Gitanjali Gems recommends 30% dividend

The company reported net sales of Rs 16,418 cr for FY13 a growth of 31%

Spurred by strong financial performance in the fiscal 2012-13, Gitanjali Gems recommended 30% dividend at the rate of Rs 3 per equity share of the face value of Rs 10 each.

Gitanjali Group, which owns India’s leading jewellery brands like Gili, Nakshatra, Asmi, D’damas, Sangini, Gitanjali Jewels, Maya Jewels, Diya , reported net sales of Rs 16,418.5 crore for FY13, registering a growth of 31% YoY.

The group’s net profit increased to Rs 591.7 crore as against Rs. 487.3 crore, achieving a growth of 21% on a YoY basis.
For the fourth quarter of FY’13, sales grew by 35% at Rs 4,750 crore against Rs 3,532 crore in the previous financial year and net profit stood at 118.9 crore, a growth of 16% over same period last year.

Jewellery sales were up 45% at Rs 10,165 crore in FY13 compared to FY12 and for the Q4 FY13, the same was up by 57% at Rs 3,311 crore.

Commenting on the performance, 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.”

“India is our key market with immense opportunity. We have added a significant number of franchisees and own stores especially in the Tier II and III towns of the country and we see a continuous expansion in these channels throughout India,” he added.

Gitanjali’s performance in the fourth - quarter and in the financial year 2013 is testimony to its all-round capabilities and strengths. During the financial year 2013, the gold jewellery category sales grew significantly. However, in coming years the company’s focus remains on diamond jewellery and precious stones which are expected to expand by 30-40%. Further, Gitanjali’s global footprint in markets such as US, Japan, Middle East and India, provides better opportunities to offer these value added categories.

The organisation introduced new collections and categories and included freshness in designs to capture volumes. This led to increased conversions. Gitanjali’s other initiatives including jewellery exhibitions and shows in metros as well as in smaller cities and towns stimulated interest and boosted footfalls in stores.

Gitanjali’s inorganic expansion led to its acquiring two popular jewellery brands, ‘Nirvana’ and ‘Viola.’ These acquisitions augmented the company’s brand portfolio and also enhanced the company’s retail footprint through the addition of 166 points of sale in the shop-in-shops format.