Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q1 FY23 Earnings Presentation
23 slides from Tribhovandas Bhimji Zaveri's earnings presentation, Aug 3, 2022
Slide 1: Exchange cover letter for investor presentation
Date: 3rc1 August, 2022 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, Sandra (East), Mumbai- 4
Slide 2: Investor Presentation Q1 FY23 Results
INVESTOR PRESENTATION Q1 FY23 RESULTS August 2022
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 • Q1 FY23 Results Update • About Us • Business Model
Slide 5: Q1 FY23 Result Highlights
Q1 FY23 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 187 3.2% 29 0.5% 10.4% 12.0% 5799 Q1 FY23 Q1 FY22 1,937 -0.4% Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 -8 -4.7% -91 EBITDA EBITDA Margin PAT PAT Margin OPERATING COSTS (% of Total Revenue) Other highlig
Slide 6: Q1 & FY23 Balance Sheet Update
Q1 & FY23 BALANCE SHEET UPDATE In Rs Mn LEVERAGE ANALYSIS TOTAL DEBT BREAKUP 0.95 5,350 5,378 5,089 4,833 5,089 2,509 0.90 2,088 4,833 2,580 2,745 Mar-22 Jun-22 Mar-22 Jun-22 Equity Net Debt Net Debt/Equity Working Capital Debt Gold on Loan Notes: 1. Net debt reduced by 255.8 mn from Q4 FY 22 to Q1
Slide 7: Q1 FY23 - Key Result Takeaways
Q1 FY23 - KEY RESULT TAKEAWAYS REVENUE & MARGIN: • Revenue in Q1 FY23 was up by 199% YoY, on account of higher footfalls and consistent conversion. The results - mark the return to pre-COVID business levels. • Gross margins were marginally impacted due to gold price volatility, however, better opera
Slide 8: Q1 FY23 - Profit & Loss Statement
Q1 FY23 - PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q1 FY23 Q1 FY22 YoY % FY22 FY21 YoY % Net Revenues 5,799 1,937 199.43% 18,438 13,420 37.4% COGS 5,194 1,705 204.63% 16,466 11,283 45.9% Gross Profit 605 232 161.43% 1,973 2,137 -7.7% Gross Margin (%) 10.4% 12% -1300bps 10.7% 15.9% -523 bps Per
Slide 9: Q1 FY23 - Balance Sheet Statement
Q1 FY23 - BALANCE SHEET STATEMENT Particulars (In Rs Mn) June-22 March-22 December-21 September-21 June-21 Shareholders Funds 5,378 5,350 5,317 5,146 5,246 Loan Funds 4,833 5,089 4,076 4,076 3,452 Gold on Loan 2,088 2,509 2,051 2,005 1,796 Working Capital Loan 2,745 2,580 2,025 2,071 1,656 Lease lia
Slide 10: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER • PAN India campaign for Akshaya Tritiya on Gold and Diamond Jewellery ( upto 50% off on making charges of Gold & Diamond Jewellery) with the theme of showcasing Indian brides of different cultures. • Bridal campaign with Aabha bridal Jewellery was carried ti
Slide 11: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER 10
Slide 12: Discussion Summary
DISCUSSION SUMMARY • Q1 FY23 Results Update • About Us • Business Model
Slide 13: Why Is TBZ Different?
WHY IS TBZ DIFFERENT ? Pedigree Strong Brand Value • 157+ years in jewellery business • First jeweller to offer buyback guarantee in • Healthy sales productivity 1938 • High footfalls conversion • Professional organisation spearheaded by 5th generation of the family Scalability & Reach Specialty Wed
Slide 14: 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 15: Retail Presence
RETAIL PRESENCE PAN-INDIA PRESENCE WITH 31 STORES WITH A RETAIL SPACE OF ~100,000+ SQ. FT. SPREAD ACROSS Present across 25 cities 25 CITIES IN 12 STATES in 12 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 14
Slide 16: Discussion Summary
DISCUSSION SUMMARY • Q1 FY23 Results Update • About Us • Business Model
Slide 17: Business Model: Manufacturing (Gold)
BUSINESS MODEL: MANUFACTURING Gold •Raw Material - Bullion PROCUREMENT 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 18: 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 • The facility also has a size
Slide 19: 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 STORE LARGE FORMAT STORE STORE • > 2,000 sq ft • Standalone high street
Slide 20: 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 21: 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 22: CSR Initiatives – Project Pankhi
CSR INITIATIVES – PROJECT PANKHI A Project initiated by TBZ to provide Counselling & Skill Development to women impacted by Domestic Violence • Counsellors engaged in 15 different community settings in Mumbai, Vadodara, Ahmedabad, Pune, Kochi, Patna, Delhi and Hyderabad • 831 cases reported • 447 Ca
Slide 23: Contact details
Mukesh Sharma Sandhya Sutodia / Chintan Chief Financial Officer Mehta IR Consultant Tribhovandas Bhimji Zaveri Limited Dickenson +91 022 30735000 +91 8981592855 /9892183389 mukesh.sharma@tbzoriginal.com tbz@dickensonworld.om 22
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