Lower Circuit Alert: International Gemological Institute (India) Shares Hit Lowest Level Since Listing
In Q4FY25, the company posted a robust 45 per cent rise in net profit, reaching Rs 114 crore.
Shares of International Gemological Institute (India) Ltd. tumbled 10 per cent on Monday, hitting the lower circuit at Rs 367 apiece, marking their lowest level since the company's listing in 2024. The sharp fall came after the company reported its December quarter earnings, which failed to meet market expectations.
The company follows a calendar year for its financial reporting and posted a 6 per cent increase in consolidated revenue for the three months ending December 2024. However, this growth was underwhelming for investors, as a higher volume of lab-grown diamonds than natural diamonds led to muted revenue expansion.
Despite the market’s reaction, International Gemological Institute (India) Ltd. posted a robust 45 per cent rise in net profit, reaching Rs 114 crore in Q4CY24, compared to Rs 78 crore in the same quarter last year. The company’s revenue increased to Rs 265 crore from Rs 250 crore, reflecting a 6 per cent rise. Meanwhile, EBITDA surged 18 per cent to Rs 152 crore, compared to Rs 128 crore in the previous year’s quarter.
Management’s Comments on Earnings
Tehmasp Printer, Managing Director and CEO of IGI, expressed confidence in the company’s future, stating, “IGI’s strong financial performance in 2024 reflects our commitment to excellence and leadership in the global diamond certification industry. With a 33 per cent global market share in diamond certification and 65 per cent in lab-grown diamonds, we continue to expand our presence and enhance our service offerings. The acquisition of IGI Belgium and IGI Netherlands further solidifies our international footprint, enabling us to serve a broader customer base. As we celebrate IGI’s 50th anniversary, we remain dedicated to innovation, accuracy, and trust in the jewelry certification ecosystem.”
Additionally, Eashwar Iyer, Global CFO of IGI, emphasized the company’s operational efficiency: “Our record revenue and profit in CY 2024 highlight IGI’s strategic execution. The 17 per cent revenue growth and 29 per cent PAT growth reflect strong demand for our certification services, while our solid EBITDA margin of 57 per cent underscores our efficiency. With IGI’s operations now consolidated under India, we aim to leverage the country's strengths in manufacturing and polishing alongside our retail presence in the USA, Europe, and China.”
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The board has recommended an interim dividend of Rs 2.44 per share for CY24. Additionally, the record date for the company’s final dividend of Rs 0.50 per share for FY24 is Friday, September 20, 2024. Shareholders holding the stock on the record date will be eligible for the dividend.
International Gemological Institute (India) Ltd., which provides independent certification services for diamonds, studded jewelry, and colored stones in India and Turkey, currently has a market capitalization of over Rs 15,800 crore. However, the stock has seen a steep decline of 38.44 per cent on a year-to-date basis in 2025, reflecting investor concerns over its recent performance.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.