Kalyan Jewellers India Ltd. · NSE:KALYANKJIL
Kalyan Jewellers India — Q2 FY2023 Earnings Presentation
51 slides from Kalyan Jewellers India's earnings presentation, Nov 10, 2022
Slide 1: Cover letter to stock exchanges: Investors/Analysts Presentation
SEC/78/2022-2023 November 10, 2022 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 Sc
Slide 2: Investor Presentation November 2022
I N V ESTO R P R E S E N TAT I O N November 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 32-49 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 29 Years 132 31 881 ₹ 130,980 Mn Showrooms Showrooms in "My Kalyan" Current Revenues Since Formation in India Middle East Grassroots Stores (Last 12 months) 5 21 13 8,758 ₹ 4,203 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 81% 19% Bengaluru – Dickenson Road Chennai – Adayar Bhubaneshwar Punjab Chennai – Anna Nagar Brahmapur Bengaluru – Jayanagar Bangaluru - Kammanahalli Amritsar Chennai - Che
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 881 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 Recent Highlights
Recent Developments Key Recent Highlights Significant Acceleration in Kalyan’s Growth, Profitability & Return Profile vs. Pre-COVID Continues • Industry dynamic of rapidly accelerating demand shift towards organised players, significantly benefitting well capitalized players with strong brands and s
Slide 34: 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: • Focus company’s expansion plans through this significantly more capital efficient and return accretive path • Leverage Kalyan brand an
Slide 35: India: Q2FY23 Performance Summary
India performance India: Q2FY23 Performance Summary • Strong revenue momentum across geographies; base year revenue Revenue (₹mn) high due to pent-up demand post COVID wave-2 lockdown No. of Showrooms 28,409 • Revenue CAGR of ~20% over the last 3 years (Q2FY20-Q2FY23) • New customer additions contin
Slide 36: India: Q2FY23 Performance Summary
India performance India: Q2FY23 Performance Summary South Revenue (₹mn) Non-South Revenue (₹mn) • Robust momentum continues across 18,951 9,458 geographies driven by rise in footfalls and market share • Revenue growth in non-south markets higher 7% 7,334 29% as the showroom addition over the last 12
Slide 37: ME: Q2FY23 Performance Summary
ME performance ME: Q2FY23 Performance Summary Revenue (₹mn) No. of Showrooms • Strong revenue momentum driven by overall 6,006 recovery in economic activity in the region 31 and return of tourist traffic • 67% revenue growth YoY 3,600 • Growth largely SSSG driven as only 1 showroom was opened in the
Slide 38: Performance Summary
Consolidated performance Performance Summary Revenue (₹mn) Gross Profit (₹mn) 5,261 34,729 28,887 20% 4,439 Q2FY22 Q2FY23 Q2FY22 Q2FY23 EBITDA (₹mn) PAT (₹mn) 2,661 1,059 2,281 688 Q2FY22 Q2FY23 Q2FY22 Q2FY23 KALYAN JEWELLERS INDIA LIMITED 37
Slide 39: Performance Summary
Consolidated performance Performance Summary EBITDA1 (₹mn) & EBITDA Margins (%) Revenue (₹mn) 1,30,980 8.0% 7.5% 7.5% • Trailing Twelve Month Revenues of ₹130,980 mn 6.9% 1,08,179 for core India business over 30% higher than pre- 1,01,009 COVID (FY20) levels 85,733 • Trailing Twelve Months Profit Af
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 0.7 0.3 0.2 FY20 FY22 H1FY23 Note: 1. GML: Gold Metal Loan KALYAN JEWELLERS INDIA LIMITED 39
Slide 41: Q2FY23 India: Income Statement
India performance Q2FY23 India: Income Statement Particulars (₹mn) Q2FY23 Q2FY22 YoY Q1FY23 QoQ Revenue 28,409 25,030 13% 27,190 4% Gross Profit 4,319 3,762 15% 4,205 3% Gross Profit Margins % 15.2% 15.0% 15.5% Total Opex 2,096 1,756 19% 2,026 3% Advertisement & Promotion 571 437 31% 590 (3)% Other
Slide 42: H1FY23 India: Income Statement
India performance H1FY23 India: Income Statement Particulars (₹mn) H1FY23 H1FY22 YoY Revenue 55,599 37,772 47% Gross Profit 8,524 5,592 52% Gross Profit Margins % 15.3% 14.8% Total Opex 4,121 3,084 34% Advertisement & Promotion 1,161 790 47% Other Opex 2,960 2,295 29% EBITDA 4,402 2,507 76% EBITDA M
Slide 43: Q2FY23 ME: Income Statement
Middle East performance Q2FY23 ME: Income Statement Particulars (₹mn) Q2FY23 Q2FY22 YoY Q1FY23 QoQ Revenue 6,006 3,600 67% 5,737 5% Gross Profit 899 605 49% 891 1% Gross Profit Margins % 15.0% 16.8% 15.5% Total Opex 432 345 25% 421 3% Advertisement & Promotion 73 54 36% 104 (29)% Other Opex 359 291
Slide 44: H1FY23 ME: Income Statement
Middle East performance H1FY23 ME: Income Statement Particulars (₹mn) H1FY23 H1FY22 YoY Revenue 11,742 7,001 68% Gross Profit 1,790 1,220 47% Gross Profit Margins % 15.2% 17.4% Total Opex 853 783 9% Advertisement & Promotion 177 117 51% Other Opex 676 666 1% EBITDA 937 437 114% EBITDA Margins % 8.0%
Slide 45: Q2FY23 Consolidated Income Statement
Consolidated performance Q2FY23 Consolidated Income Statement Particulars (₹mn) Q2FY23 Q2FY22 YoY Q1FY23 QoQ Revenue 34,729 28,887 20% 33,326 4% Gross Profit 5,261 4,439 19% 5,174 2% Gross Profit Margins % 15.2% 15.4% 15.5% Total Opex 2,600 2,158 21% 2,532 3% Advertisement & Promotion 665 506 31% 72
Slide 46: H1FY23 Consolidated Income Statement
Consolidated performance H1FY23 Consolidated Income Statement Particulars (₹mn) H1FY23 H1FY22 YoY Revenue 68,055 45,255 50% Gross Profit 10,435 6,942 50% Gross Profit Margins % 15.3% 15.3% Total Opex 5,132 3,974 29% Advertisement & Promotion 1,388 937 48% Other Opex 3,744 3,037 23% EBITDA 5,303 2,96
Slide 47: Standalone Income Statement
Standalone Performance Standalone Income Statement Profit and Loss (₹ mn) TTM FY22 FY21 Revenue 1,08,388 90,561 73,255 Gross Profit 16,800 13,868 12,414 Gross Profit Margin % 15.5% 15.3% 16.9% Total Opex 7,990 6,953 6,167 Advertisement & Promotion 2,303 1,931 1,175 Other Opex 5,687 5,022 4,992 EBITD
Slide 48: Consolidated Income Statement
Consolidated Performance Consolidated Income Statement Profit and Loss (₹ mn) TTM FY22 FY21 Revenue 1,30,980 1,08,179 85,733 Gross Profit 20,410 16,916 14,592 Gross Profit Margins % 15.6% 15.6% 17.0% Total Opex 9,930 8,771 8,649 Advertisement & Promotion 2,775 2,324 1,460 Other Opex 7,155 6,448 7,18
Slide 49: Standalone Balance Sheet
Standalone performance Standalone Balance Sheet Particulars (₹mn) FY22 H1FY23 Particulars (₹mn) FY22 H1FY23 Equity and Liabilities Assets I Equity I Non-current Assets (a) Equity Share Capital 10,301 10,301 (a) Property, Plant and Equipment 8,520 8,557 (b) Other Equity 22,335 24,012 (b) Capital Work
Slide 50: Consolidated Balance Sheet
Consolidated performance Consolidated Balance Sheet Particulars (₹mn) FY22 H1FY23 Particulars (₹mn) FY22 H1FY23 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 9,955 (b) Other Equity 21,070 22,822 (b) Capital
Slide 51: 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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