India's PC Jeweller posts wider Q3 loss, 'hopeful' of settlement with lenders

PC Jeweller

14/02/2024 12:52

BENGALURU, Feb 14 (Reuters) - India's PC Jeweller
 PCJE.NS  posted a loss for the fifth straight quarter on
Wednesday, as revenues slumped due to the impact of legal
battles with its lenders. 
    The company has proposed a one-time settlement of its unpaid
debt to lenders, who have agreed in-principle to seek internal
approval for the proposal, it said on Wednesday. 
    PC Jeweller has already paid an upfront deposit against the
settlement and is "hopeful of receiving a positive final outcome
towards its settlement proposal soon". 
    In an attempt to revive its fortunes, the Delhi-based
company is now working to revamp its operations by cutting costs
and launching new collections. 
    Consolidated net loss of the embroiled ornaments maker
widened to 1.98 billion rupees (nearly $24 million) in the three
months ended Dec. 31, from losses of 611.2 million rupees a year
ago and 1.38 billion rupees a quarter ago. 
    PC Jeweller has been grappling with a "liquidity squeeze"
amid shutdowns of some of its showrooms as a tussle with lenders
since last year took a toll. 
    The company had complained about "adverse publicity" hitting
sales after a slew of lenders, including State Bank of India
 SBI.NS  and Indian Bank  INBA.NS , deemed its borrowing
accounts as non-performing from 2021 and moved court to seek due
repayments.
    The company had been exploring the possibility of an
out-of-court settlement with its lenders.
    Its revenues plummeted 95% in the December quarter, a period
which coincides with key festivals in India, when gold demand is
usually higher, as buying bullion is considered auspicious.
    Shares of PC Jeweller had slumped 44% in 2023 after three
consecutive annual gains. 
    Meanwhile, festive demand boosted peer Kalyan Jewellers'
 KALN.NS  profit in December quarter, while higher gold prices
led to Titan  TITN.NS  missing estimates. Bullion prices rose
about 9% in the December quarter.
   
($1 = 83.0209 Indian rupees)

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