Senco Gold Limited · NSE:SENCO
Senco Gold — Q1 FY25 Earnings Presentation
53 slides from Senco Gold's earnings presentation, Aug 13, 2024
Slide 1: Exchange filing cover letter
Ref: SEC/SE/40/2024-25 Date: 13th August 2024 The Manager- Listing The Manager – Listing BSE Limited The National Stock Exchange of India Limited Corporate Relationship Department “Exchange Plaza”, Bandra – Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (EAST), Mumbai – 400051 Dalal Street, Mumbai
Slide 2: Senco Gold Limited Investor Presentation Q1 FY25
India’s 2nd Most Trusted* & 2nd Most Desired Jewellery Brand** SENCO GOLD LIMITED Investor Presentation Q1 FY25 Featured as Top 100 Global luxury brand by Deloitte *4th year in a row ** as per TRA report 2023 BSE – 543936 NSE - SENCO Bloomberg – SENCO:IN 13th August, 2024 1
Slide 3: Safe Harbour
Safe Harbour Some of the statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Company’s operations include chan
Slide 4: Index
Index 01 Company Overview (4-12) 02 Investment Highlights (13-38) 03 Business Strategies (39-41) 04 Financial Information (42-50) 05 CSR (51) 33
Slide 5: Company Overview
01 Company Overview 4
Slide 6: Guiding Pillars That Define Senco Gold & Diamonds
Guiding Pillars That Define Senco Gold & Diamonds Trust and Transparency Vision India’s most trusted jewellery brand and a Best Business Practices and leading accessory & lifestyle partner Processes Mission • Delight our valuable customers and fulfil their lifestyle needs and desires Purity and Qual
Slide 7: Serving Indian Jewellery Industry since 4 generations
Serving Indian Jewellery Industry since 4 generations Shri Maran Chand Sen Shri Prabhat Chandra Sen Shri Shaankar Sen Shri Suvankar Sen (Founder Chairman) Son of a school principal, used to Son of Shri Maran Chand Sen Son of Shri Shaankar Sen joined work at a Jewellery store in Dacca inherited a sma
Slide 8: Over eight decades of journey
Over eight decades of journey 2nd MOST TRUSTED BRAND 2024 1st International showroom in Dubai Crossed 150+ mark, Entry into Deloitee list of top 100 global Luxury brands, 2023 Listed on NSE & BSE Awarded 2nd most trusted jewellery brand by TRA 2019 2022 Raises INR 750 Mn equity from OIJIF II 2024 20
Slide 9: Strong Brand Name With Rich Heritage & Legacy
Strong Brand Name With Rich Heritage & Legacy Quality Standards and Transparency Design and Innovation Consumer Trust Run by 4th generation professional entrepreneur as Promoter with PE investment Over 2 million loyal customers from Elevation Capital (SAIF Partners India IV Limited) rewarding loyalt
Slide 10: Experienced Board of Directors
Experienced Board of Directors SHANKAR PRASAD HALDER RANJANA SEN Independent Director Chairperson and Whole Time Director ▪ Telecom engineer from Indian Institute of Engineering Science and Technology with over 4 decades of experience in Telecom and ▪ Over 30 years of experience in the jewellery ind
Slide 11: Senco Snapshot
Senco Snapshot India’s 2nd Most Trusted & 2nd Most Desired Jewellery Brand Rich heritage and legacy Bouquet of Brands of over Eight decades with powerful brands like Everlite, Gossip, Aham, Among the most trusted brand Sennes etc. targeting across all segments and GenZ also ET Trusted Brands 2021 2n
Slide 12: Key Highlights
Key Highlights 68 109 85+ 165 Franchisee Towns & Cities 2,530+ Years Showrooms and Team Strength Showrooms 1 in Dubai Trust & Legacy Pan India Asset light Presence across Metro, 21% Presence 3.7% Franchisee Model 35% 9.9% Tier-i, Tier-ii & iii 2 Mn + 4 yrs Revenue CAGR SSSG growth Old Gold Exchange
Slide 13: Awards & Recognitions
Awards & Recognitions India’s 2nd Most Trusted Brand Best Jewellery Retailer of the Year Excellence in Design Innovation New Powerful Women The Rising Star, 40 Under 40 Award by TRA Research Pvt. Ltd. by IREC Awards 2024 in Gold & Diamond Entrepreneur Award By IIJS Premiere 2023 and Gem & By Jagran
Slide 14: Investment Highlights
02 Investment Highlights 13
Slide 15: India's Gems and Jewellery market – TAM of US$ 80 billion
India’s Gems and Jewellery market – TAM* of US$ 80 billion India’s Gem and Jewellery sector grew by 8% CAGR and expected to grow by 16% Structural growth drivers act as tailwind for growth of organized sector 16% (USD Bn) Changing Consumer Superior Organisation Regulatory Changes 145 Preference Capa
Slide 16: India's Gems and Jewellery market – Rural Bharat leads demand
India’s Gems and Jewellery market – Rural Bharat leads demand Gold jewellery demand and ownership is higher in rural India and rises with income levels India is the Breakup of Indian Fine Jewellery Market into Gold and Non-Gold 2nd largest gold market in the 19 world 40% 8 4 110 60% No 40 55 Invento
Slide 17: Emerging trends accelerating market share of organized jewellers
Emerging trends accelerating market share of organized jewellers Changing Consumer Trends BIS Hallmarking Evolution of Consumer Preferences: Preceding Regulatory Mandate Market Transparency, Product Purity, and quality benchmark Brand Awareness: Growing momentum driven by marketing strategies of Cle
Slide 18: Pan-India presence & largest Retail Player in Eastern Region
Pan-India presence & largest Retail Player in Eastern Region Company 96 showrooms 165* Showrooms (Q1 FY25: 6 showrooms 165 68 Franchisee showrooms* since Apr-20: 53 showrooms) Large Distribution Showrooms International Network 1 company showrooms 4.83 lacs sq. ft. Aggregate Retail Space 16 109 Regio
Slide 19: Customized Showroom formats catering to all segments
Customized Showroom formats catering to all segments Classic Modern D’Signia Everlite House of Senco Sennes Traditional Customer Base Younger Target Audience Upcoming Premium and Lifestyle, LGD in existing generation & Super Luxury Geographies HNI and accessories geography millennials Average Ticket
Slide 20: Omni-channel Retail Network
Omni-channel Retail Network Phygital Model OMNI CHANNEL HYPERLOCAL 165+ Showrooms 1 Over ~90% of Own showrooms are leased Fulfillment Order Processing Hub & Spoke Model App ‘MySenco’ app with almost 2 6,35,000+ downloads Customers Video/ Tele-call Websites & Apps Website www.sencogoldanddiamonds.com
Slide 21: Successful asset-light franchise model
Successful “asset-light” franchise model Strong distribution network leveraging asset light franchisee model – evaluating both ‘franchisee owned, franchisee operated’ models # of Showrooms Operational leverage of franchisee model Senco has added (net) 53 showrooms from FY21 till date ▪ Leverage Hub
Slide 22: Leveraging Bengal's Karigari and Craftsmanship
Leveraging Bengal’s Karigari and Craftsmanship Significant volumes (~70%) of work allocated to Karigars Attractive designs with Hyper local Focus Maintain exclusivity of in-house designs Our presence in Eastern India gives us Stringent quality control strategic locational advantages with procedures
Slide 23: Focus on light weight jewellery
Focus on light weight jewellery Diverse jewellery collection with across various price points starting from INR 2,000 Active Need new image 1,56,000+ designs Catalogue for gold jewellery 86,000+ designs for diamond jewellery Our strategy and experience in selling light weight jewellery has enabled u
Slide 24: Glimpses of New Collections – Rath Yatra
Glimpses of New Collections Rath Yatra Rath Yatra jewelry collection, a stunning tribute to the grand festival celebrated in honor of Lord Jagannath. This exquisite collection features intricate motifs inspired by the Rath, the majestic chariot; the Neelachakra, the divine wheel atop the Jagannath T
Slide 25: Glimpses of New Collections – Akshaya Tritiya
Glimpses of New Collections Akshaya Tritiya Senco presents an exclusive Akshaya Tritiya 2024 jewellery collection, featuring over 20,000 new designs. From intricate gold filigree and nakashi, to beautiful antiques to sparkling diamond pieces, each item reflects the craftsmanship and heritage Senco i
Slide 26: Glimpses of New Collections – Bangle Festival 2024
Glimpses of New Collections Bangle Festival 2024 – Circle of Life Bangles, an integral part of our cultural heritage, have adorned women’s wrists for centuries, symbolizing grace, beauty, and tradition. Passed down from mothers to daughters, these precious adornments carry stories of love, resilienc
Slide 27: Glimpses of New Collections – Gathbandhan
Glimpses of New Collections Gathbandhan Collection The Gathbandhan Collection celebrates the sacred bond of two souls coming together. It reflects the depth of emotions and beauty of a relationship built on trust, respect, and unwavering love. Celebrating the sacred bond of matrimony, the collection
Slide 28: Glimpses of New Collections – Evil Eye 2.0
Glimpses of New Collections Evil Eye 2.0 Combining elegance and protection, the Evil Eye Collection by Everlite offered lightweight jewelry designed to ward off negativity and enhance your style. This collection was launched during Father’s Day. 27
Slide 29: Glimpses of New Collections – Pleat Collection
Glimpses of New Collections Pleat Collection Pleat Collection of Everlite is a range of lightweight jewelry designed to offer modern sophistication and comfort, perfect for those who appreciate understated luxury. 28
Slide 30: Glimpses of New Collections – Terracotta Collection
Glimpses of New Collections Terracotta Collection The Terracotta Collection of Everlite presents a stunning line of lightweight jewelry that marries the rustic charm of terracotta with the elegance of fine craftsmanship. 29
Slide 31: Seasonal Campaigns & Offers
Seasonal Campaigns & Offers Vivah Collection – Pyaar ka Gathbandhan Mother’s Day Campaign – Maa Jaisi Bangle Festival – Circle of Life Father’s Day Campaign – Legacy of Love Pride Month Campaign – Sushant Digvikar Akshaya Tririya Swarna Yatra 30
Slide 32: Driving Pan India Brand Loyalty
Driving Pan India Brand Loyalty Madhumita Sarcar Jaya Ahsan Ditipriya Roy Regional Brand Vidya Balan Ambassadors in Marketing & Eastern India Promotional Exp. Market Q1FY25 Rs. 38.72 Cr Digital Focus 2.8% of Revenue FY 24 – 2% Last 3ys avg. Below 2.0% Ishaa Saha Kiara Advani Sourav Ganguly 31
Slide 33: 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 995 from reputable bullion dealers worldwide. Your purchased gold is safely kept with a reputed third party custodian that offers 100% insurance protection.
Slide 34: 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 35: Wide Product Range at attractive price points
Wide Product Range at attractive price points Bouquet of Brands Lightweight, Everyday Silver and Fashion Exclusive Range of Collections (highlighted key brands) fine jewellery Jewellery Lightweight, Everyday fine Silver and Fashion Jewellery Jewellery With active Catalogue (across brands) of Bridal
Slide 36: Digital Focus and Integrated Systems
Digital Focus and Integrated Systems ERP driven organization since two Leveraging latest technology like decades integrated with all critical augmented reality (AR), virtual try on, and business operations giving real time recommendation engine for the jewellery 08 01 control and visibility Robust i
Slide 37: Digital Initiatives: Sencoverse (Metaverse)
Digital Initiatives: Sencoverse (Metaverse) Future ready to attract GenZ: • Metaverse has seen 58,000 unique visitors and 76,000 repeat visitors post its launch. • Aims to offer cutting-edge, immersive shopping experience. • Virtual environment lets customers browse, try on, and purchase jewellery f
Slide 38: Robust systems and procedures helps seamless collaboration and growth
Robust systems and procedures helps seamless collaboration and 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 39: Sennes
Sennes Products • Women’s leather Bags and wallets • Travel/Toilet Kit • Men’s Bags • Card Cases • Laptop bags • Spectacle cases • Backpacks • Tab Cover with Pouch & Key • Men’s wallets Chains. Range of products Presence* • 19 SIS formats (only leather • Small leather goods: INR 1,000 bags) to INR 7
Slide 40: Business Strategies
03 Business Strategies 39
Slide 41: Strategies to drive Future Growth
Strategies to drive Future Growth Passionately Drive sustainable profitable Growth on Pan ▪ Accelerated Showroom Expansion on pan India basis with modern formats . India basis and consolidating our market leadership in the 1 East ▪ Sustain, Strengthen & Leverage Franchisee Model for growth in Tier 3
Slide 42: Key Growth Drivers
Key Growth Drivers Showroom expansion Pan India Revenue Growth Stud Ratio 4yr CAGR Company Franchisee Growth SSSG 10% 11% 159 164 21% 10% 127 136 9% 112 68 33% 8% 66 61 27% 29% 57 52 19% 15% 93 96 10% 10% 9% 70 75 7% 60 4% FY21 FY22 FY23 FY24 Q1-FY25 FY21 FY22 FY23 FY24 Q1-FY25 FY21 FY22 FY23 FY24 Q
Slide 43: Financial Information
04 Financial Information 42
Slide 44: Management Comment on Q1-FY25 performance
Management Comment on Q1-FY25 performance “We are pleased to announce our Q1 FY25 results. In line with our growth strategy, we expanded our showroom portfolio to 165, adding 6 new showrooms (4 owned out of which 1 in Dubai and 2 franchisees) in Q1. We achieved YoY sales growth of 7.54% including di
Slide 45: Q1 FY25 Consolidated performance
Q1 FY25 Consolidated performance Revenue from operations (Rs. mn) EBITDA (Rs. mn) PAT (Rs. mn) 513 14,039 1,087 13,054 277 672 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 • Gold prices rose by ~20% in Q1 FY 25 and ~13% vs Q4 FY 24. Effectively Gold purchase in Q3 and Q4 for FY 24 was sold in Q1
Slide 46: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Particulars (INR Mn) Q1 FY25 Q1 FY24 Y-o-Y (%) Q4 FY24 Q-o-Q (%) FY24 Revenue from Operations 14,038.89 13,054.00 8% 11,372.84 23% 52,414.43 Cost of Goods Sold 11,610.93 11,421.68 2% 9,429.04 23% 44,400.53 Employee Cost 339.54 253.93 34% 280.41 21% 1,112.29 Oth
Slide 47: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Particulars (INR Mn) As at As at As at As at Particulars (INR Mn) As at As at As at As at Jun-24 Jun-24 EQUITY AND LIABILITIES Mar-22 Mar-23 Mar-24 ASSETS Mar-22 Mar-23 Mar-24 (un-audited) (un-audited) Equity Non-current assets Total Equity 7,259.67 9,455.20 13,655.42 14
Slide 48: Cash Flow Statement (Consolidated)
Cash Flow Statement (Consolidated) Jun-24 Sl. Particulars FY22 FY23 FY24 (un-audited) A Cash Flow from operating activities 1 Profit/(loss) before Tax and Exceptional Items 1,769.59 2,161.52 2,495.38 707.97 2 Adjustments for: 3 Depreciation and Amortisation Expense 421.15 455.53 601.09 180.70 4 Fina
Slide 49: 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% 9.3% 9.2% 9.4% 9.5% 45% 61% 61% 40% 54% 35% 50%50% 46% 6.6% 27% 29% 39% 39% 6.0% 5.7% 5.6% 22% 22% 24% 16% 17% 19% 3.5% 3.3% 3.1% 3.0% 1% 2% 0% 0
Slide 50: Five years successful track record
Five years successful track record INR Mn unless stated otherwise Revenue from operations Operational margins Profit After Tax EBITDA (%) Gross Margins (%) 1,810 52,414 1,585 17.5% 17.3% 1,291 40,774 15.7% 16.1% 15.3% 35,346 14.1% 909 24,203 26,604 9.3% 7.1% 8.2% 7.8% 7.2% 7.7% 615 513 14,039 FY20 F
Slide 51: Shareholding Pattern
Shareholding Pattern Share Price Movement MCap as on 30th June’24 Major Share holders among Top 20 (Excluding Promoters) Rs. 8,926 Cr MCap as on As on 30th June 2024 28th Mar'23 Rs. 5,994 Cr OMAN INDIA JOINT INVESTMENT FUND II WHITEOAK CAPITAL MCap as on SIXTEENTH STREET ASIAN GEMS FUND 14th Jul'23
Slide 52: 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 53: 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 52