The B2B gold jewellery maker earned ₹20 crore in the September quarter on income of ₹314 crore, and its board has cleared a showroom search worth up to ₹100 crore.
What happened
For the September quarter, The Hindu BusinessLine reported, Pushpa Jewellers posted a bottom line of ₹20 crore. That is 83% higher than the ₹11 crore it made in the matching quarter a year ago. Income grew at the same pace, climbing to ₹314 crore from ₹172 crore.
Operating earnings rose a little more slowly. The newspaper reported that EBITDA went up 60%, from ₹17 crore to ₹27 crore. The company also held more stock by the end of the period, with inventory at ₹120 crore at September end compared with ₹91 crore at the close of March.
Alongside the numbers, the board gave a committee of directors the job of finding and buying commercial showroom premises, with the total outlay capped at ₹100 crore, The Hindu BusinessLine reported. Chairman and managing director Anupam Tibrewal tied the results to demand from the stores the company supplies, telling the paper that “the financial performance reflects the growing preference of retail jewellers for lightweight, BIS-hallmarked 22K and 18K gold jewellery”.
The background
Pushpa Jewellers works behind the shop counter rather than in front of it. It is a business-to-business manufacturer of gold jewellery, which means its customers are retail jewellers who then sell the pieces on to buyers.
The company has been adding capacity and range this year. In August it began running a new B2B Trade Fulfilment Centre in Mumbai. Over the same half year, according to The Hindu BusinessLine, it built up its collection of lightweight designs made in 22K and 18K gold.
Tibrewal has described the company as having a post-IPO balance sheet. The showroom plan, along with the jump in inventory from ₹91 crore to ₹120 crore, comes against that financial position.
What it means for you
Because Pushpa Jewellers sells to jewellers and not directly to the public, most shoppers are more likely to meet its work at a retailer’s counter than under its own name. Its stronger quarter and wider lightweight range in 22K and 18K gold suggest that more of these lighter pieces are heading to retail stores, in line with the preference Tibrewal described.
Since the chairman pointed specifically to BIS-hallmarked jewellery, buyers may want to look for the BIS hallmark on any piece and confirm whether it is 22K or 18K before they pay. As for the showrooms, the board has so far only authorised a search for premises worth up to ₹100 crore, and the report does not say where or when any space will open, so shoppers may want to watch for the company’s next update.
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Sources
- The Hindu BusinessLine — Pushpa Jewellers posts 83% rise in Q2 profit on strong demand
