Gitanjali Q1 net up 55% at Rs 124 crore

MUMBAI: Gitanjali Gems today reported 55.2 per cent growth in net profit at Rs 123.7 crore for the first quarter ended June 30 over the same period last year.

Net profit stood at Rs 79.7 crore in the April-June 2010-11 period, Gitanjali Gems said in a release here.

During the quarter under review, the Group registered 39.1 per cent jump in net sales at Rs 2,595.3 crore compared to Rs 1,865.9 crore in corresponding quarter of last fiscal.

"We are pleased to announce yet another milestone of results for the first quarter ended 30th June, 2011. Worldwide the jewellery category is doing extremely well and has proven to be an investment asset class in the time of uncertainty. Along with gold, diamonds have also grown as an asset class," Gitanjali Gems Managing Director Mehul Choksi said.

With the recent success in India International Jewellery Show (IIJS), the company is expecting all its brands to outperform the growth this year, he added.

Gitanjali Gems is transforming all its leading brands - Gili, Nakashtra, Asmi, D'Damas - into chain stores.

With expansion in retail footprint in the country through franchising, modern retail and own stores, the company is also expanding into gold jewellery.

"Our key brands have introduced gold jewellery collections and their sales are overwhelming," Choksi said.

Gitanjali Gems is into its last phase of implementing restructuring and the new set up will be accomplished in the second quarter, the release added.