Tara Jewels announces financial results

Tara Jewels Limited announced its unaudited results for the six months ended September 30, 2013. Consolidated Sales (Excl. Bullion) stood at Rs. 6812 million, rising 12 percent from Rs. 6073 million in the same quarter last year. Also, net profit was worth Rs. 227 million. In line with the commitment during the IPO, the company has expanded its retail footprint with 50 Operational Stores spread over 37 Cities in 12 States.

Mr. Rajeev Sheth, Chairman & Managing Director said, “Tara Jewels Limited is pleased to declare maiden interim dividend of Rs 1 per share. We have announced another strong quarter of performance with a profitable growth in both Retail as well as Exports Business. In the International Business, we have seen a healthy growth in the order book backed by orders from Large Retailers of the world”. He also spoke of expansion of the company in new markets and with new brands.

He also commented upon the changes by RBI, stating that they, “ indicate the Government of India intends to encourage the Exports of Jewellery by giving Exporters priority allocation of Imported Gold and simultaneously curb the imports of Gold for the Domestic Use. The 20:80 principle of RBI does not have a significant impact on Tara Jewels as we derive over 80 percent of the revenues from exports. In September 2013, the RBI has also disallowed Gold on Lease facility and restricted the Nominated Agencies to Import Gold for Domestic Use. The new requirements have restricted the supply of Gold for the Domestic Use”. As such he mentioned the company is “Re-strategizing the India Retail Business” to cope with the constrained environment, adding that “We shall continue to expand our footprints through Shop-in- Shop model and look at options of Asset Light Franchise Model “ and monitor “existing 50 stores”.

Commenting on Retail Business in India Mr. Vikram Raizada, Executive Director and Chief Executive Officer (Retail) said, “As per our Strategy, we are now focusing on achieving faster expansion with lesser capital outlay”. He also noted Tara Jewellers being awarded ‘‘LUXURY RETAILER OF THE YEAR at the Star Retailer Awards 2013 for Excellence in Retailing’, during the last quarter.