Pc Jeweller Ltd. · NSE:PCJEWELLER
Pc Jeweller — Investor Presentation (May 2013)
32 slides from Pc Jeweller's investor presentation, May 2013
Slide 1: Corporate Presentation May 2013
Corporate Presentation May 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 Complete Back-end integration, 100% Gold Hedging, Robust Internal Processes and a Professional Management ensures Profitable Business Model
Slide 4: Discussion Outline
Discussion Outline 1. The Journey of India’s fastest growing “Jeweller for Generations” brand 2. Business Model and Overview 3. Key Competitive Strengths and Business Strategy 4. Financial Performance 4
Slide 5: The Journey of the 'Jeweller for Generations' began here
The Journey of the ‘Jeweller for Generations’ began here …. PCJ showroom at Karol Bagh (New Delhi) – Single showroom in 2005 5
Slide 6: 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 7: Strategically Located 36 Showrooms across 28 Cities, across 10 States
Strategically Located 36 Showrooms across 28 Cities, across 10 States Amritsar Panchkula Ludhiana Dehradun Chandigarh Hardiwar Hisar Shri Ganganagar Rohtak Ghaziabad New Delhi Faridabad Gurgaon Noida Ajmer Lucknow Jodhpur Beawar Pali Kanpur Bhilwara Ahmedabad Bhopal Jabalpur Vadodara Indore Bilaspur
Slide 8: Growing Retail Footprint – Over 1,97,000 sft. of Retail Area
Growing Retail Footprint – Over 1,97,000 sft. of Retail Area 1,97,772 1,64,572 2,50,000 40 35 2,00,000 1,38,274 # of Showrooms 36 30 square feet 30 1,01,188 1,50,000 25 24 20 34,676 65,054 1,00,000 17 15 13,016 27,276 10 10 13,016 50,000 1 1 5 5 3 - - FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13
Slide 9: Discussion Outline
Discussion Outline 1. The Journey of India’s fastest growing “Jeweller for Generations” brand 2. Business Model and Overview 3. Key Competitive Strengths and Business Strategy 4. Financial Performance 9
Slide 10: Robust Business Model
Robust Business Model Revenue from Operations FY 13 – Rs. 40,184 mn PC Jeweller Limited Domestic Sales Exports Sales FY13 – Rs. 29,876 mn FY13 – Rs. 10,307 mn Gold Jewellery Diamond Jewellery Other Jewellery FY13 – Rs.20,459 mn FY13 – Rs. 9,202 mn FY13 – Rs. 216 mn Strong Focus on Domestic Retail Bu
Slide 11: Key Pegs of PCJ Business Model
Key Pegs of PCJ Business Model Extensive Research before opening any Store Large Variety – Best as Large Format Store and compared to any other Comfortable Ambience Jeweller in that Location Intelligent Pricing Best in class Customer Policies Key is to Develop Customer Trust and Confidence in PCJ Br
Slide 12: Product Mix - Increasing Focus on Diamond Jewellery
Product Mix - Increasing Focus on Diamond Jewellery 0.90% 0.70% 0.70% 0.723% 100% 17.9% 22.9% 26.7% 80% 30.8% 81.2% % breakup 76.4% 60% 72.6% 68.5% Diamond Jewellery contribution to domestic sales grew from 40% 17.9% in FY10 to 30.8% in FY 2013 20% 0% FY 2010 FY 2011 FY 2012 FY 2013 Gold Jewellery D
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: Strong Manufacturing Set-up
Strong Manufacturing Set-up Manufacturing Setup S. No Location Area (sq ft.) Focus of Operations 1 Sector 63, Noida, Uttar Pradesh 34,000 Domestic market F-50, Selaqui, Dehradun, 2 8,611 Domestic market Uttarakhand G-54, Selaqui, Dehradun, 3 2,300 Domestic market Uttarakhand 4 65 Noida SEZ, Uttar Pr
Slide 15: Experienced Promoters and Senior Management Team
Experienced Promoters and Senior Management Team Chairman – Padam Chand Gupta Managing Director – Balram Garg President President Chief President President (HR, Senior Vice- Senior Vice- (Gold (Diamond Operating (Finance) Marketing & President President Manufacturing) Manufacturing) Officer (Sanjeev
Slide 16: PC Jeweller - Brief Overview
PC Jeweller - Brief Overview Trusted name - Ensures purity by selling only Hallmarked Gold jewellery and Certified diamonds PCJ – An Consistent focus on Quality, Design and Unique Customer Centric Policies - Helps gain customer loyalty and Established and referrals Trusted Brand Exclusive bran
Slide 17: PC Jeweller - Brief Overview (Cont'd)
PC Jeweller - Brief Overview (Cont’d) Manufacturing units at Dehradun (Uttarakhand), Noida (Uttar Pradesh) and Noida SEZ (Uttar Pradesh) • Over 44,900 sq. ft.* of manufacturing facility exclusively for Domestic operations • Over 38,000 sq. ft.^ of manufacturing facility exclusively for Export oper
Slide 18: Discussion Outline
Discussion Outline 1. The Journey of India’s fastest growing “Jeweller for Generations” brand 2. Business Model and Overview 3. Key Competitive Strengths and Business Strategy 4. Financial Performance 18
Slide 19: Key Competitive Strengths
Key Competitive Strengths #1 PCJ – An Established Brand Growing Network of Strategically Located Large Format Showrooms – 36 Showrooms in 28 Cities, 10 #2 States #3 Growing Diamond: Gold Sales ratio, better Margin Profile and increasing Same Store Sales #4 Business De-risked from Gold Price Fluctuat
Slide 20: Business Strategy
Business Strategy #1 Focus on profitable growth of Retail network Continue thrust on growing Diamond and other high-margin jewellery – Target 35% Diamond jewellery sales #2 in next 3 years Continue to explore introducing Luxury market Brand focused on High-end Gold, Diamond & Precious stones #3 jewe
Slide 21: Innovative Customer Oriented Marketing Initiatives
Innovative Customer Oriented Marketing Initiatives “Jewels for Less” Scheme enables our customers to make advance payments in monthly installments during the scheme period to purchase, at the end of such period, jewellery of a value higher than the aggregate advance amounts paid Customer Over
Slide 22: Discussion Outline
Discussion Outline 1. The Journey of India’s fastest growing “Jeweller for Generations” brand 2. Business Model and Overview 3. Key Competitive Strengths and Business Strategy 4. Financial Performance 22
Slide 23: 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 24: Strong Balance Sheet
Strong Balance Sheet Crisil Long Term Rating – Crisil A Crisil Short Term Rating – Crisil A1 Networth – Rs. 13,888 mn (as on 31 March, 2013) Debt (Short Term and Long Term) – Rs. 2,309 mn (as on 31 March, 2013) Debt/ Equity ratio – 0.16 24
Slide 25: Key Financials for FY 2013 – P&L Items
Key Financials for FY 2013 – P&L Items Particulars for FY 2013 INR Mn Domestic Operations : INR 29,876 mn Revenue from operations 40,184 Cost of materials consumed 33,659 Export Operations: INR 10,308 mn Purchases of traded goods 19 Manufacturing Expenses 249 Gross Profit 6,257 Domestic Gross Margin
Slide 26: Key Financials for Q4 2013 – P&L Items
Key Financials for Q4 2013 – P&L Items Particulars for Q4 FY 2013 INR Mn Domestic Operations : INR 8,848 mn Revenue from operations 11,442 Cost of materials consumed 9,559 Export Operations: INR 2,594 mn Purchases of traded goods 10 Manufacturing Expenses 60 Gross Profit 1,813 Domestic Gross Margins
Slide 27: Comparing Q4 FY 2013 and Q3 FY 2013 (P&L Items)
Comparing Q4 FY 2013 and Q3 FY 2013 (P&L Items) Particulars (INR Mn) Q4 FY 2013 Q3 FY 2013 Revenue Revenue from Operations 11,442 10,185 Revenue from Domestic Operations 8,848 8,523 Revenue from Exports Operations 2,594 1,662 Gross Profit 1,813 1,492 Gross Margins 15.85% 14.64% Gross Margins for Dom
Slide 28: Comparing FY 2013 and FY 2012 (P&L Items)
Comparing FY 2013 and FY 2012 (P&L Items) Particulars (INR Mn) FY 2013 FY 2012 Revenue Revenue from Operations 40,184 30,419 Revenue from Domestic Operations 29,876 20,395 Revenue from Exports Operations 10,308 10,024 Gross Profit 6,257 4,216 Gross Margins 15.57% 13.86% Gross Margins for Domestic Op
Slide 29: Comparing FY 2013 and FY 2012 (BS Items)
Comparing FY 2013 and FY 2012 (BS Items) 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
Slide 30: Thank You
Thank You
Slide 31: Annexure
Annexure 31
Slide 32: Opened 6 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 32