Q3, seasonally is a good quarter for jewellery companies due to festivals and it also being the peak marriage season of the year when maximum jewllery is purchased in Indian households. Plus the stable prices of gold through the quarter also helped. The average gold rate during this quarter fell from Rs.2,502/gms to Rs.2, 370/gms, a decline of 6%. These are the factors which helped the company end the current Q3 with a net revenue of Rs.2180 crore, up 20% (YoY) with domestic sales at Rs.1586 crore, showing a 22% growth. Around 6% of this came from same store sales growth and remaining by newer stores opened in last one year. Net profit for the quarter was at Rs.164 crore, up 34%. Excess tax provision to the extent of Rs.15 crore was written back during Q3.
Finance cost for Q3 was 2.5% of total revenue v/s 3.07% in previous Q3. This reduction in was mainly on account of renewal of gold on lease (100% of the gold being purchased now is being procured on gold on lease model). The volume of gold sold increased by around 37%, up from 2,886.40 kg sold in previous Q3 v/s 3,956.09 kg sold in current Q3. The company currently has 58 showrooms across 48 cities and this constitutes 3,46,955 sq.feet of retail space.