TBZ Jeweller net profit for Q4 drops 83 percent to Rs 1 crore
Leading jeweller Tribhovandas Bhimji Zaveri (TBZ) Ltd saw its net profit for the fourth quarter plummet 83 percent to Rs 1 crore ($1,42,285) as against Rs 7 crore it had reported during the corresponding period last fiscal.
The company also witnessed a slowdown in sales with revenue dropping 4 percent to Rs 416 crore from Rs 434 crore it had reported in the previous fiscal.
Even though the company managed to better its overall sales for the full financial year 2018-19, its net profit for the fiscal year dipped by 27 percent.
TBZ reported net sales of Rs1768 crore during the 12 months period ended March 31, 2019, as compared to Rs1762 crore it posted in the fiscal year 2018. Its profit for the year stood at Rs 16 crore as against Rs 21 crore it had posted last year.
Commenting on the results, Shrikant Zaveri, chairman and managing director of TBZ in a statement said: "We witnessed good traction in customer footfalls: however, there was no contribution from Gudi Padwa festival which occurred in April 2019 compared 10 March 2018, thus impacting our fourth quarter sales."
"Lower sales and elevated operating and finance costs due to new store additions in the second half of the year led to lower profitability. However, we are confident that these new stores will make a healthy contribution to our sales in the coming year and will have a positive impact on our operating performance and profitability," he added.
TBZ entered key jewellery markets like Noida, Ludhiana, Bengaluru, and Lucknow during the fiscal. It added five new stores to take its store count to 42 across India.
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