Watch segment sales grew by 3.6%, jewellery sales went up by 36.3%. Sales of other products, including eyewear, accessories and precision engineering components, rose by 48.8%. During the year, it added 135 new stores for watches, jewellery and eyewear businesses. As on 31 March 2009, the company has a total of 487 stores (6,03,686sq ft). It declared a dividend of 80% and a special silver jubilee additional dividend of 20% making a total dividend of 100% for FY09.
The overall year has been good but its fourth quarter has not been that good. In Q4Fy09, net sales dropped 6% (QoQ) but net profit dropped by a whopping 86% on a QoQ. OPM was down at 5.89% (11.69%) and NPM was down at a meager 1.15% (8%). What took a toll, apart from the lower sales was the impact of Rs.12.78 crore due to reduction in the discount rate for actuarial valuation of gratuity and leave salary. It also provided Rs.17.58 crore towards income tax and interest thereon of earlier years, which were in respect of issues where similar demands have been raised earlier and are being contested.
The company feels that the coming quarter, Q1FY10 will be a good one as it is peak marriage season and demand is expected to be high. In FY10, overall, it expects a growth of 15% but given the difficult times we all currently live in, it is better we take a quarter-to-quarter approach.
In Q3FY09, Rakesh Jhunjhunwala held 8.37% stake in the company, which as on 31/03/09 stands at 8.1%