PN Gadgil Jewellers Bets On Diamond Business To Clock Rs 8,000-Crore Top Line In FY25
There has been no demand from customers for lab-grown diamonds at any of our stores, Chairperson Saurabh Vidyadhar Gadgil says.
PN Gadgil Jewellers Ltd. is on track to achieve its targeted revenue of Rs 7,500-8,000 crore in the current fiscal, banking on push from strong sales in the studded diamond segment.
Speaking to NDTV Profit, Chairperson and Managing Director Saurabh Vidyadhar Gadgil said that the company will continue to focus on the natural diamond category which has been on a steady growth track.
"We are in the middle of February, so it is difficult to comment on Q4 numbers. I think we will be close to the target of Rs 7,500-8,000 crore top line for FY25. The sales per store have seen an uptick, and there are two reasons for it, we are seeing sales store growth. The increase in prices (of natural diamond) has aided sales store growth, and boosted revenue growth," he said.
On being asked about the impact of man-made diamonds on the company's studded segment, Gadgil said: "There has been no demand from customers for lab-grown diamonds at any of our stores."
According to him, jewellery chains usually sell diamonds in the size bracket of 10 to 11 cents where there is no presence of lab-grown diamonds.
"Lab-grown diamonds are 30, 40 pointers above, where lab-growns could make a price impact, in terms of the price differential. So we don't see lab-growns impacting our diamond sales," Gadgil added.
P N Gadgil Jewellers posted a net profit of Rs 86.03 crore in Q3 FY25 as compared with Rs 57.60 crore in the year-ago period. Revenue from operations jumped 23.51% YoY to Rs 2,435.75 crore in the corresponding quarter of last financial year.
The Ebitda jumped 37.2% YoY to Rs 129.77 crore from Rs 94.58 crore in the quarter ended December 2023. The Ebitda margins expanded to 5.3% in Q3 from 4.8% posted in the same quarter last year.
Commenting on the Q3 numbers, the P N Gadgil Jewellers executive mentioned that traditionally it has been the biggest quarter for the entire jewellery industry.
"I am more than satisfied (with Q3 performance), considering the high prices, considering the demand we had seen in June and July, which could have taken a toll on the Diwali demand, but that has not taken place," he said.
The chairperson revealed PN Gadgil Jewellers crossed Rs 1,000 crore of revenue in October 2024, which was the first time for the company.
