Gitanjali Q3 Revenues Up 57 Percent
January 31, 08
Two major 100 percent acquisitions – Rogers Jewelers in the U.S. and the Nakshatra brand in India – and two major JVs with European luxury lifestyle manufacturers were among the highlights for diamond and jewelry manufacturer and retailer Gitanjali Gems Ltd during the quarter ended December 31.
The company reported a major 57 percent growth in revenues to Rs 12.52 billion ($318.43 million) from Rs 7.80 billion ($198.37 million) in the third quarter of fiscal year 2006-07 and a 61.1 percent growth in net profit in the same period, Rs 505.2 million ($12.85 million) from Rs 313.6 million ($7.98 million) the previous year.
For the nine months ended December 31, net revenues improved 51.6 percent to Rs 33.51 billion ($852.24 million) from Rs 22.11 billion ($562.05 million) last year, while net profit rose 62.4 percent to Rs 1.27 billion ($32.30 million) from Rs 784.3 million ($19.95 million) last year.
Commenting on the results, Mehul Choksi, chairman of GGL, says, “It has been a strong overall performance with our jewelry retail operations having delivered notable growth.”
A company release also indicates that for the third quarter the share of revenue from the jewelry segment rose from Rs 2.528 billion ($64.29 million) to Rs 6.11 billion ($155.39 million), 48.8 percent of total revenues.
For the first nine months of the fiscal year, the share of revenue from the jewelry segment has risen from Rs 6.17 billion ($156.92 million) (27.9 percent of total revenues) to Rs 14.70 billion ($373.86 million) (43.97 percent of total revenues).
Recently, the company had indicated plans to expand the number of its retail outlets in the U.S. to 250 this year (from the present 150) through possible further acquisitions. It plans to increase its retail presence in China from the current 25 stores.
In India it aims to develop an extensive distribution network of 32 single-brand stores and approximately 132 multi-brand stores for its luxury lifestyle products. The company has set up a gem- and jewelry-specific Special Economic Zone in Hyderabad, Andhra Pradesh, and has secured government approval to develop six more zones in other parts of India.