Jewellery retailer Tribhovandas Bhimji Zaveri (TBZ) today posted a sharp drop in standalone net profit by 97.49 per cent at Rs 52.20 lakh for the first quarter of this fiscal due to poor sales.
The company had reported a net profit of Rs 20.77 crore in the April-June quarter of the last year.
In a filing to the BSE, the company said net sales declined to Rs 432.26 crore in the first quarter of the 2014-15 fiscal from Rs 532.95 crore in the year-ago period.
The financial cost also increased to Rs 12.90 crore from Rs 7.80 crore in the review period.
However, the company's overall expenses remained lower at Rs 421.23 crore in April-June of this year, as compared to Rs 494.89 crore in the year-ago.
In the filing, the company said its board in a meeting tody decided to cancel the proposal of merger of two of its wholly-owned subsidiaries -- Tribhovandas Bhimji Zaveri (Bombay) Limited and Konfiaance Jewellery -- with the parent company Tribhovandas Bhimji Zaveri.
The proposal for merger was approved by the board on May 28, 2013.
