PC Jeweller Limited (PCJ), a leading Indian jewellery retailer, has reported robust financial performance for the first quarter, showcasing significant growth across key metrics. The company's strategic initiatives and market recovery have contributed to its strong results.

Financial Highlights

PCJ reported a substantial increase in sales for Q1, with revenue reaching ₹725.00 crores, up 81% from ₹401.00 crores in the same quarter last year. The company's domestic-only sales strategy continues to drive growth, with no exposure to export or foreign markets, including the USA.

Other key financial metrics also showed impressive growth:

The company's profit after tax (PAT) rose to ₹164.00 crores, marking a 73% increase from ₹95.00 crores in the previous quarter.

Debt Reduction and Fund Raising

PC Jeweller has made significant strides in reducing its debt burden. The company has already cut its outstanding bank debt by more than 50% in the previous fiscal year. In the current quarter, it further reduced the debt by approximately 8.7%, followed by an additional 10.1% reduction in July. PCJ aims to become debt-free by the end of the fiscal year.

To support its growth and debt reduction plans, the company's Board of Directors approved raising additional funds of up to ₹500.00 crores through a preferential allotment on a private placement basis. This follows the successful completion of a ₹2,702.11 crore fund raise via preferential issue of fully convertible warrants in the previous fiscal year.

Corporate Actions and Store Network

During the quarter, PC Jeweller made the following notable corporate actions:

1. Issued a corrigendum to its Postal Ballot Notice dated July 10, modifying explanatory statements for special resolutions.
2. Allotted 18,92,50,000 equity shares on April 29, and 3,08,42,400 equity shares on May 29, upon conversion of warrants.
3. Closed one owned store in Jamshedpur, bringing its total network to 48 owned and 3 franchise stores across 37 cities in India as of June 30.

Future Outlook

With its improving financial performance, ongoing debt reduction efforts, and strategic initiatives, PC Jeweller is optimistic about its future prospects. The company expects to benefit from improved operational momentum, renewed market engagement, and sustainable growth through network maturity and potential retail footprint expansion once it becomes debt-free.

PC Jeweller's management expressed confidence in the company's ability to regain lost market share and achieve higher business levels in the coming quarters, supported by its manufacturing and designing capabilities, skilled staff, and customer-centric policies.

As the Indian jewellery market continues to evolve, PC Jeweller appears well-positioned to capitalize on the growing consumer demand for branded jewellery and the shift towards organized retail in the sector.

PC Jeweller Limited, one of India's leading jewellery retailers, has reported a strong financial performance for the first quarter, demonstrating significant growth across key metrics.

Impressive Sales Growth

The company achieved domestic sales of Rs 725.00 crores in Q1, compared to Rs 401.00 crores in the same quarter last year, marking a substantial increase of 81%. This growth comes despite volatility in gold prices, with PC Jeweller witnessing high demand for its products, particularly for wedding and festive purchases.

Profitability Surge

PC Jeweller's profitability showed remarkable improvement:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at Rs 210.00 crores, up 136% from Rs 89.00 crores in Q1 of the previous year.
• Profit Before Tax (PBT) reached Rs 164.00 crores, a 98% increase from Rs 83.00 crores in the corresponding quarter last year.
• The company's Profit After Tax (PAT) rose to Rs 164.00 crores, up 73% from Rs 95.00 crores in the previous quarter.

Financial Performance Highlights

Debt Reduction and Financial Strategy

PC Jeweller continues to make progress in reducing its debt burden:

• The company has already reduced its outstanding debt to banks by more than 50% in the previous fiscal year.
• During Q1, it further reduced the outstanding debt by approximately 8.7%.
• An additional 10.1% reduction was achieved in July.
• The company aims to become debt-free by the end of the fiscal year.

Fundraising Initiatives

To support its growth and debt reduction plans, PC Jeweller has undertaken significant fundraising efforts:

• In the previous fiscal year, the company successfully raised Rs 2,702.11 crores through a preferential issue of fully convertible warrants, with a 99.89% subscription rate.
• On July 10, the Board of Directors approved raising additional funds of up to Rs 500.00 crores through preferential allotment on a private placement basis.

Operational Updates

• As of June 30, PC Jeweller maintains a network of 51 showrooms (including 3 franchisee showrooms) across 37 cities in India.
• The company closed one owned store in Jamshedpur during Q1.
• PC Jeweller now operates 48 owned stores and 3 franchise stores.

Looking Ahead

With its strong Q1 performance, debt reduction strategy, and fundraising initiatives, PC Jeweller is optimistic about its future prospects. The company expects improved operational momentum, renewed market engagement, and sustainable growth through network maturity and potential retail footprint expansion.

Management attributes the positive results to increased operational levels, higher customer footfalls, and growing demand for its products. The company remains focused on business development and enhancing its brand presence through targeted marketing initiatives.

As PC Jeweller continues its strategic turnaround, it aims to regain lost market share and achieve higher business levels in the coming quarters, catering to the evolving needs of its customers in the dynamic Indian jewellery market.