PC Jeweller swings to Q1 profit on robust demand

India’s PC Jeweller swung to a profit in the first quarter on Wednesday as promotions and discounts drove demand.

It reported a consolidated net profit of 1.56 billion rupees ($18.6 million), compared with a loss of 1.72 billion rupees a year earlier, snapping six straight quarters of losses.

Revenue from operations surged nearly six-fold to 4.01 billion rupees.

Additionally, the company, which has struggled with a liquidity squeeze due to disputes with some of its lenders, said it is in the process of offering one-time settlements to the banks.

Indian jewellery retailers are responding to higher gold prices by either raising the selling prices of their products or providing discounts to attract customers.

However, fewer wedding days during the quarter, heightened competition from regional players, and lower footfall due to widespread heatwaves in the country dampened demand for jewellery.

Larger rival Titan missed quarterly profit estimates as higher gold prices dampened demand, while Kalyan Jewellers reported higher profit owing to better sales.