The country’s largest gold jewellery manufacturer and exporter, Bangalore-based Rajesh Exports, has posted 46.43 per cent decline in net profit during the first quarter of the current fiscal on substantial increase in investment in raw material procurement.
The company reported a net profit at Rs 18.45 crore in the first quarter ended June 30, 2009 as compared to Rs 34.44 crore in the corresponding quarter of the previous fiscal. Net sales of the company shot up, however, from Rs 2332.16 crore to Rs 3672.17 crore in the quarter under consideration.
The company attributed the fall in net profit to the inclusive of a number of factors including rising employees costs and 72.12 per cent rise in consumption of raw materials. Its investment on raw material procurement surged steeply to Rs 3819.50 crore during the first quarter of the current fiscal as compared to Rs 2219.08 crore in the comparable quarter of the previous year.
Other expenditure, meanwhile, nosedived to Rs 10 lakh from Rs 67.27 crore in the same quarter last year.
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