PC Jeweller posts wider Q3 loss, ‘hopeful’ of settlement with lenders

India’s PC Jeweller posted a loss for the fifth straight quarter on Wednesday, as revenues slumped due to the impact of legal battles with its lenders.

The company has proposed a one-time settlement of its unpaid debt to lenders, who have agreed in-principle to seek internal approval for the proposal, it said on Wednesday.

PC Jeweller has already paid an upfront deposit against the settlement and is “hopeful of receiving a positive final outcome towards its settlement proposal soon”.

In an attempt to revive its fortunes, the Delhi-based company is now working to revamp its operations by cutting costs and launching new collections.

Consolidated net loss of the embroiled ornaments maker widened to 1.98 billion rupees (nearly $24 million) in the three months ended Dec. 31, from losses of 611.2 million rupees a year ago and 1.38 billion rupees a quarter ago.

PC Jeweller has been grappling with a “liquidity squeeze” amid shutdowns of some of its showrooms as a tussle with lenders since last year took a toll.

The company had complained about “adverse publicity” hitting sales after a slew of lenders, including State Bank of India and Indian Bank, deemed its borrowing accounts as non-performing from 2021 and moved court to seek due repayments.

The company had been exploring the possibility of an out-of-court settlement with its lenders.

Its revenues plummeted 95% in the December quarter, a period which coincides with key festivals in India, when gold demand is usually higher, as buying bullion is considered auspicious.

Shares of PC Jeweller had slumped 44% in 2023 after three consecutive annual gains.

Meanwhile, festive demand boosted peer Kalyan Jewellers’ profit in December quarter, while higher gold prices led to Titan missing estimates. Bullion prices rose about 9% in the December quarter.