Shrenuj & Company Limited, a leading diamond and jewellery conglomerate, announced its financial results for H1-FY 2013-14. The board of directors, in its meeting held in Mumbai on November 1, 2013 recorded total operating income of Rs. 2,159.57 crores for the six months ending 30 September 2013 as compared to a revenue of INR 1,537.26 crores in the corresponding last period. The net profit for the period rose to Rs. 42.15 crores (Rs. 31.72 crores) resulting in an increase in EPS (diluted) to Rs. 4.37 from Rs. 4.14 last year.
In Q2-FY’14, consolidated revenue of Rs. 1,163.26 crores was recorded against Rs. 823.60 crores Q2-FY’13, registering a y-o-y growth of 41 percent and a q-o-q growth of 16 percent. The PAT figure for the quarter stood at Rs. 25.06 crores (Rs. 18.99 crores) registering a healthy 32 percent y-o-y growth and 46 percent q-o-q rise.
This growth has been achieved in a fairly challenging market conditions and amongst a highly volatile currency market. The continued focus on diversifying customer base across new geographies and increasing operational efficiencies through improved productivity has resulted in revenue as well as bottom-line growth as envisaged by the management.
In the first half of FY’14, the company has registered the highest productivity levels in its diamonds and jewellery production units along with increased throughput and highly improved operational efficiencies.
“We are quite pleased with our financial performance in these challenging economic scenario. The stability in demand in jewellery products in the US 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,” Shreyas K Doshi, Chairman and Managing Director said.
He said 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 results is not good for consumer sentiments and more so for those who perceive jewellery 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 jewellery 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 jewellery 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.”
Conversion rates for INR-USD:
As on 30 September 2013:
1 USD= Rs. 62.62