TBZ posts 5.74 % profit rise

Tribhovandas Bhimji Zaveri (TBZ) Limited 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 per cent. 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, 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.”

Adding he says, “Overall volumes are expected to recover during the second 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 this July. 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.”