Jewellery retailer Tribhovandas Bhimji Zaveri (TBZ) plans to triple its retail store space in the next three years to consolidate its position in the Indian jewellery market.

The jewellery retailer is also looking to expand into more cities in the country, reported moneycontrol.com.

TBZ currently operates over 15 retail showrooms in nine cities spread across 5 states, with Maharashtra alone accounting for 40% of its revenues.

Tribhovandas Bhimji Zaveri retail business group head Divyesh Shah told the website that by financial year 2015, the company’s total retail sapce will go up to around 150,000ft² from the current 51,000ft².

In the current financial year TBZ plans to open 12 new outlets, added Shah.

The company reported a net profit of Rs163m ($2.95m) for the first quarter that ended 30 June 2012 (Q1).

The revenues in the April-June period increased at a much slower of 6% quarter-on-quarter to Rs2.84bn ($51.41m).

"Last two quarters have been tough for the jewellery industry.

"Gold volumes are 30-40% lower for the industry. High gold prices and fewer wedding days during the quarter hurt sales."

The wedding season in India accounts for 50-60% of TBZ’s total sales and the company expects a rise in industry volumes in the second half of the year as the wedding season picks up.

TBZ’s EBITDA margin stood at 10.4% with net profit margin at 5.7% during the quarter.

Gold sales currently account for 75% of its sales with the rest 25% comes from diamonds.

The company anticipates a hike in overall sales in diamond category, as the demand for diamonds has been increasing gradually.

The company has reduced discounts to boost bottom-line, added Shah.