The Rs 4.51-crore share-issue represents a dilution of 25.20 percent of the post issue paid up capital.
Managing Director Balram Garg told CNBC-TV18 that the company's niche is the wedding jewellery segment and it is looking to improve its EBITDA margins.
PC Jeweller will utilize the proceeds for expansion of operations in India. "This year we are adding almost seven new stores and the square feet area is around 35,000 sq ft. Next year we will be adding almost one lakh sq ft area with 13 showrooms. By 2014, we will be having around 50 stores and total square feet area will be three lakh," he added.
Domestic business contributes 68 percent to the revenues, 30-32 percent comes from the export market and its margins in the domestic market are higher, he elaborated.
Below is the edited transcript Balram Garg's interview with CNBC-TV18.
Q: What is your niche in the jewellery segment? There are now diamond jewellery companies that are already listed and so many in the unbranded unlisted space. What is your unique selling proposition?
A: We have a very unique business model. Most of the sales in India are coming from the wedding segment. Our company is mostly concentrating on the wedding segment. We open stores only on high street locations. We focus only on wedding segment and diamond jewellery to improve our EBITDA margins.
Q: You are looking to raise around Rs 500-600 crore. Where exactly are you going to utilize the funds and how is it going to be spread out?
A: Right now, we have 30 showrooms in 23 cities and we are into eight states. We have a square feet area of around 165,000. Going ahead, we are adding 20 more stores with area of 135,000 square feet. This year we are adding almost seven new stores and the square feet area is around 35,000 sq ft.
Next year we will be adding almost one lakh sq ft area with 13 showrooms. By 2014, we will be having around 50 stores and the total square feet area will be around three lakh. Right now, we are in north and central India. Going ahead, we will be in almost 11 new states and having Pan India presence.
Q: You all have historically reported margins of about 7.5, that's maintainable?
A: Perhaps our is the only company in India, which is selling diamond jewellery on the ground floor and gold jewellery on the first floor. In diamond jewellery margins are much higher than in gold jewellery. Our company is concentrating more on diamond jewellery.
Three years back we were selling around 18 percent diamond jewellery, this year we are selling almost 32.6 percent diamond jewellery. We are not growing only by the top line but we are also growing by bottom-line. We are focusing only on how to improve out EBITDA margins.
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