Golkunda Diamonds & Jewellery Limited , a prominent player in the gems and jewellery sector, has announced its financial results for the first quarter and approved a significant increase in its authorized share capital.

Q1 Financial Performance

For the quarter ended June 30, Golkunda Diamonds reported a net profit of Rs. 313.57 lakhs, compared to Rs. 354.12 lakhs in the same quarter of the previous year, marking a decrease of 11.45%. Despite the decline in profits, the company saw a notable increase in total income, which rose to Rs. 6,961.77 lakhs from Rs. 6,016.42 lakhs year-over-year, representing a growth of 15.71%.

Key financial highlights for Q1:

The company's operating performance showed resilience, with net sales increasing to Rs. 6,943.73 lakhs from Rs. 6,000.67 lakhs in the previous year's corresponding quarter, a growth of 15.72%.

Authorized Share Capital Increase

In a significant move, the Board of Directors has approved an increase in the authorized share capital of the company. The proposal, subject to shareholder approval, aims to raise the authorized share capital from Rs. 7 crore to Rs. 10 crore. This increase will be achieved by creating an additional 30 lakh equity shares of Rs. 10 each, bringing the total number of authorized shares to 1 crore.

Annual General Meeting and Dividend

The company has scheduled its 35th Annual General Meeting (AGM) for September 11, to be held via video conferencing. A final dividend has been proposed, with the record date set for September 11. If approved by shareholders at the AGM, the dividend payment is scheduled for September 25.

Corporate Governance and Compliance

Golkunda Diamonds continues to demonstrate strong corporate governance practices. The company has set September 4 as the cut-off date for e-voting rights, allowing shareholders to participate in the decision-making process electronically.

Market Outlook

While the company has shown growth in revenue, the slight decline in profitability may be attributed to various market factors. The gems and jewellery sector continues to face challenges, including fluctuating precious metal prices and changing consumer preferences.

As Golkunda Diamonds navigates through these market conditions, the proposed increase in authorized share capital could provide the company with additional flexibility for future growth initiatives and capital raising opportunities.

Investors and stakeholders will be keenly watching how the company leverages its increased capital base and adapts to the evolving market dynamics in the coming quarters.

Golkunda Diamonds & Jewellery Limited , a prominent player in the gems and jewellery sector, has announced its financial results for the first quarter and approved a significant increase in its authorized share capital.

Q1 Financial Performance

The company reported a mixed financial performance for Q1:

Despite a significant increase in total income, Golkunda Diamonds witnessed a decline in net profit and earnings per share compared to the same quarter last year.

Authorized Share Capital Increase

In a strategic move, the Board of Directors has approved an increase in the company's authorized share capital:

• Current: ₹7 crore (70,00,000 equity shares of ₹10 each)
• Proposed: ₹10 crore (1,00,00,000 equity shares of ₹10 each)

This decision is subject to shareholder approval and will require an amendment to the Capital Clause (Clause V) of the company's Memorandum of Association.

Annual General Meeting and Dividend

The company has scheduled its 35th Annual General Meeting for September 11, to be held via video conferencing. Key dates announced include:

• AGM Date: September 11
• Record Date for Final Dividend: September 11
• Dividend Payment Date: September 25 (subject to AGM approval)

Financial Highlights

• Total income rose to ₹6,961.77 lakhs, up from ₹6,016.42 lakhs in the same quarter last year.
• Net sales increased to ₹6,943.73 lakhs, compared to ₹6,000.67 lakhs in the previous year's quarter.
• Profit before tax stood at ₹419.57 lakhs, down from ₹473.12 lakhs in the same period last year.

The company's financial results were reviewed by the Audit Committee and approved by the Board of Directors on July 29. R.C. Jain & Associates LLP, the statutory auditors, conducted a limited review of the financial results and found no material misstatements.

Golkunda Diamonds & Jewellery Limited continues to operate in a single business segment, focusing on the manufacturing and sale of gems and jewellery. The company's strategic decisions, including the proposed increase in authorized share capital, signal its intentions for potential growth and expansion in the coming years.