ICRA, a leading credit rating agency, has awarded Indian company Tribhovandas Bhimji Zaveri Limited (TBZ) a consolidated "Issuer Rating" of [ICRA] A- (Stable). This assignment leans heavily on the company's established reputation in the jewellery retail sector, built over the years by the promoters' industry know-how.
TBZ's financial steadiness, marked by its conservative capital approach, also played a significant role. Over recent years, TBZ's capital structure has seen a marked improvement due to substantial additions to its reserves and a lesser reliance on external borrowing.
The rating rationale highlights TBZ's robust financial stance, underscored by its absence of long-term debts. The majority of the company's liabilities stem from working capital borrowings. TBZ's financial metrics show potential for further enhancement, driven by robust demand and growth in revenues and profits. Emphasized in the rationale is TBZ's impressive 30% YoY revenue growth and the doubling of its profit after tax (PAT) in FY2023.
Shrikant Zaveri, Chairman & Managing Director, TBZ said: "ICRA's Stable outlook for TBZ's long-term rating underscores expectations that the company will continue to benefit from favourable market conditions, its strong market position, and a substantial share of studded jewellery in its revenue mix."
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
