RBZ Jewellers Limited Conference Call Summary (May 22, 2024)
Financial Performance
• Q4 and FY24 Results:
• Revenue increased from INR 78 crores to INR 86 crores.
• Profit Before Tax (PBT) declined from INR 640 lakhs to INR 423 lakhs.
• Profit After Tax (PAT) decreased from INR 487 lakhs to INR 269 lakhs.
• Gross Profit Margins:
• Decline attributed to higher gold procurement costs and delays due to fluctuating prices, especially around Akshay Tritiya.
Future Projections
• Growth Outlook:
• Projected top line of INR 600 crores.
• Volume growth target of 1500 kg.
• Management's Optimism:
• Acknowledgment of pricing fluctuations' impact on profitability.
• Discussion of hedging strategies to mitigate risks.
Pricing Fluctuations and Hedging Strategies
• Inventory Management:
• Use of weighted average principle for inventory valuation.
• Direct hedging of gold quantities rather than against currency.
• Software Transition:
• Moving to SAP software for better tracking and batch valuation of gold purchases.
Normalized Profit Insights
• Excluding One-off Impacts:
• Estimated normalized profit around INR 23-24 crores.
• Sales increase noted, but affected by delayed festival.
Expansion Plans
• New Factory:
• Plans to establish a new factory with five times current capacity.
• Current production capacity deemed sufficient.
• Production Recovery:
• Anticipation of strong recovery in production in upcoming quarters despite previous year's shortfall.
Conclusion
• Management reaffirmed commitment to business operations and future growth strategies.

RBZ Jewellers Limited Earnings Conference Call Summary
Financial Performance Highlights
• Date of Call: February 21, 2024
• Revenue Growth: Increased from ₹92.60 crore to ₹115 crore year-over-year.
• Profit Before Tax: Rose to ₹9.14 crore from ₹7.88 crore.
• Profit After Tax: Increased to ₹6.81 crore from ₹5.94 crore.
Future Growth Plans
• Retail and Wholesale Expansion:
• Targeting volume increase from 1,059 kg to 1,200 kg.
• Existing showroom revenue potential estimated at ₹400-500 crore by FY27.
• Sales Growth Expectation: Anticipated year-on-year growth of 30%-35%.
• Revenue Projections:
• Expected top line of ₹340-350 crore for the current year.
• Total revenue target of approximately ₹800 crore by FY27.
Capital Expenditure and Financial Strategy
• CAPEX Plans: Aiming for a facility capable of handling 6 to 10 tons, timing uncertain.
• Borrowings: Increased from ₹60 crore to over ₹100 crore for property acquisitions.
• Stable Finance Costs: Despite rising interest rates.
• Employee Costs: Increased by 37% due to hiring for expansion.
Profit After Tax Projections
• FY26 PAT Expectation: Projected between ₹42 to ₹44 crore.
• Current Year PAT Trend: Estimated around ₹18 to ₹19 crore.
Management Assurance
• Commitment to Growth: Assurance to investors regarding the company's growth promises and operational readiness.