PC Jeweller Limited Reports Q3 FY25 Results: Profitability and Revenue Surge

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New Delhi, February 4, 2025

PC Jeweller Limited (BSE: 534809, NSE: PCJEWELLER) released its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024. The company showcased robust revenue growth and improved profitability despite ongoing financial challenges.

Key Financial Highlights (Standalone)

(Figures in ₹ Crores, except EPS)

ParticularsQ3 FY25Q2 FY25Q3 FY249M FY259M FY24FY24 (Audited)
Revenue from Operations638.73504.9740.051,544.24556.91605.40
Other Income44.1543.733.58126.6753.7964.47
Total Income682.88548.7043.631,670.91610.33669.87
Total Expenses536.59425.17243.931,317.681,117.871,301.64
Profit/(Loss) Before Tax146.29123.53(200.30)353.23(507.54)(631.77)
Net Profit After Tax (PAT)146.21178.97(200.30)479.98(507.72)(629.36)
EPS (₹) - Basic0.280.38(0.43)0.99(1.10)(1.36)
EPS (₹) - Diluted0.160.38(0.43)0.54(1.10)(1.36)
Key Observations:
  • Revenue saw a massive YoY growth, reaching ₹638.73 crore in Q3 FY25 from just ₹40.05 crore in Q3 FY24.
  • Profitability rebounded sharply, with PAT at ₹146.21 crore versus a loss of ₹200.30 crore in the previous year.
  • EPS improved significantly, marking a turnaround in the company’s financial health.

Consolidated Financial Performance

  • Revenue: ₹639.45 crore in Q3 FY25 vs. ₹40.06 crore in Q3 FY24.
  • PAT: ₹147.96 crore compared to a loss of ₹197.98 crore in Q3 FY24.
  • Total income: ₹683.44 crore in Q3 FY25, showing substantial improvement YoY.

Key Business Developments

1. Preferential Issue of Fully Convertible Warrants

  • The company successfully raised ₹2,702.11 crore through 48.08 crore warrants, with 99.89% subscription.
  • These funds will be used partly for loan repayment and working capital.
  • 11.5 crore warrants were allotted on September 30, 2024, and 36.58 crore were allotted in Q3 FY25.

2. Trade Receivables & Credit Loss Provision

  • ₹1,514.32 crore remains outstanding in export receivables, exceeding RBI timelines.
  • The company has applied for condonation under FEMA regulations.
  • A cumulative Expected Credit Loss (ECL) of ₹263.68 crore was accounted for.

3. One-Time Settlement (OTS) with Lenders

  • The company finalized an OTS agreement with all consortium banks on September 30, 2024.
  • No finance costs were accounted for during the quarter as part of the restructuring.

4. Equity Share Split

  • The face value of equity shares was split from ₹10 to ₹1 effective December 16, 2024, improving liquidity.

Auditor's Review & Concerns

  • Unresolved Discounts: ₹183.16 crore of export discounts from FY19 are still awaiting approval.
  • Inventory Under Court Custody: Some inventory remains under DRAT (Debt Recovery Appellate Tribunal) control since January 2023.
  • Financial Compliance Issues: Pending FEMA approvals for delayed foreign payments.

Management Commentary

Balram Garg, Managing Director, PC Jeweller Limited, stated: "Our strong revenue growth and return to profitability are a testament to the resilience of our business model. The preferential issue of warrants has bolstered our financial stability, and we remain committed to resolving outstanding regulatory matters while driving sustainable growth."

Outlook & Strategic Direction

  • Debt Reduction: Funds from the preferential issue will ease financial stress.
  • Regulatory Compliance: Proactive measures are being taken to resolve FEMA issues.
  • Operational Growth: Strengthened focus on domestic market expansion amid declining export revenues.

Conclusion

PC Jeweller Limited has staged a strong financial comeback in Q3 FY25, with significant improvements in revenue and profitability. While regulatory and financial uncertainties remain, the company’s restructuring efforts and capital infusion signal a positive trajectory for the coming quarters.
 
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