India's Tribhovandas Bhimji Zaveri posts five-fold jump in Q1 profit

Tribhovandas Bhimji Zaveri

01/08/2023 14:59

BENGALURU, Aug 1 (Reuters) - Indian jeweller
Tribhovandas Bhimji Zaveri  TBZL.NS  reported a nearly five-fold
jump in first-quarter profit on Tuesday, as higher margins from
premium pricing and lower expenses banded together to make up
for its first revenue fall in 10 quarters. 
    The company said its consolidated net profit rose to 113.7
million Indian rupees ($1.38 million) for the quarter ended June
30, from 24.4 million rupees a year earlier.
    It had posted a more than three-fold jump in profit in the
January-March quarter.
    The Mumbai-based jeweller's total revenue slid marginally
this quarter by 1.6% to 5.71 billion rupees. Revenue had last
slid 3.3% in the quarter ended Dec 31, 2020.
    However, the company's total expenses fell 3.7% as the cost
of materials consumed - which forms more than 50% of the total
expenses - fell 5.6%.
    Demand for gold remained strong in the quarter, especially
around the Akshaya Tritiya festival in April, considered
auspicious for gold investments and after the Reserve Bank of
India decided to withdraw 2,000-rupee notes.
    This led to jewellers charging a premium for the yellow
metal during most of the quarter, driving their margins higher.
    Tribhovandas's margins for earnings before interest, tax,
depreciation and amortisation (EBITDA) surged to 5.65% from
3.22% a year earlier, helped by strong pricing.
    Rival Titan Co  TITN.NS  reported last month that its
jewellery division grew 21% during the quarter, while Kalyan
Jewellers India  KALN.NS  and PC Jeweller  PCJE.NS  are yet to
report quarterly results. 
        Shares of Tribhovandas closed 2.88% higher at 92.80
rupees ahead of the results.
      
($1 = 82.3080 Indian rupees)

 (Reporting by Aleef Jahan and Ashish Chandra in Bengaluru;
Editing by Janane Venkatraman)
 ((aleefjahan.cs@thomsonreuters.com;))