Shrenuj & Company Limited, the integrated gem and jewellery giant revenue brightened the faces of shareholders as it announced impressive nine months results to December bolstered by the recovery in the market.
The DTC sightholder that has presence in 15 countries said it is more upbeat about the future which will include its production from Botswana starting this year, it announced on Thursday.
Revenue from April ÔÇôto- December was up 34 percent to US $ 377 million ( about P 2.6 billion) while profit after tax was 18 percent higher to US $ 9.6 million or P 66 million .
“The recent quarter has witnessed a growth in revenue from all the key markets for gems and jewellery, including US. Despite the rising prices of precious metals, the volume growth is encouraging,” the company said.
“By the end of this month, we are commissioning a new jewellery manufacturing facility in Botswana, the very first in the country. This new unit will not only contribute incremental revenue but also lead to improved captive consumption of our high-end diamonds polished within Botswana,” the company Chairman and Managing Director, Shreyas Doshi said.
Shrenuj is also one of the 16 DTC Botswana sightholders . It was admitted following the closure of DDA Botswana last year. It is involved in cutting and polishing, jewellery manufacturing up to branding and retailing.
Doshi said he was bullish that global economic recovery will lead to double digit growth in the diamond and jewellery market bolstered by the key markets that are showing some positive growth.
The nine months company results were powered by retail and branded jewellery operations that shot-up 73 percent to US $ 27 million.
The company has presence in 23 metros and Tier- A cities in India, reaching over two-thirds of its target market. Further, it is planning to increase the number of its outlets to 29 cities in a bid to reach over 85 percent target consumer segment.
“Both our key markets for retail, Hong Kong and India, continue to record impressive growth that is consistent with our growth plans.
“We are very pleased with our results in this segment and will continue to deliver thrust to these high value-adding segments within our business. The revenue share from our jewellery, branding and retail segments will leap significantly in the next two years. ” the company said.