Eighty Jewellers Ltd Management Discussions

For the financial year ended 31.03.2025 [Pursuant to Regulation 34(2)(e) and Schedule V of SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015]

This report is a critical component of the Boards Report, serving as a key reference for stakeholders — including shareholders, investors, and analysts — to evaluate the Companys strategic initiatives, financial strength, and business trajectory. By integrating both quantitative financial data and qualitative operational insights, the report delivers a well-integrated overview of the Companys current standing and future prospects.

GEMS & JEWELLERY INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian jewellery industry remains a cornerstone of the nations retail sector, with gold and diamond jewellery continuing to be in high demand across urban and rural markets. In FY 202425, despite inflationary pressures and global economic uncertainty, the industry maintained resilience, supported by cultural affinity towards gold, rising disposable income, and increased digital penetration. Organized jewellery retail continued gaining ground, driven by consumer preference for trust, certification, and transparent pricing.

KEY INDUSTRY TRENDS:

• Gold Prices: In FY 2024-25, gold prices remained elevated throughout the year, contributing to significant shifts in consumer behavior. Despite a 5% rise in overall gold demand to 802.8 tonnes, jewellery demand fell by 2% to 563.4 tonnes due to high prices deterring discretionary purchases. In contrast, investment demand surged by 29% to 239.4 tonnes, reflecting growing consumer preference for gold ETFs, coins, and bars over traditional jewellery.

• Shift in Consumer Preferences: Consumers are increasingly opting for solitaires and studded jewellery over traditional gold pieces. This shift is attributed to the rising cost of gold and the growing appeal of diamond and gemstone-adorned jewellery.

• Digital Gold Investment: With soaring gold prices and low retail jewellery demand, there has been a significant rise in Gold Exchange-Traded Fund (ETF) investments.

• Export Challenges: Indias exports of cut and polished diamonds dropped to their lowest point in nearly 20 years during FY 2024/25, with a year-on-year decline of 16.8% to $13.3 billion. This decline was driven by weak demand from key markets like the United States and China.*

*(Data has been retrieved through various sources)

GOVERNMENT INITIATIVES AND BUDGETARY SUPPORT

The Indian government has introduced several measures to support and promote the gems and jewellery industry:

• Customs Duty Reduction: In the Union Budget 2025, the government reduced the basic customs duty on gold and silver to 6% and on platinum to 6.4%. This move aims to enhance domestic value addition in gold and precious metal jewellery.

• Taxation Reforms: The government abolished the 2% equalisation levy and introduced a safe harbour tax on rough diamond trading, positioning India as a potential trading hub for diamonds.

• Hallmarking Regulations: From 1st April 2023, hallmarking of gold jewellery became mandatory, ensuring quality assurance and building consumer trust.

• Infrastructure Development: The establishment of the India Jewellery Park in Navi Mumbai and the Bharat Ratnam Mega Common Facility Centre in SEEPZ, Mumbai, aims to provide state-of-the-art infrastructure for jewellery manufacturing and exports.

• Support for MSMEs and Artisans: The government has introduced schemes like PM Vishwakarma, PM SVANidhi, and Stand-Up India to support artisans and MSMEs in the gem and jewellery sector. Additionally, the introduction of the Parichay Card facilitates access to social security benefits for workers.

OPPORTUNITIES AND THREATS FOR INDUSTRY

OPPORTUNITIES:

• Growing Preference for Branded Jewellery: The shift towards organized retail and branded jewellery is gaining momentum, driven by consumer trust and transparency.

• Expansion Potential in Tier-ll and Tier-Ill Cities: There is significant growth potential in smaller cities and towns, where organized retail penetration is stili low.

• Rising Demand for Lightweight and Contemporary Designs: Changing consumer preferences towards lightweight and daily wear jewellery present new avenues for growth.

THREATS:

• Fluctuations in Gold Prices: Volatility in gold prices can impact consumer purchasing behaviour and profit margins.

• Regulatory Changes: Changes in taxation and import duties can affect cost structures and profitability.

• Competition from Unorganized Sector: The unorganized sector continues to pose a challenge, especially in price-sensitive markets.

Despite these risks, the gems and jewellery industry is a resilient industry, and it is expected to continue to grow in the coming years. In India this industry is one of the largest contributors to the global jewellery & diamond market and occupies a very significant position in the Indian economy.

Investment in sustainable jewellery has surged as consumers prioritize ethical and environmentally conscious choices.

GEMS AND JEWELLERY MARKET SIZE

Indias jewelry retail sector has surged to USD 80 billion (^6400 billion) in the financial year 2025 from USD 50 billion in 2018, according to a report by Motilal Oswal Financial Services.

The report highlighted multiple drivers that led to the rapid growth of the industry, including rising disposable income, an improving mix for regular wear of jewelry, enhanced product offerings (design, diamonds, etc.), trust-building through mandatory hallmarking by the government, and a better buying experience at organized retail outlets.

EXPORT

As per Ministry of Commerce and Trade:

Total exports of merchandise and services in FY 2024-25 begins with strong growth of 6.88%; estimated at USD 64.56 Billion in April 2025 as compared to USD 60.40 Billion in April 2023

Non-petroleum & Non-Gems & Jewellery exports register an increase of 1.32% from USD 25.77 Billion in April 2023 to USD 26.11 Billion in April 2025

FUTURE OUTLOOK

Indias gold, gems and jewellery sector expects more sops, infrastructure boosts and policy incentives in the upcoming Union Budget 2024-25 to make India a global leader in this business. The gold and jewellery industry, which contributes 1.3% to the Indian GDP and employs 2-3 million people, expects continuation of pro-growth and pro-gold policy reforms, including further ease of doing business to aid the industrys reform and organised growth, say industry leaders. Against the backdrop of high prices of gold, the industry demands the Government to reduce duties to curb the illicit import of gold into the country. At present total taxes on gold are over 18% (including 15% of import duty) and such high taxes act as incentives for getting gold into the country from illicit routes, impacting tax-compliant industry stakeholders. Hence, the industry demands a significant reduction of import duty on gold from current highs of 15%, which was not considered in the past few Union Budgets.

RISKS & CONCERNS

The company faces various risks, including fluctuations in gold prices, regulatory changes, and economic downturns. To mitigate these risks, Eighty Jewellers Limited employs a robust risk management framework, focusing on diversification, hedging strategies, and compliance with regulatory requirements.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Your Company has in place an adequate system of internal control commensurate with its size and nature of business. The system provides a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies.

Your Company has a business planning system to set targets and parameters for operations which are reviewed with actual performance to ensure timely initiation of corrective action, if required.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards as specified under Section 133 of the Companies Act, 2013 and the applicable Rules, as amended from time to time and other applicable provisions. The salient parameters of the financial performance of the Company during the year under review as compared to previous year are as under:

PARTICULAR	YEAR ENDED 31.03.2025 (RS. IN LACS)	YEAR ENDED 31.03.2024 (RS. IN LACS)
Revenue from Operations	10,967.93	8,097.55
Other Income	5.15	10.32
Total Revenue from Operations	10,973.08	8,107.87
Less:-Expenses	10,521.20	7,816.99
Earnings/(Loss) before Tax, Interest, Depreciation &	451.88	290.88
amortization (EBIDTA)
Less: Finance Costs	185.77	90.77
Less: Depreciation and amortization expenses for the Year	11.73	9.28
Profit/(Loss) before Taxation	254.38	190.83
Less: Tax expenses (Current Tax, Deferred Tax & Income Tax related to earlier year)	69.13	45.08
Profit/loss for the Year from continuing operation	185.25	145.75

HUMAN RESOURCES & INDUSTRIAL RELATION

As of March 31, 2025, employee relations remained cordial and cooperative, with no significant industrial disputes. The company places a strong emphasis on training and skill development, especially for frontline retail staff and artisans. Programs are focused on product knowledge, customer experience, and compliance with safety and hallmarking standards.

The Company acknowledges that its principal asset is its employees and believes in establishing and building a strong performance and competency driven culture amongst its employees with greater sense of accountability and responsibility. The industrial relations within the Company have remained harmonious throughout the year.

KEY FINANCIAL RATIO

PARTICULAR	2024-25	2023-24	% CHANGE	REASON
Debtors Turnover(no. of	807.71	212.15	280.72%	Due to reduction of Sundry Debtors
Inventory Turnover(no. of	2.16	2.57	-15.90%	-
Interest Coverage Ratio	2.4	3.1	-24.55%	-
Current Ratio	1.88	3.57	-47.18%	Due to enhancement of cash credit limit from bank
Debt Equity ratio	1.06	0.33	217.87%	Due to repayment of ECGLS term loan
Operating Profit Margin (%)	6.98	6.82	2.29%	-
Net Profit Margin (%)	1.69	1.8	-6.16%	-
Return on Net Worth (%)	6.82	5.76	18.40%	-

OUTLOOK FOR FY 2025-26

Despite challenges such as price volatility and shifting global trade dynamics, the outlook remains cautiously optimistic:

• The Indian jewellery market is expected to grow at a CAGR of 9-11%, driven by festive demand, wedding purchases, and brand penetration in semi-urban areas.

• Eighty Jewellers aims to expand its retail footprint by opening new outlets in Tier-2 and Tier- 3 cities in Central India.

• Focus areas include e-commerce integration, customized jewellery offerings, and loyalty programs to deepen customer engagement.

• Cost optimization, inventory control, and digital transformation will continue to be operational priorities.

CAUTIONARY STATEMENT

The above Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include external economic conditions affecting demand/supply influencing price conditions in the market in which the Company operates changes in Government regulations, tax laws, and other incidental factors.