PC Jeweller’s stock rose by 1.47% to Rs 179.50 on Monday, following the release of its quarterly financial results for the period ending September 2024. The company reported a net profit of Rs 178.88 crore for the quarter, a significant improvement from a net loss of Rs 138.13 crore in the same quarter last year. Sales also saw a notable increase of 12.42%, reaching Rs 504.97 crore compared to Rs 449.17 crore in September 2023.
In a stock exchange filing on October 19, 2024, PC Jeweller stated that the Board approved an adjustment in the intended use of gross issue proceeds from Fully Convertible Warrants due to a revised issue size of Rs 2,702.11 crore, down slightly from the previously proposed Rs 2,705.14 crore. This adjustment came after the subscription of 48,08,02,500 Warrants, compared to the initial offer of 48,13,42,500 Warrants.
As of March 31, 2024, the company owed Rs 81.26 crore in unpaid income taxes, which was offset in the previous quarter by tax refunds for the assessment years 2015-16 and 2016-17. In the September 2024 quarter, the company received a refund of Rs 59.31 crore, which included Rs 34.25 crore in interest on these refunds recorded as other revenue.
Domestic sales for Q2 FY 2025 reached Rs 505 crore, a significant rise from Rs 33 crore in Q2 FY 2024, while sales for H1 FY 2025 totaled Rs 906 crore, up from Rs 101 crore in H1 FY 2024. The company’s EBITDA showed marked improvement, with a profit of Rs 129 crore in Q2 FY 2025, recovering from a loss of Rs 23 crore in Q2 FY 2024. For H1 FY 2025, EBITDA reached Rs 218 crore, compared to a loss of Rs 65 crore in H1 FY 2024. Operating profit (PBT minus interest on tax refunds) was Rs 89 crore for Q2 FY 2025, a recovery from a loss of Rs 152 crore in Q2 FY 2024.
The positive results were bolstered by a 6% reduction in customs tax on gold imports, announced in the Union Budget, which lowered the rate from 15%. Investors reacted favorably to the company’s successful issuance of fully convertible warrants worth Rs 2,702.11 crore, completed on October 11, 2024.
Additionally, the quarter marked a significant milestone in the company’s efforts to resolve issues with consortium banks. PC Jeweller received approval for its Offer for Settlement (OTS) from all 14 banks in the consortium and executed a Settlement Agreement on September 30, 2024. As part of this agreement, the company made a cash payment to the lenders, primarily funded by subscriptions to Fully Convertible Warrants from promoter group entities. Both the company and the lenders have withdrawn legal proceedings against each other as part of this settlement.
As of September 30, 2024, PC Jeweller operated a robust network of 57 showrooms (including 4 franchisee showrooms) across 42 cities in 15 states, solidifying its position as a major player in the Indian jewelry market.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Investing in stocks involves risks, and past performance is not indicative of future results. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author does not bear any responsibility for any losses or damages incurred as a result of reliance on the information contained herein.
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