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Gitanjali Q2 net profit up by 52% at Rs 80 cr

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Press Trust of India Mumbai
Last Updated : Jan 21 2013 | 6:21 AM IST

Branded jewellery firm Gitanjali Gems today posted 52 per cent net profit at Rs 80.04 crore for the quarter ended September 30, compared to Rs 52.74 crore in the corresponding period last year.

The company registered a growth of 43 per cent in sales at Rs 2,509.71 crore for the second quarter, against Rs 1,757.73 crore in the same quarter of last fiscal, Gitanjali Gems said in a statement here.

"The momentum in domestic market has been the biggest contributor to this growth," Gitanjali Gems Managing Director Mehul Choksi said.

He said that all brands were transforming themselves into becoming chain stores. "Focusing on the franchisee network, we look forward to penetrating into the hinterlands of the country where the entrepreneurial generation is untapped," Choksi said.

Net profit for the six months ended September 30, grew at 61.66 per cent at Rs 158.74 crore from Rs 98.19 crore in the same period last year.

The company's net sales for the period witnessed a growth of 41 per cent at Rs 4,375.61 crore against Rs 3,109.89 crore in the corresponding period of last fiscal.

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Gitanjali Group is a corporate with interests in diamond jewellery, retail and lifestyle businesses. Some of well-known and well established brands of the company include'Nakshatra', 'Gili', 'Asmi', 'Sangini' and 'D'Damas'.

Going forward, Gitanjali Group is planning for aggressive expansion in the retail space, the statement said.

The company that has a network of over 2,700 points of sales of self owned and franchisee stores, is contemplating consolidation by expanding the existing production facility for the domestic as well as the overseas market.

It plans to double production of domestic diamond jewellery from the existing capacity of 45,000 pieces per month, in the next six months. Like-wise for gold jewellery products, the company will augment capacities in Kolkata and Coimbatore factories.

The company is also enhancing the production capacity for overseas market from existing 1, 00,000 pieces per month.

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First Published: Nov 16 2010 | 5:44 PM IST

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