Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q4 FY21 Earnings Presentation
23 slides from Tribhovandas Bhimji Zaveri's earnings presentation, May 5, 2021
Slide 1: Cover letter to stock exchanges on revised investor presentation
Date: 5th May, 2021 To, To, The Manager, The Manager, Compliance Department, Compliance Department, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, Corporate Service Department, G Block, Bandra-Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East), Mumbai - 400 0
Slide 2: Investor Presentation Q4 & FY21 Results
INVESTOR PRESENTATION Q4 & FY21 RESULTS May 2021
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by Tribhovandas Bhimji Zaveri Limited (“TBZ”) for informational purposes only and does not constitute or form any part of any offer, invitation or recommendation to purchase or subscribe for any securities in any jurisdiction, and no part of it shall fo
Slide 4: Discussion Summary
DISCUSSION SUMMARY • Q4 & FY21 Results Update • About Us • Business Model
Slide 5: Q4 FY21 Result Highlights
Q4 FY21 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA PAT 16.0% 12.9% 6.9% 5.6% 2.4% 1.2% 3,425 3,661 238 204 86 40 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 *OPERATING COSTS (% of Total Revenue) Revenue Analysis Share of Diamond Jewellery – Q4 FY21 21.4% (22%) (Q4FY20) Q4 4.3% 0.9
Slide 6: FY21 Result Highlights
FY21 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA Margin PAT & PAT Margin 14.0% 15.9% 6.2% 9.0% 3.2% 18,101 1,210 1.2% 13,420 1,116 431 219 FY20 FY21 FY20 FY21 FY20 FY21 *OPERATING COSTS (% of Total Revenue) Revenue Analysis Share of Diamond Jewellery – FY21 (FY20) 21.8% (22.7%
Slide 7: Q4 & FY21 Balance Sheet Update
Q4 & FY21 BALANCE SHEET UPDATE In Rs Mn LEVERAGE ANALYSIS TOTAL DEBT BREAKUP 1.03 0.66 5,480 4,919 5,070 5,337 2,170 3,497 3,497 1,874 3,310 1,623 Mar-20 Mar-21 Mar-20 Mar-21 Equity Net Debt Net Debt/Equity Working Capital Debt Gold on Loan Notes: 1. Total debt has seen a reduction of 36% YoY. Of th
Slide 8: Q4 & FY21 - Key Result Takeaways
Q4 & FY21 - KEY RESULT TAKEAWAYS REVENUE & MARGIN: • Company reported 7% YoY growth in Revenue in Q4FY21, however change in product mix & gold price dynamics led to reduction in gross margins for Q4FY21. • Various overheads like Manpower costs and other overheads have shown drastic reduction in FY21
Slide 9: Q4 & FY21 - Profit & Loss Statement
Q4 & FY21 - PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q4 FY21 Q4 FY20 YoY % FY21 FY20 YoY % Net Revenues 3,661 3,425 6.9% 13,420 18,101 -25.9% COGS 3,189 2,877 10.8% 11,283 15,565 -27.5% Gross Profit 472 548 -13.9% 2,137 2,535 -15.7% Gross Margin (%) 12.9% 16.0% -312 bps 15.9% 14.0% 192 bps Per
Slide 10: Q4 & FY21 - Balance Sheet Statement
Q4 & FY21 - BALANCE SHEET STATEMENT Particulars (In Rs Mn) March-21 December-20 September-20 June-20 March-20 Shareholders Funds 5,337 5,255 4,864 4,730 4,919 Loan Funds 3,497 3,330 4,711 5,320 5,480 Gold on Loan 1,874 1,690 940 1,480 2,170 Working Capital Loan 1,623 1,640 3,771 3,840 3,310 Lease li
Slide 11: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER • Introduced Riwayat Bridal campaign along with OLD Gold communication • Bridal Strategic OOH focused on bridal in East, Gujarat and South • Focus on promoting completely online access of Kalpavruksha scheme specifically the Gold Block • Digital campaigns foc
Slide 12: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER 11
Slide 13: Discussion Summary
DISCUSSION SUMMARY • Q4 & FY21 Results Update • About Us • Business Model
Slide 14: Why Is TBZ Different?
WHY IS TBZ DIFFERENT ? Pedigree Strong Brand Value • 150+ years in jewellery business • Healthy sales productivity • First jeweller to offer buyback guarantee in • High footfalls conversion - 80% 1938 • High ticket size - Gold – Rs 110 k, Diamond • Professional organisation spearheaded by – Rs 147 k
Slide 15: Key Milestones
KEY MILESTONES STRONG LEGACY OF MORE THAN 150 YEARS BUILT ON TRUST Retail footprint Flagship store Introduced 100% pre- Diamond facility crosses 84k sq ft 2nd Franchise opened in Zaveri hallmarked jewellery expansion - ~6k to 1st Franchise across 20 cities store opened at Bazaar, Mumbai ~24k sq ft s
Slide 16: Retail Presence
RETAIL PRESENCE PAN-INDIA PRESENCE WITH 31 STORES WITH A RETAIL SPACE OF ~103,336 SQ. FT. SPREAD ACROSS Present across 25 cities 25 CITIES IN 13 STATES in 13 states NUMBER OF STORES TILL DATE Large Format (> 2,000 sq. ft.) 28 Small Format (<= 2,000 sq. ft.) 3 Total Stores 31 Total Area ~1,03,336 15
Slide 17: Discussion Summary
DISCUSSION SUMMARY • Q4 & FY21 Results Update • About Us • Business Model
Slide 18: Business Model: Manufacturing - Gold
BUSINESS MODEL: MANUFACTURING Gold PROCUREMENT • Raw Material - Bullion Sources: • Banks – Gold on loan • Exchange & purchase of old jewellery • Bullion dealers • Gold jewellery manufacturing is outsourced. • Vast nation-wide network of 150 vendors • Each vendor has an annual gold processing capacit
Slide 19: Business Model: Manufacturing - Diamond
BUSINESS MODEL: MANUFACTURING Diamond PROCUREMENT • Raw Material - Cut & polished diamonds Sources: • DTC site holders • In-house diamond jewellery manufacturing leading to exclusive designs, lower costs, and higher margins • Manufacturing facility at Kandivali, Mumbai spread over ~24,000 sq ft with
Slide 20: Business Model: Retail
BUSINESS MODEL: RETAIL EFFICIENT INVENTORY MANAGEMENT HUB & SPOKE MODEL - ROI OPTIMISATION SMALL STORES • <= 2,000 sq ft SMALL • Across the city STORE • Smaller range • Lower price points (up to Rs 500k) SMALL SMALL LARGE STORES LARGE FORMAT STORE STORE STORE • > 2,000 sq ft • Standalone high street
Slide 21: Gold Metal Loan: Efficient Sourcing Channel
GOLD METAL LOAN: EFFICENT SOURCING CHANNEL GOLD METAL LOAN ORIGINATION GOLD METAL LOAN REPAYMENT • TBZ takes 10 kg gold from a bank on lease on day 0. • TBZ repays the gold daily based on actual sales of gold • The contract for gold lease is 180 days. jewellery. • TBZ provides a bank guarantee worth
Slide 22: Awards & Recognition
AWARDS & RECOGNITION • BEST BRACELET DESIGN AWARD AT THE 9TH EDITION OF JJS-IJ JEWELLERS CHOICE DESIGN AWARDS 2019 • “CONTEMPORARY DIAMOND JEWELLERY AWARD” & “TREASURE OF THE OCEAN “ GJC’S NATIONAL JEWELLERY AWARD 2018 • “DIAMOND VIVAH JEWELLERY OF THE YEAR” Retail Jeweller India Awards - 2018 • “IN
Slide 23: Contact details
Saurav Banerjee Forum Avlani / Chintan Mehta Chief Financial Officer IR Consultant Tribhovandas Bhimji Zaveri Limited Dickenson +91 022 30735000 +91 9167782621 /9892183389 saurav.banerjee@tbzoriginal.com tbz@dickensonworld.om 22
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