Goenka Diamond 2Q Sales Drop But Profits Soar

Goenka Diamond & Jewels Ltd. reported that group net sales fell 5 percent year on year to $29.44 million (INR 1.44 billion) during its second fiscal-quarter that ended on September 30, 2011 as diamond segment revenue declined.

The company, which is in the business of cutting and polishing of diamonds and manufacturing and retailing of diamond jewelry, reported that diamond business sales fell 7 percent to $19.40 million (INR 949.51 million). Sales at its jewelry segment decreased slightly to $10.04 million (INR 491.53 million) from $10.13 million (INR 495.65 million) a year earlier.

Net profit, however, more than doubled to $2.37 million (INR 115.87 million) helped by lower expenditures during the quarter. Goenka Diamond, which retails its diamond jewelry under CERES and G WILD brands, posted a profit of $919,656 (INR 45.01 million) in the same period last year.

Total expenditures declined 13 percent to $26.08 million (INR 1.28 billion) during the quarter, stated the company, whose products include rings, earrings, pendants, bracelets and necklaces.

Goenka Diamond said that the reported numbers included the results of M/S Solitaire Diamond Exports, a partnership firm in which the company has 99 percent stake and M.B. Diamonds Ltd. Liability Company, a foreign subsidy.

The company’s stock closed down 1.9 percent at INR 36.10 per share on the Bombay Stock Exchange (BSE) on Tuesday.

Goenka Diamond supplies polished diamonds primarily to wholesalers, jewelry manufacturers, traders and retailers based out of Hong Kong, South East Asia, the U.S., India and other countries.

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