Q4 23/24

May 22, 2024

Summary

FY24 total income rose 70.51% to INR 821 crore, while EBITDA increased 148.77% and PAT 261.13%. Strategy targets continued growth through a flagship showroom, geographic expansion and a larger, higher-margin retail mix.

Ladies and gentlemen, good day and welcome to the Khazanchi Jewellers Limited H2 FY24 Earnings Conference Call hosted by Kirin Advisors. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star and then zero on your touch-tone phone. Please note, this conference is being recorded. I now hand the conference over to Ms. Preeti Bhardwaj from Kirin Advisors Private Limited. Thank you, and over to you, ma'am. Good afternoon. Thank you. On behalf of Kirin Advisors, I welcome you all to the conference call of Khazanchi Jewellers Limited. From the management side, we have Mr. Rajesh Mehta, that is Chief Operating Officer, and Mr. Vikas Mehta, Chief Financial Officer. Now I hand over the call to Mr. Rajesh Mehta, Chief Operating Officer. Over to you, sir. Thank you. Hello, everyone. Very good afternoon. Namaskar. I warmly welcome each one of you to our conference call of Khazanchi Jewellers Limited. Before we tell you about the financials of our company, I would brief about my company in short. Khazanchi Jewellers Limited has an experience of around 50 years in the jewellery industry. Our founder, Mr. Tarachand Mehta, in 1971, started the jewellery business and incorporated the name of Khazanchi Jewellers in the year 1992. Our headquarters is located in Chennai, Tamil Nadu. And we are holding various statutory licenses as BIS hallmarking license for quality, IIBX for import of gold bullion, and import-export certificate, et cetera. With our various categories of products and extensively a library of around 1,000 designs, our company specializes in a wide range of products, including gold, diamond, and precious stones. Now, we are into manufacturing of wedding jewellery, exclusive designs, and traditional South Indian designs. We have a retail space of 1,200 sq ft, especially designed for a seamless shopping experience. In FY24, Khazanchi Jewellers Limited has successfully sold around 1,400 kg of gold jewellery. We also offer various types of bullion items, coins, bars. We are one of the prominent players in our wholesale and retail market. Our central focus is on crafting, producing, and delivering high quality of jewellery that spans a broad spectrum of items, including necklaces, chains, rings, earrings, bangles, bracelets, nose pins, mangalsutras, Kundan items, pearl items, et cetera, et cetera. We are dedicated to create intricate wedding jewellery and fashionable pieces for special occasions. The competitive advantage lies in our integration of quality manufacturing from various regions of India to manufacture unique designs catering to both retail and wholesale demand. Since our promoters have an enormous experience, we have many selected and exclusive artisans from all over India who produce exclusive jewelry for us to attract our customers and wholesalers, which makes us unique from other companies. Backed by experienced promoters and dynamic young leadership with a proven track record, supported by a seasoned senior management team and a board of directors, we excel in wholesaling of imported diamonds and selling gold jewelry to national retailers. Our brand is trust, transparency, innovation, strict ethical values, and business practices. We have established strong systems and procedures to mitigate risk and ensure quality control by strictly observing hallmark norms. Furthermore, our commitment is to design and innovation across our product range with a. As we have a very large experience, as our management has a very large experience, we have been having customer base from generations in our retail sector and providing quality products to all our wholesale, unique quality products to all our wholesale shopkeepers in our wholesale line. Going forward, our business strategy involves several key initiatives. To start with, we are moving to our new showroom, which is of 10,000 sq ft, with the aim to broaden our product portfolio and boost our capacity. Our proposed showroom is located in 286, NSC Bose Road, which is a jewelry hub of South India, a very prominent wholesale market from all over Tamil Nadu. Spanning three floors, the showroom is set to become a flagship destination. We have acquired a 3,045 sq ft, around 3,304 sq m of land plot on MLR Road, and commenced construction phase for the showroom. Anticipating to open by May 2025. Funding for the new venture will be sourced from the net proceeds of our recent issue. Embracing a large-format model, each showroom will offer an enhanced experience for our clients. Moreover, we have obtained all necessary approvals for trade and business registration, reaffirming our commitment to compliance and operational rigor. We are poised to deliver exceptional experience and further strengthen our presence in the market. We also aim to expand our customer network in existing markets by venturing into a new geographic territory. Strengthening inventory management practices is another priority, ensuring optimal stock levels to meet demand efficiently. We continue to remain customer-centric, focusing on delivering exceptional services with a wide design portfolio and tailored solution. We believe our strategies will bring remarkable business growth in the coming time, satisfying all our stakeholders. The company got listed on the BSE SME platform in the first half of 2020. Now, I slide to the financial highlight. In FY 2024, our company's standalone financial performance demonstrated substantial growth and improved operational efficiency. We reported a total income of around INR 821 crores, a 70.51% increase from the previous year. Our EBITDA also rose significantly, up by 148.77% to INR 51.78 crores. The EBITDA margin improved by 150 basis points to 5.09% profitability, adds up to 261.13% to INR 27.32 crores. The improvement is also reflected in the 126 basis point ratio that adds up to 3.33%. These results demonstrate strong financial health and significant progress towards achieving our strategic growth objectives. As within the jewelry industry and the prices of gold has been appreciating year on year, the company has the natural benefit of increasing valuation of gold vendors in our stock of at least 20% per annum for the last three years. For the further standalone H2 FY 2024, our total income reached INR 415.38 crores, with a growth of 16.38%. EBITDA for the quarter grew by 24.6% to INR 21.02 crores. The EBITDA margin improved by 50 basis points to 5.06%. Revenue for the quarter increased by 11.59% to INR 11.6 crores. The PAT margin rose 2.98 points to 2.79%. With these brief remarks, now I request to open the floor for question and answer. Thank you once again for your presence. 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 touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. The first question is from the line of VN from Sankhya Financial. Please go ahead. Yeah. Thank you. Congratulations for stellar result. My query to the management is to try to understand how did you have such a huge increase in revenue, in profits, and consequently, why has the earnings per share not kept pace with top-line growth and the bottom-line growth that you have posted? Could you please repeat the question? I am unable to comprehend. So, you had excellent results. I would like to understand how did the company post such huge increase in top line and bottom line? Will this continue for the next year also? Because these are extraordinary results. Congratulations. If you can repeat one minute. Sure. The second question is, on the earnings per share, however, the increase is not as big as the sales and the profit per growth. Can you explain why that? Thank you. Yeah. Overall, we are focusing on the, what is it, items which are providing higher revenue to the company. In the second, in the coming year, we are looking to focusing on the items which are providing higher margins to the company. Meanwhile, we are also having a strategy of visiting door-to-door to all our supplier, all our shop dealers, to understand about the uniqueness of our product and to join business with us. That's the main reason of we are having an excellent business. And regarding- That's what, that's the reason for the declining rate. And the earnings per share. Earnings per share is around INR 10, never rupees this year. And it is obviously going to continue as we are having a small retail showroom. And we think we are expanding on a retail segment where the margin is higher. We are expanding it to the 10,000 sq ft showroom that we are building, that we will be having a higher retail sales, which will once again give a higher retail margin. The earnings per share is going to continue and continue to appreciate in the same pace with the same percentage of growth. Sir, I would like to thank you. I understand, next year can we expect similar good results in terms of growth for the company? Surely, sir. The growth story will surely continue. The management is working very hard. It is like since we have entered into the, what they say, capital market now. It is a hard effort of the management from past 20 years, or past 15 years, I mean, sorry. This is the third generation which has been working in the company for the development of the company. I wish you all the best. Thank you, sir. Thank you so much. Thank you. The next question is from the line of Aastha from Equiday Advisors. Please go ahead. Hello? Hi. Am I audible? All right. Yeah, yeah. Congratulations on the excellent results. I have a couple of questions. The first one is in continuation with the previous question that the analyst had asked. Sir, from the 100%, revenue has increased significantly, right? Is this of the product, the gold pricing, or have we grown volume-wise as well? Sir, we have grown in volume-wise as well, because the price has appreciated only to the extent of 15%-18%. But since the company has made a very higher growth. Understood, sir. Yeah. Sir, secondly, the margins, like you said, margins have improved because we are selling higher-margin products, right? Yeah. We have started focusing on that type of segments, that type of products. Okay. Do you have the previous revenue breakup as per, wise, I mean, it's ornaments and then bullion. We do sell gold, silver, diamond jewelry as well, right? Yeah. We sell gold. Yes. Can we get a bifurcation of that as well? The current bifurcation I do not hold much. Actually, for the gold ornaments, we are having a sale of around INR 650 crores. For bullion, around INR 130 crores. Retail segment, retail segment we have. Because it is gold and it is an people, what they say, we have sales only at 50-50 bifurcation only. I will give you my number, and you can talk to your number. If you want the retail revenue, I can provide you, madam. Okay, sir. Got it. Yeah. Sir, you supply to jewellers also, right? I just want to understand how much revenue is coming from directly, you know, those business segments from, not directly from retail clients, but are we selling to, you know, Titan or any other such company? How much revenue we are getting from those clients? Is it possible, can you please give us top five customers? Is it possible? Top five customers are there. I can give you the detail also. We are supplying to the major, what they say, multi-store offline. We are supplying to Joyalukkas. Okay. Our major clients who are very familiar in the south as KM Jewellers, JT Jewellers, Malabar Jewellers. Actually, they are all the, what they say, multi-stores with two, three stores, four stores. They are operating very good in all over South India. Sir, can you please give me a breakup, I mean, how much we are supplying to, what is percentage term, how much revenue we are generating from retail segment and how much from- You want, you want the percentage of margin, sir? Sir, percentage of, sorry, I didn't get you. Percentage of? Percentage of margin what we have into B2B or B2C, are you talking about that? Yeah, the margin as well as some revenue breakup. I mean, yeah, sales break. Revenue breakup. Around 80% of the revenue is generated from B2B, 20% of the revenue is from the retail segment. For B2B segment, we have a gross margin of about 3.5%, and retail segment, we have around 8%-9%. Got it. But 20% is B2B, and 70% is from retail. No, no, no. Actually, we are expanding on the retail segment now. The revenue is focused on retail now, 90% is from B2B. Okay, okay. Got it. Yeah, yeah. Do we have in-house designers that in-house, we, like, do we give the manufacturing of jewelry to outside, like as in for job work, or do you- Yeah, obviously, we do give jewelry to the job for people because in-house we cannot have all the artisans who are best all over India. So, where it's available, wherever they're asking, we provide them. They keep testing, and customers come back, and they keep selling. Okay, sir. Thank you for now. I will get back to you soon. Yeah. Thank you. Thank you so much, ma'am. Thank you. The next question is from the line of Jay Prakash from Arihant Capital. Please go ahead. Hello, sir. Jay Prakash, the line for you has been unmuted. You may proceed with your question. As there is no response from the current participant, we will move to the next question, which is from the line of Anmol Soni, who is an individual investor. Please go ahead. Hi, Anmol. Yes, sir. हाँ, Anmol, आपकी आवाज़ आ रही है। First of all, I am happy to see that it is back on track. I have two questions. One is regarding, my first question is regarding the tax discrepancy. In first half of FY 2024, there was a low provision for tax for advanced tax paid, which was showing the inflated profit. But then expense was cut off. What was the actual reason behind this, due to which there was less tax which was booked in H1? It was showing good EPS for the first half and less EPS for the other half, almost same revenue. I have a question regarding this. You are talking about the Yeah. Taxation burden, as you said, it has been paid less in the first half, and the accumulated has paid in the final half. Correct? Right. Yeah. On the similar sales of both the half years. I think that perhaps the question by Ajay Bhat was done, the first question. But, go ahead, you are done, and I'll answer it for that. Okay. My second question is about the demand outlook for next one or two years, especially after the sudden spike in the future market prices. What will be the- Whenever Yeah. If you take up the history of gold, whenever there is a spike in gold prices, whenever prices are increased, the demand have obviously increased with intention of the investor that the prices will go up. As his expectation, prices have always been increasing. The person whoever has invested in gold at whenever time, he has got a better return, and he is happy, and he will go purchase. The demand is going to obviously increase in coming years. From the volume comes also, there will be a good demand? Yes, sir. Yes, sir. And by the price? Yes, sir. Volume side also, demand has been increasing, and it will increase next time as well. Okay. Yes, sir. Yeah. Thank you. The next question is from the line of Jay Prakash from Arihant Capital. Please go ahead. Good afternoon, sir. This is Jay Prakash here. Do we outsource designs from other jewelers, or we have our own artisans for it? Yeah, we do outsource from artisans outside and from other jewelers also. Because all the exclusivity, we cannot arrange it all inside our campus. So, we source it from outside also. Do you have any plan in the next financial years to hire more artisans of your own rather than outsourcing? Yeah, possibly those products which are being supplying to our B2B clients, which are in very much huge volumes, we are planning to have a manufacturing unit for this from the year future. Okay. What is our current design portfolio right now? Yeah, we are having a design portfolio of around 5 lakh designs. Okay. As we see right now, gold market is on boom. How would you tackle to it? What are your future strategies to improve your sales for it? Sales has been quantified and value-wise. Both ways, sales has been increasing only. Demand for gold will always be there because people treat as a very safe investment and reliable investment. As the prices move up, demand will continue to grow. Okay. My last question is, what is our working capital requirement right now? Working capital requirement for the new showroom? Yes. Yeah, the management is thinking of investing around some more additional. Sir, management is not taking any extra debt. They will shift the funds from the existing showroom. From existing showroom, they will be shifting them up to the new showroom. Okay, great. Thank you, sir. Have a good day. Thank you. Thank you. The next question is from the line of Ajay Bhat, an individual investor. Please go ahead. Hello? Hello. Yeah. Good afternoon, sir. Hi, good afternoon, sir. First of all, congratulations for your good set of numbers. Thank you so much. Actually, you talked about the new strategy, right? Can you just share more info about that? Like, how much it costs and Awesome. You are talking about the new showroom construction ongoing? Sorry? You are talking about new showroom? Yes, sir. Yeah. The new showroom construction ongoing. We have already completed the RCC construction for ground floor, first floor, second floor, and third floor. We are approaching 70,000 sq ft. Now interior works will be going on, and by 2025, we will be opening it. Okay, sir. What kind of growth you expect in upcoming Q4? Gradual growth in industry, and for our company, it will be around 20%-25% year-on-year. Okay, sir. I just wanted to know, are we into contract manufacturing for big clients? If yes, then whom do we associate with? Either of our clients are taking from our ready stock, which we give to our manufacturers. It was 60% ready stock different designs. Our clients select from our ready stock itself. This is our strategy. In other business, they have to place the order. Like now, saree season or other seasonals, they have to place the orders for our manufacturers. Here we are getting it ready, keeping it as a stock up for the season coming up. Select the designs what they want. So that they can select the designs on what they want in a huge variety with budget. Okay, sir. Thank you. That's it from my side. Thank you so much. Thank you. The next question is from the line of Saloni from SK Analyst. Please go ahead. Thank you for the opportunity. My question is, what is our growth sales and what is the growth in volume? You are talking about the growth in sales? Last year it was around INR 410 crores. Now this year as of Q3, it is around INR 850 crores this year. Hello? Yeah. Got it. Okay, thank you. Thank you. The next question from the line of Simar, an individual investor. Please go ahead. Yeah. Hi, good afternoon, everyone. Thanks for the opportunity. First of all, let me commend you and the management for efficiently managing the company itself, such high revenues, clocking such high profits. Thank you. I have a couple of questions. Couple of questions, but some of them have been already answered for you. In terms of you entering new geographies, what sort of model do you have? Do you have a hub-and-spoke model where you will have a company-operated showroom and then leveraging it into branching out to franchisees in the trade to get these locations? Sir, we are trying here to work on both the models. Company-operated showrooms mainly currently we are thinking of that. On later stage, we will be going for a franchisee model also. Okay. What sort of risks do you foresee with so many players entering the offline market? How confident are you in achieving higher net growth? Since we are in the field from past 50 years, our management has a very vast experience. All the risk assessments has been already filtered by the management with their experience. Every time, if some kind of difficulty comes, management will take up the decision accordingly. As of now, since we have been working so long, we don't see any difficulties or any risk currently. Sure. As a small feedback, if I may, in your presentation when you said that, can you just give a clarification between the gold and the diamond product? Because I certainly understand in the bullion segment or the ornament segment, gold would be contributing much higher. But I believe diamond has much higher growth rate. Diamond is a much turnover of diamond now, diamond and gold. Gold portion currently, since we have not introduced the distribution of diamond till now, and the diamond portion of diamond contributes nearly 2% of the total sales. Oh, okay. Got it. When you mentioned about the contract manufacturing you will be meeting during Q1, can you also mention that in the presentation in the top three, how much are the contribution? If yes, or you can take it offline as well, sir. That's not a problem. Currently, sir, I am not holding it in my hand. If you require, I will provide you, sir. Sure. Okay. That is all from my end, sir. All the best going forward. Yeah. Great, sir. Thank you so much. Thank you. Ladies and gentlemen, if you wish to ask a question, you may please press R and 1. We have the next question from the line of Tara Kaur from EY. Please go ahead. Hello. Hi, this is Tara from EY. My question is, do you plan to regional diversification in current year or maybe in next 2 years? What question you are saying? Do you plan to regional diversification in current year or maybe in next 2 years? We are making a regional diversification in next 2 years. Current year, we have an operation of opening showroom, new showroom. Okay. Yes, ma'am. My question is, can we see INR 1,000 crore revenue milestone for FY 2025? Definitely, we are thinking of at least 25%-30% growth. If we achieve around 380, 20, if we add up 5%, we can surely reach INR 1,000 crores. Okay. One last question from my side. Do we have online presence? If yes, what is the contribution from this vertical? We have finalized the online presentation, we are working on it. It will be implemented very shortly along with the new showroom opening. Okay. Thank you, sir. All the best. Thank you. Thank you. Next question is from the line of Aastha from ICICI Advisors. Please go ahead. Sir, I just wanted to know that, you said that you will grow by approximately 30%-35% on year-on-year basis. When would we see the margins growing? So margin is growing since we are going to grow in the retail segment. The margins are going to increase by 9% in that. B2B segments, we are working with 3.5%. Since we have various other items, we are introducing various other items which are of higher margin. So the margins is going to increase only. Okay. Is it safe to say that we will see, right now we are at approximately 5%, so that would be going to 7%, 8% in the next two years? No, I am talking about the, since the proportion of retail is going to increase, if the proportion of retail is going to increase of 20%, then the retail is increased, then 8% margin, it will be around, what they say. So it will be 1.6% increase, suppose. Retail margin would, overall margin from 6.3% to 6.8%, increased by half a percent, 0.7%, 0.8%. Okay, got it. Yeah. Just one last question is that we have grown very fast compared to our peers, very similar peers, by 20% we have grown. So what has worked really well for us? Because I did not see our peers doing that well. I mean, some of them have grown by 20% or less than that. So what did we have done more, right? Right. The peers who have been working in South India, because South Indian gold and gold distribution is vast. The only turnover is ours here. Overall, the peers who are working in South India have done good. Okay. You can take a Sangamili, who have given them various They have done good. Okay. Thank you so much, sir. That is all from my end. Yeah. Thank you. Thank you. Next question comes from line of Ramesh from Originals FinServ Private Limited. Please go ahead. Yeah. Let me congratulate the management on the numbers what they have done. Thank you, sir. Sir, my first question will be like, with regards to inventory, what is the inventory turnover ratio of the company currently? Inventory turnover ratio is less than one. Or you can simply tell me how much time it takes for inventory to get sold out, number of months? Sir, it rotates around 2 times. Okay. If that is the case, then whatever the inflated prices from March, it does not go to the current quarter. This means the inventory growth also beyond 30% margin is in project. The projections have been laid out for that plan? Not only about the increase in price. Sharply increased. Your normal base percentage of 5%, over and above the increases in price of the overhand inventory as of March. Okay. The impact will be there very soon as we are ensuring that growth story will be included in our profit. Yeah, I understand. In our additional profit. When it comes to demand, your stock rolls over. Yeah. Obviously, the numbers would have been captured by this time. Clearly, we are ahead of that. Your realization will be higher, the profit numbers are going to be approximately higher than what you have projected. Yes, surely. Expecting. We are expecting, right. My second question is, if you look at majorly, 90% of your business is B2B and 10% is retail. Yeah. Retail, you have a margin of 3%-5%. No, no. Retail, we have a margin of around 8%-9%. Yeah, 8%-9%. Yeah. It should be 3.5, not 3%-5%. Yeah, 2%-3%, yeah. Wouldn't it be important to increase the retail distribution to have improved margins going forward? Or any strategy have you drawn? No, sir. We are working on it. We have been opening a retail store of our own in a very near future, so that we have a better margin ratio. But you don't think your geographical presence, roughly one location will play a disadvantage compared to others who are expanding phenomenally high, where you are opening up showrooms at major places? No. Currently, since our base is here from past 51 years, we have a huge goodwill and good reputed customers. In a near future, when we set up our new showroom, as such, we have an expansion plan geographically also. Okay. Secondly, as the prices are now moving, have you have any plans for hedging the prices going forward, since your gold prices are going to be upward, somewhere around $2,600 to $2,700, $2,700 somewhere around Diwali? No, sir. Our management has never evolved into hedging because every time prices have been moving to a new high only and always sustained there. We are expecting even much higher. Please, sir, don't you think so that you can focus on your margins, both at B2B level and retail level? No, sir. As of now, moving in one direction even if you see, volume is increasing only. Okay. One last question. I have seen that you have diversified the jewellery division into B2B and B2C. Yeah. Is that a forming part of your company or that has been sold off to a different entity? No, sir. Currently, it is a division in reality. Okay. We will decide it accordingly if something is required. We are doing it. Okay, great. Wish you all the success, and we hope company delivers what it has promised. Of course, we expect a dividend based on good performance very shortly. Sure, sir. Sure. Thank you so much, sir. Thank you. Wish you all the success. Yeah. Thank you. The next question is from the line of VN from Sankhya Financial. Please go ahead. Yes, thank you. Sir, if we do a comparison, a peer comparison of all the, let's say, companies, jewellery companies in the market, you seem to have outperformed the rest of the market. So, it's a testimony to all the work that you've put in growing your revenues and your financial performance. But I would like to understand which are the companies you really recognize, respect as peers that you would like to be compared against, number one. And which are the firms, and therefore, the ones that you don't name, they will not kind of consider in the peer set. This is not to do with the fame of the company, the size of the company in terms of revenue, but in terms of the quality of their work and the quality of their management, which are the kind of peer companies you would like to be compared against? Thank you. Sir, we do not take any specific company. Whoever is doing good in whatever segment, we try to learn good things from each and everybody learns from me. Since our management is also vast and huge experience, we have worked based on their experience only. Yeah. Can you name one or two peers or a few peers that you can look at, just to know from a relative performance? Of course, you have outperformed them, just so that we have a playing field in which to compare ourselves. On this platform, I cannot say the names of any of the companies, sir. We will not tell any names. Yeah. We will speak on our own company. Fine. Okay. My other question would be, when you look at your own business and the prospects in the budget, how would you want to look at on an ongoing basis and saying if you can even remove yourself from the picture, let's say you are part of the company and you're sitting in the company, what would be the good metrics by which anyone should measure the performance of a jewellery firm like yours? Like some of the comments made by Ankit right now, in terms of diversification, in terms of diversifying your B2B and your B2C mix, in terms of right now you're outsourcing your design and manufacturing, insourcing any of it, would that be beneficial to you in terms of providing more stability to the company's performance on an ongoing basis? I just wanted to understand some of the metrics by which you would like to see the progress of your own company, and then me being someone who will follow your company, we'll understand this also. Thank you. Yeah, sure, sir. That is what, since we have an export division, we have artisans all over India, we are not limited or restricted to being as one single group because we want to have a throughput in time. Even then, since quality, margin, after quality, we are still thinking of implementing our own manufacturing unit very shortly. Regarding geographical expansion, after opening up our new showroom, we surely have a program of expanding geographically for at least 3-4 showrooms in coming 2-3 years. Okay. In terms of, you already mentioned the B2C and the B2B mix, which is now 10-90, B2C to B2B. Yeah. Where would you like to see that in the next, say, 2-3 years? Because B2C provides you higher margin, and one of the things probably for the company, this mostly the increase in our results. Only probably area of the significant improvement that we can see around the corner is in improving your EPS, which has not grown in tandem with growth in profit bottom line. Keeping all that in mind, do you think a quick increase in your diversification to B2C from B2B will help in that? If so, in what timeframe do you see B2C increasing to what percentage and in what timeframe? Sir, since we have an intention that in coming years, we will be showrooming ourselves, at least the B2C proportion should be at least 50% of the whole sale value, whole top line. The margin ratio will also be obviously higher because B2C is doing things. That completes. One more thing, regarding EPS, I want to explain you one thing. As on March 31, the number of shares were less compared to as of date, number of shares have increased. Correct, yes. Just to sum it up, geographical expansion, 24 locations in two years. B2C, 25% in two years. Then in-house manufacturing that you are planning in what timeframe, sir? In-house manufacturing, we cannot specify the timing, but we are working on it. The mainly we are going to expand our own manufacturing only for the products which are just in huge requirement, which are in large quantum, we are going to do. Right now it is 100% manufacturing is outsourced, design is also outsourced. But if you get a sense for what percentage would you insource and in what timeframe, for 3 years, what percentage of design and what percentage of manufacturing would be insourced? It will just give us a measure that you are taking some actions. Then you can think of that in coming 2 years, at least 20% of production should be of in-house. Very nice. And design, sir? As obviously, it is an own design line setup. When we have a manufacturing unit, we have an internal designer set up inside. Oh, okay. Also, we are doing the public designs and specific manufacturing. Very nice. So you also use Anyway, so I think when you bring in, when you in-house or insource design, then you will also look at automating some of this and digitizing some of this also. We are specializing in designing, we are deciding and all the mechanisms of manufacturing a quality product, that all will be important. We are specialized in curating of the products. The same designs are made in Coimbatore and then sent to Rajkot, and then it is assembled there. So it makes a huge difference in the outcome. Very nice, sir. It is very nice to have a conversation where you are open for a lot of ideas and you have planned all these ideas also. Thank you. Thank you so much. Thank you. The next question is from the line of Smita Deshmukh from Sadhguru Enterprises. Please go ahead. Hello, hi, Smita here. Hello. My question is, though not compulsory, are we planning to report quarterly results going forward? Yeah, we are planning to have and we are working on the plan to give our results on quarterly basis. Thank you. Thank you. The next question is from the line of Raj Sanghvi, an individual investor. Please go ahead. Hi, am I audible? Yes, sir. Yeah, hi. Thanks for the opportunity and congratulations on a very good set of numbers. So, sir, just would like to point out there was a management interview recently, like a month or two prior, where Mr. Vikas Mehta had told that we are planning to 4x our topline in the next four years. Which translates to roughly around 30% to 42% of revenue growth in topline. So, like right now you just mentioned around 25% to 30%. So are we like underestimating or could we grow on the right line? It's 35% in last year's growth. Sorry, how much? 35%? Yeah. Okay, 35%. I diversified on a quantum basis. Okay. Value-wise, you can see on a volume basis, it will be 30%. Okay, got it. So on the volume basis, we are targeting around 35%, correct? Yes, sir. Whatever is increase in the quantum, that will be additional. Yes, sir. Got it. Thank you. My second question was with respect to margin. I understand when our product mix, I mean, when B2C segment increases, our overall margin would improve. But specifically for the B2B segment, we have mentioned 3%-5% margin. I mean, is it sustainable going forward in your opinion? Or, I mean, overall margin would definitely improve because of the mix. But B2B segment, would it be sustainable for the coming two years? Yes, sir, it is sustainable. Because we have been working on the creation of the product as well. So, it will continue to be a big factor of our business. Okay, sir. Thank you, sir. Right, sir. Thank you. The next question is from the line of Manisha Bhardwaj, an individual investor. Please go ahead. Hi, am I audible? Yes, ma'am. My question is, can you slide on any of the revenue breakup, say, like gold, diamond, or other items? Whether it is in percentage-wise or value-wise? 90% of our sales is B2B. Okay. B2C is 10%. Diamond proportion is around 2% in overall sales. Okay. For the upcoming years, I want to know which segment you are going to put the pressure? We are going to expand on the diamond segment and retail segment. Diamond and retail segment. Okay, thank you so much. Now, gold, all exclusive items which are providing higher range of margins. That's the exclusivity of the product. We are working on it. For the new showroom, we are going to have a huge collection of diamonds. All right. Okay, thank you so much. Thank you. Thank you. Ladies and gentlemen, to ask a question, please press star and one. Participants who wish to ask questions, kindly press star and one at this time. Ladies and gentlemen, we have no further questions. I would now like to hand the conference over to Ms. Preeti Bhardwaj for closing comments. Over to you, ma'am. Thank you, everyone, for joining the conference call of Khazanchi Jewellers Limited. If you have any queries, you can write to us at results@kirinadvisors.com. Once again, thank you, everyone, for joining the conference call. Thank you so much. Thank you so much, everyone. Thank you. Thank you. On behalf of Kirin Advisors, this concludes this conference. Thank you all for joining us. You may now disconnect.