Q1 2027 Titan Co Ltd Earnings Call

Speaker #1: Ladies and gentlemen, good day and welcome to the Titan Company Limited's Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode.

Operator 2: Ladies and gentlemen, good day and welcome to the Titan Company Limited's Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ajoy Chawla, Managing Director, Titan Company Limited. Thank you, over to you, Mr. Chawla.

Speaker #1: And there will be an opportunity for you to ask questions after the presentation concludes. Should we need assistance during the conference call, please signal an operator by pressing star and then zero on your touchdown phone.

Speaker #1: Please note that this conference is being recorded. I now hand the conference over to Mr. Ajoy Chawla, Managing Director, Titan Company Limited. Thank you, and over to you, Mr. Chawla.

Speaker #2: good evening, friends. welcome to the earnings call of quarter one for FY27. it's been another fantastic quarter, and I must say this quarter has been even better than the previous quarters.

Ajoy Chawla: Good evening, friends. Welcome to the earnings call of Q1 for FY27. It has been another fantastic quarter. I must say this quarter has been even better than the previous quarters. We have seen all-round growth across all our businesses, all our brands, subsidiaries. We have also seen a good volume growth and a buyer growth that has come in. All in all, very positive and certainly disciplined execution as well, which has driven this as well as the results. I now hand over this to our CFO, Ashok, who has a few opening remarks before we open it up for some questions. Thank you.

Speaker #2: We've seen all-round growth across all our businesses, all our brands, subsidiaries, and we've also seen a good volume growth and a buyer growth that has come in.

Speaker #2: So all in all, very positive. And certainly, discipline execution as well, which has driven this, as well as the results. I now hand over this to our CFO, Ashok, who has a few opening remarks before we open it up for some

Speaker #3: Hello. good evening, everyone. we are very pleased to report another quarter of a strong growth across our portfolio as Ajoy said. and, and we must also note that operating environment was not so favorable, but still, things have turned out very well for us.

Ashok Sonthalia: Hello. Good evening, everyone. We are very pleased to report another quarter of strong growth across our portfolio, as Ajoy said. We must also note that operating environment was not so favorable, but still things have turned out very well to us. Before we get into Q&A, I would like to highlight a few aspects that will help in interpreting the numbers and quality of results for you. There might be common questions, I am addressing it upfront. We had during this quarter, gains on account of custom duty rate increase from 6% to 15%. While these gains will be realized as the inventory gets sold over the next couple of quarters. In this quarter, we had overall at a consolidated level, realization of INR 407 crore. INR 386 crore was in Tanishq, Mia, Zoya portfolio, and INR 21 crore was in CaratLane.

Speaker #3: before we get into Q&A, I would like to highlight a few aspects that will help in interpreting the numbers and quality of results for you.

Speaker #3: And there might be common questions, so I'm addressing it up front. We had, during this quarter, gains on account of customs duty rate increase from 6% to 15%.

Speaker #3: while these gains will be realized as the inventory gets sold over the next couple of quarters, but in this quarter, we had a overall at a consolidated level, realization of 407 crore.

Speaker #3: 386 crore was in Spanish near their portfolio, and 21 crore was in CaratLane. The other significant item during this quarter was that, as sudden and sharp customs duty changes had been made and taken, the market went into quite a, I would say, volatility, where international prices and domestic prices were at a divergence at many times.

Ashok Sonthalia: The other significant item during this quarter was that as sudden and sharp custom duty changed and many other steps are being taken, the market went into quite a, I would say, volatility, where international prices and domestic prices were at a divergence at many times. We were also advancing our gold procurements to secure that we are fully equipped to meet our festive demand and production without any disruptions. On account of those price divergence, we have accounting MTM in the inventory, which caused 75 to 80 basis point Jewellery Division EBIT upward. Jewellery Division has the benefit of that, we believe that these are likely to reverse in the coming quarters. The normalized margin considering both custom duty gain and MTM gain, the normalized EBIT margin for Tanishq, Mia, Gia business would be 10.9% number for this quarter.

Speaker #3: And we were also advancing our goal procurement, to secure that we are fully, fully equipped to meet our festive demand and production without any disruptions.

Speaker #3: So on account of those price divergence, we have a accounting MTM, in the inventory, which is which caused 75 to 80 basis point jewelry division a bit upward.

Speaker #3: So jewelry division has the benefit of that. And we believe that these are likely to reverse in the coming quarters. so, so the normalized margin considering both customs duty gain and MTM gain, the normalized a bit margin for tennis near their business would be 10.9%.

Speaker #3: normal number for this quarter. The other important change which I wanted to, tell you that we have revised the classification of our jewelry product mix.

Ashok Sonthalia: The other important change, which I wanted to tell you, that we have revised the classification of our jewellery product mix. You remember in the last quarters, we have talked about colored stone jewellery, we have been progressing on that. Colored stone jewellery, which was earlier clubbed under the studded category, we have reclassified that into the gold jewellery, so that studded reflects more diamond jewellery and not any other colored stone or plated jewellery, et cetera. To that extent, you will see some change in the number. To facilitate, I think we have shared declassified numbers for two years periods also, so that comparability is not lost. Last point regarding watches business, that while reported EBIT profitability will look muted compared to revenue growth in the Q2, but every Q1, we run a standard costing revaluation of inventory of watches.

Speaker #3: You remember in the last quarters we have talked about color stone jewelry. and we, we have been progressing on that. Color stone jewelry, which was earlier clubbed under the studded category, we have reclassified that into the gold jewelry.

Speaker #3: so that studded reflects to more diamond jewelry and not any other color stone or polki jewelry, etc. So to that extent, you will see some, change in the number and to facilitate I think we have shared the reclassified number for previous periods also.

Speaker #3: So that comparability is not lost. And last point regarding watches business, that while we quoted a bit profitability will look muted compared to revenue growth in the quarter two, but every quarter one we run standard costing revaluation of inventory of watches last year we had called out if you refer that earning that about 50 crore was the benefit to watch division.

Ashok Sonthalia: Last year we had called out, if you recall that earning, that about INR 50 crore was the benefit to Watch Division. This quarter, that benefit was far less. If you normalize for both these sides, then last Q1, FY26 Watch EBIT margin was 18.6% compared to 17.8% normalized margin for this quarter. These were some of the points which I thought I'll say upfront, now we will open the floor for question and answers.

Speaker #3: This quarter, that benefit was far less. So if you normalize for both these sides, then last quarter, one FY26 Watches EBIT margin was 18.6%, compared to 17.8% normalized margin for this quarter.

Speaker #3: So these were some of the points which I thought I'll state upfront. And now we will open the floor for questions and answers.

Speaker #1: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchdown phone.

Operator 2: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and then two. Participants are requested to use handsets while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Videesha Sheth with Ambit Capital. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and then two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Vidisha Sheth with Ambit Capital.

Speaker #1: Please go ahead.

Speaker #4: Yes. Hi. my first question was pertaining to the jewelry segment. now in one two even you mentioned that growth to some extent would have been impacted, because of government interventions or even events like Adik Mask.

Videesha Sheth: Yes. Hi. My first question was pertaining to the Jewellery segment. Now in Q1 even you mentioned that growth to some extent would have been impacted because of government interventions or even events like Adhik Maas. Based on your observation, have you seen that the postponed demand has come back in the quarter till date? Accordingly, can we expect growth momentum to further improve in the ongoing quarter? Any particular change in consumer behavior also, if you'd like to share.

Speaker #4: So, based on your observation, have you seen that the postponed demand has come back in the quarter to date? And accordingly, can we expect growth momentum to further improve in the ongoing quarter?

Speaker #4: And any particular change in consumer behavior also, if you'd, like to share?

Speaker #2: Yeah. Thanks. thanks for that question. some key dates, for everyone's to refresh everyone's memory. it's May 10th was a certain callout by the PM.

Ashok Sonthalia: Yeah. Thanks for that question. Some key dates to refresh everyone's memory. 10 May was a certain call-out by the PM. 13 May was the customs duty change, and we also had Adhik Maas also begin from 17 May. There was obviously an overlap of many of these developments. As a consequence, we did see a softness in consumer sentiment for about three weeks' time till the end of May. By the beginning of June, things started picking up. Weddings also restarted post the end of Adhik Maas. We believe that it was a deferment, and we saw things pick up in June. What we lost in May, perhaps we gained back in the month of June.

Speaker #2: May 13th was the customs duty change. And we also had Adik Mask, also begin from May 17th. So there was obviously an overlap of, many of these developments.

Speaker #2: A-as a consequence, we did see a softness in consumer sentiment for about three weeks' time till the end of May. But by the beginning of June, things started picking up.

Speaker #2: Weddings also restarted post the end of Adhik Maas. So we believe that it was a deferment, and we saw things pick up in June.

Speaker #2: what we lost in May perhaps we gained back in the month of June.

Speaker #4: Sure. And any, any changes in consumer behavior, whether it's, the sub-1 lakh category, coming back or sustainance of studded growth that you particularly want to call out?

Videesha Sheth: Sure. Any changes in consumer behavior, whether it's the sub one lakh category coming back or sustenance of studded growth that you particularly want to call out?

Speaker #2: No. As you're aware, we, you know, we, have we began seeing a resurgence of studded in quarter four of last year. And we are seeing that continue to play out in quarter one.

Ashok Sonthalia: No, as you're aware, we began seeing a resurgence of studded in Q4 of last year, and we are seeing that continue to play out in Q1.

Ashok Sonthalia: In a sense, the momentum that we had in Q4 continued during Akshaya Tritiya. There was a brief lull, perhaps

Speaker #2: And, in a sense, it's, you know, the momentum that we had in Q4 continued during Akshay Tritiya. There was a brief lull, perhaps, in May, but it's kind of come back in the month of June.

Arun Narayan: In May, it's kind of come back in the month of June.

Speaker #4: Sure. Just one more question before I get back in the queue. In the context of sustenance of the improvement we're seeing in buyer growth—even studded growth seems to have revived quite well.

Videesha Sheth: Sure. Just one more question before I get back in the queue. In context of sustenance of the improvement we're seeing in buyer growth, even studded group seems to have revived quite well. Probably even the zero reduction on the old gold policy will start getting realized September onwards. Would you look to revisit the EBIT growth or margin guidance for the jewelry segment, given during the announcement for the next one, two years at least?

Speaker #4: Probably even the zero reduction on the old gold policy will start getting applied from September 9 onwards. Would you look to revisit the EBIT growth or margin guidance for the jewelry segment, given you're doing the investment for the next one to two years at least?

Arun Narayan: Do you want to give a guidance on the EBIT growth or margin, is what she's asking.

Speaker #2: do you want do you want to give us guidance on the a bit growth or margin is what she's asking?

Speaker #3: no. We are not giving any guidance at this point of time. In the a investor thing and prior, we have said that more of 11% being the center of gravity for jewelry, business margin.

Ashok Sonthalia: No, we are not giving any guidance at this point of time. In the investor thing and prior, we have said that more of 11% being the center of gravity for jewelry business margin, we would be around that, plus, minus something can happen. Many moving parts. Market is behaving in a particular manner. Gold price continue to remain on a very uncertain trajectory. You would have seen softening, all of a sudden, in a day, $100, $200 going up and down. Given these circumstances, we will stick with our previous guidance. We are not changing it.

Speaker #3: We would be around that, plus-minus; something can happen. So many moving parts—the market is behaving in a particular manner. Gold prices continue to remain on a very uncertain trajectory.

Speaker #3: you would have seen soft names and all of a sudden in a day, 100, 200 dollar going up and down. So given this circumstances, we will stick with our previous guidance.

Speaker #3: We are not changing it.

Speaker #4: Sure. And, and get back in the give time for that.

Videesha Sheth: Sure. I'll get back in the queue. Thanks, madam.

Speaker #1: Thank you. Your next question comes from the line of Devanshu Bansal with MK Global. Please go ahead.

Operator 2: Thank you. Your next question comes from the line of Devanshu Bansal with Emkay Global. Please go ahead.

Speaker #5: Yes, sir. Hi. thanks for taking my question and congratulations on a strong quarter. sir, Ashok sir, so last year also there was this, 50 bips one-off, gain which was there in the margin.

Devanshu Bansal: Yes, sir. Hi. Thanks for taking my question, and congratulations on a strong quarter. Ashok sir, last year also there was this 50 bps one-off gain which was there in the margin. Ideally, the current quarter margin at 10.9% compares with 11.3% last year, right?

Speaker #5: so ideally, the current quarter margin at 10.9% compares with 11.3% last year, right? Okay.

Speaker #3: Yeah. Yes.

Ashok Sonthalia: Yeah.

Devanshu Bansal: Okay.

Speaker #5: And over and sir, going ahead, so this reversal of 80 bips, is this the only reversal or that earlier 50 bips, reversal which was there last year, that can also sort of happen, in the next few quarters?

Ashok Sonthalia: Yes, correct.

Devanshu Bansal: Sir, going ahead, this reversal of 80 basis points, is this the only reversal or that earlier 50 basis points reversal which was there last year, that can also sort of happen in the next few quarters?

Ashok Sonthalia: That would have happened in next few quarters, for sure. It was not something major that every quarter we had called out the reversal. Sometime tracking of that reversal also the way gold prices move when various futures get settled. It is very likely that this will reverse because when those inventories will be realized then the losses or gains will get crystallized. Over next two to three quarters these gains would gradually flow through.

Speaker #3: That would have happened in next few quarters for sure. But it was not something, major that every quarter we had called out the reversal.

Speaker #3: And sometime tracking of that reversal also the way gold prices moved in various futures gets settled, but, but it is very likely that this will reverse because then those inventories will be realized.

Speaker #3: Then the losses or gains will get crystallized. Over the next two to three quarters, these gains would gradually flow through PMF.

Speaker #5: Got it. And sir, this quarter, it was ₹400 crore of benefit, but the overall quantum of customs duty benefit, if you can call out for the entire year, and would it largely come in Q2 or will some of it come in Q3 also?

Devanshu Bansal: Got it. Sir, this quarter it was INR 400 crore of benefit. Overall quantum of customs duty benefit, if you can call out for the entire year. Would it largely come in Q2 or some of it will come in Q3 also?

Speaker #3: It will come in Q2 as well as in Q3. But I would rather refrain from giving a full year impact at this point of time.

Ashok Sonthalia: It will come in Q2 as well as in Q3. I would rather refrain from giving a full year impact at this point of time. Whenever we do, we will exactly qualify the way we have called out this time so that we can knock that. We also don't want to take credit at that because at some point of time when customs duty will go down, we will have the opposite situation. We want you to kind of all the time nullify that, and we will also do like that.

Speaker #3: Whenever we do it, we will exactly qualify it the way we have called it out this time, so that we can knock that. You know, we also don't want to take credit for that, because at some point of time, when customs duty goes down, we will have the affordable situation.

Speaker #3: So we want you to kind of all the time nullify that. And we will also go like that.

Speaker #5: Fair point, sir. And last question from my end: at the time of acquisition, in my opinion, the Dhamas' core business was not a loss-making business, right?

Devanshu Bansal: Fair point, sir. Last question from my end. At the time of acquisition, in my opinion, the Damas core business was not a loss-making business, right? Wanted to check as in reasons behind this loss in Q1. If you could sort of highlight that.

Speaker #5: So wanted to check as in, reasons behind this loss in Q1. if you could sort of highlight that?

Speaker #3: So, you know, no. Yeah, you are right. Core business was not loss-making. But given the current si-situation of war, I think purchasing jewelry in Dubai and Saudi and other countries is the last priority for anyone there, you know.

Ashok Sonthalia: Yeah, you are right. The core business was not loss-making. Given the current situation of war, I think purchasing jewelry in Dubai and Saudi and other countries will be last priority for anyone there. The footfall has fallen down, ticket size has fallen down and if a business which was operating at whatever level, 20%, 30% from base level comes down, you will end up making loss.

Speaker #3: So the footfall has fallen down, ticket size has fallen down, and if business which was operating at whatever level—20, 30 percent—from those levels comes down, we will end up making losses.

Speaker #5: Got it. So, sir, overall international business is at a ballpark run rate of about 6,000 odd crore top line. So how should we see the margin profile of this segment for this current year?

Devanshu Bansal: Got it. Sir, overall international business is at a ballpark run rate of about INR 6,000 odd crore top line. How should we see the margin profile of this segment for this current year? Should it be largely neutral at the EBIT level or we may make some profit here?

Speaker #5: It should be should it be largely neutral at the EBIT level or we may make some profit here?

Speaker #3: I would think that our rest of the portfolio of international business, except dhamas, is making profit. Mid-single-digit EBIT margin, 5, 6 percent. Which they will continue to make.

Ashok Sonthalia: I would think that our rest of the portfolio of international business except Damas is making profit, mid-single digit EBIT margin 5%, 6%, which they will continue to make. Overall Damas contribution in international business will not be very high. I would expect overall portfolio will still turn out to be positive EBIT performance for the full year. Damas is contingent upon the current situation. As soon as that situation gets over, I am sure they will also improve pretty rapidly.

Speaker #3: And overall dhamas contribution in international business will not be very high. So I would expect overall portfolio would still turn out to be positive, EBIT performance for the figure.

Speaker #3: And dhamas would—is contingent upon the current situation. As soon as that situation gets over, I'm sure they will also improve pretty rapidly.

Speaker #5: Got it, sir. thank you for taking my questions. Very clear.

Devanshu Bansal: Got it, sir. Thank you for taking my questions. Very clear.

Speaker #3: Okay.

Speaker #1: Thank you. Your next question comes from the line of Lathika Chopra with JP Morgan. Please go ahead.

Arun Narayan: Thank you. The next question comes from the line of Latika Chopra with JP Morgan. Please go ahead.

Speaker #4: Yeah. Hi team. my first question, you know, was around, you know, exchange schemes. We we do see some jewelers, you know, kind of pushing for exchange against cash kind of a scheme.

Latika Chopra: Yeah. Hi, team. My first question was around exchange schemes. We do see some jewelers kind of pushing for exchange against cash kind of a scheme. Wanted to understand what are your views on this and how is Titan approaching this?

Speaker #4: Wanted to understand, you know, what are your views on this and how is Titan approaching this?

Speaker #2: Yeah. Thank you, Lathika. We have, rolled out what we'd called as cash for gold in all our stores from the month of June. and, we are not seeing significant traction, here.

Arun Narayan: Yeah. Thank you, Latika. We have rolled out what we had called as cash for gold in all our stores from the month of June. We are not seeing significant traction here, but that option is available for customers to bring their own gold and exchange that for cash. Not exchange, but convert that into cash.

Speaker #2: But that option is available for customers to bring their old gold and exchange that for cash. Not exchange, but convert that into cash.

Speaker #3: Okay. But I think, your.

Ajoy Chawla: Okay. I think, Latika, your question is also on the economics of exchange per se, right?

Speaker #5: Lathika, your question is also on the economics of exchange per se, right? Not just the.

Latika Chopra: Yes, absolutely. Yes. Thank you.

Speaker #4: Yes. Yes. Absolutely. Yes. Thank you.

Speaker #2: Sorry, just go over your question again.

Ajoy Chawla: Sorry, just go over your question again.

Speaker #4: I was just looking for, you know, your approach for this, you know, versus some of the your peers actually aggressively pushing for this scheme.

Latika Chopra: I was just looking for your approach for this versus some of your peers actually aggressively pushing for this scheme. Just wanted to understand the economic benefit of doing so, because when you're exchanging jewelry for jewelry, it still makes sense for you to grab a new consumer. Exchanging gold for cash, what is the thought process from your perspective?

Speaker #4: So, I just wanted to understand, you know, the economic benefit of doing so. Because when you're exchanging jewelry for jewelry, it still makes sense for you to grab a new consumer.

Speaker #4: But, you know, exchanging, gold for cash, you know, what is the thought process, you know, from your perspective?

Speaker #2: No, from our perspective, it's about solving a customer problem. It's not so much about making, you know, about profiting from it. And many of these customers are our own customers, and if we widen the basket of solutions for them, it's the most responsible thing to do.

Arun Narayan: From our perspective, it's about solving a customer problem. It's not as much about profiting from it. Many of these customers are our own customers, and if we widen the basket of solutions for them, it's the most responsible thing to do. We also think that it could be a way to acquire new customers, those in need for money and have gold with them. That's the way that we are looking at it, purely as a customer solution as opposed to a revenue stream. Yeah.

Speaker #2: And we also think that it could be a way to acquire new customers, those in need for money and have gold, with them. So that's the way that we are looking at it purely as a customer solution, as opposed to, a revenue stream.

Speaker #2: So yeah.

Speaker #4: It is more it is not diluted for your margin profile or, versus exchanging gold for gold, what is the difference, you know, in terms of.

Latika Chopra: It is not diluted for your margin profile versus exchanging gold for gold. What is the difference in terms of

Speaker #2: The way that the way that the program works, there is a deduction which is there when you bring gold for exchange. and that takes care of, takes nullifies this or takes care of this.

Arun Narayan: The way that the program works, there is a deduction which is there when you bring gold for exchange, that nullifies this or takes care of this.

Speaker #4: Okay. So it's smart and neutral to that extent.

Latika Chopra: Okay. It's margin neutral to that extent.

Speaker #2: Right.

Speaker #5: Lathika, if I may add a joy here. I think at the most fundamental level, what's good for the country, what's good for the planet, what's good for the customer, we have always believed is also good for the company and the brand.

Ajoy Chawla: Latika, if I may add, Ajoy here. I think at the most fundamental level, what's good for the country, what's good for the planet, what's good for the customer, we have always believed is also good for the company and the brand. I think that's the larger piece to look at. How to ensure that the economics don't dilute our margin, those are things we as an organization have figured out how to do without making it unattractive for the customers. We wouldn't worry too much about it. In fact, we believe there is a much larger positive gains and it is not going to dilute our economics.

Speaker #5: I think that's the larger piece to look at. How to ensure that the economics don't dilute our margin? Those are things we as an organization have figured out how to do without making it unattractive for the customers.

Speaker #5: So we wouldn't worry too much about it. In fact, we believe there's a much larger positive gain and it is not going to dilute our economics.

Speaker #4: Sure. Thanks. the second bit was, you know, buyer growth of 5 percent, you know, when gold prices are stable. Is this buyer growth tracking in line with your expectations?

Latika Chopra: Sure. Thanks. The second bit was buyer growth of 5% when gold prices are stable. Is this buyer growth tracking in line with your expectations? How do you think this plays out, assuming gold stays stable for the rest of the year? The second bit connected to this margin, one clarification, this 10.9% is against 11.8% in the base quarter for Tanishq. If so, in a quarter where the studded share was broadly similar, what led to this quantum of margin moderation? Thank you so much.

Speaker #4: how do you think, you know, this plays out, assuming gold stays stable for the rest of the year? the second bit connected to just margin, one clarification.

Speaker #4: This 10.9 percent is against 11.8 in the base quarter. For TNZ and if so, in a in a quarter where the studied share was broadly similar, what led to, you know, this quantum of, margin moderation?

Speaker #4: Thank you so much.

Speaker #2: Yeah. On the buyer growth, like we like I said earlier, to the first question, we had a, you know, a good period in April and a good period in June.

Arun Narayan: Yeah. On the buyer growth, like I said earlier to the first question, we had a good period in April and a good period in June, there was a bit of sentiment that was dampened in the month of May. This is an average for the entire quarter. If gold rates stay stable, we always see that sentiments are positive and people come back and they don't sit on the fence. Whenever gold rates are volatile or if they're going only in one direction, which is downwards, then we see people tending to wait, if they don't have a urgency to buy. Stable gold rates or even if it is going up marginally, always helps him. Yeah, that's one.

Speaker #2: And there was a bit of sentiment that was dampened in the month of May. So, this is an average for the entire quarter. And, see, if gold rates stay stable, we always see that sentiments are positive and people come back, and they don't sit on the fence.

Speaker #2: But whenever gold rates are volatile or if they are going only in one direction, which is downwards, then we see people tending to wait if they don't have an urgency to buy.

Speaker #2: So, stable gold rates or even if it is going up marginally, always helps in. yeah. That's one. Second, I think, point to note is our buyer growth on the studied part of the portfolio is, you know, it's really been going up and going up since quarter four of last year.

Arun Narayan: Second, I think a point to note is our buyer growth on the studded part of the portfolio, it's really been going up and going up since Q4 of last year. That's the heartening part of the story that we would like you all also to take note of.

Speaker #2: And is in and that's the heartening part of the story that we would like you all also to take note of.

Speaker #3: And then Lathika on margin, the base quarter also we had called out a 50 basis point of run time. So actually, it becomes 11.3 versus 10.9.

Ajoy Chawla: Latika, on margin, the base quarter also we had called out a 50 basis points of one-time. Actually, it's become 11.3 versus 10.9. The factors which in the last four quarters, the gold price, in fact, we have called several times. Those have been playing to all the positives which happened in this quarter, good studded growth, et cetera. Still, eventually there is a 40 basis points erosion of GC margin.

Speaker #3: the factors which in the last four quarter the gold price in fact, we have talked several times. Those have been playing. So all the positives which happened in this quarter, good studied growth, etc., etc., but still eventually there is a 40 basis point erosion of GC market.

Speaker #2: Yes.

Speaker #4: Understood. Thanks for clarifying. Yeah.

Latika Chopra: Understood. Thanks for clarifying. Yeah.

Speaker #5: Thank you. The next question comes from the line of Nihal Mahesh Jam with HSBC. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Nihal Mahesh Jain with HSBC. Please go ahead.

Speaker #6: SI team, good evening. Am I audible?

Nihal Mahesh Jain: SI team, good evening. Am I audible?

Ajoy Chawla: Yes.

Speaker #3: Yes.

Speaker #5: Yeah.

Nihal Mahesh Jain: Yeah. Two questions. First is, on your comment on the impact in May. Just wanted to understand that, say, because of Adhik Maas, was there any demand that would have got lost or most of it got covered this quarter? Just to understand if there is any sort of circulation that could happen into Q2.

Speaker #6: Two questions. first is, on your comment on the impact in May. I just wanted to understand that, say, because of Adik Mas, was there any demand that would have got lost or most of it got covered this quarter?

Speaker #6: Just to understand if there is any sort of speculation that could happen into Q2.

Speaker #2: Yeah. No, we believe it got covered. like I said, it Adik Mas started, middle of May. And by the time we got into June, we started seeing things recover.

Arun Narayan: Yeah. No, we believe it got covered. Like I said, Adhik Maas started middle of May. By the time we got into June, we started seeing things recover. While Adhik Maas technically ended on 17 June, if I have the day right, we started seeing traction well before that. We believe that what we may have lost in May, we have gained in June. We don't see that trickling in into Q2.

Speaker #2: And whilst Adik Mas technically ended on the 17th of June, if I have the date and the day right, we started seeing traction well before that.

Speaker #2: So, we believe that, you know, what we may have lost in May, we have gained in June. We don't see that trickling into Q2.

Speaker #6: Understood that. The second question was, on the margin debt again, that, you know, if you look at it organically, there has been a slight moderation in the margin and we've obviously seen more than a 30 percent kind of an LFL growth, this quarter.

Nihal Mahesh Jain: Understood that. The second question was on the margin bit again. If you look at it organically, there has been a slight moderation in the margin. We've obviously seen more than a 30% kind of an LFL growth this quarter. Just to understand that as we move into H2, obviously it may not be practically possible on that high base to deliver that kind of margin. When we say the 11% EBIT margin, what will be the driver sort of for this to improve? Incrementally, I would believe, at least from a base impact perspective, H2 will have a slight impact in terms of circling a very high base. Just to understand, how do we plan to get to that 11% where we started off at 10.9 organics?

Speaker #6: So just to understand that, as we move into H2, obviously it may not be practically possible, on that high base, to deliver that kind of margin.

Speaker #6: so when we say the 11 percent debit margin, w what will be the driver sort of for this to improve? Because incrementally, I would believe at least from a base impact perspective, H2 will have a slight impact in terms of, you know, circling a very high base.

Speaker #6: So just to understand how do we plan to get to that 11 percent where we started off at, 10.9 organic.

Speaker #3: So, you know, we talked about, margin is arranged. We never give, you know, levy ourselves. 11 percent is kind of center of gravity where in some quarter you will find you are doing slightly better.

Arun Narayan: We talked about margin is a range. We are saying 11% is kind of center of gravity, where in some quarter, you will find we are doing slightly better, some quarter we are doing below that also. It's not a very precise point. The second thing, also, there are various things which are happening in the system. We have talked about acceptability of customer or introduction of lower karats jewelry. They generally have a positive impact on margin. Various things are being done, and as we think if gold prices stabilize and we go forward, perhaps the product mix will also improve. The whole product mix where coin used to be slightly higher, it might start coming down, which we see signs of. All of this can result into closer to that number.

Speaker #3: Some quarter we are doing below that also. So it's not a very precise point, you know. the second thing also, there are various things which are happening in the system.

Speaker #3: We have talked about acceptability of customer or introduction of, lower characters where we they generally have a positive impact on margin. So various things are being done.

Speaker #3: and as we think, if gold prices stabilize and we go forward, perhaps if the product mix will also improve. the whole product mix where coin used to be slightly higher, it might start coming down, which we see signs of.

Speaker #3: So all of this can result into closer to that number. That's our belief at this point of time. And that is how we are saying, something around that number, we are very, very hopeful we will be able to deliver on a full-year basis.

Arun Narayan: That's our belief at this point of time, that is how we are saying something around that number, we are very hopefully will be able to deliver on a similar basis.

Speaker #6: Right.

Ajoy Chawla: I'll just add to it. I think the product mix swinging upwards towards more studded sale is a very important driver, that's a focus area also for the division. The second bit I would say is, I'll elaborate, as Ashok pointed out, there are many programs we are running to enhance the gross margin given the high gold rate regime, those will start bearing fruit in the H2 of the year, more so than the H1. Thirdly, I think if gold prices remain subdued, the opportunity to be able to sell a more profitable mix with higher AMCs and even on the gold jewelry side, those drivers can also work for our benefit. There are these drivers. How they play out, of course, is a matter of what happens.

Speaker #5: I'll add, I'll just add to it, I think the product mix, swinging upwards towards more studied sale, is a very important driver. And that's, that that's a focus area also for the division.

Speaker #5: the second bit I would say is, as you know, I'll elaborate as Ashok pointed out, there are many programs we are running. To enhance the gross margin, given the high gold rate regime.

Speaker #5: And those will start bearing fruit in the second half of the year. More so than the first half. And thirdly, I think if gold prices remain subdued, the opportunity to be able to sell a more profitable mix with higher AMCs and even, you know, on, on the gold jewelry side, those those drivers can also work for our benefit.

Speaker #5: So there are these drivers. How they play out, of course, is a matter of, you know, what happens.

Speaker #6: Got it. I'll just slip in one question quickly. You know, it's been noted that with the correction in gold prices, there has been some moderation in demand in the industry.

Nihal Mahesh Jain: Got it. I'll just slip in one question quickly. That being picking up that with the correction in gold prices, that there has been some moderation in demand in the industry. Just wanted to understand, any such trends visible or none of it at our end?

Speaker #6: Just wanted to understand any such trends visible or none of it at our end?

Speaker #2: okay. The only point to add to what, you know, what we've already spoken of is, I think in the towards the end of July, perhaps, you know, we did see some softness in, on the plain gold side.

Arun Narayan: Okay. The only point to add to what we've already spoken of is, I think towards the end of July, perhaps, we did see some softness on the plain gold side. Okay. It does happen sometimes when the price is range bound. People also hear news from various sources that whales have taken hold of gold and gold is likely to go down. A lot of confusing news that people were exposed to during the month of May, and that kind of puts people back to the fence, and they tend to wait it out. We've also seen in the last two, three days that there is a upward movement. I guess once there is clarity on where it's going, perhaps those who are on the fence will come back.

Speaker #2: Okay. And it does happen sometimes when the price is range-bound or the price and, and if people also hear news from various sources, that, you know, bears have taken hold of gold and gold is likely to go down.

Speaker #2: So, there was a lot of confusing news that people were exposed to during the month of May. And that kind of puts people back on the fence, and they tend to wait it out.

Speaker #2: But we've also seen in the last two, three days that there is a upward movement. So I guess once you know, there is there is clarity on where it's going, perhaps those who are on the fence will come back.

Speaker #2: So there was a bit of softness towards the end of July, you know, which is, of course, outside the scope of Q1. But that's only bound to happen when people are wanting to time the market.

Arun Narayan: There was a bit of softness towards the end of July, which is, of course, outside the scope of Q1. That's only bound to happen when people are wanting to time the market.

Speaker #6: Thank you.

Nihal Mahesh Jain: Thank you.

Speaker #5: That's largely on account of plain gold jewelry. Studied may not be so.

Ajoy Chawla: That's largely on account of plain gold jewelry. Studded may not be so.

Speaker #2: Yeah. That's right. That's right.

Arun Narayan: Yes, that's right.

Speaker #6: Thank you so much. That was a few messages.

Nihal Mahesh Jain: Thank you so much. That was it from my side.

Speaker #5: Thank you. Your next question comes from the line of Avi Mehta with Macquarie Capital. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Avi Mehta with Macquarie Capital. Please go ahead.

Speaker #7: Hi, Dean. thanks for this. just first bit if you could help us understand what was the average buyer growth if I were to remove me, say, average of April, and June, just to get a sense on how buyer growth is actually trending in the jewelry space?

Avi Mehta: Hi, team. Thanks for this. Just first bit, if you could help us understand what was the average buyer growth if I were to remove May, say, average of April and June, just to get a sense on how buyer growth is actually trending in the jewelry space.

Speaker #2: You'd like us to remove what?

Arun Narayan: You'd like us to remove what?

Avi Mehta: You said May had these one-off factors, right? If I were to kind of look at either the exit, say June or average of April and June, just to get a sense on normalized how versus what we saw last quarter.

Speaker #7: May, if you said May had these one-off factors, right? So if I were to kind of look at either the exit, say, June, or average of, you know, April and June, just to get a sense of, on a normalized basis, where buyer growth is trending versus what we saw last quarter.

Speaker #2: No. Thanks for that question. I just want to reiterate that the normalizing happened in June. It's already happened in June. So what you see for the quarter is after that normalizing, and these one-off things are part of our industry.

Arun Narayan: No, thanks for that question. I just want to reiterate that the normalizing happened in June. It's already happened in June. What you see for the quarter is after that normalizing. These one-off things are part of our industry. There are auspicious times to buy, there are inauspicious times to buy. Like we also mentioned in the analyst meet, this is pretty much BAU, and things tend to catch up. Like I said, what we may have lost in May, it appears that we have gained in June. That averaging out or normalization has already happened. You could take the Q1 average as the normalized kind of base.

Speaker #2: I mean, there are auspicious times to buy. There are inauspicious times to buy. You know, like we also mentioned in the analyst meet, this is pretty much BAU.

Speaker #2: And things tend to catch up. So, like I said, what we may have lost in May, it appears that we have gained in June.

Speaker #2: So that averaging out or normalization is already happened. So you could take the quarter one average as the normalized kind of base.

Speaker #7: Okay. So where I was coming from is we were trying to get a sense on as gold prices, assuming gold prices remain where they are in, in this volatility doesn't continue, the assumption that I had was sales or value growth will trend towards buyer growth.

Avi Mehta: Okay. Where I was coming from is we were trying to get a sense on as gold prices, assuming gold prices remain where they are and this volatility doesn't continue, the assumption that I had was sales or value growth is trending towards buyer growth. Hence you appreciate it because from your understanding, the realization growth has some semblance of bunching up that thing that probably happened. That is where I was coming from. If that understanding itself is inaccurate or if it could help us understand how we should look at the difference between buyer growth and value growth as gold prices start to become YoY flattish or your thoughts on that.

Speaker #7: And hence to appreciate it, because the realization was from your understanding, the realization growth has some semblance of bunching up that trend that probably happened.

Speaker #7: So that is where I was coming from. And if you could kind of if, if that understanding itself is inaccurate or if you could help us understand how we should look at, the differential between buyer growth and value growth as gold prices start to, you know, become Y-Y Y flat-ish, or your thoughts on that?

Speaker #3: Avi I think it is too early to conclude. You know, one when gold prices have softened, but I think we need to give some time to customer also to make up their mind.

Ashok Sonthalia: Avi, I think it is too early to conclude. One, when gold prices have softened, I think we need to give some time to customer also to make up their mind. Our thesis is that our top-line growth is kind of combination of some of these things. When the gold prices would come down, more buyers will come in, that is why we don't focus too much as a team and as a company on these things. I think it is too early to just see June month, whether it was more than 5%. I think that granular level of month by month growth, I don't think we want to. There are regional differences in all these things, where weddings are happening. Adhik Maas is not south story, it is more north story.

Speaker #3: Our thesis is also that our top-line growth is a combination of some of these things. When the gold prices come down, more buyers will come in.

Speaker #3: And that is why we don't focus too much as a team and as a company on these things. I think it is too early to just see the June month, whether it was more than 5%. But I think that granular level of month-by-month buyer growth—I don't think we want to.

Speaker #3: And then there are, you know, regional differences in all these things. Where weddings are happening a bit massive, not South history; it is more North history.

Speaker #3: So, I think let us give it some more time to see the impact on the consumer.

Ashok Sonthalia: I think let us give it some more time to see the impact on consumer.

Speaker #7: Fair enough. If I may add, if we are looking for what we are targeting, we are targeting, as always, a double-digit aggressive growth.

Avi Mehta: Fair enough, sir.

Arun Narayan: If I may add. If you are looking for what is that we are targeting, we are targeting, as always, a double-digit aggressive growth. That's something which we shared even in the investor day. Those targets and our ambitions don't go away. How they play out between buyer, ticket size, gold price, that's for us to manage.

Speaker #7: And that's something which we shared even in the investor day. Those targets, and our ambitions don't go away. How they play out between buyer ticket size, gold price, this, that's for us to manage.

Speaker #7: Okay. Got it. Yeah. I, I, yeah, I get that. Just a second bit on the MTM gain and loss. Just if you could just remind us, what exactly drives this?

Avi Mehta: Okay, got it. I hear that. A second bit on the inventory gain and loss. If you could remind us what exactly drives this. Is it more changing mix towards exchange? If you could help explain it, if that's okay. To refresh memory.

Speaker #7: Is it more changing mix towards exchange or, you know, if you could just help explain if, if that's okay? And so just to refresh the memory.

Speaker #3: Well, you know, the this time as I was saying, there was price differences between international market and domestic market. And we procure the advanced procurement, which is based on the domestic market.

Ashok Sonthalia: This time, as I was saying, there were price differences between international market and domestic market, we advanced procurement, which is based on the domestic market. Inventory valuation happens on the international benchmark because there is no spot benchmark in India, it gives rise to accounting and issuance because inventory is being done on certain basis, reference point. Hedges are being done at a certain reference point. That difference generally is very manageable and would not be called out quarter on quarter. In current situation, when CD, custom duty impact, all of a sudden created wide gap between international and domestic, we ended up procuring quite a bit gold at that point of time. That is why we are calling this out. Every quarter, a small amount of this valuation between inventory valuation and hedge valuation happens. It is part of the A.

Speaker #3: Inventory valuation happens on the international benchmarks because there is no spot benchmark in India. And it gives rise to accounting influence because inventory is being done on a certain basis, at a certain point.

Speaker #3: Hedges are being done at a certain reference point. And that difference generally is very manageable and would not be called out quarter on quarter.

Speaker #3: But in the current situation, when the custom duty (CD) impact all of a sudden created a wide gap between international and domestic, we ended up procuring quite a bit of gold at that point of time.

Speaker #3: To so that that is why we are calling this out. Every quarter, a small amount of this variation between inventory valuation and good valuation happens.

Speaker #3: It is part of BAU. Yeah?

Speaker #7: Okay, got it. Got it, sir. That's all from my side. Thank you very much, sir.

Avi Mehta: Okay. Got it. That's all from my side. Thank you very much.

Speaker #5: Thank you. Your next question comes from the line of Kaivalya Banks with IIFL Capital. Please go ahead.

Operator 2: Thank you. Your next question comes from the line of Kaivalya Baing with IIFL Capital. Please go ahead.

Speaker #7: Yeah. Hi, sir. This is Percy from Ticketing Now. Can you hear me? Yeah. Hello.

[Analyst] (IIFL): Yeah. Hi, sir. This is Percy. Just wanted to understand, going ahead, if the gold price remains at where it is, by Q4, the YoY inflation will become zero. A large part of our growth is being driven by gold price inflation. In a scenario where gold price inflation is zero, do you think we can sort of maintain a 18% to 20% kind of top-line growth in that kind of a scenario? I'm not talking only about Q4, although the annualization happens in Q4, this is more of a general or structural kind of a query that if for a few quarters the YoY gold price inflation is zero, in that scenario, does our growth rate come down versus our targeted 18% to 20% band?

Speaker #3: Percy, can you a little, little?

Speaker #7: Yeah. Yeah. yeah. So, just, wanted to understand, going ahead, if the gold price remains as at where it is, by Q4, the Y-Y inflation will become, zero.

Speaker #7: and, large part of our growth is being driven by gold price inflation. So, in a scenario where gold price inflation is zero, do you think, we can sort of, maintain a 18 to 20 percent, kind of top line growth in that kind of a scenario?

Speaker #7: And I'm not talking only about Q4, although the, anniversarization happens in Q4. This is more of a general, or, structural kind of a query that if for a few quarters the Y-Y gold price, inflation is zero, in that scenario, does our, growth rate come down versus our targeted 18 to 20 percent band?

Speaker #2: Yeah, so I think, you know, our game plan across all our brands takes into account this context. In a scenario like that, we would certainly go all out to acquire buyers and use that to drive growth.

Arun Narayan: Yeah. I think our game plan across all our brands takes into account this context. In a scenario like that, we would certainly go all out to acquire buyers and use that to drive growth. Fundamentally, our approach to the business is an optimistic one, and it is one to drive overall growth, like Ajoy mentioned. Whenever there is turbulence or some kind of a gold rate playing in people's mind, then there is a certain playbook to give them comfort and drive growth. Whenever that goes out of the equation and there is more stability, then obviously what we would do would be to acquire customers and overall grow the business. We will have to see how things play out and closer to that situation, then we choose the cards that we have to play. What you're saying is true.

Speaker #2: Because fundamentally, our approach to the business is an optimistic one, and it is one to drive overall growth, like Ajoy mentioned. So whenever there is turbulence or some kind of a, you know, gold rate playing in people's minds, then there is a certain playbook to give them comfort and drive growth.

Speaker #2: Whenever that goes out of the equation and there is more stability, then obviously what we would do would be to gain, you know, acquire customers and overall grow the business.

Speaker #2: So we will have to see how things play out and closer to that situation, then you know, we choose the cards that we have to play.

Speaker #2: But what you're saying is, is true. It could play out that way. But we'll have to wait and see.

Arun Narayan: It could play out that way, but we'll have to wait and see.

Speaker #7: Understood. A related query to this is, again, in that kind of a gold price scenario, do you see the quantum of competitive spending, either in terms of advertisements or in terms of discounts and promotions, sort of normalizing?

[Analyst] (IIFL): Understood. A related query to this is, again, in that kind of a gold price scenario, do you see the quantum of competitive spending, either in terms of advertisements or in terms of discounts, promotions sort of normalizing? In context of that, do you expect the headwind on your margins to maybe turn into a tailwind and you could see even with a slightly lower its growth being able to deliver that 18% to 20% bottom line growth?

Speaker #7: And in context of that, do you expect, sort of the, headwind on your margins to sort of maybe turn into a tailwind and you could see even with a slightly lower growth being able to deliver that 18 to 20 percent bottom line growth?

Speaker #2: To be honest, if you go back over the last two or three years, we have seen all kinds of scenarios. Now, we pretty much have a playbook for all of them.

Arun Narayan: Honestly, now if you go back last two, three years, we have seen all kinds of scenarios, now to pretty much have a playbook for all of them. In a scenario when competitive intensity is at its peak, people are discounting like crazy, or a time when gold rates are stable or it's going up, it's going down. By now, we think we have a handle. You are right, some new situation could emerge, and we might end up learning from it. By and large, we think we have at least some plans or some experiences that can help us when these situations kind of come up.

Speaker #2: You know, scenario when competitive intensity is at its peak, people are discounting like crazy, or a time when gold rates are stable, or it's going up, it's going down.

Speaker #2: So by now, we think we have a handle. You're right. Some new situation could emerge, and we might end up learning from it. But by and large, we think we have at least some you know, plans or some experiences that can help us when these situations kind of come up.

Speaker #3: It's just one point I can add, Arun, that if you remember in our analyst day, we guided FY30 numbers. So quarter on quarter, numbers can go up because some of the situations you may not react immediately, but overall, medium to long term, we have always said that a good, strong double-digit growth.

Ajoy Chawla: If just one point I can add, Arun, that if you remember in our analyst day, we guided FY30 numbers. Quarter on quarter numbers can go up because some of the situations we may not react immediately. Overall, medium to long term, we have always said that a good, strong double-digit growth, and that is how you would reach to that FY30 number. That has not changed at all in our mind, and we don't have any doubt at this point of time that we are not marching towards that. Over the last several quarters, because of the gold price inflation, the entire industry has done a lot of work in terms of making the jewelry lighter weight.

Speaker #3: And that is how you will reach that FY30 number. So, that has not changed at all in our mind, and we don't have any doubt at this point of time that we are not marching towards that.

Speaker #7: And over the last, several quarters, because of the gold price inflation, the entire industry has done a lot of work in terms of meeting the jewelry lighter weight, versus earlier if a piece has the same look and, feel or design, etc., making the same kind of, piece or similar kind of piece the gold price remains flat for a longer period of time, do you think that could be one of the lever in terms of gradually increasing, or reverting back to the or, at least increasing slightly the weight, per piece?

[Analyst] (IIFL): Versus earlier, if a piece has the same look and feel or design, et cetera, making the same kind of piece or similar kind of piece lighter in weight. If the gold price remains flat for a longer period of time, do you think that could be one of the lever in terms of gradually increasing or reverting back to the or at least increasing slightly the weight per piece? Doing the reverse of what we did over the last two to three years.

Speaker #7: I mean, doing the reverse of what we did over the last two to three years.

Speaker #2: See, like Ajoy said, sometime back, our approach always has been you know, to solve versus to merely sell. And, you know, we, we need to do things as an industry and also as a company to bring more consumers in the category, keep them you know, invested in the category.

Arun Narayan: Like Ajoy said some time back, our approach always has been to solve versus to merely sell. We need to do things as an industry and also as a company to bring more consumers in the category, keep them invested in the category, and for that, jewelry has to be both exciting and accessible. Accessibility comes from keeping it lightweight, looking at a variety of caratages, looking at an exchange program that is strong to get them to recycle. All these are different levers that we are using to keep jewelry accessible to a wide set of consumers across the different town classes that we are present in.

Speaker #2: And for that, jewelry has to be both exciting and accessible. And accessibility comes from keeping it lightweight, looking at a variety of carriages, looking at an exchange program that is strong to get them to, recycle.

Speaker #2: So all these are different levers that we are using to keep consumers you know, to keep jewelry accessible to a wide set of consumers across, the different town classes that we are present in.

Speaker #7: Okay. Got it. Thank you very much, Arnold.

[Analyst] (IIFL): Okay, got it. Thank you very much.

Speaker #2: Yeah. If I may just step in once again, I think the concerns that are trending across several questions across different people is if gold prices don't go up or they remain down, can you guys manage to grow?

Arun Narayan: Yeah, if I may just step in once again. I think the concerns that are trending across several questions across different people is if gold prices don't go up or they remain down, can you guys manage to grow? Okay. Therefore, it's between buyers, ticket size. See, these are not two independent entities which kind of move on their own. These are related. Few years back and a few quarters back, I had heard enough questions of people asking me, All right, gold prices have gone so much. How are you going to continue to grow? Now, the question is, if gold prices don't go up, how will you grow? I think we have seen buyer growth actually taper down in the last couple of years because gold prices went up dramatically. Why can't the reverse happen? Because India's love for gold has not gone away.

Speaker #2: Okay. And therefore, it's between buyers, ticket size. See, these are not two independent entities which kind of move on their own. These are related.

Speaker #2: A few years back and a few quarters back, I had heard enough questions of people asking me, "Are gold prices have gone so much?

Speaker #2: How are you going to continue to grow?" Now the question is if gold prices don't go up, how will you grow? So I think we have seen buyer growth actually taper down in the last couple of years because gold prices went up dramatically.

Speaker #2: Why can't the reverse happen? Because India's love for gold has not gone away. At the same time, India's growth story is not going away.

Arun Narayan: At the same time, India's growth story is not going away. I think if you were to step back a little bit and look a few years ahead and just not get worried about a particular month-on-month situation on gold price, I believe the headroom is huge, not just for the overall industry, but certainly for us as a company, because our market share is also still single digit. For us to target a healthy double-digit growth in jewelry is inevitable. How it plays out in a particular month and quarter might vary a little bit, but I'm very bullish on that. Margins, I think, will follow if we are able to manage the execution there.

Speaker #2: So I think if you were to step back a little bit and look a few years ahead in the, you know, not get worried about a particular month-on-month situation on gold price, I believe the headroom is huge.

Speaker #2: Not just for the overall industry, but certainly for us as a company because our market share is also still single digit. So for us to target a healthy double-digit growth in jewelry is inevitable.

Speaker #2: How it plays out in a particular month and quarter might vary a little bit, but I'm very bullish on that. And margins, I think, will follow if we are able to manage the execution there.

Speaker #7: Got it. Got it, sir. Thank you very much.

[Analyst] (IIFL): Got it, sir. Thank you very much.

Speaker #1: Thank you. The next question comes from the line of Jayadoshi with Kotak. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Jay Doshi with Kotak. Please go ahead.

Speaker #7: Sure. Hi. Thanks a lot. Hi. congratulations on good execution in our challenging environment. I've got, couple of questions. First one is, you know, could you comment a little bit on competitive intensity?

Jay Doshi: Sure. Hi, thanks a lot. Hi. Congratulations on good execution in a challenging environment. I've got a couple of questions. First one is, could you comment a little bit on competitive intensity? The last two, three years in a rising gold price environment, there were quite a few discounts by other players on making charges and all. Now with gold price stabilizing, are you seeing that the competitive pressure on making charges, gold rate, markup, all that has eased a little bit? That's my first question. Second question is, recently I was visiting some stores and I observed that Indria was advertising 50% discount on diamond value. Then my sort of personal experience by visiting Tanishq store in the ongoing Festival of Diamonds indicates that even your discount on diamond value this time around is a little bit higher than what it usually is in FoD.

Speaker #7: Because, you know, the last two, three years, you know, rising gold price environment, you know, there were, you know, quite a few discounts by other players on meeting charges and all.

Speaker #7: Now, with gold prices stabilizing, are you seeing that the competitive pressure on making charges, gold rate markups, all that has eased a little bit?

Speaker #7: that's my first question. And second question is, recently, you know, I was visiting some stores and I observed that Indria had was advertising 50% discount on diamond value and then, you know, my sort of personal experience, you know, visiting Tanish store in, the ongoing festival of diamond indicates that even your discounts on diamond value this time around is a little bit higher than what, you know, it usually is in FOD.

Speaker #7: So is this because you are currently consuming low-cost, low-price natural diamond inventory and so you are better positioned to sort of offer better value through discounts?

Jay Doshi: Is this because you are currently consuming low cost, low price natural diamond inventory, you are better positioned to sort of offer better value through discounts? Or is the market more competitive on studded jewelry at this point of time, which is forcing you to probably offer slightly higher discounts in this FoD versus last year?

Speaker #7: Or is the market more competitive on standard jewelry at this point of time, which is forcing you to probably offer slightly higher discounts in this FOD versus last year?

Speaker #2: Okay. So I-I'll start from reverse order. So the FOD offer we have this time is a flat 20% off on diamond value. Pretty much the same as the last one of, the months of Jan, Feb.

Arun Narayan: Okay. I'll start from reverse order. The FoD offer we have this time is a flat 20% off on diamond value. Pretty much the same as the last one of the months of Jan, Feb. We may have some products which may be aged, maybe we'll be offering a higher discount, but by and large, the structure of the offer is not changed in any manner. As far as competitive intensity goes, we are all aware of number of brands, number of stores, number of players that are increasing in the category, obviously that brings a certain competitive intensity to bear. The discounting is something that keeps happening, which is different in different markets based on the context of that market and also the segment. I'll actually request Shaman to come in here.

Speaker #2: We may have some products which, maybe, due to age, or maybe offering a higher discount, but by and large, the structure of the offer has not changed.

Speaker #2: In any manner. As far as competitive intensity goes, I mean, we are all aware of the number of brands, the number of stores, and the number of players that are increasing in the category.

Speaker #2: And obviously, that brings a certain competitive intensity to bear. And discounting is something that keeps happening, which is different in different markets based on the context of that market and also the segment.

Speaker #2: I mean, I'll actually request Shawman to come in here. You know, because if you were to no, because it's a yeah.

Speaker #7: Thank you. Like Arun said, we also pretty much have a similar offer—the offer that we ran, it was run in the past. And especially after the announcement and the subsequent impact that happened, we quickly responded, came up with an offer which seemed attractive for customers.

[Company Representative] (Titan Company): Like Arun said, we also pretty much have the similar offer. The offer that we ran, it was run in the past, and especially after the announcement and subsequently that happened. We quickly responded, came up with an offer which seemed like attractive for customers. In fact, May second half and June has been kind of a record performance that we saw. We could buck the impression that the initial one week had, because we could respond to the situation better. In terms of overall discount, I don't think there's any significant structural change.

Speaker #7: In fact, May second half and June have been kind of a record kind of a performance that we saw. So we could buck the, impression that the initial one week had because we could, respond to the situation better.

Speaker #7: but in terms of overall discount, I don't think there is any significant structural change. sure. Thank you. Sorry. did you answer the question on, you know, making charges for the plain gold jewelry?

Jay Doshi: Sure. Thank you. Sorry, did you answer the question on making charges for the plain gold jewelry? How is the competitive intensity there?

Speaker #7: how is the competitive intensity there?

Speaker #2: no. We are I mean, we don't see a substantial increase in competitive intensity. As you are aware, it's only been going up over the two to three years.

Arun Narayan: No. We don't see a substantial increase in competitive intensity. As you are aware, it's only been going up over the two to three years.

Speaker #7: Sorry. Sir, my question was whether you're seeing easing of competitive intensity in plain gold jewelry given that gold prices have stabilized in your okay.

Jay Doshi: Sorry. Sir, my question was whether you're seeing easing of competitive intensity in plain gold jewelry given that.

Arun Narayan: No.

Jay Doshi: Gold prices are stabilizing your. Okay. No changes there.

Speaker #7: So no changes there.

Speaker #2: We're not seeing any easing up of competitive intensity. We are seeing it, more of the same. Obviously, the intensity in certain geographies is much higher and has been much higher in the last two to three years.

Arun Narayan: We're not seeing any easing up of competitive intensity. We are seeing it more of the same. Obviously, the intensity in certain geographies is much higher and has been much higher in the last two to three years, for example, in Gujarat. Right? There are regional dispersions which are there, but nothing specifically to call out at either ends. Either it's gone up significantly or it's come down significantly.

Speaker #2: For example, in Gujarat, right? So, there are regional dispersions, which are there, but nothing specific to call out at either end—either that it's gone up significantly or come down significantly.

Speaker #7: Understood. Thank you so much, sir.

Jay Doshi: Understood. Thank you so much, sir.

Speaker #1: Thank you. Your next question comes from the line of Harith Kapoor with Investech. Please go ahead.

Operator 2: Thank you. Your next question comes from the line of Harit Kapoor with Investec. Please go ahead.

Speaker #7: Yeah. Hi. Good evening. so first question is on exchange. So, if you could just give a bro-broad breakup of, of how much exchange share in procurement has gone up, this quarter, I would assume it would have peaked in this quarter because of the situation.

Harit Kapoor: Good evening. First question is on exchange. If you could just give a broad breakup of how much exchange share in procurement has gone up this quarter. I would assume it would have peaked in this quarter because of the situation. Just some sense versus Q1 last year, and have you seen some basis points impact on margin on account of that as well? That's my first question.

Speaker #7: So just some sense, versus Q1 last year. And, and, and, and have you seen, you know, some basis points impact on margin on account of that as well?

Speaker #7: That's my first question.

Speaker #2: Okay. So specifically on exchange, I think it's been a creeping increase, you know, from the time that we've been investing significantly behind exchange since I think September, of last year.

Arun Narayan: Okay. Specifically on exchange, I think it's been a creeping increase from the time that we've been investing significantly behind exchange, since I think September of last year. Post the PM's callout when we went into a bit of an overdrive on our exchange communication, and we also saw other jewelers jump onto that bandwagon. We did see an upswing for that period of about three weeks, then it has again got normalized since then. Exchange continues to be a big driver of customer acquisition and a big driver of growth for us. Like we have said in the past, the sale that comes from exchange, both the exchange of old gold bought elsewhere and the gold bought at Tanishq exceeds 50% of the business. That's a trend that is sustaining. Yes, you're right.

Speaker #2: but, during you know, when the, post the PM's callout when we went into a bit of an overdrive on our exchange communication and we also saw other jewelers jump onto that bandwagon.

Speaker #2: We did see, an upswing for that period of about three weeks, but then it is again got, normalized since then. So exchange continues to be a big driver of customer acquisition and a big driver of growth for us.

Speaker #2: And like we have said in the past, the sale that comes from exchange, both the exchange of old gold bought elsewhere and the, gold bought at Tanish exceeds 50%, you know, of our, of the business.

Speaker #2: So that, that's a trend that is sustaining. But yes, you're right. When everyone went onto an overdrive during those three weeks in May, the share did, go up.

Arun Narayan: When everyone went on to an overdrive during those three weeks in May, the share did go up, thereafter, I would say it is pretty much normalized.

Speaker #2: But thereafter, I would say it is pretty much normalized.

Speaker #7: Got it. So, that could have a slight marginal basis point sequential improvement over the next three quarters, right? Given that May might have been a slightly low gross margin for you, just because of the nature of procurement.

Harit Kapoor: Got it. That could have a slight marginal basis point sequential improvement over the next three quarters, right? Given that May might have been slightly low gross margin for you just because of the nature of procurement. Is that the right way to think about it?

Speaker #7: Is, is that the right way to think about it?

Speaker #2: No, I, I don't think you should read anything specific into that. I would urge if you all not to, read anything specific into that.

Arun Narayan: No, I don't think you should read anything specific into that. I would urge you all not to read anything specific into that.

Speaker #7: Got it. Got it. And, and the second, you know, question was on the two subsidiaries, Teal and Carrot Lane. Now, you did give some, you know, estimates for the four-year period, but, you know, the start of that four-year period, especially on margins on both Teal and Carrot Lane, have been you know, significantly, you know, significant.

Harit Kapoor: Got it. The second question was on the two subsidiaries, TEAL and CaratLane. You did give some estimates for the four-year period. The start of that four-year period, especially your margins on both TEAL and CaratLane have been significant. Just wanted to get your sense of, is TEAL a more kind of revenue booking situation led margin improvement and even for CaratLane, are these numbers surprising you on the operating leverage that you're getting?

Speaker #7: so just wanted to, you know, get your sense of, you know, i-is, is Teal a more kind of, you know, revenue-booking, you know, situation-led, you know, margin improvement and, and, and even for Carrot Lane, I mean, are these numbers surprising you and the operating leverage that you're getting?

Speaker #7: So on Teal, as you first answered, Teal still remains a project kind of business, you know. And with that, certain lumpiness does come with the margin, and in this quarter, we did a lot of, I would say, in a way, servicing business of certain set of equipment which we call ring fitting or retrofitting.

Ashok Sonthalia: On TEAL, I will first answer. TEAL still remains a project kind of business. Where certain lumpiness do come with the margin. In this quarter we did lot of, I would say, the servicing business of certain set of equipment which we call refitting or retrofitting, where they are in the nature of service, where your engineers only work and you get. That was quite substantial. Overall, long-term growth still is on a very strong wicket, but the normalized margin would be gradually gravitating towards 12% to 16%. This year, full year basis, they can be higher. The trend I see, if you look to long term, you see that kind of business they will deliver. As far as CaratLane is concerned, we have always said that they will gradually go towards double-digit EBIT margins, more like Tanishq kind of margin there. It's portfolio.

Speaker #7: Where, you know, they are in the nature of service where you are engineers only work and you get. So that was quite substantial. overall, long-term, growth, Teal is on a very strong wicket.

Speaker #7: But the normalized margin would be, you know, gradually gravitating towards 12 to 15 percent, 16 percent. This year, on a full-year basis, they can be higher, but that's the trend I see. If, mid to long-term, you see that kind of business.

Speaker #7: they will deliver. As far as Carrot Lane is concerned, we have always said that they will gradually go towards double-digit EBIT margin, more like Tanisk kind of margin.

Speaker #7: Portfolio. It has gone out. it's there. Okay. So, so they have delivered 9.6. I think some, something like that, 9% upward. So we are normal trajectory should be towards 10%.

Ashok Sonthalia: It has gone out. It's there. Okay. They have delivered 9.6%, I think something like that, 9% forward. Their normal trajectory should be towards 10%. Quarter-to-quarter differences can be there, but they should eventually become very stabilized around that number, to my mind. In the long term, even depending on how the jewelry industry gold price dynamics work out, they can either progress towards 11% or stay around that number. It's very difficult to talk about so much into future, but we have always thought that CaratLane should trend towards double-digit EBIT margin.

Speaker #7: Again, quarter to quarter differences can be there, but they should eventually become very stabilized around that number to my mind. And in the long-term, even depending on how the jewelry industry gold price dynamics work out, they can either progress towards 11% or stay around that number.

Speaker #7: But, but, you know, it's very difficult to talk about so much into future, but we have always talked that Carrot Lane should choose towards double-digit EBIT margin.

Arun Narayan: Yeah, I wanted to also add, both these subsidiaries are still on a significant growth path. Okay? The opportunity to grow is significant and substantial, and we will continue to prioritize top-line growth in both of them. Therefore, margins will kind of play out the way they have to play out. Therefore, I would read more in the growth story rather than on the margin story.

Speaker #7: Yeah. I wanted to also add, see, both the subsidiaries are still on a significant growth path. Okay. And the opportunity to grow is significant and substantial.

Speaker #7: And we will continue to prioritize top-line growth in both of them. Therefore, margins will kind of play out the way they have to play out.

Speaker #7: And, therefore, I would read more on the growth story rather than on the margin story. Very good. Very good. I wish you all the best.

Ashok Sonthalia: Very clear. Wish you all the best. Thank you.

Speaker #7: Thank you.

Speaker #1: Thank you. The next question comes from the line of Ashish Kanodia with City. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Ashish Kanodia with Citi. Please go ahead.

Speaker #8: yeah. Thank you, sir. First question was, you know, given, the volatility in gold price, what has been the trend for a new sign-ups for both golden harvest team and, river golden advantage in the last, five, six months?

Ashish Kanodia: Yeah. Thank you, sir. First question was, given the volatility in gold price, what has been the trend for new sign-ups for both Golden Harvest scheme and Rivaah Golden Advantage in the last five, six months? Are they broadly tracking in line with the kind of jewelry growth you are seeing?

Speaker #8: Are they broadly tracking in line with the kind of jewelry growth you are seeing?

Speaker #2: Yeah, thanks for that question. I think, you know, on a value basis, we are tracking. But I would say that we started with the Golden Harvest program many years back.

Arun Narayan: Thanks for that question. I think on a value basis, we are tracking. I would say that we started with the Golden Harvest program many years back. Then 2, 3 years back, we added Golden Advantage. What's really happening is the dynamic between the two, where we are seeing most customers prefer Rivaah Golden Advantage because it helps in the rupee cost averaging. We are seeing a shift of preference from Golden Harvest to Rivaah Golden Advantage, which in a sense is good for the customer and was also introduced to solve the problem of gold rates being either increasing or kind of moving up and down. That's really the dynamic that is playing out there.

Speaker #2: Then, two, three years back, we added golden advantage. What's really, happening is the dynamic between the two, where we are seeing most customers prefer river golden advantage because it helps you know, in the rupee cost averaging, and we are seeing, we're re seeing a shift of preference from golden harvest to river golden advantage, which in a sense is good for the customer and was also introduced to solve the problem of, gold rates being either increasing or kind of moving up and down.

Speaker #2: So that's that's really the dynamic that, is playing out there. But on the whole, I think it's, it's progressing in line with the business on a value basis in terms of, the growth and redemption of, both these programs versus the growth in business.

Arun Narayan: On the whole, I think it's progressing in line with the business on a value basis in terms of the growth in redemption of both these programs versus the growth in business.

Speaker #8: sure. the second question was, o-on just on the, you know, the way we have seen, one Q and even if you look at four Q, I think, one Q definitely saw a moderation in, coins growth and, when you look at plain gold and both studied, the growth was still, in line with what was in four Q despite, volatile gold price and, you know, May, June, adequates, et cetera.

Ashish Kanodia: Sure. The second question was just on the way we have seen Q1, even if you look at Q4, I think Q1 definitely saw a moderation in coins growth. When you look at plain gold and both studded, the growth was still in line with what was in Q4, despite a volatile gold price and May, June, et cetera. To that extent, maybe the gold price has been on a downward trajectory. Are you seeing that gold coin demand is actually now losing more traction while it may still be growing faster than the jewelry growth, but losing traction versus what it was doing 2, 3 quarters back? To that extent, it should ideally help with slightly better mix and margins?

Speaker #8: And, to that extent, you know, are you seeing more, you know, because—and given, you know, maybe the gold price has been on a downward trajectory—so, are you seeing that gold coin demand is actually now losing more traction?

Speaker #8: Why is it may still be growing faster than the jewelry growth, but losing traction versus what it was doing two, three quarters back? And to that extent, it should ideally help with a slightly better mix and margins.

Speaker #7: That is what we expect, but, you see, gold price concluding that it is on a downward trajectory will be too premature to my mind.

Ashok Sonthalia: That is what we expect. You see gold price concluding that it is on a downward trajectory will be too premature to my mind. Last 2, 3 days, if anything is to be seen. Again, they have started inching up. If geopolitics normalize, I would believe gold prices can again go up for some time being. To your point, the kind of growth YoY coin was showing, it should start moderating from here.

Speaker #7: Last two, three days, if anything, is to be seen. Again, they have started in Chindap. This geopolitics normalize. I would believe gold prices can again go up for time being.

Speaker #7: But two, two, two third point, yeah, the kind of growth YOY coin was showing, it should start moderating. From here.

Speaker #8: Sure. And just last bit, I think, Ajay talked about the gross margin expansion initiative and over the last few years. You know, on the margins, you had, taken various initiative, war on base, and then, you know, working on alloy.

Ashish Kanodia: Sure. Just last bit, I think Ajoy talked about gross margin expansion initiative, and over the last few years-

Ashish Kanodia: On the margins, you had taken various initiative, war on waste, and then working on alloy. Anything which you'd like to share on the gross margin expansion, like what initiatives we are taking?

Speaker #8: So, is there anything you would like to share on the gross margin expansion—like what initiatives we are taking?

Speaker #7: No, I don't think we are going into that much detail, but suffice to say whatever has been spoken about lower tariffs, very reducing max program, there are sourcing strategies, et cetera.

Ashok Sonthalia: No, I don't think we are going into that much detail. Suffice to say, whatever had been spoken about lower carats, there is a GC Max program. There are sourcing strategies et cetera. It's a mix of various things. We certainly don't want to give more detail on this.

Speaker #7: It's a mix of various things. We certainly don't want to give more detail on this.

Ashish Kanodia: Sure. Just last bit on the natural diamond prices, at least on the retail part in India, what has been the trend? Is it more stable both for smaller stones and as well as for solitaires? Are they stabilized in the last six months?

Speaker #8: sure, sure. And just last bit on the natural diamond prices, at least, on the retail, p-part in India, what has been the trend? Is it more stable both for smaller stones and as well as for, solitaires?

Speaker #8: Are they stabilized in the last, six months?

Speaker #7: Natural diamond prices. Pricing, pricing and are yeah, we have seen more stability perhaps in the pricing. Both of solitaires as well as, small diamonds.

Ashok Sonthalia: Natural diamond prices.

Arun Narayan: Pricing.

Ashok Sonthalia: Pricing and.

Arun Narayan: Yeah, we have seen more stability perhaps in the pricing, both of solitaires as well as small diamonds.

Speaker #7: Was that the question, or, did I miss answering?

Ajoy Chawla: Was that the question, or did I miss answering?

Speaker #8: no, yeah. My, my question was on the on the retail part, not more from sourcing, but at least at the retail and at the consumer end, consumer end.

Ashish Kanodia: My question was on the retail part. Not more from sourcing, but at least at the retail end, at the consumer end.

Ajoy Chawla: Retail also, our prices are stable. Yeah, for both.

Speaker #7: It is, it is also. We have been we have, prices are stable. yeah, for both.

Speaker #8: Sure.

Ashish Kanodia: Sure.

Speaker #7: I think maybe the intent of your question could be how is that playing out vis-à-vis the lab-grown diamond and how is the narrative playing out in the mind of the customer?

Ajoy Chawla: I think maybe the intent of your question could be how is that playing out vis-a-vis the lab-grown diamond, and how is the narrative playing out in the mind of the customer? I think at the market level, it has stabilized, and that narrative which was very prominent towards lab-grown and natural are going on, that narrative seems to have gone down substantially. I think both exist in the market. Maybe that's the sentiment behind your question I was picking up.

Speaker #7: I think at the market level, it has stabilized. And that narrative which was very prominent towards lab-grown and natural are going on, that narrative seems to have gone down substantially.

Speaker #7: And I think both exist in the market. Maybe that's the sentiment behind your question that I was picking up.

Speaker #8: Yes. I because studied, we have seen improving, so tha-that's helpful. Yeah. Thank you.

Ashish Kanodia: Yes, because studded we have seen improving, that's helpful. Yeah. Thank you.

Speaker #7: Yeah. Pricing is stable, and sen narrative and sentiment is also stable.

Ajoy Chawla: Yeah. Pricing is stable, narrative and sentiment is also stable.

Speaker #8: Sure. Sure. Thank you.

Ashish Kanodia: Sure.

Speaker #1: Thank you. Ladies and gentlemen, we will take this as our last question for today. I now have the conference over to Mr. Chawla for closing comments.

Operator 2: Thank you. Ladies and gentlemen, we will take this as our last question for today. I now hand the conference over to Mr. Chawla for closing comments.

Speaker #2: Yeah. Thanks. interesting set of questions that, keep us on our toes and thinking of our feet, literally. just wanted to end at a very broad level some comments, I think all are brands and businesses when you look at jewelry, watches, you look at our subsidiaries, look at Carit Lane, look at Teal, look at, fragrances and bags, pretty much all our businesses have done well.

Ajoy Chawla: Yeah, thanks. Interesting set of questions that keep us on our toes and thinking of our feet literally. Just wanted to end at a very broad level some comments. I think all our brands and businesses, when you look at jewelry, watches, you look at our subsidiaries, look at CaratLane, look at TEAL, look at fragrances and bags. Pretty much all our businesses have done well. The growth, what we have seen in Q1, we are also seeing that July also is not bad. I'm seeing a certain positivity so far in the last four months. How things play out in the near future, of course, will depend on so many other forces.

Speaker #2: And the growth, what we have seen in Q1, and we are also seeing that July also is not bad, you know. So I’m seeing a certain positivity so far in the last four months. How things play out in the near future, of course, will depend on so many other forces.

Speaker #2: We think we are on trajectory for delivering the kind of growths that we have promised in the investor day. And we hope that we can, in fact, better it in the current year because we've started very well.

Ajoy Chawla: We think we are on trajectory for delivering the kind of growth that we had promised in the investor day, we hope that we can in fact better it in the current year because we've started very well. Second comment I want to make is there was a lot of questions on the dynamic between buyers, gold price, and all of that. I think overall, I'm just reiterating, we are committed to a double-digit healthy growth in value in the jewelry business, because that's the only way we'll get to our committed FY30 goals that we've set. In a particular quarter or in two quarters, we might maybe be looking like a power play where we hit the ball out of the park. It's not just us. The market also has done very well. I wouldn't get too carried away by that.

Speaker #2: Second comment I want to make is, there were a lot of questions on the dynamic between buyers, gold, gold price, and all of that.

Speaker #2: I think, overall, we are committed to—and this is reiterating—we are committed to a double-digit, healthy growth in value in the jewelry business.

Speaker #2: So that's the only way we'll get to our committed FY30 goals that we've set. In a particular quarter, or in two quarters, it may be looking like a power play where we've hit the ball out of the park, but it's not just us.

Speaker #2: The market also has done very well. I wouldn't get too carried away by that. Neither will I get too carried away by a particular quarter if, you know, there is some volatility and some fluctuation in the market due to external forces or gold price.

Ajoy Chawla: Neither will I get too carried away by a particular quarter if there is some volatility and some fluctuation in the market due to external forces or gold price. I think the larger piece I would like to maybe direct all of us towards is that the headroom for growth for all our businesses is very high. Partly because of the tailwinds of formalization, partly to a large extent because of India growth story, middle India, multiple segments, portfolio play, and all of those. This is true for jewelry, this is true for eye care, this is true for watches, this is true for fragrances, bags, sarees, all of them. We have both headroom for market share gain as well as India doing very well, many segments coming into the consumption basket and the premiumization story. All the five, six, seven forces that we talked about when we met.

Speaker #2: I think the larger piece I would like to, maybe, you know, direct all of us towards is that the headroom for growth for all our businesses is very high.

Speaker #2: Partly because of the tailwinds of formalization, partly to a large extent because of India growth story, middle India, multiple segments portfolio play, and all of those.

Speaker #2: And this is true for jewelry. This is true for eye care. This is true for watches. This is true for true for fragrances, bags, sarees, all of them.

Speaker #2: We have both headroom for market share gain, as well as India doing very well, with many segments coming into the consumption basket, and the premiumization story.

Speaker #2: All the five, six, seven forces that we talked about, when we met. Specifically on jewelry, I would reiterate that our growth drivers on gaining market share through regionalization, through high-value study, through retail transformation, through brand differentiation, through portfolio play, and through core growth, in, in both studied and gold in the sub-50, sub-1 lakh kind of price points through buyer growth.

Ajoy Chawla: Specifically on jewelry, I would reiterate there are growth drivers on gaining market share through regionalization, through high-value studded, through retail transformation, through brand differentiation, through portfolio play, and through core growth, in both studded and gold in the sub 50s, sub INR 1 lakh kind of price points through buyer growth. All those growth levers continue to hold good, we stay focused on the long-term strategy and value creation while taking in our stride some positives that we might have received in a couple of quarters and building on them rather than getting worried about whether we can deliver the same levels of growth. Just wanted to kind of direct everybody's attention to a larger story and not maybe getting too carried away by one quarter or the other. Margins will play out the way we have spoken. If we are lucky, we can do even better.

Speaker #2: All those growth levers continue to hold good, and we stay focused on the long-term strategy and value creation. While taking in our stride some positives that we might have received in a couple of quarters, we are building on them rather than getting worried about whether we can deliver the same levels of growth.

Speaker #2: So, I just wanted to kind of direct everybody's attention to the larger story and not maybe get too carried away by one quarter or the other.

Speaker #2: Margins will play out the way we have spoken. If we are lucky, we can do even better. But thank you so much for all your questions and, look forward to catching up with you once again next quarter.

Ajoy Chawla: Thank you so much for all your questions, look forward to catching up with you once again next quarter. Bye.

Speaker #2: Bye.

Speaker #8: Thank you.

Ashish Kanodia: Thank you.

Speaker #1: Thank you, members of the management. On behalf of Titan Company Limited, that concludes this conference. Thank you, everyone, for joining us, and you may now disconnect your lines.

Operator 2: Thank you, members of the management. On behalf of Titan Company Limited, that concludes this conference. Thank you everyone for joining us. You may now disconnect your lines. Thank you.

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