TBZ net profit up by Rs 162.69 m

Tribhovandas Bhimji Zaveri (TBZ), 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 per cent 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 per cent 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, Shrikant Zaveri, Chairman and Managing Director, TBZ, 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.”

Adds Zaveri, “Overall volumes are expected to recover during the second half of FY-13. 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 recently. With festivals around the corner, TBZ is unveiling attractive new collections including the recently launched ‘Surprises – Gifting’ collection.” TBZ currently has 15 showrooms in nine cities across five states, covering a total carpet area of approximately 51, 000 sq ft.