Goldiam International Reports Approximately 3X Growth in PAT for Fourth Quarter of Fiscal21

Leverage the omnichannel business strategy and strengthen the vertical segment of laboratory diamond activities

Mumbai, India, May 25, 2021 / PRNewswire / – Goldiam International Ltd (Goldiam), a reputable integrated manufacturer and supplier of flawless diamond jewelry to major retailers and wholesalers in the United States and Europe, announced its results for the quarter and twelve months ended March 31, 2021.

Financial Highlights (Consolidated) – T4FY21 & FY21

Details (INR Mn)

Q4FY21

T4FY20

YoY

FY21

FY20

YoY

Returned

1318

901

46%

4 132

3,866

7%

EBITDA

236

42

466%

853

656

30%

TAP

92

28

225%

671

453

48%

EPS

4.2

1.3

232%

30.3

19.7

53%

  • Consolidated revenue for the quarter increased 46% year-on-year due to inventory replenishment by major retailers in the US market as consumer demand increases with changing consumer behavior. This allowed the standalone jewelry store’s revenue to grow 103% in the fourth quarter of FY21 to INR 700 million.
  • T4FY21 consolidated EBITDA increased 466% year-on-year, driven by higher revenues from jewelry and lab-grown diamonds. EBITDA margins improved significantly to 18% in Q4FY21, compared to 5% in Q4FY20.
  • The consolidated PAT for T4FY21 increased 225% year-on-year thanks to the overall efficiency of the company which further strengthened its cash position.

Update of the balance sheet

  • The company is focused on its cautious and conservative approach to financial engineering and has remained net debt free despite difficult market conditions. He is a firm believer in having no debt.
  • From 31st March 2021, consolidated cash and cash equivalents INR 3,100 million, or approximately 51.4% of total assets
  • In addition, the Company’s cash-adjusted ROCE is 45.6% for FY21 and ROE is 15% for FY21.

Dividend for financial year 21:

  • In accordance with the dividend distribution policy, the company declared a final dividend of 3 INR, which translates into a total dividend of 8 INR for fiscal year 21. This payment is 58% of autonomous PAT and 26% of PAT consolidated for FY21.
  • Over the past five years, the Company has achieved an average dividend payment of 62.3% of autonomous PAT and two share buybacks up to INR 300 million.

Creation of a diamond company developed in the laboratory

In Q3FY21, the Company acquired 51% of Eco-Friendly Diamonds LLP (EDL). EDL is engaged in the cultivation and manufacture of laboratory-created diamonds via the method of “chemical vapor deposition” (CVD). In terms of profitability, lab-grown diamonds generally enjoy better margins compared to natural diamonds mined.

During Q4FY21, the company also acquired 37% of “Eco-Friendly Diamonds LLP” (EDL). With that, Goldiam now owns 88% of EDL. The aforementioned acquisition in EDL will be completed within the next 30 days.

Order book status

The company has an order book of INR 2,000 million, of which 10% is lab-grown diamonds. This order book should be fulfilled in the next 4 to 6 months, e-commerce sales represent 20% of total sales, which is not part of the order book.

Omnichannel business strategy

The company focused on its omnichannel business strategy which increased sales of the jewelry business. Its digital strategies have enabled it to capture a larger audience and significantly better payment terms. In addition, the rapid cash conversion cycle leads to a negative working capital cycle and a higher ROE profile for this business channel. During the quarter, the company hired a senior executive and CEO for its new Jewel Fleet B2B e-commerce website and is currently tweaking the website to make it more appealing to the target market.

Commenting on the performance, Mr. Rashesh Bhansali, President and CEO of Goldiam International, said: “The 2020-21 fiscal year has been a truly difficult year for our economy, our industry, our business and humanity as such whose resilience has been put to the test by the COVID-19 pandemic. Despite this, We reported exceptional revenue growth in the fourth quarter. This is due to the restocking of inventory by major retailers in the United States because the feelings of consumers become positive. We believe that this demand will continue its strong trajectory in the quarters to come with the ease of COVID-19 restrictions.

Today Goldiam is at an inflection point, where we are witnessing the effects of our proactive business strategies in terms of venturing into lab diamonds and various digital initiatives. These will be our foundation for exponential growth.

In addition, we maintained our net debt-free position with our prudence and rewarded our stakeholders with a policy of fair dividend distribution. Going forward, Goldiam aims for a better future with strong commitment and a solid foundation.

About Goldiam International Limited (Goldiam)

Goldiam International Limited (NSE: GOLDIAM) (BSE: 526729) is a 3 decades old exporter of luxury and exquisitely designed diamond jewelry. Operating as the manufacturer of choice for many of the world’s leading branded retailers, department stores and wholesalers in the US and European markets, the company is also renowned for using responsibly sourced diamonds, leveraging technologies from state-of-the-art and efficient manufacturing processes for optimal costs and prompt delivery. delays. Targeting the mid to affordable diamond and bridal jewelry segments, Goldiam has a dedicated sales office for new York, with design teams in both India and the United States.

Forward-looking statement:

Certain statements contained in this document may be forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties such as regulatory changes, local political or economic developments, technological risks and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. . Goldiam International Limited will in no way be responsible for any action taken on the basis of such statements and does not undertake to publicly update these forward-looking statements to reflect subsequent events or circumstances.

SOURCE Goldiam International Limited


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