PC Jeweller Limited (PCJ), a prominent Delhi-based jewelry retailer, has reported a robust performance for the quarter ended September 30, marking a significant turnaround in its financial position and operational growth.

Strong Revenue Growth

The company announced a substantial year-on-year revenue growth of approximately 63% for the July-September quarter. This impressive growth is attributed to strong consumer demand during the ongoing festive season, reflecting a positive shift in consumer sentiment towards jewelry purchases.

Debt Reduction Strategy

In line with its commitment to financial prudence, PC Jeweller has made significant strides in reducing its outstanding bank debt:

• 23% reduction in bank debt during the July-September quarter
• 9% debt reduction in the first quarter
• Over 50% reduction in the previous financial year

This consistent debt reduction aligns with the company's ambitious goal of becoming debt-free. As of the end of the previous financial year, the company's net debt stood at Rs 1,780.00 crore.

Capital Raising Plans

To support its debt clearance objectives, PC Jeweller has outlined plans to raise additional capital:

• Rs 500.00 crore in equity from promoters and Capital Ventures
• Rs 1,300.00 crore from warrant conversions

These capital infusion plans are expected to significantly bolster the company's financial position and accelerate its debt reduction timeline.

Retail Expansion

Despite focusing on financial consolidation, PC Jeweller continues to expand its retail footprint. The company opened a new franchise-owned showroom in Pitampura, Delhi, during the quarter. This strategic move brings the total number of showrooms to 52, with 49 being company-owned outlets.

Financial Performance Highlights

For the April-June quarter:

All figures in Rs crore

Market Position

As of the latest trading session, PC Jeweller's shares closed at Rs 12.66, with a market capitalization of Rs 8,324.43 crore.

Future Outlook

In its business update, PC Jeweller expressed confidence in building upon its strong performance in the upcoming quarters. The company is focused on reclaiming its leading market position, which it has held in the past.

The management's strategic focus on debt reduction, coupled with robust revenue growth and retail expansion, positions PC Jeweller favorably for sustainable growth in the competitive Indian jewelry market. As the festive season continues, the company appears well-poised to capitalize on the increasing consumer demand for jewelry products.

PC Jeweller (ISIN: INE785M01021) has undergone significant changes in its ownership structure and equity share capital, as reported in a recent disclosure. Capri Global Holdings Private Limited, a non-promoter entity, has reduced its stake in the company, coinciding with a substantial increase in PC Jeweller's total equity share capital.

Shareholding Changes

Capri Global Holdings executed a series of transactions between May 29 and September 23. During this period, the company:

• Acquired 56,00,000 shares
• Sold 7,46,00,000 shares

These open market transactions resulted in a net reduction of Capri Global Holdings' stake in PC Jeweller from 6.663% to 4.623%.

Current Shareholding Position

Following these transactions, Capri Global Holdings now holds:

• 32,00,00,000 equity shares in PC Jeweller
• 4.623% of the total shareholding

PC Jeweller's Equity Expansion

Concurrent with these shareholding changes, PC Jeweller underwent a significant expansion of its equity share capital:

This expansion represents an increase of 108,39,89,870 shares, or approximately 18.57% growth in the company's equity base.

Regulatory Compliance

In compliance with SEBI regulations, specifically Sub Regulation 2 of Regulation 29 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, Capri Global Holdings Private Limited has informed the stock exchanges – BSE Limited and National Stock Exchange of India Limited – about these transactions.

The disclosure, dated September 24, provides a detailed breakdown of the shareholding changes, including the mode of acquisition/sale (open market), and the dates of the transactions.

Market Implications

The reduction in Capri Global Holdings' stake is significant, occurring against the backdrop of PC Jeweller's expanded equity base. The dilution effect of the increased share capital partially explains the percentage decrease in Capri Global's ownership, even as they maintain a substantial number of shares.

Investors and market watchers will likely observe any potential impacts on PC Jeweller's stock performance and whether this signals any shift in the company's strategic direction or market perception.