Thangamayil Jewellery (THANGAMAYL) Q4 11/12 earnings summary

Executive summary

• FY12 sales and other operating income reached ₹1,131.62 crore, up 72% YoY; EBITDA rose 102% to ₹118.06 crore and PAT increased 89% to ₹59.06 crore.

• Six new stores opened during FY12; sales volume rose 31% to 4,107 kg, with growth supported by new outlets and full-year contributions from stores opened earlier.

Financial highlights

• Revenue from operations was ₹1,131.51 crore versus ₹657.88 crore; total revenue including other income was ₹1,131.62 crore versus ₹658.26 crore.

• PBT was ₹87.35 crore versus ₹47.04 crore; tax expense was ₹28.29 crore versus ₹15.71 crore; PAT was ₹59.06 crore versus ₹31.33 crore.

• Basic and diluted EPS was ₹43.05 versus ₹22.84; no fresh share capital was issued during FY12.

• Inventories rose to ₹369.23 crore from ₹207.75 crore, reflecting additional branches and higher gold prices.

Outlook and guidance

• Plans called for up to 12 additional Tamil Nadu branches in FY13, with rural and semi-urban expansion, silver products, and customer-care or franchise formats under consideration.

• FY13 working-capital bank sanctions and enhancement proposals totalled ₹406 crore; internal accruals and undrawn limits were expected to support expansion and working-capital needs.

• Management expected interest rates to ease by at least 200 bps in FY13 and anticipated savings from a judicious mix of cash credit and metal loans.