Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q1 FY18 Earnings Presentation
27 slides from Tribhovandas Bhimji Zaveri's earnings presentation, August 2017
Slide 1: Investor Presentation Q1 FY18 Results Update
INVESTOR PRESENTATION Q1 FY18 RESULTS UPDATE August 2017
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: Discussion Summary
DISCUSSION SUMMARY ❖ Q1 FY18 Results Update ❖ About Us ❖ Operational Summary ❖ Annexure
Slide 4: Key Highlights
KEY HIGHLIGHTS ✓ Q1 FY18 Revenues grew by 38% YoY to ₹ 4,483 Mn ✓ Q1 FY18 EBITDA grew by 11% YoY to ₹ 197 Mn ✓ Q1 FY18 Finance Cost declined by 28% YoY from ₹ 141 Mn to ₹ 102 Mn ✓ Q1 FY18 PBT grew by 294% YoY to ₹ 88 Mn ✓ Q1 FY18 PAT grew by 160% YoY to ₹ 58 Mn ✓ Opened 4th franchise store in Jamnag
Slide 5: Q1 FY18 Results Update
Q1 FY18 RESULTS UPDATE In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN PBT & PBT MARGIN 17.4% 14.8% 5.5% 2.0% 4.4% 4,483 88 3,245 177 197 0.7% 38 % 11 % 22 294 % Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Revenues Gross Margin EBITDA EBITDA Margin PBT PBT Margin PAT & PAT MARGIN OPERATI
Slide 6: Q1 FY18 Results Update: Revenue Analysis
Q1 FY18 RESULTS UPDATE In Rs Mn REVENUE ANALYSIS 14.7% 30.7% 8.9% 28.4% 1,227 3,136 777 2,366 33 % 58 % Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Gold Sales Gold GM Diamond Sales Diamond GM AVERAGE TICKET PRICE Q1 FY18 Gold Diamond 1,40,735 % of Sales – Q1 FY18 70.0% 27.4% 1,35,849 83,805 86,776 % of Sales –
Slide 7: Balance Sheet Update
BALANCE SHEET UPDATE INVENTORY BREAKUP (%) 8.2% 7.5% 37.8% 37.4% 59.0% 59.3% 54.0% 55.1% 41.0% 40.8% Mar-17 Jun-17 Mar-17 Jun-17 Gold Diamond Others Own Gold Gold on Loan LEVERAGE (RS MN) * 1.5 1.4 1.1 1.1 1.1 6,462 6,405 4,449 5,031 5,170 5,091 4,492 4,553 4,610 4,739 Jun-16 Sep-16 Dec-16 Mar-17 Ju
Slide 8: Key Result Takeaways
KEY RESULT TAKEAWAYS REVENUES: MARGINS: ❖ Q1 FY18 revenues increased by 38% YoY driven by – ❖ Q1 FY18 gross margin declined to 14.8% compared to ❖ Strong jewellery demand backed by the 17.4% in Q1 FY17. This was primarily on account of extended wedding season. tactical offers given to customers to d
Slide 9: Results Update – June 2017 (Ind AS)
RESULTS UPDATE – JUNE 2017 (IND AS) PARTICULARS (IN MN) – IND AS Q1 FY18 Q1 FY17 YoY % (QUARTERLY UNAUDITED) (₹) (₹) Revenue From Operations 4,483 3,245 38.1% COGS 3,818 2,679 42.5% Gross Profit 665 566 17.6% Gross Margin (%) 14.8% 17.4% -259 bps Excise Duty on Sale of Goods 43 9 365.5% Personnel Ex
Slide 10: Results Update – June 2017 (Ind AS)
RESULTS UPDATE – JUNE 2017 (IND AS) PARTICULARS (IN MN) JUNE-17 (QUARTERLY UNAUDITED) (₹) Shareholders Funds 4,739 Loan Funds 5,511 Other Long Term Liabilities 57 Sources of Funds 10,307 Net Block 1,021 Other Long Term Assets 233 Inventory 10,293 Debtors 84 Cash and Bank Balance 420 Other Current As
Slide 11: Discussion Summary
DISCUSSION SUMMARY ❖ Q1 FY18 Results Update ❖ About Us ❖ Operational Summary ❖ Annexure
Slide 12: About Us: Why Is TBZ Different?
ABOUT US: WHY IS TBZ DIFFERENT ? Pedigree Strong Brand Value ❖ 150+ years in jewellery business ❖ Healthy sales productivity ❖ First jeweller to offer buyback ❖ High footfalls conversion - 80% guarantee in 1938 ❖ High ticket size - Gold - ₹ 86 k, ❖ Professional organisation Diamond - ₹ 140 k spearhe
Slide 13: About Us: Key Milestones
ABOUT US: KEY MILESTONES STRONG LEGACY OF MORE THAN 150 YEARS BUILT ON TRUST Retail footprint Flagship store Introduced 100% Diamond facility crosses 84k sq ft Second opened in Zaveri pre-hallmarked expansion - ~6k First across 20 cities Franchise Store Bazaar, Mumbai jewellery to ~24k sq ft Franchi
Slide 14: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE SHAREHOLDING PATTERN – JUNE 2017 PUBLIC, 22.5% DII, 0.1% FII, 3.3% PROMOTER, 74.1% 14
Slide 15: About Us: Retail Presence
ABOUT US: RETAIL PRESENCE Present across 26 cities PAN-INDIA PRESENCE WITH 33 STORES WITH A in 11 states RETAIL SPACE OF ~1,08,948 SQ. FT. SPREAD ACROSS 26 CITIES IN 11 STATES NUMBER OF STORES TILL DATE Large Format 28 Small Format 5 Patna Total Stores 33 Jamnagar Ranchi Total Area ~1,08,948 Bandra
Slide 16: About Us: Retail Footprint Expansion
ABOUT US: RETAIL FOOTPRINT EXPANSION SALES PRODUCTIVITY (REVENUE / YEAR / SQ FT) 1,08,948 1,02,930 98,200 88,093 91,058 82,368 ₹ 255 ₹ 214 ₹ 216 ₹ 175 * * ₹ 175 ₹ 170 30 32 33 25 27 28 FY13 FY14 FY15 FY16 FY17 Q1 FY18 Carpet Area No. of Retail Outlets Revenue/average sqft (₹ '000/sq ft) Sales produc
Slide 17: Discussion Summary
DISCUSSION SUMMARY ❖ Q1 FY18 Results Update ❖ About Us ❖ Operational Summary ❖ Annexure
Slide 18: Operational Summary
OPERATIONAL SUMMARY GOLD & DIAMOND VOLUMES * GOLD & DIAMOND SALES MIX (%) 52,010 48,662 75% 43,808 77% 76% 76% 39,958 40,762 75% 4,361 4,706 4,216 3,738 3,710 23% 21% 22% 22% 22% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Gold Sales (kgs) Diamond Sales (cts) Gold Diamond GOLD & DIAMOND MARGIN
Slide 19: Operational Summary
OPERATIONAL SUMMARY SSSG - TOTAL (%) * SSSG - GOLD (%) * SSSG - DIAMOND (%) * 13.0 4.0 3.5 1.3 1.4 -0.2 -2.1 -5.4 -8.6 -9.9 -9.3 -15.4 -15.8 -16.5 -20.8 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 SSSG: Same store sales value growth AVERAGE TICKET SIZE (RS ‘000) 131 13
Slide 20: Thank You
THANKYOU Saurav Banerjee, CFO Nilesh Dalvi Tribhovandas Bhimji Zaveri Limited Dickenson Seagull IR +91 022 30735000 +91 9819289131 saurav.banerjee@tbzoriginal.com nilesh.dalvi@dickensonir.com
Slide 21: Annexure
ANNEXURE
Slide 22: Awards & Recognition
AWARDS & RECOGNITION ❖ “BEST RING DESIGN OVER Rs. 2,50,000” JJS-IJ Jewellers Choice Design Awards - 2016 ❖ “TV CAMPAIGN OF THE YEAR” 12th Gemfields Retail Jeweller India Awards - 2016 ❖ “DIAMOND JEWELLERY OF THE YEAR” 12th Gemfields Retail Jeweller India Awards - 2016 ❖ “BEST NECKLACE DESIGN AWARD–
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 ❖ Gold jewellery manufacturing is outsourced. ❖ Vast nation-wide network of 150 vendors ❖
Slide 24: 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, MANUFACTURING Mumbai spread over ~24,
Slide 25: Business Model: Retail
BUSINESS MODEL: RETAIL EFFICIENT INVENTORY MANAGEMENT HUB & SPOKE MODEL - ROI OPTIMISATION SMALL STORES SMALL ❖ 1,000 - 2,000 sq ft STORE ❖ Across the city ❖ Smaller range ❖ Lower price points (up to ₹ 500k) SMALL LARGE FORMAT SMALL LARGE STORES STORE STORE STORE ❖ > 2,000 sq ft ❖ Standalone high st
Slide 26: Business Model: Scalability
BUSINESS MODEL: SCALABILITY ❖ TBZ has an expansion plan to increase its retail space from ~1,08,948 sq. ft. at present to around 150,000 sq. ft. over near term. ❖ TBZ plans to carry out 75% of the expansion through the franchisee route and balance 25% through the addition of its own stores. ❖ All th
Slide 27: 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
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