Gitanjali Gems Q3 profit drops 73%, interest cost bites

Gitanjali Gems today suffered a 73 per cent fall in its standalone net profit at Rs 5 crore during the third quarter to December on lower sales and high interest cost.
It had clocked a net profit of Rs 18.46 crore in the same period of 2015-16.
Net income fell to Rs 1,925.08 crore in October-December of 2016-17, from Rs 2,641.12 crore in the previous year, said the company in a BSE filing.
Diamond sales dropped to Rs 387.74 crore, from the earlier Rs 846.43 crore, and jewellery sales fell to Rs 1,577.35 crore, from Rs 1,833.16 crore.
Expenses remained lower at Rs 1,873.11 crore as against Rs 2,533.38 crore, but interest costs were higher at Rs 118.31 crore compared with Rs 75.45 crore in the said period.

The company has more than 4,000 points of sale in India.
It also has stores in the US, China and Japan, along with presence in Europe and West Asia.