Gitanjali Gem

Gitanjali Gems had jumped up quite a bit since last week and this was on account of its news that its 100% subsidiary, Nakshatra World was also planning to get listed via an IPO. The same day it announced this news, the company also declared its Q2FY17 performance yesterday and thanks to the 57% rise in other income, tax write backs to the tune of Rs.12 crore, it ended the quarter with a consolidated net profit at Rs.47 crore, up 47% on a 15% rise in net sales at Rs.3965 crore.

Costs rose 16% and EBITDA at Rs.201 crore showed a 6% decline. Margins too fell from 6.16% to 5.07%. The company’s interest outgo for H1FY17 is over Rs.30 crore. Its total borrowings currently stands at Rs.5500 crore and cash is at Rs.141 crore.

The demonetization drive is bound to leave a telling effect on the company’s bottomline and these would be numbers to watch for in Q3.