Sar Televenture Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian gems and jewelry industry continues to be one of the largest contributors to global jewelry demand, driven by strong domestic consumption and export opportunities. As per industry estimates, the Indian jewelry market witnessed steady growth in FY 2024-25, supported by rising disposable incomes, festive and wedding demand, increasing penetration of organized retail, and growing consumer preference for hallmarked and branded jewelry.

The governments initiatives, such as mandatory hallmarking, reduction in import duty on gold, and various policies supporting exports under the Gems and Jewellery Export Promotion Council (GJEPC), have further streamlined the sector. Additionally, increasing adoption of digital platforms and e-commerce has expanded the reach of jewelry retailers.

OPPORTUNITIES AND THREATS

Opportunities:

Growing preference for certified, branded jewelry over unorganized players.

Increasing demand for lightweight, daily-wear jewelry among millennials.

Rising exports due to favorable global market conditions and trade agreements.

Digital transformation and omni-channel retail enhancing customer engagement.

Threats:

Volatility in gold and diamond prices impacting margins.

Stiff competition from organized retail chains and e-commerce players.

Regulatory changes including import duties, hallmarking requirements, and GST compliance.

Economic slowdowns or global geopolitical tensions affecting consumer sentiment and exports.

OUTLOOK

The outlook for FY 2025-26 remains positive, supported by strong domestic demand, favorable demographics, and rising exports. The Company intends to strengthen its retail presence, invest in digital platforms, enhance customer experience, and focus on branded and hallmarked jewelry to capture growing market share.

RISKS AND CONCERNS

Price volatility of gold and diamonds remains a key concern affecting inventory valuation and customer purchasing decisions.

Macroeconomic factors such as inflation and interest rate changes may impact discretionary spending.

Compliance with regulatory norms like hallmarking and GST necessitates robust internal systems.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate internal control framework commensurate with the size and nature of its operations. Regular internal audits are carried out to ensure compliance with applicable laws, accounting standards, and policies. Audit findings and compliance measures are periodically reviewed by the Audit Committee of the Board.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATION PERFORMANCE

During the year under review, total earnings were 4248.69 Lakhs as compared to 3702.28 Lakhs in the previous year. Profit of the Company after tax stood at 17.24 Lakhs as compared to Profit of 37.61 Lakhs in the previous year.

HUMAN RESOURCE

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.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR

Sr. No. Particulars	FY 2024 25	FY 2023 24	Remarks
1. Debtors Turnover Ratio	266.92	69.48	Significant improvement due to reduction in year-end trade receivables, indicating faster realization of dues.
2. Inventory Turnover Ratio	5.50	9.45	Decline due to substantial increase in closing inventory as at 31.03.2025 compared to previous year
3. Interest Coverage Ratio	1.89	11.50	Decline owing to higher finance costs during FY 2024-25 on account of increased borrowings.
4. Current Ratio	2.60	13.30	Decline due to sharp increase in short-term borrowings and current liabilities during FY 2024-25.
5. Debt Equity Ratio	0.56	0.04	Increase due to higher short-term borrowings during FY 2024-25 as compared to previous year.
6. Operating Profit Margin (%)	0.55	1.36	Decline due to higher material consumption and increase in manufacturing & direct expenses.
7. Net Profit Margin (%)	0.41	1.02	Decline due to higher finance cost and lower profitability despite increased revenue.
8. Return on Net Worth	1.97	4.39	Decline due to reduced net profit during FY 2024-25 as compared to previous year.