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Gitanjali Gems, one of the leading integrated jewellery companies, reported that its net profit was up 21 per cent at Rs 149 crore (Rs 123 crore) in the June quarter. Its sales rose 31 per cent to Rs 3,385 crore.
EBIT (earnings before interest and tax) during the quarter was up 61 per cent at Rs 349 crore. Jewellery sales grew by 36 per cent to Rs 1,826 crore while diamond jewellery sales rose 29 per cent to Rs 1,668 crore. EBIT from jewellery business was up 44 per cent at Rs 2,171 crore and diamond jewellery contribution rose by 71 per cent to Rs 133 crore.
New strategy
Mehul Choksi, Chairman and Managing Director, said the company’s strategy to penetrate into smaller towns and cities and focus on a judicious mix of diamond and gold jewellery has started yielding desired results.
“We will simultaneously look to capitalise on opportunities in other markets that have been exhibiting a growing preference for branded jewellery,” he said.
New stores added in the quarter have contributed to growth. Revenues from stores opened in the last six months also added significantly to the growth. The Group’s presence in the international markets such as the US and Japan coupled with a strong dollar also helped achieve the growth during the quarter, the company said.
On a standalone basis, the company's net profit was up 10 per cent at Rs 77 crore, even as sales increased 27 per cent to Rs 2,029 crore.
FUND RAISING
The company will issue one zero per cent fully convertible debenture with face value of Rs 39 crore on a preferential basis to D.B. Corp, subject to approval of shareholders in ensuing Annual General Meeting.
CONSOLIDATION
The Group has completed the re-alignment of its domestic Indian business structure by transferring all the Indian businesses such as Gitanjali Lifestyle, Gitanjali Jewellery Retail and MMTC Gitanjali to Gitanjali Brands. Gitanjali Brands will become the subsidiary of Gitanjali Gems once the entire process of consolidation is completed.
A similar exercise is underway to consolidate the group’s international jewellery division under its Hong Kong subsidiary Aston Luxury Group. This re-alignment allows for independent focus on every aspect of the group’s business, said Gitanjali in a press release.
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