su-raj diamonds...interview with MD

CMD at Su-Raj Diamonds, Jatin Mehta says, the growth has come only in the jewellery segment of the company's business. The jewellery business has got the company about Rs 650 crore, Rs 200 crore more than last year, while the diamond about Rs 550 crore, same as last year, he informs.
Mehta says the company's topline will grow this year, but the bottomline will depend up on gold prices as well as the dollar-rupee movement. If gold prices go anywhere close to USD 1000, then the company's margins will come under pressure, he says.
For future plans, he says the company will continue to focus on its jewellery business and may even open a subsidary in the US

Q: Break up your sales between jewellery and diamond sales this year?
A: The growth is only in the jewellery segment of our business. Jewellery business got us about Rs 650 crore and diamond about Rs 550 crore.

Q: What were these figures last year?
A: Last year, diamonds were at the same level and jewellery was around Rs 450 crore. This means Rs 450 crore has gone upto Rs 650 crore for our jewellery business

Q: Given this growth, what do you reckon will happen in FY07? Can you better this 20% top and bottomline growth?
A: We will be able to continue the topline growth, but the bottomline will depend on gold prices as well as the dollar-rupee movement.

Q: Have you seen any pressure on your margins in this quarter?
A: Not yet. But we do believe if gold goes above USD 700, close to USD 1000, then we will be under pressure.

Q: How do you plan to deal with this, because gold is not showing any signs of cooling off in the near future?
A: As far as orders are concerned, the company has enough of them. But we will not be able to increase the total percentage, because the raw material prices will go up, but not the labour price. We will have to see how the customers are going to respond to the whole issue.

Q: Any retail expansion plans that you have lined out for FY07 and will that ratio between jewellery and diamonds change then?
A: Only the jewelley component will continue to keep growing because that is where the company’s focus is on. So there will be no change in focus as far as the company is concerned, but we do plan to open a subsidiary in US

Q: What about those retail stores you were planning?
A: I do not think we were planning any retail stores, we are a B2B company.

Q: That means you were not thinking of any retail stores?
A: No, but we have a lot of B2B operations that are our associate companies within India