Tribhovandas Bhimji Zaveri suffers substantial Covid-19 impact on revenues in March

Manufacturing facilities were fully shut from March 17 to June 1 which affected the revenue generation, cash flows and financial performance of the company during Q4FY20 and Q1FY21.

Jul 16, 2020 12:07 IST India Infoline News Service

Tribhovandas Bhimji Zaveri, TBZ
Tribhovandas Bhimji Zaveri Limited informed the exchanges Thursday that the company suffered a substantial impact on revenues for March 2020, particularly due to loss of revenues on the occasion of Gudi Padwa and other regional festivals in different parts of the country as well as the build‐up towards Akshaya Tritiya. This had an impact on the Q4FY20 earnings of the company.

The company’s Covid adjusted estimated financials for Q4FY20 was revenue Rs342.5cr compared to Rs415.5cr in Q4FY19; Covid adjusted Rs441.5cr. EBIDTA Rs23.8cr compared to 14.0cr in Q4FY19; Covid adjusted Rs37.6cr and PAT Rs4cr compared to 12cr in Q4FY19; Covid adjusted Rs18cr.

For the fiscal year FY20, revenue was Rs1,810.1cr compared to Rs1,763.8cr in FY19; Covid adjusted Rs1,900cr. EBIDTA Rs1,116. 1cr compared to Rs73.8cr in FY19; Covid adjusted Rs125cr. PAT stood at Rs21.9cr compared to Rs15.3cr in FY19; Covid adjusted Rs32.5cr.

The lockdowns and restrictions imposed due to Covid-19 pandemic posed severe challenges to the business. The company’s operations were hit substantially from March 17, 2020, onwards. Corporate offices, Retail store operations and Manufacturing facilities were fully shut during the period from March 17, 2020, to June 1, 2020, which affected the revenue generation, cash flows and financial performance of the company during Q4FY20 and Q1FY21. 

Safety of employees has been of utmost importance and highest priority and therefore the company adopted a “Work from Home” policy for all its employees right from the third week of March, 2020. Technology has been fully leveraged and all critical back end operations were successfully managed remotely. 

With the gradual/phase wise lifting of the lockdown restrictions in the country, the company has reopened most of its stores with effect from 1st week of June, 2020, (barring those located within Containment Zones) after establishing thorough and well‐rehearsed safety protocols as mandated by and strictly as per the restricted timings/schedules laid down by the Authorities.

The company is focussing on 'affordable diamonds' campaign and other festive and occasion‐based campaigns as per region. The company expects that the weddings that were postponed due to the lockdown, the upcoming festive season along with the new wedding season will all contribute to higher revenues and increased customer base as the year progresses.

The Company is confident that with its approach of focusing on contemporary designs, Consumer‐ friendly tech interventions and a well‐trained and motivated sales team, TBZ is well‐positioned to take advantage of the rebound in consumer buying in the months to come.
“We shall come out of the shadow of this pandemic as a brand that is agile, lean and poised for sustainable growth in years to come,” company said.

Tribhovandas Bhimji Zaveri Ltd is currently trading at Rs28.65 down by Rs0.1 or 0.35% from its previous closing of Rs28.75 on the BSE.

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