PC Jeweller Q1 net profit drops 66 percent to Rs 48 crore
today Aug 13, 2019
PC Jeweller net profit for the first quarter dipped 66 percent to Rs 48 crore ($6.8 million), as against Rs 142 crore it had reported in the corresponding period for the last fiscal year.
The company attributed the drop in net profit and sales to closure of its stores and the general elections held in May 2019.
PC Jeweller’s revenue for the quarter was down 44 percent to Rs 1,349 crore in June 2019 as against Rs 2,423 crore it had reported last year.
“The business environment remained tough during this quarter and there was an overall decline in the industry. The company’s domestic turnover has declined by nearly 25 percent on a quarter to quarter basis. The main reasons behind the same are closure of ten-owned stores in the previous FY; closure of two franchisee stores in Q1 coupled with restrictions on movement of goods on account of general elections held in May 2019, which significantly impacted consumer spending,” PC Jeweller said in its annual presentation statement.
Commenting on the outlook, the company said: “FY20 is likely to be a year of consolidation for industry at large. PCJ will focus on stronger branding, customer acquisition & same store sales growth along with expansion of franchisee network.”
“The aim during the existing year will be to extract additional efficiencies from its existing assets and undertake fresh store expansion only on a restricted level,” it added.
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