Shanti Gold International Limited (SHANTIGOLD) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Shanti Gold International Limited Q4 and FY26 earnings conference call. As a reminder, all participant lines will be in a listen only more and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, 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. Smith Shah from AdFactors PR. Thank you, and over to you, sir.

Thank you. Good afternoon, everyone, and thank you for joining us on the Q4 and FY26 results conference call of Shanti Gold International Limited. We have with us today Mr. Pankaj Kumar Jagawat, Chairman and Managing Director, Mr. Sriram Iyengar, Chief Financial Officer. Before we begin, I would like to remind you that certain statements made in today's discussion may be forward-looking in nature and may involve certain risks and uncertainties. A detailed statement in this regard is available in the investor presentation shared with you earlier and available on the stock exchanges. I now hand over the call to Mr. Pankaj Kumar Jagawan to begin the proceedings. Thank you, and over to you, sir.

Hi, good afternoon, everyone, and a warm welcome to all the participants joining us for the Q4 and FY26 earning conference call of Shantigul International Limited. On behalf of the management team, I would like to thank all our investors, analysts, stakeholders, and business partners for their continued trust and support towards the company. We deeply value your confidence in our journey and remain committed to creating sustainable long-term value. I hope all of you have had the opportunity to review our financial results, investors' presentations, and related disclosures uploaded on the Stock Exchange and on our website. Before discussing the business and operation performance, I would like to briefly touch upon an important accounting development undertaking. The company has financed its inventory valuation methodology for the first-in-first-out FICO method to the weighted average cost WAC method with retrospective effect from April 1, 2024. The transition has been undertaken in accordance with the applicable accounting standard and in assessment better reflects the blended inventory cost in a business environment characterized by significant volatility in gold prices. It also enables improved cost and revenue matching while aligning our accounting practice and broader industry standards. We believe this change improves the quality, relevance, and comparability of our reported financial performance, and the impact has already been appropriated, reflected in the reported numbers. Coming to our performance, FY26 has been a landmark year for Ashanti Gold in many ways. Most notably, we successfully completed our IPO, got listed in August of 2025, marking an important milestone in our growth journey. Becoming a listed entity is not merely a capital market, even for us it represents a new phase, responsibility, governance, scalability, and discipline execution. Operationally and financially, FI26 has been a strong year for the company. We delivered healthy growth driven by stronger customer traction, deeper engagement, and organized jewelry retailers, improved wallet shares for existing clients, and continued demand across product categories. Importantly, during Q4, FI26, we achieved the highest ever quarterly revenues in the history of the company, reflecting our strong executions, capabilities, improving scales, and increase. Relevance as a trusted manufacturing partner for organized dwellers. Over the years, we have consciously built our business around a few core pillars, quality, design, excellence, craftsmanship, reliability, and time execution. These are not merely operational strength, but form the foundation of a longstanding customer's relationship. We continue to witness strong practices for our product across market, and we remain deeply committed to offering differentiated designs. And superior product quality to contemporary design while maintaining consistency in education while continuing to drive repeat business and customers' thickness. One of the most encouraging trends we are witnessing today is the increasing outsourcing preference among organized jewelers, retailers, as retailers continue to focus on expanding their footprint inventory, optimizing, and faster design cycles. We are increasingly partnering with trusted and scalable manufacturers who can offer quality, consistency, and executions of SK. We believe Shanti Gold is well positioned to benefit from this structural shift. Despite elevated Gold price during the year, overall demand trends remaining resalent across key market and customer segment. We continue to witness healthy transactions. Particularly in wedding and vocation-led jewelry categories, while demand remained robust across both traditional and modern designs format. Encouragingly, we continue to receive sustained inquiries and repeat purchases from our customer, which provide us with confidence and visibility regarding future business momentum. Even the strong Customer traction and demand visibility we are witnessing. We have taken strategic steps towards expanding our manufacturing capabilities to support the new phase of growth. Existing Anderi manufacturing facility with an installed capacity of approximately 2700 kg per annum has been operating at healthy utilization level in line with the growth of our new Marul facility in Mumbai, which will add approximately 4000 kg per annum of manufacturing capacity. In addition, the 1200 kg per annum capacity addition announced during an IPO at Jaipur continues to progress in line with expectations. We would like to emphasize that these investments are not speculative in nature, rather they are being undertaken with a strong sense of confidence backed by the customer traction, demand visibility, and long-term business opportunities we continue to witness from organized dwellers, retailers. We believe the additional capacity will significantly strengthen our ability to handle large auto volume, enhance manufacturing flexibility, increase design throughput, and deepen relationship with both existing and new customers. Once operational, this addition will take our total installed manufacturing capacity to nearly 7900 kg per annum. Positioning us strongly for the next phase of scalable growth, we also believe the higher scale over time will support operating leverage, benefits, and strengthen our overall profitability profile. In parallel, we remain focused on expanding or diversifying our product portfolio during the year. We entered the machine-made paintball jewellery segment, which opens a meaningful growth opportunity for the company. We also introduced Mangal Sutra as a new product category, and we are witnessing encouraging customers' response. Additionally, we also developed Turkish jewellery to be produced at a Marul facility, and have on-board skilled professionals directly from Turkey to ensure Authenticity, superior craftsmanship and differentiated products are very aligned with the global design frame. The initial response in this category has also been encouraging. From an industrial standpoint, the outlook continues to remain constructive. India remains one of the world's largest consumers of gold jewellery. Strongly supported by strong cultural affinity, Rising disposable incomes, wedding demands, and increasing preference for branded jewellery at the same time. The structural shift from unorganized to organized jewellery retail continues to gather faith, which is creating meaningful outsourcing opportunities for manufacturers with proven execution capabilities. We believe Chantigold is uniquely positioned to benefit from these trends through our design-led approach scalable manufacturing capabilities. Strong customers' relationships, diversified, produced, product portfolio, and unwavering focus on quality and education. As we look ahead, our priority remains clear to scale responsibility, deepen customers' relationships, strengthen the product portfolio, expand our geographical reach, and continue creating sustainable, long-term relationships for all our stakeholders. With this, I would like to hand over the call to Mr. Sriram Ahingya, Chief Financial Officer

to take you through the financial performance of the company.

Thank you.

And good afternoon, everyone. I will now take you through the financial performance for the quarter and year ended, March 31, 2026. Revenue from operations for Q4 FY26 to that INR 658.93 crores as compared to INR 297.29 crores in Q4 FY25, registering a growth of 1 to 1.65% on a YOY basis. Strong performance was given by onboarding of new customers, an increase in volumes, and elevated gold prices during the quarter. EBITDA for Q4 FY26 stood at INR 67.01 crores as compared to INR 21.12 crores in Q4 FY25, registering a growth of 217.26% year-on-year. EBITDA margins for the quarter stood at 10.17%, as compared to 7.10% in the corresponding period last year, improving by 306 basis points. The growth in EBITDA was supported by better product mix and higher contributions from bridal jewellery, leading to improved operational metrics during the quarter. Profit of the text for Q4F.26, student INR 51.93 crores. As compared to INR 9.19 crores in Q4 FY25. Pat margins for the quarter stood at 7.88% as against 3.09% in Q4 FY25. Now, moving to the full year performance, revenue from operations for FY26 stood at INR 2018.71 crores. As compared to INR. 1106.41 crores in FY25, registering a growth of 82.46% year-on-year business. During the year, the company witnessed healthy business momentum driven by stable ordering trends, increasing engagement with organized retail customers, and continued demand for design-led jewelry products. EBITDA for FL26 to that INR199 cruise. As compared to INR 89.92 crores in FY25, registering a growth of 121.31% year-on-year. EBITDA margins for FY26 stood at 9.86% as compared to 8.13% in FY25, improving by 173 basis point. Profit after tax for FY26 stood at INR 140.15 crores. The company continues to maintain a disciplined approach towards working capital management, operational efficiency, and balance sheet strength while continuing to invest in future growth opportunities. Thank you. Make this I request a moderator to open the floor for questions.

We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Narayana from Step Trade Capital. Please go ahead.

Hello, am I already good?

Yes, you are.

Thank you. Yes, sir. My question is regarding the volume growth. So, for the whole year, I have seen that the revenue process outpaced the volume growth. And that would be indeed due to that price increases in gold, right? So, what would be the way moving forward?

Narayana, your voice was not clear. Can you repeat the question?

Yes, sir. So, is it audible now, sir? So, sir, my question is, in the whole year FI26, the prices of gold drove the revenue growth, right? It has outpaced the growth in the volume for the company. So, excluding the price inflation of gold, what would be the way moving forward? How do you speed the consumer demand to be in the next year?

Consumer demand is there, and that is why we've grown after we received money through IPO proceeding. We had a 15% growth. We only had 3-4 months to utilize the money, right? Until we achieved 15% growth. So this year, current, this year, coming year, it will be It will be around 30 to 40% growth in terms of... Volume, and around 60% growth in terms of value, 60 to 70%.

Hello.

Hello. Yes, sir. The line for the current department has dropped. Hello.

Hello.

Yes, sir. Mr. Narayana, please go.

Yes, ma'am. So, my next question is regarding the import duty, which has increased by the government. So, would that also, what would be the effect on the consumer demand over moving forward?

So, one year back also there was 15% duty. So, it didn't affect the consumer demand. So, government had reduced it from 15 to 6% last year only. And again they have come up to 15%. So, I don't think so there would be any problem in demand and all. For many years it was 15%. Okay.

Thank you, sir. The next question is from the line of Bharat Gyanani from Money Control Research. Please go ahead.

Yeah, sir. Thanks for the opportunity and congratulations for a great set of numbers. Sir, my first question is, I mean, you stated that the capacity expansion plants, the Jaypur plant and the new mobile plant, that is on track. So, sir, if you can reiterate the timelines for the production capacity to start at both the plants.

So, see, our new factory is almost ready, which is going to be, like, in a month or so for Marul factory, and I guess Jaipur factory should be starting by around September, October now. Okay, so, initially, to start with, like, I expect this Marul factory, initially, a few months, to start with, it's going to be around 100 kgs per month, and reaching, very soon, we'll be reaching till 4,000 kilos.

Okay, okay. And so the next question is the profitability part. So basically, FI 25, 26, There is a lot of factor of the higher gold prices on the profitability because of the inventory gains we might have. So, just wanted to understand, what is the sustainable net profit, EBITDA net profit margins that you foresee?

Business margin would be around 4% and all, which we've been maintaining that 4% and all. And whatever extra money, what we made profit, our companies made profit, was the borrowing from IPO proceeding. We had purchased gold because the geopolitical things were not good, so we didn't go for GML, and we purchased all the gold when we received the money, so that is why the company had made a high profit.

Okay. So, fat level 4% is sustainable. Okay. So, thanks and all the best. Thank you.

Thank you, sir. The next question is from the line of Anushka Gora from Viamana Capital. Please go ahead.

Yes, hi. I wanted to know what is your capacity utilization currently in the existing factory, and what are your volumes per month?

We have present capacity is around 65%, and what was the second question?

What is the volume per month that they are operating at currently?

Hello, can you repeat the question?

Yes, I was asking what is your volume per month?

Volume per month?

Yes, yes.

So we have given out our, you know, volumes on a quarterly basis. In our presentation? Around 145 to 150 kilos.

Okay. Thank you.

Thank you, ma'am. The next question is from the line of Krenjal Ranavat from Valmiki Leela. Please go ahead.

Ms. Quinchel, please go ahead.

Your line has been unmuted. As there is no response, we'll move to the next. The next question is from the line of Gaurav Agarwal from VA Capital. Please go ahead.

What are you doing, sir? Grafman, sir.

Grafman?

So, we have given a divergence of 4% tax, which is sustainable. This current year, we have given a tax margin of around 7%. So next year, if I'm using the 25% utilization of your 2,700 kilos capacity, I'm the 800 kilos, the additional capacity which you will be utilizing. So out of the 2,800 kilos, which you will be doing approximately 4,000 kilos of revenue, so that will only be around 162-172 kilos for the next year?

I can't hear you properly, you know, why is it not clear?

You're pretty early now.

Sorry to interrupt, Gaurav, sir. Can you please use your handset?

Can you hear me now?

Yeah, I can hear you.

Yeah, so as you're doing the 4% PAC for the next year, this year we've done a PAC margin of around 7%. So on to 2,000 crores of revenue, we've done a 140 crores PAC. So next year, if you do 4,000 crores of revenue according to the guidance you were given in the last quarter, Yeah, 75% utilization and the additional 800 kilos, which comes to around 4000 crores. So that 4% will be approximately 160 crores of CAD, which we can expect for this year.

Yeah. If we do a turnover of around 4,000 crores, yeah, that will be around 560 crores.

So, the revenue will be double, but the pad growth will be 10 to 15 percent?

No, if the price remains same. So, the net margin means business margin would be around 4 percent, and suppose if the gold fluctuates from here and it goes high, so we'll have an additional profit of gold also.

Okay. Okay, sir. Thank you.

Thank you, sir. The next question is from the line of Amit from RoboCapital. Please go ahead.

Thank you for the opportunity. So, my first question is, we have 7,900 kg of full capacity. So, whenever we utilize, you know, the entire capacity, what can be our peak revenue at today's gold prices?

You mean to say a full 7900 kilos? Yeah.

Suppose if we catch a price around 150? Yeah. It would be around 11,850 calls.

Right, sir. And to reach, you know, that type of a milestone, let's say 7,000 kg, etc., how do you see the demand? Can you do it in, say, 2-3 years? When do you expect to hit peak capacity?

Next year, like around, we're expecting a turnover of around 3,000 to 3,500 crores. And with 35 to 40 percent growth, yeah, in 3 years, 3 to 4 years, we should achieve full 7,900 kilos or maybe more.

Right, sir. And one point earlier was that, you know, to an earlier participant, there was a

discussion of, say, 30% volume growth, but you also, I think, indicated a slightly higher value growth, like 60% or so.

So, are you factoring in the goal prices to increase further, or you are calculating it as on today's prices?

I'm calculating it with current price.

Okay, sir.

Perfect. That's it, sir. Thank you.

Thank you.

Thank you, sir. The next question is from the line of Prakash Sharma, an individual investor. Please go ahead.

Hi, sir. Thank you for the opportunity. I have a couple of questions. Sir, my first question is that the incorporation timeline for our Dubai subsidiary has now been extended to June 26th. So, you know, could you elaborate on the strategic importance of the Dubai entity and its role in supporting export expansion plan?

So, due to all this wars and all, so it is extended for a couple of months more ahead now because the situation, geopolitical things are not good. Yeah, as soon as it gets all okay, it is going to be full-fledged. All the licenses and all, you've got it. Only a couple of licenses are left now.

Okay, sir. And the role for export expansion plan?

So, I told you like this year, we'll be like from 5% to we're going to go up to 10%. Or maybe more. Sorry, from 10% to 20%.

10%, 20%, okay, almost, Chabal. And our exporting regions would be Middle East only?

No, USA, Singapore, Malaysia, UK, a lot of countries from Dubai.

Okay, okay, sir. And... So the last question is that, by when is the Dubai office expected to commence operations and become fully operational? I know it has been delayed by a few months, but you know...

It's delayed because of the geopolitical things. Otherwise, everything is in space. We have taken the place, we have received all the license and all due to Iran and these wars are going on. That is why it picked up. Otherwise, we are ready to go.

Okay, okay. So, I expect that once we commence, it will be kind of fully operational?

Fully operational, yeah.

Okay. Okay, sir. Thank you. That's it for my sake.

Thank you, sir. The next question is from the line of Prisha Shah from Shah Family Office. Please go ahead.

Thank you so much for the opportunity, sir. So, I just want to understand that what are the measures which we are taking to protect our ROC as, you know, our inventory values and the working capital intensity is increasing?

As far as the ROCs, everything is concerned. It's still at a very, very healthy margin of, say, I think 38%. I think that's a very good number, ROCs. As far as the inventory is concerned, this being a jewellery-based industry, the value will come from only the inventory only. So we have got adequate stock for the coming year. Yes, in spite of all this uncertainty, I think we are well had to cater to all those new markets, new geographies and all, and the value is certainly going to come from this unlocking of the inventory, which we are setting quite. Yes, and as far as the value, again, if you see the metrics also, my debt equity is at 0.36. I think it is very nicely leveraged. My ROC is 38%, which is quite handsomely rewarded. My stock position, this is how comfortable in spite of this uncertain time. We are, I think, well in a position to mitigate this uncertain period. So, this value will come as we go around and reach for more marketplace.

Thank you, sir. That answers my question. I just have one more question, you know. So, we have seen that the gold price are, you know, elevated and our inventory value is also being increased. So, how should we as investors be thinking about the incremental borrowing requirements and how are we trying to maintain the balance sheet discipline?

Yeah. Madam, if you see my balance sheet, if you have seen going through my balance sheet, my balance is very, very strong. My net worth has gone up. So, there is twofold aspect to it. One, in spite of all those uncertain times, there is a 15% growth on the volume. As far as value is concerned, 80%. So, in spite of all of, we have achieved what we had said in the last year. That's number one. Going ahead, again, the numbers that we have just shared with you. It's 60-70% on a value-based growth and around 30-40% volume-based growth. That is, again, a very, very good demand to go through looking at all the odds. Third, there is a huge capacity expansion is happening. We are almost equipping three times the current capacity. So, we have well positioned to cater to the new growth market and all. As far as... Second, the future growth and concern. There are two things to it, Madam. With the current capital that we have got, we are sure to cross through the numbers that we have just said, about 60 to 70 percent value growth and 30 to 40 percent volume growth. That's number one that is used. Second, as far as you're saying, what is the value? I think in the introduction, we have already said we are coming with new product mix. We are pouring into new product lines. We are ramping up our capacity. So, this all augurs well for a large, large share in the market. As of now, we are hardly any share in the current market scenario. So, sky is the limit for us. So, going forward, we will achieve what the numbers we have given as a guidance call, And the value should come unfold as well.

Thank you so much, sir. That answers my question. I will get back in the queue.

Thank you, ma'am. The next question is from the line of Shruti Sharma from Family Office. Please go ahead.

Yeah, thank you for the opportunity. So, my first question is related to ongoing capacity expansion. So, do you see any risk of concentration towards existing clients or should we expect the customer base to become more diversified going ahead?

So, we'll be having existing customers also and we'll be having new customers also on board.

Okay. And as a large, organized retailers increasingly look at backward integration and house manufacturing. Do you see this as a structural risk of outsourced players over the long term? Also, how is Shanti Gold positioning itself to remain a preferred manufacturing partner for such clients?

We've been partners since 15 to 20 years and trusted partners. We've been supplying jewelry to them since 15 to 20 years. So if you see like in terms of even gold price went so up last year from $70,000 to almost touching one and a half draw, still we had 15% volume growth and even in terms of sales growth also in terms of money.

Thank you, ma'am.

The next question is from the line of Anshu Saigal from Saigal Capital Advisors, LLP. Please go ahead.

Thank you for my question. You mentioned that you bought some inventory and you are seeing some benefit of that inventory in the current quarter and probably in the coming year as well. If you hadn't bought this inventory, what is the model of sourcing for you? Or, putting it differently, aside from buying your own inventory, do you get raw material from the customers itself? Or what is that model of sourcing of raw material?

We source gold through banks from the bullion merchant. And, yeah, so, means we are open to have a gold metal loan. But due to geopolitical things are not good in the world, so we didn't want to take a risk of gold metal loan. So we purchased all the gold on. Okay.

So, assuming that all your business was from, all your procurement was from the bullion gold, your margins would be 4%? Virgin margin? Is that a fair assessment?

Okay.

That is one. Second, I just want to sort of double click on the previous participant's question, which is that In your presentation, you mentioned that you have a 7% volume or value contribution from your top customer. Now, how much of their business do you contribute to? How much of their volume? What I'm trying to understand is, who do you compete with? How does your market share increase going forward? How do you think about that whole aspect of your business?

So we've introduced a new line of jewelry, like Turkish jewelry and Cuban braces and Mangal sutras and a lot of jewelry lines, paint casting and everything. So volume growth is not a problem. The demand is there. And we've been having trusted customers since 20 years. And in Northside also, like we've got a lot of new clients and we've started participating in Delhi and all those places. So our Nordic mansion is going very huge, and we are coming up with an office in Dubai, so export is also going to grow.

One very obvious customer who's missing from your presentation is Titan, Tanish, that is. You don't supply to them?

No, we don't supply to Titan. New factories are coming up, so we are going to approach Titan and a lot of new clients who are not on our board. So they are on our list now, which very soon they are going to be on board.

Okay, and to your point that you're coming up with new products, does that mean that with existing customers, you're going to enhance the range? Is that the strategy, or is it a mix of getting new customers and enhancing range with the existing range? A mix of new customers as well as existing both. How many customers do we have involved?

More than 400.

More than 400. Okay. Thanks. I'll join that with you. Thanks.

Thank you, sir. The next question is from the line of Narayana from Step3 Capital. Please go ahead.

Yes.

So, can I get a revenue bifurcation between the studied jewelry and the plain wood and the 24-22 carat jewelry, please?

70, healthy. Sorry?

70% and 30%. 70% and 30%? Yeah, 70% from the existing line, what we are doing it, and 30% what we started with the new line.

Okay. And, sir, what would be the margin difference between these two?

Margin? So, Friday's jewelry has a higher margin, and Plain World has a... There's some margin, so when we align both the things, so it comes up to 4 plus something, 4 plus and some plus on it. Okay. Okay. Good. Okay.

Thank you.

Thank you. Next question is from the line of Bharat Gyanani from Money Control Research. Please go ahead.

Yes, sir. Thank you for the opportunity. Just wanted to check the working capital cycle. What are we expecting in the current and next year? And a related question is that since we are ramping up the capacity very much, almost three times, so we will need debt to kind of support the working capital. So, what is the maximum debt level that you are willing to take on the balance sheet? So, two questions.

Yeah, as far as my current working capital is concerned, I think it's quite least almost seven times what the turnover is. Current debt boring is that's number one working capital. And number two, as far as the future borrowing is concerned, the future borrowing will be aligned to the market requirement. That's number one. Yes, we have huge facility coming up. We are going, we are on an expansion tree, ramping the facility, going to places where we haven't gone like the North Market, East Market, exports and all. So, we will require, and to top it up, we have started new product lines. We are coming up with new facilities. So, that additional thing will certainly require some more debt funds. To answer your question, maximum at this point, if I tell you, we should be comfortable at going at maximum 1 is to 1. That's what we are aiming for now. To fuel the future growth expansion. Currently, we are at 0.36, which is again a, which gives us a really head, good headspace to, you know, maneuver or go for that dead part. Maximum, we should be close to one.

Very good. Okay. And sir, this working capital cycle, so number of days that we have seen in FI 26, you expect it to remain the working capital days at this level or you expect some improvement? And if you expect any improvement, what is the driver for that?

See, at the current level, the markets are so volatile. So, one, first, you should appreciate us for all the good efforts that we have put in the last year. In spite of all those volatile moments, our working capitals are still at a very good level. My inventory is around less than 50. Trade rituals are less than 50. So, yes, we have done a lot of hard work, a lot of efficiency in place. That's to be seen and appreciated. Going forward, yes, if the markets are turbulent, we are going in a turbulent time. We may have to exchange some kind of support to our customers. But that's fairly enough. We should be able to maintain on that. And to top it up, we are also pouring into plain jewelry, which is a high-volume, low-margin game. It is certainly to improve the working capital cycle going ahead.

Okay, sir. Thanks and all the best. Welcome.

The next question is from the line of Priyam, from Choice Institutional Equities. Please go ahead.

Yeah, hi, sir. Just wanted to check. We have seen a sharp increase in the data's day, what if I 26, 40 to 40.

Your voice is not clear, sir.

Sorry, to interrupt, Priyam.

Can you hear me now?

Can you please use your handsets?

Better. Yeah, am I audible now? Yes.

Okay. So, sir, we are seeing the increase in the data days from 42 to 49 in FY26. So, can you have any reasons for that and how we can look forward going ahead for the coming year?

Okay. See, basically, it has gone up if you also see the majority of the parties coming from the high revenue group. So, that's from 1106 to 2018, there is a big growth in the top line. So, certainly, it will definitely add to that data in terms of absolute number. Yes, if you go by the days, it's hardly from 42 to 48 days. Now, if you just, you know, factor in the factors like, you know, the volatile market, the customer, the uncertain regime and all. So in that, to sail through and give this kind of, or to have this kind of a number is really commendable. And again, to answer more closely, then the CZ segment, which requires some kind of a credit also, and more importantly, need that kind of a... Customer support during this volatilization. So from 42 to 48, I think you will appreciate the numbers are not that big. Going forward, as we pour into other categories of products, we should be able to further, it has some filter on those days and surely it should come down.

Thank you. That answered my question.

Thank you, sir. The next question is from the line of Shubhanu from Three Faith Capital. Please go ahead.

Shubhanu, please go ahead.

Sorry, sorry, sorry, sorry, sorry. Sorry. I was on mute. Sorry, I am audible. Yeah. Good afternoon. Hope I am audible. Sir, as you mentioned, our guidance on volume growth around 30 to 40 percent and value growth around 60 percent. How can we targeting around 60 percent value growth? Because That means, are we expecting gold price will be increased going further from here?

Yes.

Hello.

Yes, yeah, we are expecting some high, again, increment.

But you are completely speculating this, because you are giving the guidance to shareholder. No, we are not speculating.

To speculate the gold price. Yeah, yeah, we are not speculating. When we receive money from IPO proceedings, because the geopolitical things are not good, and gold has always been 7-8% minimum high every year. We've been tracking since years, right? And after the geopolitical thing, From 78,000, it went up to around 184,000 rupees, right? So, due to, again, Iran war with Israel and U.S. and all, so things are not good. Volatility is there and things are not good across the world. So, that is why we are expecting. We are not giving any votes to the shareholders because there is a lot of issues throughout the world, geopolitical things. That is why we are also not taking gold metal loans because every day there is up and down in the gold thing. The current price, we are expecting 150,000 rupees. With cashing that, we have taken 30 to 40 percent volume growth and 60 to 70 percent value growth.

Okay, sir. What is our average inventory cost? Our average inventory, our gold? Inventory price per 10 grams?

I didn't get your question. Good morning, everyone.

What is our average inventory part-time as on FI26?

Average inventory?

Sir, as per this, currently we are at 12,000. Okay, 120,000?

Yes.

Okay, and my next question on our capacity, as you mentioned, our current capacity is 65% and But if I remember right, earlier future call you guided around 60 to 70% volume growth, but now you told around 30 to 40% volume growth. That means you reducing our volume growth guidance, but you increase our value growth guidance.

Why are you reducing our volume growth guidance? Sir, I think last year we have got a volume growth of 15 percent overall on a YO battle, that's number one. This year we are giving the volume growth of 40 percent. There is no way there is a contrast to that. In fact, there is a growth in the volume also coming in. So, as I can 50 percent last year, we are projecting a growth in volume to 40 percent. So, there is no contrast in the or degrowth in the volume growth. Okay.

Okay.

Understood. Thank you, Mr. Block. Thank you.

Thank you, sir. The next question is from the line of Krinjal Ranavad from Valmiki Leela. Please go ahead.

Hello. Yeah. Yes, sir. Hi, sir. I just wanted to know that you said that you are adding new customers, so any specific geographical location you are looking forward for domestic or international?

Yeah, like we plan to increase customers in UK, Singapore, Malaysia, and in India, like we are going towards north and all those places.

Okay. So, in the demand, could you say about demand in southern India as of now?

Demand is there. So, yeah. We are being like, from the time we received money through IPO portfolio, we had a 15% growth. And if you go to see that quarter after receiving the money, it was around 31% growth last year.

I mean, the last quarter.

So, this whole year, we are expecting 35 to 30 to 40% volume growth as well as 60 to 70% value growth.

Okay, that's good, sir. So, don't you think the Modi's statement would have an impact for this?

So, I think it is going to impact on gold bars and gold coins, not on visual rates.

Okay. Okay, thank you, sir. Thank you for much. That's it for me.

Thank you, ma'am. The next question is from the line of Achyut, an individual investor. Please go ahead.

Yeah, I just want to understand on the margin, why is the drop-off tax margin reduced from 7% to 4%?

The margin, business margin is around 4% and whatever we have achieved, more margin is because of the gold price.

But what if the gold price remains steady, furnished here as well?

If the gold price remains steady, we are going to... No, no. If the gold margin remains same, we are going to want 4 plus margin over here. Pat, I am talking about.

I mean, can we, can we get similar path margins if the gold price is same? I didn't get your question.

What do you want to say?

I mean, if the gold price is not getting reduced, if the gold price is same, let's assume for next year, the path margins will be same or it is going to reduce?

It's going to be same. Okay.

So, you are given the guidance for 4% on the condition that gold price will go down.

4% is going to be a business margin, operational margin is what I'm going to say. That's a core margin. That is going to be profit after that, that I'm talking about. And additional margin, what we've got this year, due to the gold rising, because we had purchased the gold outright.

Okay, so from next year onwards, what happens to that? Like, for next year also, you have to Google, I mean, purchase at this price, or you are doing business in different ways.

Hello. Just to answer to your question more specifically, basically my core margin is around 3.5 to 4 percent, that's for sure. We are not speculating on the gold market price movement, whether it goes north or south. So, we don't want to speculate where we will head to. The 7 percent that we projected last year, it had an element of surge in the gold price, additionally maybe 3 to 3.5 percent, which we are not considering as of now. So, our core margin, come what may, will always remain between in the range of 3.4 to 4%, which is the normal industry rate. So, we are not calculating anything on the price movement. We are catching the current rate as of now, as we speak, as we give you a target. The current rate is what we have considered. We just hope it remains in the same region. But in case going ahead, there is an increase in the gold price. You can see some more additional margin adding up to the core margin. I hope that answers your question.

Okay. The reason I'm asking is I just want to understand that if you're doing the same business next year, you will be able to get the 140 crores back on 2,000 crores business as well, right? The additional 2,000 crores business, you're getting for a 24 crore profit. It means the additional business is no margin business, I want to understand. Because if you gain 4% PAD per next year, the PAD will become 160 on 4000 crores and currently you are making 140 on 2000 crores. So, the additional 2000 crores is bringing only 20 gross profit.

Sir, again, that's all. We want to freeze out those numbers. This 140 had an element of a price right, right? Inventory gain. Now, we are talking about the plain vanilla numbers, 4% on the additional growth. So, in case if there is, again, in case speculation, I think that doesn't august when we are not going to forward looking statement. So, whatever additional business or whatever, turn out that we do it in the next year, simply roughly we will get a 4%. That's for sure. Additional inventory gains because of better management, better inventory management or in case of inventory gains and all, that will be extra bonus additional on top of 4%. So, this 140 comprises both the poor margin as well as the inventory gain that we got because of the timing or because of the ramping of the stock at the right time, at the right place and all. So, we got some good gains last year. But going forward, we cannot say if this inventory gain will be there or not. So, sadly, what we have done is we are sticking to the current rate. We just hope it remains the ringtone. And most of the business for truth line that we have suggested, there should be clear-cut 4% fact margin going there.

Okay, sir. Thank you. Thank you, sir.

The next question is from the line of Chirayu from CIA Investments. Please go ahead.

Hello, sir. Good afternoon. Hope I'm already good. Yes, sir.

Yeah, yeah. Yeah. I have a follow-up question on the previous participant. You said that you are not speculating on the gold prices. For the next year, you have given a guidance of top-line growth of 60% to 70% and assuming a volume growth of 40% only.

Sir, can you speak a little louder? Your voice is very low, sir.

Yeah, yeah. Hope I'm audible now. Hope I'm audible now.

Yes, sir. Yes, sir. Please.

So, first question, I would like to be straight. Till how long the company can benefit from the inventory purchase with the IPO money in next year?

Sir, I think, yeah. We are not talking about the company benefiting from the inventory. We are simply giving the plain numbers. Last time, we got the benefit because of a better timing of, you know, IPO coming in at the right time. We could ramp up the inventory. We could get this. This was ancillary. That was not part of something we planned for. This was not in control. That's one thing. Going forward, that's why we have completely mitigated that inventory here. So, whenever, whatever guidance that we are giving, we are talking about. We are not even talking about it. Going ahead, what we said, simply, The top line is 60-70% value growth on that. Straight away, 4% margin, this is the business margin that is going to be next year. Now, how long we can go on to the inventory gain? Inventory gain, we are just putting it aside. This is just the business inventory. It comes in the system, it goes out, and we earn the poor margin. That's it. No speculation, nothing on the inventory.

Sure, sure, sure. So, one question, how much inventory in kilos are we left with now?

So, sir, as of now, what is our run rate? Yeah, our run rate, sir, as of now, we are left with around both stock and data taken together close to 600 pages we have bought. And even if you roughly, you know, just roll it roughly and just roll it to four times, that comes to 2,400, just add the current rate, we are just getting 50-70% revenue growth. Simple, simple, simple calculation. These are very conservative numbers. The stock pileup impact is helping us to, you know, whether this kind of uncertainty where the gold availability has become difficult for other players and all. We are sitting quite comfortably in the current scenario where we are also and that is actually helping us, you know, try that we are rolling out new designs and all. Though there is a slight slowdown fall in the demand and all, but it actually is helping us because of the inventory pileup we had last year. So going forward, it gives us that cushion to whether that demand coming from all corners of the country, from all large retail people, it is actually helping us even with environmental current level holding.

Sure, sure, sure. And then one last question in the current market trends after the recent news which came. The bullion market is trading much below than the jewelry market in terms of pricing. Will this in some way help us because we procure bullion and then convert them into the jewelry?

Sir, price is a factor to it, sir. See, as a manufacturer, sir, we don't get into that price momentum. Whether it is going around north or south, whatever orders we get, we have to just execute it. So, we are not just looking at the price and stocking our inventory. We are in the business of manufacturing, whether the price goes north, our poor duty is to just get the billion, whatever rate it is, make a fine jewelry out of it and sell it in the open market. That's the basis. We just don't chase those price moments.

Sure, sir. One last question, a small one. With the inventories you hold, are you hedged on that, or what is your hedging percent? Sir, our hedging quality is quite simple.

We buy as we sell. Simple.

Okay, okay, immediately. So, apart from the IPO gold that we hold, everything is hedgedable. We do it on an immediate basis.

Okay, okay.

Thank you, sir. Thank you very much.

Thank you, sir. The next question is from the line of Bhavya Anand Reddy, an individual investor. Please go ahead.

Yeah, hi, sir. Hope I'm audible. Sir, with the current way that a model that we are operating, there might be huge volatility in our margins just based on the volatility in gold price. So in future, how do we plan to mitigate this? So in case there is a drop in gold price, there might be drop in our margins as well.

So basically, again, as I said, we being a manufacturer, our prime focus is to manufacture. That's number one. And if the price goes up, there is a gain. If the price goes down, there is a loss. I mean, these are all speculators. Yes, we as a company, we have to just have those levers on hand to control those. Whatever can be controlled, we control to better hedging policies or whatever the policies that we can train. So, again... That, as simple as the rate goes up and down, our job is to manufacture and get a poor margin. That's why we are harping more on the poor margin, not going whether the price goes north or price goes south.

Okay, sure. Thanks.

Thank you, sir. Ladies and gentlemen, we'll take this as the last question for today. I now hand the conference over to management for closing comments.

Thank you, everyone, for participating in the earning calls of Shantikult International Limited. We hope we have been able to address most of your queries. Should you require any further clarification or additional information, please feel free to reach out to Smith Shah from Ashtar PR, and the team will be happy to assist you. We appreciate your continued support and look forward to interacting with you all again.

Thank you, sir. On behalf of Shanti Gold Internationals Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.