Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — FY2014 Earnings Presentation
27 slides from Tribhovandas Bhimji Zaveri's earnings presentation, May 21, 2014
Slide 1: Fourth Quarter & Full Year FY14 Results Update
Fourth Quarter & Full Year FY14 Results Update 21th May 2014
Slide 2: 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 3: Outline
Outline About Us 04 - 08 Q4 & FY14 Results 09 - 15 Annexure 17 - 27
Slide 4: About us: why is TBZ different?
About us: why is tbz different ? Pedigree Strong Brand Value 150 years in jewellery business High sales productivity - First jeweller to offer buyback ₹ 250,000 per sq ft per annum (at guarantee in 1938 mature stores) Professional organisation High footfalls conversion - 80% spearheaded by
Slide 5: About us: key milestones
About us: key milestones Strong legacy of around 150 years build on trust Flagship store Introduced 100% Diamond facility 27th store opened opened in Zaveri pre-hallmarked expansion - ~6k at Udaipur on 9th Bazaar, Mumbai jewellery to ~24k sq ft October 2013 First to launch Turnover crossed Retail fo
Slide 6: About us: shareholding structure
About us: shareholding structure Shareholding pattern – mar 2014 public 15% 11% institutional promoters 74% Key institutional investors % Holding Smallcap World Fund INC 6.50% HSBC Global Investments 4.18% Acacia Partners LP 1.32% 6
Slide 7: About us: retail presence
About us: retail presence Present across 21 cities Expansion is well on track with in 8 states addition of 13 new stores post IPO with a retail space of ~38,000 sq ft. Number of Stores Till date Large Format 21 Small Format 6 Tier I 17 Tier II 3 Metros 7 Total Stores 27 Total Area ~88,000 7
Slide 8: About us: retail footprint expansion
About us: retail footprint expansion High Sales productivity (revenue / year / sq ft) ₹ 301 88,093 ₹ 270 82,368 ₹ 255 ** ₹ 214 *** ₹ 204 ₹ 192 47,796 44,196 44,196 42,526 25 27 13 14 14 14 FY09 FY10 FY11 FY12 FY13 FY14 Carpet Area (sq ft) No. of Retail Outlets Revenue / average sqft * (₹ ’000 / sq f
Slide 9: Q4 & FY14 business scenario
Q4 & fy14 business scenario Continued overhang of difficult economic conditions Sluggish real GDP growth - 4.8% in Q3 FY14 (4.9% in Q4 FY14 as per the CSO advance estimate). High fiscal deficit - Apr-Nov deficit reached 94% of the government’s FY14 targeted fiscal deficit. Current account de
Slide 10: FY14 financial update
fy14 financial update Profit analysis (rs mn) Margin analysis (%) 18,243 16,583 18.9% 16.9% 8.9% 7.3% 5.1% 3.0% 1,484 1,327 850 551 Sales EBITDA PAT Gross Margin EBITDA Margin PAT Margin FY13 FY14 FY13 FY14 Gross margins (%) Operational efficiency (%) 35.2% 33.6% FY14 3.4% 2.4% 1.2% 2.6% 13.2% 12.2%
Slide 11: FY14 operational update
fy14 operational update Total sales (rs mn) Same store sales (rs mn) 20.7% 3,770 3,216 3,854 2,708 23.4% 12,418 77.3% 14,045 10,516 9,533 75.3% FY13 FY14 FY13 FY14 Gold Diamond Gold Diamond Average ticket size (rs) footfalls & conversion 1,24,687 1,31,069 77.5% 76.7% 2,55,551 81,322 83,922 2,37,006
Slide 12: Q4 FY14 financial update
Q4 fy14 financial update Profit Analysis (rs mn) Margin Analysis (%) 4,473 4,465 19.4% 14.9% 10.0% 7.2% 5.6% 449 323 2.6% 250 117 Sales EBITDA PAT Gross Margin EBITDA Margin PAT Margin Q4 FY13 Q4 FY14 Q4 FY13 Q4 FY14 Gross margins (%) Operational efficiency (%) 34.3% 33.4% Q4 FY14 2.3% 1.3% 1.1% 2.9
Slide 13: Q4 FY14 operational update
Q4 fy14 operational update Total sales (rs mn) Same store sales (rs mn) 882 21.0% 931 19.6% 873 792 3,415 3,461 3,197 2,986 77.0% 77.7% Q4 FY13 Q4 FY14 Q4 FY13 Q4 FY14 Gold Diamond Gold Diamond Average ticket size footfalls & conversion 1,34,987 1,34,759 78.5% 74.7% 96,793 95,051 62,319 57,434 Gold
Slide 14: Mar-14 balance sheet update
Mar-14 balance sheet update Leverage (rs mn) 1.1 1.1 0.9 1.0 0.8 4,905 4,689 4,536 4,348 4,311 4,345 4,476 4,101 3,822 3,628 FY13 Jun-13 Sep-13 Dec-13 FY14 Equity Net Debt Net Debt/Equity 14
Slide 15: Q4 & FY14 results highlights
Q4 & fy14 results highlights Jewellery demand remained subdued due to weak consumer sentiments. Gold segment sales were primarily impacted due to reduced sale of coins which declined 14% YoY during FY14 and 29% during Q4 FY14. (Share of coins was lower at 9.7% for FY14 and 8.1% for Q4 FY14). F
Slide 16: Thank you
Thank you Prem Hinduja, CEO Nilesh Dalvi Tribhovandas Bhimji Zaveri Limited Dickenson Seagull IR +91 022 30735000 +919819289131 prem.hinduja@tbzoriginal.com nilesh.dalvi@dickensonir.com
Slide 17: Annexure
annexure
Slide 18: Results update – Mar 2014
Results update – mar 2014 Particulars (in mn) FY14 FY13 YoY Q4 FY14 Q4 FY13 YoY Q3 FY14 QoQ (Quarterly unaudited) (₹) (₹) % (₹) (₹) % (₹) % Revenues 18,243 16,583 10.0% 4,465 4,473 -0.2% 5,189 -14.0% COGS 15,159 13,453 12.7% 3,801 3,608 5.4% 4,232 -10.2% Gross Profit 3,085 3,130 -1.5% 664 866 -23.3%
Slide 19: Results update – Mar 2014
Results update – mar 2014 Particulars (in mn) FY14 dec-13 sep-13 jun-13 FY13 (Quarterly unaudited) (₹) (₹) (₹) (₹) (₹) Shareholders Funds 4,476 4,536 4,345 4,311 4,101 Loan Funds 5,634 5,018 5,632 4,320 4,140 Other Long Term Liabilities 63 87 76 126 62 Sources of Funds 10,173 9,641 10,053 8,757 8,30
Slide 20: Financial summary
Financial summary Revenues & Margin Analysis Leverage & Return Metrics 8.8 8.9 7.4 7.3 45.1 42.9 5.5 4.1 5.1 3.3 3.0 1.7 29.8 28.5 18,243 34.7 Revenues 16,583 3.1 27.9 CAGR 20% 13,855 11,939 24.5 14.1 8,849 17.6 2.0 12.8 1.3 1.3 1.0 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 Revenues (Rs Mn)
Slide 21: Awards & recognition
Awards & recognition “Best retail marketing campaign – new age bride” Asia Retail Congress - 2014 “Best use of social media in marketing – band baja bride” Asia Retail Congress - 2014 “Best designer jewellery “ Jaipur Jewellery Show – Jewellers’ Choice Design Awards - 2013 “Best bridal desig
Slide 22: Business model: product
Business model: product Wedding (50%) Gold Gross Margins – 11% (75%) Stock Turns – 3x - 4 x Fashion (50%) Wedding (40%) ₹ 18,243 mn Diamonds Gross Margins – 35% FY14 (25%) Stock Turns – 1.5 x Fashion (60%) Wedding sales to drive strong volumes Wedding & fashion sales to drive future growth 22
Slide 23: Business model: manufacturing (gold)
Business model: manufacturing Gold Procurement Raw Material - Bullion Sources: Exchange & purchase of old jewellery Bullion dealers Banks - imported gold Banks - domestic gold (gold deposits) on loan TBZ - gold deposit plan Gold jewellery manufacturing is outsourced. Vast nation-wide
Slide 24: Business model: manufacturing (diamond)
Business model: manufacturing Diamond Procurement Raw Material - Cut & polished diamonds (VVS grade) Sources: DTC site holders Other vendors In-house diamond jewellery manufacturing leading to exclusive designs, lower costs, and higher margins Manufacturing Manufacturing facility at Kandiv
Slide 25: Business model: retail
Business model: retail Efficient Inventory Management Hub & spoke model - roi optimisation Small Stores 1,000 - 1,500 sq ft Across the city SMALL Smaller range STORE Lower price points (up to ₹ 500k) Inventory - ₹ 93 mn Gold : Diamond - 70 : 30 SMALL LARGE FORMAT SMALL Large Stores STORE S
Slide 26: Business model: economics
Business model: economics Particulars Large Format Small Format Size sq ft Above 3,000 1,000 – 1,500 Average Sales per sq ft in Year 1 (₹) 250,000 250,000 Gold : Diamond 75:25 75:25 Gross Margin - Gold : Diamond 11% : 35% 11% : 35% Blended Gross Margins 17.2% 17.2% Store Costs: Advertising 2.5% 2.5%
Slide 27: Business model: scalability
Business model: scalability TBZ has an aggressive expansion plan of tripling its retail network from 50,000 sq ft in FY12 to around 150,000 sq ft. TBZ has a plan to open 43 new stores (25 large format stores with average space of 3,000 sq ft and 18 small format stores with average space of 1,000
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