T B Z Management Discussions

Global Economic Review

The global economy Is showing signs of resilience In 2023 after the high market volatility in 2022. Economic growth remains slow in 2023 owing to the negative implications of the ongoing Russia-Ukraine war, persistent inflationary pressures and tighter monetary conditions. Further, the banking crisis in March 2023 and a debt-ceiling crisis in the United States have raised concerns over macroeconomic stability across the markets and lingering recession fears. Key factors in the improvement in economic activity and sentiment in 2023 are the rebounding of China Rs.s economy, the gradual unwinding of supply chains and the recent decline in energy and food prices. Further, with the central banks Rs. efforts to curb inflation by tightening monetary policy, global inflation Is projected to decrease from 8.7% in 2022 to 7.0% in 2023 and 4.9% in 2024.

Notwithstanding the headwinds, the real Gross Domestic Product (GDP) grew in the United States, the European Union and major emerging and developing economies. The real GDP of the United States grew at 2.1% in 2022 on the back of increased private investment and consumer spending. It Is projected to grow at 1.6% in 2023 and 1.1% in 2024. The European economy recorded 2.7% growth in 2022 and Is projected to grow at 0.8% in 2023 before rising to 1.4% in 2024. The Emerging Market and Developing Economies (EMDE) also grew at an estimated annual rate of 4% in 2022.

(Source: IMF Report - World Economic Outlook April 2023) Outlook

Despite the economic uncertainties and underlying inflationary pressures, the outlook for the global economy Is slightly less gloomy than earlier anticipated. The International Monetary Fund (IMF) has projected global GDP growth to decline from 3.4% in 2022 to 2.8% in 2023 and rise to 3.0% in 2024. The growth of Advanced Economies (AEs) Is projected to decline sharply from 2.7% in 2022 to 1.3% in 2023 before rising to 1.4% in 2024. Economic prospects for Emerging and Developing Economies (EMDEs) are on average stronger than for Advanced Economies. EMDEs are expected to grow at 3.9% in 2023 and 4.2% in 2024. Developing economies like South-East Asia and Latin America are poised to do well and benefit from strong job markets and ambitious investment plans by governments in many countries. Asia-Pacific will be the most dynamic of the world Rs.s major regions in 2023, predominantly driven by the buoyant outlook for China and India, which will be the major contributors to global economic growth in 2023.

(Source: IMF Report - World Economic Outlook April 2023)

Indian Economic Review

India continues to be among the fastest growing economies in the world and emerged as the shining beacon in a grim global scenario. The Indian economy exhibited robust resilience in FY 2022-23 amidst global turmoil. India Rs.s real GDP growth Is estimated at 7.2% in FY 2022-23 as against 9.1% in FY 2021-22 and reflects relatively robust domestic consumption and lesser dependence on global demand. Domestic economic growth Is gaining strength and further traction in 2023. However, higher inflation remains a challenge and headline inflation increased to 6.7% in FY 2022-23 from 5.5% in FY 2021-22. Following the gradual normalisation of global supply chains, softening of global commodity prices, and successive hikes in the policy repo rate by 250 basis points in FY 2022-23 by the Reserve Bank of India (RBI), the wholesale price index (WPI) inflation subsided to -3.48% (provisional) in May 2023 against -0.92% recorded in April 2023.

The core industries registered a combined ICI (Index of Eight Core Industries) increase of 7.6% (provisional) during FY 2022-23 compared to the corresponding period of last year. Further, the gross Goods and Services Tax (GST) revenue collection in May 2023 was Rs. 1.57 trillion, with 12% Y-o-Y growth. According to the IMF, India Rs.s GDP per capita at current prices Is USD 2,600 in CY 2023. Factors such as agriculture and rural development and employment opportunities through MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) and Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM) are contributing to the increase of rural income and productivity. Due to increasing disposable income levels and improved affordability, there Is a surge in household consumption in both urban and rural regions, boosting the demand across sectors.

According to the IMF, the Indian economy Is expected to advance steadily at 5.9% in FY 2023-24 before rising to 6.3% in FY 2024-25. The economic growth will be supported by a conducive domestic policy environment, driven by higher capital expenditure, the government Rs.s thrust on domestic manufacturing and infrastructure development, growthenhancing policies such as production-linked incentives (PLI) scheme, Rs.Make in India Rs. and Rs.Atmanirbhar Bharat Rs., strong domestic consumption, technology-enabled development, revival in credit growth, and energy transition among others. In the Union Budget 2023-24, the government has envisaged Rs. 10 lakh crore for the development of the infrastructure sector, which will significantly boost industrial competitiveness and provide a fillip to the growth

momentum. Further, the government Is focussed on the core and emerging sectors by promoting ease of doing business to make India a global manufacturing hub. With its strong fundamentals, massive demographic strengths and multiple growth levers in place, the Indian economy Is poised to reach USD 5 trillion mark by FY 2026-27.

(Source: Ministry of Statistics & Programme Implementation; RBI Annual Report 2022-23; Ministry of Commerce & Industry; Ministry of Finance; IMF Report - World Economic Outlook April 2023)

Industry Review

Indian Gems & Jewellery Industry

The gems and jewellery sector plays a significant role in the Indian economy, contributing around 7% of the country Rs.s GDP and 10% of India Rs.s total merchandise exports. The sector has shown remarkable resilience and perseverance in the face of global challenges. Despite higher inflation and supply chain disruptions, the industry has demonstrated a commendable performance in FY 2022-23. The sector contributes around 29% to global jewellery consumption.

India Is the world Rs.s second-largest gold consumer and the world Rs.s largest diamond cutting and polishing centre. It Is the hub of the global jewellery market because of its low costs and availability of cheap labour. The gems and jewellery sector Is home to more than 3,00,000 gems and jewellery players in India. To keep up with global market trends, India has been deploying modern techniques to its traditional know-how and processes.

The industry Is seeing increased penetration of branded and organised players due to rising brand consciousness, adoption of Western lifestyles by consumers and rising urbanisation. Further, the growing trend of work-from- home has led to significant growth in digital channels and online sales of gems and jewellery.

(Source: Ministry of Commerce & Industry; FDI India)

Gems and Jewellery Exports

India Is a leading exporter of gems and jewellery and its share in the world Rs.s exports of gems and jewellery Is 4.7%. In FY 2022-23, India Rs.s exports of gems and jewellery decreased by 2.94% to USD 38.08 billion compared to USD 39.24 billion in FY 2021-22. However, polished laboratory- grown diamond (LGD), coloured gemstones, plain gold jewellery, silver jewellery and platinum jewellery witnessed a positive export growth rate of 27.85%, 34.83%, 8.74%, 8.03% and 2.49% respectively. Export of cut and polished diamonds in FY 2022-23 declined by 9.78% to USD 22.04 billion compared to USD 24.43 billion in FY 2021-22. India Rs.s major export markets remain the United States, Hong Kong, and UAE. The global economic slowdown impacted the

demand for diamonds in India Rs.s key markets, including USA and China.

The government has declared the gems and jewellery sector as a focus area for export promotion and signed a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) in March 2022, which will provide the industry duty-free access to the UAE market and further boost exports of Indian gems and jewellery. Timely implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) by the Ministry of Commerce & Industry has resulted in a remarkable 17% growth in exports of plain gold jewellery in FY 2022-23. The government targets gems and jewellery exports of USD 100 billion by 2027.

(Source: GJEPC; IBEF; Economic Times)


Gross imports of gems and jewellery registered a decrease of 3.53% Y-o-Y to USD 25.90 billion in FY 2022-23 compared to USD 26.87 billion in FY 2021-22. Imports of rough diamonds stood at USD 17.3 billion as against USD 18.9 billion recorded in the previous year. Cut and polished diamonds saw a decline in imports to USD 1.30 billion from USD 1.48 billion achieved in FY 2021-22. Imports of silver bars have also witnessed negative growth in FY 2022-23 over FY 2021-22. It indicates the diminished supply of raw materials for manufacturing finished gems and jewellery commodities. However, imports of polished lab-grown diamonds, coloured gemstones and silver jewellery have witnessed significant growth in FY 2022-23 over the previous year.

(Source: GJEPC)

Gold Jewellery

India Is the world Rs.s second-largest consumer of gold jewellery and gold Is deeply embedded in Indian culture and purchases are often driven by tradition. Indian households possess a significant amount of gold in the form of jewellery, coins and gold bars. The gold market has experienced rapid change over the last few years due to evolving demographics. Weddings and festivals remain the most important drivers of Indian gold jewellery demand and bridal jewellery alone accounts for at least half of the market share. Moreover, with the current macroeconomic volatility, geopolitical tensions flaring and equity markets giving less returns, people buy gold for investment as it Is considered a safer and good hedge against inflation and recession in India and abroad.

Despite a relatively subdued trade and higher inflation, gold demand in India remained surprisingly resilient compared to pre-pandemic levels. India Rs.s gold demand witnessed a marginal decline of 3% to 774 tonnes in CY 2022 compared to 797.4 tonnes in CY 2021. Total jewellery demand in India

for CY 2022 was down by 2% to 600.4 tonnes compared to 610.9 tonnes In CY 2021. India Rs.s gold demand during January-March CY 2023 fell 17% Y-o-Y to 112.5 tonnes. According to World Gold Council, India Rs.s gold demand Is expected to be muted in CY 2023 due to volatility and a sharp rise in gold prices. The outlook for gold purchases is highly dependent on rupee prices, which show no sign of abating and will act as a deterrent. Factors such as interest rate hikes and the depreciation of the Indian rupee kept gold prices above Rs. 61,500 per 10 grams as of 21st June, 2023, a nearly 19% jump over last year. This impacted consumer sentiment and softened the demand for gold jewellery. Investment demand, primarily gold bars and coins also saw a drop of 17% to 34.4 tonnes during January-March CY 2023 from 41.3 tonnes the same period last year.

India Rs.s Gold Demand

(in tonnes)

Organised Jewellery Industry - India

India Rs.s gems and jewellery industry is still fragmented and dominated by small and medium-sized enterprises. However, the industry has undergone notable changes over the last decade, driven by the growing penetration of organised players, evolving consumer preferences and government regulation that has encouraged the industry to become more organised and regulated.

Established brands are guiding the organised market. With consumers becoming more brand and fashion-conscious, international as well as Indian jewellery brands are introducing a variety of innovative and exquisite designs and products which opens a huge market for branded jewellery in India. National and regional chain stores will continue to gain market share because of their access to credit and large inventory. Organised players have been leveraging their brand equity and quality along with higher spending on branding and marketing to increase their market share and gain competitive advantage against the highly fragmented unorganised jewellers and retailers.

Rating agency ICRA expects the organised jewellery retailers to outpace the gems and jewellery industry in India over the medium term on the back of industry tailwinds in the form of an accelerated shift in market demand from unorganised retailers and planned expansion of retail presence. Rapid urbanisation, favourable demographics, the growing popularity of online sales, innovative product launches, and technological advancements in manufacturing are propelling the growth of the organised jewellery market in India.

(Source: ICRA)

Growth Drivers and Opportunities India emerging as a preferred destination

In recent years, the world has witnessed a shift in the global economic landscape due to geopolitical and trade tensions between major nations. This has led to a surge in the adoption of the China Plus One strategy by multinational corporations, which intend to reduce their dependence on China by diversifying their investments to other nations. India will benefit from this strategy due to its robust manufacturing sector and favourable government policies. It will present significant opportunities for India to enhance its manufacturing capabilities and attract more foreign investment which augurs well for the gems and jewellery sector.

Digital technology and E-commerce expansion

The rise of digital technology will transform the way gems and jewellery are marketed and sold. With more consumers shopping online, retailers are likely to invest in digital platforms and virtual experiences to enhance their customer engagement and sales. Leading players are introducing virtual reality (VR) experiences, through which, customers can select any jewellery, see it from different angles and zoom on it to view intricate designs. Social media will also play a key role in promoting gems and jewellery, with infiuencers and online communities driving demand for specific brands and designs.

Rising demand among the young, middle-class population

The jewellery sector is poised to benefit from a growing population of young, middle-class consumers, increasing disposable incomes and a desire for luxury items and branded jewellery. The millennials, Gen Z and tech-savvy customers are becoming more brand conscious which is boosting the demand for high-quality, branded jewellery. In addition, emerging market consumers for whom established brands inspire trust and a sense of upgraded lifestyle are driving the branded jewellery segment.

Increasing women workforce

The growing percentage of women workforce in India and rising income levels provide them more financial power in purchasing decisions. Increasing income levels of working couples and lifestyle changes have fuelled the demand for gems and jewellery.

Threats and Concerns

Weak demand amidst higher inflation

Record high inflation, tightening of monetary policies and fear of recession are major concerns for the gems and jewellery sector. Persistent inflationary pressure and the rising cost of living have impacted consumer sentiment and reduced spending on luxury and jewellery products.

Huge dependence on imports

Raw materials play a major role in the Indian gems and jewellery industry. India imports nearly 90% of the raw materials, especially rough diamonds and gold bars. Therefore, the industry is vulnerable to any adverse regulations that may limit the raw material supply of diamond and gold jewellery. Excess imports can also cause worry for India when exports make fewer earnings in the foreign exchange.

Unorganised nature

Indian gems and jewellery industry is highly fragmented and unorganised and is majorly dominated by small jewellery shops that are run by families for years. More customers prefer these shops as the price of jewellery is usually higher in the organised market.

Industry Outlook

Economic development and rising income led to changing preferences of Indian consumers who have become more value-oriented and brand conscious. The economic and demographic advantages, shift in consumer preferences and strong government support will benefit the gems and jewellery Industry. In the coming years, growth in the gems and jewellery sector is expected to be driven by the development of large retailers and brands which support increasing the share of the organised market. Retailers are increasingly focussing on expanding into new jewellery categories to attract consumers. Further, jewellery players in India are re-evaluating the brick-and-mortar business model and planning to implement an omnichannel approach with a focus on digital strategy to boost sales. E-commerce opportunities are increasing and as a more robust regulatory structure emerges to support online gold jewellery sales in domestic and overseas markets, manufacturers and retailers will be able to use this to extend their reach.

Considering its tremendous contribution and growth potential in the gems and jewellery sector, various reforms have been undertaken by the government to promote investment and upgrade technology and skills to promote Rs.Brand India Rs. in the international market. Notable initiatives include 100% FDI in the sector under the automatic route, reduction in customs duty on cut and polished diamonds and coloured gemstones, and import duty cuts on gold and silver jewellery. In the Union Budget 2023-24, the government increased the import duty on silver dore, bars, and articles to 10% to align them with that of gold and platinum. The government also proposed a cut in import duty on seeds used to make lab-grown diamonds to boost domestic manufacturing and generate higher employment. The exemption of capital gains tax on the conversion of physical gold to digital form is also a significant step towards promoting digital gold initiatives.

(Source: IBEF; Business Standard)

Company Overview

Tribhovandas Bhimji Zaveri Ltd (TBZ - The Original, hereafter also referred to as the Company) is one of India Rs.s most trusted brands in jewellery with a legacy of over 158 years. The Company has earned the reputation of being a leading player in the organised jewellery market in India. It is engaged in the manufacturing and selling of an exquisite array of handcrafted gold, diamond, jadau, and platinum jewellery. It has remained faithful to fundamentals of originality, innovation, design, quality, purity and craftsmanship across its business.

A pioneering and trendsetter in the industry, TBZ - The Original has been at the forefront of designing jewellery collections in intricate designs and exclusive styles that exude class and elegance. It manufactures all kinds of jewellery, from exquisite collections for weddings, festivals and special occasions to contemporary, lightweight and sleek designs for daily wear. Each piece of jewellery is exclusively and meticulously tailored and crafted to embody perfection to enhance the beauty of the wearer and surpass the expectations of the customers.

TBZ - The Original was the first in India to introduce 100% BIS hallmarked 22 karat gold jewellery, provide certified solitaire diamonds and offer lifetime buyback scheme on gold and diamond jewellery. It was also the first to promote the concept of lightweight precious jewellery in India. The Company continues to build on its legacy and currently operates 32 retail stores across 25 cities and 12 states in India. These stores are supported by well-trained and knowledgeable personnel who deliver memorable experiences to the patrons which enabled the Company to win consumer loyalty and enhance business performance.

The Company Rs.s state-of-the-art manufacturing facility is located in Kandivali, Mumbai. At the facility, traditional craftsmanship is combined with modern techniques to create unique jewellery designs that blend tradition with contemporary aesthetics. The Company consistently invests in research and development to innovate and update its product portfolio and to remain abreast with emerging trends and technologies.

Product Portfolio

The Company has an extensive and diverse product portfolio at varied price points that match the aspirations and expectations of the diversity of its patrons across

ages, categories and from all walks of life. Its aesthetically designed jewellery collections include delicate and understated pieces to bold and extravagant designs and are crafted to create a lasting impression. The Company continues to build on its portfolio by adding new products every year.

Its exquisite jewellery range and brand experience have enabled it to build a deep emotional connect with customers. Its product portfolio is designed in-house by a team of expert designers and artisans who create a wide range of new jewellery lines each year to cater to evolving customer preferences and market trends.

Product Category

Product Range Product Style

Gold, Diamond, Jadau and Platinum Jewellery

Rings, Earrings, Necklaces, Mangalsutra, Pendants, Bangles, Bracelets, Coins Plain gold, diamond-studded, precious and semiprecious stone studded, lightweight, contemporary, temple, jadau, plain and diamond-studded platinum jewellery, jewellery with coloured stones in gold and diamond, loose diamond solitaires, loose precious and semiprecious stones

Strong Pedigree

TBZ - The Original has a powerful legacy spanning over 158 years of excellence and expertise in the jewellery business. It was the first jeweller to offer buyback guarantee in 1938 and the first to promote the concept of lightweight precious jewellery in India. Its industry expertise has been passed down through generations and is spearheaded by the fifth generation of the family. It is a renowned and trusted brand that is coveted for innovative and timeless jewellery designs and exemplary craftsmanship.

Strong Brand Value

TBZ - The Original is an age-old established brand and continues to set new benchmarks in the industry, with

its remarkable growth, innovative designs, unrivalled quality and authenticity of products. Its competitive edge is centred around its focus on healthy sales productivity, multigenerational clientele and high footfalls conversion.

Leader in Specialty Wedding and Occasion Jewellery

TBZ - The Original is the leader of jewellery in the Indian market, especially in specialty wedding and occasion jewellery segment. ~ 65% of its sales are wedding and occasion-related purchases. Over the years, it has created a niche in this segment with its unique wedding jewellery collections. The brand has graced Indian weddings for many generations and continually adds new jewellery lines to its vibrant wedding collection every season.

Design Exclusivity

The Company adds 8 - 10 new jewellery lines each year. Its success in unveiling exquisite collections, season after season, is driven by in-house diamond jewellery manufacturing, the creative excellence of its artisans and craftsmen, a team of expert designers, state-of-the-art manufacturing facilities and investment in R&D and modern technology to create a wide range of jewellery, suited to the diverse needs of our customers. This is further strengthened by the Company Rs.s vast network of 150+ vendors who are associated with TBZ for generations and are experts in handmade regional jewellery designs.

Expanding Reach and Scalability

TBZ - The Original continues to build on its legacy and has a pan-India network of 32 stores in 25 cities across 12 states of India. The small stores are located across the city whereas the larger ones are located in standalone high streets in the heart of the city. The attractively designed stores provide an aura of elegance with jewellery effectively put on display for a unique appeal. The jewellery collection and price point vary across these two types of stores with the objective widen the Company Rs.s reach and attract a diverse consumer base.

Generational Clientele

The Company enjoys a loyal base of multigenerational clientele. Its loyal consumers include families purchasing jewellery from TBZ Ltd. for generations and are more likely to continue doing so, resulting in a steady stream of repeat business for the Company.

Enhanced Brand Awareness

A multigenerational client base contributes to TBZ - The Original Rs.s success and brand equity. Older generations share their positive experiences with younger family members, leading to word-of-mouth referrals and increased market visibility for the Company.

Strong Customer Relationships

Multigenerational clientele enables the Company to foster long-term customer relationships. It strives to provide a delightful shopping experience to its esteemed clientele. The Company has well-trained retail staff to cater to customers with sensitive and personalised attention to help them in selecting jewellery to suit their preference, increasing their satisfaction and loyalty. Leveraging families Rs. emotional connections with jewellery, the Company can establish a deeper bond with customers.

Diversified Revenue Streams

The Company diversified its revenue streams by catering to diverse customers with varying preferences and budgets. Diversification helps the Company to mitigate market fluctuations and maintain a stable revenue stream.

Informed Product Development

The Company Rs.s multigenerational and diverse client base provides valuable feedback, offering insights into changing preferences and trends among different age groups. TBZ is constantly striving at achieving better customer feedback to improve customer experience and refine product development and marketing strategies.

Operational Highlights

• Strengthened visibility across social media and digital channels, by launching our collections - Navya, Svara and Kavya on digital mediums only - all of which garnered great response from customers, leading them to drop their leads and walking into the store to enquire/purchase the specific products.

• A promotional shoot of Sara Ali Khan with her mother, Amrita Singh, was carried out for the festive season for both gold and diamond festive Jewellery to target younger as well as elderly consumers. The campaign generated 4.4 million organic views on social media platforms.

• To boost our festive offer, we ran a campaign on digital media (Facebook & Instagram, Google Search and YouTube). The campaign performed exceptionally well with 12.4 million reach, 37.9 million impressions and 2.6 million paid video views. Additionally, we also received a ROI of 15x for the performance marketing campaigns.

• We collaborated with local social media creators and influencers in Q3 for the amplification of our wedding jewellery collections Rs.Leela Rs. and Rs.Maya Rs.. Doing local influencer associations helped us build a stronger connect and influence with the younger TG.

• As a first for us, in Q4, we launched Rs.Hues by TBZ - The Original Rs. on digital platforms through a collaboration with two key influencers to promote our Valentine Rs.s Day collection. The visuals and content created by them became the sole marketing collaterals to promote the collection and its products omni-channel.

Financial Overview

The Company Rs.s total revenue in FY 2022-23 increased by 29.81% to Rs. 2,39,362.59 lakhs as against Rs. 1,84,383.95 lakhs In FY 2021-22.

( Rs. in Lakhs)


FY 2022-23 FY 2021-22

Net Sales

2,39,343.25 1,84,367.96

Total Income from Operations

2,39,362.59 1,84,383.95

Gross Profit

26,652.30 19,727.49


11,496.65 7,235.36


2,421.69 2,225.50

Finance Costs

4,478.25 3,559.90


5,152.58 2,287.58


1,185.17 576.46


3,967.41 1,711.12

Gross Margin

11.13% 10.70%


4.80% 3.92%

Basic Earnings Per Share (EPS) ( Rs.)

5.95 2.56

Dividend Per Share ( Rs.)

1.00 2.50

Net Worth

56,727.17 53,496.82

Short-term borrowings (including working capital loans)

48,607.98 50,891.87


1,22,300.83 1,20,581.30


160.05 161.29

Net Block

15,671.05 14,897.47

Cash and Bank balance

4,546.77 4,531.88

Key Financial Highlights for FY 2022-23 Gross Profit

The Company Rs.s Gross Profit stood at Rs. 26,652.30 lakhs in FY 2022-23 compared to Rs. 19,727.49 lakhs in FY 2021-22, marking a growth of 35.10%.


The EBITDA margin of the Company increased by 58.90% to Rs. 11,496.65 lakhs in FY 2022-23 as against Rs. 7,235.36 lakhs in the previous year.

Profit After Tax (PAT)

Profit After Tax (PAT) in FY 2022-23 increased by 131.86% to Rs. 3,967.41 lakhs compared to Rs. 1,711.12 lakhs in the previous year.

Net Worth

The Company Rs.s Net Worth stood at Rs. 56,727.17 lakhs as on 31st March 2023 as against Rs. 53,496.82 lakhs as on 31st March 2022.


Total Reserves of the Company stood at Rs. 50,054.11 lakhs as on 31st March 2023 as against Rs. 46,823.76 lakhs as on 31st March 2022.


The Company Rs.s total debt stood at Rs. 48,607.98 lakhs as on 31st March 2023 as against Rs. 50,891.87 lakhs as on 31st March 2022.

Key Financial Ratios Standalone Operation as per SEBI Listing Obligations and Disclosure Requirements (Amendment) Regulations, 2018

FY 2022-23 FY 2021-22 Remarks

Interest Coverage Ratio

2.42 1.64 Higher EBIT attributed to improvement of in interest coverage ratio

Current Ratio

1.55 1.49 Decrease in current liability attributed to increase in current ratio

Debt Equity Ratio

0.86 0.95 Decrease in debts and increase in profitability attributed decrease in debt-equity ratio

Operating Profit Margin (%)

4.02% 3.17% Higher EBIT attributed to higher profit margin in current year

Net Profit Margin (%)

1.66% 0.93% Increase in net profit attributed to higher net profit margin in current year

Return on Net Worth (RONW) (%)

7.20% 3.20% Higher PAT for the current year attributed to increase in return on net-worth

Debtor Turnover Ratio

1,489.80 735.84 Increase in operating revenue in current year attributed increase in debtor turnover ratio

Management Outlook

Indian gems and jewellery industry demonstrated resilience and adapted to macroeconomic volatility and challenging business environment. The key to resilience in the industry has been consistent investments in technology to drive efficiency, accelerate digital reach and enhance customer experience. The sector is also witnessing a clear shift towards digital and omnichannel retailing as consumers are increasingly getting comfortable shopping online for luxury items. With the growing adoption of digital platforms, jewellery manufacturers have been increasingly leveraging e-commerce and online channels to cater to evolving customer preferences. Further, the government Rs.s favourable

policy reforms and pick-up in consumer sentiment following the gradual easement of inflation and revival in economic activity are likely to boost the consumption of gems and jewellery.

TBZ - The Original has been embracing digital initiatives and is establishing a robust online presence featuring Rs.shop- from-home Rs. options and video call functionalities to provide its consumers seamless online shopping experience. Moreover, the Company is strategically positioned to capitalise on the remarkable growth of the expanding Indian middle class, which is estimated to grow to 63% by 2047 and their surging aspirations and spending in India.

Risk Management

The Company has established a comprehensive risk management framework for the identification and mitigation of key business risks. The major risks and mitigation strategy of the Company are mentioned below:



Mitigation Strategy


Geopolitical tensions, supply chain disruptions, higher inflationary, monetary tightening and global economic slowdown may reduce consumer spending and impact the growth of the gems and jewellery industry.

The Company is focussed on increasing its geographical footprint, e-commerce expansion, and producing innovative products to strengthen its position in the market. Further, it primarily concentrates on the domestic market and remains protected from the impact of international economic challenges. Moreover, its geographical diversification reduces the dependence on a particular economy in case of adverse events and circumstances in any country.

Risk Risk Impact

Mitigation Strategy

Margin Risk

Volatility in commodity prices and exchange rates may impact the Company Rs.s margins and profitability.

The Company follows a prudent strategy to mitigate the risk of margin pressure and operational inefficiencies. Cost optimisation measures, network expansion through an asset-light franchisee model, inventory procurement through higher exposure to gold loan schemes, and establishing long-lasting relationships with suppliers enable it to efficiently manage volatile markets.

Competition Risk

The gems and jewellery industry faces intense competition from the growing presence of unorganised players. The inability to produce high-quality and aesthetic products at competitive prices may impact the market share and growth of organised players.

The Company Rs.s superior brand recall, unique product portfolio and impeccable track record enable it to establish itself as a leading and preferred jewellery brand in India. Moreover, consistent investments in R&D, product innovation and branding and marketing activities further strengthen its brand positioning and customer connect.

Raw Material Risk

The inability to timely procure raw materials at competitive prices may adversely impact the Company Rs.s operations and profitability.

The Company Rs.s highly skilled and dedicated team and its well-framed central procurement policy ensure judicious inventory management. Leveraging the gold loan scheme and strong relations with prominent suppliers of polished diamonds facilitates a timely and seamless supply of raw materials at competitive rates.

Human Resources

The Company considers its employees as the most important asset and integral to its competitive position. The HR policy of the Company is well-designed and promotes competitiveness and work-life balance. It aims to create a safe, conducive, transparent, and inclusive work environment to boost employee morale and ensure high work productivity. The Company places significant emphasis on maintaining high levels of employee engagement, consistent performance, and an innovative mindset to minimise attrition. Periodic interactive sessions and conversations between the management and employees are organised to foster a growth-oriented culture. In addition, regular skill development and training programmes are conducted for the enhancement of the skills and capabilities of its employees. As on 31st March 2023, the Company had a total of 967 employees.

Internal Controls

The Company has robust and well-framed internal control systems in place commensurate with the size, nature, and complexity of its business. These internal controls encompass various aspects of governance, compliance, audit, control, and reporting. The Company periodically monitors adherence to the internal controls and ensures proper documentation, regular appraisal and updation by the internal and statutory auditors.

These internal controls ensure the following:

• Efficient use and safeguarding of assets

• Stringent adherence to the regulatory requirements

• Reliability, accuracy, and timeliness of financial reporting

The audit firms appointed by the Company closely monitor and review the efficiency of the internal controls and any discrepancies are immediately reported to the management and Audit Committee for appropriate action.

Cautionary Statement

This document contains forward-looking statements about expected future events, financial and operating results of the Company. These forward-looking statements are based on assumptions and the Company does not guarantee the fulfilment of the same. These statements may be subject to risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements as several factors could cause assumptions, actual future results, and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the management Rs.s discussion and analysis of TBZ Limited Rs.s Annual Report 2022-23.