PC Jeweller Shares In Green After Declaring Q2 Results; Details Inside

PC Jeweller's stock was up 1.47% at Rs 179.50 on Monday following the release of the company's quarterly financial results for the quarter that ended in September 2024. PC Jeweller's net profit for the quarter ended September 2024 was Rs 178.88 crore, compared to a net loss of Rs 138.13 crore for the quarter ended September 2023. In the quarter that ended in September 2024, sales increased 12.42% to Rs 504.97 crore from Rs 449.17 crore in the quarter that ended in September 2023.

"The Board Approved adjustment in the intended utilisation of gross issue proceeds of Fully Convertible Warrants ("Warrants") in view of the revised issue size of Rs 2,702.11 crore as against the proposed issue size of Rs 2,705.14 crore, due to subscription of 48,08,02,500 Warrants as compared to 48, 13,42,500 Warrants offered," said PC Jeweller in a stock exchange filing on 19/10/2024.

As of March 31, 2024, the corporation owed Rs 81.26 crores in unpaid income taxes. In the quarter that ended in June 2024, this sum was completely offset by income tax refunds for the assessment years 2015-16 and 2016-17. In the quarter that ended in September 2024, a refund of Rs 59.31 crores was received; of this, Rs 34.25 crores (previous quarter's Rs 34.53 crores) in interest on income tax refunds were recorded as other revenue.

In Q2 FY 2025, the company's domestic sales were Rs 505 crores, up from Rs 33 crores in Q2 FY 2024, while in H1 FY 2025, they were Rs 906 crores, up from Rs 101 crores in H1 FY 2024. The company's EBITDA has also significantly improved, showing a profit of Rs 129 crores in Q2 FY 2025 compared to a loss of Rs 23 crores in Q2FY 2024 and a profit of Rs 218 crores in H1 FY 2025 compared to a loss of Rs 65 crores in H1 FY 2024. As opposed to a loss of Rs 152 crores for Q2 FY24, the firm reported an operating profit (PBT - Interest on refund of income tax) of Rs 89 crores for Q2 FY 2025.

The impressive Q2 FY 2025 results were further aided by the Union Budget's announcement of a 6% custom tax cut on gold imports, down from 15% before. Investors responded overwhelmingly well to the company's preferential issuance of fully convertible warrants, which totalled Rs 2702.11 crores and was successfully completed on October 11, 2024.

"This quarter also marks an important milestone for the company in its efforts towards an amicablesettlement of its issues with the consortium banks. During the quarter, the company received theapproval of its Offer for Settlement (OTS) from the competent authorities of all 14 banks of theconsortium. Further, the company has executed a Settlement Agreement with the consortium banks on30th Sep 2024 and as per the terms of the Settlement Agreement, the Company has discharged and paidpart of the cash consideration that it had to pay to the Lenders at the time of execution of SettlementAgreement. A substantial portion of this consideration was raised from the Promoter Group entities bymeans of subscribing to Fully Convertible Warrants of the Company. Also, as per the terms of the settlement agreement, the company as well as the lenders have withdrawn the legal proceedings initiated by them against each other," said PC Jeweller in a report.

As of September 30, 2024, the firm had a vast network of 57 showrooms (including 4 franchisee showrooms) distributed throughout 42 cities and 15 states in India. The company has been a major force in the Indian jewellery market and a standout performance in its sector.