Press Release: Results for FY2013

May 28th, 2013 (Mumbai)

Gitanjali Group announces results for the financial year ended March 31st, 2013

Net Sales 31%

EBITDA 30%

PAT 21%

Rs. 16,418.5 cr

Rs. 1,114.5 cr

Rs. 591.7 cr

Editors Synopsis
Net Sales in FY2013 were Rs. 16,418.5 cr as against Rs. 12,498.3 cr. in
last year; up 31%
PAT in the year was Rs. 591.7 cr as against Rs. 487.3 cr last year
EPS for FY13 was Rs. 64.5, up 16%
Jewellery Sales in the year were at Rs. 10,165.5 cr up 45%
EBIT in the year was Rs. 1,081.9 cr as against Rs. 856.2 cr in the last
year
Owns portfolio of top 6 out of 8 jewellery brands in India and well
known international brands
Balanced portfolio of gold jewellery and diamond jewellery as well as
the domestic and international businesses
Focus on franchise-led growth in India and diversification in
International markets
India is transforming from traditional to modern retail and Gitanjali
has multi formats to capitalize on the potential of the same
E-Commerce emerging as a strong platform for the groups jewellery
retail

Key Financial HighlightsIn Rs. Cr

Sales Turnover
EBIT
EBIT Margin (%)
Net Profit
PAT Margin (%)
EPS

Consolidated
3 months ended 31st March
Q4FY13
Q4FY12
% chg
4,750.5
3,532.1
35%
256.9
207.5
24%
5.4%
5.9%
118.9
102.9
16%
2.5%
2.9%
13.0
11.7
11%

12 months ended 31st March

FY13
FY12
% chg
16,418.5
12,498.3
31%
1,081.9
856.2
26%
6.6%
6.9%
591.7
487.3
21%
3.6%
3.9%
64.5
55.5
16%

For the financial year ended March 31, 2013, the company achieved Net Sales of Rs. 16,418.5 cr
vs. Rs. 12,498.3 cr in the last year, registering a growth of 31%. The companys net profit
increased to Rs. 591.7 cr, as against Rs. 487.3 cr, achieving a growth of 21% on a YoY basis.
Consequently, EBIT for FY13 was Rs. 1,081.9 cr, a growth of 26% over FY12.
Earnings per Share for FY13 stood at Rs. 64.5 as compared with Rs. 55.5 for the last year,
achieving a growth of 16%.
Commenting on the quarterly performance, Mr. Mehul Choksi, Chairman and Managing
Director, Gitanjali Gems Ltd. said, The diversified portfolio of channel mix, category mix and
geographic mix has contributed to the desired growth. We remain focused on the quality of
growth to achieve better realizations from our branded jewellery business. Mr. Choksi further
added, India is our key market with immense opportunity. We have added a significant number
of franchisees and own stores especially in the Tier 2 and 3 towns of the country and we see a
continuous expansion in these channels throughout India.

Segment Wise BreakupIn Rs. Cr

Consolidated
FY13

FY12

% chg

6,885.1
10,165.5
(673.5)
41.4
16418.5

5,944.4
7,007.5
(490.8)
37.3
12,498.3

16%
45%

EBIT by Category
Diamond Segment
Jewellery Segment
Others
Total

268.8
827.8
(14.7)
1081.9

248.7
619.1
(11.6)
856.2

8%
34%

Revenues by Geography
India
International

9,598.8
6,819.7

6046.9
6451.4

59%
6%

58%
42%

48%
52%

Revenues by Category
Diamond Segment
Jewellery Segment
Inter Segment
Others
Total

% Share by Geography
India
International

31%

26%

Business Highlights
Gitanjalis performance in the fourth quarter and in the financial year 2013 is testimony to its
all-round capabilities and strengths. The third quarter, witnessed a surge in sales on the back of
a strong festive and wedding season with the greater number of auspicious days for marriages
also contributing to the increased level of activity. Christmas and the New Year were prime
drivers for growth internationally and this momentum continued through the fourth quarter as
well.
During the financial year 2013, the gold jewellery category sales grew significantly. However, in
coming years the companys focus remains on diamond jewellery and precious stones which
are expected to expand by 30-40%. Further, Gitanjalis global footprint in markets such as US,
Japan, Middle East and India, provides better opportunities to offer these value added
categories.

Gitanjali employed the use of innovative attributes to capitalize on opportunities in the

environment. The organisation introduced new collections and categories and included
freshness in designs to capture volumes. This led to increased conversions. Gitanjalis other
initiatives including jewellery exhibitions and shows in metros as well as in smaller cities and
towns stimulated interest and boosted footfalls in stores.
Gitanjali was also active in the e-commerce space. The organisation recognizing the potential
of the online medium, made itself available through further developing its e-commerce
platform which attracted a growing number of online jewellery purchasers and efficiently
serviced their needs. Having an integrated business model, Gitanjali is positioned to explore the
e-commerce platform globally and reach out to millions of customers from its existing as well as
its expanding database.
Gitanjalis inorganic expansion led to its acquiring two popular jewellery brands, Nirvana and
Viola. These acquisitions augmented the companys brand portfolio and also enhanced the
companys retail footprint through the addition of 166 points of sale in the shop-in-shops
format.

Key Developments during the financial year 2013

Manufacturing
o Gitanjali is one of the worlds largest precious jewellery manufacturing companies. The
company has a proven track record and success in manufacturing jewellery for its
distribution and retail network globally. This integrated business model with a strong
manufacturing base offers immense opportunities for downstream expansion. Gitanjali
is looking to further strengthen its manufacturing capabilities through organic and
inorganic routes.
o As a step towards enhancing its manufacturing capabilities further, Gitanjali opened a
factory in Jaipur to manufacture hand crafted Jadau, Kundan, Meena and Polki
jewellery.
Retail expansion
o At the end of the financial year 2013, Gitanjali increased its retail network by around
90,000 sq. ft through 72 franchisees, 26 own stores. Besides, it also opened 66 SIS and
added 150 retailers through its distribution channel.
o Gitanjali has 6 major EBO formats and 3 popular MBO formats for the expansion of its
retail network. Since the brand positioning/target segments are diverse, the multiformat strategy gives the company flexibility to expand its retail network in the same

geographies or cities across the country. Individual formats such as Gitanjali Jewels have
now crossed 110 stores, Gili has 40 stores and 180 SIS whereas Nakshatra is at 25 stores,
110 SIS and 800 retailers through its distribution network. Each of these major formats
can independently be amongst the largest jewellery chains in the country.
Brand Extension
o Besides being an established brand for diamond and gold jewellery, Gitanjali also
launched extensions of its popular brands in other lifestyle categories. Gili Apparel
collection is already developed while other categories such as bags, accessories and eye
wear are in pipeline. This extension to the next level is going to fuel cross category
synergies amongst the existing loyal customers of Gitanjali brands.
International Developments
o The last quarter has been exceptionally good for Gitanjalis International business. US,
Japan and the Middle- east were the best performing markets for the group last year.
Double-digit growth was achieved in Like-to-Like sales in the US and Japan. US and
Japan are 100% diamond jewellery markets not only offering high margins at the front
end but also offering additional margins to the manufacturing and supply chain in India.
o A Strong 9-week holiday season in the US contributed to 18% comparative sales gain
over last two years for Gitanjalis US based subsidiary Samuels. The momentum
continued post the holiday season with a 13% growth in January 2013 alone and an 8%
rise in store sales for the year.
o The 4 stores opened in the Middle-East last year have achieved excellent sales during
the quarter. Also, Gitanjalis established distribution business in the Middle East grew
significantly during the year. The Middle-east witnessed an inorganic growth of 40-45%
due to opening 4 new stores and 30 SIS during the last year. Recently the company also
signed Shop-in-shop contracts with Paris Gallery to launch its products in Dubai. The
region offers significant scope for further expanding the branded diamond jewellery
business.
o The strategic stake of Gitanjalis Japanese business (Gems TV) has been merged with
IMACBC, a jewellery manufacturing company, so that both Gems TV and IMACBC avail
of synergies of an integrated business model.
Gitanjalis international presence allows it to balance its portfolio across geographies.

Awards & Accolades

o Gitanjaligifts.com was awarded for its Outstanding eRetail Performance in jewellery
brand category which recognizes leading retail and product brands which have shown
exceptional performance in online retail at the Indian e-Retail Awards 2013. The awards
aim to recognize and facilitate achievers, innovators, suppliers, manufacturers and
facilitators who have contributed significantly towards the development of eRetail in
India.
o At the Retailer Technology Awards 2013, Gitanjali Group was awarded the MultiChannel Retailer of the Year for its excellence in its multi-channel offering both online
and offline, improving the consumer experience to drive more loyal customers. Retailer
Technology Awards look to recognize excellence and innovation in the field of
information technology within the Indian retail sector.
o Gitanjali Group, India's leading branded jewellery retailer was honoured with the "Best
Jewellery Brand" at the 19th Lions Gold Awards. The event recognizes and felicitates
outstanding contributions from various walks of life (Films, TV, Sports, Business,
Medicine, NGO etc.). This year the awards were held with a view to support the fight
against Cervical Cancer.
o Gitanjali Gems Ltd. bagged the prestigious Master Brand Award for 2012-13 by the
Chief Marketing Officer (CMO) Council and CMO Asia for its excellent brand recall and
bouquet of brand offerings across consumer segments and price points based on
thorough research and customer-centric approach.

Business Outlook
Serving the vast Indian market for branded jewellery through rapid penetration via a rapidly
growing franchise route.
Diversifying the range of offerings so as to attract a wider range of consumers.
Focusing on expertise in workmanship and design with the ability to manufacture lightweight exclusive diamond jewellery to compensate for high gold prices.
Positioning as an established player in mature and high margin markets such as Japan and
the USA.
Developing channels such as e-commerce to establish strong, sustainable connect with
customers looking for novelty and convenience in jewellery purchases.

About Gitanjali Group

Gitanjali Group is the worlds largest integrated branded jewellery manufacturer-retailer with
an annual turnover of over $3billion. Established in 1966, today its activities are spread across
the entire value chain from rough diamond sourcing, cutting, polishing and distribution,
jewellery manufacturing to branding and retailing gold and diamond jewellery in India and
abroad.
The Group pioneered jewellery retail revolution in India by launching Gili way back in 1994. It
today owns and distributes eight out of the top ten jewellery brands in the country including
Gili, Nakshatra, Asmi, DDamas, Sangini, Diya and Maya Gold. Gitanjalis extensive network of
own stores, shop-in-shops and franchise outlets span across 300 cities and 4,000 points of sale.
It has 3 world-class diamond polishing facilities in India located at Surat, Mumbai and
Hyderabad possessing production capacity of 4,00,000 stones a month. Domestic jewellery
manufacturing facilities are located at Mumbai, Hyderabad, Coimbatore, Kolkata, Surat and
Jaipur that produce 2,35,000 pieces of finished jewellery each month, while international
manufacturing set up is in China. The Groups international design hub is located in Italy.
Over the last two decades, the Group has expanded operations in USA, UK, Belgium, Italy and
the Middle East to China, Singapore and Japan.
Today the group owns a large retail chain in the US, Samuels Jewelers Inc; and has acquired a
number of brands such as Stefan Hafner, Valente, Io Si, Poratti and others in Italy, and has a fast
developing presence in China, the Middle East and other new markets.

For More Information Please Contact:

Shweta Velkar
Gitanjali Gems Ltd.
Tel: +91 22 4010 2000
E-mail:shwetav@gitanjaligroup.com