Press releases


July (31st , 2008)

Shrenuj Sparkles: Announces 58% rise in PAT despite economic slowdown

Highlights:

Consolidated Q1 net sales up 18.5% to Rs. 338.81 crs
PAT up by 58.5% to Rs. 13.12 crs
EPS (not annualized) up to Rs. 2.00 from Rs. 1.32 (FV: Rs. 2

Shrenuj & Company Limited announced a 18.5% increase in its sales revenue (consolidated) in Q1-2008-9 to Rs. 338.82 crores from Rs. 285.90 crores in corresponding period last year. Net profit registered a growth of 58.5% to Rs. 13.12 crores (Q1-FY09), up from Rs. 8.28 crores (Q1-FY08). The EPS (not annualized) rose to Rs. 2.00 from Rs. 1.32 last year. The results were taken on records by the board of directors in their meeting held on 30th July, 2008. The results are amongst the best comparable performance in the industry.

The performance is remarkable since it has been achieved in a challenging economic scenario, including stagnant American and Japanese markets and volatile currency rates. Vishal Doshi, group executive director, said, “The results are in line with the expectations. In the last five years, we have created a global distribution infrastructure in 13 countries for diamonds and jewellery. The rise in profitability is a result of synergies in operations from these distribution centers. We expect the growth rate to sustain despite these very challenging times. Traditionally, the first quarter is relatively slower as compared to Q3 and Q4 but from the performance this year, we believe that we are on course to improve our profitability significantly. ” The company has recorded a CAGR of 32% in revenues in 2004-8 and 53% rise (CAGR) in net profits in the same period.
Shreyas Doshi, managing director, commented that the rise in profitability is a result of internal efficiencies and improved capacity utilization. He expressed his concerns about the rising prices of gold and rough diamonds but expressed hope that with the economic revival of major markets, the price rise could be passed on to the consumer. He noted that the demand for diamonds worldwide continues to rise, despite economic slow down, auguring well for the company.

Over the past two years, Shrenuj has aggressively pursued its growth in jewellery and retail domain, the value added components of the diamond value chain. Shrenuj continues to increase its captive consumption of diamonds to offer more of value added products to its customers worldwide.