Updated February 14th, 2024 at 18:34 IST

PC Jeweller posts fifth consecutive quarterly loss

The company's consolidated net loss widened to Rs 198 crore in the quarter ended December 31, compared to loss of Rs 61.12 crore a year ago.

Reported by: Business Desk
Semi-Precious Gemstones for jewellery | Image:Unsplash
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PC Jeweller, facing continued financial turmoil, reported its fifth consecutive quarterly loss on Wednesday, attributing the downturn to ongoing legal battles with lenders that have impacted revenues.

In a bid to address its outstanding debt, the company has proposed a one-time settlement with lenders, who have tentatively agreed to seek internal approval for the proposal. PC Jeweller has already made an upfront deposit towards the settlement and remains optimistic about a favourable resolution in the near future.

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Despite the challenges, the Delhi-based jeweller is actively pursuing strategies to revitalise its operations, including cost-cutting measures and the introduction of new collections to attract customers.

The company's consolidated net loss widened to Rs 198 crore in the quarter ended December 31, compared to loss of Rs 61.12 crore a year ago and Rs 138 crore in the previous quarter. PC Jeweller has faced liquidity constraints exacerbated by showroom closures amid disputes with lenders, leading to adverse publicity and a significant impact on sales.

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PC Jeweller has been exploring options for an out-of-court settlement with its lenders after several banks, including State Bank of India and Indian Bank, classified its borrowing accounts as non-performing in 2021 and initiated legal action to recover dues.

Revenue plummeted by 95 per cent in December quarter, coinciding with festive season when gold demand typically surges due to cultural significance. The company's shares saw sharp decline of 44 per cent in 2023 following three consecutive years of gains.

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PC Jewellers shares ended unchanged at Rs 50.52 ahead of earnings announcement. 

(With Reuters inputs)
 

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Published February 14th, 2024 at 18:34 IST