During the year 2021-22, the Company’s accounts with its Lenders turned Non-performing Assets (NPA) due to default / non-payment of debt / interest / installments etc. on account of decline in the business and revenues caused by Covid-19 pandemic.
NEW DELHI: PC Jeweller on February 7, 2023, said it has received loan recall notices from four lenders – IDBI Bank, Indian Bank, Bank of India and Karur Vysya Bank.
The Delhi-based jeweller, in a regulatory filing, noted that its legal proceedings with the State Bank of India (SBI), being held before the Debts Recovery Appellate Tribunal (DRAT), is underway. The next hearing will be held on February 28, it said.
“We also submit that the four other banks of the Consortium, namely IDBI Bank, Indian Bank, Bank of India as well as Karur Vysya Bank have also issued their loan recall notices to the company,” the exchange filing added.
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While announcing its second quarter results in September, PC Jeweller had informed the stock exchanges that it had defaulted on Rs 3,466.28-crore loan facilities from banks and financial institutions.
PC Jeweller further said that all of its showrooms, “except three, namely, Preet Vihar, Pitampura and Kingsway Camp”, are operational.
The three showrooms that are currently not operating are located in Delhi.
According to the company’s last annual report, its lenders included both public and private banks, such as the SBI, Axis Bank, Punjab National Bank, Union Bank of India, Kotak Mahindra Bank and Induslnd Bank.
PC Jeweller’s net profit during the second quarter stood at Rs 85.92 crore, as against a net loss of Rs 78.89 crore in the year-ago period.
The results for the December 2022 quarter are yet to be declared.
The company, while sharing a business update for Q3 FY23 last month, said its domestic business turnover has increased to Rs 829.10 crore from Rs 600.18 crore in the year-ago period.
Annual report said, “The Company in its journey of 17 years has developed strong systems & processes, robust supply chain & procurement, designing, manufacturing as well as inventory management.”
As on March 31, 2022 the Company has total of 82 showrooms including 11 franchisee showrooms and also has 4 manufacturing units in India.
During the year 2021-22, the Company’s accounts with its Lenders turned Non-performing Assets (NPA) due to default / non-payment of debt / interest / installments etc. on account of decline in the business and revenues caused by Covid-19 pandemic.
The Company has since approached its Lenders with its resolution proposal under the appropriate RBI Guidelines and the same is under their active consideration.
During the year 2021-22, the revenue from operations of your Company fell by 41% to Rs. 1,574.05 crore from Rs. 2,669.34 crore during previous year mainly on account of restriction in operations and liquidity constraints after the Company’s accounts becoming NPA. As a result of decline in revenue, the Company incurred net loss of Rs. 389.60 crore as compared to net profit of Rs. 60.84 crore during previous year.
According to the Company’s Annual Report 2021-22, PC Jeweller is looking to expand its ground level presence by opening new showrooms. The company plans to open at least 50 new stores by August 2024, but instead of owning them, it will operate on a franchisee basis. This will be an asset light expansion strategy for the company.
Table of important facts:
| Important Fact | Description |
|---|---|
| Company Name | PC Jeweller Limited |
| Expansion Plan | To open at least 50 new showrooms by August 2024 through franchisee basis |
| Showroom Status | All showrooms are operational except three in Delhi |
| Loan Recall Notices | Received loan recall notices from four lenders – IDBI Bank, Indian Bank, Bank of India and Karur Vysya Bank |
| Legal Proceedings | Ongoing legal proceedings with State Bank of India (SBI) before Debts Recovery Appellate Tribunal (DRAT) with next hearing on February 28 |
| Defaulted Loan | Defaulted on a loan of Rs 3,466.28-crore from banks and financial institutions |
| Lenders | Includes public and private banks such as SBI, Axis Bank, Punjab National Bank, Union Bank of India, Kotak Mahindra Bank, and Induslnd Bank |
| Q2 Profit | Net profit of Rs 85.92 crore during second quarter |
| Domestic Business | Domestic business turnover increased to Rs 829.10 crore from Rs 600.18 crore in the year-ago period |
| Results for Q3 | Results for December 2022 quarter yet to be declared |
(India CSR)
