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Gitanjali Gems FY13 Media Release PDF
Gitanjali Gems FY13 Media Release PDF
Gitanjali Group announces results for the financial year ended March 31st, 2013
EBITDA 30%
PAT 21%
Rs. 16,418.5 cr
Rs. 1,114.5 cr
Rs. 591.7 cr
Editors Synopsis
Net Sales in FY2013 were Rs. 16,418.5 cr as against Rs. 12,498.3 cr. in
last year; up 31%
PAT in the year was Rs. 591.7 cr as against Rs. 487.3 cr last year
EPS for FY13 was Rs. 64.5, up 16%
Jewellery Sales in the year were at Rs. 10,165.5 cr up 45%
EBIT in the year was Rs. 1,081.9 cr as against Rs. 856.2 cr in the last
year
Owns portfolio of top 6 out of 8 jewellery brands in India and well
known international brands
Balanced portfolio of gold jewellery and diamond jewellery as well as
the domestic and international businesses
Focus on franchise-led growth in India and diversification in
International markets
India is transforming from traditional to modern retail and Gitanjali
has multi formats to capitalize on the potential of the same
E-Commerce emerging as a strong platform for the groups jewellery
retail
Sales Turnover
EBIT
EBIT Margin (%)
Net Profit
PAT Margin (%)
EPS
Consolidated
3 months ended 31st March
Q4FY13
Q4FY12
% chg
4,750.5
3,532.1
35%
256.9
207.5
24%
5.4%
5.9%
118.9
102.9
16%
2.5%
2.9%
13.0
11.7
11%
For the financial year ended March 31, 2013, the company achieved Net Sales of Rs. 16,418.5 cr
vs. Rs. 12,498.3 cr in the last year, registering a growth of 31%. The companys net profit
increased to Rs. 591.7 cr, as against Rs. 487.3 cr, achieving a growth of 21% on a YoY basis.
Consequently, EBIT for FY13 was Rs. 1,081.9 cr, a growth of 26% over FY12.
Earnings per Share for FY13 stood at Rs. 64.5 as compared with Rs. 55.5 for the last year,
achieving a growth of 16%.
Commenting on the quarterly performance, Mr. Mehul Choksi, Chairman and Managing
Director, Gitanjali Gems Ltd. said, The diversified portfolio of channel mix, category mix and
geographic mix has contributed to the desired growth. We remain focused on the quality of
growth to achieve better realizations from our branded jewellery business. Mr. Choksi further
added, India is our key market with immense opportunity. We have added a significant number
of franchisees and own stores especially in the Tier 2 and 3 towns of the country and we see a
continuous expansion in these channels throughout India.
Consolidated
FY13
FY12
% chg
6,885.1
10,165.5
(673.5)
41.4
16418.5
5,944.4
7,007.5
(490.8)
37.3
12,498.3
16%
45%
EBIT by Category
Diamond Segment
Jewellery Segment
Others
Total
268.8
827.8
(14.7)
1081.9
248.7
619.1
(11.6)
856.2
8%
34%
Revenues by Geography
India
International
9,598.8
6,819.7
6046.9
6451.4
59%
6%
58%
42%
48%
52%
Revenues by Category
Diamond Segment
Jewellery Segment
Inter Segment
Others
Total
% Share by Geography
India
International
31%
26%
Business Highlights
Gitanjalis performance in the fourth quarter and in the financial year 2013 is testimony to its
all-round capabilities and strengths. The third quarter, witnessed a surge in sales on the back of
a strong festive and wedding season with the greater number of auspicious days for marriages
also contributing to the increased level of activity. Christmas and the New Year were prime
drivers for growth internationally and this momentum continued through the fourth quarter as
well.
During the financial year 2013, the gold jewellery category sales grew significantly. However, in
coming years the companys focus remains on diamond jewellery and precious stones which
are expected to expand by 30-40%. Further, Gitanjalis global footprint in markets such as US,
Japan, Middle East and India, provides better opportunities to offer these value added
categories.
geographies or cities across the country. Individual formats such as Gitanjali Jewels have
now crossed 110 stores, Gili has 40 stores and 180 SIS whereas Nakshatra is at 25 stores,
110 SIS and 800 retailers through its distribution network. Each of these major formats
can independently be amongst the largest jewellery chains in the country.
Brand Extension
o Besides being an established brand for diamond and gold jewellery, Gitanjali also
launched extensions of its popular brands in other lifestyle categories. Gili Apparel
collection is already developed while other categories such as bags, accessories and eye
wear are in pipeline. This extension to the next level is going to fuel cross category
synergies amongst the existing loyal customers of Gitanjali brands.
International Developments
o The last quarter has been exceptionally good for Gitanjalis International business. US,
Japan and the Middle- east were the best performing markets for the group last year.
Double-digit growth was achieved in Like-to-Like sales in the US and Japan. US and
Japan are 100% diamond jewellery markets not only offering high margins at the front
end but also offering additional margins to the manufacturing and supply chain in India.
o A Strong 9-week holiday season in the US contributed to 18% comparative sales gain
over last two years for Gitanjalis US based subsidiary Samuels. The momentum
continued post the holiday season with a 13% growth in January 2013 alone and an 8%
rise in store sales for the year.
o The 4 stores opened in the Middle-East last year have achieved excellent sales during
the quarter. Also, Gitanjalis established distribution business in the Middle East grew
significantly during the year. The Middle-east witnessed an inorganic growth of 40-45%
due to opening 4 new stores and 30 SIS during the last year. Recently the company also
signed Shop-in-shop contracts with Paris Gallery to launch its products in Dubai. The
region offers significant scope for further expanding the branded diamond jewellery
business.
o The strategic stake of Gitanjalis Japanese business (Gems TV) has been merged with
IMACBC, a jewellery manufacturing company, so that both Gems TV and IMACBC avail
of synergies of an integrated business model.
Gitanjalis international presence allows it to balance its portfolio across geographies.
Business Outlook
Serving the vast Indian market for branded jewellery through rapid penetration via a rapidly
growing franchise route.
Diversifying the range of offerings so as to attract a wider range of consumers.
Focusing on expertise in workmanship and design with the ability to manufacture lightweight exclusive diamond jewellery to compensate for high gold prices.
Positioning as an established player in mature and high margin markets such as Japan and
the USA.
Developing channels such as e-commerce to establish strong, sustainable connect with
customers looking for novelty and convenience in jewellery purchases.