Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q1 FY22 Earnings Presentation
23 slides from Tribhovandas Bhimji Zaveri's earnings presentation, Aug 11, 2021
Slide 1: Exchange cover letter for investor presentation
Date: 11th August, 2021 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, Bandra (East), Mumbai - 4
Slide 2: Investor Presentation Q1 FY22 Results
INVESTOR PRESENTATION Q1 FY22 RESULTS August 2021
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 • Q1 FY22 Results Update • About Us • Business Model
Slide 5: Q1 FY22 Result Highlights
Q1 FY22 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA PAT 10.9% 12.0% 1,937 795 -8 -91 -192 -84 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 *OPERATING COSTS (% of Total Revenue) Other highlights Share of Diamond Jewellery – Q1 FY22 (Q1 FY21) 20.4% (14.4%) Q1 Localised lockdowns affec
Slide 6: Q1 FY22 Balance Sheet Update
Q1 FY22 BALANCE SHEET UPDATE In Rs Mn LEVERAGE ANALYSIS TOTAL DEBT BREAKUP 0.66 0.66 3,497 3,452 5,337 5,246 1,874 1,796 3,497 3,452 1,623 1,656 Mar-21 Jun-21 Mar-21 Jun-21 Equity Net Debt Net Debt/Equity Working Capital Debt Gold on Loan Notes: 1. Total net debt has seen a reduction of 29% YoY from
Slide 7: Q1 FY22 Key Result Takeaways
Q1 FY22 - KEY RESULT TAKEAWAYS REVENUE & MARGIN: • Company reported 144% YoY growth in Revenue along with 101 bps expansion in gross margins in Q1 FY22. • Localised lockdown and loss of share of revenues during festive season such as Akshay Tritiya and postponement of weddings affected revenues in Q
Slide 8: Q1 FY22 Profit & Loss Statement
Q1 FY22 - PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q1 FY22 Q1 FY21 YoY % FY21 FY20 YoY % Net Revenues 1937 795 143.7% 13,420 18,101 -25.9% COGS 1705 708 141.0% 11,283 15,565 -27.5% Gross Profit 232 87 166.1% 2,137 2,535 -15.7% Gross Margin (%) 12% 10.9% 101bps 15.9% 14.0% 192 bps Personnel Exp
Slide 9: Q1 FY22 Balance Sheet Statement
Q1 FY22 - BALANCE SHEET STATEMENT Particulars (In Rs Mn) June-21 March-21 December-20 September-20 June-20 Shareholders Funds 5,246 5,337 5,255 4,864 4,730 Loan Funds 3,452 3,497 3,330 4,711 5,320 Gold on Loan 1,796 1,874 1,690 940 1,480 Working Capital Loan 1,656 1,623 1,640 3,771 3,840 Lease liabi
Slide 10: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER • Flat 50% off on making charges of gold and diamond jewellery • Scheme to Pre Book Now and buy Later safely from home • Special campaign for Mothers Day & Fathers Day through various social media platforms • Digital focus to promote • Akshaya Tritiya digital
Slide 11: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER 10
Slide 12: Discussion Summary
DISCUSSION SUMMARY • Q1 FY22 Results Update • About Us • 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 31 STORES WITH A RETAIL SPACE OF ~103,336 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.) 28 Small Format (<= 2,000 sq. ft.) 3 Total Stores 31 Total Area ~1,03,336 14
Slide 16: Discussion Summary
DISCUSSION SUMMARY • Q1 FY22 Results Update • About Us • Business Model
Slide 17: 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 18: 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 19: 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 20: 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 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: CSR Initiatives – Project Pankhi
CSR INITIATIVES – PROJECT PANKHI A Project initiated by TBZ to provide Counselling & Skill Development to women impacted by Domestic Violence • Counselors engaged in 12 different community settings in Mumbai, Vadodara, Ahmedabad, Pune, Kochi, Patna, Delhi and Hyderabad • 515 cases reported • 458 Cal
Slide 23: Contact details
Saurav Banerjee Pushpa Mani / Chintan Mehta Chief Financial Officer IR Consultant Tribhovandas Bhimji Zaveri Limited Dickenson +91 022 30735000 +91 9911684123 /9892183389 saurav.banerjee@tbzoriginal.com tbz@dickensonworld.om 22
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