Kalyan Jewellers India Ltd. · NSE:KALYANKJIL
Kalyan Jewellers India — Q1 FY2023 Earnings Presentation
48 slides from Kalyan Jewellers India's earnings presentation, Aug 4, 2022
Slide 1: Exchange filing cover letter for investor presentation
SEC/38/2022-2023 August 04, 2022 To 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 Mumbai 400 001 Bandra (E), Mumbai 400 051 Maharashtra, India Symbol: KALYANKJIL
Slide 2: Investor Presentation August 2022
I N V ESTO R P R E S E N TAT I O N August 2022 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 04 28-30 COMPANY OVERVIEW STRATEGIC PRIORITIES 02 05 10-24 32-46 INVESTMENT HIGHLIGHTS PERFORMANCE REVIEW 03 26 E-COMMERCE PLATFORM
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 28 Years 127 31 870 ₹ 125,138 Mn Showrooms Showrooms in "My Kalyan" Current Revenues Since Formation in India Middle East Grassroots Stores (Last 12 months) 5 21 13 8,253 ₹ 3,831 Mn States & Union Territories Procurement Centres Employees Current Profit After Tax C
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 Chandigarh Tamil Nadu Odisha Bengaluru – Dickenson Road Chennai – Adayar Bhubaneshwar Bengaluru – Jayanagar Punjab Chennai – Anna Nagar 80% 20% Bangaluru - Kammanahalli Amritsar Chennai - Chengalpettu
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 REGIONAL INFLUENCERS ₹10,000+ mn Pooja Sawant Maharashtra (Marathi) Marketing and Advertising Investments In Last 4 Years 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 870 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: 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 24: 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 25: 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 26: E-Commerce Platform
03 E-COMMERCE PLATFORM Py KALYAN JEWELLERS
Slide 27: 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 28: Strategic Priorities
04 STRATEGIC PRIORITIES Py KALYAN JEWELLERS
Slide 29: 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 30: 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 31: Way Forward – FY25
Long-term objectives & priorities Way Forward – FY25 Same Stores Online Platform: Margins – FY25 India Expansion Middle East Expansion Sales Growth Candere Targeted same stores sales • To improve gross • To increase the share of • Calibrated expansion in • Aggressive plan drawn growth of mid to high
Slide 32: Performance Review
05 PERFORMANCE REVIEW Py KALYAN JEWELLERS
Slide 33: Key Highlights – Q1FY23
Recent Developments Key Highlights – Q1FY23 Significant Acceleration in Kalyan’s Growth & Profitability Through COVID-19 Period • Industry dynamic of rapidly accelerating demand shift towards organised players, significantly benefitting well capitalized players with strong brands and store networks
Slide 34: Appointment of Vinod Rai as Chairman & Independent Non-Executive Director
New Appointment Appointment of Vinod Rai as Chairman & Independent Non-Executive Director • Mr. Vinod Rai was the Former Comptroller and Auditor General of India • Mr. Rai has held various positions within the Indian government as well as in state governments and has been instrumental in a wide vari
Slide 35: Ushering Into New Era of Growth With Franchise Model
Franchise Model Ushering Into New Era of Growth With Franchise Model Target Locations for Franchise – Metro, Tier 1, 2, 3 cities across non- south India Objectives: • Leverage Kalyan Jewellers brand and utilize the infrastructure / resources of the franchise owner • Franchise owned company operated
Slide 36: India: Q1FY23 Performance Summary
India performance India: Q1FY23 Performance Summary Revenue (₹mn) No. of Showrooms 27,190 • Strong revenue momentum across geographies; base year impacted by COVID second wave 127 • Robust Akshaya Tritiya sale after a gap of two years 113% • New customer additions continue to stay healthy 12,742 • I
Slide 37: India: Q1FY23 Performance Summary
India performance India: Q1FY23 Performance Summary South Revenue (₹mn) Non-South Revenue (₹mn) • Robust momentum continues across 100% geographies driven by rise in footfalls and market share 145% 9,445 17,745 • While non-south outpaced south revenue YoY, base period not strictly comparable 8,886 3
Slide 38: ME: Q1FY23 Performance Summary
ME performance ME: Q1FY23 Performance Summary Revenue (₹mn) No. of Showrooms • Strong revenue momentum driven by overall 5,737 recovery in economic activity in the region 31 and return of tourist traffic • 69% revenue growth compared to Q1FY22 3,401 • Growth largely SSSG driven as only 1 showroom wa
Slide 39: Performance Summary
Consolidated performance Performance Summary Revenue (₹mn) 24% 1,25,138 • Trailing Twelve Month Revenues of ₹105,009 mn for core India business - 34% higher than pre-COVID (FY20) levels of ₹78,458 mn 1,08,179 1,01,009 • Trailing Twelve Months Profit After Tax of ₹3,831 mn in consolidated business -
Slide 40: 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 0.3 FY20 FY22 Note: 1. GML: Gold Metal Loan KALYAN JEWELLERS INDIA LIMITED 39
Slide 41: Q1FY23 India: Income Statement
India performance Q1FY23 India: Income Statement Particulars (₹mn) Q1FY23 Q1FY22 YoY Q4FY22 QoQ Revenue 27,190 12,742 113% 23,988 13% Gross Profit 4,205 1,829 130% 3,646 15% Gross Profit Margins % 15.5% 14.4% 15.2% Total Opex 2,026 1,329 52% 1,764 15% Advertisement & Promotion 590 353 67% 452 31% Ot
Slide 42: Q1FY23 ME: Income Statement
Middle East performance Q1FY23 ME: Income Statement Particulars (₹mn) Q1FY23 Q1FY22 YoY Q4FY22 QoQ Revenue 5,737 3,401 69% 4,249 35% Gross Profit 891 615 45% 744 20% Gross Profit Margins % 15.5% 18.1% 17.5% Total Opex 421 438 (4)% 413 2% Advertisement & Promotion 104 63 63% 95 9% Other Opex 317 375
Slide 43: Q1FY23 Consolidated Income Statement
Consolidated performance Q1FY23 Consolidated Income Statement Particulars (₹mn) Q1FY23 Q1FY22 YoY Q4FY22 QoQ Revenue 33,326 16,368 104% 28,571 17% Gross Profit 5,174 2,503 107% 4,458 16% Gross Profit Margins % 15.5% 15.3% 15.6% Total Opex 2,532 1,816 39% 2,274 11% Advertisement & Promotion 723 430 6
Slide 44: Standalone Income Statement
Standalone Performance Standalone Income Statement Profit and Loss (₹ mn) TTM FY22 FY21 Revenue 1,05,009 90,561 73,255 Gross Profit 16,243 13,868 12,414 Gross Profit Margin 15.5% 15.3% 16.9% Total Opex 7,650 6,953 6,167 Advertisement & Promotion 2,168 1,931 1,175 Other Opex 5,482 5,022 4,992 EBITDA
Slide 45: Consolidated Income Statement
Consolidated Performance Consolidated Income Statement Profit and Loss (₹ mn) TTM FY22 FY21 Revenue 1,25,138 1,08,179 85,733 Gross Profit 19,587 16,916 14,592 Gross Profit Margin 15.7% 15.6% 17.0% Total Opex 9,487 8,771 8,649 Advertisement & Promotion 2,616 2,324 1,460 Other Opex 6,871 6,448 7,189 E
Slide 46: Standalone Balance Sheet
Standalone performance Standalone Balance Sheet Particulars (₹mn) FY21 FY22 Particulars (₹mn) FY21 FY22 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 8,520 (b) Other Equity 19,954 22,335 (b) Capital Work in
Slide 47: Consolidated Balance Sheet
Consolidated performance Consolidated Balance Sheet Particulars (₹mn) FY21 FY22 Particulars (₹mn) FY21 FY22 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 9,816 (b) Other Equity 17,960 21,070 (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
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