Kalyan Jewellers India Ltd. · NSE:KALYANKJIL
Kalyan Jewellers India — FY2023 Earnings Presentation
48 slides from Kalyan Jewellers India's earnings presentation, May 15, 2023
Slide 1: Cover letter to stock exchanges
SEC/13/2023-2024 May 15, 2023 1. National Stock Exchange of India Ltd. 2. BSE Limited Exchange Plaza Corporate Relationship Dept. Plot No. C/1, G Block Phiroze Jeejeebhoy Towers, Dalal Street Bandra –Kurla Complex Bandra (E), Mumbai 400001 Mumbai 400 051 Maharashtra, India Symbol: KALYANKJIL Scrip C
Slide 2: Investor Presentation May 2023
I N V ESTO R P R E S E N TAT I O N May 2023 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 5-8 03 27-29 COMPANY OVERVIEW STRATEGIC PRIORITIES 02 04 10-25 31-46 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: History of Trust – Thriving on a 100-Year-Old Legacy
Timeline History of Trust – Thriving on a 100-Year-Old Legacy Kalyan’s First Generation Kalyan’s Second Generation 1908: Started the entrepreneurial journey 1972: The second generation expanded retail with the first textile mill in Kerala presence to more textile showrooms 1913: Commenced textile re
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 Launched 1st franchise store showroom under customer outreach and Middle East markets and East India investment by Warburg market (Aurangabad)
Slide 9: Key Highlights
Company at a glance Key Highlights 30 Years 149 33 990 ₹ 140,714 Mn Showrooms Showrooms in "My Kalyan" FY23 Revenues Since Formation in India Middle East Grassroots Stores 5 22 13 10,170 ₹ 4,569 Mn Countries States & UT’s in India Procurement Centres Employees FY23 Adj. Profit After Tax1 Note: 1Adj.
Slide 10: Investment Highlights
02 INVESTMENT HIGHLIGHTS Py KALYAN JEWELLERS
Slide 11: 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 12: 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 13: 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 14: 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 15: A True Pan-India Player With Expansive Geographical Presence
Presence A True Pan-India Player With Expansive Geographical Presence Pan-India Presence Karnataka 17 Showrooms Chandigarh 1 Showroom Tamil Nadu 23 Showrooms Odisha 2 Showrooms 82% Showrooms in 18% Showrooms in Jharkhand Punjab 20 Showrooms India (Including Middle East 5 Showrooms Uttarakhand Telang
Slide 16: Effective Marketing Strategy
Marketing and promotion strategy Effective Marketing Strategy REINFORCING THE LOCAL TOUCH, PLAYING AS A PAN-INDIA BRAND NATIONAL BRAND AMBASSADORS ~₹10,000 mn Marketing and Advertising Investments In Last 4 Years REGIONAL INFLUENCERS Pooja Sawant Maharashtra (Marathi) Amitabh Katrina Jaya Shweta Nan
Slide 17: 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 Localisation Of Our Showroom Localisation Through Our Communication And Marketing Product Portfolio Experience For Customers “My Kalyan” Network State and city speci
Slide 18: Hyperlocal Jeweller… helps build a large customer base
Hyperlocal Jeweller Hyperlocal Jeweller… helps build a large customer base Mumbai Region – Localised design Personalization and localization has resulted in significant portion of sales coming through Borivali repeat sales Extensive understanding Personalized shopping Gujarati & North Indian Thane M
Slide 19: “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 990 Grassroots Network: ‘My Kalyan“ centres Facilitator of the neighborhood (~7 centres per showroom) Dedicated “My Kalyan” personnel Showcase product Dr
Slide 20: 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 21: 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 22: 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 23: Candere - A Kalyan Jewellers Company
E-Commerce Platform Candere - A Kalyan Jewellers Company 2013 2014 2016 2017 Candere website launched Achieved revenue of ₹1.1 Crores Increased catalogue to 100 product Kalyan Jewellers make Candere.com categories & a variety of 4,000+ their online platform through an Identified need for versatility
Slide 24: Robust And Effective Internal Processes And Controls
Internal process and controls Robust And Effective Internal Processes And Controls Enterprise Resource Strict Inventory Strong Board With Big 4 Auditor Integrated Operations To Planning System Allowing Management & Independent Chair Allow Inventory Real-time Visibility Into Monitoring Practices - Mo
Slide 25: 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. Vinod Rai Mr. T.S. Kalyanaraman Mr. T.K. Seetharam Mr. T.K. Ramesh Chairman & Independent Managing Director Whole-time Director Whole-time Director Non-Execu
Slide 26: 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 27: Strategic Priorities
03 STRATEGIC PRIORITIES Py KALYAN JEWELLERS
Slide 28: 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 Since IPO and Road Ahead Strengthening Growing In Pan-India Expansion, Capitalising On The Foundation – Our Roots Southern India Professionalisation & Investment P
Slide 29: Our Strategic Priorities: Balancing Growth And Expansion
Long-term objectives & priorities Our Strategic Priorities: Balancing Growth And Expansion LONG-TERM OBJECTIVES Leverage Scalable Business Widen Product Offerings To Leverage “My Kalyan” Invest In CRM, Model To Expand Showroom Further Increase Consumer Network To Deepen Customer Marketing And Analyt
Slide 30: Way Forward – FY25
Long-term objectives & priorities Way Forward – FY25 Same Stores Reward Return Profile India Expansion Middle East Expansion Sales Growth Shareholders Targeted same stores sales • Capital-efficient franchise • To increase the share of • Calibrated expansion in • Use the benefits of growth of mid to
Slide 31: Performance Review
04 PERFORMANCE REVIEW Py KALYAN JEWELLERS
Slide 32: Kalyan Jewellers Has Made Significant Progress Over the Past Few Years
Recap of Performance through COVID Kalyan Jewellers Has Made Significant Progress Over the Past Few Years Meaningful Progress Across Key Business Metrics … … Supported by Clear Strategic Steps/Direction & Execution FY20 FY23 Clear Strategic Direction Towards Capital-Efficient Growth, ROCE Accretive
Slide 33: Ushering Into New Era of Growth With Franchise Model
Franchise Model Ushering Into New Era of Growth With Franchise Model 1st Franchise store at Aurangabad, Maharashtra First showroom 67 showrooms launch Q1FY23 FY24 Now 22 showrooms Objectives: • Focus company’s expansion plans through this significantly more capital efficient and return accretive pat
Slide 34: India: Q4FY23 Performance Summary
India performance India: Q4FY23 Performance Summary Revenue (₹mn) • Revenue growth of over 17% when compared to Q4FY22 No. of Showrooms driven by robust underlying momentum 28,054 • New customer additions continue to stay healthy; share of new 147 customers at over 38% • Added 11 showrooms during th
Slide 35: India: Q4FY23 Performance Summary
India performance India: Q4FY23 Performance Summary South Revenue (₹mn) Non-South Revenue (₹mn) 15,733 12,320 15,076 • Non-south share at 44% compared to 4% 37% YoY • Non-south revenue growth higher than 8,912 38% south as mostly all the showroom launches have been in the non-south markets in the la
Slide 36: ME: Q4FY23 Performance Summary
ME performance ME: Q4FY23 Performance Summary Revenue (₹mn) No. of Showrooms 5,486 • Consumer sentiments continues to remain robust • 29% revenue growth YoY largely driven by SSSG 33 4,249 • Two showrooms launched in the region during Q4FY23 taking the total number of showrooms opened during the fin
Slide 37: Consolidated: Q4FY23 Performance Summary
Consolidated performance Consolidated: Q4FY23 Performance Summary Revenue (₹mn) Gross Profit (₹mn) 5,330 33,818 18% 28,571 4,458 Q4FY22 Q4FY23 Q4FY22 Q4FY23 EBITDA (₹mn) Adj. PAT (₹mn)1 2,567 947 2,184 720 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Note: 1Adj. PAT calculated as sum of reported PAT and one-time exc
Slide 38: FY23 Performance Summary
Consolidated performance FY23 Performance Summary Revenue (₹mn) EBITDA1 (₹mn) & EBITDA Margins (%) Significant acceleration in revenue momentum and 1,40,714 profits over the last 3 years: 7.9% • FY23 Consolidated revenue of ₹140,714 mn over 7.5% 7.5% 39% higher than pre-COVID (FY20) levels 6.9% 1,08
Slide 39: Continued Focus On Strengthening Balance Sheet
Consolidated performance Continued Focus On Strengthening Balance Sheet Net Debt to Equity (x) Net Debt to Equity (with GML) Net Debt to Equity (without GML) 1.3 0.8 0.8 0.7 0.3 0.2 FY20 FY22 FY23 Note: 1. GML: Gold Metal Loan KALYAN JEWELLERS INDIA LIMITED 38
Slide 40: Q4FY23 India: Income Statement
India performance Q4FY23 India: Income Statement Particulars (₹mn) Q4FY23 Q4FY22 YoY Q3FY23 QoQ Revenue 28,054 23,988 17% 32,187 (13)% Gross Profit 4,402 3,646 21% 5,174 (15)% Gross Profit Margins % 15.7% 15.2% 16.1% Total Opex 2,229 1,764 26% 2,419 (8)% Advertisement & Promotion 564 452 25% 687 (18
Slide 41: FY23 India: Income Statement
India performance FY23 India: Income Statement Particulars (₹mn) FY23 FY22 YoY Revenue 1,15,840 90,561 28% Gross Profit 18,100 13,868 31% Gross Profit Margins % 15.6% 15.3% Total Opex 8,769 6,953 26% Advertisement & Promotion 2,412 1,931 25% Other Opex 6,357 5,022 27% EBITDA 9,331 6,915 35% EBITDA M
Slide 42: Q4FY23 ME: Income Statement
Middle East performance Q4FY23 ME: Income Statement Particulars (₹mn) Q4FY23 Q4FY22 YoY Q3FY23 QoQ Revenue 5,486 4,249 29% 6,412 (14)% Gross Profit 867 744 16% 973 (11)% Gross Profit Margins % 15.8% 17.5% 15.2% Total Opex 449 413 9% 448 0% Advertisement & Promotion 100 95 5% 90 11% Other Opex 349 31
Slide 43: FY23 ME: Income Statement
Middle East performance FY23 ME: Income Statement Particulars (₹mn) FY23 FY22 YoY Revenue 23,640 16,404 44% Gross Profit 3,629 2,764 31% Gross Profit Margins % 15.4% 16.9% Total Opex 1,749 1,537 14% Advertisement & Promotion 367 314 17% Other Opex 1,383 1,223 13% EBITDA 1,880 1,228 53% EBITDA Margin
Slide 44: Q4FY23 Consolidated Income Statement
Consolidated performance Q4FY23 Consolidated Income Statement Particulars (₹mn) Q4FY23 Q4FY22 YoY Q3FY23 QoQ Revenue 33,818 28,571 18% 38,841 (13)% Gross Profit 5,330 4,458 20% 6,227 (14)% Gross Profit Margins % 15.8% 15.6% 16.0% Total Opex 2,763 2,274 22% 2,957 (7)% Advertisement & Promotion 689 57
Slide 45: FY23 Consolidated Income Statement
Consolidated performance FY23 Consolidated Income Statement Particulars (₹mn) FY23 FY22 YoY Revenue 1,40,714 1,08,179 30% Gross Profit 21,992 16,916 30% Gross Profit Margins % 15.6% 15.6% Total Opex 10,852 8,771 24% Advertisement & Promotion 2,881 2,324 24% Other Opex 7,971 6,448 24% EBITDA 11,140 8
Slide 46: Standalone Balance Sheet
Standalone performance Standalone Balance Sheet Particulars (₹mn) Particulars (₹mn) FY22 FY23 Particulars (₹mn) Particulars (₹mn) FY22 FY23 Equity and Liabilities Assets I Equity I Non-current Assets (a) Equity Share Capital 10,301 10,301 10,301 10,301 (a) Property, Plant and Equipment 9,816 8,520 8
Slide 47: Consolidated Balance Sheet
Consolidated performance Consolidated Balance Sheet Particulars (₹mn) FY22 FY23 Particulars (₹mn) FY22 FY23 Equity and Liabilities Assets I Equity I Non-current Assets (a) Equity Share Capital 10,301 10,301 (a) Property, Plant and Equipment 9,816 8,738 (b) Other Equity 21,070 26,047 (b) Capital Work
Slide 48: For further information, please contact
For further information, please contact CIN: U36911KL2009PLC024641 CIN: U74140MH2010PTC204285 Tel : +91 487 24 37 333 Mr. Rahul Agarwal / Mr. Aakash Mehta Fax : +91 487 24 37 334 rahul.agarwal@sgapl.net / aakash.s.m@sgapl.net Email: investor.relations@kalyanjewellers.net +91 98214 38864 / +91 98706
Kalyan Jewellers India — FY2023 Earnings Presentation on 6ix