Tribhovandas Bhimji Zaveri Limited · NSE:TBZ
Tribhovandas Bhimji Zaveri — Q2 & H1 FY22 Earnings Presentation
24 slides from Tribhovandas Bhimji Zaveri's earnings presentation, Nov 12, 2021
Slide 1: Exchange filing cover letter for investor presentation
Date: 121h Nc:>vember, 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, Sandra (East), Mumba
Slide 2: Investor Presentation Q2 & H1 FY22 Results
INVESTOR PRESENTATION Q2 & H1 FY22 RESULTS November 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 • Q2 & H1 FY22 Results Update • About Us • Business Model
Slide 5: Q2 FY22 Result Highlights
Q2 FY22 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA PAT 21.3% 10.9% 15.0% 4,559 4.5% 5.2% 1.5% 409 2,732 206 142 66 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 *OPERATING COSTS (% of Total Revenue) Other highlights Share of Diamond Jewellery – Q2 FY22 (Q2 FY21) 21.7% (21.2%) Q2 3%
Slide 6: H1 FY22 Result Highlights
H1 FY22 RESULT HIGHLIGHTS In Rs Mn REVENUES & GROSS MARGIN EBITDA PAT 18.9% 11.2% 9.2% 3.0% -25 6,495 -50 325 -0.4% 3,526 198 -1.4% H1 FY21 H1 FY22 H1 FY21 H1 FY22 H1 FY21 H1 FY22 *OPERATING COSTS (% of Total Revenue) Other highlights Share of Diamond Jewellery – H1 FY22 (H1 FY21) 21.1% (19.6) H1 5%
Slide 7: Q2 & H1 FY22 Balance Sheet Update
Q2 & H1 FY22 BALANCE SHEET UPDATE In Rs Mn LEVERAGE ANALYSIS TOTAL DEBT BREAKUP 0.79 0.66 4,076 3,732 5,337 5,145 1,874 2,071 3,497 4,075 1,858 2,005 Mar-21 Sep-21 Mar-21 Sep-21 Equity Net Debt Net Debt/Equity Working Capital Debt Gold on Loan Notes: 1. Total net debt has increased due to higher wor
Slide 8: Q2 & H1 FY22 - Key Result Takeaways
Q2 & H1 FY22 - KEY RESULT TAKEAWAYS REVENUE & MARGIN: • Revenue stood at Rs.4,559 Mn in Q2 FY22, up by 67% YoY. Strong growth in revenue was due to revival of economy and uptick in demand led by better customer sentiments. • Strategic advertising campaigns and tactical offers were offered during the
Slide 9: Q2 & H1 FY22 - Profit & Loss Statement
Q2 & H1 FY22 - PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q2 FY22 Q2 FY21 YoY % H1 FY22 H1 FY21 YoY % Net Revenues 4,559 2,732 66.9% 6495 3,526 84.2% COGS 4,064 2,151 89.0% 5769 2,859 101.8% Gross Profit 495 581 -14.8% 726 668 8.7% Gross Margin (%) 10.9% 21.3% -1041bps 11.2% 18.9% -776bps Person
Slide 10: Q2 & H1 FY22 - Balance Sheet Statement
Q2 & H1 FY22 - BALANCE SHEET STATEMENT Particulars (In Rs Mn) September-21 June-21 March-21 December-20 September-20 Shareholders Funds 5146 5,246 5,337 5,255 4,864 Loan Funds 4076 3,452 3,732 3,330 4,711 Gold on Loan 2005 1,796 1,874 1,690 940 Working Capital Loan 2071 1,656 1,858 1,640 3,771 Lease
Slide 11: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER • Flat 399 per gram making charges on all gold jewellery and upto 100% off on making charges of diamond jewellery • 100% exchange value on any old gold • Special campaigns for Raksha Bandhan, Durga Pujo & Varalakshmi • Digital focus to promote • Kalpavruksha
Slide 12: Marketing Initiatives During the Quarter
MARKETING INITIATIVES DURING THE QUARTER 11
Slide 13: Discussion Summary
DISCUSSION SUMMARY • Q2 & H1 FY22 Results Update • About Us • Business Model
Slide 14: 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 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
Slide 16: 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 15
Slide 17: Discussion Summary
DISCUSSION SUMMARY • Q2 & H1 FY22 Results Update • About Us • Business Model
Slide 18: 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 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 spread over ~24,000 sq ft with
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 LARGE FORMAT STORE STORE STORE • > 2,000 sq ft • Standalone high street
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: H1 FY22 CSR Initiatives – Project Pankhi
H1 FY22 CSR INITIATIVES – PROJECT PANKHI A Project initiated by TBZ to provide Counselling & Skill Development to women impacted by Domestic Violence • Counselors engaged in 13 different community settings in Mumbai, Vadodara, Ahmedabad, Pune, Kochi, Patna, Delhi and Hyderabad • More than 1,200 case
Slide 24: 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 23
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