Tribhovandas Bhimji Zaveri dips 16% on disappointing Q2 results

The stock dipped 16% to Rs 116 on the BSE in early morning trade after the company reported 90% fall in its standalone net profit at Rs 80 lakh in Q2FY18.

Tribhovandas Bhimji Zaveri (TBZ) dipped 16% to Rs 116 on the BSE after the company reported 90% fall in its standalone net profit at Rs 80 lakh in September quarter (Q2FY18), due to poor operational performance. It had profit of Rs 7.89 crore in the same quarter last fiscal.

Total income from operations declined 27% to Rs 326 crore in Q2FY18 against Rs 447 crore in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, taxes, depreciation and amortization) margin down to 5.29% in Q2FY18 from 3.66% in Q2FY17.

A notification issued under The Prevention of Money Laundering Act that mandated the Gems & Jewellery sector to ask for and collect KYC details from customers for purchase above Rs 50,000 and report such transaction, severally impacted the jewellery sales during Navratri and Dussehra, said Shrikant Zaveri, chairman and managing director of TBZ.

Post the notification being revoked in the first week of October, sales have picked up and we have performed better during the October and November. We expect the momentum to continue as we enter the wedding season and are optimistic of displaying an improved performance in the second half of this financial year, he added.

At 01:11 PM; the stock was down 10% at Rs 124 on the BSE, as compared to 0.87% decline in the S&P BSE Sensex. The trading volumes on the counter surged more than three-fold with a combined 4.67 million shares changed hands on the NSE and BSE so far.