PNGS Reva Diamond Jewellery Limited (PNGSREVA) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the PENGS Riva Diamond Jewelry Ltd.'s Q2 and H1FI27 Earnings Conference Call. As a reminder, all power spin 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 10-0 on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mrs. Suyash Samant from SELAR Investor Relations Advisors. Thank you and over to Mrs. Samant.

Thank you. Good afternoon, everyone, and thank you for joining us today. We have with us today the Senior Management Team of P&GS Deva Diamond Jewelry Limited, Mr. Amit Moda, Full-Time Director and Executive Officer, And Mr. Aditya Moda, non-executive director, who will represent P&G S. Deva Diamond Jewry Limited on the call. The management will be sharing the key operating and financial highlights for the quarter and half-year interest, 30th September, 2026, followed by a question-and-answer session. Please note, this form may contain some of the forward-looking statements, which are completely based upon the company's beliefs, opinions, and expectations as of today. These statements are not a guarantee of the company's future performance and involve unforeseen risk and uncertainty. The company also undertakes no obligation to update any forward-looking statement to reflect development that occurs after a statement is made. I now hand over the conference to Mr. Amit Boda. Thank you and over to you, sir.

Thank you. Welcome to all. Wish you all the happy festival which is coming up. Already, Navratri has passed on, and we all have calibrated the Navratri. So, this is our third earning call. First earning call was last year for the Q3 performance. Then, there was a call for the Q1 performance, and now this is a Q2 performance of FY27 or the H1 FY27. We are pleased to report that strong performance of Q2 and H1-27 delivered almost 46% year-on-year revenue growth in Q2 of 27 and 76% overall in H1-27, excluding Go itself is achieved. Our PPTN presentation is already there on the website as well as on the BAC site from where you can get updated all the figures in detail along with our commentaries. This growth is particularly encouraging given that Q2 of FY27 had no festival days. As compared to FY26, there were nine last days of the September which were the festival days of the Navaratri. Despite this difference in the festive calendar, we continue to witness healthy consumer demand, Reflecting the resilience of Riva brand and the strength of our business model and more and more shift of the customer from the plain gold jewellery to the studded jewellery and that to the natural diamond studded gold jewellery. Let me bring by sharing the operational highlight. During FY27, we launched three new cocoa stores. One, we launched at the Aminara Mall, Pune at Tadavsar. Another was launched at Nasi College Road and one at Jaipur, which was the first outside Maharashtra for Reva. Including our first tour outside Marlster, that is Rajasthan, J.K.O. City, further strengthening our retail presence and expanding our reach into new market, our Cocoa stores are performing in line with expectation, and we remain focused on the expanding of our retail footprint through quality location and delivering the superior customer experience. If we go through rapidly, there are seven, six EBOs right now. Just half an hour before, one EBO has started working at Bhavdhan. So, Vakar was the EBO which was established prior to the IPO in last September end. Then, Powder, which was in the last week of March. Then, Aminurah Park, Aminurah Mall, that is established in the first week of July. Then Nasik was there at the end of the August. Then Jaipur, which was started outside Maharashtra. Then Bhavdan, which is inaugurated today. And in this week, we will announce one more, and that precise announcement will be there on the public domain through the exchange notification. We are proud to onboard Shavari VASP as our brand ambassador, brand face, marking an important milestone in Reva's growth journey. We all require some national level faith, and she is working with the Hindi movies, Hindi serials, and she is known faith for the north part of India, where we are going to launch our expansion outside Maharashtra. So, Sharwari Waag will be our brand face, which is known in the area, wherever we are working. She is being the Marathi, she is getting attached with our brand, our legacy, as well as she is very well known on the pan-India basis. We also successfully launched our e-commerce platform, RewaDiamond.com, strengthening our digital presence and providing customers with an additional channel to explore our natural diamond jewelry collection. This initiative complements our retail expansion strategy and supports our efforts to build a scalable retail and digital platform. Generally, in this kind of industry where pure gold, natural diamond, certified diamond, and all these things are getting traded, there is a limited scope for the online sales. But these online platforms or e-commerce platform gives the visibility of our entire product or the catalog to the customer through which they can understand our product range and they can come to our showroom and shop it. So, even though that online sale is not going to be a sizable one, but it will be helping us to cater the customer and giving them knowledge about our brand and product range which we are going to cater. These operational initiatives were complemented by strong financial performance during the quarter and first half year of the year. There are two comparisons right now. It is a Q2 comparison with previous year Q2 as well as H1 comparison with previous year H1 comparison. There are two figures. Last year, there was some tisable sale of the gold scrap which we received as an exchange gold as a consideration part of the consideration of the sale. But this year, even though we are receiving same quantity, but we are using it as a captive consumption, because right now, since we are developing and we are getting newly fabricated jewelry, we require that, and that's why there is no sizable gold sale as a B2B sale, which was there in the last year, up to Q2, as well as up to last day of the year. During Q2 of FY27, revenue from operations stood at 121 crore, resisting 17% year-on-year growth, while revenue excluding gold sales, as I explained to you that last year there was a larger gold sale. That's why current year Q2 FY27 figure shows only 17% growth. But if we compare it as a jewelry to jewelry, then in H1, that jewelry gold sale amounts to 239 crore and shows almost a 76% growth if we exclude the gold sale from the H1 of FY26. Gross profit Q2 FY27 stood at 37 crore, growing 50% year-on-year, only for the Q2, with the gross margin of 31.1% compared to 24.2% in Q2 of FY26, again only for the quarter comparison. Now, if we compare it with the H1 of FY27 with H1 of FY26, the gross profit increased by 90% year-on-year to 79 crore with gross margin increasing to 33.2% compared to 26.7% H1 of FY26. Now EBITDA again quarter then for the half year. Quarter 1 sorry quarter 2 it stood at 37 crore EBITDA growing 50% year on year and a gross margin of 31.1% compared to 24.2%. H1 gross profit increase 90% year-on-year to 79 crore with gross margin of 33.2% compared to 26.7% of H1 FY26. EBITDA Q2 FY27 stood at 29 crore, registering 49% year-on-year growth, compared to Q2 of 26, with EBITDA margin of 23.8% compared to 18.7% of the Q2 FY26. If we compare it in a percentage, it has gone up from 18.7% to 23.8%. If we compare it with the absolute rupee, then our Q2 FY27 EBITDA is higher by 49%. For H1 FY27, EBITDA grew at 103% year on year to 63 crore, with EBITDA margin 26.3% compared to 19.6%. So, if we compare absolute rupee term, it is 103% growth. If we compare in a percentage term, last year, H1, we were having EBITDA margin of 19.6%. This year, it is 26.3%. Now, come to the profit after tax. Again, first quarterly, then half yearly. Q2, FY27 stood at 23 crore, registering 84% year-on-year growth compared with the last year Q2. That was a, then PAC margin of 19.3% H1 FY27, which grew by 151% year on year to 51 crore, with a margin of 21.2%. Means margin has gone up from 19.3% to 21.2%, as again, the PAC grown by 151% year on year to 51 crore. Even after excluding other income, PAT continues to remain in line with the guidance provided reflecting the strength of the company and its core operating performance. As you would have seen our business update, we have stated that Q3 FY27, it is started on strong note. Last year, nine days were in September, only two days were in October. This year, entire 10 days of the Navratri plus Dashera was in Q3 at the early period of the October 27. And we have registered growth of the 35% overall of the 10 days sale. Vis-a-vis Dashera single day sale, we have got a higher growth or the higher sale of 62% if we compare with last year's Dashera. Looking ahead, we remain optimistic about the demand outlook with the upcoming Diwali festival and wedding season expected to provide further growth opportunities and support higher average order value. The increasing consumer preference for natural diamond jewelry, coupled with our expanding Cocoa model retail footprint, enhanced digital presence which can support our offline sales, and focused execution position as well as capitalizing on all of these opportunities. We are confident that we will show a good result as at end of the year, continuing with the H1, the H2 will be in line with the H1, and we expect the good numbers, good figures as at end of the year, that is the H2 as a whole plus H1 as a whole. With this, now I conclude my say and I make it open to the investor to ask the question. There are certain limitations that I cannot give you any precise answer or any precise quantification or the figures or the amounts or the percentage and all these things. So, whatever discussion here, it will be in a relative term and more on the industry outlook as such rather than my specific company's specific location, specific quantification, that kind of the discussion. Thank you. Thank you for listening.

Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press star and 1 on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. My friends are requested to use only handset while asking a question. We will wait for a moment while the question queue assembles. You may please press star and 1 to ask questions at this time. The first question is from the line of Nishita from Sapphire Capital. Please go ahead.

Yeah, hello. Am I audible?

Yes, you are, ma'am.

Yeah, so I just wanted to understand if you could give the bifurcation between like job work and our own manufacturing, like how much of the revenue comes from job work and how much of it comes from manufacturing?

First of all, we are only B2C. That last year's B2B was of the gold crap which we received. It was not a B2B, is not our prime object to carry out the business. In case of jewellery, we are selling only on the B2C basis. Secondly, job work, that is the order which we are getting from the customer as compared to the ready stock which is available in the shop, it is hardly 30%, not more than 30% against the order. 70% plus is there which is from the ready goods which are available in the showroom.

Okay, understood. And my question is, so, like, in this quarter... Your voice is extremely low, madam.

You love...

Yeah, am I audible now? Yes, yes. Is it? Yeah. So, sorry for that. So, like, in Q2, our YOY growth has been 46% on revenue terms. What is our growth on volume? What's the volume growth YOY?

Yes, Kim. Sum growth is almost near to 30%. It is 28% something. On the diamond stone sale basis, and on the gold value basis, it is around 57%. In that gold value, almost 20-25%, around 20% was our rate appreciation.

Okay, understood. So, like, can we maintain this sort of volume growth for the full year, FY27?

FY27, yes, as of average level, as I said, whatever we have performed in H1, our track will continue on the same line for H2 also.

Okay, so we can expect similar growth of around 76% in H2 also?

Now in this Q3, there is a festival, so growth will be there. Q4 depends on the inflation and market conditions, but if everything is okay, everything is aligned with the normalcy, yes, I can say you can rely on the same kind of the growth in the coming H2 also.

Okay, okay, I understand. And my last question would be on our margins. So, we've done EBITDA margins of around 26%. Are they sustainable for the full year FY27?

Voice was not clear. Can you repeat the question?

It's on our margins. So, our EBITDA margins, we did 26% of margins. So, are these margins sustainable? Like, can we have similar margins for the full year FY27 as well?

In earlier my three calls, I have always explained that as EBOs will keep on coming up, the EBOs will contribute only after 15 or 18 months to my earnings, and at early period it will be contributing to the cost, so that may put some pressure on the percentage basis, because marketing costs will go up, which is before the EBITDA margin. And so, there may be 200 basis points, plus or minus, and this point, I am repeatedly telling in my every investor call or the earning call.

Right. So, what is our target to, like, what's our target addition for EBO? Currently, we have 6 EBO stores, still H1F27. How many EBO stores are we expecting to add in H2?

We are expected to complete 15 EBOs in 24 months period. So, right now we have completed out of that 5 and 1 more is coming up in a week or 2 weeks time. So, we are completing almost 6 out of 15. So, remaining 9 we will complete in coming 18 months, 18 to 20 months time. But yes, we are there to complete it before the schedule. We will not take entire 18 months which are remaining for establishing 9 EBOs which are pending out of the DRHP proceeds or the DRHP commitment. I hope that another at least 3 EBOs will get added in H2. That is the remaining period of H2.

Okay, okay, understood. Yeah, thank you so much for answering all the questions.

Thank you. The next question is from the line of Lakshmi Narsima Sampad from Evendus Park. Please go ahead.

Sir, Congresswoman.

Sir, your audio is low. I am sorry to interrupt.

Not audio.

Yeah, your audio is low. Please use your handset. I would request all the participants to kindly use your handsets.

One more, I'm sorry. Is this better?

Much better, sir. Please continue.

Congratulations, a great set of results, sir. Sir, I just wanted to check on two things. One is, what would generally be the capex per store, especially on the EBO? And with respect to the other format of stores, what is the outlook on the additions going forward for the next 12 months? Thank you.

There are three types of stores we are establishing. One around 1000 square foot, another around 1200 square feet, another around 1500 square feet. So average 1200 square feet store will be there. CapEx, as far as you see, CapEx is always content almost 70% to 80% is an inventory. Hardly 20% will be the initial marketing cost as well as infrastructure. Infrastructure includes entire furniture work as well as the name boards or the AV screens which are displayed on the board as well as inside the showroom. Then the air conditioning system, generator set, then the computers, weighing scale, everything. And that costs around 2 to 2.5 crore rupees each location. Around 2 to 2.5 crore rupees each location will be the initial marketing cost. So that is a capex for every location. If it is a 1000 square feet, then inventory required will be around 10 to 12 crore. If it is a 1200 crore, it will be 12 to 15 crore. If it is more than 1200 crore, that is a 1500 square feet kind of the thing. Inventory required will be around 15 to 18 crore. So, this is the combination of the current asset as well as fixed asset. Generally, we are taking our premises are on lease. We are not buying the premises. So, there is no cost for the investment for the buying the premises. But yes, six months rentals are required to be paid in advance as a deposit to the landlord. And to that extent, there is a cost per location. And nowadays rentals are in between 300 to 700 rupees per square feet. If we take 1200 square feet kind of the area and average 500 rupees rent, that will cost around 6 lakh rupees a month. So, six months rental deposit will require around 30 to 40 lakh rupees as a deposit to be kept with the landlord. So, that is a mota moti about the capex side. What is the continuing question from your side?

Sir, what, apart from EDOs, what is your outlook on the other format of stores that you are looking, like, what would be the other format of stores that you are looking?

Right now, if you are comparing the results, those are mainly of the SIS, that is the other format that which we are running right now, and those are doing well, and why those are doing well, because there is a great shift happening from plain gold jewellery to the studded jewellery, that is the gold along with the natural diamond, that combination, and we are there, And when it is in SIS, people are looking to the plain gold jewellery as well as the sturdy jewellery, and if they find the price comparison and price perception, comfort with the diamond jewellery, they prefer to go with the diamond jewellery. Diamond is their aspiration for the long, long back, and now they are in position to complete it because the component of the each jewelry item has got 30 to 40% of the gold, around 30% of the diamond, and remaining of the making. Earlier, just 10 to 15% was the gold, and remaining was the diamond and making. So, higher the component of the risk-free asset is getting involved in the diamond jewelry, they are getting shifted to the diamond jewelry very precisely.

Sir, just my last question, and with respect to the outlook on the EBOs for the rest of the year, What would be the locations in which you are planning to start? And is it capex that you would be working on these ebos? Are they a lot different than it is a tier 1 city as opposed to a tier 2 city?

So, I said 300 to 700 rupees rental. Rental is the only thing which is changing the capex. Because other things are going to cement. I mean, plywood's rate is not going to change city to city, lamination rate is not going to change city to city, air condition, generator cost is not going to change city to city. Yes, my operational cost may be different from city to city because of the availability of the staff. In tire 1 city, it may be costlier as compared to the tire 2, tire 3 cities, but generally, diamond perception and diamond preferences are there in the tire 1 city. So, I will consider with the Tire 1 city's perception, whatever cost I am looking for as a recurring cost or the operational cost. As far as CapEx is concerned, except the deposit towards the rental, I don't think that there will be much difference between the metros and Tire 1 cities because Tire 2, Tire 3, we will tap only if we are finding the potential. Otherwise, it will be more in the Taiwan city, and when it will be outside Maharashtra, it will be more precisely in the mall rather than the high street.

We'll take the next question from the line of Chirag from Keynote. Please go ahead.

Hello. Yeah, am I audible? Yes, yes.

Yes, you are.

Yes, sir, my first question is to understand what type of or the size of design team that we have with us, and on an annual basis, how many new designs generally we create?

Design is a generic thing, first of all. You cannot say that I have got patented design catalog of 20 designs or 50 designs, that kind of thing. Neither myself nor anyone in the industry can claim that he has got patented designs. It's a generic thing. Designs are changing. If you see one bracelet with six flowers next year, it will be with five flowers next to next year. It may be with three flowers with two leaves. So, those kind of the changes are happening. But liking is always kept in mind that which kind of the designs are more preferred in the market. Because our marketing team as well as sales team is taking the care of all these things, which is the liking. Secondly, all these suppliers or the contract manufacturers, they are providing huge input, which are the liking pan-India. Because they are moving pan-India, they are moving with a number of other players also in the industry. So, they are knowing better that what is going to happen in the industry. Rather than any individual is knowing entire country or entire pan-India, they are moving pan-India. We have got our in-house design team, but there is a limitation and it is with everyone. Everyone is depending to the extent of 60% on the design teams of the vendors or the contract manufacturers and 40% on the in-house. What are collections we are launching, exclusive collection we are launching, the one that is our collection, that is only one piece is getting crafted for a month, and it is getting sold in that month, and no more pieces are going to be crafted, so it will have exclusivity. That kind of collections we are launching. This year, we are launching only premium collection in that category. Next year onward, we will be launching smaller collection also exclusively for that month and limited number of people. Right now, the one is the only one piece which we are crafting and selling. So, that kind of things are happening in this industry. So, one cannot say that I have got the latest design and others only I have got only traditional design. They don't understand anything about the design and I only understand about the design. Temple jewellery, I can give you an example. Everyone talk about the temple jewellery, temple jewellery. It is a generic thing. It is not something exclusive. Only during that period, if that entity is marketing temple jewellery as its theme product, then they will repeatedly say temple jewellery from house of Amukamu. But that doesn't mean that they only have got temple jewellery. Temple jewellery is available with everyone. Same way in the diamond also. All designs generally are available with everyone. Smaller design, that is a tiny design or the caring design, those may be different from vendor to vendor and showroom to showroom.

Got it. Fair enough. A better understanding of the same thing, sir. So, secondly, I wanted to understand how the market is evolving. Are people shifting from a smaller carat diamond jewelry to a larger carat diamond jewelry? Such kind of friends are we able to see?

See, even if I am getting one carat diamond in a lab grown, because you must be targeting your question towards lab grown, because shifting to larger size of diamond is not easy unless you are going for the lab grown, because single piece of larger size of diamond is very costly, and designs are generally made from the smaller diamonds only, not a bigger diamond. So, even if the one carat diamond comes for 50,000 rupees or 80,000 rupees in lab grown, I cannot use to create a design 50 or 100 one carat diamond and create a necklace, nice looking necklace with figures and flowers, leaves or any figure which I can fabricate in the design of the multiple stone fabricated in that shape. All these things. For shaping and designing, smaller stones are required, which are called generally as a star melee, from half cent to two to three cent kind of the thing. Bigger diamonds can be only used in the studs, that is the finger ring, or the ear studs, or your pendant single studs, but those cannot create design and those cannot be created for developing the jewellery, which is a design jewellery.

My understanding is correct. Generally, for larger jewellery that we are creating, smaller diamonds are required for which natural diamonds are much preferred over lab-grown diamonds. And maybe for a single big carat diamond, there is some sort of a competition where we can see from a lab-grown diamond. Is it fair to you? Yes, yes.

But I want to explain here one thing, that the larger diamond, that is a solitaire kind of the thing. Our book for that solitaire kind of the thing is hardly 4 to 5%. 95% plus is our design book, which is created out of the smaller diamond. So, we don't have a direct threat of that lab-grown diamond for our business, except that 4-5%. But whoever is coming to us for that 4-5% book, those are having specific preference of the natural diamond. They are not ready to go to the lab-grown diamond, and that's why they are coming to us and asking for the natural diamond only. They were comparing whether it is a cheap or the costly, because they want a rare thing and a natural thing only, which has got resale value, because the natural diamond only has got resale value.

Got it. And generally, what is the resale value for the natural diamond?

If it is bought from my store, I buy back at 90%.

90%. Got it, got it. Sir, just out of the box, for clarity per se, any thoughts are we trying to get into LGD or we are going to remain a natural diamond completely?

See, in this world, nothing is permanent. But right now, I am not thinking of the lab-grown diamond. And as and when, we will think or we will have that kind of thought, even in our mind, we will definitely communicate it to all the investors.

Fair enough. Fair enough. So, just certain accounting questions, if I can. Just one thing, for example, were there any inventory gains?

I'm sorry to interrupt you. Mr. Chirag, I would request you to kind of rejoin the queue for follow-ups, please. There are others who are waiting. Thank you. The next question is from the line of Vishal Kutka from ASK Investments. Please go ahead.

Hi, dear sir. Thanks. Congrats on a good set of numbers. Sorry, I joined a bit late. Just wanted to get a sense from you. Now the bullpen inflation more or less is done now. From fourth quarter onwards, the inflation will be in a negative zone. I understand that our Fed is going to be similar, but gold price inflation definitely helps in what we call aiding the FFG growth. So, what kind of FFG growth we are looking for F28 now, sir, given that gold price inflation is more or less there now. So, what kind of number we should see at least on the FFG front?

H2.

The H2 or maybe F28 also, sir.

No, no, you are expecting H2's estimation or FFG 28 estimation?

Both, sir. H2 27 and FFG 28 because gold price inflation has more or less improved.

It is far away. Right now, gold prices have corrected by 25%. Okay, so then H2. It will further correct. It is very difficult to say. We can look further H2 as such. So, in H2, there will be no support from the appreciation. Almost everybody's books, not only for me. Everybody's books, average purchase cost right now has come to the almost the level of the market price which is running in the market. Right. So, in H2, there are very remote chances that there will be any inventory gain or such. So, in H2, there will be no any additional sale just because of the higher gold prices.

SSG growth, sir, what could be possible SSG growth for second half? What are you targeting?

See, if you want to look right now, I am operating SIS plus the EBOs. And my oldest EBO is a 12-month-old. And I say that 15 to 18 months it takes to create a contribution to the main company's profitability and all these things. So, all these EBOs will start contributing in either Q4 of FY28, meaningful contribution I am talking, there will be sale, I am not saying that there will be no sale, but meaningful contribution always comes from the profitable sale, means which can create a profit also So, it will be from the Q4 of FY28 and onward, there will be constructive contribution coming from the EBOs which we are establishing right now.

Got it, got it.

And for the FIS2, the growth we are looking, it is from the existing SIS mainly, and very small contribution to the sale is from the EBOs.

Okay, what is that? But just for FI also, if you can just provide some live for the FI stores, what can SSG growth we can do? I understand maybe it will take time, but for FI stores, what kind of numbers we are targeting on SSG sites?

We expect at least 35 to 40% SSG growth.

Oh, that's wonderful.

This year, if you are looking 74% growth, deduct from that almost 20% as a, what you people are saying, that inventory gain from the gold, still 55% growth, whatever has come, it is from the SIS mainly.

Got it, got it, got it, got it, got it, got it. So, this is last question. DASERA, I think, even a press release, DASERA numbers at around 35% growth kind of for the company.

So, Diwali was 35%, Dushra was 60%.

So, first 30 days, because almost the month is coming to an end. So, any carry day you can provide for the month of October, how numbers have behaved?

Last year, month of October was having entire Diwali also.

Oh, got it.

Dushra and entire Diwali was over in the month of October. This year, Diwali is starting on 5th of November and ending on 14th of November. So, that is not coming in the month of October. So, we cannot compare it October to October of the last year to current year.

Got it. Got it. Great. Wishing you all the best for the future future. Thank you.

Thank you. Thank you.

Thank you. A request to all the participants to kindly limit your questions to only two participants. Should you have a follow-up question, please rejoin the queue. The next question is from the line of Sidhan Lodaya from Fanshi Fund. Please go ahead.

Hello. Congratulations on the great set of numbers. Just a quick question on the ASP. If you can just share the trend over the last year or last two quarters, how the ASP has changed? That would be helpful.

Now, in this year, in Q1 also, in that call, we have explained that we have increased the inventory of the fast-moving kind of the pricing items, and that is helping us that sale growth is coming from that segment mainly. So, ASP, that is the average sale price per invoice, we can say, or per customer, it is somewhere around $1,05,000 to $1,07,000.

And how was it grown over last year?

Last year, it was $92,000.

All right, sir.

Thank you. Thank you. The next question is from the line of Hardik Agarwal from Param Capital. Please go ahead.

Hi, sir. Congratulations on a great set of numbers. Thank you. My question is just, you know, twofold. One, let's say five to seven years from now, how many EBO stores do you think we could have in how many states? Can you have, like, more than 60-70 stores across 5-plus states?

How many in outside state or within state, it is very difficult to explain because state-to-state, sales are getting impacted. If states with rest is there, good atmosphere is there, sales are good. So, state with unrest, their sales are not good. But yes, if you are paying some 7-8 years down the line, I can say down the line, I expect at least 50 EBOs should be there. Along with SIS, as it is, they are there. I am not including SIS in that EBO.

Terrific, sir. Terrific. Basically, you mean to say that, like, again, we're long-term investors, sir. So, just wanted to understand from a 7-8-year perspective.

So, you are a long-term investor. 7-8-year perception for the standard engineering industry is also very difficult to predict. This is a fast-moving consumer industry. Here, prediction for 5-7 years, it's too difficult. Which perfume will last for next 7 years, if that is a difficult question to answer? Second thing is there for the entire industry, consumer industry, because preferences are changing. Right now, my average ticket size is coming to 1,500,000 because that level customers are there. A few years after the line, there may be a higher number of sale, higher number of rupees sale, but my average ticket size may have come down to 50,000 or may have gone up to 1,500,000 because references are changing, tastes are changing, And this is a consumer industry. So, to that extent, 7-8 years down the line estimation, it is too difficult for estimate.

Yeah, sounds good, sir. So, my second question was around our ASP as a follow-on to the previous question. So, right now, almost all our sales come from the SIS model where we have the PN Gargil & Sons customer going for the Reva brand. When it comes to the EBO, that's the P&G's VEVA standalone brand. I was just eager to understand, you know, how are we positioning it? Are we positioning it pretty much for the same kind of ASP? Are we targeting the same customer? If you could just shed some light on what you expect ASP to be for the EBO versus SIS.

No, these EBOs are also doing on the same line. And whatever we have got right now, figures of the sale of these EVOs which are coming, those are as we are expecting that those are will achieve the target of 0.75 kind of the stock term within 15 to 18 months that our first EVO have occurred in one year, that is September to September. It has completed almost 6.5 crore sale and we are expecting 9 crore sale to achieve in 12 months period after 15 to 18 months initial period. So, with all these figures and whatever performance of Aminoramol is showing or our outdoor shop is showing or the NASIC newly started EBO is showing, That is in line with our expectation, that is 0.75% stock turn within a period of 15 to 18 months period. And subsequently growing it and going up it up to 1.25 kind of the stock turn in a 3 to 4 years time from initial 15 to 18 months.

Great. Wonderful. Thank you, sir.

Thank you. The next question is from the line of Mukesh Panjwani from WC Securities. Please go ahead.

Hello, sir. Good evening, and congratulations for a great set of numbers, sir. TNJS is doing great. Sir, I want to confirm one thing. Like, I believe our 35% revenues come from H1, and 65% comes from H2. Is my understanding correct?

Yes, yes. Generally. So, okay. So, this year also we can expect the same ratio? If I say yes, then you will say that same 74% kind of the YOY growth should be there in the H2 also. Am I right?

I don't know that, but if it is same, then we can grow like even 100% Y on Y if we see the entire year.

Now, I'm confident that I will not show 800 crore kind of the top line at the end of the year.

No, but 700 crore is possible because we have done around 200 and something crore. So, accordingly, it would be 700 crore if we are doing 35-65. That is the point.

If we take, as I said, it generally happens 35-65. This year, there is no goodi parwa in Q2. Goodi Parva has got a really great sale in Maharashtra at least, which is almost 10% of the total sale of the year. That kind of IFL is there. And same is for the South India Akshetitya happen. Same way in Goodi Parva, it happens in Maharashtra. This year there is no Goodi Parva.

But we have this Dashera, Diwali, and Navaratri and Dashera, we get there.

Whatever advantages are there, we are expecting to encash it, and we are in fact. But there are certain limitations also, drought condition was not there every year. This year, there is 85% less, Maharashtra is under drought condition, And we are mainly operating in Maharashtra. So, after festival, whether that mood will continue or not, it is not certain. So, I am taking it a little bit precautionary statement. I am not denying it, that it will not happen. But I don't want to say something, even though I am knowing that drug conditions are there, and there is likely to be higher inflation is there due to the West Asian crisis and problem. So, all these factors, we need to factor in our estimation. So, I expect that around 40-45% kind of the growth I am expecting. But, again, as I said, severity should not increase, which is there as present. It should not go beyond the which it is as present.

Thank you, sir. Thank you and all the best.

Thank you. A reminder to all the participants to kindly limit your questions to only two per participant. Should you have a follow-up question, please rejoin the queue. The next question is from the line of Bhavan from Vyansh Ventures. Please go ahead.

So I just wanted to know out of the 15 stores that are open, how much would be in small, mid- and large-scale stores? 15 stores are not open. No, no. The ones which are planned for the next 24 months.

So, out of 15, 5 will be a small, 5 will be medium, and 5 will be large, right? Small is around 1000 square feet, then medium will be around 1200 square feet, and large will be around 1500 square feet.

Understood. And, sir, for these COCO stores, the marketing spend is assumed at 2 crores. By when does a store, like, reach a maturity where the marketing spend actually reduces and we get a 30% EBITDA margin? For 20% EBITDA margin?

Twenty-eight percent EBITDA is there, no? If I am not going to 30%, right now that 2% effect is not yet there. That will start, keep on coming in because that spend will not be at one go, at the opening itself. It will be over a period of 12 to 18 months after the opening. It will not be at one go. Thank you. On one day, I have given a full pager to all the dailies and advertise on the all TV channel and spend 2 crore on the opening ceremony day. That kind of spend is not expected there. It is for creating footfall for that location.

And will the spend be expensed or will you be capitalizing it into new store expenses, the 2 crore spend? No, no, I am not getting. It will go in the balance sheet or we will be spending it as a marketing expense in the P&L only?

No, no. As per index, we cannot capitalize anything. Earlier period, there was a deferment of the expenses. Now with index, it is not allowed. It will get debited directly to P&L.

Understood. Thank you. Thank you.

Thank you. The next question is from the line of Ashish Chansikhar from Vendibaya Ventures. Please go ahead.

And I would like to remind that hardly 5 to 7 minutes are left in the meeting.

Sure, sir. Please limit your questions to 2, sir. Please proceed, Chancical, sir.

Am I audible? Yes, yes. Yes, congratulations on good set of numbers, sir. So, my question is, can you give a revenue split for SIS stores and EBO stores, if possible, in percentage terms?

See, EBOs are recently started at full level, that is after 15 to 18 months at 0.75% kind of the stock turn. At first year, full year, it should perform 9 to 10 crore rupees a year. Right now, poor stores are there, which are less than one month old, one or two months old. Only that Vakard store is a 1-year-old and Poudro store is a 4-month-old. So, there is a very small contribution from the EBOs. Right now, whatever you are looking, it is a 95-plus percent is from the SIS.

Got it, sir. My second question is, are you seeing any pricing pressure or substitution effect from lab-grown diamonds in your entry-level jewellery?

If a person is interested in recent value, he will definitely go for the natural diamond because both are the different markets altogether. If you are comparing 1 gram gold jewelry with the plain gold 22-carat jewelry, then it has got no meaning. It is the same thing.

The class of customers are totally different. Okay, sir. Got it. Got it. Okay. I guess that's it.

Thank you. The next question is from the line of... Sir, sorry, you said something.

I think it will be our last question. Okay.

Ladies and gentlemen, this will be the last question for today from the line of Rahul Kumar Paliwal from Sheffa Family Office. Please go ahead.

Thanks for the opportunity and congratulations team for the flawless execution. And given the time limits, a very big question. In general, sir, with your own experience last five years running the business or so, by how much percent H2 outruns H1 top line? And considering this H2 is festive loaded, safe to assume two-thirds of the sales might come from H2. And in that context, probably we are crossing the rating upgrade from the K-Rage as well, right? That's fair to assume?

Yes, K-Rage has indirectly improved the rating from stable to positive. And they will have one step ahead in next time. And as far as you are, as you said, two-third, one-third kind of the thing is a rough estimation, but as explained that broad condition in Maharashtra, high inflation due to West Asian countries struggle and fight, there is some pressure on the sale. So, this year, it may be having 45-55 kind of the thing or the 50-50 kind of the thing, but yes, Q2 is, H2 is always good for the jewellery and consumer industry. So, we are expecting, but as I said, that these factors also need to be taken into consideration, and that's why I am little bit cautious. Otherwise, I am not denying that it should not happen, but I am cautious with these two factors.

Good answer. My other question is, with the IPO cash in hand, have you changed your number of EBOs planned, considering 5-6 EBOs are opened and you have the experience of cost structure and inventory management? With the cash and a bit of debt mix, are you going beyond 15 store with the current structure or you will stick to 15 still?

We will complete first 15 stores. Whatever surplus will remain there, we will definitely use it for establishing another few stores. We will not use it for the GCP or anything. That remaining, I have transferred to the outstanding loans and all these things. It is allowed as far, but I will try to deploy it or create a higher number of stores if surplus remains there. And for that purpose, I will definitely come to the all shareholders for getting their approval in the EOGM or through the special resolution in AGM.

Thanks for the answers.

Thank you. Nees and Radman, we'll take that as the last question for today. I now hand the conference over to Mr. Ramit Modak for closing comments. Over to you, sir.

Thank you for listening, and I am extremely sorry that due to the time limitation, A few people have left, and they could not ask the question. I request them to send their question to our investor relation website, this email ID, or the CS email ID, and I will definitely revert their question to them. And thank you, everyone, for joining. I wish all the best for the festival, and happy Diwali, and happy festival day coming in. Thank you.

Thank you, sir. Thank you, members of the management. On behalf of PNJS Reva Diamond Jewelry Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your minds. Thank you.