Shree Ganesh Jewellery House Limited (SGJHL) reported that group net sales rose 32 percent year on year to $521.3 million (INR 26.09 billion) during its second fiscal-quarter that ended on September 30, 2011.
Kolkata-based SGJHL recorded a jump of 29 percent to $469.3 million (INR 23.49 billion) in exports, while its domestic sales grew 87 percent to $60.4 million (INR 3.02 billion). The company derives more than 85 percent of its sales from overseas markets and primarily exports to the United Arab Emirates (UAE,) Singapore and Hong Kong.
Net profits, however, fell 2 percent to $18 million (INR 900.4 million) as tax and interest expenses rose, while other income declined. The company posted an operating profit of $23.9 million (INR 1.20 billion), up 13 percent from a year earlier.
Total expenditures rose 35 percent to $505.8 million (INR 25.32 billion) for the company, which makes gold jewelry, diamond jewelry, gemstone-studded jewelry and light-weight Italian jewelry.
SGJHL currently has manufacturing units located in Mondalpara, Manikanchan Special Economic Zone (SEZ) in West Bengal and is in the process of setting up a gold refining facility at Domjur in West Bengal.
The company also recently entered into a joint venture with an Italian company SALP S.P.A., a specialist in machine-made light weight gold jewelry, to set up a gold jewelry manufacturing unit in India with an investment of $20.6 million (INR 1 billion).