Q1 2027 Sky Gold and Diamonds Ltd Earnings Call Transcript
Key Points
- Consolidated revenue for Q1 FY27 grew 78% year-on-year to INR 2,013 crore, with an annualized run rate of approximately INR 8,050 crore, close to the FY27 guidance of INR 8,100 crore.
- Gross margin improved to 9.3% in Q1 FY27 from 9.1% in Q4 FY26, driven by a higher share of non-22KT jewellery (up to 14%) and studded jewellery (up to 2.1%).
- Operating cash flow turned positive at approximately INR 30 crore in Q1 FY27, a key milestone, with net working capital days stable at around 60 days.
- The company generated a prospective order pipeline of INR 40-45 crore from the UK and European markets after participating in the IJL Expo in London, supporting export diversification.
- Management reiterated its commitment to a zero-salary promoter compensation model starting FY27, linking promoter rewards to dividends and aligning with shareholder interests.
- The appointment of a new CEO, Akash Kalnesha, with over two decades of industry experience, is expected to drive growth in advanced gold and studded jewellery segments.
- The company's revenue guidance of INR 8,100 crore for FY27 was not revised despite the strong Q1 performance, with management indicating a possible revision only after Diwali.
- Working capital days remained at 60 days, slightly above the previous quarter's 59 days, due to increased investment in higher-margin studded jewellery and export business.
- The company experienced a cyber fraud incident in July 2026 involving INR 10.7 crore, with only INR 3.5 crore recovered so far, potentially impacting Q2 financials.
- Gross debt increased to INR 542 crore at the end of Q1 FY27, reflecting higher working capital needs for studded jewellery and export operations.
- The share of advanced gold business declined to 17% in Q1 FY27 from 20% in Q4 FY26, though management clarified this was due to overall volume growth, not a reduction in absolute terms.
- The company's capacity utilization remains at approximately 60%, indicating significant idle capacity that may pressure margins if not fully utilized.
Ladies and gentlemen, good day and welcome to Sky Gold and Diamonds Limited Q1 FY27 Earnings Conference.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference call, please signal an operator by pressing then 0 on a touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Ms. Vidhi Vasa from.
Thank you and over to you, ma'am.
Thank you, Sumit. On behalf of NUFG NT, I welcome you all to Sky Gold and Diamonds Limited Q1 FY27 earnings conference call.
From the management side, we have Mr. Mangesh Chauhan, Managing Director, and Mr. Siddharth Sapani, Chief Financial Officer. I hope everyone had an opportunity to go through our investor deck that we have uploaded on Exchange and the company's website. I would like to mention a short display note before we begin the call. This call may contain some of
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