Senco Gold Limited · NSE:SENCO
Senco Gold — Q4 FY24 Earnings Presentation
49 slides from Senco Gold's earnings presentation, May 25, 2024
Slide 1: Investor Presentation Q4 & FY24
SENCO GOLD Investor LIMITED Presentation India’s 2nd Most Trusted* & Q4 & FY24 2nd Most Desired Jewellery Brand** Featured as Top 100 luxury brand BSE – 543936 *4th year in a row NSE - SENCO ** as per TRA report 2023 Bloomberg – SENCO:IN 1 25th May 2024
Slide 2: 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 3: Index
Index 01 Company Overview (4-12) 02 Investment Highlights (13-35) 03 Business Strategies (36-38) 04 Financial Information (39-47) 05 CSR (48) 33
Slide 4: Company Overview
01 Company Overview 4
Slide 5: 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 6: 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, Son of Shri Maran Chand Sen Son of Shri Shaankar Sen used to work at a Jewellery inherited a small cloth store in Son
Slide 7: Over eight decades of journey
Over eight decades of journey Entered southern The Humble Beginning Adopted franchisee region by opening route to expand 2016 Shri M C Sen started the showroom in 2010 outside West Bengal jewellery business in Bangalore. FRANCHISEE MODEL by opening first Dhaka and shifted to Introduced Everlite show
Slide 8: 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 from Elevation Capital (SAIF Partners India IV Limited) Over 2 million Loyal customers 2014 Rewarding l
Slide 9: 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 ▪ Over 30 years of experience in the jewellery industry Technology with over 4 decades of Experience in Teleco
Slide 10: 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 11: Key Highlights
Key Highlights 80+ 159 66 107 2,560+ Franchisee Towns & Years Showrooms Team Strength Showrooms Cities Trust & Legacy Pan India Asset light Presence across Metro, 21% 19% Presence 32% Franchisee Model 11.4% Tier-i, Tier-ii & iii 2 Mn + 4 yrs Revenue CAGR SSSG growth Old Gold Exchange Stud ratio Loya
Slide 12: Awards & Recognitions
Awards Awards& & Recognitions Recognitions India’s 2nd Most Trusted Brand ET Inspiring Women Leaders 2023 Excellence in Design Innovation New Powerful Women The Rising Star, 40 Under 40 Award by TRA Research Pvt. Ltd. By ET Women's Conclave 2023 in Gold & Diamond Entrepreneur Award By IIJS Premiere
Slide 13: Investment Highlights
02 Investment Highlights
Slide 14: India's Gems and Jewellery market – TAM of USD 80 billion
India’s Gems and Jewellery market – TAM* of USD 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 15: 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 Rising share of organised retail in jewellery to continue rural India and rises with income levels 68 60 India is the 95 94 40 2nd 5 6 32 largest gold 2000 2007 2020 2025 market in the worl
Slide 16: 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 17: Pan-India presence & largest Retail Player in Eastern Region
Pan-India presence & largest Retail Player in Eastern Region 93 159 Showrooms 159 Company showrooms (Fiscal 24: 23 showrooms Large since Apr-20: 47 showrooms) Distribution Showrooms 66 Network Franchisee showrooms* 16 107 Region Own Franchisee Total Geographically East ( including WB) 54 61 115 Dive
Slide 18: Customized Showroom formats catering to all segments
Customized Showroom formats catering to all segments Classic D’Signia Everlite Modern House of Senco Sennes Traditional Customer Base Younger Target Audience Premium and Upcoming Lifestyle, LGD in existing generation & Super Luxury HNI Geographies and accessories geography millennials Average Ticket
Slide 19: Omni-channel Retail Network
Omni-channel Retail Network Phygital Model OMNI CHANNEL HYPERLOCAL 159+ 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 20: 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) 47 showrooms from FY21 till date ▪ Leverage Hub
Slide 21: 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 22: Focus on light weight jewellery
Focus on light weight jewellery Diverse jewellery collection with across various price points starting from INR 2,000 Active Catalogue 1,51,000+ designs for gold jewellery 85,000+ designs for diamond jewellery Our strategy and experience in selling light weight jewellery has enabled us to reach out
Slide 23: Glimpses of New Collections
Glimpses of New Collections LOVE COLLECTION Step into the world of Romantique by Senco—a testament to love’s eternal bloom, with rubies and florals set in the delicate dance of gold and diamonds, crafting joy for every generation. HERMOSA COLLECTION A symphony of nature-inspired elegance and vibrant
Slide 24: Glimpses of New Collections
Glimpses of New Collections RIBBON COLLECTION A tribute to divine love, A symphony of resilience and echoing the splendor of Ram grace, where the art of ribbon Mandir and the virtues of dance shapes jewelry that Ramayana’s cherished icons— celebrates the triumphant crafted with nakashi spirit and el
Slide 25: Seasonal Campaigns & Offers
CERTIFIED 0% 100% FREE NATURAL DIAMONDS © EASYEMI © EXCHANGE VALUE ~ INSURANCE BUY BACK LIFETIME FACILITY MAINTENANCE
Slide 26: Campaign of New Collections
Campaign of New Collections SOLITAIRE COLLECTION BsENco SULLA . > ‘GPN-D000740744 wwrw.sencogoldanddiamonds.com
Slide 27: Campaign of New Gossip Collections
Campaign of New Gossip Collections
Slide 28: Driving Pan India Brand Loyalty
Driving Pan India Brand Loyalty Ishaa Saha Jaya Ahsan Ditipriya Roy Regional Brand Vidya Balan Ambassadors in Marketing & Promotional Exp. Eastern India FY24 Rs. 103.3Cr Market Digital Focus % of Revenue FY 24 – 2% Last 3ys avg. Below 2.0% Kiara Advani Sourav Ganguly Madhumita Sarcar 28
Slide 29: 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 30: 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 31: 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 32: 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 33: Digital Initiatives: Sencoverse (Metaverse)
Digital Initiatives: Sencoverse (Metaverse) Future ready to attract GenZ: • Metaverse has seen 76,000 visitors post its launch. • Aims to offer cutting-edge, immersive shopping experience. • Virtual environment lets customers browse, try on, and purchase jewellery from home. • Wide range of designs
Slide 34: Robust systems and procedures help seamless collaboration and growth
Robustsystems Robust systems andand procedures procedures helps seamless helps seamless collaboration collaboration and growthand growth Customer Manufacturing Strong technology focus to maintain greater control over business operations Sourcing & Sales & Retailing ▪ Integrated Systems Procurement ▪
Slide 35: 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* • Small leather goods: INR 1,000 • 9 SIS formats (only leather to INR 7,500 ba
Slide 36: Business Strategies
03 Business Strategies
Slide 37: 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 38: Key Growth Drivers
Key Growth Drivers INR Mn unless stated otherwise Showroom expansion Pan India Revenue Growth Stud Ratio 4yr Company Franchisee Growth SSSG CAGR 10% 11% 159 21% 127 136 9% 8% 112 66 33% 27% 29% 57 61 52 19% 15% 93 10% 10% 70 75 7% 60 FY21 FY22 FY23 FY24 FY21 fY22 FY23 FY24 FY21 FY22 FY23 FY24 Franch
Slide 39: Financial Information
03 Financial Information
Slide 40: Management Comment on Q4 & FY24 performance
Management Comment on Q4 & FY24 performance “We are pleased to announce our results for FY24, as it was a major milestone for us, and we were listed on BSE and NSE on 14th July, 23. Our IPO was oversubscribed by 77.25X overall and 190.56x in QIB portion. We raised Rs 405 Cr by IPO including OFS of R
Slide 41: FY24 and Q4 FY24 Consolidated performance
FY24 and Q4 FY24 Consolidated performance FY 23-24 Q4 Revenue from operations (Rs. mn) Revenue from operations (Rs. mn) • Achieved 40% yoy growth in Q4 due to higher footfall growth, gold price rise and attractive 52,414 11,373 offers and launches. 40,774 8,139 • FY24 YOY revenue growth of 29% and r
Slide 42: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Y-o-Y (%) Particulars (INR Mn) Q4 FY24 Q4 FY23 Y-o-Y (%) Q3 FY24 FY24 FY23 FY22 FY24 Vs FY23 Revenue from Operations 11,372.84 8,139.34 39.7% 16,522.02 52,414.43 40,774.04 28.5% 35,346.41 Cost of Goods Sold 9,429.04 6,604.88 42.8% 13,438.63 44,400.53 34,219.34
Slide 43: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Particulars (INR Mn) As at As at As at Particulars (INR Mn) As at As at As at EQUITY AND LIABILITIES Mar-22 Mar-23 Mar-24 ASSETS Mar-22 Mar-23 Mar-24 Equity Non-current assets Total Equity 7,259.67 9,455.20 13,655.42 Property, plant and equipment 691.00 847.02 1,158.24 N
Slide 44: Cash Flow Statement (Consolidated)
Cash Flow Statement (Consolidated) Sl. Particulars FY22 FY23 FY24 A Cash Flow from operating activities 1 Profit/(loss) before Tax and Exceptional Items 1,769.59 2,161.52 2,495.38 2 Adjustments for: 3 Depreciation and Amortisation Expense 421.15 455.53 601.09 4 Finance Costs -71.50 860.53 1,081.03 5
Slide 45: Key Financial Metrices
Key Financial Metrices 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% 45% 61% 50% 50% 54% 29% 46% 6.6% 6.0% 27% 39% 5.7% 22% 22% 19% 16% 17% 3.5% 3.3% 3.1% 1% 2% 0.1% 0.2% 0.1% FY22 FY23 FY24 FY22 FY
Slide 46: 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% 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% 615 FY20 FY21 FY22 FY23 FY24 FY2
Slide 47: Shareholding Pattern
Shareholding Pattern Share Price Movement MCap as on 18th May'24 Major Share holders among Top 15 (Excluding Promoters) 1050 MCap as on Rs. 6,800Cr As on 31st March 2024 28th Mar'23 950 Rs. 5,994 Cr 850 750 SAIF PARTNERS INDIA IV LIMITED 650 MCap as on OMAN INDIA JOINT INVESTMENT FUND II 550 14th Ju
Slide 48: Corporate Social Responsibility
Corporate Social Responsibility ❖ The Key Focus areas identified towards the Corporate Social responsibilities covers health projects & initiatives for under privileged section of the society , education projects & initiatives for the under- privilege children , women and youth in the rural areas an
Slide 49: Thank You
THANK YOU For further information, please contact Sanjay Banka Chief Financial Officer & Head IR sanjay.banka@sencogold.co.in CIN: L36911WB1994PLC064637 Telephone: +91 33 4021 5000 Email: IR@sencogold.co.in Website: www.sencogoldanddiamonds.com