Rajesh Exports net soars 948%

The revenues stood at Rs 6,250 crore, up 30 per cent from Rs 4,804 crore in the year-ago period.

The main reason behind the huge spurt in profits was a significant drop in interest expenditure from Rs 94 crore in the quarter ended March 31 2009 to Rs 35 crore in March 31, 2010. This was possible because the company deployed its surplus cash to earn interest.  Chairman Rajesh Mehta said “The company has capitalised on the opportunities during the global downturn. By using extra cash we earned sizeable interest.” The company was also able to negotiate good deals with suppliers and retail franchises thereby lowering working capital related expenses, he added.

For year ended March 31, 2010, the company  posted a net profit of Rs 193 crore, up 121. 35 per cent from Rs 87.40 crore in the corresponding period a year ago. Revenues grew by 49.72 per cent to Rs 1,84,781 crore from Rs 12,341 crore a year ago. It has plans to increase its footprint in retail market on pan-India basis by increasing its outlets from 26 to 350 with investment of Rs 7,000 to Rs 8000 crore, financed by cash surplus of Rs 1,300 crore and supplier credit. It plans to foray into diamond and designer jewellery segment.