Gitanjali Group Q2 profit up 15% at Rs 151.65 cr

Gitanjali Group today reported 15 per cent growth in net profit to Rs 151.65 crore for the second quarter ended September 30, driven by stable gold prices. The Profit After Tax (PAT) in second quarter of FY12 stood at Rs 132.24 crore. The net sales rose 32 per cent during the period under review to Rs 3,928.25 crore from Rs 2,972.11 crore in the year-ago, Gitanjali Group said in a release.

"Stable gold prices in the country have driven volumes during the quarter. With the upcoming Diwali and marriage seasons, we are expecting better sales," Gitanjali Gems Chairman and Managing Director Mehul Choksi said. The company has been working on re-aligning its business to unlock value for stakeholders, he added.

The company unveiled its new brands and collections -- Envi, Moira, True Platinum and Karina -- at the recently held India International Jewellery Show (IIJS). Gitanjali Group's recent expansions in Japan and West Asia have also given incremental sales to the company, the release said.

With a view to establish itself further in the e-commerce space, Gitanjali, during July-September quarter, entered into tie-ups with some of the largest online retailers in the country. The company plans to extend its presence to 600 cities and towns from the current 300, especially in tier II and III cities that are are witnessing a rapid growth in demand for gems and jewellery, Choksi said.

The company will also focus on franchise mode that gives geographic flexibility in terms of reaching out to tier III and IV towns, he added