Sky Gold Plans To Onboard Titan As Client By Next March

Sky Gold Ltd. expects to get Titan Co. on board as a client in the next two quarters, the company’s Managing Director and Chief Financial Officer Mangesh Chauhan revealed to NDTV Profit on Wednesday.

The gold jewellery manufacturing company boasts a client portfolio that includes names like Kalyan Jewellers India Ltd., Senco Gold Ltd., Joyalukkas Ltd. and Thangamayil Jewellery Ltd.

Talking to NDTV Profit about the possible deal with Titan, Chauhan said, "They are not our clients right now but we are continuously showing them our products.”

“We have huge manufacturing facilities. Our delivery timeline is 20–45 days, which is very low in the industry. So, we can deliver jewellery to them within 25 days. Over the next two quarters, we are expecting to onboard them,” the top executive revealed.

Titan is one of the biggest players in the retail gold jewellery industry, with brands like Tanishq, Caratlane and Mia.

Commenting on the projections for Sky Gold, Chauhan hopes to maintain a gross margin of around 6% in the next few years.

“We are expecting to sustain gross margins up to 6% in the next few years. But PAT margins will increase 0.5% as we are about to save our finance cost by moving our debt to gold metal loans. So we are targeting our PAT margins to move up to 3.5%,” he said.

Chauhan predicted an upbeat December quarter for the gold industry, banking on the upcoming festive season, customs duty cut, and return value of the yellow metal.

“The December quarter I think will be tremendous for corporates and manufacturers like us who supply to the corporates. The growth is expected to be at 25–30% at the retail levels,” he said.

The gold jewellery manufacturer is also looking to expand outside India and has already marked its presence overseas in markets like Dubai, Singapore, and Malaysia.

According to Chauhan, this will help the company achieve its 100% revenue share target from the corporate client space.

“We are exporting our products to the corporates in Dubai who have 200–300 stores. So the share will increase and they (the overseas market) will also play a role,” he said.

“These three factors will all contribute to get 100% revenue share from the corporate clients business," Chauhan added.

Shares of Sky Gold Ltd. fell 5% on Wednesday to touch an intraday low of Rs 2,524.35 apiece on the BSE. The stock ended the day's trade 3.85% lower at Rs 2,555 on the BSE.