Senco Gold Limited · NSE:SENCO
Senco Gold — Investor Presentation (November 2024)
55 slides from Senco Gold's investor presentation, Nov 20, 2024
Slide 1: Exchange filing cover letter for corporate presentation
TM 6 STNCO GOLD & DIAMONOS Ref: SEC/S![42o24-2s Date: 20tt November, 2024 The Manager- Listing The Manager - Listing The National Stock Exchange of India BSE Limited Limited Corporate Relationship Department "Exchange Plaza", Bandra - Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (EAST), Mumbai -
Slide 2: Senco Gold Limited Corporate Presentation
India’s 2nd Most Trusted* & 2nd Most Desired Jewellery Brand** *4th year in a row ** as per TRA report 2024 Senco Gold Limited Corporate Presentation 20th November 2024 BSE – 543936 NSE - SENCO Bloomberg – SENCO:IN Corporate Presentation
Slide 3: Disclaimer
Disclaimer This presentation has been prepared for general information purposes in respect of Senco Gold Limited (“Company”) together with its subsidiaries, as applicable (together, with the Company, the “Group”) only, without regard to any specific objectives, suitability, financial situations and
Slide 4: Index
Index 01 Company Overview (4-7) 02 Investment Highlights (8-24) 03 Business Strategies (25-27) 04 Financial Information (28-39) 05 Industry (40-43) 06 Annexures (44-53) Corporate Presentation 3
Slide 5: Company Overview
01 Company Overview Corporate Presentation 4
Slide 6: Key Highlights
Key Highlights1 50+ 167 67 109 2,680+ Years Showrooms2 Franchisee Towns & Cities2 Team Strength Showrooms Trust & Legacy Pan India Asset light Presence across Metro, 22% 12% Presence Franchisee Model 33% Tier-i, Tier-ii & iii 11% 2 yrs Revenue CAGR H1 FY25 H1 FY25 Old Gold H1 FY25 (FY22-24) SSSG3 gr
Slide 7: Over Five Decades of Journey
Over Five Decades of Journey Investment from Marquee PE Investors 2nd Most Trusted Brand1 2013 Entered northern region by opening 2019 Received the Best Promising Gems and Jewellery showroom in Delhi Brand award 2014 Revenue crossed INR 10 bn 2020 Crossed 100 showroom mark 2015 Crossed 50 showrooms
Slide 8: Experienced Board of Directors
Experienced Board of Directors SHANKAR PRASAD HALDER Independent Director RANJANA SEN ▪ Holds a degree of Bachelor’s in engineering (BE) in Electronics and Chairperson and Whole Time Director Telecommunication from Indian Institute of Engineering Science and ▪ Over 30 years of experience in the jewe
Slide 9: Investment Highlights
02 Investment Highlights Corporate Presentation 8
Slide 10: Senco Gold – Competitive Strengths
Senco Gold – Competitive Strengths1 1 Rich heritage and legacy Bouquet of Brands with Portfolio of unique designs 2 of over Five decades With brands like Everlite, Gossip, Aham, Sennes etc. targeting all ~39x growth in revenue from INR 1,340 Mn (FY08) to generations including Gen Alpha3, Gen Z3 and
Slide 11: Strong Brand Name with Rich Heritage & Legacy
1 Strong Brand Name with Rich Heritage & Legacy Quality Standards and Transparency Design and Innovation Consumer Trust Run by 4th generation professional entrepreneur Meticulous craftsmanship of our 175+ Karigars/Karigar entities Awards: ▪ Leading Hedger Award by MCX Awards 2024 ▪ GEMEX, GIA, SGL a
Slide 12: Bouquet of Brands with Portfolio of Unique Designs
2a Bouquet of Brands with Portfolio of Unique Designs Lightweight, Everyday Silver and Fashion Bouquet of Brands fine jewellery Jewellery Exclusive Range of Collections Lightweight, Everyday fine Silver and Fashion Jewellery Jewellery With active Catalogue1 across all brands Bridal Jewellery Solitai
Slide 13: Leveraging Bengal's Karigari and Craftsmanship
2b Leveraging Bengal’s Karigari and Craftsmanship Significant volumes (~77%) of work allocated to Karigars/Karigar entities Attractive designs with Hyper local Focus Maintain exclusivity of in-house designs Our presence in Eastern India gives us Stringent quality control procedures to strategic loca
Slide 14: Building Pan-India Brand with a Hyperlocal Touch
2c Building Pan-India Brand with a Hyperlocal Touch Madhumita Sarcar Swastika Sauroseni Regional Brand Kiara Advani Vidya Balan Ambassadors in Eastern India Sales promotion Market & Marketing Exp. H1FY25 INR 666 Mn 2.3%1 of Revenue (H1 FY25) Ishaa Saha Kartik Aryan Sourav Ganguly Corporate Presentat
Slide 15: Amongst the Most Trusted Brand
3 Amongst the Most Trusted Brand Ratnagarbha Award for Excellence in Design India’s 2nd Most Green Ribbon Champions Exemplary Motherhood by Innovation in Gold & Diamond Trusted and Most Excellence in Sustainable Bengal Chamber of Commerce By Jagran Achiever Awards Desired Brand by TRA Fashion by Net
Slide 16: Calibrated Focus on Light Weight Jewellery
4a Calibrated Focus on Light Weight Jewellery Diverse jewellery collection across various price points, starting from INR 2,000 Our strategy and experience in selling light weight jewellery has Strategic initiatives to establish a strong foothold in the market enabled us to reach out to wider custom
Slide 17: Calibrated Focus on Light Weight Jewellery
4b Calibrated Focus on Light Weight Jewellery Each design blends precious metals and diamonds, crafted for effortless daily elegance Corporate Presentation 16
Slide 18: Pan-India Presence & Largest Retail Player in E & NE Region
5 Pan-India Presence & Largest Retail Player in E & NE Region3 Company Region Own Franchisee Total 99 showrooms East ( including WB) 59 62 121 – West Bengal excl. Kolkata 20 51 71 1671 67 Franchisee showrooms – Kolkata 27 0 27 Large Distribution – Other states 12 11 23 Network Showrooms Internationa
Slide 19: Successful Asset-Light Franchise Model
6 Successful “Asset-Light” Franchise Model Robust distribution network leveraging an asset-light franchise model, evaluating both 'franchisee-owned, franchisee-operated' approaches # of Showrooms Launched (net) 40 new showrooms from FY22 to H1 FY25 Operational leverage of franchisee model ▪ Leveragi
Slide 20: Omni-Channel Retail Network
7a Omni-Channel Retail Network Phygital Model OMNI CHANNEL HYPERLOCAL 167 Showrooms1 1 Over ~90% of Own showrooms are leased Fulfillment Order Processing Hub & Spoke Model App ‘MySenco’ app with almost 2 1,27,700+ downloads 1 Customers Video/ Websites & Apps Website Tele-call www.sencogoldanddiamond
Slide 21: Customized Showroom Formats Catering to All Segments
7b Customized Showroom Formats Catering to All Segments Classic Modern D’Signia Everlite Sennes Traditional Younger Upcoming Lifestyle, LGD and Target Audience Customer Base in Premium and HNI generation & Geographies accessories existing geography millennials Average Transaction Value (ATV) ₹ ~INR
Slide 22: Digital Focus and Integrated Systems
8a Digital Focus and Integrated Systems Store Stock Optimization CRM • Automates processes for efficient stock management 01 02 • • Improves customer satisfaction with efficient processes Enhances productivity through automation and real-time insights • Optimizes production and inventory to cut cost
Slide 23: Robust Systems & Procedures helps Seamless Collaboration & Growth
8b Robust Systems & Procedures helps Seamless Collaboration & Growth Customer Manufacturing Strong technology focus to maintain greater control over business operations Sourcing & Sales & Retailing ▪ Integrated Systems Procurement ▪ Data Analysis & Forecasting Planning & ▪ Institutionalized Process
Slide 24: Sennes
Sennes Products • Lab-grown Diamond jewelleries • Leather Bags & Accessories • Fine Fragrances for Him & Her Range of products Presence1 • Small leather goods: INR 999 to INR • 4 Exclusive Brand Outlets in Kolkata 1,099 • 2 Multi Brand Outlets in Delhi & • Leather Bags: INR 14,999 to INR Chandigarh
Slide 25: Sennes
Sennes Milan Launch Sennes launched in Milan, with its ‘Essence of You’ collection during the Fashion Week on 18 th & 19th September, 2024. The event showcased exquisite Lab-grown diamond Jewelleries, Leather bags, and Fine fragrances Attended by press representatives, industry professionals, influe
Slide 26: Business Strategies
03 Business Strategies Corporate Presentation 25
Slide 27: Strategies to Drive Future Growth
Strategies to Drive Future Growth ▪ Hub and spoke approach to enter new geographies 1 Further expand our presence through a strong and diverse distribution channel ▪ Aim to enter new jewellery market where we can potentially gain from local jewellers ▪ Increase sales through online channels ▪ Focus
Slide 28: Outlook for FY25
India Expansion 18-20 jewellery showrooms including 10-12 franchisee, already launched 8 showrooms in H1 Outlook Revenue Growth for FY25 18-20% YoY revenue growth for FY25 considering the upcoming Wedding season and robust Dhanteras performance Stud Ratio Improve the stud ratio to 12%+ level Corpora
Slide 29: Financial Information
04 Financial Information Corporate Presentation 28
Slide 30: Key Operational Metrics
Key Operational Metrics Showroom expansion Pan India Growth Stud Ratio 1 Company Franchisee Revenue Growth SSSG 11% 159 167 33% 10% 11% 136 29% 127 67 27% 66 8% 57 61 19% 19% 15% 12% 10% 93 100 70 75 FY22 FY23 FY24 H1-FY25 FY22 FY23 FY24 H1-FY25 FY22 FY23 FY24 H1-FY25 Average Sale Price (ASP) Averag
Slide 31: Successful Track Record
Successful Track Record INR Mn unless stated otherwise Consistent Revenue Growth… Coupled with Sustained margins… …and Profit after tax 52,414 EBITDA (%) Gross Margins (%) 1,810 40,774 1,585 35,346 1,291 29,044 15.7% 16.1% 15.3% 14.7% 634* 8.2% 7.8% 7.2% 5.5% FY22 FY23 FY24 H1-FY25 FY22 FY23 FY24 H1
Slide 32: Key Financial Metrics
Key Financial Metrics INR Mn unless stated otherwise Gold Sourcing Gold Metal Loan (GML) as % of total Borrowings Blended Borrowing Cost per annum 49% 50% 46% 9.3% 9.4% 9.6% 45% 61% 62% 9.2% 50%50% 54% 29% 30% 46% 6.6% 6.0% 27% 39% 38% 5.7% 5.7% 22% 22% 19% 22% 16% 17% 3.5% 3.3% 3.1% 3.1% 1% 2% 2% 0
Slide 33: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Particulars (INR Mn) FY22 FY23 FY24 H1 FY25 Revenue from Operations 35,346.41 40,774.04 52,414.43 29,043.76 Cost of Goods Sold1 29,805.40 34,219.34 44,400.53 24,777.28 Employee Cost 747.67 933.80 1,112.29 672.95 ▪ 22% YOY Revenue growth in FY24 and 19% in Other
Slide 34: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Particulars (INR Mn) FY22 FY23 FY24 H1 FY25 Non-current Assets Fixed Assets 2296.93 2927.31 3634.8 3721.44 Other Non-Current Assets 691.20 1,115.86 758.05 716.79 ▪ Consistent increase in gold prices over the Current Assets last 3 years, with a 25% Price rise since Invent
Slide 35: Cash Flow Statement (Consolidated)
Cash Flow Statement (Consolidated) Particulars (INR Mn) FY22 FY23 FY24 H1 FY25 Cash Flow from Operating Activities Profit Before Tax 1,781.36 2,161.52 2,495.38 871.67 Adjustment for Non-Operating Items 1,041.39 1,140.11 1,354.5 752.5 ▪ Operating profit before working capital Operating Profit before
Slide 36: Q2 & H1 FY25 Consolidated Performance
Q2 & H1 FY25 Consolidated Performance Revenue from operations (INR Mn) Revenue from operations (INR Mn) 29,044 15,005 24,520 11,466 • The company has achieved YoY revenue growth of 31% in Q2 which is primarily driven by volume growth of 7% (Gold) and value growth Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 of 3
Slide 37: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Particulars (INR Mn) Q2 FY25 Q2 FY24 Y-o-Y (%) Q1 FY25 Q-o-Q (%) H1 FY25 H1 FY24 Y-o-Y (%) Revenue from Operations 15,004.87 11,465.57 30.87% 14,038.89 6.88% 29,043.76 24,519.57 18.45% Cost of Goods Sold1 13,166.35 10,111.18 30.21% 11,610.93 13.40% 24,777.28 21
Slide 38: Share Price Movement & Shareholding Pattern
Share Price Movement & Shareholding Pattern Share Price Movement Holding as on 30th September, 2024 A. MCap as on B. MCap as on C. MCap as on D. MCap as on 14th Jul'23 16th Apr’24 28th Jun’24 30th Sept’24 1600 INR 31,450 Mn INR 76,694 Mn INR 89,282 Mn INR 1,11,190 Mn 8.58% D 1400 9.58% 1200 C 67.47%
Slide 39: Corporate Social Responsibility
Corporate Social Responsibility Project Green Flame Project Kishalaya The concept of Improved Domestic or Community Chula has been designed by one of our beneficiary NGO, Alinan Ramakrishna Vivekananda Yuva Sangha, which has overall thermal efficiency of 23.08% and overall power rating of 1.33KW, an
Slide 40: ESG
ESG Environmental Factors Environmental Factors Sustainable Resource Environmental Certifications Management & Compliance Eco-friendly Packaging Strong Governance Structure Prioritise use of sustainably Joined the Responsible Jewellery Use of biodegradable or Dedicated ESG committee, responsible sou
Slide 41: Industry
05 Industry Corporate Presentation 40
Slide 42: India's Gems & Jewellery Market – TAM of INR 6,482 Bn
India’s Gems & Jewellery Market – TAM of INR 6,482 Bn …With its gems and jewellery industry growing at a India is the 2nd largest jewellery consuming nation …With Gold comprising ~82% of the Market CAGR of 8.6% (FY23-29P) Region-Wise Share of Gold Jewellery, Bars & Coins (CY23) Indian Gems & Jewelle
Slide 43: Leveraging the Strength of West Bengal as a Prominent Jewellery Manufacturing Hub
Leveraging the Strength of West Bengal as a Prominent Jewellery Manufacturing Hub Details of major organised jewellery retailers in east India (indicative list, not exhaustive) Geographical Spread3 ▪ India has 1,76,944 Jewellers registered with BIS1 for selling hallmarked gold Players jewellery E&NE
Slide 44: Emerging Trends Accelerating Market Share of Organized Jewellers
Emerging Trends Accelerating Market Share of Organized Jewellers Key Trends Regulatory Developments as tailwind for growth Consumer Awareness and Quality Preference 1 FDI Norms Increased awareness of certification and quality has boosted demand for 100% FDI is allowed in India’s jewellery sector und
Slide 45: Annexures
06 Annexures Corporate Presentation 44
Slide 46: Digital Initiatives – Sencoverse (Virtual Reality Platform)
Digital Initiatives – Sencoverse (Virtual Reality Platform) Future ready to attract Gen Alpha & Gen Z1: • Virtual Reality Platform has seen 58,000 unique visitors and 76,000 repeat visitors post its launch2 • Aims to offer cutting-edge, immersive shopping experience • Virtual environment lets custom
Slide 47: Microsoft Dynamics 360 CRM
Microsoft Dynamics 360 CRM ~9.67 Lacs Active Customer Base1 Loyalty/Coupons Customized SMS, Email & Campaigns - Event based, Product Data Management Case Management Customer Data Managing via WhatsApp Category, Recency-Frequency- Features - Auto Case creation,SLA various sources - Stores, Segments -
Slide 48: My DigiGold – Digital Platform
My DigiGold – Digital Platform My DigiGold is a reliable digital platform for hassle-free gold transactions. We source 24K gold with a purity of 99.5% from reputable bullion dealers. Your purchased gold is safely kept with a reputed third party custodian that offers 100% insurance protection. The di
Slide 49: My DigiSilver – Digital Platform
My DigiSilver – Digital Platform My DigiSilver is a reliable digital platform for hassle-free silver transactions. 99.9% pure silver is sourced from internationally reputed bullion dealers and stored securely with 100% insurance coverage. You can redeem the purchased digital silver anytime at any of
Slide 50: Seasonal Campaigns & Offers (1/4)
Seasonal Campaigns & Offers (1/4) Corporate Presentation 49
Slide 51: Seasonal Campaigns & Offers (2/4)
Seasonal Campaigns & Offers (2/4) Corporate Presentation 50
Slide 52: Seasonal Campaigns & Offers (3/4)
Seasonal Campaigns & Offers (3/4) May be an image of 1 person, jewellery and text No photo description available. A advertisement for a store No photo description available. Description automatically generated Corporate Presentation 51
Slide 53: Seasonal Campaigns & Offers (4/4)
Seasonal Campaigns & Offers (4/4) May be an image of text No photo description available. Corporate Presentation 52
Slide 54: Glossary
Glossary Term Description Term Description AI Artificial Intelligence GIA Gemmological Institute of America AR Augmented Reality HRD Hoge Raad voor Diamant BIS Bureau of Indian Standards HUID Hallmark Unique Identification BSE Bombay Stock Exchange IGI International Gemmological Institute CRM Custom
Slide 55: Thank You
Thank You CIN: L36911WB1994PLC064637 Telephone: +91 33 4021 5000 Email: IR@sencogold.co.in Website: www.sencogoldanddiamonds.com For further information, please contact Sanjay Banka Chief Financial Officer & Head IR sanjay.banka@sencogold.co.in