uday jewellery industries ltd share price Management discussions


This report covers the operations and financial performance of the Company for the year ended March 31, 2023. The Company operates in one segment which is Jewellery manufacturing. Your Board of Directors places herewith the Management Discussion and Analysis Report on the business of the Company as applicable to the extent relevant.


Indias formidable position as the second-largest gold market, where an impressive 70% of the demand is attributed to exquisite jewellery, underscores the immense growth opportunities awaiting the organized retail segment. It is also the third-highest component of retail consumption in India. Moreover, gold jewellery demand has experienced a steady and consistent upward trend for several reasons.

Firstly, most of the demand can be attributed to weddings, where gold holds great cultural and sentimental value. As weddings remain an integral part of many societies, the demand for gold jewellery continues to rise. Secondly, gold is considered a reliable store of value, especially in times of economic uncertainty, making it an attractive investment option for individuals. The growth in disposable income across various regions has also played a crucial role in boosting demand, as people have more financial capacity to invest in gold jewellery. Thirdly, gold jewellery holds strong linkages to traditions and customs, further driving its popularity. Lastly, evolving fashion trends and styles have increased the demand for gold jewellery as consumers seek innovative and contemporary designs. The jewellery market in India is a sizeable and attractive industry, propelled by several favorable factors.

These include shifting customer behaviors, superior organizational capabilities, and supportive regulatory and legislative changes. These combined elements create significant tailwinds for the growth and prosperity of the jewellery sector in India.

The vision of the company is to be a leading manufacturing Company for the CZ with studded color stone jewellery in India to fulfill the demand from Generation to Generation who have higher disposable income and look for aesthetic value with investment grade buying of jewellery products.


The global jewellery market is expected to witness substantial growth. This growth is primarily driven by Evolving consumer preferences towards distinctive jewellery styles, including oversized hoops and geometric shapes like rectangles, spheres, and squares. The rising popularity of personalized and environmentally sustainable jewellery further fuels this trend. The global gold jewellery market will grow during the forecasted period due to rising GDP per capita, increasing consumer disposable income, and the appeal of gold as a long-term investment.


Market estimated at ~Rs 4,700 billion in fiscal 2023 The domestic gems and jewellery market was roughly ~Rs 4,700 billion in fiscal 2023 with gold jewellery dominating the overall market with a 66% share. Domestic jewellery demand has historically been dominated by consumption. Consumption of jewellery studded with diamond, pearls and other precious and semi-precious stones, has also been rising over the past five years but remains significantly lower than that of gold jewellery. Growing demand for studded jewellery could be attributed to changing consumer preferences, a rising presence of organized players and aggressive advertising campaigns.

The year 2022 was memorable for India as the nation celebrated its 75th year of independence while claiming its place as the worlds fifth-largest economy, boasting a nominal GDP of $3.5 trillion. According to CSO estimates, the Indian economy grew by 7.2%, the fastest among major economies, driven by strong domestic private consumption, government expenditure on infrastructure and a favorable investment climate. Although India, too, faced high inflation, the Reserve Bank of India undertook a series of policy rate hikes to bring it down within its comfort range. Despite the challenges of higher oil prices leading to increased import bills and trade deficits, concerns about the current account deficit and its financing has eased over time.


The Indian jewellery retail sector is currently valued at approximately $76.3 billion in FY23 and is expected to grow substantially. This market is expected to grow at a CAGR of 5.54% by 2027. This projection signifies the sectors potential for significant expansion and economic impact in the coming years.

The organized retail segment currently holds a share of approximately 35%, featuring prominent national and regional players. In contrast, the unorganized sector, comprising a vast network of over 5,00,000 local goldsmiths and jewellers, dominates the remainder. The organized sector displayed remarkable resilience, bouncing back swiftly and accelerating after the pandemic. This revival was propelled by a combination of factors, spanning both the supply side and the resurgence of consumer demand.

While India traditionally boasts a deep-rooted affinity for gold jewellery, capturing a substantial share

of approximately 85% of the market, an intriguing trend is emerging. With its sparkling allure, studded jewellery is gaining momentum and attracting growing participation in the jewellery retail landscape. The prominence of gold jewellery stems from its profound cultural and religious significance, intertwined with a legacy of trust and reliability that gold embodies.

Gold jewellery demand in India is primarily driven by weddings significant role in the culture. Weddings in India holds immense importance and is marked by grand celebrations and traditions. Gold jewellery is essential to Indian weddings, representing prosperity, blessings, and the eternal bond between couples. The demand for gold jewellery remains resilient in India due to the enduring wedding demand. Families consider gold jewellery as a valuable asset, both financial and emotionally, and often pass it down through generations. This cultural significance and belief in the auspiciousness of gold ensure its continued demand in the Indian market.

Jewellery consumption in India can be broadly categorised as bridal, daily wear and fashion jewellery. Weddings play an important role in jewellery demand since Indian culture necessitates purchase of jewellery during weddings. This is based on the ancient concept of ‘streedhan, which loosely translates into property or assets given as security to the bride at the time of marriage. Immediate family members of the bride and groom are also gifted jewellery. Since bridal jewellery accounts for the maximum share of jewellery demand, it tends to be concentrated in months considered auspicious for weddings in India. Another key trend is families now tending to spread their wedding jewellery purchases based on factors such as availability of surplus income, drop in gold prices, and availability of schemes offered by jewellers. In some cases, families tend to purchase gold bars or coins on a regular basis, which are then converted to bridal jewellery as and when required.

In contrast, daily wear and fashion jewellery, which is more lightweight and of contemporary design, has started gaining market share with changing demographics, such as increase in working women, exposure to global designs, and increase in per-capita income.

Trends by jewellery typearticulars

Bridal Daily wear Fashion
Indicative market share by weight (%) 50-55% 35-40% 5-10%
Carat preference 23k, 22k, 18k 22k, 18k 18k, 14k
Average weight (gm) 20-250 5-30 5-20

Note: The data is of fiscal 2022

Source: Industry, CRISIL MI&A Research

Increasing preference for lightweight jewellery :

With an increasing number of working women, exposure to global designs, and a rising number of young consumers who prefer to purchase jewellery for adornment rather than investment, consumer preference is shifting away from traditional bulky jewellery towards lightweight fashion items. Hence, jewellery makers have started manufacturing lightweight fashion jewellery of contemporary designs, suitable for daily use, which has been the focus are of the Uday Jewellery for several years and that gives the Company an added advantage in business growth in coming years.



1. Customized service gives a unique identity to the company distinct from other players.

2. Use of synergy optimization at various functional verticals gives a huge advantage.

3. Advanced Technology strength to support business operations and expansion.

4. Company with Low Debt.

5. Strong cash generating ability from core business - Improving Cash Flow from operation for last 2 years.


1. Low-margin products

2. Limited line of business is the bottleneck to exploiting untapped markets.

3. Frequent change in customer taste and preference for jewellery designs.


1. Rural development

2. Customers preference in choosing hallmarked products over products made by un-organized manufacturers.

3. Concentrating in one sector makes the company mature in the industry and gain efficiency in operations.


Some of the key challenges facing the jewellery industry are as follows:

1. Macro economic factors such as Rupee fluctuations, enactment of new laws such as GST, KYC norms and quality consciousness amongst export markets.

2. Adapting to fast-changing consumer preferences and buying patterns.

3. Volatility in the market prices of gold and diamonds.

4. Recession affects the industry growth in general.

5. Unpredictable Covid situation may lead to unavailability of Artisans/ workers.


In the coming years, there will be a spurt in demand for Indian jewellery in the global market and the growth in the gems & Jewellery sector would be largely contributed by the development of large Manufacturers/brands due to the ongoing structural changes together with strong macro-demographic trends. Regulatory changes introduced by the Government of India over the last few years are likely to rise the preference for branded jewellery and shift the scales in favor of the organized sector at the cost of the unorganized sector. The demand for jewellery is expected to remain robust, given Indias demographics and the consumers affinity towards gold for both wedding-related purchases and as store of value. Overall, India is expected to play a more important role in the global gems & jewellery sector, with significant investment seen in the manufacturing units by the domestic players, foreign players, and private equity investors.

The changes expected in the product–mix portfolio of the Company auger well in the long run to improve the profits. It is expected that the positive impact of polarization on the organized sector is likely to be visible operationally within a couple of years that would go a long way in improving the margin and turnover for the industry in general and the Company.

Plans to Modify/ Enhance the product Offering: The Management is focusing to bring state of the art design portfolio to buyers and enhancing the product offering to the customers, hence new product innovation is one of the integral plans of the company.

Strategizing the Marketing & Business Development:

a. Customer Acquisition Policy: Customer acquisition is important for businesses of any age and size. The goal of this process is to create a systematic, sustainable customer who can sell the Companys products in the long term.

b. Business Development Policy: A Business Development Policy is being evolved to cater to ever-changing market preferences, but with a focus on growth and how to achieve it. Its a long-term plan that outlines strategies for steady and sustainable business growth over the coming years. Its scope covers both the marketing and sales functions, as they are interlinked in the Jewellery Industry.

The Companys marketing team at present is catering to the following category of buyer group:

1. National Chains – Retail Chains having National level presence

2. Local Chains – Retail Chains having regional/local level presence

3. Family Jewellers – Well-known Family jewellers having 1 or 2 stores.

4. Distributors and

5. Exports

The Company is developing new collections to cover a large area of the market on a worldwide basis and to target selected and renowned jewelers in each city which has big stores with a colossal capacity of displaying a variety of products to escalate the network and for the same Company is looking forward to signing Memorandum of Understanding with at least one Distributor in Second half of the Financial Year 2021-22.

The various initiatives the Company took in formulating strategies and implementing them in all spheres of business activities will result in sustainable revenue and profit growth over time.


As the Company is dealing in very high-value goods/items, it is always exposed to operational risks. The Company, therefore, always ensures that its entire inventory, from raw materials to finished goods is insured at all times, at the manufacturing facilities. The Company has cash pick-up arrangements with leading banks, with transit insurance. All of its manufacturing units have strong Security systems for 24/7 safe custody of the inventory. In addition, all the manufacturing units have 24 hours CCTV vigilance and armed guards.

The Company is also exposed to price risk movements both in gold as well as its forex exposure. However, it has put rigorous systems, hedging methodology, and procedures in place to take care of these concerns. The Company has in place a comprehensive risk management framework that helps in anticipating, identifying, and evaluating business risks and challenges across the Company and finding ways to mitigate the same.


The Company has an adequate system of internal controls, commensurate with the size and nature of its business, to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposal and to ensure all transactions are authorized, recorded, and reported correctly. The Company is maintaining function-wise Standard Operating Procedures (SOP). It has in place internal controls covering all fields across all financial and operating functions. The Independent audit firms appointed by the company conduct periodical audits to ensure the adequacy of internal control systems, adherence to management policies and compliance with the applicable laws and regulations.

The key findings of their audit along with implementation plan of their recommendations are discussed with the senior management and also the Audit Committee. The Audit Committee of the Board reviews the adequacy and effectiveness of the internal control systems and suggests improvements for strengthening them.

There were no instances of fraud which necessitate reporting in the financial statements. Further, there have been no communications from regulatory agencies concerning non- compliance with or deficiencies in financial reporting practices.

The following key control measures are also in place to monitor and control the effectiveness of the internal control system:

1. Quality control: Company has the professional equipment to assure the quality fulfills good standard and the hallmarking system is there to ensure the jewellery is not adding more other metals and a lesser amount of gold;

2. Cash flow management: Daily available fund report is reviewed to monitor the cash flows against budgets/forecast;

3. The policies and practices on compliance with legal and regulatory requirements shall be reviewed and monitored by the Board Committee;


During the year under review, your Company has achieved a turnover of Rs. 17,828.14 Lakhs against Rs. 12,249.73 Lakhs during the previous year registering a growth of 45.53% over the previous year The Company reported a Net Profit after Tax of Rs. 950.19 Lakhs as against Rs. 571.36 Lakhs earned during previous year registering a growth of 66.30%.


Share Capital:

The Authorized Capital of your Company is Rs. 26,00,00,000/- divided into 2,60,00,000 Equity shares of Rs. 10/- each as on 31st March 2023.

The Paid-up equity share capital of the Company is Rs. 22,02,19000/- divided into 2,20,21,900 Equity shares of Rs. 10/- each as on 31st March 2023.

During the year under review, the Company has allotted NIL Equity shares.

Share Forfeited account amounts to Rs. 79.07 Lakhs as on 31st March 2023.


The Companys Human Resources philosophy is to establish and build a strong performance and competency-driven culture with a greater sense of accountability and responsibility.

The Company considers its human resources as amongst its most valuable assets and continues to place emphasis on its development. It has been the Companys constant endeavor to impart requisite training and thereby develop and hone the skills and talent of its personnel and enable them to realize their potential.

The Company has taken pragmatic steps to strengthen organizational competency through involvement and development of employees as well as installing effective systems for improving productivity, equality and accountability at functional levels.

With the changing and turbulent business scenario, the Companys basic focus is to upgrade the skill and knowledge level of the existing human assets to the required level by providing appropriate leadership at all levels motivating them to face the hard facts of business, inculcating the attitude for speed of action and taking responsibilities.

In order to keep the employees skills, knowledge and business facilities updated, ongoing in-house and external training is provided to the employees at all levels. The effort to rationalize and streamline the workforce is a continuous process. The industrial relations scenario remained harmonious throughout the year.

The human rights manual and procedures therein apply to all our manufacturing operations. We are committed to identifying, preventing, and mitigating adverse human rights impacts resulting from or caused by our business activities before they occur.


Pursuant to provisions of Regulation 34 (3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B (1) details of changes in Key Financial Ratios is given hereunder:

S.No Ratio Type

F.Y.22- 23 F.Y.21- 22 % of Change

Reasons/Remarks for variation of 25%

1 Current Asset Ratio

2.76 3.02 -8.59% -

2 Debt Equity Ratio

0.49 0.47 4.55% -

3 Debt Service Coverage Ratio

5.93 9.06 -34.50% Increased the utilization of funds, more than 1 is favorable

4 Return on Equity Ratio

15.18% 10.39% 46.09% Efficiently utilised the funds to generate income.

5 Inventory Turnover Ratio

3.31 3.02 9.78% -

6 Trade Receivable Turnover Ratio

4.50 3.84 17.23% -

7 Trade Payable Turnover Ratio

71.90 130.37 -44.85% The payable period from the supplier has increased.

8 Net Capital Turnover Ratio

2.73 2.17 25.71% The Company has efficiently utilized its working capital.

9 Net Profit Ratio

5.38% 4.70% 14.36% -

10 Return on Capital Employed

12.48% 8.49% 47.06% Efficient utilization of capital in business operations.

11 Return on Investment

NA NA -8.59% -


The Statement made in Management Discussion and Analysis report which seeks to describe the objectives, projections, estimates, and predictions may be considered to be forward-looking statements and are stated as required by applicable laws and regulations. Actual results could differ from those expressed or implied and are determined by many factors including global and domestic demand-supply conditions, process, raw materials availability, tax laws, governmental policies, and other statutes which may affect actual results which may be different from what the Directors envisaged in terms of future performance and outlook