Indian Jeweller TBZ Reports 7.5% Profit Rise in Q4
India’s renowned jeweller Tribhovandas Bhimji Zaveri (TBZ) disclosed a 7.5% increase in its fourth-quarter profit, showcasing a resilient demand in the market. The company’s consolidated net profit soared to 126.1 million rupees ($1.5 million) for the quarter ending on March 31, up from 117.3 million rupees in the prior year. This surge in profitability can be attributed to unwavering demand, especially fueled by an elongated Indian wedding season in January.
Gold Demand Surges Despite Record High Prices
Despite gold prices hitting record highs of 67,850 rupees per 10 grams in the March quarter, gold demand in India, being the world’s second-largest gold consumer, surged by 8% year-on-year in the January-March period. TBZ’s strategic measures, such as adopting advanced inventory management systems and process automation, have significantly contributed to the company’s bottom-line growth.
Expansion Plans and Market Performance
TBZ is gearing up for expansion by planning to open franchise stores in new cities in the fiscal year 2025. While larger competitors like Titan Company faced challenges with profit misses due to higher discounts and gold prices, TBZ managed to outshine with a commendable profit rise. Despite a 0.8% increase in TBZ’s shares following the results announcement, the stock has witnessed a 12.8% decline this year. The company’s move towards operational efficiency and market expansion marks a promising trajectory for its future growth and dominance in the Indian jewellery market.
In conclusion, Tribhovandas Bhimji Zaveri’s strong performance amidst market challenges and its strategic growth initiatives position the company as a key player in the Indian jewellery industry. As the demand for gold continues to prevail despite price fluctuations, TBZ’s focus on innovation and expansion sets a solid foundation for sustained success in the market.