PC Jeweller Q2 net profit plummets 38 percent to Rs 94 crore
PC Jeweller’s net profit for the second quarter plummeted 38 percent to Rs 94 crore ($13.1 million) due to the subdued market environment in the jewellery sector. The company had posted a net profit of Rs 151 crore in the same quarter of 2017-18.
The company’s revenue also slumped to Rs 1,635 crore during the July-September this year from Rs 2,622 crore in the year-ago quarter.
PC Jeweller’s domestic sales fell to Rs 1,550 crore during the quarter as compared to Rs 1,851 crore in the year-ago period while revenue from its exports declined to Rs 85 crore from Rs 771 crore last year.
On the performance, P C Jeweller in a statement said, "Q2 FY'19 was a period of consolidation for the company amidst a subdued market environment in the jewellery sector. The company proposes to utilise approximately Rs 500 crore of cash and internal accruals for further reduction of bank exposure in the second half of the current fiscal."
"Domestic sales contributed 95 percent of overall business. Domestic sales however witnessed slowdown of 16 percent over Q2 of FY2018. Exports contributed to only 5 percent of overall sales. The company is therefore targeting to limit the export sales to Rs 2,000 crore in FY'19 as against Rs 2,690 crore in the last fiscal,” the statement added.
During the quarter, as part of its rationalisation process the company closed down its stores in Bangalore and Kolkata.
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