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Gitanjali Gems Ltd., which is listed on the Bombay Stock Exchange (BSE), has reported a profit of ₹5 crore ($746,286) for the third quarter of fiscal 2016-17, a 76 percent drop compared to the ₹20.6 crore ($3.1 million) during the same period in the previous financial year. The steep drop is due to a ₹119 crore ($17.8 million) interest payment which took a major bite out of the ₹122 crore ($18.2 million) pre-tax profit. Revenue for the period was ₹1,995 crore ($298 million), a drop of 4.2 percent from the ₹2,082 crore ($311 million) in the third quarter of the previous year. The company’s stock was trading 7.73 percent down from its previous closing at the time of reporting. Gitanjali has recently announced that Gitanjali Infratech, a wholly owned subsidiary, has acquired Dynamic...
Bombay Stock Exchange (BSE)-listed PC Jeweller posted a 27.39 percent drop in net profit to ₹106.97 crore ($16 million) for the third quarter of fiscal 2016-17 as domestic sales in the October-November period plunged in the wake of the government’s demonetisation initiative. The company had registered profits of ₹147.34 crore ($22 million) over the same period in the previous fiscal year. Revenues too fell to ₹2,107.37 crore ($315 million) from ₹2180.48 crore ($326 million) the previous year. The company said, however, that sales had picked up once again in December and that they had returned to normal levels by January. It stated it was confident of making up the lost sales of the third quarter in the fourth. The company said it had also experienced a spike in orders from the UAE over...
Jewellery sales in India, having dropped steeply in November and December 2016 in the wake of the government’s currency reform measures, have begun picking up again from the end of January this year, with more credit card payments and online transactions, Ashok Minawala, a director of the All India Gems & Jewellery Trade Federation (GJF), told the Hindustan Times. While historically more than half the estimated ₹3.5 trillion ($52.3 billion) Indian jewellery sales market has typically seen cash transactions, some 80 percent of purchases in the last few weeks have been through card transactions. A senior government official was quoted as saying the official aim was to get such a result as authorities perceived a great deal of unaccounted wealth as being used in jewellery purchases. Tax...
Tribhovandas Bhimji Zaveri Limited, the Indian jewellery retailer known popularly as TBZ, reported a 2.49 percent drop in third quarter revenue for fiscal 2017 on a year-on-year basis to ₹1,316 crore ($197 million). Pre-tax earnings were, however, up 58.89 percent to ₹57.48 crore ($8.6 million). The company reported a 9.55 percent growth in third quarter revenue to ₹542.99 crore ($81.25 million) and a pretax profit of ₹19.15 crore ($2.87 million), up 11.86 percent on a year-on-year basis. Company Chairman and Managing Director Shrikant Zaveri stated,“We had a very encouraging start to the quarter and witnessed robust sales in October. The withdrawal of high denomination banking notes impacted the jewellery sales in November, however the situation gradually normalised in December. Despite...
The Indian bridal jewellery market, which still accounts for the bulk of jewellery sales in the country and driven by thousands of years of unchanging tradition, is now impelled by Facebook trends and no longer depends on the senior women in the family for purchase decisions. “The bridal jewellery market has changed beyond anything the traditional jeweller could imagine,” says Daxesh Soni of Parasmani Gems Pvt. Ltd. of Ahmedabad. “Where once the styles and designs could literally be traced back centuries, what sells today is fusion of traditional and modern design,” he adds. “While a traditional neckpiece would have between 200 and 300 grams of gold, today, we’re seeing demand for styles that have as little as 50 grams of gold,” Soni says. “The younger generation are no longer enamoured...
Indian Finance Minister Arun Jaitley announced the country’s budget for fiscal 2017-18 in Parliament today, announcing a policy pivot toward boosting the country’s huge rural economy, which supports over 80 percent of the population, many of them poor and underprivileged. The government also kept up the momentum of its push for a greater cashless economy by imposing a penalty on cash transactions over ₹3 lakh ($4,450). The Finance Minister also said, however, that the country had to focus its export infrastructure in a competitive world, and announced a new scheme, the Trade Infrastructure for Export Scheme (TIES) towards building the country’s export competency. Among the proposed measures is a zero tax on those earning less than ₹2.5 lakh ($3,700) and a 5 percent income tax for those...