Indian jeweller Tribhovandas Bhimji Zaveri reported a nearly five-fold jump in first-quarter profit, as higher margins from premium pricing and lower expenses banded together to make up for its first revenue fall in 10 quarters. The company said its consolidated net profit rose to $1.38 mn for the quarter that ended June 30, from $ 0.27mn a year earlier.
It had posted a more than three-fold jump in profit in the January-March quarter. However, the company's total expenses fell 3.7% as the cost of materials consumed, which forms more than 50% of the total expenses, fell 5.6%.
Demand for gold remained strong in the quarter, especially around the Akshaya Tritiya festival in April, considered auspicious for gold investments. This led to jewellers charging a premium for the yellow metal during most of the quarter, driving their margins higher.
Tribhovandas's margins for earnings before interest, tax, depreciation and amortisation (EBITDA) surged to 5.65% from 3.22% a year earlier, helped by strong pricing.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
