Company Gitanjali Gems Ltd. reported a 24% drop in revenue, to $ 477.9 million (Rs 30.044 billion) in the second fiscal quarter ended Sept. 30, according to Rapaport. Net profit for the period fell 74% to $ 6.5 million (Rs 405.7 million), while financial expenses jumped 80% to $ 29 million (Rs. 1.8 billion).
The company notes that the Reserve Bank of India's measures aimed at reducing the import of gold had a negative impact on its operations.
"Due to the inaccessibility of gold supplies, Gitanjali continues to reorganize its activities, focusing on jewelry with diamonds and colored gems," said Gitanjali Gems chairman and managing director Mehul Choksi. "The company plans to provide revenues through the huge popularity of its brands and to replenish its portfolio with new brands specializing in luxury goods."
The distribution of income by product category reflects a 39% increase in sales of diamonds to $ 370.9 million (Rs 23.3 billion) and a drop in jewelry sales by 48% to $ 203.8 million (Rs 12.8 billion).
With the aim of increasing international sales, Gitanjali plans to replenish its range of products with precious stones, products made of platinum and silver.