PC Jewellers posts 41 per cent jump in Q2 net profit

New Delhi: PC Jewellers on Monday posted a 40.83 per cent jump in standalone net profit at Rs 150.59 crore for the quarter ended September on strong sales.

Net profit was Rs 106.93 crore in the same period of the previous year, the company said in a regulatory filing.

Total income increased by 18.78 per cent to Rs 2,642.98 crore in July-September of 2017-18, from Rs 2,225 crore in the year-ago period.

Revenue from domestic sales rose by 30.10 per cent to Rs 1,850.96 crore in the period under the review, from Rs 1,422.70 crore a year earlier, while that of exports increased marginally by 5.41 per cent to Rs 771.36 crore, from Rs 731.91 crore previously.

Expenses remained slightly higher at Rs 2,425.15 crore in the second quarter as against Rs 2,072.34 crore in the year- ago period.

Terming the rollout of the goods and services tax (GST) as a very major structural change, the company said it has resulted in a major "disruption" for unorganised players in all the sectors of the economy.

However, its impact is seen to be higher on the jewellery sector because of the much bigger percentage of the unorganised segment in this industry, it said in the filing.

"Demonetisation and implementation of GST are helping us increase market share as the industry is getting organised," it added.

PC Jewellers Managing Director Balram Garg said: "The company remains very bullish on growth prospects of the organised jewellery retailing in the country and PCJ is well positioned to reap maximum benefits of the same."

The company will strive to increase its market share in coming years, he added.

The stock was trading down by 3.37 per cent at Rs 364.50 on the BSE on Monday.

The company is into the business of manufacturing and sale of gold jewellery, diamond studded jewellery and silver articles.