Net rises to Rs. 162.69 mn
Mumbai, August 7, 2012: Tribhovandas Bhimji Zaveri (“TBZ”) Limited, a well known and trusted jewellery retailer in India, has posted Total Income (standalone) of Rs. 2,835 million for the quarter ended June 30, 2012. TBZ’s Net Profit was Rs. 162.69 million for Q1 FY 2013 despite a tough economic environment, higher gold prices, jewellers strike and fewer wedding-festive occasions.
The EBITDA for quarter stood at Rs. 295.64 million and the EBITDA margin for Q1 FY 2013 was 10.4% as a percentage of total income even though the industry faced several challenges in the first quarter. TBZ maintained Net Profit margin at 5.74% for the quarter on account of a judicious sales mix of gold and diamond wherein diamond jewellery sales enhanced the margins.
Commenting on the financial performance of the Company, Mr. Shrikant Zaveri, Chairman and Managing Director, Tribhovandas Bhimji Zaveri, said, “In the first quarter following the successful completion of the IPO, our focus was on reinforcing the brand and its premier wedding jewellery positioning. We deployed an interesting sales mix of gold, diamond and fusion jewellery while unveiling exciting new collections such as Dohra collection to entice the customers and increase same store sales. For the first time ever, TBZ opted for a gold loan facility during this quarter as a best-of-breed business practice to help enhance business efficiencies and mitigate the risk of gold price volatility.”
TBZ, which is recognised as a jeweller of choice for wedding occasions, faced several challenges due to bleak industry scenario in Q1 FY 2013, such as lower gold volume due to fewer weddings and festivals during the first quarter. Gudi Padwa, an auspicious day for gold purchase across Maharashtra, was celebrated in the first quarter last year, but happened in Q4 FY 2012 this year. The jewellers’ strike from March 16 to April 6, 2012, during the quarter impacted sales. TBZ capitalised on the trend by focusing on increasing diamond jewellery sales across stores.
According to Mr. Zaveri, overall volumes are expected to recover during the 2nd half of FY13. “TBZ is maintaining the momentum of its retail expansion across key markets in sync with the IPO disclosures. TBZ opened a new showroom at Churchgate, south Mumbai, on 6th July 2012. With festivals around the corner, TBZ Ltd. is unveiling attractive new collections including the recently launched ‘Surprises – Gifting’ collection. And our innovative marketing and promotional initiatives will help us attract more footfalls at retail outlets,” added Mr. Zaveri.
For the year ended March 31, 2012, net profit of TBZ Ltd. was Rs. 571.93 million and total income from operations was Rs. 13,854.70 million
About Tribhovandas Bhimji Zaveri Limited ((www.tbztheoriginal.com)
TBZ Ltd. (BSE: 534369 | NSE: TBZ) has 15 showrooms in nine cities across five states, which have a total carpet area of approximately 51, 000 sq. ft. With a 150-year old track-record of trust, quality and purity of its products, TBZ has won several prestigious awards including the Readers Digest Trusted Brand Asia in the category of Jewellery Shop in 2006, 2007 and 2008. TBZ has received other awards for both products and customer service, including the DTC Best Showroom award in 2004 and 2006, the DTC Best Diamond Moments award in 2005 for customer interactions, the DTC Best Showroom and Sales Person award in 2006 and 2007, the Jaipur Jewellery Show Gold Souk Awards 2007, which honoured TBZ’s contribution to the gem and jewellery industry in India, and the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007 – Council for Fair Business Practices Award.