Tara Jewels Limited Tara Jewels factory SEEPZ, Mumbai Results - - PowerPoint PPT Presentation

Tara Jewels Limited

Results Update – August 2015

Tara Jewels factory SEEPZ, Mumbai

Safe Harbour

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Tara Jewels Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation

• r invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with

any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company.

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Q1 FY16 - Performance Highlights

 Revenue (excl. Bullion & Others) of Rs. 3,099mn

 Exports of Rs. 2656 mn  India Retail of Rs. 443 mn

 Gross Profit (excl. Bullion & Oths) of Rs. 522 mn, margin of 16.8%  EBITDA (excl. Bullion & Others) of Rs. 317 mn, margin of 10.2% expansion of 40 bps  Net Profit of Rs. 72 mn growth of 3%  Cash Profit of Rs. 133 mn

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 Total Store Network of 30 Stores in 27 cities in 10 states

 19 Operating Format Stores  11 Shop-in-Shop format outlets in Shoppers Stop

 Online presence on Amazon.in & Snapdeal.com through distributor  Total Order Book: Rs. 8,290 mn

 Confirmed Orders: Rs. 2,210 mn  Framework Orders: Rs. 6,080 mn

India Retail Exports

Revenue Breakup

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2,656 2,607 443 524 +2%

• 15%

Q1 FY16 Q1 FY15 International Retail

Rs Mn

Segmental Breakup*

International Business 86% India Retail 14% 5

Q1FY16 Sales: Rs. 3,099 mn Q1FY16 Gross Profit^: Rs. 522 mn

International Business 81% India Retail 19% * - Excluding Bullion & Others ^ - Gross Profit = Sales – (Consumption + Direct Expenses)

International Business

• The Angel Sanchez Collection is being considered by the one of the largest

specialty fine jewelry companies in US

Progress made towards Branding Efforts

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…Strategically aligns our offerings with Clients Business Model

• The Monique Lhuillier Collection is being sold through one of the largest online

retailers

• Considering sale through high-end jewellery chain stores
• Facets by Michael Beaudry is being sold through Broadcast Television Network

and high-end jewellery chain stores

• Heat Essence is currently being sold in speciality jewellery stores in US
• The Zac Posen Collection is being sold by one of the largest online retailers and

high-end jewellery chain stores

• With brands ZAC Zac Posen in fashion, Truly Zac Posen in bridal wear
• Cherished Hearts is being sold by one of the biggest mid-range department store

in US

• ‘Heart2Heart’ is being sold by one of the largest departmental store in US

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International branding efforts

Our Brand tie-ups available on: www.bluenile.com www.helzberg.com www.kay.com www.amazon.in www.snapdeal.com

Current Order Book

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Combined Order Book

* Framework Orders - Contracts where Metal Prices are yet to be finalized

(Rs. mn) Order book as on 30th June 2015; 1 USD = Rs. 62

6,080 8,290 2,210 Confirmed Orders Combined Orders Framework Orders

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Sales Gross Profit PAT Inventory Days (Sales) Creditor Days (Sales) Debtor Days (Sales)

International Business: Q1 FY16 Performance

Rs mn Q1FY15 +2% 2,656 Q1FY16 2,607 177 200 Quarter Ended Jun. ’14 Quarter Ended Jun. ’15 71 82 Quarter Ended Jun. ’15 Quarter Ended Jun. ’14 149 97 Quarter Ended Jun. ’15 Quarter Ended Jun. ’14 Q1FY15

• 4%

421 Q1FY16 441 Q1FY15 +2% 259 Q1FY16 254 63 62 Q1FY15 +1% Q1FY16

EBIDTA

International Business: Margin Analysis

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EBITDA Margin Operating Cost

100% of revenue generated from International Business is from Diamond Studded Jewellery

Q1FY16 Q1FY15 9.7% 9.8% 7.2% 3.8% Q1FY15 1.2% 2.2% 3.8% 1.2% Q1FY16 1.1% 6.1%

Admin Cost Selling & Distribution Cost Employee Cost

India Retail

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Re-strategizing the Retail Business

....to maintain Profitable Growth

Store Profitability Product Mix Asset Light – Model Shop-in-Shop

 Widen Presence in Tier II –V Cities  Small Format Stores - Limited Inventory and Operating Costs  Achieve Faster Expansion & Better Returns  Expand the Brand more rapidly  Streamline the Store Operations and Manage the Unit Economics  Focus on High Margin Products

• Diamond Jewellery, Kundan Jewellery

and Make to Order Jewellery  Reduce the sale of plain Gold Jewellery  Lower Inventory Requirement  Captures footfalls of Malls/Large Stores  Limited Operating Costs - Benefits from store advertising & promotions, Low Staffing Cost etc

Operational Strategic

Retail Business expansion – Shop in Shop Format ..

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Asset Light expansion Strategy

 Total of 11 Outlets in Shop-in-Shop Format Outlets at Shoppers Stop  Location :

 DB City Mall – Bhopal  Elante Mall-Chandigarh  BPK Star Building – Indore  World Trade Park - Jaipur  MBD Neopolis Mall – Jalandhar

....in line with out strategy to expand retail footprint through Asset Light Model

Lower Inventory Requirement Captures footfalls of Malls/Large Stores Limited Operating Costs - Benefits from store advertising & promotions, Low Staffing Cost

  

 Ambuja City Center –Raipur  Alpha One Mall – Amritsar  Prozone Mall – Aurangabad  Eros Mall – Delhi  The Great Indian Place – Noida  Inorbit Mall – Vashi, Mumbai

E-Retail

 The distributor of Tara Jewels has tied up with Amazon and Snapdeal to launch the brands collection online  Collection ranging from daily wear, signature collections such as Heart Embrace & Fleur to International Bestsellers  Launched Unique jewellery collection ‘Anisa’, a range of rings and earrings

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  

No Establishment and Limited Operating Cost Easily adapt to the changing buying behaviour Wide spread penetration & Amazon’s strong logistic capabilities

....in line with out strategy to expand retail presence through Asset Light Model Asset Light expansion Strategy

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Sales Gross Profit PAT Inventory Days (Sales) Creditor Days (Sales) * Debtor Days (Sales)

India Retail: Q1 FY16 Performance

Rs mn

• 15%

443 Q1FY15 Q1FY16 524 161 204 Quarter Ended Jun. ’15 Quarter Ended Jun. ’14 120 48 Quarter Ended Jun. ’15 Quarter Ended Jun. ’14 1 4 Quarter Ended Jun. ’15 Quarter Ended Jun. ’14 146 Q1FY16 Q1FY15

• 31%

100 58 54 Q1FY16 +8% Q1FY15 10 8 +20% Q1FY16 Q1FY15

EBIDTA

* Gold now acquired under gold on loan scheme

India Retail : Q1 FY16 Margin Analysis

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EBITDA Margin Operating Cost

Q1FY16 Q1FY15 13.16% 10.26% Q1FY16 7.91% 4.47% 3.06% 1.13% 17.59% 5.23% Q1FY15 9.42% 5.21% Admin Cost Employee Cost Selling & Distribution Cost

Asset Light Model drives better margin

Margins (%)

8 13 38 39 Q1 FY15 Q1 FY16 Diamond Gold

Consolidated Financials

Consolidated Quarterly P&L

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• Rs. mn

Q1FY16

Q1FY15

Y-o-Y

FY15

Sales 3,099 3,130

• 1%

17,063 Sales from Bullion & Others 72 2,90 Total Income 3,099 3,202

• 3%

17353 Raw Material 2,496 2,447 13,962 Purchase of Bullion & Others 72 289 Employee Expenses 115 127 530 Other Expenses 171 248 986 EBITDA 317 308 3% 1,586

• EBITDA excl. Bullion & Others

317 308 1,585

• EBITDA Margin excl. Bullion & Others

10.2% 9.8% 9.3% Other Income 13 10 53 Interest 171 150 716 Depreciation 61 63 281 PBT 99 105 643 Tax 26 35 206 PAT 72 70 3% 437 PAT Margin 2.3% 2.2% 2.5% Cash Profit 133 133 0% 717

Consolidated Balance Sheet

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• Rs. mn

March 2015 March 2014

Shareholder’s Fund 5,846 5,404 Share capital 246 246 Reserves & Surplus 5,587 5,158 Money received against share warrants 12 Non-Current Liabilities 51 46 Long term borrowings 3 12 Other Non Current Liabilities 48 34 Current Liabilities 7,549 7,510 Short term borrowings 4,097 3,849 Trade Payables 3,017 3,191 Other current liabilities 435 470 Total Liabilities 13,446 12,960

• Rs. mn

March 2015 March 2014

Non-Current Assets 1,247 1,274 Fixed assets 1,129 1,160 Non-current investments 37 37 Deferred tax assets (Net) 39 7 Long-term loans & advances 42 70 Current Assets 12,199 11,686 Inventories 5,764 6,935 Trade receivables 5,337 3,808 Cash and Bank Balances 835 710 Other current assets 262 233 Total Assets 13,446 12,960

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For further information, please contact:

Company : Investor Relations Advisors : Tara Jewels Limited CIN: L52393MH2001PLC131252

• Mr. Sanjay Sethi, Director-Finance

sanjay.sethi@tarajewels.co.in www.tarajewels.in Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285

• Ms. Payal Dave / Mr. Ruchi Rudra

dpayal@sgapl.net / rruchi@sgappl.net www.sgapl.net