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Gitanjali's 4Q Revenue -42%, Reports Loss
FY Revenue -24%, Profit -94%
Jun 1, 2014 8:27 AM
By Deena Taylor
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RAPAPORT... Gitanjali Gems Ltd. reported that its revenue fell 42 percent year on year at $465.7 million (INR 27.54 billion) in the fourth quarter that ended on March 31. However, the company reported a loss of $15.4 million (INR 913 million) compared with a profit of $19.6 million (INR 1.16 billion) one year ago.
Revenue by segment reflected that diamond sales fell 25 percent to $212.7 million (INR 12.57 billion), while jewelry sales declined by 53 percent to $261.8 million (INR 15.48 billion).
During the fiscal year, revenue decreased 24 percent to $2.1 billion (INR 124.36 billion), while Gitanjali's net profit dropped 94 percent to $6.1 million (INR 359.4 million). By segment, diamond sales rose 4 percent to $1.22 billion (INR 71.91 billion), while jewelry sales dropped 36 percent to $1.1 billion (INR 65.2 billion).
Mehul Choksi, the chairman and managing director of Gitanajli, noted that for three quarters of the financial year the industry experienced numerous challenges due to regulatory changes and the non-availability of gold. "As a company, Gitanjali has re-aligned its strategy by focusing more on diamond and studded jewelry and international geographies,” he said.
The company noted that although a change in focus will take around 12 to 18 months to implement and will require a major restructuring of its operations and financing, it is well positioned to undergo transformation with its strong portfolio, manufacturing capabilities, and wide-spread.
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Tags:
Deena Taylor, diamonds, Gitanjali, Jewelry
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