PC Jeweller Reports Strong Q2 Results with 63% Revenue Growth
PC Jeweller Limited (PCJ) announced robust Q2 financial results, with standalone domestic revenues increasing by 63% year-on-year. Sales reached ₹825 crores, gross profit rose to ₹191 crores, and EBITDA grew to ₹246 crores. Operating PAT nearly doubled to ₹202.50 crores. The company reduced its outstanding debt by 23% in Q2 and aims to be debt-free by the end of the next financial year. PCJ regained possession of inventory held by DRAT, opened a new franchise store in Delhi, and successfully raised funds through preferential issues.
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PC Jeweller Limited (PCJ) has reported robust financial results for the second quarter, demonstrating significant growth across key metrics. The company's performance was bolstered by sustained consumer demand throughout the festive season.
Financial Highlights
PCJ's standalone domestic revenues surged by approximately 63% year-on-year in Q2. Here's a snapshot of the company's financial performance:
| Parameter | Q2 (₹ in crores) | Q2 Previous Year (₹ in crores) | Change |
|---|---|---|---|
| Sales | 825.00 | 505.00 | 63% |
| Gross Profit | 191.00 | 101.00 | 89% |
| EBITDA | 246.00 | 129.00 | 91% |
| PBT | 204.00 | 124.00 | 65% |
The company's Operating PAT (Profit After Tax, excluding income tax refund and interest) increased from ₹102.00 crores in the previous year's Q2 to ₹202.50 crores this Q2, marking a substantial growth of approximately 99% year-on-year.
Debt Reduction and Financial Strategy
PCJ continues to make significant strides in reducing its outstanding debt. During Q2, the company further reduced its outstanding debt payable to banks by approximately 23% (about ₹406.00 crores). This follows a 9% reduction in the first quarter and over 50% reduction in the previous financial year.
The company aims to achieve a debt-free status by the end of the next financial year. This debt reduction aligns with PCJ's objective of becoming debt-free, which is expected to significantly improve its financial position and reduce finance costs in the coming quarters.
Inventory and Operational Updates
Following compliance with the terms of the Joint Settlement Agreement, PCJ has regained possession of all its inventory previously held in custody by the Debts Recovery Appellate Tribunal (DRAT). This development, confirmed by a DRAT order dated October 7, marks a positive turn for the company's operational capabilities.
Expansion and Fund Raising
PCJ continues to strengthen its regional presence, launching a new franchise-owned showroom in Pitampura, Delhi during the quarter. This expansion reflects the company's focus on a balanced model of owned and franchise stores.
The company has successfully raised funds through preferential issues, with approximately ₹1,877.00 crores already received out of a total of about ₹3,202.00 crores (including ₹2,702.11 crores raised in the previous fiscal year and an additional ₹500.00 crores approved in July). The remaining amount of approximately ₹1,325.00 crores is expected to be realized upon conversion of the remaining preferential warrants into equity.
Future Outlook
With its strategic debt reduction plan, improved operational momentum, and successful fund-raising initiatives, PC Jeweller is positioning itself for sustainable growth. The company expects to benefit from reduced finance costs as it approaches its debt-free target, potentially leading to improved profitability in the coming quarters.
Management remains confident about building on this strong performance in upcoming quarters and is focused on reclaiming its leading market position in the jewelry industry.
Historical Stock Returns for PC Jeweller
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.70% | -6.60% | -14.06% | -22.11% | -36.62% | +534.62% |
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