Thursday, August 16, 2012
GITANJALI GEMS LIMITED - FIRST QUARTER RESULTS - Q1 FY 2013 - NET SALES :31%UP; NET PROFIT UP 21% YoY
GITANJALI GEMS LIMITED
FIRST QUARTER RESULTS
Q1 FY 2013
GITANJALI GEMS LIMITED has reported Good results for the first quarter ending June,2012.
Gitanjali Gems Limited, one of the leading global jewellery players, today reported its financial results for the first quarter ended June 30, 2012.
Turnover (net Sales): Rs.3,384.73 Cr (in Q1 FY13); against Rs. 2576.25 Cr in Q1 FY 12 (Up 31%)
EBIT : Rs.348.55 Cr in Q1 FY 13; against Rs. 216.38 Cr in Q1 FY 12 (up 61%)
EBIT % : 10.3% in Q1 FY 13; against 8.4% in Q1 FY 12
Net Profit : Rs.148.98 Cr in Q1 FY 13; Rs. 123.23 Cr in Q1 FY 12 (Up 21%)
Net Profit % : 4.4% in Q1 FY 13; 4.8% in Q1 FY 12
Diluted EPS ‐ Rs. 16.18 in Q1 FY 13; Rs.12.47 in Q1 FY 12 (Up 30%);
EBIT for Jewellery business stood at Rs. 217.08 Cr (11.9 % of Jewellery sales) achieving a growth of 44 % compared to the Jewellery EBIT in Q1 FY 12..
Paid-up Equity : Rs.91.12 Cr; Face Value :Rs.10;
Public Shareholding (%) : 41.22%
52 week high/low price : Rs.420.55/250.95
Current MP : Rs.348.
Jewellery Sales grew by 36% to Rs. 1826.10 Cr during the first quarter of FY13
Balanced portfolio of domestic and international jewellery sales.
Creation of international jewellery hubs and distribution centres in the Middle‐East and Hong Kong.
Introduction of additional categories of gold jewellery, kundan, jadau, polki and coloured stones in India
Commenting on the quarterly performance, Mr. Mehul Choksi, CMD, Gitanjali Gems, said :
“We are an integrated, dominant global jewellery player, with a powerful and diverse product and brand portfolio. We are therefore, well‐poised to capture opportunities stemming from the increasing appetite for branded jewellery in India. Our penetration into smaller towns and cities of India is in step with our strategic focus.” Mr. Choksi further added that “We will also continue to offer a judicious mix of diamond and gold jewellery and a supreme retail experience in the world’s leading jewellery markets. Gitanjali will simultaneously, look to capitalize on opportunities in other markets that have been exhibiting a growing preference for branded jewellery”
Introduction of additional categories : Gold collections, polki, kundan, jadau and coloured stones have been introduced to supplement product brand offerings in India. These collections have served to link traditional jewellery demand to modern jewellery preferences.
Retail expansion via the franchisee route : Retail expansion in India via the franchisee route continues to be the area of strategic focus for the group. Gitanjali wants to establish itself powerfully in India’s Tier 2 and Tier 3 towns through the franchisee model. This initiative has resulted in a surge in sales and an even more rapid upsurge in profits. This is largely on account of‐ (i) The group obtaining cost advantages arising from scale economies; (ii) A vigorous focus on retailing branded jewellery through franchisees
E‐Commerce and E‐Franchisees : The group has employed the use of concepts such as E‐commerce and E‐franchising. This offers high growth and high profitability with minimal capital requirements. The group expects to achieve exceptional returns and growth from this model.
Creation of International jewellery hubs : The Group aims to expand its overseas business in the Middle‐east and the Far‐ east. This was reflected in the launch of three new stores in Dubai and one store in Singapore. Gitanjali has always been a trend‐setter. It has created international jewellery hubs in the Middle‐East and Hong Kong. It seeks to build on the competitive advantage it derives from being a first‐mover and a fast‐mover by reaching deeper into global jewellery markets. The Middle East and Hong Kong will play a major role in this effort.
Successful establishment of product brands as national brands :
Having recognized regional diversities and consumer preferences segment‐wise, the group responded appropriately. This has resulted in the successful positioning of product brands as national brands.
Accomplished reorganization of the Indian Business structure :
The group has completed the re‐alignment of its Indian business structure by transferring all the Indian businesses to Gitanjali Brands Ltd. This re‐alignment offers immense value unlocking potential for stakeholders. A similar exercise is underway to consolidate the group’s international jewellery division under its Hong Kong subsidiary Aston Luxury Group. This re‐alignment allows for independent focus on every aspect of the group’s business.
About Gitanjali Group
Gitanjali Group is one of the world’s largest integrated jewellery sector players with interests in the diamond jewellery, retail and lifestyle businesses.
It is strategically integrated across the value chain with a strong presence at every level of the business, right from sourcing diamonds to retailing its products through a vast network of over 4000 points of sale. It has a successful track record in international branding and marketing campaigns, innovations and developing modern retail outlets that serve the end consumer.
The Group is the pioneer of branded jewellery in India. Its several well‐ established brands are positioned strategically to tap the rapidly growing branded jewellery market in India as well as the international market. The Group’s portfolio of brands include ‘Nakshatra’, ‘Gili’, ‘Asmi’, ‘Sangini’ and ‘D’Damas’ to name a few.
The Group has diversified by making a foray into the infrastructure space and developing Special Economic Zones (SEZs) in India primarily for the Gems and Jewellery industry.
The Group has 3 world‐class diamond polishing facilities in India located at Surat, Mumbai and Hyderabad and 8 state‐of‐the‐art jewellery manufacturing facilities in India and overseas. Domestic jewellery manufacturing facilities are located at Mumbai, Hyderabad, Coimbatore, Kolkata, Surat and Jaipur, while international manufacturing set up is in Bangkok and China. The Group’s International design centre is in Italy.
Retailing and Distribution
The Group’s Channels of distribution include Shop‐in‐shops in departmental stores, distribution through other retailers, franchisees and own stores (of exclusive as well as multi‐brands), e‐commerce and corporate sales. The multi‐channel strategy gives flexibility to reach out to consumers in the hinterlands of the country and be format‐ready for different types of locations. The franchisee channel has enabled the Group penetrate towns such as Hospet, Satna, Angul, etc. With these concepts, the Group has converted many of its key product brands into retail brands e.g. Nakshatra, Gili, D’damas, Asmi and Diya are EBOs.
Multi‐brand outlets such as Maya Jewels, Jewel Souk and Gitanjali Jewels are made available in different sizes of investments to suit franchisee requirements. Besides, the Group also caters to lifestyle categories through its watch stores of BEZEL and through Maya Lifestyle which is a department store concept.
The Group has a strong presence in leading jewellery markets of the world. It has the retail chain of Samuels & Rogers in USA with 110 stores, and its product brands such as Passion Stone, Tacori, Encore, etc. are distributed pan USA.
In Middle East, it has four stores in Dubai and over 50 distribution points through leading retail chains of GCC countries. In the third largest market of jewellery, China, the Group has distribution to a chain of 40 stores and a manufacturing facility for local as well as international supply.
In Japan, the Group has a significant stake in a jewellery selling TV channel called Gems TV, as well as a strong distribution network supplying to other leading retail chains of Japan.
In Italy, the Group owns leading brands such as Stefan Hafner, Io Si, Nouvelle Bague, Porrati and Valente. The Italian brands and designs are available to penetrate markets such as Russia, Saudi Arabia, China and the Far‐east.
Through its recent acquisition, the Group also has a well established distribution chain in the UK supplying its jewellery to leading retail chains in Britain.
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