Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q1 FY2015 Earnings Presentation
25 slides from Tribhovandas Bhimji Zaveri's earnings presentation, Aug 6, 2014
Slide 1: First Quarter FY15 Results Update
First Quarter FY15 Results Update 06th August, 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 Q1 FY15 Results 09 - 13 Annexure 16 - 25
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 ₹ 250,000 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 – june 2014 public 16.43% 9.44% institutional promoters 74.13% Key institutional investors % Holding Smallcap World Fund INC 6.50% HSBC Global Investments 4.05% 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 ** ₹ 214 *** ₹ 204 ₹ 192 47,796 44,196 44,196 42,526 25 27 13 14 14 14 FY09 FY10 FY11 FY12 FY13 FY14 Carpet Area (sq ft) No. of Retail Outlets Revenue / average sqft * (₹ ’000 / sq f
Slide 9: Q1 FY15 business scenario
Q1 fy15 business scenario macroeconomic and business environment Challenging macroeconomic environment marked by slow economic growth, high fiscal deficit, high interest rates, high inflation and weaker currency. Restrictions on movement of goods and cash during April and May, prior to electio
Slide 10: Q1 FY15 financial update
Q1 fy15 financial update Profit Analysis (rs mn) Margin Analysis (%) 5,330 4,324 16.3% 13.2% 7.6% 3.4% 3.9% 405 208 147 5 0.1% Sales EBITDA PAT Gross Margin EBITDA Margin PAT Margin Q1 FY14 Q1 FY15 Q1 FY14 Q1 FY15 Gross margins (%) Operational efficiency (%) 34.1% 32.7% Q1 FY15 3.2% 2.5% 1.4% 2.7% 1
Slide 11: Q1 FY15 operational update
Q1 fy15 operational update Total sales (rs mn) Same store sales (rs mn) 19.0% 1,018 1,018 19.0% 824 808 80.0% 4,250 4,250 79.0% 3,412 3,334 Q1 FY14 Q1 FY15 Q1 FY14 Q1 FY15 Gold Diamond Gold Diamond * Excluding sale of other products Average ticket size footfalls & conversion 1,20,009 1,25,144 77.8%
Slide 12: June-14 balance sheet update
June-14 balance sheet update Leverage (rs mn) 1.1 1.1 1.1 1.0 0.8 4,905 4,782 4,689 4,536 4,348 4,311 4,345 4,476 4,440 3,628 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Equity Net Debt Net Debt/Equity 12
Slide 13: Q1 FY15 results highlights
Q1 fy15 results highlights Q1 FY15 sales declined 18.9% YoY, driven by higher base (Q1 FY14 sales had increased 88.9%). Gold jewellery sales (excluding coins) declined by 14%. Diamond jewellery sales declined by 19%. Jewellery demand remained subdued due to weak consumer sentiments. Further,
Slide 14: 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 15: Annexure
annexure
Slide 16: Results update – June 2014
Results update – june 2014 Particulars (in mn) Q1 FY15 Q1 FY14 YoY Q4 FY14 QoQ (Quarterly unaudited) (₹) (₹) % (₹) % Revenues 4,324 5,330 -18.9% 4,453 -2.9% COGS 3,752 4,459 -15.9% 3,788 -1.0% Gross Profit 571 871 -34.4% 664 -14.0% Gross Margin (%) 13.2% 16.3% 14.9% Personnel Expenses 136 167 -18.1%
Slide 17: Results update – June 2014
Results update – JUNE 2014 Particulars (in mn) JUN-14 MAR-14 (Quarterly unaudited) (₹) (₹) Shareholders Funds 4,440 4,476 Loan Funds 5,455 5,634 Other Long Term Liabilities 45 63 Sources of Funds 9,940 10,173 Gross Block 1,293 1,278 Less: Acc. Depreciation 354 322 Net Block 939 956 Other Long Term A
Slide 18: Financial summary
Financial summary Revenues & Margin Analysis Leverage & Return Metrics 8.8 8.9 7.4 7.3 45.1 42.9 5.5 4.1 5.1 3.3 3.0 1.7 29.8 28.5 18,243 34.7 Revenues 16,583 3.1 27.9 CAGR 20% 13,855 11,939 24.5 14.1 8,849 17.6 2.0 12.8 1.3 1.3 1.0 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 Revenues (Rs Mn)
Slide 19: Awards & recognition
Awards & recognition “Coloured gemstone jewellery of the year” Annual Gemfields & Nazraana Retail Jeweller India Awards - 2014 “360 degree marketing campaign of the year” Annual Gemfields & Nazraana Retail Jeweller India Awards - 2014 “Best retail marketing campaign – new age bride” Asia Retai
Slide 20: Business model: product
Business model: product Wedding (50%) Gold Gross Margins – 11% (75%) Stock Turns – 2.5x - 3x Fashion (50%) Wedding (40%) ₹ 18,243 mn Diamonds Gross Margins – 35% FY14 (25%) Stock Turns – 1x Fashion (60%) Wedding sales to drive strong volumes Wedding & fashion sales to drive future growth 20
Slide 21: 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 22: 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 23: 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 24: 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 25: 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
Tribhovandas Bhimji Zaveri — Q1 FY2015 Earnings Presentation on 6ix