India's Tribhovandas Bhimji Zaveri posts higher Q2 profit as diamond outshines

Tribhovandas Bhimji Zaveri

06/11/2023 11:31

BENGALURU, Nov 6 (Reuters) - Indian jeweller
Tribhovandas Bhimji Zaveri  TBZL.NS  reported a near 65% rise in
second-quarter profit on Monday, buoyed by lower expenses and
strong diamond demand. 
    The company said its consolidated net profit rose to 90.1
million Indian rupees ($1.08 million) for the quarter ended
September 30, from 54.7 million rupees a year earlier.
    The growth in its diamond jewellery segment remained steady
that helped cushion the blow from higher gold prices on the
margins, Tribhovandas said.   
    Its total expenses fell nearly 11.5% from a year-ago
quarter.
    But for the second time straight, the gold and diamond
jewellery maker saw lower sales with total revenue from
operations down 10.5% at 4.81 billion rupees in the September
quarter, compared with last year.  
    Gold prices rose to near record highs of 61,845 rupees per
10 grams this year, dampening retail demand during the festive
season in India - the world's second-largest gold consumer. 
    Mumbai-based Tribhovandas said it expects to see steady
growth in December quarter on the back of robust demand during
the traditional wedding season.
    On a sequential basis, the company's results compare with
June quarter that saw a nearly five-fold rise profit but posted
a fall in revenue for the first time in 10 quarters. 
    Its larger rival Titan  TITN.NS  last week reported a 9.7%
rise in quarterly profit, beating analysts' estimates, on strong
demand for its Tanishq gold jewellery. Kalyan Jewellers India
 KALN.NS  and PC Jeweller  PCJE.NS  are yet to report their
quarterly results later this month.
    Shares of Tribhovandas closed 7% higher at 136.1 rupees
ahead of the results.
    

($1 = 83.1880 Indian rupees)

 (Reporting by Ashna Teresa Britto; Editing by Shweta Agarwal)
 ((AshnaTeresa.Britto@thomsonreuters.com;))