Q4 24/25

May 28, 2025

Summary

FY2025 total income rose 115.76% and PAT 64.43%, alongside faster inventory turnover. Priorities include 25% annual growth, a Q2 FY2026 flagship opening and higher-margin retail and jewellery products.

Ladies and gentlemen, good day and welcome to Khazanchi Jewellers Limited H2 and FY 2025 earnings conference call hosted by Kirin Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshil Ghanshyani from Kirin Advisors. Thank you, and over to you, sir. Thank you so much. On behalf of Kirin Advisors, I welcome you all on the conference call of Khazanchi Jewellers. From the managerial team, we have Mr. Rajesh Kumar Mehta, Chairman and Joint Managing Director. Now I hand over the call to Mr. Rajesh Kumar Mehta. Over to you, sir. Hello, everyone. A very good afternoon, and thank you for joining us today. It's my pleasure to welcome you to the earnings call of Khazanchi Jewellers Limited. FY 2025 has been a defining year for us, marked by strong operational progress, digital innovation, and robust financial performance. With over five decades of legacy, Khazanchi Jewellers Limited has been making exquisite gold, diamond, and precious stone jewelry since 1971. We have established ourselves as a trusted name in both corporate and retail segments and continue to be a key player in India's organized jewelry sector. Our commitment to excellence is strengthened by our recognition as an qualified jeweler on the India International Bullion Exchange, that is IIBX, IFSC Limited, and BIS hallmarking certification. Our listing on the BSE SME platform in August 2023 has further enhanced our market presence and growth trajectory. On the operational front, we have made significant steps in our current place of business at Sowcarpet, Chennai, which remain a key growth driver. Small and effective strategical amendment on day-to-day basis, including our intangible assets of our design library, 5 lakh designs spread across more than 25 product categories. As a part of our expansion strategy, we are on track to launch a new flagship showroom in second quarter of FY 2026. This state-of-the-art space will redefine the retail experience and further strengthen our market leadership in southern market. We have started manufacturing and marketing of traditional diamond jewelry, which would improve our B2B business in diamond jewelry segment, which in turn will add additional margin and improve our profits. We are also embracing diamond jewelry, precious stones, and digital transformation to enhance customer engagement. Recently, we upgraded our online jewelry app, which offers features like real-time gold rate tracking, secure online payment, personalized support, and exclusive offers, an initiative that reflects our vision to blend tradition with technology and offer a seamless omnichannel experience. Another key highlight of this year was the strong presence at the Gem & Jewellery India International Fair B2B Expo of 2025, where we secured a significant order book worth INR 55 crores to INR 60 crores, a clear testimony to the growing preference for our designs and craftsmanship among industry peers. In order to expand our B2B business geographically, we are on the path of setting up a strategical plan for participating in various exhibitions pan-India, where potential demand for our manufactured products is high. Looking at the broader environment, the Indian jewelry sector is poised for sustained growth. The Union Budget FY 2025 introduced several supportive measures such as reduction in gold import duties and compulsory hallmarking, which is expected to boost affordability and strength organized retail. Additionally, the RBI rate cut and revised tax slabs are likely to increase discretionary spending, further supporting industry growth. These macroeconomic developments are well aligned with our strategic priorities, which includes pursuing both organic and inorganic growth, expanding our physical footprints, and accelerating our digital transformation. Together, these focus areas position us to capitalize on emerging opportunities and build a strong business for the future. Now, I am coming to the financial highlights of Khazanchi Jewellers Limited. In H2 FY 2025, Khazanchi Jewellers delivered exceptional financial results. The total income stood at INR 1,016.01 crores, reflecting a 144.6% year-on-year growth. EBITDA came in at INR 36.12 crores, a 71.8% increase. Profit after tax reached INR 24.93 crores, up by 114.85%. EPS rose by 114.71%, reaching at INR 10.07. For the full fiscal year FY 2025, the momentum continued. Total income was INR 1,772.53 crores, up by 115.76% year-on-year. EBITDA reached INR 64.92 crores, an increase of 55.41%. PAT to that INR 44.92 crores, up by 64.43%. EPS increased by 64.4%, reaching INR 18.15. These outstanding figures underscore the strength of our business model, operational efficiency, and ability to execute on growth opportunity. In conclusion, our strong performance in H2 FY 2025, supported by a favorable policy landscape and well-executed expansion plan, positions Khazanchi Jewellers Limited for continued success. Our strategic focus is firmly aligned with value addition and long-term growth. We are working towards expanding our design capabilities, going forward establishing our own in-house manufacturing facility, and broadening our client base across both B2B and B2C segments. These initiatives are aimed at enhancing product differentiation and improving margins. Combined with the launch of our flagship showroom, ongoing digital transformation, and unwavering focus on customer experience, we are confident in our ability to further strengthen our market presence and deepening customer relationships. I would like to extend my sincere gratitude to our shareholders, customers, and all stakeholders for their continued trust and support. We look forward to achieving new milestones together and capitalizing on the promising opportunity that lies ahead. Once again, thank you for being with us today. Thank you all. I now open the floor for question and answer. 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 their telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar, an individual investor. Please go ahead. Yeah, thank you. My first question is, how many active B2B clients does the company currently serve, and what percentage of sales comes from repeat orders? Company currently serves nearly, you can say, somewhere around 500 clients B2B. It is on regular basis only, whatever the requirement of the clients come in, they come in touch with us, and it is on recurring basis. We are serving with all their product requirements. Okay. Second question I have is, are you planning to franchise or directly operate future showrooms? Initially, we have a plan of opening up our flagship showroom of 10,000 sq ft. The management is planning to open it by the second quarter. Later on a future date, after having two, three showrooms of our company owned, it may even think of working on franchise model. Okay. The next question I have is, what are your criteria for selecting future showroom locations? We are looking up, since we have a very good base in the Southern India, so we are planning to have it in south part of only in Tamil Nadu. We have been working on selecting of area, and as per our patterns and designs, type of area where we could sell our products. We have been working on that. Okay. That's it from my side. Thank you. Thank you so much. Thank you. The next question is from the line of Shreya, an individual investor. Please go ahead. Hi, Shreya here. Am I audible? Yeah. How are you managing inventory levels given the high volatility in gold prices? Yes, the inventory is managed on day-to-day basis. It is called the refilling system. It is a traditional method of buying gold as soon as we sell. That is the way we follow replacing of goods, what you have told, so that the fluctuation does not affect much. Has the launch of lighter and fusion jewellery impacted your gross margins positively? Could you repeat the question, please, louder, please? Hello? Hello. I could not hear your question. Please, louder, please. Has the launch of lighter and fusion jewellery impacted your gross margins positively? That's what, as the prices are going up, we are also manufacturing and creating lots of designs which are of affordable range and lightweight jewellery. Since the lightweight jewellery are fused with latest designs and technology, obviously, it is giving us higher margins. What is the current stock turnover cycle, and how has it improved compared to previous years? Our stock turnover cycle has improved nearly by 40% from last year. Okay. There is one last question from my side. What percentage of your jewelry portfolio consists of high-margin temple or designer jewelry? We cannot define that separately, but you can say that somewhere total turnover of 15% are of high margin, and all others are regular margin, and we are dealing with all handmade jewelry. Major portions are, it is not that low margin. We can define it as medium margin and high margin, technically. Okay. Thank you. That is all. Abhishek, if there are any more questions, I will get back in the queue. Thank you. Sure. Thank you so much. The next question is from the line of Shyam, an individual investor. Please go ahead. Hi, good afternoon. Am I audible? Yes, sir. Yeah, good afternoon. I'm Shyam, an individual investor. I've been tracking Khazanchi since quite some time now. Just a quick- Okay to question what Mohit just asked you some time back regarding the third question, regarding the location of your jewelry shop. I believe you are primarily based out of Sowcarpet, Chennai, right? Yes. And are you targeting any prospective locations down the line anytime soon in terms of expansion? Like you mentioned that you have plans of bringing out two more, three more That's what stores for the Yeah, after opening up of our flagship showroom. Yeah Any day beyond, let's say, the coming financial year, say, maybe somewhere around FY 2028, we are planning of expanding into various different areas where we could open four to five branches. Nothing at the moment? Nothing for this year or for the next year? Initially, we are focusing on opening up our flagship showroom. Okay. This year we are going to focus on that. On later, that is what, we are already working of selection of areas and everything. As soon as the flagship showroom is launched and things get being operated, later on, we will move on for expansion that way. Okay. The reason why I ask this question is, it is not long Khazana Jewellery sometime back also put up a showroom in Kellys, Purasawalkam, I believe, in Chennai. I am not much familiar with the Chennai area, but I kind of heard that even Khazanchi has bought some property in Purasawalkam, somewhere around Besant Road. Is that information right? It has got to be somewhere. I am not sure if the source data is right or not. We are having the company-owned property in this flagship showroom alone. Yeah. Future expansions, we are thinking of making it asset-light. We are not going to own a property. We will source it on lease or something of that sort and go for expansion. It will take its own time. It will be only after opening of this flagship showroom. It may take another one year for that process. You don't have any property or lease in, particularly, property recently in somewhere in Besant Road? We do have a residential. That is a management residential property. A residential property? Yes, that is management residential property. There is a commercial portion also. In future, if required, there is a possibility that the management can think of opening a showroom there. Oh, okay. Or they decide it. Okay. Just a minute. Yes, that is it from my side. Thank you so much for your time. Right, sir. Thank you. Thank you so much. Yeah. The next question is from the line of Darshan Bhardwaj from Bhardwaj Tools Private Limited. Please go ahead. Hello. First, I would like to congratulate on the outstanding results. My only question is- Thank you so much. In the last earnings call, it was said that the flagship showroom will be opened by May, but now we are saying that it will be opened in the second quarter of this financial year. I would like to know what problems are you facing? Yeah, that is true. Technically, there were reasons for, since the work of all, since we have started the civil constructions and all, it got delayed. We are working on it. It is in the second quarter. There is a plan of the management that they are planning to open it by first, by quarter wise. One of the portion which is operating, which may be operating B2B segments and all will be opened in, say, maybe by July. Okay. The whole showroom will be open within next quarter, the second quarter, yeah. Okay. My follow-up question would be, what steps are we taking in turning our cash flows into positive? Currently our cash flow is only INR 2 crores in positive, right? What steps are we doing to- See, as we are in the jewellery segment, the stock portion plays a very vital role here. The value of stocks is mainly the inventory part occupies the most of the operating funds. In that case, it is equivalent to cash, you can believe. That is what we can say on that. Okay. That is all, sir. Thank you. Yeah. Thank you. The next question is from the line of Ramesh, an individual investor. Please go ahead. Good afternoon, sir. Good afternoon, sir. My question is in line with the question asked by previous speaker. The property in the Pushpakal area is owned by the company or residential property? I do not understand. Is it on the books? Sir, this is a property of promoter. Oh, for the question. Oh, okay. Yeah, it was the property of promoter. It is no way connected with the company. Oh, okay. Exactly. As per currently, how much inventory we are having now? The instance of gold, can we quantify? Value-wise, we are having around some inventory of some INR 250 crores. In one of the previous concalls, we were told that there is currently Okay, value-wise, okay. Quantity-wise, what is? Yeah. 300. We were told that Yes, sir. In one of the previous concalls, gold, they said 300 kilograms was the inventory. That's what I told you. Volume-wise, it is to around INR 250 crores. Okay, thanks. Yeah. Thank you. The next question is from the line of Hardik Sukumar Shetty from Anand Rathi. Please go ahead. Hi, sir. Congratulations on a great set of numbers. Hello, sir. Thank you so much. Yeah, I just wanted to understand your inventory days have reduced significantly, from 89 in FY 2024 to 53 in FY 2025. So just wanted to understand what is driving this significant reduction in inventory days? Have we done something on the backend, or what is the main reason behind this? Yeah, there has been better inventory days because all the ornament sales and all we were offering it. Just a second, guys. Hello? Hello? Yeah. Hello? Hello, audible? Yeah. Yes, sir. Yeah, I just wanted to know. Yeah. You are talking about the inventory turnover ratio, right? It has improved. Yeah, right. Inventory. Yeah, there was a sale of bullion in the last quarter, which was of high quantum. The overall inventory turnover was fast. Okay, going forward, what kind of will you maintain these kind of inventory days, like close to 50-60 days in FY 2026 and 2027? Or will it be higher, close to 80-90? I mean, more appropriate assumption. As for the assets, we are going to open up the retail stores, and we are constantly focusing on the top line of the same segment. It will be somewhere near only, maybe 25% here and there. Okay. On the second follow-up to that, our bullion sales this year has increased substantially to 48% as against 16% last year. Yeah What is the reason behind such a drastic increase in our bullion sales, and what should be a fair assumption to be made going ahead to the bullion side of the business? Yes, sir. It was in CEPA allotment, the quantum of CEPA allotment for the company, and it was restricted to 31.3. Till that date, we are getting an additional margin of 1%-1.25% extra on that bullion sales. Behind the market demand for that was high, the company, in order to complete that, whatever allotment was there. The bullion turnover was high. Okay. We have to sell off in the six months. Yeah. Right. Okay, just what are your guidance for next year, top line-wise? I think we mentioned 25% growth for FY 2026. Will that exclude our B2C revenue from B2C, or including even from the assurance, the top line guidance for next year? Yes, sir. Every year, the top line what we define, we are achieving it, and it is moving much higher than that. Once again, I told you that it would be 25%, sir, from the current top line. Okay. Thank you. Yeah. Thank you, sir. The next question is from the line of Rajesh Chauhan from RH PMS. Please go ahead. Yeah, so congrats on the good set of numbers. In long term, because our base is also small and the execution capability is also phenomenal, so how do you see revenue growth if we talk about little bit larger horizon, let's say 4-5 years? And what kind of challenges you would see in terms of scaling up to any desired number that you are targeting in next 4-5 years? Sir, on the constant basis, if you say we are target, we are trying out to be working at least 25% annual year-on-year on that. And improving our bottom line by adding up various other higher margin products. And we are entering into retail segment also, and that will add on additional value. So in that case, for consecutive 4-5 years, and in that 4-5 years period, we have also planned for opening up an additional showroom. So in that all, if you take, it will be surely a higher supply with higher profit. Right. And if you look at the EBITDA margin, so what will be the EBITDA margin differential for B2C versus B2B? So in B2B, what is the range in B2C going ahead? And how do you see blended margin maybe 4-5 years down the line? Because margins will improve very slowly, because we have major portion from B2B. But once we scale up, then there will be some margin accretion which will happen because of the B2C piece. So how do you see in terms of the margin acceleration going ahead? Sir, as I defined this, we have been working on various high-end products, and we have also introduced diamond jewellery for B2B segment, which is a high-end, high-margin jewellery product. In that case, B2B margins are going to improve, as previously we have defined that B2B margin would be somewhere around 4% and B2C would be around 9%-10%. Okay. So blended margin, you can say that it would be somewhere 5%. Okay. Yeah. Okay. In terms of, let's say, when we are launching B2C, which kind of marketing activity we are taking? It must be mostly regional only. How is the acceptance in terms of demand also? Because there was some slowdown on the B2B piece I am asking basically. There was some slowdown because of the higher gold prices. Any material difference we are seeing in terms of demand and the marketing strategy on the B2C side? Two parts to this question here. See, this has been happening. The price raise is gradually happening on various times. Now the prices have increased. It is true that at the initial stage when the prices go up, it takes quite a little time for the people to digest that. But once it gets done, that is for a very shorter period of time, once the price is accepted by the crowd, then things start working at the same pace. That is not the big issue. It is on cyclic basis only, the prices are ever increasing. For a very short while, there is a slowdown, but once again it picks up. Okay. In terms of marketing strategy, would you like to throw some light? Yeah, that is what. Since we are coming with a B2C store, we have planned regional marketing only since because our presence is in this region only, and we have been focusing there only. The overall management has decided to spend on marketing of somewhere around 4%-5%. Okay. Okay. That will be all from my side. Thank you and good luck for the future. Thank you so much. The next question is from the line of Abhishek Sharma, an individual investor. Please go ahead. Hello? Hello, sir. My question is, what is your current debt structure, and are there any plans for reduction or refinancing? Sir, could not understand your question. Please louder and clearly. What is your current debt structure, and are there any plans for reduction or refinancing? Yeah, you are talking about current debt ratio? Yes. Sir, the current debt ratio is 0.11. Okay. Yeah. On a future date, see now, yeah, for the expansion plan, if anything is required, the company may go for additional debt. It has not been decided yet, but if anything is required for the expansion purpose, there is a possibility that company can go for it. How do you expect demand patterns to evolve in FY 2026, especially with the macro tailwinds like rate cuts and increased disposable income? Sir, the demand is going to increase as the gold jewellery has always given a better return to all the investors, whether it is in the jewellery form or whether it is in 24 karat coin forms or anywhere. So the demand is gradually going to increase only. At the constant rate, we are seeing that the demand would increase by 25%, but it could be much better than that, I think. Okay. My last question is, what is the succession planning framework, especially given the family-driven leadership? Sorry, sir, once again, I could not get your question. What is the succession planning framework? Succession planning? Sir, initially, once we go on opening up our flagship showroom, later on, we will be expanding. That is what our strategy. Okay, sir. That is it from my side. Thank you. The next question is from the line of Mahesh Seth, an individual investor. Please go ahead. Yeah, can you hear me? Yes, sir. Yeah. My first question is that, how does the company plan to differentiate itself from larger competitors like Titan or Malabar in the retail jewelry space? Sir, we have our own intangible assets of the design patterns, varieties. The management has a very wide experience of, say, 5 decades that we have been working on it, and we have worked along with all the best quality artisans in India. Recently, we are well-known here. In that way, we are working, and that way our growth is coming up. Okay. What are your medium to long-term expansion plans beyond Chennai and southern market? Sir, since we have participated in an exhibition recently, where we have found a very positive approach, the management has been planning to place and participate in all the B2B exhibitions pan-India level for expansion purpose. For the retail segment, initially, we are opening up, coming up with our flagship showroom, and after completion of that, say, in another 1 or 2 years, there is an expansion plan of 5 to 6 showrooms on the retail segment. The company is planning expansion on both sides, B2B and B2C. Okay. As you said, like, five to six stores in, like, next two to three years, right? Yeah. How do you plan to fund this next phase of expansion? Are you considering any equity raise or debt? Sir, that has not been actually decided till date, because it will be a combination of debt and equity raising. The company is growing out of its reserve profits also, it can grow. That has not been decided till now. Okay, got it. Thank you. The next question is from the line of Rahul from Crown Capital. Please go ahead. Hi, sir. Good evening. Can you hear me? Yes, sir. Yes, right. First question is, as of FY 2025 end, what was your revenue mix, B2B, B2C? In percentage terms? Yeah. In percentage terms, somewhere around 10% was our B2B, sorry, B2C, and 90% was B2C. Sorry, B2B is 10% and B2C is 90%. Yeah. After this flagship store comes on, which is retail B2B portion, correct? What will the B2C percentage be by year-end? Sir, if everything works right, the percentage would be improved by 10% additional for B2C. So it will be 20% then? Yeah. Okay. Along with this 25% plus growth that you target, you did not gain much more in FY 2025. What were the leading growth drivers for this year? Do you expect the same to continue in FY 2026? Sir, the main drivers were our creation, our marketing strategies, and our product specialties. Since the prices are increased, we have introduced various lightweight jewelry, our efficient style of production, and the management experience, everything we are on for this growth strategy. At a constrained level, we are defining that we will grow at the pace of 25%, but we will be doing surely better. This retail showroom that you said you expect INR 150 crore additional sales, when do you expect it to show on our P&L? Will it be this year completely, or some portion this year, some portion next year? Sir, we are thinking of starting up the showroom in by second quarter, somewhere in second quarter. So, partly this year, and upcoming years it will be continuing. Right. Okay. Lastly, margins also you said you are planning to improve, right? Yeah. Bottom line will definitely improve if you basically adding higher margin products. In FY 2025, what led to the drop? Sir, I told you, since we have higher turnover of bullion was there in the last quarter. The margins in the bullion are less, but since we haven't gotten CEPA quota from IIBX, we are trying to use it to increase our total profit. You expect to reach back to 5% in FY 2026, 5% or plus? Is that something possible? Yeah, there is a possibility of improved margins since we are entering into a retail segment where there is a higher profit, and we are working on it hard for that. It is going to improve. We cannot define that it may reach to 5% in next year itself, but gradually, surely in coming 2 years, it will surely reach 5%. Okay, sir. Thank you, and all the best to you. Thank you so much. The next question is from the line of Poornima from ICICI Bank. Please go ahead. Hi, Mr. Rajesh. Good evening. First of all, congratulations on the results. I think most of the questions, yes, sir. Sir, most of the questions were answered already. However, I just wanted to understand a couple of things. My first question is, here we see this showroom that is coming up. Is there any debt addition in the books with respect to the opening of the showroom in South Arcade, or is it completely funded via our issue proceeds that were raised last year? That is what, even the issue proceeds were very optimally used, and the business was grown accordingly. Okay. To the extent the management has not decided on any debt additions. Okay from our own resource. Okay on a future date, if any debt is required, it may also go for it. Okay. Sir, because in the balance sheet, I can see debt addition in the books in FY 2025, especially on the non-current borrowings. Because since I do not have the breakup of the lease liability and the term debt, can you please throw some light on non-current borrowings, sir? It has increased from INR 18.64 crores to INR 25.6 crores. Hello? Just a minute, ma'am. I will check out. Hello? Just hold on, please. Yes, sir. Okay, sir. Madam, the debt from the bank has not increased. It is an unsecured loan that has increased. Okay. Okay, sir. And sir, another thing, just wanted to understand the proportion of your gold purchase. What is the proportion that you are purchasing from the nominated agencies like bankers, and what is the proportion of your outside purchasers? The proportion, sir, and all, we have not calculated it yet personally. If anything, you please drop in your number so that I can show you that. I will tell you the bifurcation. Okay, sir. Okay. And final question, sir. From your balance sheet, I understand you are completely relying on your working capital, that is, CC type of a facility. Why not opt for gold metal loan, sir? Gold metal loan, we have not, never gone for gold metal loan because Okay the interest rate, debt side and everything is not that feasible. In market itself, we are getting gold at a better price on day-to-day basis. Okay As on then required, we can use the cash credit limit. All those things add additional value to the company's policy. So, in that case, we are not opting for that. Okay. Thank you, sir. Thank you so much for your Thank you. Thank you, sir. statements. Thank you, sir. Yeah. The next question is from the line of Hardik Shetty from Anand Rathi. Please go ahead. Hi, thank you for the opportunity. Sir, just wanted to confirm, we had earlier alluded to having our own in-house manufacturing setup, where we will go to close to 20% of the production in the next two years. Are we still on track for the same, or how are we progressing over there? That's what, sir. Initially, the management is focusing on opening up of the flagship showroom. We have been working on our own manufacturing project, and as stated, 20% of our production will be all manufactured in coming years. Okay, in the coming years. Okay. That is good. Yes, sir. Thank you. The next question is from the line of Amish, an individual investor. Please go ahead. Sir, thank you for allowing me to join this call again. Sir, going through the annual report, came across a company called Khazanchi Silvers Private Limited. Yeah. Does this company have the operation? Can you just share more information about Khazanchi Silvers? Where is it based out of? Khazanchi Silvers, it is a related company to the management, and it is a sister concern. It is based out of Chennai or how is it? Yeah, it is based in Chennai only, sir. Because does it have operations anywhere else outside? No, no, sir. It has operations only in Chennai. But the reason why I ask is, the company is registered with ROC Kolkata, and it is registered in West Bengal, in a district called Bishnupur. That is why a little concerned regarding the If you could provide some clarification. Yeah, it is registered in Kolkata, but all the operations are happening in Chennai only. We are under the process of shifting that company to Chennai. Oh, okay. Okay. So, one more thing. What is actually the cause for delay in opening of the showroom? Because you said that the showroom will open this Last call, you said it will open this March, April. It is actually looking forward to- Yeah, actually, since we have started from the base constructions and all, so the completion certificate got delayed. So, simultaneously the upcoming processes got delayed, so we have extended the opening date. Okay. Few more questions. What is the share of Jadau jewelry in your portfolio? Do you sell Jadau jewelry or how is it? We do sell Jadau jewelry, but the proportion is very less as in the current showroom. On the new showroom, we are going to add up in sufficient quantity of Jadau and diamonds as all, and which are higher margin segments. That is going to be an addition, higher margin product with our volumes. Jadau jewelry. Oh, thank you. Jadau actually, is there? The share is less now. Any reason? Is it less margin or how is it? No, no, it is margin. Remember, like I told you, it is not less margin, but since we have a constraint of space here, already we are into the, what is there, regional designs and local customer products which are already in, what they say, high-selling range here. We cannot afford to keep for that additional space. On the new showroom, when we have an abundance of space, we are going to add up all those products. What is the difference between Jadau and Kundan jewellery? Because there is something called Kundan. Yeah. What is Kundan? Kundan is also a design process of Jadau. Kundan is the pure gold. Okay. In which the Jadau is set. Jadau is then, what is it, Polki diamond, uncut diamond that are set in Kundan. Kundan is the, what is the purest form of gold. That is called Kundan. Yeah. Okay. One of the previous questions was asked by one of the previous people, it was regarding the succession plan. I did not understand the answer. Because since the family-run entrepreneurship, succession plan is any difficult or You are right, we are talking about succession plan means I could not understand. You define properly. The succession plan in the sense, the ownership, since this is a family-run organization, the succession hierarchy. Hello? Hello. Yes, sir. Succession plan, like in the sense, who comes next? Since it is a family-run organization and we have already seen, we have seen in many companies that usually there is an internal conflict. So, that is a concern of previous people, I guess. The answer was not clear, sir. That is why I asked it. Actually, the succession plan has not been defined. If I will tell you, share me your number so that I can get it done and give you the reply. Oh, sure. Yeah. Will do. Will do, sir. Thank you. Thank you. The next question is from the line of Jia Jain from Green Capital. Please go ahead. Hello, sir. I have a couple of questions. My first question is I want to understand how the company hedges against fluctuation in gold prices. Are you using futures or any stock reflexes? Sorry, madam, could not understand the question. My question was regarding, like, how the company hedges against a fluctuation in gold prices? That is what we have been working on a refining system. On daily basis, whatever we sell, we buy it back, and it is a, what the traditional method of buying and selling of gold, so that the fluctuation, risk of fluctuation can be avoided. What is the impact of currency fluctuation on your import costs? There is no much impact as such because the moment of price fluctuation happens, but we feel it on the day-to-day basis, hourly basis, according to the market scenario. Sir, also, how do you view the risks from lab-grown diamonds or shifting consumer preferences nowadays? Yeah, these lab-grown diamonds, yes, these are there, but demand for these, there is a preference for always a natural diamond. Lab-grown diamonds are also on high demand when solitaires are concerned, because the price variation between natural diamonds of solitaire and lab-grown is very wide. So, acceptance with regards to lab-grown diamond is there for solitaire pieces. Solitaire pieces, you could understand bigger size of pieces, one carat, two carat. You have, right? Yeah. That is the only, my question, sir. Thank you. Thank you. Participants who wish to ask a question may press star and one at this time. A reminder to all participants that you may press star and one to ask a question. As there are no further questions from the participants, I now hand the conference over to Mr. Harshil for his closing comments. Yeah, thank you, everyone, for joining the conference call of Khazanchi Jewellers Limited. If you have any query, you can write us at research@edelweissfin.com. Once again, thank you, everyone, for joining the conference call. Thank you so much. Thank you, everyone. Thank you. On behalf of Edelweiss, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.