India's TBZ reports rise in Q1 profit on higher gold jewellery sales

Tribhovandas Bhimji Zaveri

05/08/2024 13:07

BENGALURU, Aug 5 (Reuters) - 
    India's Tribhovandas Bhimji Zaveri (TBZ)  TBZL.NS  posted a
50% rise in first-quarter profit on Monday, helped by increasing
demand for its gold jewellery despite soaring prices.
  
    Consolidated net profit rose to 170.5 million rupees ($2
million) in the quarter ended June, the jeweller said, while
sales rose 4.5% to 5.96 billion rupees. 
    TBZ's core profit margin expanded to 7.14% during the
quarter from 5.65% a year earlier as the company focused on
high-margin products, which boosted the bottomline, it said.  
    Soaring gold prices, however, pushed up the company's raw
material costs by 34%. Total expenses rose 3%. 
    As gold prices continue to rise, retailers are either
increasing prices to protect their bottomline or offering
discounts to attract customers.  
    Larger rival Titan  TITN.NS  missed quarterly profit
estimates last week as higher gold prices dampened demand in its
mainstay jewellery segment, while discounts helped Kalyan
Jewellers  KALN.NS  report a higher first-quarter profit.
    Shares of TBZ ended about 6% lower amid a broader selloff in
the market on Monday. The benchmark Nifty 50  .NSEI  closed 2.7%
lower. 

($1 = 84.1150 Indian rupees)

 (Reporting by Hritam Mukherjee and Dimpal Gulwani in Bengaluru;
Editing by Sonia Cheema)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))