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RAPAPORT... Shrenuj & Company Ltd. reported that group sales fell 10.7 percent year on year to $205 million (INR 12.772 billion) for the third quarter that ended on December 31. Diamond revenue dropped 10.4 percent to $173 million (INR 10.752 billion) and studded jewelry sales declined 12.3 percent to $35.2 million (INR 2.194 billion). Profit after minority interest slipped 1.4 percent to $3.4 million (INR 209 million). Even though the third quarter was weaker from the previous year, revenue for the first nine months of the company's fiscal year improved 15.8 percent year on year to $552 million (INR 34.368 billion) and profit after minority interest jumped 19.3 percent to $10.1 million (INR 631 million).
Shrenuj & Company defined the third quarter as a ''fairly challenging'' period, with mixed demand and consumption patterns across the luxury segment; however, the company optioned not to sacrifice margins just to improve revenue. Shreyas Doshi, the chairman and managing director of Shrenuj, said, ''These results are satisfying in the present market scenario. We have witnessed a good demand during the Christmas season in U.S., the results of which will be reflected in the ongoing period. Traditionally, diamonds and jewelry demand is seasonal and the January to March (quarter) is one of the periods for higher revenue and margins. ''We are witnessing some increase in rough diamond prices but are happy to note that the prices of polished diamonds have also started to rise in sync with the rough prices. We are also pleased to see the rise in demand in the U.S. market, as well as in the Middle East, India and China. Though the rise in demand is marginally lower than last year, however, the trends are positive. The ongoing quarter is important for us and we are pleased with the way it is progressing so far,'' Doshi said.
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