Branded jewellery company Gitanjali Gems today reported a growth of 65.2 per cent in its net profit at Rs 132.2 crore for the quarter ended September 30,2011 on account of increased demand in tier II and III cities. The net profit of the company had stood at Rs 80 crore in the second quarter of FY 2011,a company statement said. "The momentum in Tier II and Tier III towns in domestic market has been the biggest contributor to this growth," Gitanjali Gems Managing Director Mehul Choksi said. He added,"Going forward,with integrated business model and branded jewellery we are confident to expand the top line and achieve even higher bottom line." The company posted a 26.2 per cent growth in sales at Rs 3,167.6 crore for the quarter under review compared to Rs 2,509.7 crore in corresponding quarter of the last year. The company added 61 new stores (own as well as franchises),55 shop in shops and nearly 270 retailers in first half of FY 2011. The company now has over 3,800 selling points in the country. The company is expanding its presence through franchise network to Tier II and Tier III cities and has developed multi-brand formats like Jewel Souk,Maya Jewels and installed gold and jewellery ATMs. Talking about its global business,Choksi said the US retail chain has grown,both in terms of sales and profitability. "Our operations in the Middle East and Far East have also increased their width to reach more chains and jewellery stores," he added. The company is establishing the acquired Italian brands - La Nouvelle Bague and Stefan Hafner - through boutique stores in China. "These brands are targeted to cater to the Chinese demand for luxury and to tap the Russian and Arabian markets," he said.
