Pc Jeweller Ltd. · NSE:PCJEWELLER
Pc Jeweller — Investor Presentation (August 2017)
41 slides from Pc Jeweller's investor presentation, August 2017
Slide 1: PC Jeweller Investor Presentation August 2017
PC Jeweller Investor Presentation August 2017
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by PC Jeweller Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 3: Agenda
Agenda Industry Overview World of PC Jeweller Financial Overview Way Forward 3
Slide 4: Industry Overview
Industry Overview
Slide 5: India's Love for Jewellery
India’s Love for Jewellery One of the largest jewellery markets in the world* (USD Bn) 96 The Quirk’s of the Indian Market 62 50 Gold is considered as a status symbol as well as auspicious 5 8 Indians spend a significant UK Japan India USA China proportion of their wedding budget on jewellery It is
Slide 6: Increasing affordability of Indians
Increasing affordability of Indians Increasing purchasing power with annual GDP growth of more than 7%. ~65% population below the age of 35 years Wealth Millennials The key elements of Consumption Growth Availability of financing Financing options Increase in disposable incomes, Brand digitization,
Slide 7: How India buys its gold jewellery
How India buys its gold jewellery India sees ~8-10 mn weddings each year Type of Jewellery People Spend ON which contribute to over 60% of the Fashion, jewellery demand 10% Bangles & Chains are most popular item sold Daily Wear, 30% Bridal, 60% Market Share National Chain, 7% Regional Players, 23% I
Slide 8: Visible shift in Demand Scenario
Visible shift in Demand Scenario Earlier Changing trends Present Unorganised - Organised - Local Jeweler Brands and Hallmark Rising Incomes Increasing regulations Highly Unregulated by the Government Changing Preferences Silver & Gold Gold & Diamond Jewellery Jewellery Favourable Demographics Invest
Slide 9: Along with increasing Regulations by the Government…
Along with increasing Regulations by the Government… ….Driving towards an Organised Market Mandatory PAN card on transactions above Rs. 2 lacs w.e.f. Initiatives Jan 1, 2016 Compulsory Hallmarking of Gold in the last Jewellery few years Levy of 1% excise duty w.e.f. Mar 1, 2016 Demonetisation of hig
Slide 10: GST: A Strong Platform for Organised Retailers
GST: A Strong Platform for Organised Retailers Earlier Tax Rate : Post GST: Modest increase in Gold Jewellery: ~2% Gold Jewellery: 3% tax rate not expected to impact demand Benefit For Organised Player: Under GST firms manufacturing inhouse will have advantage A firm can offset tax it pays against i
Slide 11: World of PCJ
World of PCJ
Slide 12: The world of PC Jeweller
The world of PC Jeweller Established in 2005 A Leading player in today the 2nd Largest Indian Wedding listed jewellery Jewellery Market retailer in India Featured in the list of 20 fastest growing Luxury Goods companies across the world Alongside: Pandora, Fossil, Graff #44 in the Top 100 Diamonds,
Slide 13: Our DNA built for performance…
Our DNA built for performance… Grown from 1 showroom in Karol Bagh (in 2005) to 79 showrooms today Focussed on Tier I & Tier II locations to leverage the income growth and brand awareness in such locations Consistently innovating in terms of designs, product ranges and leveraging technology Committe
Slide 14: …Leading to fastest growth since inception
…Leading to fastest growth since inception AZVA “#2 largest listed jeweller in India in a span of 10 years” Online Platform 5 Franchisee Stores 75 Showrooms 17 instore Exclusive 24 Showrooms Lounges 1 Flagship Showroom Bridal Jewellery Bridal, Fashion and Lifestyle Jewellery FY06 FY12 FY17 CAGR Sale
Slide 15: …With PAN India Presence
…With PAN India Presence 79 showrooms as of July 2017 Jammu 62 cities and 18 states Bhiwani Amritsar Ludhiana Chandigarh Yamuna Exclusive lounges at 17 showrooms Nagar Dehradun Hissar Haridwar Sri Ganganagar Sonipat Manufacturing Facility FY16 ~ 83,000 sq.ft Rohtak New Delhi (14) Ghaziabad (3) Noida
Slide 16: We stand apart with our offerings…
We stand apart with our offerings… High Street Locations Mass Market Locations Franchisee Exports Online Platform Bridal to Fashion Offerings Flagship Store at Karol Bagh, New Delhi 16
Slide 17: Targeted market approach
Targeted market approach Customer Metro Tier I Tier II Tier III Segment Exclusive Lounges Ultra Rich Started this concept in select showrooms ~3 years back. Focused on high end designer pieces High Street Showroom (avg. 5,000 sq ft) Franchisee showrooms across Rich and Upper Own showrooms across Met
Slide 18: High Street Stores – creates favorable brand image
High Street Stores – creates favorable brand image Located at high street locations in the city Trust and Ambience An element of ‘Trust’ to customers seeking one-stop for wedding jewellery products Have larger variety across price range, much wider than its competitors Large Product Variety More buy
Slide 19: Mass Market Stores – taps into newer micro markets
Mass Market Stores – taps into newer micro markets In our endeavour to innovate and target newer micro markets, we have moved beyond high street locations to local markets. Target middle class/ lower middle class customers who are not very comfortable in visiting showrooms at high street locations W
Slide 20: Franchisee Showrooms
Franchisee Showrooms Targets smaller Indian cities (Tier 2 and 3) Majority of smaller Indian cities still lack branded jewellery outlets However, the consumers of these locations also are brand conscious and want assurance of purity, quality as well as variety and range In light of this, we have dev
Slide 21: Online Platform
Online Platform Indian Online jewellery segment is ripe for disruption and is expected to reach 2-3% of jewellery market in next 4 years creating a $2-3 bn market. Currently it is estimated at only 0.20% of the total jewellery market Considering the potential we launched our ecommerce vertical as a
Slide 22: Adapting Technology
Adapting Technology • Reducing Capital Blockage and Digitizing inventory across increasing consumer choice showrooms • Inventory at all showrooms visible to customer at every showroom • Online Offline integration Online kiosk stores across all the • Catering to customers beyond existing showrooms we
Slide 23: Going Global
Going Global Exports Further exploring potential of… Promoters have over 2 decades of experience in Exports Focus on handmade designer gold jewellery Target: Indian diaspora and local population outside India Provides economies of scale to Company Branded Provides access to international designs and
Slide 24: Financial Overview
Financial Overview
Slide 25: Performance since IPO (Dec 2012)
Performance since IPO (Dec 2012) Revenues (Rs. Crores) Consistent focus on Retail Sales (Rs. Crores) 8,099 +21.6% 7,232 8,099 7,232 6,349 34.2% 6,349 5,325 28.9% 5,325 28.5% 4,018 24.8% 4,018 3,042 3,042 25.7% 33.0% 71.5% 71.1% 65.8% 75.2% 67.0% 74.3% FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY1
Slide 26: Leverage Strategy
Leverage Strategy We make PROFITS, We pay DIVIDENDS, and We maintain extremely LOW LEVERAGE PAT (Rs Crores) Strong CASH PAT generation (Rs. Crores) 431 453 399 401 422 356 378 369 291 301 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Dividend Payout Ratio Debt to Equity Ratio 15.0% 15.0% 15.0% 0
Slide 27: Financial Performance FY17 Highlights
Financial Performance FY17 Highlights Particulars (Rs. Crores) Q1 FY 2018 Q1 FY 2017* FY 2017 FY 2016* Revenue from Operations 2,119 1,664 8,099 7,232 Domestic Retail 1,383 1,050 5,338 5,140 Exports 736 614 2,766 2,092 Gross Margins (%) 14.30% 15.50% 12.69% 13.76% Domestic Retail 19.02% 20.76% 16.34
Slide 28: Way Forward
Way Forward 28
Slide 29: Our Curated focus areas
Our Curated focus areas Expanding Product Offerings 01 Going Global 05 02 Targeted market approach 04 03 Technology ROE enhncement E-Commerce Brand Leverage 29
Slide 30: Franchising – A Strategy for Growth
Franchising – A Strategy for Growth Reduced capital outlay Higher Profitability Higher ROCE Scalability with Strong Operating Higher ROCE negligible capex Leverage Economies of Scale to No major capex required kick in as transaction for expansion and Lower inventory costs volumes increase over payba
Slide 31: What we are focussed on for Future
What we are focussed on for Future Extensive focus on growth and capture of more market share by speeding up the store opening process Focus on Topline without diluting Bottom line Moving up the value chain by introducing “different” type of jewellery like Flexia, Azva etc. Emphasis on diamond jewel
Slide 32: What we are focussed on for Future
What we are focussed on for Future Focus on promoting Hallmarked Gold jewellery to enable conversion of customers from unorganised to organised Extensive focus on CRM (data capture, data analysis and usage) across all showrooms for marketing/ offering/ branding of our products Focus on Digital marke
Slide 33: PCJ Collections
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Slide 34: Successfully Running Collections
Successfully Running Collections Garland of Love 34
Slide 35: Successfully Running Collections
Successfully Running Collections Ferns and Turns 35
Slide 36: Successfully running Collections
Successfully running Collections
Slide 37: Successfully running Collections
Successfully running Collections
Slide 38: Successfully running Collections
Successfully running Collections
Slide 39: New Collections Launched in Q4 FY17
New Collections Launched in Q4 FY17
Slide 40: Expanding Product Offerings
Expanding Product Offerings New Collections Launched in Q3 FY17 DARSH OM HRIDYA ZAHRA JEIYA TWIRLZ
Slide 41: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : PC Jeweller Ltd Strategic Growth Advisors Pvt. Ltd. CIN: L36911DL2005PLC134929 CIN: U74140MH2010PTC204285 Mr. Sanjeev Bhatia Mr. Rahul Agarwal / Mr. Shrikant Sangani Email: sanjeev.bhatia@pcjewellers.com rahul.agarwal@s