Rbz Jewellers Ltd (NSE: RBZJEWEL) Q3 2025 Earnings Call dated Feb. 12, 2025
Corporate Participants:
Harit Zaveri — Chief Financial Officer
Analysts:
Unidentified Participant
Ankit Agarwal — Analyst
Prerana Nireeksha Amanna — Analyst
Deepesh Sancheti — Analyst
Sahil Patani — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the RBZ Dwellers Limited Q3 FY ’25 Earnings Conference Call. [Operator Instructions] Before we proceed to the 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, the risks that could cause actual results, 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 exchanges 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 Zaveri — Chief Financial Officer
Yes, good afternoon all. We have just completed the quarter three of fiscal ’25 and the results are out. The company has done a revenue of around INR194 crores which is 60% odd plus than the last year’s why and by we have made a profit of profit before-tax of INR18 crores and which is again compared to the last year results on Y-o-Y basis are exceeding by last year it was INR9 crores, 14 lakh, this is INR18 crores, INR16 lakhs. There is an there is an increase in employee cost as in my previous earning calls, we are building up in robust structure for continuous growth and development for the company. So team is being an essential element. So yes, there is an increase in employee cost and the financial cost has also proportionately increased.
In-quarter three, we require a good working capital funds. Quarter three is the prime season for the jewelry industry. And I think in this year we have — we have made a profit of INR13 crores plus. The volume of the company has stood at INR461 kilos, which on Q-on-Q basis last year was 3312 kgs. So there is a clear increase in volumes due to increase in sale of services. The sale of goods business that is the retail and the wholesale business has done exceedingly well by getting a revenue of up than 16%. I think this is the brief from my side. On the forward-looking, quarter-four seems to be good.
We have already completed January and February is — February is on. I think from the last year, quarter-four this year, quarter-four will be again far exceedingly well. And comparatively, I think this quarter-four, January has gone as per our expectations. So let us hope for a better quarter-four and the promise remains that we had expected a INR35 crore of PAT and the cumulative PAT has already crossed 30 CR. I think quarter-four, five CR seems very much in control and achievable this is just a little brief about the company’s financials over to the questions if any.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] The first question comes from the line of Abhishek from AB Capital. Please go-ahead.
Unidentified Participant
Hello. Am I audible?
Harit Zaveri
Yes.
Unidentified Participant
So you had guided for INR500 crores to INR600 crore revenue and INR35 crore PAT this year. So considering your brilliant performance this quarter, would you like to revise your top-line and bottom-line guidance?
Harit Zaveri
So top-line, I suppose it will be around as far as right now we are looking, I think INR520 crores to INR530 crores should be around INR535 crores should be the top-line. And the bottom-line, I think let’s say INR35 crores is what we have committed. I think it will — it should surpass whatever committed levels are. I think we are in control of whatever we have said and we would want to keep it as it is. Yes, from the turnover top-line perspective, it will be from INR500 crore to INR550 crores.
Unidentified Participant
Okay. Okay. Another thing, like at a broad level, I wanted to know like in the long-term, maybe in maybe three, four-year view, what is the broad vision for the company? Like do you want to grow predominantly into your contract manufacturing firm for antique jewelry who also has their own brand or do you want to go predominantly your — the Thari brand and that make that into a premium brand with multiple showrooms all over India and have contract manufacturing as like secondary, which one will be your more focused.
Harit Zaveri
So as of now, we are — we are doing healthy — we are doing good in both the segments that is B2B and B2C. And yes, there is a current capacity is around 1,700 KG or 1,800 KG is already there in wholesale. So there is you know because of the price which has hiked of — in this year also it has — in this quarter, there is a hike in around 10% to 15% from INR75,000 to 88,000. And last year it was from INR60,000 to 75,000. So I think still the capacity is not fully utilized and we have a good room. There is no need of an excess capacity as of now.
We can — whenever we want, we can tune-up to job working and we can also make other — in the market, the job work practice is already there. So there is no — there is no need of an additional capacity. On the retail front, I think we have our store, and as expected, even before the IPO, whatever figures we have projected for the retail showroom has come across good. Looking-forward, we would want to — we would want to sustain our margins and we will want to grow the top-line, let’s say, in the next coming fiscal to INR700 crores INR750 crores.
And going-forward two to four years, we are expecting that you know, the contract manufacturing business, my volumes will grow and even there will be better margins — there will be better business prospects in retail. So these two fronts will grow. I think there will be — we have already added a floor in retail for next calendar year — there is calendar year ’25, there is going to be a supposingly we are yet to, you know, we are yet to see the season. I think next year, INR700 crore INR750 crores seems to be a very achievable kind of revenue figures with INR44 crore INR45 crores PAT further raise of debt will also be there.
So looking — considering that let us see how the three, four year looks like. But yes, we have got a very robust back-end. That means manufacturing setup is extremely robust. If we are going anything in front-end, it will just be a better — the margins will be way better in that case. So the kind of infrastructure that we have from manufacturing to retail helps in sustaining our margins in all forms. For a three to four-year outlook, I think the company will consistently provide a CAGR of around 35% plus a year-on-year basis. So let’s say this year it has grown to 525, next year 750 and further it will grow again 35% to 40% top-line growth will be there.
Unidentified Participant
So revenue mix will be 50-50, you want to maintain it 50-50 for both sides?
Harit Zaveri
Revenue mix, yeah, it will be — it will be 50-50 as of — as of this calendar year or the coming financial year, yes, the revenue mix will be again 50-50.
Unidentified Participant
Okay. So do you have any plans to open more showrooms like in the near-future as of now?
Harit Zaveri
Let us see first this showroom already has a capacity of around INR600 crores to INR700 crores. We have not reached our capacity. We will be — this year, I think we would be reaching 50% of our capacity. So you know, let us see, if we are — even if we are crossing INR250 INR300 crores this year, then also we have — we have got time — there is a — it’s a great marketplace. We need to push more inventory. We need to you know get the you know, I think we need to get the sales out first-in this — already the — we have 10,000 square feet showroom in Ahmedabad. So that showroom is sufficient for INR600 croress crores. Let us wait for this quarter at least two quarters and then we can understand how the retail looks like. But yes, certainly, if this space is exhausted in the sales, we will look-forward for another venture, another retail space.
Unidentified Participant
Okay. And what will be the ROE trajectory going-forward? Can you give some guidance or anything?
Harit Zaveri
Yeah, ROE will be — it is ROE, we always focus that if we have INR100 of, we should be earning INR20 to INR25 net. Okay, of 20% that is we maintain our business in that sense.
Unidentified Participant
So you want to bring your ROE to around 20% to 25% in the.
Harit Zaveri
20% to 25% is the sustainable ROA and we have always been in that business — we have always been like throughout the business journey, this — with the ROCE or ROE is 20% 25%.
Unidentified Participant
Okay, thanks.
Operator
Thanks. Thank you. The next question comes from the line of Ankit Agarwal from Value Cap Investments. Please go-ahead.
Ankit Agarwal
Yeah, hello. Am I audible?
Operator
Yeah, you please go-ahead, sir.
Ankit Agarwal
Yeah. Harit, sir, first of all, congratulations for a very good set of numbers. And also I would like to thank you for meeting your guidance. Okay. So sir, my question is in one of the earlier calls, I think two quarters ago, you had mentioned that you are looking for some new land to expand your capacities for the B2B side of the business. So anything on that front, sir, you would like to say any plans that have come along?
Harit Zaveri
You’re quite correct in this sense, but you know the gold trajectory has already — when we were in IPO gold was around 55,000, 60,000 right now it is 85,000, 90,000 approximately. So in this sense, you know, there is already a quite a buildup on gold and further there could be further escalations. We don’t under — we don’t understand. So as of now, we are meeting our revenue guidance. We are meeting our — but we are not able to meet up our volume guidance because of the very-high growth in terms of gold prices. So in this case, again, it is not 100% advisable to build-up a factory as of now.
And even if there is a capacity expansion, that will not 100% lead to a demand expansion because we will again need a huge working capital. So if we are having a 1,700 or 1,800 kg of facility right now and we are doing, let’s say, 1,200 kg, we still have — even if we grow at 20% next year or next year, we still have enough capacity and we can also do a job work outside. So doing the capex of INR40 crores orders right now, I don’t think so is what we are thinking. In future, yes, once we at least come across 1,600 kg of quantities, we can still have like 300 capacity can be expanded in-house only to two is easy.
So you know next two, three — next couple of years or next at least one calendar year, we are not thinking of building up anything. Okay. So you think you will be in just because of strong increase in gold prices. But yes, I think what we are — what we are looking in the businesses, there is a good there is a very — because we are a manufacturer, we have got a cost advantage. And we — when we are doing retail that profitability seems to come out in a much better way.
So we are focused on the current business model,, yes, we are doing with corporates and wholesale and retail. So yes, these are the things. And we are focused on how can we increase the volumes despite the increase in prices. So can we increase, let’s say, can we increase the same percentage of revenue next year? These are all our questions and in bringing the correct ROE, ROCE and profitability.
Ankit Agarwal
Yeah. So sir, you think you can maintain this 35% top-line CAGR with the current capacities from both B2C and B2B enclosure. Yeah, 100%. Yeah, for the next two to three years, I’m asking.
Harit Zaveri
Yeah, there is no doubt for two to three years. Otherwise, we would have instantly gone for a capacity expansion. There is already a very-high increase in gold prices.
Ankit Agarwal
Thank you, sir. Thank you once again and congratulations for a great set of numbers.
Harit Zaveri
Sure. Thank you.
Operator
Thank you. The next question comes from the line of Amana with Equity Research Program. Please go-ahead.
Prerana Nireeksha Amanna
Yeah, hello, sir, and congratulations for a good set of numbers. So my first question is, in the first-nine months of this year, how many cages of gold have you done and what is the target for next year?
Harit Zaveri
So first-nine months we have done 1,05 KGs versus we and we are focused we are we should be doing around 1,250 to 1,300, 1,250 KGs or 1,200 to 1,300 kgs by the end of this fiscal. So that will be an increase of 20% in gold volumes.
Prerana Nireeksha Amanna
And what about the next year that is FY ’26?
Harit Zaveri
FY ’26, it depends on what is the pace of gold prices? If the gold prices is going skyrocketed, we can — you can expect that the revenue increase will be at least at around 35% or more. I mean if I’m giving a guidance of INR750 crores, I am giving a guidance of 35% to 45%. So that we will be — we will be meeting that guidance. That is what we are looking for. The demand is strong and the demand we are — we are into organized segment of doing retail or job work or wholesale. And I think the demand — the way we are operating, we will be meeting 35% to 40% of revenue guidelines.
Prerana Nireeksha Amanna
Okay, sir. And what has been the sales mix as of this Q3 as to like how much has come from your B2C, your wholesale and your sale of service?
Harit Zaveri
So volume-wise, we are 30% in retail and 70% in B2B. That is B2B. B2C is 30% and volume-wise B2C is 7% — B2B is 70% and it fluctuates internally whether it is sale of goods or whether it is job work because generally more organized player tends to go on GML, gold metal loan and they give us gold, you know as an inventory day is just one or two, but they will give us gold in advance for the finish and we hand over the finished goods whatever we have produced to them. So because of that case, sale of goods and sale of services are you know we take sale of goods like if you take B2B as one, we are 70% in volumes in that. If you build the revenue breakup, revenue breakup right now will be around 55% B2C and 45% B2B.
Prerana Nireeksha Amanna
Okay, sir. Thank you so much. Thank you.
Operator
Thank you. The next question comes from the line of Deepresh Sancheti with Manya Finance. Please go-ahead.
Deepesh Sancheti
Yeah, hi. Am I audible?
Operator
Yes, sir. Please go-ahead.
Deepesh Sancheti
Okay. What is the order book right now in terms of KGs? And how much does it come from the top-five clients? I’m talking about B2B.
Harit Zaveri
The order book right now will be around 65 weeks. That is still the month of February — February end and we would be completing that order. Retail — does not have any order book to carry. And the month of March, we are yet to see. We will be seeing — the visibility will be there post February 25th. But I see that with whatever the volume guidance guidelines that I have given, I think we will be matching through that. We will be doing a volume of around 200 to 300 KGs this quarter. Quarter one, we are on-track.
Deepesh Sancheti
203 because you said that in nine months, you’ve already completed 1,005 KGs and you expected around 1,250. So you already gave a guidance of around 250 KGs in this — for this quarter. Okay. And how much does it come from your top-five clients? Top-five clients I — so more than 50% of the 50% of the volume has come from top-five clients.
Harit Zaveri
50% is coming from the top-five lines.
Deepesh Sancheti
Okay. And have we — in both borders, I mean do we also give it to the new company, which is of Aditya Birla? Do we also have that orders from there, that company also?
Harit Zaveri
No, we are a strategic vendor partner to Titan. We are very in the category that we deal in, we are — we have — they have limited vendor partners and we are — when we are a strategic vendor partner to them, our — see, we have not declined in volumes in terms of job work. That clearly indicates the gold prices have risen by 25%, 30%. That clearly is sees that we are in the — even in volumes we are — we will be — we will be ending the year positively in terms of also. So I don’t see that you know, I will say Billa will have a learning curve, like it will be a five-year learning call that will have.
We are tightened. And apart from — apart from, there are major players whom we cater Malbar is there, Joy, Alubas is there. So there are ample of players. Is there. So we are — we are with them and are looking-forward for a better partnership with all the corporates. Plus our retail store is also doing pretty well in terms of PAT margins, in terms of contribution to the overall bottom line. I suppose the cost that we are having an advantage as a back-end player is playing a very crucial role when it comes to contributing the margins in retail. So overall, yes, that is why we are able to maintain margins and the coming quarter will be — I think will be — so far, it is good. Let us see, around INR35 crores, INR36 crores should be the figures.
Deepesh Sancheti
35 crores in terms of what?
Harit Zaveri
Hello. Yes, in terms of overall PAT figures.
Deepesh Sancheti
Overall PAT figures, that’s for the entire year, right?
Harit Zaveri
Yeah, entire year.
Deepesh Sancheti
Entire. Yeah, yeah. No, I was trying to say that since we are already a preferred supplier with Titan, we are already preferred supply with Malabar and other big names and other big corporates. You know, why not also incorporate a new and a more aggressive client like India. I mean, which is already — I mean a lot of other B2B players that Google listed also, they are also mentioning that they are going aggressively for India because they are pretty aggressive. So why is our company not looking at that kind of situation?
Harit Zaveri
So see when you are a wholesale player, you and you are a strategic vendor partner to Titan, you know, then they are promising us of very good volumes. We are into occasion category where designs are sensitive and we are already getting good volumes from this all players. So right now, we are not looking-forward for Indriya or Aditya Group. In future, let’s say, in the coming two years, we don’t know what could be the case. But as of now, we are fairly well-placed in the category and in the clients that we are in. We are already expanding clients, we are expanding independent retailers.
We are expanding corporate players. We are penetrating corporate players. I think so-far, the strategy has worked for us. Just let’s say, if I’m doing India or I’m doing will be a direct competition to most of our clients. And if we are having the confidence, they have already got the learning curve, it is better to right now penetrate the existing client. And it’s enough capacity that we have. We are just a ton player, right? If you actually see the headroom is very-high in any in any of the segment that we are in, be it — be it retail space or be it wholesale space, the headrooms are very-high. So company has got a long way to go. It doesn’t matter that if we have in — like in India in-market capital of he may be having, let’s say, whatever store plans that has. I think a similar kind of expansion is already there in Titan and, Joy put together, not even put together individually also.
Deepesh Sancheti
I know you mentioned that you have a target of more than five tonnes going ahead. So I mean, is it?
Harit Zaveri
Yeah. Yeah, we are you true, but at that time the gold figures were different. We are still — if we have increased the volume this year also by 20%. The company has — see, I have also told that I have raised INR90 crores or INR100 crores as, let’s say, equity, net INR90 crores of what was available to us in our hand. So company was at that point of time, let’s say INR100 crores of equity, we have added INR100 crores of equity. Again, INR100 crores of debt was there. We will be planning to raise debt in this year. So overall this year the profitability is INR35 crores. Last year it was INR22 crores. So INR22 to 35 cro 35 crore INR44, INR45 crore, that is what we are planning for next year. So we are in sync with the numbers, but yes, volume number fluctuates because of gold price escalation. And you know, to do five tons like we can expand, but then we need working capital, excessive working capital for that right?
Deepesh Sancheti
No, what I’m trying to say is that your B2B, where you said that the inventory turnover is almost one day only where most of your clients give you advanced gold. This is what you mentioned just to the previous caller. Just wanted to understand what is the capacity in terms of that angle because these — I’m sure that these are the companies which are like the Titans or the Malabar as you mentioned. So when these are giving you advanced gold and you’re doing a faster turnover, then I mean, what is the capacity? How much can we — how much capacity utilization have we done and how much is a leg room?
Harit Zaveri
So I’ll continue on this. One must understand, just I just want to clear the business model again. When in many corporates, when they have GML, they give an inventory holding days of, let’s say, 10 days. Let’s say, our manufacturing time is 45 days. So the inventory has been deployed by us almost at the stage of near about semi-finished goods to finished goods. They give — they replenish their gold and-or they provide their gold and we give them the finished — we deliver them the finished goods via job work mill. That is why if you see the inventory turns in Army would be lower as compared to other peers.
But in actual, if you compare the volume data, we do a volume of 1,200G to 1,300 KGs versus the inventory of, let’s say, 300 to 350 KGs, that means the four tons are already happening, but in the books, because the job top-line is booked at just the labor’s value, we are exactly not catching the inventory days. Now coming again back to your question, inventory holding days that are required, let’s say — let’s say for an example corporate A gives me a 10 kg order of the finished goods that I already have. That means he will give me of Goldbar as GML and we will build him via jumper crude, let’s say if it is INR100 per gram, for an example, 100 kg will be, let’s say, we are looking INR1 crore of revenue and we are giving them 10 kg, that is INR80 crores of goods or INR8 crores of goods. So no this is the cycle that we follow and in which inventory holding — inventory days of ours will be much higher and not just one day. Their inventory holding days will be one day.
Deepesh Sancheti
Okay, okay. So just to understand, from the design being passed till the actual jury being made, what is the time — so what is the inventory, which inventory time which happens? Actually, 45 days is what you mentioned or is it less.
Harit Zaveri
45 days will be the timelines?
Deepesh Sancheti
30 days to 45 days. Understood. Understood. Now in this quarter, have we booked any inventory gain because we have a inventory of about 400 cages. Have we booked any inventory gain because of the price hike — price hike in gold?
Harit Zaveri
So whatever we sell, we buy, it is a natural hedge that we do and we follow-on the fixed — the fixed-cost method when the FG is created. Other than that, we follow moving average price method whenever it is there from raw-material to semi-finished goods. So during the business cycle, yes, yes, there would be inventory gain and as inventory losses per transaction or per things. But overall, yes, the whole — if you look at the whole business, 50% business comes from job work that is replenishment of metal from metal. So again, that is also completely hedged. And whatever we sell we buy, so the hedging is always clear. Whatever gains that we have booked from the rise of gold prices, I think that will be yet to determine, but there will be a gain, right? Because if we are not booking that gain, then we should be actually getting the gold medal loan at, let’s say, 2% or 3%, whatever. And we are paying the CC at around 9%, 10%. So 6% is what we are spending on CC, if we are not booking the gold gain.
Deepesh Sancheti
Right. So we don’t follow method, right?
Harit Zaveri
No, no, we are not following any method. We are following from raw-material to semi-finished goods, it’s moving average price. Whenever that goods are getting into finished goods, it will be at a fixed-cost at the price will be freezed.
Deepesh Sancheti
Okay. And what is the debt right now situation? And how much are you planning to increase it?
Harit Zaveri
So the debt right now is approximately INR100 crores of short-term loan is there and we have just paid INR18 crores towards the long-term loan that we have for taking the further working capital loan from the same collateral.
Deepesh Sancheti
Okay. And how much are we expecting working capital loan increase? 100 crores are expecting.
Harit Zaveri
INR50 crores to INR70 crores minimum to increase from the working — from the existing collateral that we have taken out from the long-term — in which long-term loan was.
Deepesh Sancheti
Okay. And out-of-the INR80 crores, which we are net utilized up till now until December. How much of the stock addition have we done in this?
Harit Zaveri
I’m sorry, can you come back again?
Deepesh Sancheti
Out-of-the INR80 crores, INR100 crores, which we — is what we raised from IPO, INR10 crores was your expenses, INR8 crores is I think of what you already have right now in the banks and what INR80 crores which we utilize, how much of it went into inventory increase?
Harit Zaveri
Fully — fully fully.
Deepesh Sancheti
At what average price is INR50,000 to INR55,000?
Harit Zaveri
No, it was around — the average price would have been different because till the time we got the funds, it was already January and March and all it was must be 7,000, something around 72,000, 70,000 to 74,000 that rates were. And it was used as and when it was necessary.
Deepesh Sancheti
. 70,000 to 72,000, that is what we have increased.
Harit Zaveri
5,000 to 75,000 because it was used as and when it was necessary. So it was fully utilized after the quarter — quarter two.
Deepesh Sancheti
Okay. And if I can just ask one more question that how much was in terms of KGs, how much was this quarter in terms of sale and how much was the job work? Because you said that the revenue mix was around 50-50. So is that — can I assume that for 230 KGs was the sale and 230 KGs was job work?
Harit Zaveri
Okay. So this year in this quarter three 461 KG was the total gold that we had sold-in that 224 was 224 was.
Deepesh Sancheti
And going ahead also, we expect similar lines 50-50 only is what we are looking at, right?
Harit Zaveri
Yeah. Going-forward also, we will be looking at 50-50 only revenue correct. It will be minor fluctuation of plus and minus 5% that will always be there obviously. 5% is okay.
Deepesh Sancheti
Yes. No, because I really actually really wanted because you’re looking at ROE. Right now your ROE is around 14% to 15% and you’re looking to get an ROE about 20% to 25%. Now I was thinking that if you go-ahead with your job work, which will actually increase your profitability and not increase your sales to that because it doesn’t hit the sales figure. It increases your margins, right? So that will actually increase your ROE. So I just wanted to understand what is in your mind in terms of increasing the ROE from 14% to 25%.
Harit Zaveri
Correct. So when you talk about 14%, you are checking the last year fiscal data in which the IPO funds were… Yes, yes. So last to last year, if you check my ROE was in-line, it was around 20% to 25%.
Deepesh Sancheti
So what is the ROE for these nine months?
Harit Zaveri
I don’t have the figures in-hand, but let’s say if my — if the PAT is around INR35 crore INR36 crores and if you divide it by, let’s say, 0.2, I think another — if you just measure the ROA with that basis, I think.
Deepesh Sancheti
We generally do EPS divid — I mean, for me the calculation is EPS divided by book-value. That is what we should.
Harit Zaveri
Yeah, EPS divided that I think the earning per share will be we’ll have to calculate that and will c you know, I think EPS divided by that.
Deepesh Sancheti
That’s okay. I mean, what you have already 25%, we are really happy with that. But firstly, I want to congratulate you. Great set of numbers and all the very best as your new role for CFO. And are you looking to carry-forward this role of CFO or you are looking to get a new CFO sometime in future?
Harit Zaveri
So we have already created a position for internal financial Controller and the role of the role of CFO for me would be on the temporary basis. Eventually it will be led by a professional. But yes, right now, if for an interim period of time, I would be handling the role and yes, but ultimately the accounts and financing will be headed by an internal financial controller, which will be appointed in the — in two to three months. We already finalized the candidate.
Deepesh Sancheti
Thank you, sir.
Operator
MR. Dipesh, may we request that you return to the question queue for questions as there are several participants waiting. Thank you, sir. The next question comes from the line of Sahil with Strokes Capital. Please go-ahead.
Sahil Patani
Hi, am I audible?
Harit Zaveri
Yes, you’re audible.
Sahil Patani
Hi, hi. Congratulations on a great set of numbers. Been invested since the IPO, so really good to see the growth. Most of my questions be asked by.
Operator
Sorry to interrupt you. Sir, may I request you to use your handset, sir, your audio is slightly muffled now, sir.
Sahil Patani
Sure, sure. So most of the questions that I wanted to ask were already covered by the previous participants or nothing really to add. Just wanted to know that the growth momentum that you saw in the previous quarter and since you’re already halfway down this quarter as well, are you seeing that momentum to continue or what sort of trajectory are you seeing since you’re already in the middle of February?
Harit Zaveri
So whatever the fresh capital that was deployed has resulted into the set of results that we have — we have declared. We are, I think 35 crore INR36 crores is what we are projecting this year and INR44 crores to INR45 crores for next year. I think the growth trajectory will continue. We will be continuing, let’s say, 35% to 45%, 35% to 40% of CAGR in terms of revenue and the bottom-line this year is INR35 crore to INR36 crores, it will again continue by around 30% or so. 25% to 30% as so, yes.
Sahil Patani
Okay, got it. Got it. And were there in this previous quarter, were there any kind of client additions or major client contracts that happened as such or nothing like that, nothing — nothing material for you to announce.
Harit Zaveri
So see, there is already a growth and expansion plan for corporates when once we are a B2B organized player, we are — you know their expansion plan will derive us — derive automatically into our hike in volumes. So I think that goes hand-in-hand as we are a back-end back-end of the whole — it’s a B2B player in that case. And as far as retail is there, we have increased the space from, let’s say, 3,000 square feet has already been increased. So next year, you’ll be again seeing the retail revenue growth to go up by 40% to 45%. So that is for this — that is what will be coming for the next fiscal.
Sahil Patani
Got it, got it. Okay. That’s all I had. Congratulations once again on a great set of numbers and all the best for the future. Thank you.
Operator
Thank you. [Operator Instructions] The next question comes from the line of Ankit Agrawal with Value Cap Investments. Please go-ahead.
Ankit Agarwal
Yes, sir. Thanks for the follow-up question, sir. So sir, I wanted to ask the nature of your job works business. So do you book the revenues that come from the job work business? Do you book it in the top-line or is it directly accumulated in the bottom-line hello.
Operator
[Operator Instructions] MR. Ankit, you can go-ahead with your question, please. Sorry about that.
Ankit Agarwal
Yeah. Sir, I wanted to ask a question regarding a job work. So how do we account the revenues in that — does all of the revenues for to the bottom-line or we added to the top-line as well?
Harit Zaveri
So correct. So stones and other charges are added to the top-line, the basis are added to the bottom-line in the closing inventory.
Ankit Agarwal
Okay. Thank you.
Operator
Thank you. The next question comes from the line of Abhishek from AB Capital. Please go-ahead.
Unidentified Participant
Hello.
Harit Zaveri
Yes, Abhishek.
Unidentified Participant
Yeah. Just wanted to ask one more thing. We — like what is the moat in our B2B business like do we specialize in antique jewelry or do we make all types of gold ornaments?
Harit Zaveri
We specialize into occasion wear mainly into antique jewelry or we do pulky jewelry as well in our product mix. Okay. So we do only that only that I do it. We do only that type, not the other types we don’t do. We just we do antique oxidized and antique jewelry. We are specialized into it. As a part of our product mix, we also do coal key jewelry, which constitutes around 5% of the total sales.
Unidentified Participant
Okay, okay. Thank you.
Operator
Thank you hi the next question comes from the line of Sahil Patani with Strokes Capital. Please go-ahead.
Sahil Patani
Hi, thanks again. Sir, I wanted to know that this role of CFO that you’ve taken over, obviously, it’s in print. So is there any timeline that you’re looking for three months, six months when you’ll be hiring like y and other professionals? The reason I ask is that obviously your role in the company is more about product development, business development and we don’t want that to really impact that part of the business. So just trying to understand what sort of timelines are you looking at to hire this CFO now?
Harit Zaveri
Yes. So the timelines to hire a CFO, see, once the internal financial control position has been there, you know, we will be looking at, let’s say, year or year and a half and then we’ll be promoting that from that position to a CFO position.
Sahil Patani
Okay. So for the next 12 to 18 months, you will be the interim CFO.
Harit Zaveri
Correct.
Sahil Patani
Okay. But do you foresee you’re — that kind of role impacting your role within like what you do today, which is the business development and product development, do you think that it could impact or not really you don’t foresee that.
Harit Zaveri
So IFC will already be there to look after the — to look after the business. My role would be more on the — we both will be there on the same pace to connect on the strategic level. And you know, I have already been taking reports of CFO. And to take the designation, yes, there will be additional of responsibilities, but also a dilution of responsibilities. IFC role is a new role, which will be taken-up. And in the course of time, we will also want to hand over more of the responsibilities and once he is there with us for a decent period of time, we will be promoting him to the role of CFO.
Sahil Patani
Got it. Got it. Cool. Thanks for that, sir. That’s all I had.
Operator
Thank you. The next question comes from the line of Dipesh with Manya Finance. Please go-ahead.
Deepesh Sancheti
Hi, am I audible?
Harit Zaveri
Yes, sir. Please go-ahead.
Deepesh Sancheti
Okay. Hi, just a few questions regarding what you said. You said that the debt was INR100 crores short-term and you have already paid-off long-term INR18 crores. So is there any long-term debt which is standing on your books?
Harit Zaveri
Yeah. As of now, there is no long-term debt standing on your books.
Deepesh Sancheti
Okay. And we are planning to again increase the working capital by around INR50 crore to INR70 crores.
Harit Zaveri
Yes, correct, right?
Deepesh Sancheti
Now we are not planning — we are not going for a gold medal loan. We are only getting working capital because I don’t know what is it, what is the cost of your debt right now?
Harit Zaveri
Cost of debt will be around 9% to 10%.
Deepesh Sancheti
9% to 10%. So why aren’t we going for a gold metal loan, which will be a cheaper option?
Harit Zaveri
Gold metal loan, see, right now the business or the inventory levels are already too small. And once we the it is the moving average price is very comfortable to absorb any of the — any of the ups and downs or volatility in the gold. Let’s say if the gold prices goes less than the book-value of gold, at that time, we are still hedging in that case. But as far as you know, and the business model right now we are in, 50% of the 50% is job work.
So we are getting gold to gold. As of now, yes, we are not into the gold metal loan business as we are not a prominent retailer. In retail model, it is still much more expectable, but wholesale also deals with betters. So to it again in the MCX and all, it is better that whatever gold that we have sold, we just buy it and it’s a simple routine model for us. It is working well with us. Other than that, what will happen if we are going into GML, once there is a fluctuation of, let’s say, let’s say right now the goal has got from 75,000 to 87,000, we have to support it with an additional limit to banks with additional margins. Okay. Additional margins to banks and that will create a very different kind of a scenario because we will have to dilute stock and then we have to convert that stock into currency for just providing the margins to banks. That is not advisable at our the interest that we have in the company as of now, right?
Deepesh Sancheti
And you also don’t get the benefit of increase in gold prices, right? Is this — is that a fine?
Harit Zaveri
I think that is also — see increase in gold prices should happen beyond 6%, right, to just to actually if you say. But the more — the higher problem is, let’s say if the gold prices tomorrow gets to INR1 lakh, okay. And if you are in gold metal loan, then if you are taking IN 100 kilo loan at right now INR87 crores, if it goes to — INR1 lakh, we have to provide an additional limit of INR13 crores just to sustain the volume of gold that we have. Right. That is — that is — that is a challenge.
Deepesh Sancheti
So as investors, we would be very happy if it goes to INR1 lakh and if RBJ has more than 500 in with its inventory, you know our book-value will increase but coming back to the working capital, the entire working capital will be requi used in terms of billion only. We we’ll be taking a billion bullion, where-is this working capital being used?
Harit Zaveri
From raw-material or we are doing retail, so purchase of credit goods also.
Deepesh Sancheti
Okay. So — and okay, fine. How big is your manufacturing space and how big is your retail space in terms of square feet.
Harit Zaveri
Manufacturing space is around 24,000 square feet. The retail space is of around 11,000 square feet, 10,000 square feet is pure retail plus 3,000 square feet is the admin work. So overall, again, 4,000 square feet is the additional that we have taken for admin work. So the pure manufacturing space of 24,000 square.
Deepesh Sancheti
24,000 square feet. And right now we are comfortable that in this 24,000 square feet, be able to go to 2,000 kgs, right?
Harit Zaveri
Correct.
Deepesh Sancheti
Okay. Okay. And what is the book-value as of nine months because we had that conversation blocked as well.
Harit Zaveri
Yes. So I mean, when you consider the book-value, you’re talking about the resilience surplus plus equity, right? Yes, that would be around INR235 crores.
Deepesh Sancheti
INR235 crores divided by — okay, INR235 crores divide by your equity, so INR4 crores. So around 658 or 59 right I am sorry 50 because your equity is around number of shares is INR4 crores.
Harit Zaveri
INR4 crores. Right.
Deepesh Sancheti
And you said that your — I mean reserve and surplus everything is around INR234 crores.
Harit Zaveri
Yes, INR23 crores INR235 crores, yes.
Deepesh Sancheti
INR235 crores. If that includes your inventory, that includes everything else, right?
Harit Zaveri
Everything.
Deepesh Sancheti
Everything. Perfect, perfect.
Harit Zaveri
And this going-forward when we increase our debt to let’s say sort of to the ratio of one is to one, which was before the IPO, it was — the equity was INR100 crore and the debt was INR100 crores. And we could have got an ROE of 20% to 25%. But similarly like there is a — there is an instant push of our IPO into equity. So from INR100 crores, this has gone to, let’s say, INR200 crores or INR235 crores this fiscal year. Once we are increasing the debt proportion to, let’s say, one is to one, let’s say additional of INR70 crores this year, plus, let’s say next year there is some fueling of debt happening that will you know eventually the profit has to go from 35 crores to INR45 and then eventually INR55 crore or INR60 crores.
So in that space, in the coming two years, the addition of debt and whatever is the earnings that we are going inculcating from the debt, that will be fluing the return-on-equity part. So that is how the return-on-equity will be generated at 20% to 25%. As of now, yes, the return-on-equity for the next financial year will also not be at that level. But after in the long-run coming two — after the two years, yes, that will be the case that if you’re able to generate debt at one is to one, the return on will be maintained at 20% to 25%.
Deepesh Sancheti
I have to give it to you that you have a good hold-on your numbers. I mean, because your didn’t show that your — that’s why I mean it was mentioned something. So I mean it’s really good that you should be — I mean you should be the CFO, you should really remain the CFO. That’s really good. Congratulations again. Great talking to you, and hope to see you in one of the IIJS. Sure, sure. That can happen anytime. We can 100% meet at IIJS you always there in the IIJS?
Harit Zaveri
Yes, I’m always there at IIJ.
Deepesh Sancheti
Perfect, perfect. I’ll see you at IIJ.
Operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Harit Zaveri
Thank you. So has successfully completed its quarter three and numbers are in-line with the expectations that we had. Going-forward also, I think the plan is to sustain growth on fundamental levels and there will be expansion in retail as well as we are already having a very strong quantum of capacity, which is already there in wholesale and job work. The next year will also be continued with the same contribution and the volume contribution you know we have got a warm response of investors today making sure that whatever we have told is promised, it is an ethical responsibility on our side that we will be — we will be working hard and towards the numbers that we have projected, INR44 crores INR45 crores by next year, yes, there will be a raise of debt. Only by the raise of debt, there will be a return-on-equity that will be generated at 20% 25%. We’ll be maintain that. There are times when there are good questions that comes in and you know, but it’s always nice, you know actually we are not on the two sides of table, the table is just one and we are all investors to it and I hope that my efforts gets into the right quality of results and we all enjoy the fruits of it. Thank you.
Operator
[Operator Closing Remarks]