Shrenuj Reports Weak Q3, But Christmas Sales in U.S. Solid

(IDEX Online News) – Indian diamond and jewelry firm Shrenuj & Company Ltd. posted a 10.7-percent drop in group sales on the year to approximately $205 million for its third fiscal quarter ending December 31.

Revenues from diamonds fell 10.4 percent to around $173 million, while sales of diamond-set jewelry sales dropped by more than 12 percent to around $35 million. The firm said that profit in the quarter edged down 1.4 percent to $3.4 million.

Revenue for the first three-quarters of its fiscal year jumped almost 16 percent on a year earlier to $552 million and net profit surged 19.3 percent to $10 million.

Shrenuj Chairman and Managing Director Shreyas Doshi said, ''These results are satisfying in the present market scenario. We have witnessed a good demand during the Christmas season in U.S., the results of which will be reflected in the ongoing period.

"Traditionally, diamonds and jewelry demand is seasonal and the January to March (quarter) is one of the periods for higher revenue and margins.

''We are witnessing some increase in rough diamond prices but are happy to note that the prices of polished diamonds have also started to rise in sync with the rough prices. We are also pleased to see the rise in demand in the U.S. market, as well as in the Middle East, India and China. Though the rise in demand is marginally lower than last year, however, the trends are positive. The ongoing quarter is important for us and we are pleased with the way it is progressing so far,'' Doshi added.