Shrenuj & Co. Ltd. reported that group net sales rose 37 percent year on year to $180.9 million (INR 8.95 billion) during its third fiscal-quarter that ended on December 31, 2011. The growth was driven by strong diamond and studded jewelry sales. Net profits increased by 21 percent to $3.8 million (INR 187.1 million) during the quarter, Rapaport reported.
''The increase in revenue is a clear indication that our impetus on acquiring greater market share during the economic downturns is paying off,'' said Vishal Doshi, group executive director. ''With the sharp recovery in the U.S. and a few other major markets, we are set to surpass our revenue and bottom-line targets for the year.''
He noted that the expansion of the company’s diamond manufacturing bases in Botswana and South Africa during the past two years has also helped to achieve these results, despite challenging market conditions and volatility in the rough diamond pricing.
The diamond and jewelry manufacturer reported that diamond segment sales rose 33 percent to $125.4 million (INR 6.20 billion), while sales at its studded jewelry business grew 53 percent to $59.5 million (INR 2.94 billion). Inter-segment revenue surged to $4.1 million (INR 200.3 million) from $1.1 million (INR 54.0 million).
Total expenditures rose 38 percent to $170.3 million (INR 8.42 billion) during the quarter.
Shreyas Doshi, chairman and managing director of Shrenuj, said that the past six months have been volatile in terms of pricing, economic uncertainty and currency rates and the company has adopted prudent risk mitigation and contingency planning to tide through such conditions.
The Mumbai-based company is also planning to launch a niche diamond jewelry brand in the U.S. this mid-year in about 250-300 stores of a major jewelry chain-store. “The new product line is based on a very special cut, proven by leading gem-testing laboratories to be the most brilliant diamond in the world,” the company said.
Shrenuj’s operations span 29 cities in India through its 'Diti' retail venture. It also has a presence in Hong Kong through its ‘Joliesse’ brand retail stores. The company has manufacturing units in India, Botswana and Israel and the bulk of its revenues are derived from its diamond sales.
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