SKY GOLD AND DIAMONDS LIMITED (SKYGOLD) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Sky Gold and Diamonds Limited Q4 and FY26 earnings conference call. As a reminder, all participant clients 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 this conference, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ritimasa from MESG-H9. Thank you, and over to you guys.

Thank you. On behalf of NUMG NTIME, I welcome you all to Sky Gold and Diamonds Limited Q4 and FY26 earnings conference call. On the management side, we have Mr. Manges Chauhan, Managing Director, Mr. Varshan Chauhan, Whole Time Director, Mr. Siddharth Sapani, Chief Financial Officer, and Mr. Akash Talisara, President Sains. I hope everyone had an opportunity to go through our investment deck that we have uploaded on Xtreme and the company is upset. I would like to mention a short disclaimer before we begin the call. This call may contain some of the forward-looking statements which are completely based upon our beliefs, opinions, and expectations as of today. These statements are not a guarantee of our future performance and involve unfortunate risk and uncertainty. With this, now I hand over the call to Mr. Mangeesh Chawan. Over to you, sir.

Good afternoon, everyone. Mangej Chohan here, Managing Director of Sky Gold and Diamonds Limited. First, I want to thank my team. They delivered a strong performance despite a tough market. I will assume you have reviewed our latest results and presentation. The strategic evaluation of Sky Gold has systematically unfolded across three distinct operation phases. Phase 1. Our primary objective was establishing portfolio credibility and securing initial complete client penetration. We were ahead of the curve in anticipating the shift from unorganized to organized in retail and jewelry manufacturing. Also in shift towards lightweight jewelry. In all these three aspects, the bets are paying off now. Phase 2. Utilizing a combination of IPO proceeds and internal accruents, we expanded our client's ecosystem and scale capacity via our Navi Mumbai facility. Following our presidential capital raise, we originally guided for FY27 revenue of INR 5000 crore, a 3.5% PAT margin, and a 25% ROC. Having subsequently revised our benchmark upward multiple times, we are on track to exceed even our most recent guidance. Phase 3 Unlike previous phases funded by a mix of internal and external capital, Phase 3 pivots entirely on an organic, self-sustaining financial architecture. Growth will be funded strictly through internal tax generation to achieve a net debt-free balance sheet by FY30. On debt reduction strategy, we would like to highlight based on our current class, we would be reducing net debt by 50% above in FY27 itself through land sale and operation improvement. I repeat, there would be a debt reduction of 50% plus in FY27 itself. A larger portion of debt reduction would be due to operational reasons. Our Q4 FY26 performance significantly outpaced most industry peers, driven by strong wedding season sustainability, bolstered by key festive occasions like Godipadwa, Akshar Tithya. Alongside, materially improved customer engagement through our B2B portfolio, B2B portfolio. Unlike several industries peers, Kyle Gold's B2B-focused non-effecting model effectively captured peak weighting and festive demand through higher production volumes. Strategically, we've pivoted towards higher margin, lightweight, and budget delivery, which enhance realization and profitability. We defend strategic partnership with major retail chain stores, including but not limited to Rhyme Grills, Carrot Nail, Malbar Gold, Kalyan Guarant, Senko Gold, Aditya Villa, Thangamail, PN Gargill, Lalita Jewelry, Joy Alukaas, Khadana Jewelry, Gamash Jewelry, Ken's Jewelry, Titan Gold, SGRT, and many more in this group. Expanded our distribution network and grew our advanced gold business also. This strengthened working capital efficiency and provided greater order visibility across the value chain. Financial Guidance and Capital Discipline Our forward-looking framework balances aggressive market share capture with single balance sheet discipline. Target growth metrics. We are targeting a sustainable revenue taker of 30% to 35%, projecting a pack of 945 crore by 2030. I want to make a small change to the guidance we have provided in the past. We would like to stick to our paid guidance by FY to 30, but we would like to avoid revenue or volume guidance primarily because of the volatility in the gold price which is beyond our control. Also, top line is vanity, cash is sanity, and cash in the bank is reality. Control velocity. Given the large addressable market opportunity, we possess the capacity to expand the price with velocity. However, doing so would compromise our operating cash flows. Therefore, top-time expanse is intentionally capped at 30-35% to further rendering the balance sheet. Cash conversion engine. Our model targets a consistent conversion of 20% to 25% of cash into operating cash flow, underscoring a lean, high-velocity growth engine that is rare among high-growth Indian enterprises. This dual commitment ensures optimal training alongside robust cash flow generation. Siddharth Shifani has been thinking continuously on how to grow our institution's governance and promoter's realignment to address historical industry-wide corporate governance. Discounts, and maximize long-term share their value. Management is implementing best-in-class institutional framework. Global Audit Oversight, as promised we have appointed MSCA and Associates LLP, member of BGO International, as statutory auditors. Promoter Remuneration, alignment. Beginning April 27, the promoters will transition to a zero-shelby compensation model. Migrating exclusively to a dividend-only framework, promoters will develop financial rewards solely from shared ownership outcomes. Capital distribution disciplines. Dividends will be funded strictly out of operating cash flows. This possible re-anignment ensures promoter incentives are perfectly matched with minority servers, reinforcing physical discipline. Moving forward, our institutional skill remains anchored by our three core operational pillars. First, creativity, which is through design innovation. Second is technology, which is through process automation. Third is monetary excellence. In today's forum, we anticipate several inquiries regarding prevailing jewelry demand trends following our honorable Prime Minister Mojiji's recent national address. We view the Unrable Prime Minister's call to curb gold imports and protect our nation's current account deficit as a clear, necessary directive for the entire industry. We embrace our broader national responsibilities in support of this macroeconomical goal. As a wider sector is experiencing control in phase of demand softness, As a result of this light-acting condition, Skyfall business model is explicitly built to survive in such an environment. Our expertise in lightweight will be places us in a superior position. Historically proactive regulatory policy have been introduced around gold-metal loans to manage capital and import flows. Skyfall maintains zero GML exposure today. While we refrain from speculating on future policy direction, our internal operation structure is fully prepared for any further measures the government may be necessary to safeguard the economy. And articulated in our previous interactions, our core mandate remains the construction of a fortress balance sheet. The objective is thoroughly safeguarded by our announced cash. Conversion guidance, particularly as we move through FY27. The jewelry manufacturing and retail landscape is inherently working capital intensive. By aggressively executing our new leveraging strategy, with targets of 50% and above debt reduction during FY27, Skyboard will drastically reduce its credit's reliance. This guarantees that our capital structure remains robust, resilient, and fully self-sustaining. Remains are securely insulated even if institutional lending loans become significantly more senior. We would also provide another comfort to investors. Our anonymous exit fund raise for Q4 of Rs.911 crore is close to the guidance of 8,100 crore provided for FY27. Hence, you would not require substantial incremental working capital for growth. I now request Darshan Chohan for his update on new development of Sky Gold.

Hello, good afternoon, everyone. Darshan Chohan, whole-time director. Today, as we look back at the past quarter and the journey of Sky Gold and Diamonds, one thing becomes very clear. Our growth is not only because of strong business performance, but because of strong relationships, trust, innovation, and teamwork that defines this organization. Over the years, Cygold has built a strong leadership position in lightweight class jewelry manufacturing and expanded successfully across multiple jewelry categories. We continue strengthening our partnership with leading retailers across India and globally through our strong co-creation, merchandising, and customization capabilities. Even during challenging global conditions, including difficult times in international markets, our teams showed resilience and adaptability. Through Spicebook in Dubai, diversification into newer territories, wider product categories, and continued innovation, we successfully navigated business challenges while continuing to grow. We also invested heavily in technology, systems, people, and culture. One of the proudest moments for us this year was recognizing long-serving employees and star performers through ESOP initiatives, appreciating team members who have spent five-plus years contributing to the company's success. Because at Skygold, we believe people are our greatest strength. Our journey has also been recognized across the industry through prestigious awards, recognition, and participation at leading national and international jewelry platforms. This achievement reflects the collective efforts of every employee, carrier, partner, retailer, investor, and stakeholder associated with Sky Gold and Diamonds. And now as Tygold enters its next phase of growth, expansion and global vision, the management is pleased to announce a new leadership milestone for the organization. Further, we are happy to announce today that we propose to elevate Akash Tulsera, currently resident sales, to the role of CEO, subject to bold approval. This strategic appointment reinforces our commitment to professionalizing management, enforcing strong governance, and positioning the company for accelerated growth as we advance toward our FY30 target of achieving sales of Rs.18,000 to Rs.90,000 crore with a nil net debt position. We extend our heartfelt congratulations to Akash on this well-deserved promotion to CEO of Sky Gold and express full confidence in his vision and leadership to drive Sky Gold's next phase of expansion, innovation, and value creation for all stakeholders. Congratulations, Akash Tulsera, and wishing you great success in this new journey. Thank you, everyone, for your trust, support, and belief in Sky Gold and Diamonds.

Hi, everyone. This is Akash Saletra. First of all, a big thank you to the management for believing in me and giving me the responsibility of leading this organization as a CEO. For me, this is not just a designation or a position. It is a responsibility towards every employee, customer, partner, investor, and every person connected with Sky Gold and Diamonds. What makes me most proud about Sky Gold is not only our growth, numbers, or achievements, but the culture and relationship we have built over years. At Sky Gold and Diamond, people do not just come to work. They become a part of the family. This is the reason many people do not like leaving this organization. There is a trust here, there is respect here, and most importantly, there is a strong sense of belonging. As mentioned earlier during the inauguration of one of our subsidiary facilities by Mr. Ajay Chawla, MD of Titan Group, we witnessed one of the most emotional and meaningful initiatives from the organization this year was with introducing ESOPs for the employees. We have been a part of the Skygold journey for more than five years, along with our star performers. This was one small way of saying thank you to the people who have stood by us in the company, contributing with dedication and helped build Skygold into what we are today. We wanted our employees not only to work for the company's growth, but also to become part of the growth story themselves. Because we truly believe that loyalty, commitment, and consistent hard work should always be respected and rewarded. These initiatives have created a strong sense of ownership, a deeper emotional connect, and even greater motivation within the organization. And this is the real strength of Sky Gold and Diamond, our people. Our effort has also been recognized through several prestigious awards and the industry recognition, including the Global Market Entry Leadership Award for Manufacturing, the India Business Leader and Excellence Award, and the Joy Alukas Pride 2026 recognition for partnership excellence and innovation in design. We were also honored as a valuable vendor partner at the Circle of Indriya ceremony by the Aditya Vidla Group. In addition, Skygold was recognized as one of the fastest jewelry manufacturing companies through the AOJ. He also got MD and CFO awards, along with the several other manufacturing leadership recognition, excellence award, industry trophy, and certificates. These recognitions are not just awards for the company. They represent the collective hard work, commitment, and passion of our employees, retailers, partners, carriers, leadership team, and every stakeholder associated with Sky Gold and Diamond. Thank you again, and I'll pass on back to Mangesh Bhai.

Thank you, Atash. The success of Skygold is built entirely on the blessing and support of our stakeholders. The moment that truly touched my soul was honoring our long-standing employees. It was a small gesture of gratitude for their years of loyalty, and it brought back to so many serious memories of our early days. These are the people who built Skygold, and celebrating them was the highlight of it all. I want to hand it over to Siddharth Sifani before Siddharth Sifani takes you through the financials. I want to congratulate Siddharth on implementing stringent processes. General manufacturing is a highly capital incentive business. As you know, we are growing at a fast pace. Implementing processes in such a growth phase is not an easy task. Siddharth successfully streamlined the working capital of our business without growth being impacted. And our net working capital deals have successfully dropped from 71 days for quarter ended March 25 to 59 days for this quarter, March ended 26. Siddharth also successfully onboarded MSKA and Associates LLP, a part of Video International, as our scholarship secretary auditors, thereby transitioning from mid-size to global audit firm as part of our step in strengthening our corporate government's framework. I'll give him a two-year window within which he had to reduce working capital below 60 days, appoint a global auditor, and just to neutral operating cash flow. Within the first year, he has successfully reduced the working capital intensity of the business, and there is no need to raise external capital. Now, Siddharth is a special find for us. Hang over to you, Siddharth.

Thank you for your kind words and thank you to the entire leadership team at Skygold for your support. I am truly honored to be part of Skygold's growth journey and this achievement belongs to entire finance and sales team. I am confident we will Continue building a stronger, more efficient sky gold that creates enduring value for all stakeholders. Before discussing our Q4 performance, I would like to outline our strategy for cash flow management and debt. As Mangeh Bhai highlighted, our annualized Q4 exit fund rate for revenue of 7,650 crore is already close to our FY27 guidance of 8,100 crore. Because of this, we will need very little extra working capital to fund our growth. Additionally, we are shifting our business model towards the advanced gold format. As a result, we expect our operating cash flow to cash conversion in FY27 to be much higher than our long-term trend guidance. We have also included a detailed slide in our presentation covering this FY27 debt reduction plan. In our last call, we broke down our gross margin expansion. From the current year to date, our consolidated gross margin stands at 8.45%, up 245 basis points from 6% in FY24. This improvement comes from three main areas. A hundred basis point gain from reducing gold loss. A 70 basis point gain from our growing advanced gold business and the remainder from high margin value-added products like 18KT, 9KT, diamond studded gallery, and our unique co-creation designs. Looking ahead, our revenue growth will be driven. By three clear levers, increasing our share with existing corporate clients, expanding our distributed market network and scaling up exports. For this call, we want to walk you through our future back margin expansion. We know there are questions about whether these margins are sustainable or if they are over-earning due to rising gold prices. As a management team, we only provide achievable targets, and we routinely outperform them. In fact, our current FY27 guidance is already 30-40% higher than our initial estimates. Investors will also see that our debt production timeline is moving much faster than expected. We would like to categorically state that our operations are back-to-back heads. However, for those who still question the sustenance of our margin, our profit margins naturally improve as our share of advanced gold increases. Our FY26 fat margin stands at 4.5%. Under the advanced gold model, we only record the job worth fees as revenue whereas our traditional model records the entire jewelry value as revenue. Therefore, as advanced gold volumes go, our absolute profit and margins improve even though it creates a deflationary effect on the top-line revenue figure. We expect our gross margin to expand by 60 to 90 basis points due to better mix of advanced gold and studied jewelry. This is our first margin lever. Our second lever is reducing interest costs. Today, interest expenses account for 1.25% of sales, which is a significant drag. As we transition towards a net debt-free balance sheet, this cost will drop to zero, giving us a combined 200 basis points margin expansion opportunity. While these levers offer strong upside, we have guided for a conservative 5.25% back margin by FY2030. This represents an expansion of 75 basis points from current levels. We choose to be prudent with our guidance because our long-term aspiration is to become the largest global quality manufacturer. To achieve this, we plan to invest heavily in international infrastructure and use strategic pricing to qualify our global presence. Now, let us review the financial highlights for Q4 and FY26. Notably, our working capital cycle improved, dropping to 59 days from 71 days in March 25, mainly driven by 1. Increase in advanced gold business volumes to 11.5% for the year 26 versus 5.7% for the previous financial year. Secondly, increase in exports to 11% for the year versus 6% in the previous financial year, and privatizing shorter credit term customers. Our cash from operations improved from negative 272 crores to near-neutral operating cash flows of Rs.45 crore negative, which is in line with our guidance. Further, other income stood at 16.3 crore for the quarter of which 3.7 crore was attributable to gain on sale of investments and balance mainly includes all operational income like exchange gain on export of 8.4 crore and interest income of 4.5 crore for 24FL26. Now, I give the podium back to Mangel Bhai for his comments.

Thanks, Shizad, for the update. Before opening the forum for Q&A, I have said multiple times in the past that having a strong corporate culture is the bedrock of the company. To achieve our FY30 paid guidance of Rs.945 crore, we need to implement at multiple fronts. To be the globally largest manufacturer over the next decade, investing in people is essential. That is one of the reasons we rolled out ESOPs for all loyal and deserving employees. We would further expand the ESOP pool. Statistically, we would also be creating a group council with global industry veterans to guide us on the journey ahead. Finally, we kindly ask participants to avoid speculative questions regarding future government policies. Our view is that no further restrictive measures will be introduced. However, even if the regulatory environment becomes more streamlined, organized players like SkyBall are best positioned to benefit and capture market share. Thank you, everyone. Now, we open the floor for the question and answer.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask the question may press star and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to please use handsets while asking the question. Ladies and gentlemen, we will now wait for a moment while the questions are assembled. Our first question is from the line of Uchid Shah with Lumana Capital. Please go ahead.

Thank you, sir, for taking us through the presentation and congratulations on the good results. I just had a couple of questions. First is, due to recent increase in the customs duty and the government's appeal to reduce gold consumption, do you think this will affect our revenues or volumes in any way?

So, this is not the first time the government is increasing or decreasing the duty. We are doing the business for the last few decades, 20 years I have been in this business. So, I have seen this type of reason many times in the Congress government also, in the present government also increasing the duty as per the requirement, as per the fiscal deputy and all, and again reducing the duty whenever the environment is put and all. So, this is the measure taken by the government, and as per the consumer level, they take as per the MRP of the gold rate, now gold rate available at $155,000, they take it as a cost of buying. So, again, governments take measures whenever they take government. So, as we are into lightweight jewelry, right now, till now, we have not found any lower of the order or softening of the demand at the B2B level, Because we are into a light world jewelry segment. And nowadays retailers have announced so many gold exchanges schemes and gold exchanges will get more benefit in the making charges. Many schemes have rolled out. We have heard that at the retail level, the gold exchange has gone up to 20 to 40 percent above. So, regularly 20 percent gold exchange business, it has gone to 40 percent. And again, by talking to our large customers, large corporate pool, and the owners with them, and talking to them, they are also telling us it is very early to predict in one week. So they are analyzing June month, July month, how the consumer behavior is going to happen. But right now, there is no stopping of demand at the B2B level. A stable demand is there.

Got it. Got it, sir. Thanks for that. Second question is more around, sir, the recent transcripts or concords of Titan, P&G, the retailers. They have said that they are seeing higher demand than lower character jewelries and towards gold bars and coins. Do you think this shift of consumers towards lower character is affected in any way?

So, this is a part and parcel of the strategy because some things are goes for 9K, 18K. So, our dengue looks for 9 carats and 14 carats. The mid-generation goes for 18 carats. There is some shift. We are also seeing that 18 carats is going up and taking place of 22 carats. But 22 carats, again, is the leader in India. It is at 70-75% of the sales. So, again, bullion and coins are sold at the retail level because some of the customers want to invest in bullion and gold. So, first, the country, if they want to buy, actually, after six months, they take the bullion and coins and then they give the bullion and coins and replace with the jewelry. So, this is the shift of, from, the budget-wise shifting also going on. So, making charges are higher in the lower calendar, in 9 and 14 and 18 hour margins are better. So, it's a mix of business we have to do, we have to plan the strategy as per the gold rate and the market conditions the customer keeps on introducing new carrot, new strategies and all. So again, diamond jewelry is picking up because of the gold rates and all. So diamond jewelry, we are at one and a half percent. So this is a strategy played by the retailers as and well required as per the environment of the markets and all.

Perfect, perfect. Thank you, sir, for that. I have just one last question. This is more around the working capital cycles as well. So, if I read previous two transfers and concord items, we were also trying to push for gold metal loan, through which we were able to get lower interest rates from the banks or financial institutions. In this presentation, actually, I don't see any mention of that. So, is there any strategies we have taken to reduce the gold metal loan?

So, again, gold metal we were using in last quarter, and this quarter we are not using because gold rates are higher in GML, because when we are market is, market rates are below 3-4 lakhs of the gold metal. If we buy it from the bank, we are getting at 1.62 lakhs. In the market, we are getting at 1.57 lakhs of 50 lakhs, and the costing is going in the market. So, we go as per the part, whatever it is, right now, gold metal loan is very much cost here, as per the cost side, not as per the interest price. So, we are at zero gold metal loan right now, and again, the government strategy is going on for this import and all. So, we are at zero gold metal loan right now, as per the part, whatever it is, we will go further. Yeah, perfect.

Thank you. Actually, we are accessing the gold. And whichever gold rate is beneficial to us on an overall fat level, we are going by that option. At this point of time, considering the market, the actual prices, the local market is at a cheaper rate versus when we buy from banks. And that is why as of March, our GML outstanding is new. But we have 170 crores of GML facility functions with us. And as soon as we are having a better pricing for the GML, we will go for the GML. Worry.

Got it, got it. Thank you, thank you for answering the questions and all the rest for the future.

Thank you. Thank you. Our next question is from the line of Jintan Sheth with Girik Capital. Please go ahead.

Yes, hi. Thank you for the opportunity and congrats to the team for walking the talk all through these years. And congrats, Akhat, for the promotion. A couple of questions, if you can provide volume numbers for the year or for the quarter, because that was missing in the presentation. And I know you refrain from asking the volume and the gold price in your ride-in, which are provided for SI30, but directionally from the current 1200, you know, 15.4 tons of gold processing capacity we currently have, where do you see the capacity required to What kind of capital is required to scale that capacity? So that would be the first question and I will come back into it.

So, again, volumes, just a second.

We would like to just inform that in the last Q4, we have done around 650 kgs per month, and that is in line with our Guidance that we have provided. However, from a go forward perspective, we are expecting a growth of 30 to 35% in terms of the top line. And since our major focus is on the advanced gold model of Business, which has increased from 6% in FY24 to around 12% in FY26, we expect that our capacity utilization will improve going forward. Because of advanced gold? Yeah, because of overall advanced gold and volumes also.

Okay, so why I'm asking, you know, is because if you see the advanced gold knowledge, you don't recognize the entire gold jewelry in your revenue, right? Because I do have the job work, right? So revenue is a little bit a misnomer number, where we should ignore revenue guidance or revenue number per se, Because if you shift your model from 11.5% to, say, 20% or 30% over the next few years to advanced goal business, then the revenue definitely will not look like what it is today. Then it will be completely different, right? But the underlying volume and the processing capacity is what will matter in the future, right? So that is the reason why my emphasis is on the volume side of the calculation rather than the value side of the calculation, if it makes sense to me.

No, what you are saying is perfect. And in my speech, I have explained the entire accounting policy for the advanced gold business. And the current projection that we are giving for about 30 of 18,000 to 19,000 crores considers 30% of advanced gold business. The exit run date for the advanced gold is close to... 20% and the overall average is close to 12% and we are focusing on overall cash flow per se and so the main focus will be on cash flow generation and also on the growth of 30 to 35% in terms of the absolute sales. The number, perfect.

So, again, I will say that you have understood the business well, and will tell that we have guided 30-30% of the revenue achievement of the target, and again, the advance board will be the additional to that. So, it will not come in the revenue, but it will add on to the profit margin. So, our profit will be improved by the advance board, and advance board will help us to improve the volume also, and again, 30-30% is the revenue growth we have guided. So, both we are guiding.

Yes. Munge sir, not only is the profitably improved, but it also improves our balance sheet as well, because Anwar's gold doesn't require us to, you know, fund our gold balance sheet. Correct, correct, correct.

In this industry, three, four major clients are also only there in the advanced gold business, so we are targeting them from the advanced gold, and regular our major 15-25 clients are on the same basis, so again, same revenue also will come and grow by 30-35%. This is the additional business we are gaining and we were at 0% now we are at 12%. So, 100% you told it is very better that our task flow working cycle will improve and our task flows will improve by this business.

Correct. And lastly, if I try to understand the growth margin, right? If you do the advanced gold side, you just book the revenue for the job, which is equivalent to your growth topic, correct? Yeah, perfect. Is there any difference between, you know, in the gross margin between the goals provided by us versus allowed goals, or it will more broadly be in the same line? You know, the gross margin, I'm not asking that the mix will, that every item or every 18 karat or 22 karat of, you know, smaller karat or jewelry will have a different gross margin for you, but on a life-to-life basis, is there any differences between 18 karat funded by gold funded by art, versus 18 karat gold jewelry, which you provide to the retailer, on a reverse metal business, You know, both are, has the scenarios with us, and is there any difference in ethical health?

So, I will answer you from both from operations and from the finance perspective. From the operations perspective, what we are saying is Right, the gross margin for the advanced gold business is lower by 70 bps to 125 bps. But also, we do not have to invest our working capital on it and we save on the interest cost. Hence, overall, if we look at it from a PACT perspective, it is PACT Accretive. While on the finance side, since the advanced gold business has an infinite ROCE, since it does not need any working capital, and plus it is fact-accredited because there is only recognition of the service income and the value of the gold doesn't get captured. I hope I have answered what you are trying to ask.

Correct, correct. I got it. I'll jump back in. We have a couple of more questions. Sure. Thank you. Thank you. All the very best.

Thank you. Ladies and gentlemen, in order that the management is able to address questions from all participants in the queue, you are requested to please restrict yourselves to two questions only. You may rejoin the queue if you have any further questions. Our next question comes from the line of Deep Shah with Equalist Securities. Please go ahead.

Hi, sir. Congratulations on the set of numbers. So, just two-three questions from my side. First, if you see recently government also put restriction on import of duty-free gold. They have restricted to 100 kgs. And considering that we did set up our Dubai office for duty-free gold, how does it impact our plans in terms of importing the duty-free gold?

Okay, so the first thing is that this duty-free gold, there is no, for us, the duty-free gold restriction is for the advanced authorization license only. At this point of time, we are not importing any gold under the advanced license. So, there is no impact of sky gold because of this recent change in the government policy. Further, I would like to just add that in terms of the local market, gold availability is not an issue. And further, for export as well, gold is available at banks as well as the nominated So, the availability of gold for manufacturing and export or sales is not a problem. So, let's understand the background of this policy change. So, this policy change has been made so that only the eligible exporters get the required allocation. Previously, there were some non-wanted companies also who were getting this advanced license per se. And secondly, the license is not. One can get up to 100 kgs per day and on fulfillment of 50 kgs of export, one can once again apply for the advanced license and can get a better chance.

Okay, got it. So, second is on the working capital side. We have seen a material improvement in our receivable days. If you see, it is still below what it used to be in FY24. So, do we expect our receivable days to go back to FY24 levels around 2022 days or we should stabilize where we are right now?

So, again, advanced gold business is increasing, and again, so we are going for the quality selected business. Those who have lesser trades and exports have a better lesser trades business. So, 100% in four to six quarters, we will be back to that 22, 23 days, and we will take four to six quarters. The only person you will be glad because our working cycle is improving on the exports also at the domestic level, we have control level efficiency of business and on and again, everyone is good at that.

Okay, great to hear that. So, one last thing. Can you just break down how has been the performance in the domestic business and how has been the international performance? If you just can break down that.

Yeah. Yeah. So, out of total revenue, around 12% is for Expo and remaining 88% is for the domestic business.

Okay, got it.

Thanks for the opportunity. Thank you. Thank you. Thank you. Our next question is from the line of Palash Kawale with Novama. Please go ahead. Thank you for the opportunity and congratulations to the team for very good numbers.

So, my first question is, do you see any pressure on international demand because of positive political issues? So, again, internationally, we are at the range of 7-8% right now. We are at the range of 11%. And Dubai and UAE is going back to normal. It has 50% business has come back to normal. And we are expecting good business from Malaysia, Singapore also. So, we are expecting 1.5% will be back to 12%. Right now, we are 8% and so, balance 4-5% we are covering from the Indian market. And again, the customers like Malwar, Kalyan, Gawaluk are same at the Dubai and UAE and here also. And they have committed us to balance 4% from here. So, again, we are now first time doing exhibition in London, UK, a new segment. We will serving that market also from UAE-Dubai office. So, I can say the decent 70% business is going at the international level.

Okay, okay. Thank you for that sir.

And sir, your inventory days were a little higher. So, any comment on that? So, again, Akshay TT was on 28 April. So, some of the products were ready in the march and then delivery was taken in first week of April. Because at the march and forefathers, nobody wants to build the products anymore. So, that time was still a pilot. And again, in April, it was delivered.

Okay, okay.

And sir, last question. Any update on land monetization? Good morning, everyone. Yeah, we are only, we have appointed the two, three agencies also. We are accepting it by August and I think August or September, last September, we will, we will, and cash it. And so, we have appointed two, three agencies for the sale process also.

Okay, okay. And so, I don't know if I heard you right or not. Your exit run rate for advance goal is 30, 30 percent, right? 20 percent.

30 percent, 20 percent. Okay. Thank you.

Our next question is from the line of Harsh Shah with Bandar Asset Management Company. Please go ahead.

Hi, Dean. Am I available?

Yeah, you are available.

Hi, hi, hi, team. First question basically is on your guidance. Basically, revenue going 3x in 4 years, right? Especially when we are also targeting our triple, I mean from the current level to 3% in S540. So this means that our volumes actually should grow at a much faster pace, right? I mean, 40% period. Is that understanding, right, sir?

So again, 100% we have guided the revenue also. If we are guided 35% revenue, so 27-28% will come from volumes only. And again, the Erwan Gold business is also, so you are predicting that volumes will also increase. But last time, there is a list of 9,000, 18,000, 22,000 and 24. And again, Erwan Gold. So, because gold rates are now stable and came down also in last 3-4 days, it is corrected by 10%, so this is a very positive signal for Indian market, and we are getting a report from just today only that customers are 2-2 because gold rates have come down. So, again, our, hello, it depends on the gold price, but we are buying 33% of India, in that 27-28% automatically gold volume to each other, and additional of advanced gold business.

Okay, but it should be ideally higher enough because you see it's currently basically on 650 kgs monthly revenue, right? We are doing average, let's say, 100 kgs of advanced cost, right? At 20% exit, roughly. Right? So, and as you said that, you know, advanced gold actually is deflationary on your own revenue because we only record the value addition, not the entire amount of value plus value addition. Right? So, if we are striving for 30-35% revenue CAGR, ideally our volume should be much higher because we are targeting even higher share of GML. So, for the advanced gold. So my understanding is that we are in some way building in two tons of gold per month in FY30, roughly.

So, basically, in terms of the revenue for FY27, we are expecting 8,100 crore, and by 2030, we are expecting a 30% to 35% growth reaching to 18,000 to 19,000 crore, with a guidance of advanced gold model, advanced gold business to the expense of 30%. So, what you are saying is, Right, so we are looking at a growth in the volumes as well as growth in the business, but with an eye on the overall cash flow from operations as well. And we want to balance all three of them in this new phase of Sky Gold 3.0.

So, again, adding to that, if gold prices go down, the volume gets exaggerated, and if gold prices go up, the volume gets moderate. So, it's a combination of high price and low price.

Got it. And, uh, Mangesh, my, in this, this guidance, uh, of F5C, how much would be the proportion of revenue coming from, uh, overseas business?

So, at this point of time, the export is close to 12%, we are expecting that the export should be close to 20% of the overall sales is what we are expecting. So, that does not change. That does not change. No, no, that does not change. In the export business, it is okay. There can be some clips, but that is fine.

So, because of which we are serving Singapore, Malaysia, and again, now, right now, we are doing exhibition in London also. So many countries that we saw from that office here.

I was wondering if the proportion will go higher than 20. That is the question, right? Even the guidance.

No, no, no, no. No, at this point of time, we are expecting 20% of export sales. As we reach closer to 20% of the export business, we will again relook at this. But I would just like to let you know that exposed business, we are concentrating more because it has a better ROCE since the overall receivable date for the exposed business is better versus the local business per se. And so this overall improves our ROCE and the working process. This one is no advance, so it is completely on an outright model. This is the traditional model, yeah, yeah, yeah.

Okay, got it. And second question is for Akash. Akash, first of all, as you move into your new role, Akash, what would you do if he is going to F527 and not Akash?

Okay, so the main priority would be, as Siddharth and Manishwai mentioned, that we want to go full-fledgedly in export market. If you see, my past experience has always been to export, and this is one of the territory which we have to explore for us. Also, we want to give horizontal and vertical growth to the company, which means we want to improve our diamond business, our lateral business overseas. So, I personally feel that we still are at the tip of the iceberg. We have a lot of things to capture overseas. So, that is our key focus. We have a big area right from UK to Malaysia, Singapore. There are a lot of untapped potentials, which we still have to explore. So we are now slowly and gradually targeting, creating the product line, ensuring that whatever we have done in India, which is with our co-creation activity and merchandising with the retailers, Ensuring that we can work in sync with them and create better products and better collections so that they are dependent on us. Similar way, the same module will take it overseas also. And I'm very happy to share that as Darshan Bhai mentioned in his speech also that we have smoothly navigated through the storm which, you know, that entire Middle East crisis of war. But we were able to navigate through it and which gives us a very big confidence that we'll go full-fledged with the export market.

Great to hear all the messages.

Thank you. Our next question is from the line of Bharat Jayanani with MT Research. Please go ahead.

Yeah, team, congratulations for a great set of numbers. So, my first question is, what is the gold hedging percentage that is there currently, which we are following? So, you alluded to some reduction in the GML. So, we just wanted to check, you know, what is the overall hedging that we do for gold as of now?

We are at approximately 99% or something, half a percent or 0.75%, we cannot control that, but you can say 99%.

And so 99% is hedging. I mean, how it is hedged because earlier we used a combination of, if I understand correctly, we used to do it via M6 features or we used to do GML as well. So, I mean, what is the proportion of each element now, if you can elaborate?

So, we are at zero usage of JML, so we are totally hedging in M6, which is the only one tool available in India. So, we use the M6 tool, and every sale and purchase is hedged, and we have a hedging team and a pricing team, and they follow the route. So, we have the, again, to ask the question, M6 is the only tool we have, and we hedged there.

Okay, great. And, sir, I just wanted to check on the capacity thing as well. So, basically, you said that you will be monetizing the current factory and move to a leased factory. So, currently, what is the capacity currently that we have? And if you move to a leased factory, will you have a bigger size plant to increase the capacity or how would you do it?

So, again, 1.2% capacity we have. We are at 650 kg last quarter, I think. So, we have at 65% inflation. Since 2028 March, we don't have any problem with the capacity. And, again, if we need, we are planning for a supplied model. So, whenever we need, we can go for rental. And again, for the sale, the land sale we have put, many agencies are coming with the proposal that we will buy the land and whatever requirements we will build up and give you for the rental, they need whatever the procedures of rental is going in the market. So many proposals are coming, we are looking into it, how we go for it, we are planning on it, if we move total facility to the one facility or we take one and half lakh more and again continue with the facility. So as per the requirement, when the time comes, we will do the policies and all. But we are looking for the agencies who come to us and buy this plan and give us, construct the building on their cost and give us on the rent in the future. We are open to that. So, again, it will be needed in 2020 after 28th March. So, after March. So, there are many options open. Many agencies are coming. Many independent buildings are also available for rental. Oh, great, sir. Thanks a little bit.

Thank you. Ladies and gentlemen, in the interest of time, we will take that as our last question for today. I would now like to hand the conference over to Mr. Mangesh Chauhan for closing comments. Over to you, sir.

Thank you so much, all of you, and ending this question, we want to increase our portfolio in domestic and export market also. Again, we will say we are a design-led company, not just a B2B manufacturer. We want to be a globally largest manufacturer. So again, the team with Akash, Siddharth, and again, many more personnel have to be announced CEO, and we are planning on that. So second layer of management is building the empire totally. Thank you so much. Thank you everyone for joining us today for our continued trust and support. We hope we have been able to address your queries and provide meaningful insight into our performance and future outlook. On behalf of the management team, Tygold management team would like to express our future appreciation to all our shareholders, customers, banking partners, employees, suppliers, and other stakeholders for their continued confidence in the company and for being an integrated part of our growth journey. In case you have any query for further details, you may please contact MUFG INTIME, our Investor Relations Partner. Thank you so much. Good afternoon.

Thank you, everyone, for your time.

Thank you. On behalf of Sky Gold and Diamonds Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.