Ladies and gentlemen, you are connected to International Gemological Institute India Limited conference call. Please stay connected. The call will begin shortly. Ladies and gentlemen, good day and welcome to International Gemological Institute India Limited Q3 and 9M CY2025 earnings conference call hosted by MUFG Intime. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumeet Khetan from MUFG Intime. Thank you. And over to you, sir.
Good evening everyone. I welcome you all to the earnings conference call to discuss quarter 3 and 9 months CY2025 results of International Gemmological Institute (India) Limited. To discuss the results we have from the management, Mr. Tehmasp Printer, Managing Director and CEO, and Mr. Eashwar Iyer, CFO. They will take you through the results and the business performance after which we will proceed for Q and A session. Before we proceed with the call, I would like to mention that some of the statements made in today's call may be forward looking in nature and may involve risk and uncertainties. For more details, kindly refer to the investor presentation and the other filings that can be found on the company's website. With this, now I hand over the call to the management for their opening remarks. Thank you. Over to you sir.
Thank you so much. Good evening ladies and gentlemen. I'd like to welcome you all to the quarter three nine months year 2025 earnings call. I trust that everyone has had a chance to review our financials and investor presentations which have been made available on both the stock exchanges as well as on our company website. It's a pleasure to connect with you all and share insights into our business strategy and outlook. I'm happy to report that the company has seen strong growth momentum across all its business segments in the quarter three of 2025 as compared to the quarter three of 2024.
The business on a console basis has done exceptionally well with a 21% growth in revenues from operations, 20% growth in EBITDA with nearly 3.5 million reports in the quarter 3 of 2025, the company has delivered a strong volume growth of 26% over the previous year. The business has been strong, has shown strong revenue growth across its segments. LGD is growing at 24%, natural diamonds growing at 29% as per the previous year and for the nine month ended in September 2025. The business has delivered revenue from operations growth of 15% and EBITDA growth of 22%. Volumes over this period has grown by 25% with a strong performance across all our business segments. Natural diamonds, lab grown diamonds, jewelry and colored stones. Over the last six months the industry has seen various macroeconomic challenges.
There has been a significant policy disruption coupled with steep increases in prices of gold and silver. Despite these headwinds, the company continues to deliver strong revenue growth across all its categories. This quarter has seen significant action on the brand building front with IGI being one of the sponsors for the Women's World Cup Cricket team. This has been our first attempt to leverage our brand with a global tournament and build a connect with the consumers directly. By the way, you all are aware that the World Cup Women's Cricket has been won by India. Kudos to our India team India Women. Our company has also participated through our CSR activities with the industry by organizing an eye check camp at the Bharat Diamond Bourse within the first day. Our registrations have shown 8,000 registration on the first day.
It is proposed to be a 40 day ICAM providing free eye checkups to the members of the Bourse. We have received some excellent feedback during the course of this program. Overall, we are confident of maintaining US growth momentum and delivering the revenue and the EBITDA growth this year. In line with our guidance indicated at the beginning of the year, we remain committed to enabling growth for our partners, delivering long term value to all our stakeholders and with that I now ask Eashwar Iyer, our CFO, to take you through the financials and operational performance for the quarter. Eashwar, over to you.
Thank you, Tehmasp, and good evening everyone, and thank you for joining today's conference call. As Tehmasp has mentioned, we are delighted to have you all. As many of you know, our company follows a January to December reporting cycle, and we are excited to present the results for the third quarter of 2025. I will start with an update of quarter three results before providing an update of the nine months performance on a consolidated group performance level. I'm happy to report that the group's consolidated business has maintained strong growth momentum in quarter three 2025 in terms of revenue certification. Income from the current quarter stood at INR 294 crore, which represented a 20% growth over the same time last year. Corresponding, the volume growth during this period was at 26%.
This was primarily driven by some strong revenue growth momentum across all our segments, namely 29% growth in natural diamonds, 24% in lab-grown diamonds, and 26% growth in LGD jewelry. Total revenues for the quarter stood at INR 304 crores, registering a growth of 21%. In terms of reported volumes during the quarter, we delivered 3.45 million reports compared to 2.73 million reports in quarter three 2024, registering a growth of 26%. Driven by strong revenue performance, we delivered a PAT of INR 130 crores, that's growing 18% compared to the same time last year. PAT margins stood at 43% for the quarter. EBITDA reported at INR 176 crores, reflecting a growth of 20% compared to the previous year. EBITDA margin standing at 58%.
Coming to the nine month update on the consolidated group performance for this period we delivered 9.6 million reports compared to 7.7 million reports for the nine months of 2024 which marking a robust year-on-year growth of 25%. In terms of revenue certification income stood at INR 883 crore growing at 16%. This was driven by strong growth across all key segments. On a nine month period, LGD is growing 18%, Natural Diamonds is growing 14% and LGD Jewelry is growing 32%. Total revenue from operations for the nine months stood at INR 909 crore registering a growth of 15% driven by strong revenue performance. We delivered a PAT of INR 397 crore which is growing 27%. PAT margins stood at 44%. It is up 390 basis points year-on-year. EBITDA reported at INR 545 crore reflecting a year-on-year growth of 22%.
EBITDA margin stood at 60% for this nine months. It's up 320 basis points year-on-year. Based on the strong momentum that we have seen over the last three quarters, we remain committed to delivering a strong full year performance in line with the guidance which was over 15% revenue growth and 20% EBITDA growth that we had indicated at the beginning of this year. With this I conclude my remarks and I open the floor for any questions. Thank you very much.
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 touch tone 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. We have first question from Harit Kapoor from Investec. Please go ahead.
Hi, good evening. Firstly, congratulations on an excellent result in a fairly challenging environment. I just had two or three questions. One was on this realization decline of about 5%. I think you mentioned in the presentation also that it was largely product mix led. If you look at the performance of, say, natural diamonds and lab-grown diamonds, which have grown 29% and 24%, you know, it's typically the jewelry segments which are slightly weaker on, you know, when they grow faster, the mix kind of deteriorates. I just wanted to understand, you know. Whether there is a like to like pricing decline also in the quarter and if so how much that is. That would be my first question.
Okay. Harit, I think very relevant question that you've asked. What we have seen during the quarter is a very high incidence of smaller size, smaller carat size, natural diamond and lab grown jewelry coming in for certification. That is the reason why you see that despite 29% increase in natural diamond and lab grown diamond you are seeing a slight decline in ASP, again as driven purely by a change in the carat size that we are currently receiving.
Got it. There is nothing almost entirely. Yes.
As we have been mentioning in the last couple of calls as well, I think there hasn't been any changes to pricing. We've seen a lot of stability in pricing over the last three, four quarters. This is more in terms of segment mix and driven by within the segment the product size mix.
Very, very clear, very clear. The second question was on, you know, the trends through the quarter. So, you know, there was a, you know, some of the checks had suggested that, you know, maybe, you know, pre the tariff there would have been a very sharp pickup in growth as. Especially. You know, of products going into the U.S., you know, as they wanted to kind of beat the tariff deadline, and then post that it would have been a bit slower. Just wanted your assessment of how it's panned out through this period of time. It's been fairly consistent, or it's been a bit lumpy, and just wanted your thoughts on that.
The growth, I think Harit, our volumes over the last three quarters have been more or less consistent. I'll just read out some numbers which you know has been present in the public domain. Quarter one we did some 3.1 million reports. Quarter two was 3.03 and in this quarter it's 3.45 million reports. From a volume standpoint we have been, you know, it's the, we haven't seen any massive ups or lows as far as consistency of grading is concerned. Obviously the tariffs kicked in during the later half of the quarter which also coincided with the Diwali period in India. We have seen some significant ramp up of demand driven by the Diwali quarter impact as well, as far as jewelry is concerned, etc. Having said that, obviously the tariffs have, are in as we speak, the tariffs are on.
We continue to evaluate for any supply chain changes that may be occurring. Obviously with IGI having its presence in a lot of geographies, it is possible that in case there is any shift from a supply chain standpoint, I think we are well positioned to leverage that in terms of ramping up capacity in some of the other locations, be it Dubai or, you know, Hong Kong or Turkey, etc. From that standpoint we are keeping our eyes and ears open in case if there are any dynamic changes, we would be obviously ensuring that we are up to the task in terms of ramping up our capacities elsewhere.
Just to add to what Eashwar said, this is Printer here. Yes, our domestic market consumption is extremely strong and we are very predominant in the domestic sector. Tariff has virtually no significant or no major, major impact, no impact at all under the domestic sector. From that way the domestic sector has really ramped up and especially during the Diwali season, we have done exceptionally well, as well as you can see, in spite of the numerous headwinds that we have been facing and challenging conditions that we have been facing in the diamond industry.
Got it. The last bit is, you know, if you look at, you know, your guidance, you've hit your nine month number is in line with your revenue kind of guidance. You know, given that you've spoken about maintaining full year guidance, it implies that, you know, Q4 or the October to December quarter should also be reasonably okay. Is that a visibility that you have today? That it should, you know, the early part of the quarter which has gone by, the first month has not shown any significant difference. Hence, you know, broadly you should be in line with that 15% revenue guidance.
Yes, that's for sure. Yeah.
Great. I'll get back. Thank you very much. Thank you.
Thank you.
Thank you. Next question is from Harish Advani from Axis Capital. Please go ahead.
Hi, thank you for taking my question. My first question was on the international business. While we continue to see some stress out there with growth at about 6% in revenue terms, within this, how should we look at it? How much of an impact are you seeing from tariff in some of these geographies and which are the markets which are doing better and which are the markets which are seeing some stress? If you could tell me about this in the first 60 minutes.
I think in line with what we have discussed in the previous two quarters, the trends in the Netherlands holding which has Dubai and China under it, they are continuing to perform extremely strong. Obviously we have had headwinds in both the European market as well as U.S. market. That has not changed significantly in quarter three. Most of the performance in the subsidiaries is driven by some excellent performance in the Middle East and in the China market.
Okay, just a follow up on that. When you say doing significantly better, can you kind of quantify to a certain extent like 1.5x or 2x more than what the overall reporting is for the international?
No. See, the Netherlands business is growing at around 20% revenues. We have seen softness in the Belgium and the U.S. entity. That is the way it stands. It remained moderately or less consistent with the earlier two quarters as well.
Okay, got it, got it. A similar question on India as the earlier participant. While we knew that tariff was going to be increased from a certain date, did we see anything on the LGD part of it in terms of our customers asking for any ASP related cuts or that continues to be at the current pricing as the current quarter or the last quarter?
Yeah. In line with whatever we just mentioned to the earlier question, we are seeing a lot of stability in pricing. There has not been any significant change in this quarter.
Yes, I mean this LGD in fact has helped the Daventer to keep their factories running. On the domestic demand there's pretty evident as we have already related and overall the impact of tariff on certification is quite insignificant. As you can see from our results, we really haven't made any tariff really hasn't made any impact on our revenues. In fact it has increased our revenues on the domestic and other markets.
Okay, perfect. There would be typically those seasonal related vagaries which happen, but nothing compare. Okay, thank you. I'll come back in the queue for follow ups.
Thank you.
Thank you. Participants, if you wish to ask a question, you may press star and one. Next question is from Smith Gala from RSPN Ventures. Please go ahead.
Yeah, so my question is realization for report have dropped more than 5% at consolid level with the mix more or less remaining the same. India, which is almost 75% of the business, showed 2% increase in realization. Why has there been a significant fall in operations outside India and how do you see it going forward?
See, I think that is more related to a geographical mix as I mentioned. Normally, U.S. and European markets have a higher realization and that has not been doing too well. The markets of Middle East, for example, are more jewelry driven and China again is a large element of our revenues coming from lab grown. I think it is more a geographical mix which is causing that sort of flux at the console level. As you rightly mentioned, the India ASP for the quarter has seen a 2% increase over the same time last year. Pretty strong performance of India is what is carrying through the group for us at the moment.
Got it, sir. Sir, in terms of you mentioned. The European business and the U.S. business were facing a bit of pricing pressure. How much of our international business is contributed by these two geographies?
See at the moment India contributes around 75% of the group's revenue. I did not say there is pricing pressure there, I am just saying it is geographical mix. Our realizations in Europe and U.S. is slightly higher than the other geographies. That is the reason why you see the mix shift across geographies causing a slight blip at the console level despite the fact that India ASP is up by 2%.
No, what I was saying was that India, which is 75% of our business, is up 2% and we're down 5% at a console level. At least one or two geographies must be really bleeding to cause a 5% dip at the console level. I'm just wondering if you've mentioned Europe and U.S., are these two geographies? How much of our business is coming from these two geographies, which are from the outside India business?
The U.S. business will contribute close to 12% of our revenues and Netherlands another 12.5% of our.
Got it, sir, got it. Just one minor data keeping question. In terms of the LGD certifying, say out of 100 LGDs, how many of them are bound for export?
I mean we don't track this. No. But majority of this portion is destined to the U.S. because U.S. has been the first adoption of LGs in the, in the world, you know and LG, LG diamonds have actually more or less established itself in the U.S. market with almost, you know like last year 50% of all bridles were all LG. I can just give you a rough estimate but otherwise I. There are no real forthcoming figures from the breakup point of view.
Got it, got it. I'll join back in the queue. Congratulations on a great set of. Numbers and thank you.
Thank you so much.
Thank you very much. Next question is from Rajesh Jain from RK Capital. Go ahead, please.
Thanks for the opportunity. I had three questions. If you can just tell what has been the impact of U.S. tariffs in your international business? As in, if the tariffs were not there, then how would the performance have been, to what extent it would have improved?
See, tariff is a reality right now, you know, so we have to engage with that. What, as I said earlier, tariff has not really played a significant impact on the certification business, you understand? This is where. I mean, and no, most of our, quite a lot of our turnover is from the Indian continent. We are very strong on the Indian continent. Tariff plays no, no role or no impact on the domestic market.
Yeah, so, but I was asking about the international market.
Yeah, so that's what I'm saying. Tariff from the international market, like Eashwar just told you, it's 12% in the U.S. and 12% in Europe, you know, so that has been a little affected, but not too much from a certification point of view. Tariff has really been quite insignificant even in the international market.
Okay, so you're saying that tariff or not tariff, I mean, the U.S. and Netherlands, maybe only a few bits or a few percentage here and there, it would have got the impact.
Yes, that's correct.
I just wanted to know, like, is the business coming, as far as India is concerned, is the business coming from mainly the large chain jewelry stores or you are also getting the business from smaller jewelry stores? Because I spoke to three, four jewelry stores and all of them were not so keen on getting certification for the LGD diamonds. But you mentioned among the largest stores, nine to nine out of 10 chain stores are your customers. So is there a perception difference between the larger stores and the smaller stores?
Not really. See, the thing is the chain stores have a number of stores, okay? They have a cumulative effect. The independents and the stores across the country are playing as significant or in fact their role is even more significant on an overall basis. You understand, we supply, we cater to the entire supply chain in the gem and jewelry industry, you know, right. From the manufacturer to the wholesaler, to the trader, to the manufacturing of the jeweler, to the jewelers, to the retail shops, you know, online, offline. We are holistically available for all the stakeholders in the gem and jewelry sector.
Okay, so you are saying that the demand is equally strong from the smaller and independent one shop kind of stores. The demand is equally strong from them also?
Yes. Actually this, there is nothing called smaller. I mean in that locality. You know, that guy is big. I mean he may not be in Bombay, but if he's sitting in Raipur, he's a big guy.
Okay. Considering your product mix in this quarter, which, so although your volume growth has been really good, but it has led to a comparatively lesser revenue growth because of the product mix on a full year basis. Like what kind of blended product mix? I mean, so if there was supposed to be, let's say, 20% increase in volume on a full year basis, so can it lead to a 20% increase in revenue or the revenue is likely to be always lagging the volume growth?
See, it's okay. I think this we have discussed in the last two quarters. Obviously the first quarter we have, we were cycling a large decline of ASP of last year. After last in the last two quarters, our revenue growth and the revenue growth versus the volume growth, we more or less the same, give or take a couple of percentage points here or there, I think. That way there's a lot of stability in phasing. A little bit of big interplay can happen, but it's not going to be very significant.
Okay, when can we expect your international subsidiaries to contribute meaningfully to the bottom line?
We need to realize there are a couple of things to keep in context that 9 out of 10 stones which get polished and manufactured and polished happens here in India. India is the hub as far as the global supply chain is concerned. As far as polished stones go, the important thing for us is the U.S. market from a retail standpoint is the largest consumer market in the world with over 50% of the global demand going into the U.S., so our operations in the U.S. and Europe have a dual role to play. We have our own laboratories there which do certification that comes into those labs.
The larger element for us is to ensure that these offices are engaging with the large retailers there to influence them to ask the manufacturers here in India to seek for IGI certification rather than go to any other lab. I think we have to see that in the total context rather than just saying that how can we get. Of course, we also want to have the U.S. business to scale up at a much faster rate and we are making significant leadership investments and interventions there in the U.S., but we need to keep that in context in terms of what role the other businesses play at least in Europe and the US. Apart from just being certifying goods that come in, they also have this huge sales and marketing arms that enables to influence the manufacturers here to seek for IGI certificates. I think we have to see that in the totality.
Okay, my last question. So how is.
I would request you to rejoin the queue for a follow-up question.
Okay, sure. Thank you.
Participants, if you wish to ask a question, you may press star and one. Next question is from Sheela Rathi from Morgan Stanley. Please go ahead.
Yeah, thanks for taking my question. My first question was with respect to the volume growth. I mean the volume growth for the company has been in double digits through the year. Earlier the expectation for the industry was that the industry volume growth for the next five years would be about 5%-10%. Just want to get a sense on how the industry growth has been or we have been just out of the park with respect to our volume growth trends and if we have some sense on what is the overall penetration of certification now versus say where it was in 2023.
Okay, very difficult questions that you've asked, Sheela, but let me attempt. Okay, see, I think for the quarter we've delivered some 26% growth and nine months volume growth is around 25%. Obviously, there is a big element of play with LGD. The good thing, and I'm trying to correlate this with the question that you asked on market share, is this natural diamond growth. This natural diamond for us this quarter grew 29% at the group level and YTD growth is 14%. This is a significant growth which we haven't seen in the past. Obviously, there is a little bit of market share gains that we are seeing in this segment for sure. We need to relook at what is the penetration, etc., which normally is an annual exercise that we conduct.
When we were filing for the during the DRHP time, I think we had estimated some 65%-70% to be the penetration as far as certification goes into the versus the overall market. How that needle has moved is something that is not readily available to us. From a company standpoint, I think the strong performance in Hindi probably correlates to the fact that we are starting to gain some share as far as natural diamond certification is concerned.
That would apply primarily for India, right?
India plus majority would be in India.
It would be across the globe.
Yeah.
Okay. So fair to say that the competitive landscape is very much stable for us. In fact, it is in favor for us at this point of time.
Yep.
Thank you. Yes.
Okay. My second and final question is with respect to, you know, somewhere I heard in the earlier response that we are now having more low carat diamonds. Is that, and that was the reason why realizations are also lower. Is it to do with natural diamonds or lab-grown diamonds where we are doing certain diamonds, natural diamonds? Hitherto the mix of less than, you know, I mean, the mix was more. More than 3 carat, sorry, more than 3 carat diamonds was about 5% for us from a mix perspective. Now how has that mix changed now? I mean, it's more moving towards less than 3 carat or how is it? If you could just quantify that, it's.
Not on the single solitaire basis. What we are speaking about is under jewelry, earlier the jewelry piece used to carry say one and a half carat diamonds. Now this average jewelry piece is carrying about a D carat plus, you understand. The size of the jewelry piece where diamonds are concerned has somewhat been decreased but the quantities have increased, you know, so that is the mix that you are talking about. It is not a lower caratage in the loose stones. In the loose, loose diamonds that remains more or less the same.
Just one more question here with respect to, you know, Tehmasp, you also talked about, you know, we being a, you know, large part of our customer base is domestic. I just want to understand domestic, cater to the domestic market. Has the profile of our customer base changed in the last 12 months? I mean, have there been new customer additions? Because, you know, there are a lot of D2C players getting into the LGD space. If there is any change, we have seen.
No, so what we see changes, I mean going into the second and the third tier cities. We are gaining grounds there. We are going inroads into India and also, I mean the LGD jewelry space is also rapidly increasing even in India. These are the two aspects that we can see where our growth is coming from.
All right, thank you. Thank you, Eashwar. Thank you, Tehmasp.
Thank you. Thank you Sheela.
Thank you very much. Participants, if you wish to ask a question, you may press star and one. Next question is from Rajesh Jain from RK Capital. Go ahead please.
Yeah, thanks. I had two more questions. One is that how has been the trend so far in October and November compared to the previous quarter?
I think that is this early days. We would not want to, you know, give you something forward looking etc specifically for the quarter. As we have indicated, we are confident of delivering the 15% revenue growth and 20% EBITDA growth which we had, which was our guidance at the beginning of the year. We are not seeing any difference in the business as we speak.
Okay. On a long term basis also, do you think this same 15% revenue and 20% EBITDA is sustainable beyond this financial year?
See again, the industry is obviously going through a major shift with introduction of lab grown diamonds. This has played out over the last eight, nine quarters in terms of lab grown actually propelling the industry forward. We believe that this is just the beginning of the trend and this lab grown evolution is just starting on. I do not think there should be anything that should be a bottleneck over the next three to four years as far as this industry for lab grown is concerned. The long term outlook for us is pretty positive in terms of what we will therefore, I think, right, the industry growth, so to say, over the next three to four years.
Okay. My other question is can you give a sense of the Netherlands market? So in the while answering the previous question, you spoke of the U.S. market and your presence and strategy there. Can you tell something about Netherlands market and your subsidiary operations there?
In Netherlands we have five, six businesses which roll up under the Netherlands holding company. We have markets of Hong Kong, Thailand, Middle East, China, and Turkey which is part of this group. For example, Dubai and Middle East is more a jewelry market. China is more lab grown. Hong Kong and Thailand is more natural diamond jewelry. Each geography has its own strengths in terms of which segment they play in. I presume I have answered your question.
Are you also doing any expansions in terms of your lab presence in other fast growing markets next to China or other countries? Just some color on that.
We have two labs in China, we have a couple of labs in Dubai. We expanded with an additional lab in Dubai this year. We continue to scout the market and as and when we see that there are opportunities, nothing will prevent us from expanding in existing geographies as well.
Okay, thank you.
Thank you very much participants. I would remind you all, if you wish to ask a question, you may press star and one. Next question is from Smith Gala from RSPN Ventures. Please go ahead.
Thank you for the follow up. My next question was like we have a lot of cash reserves, approximately INR 400 crore in the balance sheet and we going to generate abruptly INR 500 crore of PAT. So any plans to utilize that?
Okay. At the moment I think the company is sitting on a very strong cash position and as we have articulated in the past, some of this will get paid as dividends. Obviously we are also keeping our eyes open in terms of opportunities for acquisitions, etc. We will see how that pans out. At the moment we have no specific information to share to the broader group.
Sure. That was all from my side.
Thank you, Smith.
Thank you. Next question is from Rahul Picha from Multi Act PMS. Please go ahead.
Yeah, thanks for the opportunity. My question is on the guidance of 15% revenue growth and EBITDA growth of 20%. When you look at nine months number, we have delivered 15% revenue growth and EBITDA growth of around 22% odd. When we look at the initial commentary on the advertisement spend that we have done in Women's World Cup, do we expect Q4 margins to be lower because of that versus our nine month average?
Rahul, I think obviously we are delivering much better than what it is. We are, what we are saying is there is no change to the guidance that we had given at the beginning of the year. We are confident of meeting it or probably surpassing it by a few percentage points.
We are also living up to our brand building exercise. You know this was a great opportunity. Do not forget that our women won the World Cup, which is a tremendous achievement for the country as well as for IGI having sponsored the women's camp.
Okay, thanks. That's it from us.
Thank you. Next question is from Sameer Ray, an investor. Please go ahead.
Thank you for the opportunity and congratulations. To the management for nice results. I just wanted to know, see the. Picture in your last how the things are going as in regards to the tariff that has been imposed on India and if this tariff remains there, how. We are looking to the, I mean, exports from India to U.S.A. in quarter. One and quarter two next year.
Yeah. Hi Sameer. I think we've answered that question earlier on the call. We haven't seen any significant disruptions from the tariff announcements, so we are keeping our fingers crossed in terms of how that pans out. Obviously there is a lot of discussion that is going on between the two governments, and we are hoping that things follow in place over the next month or so. As I mentioned, with our cross geographical presence, IGI is at least well positioned to leverage on some of the benefits that may therefore accrue because certain countries are at a lower tariff regime. We'll see how that pans out. At the moment we are not seeing any disruptions to our business.
Okay. Thank you, Iyer.
Thank you very much. Next question is from Angad from Sameeksha Capital. Please go ahead.
Hi. Thank you for the opportunity and congratulations for the good set of results. One small clarification. In December our parent company had created a pledge in the promoter entity. Just wanted to understand, is it still? There, or have we?
I think that has been clarified. You can look at our latest clarification that they have given both to BSE as well as NSE. There is absolutely no pledge on IGI shares by the parent entity.
Got it. Thank you so much.
Thank you. Next question is from Jash Shah from OHM Portfolio. Please go ahead.
Hi. Thanks for the opportunity. Just a clarification. This World Cup sponsor expenses, are they already in the P and L? The nine months or you would expect. Something to come in even in the. In the following quarters.
It's been split between the two quarters actually. Quantify the amount. It's not significant. I don't think it's going to be. It'll move the needle as far as.
This is more a brand building exercise.
Okay.
There is no jump up in the overall percentage. That's right.
No, not at all. In fact, we have a jump up in our branding exercise, which I think.
I totally endorse and agree. Thank you very much.
Just one broad question. Given the strong enthusiasm and FOMO for gold and silver, are you seeing any change in the pattern where women jewelry is moving more towards gold and silver and less to diamonds than NGD or? You think everything gains in the moment?
Jash, I don't have a crystal ball.
No, no. I'm talking about how you are seeing the expenses and how you are.
I tell you what, whenever there is a challenge, you know we have an innovative solution. We rely on that. We rely on our expertise, we rely on our innovations. We rely on our practicality to combat any such challenges that we receive. We will continue to do that. As you have seen, you know, in the last three quarters.
Right. Yours is a pull product and. Not really a push product, right. It's like if there is a. Jewelry demand, then they need certification. I'm just saying that whether the jewelry demand. Are you seeing that it is shifting more to gold and silver than on diamond? Or you think the studded one is. Going equally strong and hence you are seeing equally strong.
We don't see any significant change in that.
Okay, thank you very much and best of luck.
Thank you. Next question is from Chetan Singh, an investor. Please go ahead.
Can you hear me?
Yes, we can hear you.
I have one question regarding this DNA expense. We've got sharp increase in this quarter and the other expense also. What caused this expense to rise so much in this quarter?
Okay. I think as we are expanding our capacity etc, I think there's been a lot more fixed assets that got employed in the company. I think the depreciation amortization is consequent to that. If you look at our other expenses over the last three quarters, it has more or less been remain. It's been stable at around INR 50 crore-INR 56 crore. I think there's nothing significantly that has changed over the last nine months as far as these two lines are concerned. I think D&A expense was some INR 10 crore. It's become some INR 11 crore. I think obviously that's because we are expanding our operations as well. There is some fixed assets that have got added in.
Okay. Due to that I think there is some percentage point decrease in PAT margins I think. Right. So at what level do you see this PAT margin to stabilize?
I think delivering consistently between 40%-45% I think. I don't think there's going to be any significant change there. It's been more or less stable.
Okay, thank you.
Thank you ladies and gentlemen. We will take that as our last question for the day. I now hand the conference over to management for closing comments.
Thank you everybody for taking your time. It's a pleasure as always to interact with all of you and we look forward to seeing you all when we announce our full year results in probably a couple of months time. Thank you very much for the call.
Thank you so much.
You're welcome sir. On behalf of International Gemological Institute India Limited that concludes this conference call. Thank you for joining us. You may now disconnect your lines.