PC Jeweller Achieves Debt-Free Status
PC Jeweller Ltd announced on Friday that it has successfully cleared all outstanding dues with its consortium of 14 banks, thereby achieving a debt-free status. The company stated in a regulatory filing that it has discharged the remaining outstanding debt in accordance with the terms of the Settlement Agreement signed on September 30, 2024.
Details of the One-Time Settlement
The debt clearance follows a One-Time Settlement (OTS) arrangement that PC Jeweller opted for in September 2024. The total debt involved in this settlement was approximately Rs 3,000 crore. The terms of the approved OTS included both cash and equity components, along with the release of securities and mortgaged properties.
The company noted that it made the final repayments ahead of the scheduled due dates. Management emphasized that this accomplishment will materially strengthen the company's balance sheet and overall financial position.
Recent Financial Performance
The move to become debt-free comes on the back of improved financial results. In August, PC Jeweller reported a 37 per cent increase in its consolidated net profit for the quarter ended June, reaching Rs 221.88 crore. This was a significant rise from Rs 161.93 crore recorded in the same period of the previous year, driven by better revenue performance.
Total income for the first quarter of the current fiscal year rose to Rs 879.27 crore, up from Rs 807.88 crore in the corresponding period of the preceding year.
Company Overview
PC Jeweller is one of the leading jewellery firms in India. The company currently operates around 50 physical stores across 12 states. The elimination of its debt load is expected to provide greater financial flexibility for future operations and growth initiatives.