Laxmi Goldorna House Ltd Management Discussions

To

Laxmi Goldorna House Limited

Ahmedabad

GEMS AND JEWELLERY INDUSTRY

Growing demand:

Gold ETF AUM rose from 40 tonnes to 54 tonnes in 2024, signaling increasing retail investor participation. In 2022, India ranks first among the top exporters in cut & polished diamonds, and second in gold jewellery, silver jewellery and lab-grown diamonds.

Increasing Investments:

Lighthouse, a private equity platform, has made a significant investment of Rs. 284 crore (US$ 34.2 million) in Kushals, a brand specializing in fashion and silver jewelry. Cumulative FDI inflows in diamond and gold ornaments in India stood at Rs. 8,905.18 crore (US$ 1,427.39 million) between April December 2024.

Policy Support /Government Initiatives

The Government has permitted 100% FDI under the automatic route** in this sector. The sector now has AEO status from the finance ministry, easing export-import processes with quicker cargo release, 50% lower bank guarantees.

Attractive Opportunities

It is expected to break out of this range and rise to between 800 and 900 tons in 2024. Total FDI Equity inflows in Indian G&J Sector grew by around 15% to US$ 25.50 million during 2022-2023 in comparison to last year.

(Source - https://www.ibef.org/industry/gems-jewellery-india.aspx)

INDIAN REAL ESTATE INDUSTRY

The real estate sector is one of the most globally recognized sectors. It comprises of four sub-sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodation. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. It was also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. Bengaluru was expected to be the most favored property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

Demand

According to Savills India, real estate demand for data centres is expected to increase by 15-18 million sq. ft. by 2025 The demand for luxury homes in India, particularly those priced at Rs. 4 crore (US$ 0.5 million) and above, saw a remarkable surge in 2024, with sales rising by 53% across seven major cities. According to data from real estate consultancy firm CBRE, the total number of luxury housing units sold last year stood at 19,700. Luxury home demand in India remained strong in 2025, with sales of Rs. 4 crore (US$ 0.5 Million) and above rising nearly 28% YoY across seven major cities. In Q1 2025, 1,930 luxury homes were sold across Indias top seven cities a 28% jump from the 1,510 units sold in the same period the previous year

Opportunities

The real estate sector shows promise with a projected 9.2% CAGR from 2023 to 2028. 2024 is expected to drive growth with urbanization, rental market expansion, and property price appreciation; Private market investor, Blackstone, which has significantly invested in the Indian real estate sector (worth Rs. 3.8 lakh crore (US$ 50 billion), is seeking to invest an additional Rs. 1.7 lakh crore (US$ 22 billion) by 2030. ICRA projects a 6 9% rise in new launches in FY2026 (620 640 mn sq. ft). Home prices rose 13 15% in FY2025 and may increase another 3 5% in FY2026, signaling strong demand and developer pricing power

Policy Support

Driven by increasing transparency and returns, theres a surge in private investment in the sector. The Government has allowed FDI of up to 100% for townships and settlements development projects. The Union Budget 2025-26 boosts homeowners with nil tax on two self-occupied properties (earlier one) and raises TDS threshold on rent from Rs. 2.4 lakh (US$ 2,769) to Rs. 6 lakh (US$ 6,924), driving property ownership demand.

Investments

The new framework for Small and Medium Real Estate Investment Trusts (SM REITs) has been praised by the realtors association CREDAI, stating that it will enhance the flow of funds into the Indian real estate market. According to Anarock Capital, Foreign private equity (PE) investments in Indian real estate reached approximately US$ 3.1 billion in FY25, marking a significant increase from US$ 2.6 billion in FY24.

Road Ahead

The Securities and Exchange Board of India (SEBI) has given its approval for the Real Estate Investment Trust (REIT) platform, which will allow all kind of investors to invest in the Indian real estate market. It would create an opportunity worth Rs. 1.25 trillion (US$ 19.65 billion) in the Indian market in the coming years. Responding to an increasingly well-informed consumer base and bearing in mind the aspect of globalization, Indian real estate developers have shifted gears and accepted fresh challenges. The most marked change has been the shift from family-owned businesses to that of professionally managed ones. Real estate developers, in meeting the growing need for managing multiple projects across cities, are also investing in centralized processes to source material and organize manpower and hiring qualified professionals in areas like project management, architecture and engineering.

The current shortage of housing in urban areas was estimated to be ~10 million units. An additional 25 million units of affordable housing are required by 2030 to meet the growth in the countrys urban population.

(Source - https://www.ibef.org/industry/real-estate-india.aspx)

SWOT ANALYSIS OF OUR COMPANY

Strengths

Experienced and resourceful promoters having diversified business interest Availability of raw material in the local market or purchasing of old jewels Availability of Low cost and skilled technical and professional Manpower Comfortable capital structure with below unity gearing level High-quality jewellery at competitive prices

Weaknesses

Moderate scale of operations and thin profit margins Weak debt coverage indicators

Highly working capital-intensive nature of operation leading to 90% utilization of working capital bank borrowings. Project funding and execution risk Susceptibility of margins to volatile raw material prices Presence in highly fragmented, nature driven and competitive gems & jewellery industry

Opportunities

Encasing the reputation for development in another area. High and increasing purchasing power of the people Expansion of business in real estate activities

Threats

The injection of fresh, creative designs in a somewhat stagnant industry Fluctuation in Gold prices High entry cost in the newer markets. Competition from family-owned business in this sector Competition with big real estates groups.

RISKS AND CONCERNS

The Indian economy is on a high growth trajectory, with several favourable macroeconomic indicators supporting the growth momentum. The jewellery industry is expected to benefit from the recent developments in the economy. Higher income in the hands of farmers and rural population, driven by normal monsoon forecast, will translate into robust spending and consumption, thus fuelling the demand for jewellery. Frequent regulatory changes and fluctuations in gold and commodity prices may pose a challenge to the Companys margins. Presence of unorganised players and expansion of regional players results in intense competition in the jewellery industry.

FINANCIAL PERFORMANCE

The Companys financial performance for the year ended on March 31, 2024 is as below:

Particulars	2024-25	2023-24
Total Revenue	88,00,85,891	2,02,07,64,995
Total Expenditure	74,15,61,185	1,89,04,24,929
Profit /(Loss) Before Tax	13,92,49,012	12,99,64,737
Less: Current Tax	3,31,02,727	3,63,75,000
Deferred Tax	3,88,408	-11,94,814
Profit /(Loss) after Taxation	10,57,57,877	9,47,84,551
Balance carried to Balance Sheet	10,57,57,877	9,47,84,551
Earnings Per Share(EPS)
Basic	5.07	4.54
Diluted	5.07	4.54

SEGMENT WISE PERFORMANCE

Particulars	Gold and Jewellery	Real Estate
Total Revenue	6245.43	2536.13
Profit /(Loss) Before Tax	268.41	1976.67
Assets	6053.24	9901.97
liabilities	1508.48	7942.50
Capital Employed	4544.76	1959.47

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company has implemented proper system for safeguarding the operations/business of the company, through which the assets are verified and frauds, errors are reduced and accounts, information connected to it are maintained such, so as to timely completion of the statements. The Company has adequate systems of Internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information. The company gets internal audit and verification done at regular intervals. The requirement of having internal auditor compulsory by statue in case of listed and other classes of companies as prescribed shall further strengthen the internal control measures of company.

DETAILS OF SIGNIFICANT IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR. (ANY CHANGE IN KEY FINANCIAL RATIOS WHICH ARE MORE THAN 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ARE MENTIONED BELOW:

Ratio	As at 31st March 2025	As at 31st March 2024	Variation	Remarks / Explanation
Current Ratio	1.47	1.60	37.95%	Due to increase in Current Assets
Debt-Equity Ratio	1.25	1.16	31.22%	Due to Increasing in Debt
Debt Service Coverage Ratio	0.62	0.43	-7.93%	Due to Increasing in Debt
				Interest cost increasing
Return on Equity Ratio	19.1%	24.5%	41.23%	Due to increasing in Profit
Trade Receivables turnover ratio	1.89	5.66	-108.97%	Due to increasing in Sales
Net Profit Ratio	12.02%	4.69%	-27.02%	Due to increasing in Profit
Return on investment	-	-	-	-

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS FRONT

Your Company has undertaken employees development initiatives, which have very positive impact on the morale and team spirit of the employees. The company has continued to give special attention to human resources and overall development.

DISCLOSURE OF ACCOUNTING TREATMENT

In preparation of the Financial Statements, the Company has followed the applicable Indian Accounting Standards. The Significant Accounting policies applied in the preparation and presentation of financial statements have been set in Notes forming part of the Financial Statements for the Financial Year ended on March 31, 2025.

CAUTIONARY STATEMENT

Certain statements in the reports of the Board of Directors and Managements discussions and analysis may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied since Companys operations are influence by many external and internal factors beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any of these statements on the basis of any subsequent developments, information or events.

Registered Office :	By Order of the Board
Laxmi House, Opp. Bandharano Khancho, M. G. Haveli Road, Manekchowk, Ahmedabad 380001, Gujarat, India	For Laxmi Goldorna House Limited

 

	Sd/-	Sd/-
	Mr. Jayeshkumar Chinulal Shah	Rupalben Jayeshkumar Shah
	Managing Director	Whole Time Director
	DIN: 02479665	DIN: 02479662
Date: 04 th September, 2025
Place: Ahmedabad, Gujarat