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Kabra Jewels Ltd Management Discussions

90.45
(-1.68%)
Oct 8, 2025|12:00:00 AM

Kabra Jewels Ltd Share Price Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS

A. Indian Economic Overview:

The results of growth-enhancing policies and schemes (such as the production-linked incentive program and the Governments continued push toward self-reliance), along with strong infrastructure spending, have begun to yield visible outcomes in FY 2024-25. These measures supported higher multiplier effects on jobs and income, improved productivity, and greater efficiency across sectors, leading to sustained economic expansion. In addition, spillover benefits from shifting global supply chains and geopolitical realignments strengthened Indias position as a preferred alternate investment destination. According to the Reserve Bank of India (RBI), the economy grew by 6.5% in FY 2024-25, in line with earlier projections. Inflation eased significantly during the year, with the average CPI inflation falling to around 3-3.5%, well below the RBIs 4% target, helped by a moderation in food and commodity prices. The fiscal deficit narrowed to 4.8% of GDP, creating space for continued public investment. With inflation under control and growth momentum holding steady, FY 2024-25 marked a year of relative macro-stability, even as the Government and the RBI carefully balanced global headwinds, domestic consumption challenges, and fiscal discipline.

B. Outlook:

In the last decade, India has been one of the fastest-growing economies, with annual growth rate averaging 7-8%. The increase in GDP can be attributed to a variety of reasons, including favorable demographics, influx of investment capital and technological efficiency and productivity gains. As the new financial year begins, there is greater uncertainty on this question, not just because of difference in assessment of the economic situation at hand but also due to the ongoing geopolitical crisis which is fuelling a surge in global commodity prices, especially crude oil.

C. Industry structure and development:

The Indian gems and jewellery industry is one of the largest in the world, contributing significantly to the countrys GDP and foreign exchange earnings. It plays a vital role in employment generation and exports. With changing consumer preferences, increasing disposable incomes, and rising awareness of branded jewellery, the sector is witnessing steady growth. Government initiatives such as hallmarking regulations, mandatory BIS certification, and support for exports through SEZs are driving transparency and credibility in the sector.

D. Opportunities and Threats:

Opportunities:

• Growing demand for branded and hallmarked jewellery.

• Increasing penetration of organized retail and e-commerce in jewellery sales.

• Strong domestic demand driven by weddings, festivals, and cultural significance.

• Global demand for Indian cut and polished diamonds, coloured stones, and gold jewellery.

Threats:

• Volatility in gold and diamond prices impacting margins.

• Stringent regulatory compliances and GST implications.

• Exchange rate fluctuations affecting exports.

• Stiff competition from unorganized players and international brands.

E. Risks and concerns:

• Fluctuations in precious metal prices may impact profitability.

• Regulatory changes relating to hallmarking, import duties, and anti-money laundering laws.

• Global economic uncertainties and geopolitical tensions affecting export demand.

• Competition from international brands and imitation jewellery.

F. Internal control systems and their adequacy:

The Company has in place an adequate internal control system commensurate with its size and nature of operations. These systems ensure reliable financial reporting, compliance with applicable laws, safeguarding of assets, and efficient conduct of business. The internal audit team regularly reviews key control areas, and significant observations are presented to the Audit Committee.

G. Human Resources / Industrial Relations

The Company recognizes human resources as its most valuable asset. Continuous training, skill enhancement programs, and employee engagement initiatives are undertaken to improve productivity and motivation. Industrial relations during the year remained cordial and constructive.

H. KEY RATIOS:

The Key ratios are already mentioned in the financial statements of the Company.

For and on behalf of the Board

KAILASH SATYANARAYAN KABRA

Chairman and Managing Director

(DIN:03135234)

Date: 01.09.2025

Place: Ahmedabad

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