We are in the process of consolidating our domestic business by bringing it under thesame umbrella as our international business. This will help us ensure seamless trade andcost optimisation and give us the chance to utilise our vast international experience inthe domestic market.
FY2015 will be remembered for being an eventful and buoyant year. We progressed on ourgrowth journey through customer-centric innovation in our products and services. In syncwith our vision for "being the preferred jeweller to the world" we are focusedon improving the desirability and recognition of our brands. We remained committed tocrafting the finest jewellery for our customers and to maintain our already strong globalreputation.
We remain vigilant of maintaining our design excellence and manufacturing prowess. Ourtechnology skill-sets and domain expertise of 1000 plus craftsmen singles us out as oneof the few domestic jewellery companies with a vast distribution network covering theinternational market. With a rich product line serving multi price-points we have provenour ability to produce volumes in the branded hallmarked jewellery and also to create"made to order" jewellery as one-offs without compromising quality.
Our international business has seen substantial growth over the years with the world'slargest jewellery retailers continuing to repose their faith in us by placing repeatorders. Our business model for serving both domestic and international markets remainsintact. While we have a proven strong global focus we are not leaving any stones unturnedin ensuring our success within the domestic retail business.
HOW WE PERFORMED
In FY2015 we have been able to catei to a variety of customer preferences well andstrengthen our global brand presence and accessibility. While improving the quality of ourservice we delivered a higher level of satisfaction to our customers. Even though ourdomestic retail business faced regulatory challenges in India we recorded net consolidatesales of ' 1735.30 crore in FY2015. Our Net Profit stood marginally lower at ' 43.6 crorevis-a-vis ' 50.38 crore earlier whereas our EBITDA grew nominally to ' 158.6 crorecompared to ' 157.6 crore in FY2014. Given the tough market conditions faced within theindustry these were commendable results. Going forward our healthy order book of ' 9690million bodes well for FY2016.
LEVERAGING VOLUME INCREASE
The branded segment in our international business making up a large part of ourrevenue piemaintains a steady traction in order volumes. Our healthy order pipeline isfortified by signs of positive consumer sentiments helped by the rise in household incomeand the economic recovery in key global markets. Responding to the growing demand indiamond studded branded jewellery our product mix is gradually shifting from gold todiamond based jewellery.
NEW BRANDS NEWER GEOGRAPHIES
We aim to strengthen the emotional connect and loyalty of our customers towards ourbrand. The Company's focus to sell branded and co-branded products has proven to be wellworthwhile.
We continue to increase our presence in international markets through reputed jewellerychains in the continents of Africa North America Europe and Australasia. In FY2015 welaunched our exclusive collection of branded bridal and fashion jewellery internationallysome of which included Monique Lhullier Heart to Heart Angel Sanchez and Zac Posen. Inthe future we mean to expand our portfolio with branded products which will comprise alarger share of our revenue.
ASSET LIGHT EXPANSION
Our shop-in-shop and brick & mortar format stores continue to do well. We are alsoconserving our capital by introducing an asset-light franchise model. Our strategy towardsthis model will help us expand our reach and deliver improved returns to our shareholders.We are also in the process of consolidating our domestic business by bringing it under thesame umbrella as our international business. This will help us ensure seamless trade andcost optimisation and give us the chance to utilise our vast international experience inthe domestic market. These changes we believe will give us additional growth drivers.
CATERING TO GEN-Y
E-commerce is gradually establishing itself as a true alternative mode of consumption.In line with this trend we entered into tie-ups with leading e-commerce platforms suchas Amazon Snapdeal during the year. With online jewellery sales clocking 25-30% upwardsyear-on-year we wish to ensure that we have the best e-strategies in play.
Our past successes guide us to strive even further. Going forward we will continue toadopt pragmatic and sound strategies strengthen our competitive edge and further enhanceour leadership position in the market. We take this opportunity to express our sincerethanks and deep appreciation to our share owners employees and customers for theirsupport.
Chairman & Managing Director