Rajesh Exports, a gold jewellery exporter and retailer, has announced a 45% increase in net profit to Rs 107 crore for the second quarter of 2011-12, compared to the corresponding period of last fiscal. Revenues were up 14.43% to Rs 5,767 crore.
The company works on razor thin margins, due to inherent play of importing bullion and then exporting crafted jewellery giving hardly any scope of increasing the net profit margin.
The net profit margin stood at 1.85% during the quarter under review, up from 1.44% during corresponding quarter of last fiscal as the company is taking up aggresive retailing in India, which is helping in improving the margins.
The company said it has order books worth Rs 4,841 crore which are to be executed within this fiscal.