RENAISSANCE GLOBAL LTD (NSE: RGL) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Unidentified Speaker
Darshil Shah — Managing Director
Sumit Niranjan Shah — Global Chief Executive Officer
Snehkumar Purohit
Analysts:
Unidentified Participant
Kamal Chaudhary — Analyst
Diwakar Rana — Analyst
Shrenik Shah — Analyst
Shrikant Parakh — Analyst
Hiten Boricha — Analyst
Naitik Mutha — Analyst
Ashish Shah — Analyst
Presentation:
operator
SA. Sam. SA. Foreign. Ladies and gentlemen, good day and welcome to the Renaissance Global Q4FY25 earnings conference call. 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 then zero on your touchstone phone. I now hand the conference over to Mr. Snehakumar Pirohat from Renaissance Global. Thank you. And over to you sir.
Snehkumar Purohit
Good afternoon everyone and thank you for joining us on Renaissance Global Q4 and FY25 earnings conference call. We have with us today Mr. Sumit Shah, Chairman and Global CEO and Mr. Darshul Shah, Managing Director of the company. We would like to begin the call with a brief opening remark from the management following with which we will have the forum open for an interactive Q and A session. Before we start, I would like to point out that some statements made in today’s call may be forward looking in nature and a disclaimer to this included in the results presentation shared with you earlier.
I would now like to invite Mr. Sumit Shah to make his opening remarks.
Sumit Niranjan Shah — Global Chief Executive Officer
Thank you. Sneh Good afternoon everyone. On behalf of Renaissance Global, I extend a warm welcome and thank you all for joining us on our earnings conference call for the year ended 31st March 2025. I will begin with a strategic overview of our operational and business performance during the year following which Darshul will walk you through the financial highlights in detail. We are pleased to report a disciplined financial performance in FY25 driven by steady performance in our key business segments. Our revenue from continuing operations grew by 6.7% year over year to 1,988 crores in FY25 compared to 1863 crores in FY24.
On the profitability front, adjusted EBITDA margin for the year improved to 9.5% from 8.3% in FY24. We took some bold measures during FY25 to position the business for long term profitable growth. To grow our branded business, we made a strategic investment in Jean Doucet Jewelry llc, a renowned US based jewelry designer known for bespoke lab grown diamonds and leadership in bridal jewelry. Jean Doucet operates through its flagship store in Hollywood supported by a strong digital presence. Leveraging our existing B2B distribution network and retail partnerships, we are well positioned to drive the brand’s next phase of growth.
To enhance our operational efficiency, we launched a cost optimization program towards the end of Q2 this initiative, projected to deliver annual savings of 40 to 50 crores were a major initiative during the company to improve operating margins going forward for the company. A major strategic decision under this program was a rationalization of excess capacity through closure of our Bhavnagar facility. The closure of the Bhavnagar facility will result in an annual savings of 20 crores in itself. During the quarter, we incurred an expense of 3 crores related to the acquisition of Jean Doucet and some strategic cost rationalizations related to the acquisitions.
During this quarter we also bolstered our overall liquidity by raising 163crores through a preferential issue. During the year, our financial position remains strong. As of 31st March 2025, net debt declined to 250 crores down from 319 crores a year earlier. The net debt to Equity stood at 0.18 compared to 0.28 one year ago, reflecting our disciplined approach to deleveraging. Our cash and bank balances along with current investments stood at a healthy 265 crores. We anticipate further debt reduction during the course of the current year. During this year we plan to increase the physical footprint of Jean Doucet as it’s an omnichannel business that has tremendous potential going forward by opening a flagship location in New York City in Q3 of the current financial year.
During the current year we also launched Wonder Fine Jewelry, our new umbrella brand encompassing Star Wars, Disney Jewels and Marvel. We aim to expand this platform by integrating all of our IP LED brands onto one platform, thereby optimizing efficiency and driving deeper engagement with our global fan communities. Looking ahead, we we remain cautiously optimistic. We expect FY26 to begin on a soft note due to the economic uncertainty created by US Trade tariffs. However, our strategic foundation is very strong with our deep product design expertise, global distribution network and digitally integrated brand portfolio. We are confident in our ability to weather near term volatility and capture long term value.
Our focus remains clear, scaling our high margin direct to consumer segment, strengthening OWN brands and expanding our global footprint. With that, I hand over the call to Darshal who will provide you a detailed breakdown of our financial performance.
Darshil Shah — Managing Director
Thank you Sumit. Good day everyone. We have reported a steady performance during the quarter driven by robust performance in our key segments. In Q4 of FY25, our revenue from continuing operations grew by 7% to close at 514 crores compared to 480 crores during Q4 of FY24 of the 514 crore 55 crores was contributed by owned brands which was up 14% year on year compared to 48 crores last year. 60 crores of this was from our US brands delivering a robust growth of 18% year on year. Our licensed brand segment delivered a growth of 29% reaching 84 crores in revenues during the quarter.
This growth was driven by a steady and healthy flow of orders from both our retail partners and direct to consumer channels with ebitda margins of 13.4%. Customer brands contributed to the balanced 375 crores in revenue for the quarter with an ebitda margin of 8.2%. Adjusted PAT for Q4FY25 stood at 23 crores marking a 7.4% year on year growth compared to 21 crores in Q4FY24 with margins expanding to 4.4% from 3.9% in Q4FY24. For FY25, our revenues from continuing operations grew from 1863 crores to 1988 crores which is a 6.7% growth. EBITDA adjusted for discounted operations one time restructuring costs and acquisition related costs grew 24% from 154 crores last year to 191 crores.
For FY25, adjusted EBITDA margins stood at 9.6% up from 8.3% for FY24 reflecting enhanced operational efficiencies and disciplined cost management. For FY25, adjusted PAT increased 21.5% to 89 crores up from 74 crores in the same period last year with margins improving from 4.3% to 4.3% from 3.5%. Lastly, regarding our balance sheet, we remain focused on strengthening our financial position. Our net debt to equity ratio improved to 0.18 in March 25 compared to 0.28 for the same period last year. Our total net Debt stands at 251 crores for the period down from 319 crores in FY24 demonstrating our focus on financial discipline.
Furthermore, we anticipate a further reduction in gross debt by 31 March 2026. Our cash and bank balances along with current investments remain strong at 265 crores marking an increase of 75 crores from 3-31-2024. In conclusion, we are encouraged by our resilient performance. Despite a challenging and evolving macro environment backed by a strong balance sheet, continued operational discipline and focused strategic execution, we believe we are well positioned to drive sustained long term growth.
operator
Mr. Darshan, remarks. We are unable to hear you sir.
Darshil Shah — Managing Director
Yeah. So that is all on the financial numbers. Back to Sumit for closing remarks.
Sumit Niranjan Shah — Global Chief Executive Officer
Yep. I think we can start the Q and A session.
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 star and one on the touchtone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use answers 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 Kamal Chaudhary and individual investor. Please go ahead.
Kamal Chaudhary
And the management is still committed to achieving a net debt free status.
operator
We are sorry but we are unable to hear you sir.
Kamal Chaudhary
Hello ma’ am.
operator
Yes please.
Kamal Chaudhary
Hello. Could you provide an estimate of the interest outflow expected in financial or 202526 and is the management is still committed to achieving a net debt free status by the end of the next fiscal year?
Sumit Niranjan Shah
I think as of right now I don’t have an accurate number on the exact interest cost during the year. Costs would be fully lower than what they were last year because you, you know we’ve. We’ve reduced debt numbers. Interest costs are a little bit lower. We are, we are committed to sort of working towards zero net debt. You know whether we net debt by 20, FY26 or 27 can’t really commit on that. But we are you know clearly working towards that goal of getting to a net debt zero status and business. So you know the focus is not singular on balance sheet but the focus is on increasing profitability, gaining a prudent balance sheet which de risks the balance sheet.
operator
Thank you. Participants who wishes to ask a question may press star and 1. The next question is from the line of Devakar Rana from Prudent Equity. Please go ahead.
Diwakar Rana
Hello. Good afternoon sir. So my question, my first question is on the tariff front. So if I’m not wrong the US puts around 2% tariff on our diamonds and gold product. So let’s assume, you know they come out with the higher number maybe 15, 20. So how are we positioned to cater to our key market USA post the tyranny position?
Sumit Niranjan Shah
Yeah. So just to sort of clarify, the US has imposed an additional 10% tariff on jewelry from all countries except China. China is obviously higher. So as of right now there is an additional 10% tariff which has been, which has been applied. We are working with all of our customers to pass on the tariffs to them. You know since a Lot of our customers are domestic customers. Contractually there was a period of time where we were unable to pass on the increased tariffs for a two month period. As of right now most customers have agreed to pay the tariffs and we plan to pass on the tariff increase to them.
However, in the short run for a 45 to a 60 day period, there is an impact on the PNL due to the tariffs that were, that were imposed as it took us about two months to negotiate and agree with customers to pass on the tariffs.
Diwakar Rana
Okay, so what was the impact in the revenue terms for the two months that you said?
Sumit Niranjan Shah
So that there would not be, there would not be a meaningful impact impact to revenue, but there would be, there would be an impact for the 60 day period on, on the bottom line because there there were tariffs paid which were not realized from the customers.
Diwakar Rana
So I think we will have one more option. Let’s say if the US decided to put around 1520 Reciprocal Drive on India. So we also have one subsidiary in uae. So can we export our good from there? Uae, not from India. So I think from that we can bypass the tariff if that happens.
Sumit Niranjan Shah
So I think there are obviously rules around country of origin and we do have a backup plan in terms of manufacturing goods in the uae. So there are rules around what classifies as country of origin. And you know, if the reciprocal tariffs do come into effect, we will activate that option at a certain point. As of right now, it’s a backup plan depending on how things play out.
Diwakar Rana
Okay. Okay. And so one question on the restructuring expense. So in the last concourse you alluded that we have done done with all the restructuring expense. But this quarter also we have done around three and a half crore expense. So by when you think this expense will be completely eliminated.
Sumit Niranjan Shah
So I think that you know this quarter the expense that was incurred was related to the acquisition. I think that these were basically cost related to legal expenses as well as severance expenses related to the acquisition of Jean Doucet. These expenses were not related to restructuring expenses or cost control cost reduction expenses. You know we post our conference call last year we had decided to reduce the number of employees in our Bhavnagar unit. And subsequent to that we have decided to shut down the Bhavnagar manufacturing unit completely. So there will be one time severance cost related to shutdown of Bhavnagar.
That will come in Q1 of 26. And I think that you know, as far as you know, as far as we can tell now we are done with all of the restructuring expenses and we don’t plan to have any more further acquisitions. So I think that Q4 and Q1 will be the last quarter where there will be some restructuring exercises. I think the shutdown of the Bhavnagar unit decision happened post the last call because of which there will be one more quarter of shutdown expenses. And I think there will be far more synergies that come out of now manufacturing in a single location in Mumbai as compared to running multiple locations.
Darshil Shah
So. So you know, doing the cost benefit analysis we decided that you know, even though there is a short term expense related to doing this, it was worthwhile to make that decision.
Diwakar Rana
Just one clarification, sir. So you said some expense will come in Q1 also or just.
Darshil Shah
Yes, that’s right.
Sumit Niranjan Shah
In Q1 of 26, on April 15th we shut down our Bhavnagar facility entirely. So there will be some expense in Q1 of 26 as well.
Diwakar Rana
Okay, so how much revenue have we lost from all these restructuring restructuring activities that we have done? Total revenue.
Sumit Niranjan Shah
No, we, we wouldn’t, we don’t anticipate reduction in, in revenue. So I think that structurally as we move to a more higher value added product because of direct to consumer, higher average order value and shift towards lab grown diamonds, the fundamental need for our company in terms of production capacity has gone down because our average order value has increased meaningfully. So we don’t anticipate any reduction in revenue. It is more a reduction in costs that we are seeing and we don’t anticipate any loss of revenue from any of these activities.
Diwakar Rana
Okay. So I believe the total cost saving will be around 65 crore. Post this down discontinuation. Right. Earlier we were adding around 40 to 50. Now this will save around 15 this facility. So around 65. Right.
Sumit Niranjan Shah
I would say that 50 to 60 crores is a good estimate of cost savings that we would incur.
Diwakar Rana
Okay, so one last question, sir. We have close to Hindustria investment and same cash in our balance sheet. So do you have any plans for growth to grow the top line? We know, you know, post the restructuring we will be growing our bottom line. But any plans for top line growth you have?
Sumit Niranjan Shah
Yeah, yeah, yeah. So I think that you know, clearly you know, within our three segments, you know we, we anticipate that, you know we will grow our top line in our direct to consumer segment by 40 to 50% in the current year. Because you know, as you know we completed the acquisition of, of Jean Doucet only at the end of last quarter. So the, you know the numbers are the top line numbers are not not in it. So in addition to any organic growth, so our direct to consumer business is expected to grow significantly in this quarter.
And the same is the case with the licensed brands. The customer brand segment I think would be kind of low growth, but we fully anticipate that we would grow our top line in FY26 as well.
Diwakar Rana
So sir, have you ever discussed giving out a dividend or doing a buyback within the board?
Sumit Niranjan Shah
Yes, I think that currently the boards discussed getting to zero net debt in the next couple of years post which we could do a buyback or a dividend. So I think that the objective of getting to a zero net debt over the next 12 to 24 months is something that we’re focused on today post which capital return to shareholders will definitely become a priority.
Diwakar Rana
Okay, thank you. Thank you for answering all my questions. Thank you and good luck.
Sumit Niranjan Shah
Thank you.
operator
Thank you. Participants who wishes to ask a question may press star and 1. The next question is from the line of Sriniksha from AIPL. Please go ahead. Mr. Sriniksha, please go ahead with a question. Your line is unmuted.
Shrenik Shah
Hello Sumit and hello management of Renaissance. I have two questions. One is any extra revenue from the real estate the land building in Bhavnavar unit which has been shut down? I assume the land and building was owned by the company. I may be wrong, but you may give more clarification on that. Any extra revenue is expected. And the second question is, would you be able to give some brief idea about what are your plans in India for expanding retail sales? Thank you.
Sumit Niranjan Shah
So yeah, as we mentioned, the Bhavnagar unit has been shut down. I think there will be a process of debonding with customs and clearing all of the inventory over the next three to six months post which we will put that piece of land on the market and sell. As of right now, we don’t have a clear idea as to whether we will realize value just for the land or land and building depending on what the demand is. But clearly over the next one to two years, depending on when we find a buyer, the idea is to sell the land and the building in Bhavnagar and realize value for it.
It does belong to the company and to that effect we will pay down our bank line to that effect. In terms of retail sales in India, I think we are currently working on improving the unit economics of our India retail business, which is Iraswa. We are working towards launching a line with a celebrity in Q3 of this year. I think that when the business gets to unit level profitability and when the unit economics makes sense, we will expand. As of right now, in the current year, we anticipate that without any growth in the India retail business, our own brands should grow by 50%.
So I think we’re laser focused on growing profitably and we’re working hard to increase the customer base and the unit economics of the Erasfa business. And when we do see signs that the business is showing signs of profitability, we will be sure to grow the business. I think any expansion in retail without the unit economics being fixed will result in losses. I think one can’t hurry into retail expansion because it’s a high fixed cost business. So we want to do it thoughtfully and methodically. In the current year, however, there will be an additional store for Jean Doucet that we will open in New York.
You know the Jean Doucet store in Los Angeles does about 25 crores in sales annually. And at 25 crores in annual sales a retail store in the US makes a lot of sense. So wherever it makes sense to expand physical footprint, we will. We don’t think Iraswa is there yet. When we do get to that point, we will increase retail sales in Iraswa.
Shrenik Shah
Thank you. Thank you very much.
operator
Thank you. Participants who wishes to ask a question may press star and 1. The next question is from the line of Srikant Parak from Prudent Investments. Please go ahead.
Shrikant Parakh
Hello, Am I audible?
operator
Please go ahead.
Shrikant Parakh
Yeah, yeah yeah. First of all a very congratulations on a disciplined set of numbers despite a lot of turbulence. My question is particularly on the various as you mentioned one of the participant asked we might see some impact on the bottom line because the tariff has been not able to pass on due to 45 days to 60 days window. Can we get some sort of a guidance how much dip in the bottom line we are expecting particularly in 26.
Sumit Niranjan Shah
The approximate impact would be between for the quarter.
Shrikant Parakh
Sorry I couldn’t be able to get you 10 crores. Okay. And like for example particularly in terms of restructuring effect I think so there is some Spillover impact in Q1 F26 also and is there any synergy we can we are able to see into the bottom line of this restructuring effect in coming Q2 and Q3/ quarters of F26 and by how much roughly around.
Sumit Niranjan Shah
So I think as. As we mentioned mentioned earlier you know all of the. In the last three quarters the cost cutting exercise that we’ve undertaken should result in an annual saving of 50 to 60 crores. And you know, all of those expenses, you know, even during the course of this quarter, the, you know, the restructuring exercises will be classified as one time and you should be able to see an annual reduction of 50 to 60 crores in our expenses going forward from quarter two without any adjustments. You will see that even in quarter one soar and annual expected savings are 50 to 60 crores from the restructuring exercise.
Shrikant Parakh
Okay, and my last question would be in the terms of management visibility. A lot of restructuring and you know, different set of strategies for domestic business and different set of strategies for basically for international business. We are trying to create our brand. So any, you know, short of a one, that management looks to grow RGL as a brand visibility like in terms of next two or years or three years, we want to see our ourselves at a 5,000 crore revenue or a 4,000 crore revenue. Do we have any kind of that visibility or a vision as of now?
Sumit Niranjan Shah
So I think that, you know, our vision really is to grow in the branded segment. Our vision is that we’d like to migrate Renaissance to a company which sells its own brands and licensed brands because clearly it’s a very high quality business to be in over the next few years. Our goal would be to grow our bottom line exponentially, I think that. And create value for shareholders. We are not really focused on just the top line number because finally we feel that optimizing for free cash flow and bottom line is really what creates value. So the goal for us as management is how do we maximize long term cash flow from operations and free cash flow.
And that’s really the goal by sort of creating differentiated brands that can create value over the long term.
Shrikant Parakh
Any specific number we have in our mind, it’s not on the top line but in bottom line. Any specific set of numbers. As a vision, we want to be at this place by 2029 or 30 next five year plan.
Sumit Niranjan Shah
@ this point, you know, we are not ready to discuss that. I mean we, you know, have obviously have clear goals in mind in terms of where we want to go. And I think that through a lot of actions that we’ve taken during the last one year, I think that you’re getting sort of an indication of where we want to go and really our focus on profitability and growing the branded side of the business. I think that possibly a little bit early to give sort of a more long term goal, but we’ll try and do that sometime in the future.
Sure, sure.
Shrikant Parakh
Thank you. And one more question. I joined late a little bit, so have you given any Sort of a guidance on interest figures means definitely, I think so death has come down and we might be in a, you know, achievement of a net debt by somewhere on this year or the next years. So probably how much outgo we are looking for into interest cost this year? Because our interest.
Sumit Niranjan Shah
The number in this. Yeah, in this quarter our interest costs were actually lower by 16% year over year. And you know, we expect to, you know, possibly save, you know, save that on a, on an ongoing basis and you know, look to create further savings as well. So the guidance that I gave for 50 to 60 crores would have some component of interest savings as well.
Shrikant Parakh
So that was all from my head and good luck.
Sumit Niranjan Shah
Thank you.
operator
Thank you. The next question is from the line of hidden Borisha from Sickwell Investments. Please go ahead.
Hiten Boricha
Yeah, thank you for the opportunity, sir. So my question is on the softness wheel which you have mentioned in your opening remarks. So I just wanted to understand, are we looking for a degrowth in Q1 because of this tariff issue?
Sumit Niranjan Shah
We are not going to have a degrowth in revenue due to the tariff issues because we took a call as a company to ship all orders that we had to our customers because, you know, a lot of our contracts with our customers are domestic, where we clear the product. In the US Our subsidiary clears the product and ships it domestically. Our contracts did not have a clause for tariffs, so most of our customers took the orders in, but at prices without the tariffs. So there will be an impact to the bottom line because the tariffs were absorbed by the company for a period of 60 days.
We do not expect any degrowth in revenue because, you know, I think we still see that the consumer in the US Is resilient and we’ve not seen any impact on demand. There is, however, an impact to the bottom line due to the fact that we were not able to pass on tariffs to the customer.
Hiten Boricha
Understood, Understood. And my second question is on the Bhavnagar land you mentioned, we are looking to sell that line. So if you can quantify the value of that line, sir.
Sumit Niranjan Shah
You know, I think we’ve not got clear estimates yet because, you know, currently we’re in the process of, you know, debonding the land and then evaluating how we will sell it. You know, we’ve obviously constructed about 60,000 square feet there. So I think the value will vary widely between if we sell it as just as land to somebody who is going to demolish the building versus, you know, somebody needing the structure. So there are very wide estimates. We’re not yet ready to Disclose a number. But you know, clearly our goal would be to maximize value and use the proceeds from that to pay down debt.
Don’t have a concrete number to give you at the moment.
Hiten Boricha
Okay, okay. And so my last question is on the license brand you mentioned. You mentioned D2C will grow around 40, 50% this year. And you also gave some number in licensed brands. So I miss that if you can repeat that number.
Sumit Niranjan Shah
Yeah, so I think we expect, you know, licensed brands to grow in low double digits direct to consumer, which is our brands will grow 40 to 50% and licensed brands would be in double digits. I think the customer brand segment would be steady and probably will be mid single digits. So those are kind of the numbers that we are looking at.
Hiten Boricha
Okay. Okay, thank you.
operator
Okay, thank you. Participants who wishes to ask a question may press star and 1. The next question is from the line of Divaka Rana from Prudent Equity. Please go ahead.
Diwakar Rana
Hi sir. So just one clarification. So the impact on the bottom line will be close to 10 crusade right.
Sumit Niranjan Shah
In Q1 from the direct.
Diwakar Rana
Yes, yes, yes. Times here. Okay. And sir, two broader questions. So are we looking in some other market apart from us in Europe or China?
Sumit Niranjan Shah
So we, you know, we have, we have a division that sells to brands as well as retailers outside of the US it’s about 30% of our revenue as of right now. And you know, we continue to try to explore, you know, markets outside of the U.S. so yeah, we have a business outside of the U.S. although U.S. is 65% of our revenue, there is a business in Europe and we plan to continue to grow it. Canada, UK and Australia and continental Europe are the markets where we currently sell. And Middle east is also a small market.
Diwakar Rana
Okay, and so what will be the share of lab grown diamond in our total revenue in FY25?
Sumit Niranjan Shah
You know, I don’t have an exact number for you off the top of my head, but you know, I would say that it would be in the mid-30s if I were to guess. But you know, we can have our IR team maybe reach out to you and give you an exact breakup if you want.
Diwakar Rana
Okay. Okay. So. So do you have any plans to just expand this lab grown segment? Because you know, I don’t want to take names, but lot of our competitors in the same segment plan to grow in double digit in this lab grown. I know you have done, you know, a lot of things in this D2C segment. We have done really great. But any plan to foray and expand in this market only.
Sumit Niranjan Shah
That’S Why? I think going forward we would fully expect that lab grown will become the majority of our business over the next two years in the U.S. i think the transition to lab grown is kind of inevitable. We obviously had a natural diamond business which is now transitioning to lab grown. And you know, we sort of a lot of new introductions with all of our customers are in lab grown only. So as the sort of older SKUs transition to newer newer SKUs, we will see lab grown becoming a much bigger percentage of the business.
Diwakar Rana
Okay. And so just for a. You felt around 30 the share of lab grown. So this is 30cr or 30% of the revenue. Just want to.
Sumit Niranjan Shah
30%. 30%. 30%.
Diwakar Rana
30%.
Sumit Niranjan Shah
30%.
Diwakar Rana
Okay. Okay. Okay. Okay. That’s also. Thank you.
operator
Thank you. Participants who wishes to ask a question may press star and 1. The next question is from the line of Natic from NV Alpha Fund. Please go ahead.
Naitik Mutha
Hi sir, thanks for taking my question. So my question is on the receivable side. I see there has been a sharp uptick in receivables.
Sumit Niranjan Shah
So just wanted to understand what is.
Naitik Mutha
The reason for the same.
Sumit Niranjan Shah
So I think it’s nothing significant. I think we expect it to sort of normalize in the next quarter. I think there’s really nothing to report. It’s just I think there are some receivables from December. December is usually a good month that have sort of come in in early April and there would be kind of normalization of that the next quarter.
Naitik Mutha
Got it. So that’s it from us. I thank you.
operator
Thank you. Ladies and gentlemen. You may press Star and one to ask a question. Now the next question is from the line of Pratiba from TS Surgical Private Limited. Please go.
Unidentified Participant
Good afternoon everyone. Go ahead. Yeah. My question is from the top line. Like the, like the top line of our company is like stagnant for many years. So what is your future projections like? What do you see any substantial rise in the coming years? What are your future plans?
Sumit Niranjan Shah
I think that the top line of the company has sort of a couple of elements that one has to take into effect while we analyze. Because we had a gold business in the Middle east which was about 7 to 800 crores in top line which we acquired in 2016. You know that business we started recording as only value added.
So we changed our accounting policy because it was a plain gold business which with very high top line and you know, maybe 4 to 5% gross margins. We changed subsequently changed our accounting policy to report only the gross margin earned and then we subsequently sold the Business. So if you were to analyze this over a 45 year time frame, I think we’ve added about 700 crores in revenue as against the 700 crores that we discontinued which was not really adding to bottom line or to profitability. And in terms of growth, our focus really is on growing the revenue in licensed brands as well as our brands where we expect to make double digit margins.
So we are much more focused on quality of revenue and revenue that will deliver a high roe and roce and not just revenue that will deliver returns that are below cost of capital. So while we are focused on growth, it’s the right kind of growth with the right set of attributes and not just top line growth for the sake of top line.
Unidentified Participant
Okay, thank you so much sir. My next question is related to your like domestic brand Iraswa. Like you have open source stores in India, right? So is it is those profitable one and what are your expansion plan in India?
Sumit Niranjan Shah
So to answer your question, you know in our presentation deck we disclose profitability by division and you know the.
Business. Lost around 4 crore rupees last year. You know this obviously is attributable to scale and corporate overhead related to running a new brand that is not amortized over large variety of stores focused on fixing the stores that we currently operate. And when we see signs that the unit level economics are favorable, we will expand. We will not expand and we see that.
Unidentified Participant
Okay, thank you. Thank you so much sir.
operator
Thank you. Thank you. Participants who wishes to ask a question may press star and 1. Ladies and gentlemen, to ask a question Please press star. Star and 1. The next question is from the line of Ashish Shah from Business Match. Please go ahead.
Ashish Shah
Hey. Hi Sumit, thank you for taking my question. One slightly long term question with this whole tariff thing, do you see any long term threats to our competitiveness of our business?
Sumit Niranjan Shah
Yes, I think that you know, if there are differential tariffs, you know between, between India and China, we see a very big opportunity to actually not just for us, for other companies in India to take market share. I would say that while early in the game but I think that we’ve in the last two months added four or five new customers which could be very meaningful over time. And I think a lot of these opportunities have happened because of the tariffs and because of brands and retailers wanting to move supply chain away from China. So I think as of right now India seems to be in at least a neutral position as compared to any other country and slightly favorable compared to the other jewelry manufacturing destinations.
It’s primarily Thailand India, China and Vietnam. So, you know, we see differential tariffs with China as possibly a very large opportunity where we could gain market share and grow our top line long term.
Ashish Shah
Okay, that’s very helpful. Sumit, on the John Bussart acquisition, is that a brand that you would look to cross sell to other retailers as well or it will always remain like our own branding?
Sumit Niranjan Shah
I think as of, as of right now, you know, we are, we are going to focus on selling Jaun to say direct to consumer. I think at some point there will be cross selling to retailers. We are not at that point yet. I think we are right now looking at opening a store in, in New York in Q3 of the current year. Based on the performance of the Los Angeles store, expect that to be significantly accretive to the brand. I think we see a lot of opportunity to grow the business direct to consumer because there is a very big fan following, especially given the legacy of Cartier and him being the great grandson of Cartier.
A lot of organic following. It’s got a very favorable mix of, of acquisition costs. So I think there is a lot of opportunity to grow the brand direct to consumer. I think as it gets bigger, there’s opportunities to expand distribution for retail partners. We may look at that. There are no conversations going on at the moment.
Ashish Shah
Okay, so two more things. One on the pricing side. So I’m assuming the direct to consumer brands and other channels, how we sell through there. We must have already taken some price corrections, right. To neutralize the tariff hikes.
Sumit Niranjan Shah
For the first. So we were unable to pass on tariffs to the customers. There will be some impact most customers have now to accept the tariff increases. There are, you know, some which are still. But we fully expect that by the end of this quarter in terms of, you know, tariffs with customers on, you know, we’ve taken price increases already at the cost of the price increases. So there will be an impact on margins in this quarter. Tariffs that there will be normalization from Q2 onwards in terms of margins. Okay.
Ashish Shah
And any early signs of, you know, any impact on the demand side because of the increase in prices or is.
Sumit Niranjan Shah
It too early or yet? Nothing yet. We don’t, we’ve not seen impact on demand. I mean consumer demand by and large in the U.S. pretty resilient and there isn’t been much of an impact.
Ashish Shah
Okay. Okay. Sumit, thank you very much and all the best.
Sumit Niranjan Shah
Thank you.
operator
Thank you. The next question is from the line of Hiten Bodhicha from Frequent Investments. Please go ahead with a question. The line is unmuted.
Hiten Boricha
Hello. Am I audible now? Hello.
Sumit Niranjan Shah
Please go ahead.
Hiten Boricha
Hello. Yeah, so my question is on Jane. You mentioned the margins will be impacted. So what kind of margins impact we are expecting in this quarter?
Sumit Niranjan Shah
You know as I discussed, there is going to be about a 10 crore impact due to being passed on to customers.
Hiten Boricha
Understood. A 10 crore impact on EBITDA.
Sumit Niranjan Shah
Right. Or you are talking about sales.
Hiten Boricha
Hello.
Sumit Niranjan Shah
Impact on ebitda.
Hiten Boricha
Okay. Okay. Thank you. Thank you.
operator
Thank you ladies and gentlemen. And that was the last question for today. I would now like to hand the conference over to Mr. Sumit Shah for closing comments.
Sumit Niranjan Shah
Thank you everyone for joining us on FY25 conference call. We look forward to speaking to you for our next conference call. Thank you for your time.
operator
Thank you ladies and gentlemen. On behalf of Renaissance Global Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.