Gitanjali Gems Q1 up 55% at Rs 124 cr

Gitanjali Gems, India’s leading branded jewellery producer and retailer, reported 55.2% spurt in its net profit at Rs 124 crore for the quarter ended June 30, 2011 as compared to Rs 80 crore in the corresponding quarter of the previous year.

Backed by the double digit growth in the retail jewellery sales in the US, the company posted a 39% jump in net sales at Rs 2,595 crore for the first quarter of the current fiscal as compared to Rs 1,866crore in comparable quarter of last fiscal year.

Mehul Choksi, managing director of the company, attributed the growing financial performance to the rise in consumers’ attraction towards gold and diamond jewellery. Brands are gradually becoming popular during this uncertain economic environment.

The total earning before interest and tax (EBITA) for the quarter reached the level of Rs 198.5 crore, a growth of nearly 45% from Rs 137 crore in the last comparable quarter. Earnings per share (EPS) stood at Rs 14.5 from Rs 9.3 in the same quarter of previous fiscal.