Operator
Ladies and gentlemen, good day and welcome to the CASE Journalist Limited, Q1FY27 on this conference call. As a reminder, all participant lines will be in the letter-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. To need assistance, during the conference call, please signal an operator by pressing SHAR, then ZERO on your touch-tone phone. Please note that this conference is being recorded. Thank you.
Good morning, everyone, and thank you for joining us today. We have a touch today with the senior management team of Shumkei Travels Limited, Mr. Manor Kandilajan, Manage Director, Mavir Kandilajan, Old Hand Director, and Gronilajan, Police Study Management, Militimity BC, Dr. Shumkei, Dr. Ghoshmooli, This is the world's free jewelry platform, supporting customers, offers a broad portfolio of hand-crafted 22 carats and 18 carats gold jewelry, a craft of categories including manuals, wedding necklace, chockers, and other contemporary designs. What has remained constant with this jewelry is our focus on craftsmanship, customer relationships, and execution. This is where handcrafted jewelry continues to have a strong and written position, giving us We have a competitive edge in the craftsmanship and creativity. Our business has therefore been built around combining design capabilities and custom understanding with a deep ecosystem of skilled craftsmen and characters. At the heart of this, we have built a strong network of characters with relationships developed over a long period of time. This engineering network provides us with access to skilled and experienced craftsmanship base, supports high articular retention, and consistent quality of craftsmanship. Our satellite model enables us to remain focused on customer requirements, design and sorting, while leveraging our established articular network from crafting the jewelry. This model gives us something that is particularly important in our industry, that cater to large and bulk environments, and understand customary progress requirements. This combination of craftsmanship directly on a set-like execution has been one of our important foundations of our growth. The other important pillar of our business is our clientele. We have built strong relationships with leaving corporate and jewelry brands through a pan-India business. We are a significant part of our business coming from our business. These relationships are built around reliability, quality, timing execution, and the ability to understand and respond to customer requirements. As an organized player, I pretty easily approach creativity and innovation, position us as a preferred vendor, enabling us to grow alongside our clientele. We have also seen a steady growth towards our corporate customers over the years, with a contribution to revenue increasing from 55% in financial year 24 to 64% in financial year 26, This is also reflected in the opportunity we see ahead, as an existing customer has expanded Thank you. Next thing are established co-markets, where we have developed small customer relationships. Our plan in our presence is very diversified, with West India, contributing to around 32% of financial real estate revenue, East India to 28%, South India to 21%, and North India to 18%. Reflecting a broad-based customer footprint across the country. We will look back at the journey of some case, the real of its significance. We started in 1992, and in 2006, some case was a private limited-holding cooperative. Over the years, we strengthened our presence within the industry ecosystem and continued In 2021, the first 500 floor came over the sheet. In 2025, we converted into a public liquidity company, and in August 26, some case made its public market debut. Within the shares, getting listed on the NSC and ESC on the 26th of August 26. The milestones are important and not merely because of the numbers, but we need to scale the underlying business. Looking ahead, we see multiple avenues of growth. First, we see a significant opportunity to keep our relationship with existing customers. As our customers expand our retail network, our objective is to grow alongside them and increase our world's share. We have a practical opportunity for the organized, ongoing formalization of Indian jewelry industry. As the industry becomes more organized, we believe exquisite customer relationships, craftsmanship, capabilities, quality projects, and enterprise production ecosystem can become increasingly valuable. Third, we will continue strengthening, customer retention, approval creation, and customized product development. On the fourth stage, we see opportunity to expand a geographic presence while continuing to deepen our presence in our established market. And finally, our attract-right value ecosystem gives us the ability to support higher volume without requiring a proportionate increase in great manufacturing infrastructure. We have also believed that the breadth of our product portfolio gives us considerable room to grow with our customers. Our capacity is to extend our ideal festive contemporary and beautiful jewelry across both 22-carriage and 18-carriage segments. We have also been steadily expanding our presented 18-carriage jewelry, with our revenue increasing from 18-carriage in financial year 24 to 21-carriage in financial year 26. Reflecting the growing acceptance of our products offloading and the opportunity to grow in our investable market. So, when we look at the concrete results today, we see a company that is a strong foundation, will grow more than her people. A meaningful customer relationship, a proven partnership ecosystem, pan in their reach, an asset-type offering model, and importantly, a demonstrated practical role of healing both revenue and profitability. The next phase is about taking the foundation to a much larger scale. We believe the opportunity is not only to add customers, but to become a larger partner who are investing customers. Not only to enter new markets, but to deepen our diligence in markets where you already have the relationship, but to continue improving the quality and profitability of the growth. With that, I will take you to the financial performance over the years and if you want a financial 20 seconds. Thank you very much. I will briefly take you to the three financial highlights for Q1FY27. Coming to our financial performance for Q1FY27, he has started this year on a strong note, This is a revenue from operations at Rs.424, growing 55% year-on-year, from Rs.273 in Q1-SY26. Importantly, profitability we made this form, which draws only at 66% up by 95% year-on-year and 7% water-on-water. A complete wide growth margin expansion of 323 basis points year-on-year and 1-1-1 respectively. A bit of 261 growth increasing 92% year-on-year and 30% 1-1-1, with a bit of margin improving by 279 basis points year-on-year and 505 basis points 1-1-1. Thank you. Thank you. How will we continue to build customer relationships and continue the business? Now let me take you to the financial prediction. Part 3 will reflect a strong foundation and consistent progress. Revenue has increased from 909% in financial year 23 to 1.062% in financial year 24 and 1.044% in financial year 25 and 1.0631% in financial year 26, Thank you. Thank you. Thank you.
Operator
Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 or your touchstone telephone. If you wish to remove yourself from the question queue, you will press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment on the question queue as I will. The first question comes from the line of Nishita with Sapphire Capital. Please go ahead.
Hello, we're morning. In Cuba, we had a worldwide growth of 55%. How much of that growth is coming from the volume growth, and how much is it because of the price increase? Is the volume growth consistent? If you would quantify that number.
The quantity, right now, I can't say.
Right now, not in the end of the day, but it's...
Okay, so, volume from QNF26 to QNF27 is the same. The volume will be sold.
Yeah, okay. Approximately changed.
Right, so majorly the growth is coming from then, the size increases because the volume has remained same, right? Okay, okay. And my next question is, so, we have very fluctuating the margins, like, so, what are the, what are the, what are the margin that you can expect, And what is the reason for this EBITDA margin increasing human aspect of the selling?
Dr. Ishida is now here. So, technically, if you see quarter on quarter, now, we have different varieties of products which keep on selling. So, the answer is if the Diwali products may have something which is exclusive itself, the collection itself, where there is a normal phase-down period, it's something that we will keep on changing. What is the purpose of the profit margin rather than the percentage of the profit margin?
On a certain level, can we expect the profit margin to be in the range of 7%? Because in Q1, we've done 10% profit margin, like commendable.
So, technically, over the years, Sanjay has grown at a certain pace, and obviously our future expectations also stay from the same time that we grow at certain pace, which is almost similar, or something better to what we have done on here.
Mike, so is this end-second pandemic in Sanjay is a long term? Right, okay. So, when you say that our product mix has been better in Q1F27, what sort of products
So, whenever there is a festive season, for example, we have a collection which is more intricate and refined, more detailed designs which are very rich through the, this is like handcraft, it will take more time to manifest work.
Do we also have a B2B segment, or are we a B2B company?
We are purely a B2B company, supplying to major, corporate, and individual store of retail.
Hello, congratulations. The results are not good, better, but it's the best one in the industry.
When everyone is feared about the margins, you are increasing your margins.
Very much congratulations to you.
My first question is regarding the portion in total clientele, you mentioned that 66% is a corporate clientele. If I am wrong, please mention me. If I am right, then you can answer my question. Does it require a higher working capital or whether corporate provides you the advance or any other facilities?
Sir, I'll answer this question to you. Basically, we have arrived at around 50 to 56 percent of our corporate clientele. This is what we do. And these clientele select a lot of things from our design of the reactor. So, we have designed the development sector and the entire thinking course and everything.
But whether corporate trend gives you any advance for the development? My second thing is, any plan to set up manufacturing is it for the machine-made delivery or to remain only in the handcraft delivery?
And any plan for moving further to 14 karat and 9 karat? Because that is also becoming popular with considering the higher gold prices and in future also those may move further higher.
Operator
The next question comes from the line of Rita Lastrado, with Bostam, please go ahead.
Hello, I have two questions. So, I would like to understand the handcrafted gallery, how is the making hazards for the basis lost in the industry versus the machine-made gallery?
Time to make that kind of music because every piece has been delicately designed and everything, so our wastages are really in a long way, like it goes from around 4% to 14%, they're both significantly wasted for the same, and technically machinery we don't specialize so much into, so we won't be able to comment on that thing.
Okay, so what would be the turnaround time for making this handcrafted with it? Like how many days do you get this done in?
It takes around 2-3 weeks to manufacture some kind of company, like if you develop run-up which has got around 20 pieces or 15 pieces or 10 pieces of it. It takes around 2-3 weeks to manufacture that.
Okay, and on the second question, I would like to ask your volume order for the next three years and your sustainable data margins in your handcrafted jewelry business.
So, considerably, over the past three years, we've grown at a good percentage. Obviously, in the future, also, we expect something greater to happen in the company. And talking about the masses as well, I've spoken earlier on this call, that technically, yet, we see the future is bright for the kind of product that we are doing, the ready movie that we are doing to our customers, the brightest movie, the zoom call, whatever we do, like from top to bottom, where the bride is getting married, we are setting up
So, will you be able to give any numbers to the Kaggle, your future volume author, in SD for next year? Any visibility if you can provide?
Sorry, as of now I am not ready with any figures in my hand, but obviously as the future comes in, 42, 43, we will be ready with things in hand as well.
Thank you. Yes, sir. So, technically, in our company following the policy which has been going over a year, we buy what we sell. Basically, if we are doing something today, we immediately return it at the current market price. So, technically, the loss of adding the gold again at the same price is never there for the company.
So, if that is the case, I'm just trying to understand, your quarter margin is improving. If you look at Q4, Q3 of last year, Q4 and Q1. Whereas, in the Q4, the gold prices were the highest by the end of March 26. Whereas, by June 26, the gold prices came down almost by 10%, if not more. So while the gold price is coming down quarter on quarter from Q4, 2026 to Q1 or 2026 to 27, how your exact margin is improving substantially compared to Q4 when the gold prices keep on falling compared to Q4 as a base?
So, technically, such as an accounting system, we call an average measure system for accounting. So, if you see a gold book value is in an average measure, so technically, whenever there's a Q4 versus Q1 comparison, you'll see a difference with that. When you compare Q1 to Q1, you'll see that the margin has still needed.
So, if this margin improvement is a major function of the product mix, for example, you are moving towards more towards 18 carats where the margin is better than the 22 carats, is it? Because you have already said the volume of the gold, what you have processed, is probably more or less same. It is not a volume-based growth, but it is more of a fried mix-based growth. Is it understanding correct?
Definitely, sir. Whenever we move to a new product, like, for example, like, 18 characters we introduced, it has a better cut version of the 22 characters, what we've been doing. Because 22 characters is going on over here, and 80 characters are something newly introduced. So, definitely, there is a better cut over that, sir.
So, can you give us, without going to the details, can you give us some just and same idea that What is the difference between your making overall between 22-carat and then 18-carat? Without going to specifics, just a rough idea. How better it is? So it is good for us to understand the more we go towards 18-carat of processing, as that is the new trend in the industry, how your profitability or specific EBITDA margin can have an impact, just to get an idea.
So, technically, what I answered earlier is that the product range makes certain percentage from 4 to 14 percentage. So, technically, looking forward today also, our 22 carat is the major driver that 18 carat is a growing market for us. So, technically, if you see the margin percentage are good in both the industry, but obviously 18 carat takes a bit of time, so we can try to upgrade higher margin.
When did your operating cash flow turn positive, and how is growth funded, won't the 38 crore working capital, do you think?
So effectively, you are saying, up to now, you are funding your gold inventory using the working capital custom loan. But now, after the IPO, you will partly going to fund through your equity, because one of your objectives of IPO is to reduce the debt. And you know that a long-term debt, you only have a short-term debt. So, as per your prospectus, you are using this equity to repay a working capital loan, which is funding your inventory. That means, effectively you try to do an equity funding for your inventory, which is costumably netter. Is it the strategy?
It's not actually costumably netter, because the business is great, and the retirement of working capital is also great. It's not that right now the requirement is there and tomorrow it won't be there. So, we are building, the business is building the requirement of no working capital. And working capital, right now we are funding to the income. And profit we learned, we put in our business.
So, that means all your profits more or less plowing back for funding your inventories because that is your main source of income, right? Okay. And just one more. Now, more of this, whenever we look at the conference call of all those new customers, whether it is Salyan or Tien Hargill or all the customers listed, more or less they say one thing that they are doing more integrated models. That means, instead of they outsource their category to the company like you, they are doing mostly in-house, and they are appointing the category mostly on their own. Now, once your customer is going more towards an integrated model, how big that is a threat for you? Because if they started doing everything on their own, then the value was your company which is a kind of an outsourcing category model. How sustainable it is?
I'd like to answer this question as an interesting question, sir. So, what happens is, as we think that some case dwellers specializes in its hand-crafted jewelry. So, sir, when hand-crafted jewelry comes in, it takes your experience from the promoter as well, and the caregiver as well. The caregiver network work we have, the creativity work we have, the designing structure work we have. I would like to give you an example of a masala child made by hand and a child made by a machine. You would rather prefer a tea having made by hand, which has its own specialization, it has both masalas and everything. So, technically, the customer is one of the help of the chain. We have a hand-crafted jewelry. We have seen our customer mix, we mentioned in the presentation as well. If we stop leaving customers around the industry, plus we throw to our customers around India. So our personal mix has always appreciated the design that we make, the quality of the design, the weightage of the design, if you can say. So personal appreciation has been there over the last three days, I've been manufacturing, I've been manufacturing, I've been manufacturing, I've been manufacturing.
Thank you for this clarification, it's helpful. I will ask the last question if you may allow. The question was, now, in a market when almost always really something, higher margin because of very saturating gold prices is going up and going down, and as the bondage you might be doing is increasing in the current geopolitical situation, it is putting a pressure on the gold prices overall internationally, and of course it will have an impact in you as well. Now, what exactly do you have a moat in your business? Because this is already kind of a business which many people can do, especially if you go to Bengal and others, their carriers are doing the business for hundreds of years. What you explain your investors, what kind of a moat you have that will keep your customers growing I mean, in an industry where many of your players are already existing and far larger than you, and you are showing your balances and the profits consistently, your margins increasing in a very high demanding environment. So, without even a reader, if you can explain that what is exactly the most which is differentiating you compared to your partner across India, which may be much larger than human size.
Look, if you see, country's journalists have always been into handcuffs and bullying. A delegated men have to initially, if we told you initially also, that a jury will attach to emotion. Specifically, we see around 3 to 4 black women happening every year in this country. And when it's stated attached to emotion of a daughter, a father would never let her be, let death up as a bride. As a major contribution in India, the 50% of our sales comes from almost rival duty. And at the special end, even over the years, it's a rival duty. So technically, there, I might say that like immersion attached to certain things, or there's a compromise happening at any place. So technically we see that this sector will not stop happening, India as a tradition which follow, I feel that things will improve better than that, so as an emotion I think India is growing, and India as we saw the GDPR at 7.8%, which was very much.
My question was how you differentiate yourself as a company compared to your peers, which are larger, because whatever you are saying that applies to everybody, even your competitors, even your peers are in the same macro environment when you are working. I'm just trying to understand what makes Sankir's jewelry something unique in its position compared to its peers, where you are showing by your profit of loss statement that your margin is consistently increasing in a very challenging market environment. So what exactly differentiates you from your peers?
As I told you earlier, I can say that my product mixes purity and profit. There is nothing related to machine work at least yours. So that emotional assessment gives me a step forward for that. Plus, the product makes, the design makes, the pro-creation, what we do for our customers has always kept us as a preferred vendor for all our customers. If you will see certain awards also we've taken as a preferred vendor for our company, You've given certain recognition also from the industry, which has shown that you are one of the record renters or record acquires to our customers. So, we've always been getting that prepared in the market and the industry is large, and I hope everybody is doing fabulous business in the industry, and we will keep on doing good business in the industry. But yet, companies and others also will not be left behind. We will also be a threat forward also. Thank you.
Operator
The next question comes from the line of Vijay Shah with RTL Investments. Please go ahead.
Thank you very much for the opportunity and congratulations on your listing. I have three questions. First, if the company has been already making this intricate design and complex design over a few or something different with the future?
No, sir. It's almost in three. Since the start of the firm, from the long end, it's already concentrating on the handcraft with Bhuji on the first. Okay, sir.
Honestly, my question is relating to the margin.
Honestly, I am just unable to understand the margin.
Now, I look at it from the e-cut. You were doing this kind of work earlier also. In F23, your gross margin was 4.9%. In 1QF27, your gross margin is 10%. Both of the journals don't have gross margin of 30% even today. Even most of them don't have, every time you have 10%. If you look at Kalyan, if you look at item, who are actually selling the gold, who are getting the customer and selling it, they don't have. If I see others, when we come to our retail, B2B, they also don't have that kind of margin. The moment we have seen this kind of margin expansion, and I understand that you are telling me about product mix, but I really don't think that product mix can explain this. So this 2.5% of the margin going to 14% margin, which is probably in the industry. Can you give us some mathematical number that what is the problem which is changed, and what is the margin in that degree, and how is that changed, And this is how mathematically the margin grows up from around 1.5% to 15-14%. If you can give, and I understand you and I have some, you know, the thing, but it says that F23 and F25, it is 2.5% margin to 10%. So, can you give us some mathematical idea, exactly what was your product used in F23, why is the margin was low, and what is the product used in F26, and why margin has gone up?
Sir, one thing I would say is that we are blessed to be in the business of gold, usually, and...
Sir, all the companies are in India, combined company, and this is only gold jewelry company, and I'm not going to see this kind of margin expansion, so I'm just trying to understand, see, I understand the macro, I completely understand everything, and you understand the gold thing, so the thing is that gold, you are saying your margin number, and your margin expansion, both are timed out, and they are timed out by your margin. So, everyone wondering mathematically, if you have some idea that this was your product missed in F23, this is in F26, and this is why your marginal increase.
So, technically, yes, the product missed what you call was one of the factors, but there has been a lot, aside that gold, you have left to be in the gold, gold, you have left to be in the gold, gold, you have left to be in the gold, gold, you have left to be in the gold.
Sir, this photo is ever more gold-tried gain, as the gentleman before me explained. Thank you. So, if you give much more granular detail, people in the service will get much more confidence in your number. So, that is my suggestion, you can consider. But moving on to the last question, you are saying that you get better margin because of you are doing detail and intricate design. And now, in the presentation, you have put, you have seen exact growth in the market of India's wealthy market, of which more than 50% is bridal, so it is more like 4 and half lakh growth. Your turnover is around 1,500 growth or so. So, as your customers must be sourcing a significant amount of price and value, or I would assume similar complexity from everyone else, then why should they pay you more margin? Because it doesn't seem that you are like 90% of the market or 30% of the market in that intricate segment which you are talking about. It seems from the top-down number, there are like many people like you, and you know, just like, you might be only 2-3% of the market. So, just trying to understand why they pay you higher margin, you should work with me.
Sir, definitely, if I see, the viral market is huge in the industry and there is a lot for our culture to scale as well in the same segment. Technically, if you see, there is no business leader who specializes in the bag and food segment, but yet, whenever there is a retail store, a retailer has to take on 10 to 15 people depending on what design they like, what relationship he has with the supplier, what credit Thank you, sir.
Operator
The next question comes from the line of Mohamed Nadir with Ico Quantum Solutions. Please go ahead.
Operator
I have two questions. Please send me the cloud. Am I in the cloud?
I have two questions. Given that the more differentiator is handcrafted jewelry, How are you addressing the potential manufacturing throughput and scalability constant, compared to peer as organizing automated P&P or J&P printing technology? How do you manage the labor aggregability in mid-time and mid-economy as you scale the volume? So, technically, Mr. Varga, this is when you are into handcrafted dhuzi, no? So, handcrafted dhuzi, the more the amount of mind which will spread into it, the more you could get it. So, technically, as of now, we follow the same artifact model. And in handcrafted, we might use certain pieces which are from the 3D printing and all that, but it's a very minimal potion, just to give a kind of character to it, to a new design, technically. But now, these are workers who just stay, since they have trapped their judgment on it, and as work workers, over the years, are these so, uh, precise ones that rely on them, that creatively they lay out, that, uh, every girl has something new coming on the field, sir.
Sir, do you see any waterways in the, um, the scaling of the organs that you manage to use?
Sir, as of now, I don't see any, we have, the, the, the, the, the article 10 what we have. I don't see any problem like in your coming future to scale up to a certain level, obviously, but whenever we face any challenges, we are ready, we are open-minded and ready to exact new things in our organization.
My question is now business is growing fast,
but working capital gains are keeping operating as a negative. How do you plan to fund this work going forward with the internal flow of debt?
How do you plan to go forward?
Technically, whatever profit is being earned, the company is taking back to the company. One is that which serves the working capital requirements. And obviously there is a daily requirement of working capital in the company. So going forward, as and then required, I think the growth for the banks are always open for us. They've been supporting us for more and more years. Since 2009 or 2008, the banks go to always open for us. And in the coming future, whenever we require, obviously we have the bank road open to us, but equity road open to us. So, right now, if you see, in the last 15 years, you've been supported by the bank, now we have two rows open for us at any point of time, if we have business in that, to grow. So, right now, we follow the measure of what he says we buy. So, technically, whatever he told during the day is being immediately worth at the current market price. So, that is the ending quality we will be following the example right now. And inventory valuation is particularly a better price, which is, right now, quite below the market price. So, right now, we don't think there is equivalent of raising of inventory.
Okay. What do you think, what do you satisfy the inventory of the world?
Operator
Good morning, sir. Good morning, sir.
Good morning, sir. Good morning, sir.
Okay, so my first question was about growth constraint. Since you mentioned that the equity funds will be primarily support the working capital, if the current growth momentum What will you see becoming the first constraint to growth? Working capital liability or customer acquisition?
Technically, if you see, we regretted our progress in the business, so currently, for the short term, our working capital requirements are very nice. So, as we spoke in the last answer as well, if there is any requirement for working capital in the coming future, we have two rows open to us, and we can go forward with any of the rows. And technically what happens is as we are growing day by day, generally we need that we are going to go back to the other hand again. But for now, as the business is running and as they are scaling, the working capital works there in the company. Thank you. We have a financial year 26 and after the IPO will be approximately 4%. So, we will take a look at the idea of the IPO. Let's see how the capital has increased our value and...
Okay. So, then my second question is on the process of the PANAK 1 to the end of the PPP. We are in customer training their own RG.
Sir, why is the strategy we are not able to listen to it properly?
Operator
Sir, can you please use your headset?
Is it clear or not? Okay, yes. So, I am just following up on 0.85 pages of this, in guiding customers, making their own carriers in-house. So, once they acquire a new customer, typically how long does it take for that relationship to become meaningful in terms of revenue and profitability?
The customer getting on board depends on what time the customer is. If there is a corporate client who will do a go-creation, who will do certain design mixes, certain connection romances, it takes some time, but when it's a single store, it happens from the first transaction.
Okay, and going forward, which segment would you prefer to grow faster quality? Great or non-corporate?
Sir, as a businessman, I would expect to invite all the customers to come to me. Whoever is there and willing to work with some customers will always be welcome. But technically, if you see that, the people in the industry are getting offline, day by day, and the structure and the percentage of corporate business in the industry is going.
Okay. Understood. Thank you, sir. Thank you.
Operator
As there are no further questions of the participants, I now have a conference over to Mr. Baruch here for closing comments.
Thank you for joining us today for the opening call. We sincerely hope that all your meetings are in securing the call.
Operator
There's a question. It's from the line of Avanath from YF1. Please go ahead.
Sorry to enter the last one. I have one question, one more, compared to what we discussed before. Now, your trade payments were quite low, compared to you give some credit to your customer, right? So, that means the thing that you almost buy, most of you are bad. Can you hear me now? Talking about this part of this, you know, reasonable and reasonable side, as your balance is showing, surely you are paying your customer, paying your supply, and you are probably giving some credit to your customer in terms of getting your payment done. Is this understanding right? That means, is there a working capital gap at that side as well?
Definitely, sir. We have to give some credit to our customers as that relationship grows either and deeper day by day. Because if you scale up with the same customer and the relationship has been overgrown,
I'm trying to understand from the return on ECP and return on capital and my point of view, If you are, even the receivable and payable gap is also there, and you are paying your supplier almost instantly, and even some credit to your customer, that means there is no working capital gap in that side as well, along with no working capital requirement on inventory storage, that is for the boom. And if I assume that it's being funded to your working capital loan, where you can get around 8 to 10% of your average cost of your working capital loan, why is that leverage? How your return on equity will improve, because currently your ROE and ROE is super, around 40%, and normally, very difficult to see a small failure, in terms of your revenue, to have that kind of an ROE and ROE.
Hi sir, I think your question is coming from where the trade receiver has increased significantly. Thank you.
And how is your inventory turnover, if you can get back to them? What is your inventory turnover?
How many? Eight times? Wow, that's great. Thank you. Thank you. Since you are a new IPO company and listed in the market, you know, the question has been We, as an investor in a fund house, we need data. I appreciate your answers in all the questions. We need certain figures, certain group outlooks, and certain quantified numbers. A verbal explanation can help, but the question is, since many of the participants are including me as well, Because your current numbers are quite extraordinary compared to what your players are already delivering in the market and what are the listed players. Either it is a B2C player and then B2B player, some of them which is listed, but I won't. So when you are some kind of an extraordinary team, it is better to be explained by numbers to the people to understand from where it is coming. And then we can understand whether it is still going forward or it is maybe happening for a one-time situation, either due to the increase in the gold prices or due to sudden increase in the mix. There may be this quarter you may be having huge order for $18.8 gold when your margin is better.
Maybe next quarter that may or may not be there.
Maybe the gold prices, this price is high as a result of which you got a higher margin. If the gold prices go down, your margin will come down. These are the very normal Christians in the mind of the investor, which requires quantification. A general answer might not help.
Sir, we appreciate your feedback, because yet on the present, all for more delays will give more clarity, as we know it, in the financial year. Right now, the human resource is not a great investment of the IQ money, because our IQ money came after the human resource, so this human resource is our normal resource. Thank you, sir. Thank you very much.
Operator
Thank you very much for your patience and answering all these questions.
Operator
Thank you. The next question comes from the line of Ajit Sahu with IDBI Capital. Please go ahead.
Thank you. Thank you for the opportunity. I hope I'm involved in it. No, but can you speak in radio or anything? Okay, sure. So, my first question is on the number of job workers. So, there has been a decline in the number of job workers. So, can you understand these numbers and the education rate of job workers has also increased a lot in quite 20 days. So, could you please help me understand this? So, technically, the question, what happens is the industry has been organized over the years. So, it is the key to contract manufacturing with our workers. It's not just that number. We have around 700 to 800 people working under them who make jewelry for us. So, it is not only that particular number who may be, there are many other people who are switching. For example, someone who has 20 people under him earlier, right now, his capacity has increased and going to worship equal to 25 people under him. So, that number that happens, we prefer working with organized and better players who can give us better design and better quality and finish. So, that's why you see that attrition, but overall, you see, as you scale up, the number of block workers under the contract manufacturers have always increased, sir. So, does this define the capacity of the management field, which you can do, will be driven by these numbers, the number of block workers or all the carriers working under them? Can you just repeat your question, please? Sorry, I have no. So, I want to understand, I mean, obviously, so right now, as of July 26, you have 72 job workers. So, between job workers, what would be the A, you can teach, in terms of skilling? And, to, so, so, just trying to understand, this is the primary driver for skills? Sir, 72 is just a number of contract manufacturers, as I told you earlier also. People and their manufacturing facilities under them is used. They can scale up to whatever quantity, as are now required, maybe 40-50% of the growth can be easily scaled up to them only. And definitely, as in when we grow and there are newer designs, newer thoughts, newer minds coming into market at every day, So, there's no, there's no, there's no, there's no addition into new cardiac cases or anything. There's all this flow of increasing in our skills.
And so, two bookkeeping questions. So, first one, there is a decline in employee cost on sequential visits, right? In Q4, it was 11.3 crores, and now it is 3.3 crores, and so I wanted to understand why a substantial decline in LVC and similarly on the other expensive side as well. Hey, I'm talking about the LVC cost, right? Yes, I'm the LVC cost.
You're talking about the LVC cost.
You're talking about the Q1 and Q4?
Operator
QOQ, I'm comparing QOQ.
Okay, sir. So, you were saying that you were ready to join a more employee work. That will be because of the equation of it. It will be an equation, and the employee work will be 3.3 crore, and so the upcoming quarters will be employee costs ranging around this number, and not knowing of what's like 11 crore. Yeah, either, yes.
Operator
Thank you. Thank you. Yes, sir.
Thank you everyone for joining us today on your next call. This is the hope that all the queries were addressed during the call. Should you require any further information or assistance, please feel free to reach out to share our IR advisors, private limited investor relations advisors who are happy to Thank you.
Operator
Thank you, sir. On behalf of Sunkei Shailer Limited, that concludes this conference. Thank you for joining us and you will now disconnect your lines. Thank you.
