On 15 November, PC Jeweller’s shares were trading almost 3% lower after the company reported a net loss during the July-September quarter. 

The jeweller reported a net loss of Rs 152 crore during the quarter under review, compared to a net profit of Rs 73 crore reported during the year-ago quarter. 

The company’s domestic sales dropped to Rs 33 crore from Rs 836 crore reported in the same quarter of the previous fiscal year due to its involvement in a legal battle with multiple lenders. 

The lenders, including State Bank of India, Union Bank, Indian Bank, IDFC First Bank, and seven others, have filed a case against the company at the Debt Recovery Tribunal, Delhi, to recover their dues. 

The company came into the limelight in February 2023 when banks decided to recall loans advanced to the company. 

In its regulatory filing, the company said it had defaulted on loans worth Rs 3,46 crore from banks and financial institutions. Amongst the lenders, State Bank of India has the largest outstanding loan of Rs 1,060 crore, followed by Union Bank of India with Rs 530 crore, Indian Bank with Rs 226 crore, and Punjab National Bank with Rs 478 crore. 

During the fiscal year’s first half, the company closed fourteen owned stores and three franchise stores, reducing its total operating store count to 56 owned and 7 franchise stores. 

At 3:00 pm, the shares of PC Jeweller were trading 2.55% lower at Rs 28.65 on NSE.