Rajesh Exports Ltd, the Bangalore-headquartered gold jewellery maker and exporter, has reported a more than 10-fold growth in March quarter net profit at Rs 98.6 crore, helped by sound growth in exports and income from inter-corporate deposits. The company had posted a net profit of Rs 9.39 crore in the year-ago quarter.
Revenue rose 30 per cent to Rs 6,250 crore from Rs 4,805 crore in the corresponding period last year. The company garnered close to Rs 35 crore from inter-corporate deposits by deploying internal accruals worth Rs 1,300 crore during this period.
“Interest earnings from inter-corporate deposits and some good negotiations in export orders boosted earnings during this quarter,” said Rajesh Mehta, chairman of Rajesh Exports.
“Our top line is expected to increase by 20-25 per cent, with sound growth from retail operations in this financial year,” Mehta added.
Rajesh Exports, with 26 jewellery outlets, plans to add another 350 outlets in the next 12-18 months across the country, according to Mehta.
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The company also plans to increase its retail share in the overall revenue to 40-45 per cent in two years from 1.5 per cent. Now, close to 96 per cent of its revenue comes from exports, while the rest comes from wholesale operation.
“Our order book stands at Rs 5,743 crore, with most of the demand coming from West Asia and Far-East region,” Mehta said.
Considering the ongoing debt crisis in the euro zone, exports were not encouraging to Europe, he added.
He, however, said currency fluctuations would not impact earnings, as the company was both an exporter and importer of the commodity.
Rajesh Exports, which saw dilution of promoters’ stake by close to two per cent during the last financial year, may see further dilution this financial year, following conversion of foreign currency convertible bonds (FCCBs) issued by it.
“Share dilution in promoters’ stake may come down to 51-52 per cent from the present 56 per cent, after the complete conversion of FCCBs,” Mehta said.
Barring gold jewellery business, the company is also trying to diversify into real estate business and is expected to launch its first project soon. “At present, our land bank stands at more than 4.5 million sq ft, worth Rs 1,400 crore, in Karnataka and Kerala and we hope to launch residential project soon,” Mehta added.
Rajesh Exports’ shares closed at Rs 85.30, down 6.3 per cent, on the Bombay Stock Exchange.