TBZ Announces Q4 & 2015-16 Results

Mumbai: Tribhovandas Bhimji Zaveri Limited (“TBZ”), India’s renowned and trusted jewellery retailer with a legacy of over 150 years, reported its audited results and financial performance for the fourth quarter and full financial year ending 31st March, 2016.

Key Highlights:

In Rs crores Q4 FY16 Q4 FY15 % YoY FY16 FY15 % YoY  
Total Income from Operations 305.16 463.01 -34.09% 1,654.78 1,934.20 -14.45%  
Gross Profit 53.09 63.73 -16.69% 235.27 264.11 -10.92%  
Gross Margin (%) 17.40% 13.76%   14.22% 13.65%    
EBITDA -0.73 24.94 -102.91% 39.56 74.84 -47.14%  
EBITDA Margin (%) -0.24% 5.39%   2.39% 3.87%    
PAT -17.00 18.49   -23.13 26.04    
PAT Margin (%) -5.57% 3.99%   -1.40% 1.35%    
Earnings Per Share (Rs) -2.55 2.77   -3.47 3.90      

The total income from operations during Q4FY16 declined by 34.09% YoY to Rs. 305.16 crores. Q4FY16 EBITDA declined by 102.91% YoY to Rs. -0.73 crores with an EBITDA margin of -0.24%. Q4FY16 PAT declined to Rs. -17.00 crores with a PAT margin of -5.57%.

The total income from operations during FY16 declined by 14.45% YoY to Rs. 1,654.78 crores. FY16 EBITDA declined by 47.14% YoY to Rs. 39.56 crores with an EBITDA margin of 2.39%. FY16 PAT declined to Rs. -23.13 crores with a PAT margin of -1.40%.

Mr. Shrikant Zaveri, Chairman and Managing Director of the company stated that “Fourth quarter performance was impacted by the nationwide agitation by gems & jewellery industry in protest against imposition of 1% excise duty on jewellery sales. Even in these challenging times we were able to improve our gross margins by 364 basis points y-o-y to 17.4% and keep our operating cost under strict control. Interest cost during the quarter declined by 6% y-o-y to Rs. 12.8 crores. We continued with our efforts to rationalize and refresh our inventory. These measures helped us maintain a positive cash flow. During the quarter we incurred a hedging loss of Rs. 13.6 crores on account of rising gold prices. Looking into the next year, we are optimistic of an improved operational and financial performance. We expect to see growth in jewellery sales in FY17 on the back of redemptions under the re-launched Kalpavruksha Scheme, expectations of a good monsoon, longer wedding season and overall improvement in discretionary demand. We shall continue expanding our reach and presence across India through mix of own and franchise stores over coming years.”