Rajesh Mehta, Executive Chairman of Rajesh Exports told CNBC-TV18 that he expects to post good Q1 FY16 numbers. He also expects to see 3-5% margin because of expansion into retail.
Rajesh Exports has seen 155 percent growth in the past one year and has been recently hitting fresh highs over a spate of big orders wins. Sentiment has also improved even as the company continues to mull acquisitions in Europe. Company's market cap has doubled from Rs 6,000 crore to over Rs 12,000 crore in just three months.
Rajesh Mehta, Executive Chairman of Rajesh Exports told CNBC-TV18 that he expects to post good Q1 FY16 numbers. He also expects to see 3-5 percent margin because of expansion into retail.
The company operates on extremely low margins as its main raw material is gold. Raw material costs accounted for 95 percent and 97 percent of total income for the fourth quarter and FY15, respectively. The stock may have run up on the prospect of higher revenues, which is evident from the scale up in operations. The recent orders may look big on the face of it but compared to topline, maybe not. However, the company has seen significant year-on-year (Y-o-Y) pick up in business, not only in Q4 but also FY15.
Watch accompanying video for full interview...