Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — FY2015 Earnings Presentation
32 slides from Tribhovandas Bhimji Zaveri's earnings presentation, May 14, 2015
Slide 1: Investor presentation Q4 & Full Year FY15 results update
Investor presentation Q4 & Full Year FY15 results update 14th May, 2015
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 Q4 & FY15 Results Update 04 – 12 About Us 14 – 18 Financial & Operational Summary 20 – 22 Annexure 25 – 32
Slide 4: Q4 FY15 results update: profit analysis
q4 fy15 results update profit analysis (rs mn) 14.9% 14.0% Sales 4.0% 4,453 4,630 7.2% EBITDA * 7.1% 6.5% PAT ** 58.0% 2.6% 4.0% 323 117 300 185 Q4 FY14 Q4 FY15 Sales EBITDA * PAT ** Gross Margin EBITDA Margin PAT Margin operational efficiency (%) Q4 FY15 2.6% 1.9% 1.4% 2.7% Q4 FY14 2.3% 1.3% 1.1% 2
Slide 5: Q4 FY15 results update: revenue analysis
q4 fy15 results update revenue analysis (rs mn) 33.1% 29.6% 10.0% 9.7% 3,461 3,526 873 986 Q4 FY14 Q4 FY15 Gold Sales Diamond Sales Gold GM Diamond GM average ticket size (rs) Q4 FY15 Gold Diamond 134,755 124,165 % of Sales – Q4 FY15 76.2% 21.3% 95,052 91,664 % of Sales – Q4 FY14 77.7% 19.6% Sales G
Slide 6: FY15 results update: profit analysis
fy15 results update profit analysis (rs mn) 17.0% 19,342 18,181 13.8% Sales 6.4% 7.3% EBITDA * 37.7% 4.3% PAT ** 52.7% 3.0% 1.3% 1,327 551 827 260 FY14 FY15 Sales EBITDA * PAT ** Gross Margin EBITDA Margin PAT Margin operational efficiency (%) FY15 2.9% 3.3% 1.3% 2.5% FY14 3.4% 2.4% 1.2% 2.6% Salari
Slide 7: FY15 results update: revenue analysis
fy15 results update revenue analysis (rs mn) 33.6% 29.5% 12.2% 9.2% 14,045 14,566 3,770 4,335 FY14 FY15 Gold Sales Diamond Sales Gold GM Diamond GM average ticket size (rs) FY15 Gold Diamond 139,446 131,028 % of Sales – FY15 75.3% 22.4% 83,922 84,995 % of Sales – FY14 77.2% 20.7% Sales Growth % 3.7%
Slide 8: Balance sheet update
balance sheet update inventory breakup (%) 6.6% 6.0% 21.0% 40.1% 42.9% 51.0% 79.0% 53.3% 51.1% 49.0% FY14 FY15 FY14 FY15 Others Diamond Gold Gold on Loan Own Gold leverage (rs mn) 1.1 1.1 1.2 1 1 5,123 5,462 4,952 4,827 5,031 4,476 4,440 4,477 4,554 4,656 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Equity Ne
Slide 9: Business scenario
business scenario Q4 FY15 witnessed sustained momentum in sales - Onset of wedding season from November 2014 helped maintain healthy sales at TBZ stores. Improved YoY performance on auspicious occasions. Improved business performance going forward driven by positive regulatory, industry and
Slide 10: Key result takeaways
key result takeaways Q4 FY15 sales grew 4.0% YoY driven by higher footfalls (up 8.2%) partially offset by lower average ticket size (down 3.9%). Gold : Diamond mix improved from 77.7 : 19.6 in Q4 FY14 to 76.2 : 21.3 in Q4 FY15. Marginal decline in gross margin in Q4 FY15 due to tactical discou
Slide 11: Results update – Mar 2015
results update – mar 2015 particulars (in mn) Q4 Q4 Q3 YoY QoQ FY15 FY14 YoY (Quarterly FY15 FY14 FY15 % % (₹) (₹) % unaudited) (₹) (₹) (₹) Revenues 4,630 4,453 4.0% 6,125 -24.4% 19,342 18,181 6.4% COGS 3,983 3,788 5.1% 5,241 -24.0% 16,664 15,096 10.4% Gross Profit 647 664 -2.7% 884 -26.9% 2,678 3,0
Slide 12: Results update – Mar 2015: balance sheet
results update – mar 2015 particulars (in mn) MAR-15 DEC-14 SEP-14 JUN-14 MAR-14 (Quarterly (₹) (₹) (₹) (₹) (₹) unaudited) Shareholders Funds 4,656 4,554 4,477 4,440 4,476 Loan Funds 5,787 5,568 5,654 5,500 5,680 Other Long Term Liabilities 27 49 47 45 63 Sources of Funds 10,470 10,172 10,178 9,985
Slide 13: Discussion summary
discussion summary Q4 & FY15 Results Update 04 – 12 About Us 14 – 18 Financial & Operational Summary 20 – 22 Annexure 25 – 32
Slide 14: 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 ₹ 254 k per sq ft per annum (at guarantee in 1938 mature stores) Professional organisation High footfalls conversion - 79% spearheaded by 5
Slide 15: About us: key milestones
about us: key milestones Strong legacy of around 150 years build on trust Flagship store Introduced 100% Diamond facility Recommended opened in Zaveri pre-hallmarked expansion - ~6k special dividend Bazaar, Mumbai jewellery to ~24k sq ft of 7.5% on the special occasion First to launch Turnover cross
Slide 16: About us: shareholding structure
about us: shareholding structure shareholding pattern – mar 2015 public 16.12% 9.75% institutional promoters 74.13% Key institutional investors % Holding Smallcap World Fund INC 6.50% HSBC Global Investments 3.76% Goldman Sachs India Fund 1.48% 16
Slide 17: About us: retail presence
about us: retail presence Present across 22 cities Pan-india presence with 28 stores in 10 states with a retail space of ~91,000 sq ft. spread across 22 cities in 10 states. Number of Stores Till date Large Format 22 Small Format 6 Tier I 17 Tier II 4 Metros 7 Total Stores 28 Total Area ~91,000 17
Slide 18: About us: retail footprint expansion
about us: retail footprint expansion High Sales productivity (revenue / year / sq ft) ₹ 301 91,058 88,093 ₹ 270 82,368 ₹ 255 ₹ 214 ₹ 216 ** 44,196 47,796 27 28 25 14 14 FY11 FY12 FY13 FY14 FY15 Carpet Area (sq ft) No. of Retail Outlets Revenue / average sqft * (₹ ’000 / sq ft) * Average of retail ar
Slide 19: Discussion summary
discussion summary Q4 & FY15 Results Update 04 – 12 About Us 14 – 18 Financial & Operational Summary 20 – 22 Annexure 25 – 32
Slide 20: Financial summary
financial summary revenues (rs mn) ebitda (rs mn) pat (rs mn) 1,476 CAGR - 13% 1327 850 19,342 1,221 18,243 16,583 13,855 888 572 551 11,939 827 392 260 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 margins (%) leverage & return metrics 45.1 42.9 18.8 29.8 17.5 16.9 15.7
Slide 21: Operational summary
operational summary gold & diamond volumes gold & diamond sales mix (%) 51,995 53,220 52,010 48,662 75% 77% 75% 73% 72% 43,808 4,706 4,361 4,110 3,654 3,710 22% 25% 23% 22% 21% FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Gold Sales (Kgs) Diamond Sales (cts) Gold Diamond gold & diamond margins
Slide 22: Operational summary
operational summary sssg - total (%) sssg - gold (%) sssg - diamond (%) 31.3 34.2 29.6 31.2 -5.1% 11.2 13.0 excl. coins 9.0 4.0 3.5 1.3 -0.2 -8.6 -9.9 -9.3 -15.8 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 average ticket size (rs ‘000) footfalls & conversion 141 87% 86
Slide 23: 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 24: Annexure
annexure
Slide 25: Awards & recognition
awards & recognition “Asia’s most promising brands – 2014 ” World Consulting & Research Corporation (WCRC) - 2014 “Best jewellery company award” Gems & Jewellery Trade Council of India Excellence Awards - 2014 “Best diamond jewellery & bracelet design” Indian Jeweller Jeweller’s Choice Design
Slide 26: Business model: product
business model: product Wedding (65%) Gold Gross Margins – 11% (75%) Stock Turns – 2.5x - 3x Fashion (35%) Wedding (40%) Diamonds Gross Margins – 35% (25%) Stock Turns – 1x Fashion (60%) Wedding sales to drive strong volumes Wedding & fashion sales to drive future growth 26
Slide 27: 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 28: 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 29: 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 30: 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 31: 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
Slide 32: Gold metal loan: efficient sourcing channel
gold metal loan : efficient 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 wor
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