Rajesh Exports net up 126% at Rs 73 cr

The company’s net profit in the previous fiscal’s same period quarter was Rs 32.50 crore. The total sales during the reporting quarter stood at Rs 5,039.84 crore registering a growth of 25.26 per cent over corresponding fiscal’s second quarter which was Rs 4,023.27 crore.

Briefing reporters, Chairman Rajesh Mehta, attributed the “impressive growth” in profits, despite modest rise in revenues, to the company’s foray into retail business.  He said the retail business, which the company got into aggressively just six months back, has contributed 3-4 per cent of the total revenues. Currently, he said, while exports constituted 92 per cent of total sales at Rs 3,000 crore, retail contribution was 3-4 per cent with rest 4 per cent coming from domestic wholesale. The company has recorded exports of Rs 2,700 crore in the first quarter.

Flush with the success of its retail foray which has seen company reap rich dividends, Mehta said the company, which currently has 14 Shubh stores, plans to add another 16 more in Bangalore alone by December-end or early January, 2011. Likewise, he said, they would add another 30 stores across various parts of the State taking the total to 60.

The company plans to add nearly 450 stores in the next two to three years with Orissa being the next City after Bangalore, to have a pan-Indian footprint, he added. Once all stores are in place, he said, they expect retail business contributing to nearly 50 per cent of total revenues. 

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