As a result of scrapping 80:20 rule by RBI the procurement costs for gold companies would be lower, said Yadindra Kumar, GM Finance at Thangamayil Jewellery.
The metal availability was a question for the entire jewellery industry and because of 80:20 scheme it was creating very unhealthy approach of smuggling from neighbouring countries.
Yadindra Kumar
GM Finance
Thangamayil Jewellery
Yadindra Kumar, GM Finance at Thangamayil Jewellery said with the RBI scrapping the 80:20 rule on gold imports, the availability of gold would improve and also help curb gold smuggling.
It would also mean that the procurement costs for gold companies would be lower, he said in an interview to CNBC-TV18.
According to him as a result of this move, the company per se would see a volume growth of 25. Moreover, the upcoming festive season in December would also give a fillip to volumes, he added.
Below is the transcript of Yadindra Kumar's interview with Ekta Batra & Anuj Singhal on CNBC-TV18.
Ekta: Can you detail to us how beneficial the scrapping of the 80:20 scheme would be for Thangamayil Jewellery in specific?
A: We got the circular withdrawing the 80:20 scheme on Friday evening around 6:30 pm. We are getting more details today and by tomorrow we will be getting on how it will be introduced through the system in India. It is a very positive move from the government side.
Ekta: How does it change your procurement model?
A: The metal availability was a question for the entire jewellery industry and because of 80:20 scheme it was creating very unhealthy approach of smuggling from neighbouring countries. It is a great relief now because this makes it more transparent. The direct metal availability will be at ease and that itself will give a great thing. The craftsmen that we had employed, we were not able to give job on daily basis because they could carry on work depending on availability of work.
Ekta: Would your procurement cost reduce because of this?
A: Yes definitely. Procurement cost will be coming down greatly, the price itself has come down by 12 percent as compared to last year and today the 22 carat price is quite low but based on this government policy and metal availability things will get better shape.
Ekta: What would this do to your Profit and Loss (P&L), for example in Q3 FY14 would we see an impact of possibly better margins and profits for the company because of this?
A: Yes, in fact volume uptick itself we are expecting a bare minimum increase of 25 percentage in Q3 and considering Christmas and New Year, it maybe even more than that on the volume front.
Thangamayil stock price
On December 01, 2014, at 14:12 hrs Thangamayil Jewellery was quoting at Rs 197.40, up Rs 15.45, or 8.49 percent. The 52-week high of the share was Rs 217.00 and the 52-week low was Rs 105.75.
The latest book value of the company is Rs 111.96 per share. At current value, the price-to-book value of the company was 1.76.
Anda sedang membaca artikel tentang
Eye 25% plus volume growth in Q3: Thangamayli Jewellery
Dengan url
https://kesehatanda.blogspot.com/2014/12/eye-25-plus-volume-growth-in-q3.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Eye 25% plus volume growth in Q3: Thangamayli Jewellery
namun jangan lupa untuk meletakkan link
Eye 25% plus volume growth in Q3: Thangamayli Jewellery
sebagai sumbernya
0 komentar:
Posting Komentar