Gitanjali Gems Q1 net profit falls by over 70% to Rs 10.73 cr

Gitanjali Gems today posted a sharp fall in consolidated net profit by over 70 per cent to Rs 10.73 crore due to lower sales and higher financial costs.
The company had reported a net profit of Rs 36.11 crore in the same quarter last year.
In a filing to the BSE, Gitanjali Gems said: "Due to regulatory restrictions on import of gold and unfavourable India and US dollar currency fluctuation, the business of the group was severely impacted."
Net sales declined to Rs 2,072.86 crore in April-June of this fiscal from Rs 3,919.18 crore in the year-ago, it said and added the company's revenue dropped both from India and overseas operations.

The revenue from Indian operations fell to Rs 857.24 crore in April-June of this fiscal from Rs 2,237 crore in the year ago, while income from overseas operation declined to Rs 1,215.62 crore from Rs 1,682 crore in the review period.
The company's expenses fell to Rs 1,850.36 crore from Rs 3,778 crore in the said period.

In the filing, the company said its seven subsidiaries have negative networth for last 3-4 years and it has plans to revive them to make viable. The total investment value of these subsidiaries is Rs 28.95 crore as on June 30.
It also said that the the group's over drawn position in the working capital account stood around Rs Rs 110.56 crore as on June 30 which is mainly on account of not servicing interest debt for the first quarter of this year.

"The consortium bankers have assessed enhanced working capital requirements and the sanctions are awaited," it added.