Close on the heels of Titan Co, jeweler DP Abhushan too reported unprecedented growth during the COVID-19 impacted financial year, particularly the last three months.
Against Titan Co’s 61% revenue growth, DP Abhushan Ltd reported an even higher growth of 152% in its top line for the three months ended March 2021.
The company’s revenue for the fourth and final quarter of 2020-21 was Rs 590 cr, compared to just Rs 234 cr during the same three months of 2020. Much of this could be attributed to the opening of three new showrooms in the second half of the year, taking its total to seven.
The numbers have put the company right at the top of the chart as far as the performance of listed jewelry players in India are concerned during the ‘COVID year’.
Another reason for the strong growth in the sector has been the increase seen in the price of gold mid year due to rising uncertainties around the global economy.
Vikas Kataria, Chairman and MD of DP Abhushan, attributed the strong performance partially to the renewed demand surged in gold jewellery as an investment option, given the uncertainties faced by the middle class around their sources of income, and the need to build up savings.
Partly owing to the strong growth during the final three months, the company has been able to report growth for the full-year as well, making it one of the rare corporations to achieve such a feat in the year of the pandemic.
For the full year FY21, the company has been able to grow its revenue by 51% to Rs 1,218 cr from Rs 809 cr in the preceding year.
All this growth in sales also reflected in improved profit margins as well for DP Abhushan.
The company’s net profit was up 46% at Rs 8.28 cr during the fourth quarter of FY21, and up 64% for the full-year at Rs 27.40 cr.
DP Abushan has seven showrooms, out of which three were added in the second half of FY21.
During the year, company set up an e-commerce subsidiary to cater the small ticket size jewellery and gift products made out of gold, diamond and silver. It said the unit is yet to start commercial operations.