PC Jeweller , a prominent Indian jewelry retailer, saw its shares climb 6.1% to Rs 15.94 following a series of positive announcements regarding debt reduction and financial performance.

Debt Reduction Progress

Managing Director Balram Garg revealed that the company has made significant strides in reducing its net debt. Over the past four months, PC Jeweller has decreased its net debt by 19%, bringing it down to Rs 1,445.00 crore from Rs 1,780.00 crore. This reduction was achieved through the repayment of Rs 335.00 crore in bank loans during the April-July period.

Ambitious Debt-Free Goal

The company has set an ambitious target to become debt-free by the end of the current fiscal year. To achieve this goal, PC Jeweller plans to raise Rs 1,800.00 crore through equity infusion. This fundraising effort includes Rs 500.00 crore from promoters and Capital Ventures, along with Rs 1,300.00 crore from warrant conversions.

Strong Q1 Financial Performance

PC Jeweller reported impressive quarterly results, demonstrating robust growth:

It's worth noting that the Q1 FY2025 profit included an exceptional item of Rs 106.00 crore from an income tax refund and related interest. Adjusting for this, the company's operating profit has shown substantial growth, increasing from Rs 49.00 crore in Q1 FY2025 to Rs 164.00 crore in Q1 FY2026.

Operational Highlights

PC Jeweller currently operates 52 showrooms across India, with 49 of these being company-owned locations. This extensive network allows the company to maintain a strong presence in the Indian jewelry market.

Future Outlook

The company's focus on debt reduction and its strong financial performance position it well for future growth. As per the latest LODR data, PC Jeweller has already raised Rs 2,702.11 crore during the previous financial year through a preferential issue of fully convertible warrants. Of this amount, approximately Rs 1,417.00 crore has been received, with the remaining Rs 1,285.00 crore expected upon conversion of the remaining warrants into equity.

Furthermore, the Board of Directors has approved an additional fundraising of up to Rs 500.00 crore through preferential allotment on a private placement basis. These financial moves are expected to support the company's goal of becoming debt-free by the end of FY 2025-2026.

As PC Jeweller continues to execute its debt reduction strategy and capitalize on the growing Indian jewelry market, investors will be closely watching its progress towards achieving its debt-free status and sustaining its financial performance.

PC Jeweller Limited, a prominent player in India's jewelry market, has reported impressive financial results for the first quarter, showcasing significant growth and progress in its debt reduction efforts.

Strong Q1 Performance

The company announced a substantial increase in its Profit After Tax (PAT) for Q1, reaching Rs 164.00 crores on sales of Rs 725.00 crores. This marks a remarkable improvement from the previous year's Q1 operating PAT of Rs 49.00 crores, excluding an exceptional income tax refund of Rs 106.00 crores received in the same quarter last year.

Financial Highlights

The company's Executive Director (Finance) & CFO, Vishan Deo, emphasized that the actual operating PAT has more than tripled year-over-year, demonstrating PC Jeweller's strong financial performance.

Debt Reduction Progress

PC Jeweller has made significant strides in reducing its outstanding bank debt:

• Discharged Rs 2,005.00 crores in the previous financial year
• Paid an additional Rs 335.00 crores in Q1 and July
• Reduced outstanding bank debt to approximately Rs 1,440.00 crores

The company's finance costs increased to Rs 41.60 crores in Q1, as the interest moratorium period ended in December. Despite this increase, PC Jeweller managed to achieve a substantial PAT, indicating strong operational performance.

Fundraising Initiatives

To support its debt reduction efforts, PC Jeweller has undertaken several fundraising initiatives:

1. Raised Rs 2,702.11 crores through convertible warrants
   • Rs 1,417.00 crores already received
   • Rs 1,285.00 crores pending upon conversion
2. Board approval for raising an additional Rs 500.00 crores through preferential allotment

Future Outlook

PC Jeweller has set an ambitious goal to become debt-free by the end of the fiscal year. The company's management believes that with the current fundraising initiatives and strong operational performance, they have sufficiently covered the remaining outstanding debt of approximately Rs 1,440.00 crores.

As PC Jeweller continues to focus on debt reduction and operational efficiency, investors and market watchers will be keenly observing the company's progress towards its debt-free target and its impact on future growth prospects.