In a significant development, the State Bank of India (SBI) has taken charge of two prime properties in New Delhi belonging to PC Jeweller, a move triggered by the company’s staggering default of over Rs 3,466 crore in October.
This financial setback has severely impacted PC Jeweller’s operations, as reflected in a sharp decline in their second-quarter revenues for the fiscal year 2024.
SBI’s claim on the New Delhi properties amounts to Rs 1,267 crore, a strategic move aimed at recovering a portion of the Rs 1,168.90 crore owed by PC Jeweller.
The bank is actively pursuing legal avenues through institutions like the National Company Law Tribunal (NCLT) and the Debt Recovery Appellate Tribunal to facilitate the recovery process.
PC Jeweller’s financial challenges have cast a shadow over its overall performance. In a stark contrast to the same quarter the previous year, where revenues reached Rs 836 crore, the company reported a drastic plunge in Q2 FY24 revenues to a mere Rs 33 crore.
This substantial downturn has also resulted in reported losses totalling Rs 152 crore. In a bid to weather the storm, PC Jeweller has made strategic decisions, including the closure of seventeen stores, comprising fourteen owned outlets and three franchises.
Concurrently, the company is actively engaging in negotiations for out-of-court settlements with various banks to address its mounting debts. PC Jeweller’s crisis highlights the broader challenges confronting the Indian jewellery sector, which is grappling with issues related to credit and market trust.
