MUMBAI, India, Aug. 5, 2024 -- Tribhovandas Bhimji Zaveri Limited ('TBZ Ltd.'), India's premier and trusted jewellery retailer with a legacy spanning 160 years, announces an exceptional financial performance for the first quarter of FY25. The Company reports significant improvements in key profitability metrics, driven by effective operational strategies and market expansion efforts.
Exceptional Financial Performance:
TBZ Ltd. has recorded a substantial increase in Profit Before Tax (PBT) in Q1 FY25, reaching ₹248.16 million, a 63.39% rise from ₹151.88 million in Q1 FY24. Profit After Tax (PAT) also saw impressive growth, climbing 61.98% to Rs. 184.68 million from ₹114.01 million. Earnings Per Share (EPS) surged by 61.99% to ₹2.77, compared to ₹1.71 in the previous year's first quarter. Gross profit increased by 8.55%, totalling ₹858.84 million from ₹791.22 million in Q1 FY24, with a gross margin improvement of 54 basis points to 14.40%. Additionally, the PAT margin improved by 110 basis points to 3.10.
Over the last three years, TBZ Ltd.'s Q1 EBITDA and EBITDA margin have shown steady and persistent improvements. In Q1 FY23, the EBITDA was ₹186.72 million with a margin of 3.22%. By Q1 FY24, these figures had increased to ₹322.24 million and a margin of 5.65%. The upward trend has continued in Q1 FY25, with the Company's EBITDA growing year-on-year by 32.19% to ₹425.96 million, reflecting strong operational efficiency, and the EBITDA margin improving by 150 basis points to 7.14%. This consistent growth in EBITDA highlights the Company's ongoing operational strategies and focus on enhancing profitability while growing sales.
"Our Q1FY25 results clearly demonstrate our ongoing commitment to operational excellence, which has been instrumental in driving this significant PBT growth," stated Mr. Srikant Zaveri, Chairman of TBZ Ltd. "Key performance indicators such as administrative and sales cost control, inventory turnover, and capital efficiency have been central to improving our operational metrics, directly impacting our bottom line. Our ongoing strategic initiatives, particularly in optimizing these areas, continue to prove effective, contributing to our strong financial performance. There is always room for further improvements, and we are determined to continue pursuing these goals."
Summary Table
(Standalone Figures) | (Rs. In Millions) | ||
Particulars | Q1 FY 25 | Q1 FY 24 | % Change |
Revenue from Operations | ₹5,962.43 | ₹5,708.16 | 4.45 % |
Gross Profit | ₹858.84 | ₹791.22 | 8.55 % |
Gross Margin | 14.40 % | 13.86 % | 54 bps |
EBITDA | ₹425.96 | ₹322.24 | 32.19 % |
EBITDA Margin | 7.14 % | 5.65 % | 150 bps |
Profit Before Tax (PBT) | ₹248.16 | ₹151.88 | 63.39 % |
Profit After Tax (PAT) | ₹184.68 | ₹114.01 | 61.98 % |
PAT Margin | 3.10 % | 2.00 % | 110 bps |
EPS | ₹2.77 | ₹1.71 | 61.99 |
Market Demand and Sales Strategies
TBZ Ltd. achieved revenue from operations of ₹5,962.43 million, representing a 4.45% increase from ₹5,708.16 million in Q1FY24. This steady growth reflects resilient and consistent sales performance, supported by a healthy and improving product mix that has contributed to better margins. The Company's strategic focus on high-margin products and profitable growth has led to improved profitability. TBZ Ltd.'s gross profit increased by 8.55%, showcasing the effectiveness of its margin-focused strategies. The Company is no longer pressured into low-margin sales, instead prioritizing margin growth and overall profitability.
TBZ Ltd. continues to enjoy strong goodwill and brand appreciation, not only among traditional buyers but also among new customers. This wider market acceptance is a testament to the Company's ability to meet evolving customer preferences while maintaining its legacy of quality and craftsmanship. Embracing technological advancements and innovative marketing strategies, TBZ Ltd. enhances customer engagement and experience. The opening of the Jaipur store is part of a broader strategy to strengthen market presence through strategic franchise partnerships and digital transformation initiatives.
Mr. Mukesh Sharma, CFO of TBZ Ltd., commented, "Our Q1FY25 performance highlights the successful ongoing execution of our strategic initiatives aimed at margin growth and profitability. The 4.45% increase in revenue from operations to ₹5,962.43 million and the 8.55% rise in gross profit to ₹858.84 million demonstrate our effective sales strategies and robust product mix. As always, we have focused on high-margin products, which has significantly improved our bottom line. Additionally, the recent reduction in custom duty on gold and silver is a positive development that will lower our input costs and further enhance our profitability. We are excited about the future and remain committed to delivering exceptional value to our shareholders through continuous innovation and market adaptation."
Opening 34th store and 4th Franchise store at Jaipur, Rajasthan
TBZ Ltd. has strategically expanded its footprint through its franchise model while remaining steadfast in its commitment to quality over quantity. The newly inaugurated Jaipur store exemplifies this philosophy, strategically located to capitalize on a market rich in cultural heritage and commercial potential. This approach underscores TBZ Ltd.'s proactive strategy of thoughtful and sustainable growth, ensuring each new venture not only contributes to the Company's bottom line but also strengthens its commitment to delivering unparalleled quality and customer satisfaction.
"Opening our new franchise in Jaipur is a cornerstone of our strategic expansion, and it epitomizes our commitment to growth that doesn't compromise on the standards of excellence and customer service TBZ Ltd. is renowned for," stated Ms. Binaisha Zaveri, Director of TBZ Ltd. "This new establishment is not merely a store, but a beacon of our legacy in a city that reveres the art of jewellery. It's a strategic move that ensures our presence in key markets while upholding our ethos of quality and customer-centricity. We are not just opening doors in new locations; we are crafting unique experiences and forging enduring relationships with our patrons."
About Tribhovandas Bhimji Zaveri Limited:
Tribhovandas Bhimji Zaveri Limited is India's renowned and trusted jewellery retailer with more than 160 years of legacy. The Company began its journey in 1864, opening its flagship store in Zaveri Bazar, Mumbai. Over the years, the Company has established itself as a preferred choice for customers in the wedding jewellery segment, recognized for exquisite gold and diamond jewellery designs. It has led from the front in an otherwise largely unorganized Indian jewellery industry, displaying high quality and transparency standards over the last 160 years, being the first jeweller to offer a buyback guarantee on jewellery and introduce 100% per-hallmarked jewellery in India. The Company transformed from a one-store family-owned business in 1864 to a professional organization spearheaded by the 5th generation, expanding its presence and reach across India with 34 stores in 26 cities.
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