| RBZ Jewellers Limited | ||||||
| Ratings reaffirmed at 'Crisil BBB+/Stable/Crisil A2'; Rated amount enhanced for Bank Debt | ||||||
| Rating Action | ||||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil BBB+/Stable/Crisil A2’ ratings on the bank facilities of RBZ Jewellers Ltd (RBZJL).
The ratings continue to reflect the extensive experience of the promoters in the jewellery industry and the healthy financial risk profile of the company. These strengths are partially offset by large working capital requirement and susceptibility of operating profitability to volatility in gold prices, regulatory changes, intense competition and geographic and customer concentration in revenue. |
Analytical Approach Crisil Ratings has considered the standalone business and financial risk profiles of RBZJL. |
Key Rating Drivers & Detailed Description Strengths: Extensive experience of the promoters: The company is promoted by Mr Rajendra Zaveri and Mr Harit Zaveri. While Mr Rajendra has experience of more than three decades in the jewellery industry, Mr Harit has about a decade of experience. The promoters’ expertise, strong understanding of the market dynamics and healthy relationships with customers and suppliers will continue to support the business. The company has its own manufacturing unit, resulting in better control over costs and increasing profit margin. It supplies to 72 cities across 19 states through jobwork and business-to-business (B2B) route. Revenue increased at compound annual growth rate of 28% in the past three fiscals to Rs 530 crore in fiscal 2025. In fiscal 2026, revenue growth will be mainly driven by increased retail business as the company is planning to open a new showroom in Surat, Gujarat, which is expected to operationalise in the third quarter of the fiscal. Timely debt tie-up for this expansion will remain monitorable.
Healthy financial risk profile: Networth improved to Rs 242.9 crore as on March 31, 2025, driven by healthy profitability. Gearing and total outside liabilities to adjusted networth (TOLANW) ratio were healthy at 0.36 time and 0.44 time, respectively, as on March 31, 2025. Despite the debt-funded capital expenditure planned, gearing is expected at 0.81 time as on March 31, 2027. Debt protection metrics were robust, as reflected in interest coverage and net cash accrual to total debt ratios of 6.5 times and 0.46 time, respectively, in fiscal 2025.
Weaknesses: Large working capital requirement: Gross current assets were at 217 days as on March 31, 2025, driven by inventory of over 229 days. The company has three business segments – business-to-customer (B2C), B2B and jobwork – of which B2C has the largest working capital requirement. Additionally, inventory required for the jobwork segment does not translate into days as only jobwork charges are booked as revenue. Also, the company procured sizeable inventory in the last quarter of fiscal 2024 using IPO proceeds, which led to growth in fiscal 2025. Hence, maintaining a healthy mix of all three segments for controlling working capital and improving operating efficiency will be critical.
Susceptibility of operating profitability to volatility in gold prices, regulatory changes, intense competition and geographic and customer concentration: Intense competition may continue to constrain scalability, pricing power and profitability. Operating performance will remain susceptible to volatility in gold prices and regulatory changes. Moreover, unlike some peers who have strong presence in domestic and international markets, RBZJL is a regional player in the B2C category. The company has only one retail outlet and is expanding its retail presence through two new retail showrooms. |
Liquidity: Adequate Bank limit utilisation was high at 85% on average for the 12 months through June 2025. Cash accrual, expected to be Rs 45-60 crore per fiscal, will sufficiently cover yearly term debt obligation of Rs 1-2 crore over the medium term. In addition, surplus will cushion the liquidity. Current ratio was healthy at 3.15 times as on March 31, 2025. |
Outlook: Stable Crisil Ratings believes RBZJL will continue to benefit from the extensive experience of the promoters and their established relationships with clients. |
Rating sensitivity factors Upward factors
Downward factors
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About the Company RBZJL was incorporated as a private limited company in 2008 and reconstituted as a public limited company on February 25, 2023. Promoted by Mr Rajendra Zaveri and his son, Mr Harit Zaveri, the company manufacturers gold jewellery. It also processes and supplies gold jewellery on jobwork basis to national retailers. It has a retail showroom under the Harit Zaveri brand and a manufacturing unit in Ahmedabad, Gujarat. |
Key Financial Indicators
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Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||
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Criteria Details
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