Goldiam International Limited — Investor Meet, 13-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

1. Financial Performance: Goldiam International reported a robust Q3 FY25, achieving consolidated revenues of ₹2,880 million, a significant increase of 41% year-on-year and a remarkable 104% quarter-on-quarter. For the nine months of FY25, revenues reached ₹5,988 million, up 29% year-over-year. EBITDA for Q3 improved to ₹708 million, reflecting a 62% year-on-year increase, while the EBITDA margin climbed to an all-time high of 24.6%. Profit after tax for Q3 stood at ₹498 million, representing a 54% growth year-over-year.

2. Future Outlook and Growth Drivers: Management emphasized their focus on expanding the Lab Grown Diamond (LGD) segment, with LGD jewelry comprising 80% of export sales compared to 58% in the previous year. They aim to increase penetration among existing customers and are optimistic about closing the year with solid revenue and profit growth, driven by innovative designs and effective procurement strategies.

3. Order Book and Operational Updates: The company reported an order book of ₹1,750 million, projected to be fulfilled within three to four months. Upcoming retail expansions will include three additional ORIGEM stores by March 2025.

4. Analyst Q&A Insights (Detailed):

- Revenue and Profitability: Analysts sought insights on revenue projections and profitability, with management highlighting strong order visibility and increasing demand for larger LGD sizes.

- Market Position and Competitive Landscape: Management noted a positive shift in consumer preference from natural to lab-grown diamonds, strengthening their market position.

- Operational Challenges or Risks: Concerns regarding delays in shipments were acknowledged, but overall confidence in managing operational risks remained high.

- Capex and Capital Allocation: Analysts inquired about retail expansion plans, with management confirming a strategy to open 20-25 new stores by December 2025 in addition to the existing ones.

- Strategic Priorities and Long-Term Vision: The company aims to double revenue in the next four years through retail expansion and a focus on LGD, with plans to reach 150-200 stores over the medium term.

5. Market or Regulatory Updates: No significant regulatory updates were discussed. The emphasis remained on market dynamics favoring LGDs, particularly in the US market.

6. Strategic Focus Areas: The focus on LGD, expansion of ORIGEM stores, and customer-centric innovations are key strategic themes. Management conveyed optimism about future growth, supported by a strong financial foundation.

7. Investor Insight: Goldiam's strong financial results, growth trajectory, and strategic initiatives suggest a favorable outlook. The company’s commitment to innovation in LGDs positions it well within a shifting market, making it an attractive option for investors seeking long-term growth.