Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q4 FY20 Earnings Presentation
34 slides from Tribhovandas Bhimji Zaveri's earnings presentation, Jun 26, 2020
Slide 1: Cover letter to stock exchanges
Date: 26th June, 2020 To, To, The Manager, The Manager, Compliance Department Compliance Department BSE Limited National Stock Exchange of India Limited Corporate Service Department, Exchange Plaza,Plot No. C/1, Phiroze Jeejeebhoy Towers, G Block, Bandra-Kurla Complex, Dalal Street, Mumbai - 400 001
Slide 2: Investor Presentation Q4 & FY20 Results
INVESTOR PRESENTATION Q4 & FY20 RESULTS June 2020
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 • COVID-19 Impact • Q4 & FY20 Results Update • About Us • Operational Summary • Business Model
Slide 5: COVID-19 Impact
COVID-19 Impact • The spread of Novel Corona Virus (commonly referred to as COVID19) across the world and the destruction that it brought about was felt & witnessed in India right from the beginning of March, 2020, compelling the State as well as Central Governments to announce a slew of stringent m
Slide 6: Discussion Summary
DISCUSSION SUMMARY • COVID-19 Impact • Q4 & FY20 Results Update • About Us • Operational Summary • Business Model
Slide 7: Q4 FY20 Result Highlights
Q4 FY20 RESULT HIGHLIGHTS *On comparable basis (before taking into account IND AS 116) Q4 FY 20 EBITDA Margins are 4.8% **The latter half of March’20 and consequently Q4 & FY revenues & earnings were affected by country wide lockdowns as a result of COVID-19 Pandemic In Rs Mn REVENUES & GROSS MARGIN
Slide 8: FY20 Result Highlights
FY20 RESULT HIGHLIGHTS *On comparable basis (before taking into account IND AS 116) Q4 FY 20 EBITDA Margins are 4.8% **The latter half of March’20 and consequently Q4 & FY revenues & earnings were affected by country wide lockdowns as a result of COVID-19 Pandemic In Rs Mn REVENUES & GROSS MARGIN *E
Slide 9: FY20 Estimated COVID-19 Impact on Financials
FY20 ESTIMATED COVID-19 IMPACT ON FINANCIALS Particulars (Rs Mn) Q4FY20 COVID Adjusted Q4FY19 Revenue 3,425 4,415 4,155 EBIDTA 238 376 140 PBT 25 165 15 PAT 40 180 12 Particulars (Rs Mn) FY20 COVID Adjusted FY19 Revenue 18,101 19,000 17,638 EBIDTA 1,116 1,250 738 PBT 289 427 231 PAT 219 325 153 Part
Slide 10: Q4 FY20 Balance Sheet Update
Q4 FY20 BALANCE SHEET UPDATE In Rs Mn LEVERAGE ANALYSIS TOTAL DEBT BREAKUP 1.14 6,054 5,480 1.03 5,657 4,941 4,919 5,068 3,000 3,310 3,054 2,170 Mar-19 Mar-20 Mar-19 Mar-20 Equity Net Debt Net Debt/Equity Working Capital Debt Gold on Loan Notes: 1) Gold on Loan is shown as part of short term borrowi
Slide 11: Q4 FY20 - Key Result Takeaways
Q4 FY20 - KEY RESULT TAKEAWAYS REVENUE & MARGIN: • Nationwide lockdown and loss of share of revenues during festive season such as Gudi- Padwa along with other regional festivals in different parts of the country affected revenues in Q4 FY20 • Gross margin improved from 12.7% in Q4 FY19 to 16.7% in
Slide 12: Impact of IND AS 116
Impact of IND AS 116 IND AS 116 (Accounting for leases) was mandated from 1st April 2019 This Ind-AS has the following impact: 1) On Profit & Loss: Lease Rental expenses is replaced by Depreciation and Interest Expenses. 2) On Balance sheet: The Accounting Standard essentially brings all the leases
Slide 13: Marketing Initiatives During COVID19
MARKETING INITIATIVES DURING COVID19 • During lockdown focus was on Loyal customers and ensuring that they had access to the brand Completely online Kalpvruksha scheme • Post lockdown focus is on Customer safety - Safe to shop at TBZ campaign Use digital media to reach out to new customers • Focus o
Slide 14: Brand Building & Marketing Initiatives
BRAND BUILDING & MARKETING INITIATIVES • TBZ has been making consistent investments in its marketing activities to widen its customer base and promote the brand in India • TBZ launched Bridal collection Riwayat and other collection • TBZ appointed Bollywood actress Sara Ali Khan as its brand ambassa
Slide 15: Launches & Collection
LAUNCHES & COLLECTION DIVYA » (bz The original since 1864 Channel your inner goddess TRINITY » The original since 1864 Three times more breath-taking. ® tz; ince wed TRIBHO ss Bung ZAVERI 14
Slide 16: Jewellery Designs & Collections
JEWELLERY DESIGNS & COLLECTIONS 15
Slide 17: Contemporary Jewellery Designs & Collections
CONTEMPORARY JEWELLERY DESIGNS & COLLECTIONS 16
Slide 18: Contemporary Jewellery Designs & Collections
CONTEMPORARY JEWELLERY DESIGNS & COLLECTIONS 17
Slide 19: Contemporary Jewellery Designs & Collections
CONTEMPORARY JEWELLERY DESIGNS & COLLECTIONS 18
Slide 20: Q4 FY20 - Profit & Loss Statement
Q4 FY20 - PROFIT & LOSS STATEMENT Particulars (In Rs Mn) – Standalone Q4 FY20 Q4 FY19 YoY % FY20 FY19 YOY % Net Revenues* 3,425 4,155 -17.6% 18,101 17,638 2.6% COGS 2,877 3,629 -20.7% 15,565 15,149 2.7% Gross Profit 548 526 4.3% 2,536 2,489 1.9% Gross Margin (%) 16.0% 12.7% 335 bps 14.0% 14.1% -11 b
Slide 21: Q4 & FY20 – Balance Sheet Statement
Q4 & FY20 – BALANCE SHEET STATEMENT Particulars (In Rs Mn) – Standalone March-20 December-19 September -19 June-19 March-19 Shareholders Funds 4,919 4,960 4,821 4,878 4,941 Loan Funds 5,479 5,269 5,558 5,953 6,054 Gold on Loan 3,310 1,890 1,828 2,853 3,000 Working Capital Loan 2,170 3,379 3,730 3,10
Slide 22: Discussion Summary
DISCUSSION SUMMARY • COVID-19 Impact • Q4 & FY20 Results Update • About Us • Operational Summary • Business Model
Slide 23: 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 89 k, Diamond – • Professional organisation spearheaded by Rs 103 k
Slide 24: 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 25: Retail Presence
RETAIL PRESENCE PAN-INDIA PRESENCE WITH 38 STORES WITH A RETAIL SPACE OF ~113,561 SQ. FT. SPREAD ACROSS Present across 27 cities 27 CITIES IN 13 STATES in 13 states NUMBER OF STORES TILL DATE Large Format (> 2,000 sq. ft.) 30 Small Format (<= 2,000 sq. ft.) 8 Total Stores 38 Total Area ~1,13,561 24
Slide 26: Discussion Summary
DISCUSSION SUMMARY • COVID-19 Impact • Q4 & FY20 Results Update • About Us • Operational Summary • Business Model
Slide 27: Operational Summary
OPERATIONAL SUMMARY GOLD & DIAMOND VOLUMES 52,010 45,111 44,913 46,915 39,958 40,762 4,706 4,216 3,931 4,027 3,738 3,650 FY15 FY16 FY17 FY18 FY19 FY20 Gold Sales (kgs) Diamond Sales (cts) SSSG - TOTAL (%) AVERAGE TICKET SIZE (RS ‘000) 147 8 139 122 129 4.0 115 0.1 103 110 85 91 89 73 80 -2.1 -0.4 -9
Slide 28: Discussion Summary
DISCUSSION SUMMARY • COVID-19 Impact • Q4 & FY20 Results Update • About Us • Operational Summary • Business Model
Slide 29: 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 30: 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 31: 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 32: 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 33: 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 34: Contact details
Saurav Banerjee Manasi Bodas / Chintan Mehta Chief Financial Officer IR Consultant Tribhovandas Bhimji Zaveri Limited Dickenson +91 022 30735000 +91 9821043510 /9892183389 saurav.banerjee@tbzoriginal.com tbz@dickensonworld.om 33
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