Tribhovandas Bhimji Zaveri Limited (TBZ) is assigned [ICRA]A-(Stable) Rating by ICRA
Key Rationale Highlights:
- Strong brand and promoters’ extensive industry knowledge remain key strengths
- TBZ showcased financial growth, achieving a 1.0 times gearing in FY2023
- Revenue surged by ~30% YoY; PAT doubled in FY2023
- Q1 FY2024 margins strengthen, indicating a bright outlook for TBZ
MUMBAI, India, Aug. 28, 2023 /PRNewswire/ — ICRA, a leading credit rating agency, has awarded Tribhovandas Bhimji Zaveri Limited (TBZ) a consolidated “Issuer Rating” of [ICRA]A-(Stable). This assignment leans heavily on the company’s established reputation in the jewellery retail sector, built over the years by the promoters’ industry know-how. TBZ’s financial steadiness, marked by its conservative capital approach, also played a significant role. Over recent years, TBZ’s capital structure has seen a marked improvement due to substantial additions to its reserves and a lesser reliance on external borrowing.
The rating rationale highlights TBZ’s robust financial stance, underscored by its absence of long-term debts. The majority of the company’s liabilities stem from working capital borrowings. TBZ’s financial metrics show potential for further enhancement, driven by robust demand and growth in revenues and profits. Emphasized in the rationale is TBZ’s impressive 30% YoY revenue growth and the doubling of its PAT in FY2023.
“ICRA’s Stable outlook for TBZ’s long-term rating underscores expectations that the company will continue to benefit from favourable market conditions, its strong market position, and a substantial share of studded jewellery in its revenue mix. As we pursue building a better-quality business rooted in bottom-line fundamentals, this optimism resonates with our strategic pillars. With a huge focus on product development and marketing initiatives that push sales without hurting margins, we are determined to further bolster TBZ’s position in the industry.” – said Shrikant Zaveri, Chairman & Managing Director, TBZ.
To read the complete rating rationale, download the rationale report from ICRA’s website https://www.icraresearch.in
About Tribhovandas Bhimji Zaveri Limited (TBZ):
Tribhovandas Bhimji Zaveri Limited is India’s renowned and trusted jewellery retailer with more than 158 years of legacy. The company began its journey in 1864, opening its flagship store in Zaveri Bazar, Mumbai. Over the years, the company has established itself as a preferred choice for customers in the wedding jewellery segment, recognized for exquisite gold and diamond jewellery designs. It has led from the front in an otherwise largely unorganized Indian jewellery industry, displaying high quality and transparency standards over the last 158 years, being the first jeweller to offer a buyback guarantee on jewellery and introduce 100% per-hallmarked jewellery in India. The company has transformed itself from a one-store family-owned business in 1864 to a professional organization spearheaded by the 5th generation, expanding its presence and reach across India with 32 stores in 25 cities.
For inquiries, please contact:
Mr. Mukesh Sharma, CFO
Ms. Shankhini Saha – Investor Relations
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