Shanti Gold International Limited (SHANTIGOLD) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Shanti Gold International Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Smitsha from AdFactors VR. Thank you, and over to you, sir.

Thank you, Manav. Good afternoon, everyone. I'm Smitsha from AdFactors Investor Relations team. On behalf of Shandihore International Limited, it is my pleasure to welcome you all to the Q1 FY27 earnings conference call. Joining us on the call today from the management team are Mr. Pankaj Kumar Jagawat, Chairman and Managing Director, We will begin today's call with opening remarks from the management, following which we will open the floor for Q&A session. Before we begin, I would like to remind everyone that certain statements made in today's call may be forward-looking in nature. These statements are based on management's current expectations and are subject to risk and uncertainties that could cause the actual results to differ materially. Shanti Gold International Ltd. undertakes no obligation to publicly update or revise any forward-looking statement based on subsequent events or redevelopments. With that, I would like to hand over the call to Pankaj sir for his opening remarks. Thank you and over to you sir.

And a warm welcome to the Q1FI27 Earning Conference Call of Shanti Gold International Ltd. on behalf of the management team. I would like to thank all our investors, analysts, stakeholders, and business partners for joining us today and for their continued support and trust. Since Shantikud International Limited was listed on the stock exchange, the past year has been an important phase in our journey, and we remain focused on building a stronger, more scalable, and sustainable business while continuing to create long-term value for all our stakeholders. Coming to the quarter of Q1FI27 was an important period for the company, particularly for an operational perspective with the successful commencement of operations at a new manufacturing facility in Maroon, Mumbai. The flexibility marked a significant step up in our manufacturing capabilities and provided us with additional capability and flexibility to support the growing requirement of a customer. The quarter also reflected continued momentum in our core business. We witnessed healthy customer attractions, supported by deeper engagement with existing customers, expansion across domestic market, and a growing customer base. Our focus continues to remain on strengthening our position as a trusted manufacturing partner for organized dwellers, retailers, by offering quality, differentiated designs, and reliable institutions of SK. From an industry perspective, the outlook for the organized jewelry continues to remain constructive. India's jewelry market is supported by strong wedding and location-led demand, rising disposable incomes, and an increase in preference for organized and branded jewelry. At the same time, organized retailers are increasing focusing on inventory optimization, wider product opening, and faster design cycles, creating a structural opportunity for scalable and We believe our design capabilities, manufacturing, scale, and establish customer relationship position as well to benefit from the opportunity. Coming to our financial performance during Q1 FY27, the company reported revenue from operation of Rs.716.38 crore compared to the 292.78 crore in Q1 FY26. Registering a growth of 144.69 EBITDA for the quarter stood at 71.45 crore with an EBITDA margin of 9.97 with the profit after tax slowed up to 50.48 crore compared to 34.36 crore in the corresponding quarter of the previous year. Growth was driven by the healthy volume expansion reinforced by continued customer focus, the rollout of new designs and outreach of new customers and market. The commencement of operation at Marul provided further capabilities to support the momentum and cater to the larger and more diverse customer requirements. We also continue to make progress on strengthening our product's mixed value-added categories including designer jewelry, turkeys jewelry, and gaining traction contributing to improve real-life relationship. Our focus remains on increasing the contribution of differentiated to higher-value products while maintaining the quality and education standards that underpin our customer relationship. The Marul Facility also provides us with an opportunity to further enhance our manufacturing flexibility and demand throughput. Alongside this, the upcoming Jaipur Facility will further strengthen our manufacturing footprint and support our ability to address the growing demand across markets. As part of our growth and capital planning, the company has approved a right issue of 46,471 fully paid-up equity shares of face value 10, each aggregating up to 100 crore. The proposed fundraiser will support the company's growth and plan and strengthen its capacity to capitalize on emerging opportunities. Looking ahead, our priority remains focused on three key areas. The first is capacity expansion, which will continue to ramp up the facility and progress with the upcoming Jaipur facility to support our growth ambitions. The second is market expansion, which will continue to focus on strengthening our presence across key domestic markets, expanding our export business, and deepening our relationship with existing customers while adding new customers. The third is product mix enhancement, which will continue to develop and scale value added categories such as designer and Turkish jewelry, along with the new product offering aligned with evolving customer preference. We remain encouraged by the customer traction and demand visibility across the business with a stronger manufacturing base, expanding customer relationship, and a differentiated product portfolio. We believe Shanti Gold is well-positioned to capitalize on the structural growth opportunity in the organized jewelry market. Our focus remains on scaling responsibly, strengthening education, deepening customer relationships, and building a sustainable and profitable growth platform for this year ahead. With this, I would like to hand over the call to Mr. Shira Mahinger, Chief Financial Officer, to take you through the financial performance of the company. Thank you.

Thank you, Fankaji, and good afternoon to everyone. I will now take you through the financial performance for the quarter ended June 30th, 2026. Revenue from operations for Q1 FY27 stood at Rs. 716.38 crores as compared to Rs. 292.78 crores in Q1 FY26, registering a growth of 144.69% on a worldwide basis. The growth was driven by a healthy volume expansion, reinforced by continued customer focus, the rollout of new designs, and outreach to new customers and markets. EBITDA for Q1 FY27 stood at Rs. 71.45 crores as compared to Rs. 51.41 crores in Q1 FY26, registering a growth of 39% YOY. EBITDA margin for the quarter stood at 9.97%. The improvement in operating performance was largely supported by strong volume growth, through a better product mix, enhanced customer services via varied design offerings, and a continued focus on operational efficiencies. Profit of the tax for Q1 FY27 stood at Rs. 50.48 crores as compared to Rs. 34.36 crores in Q1 FY26, registering a growth of 46.94% on a YOY business, but tax margin for the quarter stood at 7.05%. During the quarter, the company also commenced operation at its new moral manufacturing facility, which strengthens our manufacturing capacity and provides additional headroom to support future volume growth. The company continues to maintain a disciplined approach towards working capital management and operational efficiency, while investing in capacity expansion and strengthening its product portfolio to support the next phase of growth. With this, I would like to conclude our opening remarks and begin the question and answer session. Thank you.

Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone 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. We have our first question from the line of Kavya Padia from Anil and Capital. Please go ahead.

Hello. I'm on with this one.

Yes. Yes, sir.

Yes, sir. I have a few questions. First is, what's the margin that you are seeing going ahead?

What's the margin that you are seeing going ahead?

Around 4% operating margin.

And what about EBITDA margin?

EBITDA margin would be around 7.5-8%.

Okay. And so, as we know that goal price you have selected from 3-5. So, I wanted to know that what are your goal price targets and what do you see goal price doing?

Yeah, see, as regards to the market movements are there, you have seen, I think, if you just go back, last year, we have seen a fantastic move in the gold prize rally and all. That was for FY2526. Going ahead in this current year, actually, it has remained in a narrow band of, say, around 142 to 150 range, right? And the May and June were quite subdued. But now immediately after this month, following with this new exhibition, following with this IIJ's exhibition, gold has again rallied. So the long term, long term our vision towards the gold is very, very bullish. The long term fundamentals remain very strong. So, we are hopeful that the gold will, maybe there could be shortened hitters in the near term, but going forward in the long term, we expect a gold rally in the gold market, and we remain very bullish on that, because the fundamentals remain very strong for the gold.

Okay, and the last question is for China.

Sorry to interrupt you, Kavya, can you please use your handset? Your voice is quite muffled.

This once again.

It's still muffled, Kavya.

Now it's okay?

Yes.

Yeah, it's okay. And my last question is, what's the current play-in to studied jewelry revenue ratio?

And what's the target mix we are...

Yes?

75% approximately we sell studied jewelry.

Okay, and is there any target mix that we are working towards?

In what sense?

Like play-in to studied jewelry mix target mix revenue mix that we are...

75% is our main focus on Thank

you. We have our next question from the line of

PM from Choice Institutional Broking. Please go ahead.

Excellent set of numbers, sir. I have several questions. I think I'll go one by one. So, when it comes to the breakup of your revenue growth, we have highlighted that around 67% And the rest would be, I think that it could be led by the gold price appreciation for you.

Pardon me? 67%? Yeah, you said 67% is the revenue growth and what?

No, no, no, the volume. 61% is the volume, right? 62%, yeah. And the rest of the revenue growth? Yes, so for the rest of the revenue group... Priyam, we are not able to hear you. Is this right now, sir?

No, Priyam.

We can't hear you properly.

Can you use your handset?

Just a second. Am I audible now?

Yes, this is quite better, Priyam.

So, sir, I just wanted to understand the breakup of your revenue growth between the volume as well as the price. Like volume, you have highlighted that it's around 62% for you in this quarter, and rest would be, can we assume that it will be led by the price?

Like gold price?

Gold price, yeah.

See, I will give you a proper reason. See, the thing is, as far as the Y-on-Y basis is concerned, there is definitely volume growth at 61% and Y-on-Y basis. Going forward, what we are intending is 30-40% growth from last year. Because 30-40% is very much achievable in the current year, going forward for this current year. And the top line, we stick to our guidance of around the 50-60% growth this year. So, if I have to go with the volume and the value, volume will remain largely in the 30-40% range, and the value will remain in the 50-60% range as compared to last year. I hope this answers your question.

Yeah, and let's follow up on that question, sir. As we are going with the right issue of 100 crores, and also our model facility has been commenced, so should we expect whatever the guidance you have given, it should be on the upper side, or it could be big guidance for this year?

See, basically, the guidance, as of now, we are sticking to the guidance of 3,500 crores. This right issue is basically to support the growth trajectory. It is because the new factory has come up, we need to fuel the growth part and all. So, that is in line with the estimated target of 3,500 in this year. But yes, in case we see good demand coming up, maybe in the quarter three or something, we can revise our guidance. But as of now, we are sticking to the guidance of 50 to 60% value growth and 30 to 40% volume growth.

Sure, sir. And on your EBITDA margins front, And so the 10% EBITDA margin, so the 10% EBITDA margin, is it sustainable for the rest of the year?

Yeah, on the EBITDA margin, good question. See, basically a part of the margin has spilled over from the unrealized gain locked in the finished goods of last year. See, there was a change in the inventory method from P4 to RAC method. There was some unrealized gain which was locked in the inventory of last year, which got spilled in this current year. So roughly 2 to 2.5% was the inventory gain. So if you remove that person, roughly going forward, looking at the current demand and all, we should be in the range of 7.5 to 8% EBITDA. So yes, that 2 to 2.5% basically comprises of the unrealized gain which we realized in this quarter. But going forward, we don't see that because the gold is still moving in a narrow band. So, we expect the margin should be around 7.5% to 8% EBITDA this year.

Okay, and even considering your moral facility has come up, so you maintain the EBITDA margins overall. So, I am assuming that. Okay. And so, on the other extensive side, we have seen a 132% YOY growth. I just wanted to understand, was it primarily related to moral facility or is there any losses?

Hello?

Yeah, other expenses, sir. Yeah, hello.

Yeah, sorry, can you come again?

Sir, your other expenses have been increased by 0% YOY. I wanted to understand, is it related to the new facility, or is there something also the hedging losses, or again, if you can just highlight? Is there anything unusual in terms of the hedging losses?

Not any hedging per se, any kind of expenses being done. Basically, these are the indirect expenses, right? So, nothing of hedging losses gets, you know, run through this, under this head. Basically, these are the expenses which is required to support our sales trajectory, growth trajectory, and this is in line with the growth. Because if you see the top line, it has grown by 144 percentage. So definitely there will be a height in these other expenses also.

But considering the bigger picture, still I think it is comparable, not that high.

So nothing of any hidden expenses or any other coming under design. Basically, this is just to support the growth engine of the company.

All right, sir. And just a last question from my side. When it comes to the over-off shares post the right issue, what would be that number for the bookkeeping purpose?

Which number, sorry?

The number of shares post the right issue, right?

Yes, the right issue is 46,43471, and post-type issue, it should be around 7,67,000.

7,67, I think you have already done that, right? In this result? You have adjusted the number of shares for this? In this result? No, no, no. No, no, no. Okay, because I can see 7.2 crores versus the 66, I mean, 6.6 crores last quarter. So, basically, I just wanted to understand what to do with the number of shares.

There is no change in the number of shares other than the right specificity is coming on.

Okay, so post your right issue, your number of shares would... Okay, so for the coming years, we should assume 7.6 crores as your number of shares.

Yes, perfect.

Both sides. That's it for my side. Thank you so much.

Thank you. We have our next question from the line. Bhagat from Share India, please go ahead.

Hello. Yes, sir, I can hear you. Hi, sir, thank you for the opportunity. I have a couple of questions. So, you know, my first question is that with the Marool facility, now operational, how do we see if, you know, supporting our production efficiency, operating leverage, and revenue growth?

See, basically, the moral factor is just an enabler to, you know, fuel the growth trajectory that we are doing it. Basically, our plan is to, you know, have a better infrastructure in place to get those opportunities to, you know, to cater to the large-scale retailers because now people have become very cautious. They just want the just-in inventory. They are just planning with that kind of a thing. So, in that scenario, what our plan was going Going ahead to have a better infrastructure, production capacity being rolled out first, so once the basic thing, we cover the basis, going ahead, we can just ramp up the inventory and all, in line with the demand that we get it. So definitely it is going to be a growth enabler going ahead. So that is what moral is, it's a growth enabler, and yes, it is going to improve my production efficiency, but now it has just come into operation in the month of June, but going ahead, you will see better results coming from that in a row.

Okay, okay. And so, my next question is that, can you share an update on custom editions that we have done during this quarter, you know, including opportunities across domestic and exports market?

What we are doing, you are talking about the guidance?

No, sir, what we have done Q1, I mean, any new custom editions that we have done?

New one, our export still pertains to 4% of the total revenue. In that, I will just add up because our Dubai factory has just, Dubai office is just coming in, which I have just done with the compliance patent. We are just back in India, we are awaiting for the highway approval. Once that is in place, things will be set up and that will increase, Dubai office will increase our international footprint over a period of time. So, as of now, the export comprises of 4% of the total revenue for Q1.

Okay. And so, what potential do we see with us from our international business going forward?

Huge potential. As of now, because Dubai is the gateway for us to have that international footprint and all. So, once this war and all gets over, gets stabilized and all, so we see a huge potential coming around Because we are just catering to 3-4 countries now. So, huge potential is there. So, going forward, we see this opportunity, you know, to have a footprint across the globe.

Okay, sir. That helps. Thank you.

Thank you. We have our next question from the line of Netra Deshpande from Mary Asset. Please go ahead.

Yeah, thanks for the opportunity and congratulations for the great set of numbers. I just would like to ask you about the margins that you set. So, last year, 2-3% of unrealization gains that has observed in this. So, we just would like to understand what would be the sustainability for the further, you can say, for the FY27 and the guidance, if you can please give some lights on that. And secondly, about the current status position, my second question pertaining with the cash flow positions, which is like, as you said, the net debt position also, if you can add up somewhere around 0.3. So, can you please give some insights on that also? Thank you.

Okay, as far as the margin is concerned, as I told you, the sustainable margin, EBITDA margin, is around 7.5 to 8%. That's one thing. The unrealized gain that I already told, which has just hyped up EBITDA margin by 2, 2.5% and all. So that's another thing. Going forward, our focus will be more on the growth trajectory, expanding volume, reaching new markets and all. So, short term, since we are on a growth spree, we will certainly require more funds to come in, both in the form of debt and right issue. To keep things in balance, we will be adding both debt and right issue to keep that thing. But going forward, it will certainly towards the increment, it will cater to the incremental working capital requirements of the company. And the guidance, as I said you earlier, we will stick to the guidance of 50 to 60 percent in terms of value. And in terms of volume, it should be around 30 to 40 percent over last year.

Okay. Okay. Okay.

Thanks. And sir, about the cash flow revisions, as you said, 0.34. That is a debt-to-equity ratio, sir.

Today, we are currently at 0.50, which is still, you know, we plan to go up to less than one baby, because still, as I told you, we are on a growth spree, moral factory coming up, Dubai office coming up, our another factory, you know, about to start commence its operations. So, certainly, our working capital needs will be higher in the coming years and all. And at the same time, we will do prudent finance management, having a better matrix of debt equity so that it doesn't go more than once at this stage.

No, thank you. Thanks. And all the best for the next quarter. Thank you.

Thank you.

Thank you. We have our next question from the line of Ajit Sethi from ICO Quantum Solutions. Please go.

Thank you for the opportunity. Sir, what is the current capacity utilization for our existing facility, the Mumbai one?

It's currently right now 75%.

Okay.

Sir, when will this Jaipur facility will be operational and what is the amount of KPEX that you are spending?

So, KPEX is around 47 crores what we have allotted for Jaipur facility and it should be operational around November, mid-November or December. Because the factory work is still going on.

And sir, I just want to understand about our inventory risk management. Sir, could you clarify what percentage of the gold inventory is fully backed by gold metal loan versus outright purchase?

So, we have acquired gold metal loan and all. So, we do natural hedging. Whatever gold we sell, that's what we buy immediately. And now we have started GML when because the market is looking at the gold prices are looking stable. So, earlier also we used to do GML and all. But due to the high volatility, we went on, we came up on GM. So, we've been doing GMS in 10-15 years. We've been heading out.

Thank you, sir.

Thank you. We have our next question from the liner, Rajesh Singhal from VTG Capital. Please go ahead.

Hi. Good evening, sir. Thank you for taking my question and congratulation on a very good set of numbers. So, regarding the capacity utilization, so we already had 2,700 kg capacity existing, and last year we did 1,715 kg of volume, and we are guiding for 30-40% growth, so which means like, which comes around 2,500 kg, right? So, the existing facility is capable enough to meet that guidance range. And so, any kind of, like, what kind of utilization we are looking at, this 4,000 kg capacity, which we have recently commissioned.

Most of the manufacturing has a

different kind of jewelry. So, here we are sticking on to 75% of utilization and that is a different line of jewelry which we have started in Maru. So, there it's a new factory. So, the manufacturing has started since one month and there also it's slowly going to scale up and Jaipur facility should be starting by November, big November or December.

Great. And, okay. And the second question would be, so this 30-40% volume growth that is on the pure gold. So, any comment on the gold, any comment on diamond and other studied jewelries which can also be a part of the revenue?

So, our main focus is on keeping the studied jewelry which we do 70% of the, 70% of the jewelry which sells is studied jewelry and 30% which is on a plain gold jewelry. Okay.

Okay.

Thank you, sir. I will get back in the queue. Thank you very much.

Thank you. We have our next question from the line of Haman from Cardi Capital. Please go ahead.

Yeah. Hi. Am I audible?

Yes, you are audible.

Yeah. Thanks for the opportunity, sir. My question is a bit broader in terms of business understanding. So, due to the rise in gold prices, we have been seeing the trend that the retailers are doing a lot of business in terms of exchange programs now, like, by exchanging their old jewelry with the new one. So, I just wanted to understand, like, does this phenomena affect us anyhow directly or indirectly, like, in terms of demand or anything?

No, it doesn't affect our demand because we have customers wide-ranged from all over India as well as we export our jewellery also. So, it doesn't affect our business at all. Ultimately, even if the customer exchanges our jewellery, they still have to buy jewellery from people like us. We are a manufacturer, so even if we exchange the jewellery with the old wool and with jewellery they sell it in the retail store, they still have to maintain their stock. So, they have to buy new jewelry again from us.

Got it. Got it. Yeah, that's it from us. Thank you.

Thank you. We have our next question from Lineoff Weber from CFM. Please go ahead.

Thanks for the opportunity. And firstly, the congratulations on the amazing set of results. So, I want to understand one thing that you said that the current bit margins would be somewhere around 7.5 to 8%. So, as Strygold has mentioned, they have a lot of new things which are coming up, which are going to expand their margins, like the advanced gold metal, then they are trying to reduce the gold losses. So, what are the margins, Strygold, that we can see, which can help us boost these 7.5 to 8% to somewhere around 10% for Shanti Gold?

So, after our new facility, Jaipur and everything will start, so, you know, we are manufacturing with now the capacity of 2.7 tonne and our new facility, which has started with around 4 tonne. So, going forward, then we are all manufacturing companies, I mean, the facilities which we have opened up and which is on 75% of the production, we'll have a good margin And with this new facility, yeah, we might go up on the EBITDA margin also.

Understood. But is there like any strategic initiative of being something like that Skygold is taking like reducing their gold losses, then taking more...

Yeah, we have the new facility, what we are coming up with a lot of new machines and a lot of new technologies.

Okay. So, we can expect that these 8% might even like slowly, slowly shift up to 10% in 3 to 4 years, right?

Yes, yes, yes. In a long term, yes.

Okay, okay. Thanks for answering my questions. And I'll love it for future. Thank you.

Thank you. We have our next question from the line of Mahekjan from KIM Investments.

Please go ahead. Mahekjan, are you there? Mahekjan, are you there?

Hello.

Yes, please go ahead for the questions.

Hi. So, I just had a question. With your manufacturing capacity and volume is expected to increase, how do you see working capital requirements evolving or particularly across inventories and receivables?

Yeah, ma'am.

As I already said, our, we are very, long-term fundamentals remain very strong. Going forward, as I said about the guidance for this current year, again, 50 to 60% of the value is a very big number. So, certainly, the working capital needs will be there. And going at, as we are coming also with new factory, new setup, new footprint in the offshore market and all. So, yes, from that perspective, my inventory, my working capital need certainly will go up. And going at also, we are having a prudent mix of better debt equity. There will be a mix of both debt equity. So, overall, the debt equity should not be more than 1x of the proportion. So, we are planning it. Yes, there is a big demand is there, factory is coming up, and we are planning it very judicially, very prudently by having a better mix of both debt and equity. So, that's what the plan is, that's what the intent is. And our focus will be more in terms of volume expansion, reaching out to new markets, new customers, new geographies, new international footprint. From that perspective, my working capital needs will be, you know, will be there to fuel the growth, such kind of a growth project.

Okay. And your customer-based expand, how is the company, like, balancing between deeper engagements with existing customers or new customers? How do you see the contribution from your customers evolving over the medium term?

Yeah, basically, it is both twofold, madam. Existing customers are existing customers. We need to, you know, have that kind of a deeper relationship with them to increase the wallet share. So, that's said and done. Means we can't leave them. In fact, as a matter of fact, we are coming with new variety designs, new designs offering in no huge time and all. So that is also helping us in increasing their wallet share. So that's one thing. Second thing, as you rightly said, it's a continuous process. We keep on adding new customers, reach out to new markets, new geographies. So as we reach out to new customers, new people come on board, and slowly our scale also continues to come from those quarters also. So, that's how going forward, we will have a proper mix of both existing customers ready to be definitely certainly look to increase the value share, and of course, at the same time, having new customers on board while reaching out to them in various geographies of the market as well as international, on the international front.

Okay. Thank you so much. Thank you.

Thank you.

We have our next question from Laino. Anirudh Sharma from Akant Investments. Please go ahead.

So, hi, good afternoon. So, I had a couple of questions from my side. So, sir, the designer and Turkish jewellery are supporting better realizations. Could you share their current contribution to revenue and the potential for these categories to gain further share over the medium term?

75% of the revenue revenue is from designer's jewelry and 25% from a clean gold jewelry.

Okay, okay. And sir, as these designer and Turkish jewelry gain traction, how do you see the overall product mix evolving and what potential does this create for margin improvement over the medium term?

See, the demand of both the jewellery was, I think, because just now we have exhibited in the jewellery fair and we've come and we have a huge demand of our studied jewellery as well as the new line that we started. I imagine, yeah, so there are now new facilities, now this Marul facility which has started and which, when it goes into the capacity of 60% manufacturing, the margin is going to improve because our basic, fixed expenses are going to be fixed. So, when your quantity is going to increase and demand, I mean, through demand, so margins are also going to be better.

Okay, sir. Okay. Thank you. That's from my side.

Thank you. We have our next question from the line of Kashish, an individual investor. Please go ahead.

Thanks for the opportunity, sir. A couple of questions from my side.

How are you seeing the demand in quarter 2? Because usually quarter 2 is better than quarter 1 and quarter 3 is better than quarter 2. So we can expect similar kind of to continue.

Yeah, the demand is, as I said, we just exhibited from the exhibition and we have come and we have a huge demand in export as well as the local. So yeah, so the orders are being taken and the jewelry, this quarter has to be, but it's going to be good.

Sure, sir. Thank you. Second question is in the context of this Jaipur facility, sir. So, I would like to mention that this will be a new type of products which we will be developing. So, whether we will be moving to 14-carat and 18-carat jewelry as well or no? Will it still be a 22-carat jewelry in this Jaipur?

22-carat and 18-carat. Basically, we are a manufacturer. So, for us, it doesn't make a difference to manufacture 18-carat, 14-carat, or 12-carat, or 9-carat. So, the customer demands what we have from at our end is more of 18 and 22 carats. Customer demands for 14 carats also, we can manufacture that also and give it to them.

Got it, sir. Thank you so much. Last question, sir. In terms of our client page base, can we have any bifurcation? How much of us when you come from south and how much comes from north or no? Our products are sold entire south India.

North, we just recently entered in, and we recently have a lot of new clients from north. So, you know, by the end of the year, we'll be able to give you a better calculation by the end of the year. So, recently, we just entered into a north, and we've got a lot of new plans to north.

Got it. So, just one last thing again. My understanding is the margins on the northern side, perhaps, is slightly more. So, is that understanding, select or more, the margins throughout north or south is more or less similar?

More or less is similar.

Okay. Thank you so much, sir. Best of luck for the next quarter. Thank you.

Thank you. We have our next question from the line of Rashaan, an individual investor. Go ahead.

Hello. Hello, yes.

Yes, Rashaan.

Sir, I was checking your borrowings, and I want to give you a compliment that you have maintained a very good growth in less borrowings in since past. financial years as computer peers.

Thank you.

So, my question is that, sir, is it the right time to play a card of borrowing? That's it.

So, right now, the money what we are acquiring from right issue is going to be invested completely in gold and working capital. So, we are going to stick to the borrowings what we are already taking.

Okay, sir. Thank you.

Thank you. We have our next question from the line of J.I. Prakash, an individual investor. Please go ahead.

Good afternoon, sir.

You have completed one year from the IPO, and also you reported around 244 crores in the last four quarters as a profit. Despite that, you have not, you are going for a rice issue. And also, last con call, you said that you are

working for a death-free company, but you are working for a... Hello.

Sir, the participant got disconnected. We move on to the next question. From the line of Haven, so we have to go ahead.

Sir, thank you for providing me the opportunity and congratulations on a very good set of numbers. Sir, I had one concern in mind. First thing is, our cash flows are continuously bleeding. I had a look at the cash flow from operations over the past 4-5 years. They continue to bleed. So can you, sir, throw some light on it? I mean, what is the reason behind it and when it can be positive?

The reason for being negative cash flow is we utilize all the funds and we keep the stock rates. We don't deal on order-to-order pieces. Stocks are always ready when customer comes, so it's easy for them to select and immediately pick them up. Due to that, our volume is also growing and our new customers are also joining us. We have been able to cover up a lot of your customers from the market. So, negative cash flow is only, you can see, because it's the money, what we have used it, it's in our stock.

Okay, so this is the business model which we are following, you mean to say?

Yeah, this is the business model, yeah. It can become positive if I just work on order-to-order basis and I don't keep the stock rate.

Got it, got it, sir. And one more thing I wanted to ask you is, sir, we have already a listed group company, Utsav CZ, if I am right. So, I mean, since I am new to the company, so I don't know what is that company doing and what is the difference. I mean, what was the idea of listing a separate company which is into the same trade?

So, Bodhsav was into, that's what you call, we used to sell it on an MRP basis earlier on. We used to have a brand called Karishma Kapoor and that, and that factory was started in 2007. So, that's how these two companies were differentiated, because this is to be into mass manufacturing, and that is to be completely on an MRP basis. So, with time, that factory, I mean, the MRP was in India, so that factory, we started again a mass manufacturing, and in jewelry line, there was a lot of new line of jewelry, means all jewelers, they cannot manufacture all kinds of jewelry. So, URSA is a completely bit of different management, and Shanti Gold is with a different mind. So, it doesn't, both companies are like 20 years old companies.

So, sir, is Utsav into B2C or Utsav is also into B2B?

Utsav is also into B2B. But Utsav has a different line of jewelry and Shanti Gold has a different line of jewelry.

Sir, can you please elaborate on it, sir, a different kind of jewelry. What do you mean by this, sir?

So, we do diamonds over there, we do rose gold over there, and jewelry, you know, there are like 100 kinds of jewelry. How do I explain a different line of jewellery? There are a lot of line of jewellery, and when you go to a retail store, you see there are a lot of different kind of jewellery in the store. It's not like only games, but only rings. In rings also, you get 100 types of rings. Okay, okay, sir.

Okay.

Thanks a lot. Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and 1.

We have our next question from the liner, Vaibha from CFM.

Please go ahead.

I wanted to understand, like, is there any vision 2030 for Shanti Gold as well, like, and what is the, like, target of maintaining this growth percentage of around 30-40% of volume growth, like, till when can we sustain this kind of growth?

Sorry, can you please come again? You are talking about the volume growth?

Yeah, correct.

Yeah, see, basically the volume growth is nothing but, you know, proper planning with, you know, all kind of infrastructure being already laid out by the management in terms of coming up with a new setup at Merol and, you know, setting up a new office in the offshore market, mainly in Dubai and all. So, these are all the road paths toward fueling the growth strategy, toward growing the top line of the company. So, yes, first what we have done is we have laid down the infrastructure. We are going to new geographies because as of now still, our only constraint was a working capital. That's the reason we couldn't grow that faster. With we getting good access to the capital, we being listed, we coming up with the right issue, our balance sheet going strong. So there is a bigger market for us to reach out to new places, new markets, coming up, new product mix, new geographies and all. So that's where the volume should certainly come. Our reach was limited because of lack of access to the capital, but now with capital flowing in, we are pretty sure of achieving this 30 to 40% growth in the current financial year, and on that basis, we have come with 30 to 40% growth in the volume.

Okay, understood. So, you are saying that with the additions of new products, then gaining market share.

Addition of new products, new factory, reaching to new geographies. Certainly, this is definitely going to add to the top line of the company.

But, and so, my question is that, for how long do you think that you can sustain 80 to 40% volume growth?

Yeah, see, basically, we are just on a growing spread. We are just growing now. So, what is our share as compared to the other players, big players? So, our sales growth is 0.00% something. So, sky is the limit. So, we intend to grow. We intend to go prudently with having a better mix of both capital, debt and capital. Sky is the limit. We are just, you know, we have been in this business for more than 22 decades and also we are very good in manufacturing things as there is more demand for this large organized retail jewelry. The demand is coming from there because there is an organized shift from unorganized retail market to organized retail segment. People are coming to us. They need a rollout of new designs, just a few times. They need a better after-sales service. So, yeah, we are getting better tractions and we will grow because still we are at a very nascent stage of the overall growth strategy of the company. So, this will continue for a few more years. Because if you see, as compared to the peers, last year, we just did 2,000 crores. So, that's still a very negligible share in the overall size of the...

Got it, got it. So, basically, we can say that since last 20 years, you were doing that a moderate case, but now that you have come up with the IPO and you have all the access to funds...

There's better access to the capital and all those things. We are, you know, just, you know, growing fast, and yes, we will certainly do good, and we will keep this momentum going for the next few years for sure.

Okay, understood. And so, one more thing that, one more thing is that, can we expect that, like in quarter one, the volume growth was around 60% if I'm not coming? So, can we expect that this can be an ambition to achieve for the full year? Like, I understand the guidance is around 30-40%, but can there be some scenario that we might achieve 60% as well for the volume growth itself?

No, that's a visual thinking. But yes, we are trying our best. See, as of now, we stick to our guidance of 30 to 40 percent in terms of volume 50 to 60 percent. Yes, if there is a good demand, market recovers, huge demand is there, product is well accepted, we are doing good, then nothing is impossible. So, going ahead, we will certainly look for that. But for now, we will stick to our target of 30 to 40 percent growth. In case of any change, we will certainly let you.

Okay. Thank you, sir. All the best for the future.

Thank you. Thank you so much.

Thank you. We have our next question from the line of Satyash Bhatt from Trading Investing.

Please go ahead. Yeah, hi there. Congratulations on a specific set of numbers for Q1. I have a couple of questions. One basically building on some what the previous caller has mentioned, which is what I wanted to ask is, now that you are listed for about an year, Do you have intentions in terms of, you know, giving a three-year or five-year vision, especially given that you do have now, you know, your capacity expansion done and funding via rice and maybe other, you know, debts being secured and your expansion market, say you're expanding into Dubai and you're having an office there. So, do you want to, you know, over the next quarter, maybe, or next one or two quarters, share with investors views on what's your three-year or five-year vision? That's question one. And second question is, you know, something which I observed is that you have this, you know, JPL facility, which is adding 1,200 kgs, and it's affected by 50,000 square feet of land. So, is it that there can be more opportunity to expand that further, or probably that's the clarification I wanted?

Farin, thank you so much for the question, sir. First off, on the growth trajectory for three years, as I've been continuously telling you, sir, we are definitely on the growing scale. This new setup, new manufacturing, that, you know, that vouch for the kind of growth that we are looking for in the coming year. So, that really sets the tone as far as the growth is concerned. So, as of now, this market, you know, doing good. Certainly, we should be able to, you know, achieve 40 to 50 to 60 percent in terms of value and all and 30 to 40 percent. Since we are still very nascent in the growth stage, still there are a lot of markets to be covered, a lot of geographies to be reached, and of course, new product line also, you know, to be launched. Because as of now, we were just limited to few lines of product like pieces and all. We are coming with new product line, new geographies, new customers. So, yes, for the next three, four years, this trajectory should continue. And as of now, we can fairly say that this growth momentum is there to continue for a couple of years. Now, coming to your second question, as far as the JetPood facilities is concerned, sir, it is a well-calibrated thought from the management to have a larger setup going forward. That 50,000 square foot is just the first phase of commencement, first phase that we are going with. Yes, again tomorrow, as we see, going for 3, 4, 5 years down, we have big ambition. I won't tell you the number for now, but yes, the ambitions are that, and it is for the market to see for coming with this kind of a setup. Jaipur factory is actually spread across 3 acres of land, and this 50,000 is just one segment of the whole plant that we have, Going forward, definitely, in case the demand exceeds our expectations and all, we will definitely come up with the capacity itself will grow by many, many folds. So, we are gearing for the long-term point of view, and we are very much, we are pretty there, and the whole lot of market to be covered with new product lines to be launched. We are pretty confident of the growth trajectory that we are into now.

Okay, that's great to hear. Thank you, and all the best, yeah.

Thank you so much.

Thank you. Ladies and gentlemen, that would be the last question of the day, and I now have the confidence over to the management for closing comments.

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

Thank you. On behalf of Shanti Gold International Limited, that concludes this conference. Thank you for joining us and you may now defend your rights.