PC Jewellers Q2 profit jumps 41 percent to Rs 151 crore, revenue up by 19%

Indian luxury jewellery brand PC Jewellers managed to beat the GST blues and post a significant jump of 41 percent in its net profit for the quarter ended September on the back of strong domestic sales.

PC Jeweller Q2 profit jumps 41 percent to Rs 151 crore, revenue up by 19% - Facebook

The jeweller posted a net profit of RS 151 crore (approx $23.3 million) for the quarter as compared to the Rs 107 crore (approx $16.4 million) in the same period of the previous year.
 
The revenue for the quarter rose 19 percent to Rs 2,643 crore ($403.8 million) in the quarter from Rs 2,225 crore (approx $340 million) it reported in the year-ago period.
 
With majority jewellers struggling post demonetisation and implementation of Goods and Services Tax, PC jewellers Q2 results managed to post strong results due to stable exports and strong domestic sales.
 
Domestic sales witnessed a sales 30 percent surge to Rs 1,851 crore ($282.8 million) in the quarter from Rs 1,423 crore ($217.5 million) a year back while exports saw a marginal rise of 5 percent to Rs 771 crore (approx $117.8 million) from Rs 732 crore (approx $112 million) it reported the previous year.
 
The company on the contrary has credited GST and demonetisation for helping the company increase its market share.
 
“The rollout of the goods and services tax (GST) as a very major structural change and has resulted in a major disruption for unorganized players in all the sectors of the economy. Demonetisation and implementation of GST are helping us increase market share as the industry is getting organized," it said in a statement.
 
The company termed the quarter as eventful and active for the company as it managed to gain market share in the retail jewellery market and also the exports remained fairly stable. The company is eyeing sales revenue of Rs 10,000 crore (approx $1550 million) in this financial year and expects to further increase market share in the coming years.
 
PC Jewellers Managing Director Balram Garg in a statement said, "The Company remains very bullish on growth prospects of the organised jewellery retailing in the country and PCJ is well positioned to reap maximum benefits of the same. The company will strive to increase its market share in coming years,”
 
PC Jeweller is one of India’s leading jewellery firms that manufactures and sells gold, diamond and silver jewellery. Established in 2005, PC Jeweller has a presence in 85 showrooms across 67 cities & 20 states.
 

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