Sanjeev Bhatia, president finance of PC Jeweller, expects strong consumer demand in FY14 inspite of all the regulatory overhangs and other uncertainties. He does not see demand for wedding jewellery going down and hence is confident of ending this fiscal with good numbers.
On falling exports in the first quarter, Bhatia says exports are order based, which is always on the lower side in Q1 due to hectic last quarter in the previous year. He says declining jewellery prices have been very good for the domestic business.
Below is the verbatim transcript of Sanjeev Bhatia's interview on CNBC-TV18
Q: Your export business revenue has fallen by nearly 22-23 percent odd. Can you take us through why this has been and what is your outlook going forward? How much of an impact of currency depreciation you have seen?
A: Export business is an order based business. It is generally on a lower level in the first quarter, because the last quarter of the fiscal is always been hectic. Especially during the current fiscal, frankly the first quarter has been so good for the falling jewellery prices that we put more concentration over domestic business. You would have noticed that we have also opened six new stores in the first quarter, so we did not concentrate fully on the export business frankly in the first quarter.
Q: What is the kind of visibility that you have on FY14? What is the outlook going forward in terms of revenue and margins?
A: We see strong consumer demand in spite of all the regulatory overhangs and other uncertainties. The consumer demand for jewellery remains strong and specifically in the segment in which we operate, that is wedding jewellery we have not seen any impact of consumer downtrend. So we are confident that we should end this fiscal with very good numbers.