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Target to reduce debt By Rs 500cr in FY12: Gitanjali Gems
Manufacturer and retailer of jewellery, Gitanjali Gems, aims to reduce its debt by Rs 500 crore this fiscal, said chairman and managing director Mehul Choksi.
Manufacturer and retailer of jewellery, Gitanjali Gems , reported a healthy 26% growth in revenues for the second quarter of FY12. Even though expenses increased, income grew to Rs 3,168 from Rs 2,510 crore year on year. Net profits also surged 65% to Rs 132 crore from Rs 80 crore the previous year.
Speaking at a press conference, chairman and managing director Mehul Choksi said that the company saw major growth from tier I and tier II cities. "This helped improve EBITDA margins by 38% to 7% from 6.5%," he added.
The company also reduced working capital to sales ratio to 40% from 47% this quarter, which in turn sustained borrowing. "By the end of the fiscal year, the company intends to reduce debt by Rs 500 crore," said Choksi.
Gitanjali also plans to restructure the business into three verticals - diamond & jewellery manufacturing, domestic branded jewellery and international branded jewellery. "The domestic restructuring has been completed and international will be completed in two-three months time," informed Choksi.
Going forward, Choksi says that they plan to be one of the world's largest companies in the luxury space globally. "Our unique integrated business model, with the combination of sourcing strength and economies of scale will offer maximum value generation potential in jewellery category," he explained.
Watch the accompanying video for the press conference.
