Kalyan Jewellers India Ltd. · NSE:KALYANKJIL
Kalyan Jewellers India — Q2 FY22 Earnings Presentation
40 slides from Kalyan Jewellers India's earnings presentation, Nov 10, 2021
Slide 1: Exchange filing cover letter: Investors/Analysts Presentation
SEC/63/2021 November 10, 2021 BSE Limited National Stock Exchange of India Ltd Corporate Relationship Department Exchange Plaza, 1st Floor, New Trading Ring Bandra-Kurla Complex, Rotunda Building, P J Towers Bandra (East), Dalal Street, Fort, Mumbai - 400051 Mumbai - 400 001 Symbol: KALYANKJIL Scrip
Slide 2: Investor Presentation November 2021
I N V ESTO R P R E S E N TAT I O N November 2021 K A LYA N J E W E L L E R S I N D I A L I M I T E D
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Kalyan Jewellers India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 4: Contents
CONTENTS 01 5-7 03 24-26 COMPANY OVERVIEW STRATEGIC PRIORITIES 02 04 9-22 28-39 INVESTMENT HIGHLIGHTS PERFORMANCE REVIEW
Slide 5: Company Overview
01 COMPANY OVERVIEW Py KALYAN JEWELLERS
Slide 6: Introduction To Kalyan Jewellers
Company at a glance Introduction To Kalyan Jewellers ESTABLISHED IN 1993 BY MR. T.S. KALYANARAMAN. BUILT ON A RICH FAMILY LEGACY AND DECADES’ OLD INDUSTRY EXPERTISE OF ITS FOUNDER. KALYAN JEWELLERS: INDIA’S TRUSTED JEWELLER One of India’s largest Pan-India presence with scaled operations in jeweller
Slide 7: Key Highlights
Company at a glance Key Highlights 28 Years 117 30 823 Showrooms Showrooms in "My Kalyan" Since Formation in India Middle East Grassroots Stores 5 21 13 7,815 States & Union Territories Procurement Centres Employees Countries in India KALYAN JEWELLERS INDIA LIMITED 6
Slide 8: Evolution Of A Trusted Pan-India Brand
Key milestones Evolution Of A Trusted Pan-India Brand Opened first Launched “My Kalyan” Entered Maharashtra Entered Chennai Incremental equity Entered Bihar 120 showrooms in India showroom under customer outreach and Middle East markets and East India investment by Warburg market and 30 showrooms in
Slide 9: Investment Highlights
02 INVESTMENT HIGHLIGHTS Py KALYAN JEWELLERS
Slide 10: Kalyan Jewellers: Built On Core Competitive Strengths
Key pillars of strength Kalyan Jewellers: Built On Core Competitive Strengths 1 Leading brand in a large market with rapidly 6 Robust and Effective Internal Control Processes increasing organised share driven by significant Information technology and operations management systems growth tailwinds to
Slide 11: Indian Jewellery Market: Favorable Trends And Characteristics
Industry overview Indian Jewellery Market: Favorable Trends And Characteristics Rising Share Of Organised Retail In Gold Jewellery Demand And Ownership Is Jewellery To Continue Higher In Rural India And Rises With Income 2nd 3rd Levels Organised (%) Unorganised (%) Largest gold market in Highest com
Slide 12: Organised Jewellery Market: Structural Growth Drivers
Key market trends & characteristics Organised Jewellery Market: Structural Growth Drivers JEWELLERY IN INDIA IS A LARGE AND ATTRACTIVE MARKET WITH SIGNIFICANT TAILWINDS Shifting Customer Superior Organisational Supportive Regulatory Behaviour Capabilities And Legislative Changes Customers’ expectati
Slide 13: A Brand Built On Decades Of Trust And Transparency
Established brand A Brand Built On Decades Of Trust And Transparency PIONEERS IN THE INDIAN JEWELLERY RETAILING SPACE IN: Institutionalising Highest Introducing Highest Degree Of Customer Education Quality Standards Pricing Transparency For And Awareness Customers BIS Hallmarking Of Gold Jewellery P
Slide 14: A True Pan-India Player With Expansive Geographical Presence
Presence A True Pan-India Player With Expansive Geographical Presence Pan-India Presence Karnataka Chandigarh Tamil Nadu Odisha Bengaluru – Dickenson Road Chennai – Adayar Bhubaneshwar Bengaluru – Jayanagar Punjab Chennai – Anna Nagar Bengaluru – Koramangala Bengaluru – Malleswaram Bengaluru – Marat
Slide 15: Effective Marketing Strategy
Marketing and promotion strategy Effective Marketing Strategy REINFORCING THE LOCAL TOUCH, PLAYING AS A PAN-INDIA BRAND NATIONAL BRAND AMBASSADORS REGIONAL INFLUENCERS ₹10,000+ mn Pooja Sawant Maharashtra (Marathi) Marketing and Advertising Investments In Last 4 Years Amitabh Katrina Jaya Shweta Nan
Slide 16: Hyperlocal Jeweller Catering To Varied Geographies And Customer Segments
Hyperlocal jeweller Hyperlocal Jeweller Catering To Varied Geographies And Customer Segments Localisation In Brand Localisation Of Our Product Localisation Of Our Showroom Localisation Through Our “My Communication And Marketing Portfolio Experience For Customers Kalyan” Network State and city speci
Slide 17: My Kalyan Centres: Unique Grassroots Customer Outreach Network
‘My Kalyan’ network “My Kalyan” Centres: Unique Grassroots Customer Outreach Network ACTIVITIES AND STRATEGIES IMPLEMENTED TO PROMOTE KALYAN BRAND 823 Grassroots Network: ‘My Kalyan“ centres Facilitator of the neighborhood (~7 centres per showroom) Dedicated “My Kalyan” personnel Showcase product Dr
Slide 18: Wide Range Of Product Offerings Targeted At A Diverse Set Of Customers
Product offerings Wide Range Of Product Offerings Targeted At A Diverse Set Of Customers WEDDING ASPIRATIONAL STAPLE REGIONAL STUDDED JEWELLERY - JEWELLERY JEWELLERY JEWELLERY DIAMOND, POLKI, UNCUT DIAMOND, PRECIOUS STONES SOLD VIA BRANDS SOLD VIA BRANDS SOLD VIA BRANDS SOLD VIA BRANDS MUHURAT MUDHR
Slide 19: Jewellery Sub-brands Catering To Various Product Themes And Price Points
Product offerings Jewellery Sub-brands Catering To Various Product Themes And Price Points LAUNCHED A NUMBER OF SUB-BRANDS TARGETING DIFFERENT CUSTOMER SEGMENTS AND OCCASIONS ANTIQUE (NON YELLOW DIAMOND JEWELLERY DIAMOND JEWELLERY DIAMOND JEWELLERY UNCUT DIAMOND PRECIOUS STUDDED GOLD FINISH) STUDDED
Slide 20: Leveraging Technology To Drive Footfalls, Customer Engagement And Conversion
Digital initiatives Leveraging Technology To Drive Footfalls, Customer Engagement And Conversion Targeted Digital Analytics Driven Digitally Enabled E-commerce Improving Employee Marketing Through Rich Customer Outreach MyKalyan centres Productivity And Efficiency Data Mining And Through Technology
Slide 21: Robust And Effective Internal Processes And Controls
Internal process and controls Robust And Effective Internal Processes And Controls Enterprise Resource Strict Inventory Regular Inventory Big 4 Auditor Integrated Operations To Planning System Allowing Management & Checks Allow Inventory Real-time Visibility Into Monitoring Practices - Movement Betw
Slide 22: Board Of Directors: Enriching Kalyan With Their Expertise And Insight
Board of Directors Board Of Directors: Enriching Kalyan With Their Expertise And Insight Visionary Promoters: Laying Out Business Strategy Mr. T.S. KALYANARAMAN Mr. T.K. SEETHARAM Mr. T.K. RAMESH Chairman and Managing Director Whole-time Director Whole-time Director • 45 years retail experience • ~2
Slide 23: Professional Management Team Driving Business Growth & Expansion
Management Team Professional Management Team Driving Business Growth & Expansion Mr. SANJAY RAGHURAMAN Chief Executive Officer CEO instrumental in driving geographical expansion and evolution into a pan India business, • Qualified CA and CWA supported by a strong and experienced team of cross functi
Slide 24: Strategic Priorities
03 STRATEGIC PRIORITIES Py KALYAN JEWELLERS
Slide 25: A Purpose-led Growth Across Different Phases
History & Future roadmap A Purpose-led Growth Across Different Phases PHASE I PHASE II PHASE III PHASE IV 1993-2003 2004-2011 2012- 2021 ROAD AHEAD Strengthening Growing In Pan-India Expansion, Capitalising On The Our Roots Southern India Professionalisation And Foundation Investment • Focus on bran
Slide 26: Our Strategic Priorities: Balancing Growth And Expansion
Long-term objectives & priorities Our Strategic Priorities: Balancing Growth And Expansion LONG-TERM OBJECTIVES Leverage “My Kalyan” Leverage Scalable Business Widen Product Offerings To Invest In CRM, Network To Deepen Customer Model To Expand Showroom Further Increase Consumer Marketing And Analyt
Slide 27: CSR Initiatives: Addressing Local Needs As A Socially Responsible Organization
CSR CSR Initiatives: Addressing Local Needs As A Socially Responsible Organization OUR CSR INITIATIVES IN HOUSING DEVELOPMENT, EDUCATION AND AREAS RELATED TO COMMUNITY HEALTHCARE IN SEMI- URBAN AND RURAL AREAS DEEPEN OUR CUSTOMER CONNECT AND LOCALIZATION Housing Education Healthcare Artisans • Housi
Slide 28: Performance Review
04 PERFORMANCE REVIEW Py KALYAN JEWELLERS
Slide 29: India: Q2FY22 Performance Summary
India performance India: Q2FY22 Performance Summary Revenue (₹mn) • Broad-based revenue growth across No. of Showrooms geographies and product categories 117 25,030 • 52% growth even when compared with Q2FY2020 (Pre-COVID) • Opened 10 61% showrooms during 15,555 • Improvement in market share - SSSG
Slide 30: India: Continued Revenue Momentum Across Geographies And Categories
India performance India: Continued Revenue Momentum Across Geographies And Categories South Revenue (₹mn) Non-South Revenue (₹mn) • Robust momentum in revenue continues across geographies driven by rise in footfalls and market share 56% • Growth in non-south market has outpaced 73% 17,696 the south
Slide 31: ME: Q2FY22 Performance Summary
ME performance ME: Q2FY22 Performance Summary Revenue (₹mn) No. of Showrooms 3,600 • Return in consumer sentiments driven by various international events 30 30 happening in the region and 2,243 restoration of air connectivity with India • Revenue achievement near pre- COVID levels • Gross margin con
Slide 32: Continued Focus On Strengthening Balance Sheet
Consolidated performance Continued Focus On Strengthening Balance Sheet Net Debt to Equity (x) FY20 1.3 • Net Debt ₹28,902 mn • Equity ₹21,581 mn 0.9 Q2FY22 • Net Debt ₹26,446 mn • Net Debt (without GML) 0.4 ₹12,152 mn • Equity ₹28,750 mn 1 FY20 (including GML ) Q2FY22 (including GML) Q2FY22 (exclud
Slide 33: Q2FY22 India: Income Statement
India performance Q2FY22 India: Income Statement Particulars (₹mn) Q2FY22 Q2FY21 YoY Q1FY22 QoQ Revenue 25,030 15,555 61% 12,742 96% Gross Profit 3,762 3,073 22% 1,829 106% Gross Profit Margins % 15.0% 19.8% 14.4% Total Opex 1,756 1,602 10% 1,329 32% Advertisement & Promotion 437 377 16% 353 24% Oth
Slide 34: Q2FY22 ME: Income Statement
Middle East performance Q2FY22 ME: Income Statement Particulars (₹mn) Q2FY22 Q2FY21 YoY Q1FY22 QoQ Revenue 3,600 2,243 61% 3,401 6% Gross Profit 605 82 641% 615 -2% Gross Profit Margins % 16.8% 3.6% 18.1% Total Opex 345 1,398 -75% 438 -21% Advertisement & Promotion 54 92 -42% 63 -15% Other Opex 1 29
Slide 35: Q2FY22 Consolidated Income Statement
Consolidated performance Q2FY22 Consolidated Income Statement Particulars (₹mn) Q2FY22 Q2FY21 YoY Q1FY22 QoQ Revenue 28,887 17,981 61% 16,368 76% Gross Profit 4,439 3,191 39% 2,503 77% Gross Profit Margins % 15.4% 17.7% 15.3% Total Opex 2,158 3,010 -28% 1,816 19% Advertisement & Promotion 506 474 7%
Slide 36: Standalone Income Statement
Standalone performance Standalone Income Statement Particulars (₹mn) H1FY22 FY21 FY20 Revenue 37,772 73,255 78,458 Gross Profit 5,592 12,414 13,909 Gross Profit Margins % 14.8% 16.9% 17.7% Total Opex 3,084 6,167 7,548 Advertisement & Promotion 790 1,175 2,285 Other Opex 2,295 4,992 5,263 EBITDA 2,50
Slide 37: Consolidated Income Statement
Consolidated performance Consolidated Income Statement Particulars (₹mn) H1FY22 FY21 FY20 Revenue 45,255 85,733 1,01,009 Gross Profit 6,942 14,592 17,092 Gross Profit Margins % 15.3% 17.0% 16.9% Total Opex 3,974 8,649 9,489 Advertisement & Promotion 937 1,460 2,822 Other Opex 1 3,037 7,189 6,667 EBI
Slide 38: Standalone Balance Sheet
Standalone performance Standalone Balance Sheet Particulars (₹mn) FY21 H1FY22 Particulars (₹mn) FY21 H1FY22 Equity and Liabilities Assets I Equity I Non-current Assets (a) Equity Share Capital 10,301 10,301 (a) Property, Plant and Equipment 8,287 8,536 (b) Other Equity 19,954 20,399 (b) Capital Work
Slide 39: Consolidated Balance Sheet
Consolidated performance Consolidated Balance Sheet Particulars (₹mn) FY21 H1FY22 Particulars (₹mn) FY21 H1FY22 Equity and Liabilities Assets I Equity I Non-current Assets (a) Equity Share Capital 10,301 10,301 (a) Property, Plant and Equipment 9,617 9,820 (b) Other Equity 17,960 18,444 (b) Capital
Slide 40: Contact Us
C O N TA C T U S : Registered and Corporate Office: TC-32/204/2, Sitaram Mill Road, Punkunnam, Thrissur, Kerala – 680 002 Tel : +91 487 24 37 333 Fax : +91 487 24 37 334 Email: investor.relations@kalyanjewellers.net Website: www.kalyanjewellers.net
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