Lower sales in West Asia impact Shree Ganesh profits

Our Bureau Kolkata | Updated on August 13, 2013 Published on August 13, 2013

Shree Ganesh Jewellery House is expecting 40 per cent improvement in turnover in the July-September quarter riding on dual impact of Id sales in West Asia and Rs 5,000 crore order-book position.

The company reported a mere two per cent rise in net profit in the April-June quarter. Though domestic sales moved up by a whopping 2.5 times, riding primarily on bullion trade, volatility of rupee and lower sales in West Asia had impacted the bottomline.

Capital infusion

“Mid-East sales peak during Id. This year Id was scheduled in August, so a good part of sales will reflect in the July-September performance,” said Umesh Parekh, Managing Director.

The promoters recently, infused Rs 140 crore equity through fresh issue of shares to meet the ongoing capacity expansion in its integrated manufacturing facility at Domjur, Howrah, 30 km from the city; setting up new retail stores and working capital requirement.

The capital infusion has increased promoter’s stake from 72.54 per cent (in March) to 74.79 per cent (June).

In tune with the company’s retail initiative, so as to improve margins on domestic sales, Shree Ganesh will open 20 new stores by the end of this fiscal. This is over and above the existing retail network of 44 stores.

Q1 results

Shree Ganesh, during the April to June quarter, reported a net profit of approximately Rs 72 crore. Its turnover increased by nearly 50 per cent to around Rs 3,060 crore.

Domestic sales stood at approximately Rs 1,330 crore, while exports were at approximately Rs 1,782 crore.

The stock closed at Rs 69.45, up by 3.66 per cent, on the BSE on Tuesday.

Published on August 13, 2013
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