PC Jeweller witnessed a 2 percent decline in its shares, settling at Rs 28 per share on November 15, following the company’s recent financial report for the second quarter of the fiscal year 2024 (Q2FY24). The continuous downturn in the gem and jewellery company’s performance is accentuated by persistent legal challenges.
Throughout this year, PC Jeweller’s stock has experienced a significant plummet, registering a staggering 64 percent decrease, in stark contrast to the benchmark Sensex, which saw a 6 percent rise.
In Q2FY24, PC Jeweller reported a net loss of Rs 152 crore, marking the fourth consecutive quarter of losses, compared to a profit of Rs 73 crore in the same period the previous year. The company’s domestic sales also witnessed a stark decline, plummeting to Rs 33 crore in Q2FY24 from Rs 836 crore in Q2FY23. This decline is attributed to the ongoing legal battles with multiple lenders.
Several lenders, including State Bank of India (SBI), Indian Bank, IDFC First Bank, Union Bank, and seven others, have initiated proceedings at the Debt Recovery Tribunal (DRT) Delhi to recover their dues from PC Jeweller.
The company’s troubles began in February 2023 when banks collectively decided to recall loans amounting to Rs 3,466 crore. The largest lenders in this context include SBI with an outstanding amount of Rs 1,060 crore, Union Bank of India with Rs 530 crore, Punjab National Bank with Rs 478 crore, and Indian Bank with Rs 226 crore.
As of 12:47 pm, PC Jeweller’s shares were trading 2.55 percent lower at ₹28.65.
