Gitanjali Q2 Profits Up 65.2% to $26 M on Sales of $624 M

(IDEX Online News) – DTC Sightholder Gitanjali Gems announced very strong second quarter earnings with net sales up 26 percent to $624 million (Rs.31.68 billion) and net profits up a whopping 65.2 percent to $26.1 million (Rs.1.32 billion).

Net sales for the first half of the fiscal year ended September 30 were $1.14 billion (Rs.57.63 billion), up 31.7 percent. Net profit for this period grew 60.9 percent to $50.36 million (Rs.2.56 billion).

Mehul Choksi, the company’s managing director, attributed the strong showing to the momentum in the smaller, so-called Tier-II and Tier-III towns. He stated, “Our strategy is to focus on emerging markets to drive growth for the jewelry segment. With integrated business model and branded jewelry play we are confident to expand the top line and achieve even higher bottom line.”

The company attributes much of its growth to its retail and jewelry segments, stating that in the first half of this fiscal year, it added 61 new stores (including franchises), 55 shop-in-shops and 270 retailers to its distribution network. Jewelry as a percentage of total business has been steadily increasing and is expected to account for 70 percent of all business in three years’ time.

The company said its U.S. retail chain operations had been steadily increasing in sales and profitability and it expected a boost in overall profitability due to this. Its Middle East and Far East operations had increased their scope to include more retail chains and standalone stores.