PC Jeweller Ltd has reduced its bank loans by more than half to approximately Rs 1,800 crore in the current fiscal year and aims to become debt-free by March next year, driven by better sales and fundraising, said Managing Director Balram Garg.
In September, the company signed a settlement agreement with a consortium of 14 banks led by the State Bank of India (SBI) to clear its outstanding loan, which stood at nearly Rs 4,100 crore as of March 31, 2024.
“Our bank loans are expected to come down to Rs 1,775 crore at the end of the current fiscal year. We are targeting to further reduce our bank loans and become debt-free by March 2026,” Balram Garg told news agency PTI.
The company plans to raise over Rs 1,500 crore in the next fiscal year through a preferential issue of warrants, which will be utilized to clear bank loans. This follows the successful completion of a preferential issue of fully convertible warrants amounting to Rs 2,702.11 crore in October last year.
Business growth and financial performance
Garg highlighted significant sales growth during the first nine months of the fiscal year, helping the company generate profits. “While sales were significantly affected during the COVID-19 pandemic, they have now rebounded, and interest costs have decreased significantly,” he noted.
During the April-December period of FY25, PC Jeweller’s consolidated revenue from operations jumped to Rs 1,545.58 crore from Rs 556.91 crore in the year-ago period.
For the entire 2023-24 fiscal year, the company’s consolidated revenue stood at Rs 605.40 crore.
PC Jeweller posted a net profit of Rs 482.92 crore during April-December FY25, a turnaround from a net loss of Rs 507.72 crore in the corresponding period of the previous year. For FY23-24, the company reported a loss of Rs 629.36 crore.
Operational restructuring and market performance
On the operational front, Garg mentioned that the company has closed some non-profitable showrooms over the past 3-4 years to optimize operations.
PC Jeweller’s shares closed at Rs 13.06 apiece on the BSE on Friday, with a market capitalization of Rs 7,624 crore.
