Senco Gold Limited · NSE:SENCO
Senco Gold — H1 FY24 Earnings Presentation
41 slides from Senco Gold's earnings presentation, Nov 30, 2023
Slide 1: Stock exchange filing cover letter
A snNco"' \4' GOLD & DTAMONDS Cro:ftsrnornsfrip for you Ref No: SEC/SE/202 3-241 l0 Date: 30tt, November, 2023 The Manager- Listing The Manager - Listing The National Stock Exchange of India BSE Limited Limited Corporate Relationship Deparhnent "Exclrange Plaza" , Bandra - Kurla Phiroze Jeejeebhoy T
Slide 2: Senco Gold Limited Investor Presentation Q2 & H1 FY24
SENCO GOLD LIMITED India’s 2nd Most Trusted & 2nd Most Desired Jewellery Brand* * As per TRA report 2023 Investor Presentation Q2 & H1 FY24 BSE – 543936 NSE - SENCO 30th November 2023 1 1 Bloomberg – SENCO:IN
Slide 3: 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 4: Index
Index 01 02 03 04 Company Investment Business Financial Overview Highlights Strategies Information (4-10) (11-27) (28-30) (31-39) 33
Slide 5: Company Overview
01 Company Overview 4
Slide 6: Over eight decades of journey
Over eight decades of journey The Humble Beginning ENTRY INTO ASSAM AND JHARKHAND ENTRY INTO SOUTHERN REGION FRANCHISEE MODEL 2010: Adopted franchisee route to expand 2016: Entered southern region by opening a Shri M C Sen started the showroom in Bangalore. Opened first franchisee outside West Benga
Slide 7: Experienced Board of Directors
Experienced Board of Directors RANJANA SEN BHASKAR SEN Chairperson and Whole Time Director Independent Director ▪ Over 29 years of experience in the jewellery industry ▪ Experience of more than four decades in the banking sector ▪ Associated with our Company since the incorporation of the ▪ Previous
Slide 8: Senco Snapshot
Senco Snapshot India’s 2nd Most Trusted & 2nd Most Desired Jewellery Brand Successful Asset Light Bouquet of Brands Franchise model with powerful brands like Everlite, 62 Franchisee showrooms with 49 Gossip, Aham, Sennes etc. targeting of them in Tier II Cities across all segments and GenZ also Larg
Slide 9: Strong Brand Name With Heritage & Legacy
Strong Brand Name With 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 Reputed brand ambassadors like Kiara Limited) 2014 Advani, So
Slide 10: Key Highlights
Key Highlights 80+ 145+ 62 101 Years Showrooms Franchisee Towns & 2,380+ Showrooms Cities Trust & Legacy Pan India Asset light Presence across Metro/ ~No. of employees as Presence Franchisee Model Tier-i, Tier-ii , iii & Tier- on Sept‘23 iV 19% 0.92 19% 11.4% 2 Mn + 3yrs Revenue CAGR Return on Equit
Slide 11: Awards & Recognitions
Awards & Recognitions India’s 2nd Most Trusted Brand ET Inspiring Women Leaders 2023 Excellence in Design Innovation in Gold & Diamond by TRA Research Pvt. Ltd. By ET Women's Conclave 2023 By Jagran Achiever Awards 2023 New Powerful Women Entrepreneur Award The Rising Star, 40 Under 40 Award By Jagr
Slide 12: Investment Highlights
02 Investment Highlights 11
Slide 13: India's Gems and Jewellery market – TAM of INR 4.7 Trillion
India’s Gems and Jewellery market – TAM* of INR 4.7 Trillion India’s Gem and Jewellery sector growing at 14% CAGR Structural growth drivers act as tailwind for growth of organized sector (INR Bn) Changing Consumer Superior Organisation Regulatory Changes Preference Capabilities ~4,700 ▪ Increasing d
Slide 14: 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 rural India and rises with income levels Organized players grew at ~20% CAGR vs ~14% for the industry over FY17-23 47% 47% India is the 2nd largest gold market in the world 33% 27% 40% 3 rd
Slide 15: 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: Clear Pricing Growing momentum driven by Marketing Str
Slide 16: Pan-India presence & largest Retail Player in Eastern Region
Pan-India presence & largest Retail Player in Eastern Region 145 Stores across India and growing 145 83 62 Widespread Distribution Network Showrooms Company showrooms Franchisee showrooms 16 101 Geographically Diversified Presence States Towns & Cities Zone Own Franchisee Total East ( including WB)
Slide 17: Customized Showroom formats catering to all segments
Customized Showroom formats catering to all segments Classic D’Signia Everlite Modern House of Senco Target Audience Traditional Customer Younger generation & Upcoming Base in exiting Premium and HNI Super Luxury millennials Geographies geography Average Ticket Value (ATV)* ₹ ~INR 65,600 ~INR 76,900
Slide 18: Omni-channel Retail Network
Omni-channel Retail Network Phygital Model OMNI CHANNEL HYPERLOCAL 145 Fulfillment Order Processing Showrooms Over ~90% of Own showrooms are leased Hub & Spoke Model App ‘MySenco’ app with almost 3,00,000 downloads Websites & Apps Customers www.sencogoldanddiamonds.com Website mydigigold.com; mydigi
Slide 19: 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 Senco has added (net) 33 showrooms from FY21 till date Operational leverage of franchisee model # of Showrooms ▪ Leverage Hub
Slide 20: Glimpses of New Collections
Glimpses of New Collections PERFECT LOVE SOLITAIRES SATYAPREM KI KATHA COLLECTION Collection combines gold, diamonds, polki, kundan, and antique; perfect for weddings A pinnacle of diamond artistry, Perfect Love solitaires are hearts and arrows cut diamonds AZAADI UTSAV COLLECTION MARIPOSA COLLECTIO
Slide 21: Glimpses of New Collections
Glimpses of New Collections ALPHABET COLLECTION Each pendant embodies knowledge, elegance, and the power of the alphabet RAJWADA Our jewellery pays homage GANESH PENDANT COLLECTION to the inner queen of every woman, drawing Ganesh Pendants, a timeless inspiration from gold, fusion of gold and diamon
Slide 22: Leveraging Bengal's Karigari and Craftsmanship
Leveraging Bengal’s Karigari and Craftsmanship Significant volumes Attractive designs (~70%) of work Maintain exclusivity with Hyper local allocated of in-house designs Focus to Karigars Our presence in Eastern India gives us Stringent quality control strategic locational advantages with procedures
Slide 23: Focus on light weight jewellery
Focus on light weight jewellery Diverse jewellery collection with across various price points starting from INR 2,000 to maximise customer base Active Catalogue 1,30,000+ designs for gold jewellery 72,000+ designs for diamond jewellery Our strategy and experience in selling light weight jewellery ha
Slide 24: Driving Pan India Brand Loyalty
Driving Pan India Brand Loyalty Regional Brand Ambassadors in Eastern India Market Marketing & Promotional Exp. H1FY24 Rs 358 Mn Digital Focus Kiara Advani Ishaa Saha Madhumita Sarcar Ditipriya Roy % of Revenue H1 FY 24 - 1.5% Last 3ys avg. Below 2.0% Sourav Ganguly Vidya Balan Jaya Ahsan Sunita Kau
Slide 25: Wide Product Range at attractive price points
Wide Product Range at attractive price points Bouquet of Brands Light Weight, Affordable Jewellery Exclusive Range of Collections (highlighted key brands) Lightweight Silver and Fashion Jewellery Jewellery With active Catalogue (across brands) of 1,30,000+ designs for gold jewellery Bridal Jewellery
Slide 26: Digital Focus and Integrated Systems
Digital Focus and Integrated Systems ERP driven organization since two decades integrated with all Standard SQL server reporting critical business operations giving real time control and visibility services (“SSRS”) 08 01 Leveraging latest technology like augmented reality (AR) through Magic Mirror
Slide 27: Digital Initiatives: Sencoverse (Metaverse)
Digital Initiatives: Sencoverse (Metaverse) Future ready to attract GenZ: • Aims to offer cutting-edge, immersive shopping experience. • Virtual environment lets customers browse, try on, and purchase jewellery from home. • Wide range of designs showcased in stunning virtual displays. • Advanced tec
Slide 28: Robust systems and procedures helps seamless collaboration and growth
Robust systems and procedures helps seamless collaboration and growth Customer Manufacturing Strong technology focus to maintain greater control over business operations Sourcing & Sales & Retailing ▪ Integrated Systems Procurement ▪ Data Analysis & Forecasting Planning & ▪ Institutionalized Process
Slide 29: Business Strategies
03 Business Strategies 28
Slide 30: Our Strategies to drive Future Growth
Our Strategies to drive Future Growth 1 Passionately Drive sustainable profitable ▪ Accelerated Showroom Expansion on pan India basis with modern formats . Growth on Pan India basis and ▪ Sustain, Strengthen & Leverage Franchisee Model for growth in Tier 3 & 4 Towns. consolidating our market leaders
Slide 31: Key Growth Drivers
Key Growth Drivers INR Mn unless stated otherwise Showroom expansion Pan India Revenue Growth Studd Ratio Company Franchisee 33% 10.30% 11.40% 145 136 127 27% 28% 8.50% 8.20% 112 62 57 61 19% 52 15% 10% 10% 7.2% 70 75 83 60 FY21 FY22 FY23 H1 FY24 FY21 FY22 FY23 H1 FY24 FY21 FY22 FY23 H1 FY24 Growth
Slide 32: Financial Information
04 Financial Information 31
Slide 33: Management Comment on Q2 & H1 performance
Management Comment on Q2 & H1 performance “We have continued to expand our showroom presence pan India and have rolled out 2 own and 1 franchisee showrooms in Q2 achieving 145 mark as on quarter ending Sep’23. So far we have launched 9 showrooms in H1 FY24. Gold prices in Q1 were volatile versus Q4
Slide 34: H1 and Q2, FY2024 performance
H1 and Q2, FY2024 performance Revenue from operations (Rs. mn) Revenue from operations (Rs. mn) 19,183 24,520 11,466 9,111 H1 FY23 H1 FY24 • H1 FY24 YOY revenue growth of 28% is Q2 FY23 Q2 FY24 Others Silver and platinum Jewellery Diamond & precious/ semi-precious stones Gold jewellery Others Silver
Slide 35: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) : Q2 & H1FY24 and 2yrs trend Particulars (INR Mn) FY22 FY23 Q2 FY23 Q2 FY24 Y-o-Y (%) Q1 FY24 H1 FY23 H1 FY24 Total Income from Operations 35,346.41 40,774.04 9,110.87 11,465.57 26% 13,054.00 19,183.29 24,519.57 Cost of Goods Sold 29,805.40 34,219.34 8025.7 10,
Slide 36: Balance Sheet
Balance Sheet FY22 FY23 H1 FY24 FY22 FY23 H1 FY24 Particulars (INR Mn) Particulars (INR Mn) (Consolidated) (Consolidated) (Consolidated) (Consolidated) (Consolidated) (Consolidated) EQUITY AND LIABILITIES ASSETS Equity Non-current assets Total Equity 7,259.67 9,455.20 12,352.07 Property, plant and e
Slide 37: Cash Flow Statement
Cash Flow Statement FY22 FY23 H1 FY23 H1 FY24 Particulars (INR Mn) (Consolidated) (Consolidated) (Consolidated) (Consolidated) Cash Flow from operating activities Profit/(loss) before Tax and Exceptional Items 1,769.59 2,161.52 430.16 513.63 Adjustments for: Depreciation and Amortisation Expense 421
Slide 38: 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% 60% 9.3% 9.2% 9.7% 45% 48% 54% 50% 50% 46% 6.6% 39% 6.0% 6.1% 27% 28% 22% 22% 21% 3.5% 3.3% 3.2% 16% 17% 1% 3% 0.1% 0.2% 0.1% FY 22 FY 23 H1 FY 24 F
Slide 39: 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 (%) CAGR 19% Gross margins is a function of franchisee gross margins also 40,774 35,346 17.5% 15.7% 16.1% 1,585 14.1% 1,291 24,203 26,604 24,520 12.
Slide 40: Shareholding Pattern
Shareholding Pattern Holding as on 30th September 2023 Major Share holders among Top 20 (Excluding Promoters) As on 30th September 2023 Promoters SAIF PARTNERS INDIA IV LIMITED SAIF Partners OMAN INDIA JOINT INVESTMENT FUND II India 11.64% 3P INDIA EQUITY FUND 1 Oman India Joint Investment Fund 3.43
Slide 41: Thank You
THANK YOU For further information, please contact Sanjay Banka CIN: L36911WB1994PLC064637 Chief Financial Officer & Head IR Telephone: +91 33 4021 5000 Email: IR@sencogold.co.in sanjay.banka@sencogold.co.in Website: www.sencogoldanddiamonds.com 40