Shares of gold giant Rajesh Exports hit a one-year high
09:46, 16 November 2021
Shares of India’s Rajesh Exports struck a one-year high on Tuesday, a day after the world’s leading refiner of gold reported stellar earnings for the quarter ended 30 September.
The stock surged 10.9% to INR741.75 in intra-day trade on the National Stock Exchange (NSE) after the company reported an over 68% year-over-year jump in consolidated net profit, at INR2.91bn ($39.2m) for the latest quarter.
Revenues increased more than 59% year-on-year at INR412.45bn for the period under review – the second quarter of the ongoing Indian financial year that ends in March 2022, according to a 15 November stock market statement.
Earnings before interest, depreciation, tax and amortisation (EBIDTA) for the said quarter was INR3.3bn. The retailer of gold and diamond jewellery has a market capitalization of around INR200bn on the NSE, where its shares have advanced some 40% so far this year.
“l am pleased to state that the company has been able to maintain its profitability track record and the company is on track to achieve its growth plans,” said Rajesh Exports chairman Rajesh Mehta.
“It is heartening to note that the company is poised for achieving the targets and I anticipate good growth in terms of revenues and profit in the coming quarters.”
Refining and production
South India-headquartered Rajesh boasts of a capacity to refine 2,400 tonnes of precious metals per annum. It became the world’s top gold refiner post the acquisition of Switzerland-based Valcambi. Gold bars produced by the Swiss firm are accepted across all precious metal exchanges and by all the bullion banks.
Rajesh is also the largest manufacturer of gold products globally. It has a total installed capacity to manufacture 400 tonnes of gold products a year.
In the domestic market, the company sells jewellery under the brand name of SHUBH Jewellers, through 82 stores.