Q3 FY15 Result Update Presentation

Tara Jewels Limited
Tara Jewels factory
SEEPZ, Mumbai
Results Update – February 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.
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9MFY15 - Performance Highlights
 Revenue (excl. Bullion & Others) of Rs. 11,783 mn

Exports of Rs. 10,230 mn

India Retail of Rs. 1,553 mn
 Gross Profit (excl. Bullion & Oths) of Rs. 1,996 mn,
margin of 16.94%
 EBITDA (excl. Bullion & Others) of Rs. 1,180 mn,
margin of 10.0%
 Net Profit of Rs. 338 mn
 Cash Profit of Rs. 557 mn
 Opened 4 additional Shop-in-Shop format outlets
in Shoppers Stop
India Retail
 Total Store Network of 34 Stores
in 30 cities in 11 states

10 Shop-in-Shop format outlets
in Shoppers Stop

24 Operating Format Stores
 Online exclusively with Amazon
 Satyug Golds official Jewellery
redemption partner
Exports
 Total Order Book: Rs. 4,317 mn

Confirmed Orders: Rs. 3,383 mn

Framework Orders: Rs. 934 mn
3
Consolidated Performance
Rs mn
Sales (excl. Bullion & Others)
EBITDA (excl. Bullion & Others)
PAT
-5%
-11%
-27%
5,054
4,802
Q3FY14
Q3FY15
567
503
Q3FY14
Q3FY15
221
162
Q3FY14
Q3FY15
Sales (excl. Bullion & Others)
EBITDA (excl. Bullion & Others)
PAT
-1%
-3%
-24%
11,866
11,783
1,221
1,180
447
338
9MFY14
9MFY15
9MFY14
9MFY15
9MFY14
9MFY15
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Strategic Initiatives...
Co-branding for International Brands
 Zac Posen, a luxury brand in women's fashion and Tara have signed a partnership to produce fine jewellery
under the brand Zac Posen
 Zac Posen is being sold by one of the Largest Online Retailer and High End Jewellery Chain Store
 Received permission from its owners to sell “Dancing With The Stars” as s jewellery Brand to one of the
largest Departmental Stores
Asset Light Domestic Model
 10 Shop-in-Shop format outlets in Shoppers Stop
 4 new outlets opened in : Alpha One Mall –
Amritsar; Prozone Mall – Aurangabad; Eros
Mall – Delhi; The Great Indian Place – Noida
 Star Princess Pvt Ltd., the distributor of Tara
Jewels has tied up with Amazon to launch the
brands collection online
 Collection would range from daily wear to
International Bestsellers
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E-Retail - Exclusively at Amazon.in
Asset Light expansion Strategy
 Star Princess Pvt Ltd., the distributor of Tara
Jewels has tied up with Amazon to launch the
brands collection online
 Collection ranging from daily wear, signature
collections such as Heart Embrace & Fleur to
International Bestsellers



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
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Retail Business expansion – Shop in Shop Format ..
Asset Light expansion Strategy
 Launches Four New Shop-in-Shop Format
Outlets at Shoppers Stop
 Total Ten Outlets
 Location :

DB City Mall – Bhopal

Ambuja City Center –Raipur

Elante Mall-Chandigarh

Alpha One Mall – Amritsar

BPK Star Building – Indore

Prozone Mall – Aurangabad

World Trade Park - Jaipur

Eros Mall – Delhi

MBD Neopolis Mall – Jalandhar 
The Great Indian Place – Noida
 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
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Consolidated Financials
International Business growing at a fast Clip
Revenue Breakup
International
Retail
 Revenue Trend has an element
of Seasonality
4,151
 ~60% of Revenue in last year
was generated in H2FY14
3,472
2,607
 The peak season starts in
November with Thanksgiving in
the Western Countries followed
by Christmas in December
524
Q1 FY15
379
Q2 FY15
651
Q3FY15
 Positive Outlook : Revival in the
Global Economic Trend coupled
with the New Year Enthusiasm
on the Cards
Large Dependence on the International Business helped the Company grow
during turmoil in the Domestic Market
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Segmental Breakup*
9MFY15 Sales: Rs. 11782.8 mn
9MFY15 Gross Profit^: Rs. 1995.5 mn
India Retail
20%
India Retail
13%
International
Business
87%
International
Business
80%
* - Excluding Bullion & Others
^ - Gross Profit = Sales – (Consumption + Direct Expenses)
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Consolidated Quarterly P&L
Rs. mn
Q3FY15
Q3FY14
Y-o-Y
Q2FY15
Q-o-Q
4,802
5,054
-5%
3,851
25%
218
0
0
Total Income
5,020
5,054
3,851
Raw Material
3,863
3,867
3,075
Purchase of Bullion & Others
217
0
0
Employee Expenses
146
144
129
Other Expenses
290
476
278
Sales
Sales from Bullion & Others
EBITDA
504
567
503
567
369
10.5%
11.2%
9.6%
Other Income
12
9
12
Interest
198
185
169
Depreciation
87
66
32%
69
26%
PBT
230
325
-29%
142
62%
Tax
68
104
PAT
162
221
PAT Margin
3.2%
4.4%
Cash Profit
249
287
- EBITDA excl. Bullion & Others
- EBITDA Margin excl. Bullion & Others
-11%
369
37%
Depreciation
computation
based on
schedule II of
New
Companies Act
2013
36
-27%
106
53%
2.7%
-13%
175
42%
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Consolidated 9 Months P&L
9MFY15
9MFY14
Y-o-Y
FY14
11,783
11,866
-1%
16,767
290
65
187
Total Income
12,073
11,931
16,954
Raw Material
9,385
9,240
13,424
Purchase of Bullion & Others
289
65
181
Employee Expenses
402
412
563
Other Expenses
815
993
1,210
Rs. mn
Sales
Sales from Bullion & Others
EBITDA
1,181
1,221
-3%
1,576
- EBITDA excl. Bullion & Others
1,180
1,221
1,570
- EBITDA Margin excl. Bullion & Others
10.0%
10.3%
9%
Other Income
34
37
54
Interest
518
450
651
Depreciation
219
160
37%
215
PBT
477
648
-26%
764
Tax
139
201
PAT
338
447
PAT Margin
2.8%
3.7%
Cash Profit
557
608
Depreciation
computation
based on
schedule II of
New
Companies Act
2013
260
-24%
504
3%
-8%
719
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International Business
International Business: 9 Month Performance
Rs mn
Sales
Gross Profit
EBITDA
0%
-1%
-1%
10,277
10,230
1,612
1,596
1,046
1,031
9MFY14
9MFY15
9MFY14
9MFY15
9MFY14
9MFY15
Inventory Days (Sales)
156
Dec. ’13
Creditor Days (Sales)
140
93
Dec. ’14
Dec. ’13
Debtor Days (Sales)
72
96
Dec. ’14
Dec. ’13
112
Dec. ’14
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International Business: Margin Analysis
EBITDA Margin
Operating Cost
Selling & Distribution Cost
Employee Cost
Admin Cost
10.2%
9MFY14
10.1%
9MFY15
5.5%
5.5%
1.0%
1.0%
1.3%
1.3%
3.2%
3.2%
9MFY14
9MFY15
100% of revenue generated from International Business is from Diamond
Studded Jewellery
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Current Order Book
Combined Order Book
(Rs. mn)
4,317
934
3,383
Confirmed Orders
Framework Orders
Combined Orders
Order book as on 31st December 2014; 1 USD = Rs. 63.2
* Framework Orders - Contracts where Metal Prices are yet to be finalized
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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
 Launching in 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
 Received permission from its owners to sell “Dancing With The Stars”
as a jewellery brand to one of the largest Departmental Stores
 The Angel Sanchez Collection is being considered by the one of the
largest specialty fine jewelry companies in US
…Strategically aligns our offerings with Clients Business Model
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International branding efforts
Our Brand tie-ups available
on
www.bluenile.com
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India Retail
Re-strategizing the Retail Business
Operational
Store Profitability
 Relocate/ Closure of less-profitable stores
 Widen Presence in Tier II –V Cities
 Small Format Stores - Limited Inventory and
Operating Costs
Strategic
 Achieve Faster Expansion & Better Returns
 Expand the Brand more rapidly
 Streamline the Store Operations and
Manage the Unit Economics
Asset Light – Franchise Model
Product Mix
 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
Shop-in-Shop
....to maintain Profitable Growth
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India Retail: 9 Month Performance
Rs mn
Sales
Gross Profit
EBITDA
-2%
-14%
-14%
1,589
1,553
463
9MFY14
9MFY15
9MFY14
Inventory Days (Sales)
9MFY15
Creditor Days (Sales)
204
Dec. ’13
399
144
33
Dec. ’14
Dec. ’13
173
9MFY14
148
9MFY15
Debtor Days (Sales)
42
3
3
Dec. ’14
Dec. ’13
Dec. ’14
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India Retail: 9 Month Margin Analysis
Gross Margin
Gold
Product Mix
Diamond
43%
11%
Gold
38%
44%
41%
56%
59%
9MFY14
9MFY15
8%
9MFY14
9MFY15
Diamond
EBITDA Margin
Operating Cost
Selling & Distribution Cost
Employee Cost
Admin Cost
10.90%
9MFY14
9.55%
9MFY15
18.3%
4.3%
16.2%
3.8%
8.5%
7.4%
5.5%
5.0%
9MFY14
9MFY15
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For further information, please contact:
Company :
Investor Relations Advisors :
Tara Jewels Limited
CIN: L52393MH2001PLC131252
Strategic Growth Advisors Pvt. Ltd.
CIN: U74140MH2010PTC204285
Mr. Sanjay Sethi, Director-Finance
[email protected]
Ms. Payal Dave / Mr. Jigar Kavaiya
[email protected] / [email protected]
www.tarajewels.in
www.sgapl.net
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