India’s Tribhovandas Bhimji Zaveri posts higher Q2 profit as diamond outshines

BENGALURU (Reuters) – Indian jeweller Tribhovandas Bhimji Zaveri reported a near 65% rise in second-quarter profit on Monday, buoyed by lower expenses and strong diamond demand.

The company said its consolidated net profit rose to 90.1 million Indian rupees ($1.08 million) for the quarter ended September 30, from 54.7 million rupees a year earlier.

The growth in its diamond jewellery segment remained steady that helped cushion the blow from higher gold prices on the margins, Tribhovandas said.

Its total expenses fell nearly 11.5% from a year-ago quarter.

But for the second time straight, the gold and diamond jewellery maker saw lower sales with total revenue from operations down 10.5% at 4.81 billion rupees in the September quarter, compared with last year.

Gold prices rose to near record highs of 61,845 rupees per 10 grams this year, dampening retail demand during the festive season in India – the world’s second-largest gold consumer.

Mumbai-based Tribhovandas said it expects to see steady growth in December quarter on the back of robust demand during the traditional wedding season.

On a sequential basis, the company’s results compare with June quarter that saw a nearly five-fold rise profit but posted a fall in revenue for the first time in 10 quarters.

Its larger rival Titan last week reported a 9.7% rise in quarterly profit, beating analysts’ estimates, on strong demand for its Tanishq gold jewellery. Kalyan Jewellers India and PC Jeweller are yet to report their quarterly results later this month.

Shares of Tribhovandas closed 7% higher at 136.1 rupees ahead of the results.

($1 = 83.1880 Indian rupees)

(Reporting by Ashna Teresa Britto; Editing by Shweta Agarwal)