Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — H1 FY21 Earnings Presentation
24 slides from Tribhovandas Bhimji Zaveri's earnings presentation, November 2020
Slide 1: Investor Presentation Q2 & H1 FY21 Results
INVESTOR PRESENTATION Q2 & H1 FY21 RESULTS November 2020
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 & H1 FY21 Results Update • About Us • Operational Summary • Business Model
Slide 4: Q2 FY21 Result Highlights
Q2 FY21 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA PAT 14.9% 5.2% 21.3% 13.8% 5.5% 142 3,932 409 0.2% 2,732 217 9 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 *OPERATING COSTS (% of Total Revenue) Studded Share Ratio Share of Diamond 25%(24%) - Q2 FY21 (Q2 FY20) Q2 4% 0.9% 1.5% FY2
Slide 5: H1 FY21 Result Highlights
H1 FY21 RESULT HIGHLIGHTS In Rs Mn *REVENUES & GROSS MARGIN EBITDA PAT 14.6% 18.9% 5.8% 9.2% 8,230 474 39 3,526 325 -50 H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 **OPERATING COSTS (% of Total Revenue) Studded Share Ratio Share of Diamond 21%(20%) - H1 FY21 (H1 FY20) H1 7% 0.8% 2.4% FY21 H1 5%
Slide 6: Q2 & H1 FY21 Balance Sheet Update
Q2 & H1 FY21 BALANCE SHEET UPDATE In Rs Mn LEVERAGE ANALYSIS TOTAL DEBT BREAKUP 1.03 5,480 0.89 4,711 4,920 5,070 4,850 4,307 3,310 940 3,771 2,170 Mar-20 Sept-20 Mar-20 Sept-20 Equity Net Debt Net Debt/Equity Working Capital Debt Gold on Loan Notes: Gold on Loan is shown as part of borrowings, whil
Slide 7: Q2 & H1 FY21 - Key Result Takeaways
Q2 & H1 FY21 - KEY RESULT TAKEAWAYS REVENUE & MARGIN: • Despite the overhang of the Pandemic and the lockdown that completely disrupted the 1st Quarter, the company witnessed a very positive response from customers during the 2nd Quarter resulting in an encouraging performance • Gross margin improve
Slide 8: Q2 & H1 FY21 - Profit & Loss Statement
Q2 & H1 FY21 - PROFIT & LOSS STATEMENT Particulars (In Rs Mn) – Standalone Q2 FY21 Q2 FY20 H1 FY21 H1 FY20 Net Revenues 2,732 3,932 3,526 8,230 COGS 2,151 3,387 2,858 7,026 Gross Profit 581 545 668 1,204 Gross Margin (%) 21.3% 13.9% 18.9% 14.6% Personnel Expenses 107 195 230 381 Other Expenses 65 13
Slide 9: Q2 & H1 FY21 - Balance Sheet Statement
Q2 & H1 FY21 - BALANCE SHEET STATEMENT Particulars (In Rs Mn) – Standalone September-20 June-20 March-20 Shareholders Funds 4,864 4,730 4,920 Loan Funds 4,711 5,320 5,480 Gold on Loan 940 1,480 2,170 Working Capital Loan 3,771 3,840 3,310 Lease liability 564 800 880 Other Long -Term Liabilities - 70
Slide 10: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER • Focus on communicating with customers on safety and convenience via:- ➢ Digital brochures ➢ Video shopping ➢ Safe to shop TBZ campaign • Enhanced customer experience by providing completely online access of Kalpavruksha scheme • Conducted various campaigns
Slide 11: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER 11
Slide 12: Discussion Summary
DISCUSSION SUMMARY • Q2 & H1 FY21 Results Update • About Us • Operational Summary • Business Model
Slide 13: 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 • High footfalls conversion - 80% 1938 • High ticket size - Gold – Rs 110 k, Diamond • Professional organisation spearheaded by – Rs 147 k
Slide 14: 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 15: Retail Presence
RETAIL PRESENCE PAN-INDIA PRESENCE WITH 36 STORES WITH A RETAIL SPACE OF ~109,673 SQ. FT. SPREAD ACROSS Present across 27 cities 27 CITIES IN 13 STATES in 13 states NUMBER OF STORES TILL DATE Large Format (> 2,000 sq. ft.) 29 Small Format (<= 2,000 sq. ft.) 7 Total Stores 36 Total Area ~1,09,673 15
Slide 16: Discussion Summary
DISCUSSION SUMMARY • Q2 & H1FY21 Results Update • About Us • Operational Summary • Business Model
Slide 17: Operational Summary
OPERATIONAL SUMMARY GOLD & DIAMOND VOLUMES 52,010 45,111 44,913 46,915 39,958 40,762 4,706 4,216 3,931 4,027 3,738 3,650 FY15 FY16 FY17 FY18 FY19 FY20 Gold Sales (kgs) Diamond Sales (cts) SSSG - TOTAL (%) AVERAGE TICKET SIZE (RS ‘000) 147 8 139 122 129 4.0 115 0.1 103 110 85 91 89 73 80 -2.1 -0.4 -9
Slide 18: Discussion Summary
DISCUSSION SUMMARY • Q2 & H1FY21 Results Update • About Us • Operational Summary • Business Model
Slide 19: 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 20: 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 spread over ~24,000 sq ft with
Slide 21: 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 22: 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 23: 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 24: Contact: Chief Financial Officer and IR Consultant
Saurav Banerjee Manasi Bodas / Chintan Mehta Chief Financial Officer IR Consultant Tribhovandas Bhimji Zaveri Limited Dickenson +91 022 30735000 +91 9821043510 /9892183389 saurav.banerjee@tbzoriginal.com tbz@dickensonworld.om 24
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