Tribhovandas Bhimji Zaveri Ltd. posts 35% growth in Total Income to Rs. 85,887.62 lakhs in H1FY2014

tbzMumbai, November 13, 2013: Tribhovandas Bhimji Zaveri (“TBZ”) Limited, a well known and trusted jewellery retailer in India, has posted Total Income of Rs. 85,887.62 lakhs (up by 35.48%) in H1FY2014. The EBITDA for H1FY2014 stood at Rs. 5,682.66 lakhs and EBITDA margin was 6.62% as a percentage of total income. In Q2FY2014, low customer sentiments due to gold rate volatility and sluggish economic conditions resulted in Total Income of Rs. 32,360.99 lakhs (-7.65%) and Net Profit of Rs. 351.44 lakhs (-81.51%). The EBITDA for Q2FY2014 stood at Rs. 1,664.55 lakhs and EBITDA margin was 5.14% as a percentage of total income, even though the industry faced several challenges.

Commenting on the Company’s outlook in FY14, Mr. Shrikant Zaveri, Chairman and Managing Director, Tribhovandas Bhimji Zaveri Ltd., said, “Market conditions in Q2 FY2014 were quite tough, however TBZ management’s constant endeavour will be to achieve growth in sales on one hand and control the costs on other hand. TBZ is one of the leading wedding jewellery retailers in India. The wedding segment is expected to show improved performance in FY14 driven by higher number of wedding days (74 days vs. 49 days in FY13) and auspicious days which will last till end of June 2014 – the highest in the last decade. The launch of new collections and designs would further drive volumes and margin expansion.”

TBZ Ltd. posted growth in total income of first half of the fiscal despite tough socio-economic conditions prevailing in the country including muted demand (double digit decline) by consumers during festive season 2013. The slowdown in imports of gold resulted in the scarcity of the yellow metal and gold being sold at a premium leading to higher prices. The high cost of imported gold and soaring gold prices affected consumer demand negatively. Incidentally, the demand for gold coins also declined as they became a less attractive investment option. All in all, Q2 FY 2014 was a very challenging period for the jewellery industry.

TBZ Ltd. undertook several proactive initiatives to sail through the market challenges including appealing new collections, attractive consumer offers and customer-centric schemes. Simply the best gifting solutions, TBZ-The Original Gift Cards, which were launched just before festival season, are ideal for all ‘Givers of Gifts’ and gave the freedom to get what they like, choose and use. TBZ’s Suvarna Shrishti scheme is a gold accumulation and savings purchase plan that protected consumers from rising gold rates. TBZ focused aggressively on increasing diamond sales.

TBZ has an expansion plan in place with retail network expected to expand 3 times from ~50,000 sq ft (14 stores in 10 cities) at the end of FY12 to ~150,000 sq ft (57 stores in 43 cities). TBZ is the oldest jeweller of repute with around 150 years of legacy built on strong pillars of trust, quality and transparency. TBZ Ltd. has one of the highest conversion, highest productivity and margins in the industry. TBZ Ltd. is professionally managed and has invested aggressively in systems, processes, manufacturing and the brand to ensure smooth scalability. TBZ-The Original is a key player in both the wedding and fashion jewellery market and is a proxy for growth in both the segments.

About Tribhovandas Bhimji Zaveri Limited

TBZ Ltd. (BSE: 534369 | NSE: TBZ) has a 150-year old track-record of trust, quality and purity of its products, TBZ has won several prestigious awards including the Readers Digest Trusted Brand Asia in the category of Jewellery Shop in 2006, 2007 and 2008. TBZ has received other awards for both products and customer service, including the DTC Best Showroom award in 2004 and 2006, the DTC Best Diamond Moments award in 2005 for customer interactions, the DTC Best Showroom and Sales Person award in 2006 and 2007, the Jaipur Jewellery Show Gold Souk Awards 2007, which honoured TBZ’s contribution to the gem and jewellery industry in India, and the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007 – Council for Fair Business Practices Award. Another prestigious win for TBZ-The Original came when it bagged 2 awards under the marketing excellence category along with being awarded as the ‘Best Branded Traditional Jewellery of the Year 2012’ Award from the Bombay Bullion Association at the 9th India International Gold Convention Hyderabad. This year, Mr. Shrikant Zaveri, Chairman & MD, TBZ Ltd., received the coveted prestigious MACCIA Award 2013 for Excellence in Entrepreneurship – Large Enterprise in Gems & Jewellery category award at a glittering function organized by the Maharashtra Chamber of Commerce, Industry & Agriculture (MACCIA). TBZ Ltd. has 27 stores in 21 cities across 8 States including Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Kerala, Andhra Pradesh, Rajasthan and West Bengal.