Bhimji Zaveri posts Total Income of Rs. 2,835 mn in Q1 FY 2013
Net rises to Rs. 162.69 mn
Hyderabad|India|August'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 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.