MUMBAI, India, Nov. 15, 2024 /PRNewswire/ — Tribhovandas Bhimji Zaveri Limited (“TBZ Ltd.”), India’s premier and trusted jewellery retailer with a legacy spanning 160 years, has announced its financial results for Q2 and H1 FY25, reporting robust growth in key financial metrics. This performance underscores TBZ Ltd.’s effective cost management and strategic expansion efforts, solidifying its position in the market despite challenging conditions.
PERFORMANCE HIGHLIGHTS:
- Revenue from Operations: ₹5,670.47 million in Q2 FY25, a 17.99% YoY increase from ₹4,805.86 million in Q2 FY24, and ₹11,632.90 million in H1 FY25, marking a 10.64% rise, demonstrating sustained sales growth and market penetration.
- Gross Profit: Increased by 21.39% YoY in Q2 FY25 to ₹776.28 million, and by 14.29% in H1 FY25 to ₹1,635.12 million, with gross margin expansion of 38 bps in Q2 and 45 bps in H1 FY25, reflecting the impact of optimized pricing, selective discounting and better cost control.
- EBITDA: Grew 22.22% YoY in Q2 FY25 to ₹362.51 million and 27.41% in H1 FY25, reaching ₹788.47 million. The EBITDA margin improved by 22 bps in Q2 and 89 bps in H1, showcasing strengthened operational efficiency.
- Profit Before Tax (PBT): Achieved a 50.40% YoY growth in Q2 FY25 to ₹184.57 million, and 57.59% growth in H1 FY25 to ₹432.73 million, underscoring disciplined expense management and revenue gains.
- Profit After Tax (PAT): Grew by 44.40% in Q2 FY25 to ₹132.20 million, and by 54.16% in H1 FY25 to ₹316.89 million, with PAT margin expansion of 43 bps in Q2 and 77 bps in H1, reflecting protected bottom-line performance.
- Earnings Per Share (EPS): Increased to ₹1.98 in Q2 FY25 from ₹1.37 in Q2 FY24, demonstrating enhanced shareholder value.
IMPROVING FINANCIAL PERFORMANCE:
The Q2 and H1 FY25 results showcase TBZ Ltd.’s continued strategic focus on profitability and efficiency. The promising 17.99% YoY increase in revenue for Q2, coupled with gross profit growth of 21.39%, resulted from improving market demand and effective pricing strategies. The 22.22% rise in EBITDA in Q2 FY25, along with an 89-bps improvement in H1 EBITDA margin, resulted from disciplined cost management and operational enhancements. PBT growth of 50.40% in Q2 and 57.79% in H1 showcased TBZ Ltd.’s prudent expense control, while the 44.40% and 54.16% gains in PAT for Q2 and H1, respectively, highlight a resilient bottom line, further supported by efficient tax management and steady margin expansion. Sizeable EPS growth reaffirmed TBZ’s commitment to delivering value to shareholders.
Over the past several quarters, TBZ Ltd.’s EBITDA and EBITDA margin have shown consistent improvements, underscoring the Company’s dedication to operational efficiency and profitability. In Q1 FY25, EBITDA reached ₹425.96 million with a margin of 7.14%, reflecting a year-on-year growth of 32.19% and a 150 bps improvement in margin from Q1 FY24. This upward trend has continued into Q2 FY25, where the Company achieved an EBITDA of ₹362.51 million, a 22.22% increase from Q2 FY24, and an EBITDA margin of 6.39%. For H1 FY25, EBITDA grew by 27.41% to ₹788.47 million, with an 89 bps increase in margin compared to H1 FY24. These results highlight TBZ Ltd.’s strategic focus on enhancing profitability while steadily growing sales through disciplined financial management and market-responsive strategies.
Summary Table
|
(Standalone Figures) |
(Rs. In Millions) |
|||||
|
Particulars |
Q2 FY 25 |
Q2 FY 24 |
% Change |
H1FY25 |
H1FY24 |
% Change |
|
Revenue from Operations |
₹5,670.47 |
₹4805.86 |
17.99 % |
₹11,632.90 |
₹10,514.02 |
10.64 % |
|
Gross Profit |
₹776.28 |
₹639.48 |
21.39 % |
₹1,635.12 |
₹1430.70 |
14.29 % |
|
Gross Margin |
13.69 % |
13.31 % |
38 bps |
14.06 % |
13.61 % |
45 bps |
|
EBITDA |
₹362.51 |
₹296.60 |
22.22 % |
₹788.47 |
₹618.84 |
27.41 % |
|
EBITDA Margin |
6.39 % |
6.17 % |
22 bps |
6.78 % |
5.89 % |
89 bps |
|
Profit Before Tax (PBT) |
₹184.57 |
₹122.72 |
50.40 % |
₹432.73 |
₹274.70 |
57.59 % |
|
Profit After Tax (PAT) |
₹132.20 |
₹91.55 |
44.40 % |
₹316.89 |
₹205.56 |
54.16 % |
|
PAT Margin |
2.33 % |
1.91 % |
43 bps |
2.72 % |
1.96 % |
77 bps |
|
EPS |
1.98 |
1.37 |
44.53 % |
4.75 |
3.08 |
54.22 % |
Chairman’s Statement:
Mr. Srikant Zaveri, Chairman of TBZ Ltd., stated, “Our results for Q2 and H1 FY25 reflect TBZ’s ongoing dedication to growth and operational discipline. The solid gains in PAT and steadily expanding margins are tangible outcomes of our focus on efficiency and our more profitable product segments. With the addition of new stores in Rourkela and Bhubaneshwar, taking our total to 35, we are well-positioned to further deepen our presence in Eastern India and cater to a broader market with our legacy of craftsmanship and quality.”
Director’s Statement:
“Opening stores in Rourkela and Bhubaneshwar marks a significant step in our expansion strategy, capturing the essence of TBZ Ltd.’s dedication to growth that preserves our standards of craftsmanship and customer service,” stated Ms. Binaisha Zaveri, Director of TBZ Ltd. “These new stores are more than retail outlets; they are symbols of our 160 years’ heritage in cities that value fine jewellery. This expansion enables us to connect with new communities and foster long-term relationships with patrons, bringing the TBZ experience closer to our customers in Eastern India. Going forward, we hope to further add to these store expansion numbers in H2 FY25, focusing on under-penetrated markets. Meanwhile, our ongoing push for organic growth from our existing stores across India continue unabated. This is being supported by strong brand stewardship, attractive incentives, prudent marketing and innovative design introductions across all price points.”
CFO’s Statement:
Mr. Mukesh Sharma, CFO of TBZ Ltd., commented, “The financial performance KPIs in Q2 and H1 FY25 is proof of our continued commitment to margin growth and cost control, while chasing quality top-line. Our steady EBITDA and PAT growth also reflect disciplined financial management and a worthwhile focus on high-margin segments. The recent reduction in customs duties on gold and silver also supports our profitability, aiding in further cost efficiencies. As we expand our store count and focus on continued organic growth from existing stores, we are optimistic about sustaining this momentum in the upcoming quarters.”
Strategic Initiatives and Market Expansion:
- Expansion in Eastern India: TBZ Ltd. has bolstered its presence in Eastern India with new stores in Rourkela and Bhubaneshwar, strategically tapping into key markets and enhancing brand reach.
- Customer Engagement: Q2 FY25 saw a substantial increase in new customer acquisitions (up 44%) and re-engagement of lapsed customers (12%), driven by campaigns like “Diamond No Making Festival” and “Brides of TBZ.”
- Government Policy Impact: The reduction in customs duties on gold and silver is expected to benefit TBZ’s cost structure, contributing to margin stability and sustaining customer accessibility to the Company’s products.
Opening of New Stores in Rourkela and Bhubaneshwar, Odisha:
TBZ Ltd. continues its strategic expansion in Eastern India by opening new stores in Rourkela and Bhubaneshwar, further extending its reach into regions with a rich cultural heritage and significant commercial potential. These new stores reflect TBZ Ltd.’s approach to thoughtful, sustainable growth, placing emphasis on franchisee quality and customer satisfaction over rapid expansion. This initiative underlines TBZ Ltd.’s proactive strategy to grow its footprint while remaining dedicated to delivering excellence and reinforcing the brand’s legacy across new markets.
