Gitanjali Gems's 43% growth in sales & 78% PBT

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Gitanjali Gems Limited, one of India's leading integrated diamond and jewellery manufacturing and retailing companies announced its results for the first quarter ended 30.06.2007.

 

Consolidated Results

 

During the quarter ended 30.06.07, Gitanjali Gems' consolidated results compared over Q1 07-08 and Q1 06-07 reflect superior growth. Sales have grown 42.73 percent, increasing from Rs.67,236.72 lakhs to Rs.95,967.84 lakhs. The Company's PBT recorded a 77.89 percent increase from Rs. 2,388.21 lakhs last year to Rs. 4,248.37 lakhs while PAT reached Rs. 3605.02 lakhs this quarter from Rs. 2091.16 lakhs, a 72.39 percent growth. Earnings per share  increased 68.18 percent from Rs. 3.54  to Rs. 5.95 this year.  

 

Segment-wise Review

 

Gitanjali's jewellery segment recorded a 158.79 percent consolidated growth, increasing from Rs. 12889.14 lakhs to Rs. 33355.85 lakhs this quarter while the diamond segment grew 15.21 percent.  

 

Corporate Strategy

 

Over the past quarter, Gitanjali undertook significant measures to consolidate its retail operations and strengthen its branding.

 

In April 2007,Gitanjali Gems ltd incorporated a new wholly owned subsidiary namely Gitanjali Ventures DMCC which is situated at Dubai Multi Commodities Center, Dubai, UAE. The main activity of the newly incorporated wholly owned subsidiary is trading in diamonds, precious stones, diamonds jewellery and pearls. 

 

In May 2007, Gitanjali Gems announced that D`Damas Jewellery (India), a joint venture company, has become the company`s 51% subsidiary. D`Damas Jewellery (India) is primarily in the business of manufacturing plain and diamond studded precious metal jewellery. D`Damas is the flagship brand of D`Damas Jewellery (India) and there are several sub-brands, each providing jewellery for a particular occasion.

 

Gitanjali Gems has set up another wholly owned subsidiary - Gitanjali Lifestyles (GLL). The new company will barter in the lifestyle business as manufacturers and or dealers in multiple areas, including accessories like jewelleries, watches, clocks, leather products, eye wares, perfume, cosmetics or similar products. It will also work as a marketing agent on the basis of ready delivery or forward contracts, counter trade, switch over deal on commission basis or otherwise. 

 

Other Strategic Initiatives 

Gitanjali Gems has got approval from foreign investment promotion board for issuing 1,554,050 equity shares of Rs 10 each of the company to  B III Capital Partners, L.P. and B III A Capital Partners L.P. towards acquisition of 97% shares of Samuels Jewelers, USA.The said shares are issued as part consideration for acquiring 97% shares of Samuels Jewelers, USA.

The company is planning to launch a channel finance scheme for its distributors and franchisees. Gitanjali Gems will be introducing credit cards through a tie-up with credit card companies. The consumers can purchase the company`s products depending upon the individual credit limits. The company is working on finance schemes wherein the consumers will be in a capacity to purchase through easy installments of 3 and 6 months.

The scheme is targeting the working women population, who will now be in  a state to buy the desired jewellery and pay later. 

 

Sourced From: Sampark Public Relations Pvt Ltd