GOLDIAM reports an exceptional FY2022 performance, surpasses PAT of INR 1bn

  • Adjusted PAT of INR 1.1bn in FY22, Record-high Growth of 106% YoY
  • Remarkable Revenue Growth of 72% YoY, and Exceptional EBITDA growth of 81% YoY for FY22
  • Utilised INR 1.3bn over the last five years for distributing dividends and buyback
  • Q4FY22 PAT higher by 148% YoY, defying global macro headwinds and challenges 

MUMBAI, India, May 20, 2022 /PRNewswire/ — Goldiam International Ltd. (Goldiam), an integrated manufacturer and supplier of fine diamond jewellery to leading retailers and wholesalers in the USA and Europe, has announced its results for the quarter and year ended on March 31, 2022.

FY22 has been an outstanding year for the Company, both on the Profitability and Scalability front. The Company in FY19 after setting target for PAT of INR 1bn in three years, posted record-high profits of more than INR 1.1bn in FY22  and further scaled up its Lab-Grown diamond jewellery offerings. The Company’s growth for FY22 is testimony to the Company’s continued efforts toward fortifying its strengths in design capabilities, backwards-integrated Lab-Grown diamonds, and its omnichannel led digital initiatives. The Company’s constant aim at pursuing RoE lucrative business has been reaping benefits with consistent improvement over the years. Overall RoE for FY22 stands at 22% (FY21 15%) from 6% in FY18. The company’s capital allocation strategy remains quite buoyant over the years as a result its RoCE (ex-cash) has improved consistently from 10.6% in FY18 to 60% in FY22.

Financial Highlights (Consolidated) – Q4 & FY22

Particulars (INR in Mn)

Q4FY22

Q4FY21

YoY

FY22

FY21

YoY

Revenue

1,585

1,317

20%

7,124

4,132

72%

EBITDA

337

236

43%

1,547

853

81%

EBITDA margin

21.3%

17.9%

338 bps

21.7%

20.6%

107 bps

*Adj. PAT

228

92

148%

1060

514

106%

*Adj. PAT excluding exceptional, FY21 had an exceptional gain of INR 157.10 mn due to a one-time, non-business gain on the sale of property.

  • Consolidated Revenue during FY22 grew sharply by 72% YoY to INR 7,124 million, due to overall improved consumer sentiments during both festive and non-festive periods, and backed by higher US Jewellery demand from Retailers & End Customers.
  • Consolidated EBITDA for FY22 surged steeply by 81% YoY to INR 1,547 million, and EBITDA margins stood at a healthy 21.7%. Goldiam continues to benefit from its strategy of selling Lab-Grown Diamond jewellery backed by captive Lab-Grown diamonds growing, presence across the value chain, and its omnichannel selling strength. The Company’s agile and efficient raw material procurement strategy has also helped maintain its overall margin profile, despite inflation in mined diamond prices globally. The Company has also successfully been able to pass on price increases to its clients as on current date.

Demand for Lab-Grown diamonds remains buoyant, propelling Goldiam to enhance capacity further: Goldiam International via its subsidiary Eco-Friendly Diamonds LLP (EDL) has been investing INR 100 mn in enhancing its current in-house Lab-Grown Diamonds capacity by 40%. The CAPEX mentioned above will be completed by May, 2022. Considering the buoyant global demand scenario & future outlook for Lab-Grown diamond jewellery, the management has been considering further increasing its capacity beyond the capacities coming up in May, 2022.

Lab-Grown Diamond & Jewellery business enhancing overall margin profile: Post its acquisition of 88% in Eco-Friendly Diamonds LLP (EDL), the Company has been aggressively improving the quality of its offerings. Along with a focus on larger caratage diamonds, the Company has focused on integrating these diamonds into its jewellery distribution thereby securing captive consumption in a rapidly growing segment of the industry. Average ASP of Lab-Grown diamond jewellery stands sustainably, at a premium of 120% over Mined diamond jewellery for the Company. Lab-Grown Diamonds and Lab-Grown Diamond jewellery account for 20% of the Company’s revenue in FY22 against under 5% for the jewellery export industry.

The Company’s omnichannel strategy contributes to better working capital management and higher RoCE and RoE: The Company has been an early mover in delivering jewellery via online platforms in the US. This strategy aligns with Goldiam’s overall vision of being in a higher RoE business. The online platform delivery model works at negative working capital, proving to be RoE lucrative. Overall RoE for FY22 stands at 22% (FY21 15%) from 6% in FY18, its RoCE has improved from 10.6% in FY18 to 60% in FY22.The Company’s Net Working Capital days also have seen a consistent decline from 193 days in FY18 to 113 days in FY22. Stocking Strategic SKUs, faster turnaround time etc., have been assisting the Company in managing working capital more efficiently.

Order Book Status reflects growth momentum: Goldiam has an order book size of INR 1,700 mn. This order book is expected to be executed in the next six months. E-commerce sales, given their nature of being booked online (on a spot basis), are not part of the order book.

Commenting on the performance, Mr. Rashesh Bhansali, Chairman and Managing Director, Goldiam International, said, “FY22 was an excellent year for Goldiam, as it surpasses the key PAT milestone of INR 1bn. Along with profitability, our sustained and continuous efforts in improving the quality of earnings have been quite evident. We significantly outperformed our sector with profitable growth reflecting the skillful execution of our product & sales strategy, rigorous financial discipline, and a shared culture emphasizing responsibility and commitment to both our customers & shareholders. As a result, I am happy to share that Goldiam’s board has further recommended a dividend of 30% to its stakeholders.

Having worked throughout the year to strengthen the Company and its offerings, we have the ambition and the means to sustain our profitable growth momentum. The Company is consistently looking at various growth strategies that are RoE accretive. With an increasing demand for Lab-Grown Diamonds, Goldiam had already initiated a CAPEX to increase its capacity by 40%. We further expect to double our capacities over FY23 and FY24. The new capacity will be used for Goldiam’s jewellery manufacturing & distribution business, leading to a more robust margin profile. We are confident about the Lab-Grown diamonds business going ahead. This has been further cherry-topped with our omnichannel delivery strategy, making our model even more lucrative for our customers.”

Goldiam International Limited:

Goldiam International Limited (NSE: GOLDIAM) (BSE: 526729) is a 3-decade old preferred OEM partner and exporter of exquisitely designed and luxurious diamond jewellery. Functioning as the manufacturer of choice to many of the leading global branded retailers, departmental stores and wholesalers across American and European markets, the Company is also renowned for utilising responsibly sourced diamonds, leveraging cutting-edge technologies and efficient manufacturing processes for optimal costings and quick delivery lead-times. Targeting the mid-to-affordable diamond & bridal jewellery segments, Goldiam has a dedicated sales office in New York, with design teams in both India and the USA.

Forward-Looking Statement:

Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Goldiam International Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

Disclaimer: The above press release comes to you under an arrangement with PR Newswire. Business Upturn takes no editorial responsibility for the same.

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