Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q3 FY20 Earnings Presentation
32 slides from Tribhovandas Bhimji Zaveri's earnings presentation, Feb 14, 2020
Slide 1: Exchange cover letter for investor presentation
Date: 14th February, 2020 To, To, The Manager, The Manager, Compliance Department, Compliance Department, National Stock Exchange of India Limited SSE 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 & 9M FY20 Results
INVESTOR PRESENTATION Q3 & 9M FY20 RESULTS FEBRUARY 2020
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 & 9M FY20 Results Update • About Us • Operational Summary • Business Model
Slide 5: Q3 FY20 Result Highlights
Q3 FY20 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN *EBITDA & EBITDA MARGIN PAT & PAT MARGIN 5.1% 6.2% 1.9% 2.2% 13.9% 12.1% 401 140 5,917 6,446 301 111 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 OPERATING COSTS (% of Total Revenue) REVENUE ANALYSIS Total Revenue Growth % 9% - Q3 FY20 Q3
Slide 6: 9M FY20 Result Highlights
9M FY20 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN *EBITDA & EBITDA MARGIN PAT & PAT MARGIN 14.6% 13.5% 4.4% 6.0% 1.0% 1.2% 13,483 14,675 878 180 598 141 9M FY19 9M FY20 9M FY19 9M FY20 9M FY19 9M FY20 OPERATING COSTS (% of Total Revenue) REVENUE ANALYSIS Total Revenue Growth % 9% - 9M FY20
Slide 7: Q3 FY20 Balance Sheet Update
Q3 FY20 BALANCE SHEET UPDATE In Rs Mn LEVERAGE ANALYSIS TOTAL DEBT BREAKUP 1.14 6,054 0.98 5,269 5,657 4,941 4,960 4,855 3,000 1,951 3,054 3,318 Mar-19 Dec-19 Mar-19 Dec-19 Equity Net Debt Net Debt/Equity Working Capital Debt Gold on Loan Notes: 1) Gold on Loan is shown as part of short term borrowi
Slide 8: Q3 FY20 - Key Result Takeaways
Q3 FY20 - KEY RESULT TAKEAWAYS REVENUE & MARGIN: • Revenue for Q3 FY20 Increased by 9% YoY on the back of festive and wedding seasons coupled with various promotional /marketing initiatives taken by the company. • Gross Margin for Q3 FY 20 were lower on account of relatively higher sales mix in favo
Slide 9: Impact of IND AS 116
Impact of IND AS 116 IND AS 116 (Accounting for leases) was mandated from 1st April 2019 This Ind-AS has the following impact: 1) On Profit & Loss: Lease Rental expenses is replaced by Depreciation and Interest Expenses. 2) On Balance sheet: The Accounting Standard essentially brings all the leases
Slide 10: Brand Building & Marketing Initiatives
BRAND BUILDING & MARKETING INITIATIVES • TBZ has been making consistent investments in its marketing activities to widen its customer base and promote the brand in India • TBZ has recently launched Bridal collection Riwayat • Recently TBZ appointed Bollywood actress Sara Ali Khan as new brand ambass
Slide 11: Latest Launches & Collection
LATEST LAUNCHES & COLLECTION t}jZ· rt' o VA TRIBHOVANDAS BHIMJ I Z AV ERI .,IIKII\."1/\\IKI(,)I,tlll' MOHA byt}jZ· The original since 1864 Impress like yo'u breathe, effortlessly. DIVYA ,, t}jZ· Sunshine YELL0 /1 DL!MOi\D JEITELLEJ!Y T1 .JI :e'EM by tOZ· Chnnnel )Olll' inner goddess TOO alginal sinc
Slide 12: Latest Jewellery Designs & Collections
LATEST JEWELLERY DESIGNS & COLLECTIONS tbZ· rt' o T R IBHOVANDAS B H IMJI ZAVERI VA .,IIKIII.\,1/. \\IKI(,II,tlll' NOOR COLLECTION b.Y The original since 1864 TRINITY by tDZ@ Tho orl\) r'OI Sine< 186G PI'\ ICES STA HT I NG FHOM ~go,ooo/- 11
Slide 13: Contemporary Jewellery Designs & Collections
CONTEMPORARY JEWELLERY DESIGNS & COLLECTIONS tbZ· rt' o VA T R IBHOVANDAS B H IMJI ZAVERI .,IIKII\."1/\\IKI(,)I,tlll' EXCU..JSI\'1: GOLD COLLECTIOX --~~-- Ell'gantl) hanclrraft('cl Golci.Je,,ellcr: fill· t'H'I') occasion 12
Slide 14: Contemporary Jewellery Designs & Collections
CONTEMPORARY JEWELLERY DESIGNS & COLLECTIONS tbZ· rt' o T RIBHOVANDAS B H IMJI ZAVERI VA .,IIKIII.\,1/. \\IKI(,II,tlll' PRETTY~THINGS ~ C:omemporar~. innm atiH· .ie" dkr~ 'I"'' ially created f(,r millt•nniaJ, Surprisingly AfTordablc Diamond jewellery 13
Slide 15: Contemporary Jewellery Designs & Collections
CONTEMPORARY JEWELLERY DESIGNS & COLLECTIONS tbZ· rt' o VA T R IBHOVANDAS B HIMJI ZAVERI .,IIKII\."1/\\IKI(,)I,tlll' ~ Riwayat . ~ BRIDAL JEWELLERY range starts from <3 lakhs COLLECTION EXCLUSIVE JEWELLERY PARTNER - GOLD COLLECTION IN STORES ·- + 14
Slide 16: Contemporary Jewellery Designs & Collections
CONTEMPORARY JEWELLERY DESIGNS & COLLECTIONS tbZ· rt' o VA T R IBHOVANDAS B H IMJI ZAVERI .,IIKII\."1/\\IKI(,)I,tlll' JIVA by The original since 1864 15
Slide 17: Q3 FY20 - Profit & Loss Statement
Q3 FY20 - PROFIT & LOSS STATEMENT Particulars (In Rs Mn) – Q3 FY20 Q3 FY19 YoY % 9M FY20 9M FY19 YOY % FY19 Standalone Net Revenues 6,446 5,917 8.9% 14,675 13,483 8.8% 17,638 COGS 5,663 5,098 11.1% 12,688 11,520 10.1% 15,149 Gross Profit 783 819 -4.5% 1,987 1,963 1.2% 2,489 Gross Margin (%) 12.1% 13
Slide 18: Discussion Summary
DISCUSSION SUMMARY • Q3 FY20 Results Update • About Us • Operational Summary • Business Model
Slide 19: 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 89 k, Diamond – • Professional organisation spearheaded by Rs 103 k
Slide 20: 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 21: Retail Presence
RETAIL PRESENCE PAN-INDIA PRESENCE WITH 39 STORES WITH A RETAIL SPACE OF ~116,561 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.) 31 Small Format (<= 2,000 sq. ft.) 8 Total Stores 39 Total Area ~1,16,561 20
Slide 22: Retail Footprint Expansion
RETAIL FOOTPRINT EXPANSION 1,20,699 1,10,666 1,02,930 98,200 41 91,058 88,093 37 82,368 32 30 27 28 25 FY13 FY14 FY15 FY16 FY17 FY18 FY19 No. of Retail Outlets Carpet Area (sq. ft.) 21
Slide 23: Discussion Summary
DISCUSSION SUMMARY • Q3 FY20 Results Update • About Us • Operational Summary • Business Model
Slide 24: Operational Summary
OPERATIONAL SUMMARY GOLD & DIAMOND VOLUMES 52,010 45,111 44,913 39,958 40,762 4,706 4,216 3,931 4,027 3,738 FY15 FY16 FY17 FY18 FY19 Gold Sales (kgs) Diamond Sales (cts) SSSG - TOTAL (%) AVERAGE TICKET SIZE (RS ‘000) 139 122 129 4.0 115 0.1 103 85 91 89 73 80 -2.1 -0.4 -16.5 FY15 FY16 FY17 FY18 FY19
Slide 25: Discussion Summary
DISCUSSION SUMMARY • Q3 FY20 Results Update • About Us • Operational Summary • Business Model
Slide 26: 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 27: 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 28: 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 29: Business Model: Scalability
BUSINESS MODEL: SCALABILITY • TBZ has an expansion plan to increase its retail space to around 1,50,000 sq. ft. over near term. • TBZ plans to carry out the expansion through mix of franchisee route and addition of its own stores. • All the prospective expansion locations have already been identifie
Slide 30: 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 31: 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 32: tDZ·
The original since 1864 - -=-- - ThTBHOVA NDAS BHTMJT ZAVERT SIIRIK.\\'TZ.\\'1-.IU CROI P tDZ· The orignal sioce 1864 T RI BHOVAN DAS B H I MJ I ZAVER I \llRit....\Vf ;r_\\'I.RI CROll!-' IDICKENSON I Saurav Banerjee Manasi Bodas / Chintan Mehta Chief Financial Officer IR Consultant Tribhovandas Bhim
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