Renaissance Jewellery Ltd. reported that group net sales more than doubled to $54.2 million (INR 2.67 billion) during its second fiscal-quarter that ended on September 30, 2011. Growth was driven by strong jewelry and diamond sales as group net profits increased by 44 percent year on year to $2.1 million (INR 104.03 million) during the quarter. Total expenditures rose to $51.1 million (INR 2.52 billion) from $21.96 million (INR1.08 billion) last year.
The Mumbai-based company, which manufactures and sells studded jewelry in gold, silver, platinum, polished diamonds and precious color stones, reported jewelry segment sales nearly doubled to $43.9 million (INR 2.17 billion) from $23.8 million (INR 1.18 billion) a year earlier. Sales at its diamond business grew 31 percent to $16.5 million (INR 814.3 million). Inter-segment revenue rose 6 percent to $13.3 million (INR 657.9 million).
Renaissance Jewellery’s home retail unit, which it established through the acquisition of Housefull International Ltd. during fiscal 2011, posted revenues of $7.1 million (INR 349.9 million). The company also acquired Ajit Garments Private Ltd. for $1.46 million (INR 72 million) during the quarter.
The company noted that the Indian rupee depreciated by 9.4 percent against the U.S. dollar which resulted in an unrealized net exchange loss of $4 million (INR 198.08 million) due to revaluation of foreign currency loans, creditors, debtors, and mark to market losses on forward contracts.
Renaissance Jewellery counts Walmart, Zale, J.C. Penney, Signet, Kohl’s, Sears and ShopNBC among its clients.