Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q3 FY22 Earnings Presentation
26 slides from Tribhovandas Bhimji Zaveri's earnings presentation, Feb 4, 2022
Slide 1: Exchange filing cover letter
Date: 4th February, 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, Bandra (East), Mumbai-
Slide 2: Investor Presentation Q3 & 9M FY22 Results
INVESTOR PRESENTATION Q3 & 9M FY22 RESULTS February 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 • Q3 & 9M FY22 Results Update • About Us • Business Model
Slide 5: Q3 FY22 Result Highlights
Q3 FY22 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA PAT 16.0% 10.9% 4.9% 10.4% 6.3% 2.3% 680 7,628 6,233 395 371 172 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 *OPERATING COSTS (% of Total Revenue) Other highlights Share of Diamond Jewellery – Q3 FY22 (Q3 FY21) 21% (21%) Q3 Increa
Slide 6: 9M FY22 Result Highlights
9M FY22 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA PAT 17.1% 10.8% 10.3% 3.5% 4.0% 1.0% 14,123 9,759 1,006 345 569 147 9M FY21 9M FY22 9M FY21 9M FY22 9M FY21 9M FY22 *OPERATING COSTS (% of Total Revenue) Other highlights Share of Diamond Jewellery – 9M FY22 (9M 21% (22%) FY21) 9M 3.4
Slide 7: Q3 & 9M FY22 Balance Sheet Update
Q3 & 9M FY22 BALANCE SHEET UPDATE In Rs Mn LEVERAGE ANALYSIS TOTAL DEBT BREAKUP 0.63 0.70 4,076 3,732 5,337 5,317 1,874 2,051 3,337 3,705 1,858 2,025 Mar-21 Dec-21 Mar-21 Dec-21 Equity Net Debt Net Debt/Equity Working Capital Debt Gold on Loan Notes: 1. Total net debt has increased due to higher wor
Slide 8: Q3 & 9M FY22 Key Result Takeaways
Q3 & 9M FY22 - KEY RESULT TAKEAWAYS REVENUE & MARGIN: • Revenue stood at Rs.7,628 Mn in Q3 FY22, up by 22.4% YoY. 9M FY22 Revenue stood at Rs.14,123, up by 44.7% YoY. Growth in revenue was led by improved customer sentiments and higher footfalls in the stores. Encouraging festive and wedding season
Slide 9: Q3 & 9M FY22 Profit & Loss Statement
Q3 & 9M FY22 - PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q3 FY22 Q3 FY21 YoY % 9M FY22 9M FY21 YoY % Net Revenues 7,628 6,233 22.4% 14123 9,759 44.7% COGS 6,832 5,236 30.5% 12601 8,094 55.7% Gross Profit 796 997 -20.1% 1,522 1,665 -8.6% Gross Margin (%) 10.4% 16.0% -556bps 10.8% 17.1% -628bps P
Slide 10: Q3 & 9M FY22 Balance Sheet Statement
Q3 & 9M FY22 - BALANCE SHEET STATEMENT Particulars (In Rs Mn) December-21 September-21 June-21 March-21 December-20 Shareholders Funds 5,317 5,146 5,246 5,337 5,255 Loan Funds 4,076 4,076 3,452 3,732 3,330 Gold on Loan 2,051 2,005 1,796 1,874 1,690 Working Capital Loan 2,025 2,071 1,656 1,858 1,640
Slide 11: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER • Flat Rs.451 per gram making charges on all gold jewellery and upto 100% off on making charges of diamond jewellery • 100% exchange value on any old gold jewellery • Launch of Bridal Jewellery starting at just Rs.1.5 lakhs • Special campaigns for Navratri, K
Slide 12: Social Media Campaigns During the Quarter
SOCIAL MEDIA CAMPAIGNS DURING THE QUARTER tbZ· rt' o T RIBHOVANDAS B H IMJI ZAVERI VA .,II KII\."1/\\I KI(, )I,tlll' Prlyonk Siddh<::rth Somyukto Khushi Joshi Sharma Sha nno Hcgdc •* Seasons Season 1 Episodes SEE MORE NOW PLAYING ~;, ,~ 6P!COO, Ol Dark Beginnings Old Flames - New Love 52 E1. 16 jul
Slide 13: Launch of Wedding Jewellery Collection
Launch of Wedding Jewellery Collection tlJZ· A~ B H IMJI ~AVERI TRIBH~.~~....~~I/\\IItl(.ll,t)ll rt' EORIGINAL COM SHOPTBZTH llery Collection Bridal Jewe Book your appointment TBZ - The Original Bridal Jewellers Since 1864 12
Slide 14: Light weight affordable Jewellery Collection
Light weight affordable Jewellery Collection tbZ· rt' o VA T R IBHOVANDAS B H IMJI ZAVERI .,IIKII\."1/\\IKI(,)I,tlll' 13
Slide 15: Discussion Summary
DISCUSSION SUMMARY • Q3 & 9M FY22 Results Update • About Us • Business Model
Slide 16: 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 1938 • High footfalls conversion - 80% • Professional organisation spearheaded by 5th • High ticket size - Gold – Rs 110 k, Diamond genera
Slide 17: 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
Slide 18: Retail Presence
RETAIL PRESENCE PAN-INDIA PRESENCE WITH 31 STORES WITH A RETAIL SPACE OF ~103,336 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 17
Slide 19: Discussion Summary
DISCUSSION SUMMARY • Q2 & H1 FY22 Results Update • About Us • Business Model
Slide 20: Business Model: Manufacturing (Gold)
BUSINESS MODEL: MANUFACTURING Gold PROCUREMENT • Raw Material - Bullion 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 21: 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 22: 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 23: 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 • The contract for gold lease is 180 days. gold jewellery. • TBZ provides a bank guarantee worth
Slide 24: 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 25: 9M FY22 CSR Initiatives – Project Pankhi
9M FY22 CSR INITIATIVES – PROJECT PANKHI A Project initiated by TBZ to provide Counselling & Skill Development to women impacted by Domestic Violence • Counselors engaged in 13 different community settings in Mumbai, Vadodara, Ahmedabad, Pune, Kochi, Patna, Delhi and Hyderabad • More than 1,800 case
Slide 26: Contact details
The original since- 1864-- - TRIBHOVANDAS BHIMJI ZAVERI SIIIHK,\'\T Z,\\'UH CHOI P tDZ· The orignal sioce 1864 T RI BHOVAN DAS B H I MJ I ZAVER I \llRit....\Vf ;r_\\'I.RI CROl l!-' IDICKENSON I Saurav Banerjee Pushpa Mani / Chintan Mehta Chief Financial Officer IR Consultant Tribhovandas Bhimji Zave
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