Senco Gold Limited · NSE:SENCO
Senco Gold — Investor Presentation (December 2024)
52 slides from Senco Gold's investor presentation, Dec 9, 2024
Slide 1: Regulation 30 disclosure cover letter
Ref: SEC/SE/77/2024-25 Date: 9th December, 2024 The Manager- Listing The Manager – Listing The National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Bandra – Kurla Complex, Corporate Relationship Department Bandra (EAST), Mumbai – 400051 Phiroze Jeejeebhoy Towers, Dalal Street, Mumb
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 9th December 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 (8-23) 03 Business Strategies (24-25) 04 Financial Information (26-37) 05 Industry (38-41) 06 Annexures (42-53) Corporate Presentation 3
Slide 5: Company Overview
01 Company Overview Corporate Presentation 4
Slide 6: Key Highlights
Key Highlights1 50+ 167 67 Years Showrooms2 Franchisee Showrooms Trust & Legacy 2,680+ 22% 109 Team Strength Towns & Cities2 2 yrs Revenue CAGR (FY22-24) Corporate Presentation 5 Notes: 1) All details are as of H1 FY25 except otherwise mentioned explicitly; 2) Including 1 in Dubai
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 Telecommunication from Indian Institute of Engineering Science and Technology with over 3 decades of experience Chairperson and Whole Time Direc
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 growing ~39x growth in revenue from INR 1,340 Mn (FY08) to middle-class population and their increas
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 entrepreneur Meticulous craftsmanship of our 179+ Karigars/Karigar entities Awards: ▪ Leading Hedger Award by MCX Awards 2024 ▪ GEMEX, GIA, SGL and IGI certif
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 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 strategic locational advantages with access to expert Jewelle
Slide 14: Building Pan-India Brand with a Hyperlocal Touch
2c Building Pan-India Brand with a Hyperlocal Touch Jaya Ahsan Swastika Sauroseni Regional Brand Vidya Balan Ambassadors in Kiara Advani Eastern India Sales promotion Market & Marketing Exp. H1FY25 INR 666 Mn 2.3%1 of Revenue (H1 FY25) Kartik Aryan Ishaa Saha Corporate Presentation 13 Notes: 1) INR
Slide 15: Amongst the Most Trusted Brand
3 Amongst the Most Trusted Brand Excellence in Design India’s 2nd Most Green Ribbon Champions Best Jewellery Retailer of the Innovation in Gold & Diamond Trusted and Most Excellence in Sustainable Year by IReC Awards 2024 By Jagran Achiever Awards Desired Brand by TRA Fashion by Network 18 2023 New
Slide 16: Calibrated Focus on Light Weight Jewellery
4a Calibrated Focus on Light Weight Jewellery Diverse jewellery collection across various price points 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 customer base across age groups
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 1 167 Showrooms1 Fulfillment Order Processing Hub & Spoke Model App 2 ‘MySenco’app Customers Video/ Websites & Apps Website Tele-call www.sencogoldanddiamonds.com www.sencogold.com 3 www.mydigigold.com www.mydigisilver.com VR Plat
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 (1/2)
Sennes (1/2) Products • Lab-grown Diamond jewelleries • Leather Bags & Accessories Presence1 • 4 Exclusive Brand Outlets in Kolkata • 2 Multi Brand Outlets in Delhi & Chandigarh • 29 SIS2 (Leather) stores across India Sennes offers Lab-Grown Diamond Jewellery Geographical presence • Phase 1 – Presen
Slide 25: Business Strategies
03 Business Strategies Corporate Presentation 24
Slide 26: 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 27: Financial Information
04 Financial Information Corporate Presentation 26
Slide 28: Key Operational Metrics
Key Operational Metrics Average Transaction Value Showroom expansion Pan India Growth Inventory Days2 (ATV) 1 Company Franchisee Revenue Growth SSSG Inventory T/O Ratio 159 167 33% 168* 136 127 74,300 151 147 67 29% 66 27% 126 61 57 63,700 19% 19% 2.9x 2.5x 2.4x 2.2x 57,900 15% 56,900 12% 93 100 10%
Slide 29: Store Overview: Format & Geographic Distribution
Store Overview: Format & Geographic Distribution 1 2 COCO Stores FOFO Stores Total Stores 70 75 93 99 57 61 66 67 127 136 159 167 6 1 5 8 8 2 66 67 1 8 38 8 38 57 61 31 33 40 45 44 37 47 93 99 42 70 75 30 32 10 11 11 13 10 10 10 10 FY22 FY23 FY24 H1-FY25 FY22 FY23 FY24 H1-FY25 FY22 FY23 FY24 H1-FY25
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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 38: 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 39: Industry
05 Industry Corporate Presentation 38
Slide 40: 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 41: 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 42: 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 43: Annexures
06 Annexures Corporate Presentation 42
Slide 44: Digital Initiatives – Sencoverse (Virtual Reality Platform)
Digital Initiatives – Sencoverse (Virtual Reality Platform) To attract upwardly mobile and younger generation and expand our customer baseAims to offer cutting-edge, immersive shopping experience As of September 30, 2024, we are operating 4 such Sencoverse stores and all the jewelleries from our web
Slide 45: 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 46: 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 47: Seasonal Campaigns & Offers (1/4)
Seasonal Campaigns & Offers (1/4) Corporate Presentation 46
Slide 48: Seasonal Campaigns & Offers (2/4)
Seasonal Campaigns & Offers (2/4) Corporate Presentation 47
Slide 49: 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 48
Slide 50: Seasonal Campaigns & Offers (4/4)
Seasonal Campaigns & Offers (4/4) May be an image of text No photo description available. Corporate Presentation 49
Slide 51: 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 52: 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