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Shrenuj's 3Q Sales +60%, Profit +13%
Feb 14, 2013 3:59 AM
By Dilipp S Nag
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RAPAPORT... Shrenuj & Co. Ltd. reported that third quarter group sales rose 60 percent year on year to $265.9 million (INR 14.30 billion) for the period that ended on December 31, with a strong performance at its diamond business. Group expenditures rose 62 percent to $254.2 million (INR 13.68 billion) during the quarter. Net profit grew 13 percent to $3.9 million (INR 212.2 million).
“The festive season in India and Christmas in the west has been good in terms of revenue generation,” said Shreyas Doshi, the chairman and managing director of Shrenuj. “We are witnessing a healthy growth in volume in China, Middle East and India and these regions will drive incremental demand in the current year.”
The diamond and jewelry manufacturer has units in India, Botswana and South Africa, in addition to dedicated outsourcing facilities in China. The bulk of its revenue was derived from its diamond sales, which rose 93 percent year on year to $222.9 million (INR 11.99 billion) during the quarter. However, sales in its studded jewelry business declined 15 percent to $46.5 million (INR 2.50 billion).
Doshi noted that retailers have shown some resistance to a new diamond and jewelry pricing scheme. But going forward, stable demand and less volatility in prices should help the company improve its margins and pass a part of the increased costs on to the consumer, he added. Doshi also stated that a planned infusion of equity from institutional investors would help the company accelerate its growth initiatives in manufacturing and sales operations.
Vishal Doshi, the group's executive director, stated that the company’s branded products were being well received by the consumers and that sales have remained robust despite economic slowdown in some of its markets. “The avoidance of fiscal cliff earlier this year and similar policy framework changes in other markets give us hope of a faster economic turnaround, which will help us register volume as well as revenue growth,” he noted.
Shrenuj operates in India through its Diti retail venture and plans to increase the number of its points of sale to 225 in 33 Indian cities by the end of this year. The company also has a presence in Hong Kong through its Joliesse brand retail stores.
*Note: All data was published in rupee. Any references to U.S. dollar amounts were made according to exchange-rate conversions by Rapaport News.
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Tags:
diamond, diamonds, Dilipp S Nag, Diti, Festive, India, Jewelry, Joliesse, Shrenuj, Shreyas Doshi
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