Shrenuj & Co. reported that group net sales rose 27 percent year on year to $155.6 million (INR 7.67 billion) during its second fiscal-quarter that ended on September 30, 2011. The growth was driven by good diamond and studded jewelry sales. Net profits increased by 29 percent to $3.9 million (INR 193.1 million during the quarter.
The diamond and jewelry manufacturer reported that diamond segment sales rose 20 percent to $118.8 million (INR 5.86 billion), while sales at its studded jewelry business grew 76 percent to $43.2 million (INR 2.13 billion). Inter-segment revenue surged to $6.4 million (INR 317.1 million) from $1.6 million (INR 79.7 million).
Total expenditures rose 27 percent to $146.1 million (INR 7.20 billion) during the quarter as consumption of raw materials increased.
Shrenuj’s operations span 29 cities in India through its “Diti” retail venture. It also has a presence in Hong Kong through its 12 “Joliesse” brand retail stores. The Mumbai-based company has manufacturing units in India, Botswana and Israel and the bulk of its revenues are derived from its diamond sales.
In August this year, Shreyas Doshi, chairman and managing director of Shrenuj, told Rapaport News that the company is targeting sales growth of 25 percent to 30 percent in the full fiscal year ending on March 31, 2012, up from sales of $542.3 million (INR 24.57 billion) it posted the previous fiscal year. Profits are expected to rise by 15 percent to 20 percent year on year.