GITANJALI GEMS LIMITED
FIRST QUARTER RESULTS
Q1 FY 2013
GITANJALI GEMS LIMITED has reported
Good results for the first quarter ending June,2012.
Consolidated
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.
OTHER
DETAILS
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”
Significant
Developments
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) ƒ The group obtaining cost advantages arising
from scale economies; (ii) ƒ 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.
Manufacturing
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.
International
Business
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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