Thangamayil Jewellery (THANGAMAYL) Q4 10/11 earnings summary

Executive summary

• FY2010-11 delivered record turnover of ₹65,826.24 lakh, up 45.82% YoY, and PAT of ₹3,133.23 lakh, supported by volume growth and retail expansion.

• Gold jewellery sales volume rose 20% to 3,145 kg; two new outlets opened in Tuticorin and Madurai Anna Nagar, bringing the network to nine outlets.

Financial highlights

• Sales and other operating income reached ₹65,826.24 lakh vs ₹45,140.57 lakh; EBITDA increased to ₹5,841.73 lakh from ₹3,092.04 lakh.

• PBT was ₹4,704.31 lakh vs ₹2,351.40 lakh; PAT was ₹3,133.23 lakh vs ₹1,608.52 lakh.

• Weighted-average EPS rose to ₹22.84 from ₹16.46; total dividend was ₹5 per share, including interim ₹4 and recommended final ₹1.

Outlook and guidance

• Plan to expand from nine outlets to 15 locations by March 2012, with nine additional locations targeted during FY2011-12.

• Five-year plans include Tamil Nadu town and city branches, diamond and precious-stone jewellery, franchise outlets, and deeper rural penetration.

• Management cited ₹239 crore in sanctioned working-capital limits, ₹121.43 crore utilized, and available internal accruals and unutilized IPO proceeds to support expansion and working capital.