The company had clocked a net profit of Rs 151.65 crore for the same quarter last year.
Net sales of the company during the July-September period decreased 23 per cent to Rs 3,003.70 crore from Rs 3,928.25 crore in the same period last year, the company said in a BSE filing.
The company's profits were also hit by a jump in finance cost, which rose by 79 per cent to Rs 182.73 crore during the second quarter of the current fiscal.
The company has more than 4,000 points of sale in India. It also has stores in the United States, China, Japan along with a presence in Europe and West Asia.
In a separate filing to BSE, Gitanjali Gems said the board has accepted the resignation of whole time director Sunil Varma, who has offered to resign as he has taken the charge of overseas businesses and affairs of the company.
Following the resignation, now board is balanced in terms of optimum combination of executive and non-executive directors as per the listing agreement, the filing added.
Shares of the company today closed at Rs 58.30 apiece on BSE, up 1.66 per cent from its last close.