Renaissance Jewellery , a prominent jewelry manufacturer and retailer, has announced impressive financial results for the quarter, demonstrating robust growth despite facing challenges from U.S. import tariffs.

Strong Revenue Growth

The company reported a total revenue of Rs. 550.00 crores for the quarter, marking a significant 43% year-over-year increase. This growth was driven by strong performances across both its Direct-to-Consumer (D2C) and Business-to-Business (B2B) segments.

Segment Performance

Renaissance Global's D2C segment showed resilience, generating Rs. 69.00 crores in revenue, a 37% increase compared to the same period last year. The B2B customer brands segment performed exceptionally well, achieving Rs. 394.00 crores in revenue, representing a substantial 67% growth.

Profitability and Cost Optimization

Despite facing headwinds from uncompensated U.S. import tariffs, the company's EBITDA reached Rs. 41.00 crores, growing by 13%. Profit After Tax (PAT) after exceptional items stood at Rs. 19.00 crores, up 20% year-over-year.

Renaissance Global has successfully completed its cost optimization initiatives, including the closure of its Bhavnagar facility. These measures resulted in operating cost savings of Rs. 12.00 crores for the quarter, with expected annualized savings of Rs. 48.00-50.00 crores.

Financial Position

The company's financial position has strengthened, with the net debt-to-equity ratio improving from 0.31 to 0.19 year-over-year. This improvement reflects Renaissance Global's disciplined approach to deleveraging and its commitment to reducing debt further.

Strategic Focus

Sumit Shah, Chairman and Global CEO of Renaissance Global, emphasized the company's priority to grow its direct-to-consumer business both organically and inorganically. He stated, "High margin and low working capital requirements of this business make it an important part of our growth and transformation strategy."

The company is also focusing on diversifying its B2B business by pursuing growth opportunities in key international markets such as the UK, Mainland Europe, and Australia to mitigate geographic risks and foster sustainable growth.

Navigating Challenges

Renaissance Global faced challenges from uncompensated U.S. import tariffs during the quarter. However, management expressed confidence in navigating the situation through supply chain adjustments. The company is also transitioning to lab-grown diamonds, which has contributed to the strong growth in the customer brands segment.

Outlook

While cautious about potential headwinds from U.S. tariff changes and the challenging global macroeconomic environment, Renaissance Global remains confident in its strengths in product design, deep industry insights, and strong distribution capabilities. The company is well-positioned to seize long-term growth opportunities and continue delivering value to its stakeholders.

Renaissance Jewellery , a global leader in branded jewellery, has reported a robust financial performance for the first quarter ended June 30. The company demonstrated strong market demand and execution, delivering exceptional top-line growth despite facing challenges from U.S. tariffs.

Revenue Soars

Renaissance Jewellery's revenue from continuing operations for Q1 surged by an impressive 43% to Rs. 530.00 crore, compared to Rs. 372.00 crore in the corresponding quarter of the previous year. This powerful growth was driven by strong performance across key markets and the continued scaling of the company's Direct-to-Consumer (D2C) business.

D2C Business Thrives

The company's D2C businesses continued their stellar performance, with revenues growing 37% to Rs. 69.00 crore from Rs. 50.00 crore in the same quarter of the previous year. The D2C division is now at an annual run rate of Rs. 305.00 crore, 43% higher than the previous fiscal year.

Profit Impacted by Tariffs

While revenues soared, reported Profit before Tax (PBT) was temporarily masked by external factors. PBT for the quarter stood at Rs. 21.00 crore, an 11% increase from Rs. 19.00 crore in the same quarter of the previous year. This figure includes a significant adverse impact of approximately Rs. 11.00 crore on the gross margin due to uncompensated tariffs on US imports.

Underlying Profitability Surges

Adjusting for the temporary tariff impact reveals the exceptional underlying strength of the company's operations. The adjusted Operational PBT before exceptional items for Q1 stands at Rs. 32.00 crore, representing a remarkable underlying growth of nearly 68% compared to the prior year.

Cost Optimization Drive

Renaissance Jewellery's ongoing cost optimization drive contributed to savings of Rs. 12.00 crore during the quarter. The company successfully concluded its cost optimization and rationalization program with the closure of its Bhavnagar facility in Gujarat.

Restructuring Costs

The company incurred restructuring costs of Rs. 11.97 crore, disclosed as exceptional items, due to the closure of its manufacturing unit at Bhavnagar, Gujarat from April 15.

Strong Balance Sheet

Renaissance Jewellery maintains a robust financial position with a Net Debt to Equity ratio of 0.19 and cash and cash equivalents of Rs. 219.00 crore.

Management Commentary

Mr. Sumit Shah, Chairman and Global CEO of Renaissance Jewellery, commented on the performance: "We are pleased to report a strong performance for Q1, with revenues from continuing operations increasing by 43% year-over-year. This performance is particularly commendable given the adverse impact of tariffs, which we are actively managing."

He added, "While the initial weeks following the tariff implementation were challenging, the situation stabilized, and we have not observed any significant decline in end-consumer demand for jewellery in the US, indicating strong underlying market resilience."

Future Outlook

Despite potential headwinds arising from U.S. tariff changes and challenging global macroeconomic conditions, the company remains confident in its strengths in product design, deep industry insights, and robust distribution capabilities. Renaissance Jewellery is focused on scaling its high-growth owned brand segment and expanding its brand portfolio to deliver sustained value to shareholders.

Additional Information

The Board of Directors has approved consultancy fees for non-executive director Mr. Hitesh Shah, subject to shareholder approval at the upcoming Annual General Meeting. The 36th Annual General Meeting is scheduled for September 18.

Renaissance Jewellery continues to demonstrate its resilience and adaptability in the face of global challenges, positioning itself for sustained growth in the branded jewellery market.