Fri, 12 Aug 2022

Mumbai (Maharashtra) [India], December 9 (ANI/NewsVoir): HK Jewels Pvt Ltd (HKJ) announced that CARE Rating agency revised the outlook from negative to positive citing improvement in financial risk profile in FY2021 and strong improvement in sales in H1FY2022 due to faster demand recovery in diamond consuming countries.

In domestic market, HKJ sells diamond studded gold jewellery under the brand name 'KISNA'. HKJ has off-line presence through 6250 jewellery outlets as well as online retailing. In H1FY2022, HKJ achieved 70 per cent of its FY2021 total operating income. Also, the company recently launched plain gold jewellery under the brand name 'Orokraft' and hence, the H1FY2022 financial numbers may not be comparable with H1FY2021.

The reaffirmation of long term and short-term ratings and an upward revision in the outlook to 'positive' factors improvement in financial risk profile for FY21 and strong improvement in sales during H1FY22 (referring to period from April 1 to September 30, 2021), as a group and is supported by faster than expected recovery in export orders from major diamond consuming countries, price over volume strategy adopted by miners resulting in demand-supply balance and improved scale of operations. The rating also factors in well-established and experienced promoters, healthy export sales supported by established international marketing setup through affiliates and longstanding relationship with customers.

No major long term repayment obligations, financial support from promoters and near full utilisation of bank lines resulted inadequate liquidity position for the group. Additional short-term loans from promotersrelated parties amounting to Rs. 102 Cr. as on FY2021 was largely in HKJ.

The CARE rating agency expects strong growth in scale of operations along with improvement in PBILDT margins on the back of strong demand for the group as a whole. Since most of the working capital is locked in inventory, the liquidity position of the group remains adequate. The group comprises Hari Krishna Exports Private Limited (HKEPL), H.K Designs (India) LLP (HKD), and H.K Jewels Private Limited (HKJ).

This story is provided by NewsVoir. ANI will not be responsible in any way for the content of this article. (ANI/NewsVoir)

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