Goldiam Intl.

Goldiam International reported a robust Q3 FY25, with consolidated revenue reaching ₹288 crores, marking a 41% year-on-year and 104% quarter-on-quarter growth. This strong performance was supported by an all-time high Q3 EBITDA margin of 24.6%, leading to a 62% YoY increase in EBITDA to ₹70.8 crores. Lab-Grown Diamonds Jewelry exports significantly contributed, accounting for 80% of the overall export sales mix in Q3 FY25, up from 58% in Q3 FY24.

The company maintains a strong order book of ₹175 crores as of December 31st, 2024, which is expected to be fulfilled within the next three to four months, providing good revenue visibility. Management expressed confidence that lab-grown diamond prices, especially for low carat diamonds (below three carat), have stabilized with no further depreciation expected. This stability is crucial for maintaining healthy margins, which are targeted at 40-45% post-discounting for lab-grown diamond jewellery.

Goldiam is rapidly expanding its domestic B2C brand, ORIGEM, with plans to open three more stores in Mumbai by March 2025, bringing the total to six in the city. The broader target is to establish 20-25 ORIGEM stores by December 2025, with further expansion to 150-200 stores within the next 3-5 years, focusing on NCR and Bangalore regions after Mumbai. The Mumbai flagship store on Turner Road, Bandra, was formally inaugurated, signaling a strong marketing push.

The initial performance of the ORIGEM stores is encouraging, with the three operational stores already achieving breakeven at the store-level, excluding head office and branding costs. The target breakeven for the general store fleet is approximately ₹30 lakhs of monthly sales per store. Management anticipates that the Indian retail business, combining e-commerce and store sales, could generate ₹90-120 crores within the next 1-2 years, driven by the planned store expansion.

Goldiam has made a conscious decision to lean more heavily on lab-grown diamond jewellery, noting that it sells faster and offers better capital efficiency compared to natural diamonds. In the US market, the company is focusing on increasing 'dollars per store' by upselling customers to larger caratage (5-10 carat diamonds, up from 1-5 carat) and introducing high-end fashion and bridal collections. This strategy aims to double the company's overall business and export revenue within the next four years, with export market growth directionally at 10-15%.

Management emphasized Goldiam's commitment to transparency and governance, highlighting that all export operations are from SEEPZ (SEZ) and do not involve loose diamond circulation, a common concern in the broader diamond industry. They stated that Goldiam is a pure design-based jewellery company with no debt, and its track record of cash generation, dividends, and buybacks demonstrates a focus on shareholder value and clear operations.