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RAPAPORT... Shrenuj & Company Limited reported that revenue rose 40 percent year on year to $350 million (INR 21.596 billion) for the first fiscal half that ended on September 30. Profit jumped nearly 33 percent to $6.8 million (INR 421.6 million). The company's second-quarter revenue surged 41 percent to $188 million (INR 11.63 billion) and profit increased 32 percent to $4.1 million (INR 251 million).
Shrenuj & Company explained that revenue grew during the first six months of the fiscal year despite a fairly challenging market and a highly volatile currency rate as the rupee fell to historically low levels against the dollar. In the first half, the company registered its highest productivity level in the diamonds and jewelry units along with increased throughput and highly improved operational efficiencies, it stated.
Shreyas K Doshi, the chairman of Shrenuj & Company, said, ''We are quite pleased with our financial performance in these challenging economic scenario. The stability in demand in jewelry products in the U.S. markets and sustained, though subdued, demand from eastern hemisphere has resulted in revenue growth. The European and Japanese markets have stabilized and we can expect marginal growth from these markets in the coming Christmas season.
''Relative stability in the rough and polished diamond prices has also contributed to our success in the first half of the year. Volatility in prices is not good for consumer sentiment and more so for those who perceive jewelry as an investment option. We believe that through branding, we have been able to not only insulate the consumer from price volatility but also drive them towards perceiving jewelry as a style statement and lifestyle product, without denying the inherent value of gold, silver or diamonds as assets. We also believe that many markets remain underexposed to branded jewelry products and we have potential to extend our footprint into these markets. We continue to enhance our designing and merchandising capabilities to leverage the opportunities in new markets,'' he said.
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