India's PC Jeweller reports narrower loss on festive demand

Tribhovandas Bhimji Zaveri

14/02/2023 16:02

BENGALURU, Feb 14 (Reuters) - India's PC Jeweller Ltd
 PCJE.NS  on Tuesday posted a narrower loss for the third
quarter, helped by strong demand for gold during the festival
and wedding seasons.
    Consolidated loss narrowed to 611.2 million rupees ($7.38
million) in the quarter ended Dec. 31, from a loss of 735.7
million rupees a year earlier.
    The Delhi-based jeweller's consolidated revenue from
operations rose 39.8% to 8.54 billion rupees. Gold prices fell
nearly 4% year-over-year. 
    Compared with the previous quarter, however, gold prices
rose 9.9%.    
    "Showrooms continue to operate, though level of operations
has declined since the beginning of the quarter," the company
said in an exchange filing.
    The company had reported a profit in the preceding two
quarters, breaking a streak of losses for nine straight
quarters. 
    Total expenses in the third quarter climbed nearly 35% to
9.5 billion rupees, mainly as the cost of raw materials soared
79.6% to 7.4 billion rupees.
    Gross margins of its domestic retail business fell to 8.79%
from 10.5% a year earlier.     
        Rivals Kalyan Jewellers India Ltd  KALN.NS  and
Tribhovandas Bhimji Zaveri Ltd  TBZL.NS  had also reported a
rise in third-quarter profits, although Tata-owned Titan Co
 TITN.NS  posted a surprise fall in profit.
    PC Jeweller, embroiled in a legal battle with State Bank of
India  SBI.NS  over the resolution of its non-performing assets,
disclosed a week ago that IDBI Bank  IDBI.NS , Indian Bank
 INBA.NS , Bank of India  BOI.NS  and Karur Vysya Bank  KARU.NS 
have issued loan recall notices to the company.
    The company said on Tuesday it expects other banks in the
consortium to also issue loan recall notices. But it is
confident that it would be able to realize its assets and meet
its liabilities and commitments in the normal course of
business.
    Shares of the company closed 5% lower at 30.3 rupees before
the results.
($1 = 82.7720 Indian rupees)
 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Shilpi
Majumdar)
 ((Hritam.Mukherjee@thomsonreuters.com; +91 9830427878;))