In response to PC Jeweller’s default of over 3,466 crore rupees ($415 million) revealed in October, the State Bank of India (SBI) has taken possession of two prime properties in New Delhi as a strategic move to recover a portion of the owed amount, which stands at $140 million (or 1,168.90 crore rupees).
As reported by an SBI official, the action is part of a calculated strategy to recoup some of the outstanding debt from PC Jeweller. The bank is using legal channels such as the National Company Law Tribunal (NCLT) and the Debt Recovery Appellate Tribunal aggressively to handle the escalating debts and aims to retrieve a substantial portion of the unpaid debt amounting to 1,267 crore rupees ($152 million).
Following the financial setback, PC Jeweller faced operational disruptions, leading to a significant plunge in its second-quarter revenues for fiscal year 2024. The Q2 FY24 revenues displayed a stark contrast in performance, plummeting from 836 crore rupees ($100 million) in the corresponding quarter of the previous year to a mere 33 crore rupees ($39 million).
In response to the financial crisis, PC Jeweller has taken decisive measures, including the closure of seventeen stores, thirteen of which are owned, and three are franchises. The reported losses of 152 crore rupees ($18 million) underscore the challenges confronting the Indian jewellery industry in resolving credit and market trust issues. To alleviate its financial burden, PC Jeweller is concurrently engaging in negotiations for out-of-court settlements with various institutions.
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