Net rises to Rs. 162.69
mn
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 clocked a Net Profit of 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 % 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
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.
For more
information – Contact Aryan Rana, Adfactors PR.-+91.22.67574169
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