The reduction in GST rates shows that the government is looking at this industry favourably, said Sanjeev Bhatia, CFO, PC Jeweller.
PC Jeweller stock is in focus on back of good set of third quarter earnings. The year on year margins improved to 10.2 percent versus 8.4 percent. Revenues too were up 26 percent in the quarter at Rs 2644 crore and EBITDA was up 52 percent at Rs 268 crore.
Moreover, the GST rates on diamonds and precious stones have been cut to about 0.25 from 3 percent, which bodes well for the company.
Discussing the numbers and outlook in detail, Sanjeev Bhatia, CFO of the company told CNBC-TV18 that going forward as well margins would be sustainable at the current levels because in the fourth quarter is a wedding season and diamond sales are also good in Q4.
In Q3, 31 percent of jewellery business was diamond jewellery and going forward to it would be in a range of 31-32 percent.
The reduction in GST rates shows that the government is looking at this industry favourably, since this sector does provide a lot of employment, taxes, duties, said Bhatia.
The store count as on date is 84 and same store sales growth has been more than 20 percent, which aided margins and growth, said Bhatia.According to him, going forward by year-end aim to cross 100-store mark and SSSG would be around 15-16 percent.