Pc Jeweller Ltd. · NSE:PCJEWELLER
Pc Jeweller — Investor Presentation (August 2013)
26 slides from Pc Jeweller's investor presentation, Aug 1, 2013
Slide 1: PC Jeweller Limited Corporate Presentation
PC Jeweller Limited Corporate Presentation 1st August 2013
Slide 2: Disclaimer
Disclaimer Certain statements are included in this release which contain words or phrases such as “will,” “aim,” “will likely result,” “believe,” “expect,” “will continue,” “anticipate,” “estimate,” “intend,” “plan,” “contemplate,” “seek to,” “future,” “objective,” “goal,” “project,” “should,” “will
Slide 3: Our Vision
Our Vision PC Jeweller today One of the Fastest and Profitably Growing Jewellery Retail Company in India with 36 Showrooms across 28 Cities, across 10 states Strong reputation and Brand Recall in Northern and Central India Focus on Wedding jewellery with increasing contribution from High Margin
Slide 4: Journey of 'Jeweller for Generations' began here
Journey of ‘Jeweller for Generations’ began here …. PCJ showroom at Karol Bagh (New Delhi) – First showroom in 2005 ` 4
Slide 5: Right Business Plan + Execution Speed + Careful Optimism over the years
Right Business Plan + Execution Speed + Careful Optimism over the years 7 New Showrooms Lucknow Indore 6 New Showrooms Bhopal Kanpur Raipur Rohtak 2 New Showrooms Commenced Jodhpur operations in Apr Faridabad Rajouri Garden (ND) Bhilwara Greater Kailash I (ND) 2005 Dehradun
Slide 6: Opened showrooms post IPO (in Dec 2012)
Opened 6 showrooms post IPO (in Dec 2012) Jabalpur, Madhya Pradesh Shri Ganganagar, Rajasthan Ahmedabad, Gujarat Vadodara, Gujarat Hisar, Harayana Paschim Vihar, New Delhi Today, PCJ has 36 Showrooms across 28 Cities, across 10 States ` 6
Slide 7: PC Jeweller Business Model
PC Jeweller Business Model FY 13 Revenue – Rs. 40,184 mn PC Jeweller Limited Domestic Sales Exports Sales FY13 Revenue – Rs. 29,876 mn FY13 Revenue – Rs. 10,307 mn Gross Margins – 15.00% – 16.00% Gross Margins – 9.00% - 10.00% Gold Jewellery Diamond Jewellery Other Jewellery FY13 Revenue – Rs.20,459
Slide 8: Key Pegs of PCJ Business Model
Key Pegs of PCJ Business Model Extensive Research before opening any Store Large Variety – Best as Large Format Stores compared to any other Jeweller in that Location Intelligent Pricing Best in class Customer Policies Key is to Develop Customer Trust and Confidence in PCJ Brand, Quality, Variety an
Slide 9: Growing Retail Footprint
Growing Retail Footprint 36 Showrooms across 28 Cities, across 10 States Amritsar Ludhiana Panchkula Dehradun ~1,98,000 Sq. Ft. of Retail Area Chandigarh Hardiwar Hisar Shri Ganganagar Rohtak Ghaziabad Large Format Showrooms at High street New Delhi Faridabad locations Gurgaon Noida Ajmer Luck
Slide 10: Retail Sales Analysis
Retail Sales Analysis FY 13 FY 12 Operational stores in FY 30 24 Total Retail Sales (Rs. mn) 29,876 20,395 Stores with Annual Revenue > Rs. 1,000 mn 8 4 Stores with Annual Revenue btw Rs. 500 – 1,000 mn 15 8 Stores with Annual Revenue < Rs. 500 mn 7 12 For a store in the same city as an existing s
Slide 11: Typical Store Level Economics
Typical Store Level Economics Indicative workings for a Store with an area of 5,000 sq. ft. Indicative Capital Employed at the Store Target Annual Store Sales Rs. 600 mn Total Inventory Rs. 250 mn Gold: Diamond Jewellery Mix 70% : 30% Store Inventory Rs. 187.5 mn Gross Margins – Gold 9% – 10% Back-e
Slide 12: High Focus on Diamond Jewellery
High Focus on Diamond Jewellery 0.90% 0.70% 0.70% 0.723% 100% 17.9% 80% 22.9% 81.2% 26.7% 30.8% 76.4% 72.6% 68.5% 60% % breakup 40% 20% 0% FY 2010 FY 2011 FY 2012 FY 2013 Gold Jewellery Diamond Jewellery Other Jewellery Gross Margins in Diamond Jewellery (~30%-35%) significantly higher as compared
Slide 13: Business De-risked from Gold Price Fluctuations
Business De-risked from Gold Price Fluctuations We hedge our gold and do not seek to profit from gold price movements Gold Purchase Arrangement Domestic Exports Mode of Purchase RBI Nominated Agency/ Nominated Banks Direct Import for SEZs / RBI Nominated Agency/ Nominated Banks Credit Days Upt
Slide 14: Recent Regulatory Updates
Recent Regulatory Updates New Import Policy RBI Circular dated July 22, 2013 All nominated banks/ nominated agencies will have to ensure that at least one fifth (20%) of every lot of import of gold (in any form/ purity) is exclusively made available for the purpose of export They will be require
Slide 15: Expansion Plans
Expansion Plans Jammu Agra Guwahati Lucknow Patna Ahmedabad Rajkot Nagpur Kolkata Total showrooms to be opened 14 Mumbai Bhubaneswar Sites finalised ( ) 11 Hyderabad Sites under Consideration ( ) 5 Bangalore Chennai Mangalore ` 15
Slide 16: Professional Management
Professional Management Chairman – Padam Chand Gupta Managing Director – Balram Garg President President Chief Chief Financial President (HR & Senior Vice- Senior Vice- (Gold (Diamond Operating Officer BD) President President Manufacturing) Manufacturing) Officer (Sanjeev (T.M. (Accounts & (Projects
Slide 17: Strong Manufacturing Set-up
Strong Manufacturing Set-up S. No Location Area (sq ft.) Focus of Operations 1 Noida, Uttar Pradesh 34,000 Domestic market 2 Selaqui, Dehradun, Uttarakhand 8,611 Domestic market 3 Noida SEZ, Uttar Pradesh 34,247* Exports 4 Noida SEZ, Uttar Pradesh 3,938 Exports Vertically integrated operations – S
Slide 18: Strong Manufacturing Set-up (Contd.)
Strong Manufacturing Set-up (Contd.) State of art manufacturing facility (34,000 sq. ft.) in Noida, Uttar Pradesh (India) ` 18
Slide 19: Key Investment Highlights
Key Investment Highlights Trusted name - Ensures purity by selling only Hallmarked Gold jewellery and Certified diamonds PCJ – An Established and Consistent focus on Quality, Design and Unique Customer Policies - Helps gain customer loyalty and referrals Trusted Brand Exclusive brand image and
Slide 20: Key Investment Highlights (contd.)
Key Investment Highlights (contd.) Vertically integrated operations – Sourcing, Manufacturing, Retail and Exports Large modern manufacturing set-up gives ability to capture margins across the jewellery value chain Manufacturing Significant portion of jewellery manufactured in-house (~6,230 kg
Slide 21: Key Financials
Key Financials
Slide 22: Annual Performance Trends
Annual Performance Trends Revenue from Operations Sales breakup - Consistently growing Domestic Sales 35,000 100% 28,000 33.5% 25.7% 80% Sales (INR Mn) 34.4% 33.0% 74.3% 21,000 40,184 60% 66.5% 65.6% 67.0% % 14,000 30,419 40% 19,771 7,000 9,848 20% 0 0% FY 2010 FY 2011 FY 2012 FY2013 FY 2010 FY 2011
Slide 23: Margin Analysis
Margin Analysis FY 13 FY 12 Particulars (Annual) (Annual) Revenue from Operations (Rs. Mn.) 40,184 30,419 Domestic Operations 74.35% 67.05% Export Operations 25.65% 32.95% Gross Margins 15.57% 13.86% Domestic Operations 15.95% 15.19% Export Operations 14.48% 10.92% (The export gross margins are 9.00
Slide 24: Balance Sheet
Balance Sheet Particulars (INR Mn) As on 31 March 2013 As on 31 March 2012 A. Equity and Liabilities 1 Shareholders’ funds 13,888 5,558 (a) Share capital 1,791 1,340 (b) Reserves and surplus 12,097 4,218 2. Non current liabilities 24 28 3. Current liabilities 20,439 15,392 (a) Short term borrowings
Slide 25: Management Discussion & Analysis
Management Discussion & Analysis Gold price, after remaining high for a long time, corrected in recent months. This correction has led to improvement in gold jewellery volumes at the industry level We hedge our Gold and hence we have been not been affected by any inventory losses due to gold flu
Slide 26: Thank You
Thank You `