PC Jeweller Ltd
NSE:PCJEWELLER
| US |
|
Fubotv Inc
NYSE:FUBO
|
Media
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
C
|
C3.ai Inc
NYSE:AI
|
Technology
|
| US |
|
Uber Technologies Inc
NYSE:UBER
|
Road & Rail
|
| CN |
|
NIO Inc
NYSE:NIO
|
Automobiles
|
| US |
|
Fluor Corp
NYSE:FLR
|
Construction
|
| US |
|
Jacobs Engineering Group Inc
NYSE:J
|
Professional Services
|
| US |
|
TopBuild Corp
NYSE:BLD
|
Consumer products
|
| US |
|
Abbott Laboratories
NYSE:ABT
|
Health Care
|
| US |
|
Chevron Corp
NYSE:CVX
|
Energy
|
| US |
|
Occidental Petroleum Corp
NYSE:OXY
|
Energy
|
| US |
|
Matrix Service Co
NASDAQ:MTRX
|
Construction
|
| US |
|
Automatic Data Processing Inc
NASDAQ:ADP
|
Technology
|
| US |
|
Qualcomm Inc
NASDAQ:QCOM
|
Semiconductors
|
| US |
|
Ambarella Inc
NASDAQ:AMBA
|
Semiconductors
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
28.1
186.02
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Fubotv Inc
NYSE:FUBO
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
C
|
C3.ai Inc
NYSE:AI
|
US |
|
|
Uber Technologies Inc
NYSE:UBER
|
US |
|
|
NIO Inc
NYSE:NIO
|
CN |
|
|
Fluor Corp
NYSE:FLR
|
US |
|
|
Jacobs Engineering Group Inc
NYSE:J
|
US |
|
|
TopBuild Corp
NYSE:BLD
|
US |
|
|
Abbott Laboratories
NYSE:ABT
|
US |
|
|
Chevron Corp
NYSE:CVX
|
US |
|
|
Occidental Petroleum Corp
NYSE:OXY
|
US |
|
|
Matrix Service Co
NASDAQ:MTRX
|
US |
|
|
Automatic Data Processing Inc
NASDAQ:ADP
|
US |
|
|
Qualcomm Inc
NASDAQ:QCOM
|
US |
|
|
Ambarella Inc
NASDAQ:AMBA
|
US |
This alert will be permanently deleted.
PC Jeweller Ltd
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to the PC Jeweller Limited Q3 and 9M FY '19 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on the date of this call. The statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. [Operator Instructions]Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjeev Bhatia, CFO PC Jeweller Limited. Thank you, and over to you, sir.
Good evening, ladies and gentlemen. We extend a very warm welcome to all of you for this Q3 earnings call of PC Jeweller Limited. I'm Sanjeev Bhatia, CFO of the company, and I have with me, Mr. Balram Garg, MD of the company; as well as Mr. Nikhilesh Govil, President Online and E-commerce.PCJ that got listed in the last week of 2012 has completed 6 years of being in the public space. This period has seen PCJ grow at a very rapid pace and establish itself amongst one of the top jewelry players of the country.PCJ has also successfully weathered the turmoil in the industry after the then government-imposed various restrictions on this sector during 2013 and '14.The introduction of the GST regime proved to be a windfall for PCJ in line with the other branded players, and the company could achieve 35% to 40% growth, both in its top line as well as bottom line for the four consecutive quarters last fiscal. This fiscal is, however, a year of consolidation and rationalization of operations as well as conservation of capital.PCJ is also adapting itself to the changing business environment and is concentrating on ROE-accretion steps at all levels and all aspects of its operations.This is reflected in reduction in cost, merging and closing operations whose performance was subpar or below optimum, reducing purchases, et cetera, et cetera.Company has also managed to improve its customer base by operationalizing its omnichannel integration. We are now able to display and sell our fast-selling inventory from 40 showrooms through our website and offer delivery of more than 10,000 ready-made products. This provides our customers very access to inventory across different showrooms by sitting in the comfort of their homes.The company will continue to expand this model and is working to integrate all its showrooms by the year-end.The company feels -- one, it's a year-end, which is a typical event, the company feels that this is a capital-efficient way to grow in the time of scarce and expensive [ capital ]. PCJ is also reducing its Export turnover, which is reflected in a degrowth of INR 1,200 crores on a Y-on-Y basis. Those which have resulted in a decline in the absolute level of turnover and profitability figures, we feel that this is only a short-term issue as the overall margin of the company have improved on Q-on-Q as well as Y-on-Y basis.This is reflected on all the parameters, like gross margin, EBITDA and PBT. The profitability margin of the company has shown improvement on account of higher contribution of Domestic business to overall sales.At the same time, the company's Domestic turnover during the current quarter has increased by 3%, and it has managed to almost wipe off the degrowth experienced in this Domestic business in Q2. The Domestic margins continue to be -- remain stable. As commented, the company continues to deleverage its balance sheet by reducing its overall banking exposure. Of the overall reduction of INR 500 crores planned for Q3 and Q4, the company has achieved reduction of almost INR 300 crores in Q3 itself. I leave -- I now leave the quorum open for questions and answers.
[Operator Instructions] The first question is from the line of [ Rajesh Gajra ] from Crédit Suisse.
Can you hear me?
Yes, yes, yes.
This is [ Conrad Jipson ] from [indiscernible]. My question is around the Export business. I wanted to understand since you've decided to deleverage it, who were you really challenged to? Who are your customers? And what is the status of the AR that you had in your Export business? And why was it sort of so stretched out on the new investor? And I just want to understand who your customers were in the Export business and why we decided not to pursue it anymore.
Actually, the -- this Export business, we are doing this business for the last 15, 20 years. And -- can you hear us?
Yes, yes, I can hear you.
Basically, we are exporting the -- mainly in the Gulf countries, Southeast Asia. And this is a B2B business. And we export the hand-made jewelry. So now actually -- earlier, the credit was easily available for the clients. And you know that we cover Domestic business in -- there's no credit in the Domestic business, we are not giving away...
Were you selling to a subsidiary of yours in Southeast...
No, no, there is no subsidiary. There's no subsidiary. We are exporting to the third party only.
Who are those third parties? And why haven't they paid you on time?
So -- let me explain you on this. So now the credit -- earlier, the little credit was easily available. And now the credit from the banks are not easily available. So company has decided beginning of the year that we will reduce our Export business because this is a credit business. And thereby, company has decided to reduce debt for business. So now they are also -- they are the old customers. And they are also -- when you change your business model, definitely, it is -- some delay in the payments. But now -- because the payments are on time now. And we are reducing the Export business. And we are reducing the debtors also. And we have given a target of 31st March to reduce the target to up to INR 1,000 crores. So we are on the right track. And the -- now the reason for reducing the Export business level because of only that credit was -- earlier, the credit was available. Right now, the credit is not available.
Can you name those customers? I mean who are your top customers that you are selling to and...
Well, we don't disclose the business. This is a basic contribution, and we don't disclose the customer name.
How much is the AR? And how much is it outstanding now? How much would...
So on the -- so if you look at the -- so definitely, the month-on-month, the payment is coming. And the -- and you look at the last quarter, we have -- we disclosed the number latest. And now in March, we'll disclose the complete number. But definitely, the payment is coming, and we are receiving the target, but we are giving in our second quarter that the number will come to the INR 1,000 crores in the -- 31st March.
But sir, you don't even give your balance sheet, right? I mean, how is an investor to understand whether the money is coming or not coming?
So we'll be giving the balance sheet as per the laid-down norms. We'll giving our balance sheet as per the laid-down norms. We gave in September, and now we'll be giving in March but -- as we are also disclosing that the company is getting funds and payments. And obviously...
So we -- you know that we are reducing the debt also in INR 300 crores, we reduced [indiscernible] in the third quarter.
Without a sort of a weighted balance sheet, audited balance sheet, I mean I didn't see a balance sheet in the disclosures this time.
It is not required.
It is not required, but we are -- we have disclosed that we have returned INR 300 crores of debt, and in -- INR 300 crores debt in the third quarter, and balance sheet figures -- the complete balance sheet, we'll give you in March.
No, but I understand it's not required, but in the spirit of whatever's happened to the stock and considering there are so many questions around the Export business and receivables, you would think that the company, in good faith, would want to, sort of, sort its -- all investor concerns, so would want to make disclosures in that.
So you look at -- we only disclose the mean numbers in that -- at the time of balance sheet when required. So that's why we will disclose in the March only.
The next question is from the line of [ Dharwad Patel ] from [indiscernible].
I have a couple of questions. First, what is your target in the -- for -- March ending 2019 for debt, cash and your inventories and receivables?
So if you talk about the receivables, we have already set the target of INR 1,000 crores. And inventory, we have not -- haven't set any target, but definitely, the inventory will be around INR 5,000 crores if you look at our 3 quarters. So it will be the same way. And then the debt, we have already -- this was our debt number in September.And after that, we have reduced INR 300 crores in the second quarter. And we have set a target of INR 200 crores this quarter. So...
Okay. Somewhere near INR 3,000 crores, right, by the end of March, total debt?
Yes, around INR 3,000 crores. It will be -- the number will be around INR 3000 crores, yes.
Okay. And what is the cash target or present at -- by end of December, '18? Can you tell me what was the cash and principal?
Right now, we don't have the number. But definitely, it will be more than INR 500 crores.
Okay. My second question is, what is the bifurcation of own versus franchisee stores?
Pardon, own versus?
Franchisees.
So right now, we have around 12 franchisee stores -- sorry, 15 franchisee stores, and the rest is own stores.
And how many stores have VR technology presently?
I mean, we don't -- we have not -- we don't have any right now, but we have planned to start the virtual reality, but augmented reality, we have started in some stores in Delhi in self stores.
Hello?
Yes, on -- augmented reality, we have started in Delhi in self stores.
Sir, so I just wanted to know how many stores you own at present?
So it would be something around...
75.
Around -- yes, around 75 own stores, yes.
And 15 are franchisees, right?
Yes.
We'll move on to the next question coming from the line of [ Mangej Marj ] from Capital One.
I have 1 or 2 questions that is very specific. And I would like to have the answers, which are very specific rather than explaining everything. So my first question is, how much accounts receivable is due for this quarter?
So account receivables is around INR 1,500 crores.
INR 1,500 crores.
Yes. You know that in -- the account receivables is around INR 1,800 crores, and we have exported INR 300 crores this year -- this quarter. So -- and we got back almost whatever we exported, we got the double of the payment of -- we got all payments the same amount and as the double of the amount of old payment. So this is -- approximate figure is INR 1,500 crores.
Okay, INR 1,500 crores. Is there any bad debt you are looking from the...
No, right now, there is no bad debt.
No, bad debt. So hopefully, you will receive all the receivables?
Yes, yes, yes. We are receiving all the old payments. There is no bad debt.
There is no issue, okay, first. And second -- my second question is, now I'm seeing that your margins are improving quite a bit, and you're like changing the strategy to come down the Export business. But what about the Domestic business? I'm seeing that you are opening some franchisee stores. And when franchisee stores are not running well, you are closing again. So this strategy of growing the franchisee store, it is well-thought strategy? Or you are just making a trial-and-error basis and you are taking the store and then closing the doors, your Domestic sales growth is not up to the mark? So...
Actually, our Domestic growth is good because if you look at the last year 2 quarters, Quarter 2 and Quarter 3, the growth -- because of the -- government implemented the GST. Because of the GST, the growth was almost 35% in the second quarter and 40% in the third quarter. So the release was very high. So that's why the growth for the Domestic business is muted and it is 3% this quarter. Last year, there was a degrowth because of debt. And now there's a growth. So we are very hopeful that Domestic business is doing good, and there is no problem in the Domestic business.
But what about franchisees entire like...
Franchisees, look, we are opening one more franchisee -- we have opened one more franchisee this third quarter. Now we're opening 4, 5 franchisees in the next couple of months. So this franchise model is good. There is no difference in the franchise model and the old model. Only difference is that in the old model, we're investing the own money, and in franchise model, there is no need to invest.
No. That I understood. But the -- is it really worth taking the franchise route? Are you really seeing the effect on the revenues and the profits for...
Let me tell you that sale-wise, there is no difference in the franchisee or own stores. We are running the franchise stores like we are running our own stores. So we -- so there is no difference in franchise. Even customers don't know that this is a franchise or own store. So what is the difference? There is no difference.
Okay. But is it really contributing to your margins and growth?
So definitely because we have just started in last year only. So it is a small model right now. So as the model will grow, definitely, in the future, the earning growth will come from the franchisee model.
Okay, okay, okay. And just last thing I need to understand. Are we -- like do you have some plan, future planning for the PC Jeweller for next 5 years or 10 years? Is really the company having the best management category, having the future scenarios, building to 5 years, 10 years or something like that? So do you have some 3 years of broader plan? And where you see the PC Jeweller down the line 3 to 4 years?
Definitely. The plan is only to grow in the -- mainly in the Domestic business only and to open more and more stores. And to -- so this year, definitely, we opened only 5 stores, new stores. But definitely, next year onwards, we'll open more and more stores in the retail segment because last year was not very good for the jewelry industry. But definitely, that's why we opened less stores. But now -- and now from the next year onwards, we are planning to open more and more stores, like we were opening earlier. If you -- except this year, we were opening more stores -- we opened so many stores. And now in future also, we are opening -- our plan to open more and more stores in retail business only -- in the retail only.
Okay, okay. Before leaving, just one small -- maybe smaller ones from your -- my side, actually. See I'm watching the -- tracking the PC since long way. With each quarter, I have been the part of the PC. It's a very good company, and you are putting a really good effort. But since last one year, what has happened with PC fiasco with the other step? What I'm observing that you're repaying the debt now INR 300 crores, also you have repaid.But one just question, sir, you should maintain while giving the projections or giving the statements, make sure that it should maintain or otherwise you should not declare any commitment like buyback. So once you declare and then you find that bank is having some issues. So just one advice, small advice from my side. Once you give some commitment because last to last quarter also, you say -- you are saying that you will give more and more clarity and told the disclosures, right, for the account receivables. You will say in upcoming quarters, most of the investor will find that we will disclose a lot of things. But this, unfortunately, quarter, we are not able to see the balance sheet, right. So...
So -- yes, yes, yes, let me tell you. So we have disclosed the -- what amount we have paid this quarter in the debt. You have the debt figure in the second quarter. And the previous questions also -- so I have already disclosed the debtor number, the inventory number, everything. So these are the 4, 5 things, which we -- which -- so -- which are necessary for the balance sheet, and we have disclosed these things.
Just for the sake of question. So I'm just advising like if you maintain this full transparency because I know that the PC is a really good company. I personally -- I don't know about others, I personally have [ held in ] PC. But if you do the full disclosure with whatever the good news and the bad news, up front, that will help us. And second thing is just maintain your return ratios by putting the [indiscernible] that will give you good capitalization, market cap for your stock. So that is one my advice, maybe you can -- I can give you.
The next question is from the line of Keshav Harlalka from BHH Securities.
Just wanted some clarity on the finance cost. The INR 88.79 crores versus INR 84.11 crores...
Can you please repeat your question? Hello? You're not audible. Can you please speak up a little?
Yes. Am I audible now?
Yes, yes, yes.
Yes. The finance cost in the current quarter is INR 88.79 crores versus INR 84.11 crores for the corresponding quarter last year. And the debt levels have gone down by INR 300 crores. So can you throw some light on why the finance cost has gone up when the debt has gone down?
Yes, yes, yes. So the company's finance cost has increased in this quarter due to shift in the mode of utilization of the bank credit line from SBLC towards fund-based necessities. It has happened mainly due to profit of Domestic and [indiscernible] by various banks. In the case of Export also, foreign banks have greatly reduced their exposure limit on Indian banks and are not accepting import SBLC issued by the mainly Indian banks. The company is, therefore, using more of a fund-based limit for both Domestic as well as Export operations.So if you look at it, even if because of debt, our interest percent increased little bit, but we -- our margins have increased, and we have passed it to these customers. So there is no problem because despite of our finance cost have increased, our margins have increased also, so -- or stable or increased. So now because of the 15th [ elevated across the month for the funding ] that's why this is the only reason.
Okay. Now you are saying, are -- you also made a statement in the presentation that your borrowings will become 0 in the current quarter, means you'll on a 0, debt-free company ...
No, no, no. This is no -- because we have -- in second quarter, we have -- in our presentation, look at that, we promised to pay further INR 500 crores in next 2 quarters, Quarter 3 and Quarter...
After that, what would be the debt on the books after you paid back INR 500 crores?
INR 3,000 crores.
How much would be the debt, sir?
INR 3,000 crores.
So what would be the finance cost in the March quarter after you've paid back the amount?
So finance cost will remain the same because -- finance cost will remain same or little bit down because it will not impact much because now, we are using more fund-based limit. But there is no impact on the margins because of that.
The next question is from the line of Pradeep Prakash from UTSAV Consultants.
[Foreign Language]
So many appearing to not appreciate... [Foreign Language]
Okay, sir, this was my main concern. [Foreign Language]
[Foreign Language]
[Operator Instructions] The next question is from the line of [ Rajesh Goyal ] from Alpha Capital.
Sir, [indiscernible] Bhatia had, you really didn't talk about...
Sorry to interrupt Mr. Goyal, sir, your voice is not clear. Can you use the handset mode while speaking?
Yes, is it any better?
Yes, much better.
So my question is about Export in the first quarter are. So we didn't talk about the range of customers for confidential reasons, et cetera. Can you describe what has the problem been on the last one year and -- or so from a business perspective? Or simply why has this payment been given delayed, while these collections, which should've happened in the normal course of business, are getting stretched, which of course, you said you are confident of collecting everything? But what is the commentary around it? What has happened with your -- these customers to whom you sold B2B?
Actually, there are 2, 3 reasons. Because one is that, in Gulf, there are -- first VAT -- they implemented VAT, then the custom duty, so the business is a little bit down there. And again as these companies have decided to reduce also because of the credit issue. So now they are making arrangements from other supplier, so it will take some time definitely when you allot business in that core market. So definitely, there will be some delay also. So that's the only reason and the company -- because 20%, 30% business was downgraded because of the GST and other things implemented, import duty implemented there. But then again, company also decided to reduce. So those are the reasons.
So this quarter, we have done INR 300 crores of export, right?
Yes.
And what is the plan now? What is the trajectory? This is very different from Q2. So what do we intend to do? And what do...
We have already explained that our plan is to -- last year, we did around INR 2,800 crores. This year, the maximum export can go to INR 2,000 crores. And this is our plan. And then slowly, slowly we will reduce further also.
So let's say, in 12 months from now would it become 0 or...
No, no, no. 12 months from now it will not become 0. Definitely, we will disclose how much we'll reduce further. But right now, this is the first step we have taken.
Okay. And one more question. I think in the last 1.5 years, it seemed very sort of painful for all stockholders, including yourself, buyback on -- any other thoughts around, let's say, rewarding [ complexity ] in investor community other than improving performance? And we talk about disclosures, targets, see the performance of results, available stock. Anything which you are thinking from a company level? Or you are thinking as a majority shareholdings to sort of, let's say...
Right. [ Possibly ] but definitely whatever we will tell -- we will let the investor know definitely. Right now there's no plan.
[Operator Instructions] The next question is from the line of [ Venki ] from [ UTSAV Management Private Limited ].
This is [ Venki ] from [indiscernible]. So just I have 1 question -- 2 questions actually. First thing is, in the last quarter your balance sheet, you have mentioned that total bank exposure is [ INR 600 crores ] and cash from earnings is [ INR 600 crores ]. Net liability is INR 3,000 crores. So when you are paying that by next -- by March 2019, the total debt will be INR 2,000 crores. That means, it is your net liability or you are talking about total bank exposure? And what is the cash margin by the time of March 2019?
Pardon me, we -- sorry, we couldn't get it proper sense. Can you speak a bit slowly, please.
Oh, sorry. So in the total September quarter...
Sir, this is the operator. Sir, your audio is not clear. Can you use the handset mode while speaking? We are not able to hear you.
Yes, can you hear me now?
Much better. Please, go ahead.
Yes. So in the September quarter, you had mentioned the total bank exposure is INR 3,685 crores.
Total bank?
Total, total.
Total. Okay.
By -- when you're saying, INR 3,000 crores will be the debt, so this is the amount, which will be going down to INR 3,000 crores by March 2019? Is it correct, sir?
Yes. Our total debt will come down to INR 3,000 crores.
Total bank exposure term which you are using -- yes, total bank exposure.
And in the cash margin in the year-end?
The cash will be around INR 400 crores to INR 500 crores.
So the net level will be around INR 2,500 crores?
That's what we are planning for, yes.
Yes, yes.
Okay. So one more question, sir. I see that the mutual funds are mostly like -- the percentage exposure of mutual funds in our business is very less. So are we doing anything from the management side to regain the trust of mutual funds?
Not immediately. I think after our complete year results, we will be approaching also investors with a road show and everything and -- because we'll be going to -- yes, we'll soon be approaching with a complete and full annual results only.
The next question is from the line of Bhuvanesh Kumar from Kotak Mahindra Bank.
Yes, the question was that what is your quantum of net shares today, if any? And are there any subsequent company -- subsidiary and company holding transactions that don't form part of the report that you've published with that?
Not yet, company?
For company or related parties' transactions, et cetera.
No, no, no, this is very negligible, very negligible.
But whatever transactions are there are fully disclosed.
Fully disclosed, there is nothing and they are very negligible right now, very negligible.
And what about pledged shares? Are there any pledged -- promoter holding pledged?
No, no, no, there is no -- nothing pledged, nothing. 0 pledged. There is no pledge.
We'll move onto to the next question that is from the line of Ajay Sharma from Cycas Investment Advisers.
How is your presence in South India? What exactly is your presence here in South India? And do you plan to expand it? A little bit of ground research that I had done, sort of indicates that PC Jewellers is perceived as a North Indian jewelry chain. Is that a problem? Do you plan to fix it? If you could comment on these things, please?
Your question was, number one, that PC Jeweller is not there in South India. This is point number one?
Just a plan for South India and that...
So there is no plan for South India. Even we have -- earlier we had one store in Bangalore, we had closed that because we are not getting very good response in South India. And because we are north-based company, and so except South India, we are opening everywhere.
So there is no plan also to open in South India?
No plan on South India because there is the -- mainly the lower-margin items are really higher. So we sell more diamond jewelry, threaded jewelry. So that type of jewelry doesn't work there. So there is no plan to open stores there.
[Operator Instructions] The next question is from the line of Denzil Dsouza from Naam Electronics.
Hello, can you hear me?
Yes, yes, we can hear you.
I have one concern with you is when you're saying the INR 15 crores (sic) [ INR 1,500 crores ] and you're saying it's no bad debts, do you have a credit insurance for the same?
No. There is no credit insurance. Because in business -- we were doing like this only, there is no [ LC ], there is no credit insurance. So, yes, there's no credit insurance.
So there are no collaterals against these INR 1,500 crores of bad debts?
No, no, there is no collateral. But 100% business is through bank loan. Everything goes through banks to banks.
Okay, bank to bank. But bank -- does it give a guarantee, some kind of a guarantee to you?
There is no guarantee.
So there is no bank guarantee as well, right?
Yes.
So now when you're looking at it, since I am based out of Dubai, and I know the current conditions of Dubai. What I'm asking you is, do -- are they making the payments on time? Or is it deferred payments? So let's say, you're assuming, you're supposed to receive INR 100 crores, are you receiving INR 20 crores in packets or you're receiving INR 100 crores as planned?
We have already explained the detail in the second quarter that there is a delay in the payment because we have reduced that fully. Hence there -- definitely, there is a -- business in Gulf also because of [indiscernible] things are down. And we have reduced the business a lot, and that's why there is billions of payments, but there is no bad debts, and we are receiving the payments as if -- whatever we are exporting, we are -- more than that, we are receiving the payment. And certainly, this is the old payment we are receiving more than we are exporting. So there is no problem in that.
So you are 100% sure that there are no bad debts in your company?
Yes, yes, there is no any bad debt. If there is any bad debt, definitely we have to disclose the bad debts.
Okay, sir. Second question of mine, if you have time. You told me that there is INR 1,900 crores has dropped down to INR 1,500 crores, and you will do it INR 1,000 crores. But you're also building up sales every month now, I mean, every quarter. And so this year -- this quarter, you have billed INR 300 crores?
Last quarter -- if you look at the last quarter, we billed around INR 300 crores sales. And more than that, we received almost 6 years' old payments. It means more than INR 600 crores of payments, we've got double of the debt. So whatever we exported double of that, we received the payment. Old payments we are receiving, there is no problem there.
[Operator Instructions] The next question is from the line of [ Karthik Krishnaswamy ] from [indiscernible] Technologies.
Balram sir, I had just one question here. So what I thought, last time when the buyback was canceled and if you want to issue another buyback, so it'll be -- there has to be a gap of 12 months. So it is the reason why the company is not making full disclosures right now? And you want to announce the buyback toward the prices it would remain at the lower level? Is it some kind of a reason that you want to increase your holdings at the lower price? Is there -- or you want -- or some other promoters want to increase their holding at the lower price? And you want to keep their price at a lower level?
We cannot right now actually, even if we want to buy, we cannot comment on that because that not will be -- we cannot comment on the buyback of share or promoter holdings. But as we stated, [ that not all these have cushion ] and brings no [ clad ] in the promoter holdings. So other than that, we cannot comment on this and -- as well as our disclosure system -- our disclosure is better than the other disclosures. Whatever transaction is required, we are doing.
[Operator Instructions] The next question is from the line of Pradeep Prakash from UTSAV Consultants.
Sir, I just want to ask out of these INR 1,500 crores, which are receivables, can you give us the breakup in terms of how many of them are receivables beyond 3 months, 6 months, 9 months, 12 months or even 2 years?
Right now, actually the breakup is not available.
Okay. Some rough idea of beyond 6 months?
We cannot give any rough idea. We don't have right now.
Okay. Sir, this is important. Can you disclose this in your final 31st March Annual Results?
Definitely, we can disclose in final, definitely.
[Operator Instructions] The next question is from the line of [ Yogesh Kumar ], an individual investor.
Hello.
Yes.
Hello.
Yes, yes, we can hear you.
So, sir, actually I want to know about the -- creating the brand value of PCJ. So like last year, we had Akshay Kumar. So is there any plan to hire any big celebrity or -- because marketing expense is also down this quarter?
So actually the company -- every year, company has a different plan. Last year, company had planned to advertise on the national channel. And this year, we are doing the regional advertising note. You look at in the regional paper, every month you look, you can see our ad in all the instance where our stores are there. So every year, the difference has been there. Definitely, we are working on the various strategies and various things for the marketing. And we are thinking of that also. So at the right time, we'll disclose it.
Sir, one more question. In presentation, it was said that there was consolidation of 3 stores. So are these already -- all of these stores are franchisee stores or company owned?
Only the owned stores. We are only on business, we have not franchisee stores, only the owned stores.
So company owned, 3 stores are consolidated? These stores are in the same locality or...
Yes, same locality actually in Delhi. Like in Delhi, we have 3 stores, so 2 stores in Maharashtra.
The next question is from the line of [ Hemendra Singh ], an individual investor.
Yes. Sir, can you hear me?
Yes, yes.
Sir, I just wanted to know that like is there any plan for buyback in coming quarter or in...
Sir, no plan for buyback right now.
The next question is from the line of [ Gaurav Singh ] from [ Oldwood Partners ].
Can you hear me?
Yes, yes, we can hear you.
Okay. Sir, so again about the receivables, so in the quarter ending September, we barely did any exports, okay. And we disclosed that the receivables are around INR 1,800 crores. So that means that these INR 1,800 crores, they were outstanding as of the June quarter effectively, right? So they are already more than 6 months due. Now my question is, the INR 600 crores that we have received in the previous quarter, did we receive those INR 600 crores from that INR 1,800 crores?
Yes, yes, yes, from the INR 1,800 crores only...
No, no, please let me finish my point. Sir, did we receive that entire INR 600 crores from that INR 1,800 crores? Or did we receive some part of that from the exports that we did in the December quarter also?
100%, INR 600 crores is of the old payment only.
The next question is from the line of [ M. Mandal ], an individual investor.
Hello.
Yes.
Bhatia ji, can you hear me?
Yes, we can hear you.
Sir, actually I am from Guwahati. And you have a store there at Guwahati.
Yes, yes.
So are you monitoring the sales of that store?
Definitely, we are monitoring the stores of not only Guwahati...
Because just I think 3, 4 months back, one Kalyan Jewellers store came up, and I think they are taking your share.
No, no, Guwahati store -- we have the different variety, different thing apparently. And there is a -- because you know the market in Guwahati. There are only 20%, 25% market is online, where 70% -- more than 70% market is unorganized. So there is a place for so many players. So they -- we are taking them and other -- right now other organizers really are taking the care from the unorganized sector.
Okay, okay, no, see, one more thing. Guwahati is a little far from your this north, but it has got lot of opportunities. So you should look for opening, sir, one more store there nearer -- near this north side of Guwahati, okay. Or you should have some...
Sir, Guwahati store is doing very good as because I know that. And definitely this is a good idea and we will definitely consider because there the sales are very good. Definitely our team looks -- they would like to open another store also.
Yes, yes, because Guwahati is the gateway of North-east, so you should look it seriously.
Yes, sure, sure. Thank you, thanks.
Okay, sir. One more thing, one more thing I want to tell. See actually I am an investor of PC Jeweller for last 2 years, okay. And I was monitoring your stock, and I am comparing one of the largest competitors, you know it, Titan, okay. So for last 2, 3 years, I have experienced that the earnings were going neck to neck, okay.
Yes.
Hello?
Yes, yes, we are hearing you.
Yes, your earnings were -- you can compare the earnings with Titan. It was going neck to neck, but suddenly fell, okay. So what are the steps you are now taking? See, the book value of -- the PC Jeweller's book value -- book-to-price value is less than 1 and Titan is charging the premium of more than, I think, 8 or 9, okay. So what are the steps you are taking so that your -- this -- the premium should get reduced?
We are taking so many steps. Because there is just a big concern in [ Sandeepia ] the verdict was there. The company has decided to reduce the export business to reduce the debt also. And company every quarter doing the same -- as per whatever target we set, we are achieving that. So company is doing -- whatever step company can take, company is taking, and for the benefit of the investor. And now, definitely, from next year onwards, we will open more and more stores. This year [indiscernible] this year all these transactions are for the consolidation. And now we are -- we will start opening more stores from the next year onwards.
And, Bhatia ji, one more question I want to ask. During the last conference call, during Q2, one investor raised a question regarding demerging of your -- this export business, okay.
Yes, yes.
So do you have any plan? Because it is killing your -- killing your -- this premium?
So first, we...
You are losing -- see, your export margin is hardly around 4%, 5%, and your domestic margin is quite higher.
So for the benefit of the investors, we are definitely -- we are working on the various things. And at the right time, we will disclose.
The next question is from the line of [ Sharad Joy ], an individual investor.
My question is -- the same question asked by one other. My question is, even after the debt has reduced, the interest cost remained high. So when can we...
And we -- I only answered this because now the company has -- if you look at -- even the interest was increasing, our margins have increased. Because we are passing that -- because now company has changed the business model because of -- the business model has changed because banks are not accepting the various bank's LCs. So now the -- earlier -- when we are using the LC limit, now we are using the fund business. So that's why the interest costs have increased. Profit also increased because there's no impact of increased interest cost. And we are passing it to the customer only.
Okay. So from coming quarters, we can expect at least right -- decrease in the interest cost, right?
So next year onwards, definitely, you can expect that.
The next question is from the line of [ Charles Sodi ], an individual investor.
I have 2 questions. First of all, about this INR 1,500 crores debt, which you already explained so much and many people have already asked. But my question is, since you have now decided to stop export business, so do you -- I mean, what is making us so confident that we will get all the money back? And why we are not ready to create some kind of provision for doubtful debt? Because once the business has stopped, so it is a psychological factor that people do not take it seriously and they want to delay or sometime even not ready to make the payments.
First of all that we have not stopped, we have reduced it. So right now, there is not a -- there is no signal that we are not receiving any payment. So there is no need to look for any provision. Because we are, as I mentioned earlier that, whatever we are or something that we [ developed ], that we receive the payment, old payment. So there is no -- we don't see any problem for receiving the payment. So that's why we are not [Foreign Language] what we wanted to say is that, see, you're very right that reducing or -- certainly a running business cannot be put to 0 immediately. The company is taking quite major steps, you know to -- how much to export, how much to do, what to import, everything is being monitored and synchronized very carefully by the company so that -- so as to ensure that even if the need to export is not stopped because the company has the need to realize old debt also. So everything is being monitored -- done very carefully at a company level that we think so that a balance has to be maintained.
Right now, there's not problem for anything.
Okay. And the second question is, many people already asked also that you have no plan as of now for any kind of buyback. So my question is, why there is no plan because the price is -- your stock price is less than 5 PE ratio? And intrinsic value, I think you think also is so much high as compared to the current market price, so why company is not ...
Actually, right now you know that every quarter we are reducing the debt, so the question is because of banks are excusing the credit, so right now, our need is to reduce the debt. So once we will complete that, then we can think about it. But right now, there is only the -- our target is to -- we'll keep the target of reducing the debt.
The next question is from the line of Raja [indiscernible] from Axis Mutual Fund.Raja, your line is on mute, please go ahead.As there's no response from the current participant, that is the last question.I now hand the conference over to the management for the closing comments.
We'd like to thank everyone for taking their time out and joining onto this conference. We fairly thank each and every one of you for looking to us as opportunity. Thank you.
Thank you. Ladies and gentlemen, on behalf of PC Jeweller Limited, that concludes today's conference. Thank you for joining us and you may now disconnect your lines. Thank you.