Tribhovandas Bhimji Zaveri (TBZ) reported a huge setback in its operations in the fourth quarter, ended March 2016. The Mumbai-based jewellery retailer posted a net loss of Rs. 17 crore as against a net profit of Rs. 18.50 crore in the corresponding period last fiscal. The company attributed the lacklustre performance to the nationwide jewellers' strike in March.
The TBZ stock was trading at Rs. 67.90 at around 12:50 p.m. on Tuesday, down 3.69 percent from its previous close.
Revenues fell 34 percent to Rs. 305 crore during the quarter under review from Rs. 463 crore for the March 2015 quarter, the company said in a regulatory filing to the Bombay Stock Exchange (BSE) on Monday.
"Fourth quarter performance was impacted by the nationwide agitation by gems and jewellery industry in protest against imposition of 1 percent excise duty on jewellery sales, [sic]" Shrikant Zaveri, chairman and managing director of TBZ, said in the regulatory filing.
TBZ reported 14.4 percent decline in revenues to Rs. 1,655 crore and net loss of Rs. 23 crore for 2015-16 as against net profit of Rs. 26 crore in the previous financial.
Shrikant Zaveri expressed hopes of a turnaround in the current fiscal owing to a slew of positive developments.
"Looking into the next year (2016-17), we are optimistic of an improved operational and financial performance. We expect to see growth in jewellery sales in FY17 on the back of redemptions under the re-launched Kalpavruksha Scheme, expectations of a good monsoon, longer wedding season and overall improvement in discretionary demand," he said.
Titan Company Limited, a Tata Group company that derives about 75 percent of its revenues from the jewellery business (Tanishq), will be announcing its results on Friday.
The Titan stock was trading at Rs. 359.30, down 1.83 percent, on the BSE on Tuesday.
Gold prices hit a two-year high on Monday to cross Rs. 30,000 per 10 gm in the Delhi bullion market as demand rose on the eve of the wedding season.