Strong Second Quarter Growth for Gitanjali Group

Gitanjali Gems registered a 53.27 percent growth in revenues during the second quarter, increasing from Rs. 7.388 billion ($187.88 billion) to Rs. 11.323 billion ($287.95 million), and a 56.08 percent rise in net profit, which grew to Rs. 408.16 million ($10.38 million) from Rs. 261.5 million ($6.65 million) last year.

The key drivers for the performance by the DTC sightholder have been distribution, increasing vertical integration and a consistent performance in the core businesses of gems and jewelry manufacturing.

For the first half of the Indian fiscal year, revenues rose by 48.25 percent, from Rs. 14.112 billion ($358.85 million) to Rs. 20.921 billion ($531.99 million), while net profit grew by 63.33 percent to reach Rs. 768.67 million ($19.55 million) from Rs. 470.62 million ($11.97 million).

The jewelry segment recorded a 122.83 percent rise in revenue from Rs. 2.359 billion ($59.99 million) to Rs. 5.256 billion ($133.66 million), while the diamond segment grew 23.46 percent.

The company has increased its retail operations in India and the U.S., enabling the profits that were earlier being shared with its customers to be retained within the group, director G.K. Nair told Jewelbiz.

In the Indian market, Gitanjali has been developing its presence in the branded segment, as projections show that branded diamond jewelry, which presently accounts for about 3 percent of the market, will rise to a 30-35 percent share over the next decade.

The group is also developing sector specific SEZs (Special Economic Zones)  in different parts of the country, and besides its Hyderabad SEZ which will become operational very soon, has received in-principle approval from  the ministry of commerce to establish a 1,000-hectare multi-product SEZ at Nagpur and a 50-hectare gems and jewelry SEZ at Aurangabad.