Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q3 FY2014 Earnings Presentation
27 slides from Tribhovandas Bhimji Zaveri's earnings presentation, Feb 6, 2014
Slide 1: Third Quarter FY14 Results Update
Third Quarter FY14 Results Update 06th February 2014
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: Outline
Outline About Us 04 - 08 9M & Q3 FY14 Results 09 - 15 Annexure 17 - 27
Slide 4: 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 ₹ 280,000 per sq ft per annum (at guarantee in 1938 mature stores) Professional organisation High footfalls conversion - 80% spearheaded by
Slide 5: About us: key milestones
About us: key milestones Strong legacy of around 150 years build on trust Flagship store Introduced 100% Diamond facility 27th store opened opened in Zaveri pre-hallmarked expansion - ~6k at Udaipur on 9th Bazaar, Mumbai jewellery to ~24k sq ft October 2013 First to launch Turnover crossed Retail fo
Slide 6: About us: shareholding structure
About us: shareholding structure Shareholding pattern – dec 2013 public 15% 11% institutional promoters 74% Key institutional investors % Holding Smallcap World Fund INC 6.17% HSBC Global Investments 4.18% Acacia Partners LP 1.32% 6
Slide 7: About us: retail presence
About us: retail presence Present across 21 cities Expansion is well on track with in 8 states addition of 13 new stores post IPO with a retail space of ~38,000 sq ft. Number of Stores Till date Large Format 21 Small Format 6 Tier I 17 Tier II 3 Metros 7 Total Stores 27 Total Area ~88,000 7
Slide 8: About us: retail footprint expansion
About us: retail footprint expansion High Sales productivity (revenue / year / sq ft) ₹ 301 88,093 ₹ 270 82,368 ₹ 255 ** ₹ 216 *** ₹ 204 ₹ 192 47,796 44,196 44,196 42,526 25 27 13 14 14 14 FY09 FY10 FY11 FY12 FY13 Dec-13 Carpet Area (sq ft) No. of Retail Outlets Revenue / average sqft * (₹ ’000 / sq
Slide 9: Q3 & 9M FY14 business scenario
Q3 & 9m fy14 business scenario Continued overhang of difficult economic conditions Sluggish real GDP growth - 4.8% in Q3 FY14. High fiscal deficit - Apr-Nov deficit reached 94% of the government’s FY14 targeted fiscal deficit. Current account deficit (CAD) improved to 1.2% of GDP primarily d
Slide 10: 9M FY14 financial update
9M fy14 financial update Profit analysis (rs mn) Margin analysis (%) Sales 13.8% GM 100 bps 13,778 12,110 EBITDA 2.0% EM 120 bps 18.6% 17.6% PAT 27.7% PM 190 bps 8.5% 7.3% 5.0% 3.1% 1,025 1,005 600 434 Sales EBITDA PAT Gross Margin EBITDA Margin PAT Margin 9M FY13 9M FY14 9M FY13 9M FY14 Gross margi
Slide 11: 9M FY14 operational update
9M fy14 operational update Total sales (rs mn) Same store sales (rs mn) Total Sales 11.4% 2,568 22% 3,043 gold 17.2% 2,196 gold 10.4% 2,942 24% diamond 3.4% diamond 14.5% 78% 10,683 8,138 7,291 76% 9,118 9M FY13 9M FY14 9M FY13 9M FY14 Gold Diamond Gold Diamond Average ticket size (rs) footfalls & c
Slide 12: Q3 FY14 financial update
Q3 fy14 financial update Profit Analysis (rs mn) Margin Analysis (%) Sales 10.1% GM 150 bps 5,771 5,189 EBITDA 0.1% EM 80 bps 18.5% 17.0% PAT 22.8% PM 60 bps 7.6% 8.4% 4.3% 3.7% 436 436 247 191 Sales EBITDA PAT Gross Margin EBITDA Margin PAT Margin Q3 FY13 Q3 FY14 Q3 FY13 Q3 FY14 Gross margins (%) O
Slide 13: Q3 FY14 operational update
Q3 fy14 operational update Total sales (rs mn) Same store sales (rs mn) Sales 24.0% 1,318 23% 21% gold 7.9% gold 23.1% 1,324 1,097 961 diamond 17.1% diamond 27.1% 4,380 77% 4,423 79% 4,074 3,367 Q3 FY13 Q3 FY14 Q3 FY13 Q3 FY14 Gold Diamond Gold Diamond Average ticket size footfalls & conversion 1,37
Slide 14: Dec-13 balance sheet update
Dec-13 balance sheet update Leverage (rs mn) 1.1 0.9 1.0 0.8 4,689 4,536 4,348 4,311 4,345 4,101 3,822 3,628 FY13 Jun-13 Sep-13 Dec-13 Equity Net Debt Net Debt/Equity 14
Slide 15: 9M & Q3 FY14 results highlights
9M & q3 fy14 results highlights Jewellery demand continued to remain under pressure due to weak consumer sentiments. The jewellery industry witnessed a substantial decline in demand during Q3 FY14. Gold import restrictions continued to constrain the gold supply leading to higher premiums. TBZ,
Slide 16: 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 17: Annexure
annexure
Slide 18: Results update – Dec 2013
Results update – dec 2013 Particulars (in mn) 9M FY14 9M FY13 YoY Q3 FY14 Q3 FY13 YoY Q2 FY14 QoQ (Quarterly unaudited) (₹) (₹) % (₹) (₹) % (₹) % Revenues 13,778 12,110 13.8% 5,189 5,771 -10.1% 3,236 60.4% COGS 11,358 9,855 15.2% 4,232 4,787 -11.6% 2,644 60.1% Gross Profit 2,421 2,255 7.3% 958 984 -
Slide 19: Results update – Dec 2013
Results update – dec 2013 Particulars (in mn) dec-13 sep-13 jun-13 FY13 (Quarterly unaudited) (₹) (₹) (₹) (₹) Shareholders Funds 4,536 4,345 4,311 4,101 Loan Funds 5,018 5,632 4,320 4,140 Other Long Term Liabilities 87 76 126 62 Sources of Funds 9,641 10,053 8,757 8,303 Gross Block 1,189 1,178 1,130
Slide 20: Financial summary
Financial summary Revenues & Margin Analysis Leverage & Return Metrics 7.9% 8.9% 3.5 45.1% 7.1% 42.9% 5.1% 5.6% 5.1% 3.1 3.3% 4.1% 1.9% 1.2% 16,583 28.0% 27.9% 28.5% 34.7% 29.8% 13,855 24.5% Revenues 11,939 2.0 CAGR 25.5% 8,849 17.6% 1.0 6,689 14.9% 1.3 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 F
Slide 21: Awards & recognition
Awards & recognition “Best designer jewellery “ Jaipur Jewellery Show – Jewellers’ Choice Design Awards - 2013 “Best bridal design” Jaipur Jewellery Show – Jewellers’ Choice Design Awards - 2013 “Editor’s choice award – best bridal" Jaipur Jewellery Show – Jewellers’ Choice Design Awards - 201
Slide 22: Business model: product
Business model: product Wedding (50%) Gold Gross Margins – 11% (75%) Stock Turns – 3x - 4 x Fashion (50%) Wedding (40%) ₹ 16,583 mn Diamonds Gross Margins – 35% FY13 (25%) Stock Turns – 1.5 x Fashion (60%) Wedding sales to drive strong volumes Wedding & fashion sales to drive future growth 22
Slide 23: Business model: manufacturing (gold)
Business model: manufacturing Gold Procurement Raw Material - Bullion Sources: Exchange & purchase of old jewellery (26%) Bullion dealers Banks - imported gold Banks - domestic gold (gold deposits) on loan TBZ - gold deposit plan Gold jewellery manufacturing is outsourced. Vast natio
Slide 24: 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 25: 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 26: 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 (₹) 275,000 250,000 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 27: 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
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