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

Tara Jewels Limited Tara Jewels factory SEEPZ, Mumbai Results Update – August 2015

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 or 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. 2

Q1 FY16 - Performance Highlights India Retail  Revenue (excl. Bullion & Others) of Rs. 3,099mn  Total Store Network of 30 Stores in 27 cities in 10 states  Exports of Rs. 2656 mn  19 Operating Format Stores  11 Shop-in-Shop format outlets  India Retail of Rs. 443 mn in Shoppers Stop  Online presence on Amazon.in &  Gross Profit (excl. Bullion & Oths) of Rs. 522 mn, Snapdeal.com through margin of 16.8% distributor  EBITDA (excl. Bullion & Others) of Rs. 317 mn, Exports margin of 10.2% expansion of 40 bps  Total Order Book: Rs. 8,290 mn  Net Profit of Rs. 72 mn growth of 3%  Confirmed Orders: Rs. 2,210 mn  Cash Profit of Rs. 133 mn  Framework Orders: Rs. 6,080 mn 3

Revenue Breakup Rs Mn International Retail 2,656 2,607 +2% 524 443 -15% Q1 FY15 Q1 FY16 4

Segmental Breakup* Q1FY16 Sales: Rs. 3,099 mn Q1FY16 Gross Profit^: Rs. 522 mn India Retail India Retail 19% 14% International International Business Business 86% 81% * - Excluding Bullion & Others ^ - Gross Profit = Sales – (Consumption + Direct Expenses) 5

International Business

Progress made towards Branding Efforts  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  The Angel Sanchez Collection is being considered by the one of the largest specialty fine jewelry companies in US  Cherished Hearts is being sold by one of the biggest mid-range department store in US  ‘Heart 2 Heart’ is being sold by one of the largest departmental store in US …Strategically aligns our offerings with Clients Business Model 7

International branding efforts Our Brand tie-ups available on: www.bluenile.com www.helzberg.com www.kay.com www.amazon.in www.snapdeal.com 8

Current Order Book Combined Order Book (Rs. mn) 8,290 6,080 2,210 Confirmed Orders Framework Orders Combined Orders Order book as on 30 th June 2015; 1 USD = Rs. 62 * Framework Orders - Contracts where Metal Prices are yet to be finalized 9

International Business: Q1 FY16 Performance Rs mn Sales Gross Profit EBIDTA PAT +2% +2% +1% -4% 441 2,656 259 63 2,607 421 254 62 Q1FY15 Q1FY16 Q1FY15 Q1FY16 Q1FY15 Q1FY16 Q1FY15 Q1FY16 Inventory Days (Sales) Creditor Days (Sales) Debtor Days (Sales) 200 82 149 177 71 97 Quarter Quarter Quarter Quarter Quarter Quarter Ended Jun. ’14 Ended Jun. ’15 Ended Jun. ’14 Ended Jun. ’15 Ended Jun. ’14 Ended Jun. ’15 10

International Business: Margin Analysis EBITDA Margin Operating Cost Selling & Distribution Cost Admin Cost Employee Cost 9.7% 9.8% 7.2% 6.1% 1.2% 1.1% 2.2% 1.2% 3.8% 3.8% Q1FY15 Q1FY16 Q1FY15 Q1FY16 100% of revenue generated from International Business is from Diamond Studded Jewellery 11

India Retail

Re-strategizing the Retail Business Store Profitability Product Mix  Focus on High Margin Products Operational  Widen Presence in Tier II – V Cities  Diamond Jewellery, Kundan Jewellery  Small Format Stores - Limited Inventory and and Make to Order Jewellery Operating Costs  Reduce the sale of plain Gold Jewellery  Lower Inventory Requirement  Achieve Faster Expansion & Better Returns Strategic  Captures footfalls of Malls/Large Stores  Expand the Brand more rapidly  Limited Operating Costs - Benefits from  Streamline the Store Operations and store advertising & promotions, Low Staffing Manage the Unit Economics Cost etc Asset Light – Model Shop-in-Shop ....to maintain Profitable Growth 13

Retail Business expansion – Shop in Shop Format .. Asset Light expansion Strategy  Total of 11 Outlets in Shop-in-Shop Format Outlets at Shoppers Stop  Location :  Ambuja City Center – Raipur  DB City Mall – Bhopal  Alpha One Mall – Amritsar  Elante Mall-Chandigarh  Prozone Mall – Aurangabad  BPK Star Building – Indore  Eros Mall – Delhi  World Trade Park - Jaipur  The Great Indian Place – Noida  MBD Neopolis Mall – Jalandhar  Inorbit Mall – Vashi, Mumbai  Lower Inventory Requirement  Captures footfalls of Malls/Large Stores  Limited Operating Costs - Benefits from store advertising & promotions, Low Staffing Cost ....in line with out strategy to expand retail footprint through Asset Light Model 14

E-Retail Asset Light expansion Strategy  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  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 15

India Retail: Q1 FY16 Performance Rs mn Sales Gross Profit EBIDTA PAT -31% -15% +20% +8% 146 524 58 10 54 443 8 100 Q1FY15 Q1FY16 Q1FY15 Q1FY16 Q1FY15 Q1FY16 Q1FY15 Q1FY16 Inventory Days (Sales) Creditor Days (Sales) * Debtor Days (Sales) 204 120 4 161 48 1 Quarter Quarter Quarter Quarter Quarter Quarter Ended Jun. ’14 Ended Jun. ’15 Ended Jun. ’14 Ended Jun. ’15 Ended Jun. ’14 Ended Jun. ’15 16 * Gold now acquired under gold on loan scheme

India Retail : Q1 FY16 Margin Analysis Operating Cost Margins (%) Gold Diamond Selling & Distribution Cost Admin Cost Employee Cost 39 17.59% 38 4.47% 13 8 Q1 FY15 Q1 FY16 EBITDA Margin 9.42% 7.91% 1.13% 13.16% 5.23% 10.26% 5.21% 3.06% Q1FY15 Q1FY16 Q1FY15 Q1FY16 Asset Light Model drives better margin 17

Consolidated Financials

Consolidated Quarterly P&L Q1FY15 FY15 Rs. mn Q1FY16 Y-o-Y Sales 3,099 3,130 -1% 17,063 Sales from Bullion & Others 0 72 2,90 Total Income 3,099 3,202 -3% 17353 Raw Material 2,496 2,447 13,962 Purchase of Bullion & Others 0 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 19