KDDL Limited

Kamla Centre, SCO 88-89, Sector 8-C, Chandigarh - 160 009, INDIA. Tel: +91 172 2548223/24, 2544378/79
Fax: +91 172 2548302, Website:www.kddl.com ; CIN-L33302HP1981PLC008123

Ref: KDDL/CS/2025-26/15 Date: 28th May, 2025

National Stock Exchange of India Limited BSE Limited,

Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers,
Bandra Kurla Complex, Bandra, Dalal Street, Mumbai - 400001
Mumbai - 400 051

Trading Symbol : KDDL Scrip Code : 532054

Subject: Regulation 30 of the SEBI (LODR) Regulations, 2015 – Transcript of Earnings Conference call
Dear Sir/ Madam,

With reference to captioned subject, we are enclosing herewith transcript of Earnings Conference Call held on
Thursday, 22nd May 2025 to discuss operational and financial performance of the Company for Q4 & FY25.

Kindly take the same on record.

Thanking you,

Yours truly
For KDDL Limited

Brahm Prakash Digitally signed by Brahm

Prakash Kumar

Kumar Date: 2025.05.28 23:40:07

+05'30'

Brahm Prakash Kumar

Company Secretary
 “KDDL Limited
Q4 & FY ‘25 Earnings Conference Call”
May 22, 2025

“E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the
stock exchanges and the Company website on 22nd May 2025 will prevail.”

MANAGEMENT: MR. YASHOVARDHAN SABOO – CHAIRMAN AND

MANAGING DIRECTOR MR. SANJEEV MASOWN –
CHIEF FINANCIAL OFFICER AND EXECUTIVE
DIRECTOR
SGA – INVESTOR RELATIONS ADVISOR
 KDDL Limited
May 22, 2025

Moderator: Ladies and gentlemen, good day and welcome to KDDL Limited Q4 and FY '25 Earnings
Conference Call.
This conference call may contain forward-looking statements about the company which are
based on the beliefs, opinions and expectations of the company as on date of this call. These
statements are not the guarantees of future performance and involve risks and uncertainties that
are difficult to predict.

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
in the conference call, please signal an operator by pressing star then zero on your touch-tone
phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Yashovardhan Saboo, Chairman and Managing Director.
Thank you. And over to you, Mr. Saboo.

Yashovardhan Saboo: Thank you and good morning, everyone. Many thanks for joining us on the KDDL Limited Q4
and FY '25 Earnings Conference Call. I hope you've had the opportunity to review our financial
results and the investor presentation which was posted on the company's website and stock
exchanges recently.

I'm joined today by our CFO and Executive Director, Mr. Sanjeev Masown; and SGA, our
Investor Relations Advisors. I'll start with a few words about the macroeconomic situation. Over
the past year, the global economic environment has been marked by a clear and concerning
increase in volatility and slowing growth. As we moved into FY '25, rising geopolitical tensions
and shifting policies have added to the uncertainty, with the global economy facing renewed
pressure from such uncertainties, tariffs and nontariff barriers and fast-changing alignments in
the global financial and trade infrastructure.

We see this transformation rather as an opportunity, and our strategies are now designed to meet
the evolving market realities and expectations. Let me begin now with the watch component
business. As many of you are aware, the Swiss watch industry has experienced a prolonged
slowdown largely driven by macroeconomic uncertnities, inventory situation, which has been
corrected; subdued consumer sentiment; and tightening discretionary spending across all major
economies.

The contraction in demand was heavily influenced by China and Hong Kong, which are among
the largest markets for the watch business, where the market declined by 25.8% and nearly 19%,
respectively, over the previous year. The total volume of watches exported by Switzerland
declined by 9.4% to 1.6 million units. Export volumes were at a historic low of 15.3 million
watches exported. The volume decline was witnessed in watches for all price points.

While the export environment for Swiss watches remains challenging, and consequently, also
for us, we are monitoring the situation closely and remain optimistic about the future. Based on
current indicators and market feedback, we anticipate a gradual revival, beginning in the second
half of FY '26.

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 KDDL Limited
May 22, 2025

At KDDL, we have responded strategically to these headwinds, which I may mention is not for
the first time. We experienced something similar several years back, in FY'15, '16. We've
responded to these by expanding our product offerings in mid- to high-value segments. This
conscious pivot towards value-driven category is showing encouraging traction.

While overall export volumes have declined, our approach has enabled us to strengthen our
relationships with existing clients and also to open opportunities for higher-margin growth in
new geographies. For example, we are actively exploring expanding our reach beyond the Swiss
markets, to other European countries, to further enhance our export strategy.

With 4 decades of delivering precision, consistency and quality, KDDL is now well positioned
to engage with a broader set of global watch brands. We are leveraging this reputation to explore
and initiate relationships with emerging non-Swiss customers in various European and non-
European countries where we see significant future promise.

In the domestic market, the outlook remains strong and consistent. Demand visibility continues
to be positive, supported by healthy consumer sentiment and strong order inflows across key
product lines. Our volumes have remained robust, and we are seeing an encouraging rise in
average realization. A combination of selective price adjustments and a focused premiumization
strategy is driving this improvement. Our emphasis on value-added segments reinforces our
position as a trusted partner in the domestic watch component ecosystem.

The recent Indian rupee-to-Swiss franc currency fluctuations have been favorable for our
company. The total revenue of our watch component business comprising of watch hands and
watch dials declined by nearly 20% compared to the previous year majorly due to a decline in
export revenue by 28%, whereas the domestic market revenue grew by 13% during the year.

Our precision engineering business, which I will discuss now, continues to demonstrate very
healthy momentum largely driven by a robust export demand and a consistent track record of
exceeding customer expectations. We have fortified our already strong reputation in both the
established and emerging international markets.

I am pleased to share that, in FY '25, we recorded a 55% year-on-year growth in revenue, taking
our top line to INR147 crores. This solid performance reflects the strength of our business
fundamentals and the trust that our global clients place in us. Importantly, the momentum
remains strong and we are optimistic about our growth trajectory moving forward.

In anticipation of future demand and to support our growth ambitions, we have secured a 28,000-
square-foot shed on lease in Bengaluru, not far from our existing facility. This new location
currently under development will be operational in the second half of FY '26. We continue to
focus on sectors that offer high entry barriers and long-term growth potential like alternate
energy, comprising of electrical vehicles and energy storage systems; aerospace; automotive;
and electrical segments.

These sectors not only allow us to align with our technical strengths but also offer robust export
opportunities. Exports, I may repeat, remain a central pillar of our growth strategy; and we are
confident that our proactive approach will yield substantial benefits in the years ahead.

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 KDDL Limited
May 22, 2025

Our bracelet division is integral to our export-driven strategy and continues to gain strategic
importance within the group. Dedicated exclusively to the export market, this division reflects
our commitment to building a globally competitive manufacturing footprint in the watch
ecosystem.

At present, the capacity utilization stands at about 50%, indicating substantial headroom for
growth. With continuous improvements in operational efficiency and recovery of the market
conditions, we anticipate capacity utilization rising to about 65% in FY '26. We are confident
that this division will emerge as a key contributor to our export portfolio in the coming years.

About our packaging division. This division continues to enhance revenue by adding new
customers and segments. During the year, the revenue improved by 13% compared to the
previous year. Our initial focus is mainly on the domestic market, where we see robust demand
and steady inflows of RFQs.

In parallel, we are targeting international brands with a presence in India, offering premium
packaging solutions tailored to their requirements in India. This enables us to meet their quality
expectations while offering the advantages of a reliable domestic supply chain. While the
business is still in its early stages, we are seeing promising traction. Export opportunities are
also on our radar. And we are actively building capabilities and partnerships to support this next
phase of growth in the immediate future.

In conclusion. While FY '25 was a year of correction in some of our segments, KDDL stands at
a strong and strategic inflection point. Each of our business divisions, be it watch components,
precision engineering, bracelets or packaging, is aligned with our long-term vision of
sustainable, export-led, diversified and profitable growth.

As we step into the next phase of our journey, we remain confident of our ability to scale new
heights and deliver greater value across customers and markets. In FY '26, we expect our revenue
to grow in the range of 15% to 20%, majorly driven by recovery in the international watch
market, growth of our precision engineering business and enhancement in the utilization and
growth of the bracelet and packaging businesses.

I would now like to invite Mr. Sanjeev Masown to update you on the company's financial
performance. Thank you.

Sanjeev Masown: Thank you, Mr. Saboo. Good morning, everyone. Let me take you through the company's stand-
alone -- first of all, the stand-alone financial performance. During the quarter 4, our revenue was
INR102.3 crores. And the -- overall for the year, the revenue was INR384 crores, compared to
the last year revenue of around INR359 crores. EBITDA for quarter 4 stood at INR19.4 crores,
with an EBITDA margin of 19%, while for FY '25 full year, EBITDA was INR88.5 crores --
and EBITDA margin of 23.1%.

PAT for the quarter 4 was at INR8.2 crores. And for the full year FY '25, the PAT was at INR49.2
crores. Profitability during the year, as already shared by Mr. Saboo, was majorly impacted due
to shift in the product mix, the decline in the watch component export revenue and the increase
in the precision engineering business revenue.

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 KDDL Limited
May 22, 2025

During the last year, financial year '25, we incurred a capex of around INR30 crores. And in the
coming year, we expect to do a further capex of around INR35 crore.

Moving to the consolidated financial performance. The total income for the quarter 4 FY '25
was at INR431 crores. And for the full year, it was INR1,695 crores. EBITDA for the quarter 4
at the consolidated level was INR75.9 crores with an EBITDA margin of 17.6%, while for the
full year FY '25, EBITDA was INR307 crores with an EBITDA margin of 18.1%. PAT for
quarter 4 was at INR31.6 crores; and for the full year, at INR142.3 crores.

With this, I open the floor for question-and-answers. And I request all the participants to kindly
restrict the questions to the KDDL manufacturing business. As for the retail business, already a
separate investor call is held, where the detailed answers are given. With this, the floor is open
for the...

Moderator: The first question comes from the line of Amit Ajicha with HG Hawa.

Amit Ajicha: Yes. Sir, can you share some visibility of revenue mix and order, like from the precision
engineering segment?

Yashovardhan Saboo: Sorry. Say that again -- Amit, why don't you ask all your questions so we can answer them all at
one go?

Amit Ajicha: Okay. And sir, second question would be connected to precision engineering only. Like, what
are the EBITDA margins for the current year? And what are you planning, the EBITDA margins
for the precision segment for FY '26?

Yashovardhan Saboo: Can you just repeat your first question again?

Amit Ajicha: The -- can you share the revenue mix and order book visibility from precision engineering
business?

Yashovardhan Saboo: Okay. So these are your two questions.

Amit Ajicha: Yes.

Yashovardhan Saboo: Okay. Sanjeev, I'll let you answer that.

Sanjeev Masown: As we already shared in the -- Mr. Saboo's speech, that the revenue of precision engineering in
the last year was INR147 crores. And regarding the order position, in our earlier calls, we have
given a long-term indication for the precision engineering business where the growth of business
will -- over the longer period, will be in the range of 25%. So we still maintain that.

And accordingly, the order positions for getting that type of growth in the coming year are
already there. Regarding the EBITDA margins, the EBITDA margins are in the range of 19%,
20%. And we expect that these type of margins will be maintained in the coming year.

Moderator: Next question comes from the line of Vijram, an Individual Investor.

Page 5 of 18
 KDDL Limited
May 22, 2025

Vijram: First of all, I have been an investor for a long time. So very well done. And love the way you're
hedging your businesses in terms of managing all the downturn and everything else. I just had a
question on Favre Leuba. I mean I'm a shareholder in both Ethos and KDDL, but I just want to
know: Where does Favre Leuba sit? And can you shed some light in terms of production of
Favre Leuba and the plan for '26?

Yashovardhan Saboo: Are there any other questions? I'm just requesting, if there are other questions -- okay.

Vijram: The second question is really around your guidance of 15%, 20%, just in terms of where does
it stem from. I mean you have mentioned the slowdown, and I think everyone gets that. Where
is the confidence for the 15%, 20% coming from? If you could just shed some light. I know you
did mention some of it in your opening speech.

Yashovardhan Saboo: Okay. So let me answer the Favre Leuba question first. It's a slightly long answer, so I'll request
everyone to bear with us on this, right? So Favre Leuba is, on the one hand, a very strategic new
sort of business, but it's a business that we are pretty much familiar with. So Favre Leuba, on the
one hand, requires knowledge about distribution and about watch brands, which we have in our
subsidiary company Ethos.

And the large part about launching a new brand with products Swiss made is about being able
to design and create product components for it, again where on the back end we have a huge
experience with dial, hands, which are by the way very important because a lot of the creativity
and the value of a premium watch. And dial, hands and bracelets is the very important part of it.
Watch cases is the part that we are not doing, but in the future, it's a strategy, that we will make
watch cases as well.

So Favre Leuba really brings in the point where we are starting a company to own a Swiss brand;
and not only own it but actually to be able to control both sides and therefore the entire value
chain, from manufacturer of components, eventually to manufacturing the watch and its
distribution. Distribution in India, we are very familiar with. We will get -- we will know and
we will learn about distribution globally through the -- Silvercity Brands, which is establishing
the global network for Favre Leuba.

And over time -- I just want to say, over time, look what it allows us to do. It allows us to
understand and learn fully the entire value addition chain of a watch brand, of a Swiss watch
brand. This puts us in the same sort of league as many of the other groups in Switzerland in the
Swiss watch industry which are verticalized. Richemont group is one of them and similarly, so
they understand the distribution. They understand the manufacturing, the back end. And we are
on the way to do that.

And what this means is, once Favre Leuba is established and we understand the various edges
of it, it gives us the opportunity to expand the brand mix, perhaps for a higher-end brand or
perhaps for a lower-priced brand than Favre Leuba. So it's the start of a very, very exciting and
a very -- let's say, a story with a great potential going forward.

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 KDDL Limited
May 22, 2025

It's not going to happen overnight. It will take time, but it needs time to create anything
meaningful. Because we don't want to do it superficially. We want it like everything we do. We
want to get to the root of it and do something that adds value.

So these are just a few thoughts about what is the underlying strategy of Favre Leuba, all right?
Now how is it going? Great. There's a great response. Distribution has started in India. It has
been launched. We are falling short of the product. So I think there was an underestimation of
the kind of response the market would give.

So in India, we are doing very well. We are actually rushing to establish, to shore up the supply
chain. For Swiss watches, it's rather -- it's somewhat of a long process because the quality and
the design requirements require that time. You can't take off -- things off the shelf and put it
together, right?

It's not like a quartz watch which you just put together in a kit. Everything has to be designed. It
has to work perfectly and it has to work perfectly for 20 years, all. But it's happening. You're
going to see a lot of Favre Leuba in India and everywhere in the world in the coming 12 to 18
months.

And I think our plans are extremely robust for Favre Leuba. I don't know if that answers your
question, but I'm glad to answer if there's anything more specific. As far as the guidance of 15%
to 20% is concerned, a lot of it -- not a lot of it, but one part of it, of course, depends on when
and how the international watch market revives.

I think we are probably close to the bottom and therefore our anticipation that in the second half
of this year, things will start to look up. It's not going to bounce back like very, very strongly,
but it's going to be a clear and a definite sort of recovery. That said, we are already -- as I
mentioned in my earlier remarks, we are already sort of working on expanding our offering to
some geographies that are not as impacted as the Swiss watch market.

For example, the German -- the emerging watchmaking in Germany, in Scandinavia and some
other interesting geographies. These will be small compared to the Swiss market, but
nevertheless, these are hedges. And you are right. One of our underlying strategies has been to
be able to hedge risks.

In every business, there will be a downturn from time to time. There will be some risks, but our
strategy and our skill as managers and as leaders of a business lies in being able to understand
that this will happen. And when this happens, are we hedged? Are we flexible to be able to not
only ride this downturn, but come out stronger.

So I believe 15% to 20% is a good range. If things recover quickly as expected, we'll be closer
to 20%. If they are a little bit delayed, we'll be closer to 15%, but that's pretty much the range
we can give now.

Sanjeev Masown: I would like to add into this that, as you may be remembering, in the previous year our bracelet
business and the packaging business started in the second half of the financial year. So this year,

Page 7 of 18
 KDDL Limited
May 22, 2025

the full impact and the revenue of that will be there. Plus there is increase and the enhancement
in the capacity utilizations of both these businesses.

Vijram: Great. Thank you. I just had one other question around Favre Leuba. In terms of economic
interest, how does it split. So will if Favre Leuba should sell in India now. Obviously there's the
distribution with Ethos, but in terms of economic interest, how much flows to KDDL as a
company?

Yashovardhan Saboo: Well, the distribution in India is -- Favre Leuba has a contract with Ethos, as an exclusive
distribution arrangement. So that is that. Otherwise, Favre Leuba as a company under the
Silvercity brand is managed by the Swiss team, who are doing a fabulous job. And as you know,
KDDL owns a majority. And Ethos has a minority position in that, minority shareholding.

Vijram: Got it. So any profit that Favre Leuba will...

Yashovardhan Saboo: Between KDDL and Ethos. Sorry.

Vijram: So all the profit that is earned by Favre Leuba will obviously to the extent of shareholding of
KDDL, will come into KDDL India, this year's books?

Yashovardhan Saboo: Yes. On a consolidation level, that's right.

Vijram: Perfect. Super. That’s really good again Mr. Saboo. Thank you very much for your clarity and
all the very best.

Moderator: Thank you. Next question comes from the line of Rohit Mehra with SK Securities. Please go
ahead.

Rohit Mehra: Hi, sir. Thank you for the opportunity. My question is what kind of demand trends and customer
responses are you seeing in the domestic and international packaging business.

Yashovardhan Saboo: Okay. Any other questions?

Rohit Mehra: Just follow-up question that what is our long-term vision in terms of revenue in this segment?

Yashovardhan Saboo: So, let's say, packaging or luxury packaging, which is the segment that we are focusing on, there
is robust demand coming from, of course, the main part of it is from the watch segment. There's
the jewellery segment. And I don't have to tell you where branded jewellery is going in India
and abroad. So we are seeing a very strong demand. Sorry for the disruption. Rohit I am going
to answer your question.

So as I was saying, there is a robust demand from watch, jewellery and other segments in the
luxury packaging. And at an international level too, there is the demand. As I've mentioned in
my speech, there are many brands, international brands, that are now selling in India. And many
of them are still bringing their packaging from the Far East, to China or whatever.

And obviously, it makes a lot of sense, when certain volumes have already developed in India
to procure the packaging in India. You save a lot of money and it's cheaper and it's, of course, a
lot less logistics involved. And this is a market that we are getting a great response from.
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 KDDL Limited
May 22, 2025

Of course, we have to meet their design, quality and all their homologation and ESG conditions,
so that is happening, but we are seeing the impact of that and you see the impact of that in the
numbers this year. The revenue numbers again we are looking at growth upward of 20% CAGR.

And I think this is sustainable for a good 5 to 10 years in the future anyways, because we see
currently a great demand in India from domestic and international brands, but also direct export
to Europe as well as to the Middle East. Remember that there's a huge jewellery market or a
market for branded jewellery in the Middle East. And almost all of them are exporting all --
importing all their packaging from China. And our goal is to actually take a share of the market
from them.

Moderator: Thank you. Next question comes from the line of Devanshu Bansal with Emkay Global. Please
go ahead.

Devanshu Bansal: Sir, you've provided a 15% to 20% growth outlook for FY '26. And whatever I understand is
that the revenue mix shall shift towards categories like bracelet, precision engineering and
packaging. Given this changed revenue mix, what is the margin expectation for FY '26? That is
question number one.

Second is on Silvercity Brands. In FY '25, what is the exit run rate of some of the operational
loss, as of now? And what is the expectation of this loss in FY '26 for complete year? And last
question, again on Silvercity. Any capex investment that we plan to do within that subsidiary in
FY '26? These are my three questions, sir?

Yashovardhan Saboo: Okay, I'll let Sanjeev answer the question on the margin expectations. Let me answer first the
question relating to Silvercity Brands. There is no major capex planned in Silvercity this year.
And in terms of loss, I think, on FY '25, we were below the budgeted loss. Remember that in FY
'25 there was a delay in the launch. So we were not able to deliver the product. I'd mentioned
that -- challenges in developing the supply chain fast enough, but after March, it has started
coming.

So I think our numbers for this year will pretty much be on target. We are trying to do better
than what we've budgeted. There will still be a loss, for sure. I'm not able to quantify the loss
exactly, but it is as planned. It's part -- to be honest: There will be a loss this year. And there will
be a diminished loss next year, but that's part of building a brand globally. And I think, from FY
'28 onwards, it will start to -- the loss will disappear.

But it is as per budget. And I can -- I'll have to check with Silvercity exactly what is the loss, but
it's meant to be smaller than the loss that was originally budgeted.

Devanshu Bansal: This is encouraging. Any specific market apart from India that we are targeting, from Silvercity,
in the next 2 years per se?

Yashovardhan Saboo: A lot of markets, so -- a lot of markets we are targeting. I mean, of course, India will be an
important market because we know this market the best as a group, but a lot of markets are being
targeted. And a lot of markets are -- have already been signed up and products are there.

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 KDDL Limited
May 22, 2025

So I think, Japan, it is there. In the U.K., we are in discussions. In Italy, it has been signed up.
In the Middle East, there has been a sign-up. So there have been a lot of sign-ups already and
products. And we will see.

As I said, that -- we underestimated the kind of market response that there would be. So now for
the products, as they are coming in, there's a bit of a struggle as to who's going to get the products
because Ethos wants the products because the sell-out is extremely good, but we've also got now
the whole international structure.

We've exposed the brand to retailers and they want it as well, so actually, the real effort right
now is to get more products online as soon as possible.

Devanshu Bansal: Understood. And on the margin expectations...

Yashovardhan Saboo: Sanjeev, would you like to offer on the margin expectations?

Sanjeev Masown: Devanshu, regarding your question of the margin expectations for the coming year. The last
year, our EBITDA margins was around 23%. And with the growth estimated in the range of
15% to 20% and majorly driven from the precision engineering, recovery into the watch
component business as well as the bracelet and the packaging business, we expect the EBITDA
margins to remain broadly in the similar range in the coming years...

Devanshu Bansal: Very clear. Sir, can I have one follow-up question on Silvercity, if you allow? Sir, I also wanted
to understand the current price positioning of the brand launch. As of now, what is the price band
that we have launched? In which category of luxury watch of -- the new models have been
launched? So these are the 2 questions that I have.

Yashovardhan Saboo: That's a great question. And basically, to answer it simply, it's in the price point of CHF 2,000
to CHF $4,000; $2,000, let's say, okay, $2,000 to $4,500. This is the price range in which we
have launched it, right? This compares -- this is below TAG Heuer. This is around the same
price range as Oris or something like that, right?

Now if you know the brands, you know what I'm talking about. What is interesting is not only
to compare the price. What is interesting is to compare what Favre Leuba is delivering at this
price. What is the movement? We are delivering a La Joux-Perret movement. For what level --
that is like you have a fabulous movement, whereas every competitor has a much -- not an
inferior movement.

None of the movements are inferior, but in terms of specifications, they are not as good as La
Joux-Perret movements. In terms of the case design, see-through back; a plated -- a machined or
an engraved rotor, a customized rotor, right; customized crowns; a fantastic designed and
executed products in dials, hands, cases.

So if you do a like-to-like comparison what we are offering for, let's say, CHF 4,000, most
competitive brands, you will find that between CHF 5,000 and CHF 6,000. So like-to-like
comparison on a brand and you do quality and specifications.

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 KDDL Limited
May 22, 2025

We are 20% to 25% cheaper than most other Swiss brands in this category, so -- and that's what
-- that has been commented upon by all international media, great value for money, great quality.
And that's the reason why we are getting this great response.

Devanshu Bansal: Very encouraging to hear, sir. I totally agree. Product value proposition is a very key point in
terms of gaining traction. And we are seeing very good examples of such brands doing very well
in India as well.

Moderator: Next question comes from the line of Rishi Maheshwari with AKSA Capital.

Rishi Maheshwari: This is very heartening, to know your optimism given the opening remarks of a slight back-
ended recovery. So my question was related to understanding the precision engineering
department, division, while you mentioned 15%, 20% growth is also a result of the bracelet
division accentuating their growth in this year versus only half of last year.

So is the precision engineering also expected to grow at about 15% to 20% in this year? Help us
understand. What are the areas of growth? Given that the other -- in auto ancillary, for instance,
we are not -- other companies are not showing as much optimism as perhaps you are showing.
Your other divisions, if you can throw some light on.

My second question is on certain numbers that you had earlier -- given in earlier calls. The
bracelet manufacturing division was -- had a capacity of 75,000 bracelets. Are we looking to
enhance it given that you're saying, next year, you will be closer to higher utilization? And the
third part was to understand on the packaging.

This had a capacity of 100,000 units as well, as far as I understanding goes, so if there is -- given
the heightened growth that you're looking over there, is there any reason to believe that there is
capacity enhancement that you're looking at it?

Yashovardhan Saboo: Okay, I'll answer the last 2 questions; and then invite Sanjeev to answer the first one, on the
overall growth. I think, in capacity of bracelets, it's right. It's 75,000, but -- and there is, there
are plans to enhance it using some balancing equipment, but it's important to understand that it
also depends on the product mix a lot, right?

So if you have simple bracelets or simpler bracelets, this -- you could easily make 90,000 or
100,000. For the kind of bracelets that we have currently, it's probably closer to 90,000 than
75,000, right, but there is a plan to enhance it, probably by the end of this fiscal year. And we
expect that the capacity utilization will go to about 65% of this 90,000. The packaging unit, I'm
not sure if we have a capacity of 100,000, but it's much more than 100,000.

Sanjeev Masown: New unit.

Yashovardhan Saboo: The new unit, only the new unit, yes. So the new unit has been established, which came into
production, I think, in October. And here I think we will get also close to 60% or 70% capacity
utilization during this year. And that is going to help in, of course, contributing to the overall
growth.

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May 22, 2025

Sanjeev Masown: Rishi, in basically these types of business, either precision engineering or packaging or bracelet,
it's not a question of capacity creation and the addition of the capex. Mainly it is a question of
how we are able to satisfy the customers, bring the product range through their quality
certifications and the sustainability of the product.

So this is a long process. Similarly, in the packaging, as we have recently put up this capacity,
once we reach to the -- near to the capacity levels of the new customers and the new product
range, then we will think of another round of the capacity increase. Regarding the precision
engineering business, you have asked whether the growth will also be in the range of 15% to
20%. Our expectations are there -- that it will be more than that.

Rishi Maheshwari: Very encouraging. My -- if I can just briefly ask one more on the bracelet. How many customers
do we have in the bracelets division?

Yashovardhan Saboo: In the bracelet division...

Rishi Maheshwari: Yes.

Yashovardhan Saboo: If you've been part of earlier calls, you know that this -- the bracelet division was set up in
collaboration with one customer, who supported us to set up...

Rishi Maheshwari: Right, right. That is right...

Yashovardhan Saboo: And right now we have that customer. We have that one customer. As our production expands,
we are free to go to other customers, provided this one customer able to meet -- or we produce
more than the needs of this customer, which could happen this year, but let's see how much this
customer will actually lift.

So I believe, in the years to come, we will work with multiple customers. This year, we will be
mostly with this one customer or some other customers of the same group. Because this customer
is part of a conglomerate group, the LVMH Group. And they have more brands than just one
and they are also looking at starting to buy from us.

Rishi Maheshwari: Okay, wonderful. My last question was, would be on Favre Leuba. In a small conference that
you had held earlier, you mentioned that your aspiration to go there is about 100,000 units per
annum. That is the kind of aspiration at some point in time. Does that aspiration still hold given
the early demand trends that you've seen? You've spoken very highly...

Yashovardhan Saboo: Absolutely.

Rishi Maheshwari: Indicative time line, do you think that is possible by, say, FY '30 or so?

Yashovardhan Saboo: That's hard to say, but I also don't want to say, "Yes, it's going to be in the distant future. So FY
'40," no. We're going to do it fast, but building a global brand, it's hard to predict very precise
time line. 2 years from now, we should be able to predict that more accurately.

Rishi Maheshwari: All right.

Yashovardhan Saboo: I think a lot will depend on how long it takes us to get to 10,000.
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 KDDL Limited
May 22, 2025

Moderator: Thank you. Next question comes from the line of Ajay Surya with Niveshaay. Please go ahead.

Ajay Surya: Thank you for the opportunity and congratulations on the performance despite the overall
environment. And the commentary is positive. I have a few, set of questions. And sir, if I look
at our business mix, so last year, precision was around 25%, and this year, it has increased to
about 40%. And margin profile, as you mentioned, that -- in the precision segment is a bit lower
than the watch division. And if I look at -- our gross margins have declined significantly this
quarter. So I wanted to understand the reason behind this. And is it kind of a one-off? Or I just
wanted to know more on that.

Second question is, sir, in the watch component division as well, the watch bracelet division has
been increasing. And it has started to contribute from this year itself. From the data which we
have even to gather internally, we are providing, I guess, 2 SKUs in the watch bracelet, but the
pricing which we get, there is a stark difference of maybe a 10 times difference in the 2 SKUs
which we provide. And in the recent quarters, maybe the lower price band has been of much
more volume. So just wanted to understand more on this part. Like, how many SKUs, going
forward, are we planning to do? And what price band are we targeting?

Next question is, sir, in the opening commentary you mentioned that we are also now moving to
maybe non-Swiss geographies and the Europe on other part of the world. So wanted to
understand, like, if you can highlight, how is the watch industry overall progressing?

Like, is it moving away from the Swiss watches? Or is it losing its charm? Or is it that newer
geographies have higher growth, which is why KDDL stand-alone business is targeting that
segment?

And sir, last question. On the precision engineering, the way we have grown over the years is
quite robust. And we are expanding further in this and, if I get the amount right, close to INR35
crores. Sir, wanted to understand, have we cracked any new customer or new segment under
this, like maybe the aerospace or the automobile side?

Because again -- is it like one single customer is driving this division for us as of now? So just
wanted to know your thoughts. Is there any risk of customer concentration on this...

Yashovardhan Saboo: Right. We got that, Ajay. Ajay, we got that. I'll answer the -- your 2 questions. And then I'm
going to let Sanjeev answer the first one.

Yashovardhan Saboo: Bracelet data. I think you are misreading the data. There are SKUs. I think the lower-value SKU
you are talking about is probably a bracelet component. The bracelet consists of the main
bracelet and it consists of two end pieces. Those are end pieces that link to the watch case, and
then there is a buckle.

So they are shown as separate SKUs, but eventually they all get together to form one bracelet,
right? So I don't think you can come back and say there's more volume of lower price and so on.
In the very early stages, we were not providing the buckle. The buckle was provided by the
customer. Now we are providing the buckle as well, and the end pieces. And therefore, you see
this, but eventually they all get into one sort of bracelet.

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 KDDL Limited
May 22, 2025

Currently we are doing 3 models of bracelets, and so -- but this is going to grow. Of course, it
depends on what the customer wants right now. So as I said, we are right now dealing with one
customer, but these will grow. So I hope that clarifies the question about SKUs and pricing.
There's not that much difference in prices, but on the bracelets when you take it as a overall one
set which comprises one bracelet.

Second point was about watch markets in other countries. It's not that Switzerland is declining.
Other countries, there are some brands and some watchmakers who also now are coming up.
Remember that, the watchmaking tradition, it was not exclusive to Switzerland. Watchmaking
tradition started in U.K. Watchmaking, as a history, it started in U.K. and France; and then it
spread to Switzerland. It spread to Germany and it spread to Scandinavia.

So these countries are now reviving some of their watchmaking traditions. And of course, don't
forget Japan. Japan always had a watchmaking tradition, and that is also reviving. And from
Japan, it's going to some other countries. USA, by the way, had a strong watchmaking business
in the '20s and '30s. And some of the brands are also now reviving in USA.

And obviously, now the make in -- "Make America Great Again" is a fillip to some U.S. brands.
So that is what is happening on the watch market. Switzerland still remains, by far, the most
important and the most valuable market for luxury and premium watches. Sanjeev, the other two
questions, you can answer.

Sanjeev Masown: Ajay, regarding your question of lower margins in the quarter 4 of the financial year '25. Yes, to
some extent, you have rightly captured that the precision engineering business revenue in the
previous quarter was around 40%. That is one reason of lower margins in -- at the overall level.

Number two, in the quarter 4, the watch component business revenue is broadly in the range of
50%. The other revenue is from the bracelet and the packaging business, which are at the nascent
stages of the ramp-up, where the costs are there. And there also the margins are lower. As we
move up in the coming quarters, this recovery and the normalization will be there.

And the EBITDA margins which you have seen in the quarter 4 are like a one-off cases. You
will see the improvement over there. Number two, at the year-end, there are some one-off
expenses which are accounted only at the year-end results.

Regarding your question of the new customers being added into the precision engineering
business. This is part and parcel of the business. We keep adding new customers, new segments,
new geographies. I think it is not dependent only on one customer. Yes, at some point of time,
some customers have a larger share or the larger revenue for the business. So -- but I would not
be in a position to disclose the names of the customers, but we keep adding the new customers
from the different geographies.

Ajay Surya: Got it, sir. Thanks for answering all the questions in detail. All the very best for future.

Moderator: Thank you. Next question comes from the line of Jagdishwar Toppo with Japa Investment
Adviser LLP. Please go ahead.

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May 22, 2025

Jagdishwar Toppo: Yes. Good morning, sir. Thank you for this opportunity. I would also refer to your presentation
in December '24 on business outlook. The -- so my first question will be, back then, you had
stated that China One is positive but waning. Now we are in May, so much has happened in
between in terms of trade tussle and all. So, what the outlook, you know, if China Plus One still
remains positive or it's become stronger or still waning. So that's question number one.

And you also mentioned America is also wanting to invest in their watchmaking industry. So in
the context, could you explain it a little bit- with a little bit more color? Now my question number
two is if I refer to your slide in your presentation of the business outlook. There are, I guess, 7 -
- 4 market segments were mentioned. And 3 main product groups were mentioned.

Now, in the segment, along with aerospace, defense is mentioned as well. In EE, electrical and
electronics are mentioned as well. I would not like to go to the product group at this time, but I
would like to know. I mean, out of this 4 segment, which were the segments that outperformed
this year and contributed to the most in terms of the revenue in that particular segment,
engineering segment? And which segment also looks like the most promising outlook for the
next few years?

The third is basically a suggestion. I mean you had recommended that, if somebody wants to
visit your factory, they are welcome. So I would also like to visit along with some of the analysts.
I mean, could you suggest when it can be arranged and what the process is for the same? Thank
you so much and best luck to you.

Yashovardhan Saboo: Thank you, Jagdish. Yes, we will organize visit to our factories. We very much like to welcome
analysts, shareholders. I think it's important to understand the business and it makes the whole
interaction much more meaningful. So we will plan that with SGA, and I'm sure they will get in
touch with you.

Sanjeev will answer that question regarding the segments of the precision engineering business.
China Plus One. There's not a situation that changes every quarter or every 6 months like that,
right? China Plus One is a reality. Now suddenly it has become -- because of the Trump policies
and so on, it has become hot again. Tomorrow, there may be a deal between China and America.
It will become -- it will cool down again, so we can't go on a quarterly basis.

I think, in general, businesses across the world are realizing that overdependence on any one
geography, in this case China, is a situation that should be derisked. And therefore, they are
looking at alternatives to China. Is India an alternative? Of course, it is. Therefore, if India can
come up to the mark, China Plus One will become a reality. And it will continue.

We are already seeing the traction of that. However, if India does not come up, for whatever
reason. We are too slow. Business is not -- for whatever reason. The technology is not coming
fast enough. We are too slow. We are not able to think fast enough. Approvals take too much
time, whatever the reason. I'm not going into that.

Other countries will take it up. And my sense is that there are other countries who are taking it
up. For example, Vietnam is spoken about; and other Southeast Asian countries. There are also
Eastern European country. However, India has a great opportunity, but we have to move fast to

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May 22, 2025

do that. We are trying our best to do that. That's as far as that answer is concerned. Please,
Sanjeev.

Sanjeev Masown: Jagdishwar, you ask about the -- in the precision engineering business, the different segments
where we have the presence, that which segments contributed to the major growth in the previous
year. In the last couple of years, the major traction has been from the alternate energy segment,
which comprises EV and the battery energy storage system. And that has continued. In the
previous year, there was also strong growth and an order position.

Coupled with that, the aerospace, which post COVID, for some period, for a couple of years, it
was on a downturn and the slowdown was there. That also witnessed a decent recovery. And the
second segment is from the aerospace industry.

Jagdishwar Toppo: Thank you so much.

Moderator: Thank you. Next question comes from the line of Mehul Panjuani with 40Cents. Please go ahead.

Mehul Panjuani: Okay. . I am new in tracking our company, so just would like some clarity on some very trivial
questions. One is how much is the jewelry segment contributing, if at all, to the revenue of the
company. That is one. Secondly, what are the Silvercity brands? Is it just the Favre Leuba, or
are any other products being added to that subsidiary?

And third is that, sir- whatever I heard in the conference call. I can understand that we are in a
very niche business, but if -- I would like to understand. How many competitors would we have
which are based out of India? Thank you so much.

Yashovardhan Saboo: We are in different businesses, Mehul, so it's hard to say how many competitors. We have
competitors in various businesses. And frankly, I don't differentiate between competitors in India
or competitors abroad. Today, 80 -- 75%, 80% of our business is coming from export; and
therefore, we look at international competition. And there competition is a reality. In all our
businesses, we have competition. We are able to grow faster than the competition because
somewhere, we are better than they are. So it's hard to answer your question about number of
competitors.

As far as Silvercity brands is concerned, at the moment, we have only one brand. That is Favre
Leuba. In future, there is a plan to add brands, but as of now there is nothing specific, so I cannot
comment on that. And as far as jewelry is concerned, in our company, we are not manufacturing
anything for jewelry, except packaging.

And packaging, at the moment, the jewelry segment is small for us. The main segments are
outside jewelry. But it will be one of the fastest-growing segments in the years to come, based
on the kind of responses that we are getting from jewelry companies in India and globally.

Mehul Panjuani: Right. Sir, one follow-up question. So in terms of the watch component because I think that is
one of the very niche areas of the business. So for that, I would rephrase my question. How many
competitors would be there globally?

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May 22, 2025

Yashovardhan Saboo: There are a lot. And again remember that we are making several components. Not every watch
component maker makes so many components as we do. There are dial makers. There are hands
makers. In dial makers, I could easily say there are probably 15 to 20 well-established dial
makers in Switzerland, Europe, Japan, China, Thailand and of course, we are in India. Hands
makers, there are fewer, maybe 6 or 7 in the world. And on bracelets, again, there are plenty of,
so...

Mehul Panjuani: Right. And sir, I'm very quite curious about the pedigree of our company because we have -- to
the -- to my little knowledge, you are in a very highly niche and precision-oriented component
manufacturing. So what has -- I mean, how did we get into this kind of a business mode? I mean
I know that our company is quite old, but...

Yashovardhan Saboo: Mehul, I don't think we can answer that question on an earnings call. I mean that's something if
you -- there's a lot of information on our website. And that's a history of 40 years. It's hard to
sort of summarize that over a 2 or 3 minute. But why don't you, next time have a one-on-one,
group meeting, not one-on-one but a group meeting at a -- at one of our factories. Why don't you
join in for that? And you can get a better sense of 40 years of the company.

Mehul Panjuani: Definitely, sir. Thank you so much. One -- just one last question, if I can just chip in one last
question. So what is the reason for having Bangalore as the production -- I mean for all the
factories. After we had had in Chandigarh, what made us move to Bangalore? I mean, why was
it -- because, anyway, you are exporting...

Yashovardhan Saboo: Bangalore. It's not a move to Bangalore. Bangalore has been one of our bases for more than 30
years, so it's not a recent move.

Mehul Panjuani: Okay, okay, sir.

Yashovardhan Saboo: It was a diversified strategy. We didn't want to put everything in one region.

Mehul Panjuani: Right, right. So it was -- was it because of some labor benefits or -- we moved to Bangalore?

Yashovardhan Saboo: Again I'm saying there's no question of move. We've been in Bangalore for more than 30 years.
We have been in existence for 40 years. So again I'm saying that we believe in derisking and
hedging our bets. And one of them is having -- not putting all your manufacturing in one location.

Mehul Panjuani: Right, agreed, sir, but since we were primarily...

Yashovardhan Saboo: I don't remember what was the reason, but the basic philosophy is to hedge against risk and to
diversify.

Mehul Panjuani: I appreciate, sir. Thank you so much. Thank you.

Moderator: Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question-
and-answer session. I would now like to hand the conference over to the management for closing
comments.

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 KDDL Limited
May 22, 2025

Yashovardhan Saboo: Thank you, everyone. If you need any further clarifications or any questions, please contact the
SGA team, our Investor Relations Advisers. And we'll be happy to connect and answer what we
can. Thank you once again for joining in this earnings call. Thank you, everybody.

Moderator: Thank you. On behalf of KDDL Limited, that concludes this conference. Thank you for joining
us. You may now disconnect your lines.

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