Buoyed by increasing gold prices and its thrust on selling more of the high-margin diamond jewelry, Madurai-headquartered Thangamayil Jewellery Ltd has been able to report a 22 per cent jump in its net profit for the quarter ended December 2022, compared with the corresponding quarter of 2021.
The company’s net profit increased to ₹13.77 crore, compared with ₹11.31 crore previously, but notably, its net profit for the first nine months of the current financial year, at ₹48.71 crore, well exceeded its net profit for the full year 2021–22 (₹38.54 crore).
The turnover in October–December 2022 increased to ₹744.50 crore, compared with ₹630.83 crore previously. The company’s nine-month turnover was ₹2,384 crore, compared with ₹2,194 crore for the full year 2021–22.
In a chat with businessline, Thangamayil Jewellery’s Company Secretary, V Vijayaraghavan, said that costs had also risen because of the increased level of operations, which was due to both the opening of 5 new jewelry retail outlets and the full functioning of all 53 outlets. In 2021-22, a good 45 days were lost to the pandemic. Aggregate costs increased by ₹30.48 crore, the company said in a notification to the stock exchanges.
He said that the company has been trying to change its product mix in order to sell more diamond and silver products than earlier. Gold earlier dominated sales, with about 90 per cent share. In the first nine months of 2022-23, the company sold 32 per cent more gold jewelry (3.8 tons), 35 per cent more silver (16.5 tonnes) and 52 per cent more diamonds (7,647 carats).
The results also show an increase in the company’s net worth to ₹366 crore (up 13 per cent) and in book value to ₹267 (up 14 per cent). On the NSE on Monday, the Thangamayil Jewellery share closed at ₹1,065, which was lower by ₹30.20 (2.76 per cent) than the previous close.