PC Jeweller Cuts Debt by 56% in FY25, Targets Debt-Free Status by March FY26

Debt Reduction Milestones and Future Objectives

PC Jeweller Ltd has cut its bank loans by over 50%, now amounting to around Rs 1,800 crore in the current fiscal year. The company aims to be debt-free by March next year, thanks to increased sales and fundraising initiatives.

Settlement Deal and Loan Decrease

• In September, PC Jeweller reached a settlement agreement with a 14-bank consortium led by SBI to settle its outstanding loan of nearly Rs 4,100 crore as of March 31, 2024.
• The company intends to raise over Rs 1,500 crore in the upcoming fiscal year through a preferential issue of warrants, which will be utilized to pay off bank loans.

Sales Expansion and Financial Results

Strong sales growth during the first nine months of the fiscal year has enabled the company to generate profits. Consolidated revenue from operations increased to Rs 1,545.58 crore from Rs 556.91 crore in the same period last year.

• PC Jeweller reported a net profit of Rs 482.92 crore from April to December FY25, a significant improvement from a net loss of Rs 507.72 crore during the same period in the previous year.

Operational Reorganization and Market Performance

To streamline operations, the company has shut down some unprofitable showrooms over the past 3-4 years. PC Jeweller’s shares closed at Rs 13.06 each on the BSE on Friday, with a market capitalization of Rs 7,624 crore.