Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q2 FY23 Earnings Presentation
24 slides from Tribhovandas Bhimji Zaveri's earnings presentation, November 2022
Slide 1: Investor Presentation Q2 FY23 Results
INVESTOR PRESENTATION Q2 FY23 RESULTS
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 • Q2 & H1FY23 Results Update • About Us • Business Model
Slide 4: Q2 FY23 Result Highlights
Q2 FY23 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 10.8% 11.0% 5,368 4.5% 4.2% 4,559 1.5% 1.0% 206 228 66 56 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Revenues Gross Margin EBITDA EBITDA Margin PAT PAT Margin OPERATING COSTS (% of Total R
Slide 5: H1 FY23 Result Highlights
H1 FY23 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 11.2% 10.7% 0.8% 11,167 3.1% 3.7% 6,495 414 -0.4% 198 H1 FY22 H1 FY23 85 H1 FY22 H1 FY23 H1 FY22 H1 FY23 -25 Revenues Gross Margin EBITDA EBITDA Margin OPERATING COSTS (% of Total Revenue) Othe
Slide 6: Q2 & FY23 Balance Sheet Update
Q2 & FY23 BALANCE SHEET UPDATE In Rs Mn LEVERAGE ANALYSIS TOTAL DEBT BREAKUP 0.95 0.92 5,089 4,932 2,780 2,580 2,509 2,154 5,350 5,089 5,363 4,932 Mar-22 Sep-22 Mar-22 Sep-22 Equity Net Debt Net Debt/Equity Working Capital Debt Gold on Loan Notes: 1. Net debt reduced from 5,089 mn in Mar-22 to Rs. 4
Slide 7: Q2 FY23 - Key Result Takeaways
Q2 FY23 - KEY RESULT TAKEAWAYS REVENUE & MARGIN: • Revenue in Q2FY23 was up by 17.8% YoY, on account of higher footfalls and consistent conversion. • Gross margins also improved marginally and stood at 11% in Q2FY23. • EBITDA stood at ₹228 mn during Q2FY23, up from ₹ 206 mn in Q2FY22. • Aggressive a
Slide 8: Q2 & H1FY23 - Profit & Loss Statement
Q2 & H1FY23 - PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q2FY23 Q2FY22 YoY % H1FY23 HIFY22 YoY % Net Revenues 5,368 4,559 17.7% 11,167 6,495 71.9% COGS 4,780 4,064 17.6% 9,974 5,769 72.9% Gross Profit 588 495 18.9% 1,193 726 64.4% Gross Margin (%) 11.0% 10.8% 11 bps 10.7% 11.2% -49 bps Personnel
Slide 9: Q2 FY23 - Balance Sheet Statement
Q2 FY23 - BALANCE SHEET STATEMENT Particulars (In Rs Mn) September-22 June-22 March-22 December-21 September-21 Shareholders Funds 5,363 5,378 5,350 5,317 5,146 Loan Funds 4,932 4,833 5,089 4,076 4,076 Gold on Loan 2155 2,088 2,509 2,051 2,005 Working Capital Loan 2777 2,745 2,580 2,025 2,071 Lease
Slide 10: New Store Launch in Kalyan
NEW STORE LAUNCH IN KALYAN 10
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. • Pan-India campaigns for blocking the gold rate and redeeming during
Slide 12: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER 12
Slide 13: Discussion Summary
DISCUSSION SUMMARY • Q2 FY23 Results Update • About Us • Business Model
Slide 14: Why is TBZ Different?
WHY IS TBZ DIFFERENT ? Pedigree Strong Brand Value • 157+ 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 • Q2 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: 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, Mumbai • The facility also has a size
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: 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 gold • The contract for gold lease is 180 days. jewellery. • TBZ provides a bank guarantee worth
Slide 22: 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 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 • 831 cases reported • 447 Ca
Slide 24: Contact details
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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