Senco Gold Limited · NSE:SENCO
Senco Gold — Investor Presentation (July 2023)
27 slides from Senco Gold's investor presentation, Jul 27, 2023
Slide 1: Senco Gold & Diamonds exchange filing cover letter
h SnNCO'* \<2 GoLD & DIAMoNDS Crqftsnurns frip fot y<>t+ Date: 27tt Jvly, 2023 The Manager- Listing The Manager - Listing The National Stock Exchange of India BSE Limited Limited Corporate Relationship Department "Exchange Plaza", Bandra - Kurla Phiroze Jeejeebhoy Towers, Complex, Bandra (EAST), Dal
Slide 2: Senco Gold Limited Corporate Presentation
SENCO GOLD LIMITED Corporate Presentation 24th July, 2023 Private and Confidential 1
Slide 3: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Senco Gold Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 4: Contents
CONTENTS 1 Industry Overview (4-5) 2 Company Overview (6-20) 3 Key Strengths (21) 4 Financial KPI (22) 5 Financial Information (23-25) 3
Slide 5: India's Gems and Jewellery market – TAM of INR 4.7 Tn
India’s Gems and Jewellery market – TAM* of INR 4.7 Tn Share of Organised Sector increasing consistently and likely to Organised players^ grew at ~20% CAGR vs ~14% for the industry over FY17-23 touch 42-47% by fiscal 2026 Structural growth drivers to cause this gain in market share 53-58% Better Cha
Slide 6: Organised players rapidly gaining market share and outperforming industry
Organised players rapidly gaining market share and outperforming industry ▪ Jewellery retailing industry has traditionally been dominated by family-owned small-size standalone stores Organised segment to continue gaining share in the retail jewellery market Organised players grew at ~20% CAGR vs ~14
Slide 7: More than five decades of journey
More than five decades of journey 2nd MOST TRUSTED JEWELLERY BRAND INVESTMENT FROM MARQUEE PE INVESTOR 2019: Received the Best Promising Gems and 2013: Entered northern region by Jewellery Brand award. opening Lajpat Nagar 2020: Crossed 100 showroom mark . showroom in Delhi. 2021: Revenue crossed IN
Slide 8: 5 Decades of Trust with pan India presence across regions
5 Decades of Trust with pan India presence across regions Consistent & Strong Growth over the Years CAGR ~28% INR Cr 4,077 1 • ~30x growth in revenue from INR 134 Cr (FY08) to INR 4,077 Cr (FY23) ~30x 134 2008 2023 Pan India Presence with Eastern India Dominance 2 • Presence in 13 Indian states and
Slide 9: Pan-India presence; Largest Retail Player in Eastern Region
Pan-India presence; Largest Retail Player in Eastern Region Widespread 136 75 61 Distribution Network Showrooms Company Owned Franchise # Showrooms* in East & North East Largest Jewellery 108 77 66 Retail Player 50 20 13 1 in Eastern Region** Senco PC Titan MP PC Kalyan Joyallukas Chandra Jewellers
Slide 10: Established asset-light 'franchise' model
Established asset-light ‘franchise’ model Strong distribution Strong distribution network leveraging networkmodel asset light franchisee leveraging asset both – evaluating light‘franchisee franchiseowned, modelfranchisee operated’ models Operational leverage of franchisee model Senco has added (net)
Slide 11: Leveraging Our Strong Bengal Karigari
Leveraging Our Strong Bengal Karigari Commit significant Quality finished Maintain exclusivity volumes of work products at of in-house designs to Karigar competitive prices Our presence in West Bengal gives Stringent quality control us to access quality craftsmen in procedures to ensure standardised
Slide 12: Strong brand name with heritage
Strong brand name with heritage Quality Standards and Transparency Design and Innovation Consumer Trust Run by 4th generation entrepreneur as promoters with investment from SAIF Reputed brand ambassadors like Kiara partners India IV Limited and Oman Advani, Sourav Ganguly, Vidya Balan India Joint In
Slide 13: Product Range Catering to Diverse Customer Group
Product Range Catering to Diverse Customer Group Bouquet of Brands (highlighted key brands) Lightweight Silver and Fashion Bridal Solitaire Men’s Jewellery Jewellery Jewellery Diamonds Jewellery ~1,20,000 designs for gold jewellery Light Weight, With active Catalogue Affordable Jewellery (across bra
Slide 14: Calibrated focus on light, affordable jewellery
Calibrated focus on light, affordable jewellery with the intention to cater to the upwardly mobile and younger generation Diverse jewellery collection with across various price points starting from INR 2,000 to maximise customer base Active Catalogue ~1,20,000 designs for gold jewellery ~69,000 desi
Slide 15: Reinforcing the Hyperlocal Touch, Playing as a Jewellery Retail Pan-India Brand
Reinforcing the Hyperlocal Touch, Playing as a Jewellery Retail Pan- India Brand KIARA ADVANI – Actress SOURAV GANGULY – Ex-Captain VIDYA BALAN - Actress Indian Cricket Team FY22 Regional Brand Ambassadors in Eastern India Market ~9.38 mn INR 1,578.05 Mn – Cumulative advertisement and sales promotio
Slide 16: Unique Customer Centric and Hyperlocal Marketing Strategies
Unique Customer Centric and Hyperlocal Marketing Strategies • Capitalise on ‘Dhanteras’, ‘Akshay Tritiya’ or ‘new years’ of various states such as West Bengal, Orissa and Maharashtra to promote sales • Loyalty programs Key • One year free insurance on purchase of diamond jewellery above Marketing a
Slide 17: Omni-channel Retail Network
Omni-channel Retail Network Phy-gital Model OMNI CHANNEL HYPERLOCAL 136 Fulfillment Order Processing Showrooms 1 with customized showroom format Hub & Spoke Model App ‘MySenco’ app with over 2,60,000+ downloads 1 Customers Own Websites www.sencogoldanddiamonds.com Website www.mydigigold.com Video/ T
Slide 18: Innovation and Digital Focus
Innovation and Digital Focus Standard SQL server reporting services (“SSRS”) Customer 360 Degree Adopting augmented reality (AR) insights enables targeted through Magic Mirror and virtual marketing try on of ornaments Periodic re-shuffling of Digi Gold – A Platform to buy/sell stock inter and intra
Slide 19: Established systems and procedures to mitigate risk and improve efficiencies
Established systems and procedures to mitigate risk and improve efficiencies Consumer Manufacturing Strong technology focus to maintain greater control over business operations ▪ Integrated Systems Sourcing & Sales & Retailing Procurement ▪ Data Analysis & Forecasting ▪ Institutionalized Process Bra
Slide 20: Experienced Board and management team backed by institutional investor support
Experienced Board and management team backed by institutional investor support RANJANA SEN Chairperson and Whole Time Director BHASKAR SEN Independent Director ▪ Over 29 years of experience in the jewellery industry ▪ Experience of more than four decades in the banking sector ▪ Associated with our C
Slide 21: CSR Initiatives
CSR Initiatives • Our vision for CSR is as follows: – Empowerment of women; – Education in rural areas for the younger generations and economically backward • P.C. Sen Charitable Trust, one of our Group Entities, has been set up to undertake CSR activities on behalf of our Company. The focus of the
Slide 22: Senco Gold Limited – Competitive Strengths
Senco Gold Limited – Competitive Strengths Strong brand name with heritage and a Cater to the upwardly mobile and 01 legacy of over five decades 06 younger generation. Largest organised jewellery retail player in 02 the eastern region of India based on number of stores 07 In-house modern and tech en
Slide 23: Consistent Revenue Growth, Profitability and Return on Equity
Consistent Revenue Growth, Profitability and Return on Equity INR Mn unless stated otherwise Revenue from operations Operational margins Profit After Tax EBITDA (%) Gross Margins (%) YoY Growth CAGR 19% Gross margins is a function of franchisee gross 22% 40,774 margins also 35,346 17.5% 15.7% 16.1%
Slide 24: Balance Sheet (Ind-AS) - Restated
Balance Sheet (Ind-AS)- Restated FY21 FY22 FY23 Particulars (INR Mn) (Consolidated) (Consolidated) (Consolidated) ASSETS Non-current assets Property, plant and equipment 673.84 691.00 847.02 Capital work-in-progress 24.38 65.14 130.64 Right of use assets 1,417.26 1,516.20 1,926.70 Other intangible a
Slide 25: Statement of Profit and Loss (Ind-AS) - Restated
Statement of Profit and Loss (Ind-AS) - Restated FY21 FY22 FY23 Particulars (INR Mn) (Consolidated) (Consolidated) (Consolidated) Revenue from Operations 26,603.79 35,346.41 40,774.04 Other Income 145.45 127.69 311.36 Total Income 26,749.24 35,474.10 41,085.40 Expenses: Cost of Material Consumed 22,
Slide 26: Cash Flow Statement (Ind-AS) - Restated
Cash Flow Statement (Ind-AS) - Restated FY21 FY22 FY23 Particulars (INR Mn) (Consolidated) (Consolidated) (Consolidated) Cash Flow from operating activities Profit/(loss) before Tax 836.61 1,769.59 2,161.52 Adjustments for: Depreciation and Amortisation Expense 395.71 421.15 455.53 Finance Costs 666
Slide 27: Thank You
For further information, please contact Mr. Sanjay Banka Chief Financial Officer sanjay.banka@sencogold.co.in CIN: U36911WB1994PLC064637 Telephone: +91 33 4021 5000 Email: IR@sencogold.co.in Website: www.sencogoldanddiamonds.com THANK YOU