Gitanjali Gems Limited, the flagship company of Gitanjali Group, one of India’s leading integrated diamond and jewellery retailing and manufacturing company, announced its results for the third quarter ended 31 December, 2009 of FY 10.

NINE MONTHS FY10  Vs. NINE MONTHS  FY09

• Jewellery Sales turnover increased by 43% to Rs. 2703 cr. as compared to Rs. 1892 cr. in nine months period FY09
• EBIDTA gone up by 37% to Rs. 307 cr. from Rs.223 cr. in nine months period FY09
• PAT of nine months period FY10 stood at Rs. 139 cr. as compared to Rs 120 cr. in nine months period FY09 registering an increase of 16%
• Operating Profit of nine months period FY10 stood at Rs.283 cr. as compared to Rs 201 cr. in nine months period FY09, registering an increase of 41%

Commenting on the Company’s performance in third quarter of financial year 2010 and business outlook, Mr. Mehul Choksi, Chairman and Managing Director, Gitanjali Group said,
“Third quarter results are in-line with our focus on extention in the downstream. Introducing additional and promising jewellery brands and the focus on retail expansion has further helped in gaining market share for the group.”

GITANJALI RETAIL BUSINESS

• Gitanjali has strong retail presence in the world’s largest markets for jewellery. Retail business is a major Contributor in Gitanjali’s revenue. Gitanjali has over 2000 plus retail outlet across India and in the process of expansion in tier II and III cities to cater to new segment of the customer.
• USA is a largest jewellery consuming country and 45% of worldwide diamond jewellery sales are made in the United States. In FY 2007-08, Gitanjali made a strategic acquisition in USA, including Samuels and Rogers, and now has about 137 stores in Centre and across USA, being expanded to 200 stores in the near future.
• Samuels and Rogers of Gitanjali are the 8th largest branded jewellery retail chain in US.
• Gitanjali’s integrated supply chain business model has given an advantage to survive and post profit despite of US recession.
• Gitanjali retail business has spread through all channels and in all geographies, across all the market segments
• Net Profit has gone up because of shift in market from wholesale to retail.

RETAIL STRATEGY

• Gitanjali’s strategy is to increase the market share of various brands and its positioning in the market. Strategy is to generate demand for branded diamond jewellery in the future
• Gitanjali has also acquired a 76% stake in Salasar Retail and will roll out multi-format retail stores under the ’Maya’ brand. The Salasar stake gives Gitanjali Lifestyle 10 multi-storey stores with 200,000 square feet of retail space in Northern India.
• Flagship product brands of the company are able to convert themselves into retail brands.
• The group has introduced many promising brands to its bouquet. The new collection includes World of Solitaire, World of Silver, ME Solitaire, Maya, Gitanjali Menz, Maya Bridal, Bezel and many more.

INDUSTRY

• Overall Gold and jewellery industry is estimated to be about USD 35 billion, out of which 12-15% is constituted by diamond jewellery market. i.e. USD 4 billion, 10% of which is branded jewellery market accounts for USD 500 million
• Overall Industry is growing at the rate of 15-18% and where as share of diamond jewellery is growing at 18-20%
• Out of 10 leading gems and jewellery brands in India 6 of them are under the Gitanjali umbrella. Share of branded diamond jewellery in India is growing by 25-30% and therefore, share of Gitanjali growing at that pace.
• In modern retail, Gitanjali holds 65-70% market share
• These industry dynamics has compounding effect on the growth of the Gitanjali Gems.