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Goldiam International PAT rises 231% yoy to Rs43.6cr in H1FY22; Stock tumbles 3%

The Company has experienced strong revenue growth coupled with margin expansion for both its Lab Grown Diamond (LGD) Jewellery and Natural Diamond Jewellery owing to the revival of US retail, fueled by enhanced spending from end customers.

November 08, 2021 1:22 IST | India Infoline News Service
Goldiam International Ltd has announced its results for the quarter and six months ended on September 30, 2021.

Financial Highlights:
  • The Company reported its highest ever half yearly sales in H1FY22. The Company has experienced strong revenue growth coupled with margin expansion for both its Lab Grown Diamond (LGD) Jewellery and Natural  Diamond Jewellery owing to the revival of US retail, fueled by enhanced spending from end customers.
  • Consolidated Revenue during H1FY22 surged by 169% YoY to Rs329.9cr due to reopening of US markets, government stimulus and aggressive COVID‐19 vaccinations drive resulting in a strong uptick in US Jewellery demand from Retailers & End Customers.
  • Consolidated EBITDA for H1FY22 grew by 210% YoY to Rs63.9cr, EBITDA margins expanded by 210 bps YoY to 19.4% led by operating leverage and better product mix. Goldiam’s strategy of selling Lab Grown Diamond jewellery backed by captive lab grown diamonds manufacturing, presence across the value chain, coupled with omnichannel sales presence has led to a better margin profile during H1FY22.
  • Consolidated PAT for H1FY22 recorded a growth of 231% YoY to Rs43.6cr owing to overall business efficiency. 
Core Jewellery Business growing at faster than industry growth
The Company’s core jewellery manufacturing & distribution business has itself experienced strong growth traction. This is on the back of a robust market for fine diamond jewellery, strong industry tailwinds and most importantly, the success of Goldiam’s own styling with current retail customers. Thanksto these factors and enhanced investments by the Company, the core business itself has leaped forward to garner greater market share by beating overall industry growth. 

Update on Buy Back/ Dividend
The Company has proposed a buyback up to 3,80,000 equity shares of the Company on 27th October 2021 for an aggregate amount not exceeding Rs45.6cr. The maximum buyback price is set at Rs1,200/‐ per equity share as on the record date on a proportionate basis under the tender offer route using the stock exchange mechanism.

The buyback size constitutes 1.7% of the total paid‐up equity share capital and ~19.35% of the total standalone paid‐up equity share capital and free reserves of Goldiam as on FY21. The Company expects to complete the aforesaid buyback process by the end of December, 2021.

Over the last five years, Goldiam has carried out two buybacks of shares to the tune of Rs30cr. During the last five years (FY17‐21), Goldiam has utilized Rs84.1cr on Dividends and Buybacks.

Cash & Cash Equivalent and Investments
The Company’s Cash & Cash Equivalent and Investments stood at Rs246.2cr as on H1FY22. The Company would continue to explore various opportunities to judiciously utilise the cash reserves.

Order Book Status
Goldiam has an order book size of Rs200cr. This order book is expected to be executed by FY22. E‐commerce sales given its nature of being booked online (on a spot basis) is not part of the order book.

At around 1:21 PM, Goldiam International was trading at Rs1,001.65 apiece down by Rs29.15 or 2.83% on Sensex.

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