PC Jeweller invests Rs 175 crore on expansion of retail outlets

NEW DELHI: PC Jeweller Ltd today said it has invested Rs 175 crore since last month to buy gold and diamond jewellery stocks for six new retail outlets, and will infuse Rs 225 crore more next quarter on further expansion.

PC Jeweller, which has five jewellery manufacturing plants in Dehradun and Noida, had 30 retail stores till last fiscal and now it has gone up to 36.

The company got listed in December, 2012 after launching its Initial Public Offer ( IPO) of about Rs 600 crore.

"We have added six new showrooms since April. The total investment is about Rs 175 crore, of which Rs 160 crore was on purchase of stocks," PC Jeweller Managing Director Balram Garg told PTI.

These new six jewellery stores are located at Ahmedabad, Vadodara, Hisar, Jabalpur and Shri Ganganagar and Delhi.

Garg said the company would not add any more outlets this quarter, but seven jewellery stores would come up in the next quarter of 2013-14 fiscal.

"The total investment on the opening of seven stores next quarter would be about Rs 225 crore," he added.

Asked about the source of funds, he said these will made utilising the proceeds from IPO and internal accruals.

PC Jeweller had posted Rs 66.90 crore net profit for the third quarter of 2012-13 fiscal, while net sales stood at Rs 1,018.53 crore for the quarter ended December, 2012.

In 2011-12 fiscal, it had registered a net profit of Rs 231.29 crore on a turnover of Rs 3,041.92 crore.

The company's share price was trading at Rs 116 in afternoon trade on BSE, marginally up from previous closing. The market cap stands at about Rs 2,077 crore. Promoters have 70 per cent stake in the company.