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Rajesh Exports Ltd

| Annual Report for the Financial Year 2024-25

BULLISH SENTIMENT

Report Source

⬤6th Jan 26

Summary : Rajesh Exports aims for retail expansion and global e-commerce growth, despite market and execution risks.

Annual Report Analysis & Insights

Financial Disclosures

  1. Consolidated Cost of Materials Consumed: Rs. 42,259,396.42 lakhs (2025) vs Rs. 28,001,074.15 lakhs (2024).
  2. Standalone Cost of Materials Consumed: Rs. 681,156.07 lakhs (2025) vs Rs. 535,730.13 lakhs (2024).
  3. Consolidated Employee Benefit Expenses: Rs. 16,632.12 lakhs (2025) vs Rs. 18,253.43 lakhs (2024).
  4. Consolidated Selling, Administrative and Other Expenses: Rs. 17,189.56 lakhs (2025) vs Rs. 15,474.95 lakhs (2024).
  5. Consolidated Finance Costs: Rs. 13,277.87 lakhs (2025) vs Rs. 13,894.79 lakhs (2024).
  6. Consolidated Depreciation and Amortization Expenses: Rs. 4,538.85 lakhs (2025) vs Rs. 6,443.57 lakhs (2024).
  7. Consolidated Undisputed Trade Receivables - considered good (2025): Rs. 228,035.60 lakhs (<6 months), Rs. 3,918.24 lakhs (1-2 years), Rs. 261,321.27 lakhs (>3 years).
  8. Standalone Undisputed Trade Receivables - considered good (2025): Rs. 3,053.31 lakhs (<6 months), Rs. 15.86 lakhs (1-2 years), Rs. 261,322.75 lakhs (>3 years).
  9. Consolidated Revenue from Operations: Rs. 42,309,932.23 lakhs (2025) vs Rs. 28,067,635.07 lakhs (2024).
  10. Standalone Revenue from Operations: Rs. 702,707.17 lakhs (2025) vs Rs. 540,061.06 lakhs (2024).
  11. Consolidated Net cash generated from operating activities: Rs. 773,755.43 lakhs (2025) vs Rs. 13,987.39 lakhs (2024).
  12. Standalone Net cash generated from operating activities: Rs. (904.34) lakhs (2025) vs Rs. 13,132.76 lakhs (2024).
  13. Disputed statutory dues (Service tax, VAT, Income Tax) pending before tribunals/CIT(A).
  14. Management believes cases will be disposed in company's favor.
  15. Consolidated Total Assets: Rs. 2,937,233.88 lakhs (2025) vs Rs. 2,207,179.17 lakhs (2024).
  16. Standalone Total Assets: Rs. 746,614.29 lakhs (2025) vs Rs. 710,793.80 lakhs (2024).
  17. Company is a debt-free company (standalone).
  18. Transactions with subsidiaries include equity investments, loan repayment, rental income.
  19. Remuneration paid to Key Managerial Personnel and Directors.
  20. Both standalone and consolidated financial statements are presented.
  21. Consolidated financials include subsidiaries: REL Singapore Pte Ltd, Global Gold Refineries SA, Valcambi SA, ACC Energy Storage Pvt Limited.

Corporate Overview

  1. Global presence with offices in multiple international locations.
  2. Headquartered in Bengaluru, Karnataka, India.
  3. Large scale and meticulous execution capabilities required for expansion.
  4. Government policy changes regarding gold import and export.
  5. Leading gold refiner and manufacturer of gold products.
  6. Exports products globally, sells in wholesale and retail in India.
  7. Operates own retail showrooms under SHUBH Jewellers brand.
  8. Seamlessly integrated from mining to consumer in jewellery sector.
  9. Positive and confident about future growth and profitability.
  10. Emphasizes increasing retail presence and value-added products.
  11. Wholesale gold jewellery, bullion dealers, and retail customers.
  12. Gold Products Manufacturing & Trading (100% of turnover).
  13. 2 national plants, 1 international plant.
  14. 2 national offices, 2 international offices.
  15. Ambitious expansion plans in retail to increase profitability.

Risk Factors

  1. Execution risk for expansion plans.
  2. Changes in government gold policy.
  3. Market risk (interest, currency, commodity).
  4. Credit risk from trade receivables.

Key Drivers

  1. Expanding retail footprint globally.
  2. Launching new e-commerce platform.
  3. Growing branded jewellery market.
  4. Opportunity in organized gold business.

Auditor’s Report

  1. Unmodified opinion for standalone financial statements.
  2. Unmodified opinion for consolidated financial statements.
  3. Matters of most significance in audit of financial statements.
  4. Consolidated financials for foreign subsidiaries based on management certified statements.

Board Commentary

  1. Reappointment of Mr. Rajesh Mehta as Executive Chairman.
  2. Reappointment of Ms. Asha Mehta as Independent Director.
  3. Board did not recommend dividend for year ended March 31, 2025.
  4. Policy aims for sustainable dividend payout, considering future growth.
  5. Robust Enterprise Risk Management (ERM) framework to identify risks.
  6. Late filings resulted in penalty notices from BSE and NSE.
  7. Ongoing litigation with Canara Bank regarding receivable/payable balances.
  8. Delay in transferring Rs. 21.97 lakhs to IEPF.
  9. No contracts remaining to be executed on capital account.

Corporate Governance

  1. Code of Conduct for Board Members and Senior Management Personnel.
  2. Vigil Mechanism and Whistle Blower Policy for reporting unethical behavior.
  3. Anti-corruption or anti-bribery policy in place.
  4. 60% of the Board comprises Independent Directors (3 out of 5 non-executive directors).
  5. Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee.
  6. Corporate Social Responsibility and Sustainability Committee, Risk Management Committee.
  7. Board evaluation found satisfactory, no observations raised.
  8. Secretarial Audit Report contains no qualifications or adverse remarks.

Management Discussion & Analysis

Future Strategy

  1. Strengthening front-end operations and growing retail presence globally.
  2. Increasing number of showrooms and launching E-commerce platform.

Industry Overview

  1. Huge opportunity to move gold business from unorganized to organized.
  2. Growing consciousness of branded jewellery, increasing purchasing power.
  3. Increasing demand for diamond jewellery in next 10-15 years.

Macroeconomic Outlook

  1. Significant changes in macro-economic environment can affect business.

Operational Focus Areas

  1. Adopting latest technologies to improve productivity and quality.

Performance Drivers

  1. Increasing retail presence to enhance profitability.
  2. Adding more and better value-added products to portfolio.

Risk Control Measures

  1. Robust Enterprise Risk Management (ERM) framework in place.
  2. Credit quality assessment and monitoring for trade receivables.
  3. Hedging foreign exchange transactions with forward contracts.

Critical Risks

  1. Execution risk for ambitious expansion plans.
  2. Changes in government policy regarding gold products.
  3. Market risk: interest rate, currency, commodity price fluctuations.
  4. Credit risk from trade receivables and financial assets.