India's PC Jeweller posts fourth straight quarterly loss as legal woes weigh

PC Jeweller

14/11/2023 13:37

BENGALURU, Nov 14 (Reuters) - India's PC Jeweller
 PCJE.NS  posted a loss for the fourth straight quarter on
Tuesday, hurt by ongoing legal battles with its lenders, which
staggered operations and halved revenue at the embroiled
ornaments maker. 
    The company reported a consolidated net loss of 1.38 billion
Indian rupees ($16.59 million) in the three months ended Sept.
30, compared to a profit of 859.2 million rupees a year ago. 
    PC Jeweller's revenue from operations nearly halved to 4.49 
billion rupees in the quarter as it grapples with a "liquidity
squeeze" amid a legal tussle with a slew of lenders.
    "The operations of the company remain disrupted on account
of the ongoing litigation and cases filed against it by its
lenders. This reduction in operations has further resulted in
losses for the company," PC Jeweller said in a statement.
    The ornaments maker said it continues to explore the
possibility of an out-of-court settlement with its lenders,
which include State Bank of India  SBI.NS , Indian Bank
 INBA.NS , IDFC First Bank  IDFC.NS  and others.
    The company said it shut down fourteen owned stores and
three franchise stores in the half year ended in September. PC
Jeweller had 81 showrooms as of March-end 2023, per its latest
annual report.
    Meanwhile, the New Delhi-based firm's total expenses dropped
over 28% to 6.31 billion rupees in the quarter.
    The July-September months precede the festive and wedding
seasons in the country, periods when buying the yellow metal is
considered auspicious, and bullion purchases usually spike. 
    Rivals Tata-owned Titan  TITN.NS , Tribhovandas Bhimji
Zaveri  TBZL.NS  and Kalyan Jewellers India  KALN.NS  have
posted bigger profits in the reported quarter. 

($1 = 83.1760 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Tasim
Zahid)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))