Jewellery retailer Tara Jewels has recorded net profit of Rs 504 million and a PAT margin of 3.0 percent for the year ended March 31, 2014. The company earned consolidated sales (Excl. Bullion) of Rs. 16,767 mn in FY14 as against Rs 15,604 mn in FY13, a year-on-year growth of 7 percent. EBITDA (Excl. Bullion) stood at Rs 1,570 mn; an EBITDA Margin of 9 percent.
Commenting on the results, Rajeev Sheth, Chairman and Managing Director,Tara Jewels, said: “Our performance showcases the merit of our business model- a strong focus on international markets even as we restrategize our domestic retail business. The international business has seen substantial growth with the world’s largest retailers continuing to repose their faith in us by way of repeat orders. Our focus on selling branded and co-branded products has yielded rich dividends. We are progressing well with brands that we have like Monique Lhullier, Michael Beaudry, Heart Essence, and Zac Posen. Going forward we will continue to expand our portfolio with branded products contributing more to sales than co-branded ones. In India, the shift in our strategy towards the asset light franchisee model will help us expand our retail footprint faster and deliver better as well as accelerated returns to our shareholders.”
Vikram Raizada, Executive Director and Chief Executive Officer (Retail), Tara Jewels, added: “The retail business has been facing a challenging regulatory environment in India and its performance must be seen in this context, we have adapted to this environment by shifting the focus from gold centric jewellery to studded diamond jewellery. We are also conserving our capital by opting for the asset light franchise model which will be rolled out this year.”
International Business of the company grew by approx 9 percent on a year-on-year basis. According to the company officials, there was an increased demand from USA followed by China and Australia. Tara Jewels decided to re-strategise the Indian retail business to adapt to the current regulatory environment. In the medium- to- long term, the company proposes to continue to expand its retail footprint through asset light franchisee model and shop-in-shop format.