Tribhovandas Bhimji Zaveri Q2 net plunges 82% to Rs 4 cr

Net profit of TBZ stood at Rs 19 crore in the same period last year

Leading jewellery retailer Tribhovandas Bhimji Zaveri (TBZ) has reported a 81.5% fall in net profit at Rs 3.51 crore for the second quarter ended September 30, 2013.

The net profit of TBZ stood at Rs 19.01 crore in the same period last year.

In Q2 FY14, low customer sentiments due to gold rate volatility and sluggish economic conditions resulted in a total income decline by 7.65% at Rs 323.60 crore and net profit by 81.51% at Rs 3.51 crore, a company statement said.

The EBITDA for Q2 FY14 stood at Rs 16.64 crore and EBITDA margin was 5.14% as a percentage of total income, even though the industry faced several challenges.

The company has posted total income of Rs. 858.87 crore, up by 35.48% in H1 FY14 while EBITDA stood at Rs 56.82 crore.

Commenting on the company's outlook in FY14, Shrikant Zaveri, Chairman and Managing Director, Tribhovandas Bhimji Zaveri 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.

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".

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 release said.