Published
Nov 18, 2019
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PC Jeweller Q2 net profit drops 51 percent to Rs 46 crore

Published
Nov 18, 2019

PC Jeweller Ltd reported a 51 percent decline in its consolidated net profit to Rs 46 crore ($6.4 million) for the second quarter, ended September 2019, as against Rs 95 crore it had posted in the corresponding period last year.
 

PC Jeweller Ltd Q2 net profit drops 51 percent to Rs 46 crore - PC Jeweller- Facebook


The company’s sales revenue for the quarter also dropped by 30 percent to Rs 1,212 crore as against Rs 1,722 crore it had reported in the year-ago period.
 
PC Jeweller attributed the fall in revenue and profit to the ongoing economic slowdown, which hit the entire jewellery sector in India.

Indian jewellery demand during the July-September period was down at 101.6 tonnes due to weaker consumer sentiment coupled with the rise in prices of gold in India.
 
“There was a de-growth in the domestic jewellery sales in Q2 after a sudden surge in gold prices in mid June. The company had to resort to extensive promotional schemes during August-September to provide some momentum to the sales,” PC Jeweller said in its investor presentation.
 
“The company has however managed to maintain its earnings before interest, tax, depreciation, and amortization (EBITDA) margins by vigorous cost cutting as well as the higher sale of studded jewellery,” the company added.
 
During the quarter, PC Jeweller also changed its branding with the launch of a new brand logo.

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