, opportunity in the growth in the near term is like INR80,000. When there is a rate of INR80,000, we could have sold the gold and we could have got the profit because now it is lower. But it is generally prevailing in the market. I think RBZ — for RBZ, we look at every quarter, how are we building the company for future. So I can say that sacrificing any short-term opportunities, yes, could be there. But having a long-term view would be something more interesting for us, sir. So I think not selling at INR80,000 or not selling INR81,000 could be an opportunity missed. But let us focus on business. That is it, sir.
Rajendra Pasi
Good. Got it, sir. And can you give me like the revenue breakup, like what percentage was in retail, wholesale and what percentage of work we have done in this quarter. And what percentage of your gold work was impacted when we compare it to the last year.
Harit Rajendrakumar Zaveri
So jewelry sales of retail, when you talk about sale of goods, jewelry sales of retail and wholesale is 50%. And when you talk about volumes, we are 70% to 75% driven into B2B market and 25% to 30% driven for retail market.
Rajendra Pasi
Got it. Got it. And the third question would be that you mentioned in the previous con-call that Q2 is going to be light, right? So does these numbers fall in the expectations like what you had expected or like they are good or they are more on the worse side?
Harit Rajendrakumar Zaveri
Okay numbers, sir. Very honestly, if you asked me, these numbers are okay. Like, I mean, we have — the sale of services impact has been, I know has been substituted by growth in revenue and business boost in retail and wholesale. So we have done pretty well when it comes to wholesale and retail, but due to a demand effect in organized players, our sale of services has got impacted, which is just going to improve. The demand has just postponed. So as a whole, the company has done decently in quarter 2, quarter 3 should be one which we should be eyeing too, sir.
Rajendra Pasi
Got it. Got it, sir. And the last question would be like, what are the volumes that we have done in this quarter versus the last financial year for the same quarter.
Harit Rajendrakumar Zaveri
I’m sorry sir, can you repeat it again?
Rajendra Pasi
I’m asking like what are the volumes of gold that we have done in this quarter when compared to last quarter — in the last financial year.
Harit Rajendrakumar Zaveri
I think — so this year, I think sale of services volumes has got impacted, whereas retail and wholesale volumes are positive in numbers. On a Y-on-Y basis, we have done around 542 kg this year versus around, I think, around 580 plus kgs last year.
Rajendra Pasi
Got it sir. Got it.
Harit Rajendrakumar Zaveri
And I think that has just because of impact of sale of services. Otherwise, retail volumes and wholesale volumes, both are heavily positive to the tune of 30%, 35% — 25% to 30%, yes.
Rajendra Pasi
Got it. Got it. And as you have mentioned that we are confident to achieve the PAT that we have given in this call and the previous calls along with the top line.
Harit Rajendrakumar Zaveri
Yes, sir. The top line would be INR500 crores to INR600 crores as we are looking forward. October has gone pretty well. We are very — we are 100% optimistic. Whatever we had set targets for October we have achieved in full. November, till November 15 things are in order, it is going good. We have got a good load in job work that is sale of services right now in hand. Walk-ins in retail stores are very promising. We have a strong walk-ins. It’s a good demand in wholesale. I think quarter 3 is something that we are all betting on.
Rajendra Pasi
Got it sir. Got it. And all the best sir. All the best for the future.
Harit Rajendrakumar Zaveri
Thank you sir. Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Kunal Sharma from SP Capital Financing Limited. Please go ahead.
Kunal Sharma
Yeah. Hi. Thanks for the opportunity. Sir, I just missed your opening commentary. So if you could just highlight what’s the reason behind this particular — during the quarter?
Harit Rajendrakumar Zaveri
I’m sorry, sir. Like what commentary sir? Highlight the reason for?
Kunal Sharma
The reason behind this softness in the PAT. So could you please throw some light on that particular part?
Harit Rajendrakumar Zaveri
Sir, it is only because of sale of services demand got postponed. In my quarter 1 earnings call, I had told that quarter 1 results for the organized retailers were low. The inventory that they loaded for Akshaya Tritiya did not sell through, right? So after the duty rate cut, the inventory sales for organized retailers are good. So that is why we had got a deferred demand. So we had got our load in August-mid or September, you can say. So September, October and November will be those months, which — in which our demand is full. So that is why because of deferred demand. The sale of services business got impacted and the bottom line has got hit. So whatever — we have not managed to increase our bottom line significantly. But in saying that quarter 3, we are because — we have the demand right now, October is very much in line. November also looks like till November 14, we are right there. So I think this year, we should be — this quarter should be a result quarter, sir. And we are expecting the only hit is because of sale of service business that is job work business from organized retailers.
Kunal Sharma
So what I understood is that because of the custom duty cut where all the reorganized players bottom line has been impacted, right?
Harit Rajendrakumar Zaveri
Correct, sir, So custom duty rate cut bottom line of see — correct. So I mean due to duty rate cut, okay, their bottom lines could have been impacted. But because of slow quarter 1 our business was impacted in sale of service for quarter 2. Nothing has to do for us as customer duty. Yes, the custom duty rate cut hampered the bottom line of RBZ, but we were saved because of lower book values. So it was an opportunity miss that we can say that because if there was no duty rate cut, we could have shown better picture or better results also. But ultimately, it has got subsided by good demand. So I think overall, quarter — the demand has deferred from quarter 2 to quarter 3 in sale of services that is job work business.
Kunal Sharma
Okay. Okay. Understood. So just to follow up on the business strategy. So I wanted to understand, sir, that we purchased in advance, right? And later on, we execute the orders, whenever we get from our clients, is it?
Harit Rajendrakumar Zaveri
Yes, sir. I mean, when we go for exhibitions or even before the season of festives, we build up inventory. So when we build up inventory for showing it to retailers or in our own retail store, we do it in the month of August or when the IIJS exhibitions comes up. And the whole industry, is the kickstart of whole industry, yes, sir.
Kunal Sharma
Okay. Okay. Understood. So my second question on, so can we go beyond the predefined guidance that we guided a INR35 crores of PAT considering the wedding that we have during the quarter 3, which is somewhere around INR46 lakhs to INR47 lakhs of wedding that is there in India. So is that a possible to surpass the predefined guidance that we have been guided for quarters — for FY ’25?
Harit Rajendrakumar Zaveri
So I think quarter 3 should give most of the answers. We are in a volatile market. I agree that being an occasion jewelry player that what you are quoting is the bang on opportunity for us. We are not in to daily wear. We are most — more into occasion wear. And this is a big opportunity for us. But still quarters, the market is very volatile certainly the rate — because of external geopolitical environment sometimes the gold prices rises up and it comes down and it confuses the customers also. But all put together, wedding is a need-based demand for gold. And quarter 3 figures should actually tell most of the stories. Let us focus on, I think, first, the guideline. And internally, we are all working to achieve more figures guideline, let us first make sure that we are matching the guidelines, sir.
Kunal Sharma
Okay, understood. Sir, Third question on the margin front that if we — if I’m not wrong that we are at somewhere around 10% to 11% of margin. So is there any scope to go further from the current margin? Or are we any — are we doing anything to surpass the current margin that we have today?
Harit Rajendrakumar Zaveri
I think business model actually is more critical when you understand margins. So if the sale of services business goes up, then we have more margins. So if I talk about last year Q2 to last year’s Q3, you can easily see that Q3 had produced more revenue than Q2, but margins were higher in Q2 that is because of the sale of services demand went up, was very strong in Q2 last year. So this year, Q2, the margin is low because the sale of services demand is low. So with RBZ it is more to look at the business model that is retail, wholesale and job work or to be more on a broader spectrum, it is sale of goods versus sale of services.
So more the sale of services, better will be the bottom line. But I think overall — see, the sale of goods also gives us a very good ROI. So if you look at ROI, I think all the three sections of business are doing pretty well. So I think let us focus on, I think Q3, sir, I think margins are more to do with business model but ultimately as a businessman we look at how much money we can generate from the money that we have. [Foreign Speech]. So I think ROI, return on capital employed, return on equity will be something that we as management would look.
Kunal Sharma
Okay. And another question on the retail front that we have a presence in the Ahmedabad only, right? So are we looking to expand our retail vertical?
Harit Rajendrakumar Zaveri
So we right now have expanded. Like in the Q3, we will be expanding one more floor in retail of 3,000 square feet. Retail has — is growing at the right pace, around 35% to 40% or plus is the retail growth right now. We are seeing — we are hopeful to have this sustained amount of growth for another two years and so. So I think as of now, we have got the infrastructure of retail, which is ready for at least INR500 crores, INR600 crores of top line. So let us work through that. And once we are through with this top line, we will have our views forward. We are also very optimistic about the B2B front. Because more the retailers are getting into IPOs, the — indirectly it is going to help the wholesale business also. And both of the fronts are seeing good demand in place. Being volume positive as a company in this kind of an environment where the gold prices has risen by 25%, almost speaks of company’s efficiency too and the demand, which is already there in the market. We are doing pretty good, sir. Quarter 3 should be more or less staying it all.
Kunal Sharma
So in Ahmedabad, we have opened one more store?
Harit Rajendrakumar Zaveri
No, sir, not one more. Sir, we have added a floor space of around 3,000 square feet.
Kunal Sharma
Okay, okay. Floor space. Okay, understood. And how many stores that we have in retail side, within the Ahmedabad or out of Ahmedabad if we have?
Harit Rajendrakumar Zaveri
Sir, we have one flagship store of around 11,000 square feet. And from that, we are expecting a revenue of around INR500 crores to INR600 crores. That’s the capacity of the store. And I think we are — this year, we will be in around INR250 crores or so in retail. So I think we have pretty much two years more to go about with the same-store. And let us see after that, sir.
Kunal Sharma
Okay. Okay. And the last question on if you could share inventory days or working capital cycle days. And if you could share the trend as well?
Harit Rajendrakumar Zaveri
So last year, the inventory days were around 313 days, and it was because of the pile up of stock that we did and the funds coming in of IPO. The IPO procedure that was used in working capital. Right now, it is 198 days. So we have improved on the inventory working capital base or the cash conversion cycle has already improved. And inventory, I think — this year, we have — we are almost the inventory turn and the inventory days are as what fiscal ’23 year showed like. So there were questions that the inventory days are very high, but it was just because of the IPO proceeds coming in and we were building our stock for that matter. And the stock once realizes, which have realized in this quarter 1 and quarter 2, we are again back to track with inventory turnover and better inventory turnover and better working capital days.
Kunal Sharma
Okay. Okay. And how much cash that we have in our balance sheet?
Harit Rajendrakumar Zaveri
We are talking about cash conversion cycle. So cash conversion cycle is from 313 days to 220 days.
Kunal Sharma
No, no, I’m talking about the cash, the net cash in balance sheet.
Harmil Shah
Net cash will be around INR14 cr cash and bank balances.
Kunal Sharma
Okay, okay. So is any plan to another fundraising or that we have a sufficient cash according to you?
Harit Rajendrakumar Zaveri
I think this is the year of performance. Whatever we had committed to investors by raising the funds, we should do it with 100% financial integrity. We have brought in SAP, an accounting software. And after — let us see for this year. Yes, the company has got a very good opportunity for growth in all in the coming years. We are seeing a very strong transformation happening in the industry and we have got in a good demand. So after this financial year, let us — we will be thinking in that direction. But as of now, for this year, we want to focus on our operational efficiency and tightening of all the departments and tightening of screws[Phonetic] that we can. Let us bring — this is a year of performance, sir. We want to — whatever money that we have taken from investors, we want to make sure that on each and every front, we delivered what we have committed.
Kunal Sharma
Okay. Okay. So just a last question from my side. Does the gold price has been corrected to almost 9% from the high. So can we see better positive going forward in our business or in terms of inventory as well. So did we bought a low price of inventory, or low price of gold when they have been corrected? So can we see those kind of positivity in our business?
Harit Rajendrakumar Zaveri
So see the gold prices — I agree that gold prices right now lower than what we have seen a month ago. But we don’t know where the bottoms are and we don’t know where the high is. So generally, we buy gold on the basis of demand that we forecast. And I think the demand is pretty well. All our funds are into gold. All our inventory is of majorly gold. I think this should, the prices rise or price decrease is an industry phenomenon. I’ve been in this industry working for now around 18, 19 years. This is a cycle that happens. One person who focuses on the fundamentals of business are more — is a much better thing to do. So I think grabbing an opportunity for buying at a lower price is one of the things, but making the fundamental stronger, focusing on business is what we are doing. So we don’t know where the lows are. We don’t know what the high is. Let us — we buy how much we are able to sell or how much our demand is, basis on that, sir.
Kunal Sharma
Thank you so much. Thank you so much for your answers.
Harit Rajendrakumar Zaveri
Thank you sir.
Operator
Thank you. [Operator Instructions] The next follow up question is from the line of Prerana Amanna from PNA Capital. Please go ahead.
Prerana Amanna
Hi sir. So this 542 kgs of gold that we have done in volume, is it for H1 or Q2 alone?
Harit Rajendrakumar Zaveri
H1 ma’am.
Prerana Amanna
It’s for H1, right? Okay sir, thank you.
Harit Rajendrakumar Zaveri
Yes.
Operator
Thank you. [Operator Instructions] As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Harit Rajendrakumar Zaveri
I think quarter 1 and quarter 2, the growth in terms of revenue is consistent. We are forecasting the same kind of growth in the coming two quarters. Company is hopeful for achieving the guided numbers of around INR500 crores to INR600 crores in terms of revenue and INR35 crores on the bottom line. Moreover, company more focuses on developing the fundamental base for our future growth, and that is why investment in terms of team building, HR resources is done. We are — the jewelry industry is under transformation and RBZ is one of the B2B players that is there early in the picture. We have got marquee clients. We are working with the key names that are there in the market. We have got a strong opportunity ahead, and we are looking for a very strong quarter 3 and quarter 4. And perhaps we’ll meet the committed numbers that we have set so. Thank you. Thank you all.
Operator
[Operator Closing Remarks]