Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q3 FY2023 Earnings Presentation
25 slides from Tribhovandas Bhimji Zaveri's earnings presentation, Feb 10, 2023
Slide 1: Exchange cover letter for earnings presentation
Date: 101h February, 2023 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, Sandra (East), Mumbai-
Slide 2: Investor Presentation Q3 & 9MFY23 Results
INVESTOR PRESENTATION Q3 & 9MFY23 RESULTS
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 & 9MFY23 Results Update • About Us • Business Model
Slide 5: Q3 FY23 Result Highlights
Q3 FY23 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 10.4% 10.0% 7,628 8,122 4.9% 5.3% 2.3% 2.5% 371 433 199 172 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Revenues Gross Margin EBITDA EBITDA Margin PAT PAT Margin OPERATING COSTS (% of Total
Slide 6: 9M FY23 Result Highlights
9M FY23 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 10.8% 10.4% 4.0% 4.4% 19,289 847 14,122 569 1.0% 1.5% 284 147 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 Revenues Gross Margin EBITDA EBITDA Margin PAT PAT Margin OPERATING COSTS (% of Tot
Slide 7: Q3 & FY23 Balance Sheet Update
Q3 & FY23 BALANCE SHEET UPDATE In Rs Mn LEVERAGE ANALYSIS TOTAL DEBT BREAKUP 0.95 5,089 4,883 0.88 2,580 2,509 2,417 2,465 5,350 5,089 5,564 4,883 Mar-22 Dec-22 Mar-22 Dec-22 Equity Net Debt Net Debt/Equity Working Capital Debt Gold on Loan Notes: 1. Net debt reduced from Rs. 5,089 mn in Mar-22 to R
Slide 8: Q3 FY23 - Key Result Takeaways
Q3 FY23 - KEY RESULT TAKEAWAYS REVENUE & MARGIN: • Revenue in Q3FY23 was up by 6.5% YoY, on account of festive and wedding season sales. • Gross margins stood at 10% in Q3FY23. • EBITDA stood at Rs. 433 mn during Q3FY23, up from Rs. 371 mn in Q3FY22. • Aggressive advertising and marketing campaigns
Slide 9: Q3 & 9MFY23 - Profit & Loss Statement
Q3 & 9MFY23 - PROFIT & LOSS STATEMENT Particular (In Rs Mn) Q3FY23 Q3FY22 YoY% 9MFY23 9MFY22 YoY% Net Revenues 8,122 7,628 6.5% 19,289 14,123 36.6% COGS 7,308 6,832 7.0% 17,282 12,601 37.1% Gross Profit 814 796 2.1% 2,007 1,522 31.8% Gross Margin (%) 10.0% 10.4% -40 bps 10.4% 10.8% -40 bps Personnel
Slide 10: Q3 FY23 - Balance Sheet Statement
Q3 FY23 - BALANCE SHEET STATEMENT Particulars (In Rs Mn) December -22 September-22 June-22 March-22 December-21 Shareholders Funds 5,564 5,363 5,378 5,350 5,317 Loan Funds 4,883 4,932 4,833 5,089 4,076 Gold on Loan 2,509 2155 2,088 2,509 2,051 Working Capital Loan 2,373 2777 2,745 2,580 2,025 Lease
Slide 11: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER • TBZ - The Original tied up with SBI Card during the quarter for the festive offer, where the bank funded cashbacks to customers (up to Rs.5,000 on minimum purchase of Rs.50,000) via SBI • A Sara Ali Khan promotional shoot with her mother, Amrita Singh, was
Slide 12: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER 11
Slide 13: Discussion Summary
DISCUSSION SUMMARY • Q3 FY23 Results Update • About Us • Business Model
Slide 14: Why Is TBZ Different?
WHY IS TBZ DIFFERENT ? Pedigree Strong Brand Value • 158+ years in jewellery business • First jeweller to offer buyback guarantee in • Healthy sales productivity 1938 • High footfalls conversion • Professional organisation spearheaded by 5th generation of the family Scalability & Reach Specialty Wed
Slide 15: 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 16: Retail Presence
RETAIL PRESENCE PAN-INDIA PRESENCE WITH 32 STORES WITH A RETAIL SPACE OF ~100,000+ 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.) 29 Small Format (<= 2,000 sq. ft.) 3 Total Stores 32 Total Area ( sq. ft) ~1
Slide 17: Discussion Summary
DISCUSSION SUMMARY • Q3 FY23 Results Update • About Us • Business Model
Slide 18: Business Model: Manufacturing (Gold)
BUSINESS MODEL: MANUFACTURING Gold • Raw Material - Bullion PROCUREMENT 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 capaci
Slide 19: Business Model: Own Manufacturing (Diamond)
BUSINESS MODEL: OWN 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 • The facility also has a
Slide 20: 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 STORE LARGE FORMAT STORE STORE • > 2,000 sq ft • Standalone high stre
Slide 21: 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 22: Q3 FY23 - Awards
Q3 FY23 - AWARDS CMD of the Company, Mr Shrikant Zaveri, received the ‘Special Contribution to Retail Industry’ award at the ‘Retail Jeweller MD & CEO Awards 2023’. The award was presented at the ‘Retail Jeweller India (RJI)’ function held on 4th January 2023, before an audience of sector leaders an
Slide 23: CSR Initiatives – Project Pankhi
CSR INITIATIVES – Project Pankhi A Project initiated by TBZ to provide Counselling & Skill Development to women impacted by Domestic Violence • Counsellors engaged in 15 different community settings in Mumbai, Vadodara, Ahmedabad, Pune, Kochi, Patna, Delhi and Hyderabad • 1535 cases reported • 447 C
Slide 24: CSR Initiatives – Volunteering project with Pehlay Akshar Foundation
CSR INITIATIVES – Volunteering project with Pehlay Akshar Foundation at BMC school in Gilderlane, Mumbai Central Employees of TBZ enthusiastically contributed by sharing their knowledge, skills and quality time. On 22nd Dec’ 2022, we celebrated Christmas with the BMC school children from Gilderlane
Slide 25: Contact
Shankhini Saha Chintan Mehta Mukesh Sharma IR Consultant Chief Financial Officer Dickenson Tribhovandas Bhimji Zaveri Limited +91 8981592855 /9892183389 +91 022 30735000 tbz@dickensonworld.om mukesh.sharma@tbzoriginal.com 24
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