Rajesh Exports’ net profit down 11% in Q2

For the three months ending September 2013, Rajesh Exports’ net profits slipped 11 percent to Rs 100.4 crore, reports say. The company describes the quarter as having been challenging, as it faced the brunt of government restrictions towards gold and gold jewellery reports suggest.

The government had issued a norm that gold can now be bought on direct cash basis as against credit, owing to which many companies have had to face increased financial costs, Rajesh Exports included. Rajesh Exports’ finance costs rose 55. 61 per cent to Rs 127.8 crore. Operating profit rose 17.29 per cent to Rs 228.2 crore, reports say. Also, net sales dropped 4.53 per cent to Rs 6440.5 crore. The company’s retail jewellery venture operates under the name Shubh Jewellers. % Despite the tough situation in importing gold as levied by the Indian government, Rajesh Exports plans expanding its retail venture. In the said quarter, the company’s total expenses rose from Rs 6550.8 crore in the comparable quarter last year to Rs 6212.3 crore this year, reports say.