Rajesh Exports sees FY09 revenues at Rs 8,690 cr

Rajesh Exports expects to report revenues of Rs 8,690 crore in 2008-09 (April-March), up 10 per cent on year.

The diamond and jewellery company is seen ending the current year with revenues of Rs 7900 crore.

The company said the main factor driving growth is its strength in backward integration in its manufacturing facility at Bangalore.

"This facility is fully mechanised and can produce gold jewellery at lowest costs, with low wastage," the company said in an emailed response to NewsWire18.

The company's profit in 2008-09 is seen at Rs 307 crore, up 70 per cent on year.

Its business segments""bulk exports, retail, private label, and diamond""are seen contributing to the growth with retail providing the thrust, the company said.

In the current year, bulk export segment of gold is likely to account for 94 per cent of revenue but going forward retail jewellery is going to be the focus area.

Revenue from retail jewellery segment is seen rising nearly five-fold to Rs 1,130 crore in 2008-09 from Rs 237 crore this year.

"Rajesh Exports has identified retailing as a major growth driver going forward. The company has planned an interesting retail foray with three different retail formats catering to different customer needs," Prabhudas Lilladher said its report.

The three formats are Shubh for mass market, Laabh for premium market, and Oysterbay for the fashion conscious customers.

Prabhudas Lilladher said the company's retail model provides scalability with existing jewellers being roped in as associates or franchisees.

Recently, the company bagged its first branded diamond jewellery order of Rs 116 crore from Sharjah-based Excel Goldsmith.

The order is for six of the nine brands of diamond jewellery it launched recently. Rising gold prices are not likely to impact the company's performance as it resorts to hedging.

Also, the slowdown in the U.S. economy does not affect Rajesh Exports' sales as most of its business is from Asia, particularly West Asia, the company said.

At 12 pm, shares of Rajesh Exports were trading at Rs 894 on National Stock Exchange, down 1.3 per cent from Monday's close.