Gitanjali profit soars 40% to Rs 64 crore

By

Maverick Martins

Published
Nov 15, 2017

Gitanjali Gems Limited profits climbed 40 percent to Rs 64 crore ($9.8 million) for the quarter ended September, compared to the 46 crore (approx $7.1 million) it posted during the same period last year.

The GST (goods and services tax) rate on gold jewellery fixed at 3% seem to have had minimal impact on the company  and on the contrary helped it gain a larger market share posting strong results on the back of lower sales and expenses.
 
Sales revenue saw a marginal decline to Rs 3902 crore (approx $597 million) in the July-September period of the 2017-18 fiscal from Rs 3998 crore (approx $611.5 million) it had reported in the year-ago period.

However, expenses remained lower at Rs 3833 crore (approx $586.3 million) in the second quarter of this fiscal as against Rs 3953 crore (approx $604.7 million) in the same period last year.
 
Larger jewellery players have been the biggest beneficiaries as the cost gap between the organized and unorganized players has come down post GST. Gitanjali Ltd rival firms PC Jeweller and Titan Ltd also posted strong results in this quarter.
 
Gitanjali Group is one of the world’s largest branded jewellery retailers and has more than 4,000 points of sale in India. It also has stores in the US, China and Japan, along with presence in Europe and West Asia offering the widest array of jewellery brands to consumers in the luxury lifestyle space.