BENGALURU (Reuters) – Indian jeweller Tribhovandas Bhimji Zaveri reported a more than three-fold rise in fourth-quarter profit on Wednesday on a drop in expenses and strong sales.
The company said its consolidated net profit rose to 117.3 million rupees ($1.4 million) for the quarter ended March 31, from 36 million rupees a year earlier.
Gold prices rose sharply in the second half of the January-March quarter, backed by the wedding season and the impending Akshaya Tritiya festival, considered auspicious for investments in the yellow metal, in April.
Analysts expect gold prices to stay near all-time highs in the coming months as central banks stop raising interest rates and investors buy bullion as a hedge against economic uncertainty.
The Mumbai-based jeweller’s total revenue had risen between 6% and 199% in the prior three quarters, rising nearly 8% in the January-March quarter.
Its margins for earnings before interest, tax, depreciation and amortisation (EBITDA) surged to 6.51% from 3.58% a year earlier, aided by an over 22% drop in raw materials costs which constitute more than 63% of the total expenses.
The company’s shares settled unchanged from their previous close ahead of the results.
($1 = 81.7800 Indian rupees)
(Reporting by Ashna Teresa Britto; Editing by Sohini Goswami)