GITANJALI GEMS = QUARTERLY RESULTS = Q3 FY 2012 = Q/E DEC,2011 = NET SALES UP 49% PROPORTIONATELY ON FY 11;C-NPT UP 45.27% ON fy 11 PROPORTIONATELY = FUTURE PROMISING ;

Gitanjali Gems Limited

NSE Symbol        GITANJALI

GITANJALI GEMS has produced reasonable results for the third quarter ending Dec,2011.

Net Sales in Q3 FY 12 stands at Rs.3526.28 Cr – compared to Rs.3167.64 Cr (Up  11.32%) in Q2 FY 12;Rs.2595.33 Cr in Q1 FY 12 (Up 35.87%); and Rs.9456.40 Cr in FY 11 total (Up proportionately, i.e., Q3 FY 12 x 4 vs FY 11 total -   by 49.16%)

Increase in SIT/WIP in Q3 FY 12 stands at Rs.247.30 Cr – compared to Rs(-)252.51 Cr in Q2 FY 11;Rs.127.77 Cr in Q1 FY 12; Rs(-)793.36 Cr in FY 11 total.

Raw Materials   in Q3 FY 12 stands at Rs.2892.16 Cr – compared to Rs.2973.51 Cr in Q2 FY 12 (down -2.74%); Rs.2091.60 Cr in Q1 FY 12 (Up 38.27%); Rs.8992.71 Cr in FY 11 total (Up proportionately by 28.64%).

Other Expenditure in Q3 FY 12 stands at Rs.126.47 Cr; compared to Rs.159.23 Cr in Q2 FY 12 (down -20.57%); Rs.120.72 Cr in q1 FY 12 (Up 4.76%); Rs.426.12 Cr in FY 11 total (Up proportionately by 18.72%)

Total Expenditure in Q3 FY 12 stands at Rs.3334.21 Cr ; compared to Rs.2956.85 Cr in Q2 FY 12 (Up 12.76%); Rs.2401.80 Cr in Q1 FY 12 (Up 38.82%); Rs.8898.47 Cr in FY 11 total (up proportionately by 49.88%).

Profit from Operations in Q3 FY 12 stands at Rs.192.06 Cr; compared to Rs.210.79 Cr in Q2 FY 12 (down -8.88%); Rs.193.52 Cr in Q1 FY 12 (down            -0.75%); and Rs.                557.94 Cr in FY 11 total (Up proportionately by 37.7%).

Interest expense in Q3 FY 12 stands at Rs.65.74 Cr; compared to Rs.67.30 Cr  in Q2 FY 12(down -2.31%); Rs.60.18 Cr in Q1 FY 12 (Up 9.25%); and Rs.208.72 Cr in FY 11 Total (up proportionately by 25.99%).

Profit before tax in Q3 FY 12 stands at Rs.127.50 Cr; compared to Rs.145.98 Cr in Q2 FY 12 (down -12.66%); Rs.138.28 Cr in Q1 FY 12 (down -7.79%); and Rs.383.28 Cr in FY 11 total (up proportionately by 33.07%).

Tax Expense in Q3 FY 12 stands at Rs(-)1.69 cr; compared to Rs.11.88 cr in Q2 FY 12; Rs.14.60 Cr in Q1 FY12; Rs.26.71 cr in FY 11 total.

Net Profit in Q3 FY 12 stands at Rs.129.20 Cr; compared to Rs.134.10 cr in Q2 FY 12;  Rs.123.68 Cr in Q1 FY 12; Rs.356.56 Cr in FY 11 total.

Consolidated NPT in Q3 FY 12 stands at Rs.128.86 Cr; compared to Rs.132.25 Cr in Q2 FY 12 (down -2.56%); Rs.123.23 Cr in Q1 FY 12 (Up 4.57%); and Rs.354.81 cr in FY 11 total ( up proportionately by 45.27%).

Face Value is Rs.10.  Paid-up Equity stands at Rs.91.12 Cr; Reserves stand  at Rs.2432.50 cr for FY 11. The Public holding  in the company  is 45.64%.

Basic EPS is Rs.14.87 in Q3 FY 12; Rs.15.54 in Q2 FY 12; Rs.14.52 in Q1 FY 12; Rs.41.81 in FY 11 total. It was Rs.11.93 in Q3 FY 11. So, in comparison to corresponding quarter, there is good improvement, though compared to preceding 2 quarters, it is slightly down.

Its current price is Rs.406,while the  52 week high price  is Rs.420.55 and 52 week low price is Rs.197.25.

The annual EPS is likely to be Rs.59.80. On this, the PE Ratio is 6.79

Gitanjali Gems is increasing its retail presence significantly through Franchisees – like TITAN Industries. RetaIl business is said to have higher operating margins of around 15% compared to just 8% in other businesses. Its US Jewellery business is also seeing a good uptick in current year. Compared to FY11 same period, earnings have grown by around 48%.                Its higher retail foray may benefit it in the long term.

ANNOUNCEMENTS BY GITANJALI GEMS

23-02-2012          Independent Equity Research (IER) wing of CRISIL, in its report dated February 22, 2012, has assigned to the Company grade 3/5 for fundamentals and grade 5/5 for valuations. The fundamental grade 3/5 indicates that Company has a good fundamentals and valuation grade of 5/5 indicates that there is a ; 'strong upside' to the current market price.

05-12-2011          "Acquisition of 100% stake of 'Crown Aim Limited".

28-11-2011          Gitanjali Gems has successfully completed conversion and redemption of its 1% Foreign Currency Convertible Bonds (FCCB) worth USD 110 million, which matured on November 25, 2011. The Company further wishes to inform that out of FCCBs issued, 63.4% of the total issue size were converted into equity shares and balance 36.6% bonds matured on 25th November, 2011. The outstanding bonds worth USD 40.26 mIllion were redeemed on maturity date i.e November 25, 2011 and Company paid outstanding principal amount and premium to the remaining bondholders. Post conversion total outstanding shares of the Company have increased from 84,871,598 equity shares as on March 31, 2011 to 91,122,095 equity shares till date.

17-11-2011          Gitanjali Gems Limited has informed the Exchange that in line with the ongoing exercise of re-aligning and restructuring of International business of the Company: (1) The Company has transferred it's stake in 'Giantti Italia S.R.L.' to 'Leading Italian Jewels S.R.L.', a wholly owned subsidiary of the Company based in Milan, Italy; (2) The Company has transferred it's stake in 'Leading Italian Jewels S.R.L.' to 'Aston Luxury Group Limited', a Hong Kong based wholly owned subsidiary of the Company.

14-11-2011          Gitanjali Gems Limited has (1) Approved restructuring of the Company's International businesses through its wholly owned overseas subsidiary(s). Further the Board of Directors empowered the investment committee to implement the same, subject to necessary regulatory approvals/ compliances; (2) Decided to raise funds by way of Issue of Convertible Warrants on preferential basis to Bennett, Coleman & Co. Ltd up to Rs. 40 Crores, subject to approval of Shareholders, pursuant to Section 81(1A) of the Companies Act, 1956 and Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and any amendments thereon; (3) Decided to call Extraordinary General Meeting of the Company to inter alia approve the above said Issue of Convertible Warrants on Preferential basis to Bennett, Coleman & Co. Ltd., to be held on December 13, 2011.

29-09-2011          Gitanjali Gems Limited has informed the Exchange vide letter dated September 29, 2011 "Restructuring of Branded Jewellery Business".

Results Table

Gitanjali Gems-consol	Q3FY12	Q2FY12	%DIF1	Q1FY12	%DIF2	FY11	%DIF3
Net Sales	352,627.50	316,764.09	11.32	259,532.66	35.87	945,640.18	49.16
Increase in SIT/WIP	24,729.67	-25,250.70	-197.94	12,777.10	93.55	-79,336.13	-224.68
Raw Materials	289,215.79	297,351.38	-2.74	209,160.41	38.27	899,271.43	28.64
Employees Cost	6,133.44	6,853.23	-10.50	5,494.85	11.62	21,662.11	13.26
Depreciation	695.35	808.3	-13.97	675.55	2.93	5,637.16	-50.66
Other Expenditure	12,646.86	15,922.83	-20.57	12,072.41	4.76	42,612.03	18.72
Total Expenditure	333,421.11	295,685.04	12.76	240,180.32	38.82	889,846.60	49.88
Profit from Operations	19,206.39	21,079.05	-8.88	19,352.34	-0.75	55,793.58	37.7
Other Income	118.09	248.96	-52.57	493.31	-76.06	1,599.39	-70.47
Interest	6,574.24	6,729.85	-2.31	6,017.74	9.25	20,872.05	25.99
Exceptional items	-	-		-		-1,806.71
Profit before tax	12,750.24	14,598.16	-12.66	13,827.91	-7.79	38,327.63	33.07
Tax Expense	-169.28	1,188.13	-114.25	1,459.87	-111.60	2,671.18	-125.35
Net Profit	12,919.52	13,410.03	-3.66	12,368.04	4.46	35,656.45	44.93
Minority Interest	33.45	185.5	-81.97	44.91	-25.52	175.39	-23.71
Consolidated NPT	12,886.07	13,224.53	-2.56	12,323.13	4.57	35,481.06	45.27
Face Value (in Rs.)	10	10	0.00	10	0.00	10
Paid-up Equity	9,112.21	8,631.95	5.56	8,487.16	7.36	8,487.16
Reserves	-	-		-		243,249.80
Basic EPS(Rs.)	14.87	15.54	-4.31	14.52	2.41	41.81	42.26
Diluted EPS(Rs.)	14.87	13.55	9.74	12.47	19.25	35.95	65.45
Public holding (%)	45.64	46.48	-1.81	45.04	1.33	45.27

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