Gitanjali Gems' Q1 glitters on strong profitability; stock up 20 per cent

Branded jewellery retailer Gitanjali Gems has posted its first quarter results on September 13, where the company has posted a 3-fold jump in Q1 profits to Rs 57 crore.

Company's revenue for Q1 has increased to Rs 3710.43 crore as against Rs 2845.10 crore in the year ago period, reflecting a growth of 30.40 per cent.

The jewellery retailer has seen its finance cost fall to Rs. 137.42 crore from Rs. 194.38 crore, representing a decline of 29.30 per cent. On the positive side, company has seen its other income reduce, for the quarter in review, to Rs 75.19 crore.

Segment wise revenue breakup has seen Gitanjali’s jewellery business continue to perform strongly with increase in sale of 36.26 per cent, whereas company's diamond business revenue has declined, showing a sluggishness in demand environment.

Reacting to a stellar set of numbers, shares of Gitanjali Gems have been locked on the upper circuit at Rs 57.30, swelling by 20 per cent on NSE.