Kalyan Jewellers India Ltd. · NSE:KALYANKJIL
Kalyan Jewellers India — Q4 FY2021 Earnings Presentation
39 slides from Kalyan Jewellers India's earnings presentation, May 27, 2021
Slide 1: Exchange cover letter: Investors/Analysts Presentation
SEC/18/2021 May 27, 2021 BSE Limited National Stock Exchange of India Ltd. 1st Floor, New Trading Ring, Bandra - Kurla Complex Rotunda Building, P J Towers, Dalal Bandra (E), Street, Mumbai – 400001, Mumbai- 400051, Maharashtra Maharashtra Scrip code: 543278 Scrip: KALYANKJIL Dear Sir/ Madam, Sub: I
Slide 2: Investor Presentation May 2021
I N V ESTO R P R E S E N TAT I O N MAY 2021 K A LYA N J E W E L L E R S I N D I A L I M I T E D
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Kalyan Jewellers India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 4: Contents
CONTENTS 01 5-7 03 24-26 COMPANY OVERVIEW STRATEGIC PRIORITIES 02 04 9-22 28-38 INVESTMENT HIGHLIGHTS PERFORMANCE REVIEW
Slide 5: Company Overview
01 COMPANY OVERVIEW Py KALYAN JEWELLERS
Slide 6: Introduction To Kalyan Jewellers
Company at a glance Introduction To Kalyan Jewellers ESTABLISHED IN 1993 BY MR. T.S. KALYANARAMAN. BUILT ON A RICH FAMILY LEGACY AND DECADES’ OLD INDUSTRY EXPERTISE OF ITS FOUNDER. KALYAN JEWELLERS: INDIA’S TRUSTED JEWELLER One of India’s largest Pan-India presence with scaled operations in jeweller
Slide 7: Company at a glance: Key Highlights
Company at a glance Key Highlights 28 Years 107 30 766 Showrooms Showrooms in Middle "My Kalyan" Since Formation in India East Grassroots Stores 5 21 13 7,611 States & Union Territories Procurement Centres Employees Countries in India KALYAN JEWELLERS INDIA LIMITED 6
Slide 8: Evolution Of A Trusted Pan-India Brand
Key milestones Evolution Of A Trusted Pan-India Brand Opened first Launched “My Kalyan” Entered Maharashtra Entered Chennai Incremental equity Entered Bihar Listed on NSE & BSE as showroom under customer outreach and Middle East markets and East India investment by Warburg market Kalyan Jewellers In
Slide 9: Investment Highlights
02 INVESTMENT HIGHLIGHTS Py KALYAN JEWELLERS
Slide 10: Kalyan Jewellers: Built On Core Competitive Strengths
Key pillars of strength Kalyan Jewellers: Built On Core Competitive Strengths 1 Leading brand in a large market with rapidly 6 Robust and Effective Internal Control Processes increasing organised share driven by significant Information technology and operations management systems growth tailwinds to
Slide 11: Indian Jewellery Market: Favorable Trends And Characteristics
Industry overview Indian Jewellery Market: Favorable Trends And Characteristics Rising Share Of Organised Retail In Gold Jewellery Demand And Ownership Is Jewellery To Continue Higher In Rural India And Rises With Income 2nd 3rd Levels Organised (%) Unorganised (%) Largest gold market in Highest com
Slide 12: Organised Jewellery Market: Structural Growth Drivers
Key market trends & characteristics Organised Jewellery Market: Structural Growth Drivers JEWELLERY IN INDIA IS A LARGE AND ATTRACTIVE MARKET WITH SIGNIFICANT TAILWINDS Shifting Customer Superior Organisational Supportive Regulatory Behaviour Capabilities And Legislative Changes Customers’ expectati
Slide 13: A Brand Built On Decades Of Trust And Transparency
Established brand A Brand Built On Decades Of Trust And Transparency PIONEERS IN THE INDIAN JEWELLERY RETAILING SPACE IN: Institutionalising Highest Introducing Highest Degree Of Customer Education Quality Standards Pricing Transparency For And Awareness Customers BIS Hallmarking Of Gold Jewellery P
Slide 14: A True Pan-India Player With Expansive Geographical Presence
Presence A True Pan-India Player With Expansive Geographical Presence Pan-India Presence Karnataka Chandigarh Tamil Nadu Odisha Bengaluru – Dickenson Road Bengaluru – Jayanagar Bengaluru – Koramangala Bengaluru – Malleswaram Bengaluru – Marathahalli Punjab Amritsar Jalandhar Chennai – Adayar Chennai
Slide 15: Effective Marketing Strategy
Marketing and promotion strategy Effective Marketing Strategy REINFORCING THE LOCAL TOUCH, PLAYING AS A PAN-INDIA BRAND NATIONAL BRAND AMBASSADORS REGIONAL INFLUENCERS ₹10,000+ mn Pooja Sawant Maharashtra (Marathi) Marketing and Advertising Investments In Last 4 Years Amitabh Katrina Jaya Shweta Nan
Slide 16: Hyperlocal Jeweller Catering To Varied Geographies And Customer Segments
Hyperlocal jeweller Hyperlocal Jeweller Catering To Varied Geographies And Customer Segments Localisation In Brand Localisation Of Our Product Localisation Of Our Showroom Localisation Through Our “My Communication And Marketing Portfolio Experience For Customers Kalyan” Network State and city speci
Slide 17: My Kalyan Centres: Unique Grassroots Customer Outreach Network
‘My Kalyan’ network “My Kalyan” Centres: Unique Grassroots Customer Outreach Network ACTIVITIES AND STRATEGIES IMPLEMENTED TO PROMOTE KALYAN BRAND 766 Grassroots Network: ‘My Kalyan“ centres Facilitator of the neighborhood (~7 centres per showroom) Dedicated “My Kalyan” personnel Showcase product Dr
Slide 18: Wide Range Of Product Offerings Targeted At A Diverse Set Of Customers
Product offerings Wide Range Of Product Offerings Targeted At A Diverse Set Of Customers WEDDING ASPIRATIONAL STAPLE REGIONAL STUDDED JEWELLERY - JEWELLERY JEWELLERY JEWELLERY DIAMOND, POLKI, UNCUT DIAMOND, PRECIOUS STONES SOLD VIA BRANDS SOLD VIA BRANDS SOLD VIA BRANDS SOLD VIA BRANDS MUHURAT MUDHR
Slide 19: Jewellery Sub-brands Catering To Various Product Themes And Price Points
Product offerings Jewellery Sub-brands Catering To Various Product Themes And Price Points LAUNCHED A NUMBER OF SUB-BRANDS TARGETING DIFFERENT CUSTOMER SEGMENTS AND OCCASIONS ANTIQUE (NON YELLOW DIAMOND JEWELLERY DIAMOND JEWELLERY DIAMOND JEWELLERY UNCUT DIAMOND PRECIOUS STUDDED GOLD FINISH) STUDDED
Slide 20: Leveraging Technology To Drive Footfalls, Customer Engagement And Conversion
Digital initiatives Leveraging Technology To Drive Footfalls, Customer Engagement And Conversion Targeted Digital Analytics Driven Digitally Enabled E-commerce Improving Employee Marketing Through Rich Customer Outreach MyKalyan centres Productivity And Efficiency Data Mining And Through Technology
Slide 21: Robust And Effective Internal Processes And Controls
Internal process and controls Robust And Effective Internal Processes And Controls Enterprise Resource Strict Inventory Regular Inventory Big 4 Auditor Integrated Operations To Planning System Allowing Management & Checks Allow Inventory Real-time Visibility Into Monitoring Practices - Movement Betw
Slide 22: Board Of Directors: Enriching Kalyan With Their Expertise And Insight
Board of Directors Board Of Directors: Enriching Kalyan With Their Expertise And Insight Visionary Promoters: Laying Out Business Strategy Mr. T.S. KALYANARAMAN Mr. T.K. SEETHARAM Mr. T.K. RAMESH Chairman and Managing Director Whole-time Director Whole-time Director • 45 years retail experience • ~2
Slide 23: Professional Management Team Driving Business Growth & Expansion
Management Team Professional Management Team Driving Business Growth & Expansion Mr. SANJAY RAGHURAMAN Chief Executive Officer CEO instrumental in driving geographical expansion and evolution into a pan India business, • Qualified CA and CWA supported by a strong and experienced team of cross functi
Slide 24: Strategic Priorities
03 STRATEGIC PRIORITIES Py KALYAN JEWELLERS
Slide 25: A Purpose-led Growth Across Different Phases
History & Future roadmap A Purpose-led Growth Across Different Phases PHASE I PHASE II PHASE III PHASE IV 1993-2003 2004-2011 2012- 2021 ROAD AHEAD Strengthening Growing In Pan-India Expansion, Capitalising On The Our Roots Southern India Professionalisation And Foundation Investment • Focus on bran
Slide 26: Our Strategic Priorities: Balancing Growth And Expansion
Long-term objectives & priorities Our Strategic Priorities: Balancing Growth And Expansion LONG-TERM OBJECTIVES Leverage Scalable Business Widen Product Offerings To Leverage “My Kalyan” Invest In CRM, Model To Expand Showroom Further Increase Consumer Network To Deepen Customer Marketing And Analyt
Slide 27: CSR Initiatives: Addressing Local Needs As A Socially Responsible Organization
CSR CSR Initiatives: Addressing Local Needs As A Socially Responsible Organization OUR CSR INITIATIVES IN HOUSING DEVELOPMENT, EDUCATION AND AREAS RELATED TO COMMUNITY HEALTHCARE IN SEMI- URBAN AND RURAL AREAS DEEPEN OUR CUSTOMER CONNECT AND LOCALIZATION Housing Education Healthcare Artisans • Housi
Slide 28: Performance Review
04 PERFORMANCE REVIEW Py KALYAN JEWELLERS
Slide 29: India: Q4FY21 Performance Summary
India performance India: Q4FY21 Performance Summary Revenue (₹mn) No. of Showrooms 26,149 107 107 • Even Jan & Feb (Covid un- affected months) grew by • Same Store Growth 35% each (SSG) of 61% in 61% • Significant acceleration in Q4FY21; implies 16,278 market share growth growth as shift from unorga
Slide 30: India: Strong Revenue Growth
India performance India: Strong Revenue Growth South Revenue (₹mn) Non-South Revenue (₹mn) Robust growth across geographies driven by rise 67% in footfalls and market share; south outpaced non- 48% 17,918 south leading to increase in 8,231 south revenue share from 10,729 66% to 69% 5,549 Q4FY20 Q4FY
Slide 31: Revenue Growth And Operating Leverage Driving Growth In EBITDA And PAT
India performance Revenue Growth And Operating Leverage Driving Growth In EBITDA And PAT Gross Profit (₹mn) Total Opex as a % of Revenue GP margin declined to 14.6% Higher SSG leading 3,825 from 17.1% (Q3FY21) led by to better operating a combination of factors 12% leverage 3,483 10% • Studded share
Slide 32: Middle East Recovery On Track Driving Profitability
ME performance Middle East Recovery On Track Driving Profitability Revenue (₹mn) • Recovery in revenue despite No. of Showrooms the strategic decision to close 5,024 7 showrooms in FY21 • Rise in GP margin largely led 37 by consolidation in the market 4,252 • Increase in GP margin and (19%) control
Slide 33: Continued Focus On Improving Returns And Strengthening Balance Sheet
Consolidated performance Continued Focus On Improving Returns And Strengthening Balance Sheet Return on Equity 1 (%) Return on Capital Employed 2 (%) 17% 20% 10% 7% FY20 H2FY21 FY20 H2FY21 Net Debt to Equity 3 (x) 1.3 1.1 FY20 FY21 Notes: 1) H2FY21 ROE: IPO proceeds excluded from networth as the IPO
Slide 34: Q4FY21 India: Income Statement
India performance Q4FY21 India: Income Statement Particulars (₹mn) Q4FY21 Q4FY20 YoY Q3FY21 QoQ Revenue 26,149 16,278 61% 24,973 5% Gross Profit 3,825 3,483 10% 4,260 -10% Gross Profit Margins % 14.6% 21.4% - 17.1% - Total Opex 1,882 1,875 0% 1,556 21% Advertisement & Promotion 245 533 -54% 379 -35%
Slide 35: Q4FY21 ME: Income Statement
Middle East performance Q4FY21 ME: Income Statement Particulars (₹mn) Q4FY21 Q4FY20 YoY Q3FY21 QoQ Revenue 4,252 5,024 -15% 4,165 2% Gross Profit 737 655 12% 713 3% Gross Profit Margins % 17.3% 13.0% - 17.1% - Total Opex 439 460 -5% 402 9% Advertisement & Promotion 67 145 -54% 78 -14% Other Opex 372
Slide 36: Q4FY21 Consolidated Income Statement
Consolidated performance Q4FY21 Consolidated Income Statement Particulars (₹mn) Q4FY21 Q4FY20 YoY Q3FY21 QoQ Revenue 30,566 21,407 43% 29,363 4% Gross Profit 4,609 4,169 11% 5,031 -8% Gross Profit Margins % 15.1% 19.5% - 17.1% - Total Opex 2,332 2,374 -2% 1,920 21% Advertisement & Promotion 320 686
Slide 37: Consolidated Income Statement
Consolidated performance Consolidated Income Statement Particulars (₹mn) FY21 FY20 YoY Revenue 85,733 1,01,009 -15% Gross Profit 14,592 17,092 -15% Gross Profit Margins % 17.0% 16.9% - Total Opex 8,649 9,489 -9% Advertisement & Promotion 1,460 2,822 -48% Other Opex 1 7,189 6,667 8% EBITDA 5,943 7,60
Slide 38: Consolidated Balance Sheet
Consolidated performance Consolidated Balance Sheet Particulars (₹mn) FY20 FY21 Particulars (₹mn) FY20 FY21 Equity and Liabilities Assets I Equity I Non current Assets (a) Equity Share Capital 8,392 10,301 (a) Property, Plant and Equipment 10,792 9,617 (b) Compulsorily Convertible Preference Share C
Slide 39: Contact Us
C O N TA C T U S : Registered and Corporate Office: TC-32/204/2, Sitaram Mill Road, Punkunnam, Thrissur, Kerala – 680 002 Tel : +91 487 24 37 333 Fax : +91 487 24 37 334 Email: investor.relations@kalyanjewellers.net Website: www.kalyanjewellers.net
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