Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q1 FY21 Earnings Presentation
32 slides from Tribhovandas Bhimji Zaveri's earnings presentation, Aug 14, 2020
Slide 1: Exchange covering letter for investor presentation
Date: 14th August, 2020 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 FY21 Results
INVESTOR PRESENTATION Q1 FY21 RESULTS August 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 • COVID-19 Impact • Q1 F21 Results Update • About Us • Operational Summary • Business Model
Slide 5: COVID-19 Impact
COVID-19 Impact • The lockdowns and restrictions imposed due to COVID-19 pandemic posed severe challenges to the business. Corporate offices, Retail store operations and Manufacturing facilities were fully shut during the period from March 17, 2020, to June 1, 2020, which affected the revenue genera
Slide 6: Discussion Summary
DISCUSSION SUMMARY • COVID-19 Impact • Q1 FY21 Results Update • About Us • Operational Summary • Business Model
Slide 7: Q1 FY21 Result Highlights
Q1 FY21 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA PAT 15.3% 10.9% 257 31 4,298 795 -192 -84 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 OPERATING COSTS (%) Studded Share Ratio Share of Diamond 14%(23%) - Q1 FY21 (Q1 FY20) Q1 15% 1% 5% FY21 Q1 4% 3% 2% FY20 Manpower Advertisment R
Slide 8: Q1 FY21 Estimated COVID-19 Impact on Financials
Q1 FY21 ESTIMATED COVID-19 IMPACT ON FINANCIALS Particulars (Rs Mn) *Q1FY21 COVID Adjusted Q1FY20 Revenue 795 4,615 4,298 EBITDA -84 280 257 PBT -258 70 50 Note: • The effects of Covid19 and the subsequent lockdown has been severe in Q1 of FY20-21 as the stores remained closed during April20 and May
Slide 9: Q1 FY21 Balance Sheet Update
Q1 FY21 BALANCE SHEET UPDATE In Rs Mn LEVERAGE ANALYSIS TOTAL DEBT BREAKUP 1.03 1.02 5,480 5,320 4,920 5,070 2,170 1,480 4,730 4,830 3,310 3,840 Mar-20 June-20 Mar-20 June-20 Equity Net Debt Net Debt/Equity Working Capital Debt Gold on Loan Notes: Gold on Loan is shown as part of short term borrowin
Slide 10: Q1 FY21 - Key Result Takeaways
Q1 FY21 - KEY RESULT TAKEAWAYS REVENUE & MARGIN: • Nationwide lockdown and loss of share of revenues during festive season such as Akshay Tritiya affected revenues in Q1 FY21 • Gross Margins for Q1 FY 21 were lower on account sales mix tilted in favor of gold as compared to the normal trend • EBITDA
Slide 11: Q1 FY21 - Profit & Loss Statement
Q1 FY21 - PROFIT & LOSS STATEMENT Particulars (In Rs Mn) – Standalone Q1 FY21 Q1 FY20 FY20 FY19 Net Revenues* 795 4,298 18,101 17,638 COGS 708 3,639 15,565 15,149 Gross Profit 87 659 2,536 2,489 Gross Margin (%) 10.9% 15.3% 14.0% 14.1% Personnel Expenses 123 185 762 732 Other Expenses 47 217 658 1,0
Slide 12: Q1 FY21 - Balance Sheet Statement
Q1 FY21 - BALANCE SHEET STATEMENT Particulars (In Rs Mn) – Standalone June-20 March-20 Shareholders Funds 4,730 4,920 Loan Funds 5,320 5,480 Gold on Loan 1,480 2,170 Working Capital Loan 3,840 3,310 Lease liability 800 880 Other Long -Term Liabilities 70 60 Other Financial Liabilities - - Sources of
Slide 13: 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 • Focus on Loyal customers and ensuring that they had access to the brand Completely online through Kalpavruksha Scheme •
Slide 14: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER 13
Slide 15: Contemporary Jewellery Designs & Collections
CONTEMPORARY JEWELLERY DESIGNS & COLLECTIONS 14
Slide 16: Contemporary Jewellery Designs & Collections
CONTEMPORARY JEWELLERY DESIGNS & COLLECTIONS 15
Slide 17: Contemporary Jewellery Designs & Collections
CONTEMPORARY JEWELLERY DESIGNS & COLLECTIONS 16
Slide 18: Contemporary Jewellery Designs & Collections
CONTEMPORARY JEWELLERY DESIGNS & COLLECTIONS 17
Slide 19: Contemporary Jewellery Designs & Collections
CONTEMPORARY JEWELLERY DESIGNS & COLLECTIONS 18
Slide 20: Discussion Summary
DISCUSSION SUMMARY • COVID-19 Impact • Q1 FY21 Results Update • About Us • Operational Summary • Business Model
Slide 21: 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 22: 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 23: Retail Presence
RETAIL PRESENCE PAN-INDIA PRESENCE WITH 38 STORES WITH A RETAIL SPACE OF ~113,561 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.) 30 Small Format (<= 2,000 sq. ft.) 8 Total Stores 38 Total Area ~1,13,561 22
Slide 24: Discussion Summary
DISCUSSION SUMMARY • COVID-19 Impact • Q1 FY21 Results Update • About Us • Operational Summary • Business Model
Slide 25: 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 26: Discussion Summary
DISCUSSION SUMMARY • COVID-19 Impact • Q1 FY21 Results Update • About Us • Operational Summary • Business Model
Slide 27: 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 28: 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 29: 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 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: Contact details
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 31
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