Tribhovandas Bhimji Zaveri Limited (TBZ Ltd.) has announced its audited financial results for the fourth quarter (Q4FY24) and the entire fiscal year 2023-24 (FY24) with the results indicating a notable improvement in the company’s financial health and operational performance.
Annual Profit Growth
TBZ Ltd. has reported a significant increase in both Profit Before Tax (PBT) and Profit After Tax (PAT) for FY24. The PBT rose by 38.14%, reaching ₹71.18 crore, compared to ₹51.53 crore in the previous fiscal year. Similarly, the PAT saw a 36.16% increase, growing from ₹39.67 crore in FY23 to ₹54.02 crore in FY24. This growth highlights the company’s improved operational efficiency and successful strategic initiatives.
EBITDA Performance
The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also showed substantial growth, with a 20.18% increase from ₹114.97 crore in FY23 to ₹138.17 crore in FY24. This reflects TBZ’s effective cost management and strong earnings performance.
Profit Margins
TBZ Ltd. reported improved profit margins, with the PBT margin increasing by 94 basis points to 3.10%, and the PAT margin rising by 69 basis points to 2.35%. These enhancements indicate stronger profitability relative to revenue.
Gross Profit
The gross profit for FY24 increased by 12.55%, from ₹266.52 crore in FY23 to ₹299.97 crore, demonstrating effective cost management and robust earnings.
Corporate Social Responsibility
TBZ Ltd. continues to invest in Corporate Social Responsibility (CSR) initiatives, including Project Pankhi and Ek Disha. These initiatives focus on gender equality, education, and support for special needs children, benefiting thousands of women and children.
Brand and Marketing Initiatives
TBZ Ltd. has renewed its partnership with Sara Ali Khan as the brand ambassador for the next two years. The company’s marketing campaigns, which include aggressive advertising and social media engagement, have successfully expanded its customer base. Digital initiatives achieved a reach of 1.35 million, 900,000 impressions, and 27,000 engagements. Campaigns including Republic Day, Moonstruck, Land of Gold, Valentine’s Day, and Women’s Day improved brand visibility and customer engagement.
Leadership Commentary:
Mr. Srikant Zaveri, Chairman, said, “The dedication of our team and our agile business model have enabled us to navigate a complex environment effectively. Despite the challenging market conditions, we have managed to sustain our profitability and market position. This quarter, even though we faced headwinds from increased gold prices and election-related slowdowns, our strategic initiatives have allowed us to maintain a steady course. We have focused on optimising our supply chain and enhancing customer engagement through effective targeted marketing campaigns. Our investments in technology and innovation have been a key driver of our resilience. Looking ahead, we are getting leaner and meaner – and therefore more optimistic about FY25. We will remain focused on expanding our footprint domestically, while maintaining our commitment to our uniqueness, quality and excellence.”
Mr. Mukesh Sharma, CFO, mentioned, “Our improved profitability margins are a testament to our rigorous cost control measures and operational efficiencies. We have implemented several strategic initiatives to streamline our operations and reduce costs, including adopting advanced inventory management systems and process automation. These efforts have not only improved our bottom line but also enhanced our ability to respond swiftly to market changes. We will keep building on these improvements, while exploring growth in new and emerging cities with new stores opening through our franchisee model in FY25.”
Industry Perspective
TBZ Ltd. is adapting to market demands by diversifying its product offerings and increasing the diamond ratio amidst fluctuating gold prices. This strategy reflects a broader industry trend towards varied product portfolios that cater to evolving consumer preferences. The company’s investment in research and development aims to maintain its leadership in both traditional and contemporary jewellery designs.
Future Outlook
Looking ahead, TBZ Ltd. is focused on enhancing customer experience, expanding its market reach through new store openings, and leveraging technological advancements in jewellery design and retail. The company’s plans include introducing new collections and expanding into additional regions.
