Senco Gold Limited · NSE:SENCO
Senco Gold — Q1 FY2024 Earnings Presentation
33 slides from Senco Gold's earnings presentation, Aug 30, 2023
Slide 1: Stock exchange filing cover letter
6ssNSPl cis{tsflrrr ship JotYor+ Ref No: SEC/SE /2023-21/04 Date: 30t August, 2023 The Manager- Listing The Manager - Listing The National Stock Exchange of India BSE Limited Limited Corporate Relationship Department "Exchange Plaza", Bandra - Kurla Phiroze Jeeieebhoy Towers, Complex, Bandra (EAST),
Slide 2: Senco Gold Limited Investor Presentation Q1 FY24
SENCO GOLD LIMITED India’s 2nd Most Trusted Jewellery Brand* BSE – 543936 NSE - SENCO Investor Presentation – Q1 FY24 Private and Confidential * As per TRA report 2023 Bloomberg – SENCO:IN Date:30 Aug 2023 1
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: Table of Contents
TABLE OF CONTENTS 01 02 03 04 Company Investment Business Financial Overview Highlights Strategies Information (5-7) (9-21) (23) (25-31) 33
Slide 5: Company Overview
01 Company Overview
Slide 6: Senco Gold – A Snapshot
Senco Gold – A Snapshot Established Asset Light Franchise model Bouquet of Brands 62 Franchisee showrooms with 49 with sub-brands like Everlite, Gossip of them in Tier II Cities etc. targeting across segments 4 5 Largest organized jewellery 1,30,000+ Gold jewellery designs retail player in the easte
Slide 7: More than five decades of journey
More than five decades of journey ENTRY INTO ASSAM AND JHARKHAND ENTRY INTO SOUTHERN REGION FRANCHISEE MODEL 2010: Adopted franchisee route to expand 2016: Entered southern region by opening a outside West Bengal by opening first showroom in Bangalore. Opened first franchisee showroom in Assam. Intr
Slide 8: Key Highlights
Key Highlights 50+ 142 62 96 Years Showrooms Franchisee Towns & 2,240 Showrooms Cities Trust & Legacy Pan India Asset light Presence across ~No. of employees as Presence Franchisee Model Metro, Tier-i, Tier-ii on June ‘23 & iii 19% 0.84 2 19% 11% Million 3yrs CAGR Return on Equity Stud ratio Custome
Slide 9: Investment Highlights
02 Investment Highlights
Slide 10: Senco Gold Limited – Competitive Strengths
Senco Gold Limited – Competitive Strengths Strong brand name with heritage and a legacy of Cater to the upwardly mobile and younger over five decades 01 06 generation. Largest* organized jewellery retail player In-house modern and tech enabled in the eastern India 02 07 manufacturing (*based on numb
Slide 11: 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 Organised players^ grew at ~20% CAGR vs ~14% for the industry over FY17-23 (INR Bn) Structural growth drivers to cause this gain in market share Changing Consumer Superior Organisation R
Slide 12: Strong brand name with heritage
Strong brand name with heritage Quality Standards and Transparency Design and Innovation Consumer Trust Run by 4th generation professional entrepreneur as Promoter with PE Reputed brand ambassadors like Kiara investment Advani, Sourav Ganguly, Vidya Balan etc. from SAIF partners India IV Limited and
Slide 13: Leveraging Our Strong Karigari Base
Leveraging Our Strong Karigari Base Commit significant Quality finished Maintain exclusivity volumes of work products at of in-house designs to Karigar competitive prices Our presence in West Bengal gives us Stringent quality control to access quality craftsmen in carving procedures to ensure standa
Slide 14: Pan-India presence; Largest Retail Player in Eastern Region
Pan-India presence; Largest Retail Player in Eastern Region 142 80 62 Widespread Distribution Network Showrooms Company Owned Franchisee 13 96 Geographically Diversified Presence States Towns & Cities West Bengal - East – 85 stores 23 stores Q1 Q162 FY24 49 13 North – West – 80 FY24 36 32 12 20 stor
Slide 15: Reinforcing the Hyperlocal Touch, Jewellery Retail Pan-India Brand
Reinforcing the Hyperlocal Touch, Jewellery Retail Pan-India Brand Regional Brand Ambassadors in Eastern India Market INR 810 Mn – spends on advertisement and sales promotion expenses with focus on Digital and TV ( FY23) KIARA ADVANI – Actress ISHA SAHA SUNITA Kaushik DITIPRIYA Roy Avg. 2.0% of Rev.
Slide 16: 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) 30 showrooms from FY21 till date Operational leverage of franchisee model # of Showrooms ▪ Upfront sale
Slide 17: Product Range Catering to Diverse Customer Group
Product Range Catering to Diverse Customer Group 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 Antique Temple 1,30,000+ designs for gold jeweller
Slide 18: Calibrated focus on light weight jewellery
Calibrated 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 j
Slide 19: Omni-channel Retail Network
Omni-channel Retail Network Phy-gital Model OMNI CHANNEL HYPERLOCAL 142 Showrooms 1 Fulfillment Order Processing with customized showroom format Hub & Spoke Model App ‘MySenco’ app with over 2,78,979+ downloads Own Websites Customers www.sencogoldanddiamonds.com Website www.mydigigold.com Video/ Tel
Slide 20: Digital Focus and Integrated Systems
Digital Focus and Integrated Systems Standard SQL server reporting Adopting augmented reality (AR) through Magic services (“SSRS”) 01 08 Mirror and virtual try on of ornaments Customer 360 Degree insights Digi Gold – A Platform to buy/sell enables targeted marketing gold in any quantity 02 07 Period
Slide 21: Robust systems and procedures help seamless collaboration and growth
Robust systems and procedures help 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 22: Experienced Board and management team backed by institutional investor support
Experienced Board and management team backed by institutional investor support 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 C
Slide 23: Business Strategies
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Slide 24: Our Strategies to drive Future Growth
Our Strategies to drive Future Growth ▪ Hub and spoke approach to enter new geographies Further expand our presence through ▪ Aim to enter new jewellery market where we can potentially gain from local 1 a strong and diverse distribution jewellers channel ▪ Increase sales through online channels ▪ Fo
Slide 25: Financial Information
04 Financial Information
Slide 26: Management Comment
Management Comment "The recently concluded quarter has been yet another positive one for us at Senco Gold & Diamonds achieving highest ever Q1 revenue of Rs. 1,305 Cr. We have witnessed continued robust momentum in both footfalls at showrooms and revenue across all markets. We are seeing a higher tr
Slide 27: Q1FY24 Performance Summary
Q1FY24 Performance Summary Revenue from operations (Rs. mn) EBITDA (Rs. mn) • YOY Revenue growth of 30% 13,054 mainly on account of new store 10,072 672 addition during the quarter, higher footfall, increased volume of Gold 550 (8%) & Diamond (34%) Q1 FY23 Q1 FY24 • Improvement in stud ratio from 9%
Slide 28: Q1FY24: Profit & Loss Statement (Consolidated)
Q1FY24: Profit & Loss Statement (Consolidated) Particulars (INR Mn) Q1 FY24 Q1 FY23 Y-o-Y(%) Q4 FY23 Q-o-Q(%) Total Income from Operations 13,054.00 10,072.42 29.60% 8,139.34 60.38% Cost of Goods Sold 11,421.68 8,714.95 6,604.88 Employee Cost 253.9 209.6 279.7 Other Expenses 706.4 597.7 587.6 EBITDA
Slide 29: Consistent Revenue Growth, Profitability and Return on Equity
Consistent Revenue Growth, Profitability and Return on Equity INR Mn unless stated otherwise Revenue from operations Operational margins Profit After Tax EBITDA (%) Gross Margins (%) YoY Growth CAGR 19% Gross margins is a function of franchisee gross 22% 40,774 margins also 35,346 17.5% 15.7% 16.1%
Slide 30: Statement of Profit and Loss (Ind-AS) (Consolidated)
Statement of Profit and Loss (Ind-AS) (Consolidated) Particulars (INR Mn) FY21 FY22 FY23 Total Income from Operations 26,603.79 35,346.41 40,774.04 Cost of Goods Sold 22,853.94 29,805.40 34,219.34 Employee Cost 521.81 747.67 933.8 Other Expenses 1,474.80 2,021.50 2,454.68 EBITDA 1753.24 2771.84 3166
Slide 31: Balance Sheet (Ind-AS)
Balance Sheet (Ind-AS) FY21 FY22 FY23 FY21 FY22 FY23 Particulars (INR Mn) Particulars (INR Mn) (Consolidated) (Consolidated) (Consolidated) (Consolidated) (Consolidated) (Consolidated) EQUITY AND LIABILITIES ASSETS Equity Non-current assets Total Equity 6,026.20 7,259.67 9,455.20 Property, plant and
Slide 32: Shareholding Pattern
Shareholding Pattern Pre IPO Holding Top 10 Institutional Shareholders Promoters Saif Partners India IV ltd. Oman India Joint Investment Fund Saif Partners India 76.92% 19.23% BNP Paribas Arbitrage 3.85% Oman India Joint Investment Fund Jupiter India Fund Nippon India MF Holding as on 11th August 20
Slide 33: Thank You
THANK YOU For further information, please contact Mr. Sanjay Banka Chief Financial Officer sanjay.banka@sencogold.co.in CIN: U36911WB1994PLC064637 Telephone: +91 33 4021 5000 Email: IR@sencogold.co.in Website: www.sencogoldanddiamonds.com