Senco Gold Limited · NSE:SENCO
Senco Gold — Q3 FY24 Earnings Presentation
48 slides from Senco Gold's earnings presentation, Feb 14, 2024
Slide 1: Cover letter to stock exchanges
Ref: SEC/SE/2023-24/59 Date: 14th February, 2024 The Manager- Listing The Manager – Listing BSE Limited The National Stock Exchange of India Corporate Relationship Department Limited Phiroze Jeejeebhoy Towers, “Exchange Plaza”, Bandra – Kurla Complex, Dalal Street, Mumbai - 400001 Bandra (EAST), Mum
Slide 2: Investor Presentation Q3 & 9M FY24
India’s 2nd Most Trusted & 2nd Most Desired Jewellery Brand* SENCO * As per TRA report 2023 GOLD LIMITED Investor Presentation Q3 & 9M FY24 BSE – 543936 NSE - SENCO Bloomberg – SENCO:IN 14TH February 2024 1 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: Index
Index 01 Company Overview (4-12) 02 Investment Highlights (13-34) 03 Business Strategies (35-37) 04 Financial Information (38-46) 33
Slide 5: Company Overview
01 Company Overview 4
Slide 6: Guiding Pillars That Define Senco Gold & Diamonds
Guiding Pillars That Define Senco Gold & Diamonds Trust and Transparency Vision India’s most trusted jewellery brand and a Best Business Practices and leading accessory & lifestyle partner Processes Mission • Delight our valuable customers and fulfil their lifestyle needs and desires Purity and Qual
Slide 7: Serving Indian Jewellery Industry since 4 generations
Serving Indian Jewellery Industry since 4 generations Shri Maran Chand Sen Shri Prabhat Chandra Shri Shaankar Sen Shri Suvankar Sen Sen (Founder Chairman) Son of a school principal, Son of Shri Shaankar Sen used to work at a Jewellery Son of Shri Maran Chand Sen Son of Shri Prabhat Chandra joined th
Slide 8: Over eight decades of journey
Over eight decades of journey Entered southern The Humble Beginning Adopted franchisee region by opening route to expand 2016 Shri M C Sen started the showroom in 2010 outside West Bengal jewellery business in Bangalore. FRANCHISEE MODEL by opening first Dhaka and shifted to Introduced Everlite show
Slide 9: Strong Brand Name With Rich Heritage & Legacy
Strong Brand Name With Rich Heritage & Legacy Quality Standards and Transparency Design and Innovation Consumer Trust Run by 4th generation professional entrepreneur as Promoter with PE investment from Elevation Capital (SAIF Partners India IV Limited) Over 2 million Loyal customers 2014 and Oman In
Slide 10: Experienced Board of Directors
Experienced Board of Directors 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 Company since the incorporation of the ▪ Previous
Slide 11: Senco Snapshot
Senco Snapshot India’s 2nd Most Trusted & 2nd Most Desired Jewellery Brand Rich heritage and legacy Bouquet of Brands of over Eight decades with powerful brands like Everlite, Gossip, Aham, Among the most trusted brand Sennes etc. targeting across all segments and GenZ also ET Trusted Brands 2021 2n
Slide 12: Key Highlights
Key Highlights 80+ 155 65 105 Years Showrooms Franchisee Towns & 2,413+ Showrooms Cities Team Strength Trust & Legacy Pan India Asset light Presence across Metro, 19% 14.2% Presence 19% Franchisee Model 11.6% Tier-i, Tier-ii & iii 2 Mn + ROCE Stud ratio Loyal 3yrs Revenue CAGR Return on Equity (RoE)
Slide 13: Awards & Recognitions
Awards & Recognitions India’s 2nd Most Trusted Brand ET Inspiring Women Leaders 2023 Excellence in Design Innovation in Gold & Diamond by TRA Research Pvt. Ltd. By ET Women's Conclave 2023 By Jagran Achiever Awards 2023 New Powerful Women The Rising Star, 40 Under 40 The Young Business leader Jewell
Slide 14: Investment Highlights
02 Investment Highlights 13
Slide 15: India's Gems and Jewellery market – TAM of INR 4.7 Trillion
India’s Gems and Jewellery market – TAM* of INR 4.7 Trillion Structural growth drivers act as tailwind for growth of India’s Gem and Jewellery sector growing at 14% CAGR organized sector (INR Bn) Changing Consumer Superior Organisation Regulatory Changes Preference Capabilities ~4,700 ▪ Increasing d
Slide 16: India's Gems and Jewellery market – Rural Bharat leads demand
India’s Gems and Jewellery market – Rural Bharat leads demand Gold jewellery demand and ownership is higher in rural Rising share of organised retail in jewellery to India and rises with income levels continue India is the 2nd largest gold market in the world 60 68 40% 3rd Highest 95 94 component of
Slide 17: Emerging trends accelerating market share of organized jewellers
Emerging trends accelerating market share of organized jewellers Changing Consumer Trends BIS Hallmarking Evolution of Consumer Preferences: Preceding Regulatory Mandate Market Transparency, Product Purity, and Quality Benchmark Brand Awareness: Growing momentum driven by Marketing Strategies of Cle
Slide 18: Pan-India presence & largest Retail Player in Eastern Region
Pan-India presence & largest Retail Player in Eastern Region 90 155 Showrooms 155 Company showrooms (19 showrooms current year Large 43 showrooms since Apr-20) Distribution Showrooms 65 Network Franchisee showrooms 16 105 Region Own Franchisee Total Geographically Diversified East ( including WB) 53
Slide 19: Customized Showroom formats catering to all segments
Customized Showroom formats catering to all segments Classic D’Signia Everlite Modern House of Senco Sennes Traditional Customer Base Younger Target Audience Premium and Upcoming Lifestyle and in existing generation & Super Luxury HNI Geographies accessories geography millennials Average Ticket Valu
Slide 20: Omni-channel Retail Network
Omni-channel Retail Network Phygital Model OMNI CHANNEL HYPERLOCAL 155+ Showrooms 1 Over ~90% of Own showrooms are leased Fulfillmen Order Processing t Hub & Spoke Model App ‘MySenco’ app with almost 2 3,05,000+ downloads Customers Websites & Apps Websit www.sencogoldanddiamonds.com e Video/ 3 mydig
Slide 21: 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 # of Showrooms Operational leverage of franchisee model Senco has added (net) 43 showrooms from FY21 till date ▪ Leverage Hub
Slide 22: Leveraging Bengal's Karigari and Craftsmanship
Leveraging Bengal’s Karigari and Craftsmanship Significant volumes (~70%) of work allocated to Karigars Attractive designs with Hyper local Focus Maintain exclusivity of in-house designs Our presence in Eastern India gives us Stringent quality control strategic locational advantages with procedures
Slide 23: Focus on light weight jewellery
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 jewellery ha
Slide 24: Glimpses of New Collections
Glimpses of New Collections AHAM COLLECTION LOTUS COLLECTION Aham brings an exclusive collection where masculinity meets magnificence. Crafted with precision in gold, diamond, and platinum, the designs command admiration in every setting. Bold, confident, and alluring, these pieces are tailored for
Slide 25: Glimpses of New Collections
Glimpses of New Collections RAJWADA COLLECTION KIDS COLLECTION Kids Collection is crafted in 14k gold, adorned with delicate diamonds, and painted in pastel enamels, Perfect blend of traditional opulence, these small earrings, charms bracelets, and contemporary elegance and eternal beauty pendants c
Slide 26: Campaign of New Collections
Campaign of New Collections 25
Slide 27: Campaign of New Collections
Campaign of New Collections Aham Campaign Digital Campaign 26
Slide 28: Campaign of Rajwada Collections
Campaign of Rajwada Collections 27
Slide 29: Campaign of Gossip Collections
Campaign of Gossip Collections 28
Slide 30: Driving Pan India Brand Loyalty
Driving Pan India Brand Loyalty Ishaa Saha Madhumita Sarcar Ditipriya Roy Regional Brand Vidya Balan Ambassadors in Eastern India Market Jaya Ahsan Marketing & Promotional Exp. % of Revenue 9M FY24 Rs 716 Mn 9M FY 24 – 1.7% Kiara Advani Sourav Ganguly Digital Focus Last 3ys avg. Below 2.0% 29
Slide 31: Wide Product Range at attractive price points
Wide Product Range at attractive price points 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 Bridal Jewellery Solitaire Diamonds 1,30,000+ designs
Slide 32: Digital Focus and Integrated Systems
Digital Focus and Integrated Systems ERP driven organization since two Standard SQL server decades integrated with all critical reporting services (“SSRS”) business operations giving real time 08 01 control and visibility Leveraging latest technology like Customer 3600 insights enables augmented rea
Slide 33: Digital Initiatives: Sencoverse (Metaverse)
Digital Initiatives: Sencoverse (Metaverse) Future ready to attract GenZ: • Metaverse has seen 75,000 visitors post its launch. • Aims to offer cutting-edge, immersive shopping experience. • Virtual environment lets customers browse, try on, and purchase jewellery from home. • Wide range of designs
Slide 34: Robust systems and procedures helps seamless collaboration and growth
Robust systems and procedures helps 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 35: Sennes
Sennes Products • Women’s leather Bags and wallets • Travel/Toilet Kit • Men’s Bags • Card Cases • Laptop bags • Spectacle cases • Backpacks • Tab Cover with Pouch & Key • Men’s wallets Chains. Range of products • Small leather goods: INR 1,000 to INR 7,500 • Leather Bags: INR 9,000 to INR 30,000 Pr
Slide 36: Business Strategies
03 Business Strategies 35
Slide 37: Strategies to drive Future Growth
Strategies to drive Future Growth ▪ Accelerated Showroom Expansion on pan India basis with modern formats . Passionately Drive sustainable profitable Growth on Pan India basis and 1 consolidating our market leadership in the East ▪ Sustain, Strengthen & Leverage Franchisee Model for growth in Tier 3
Slide 38: Key Growth Drivers
Key Growth Drivers INR Mn unless stated otherwise Showroom expansion Pan India Revenue Growth Stud Ratio CAGR Company Franchisee Growth SSSG 10% 11% 19% 155 127 136 9% 8% 112 33% 65 61 27% 26% 57 52 15% 17% 90 10% 10% 75 7% 60 70 FY21 FY22 FY23 Dec-23 FY21 fY22 FY23 9M FY24 FY21 FY22 FY23 9M FY24 Av
Slide 39: Financial Information
04 Financial Information 38
Slide 40: Management Comment on Q3 & 9M performance
Management Comment on Q3 & 9M performance “This year so far, we have seen a robust performance from Team Senco in terms of Showroom Expansion, Topline achievement, launch of new collections, New Formats like House of Senco and Sennes resulting into sound financial performance. We have so far rolled
Slide 41: 9M and Q3, FY2024 performance
9M and Q3, FY2024 performance 9 Months 3 Months Revenue from operations (Rs. mn) Revenue from operations (Rs. mn) • Q3 FY 24 revenue growth of 24% includes dhanteras sales of Rs 920cr which is almost 55% of Q3 revenue 16,522 32,635 41,042 13,396 • 9m FY24 YOY revenue growth of 26% is mainly on accou
Slide 42: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Particulars (INR Mn) FY22 FY23 Q3 FY23 Q3 FY24 Y-o-Y (%) Q2 FY24 9M FY23 9M FY24 Total Income from Operations 35,346.41 40,774.04 13,396.36 16,522.02 23.3% 11,465.57 32,634.70 41,041.59 Cost of Goods Sold 29,805.40 34,219.34 10,814.5 13,438.63 24.3% 10,111.18 2
Slide 43: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) As at As at As at As at As at As at Particulars (INR Mn) Particulars (INR Mn) Mar-22 Mar-23 Sep-23 Mar-22 Mar-23 Sep-23 EQUITY AND LIABILITIES ASSETS Equity Non-current assets Total Equity 7,259.67 9,455.20 12,352.07 Property, plant and equipment 691.00 847.02 937.66 Non
Slide 44: Cash Flow Statement (Consolidated)
Cash Flow Statement (Consolidated) FY22 FY23 H1 FY23 H1 FY24 Particulars (INR Mn) Cash Flow from operating activities Profit/(loss) before Tax and Exceptional Items 1,769.59 2,161.52 430.16 513.63 Adjustments for: Depreciation and Amortisation Expense 421.15 455.53 199.37 258.02 Finance Costs -71.50
Slide 45: Key Financial Metrices
Key Financial Metrices INR Mn unless stated otherwise Gold Sourcing Gold Metal Loan (GML) as % of total Borrowings Blended Borrowing Cost per annum 45% 49% 49% 60% 9.3% 9.6% 50% 50% 54% 9.2% 46% 27% 28% 40% 6.6% 22% 22% 21% 6.0% 6.1% 16% 17% 3.5% 3.3% 3.2% 1% 2% 0.1% 0.2% 0.1% FY22 FY23 9MFY24 FY22
Slide 46: Five years successful track record
Five years successful track record INR Mn unless stated otherwise Revenue from operations Operational margins Profit After Tax EBITDA (%) Gross Margins (%) CAGR 19% Gross margins is a function of franchisee gross margins also 1,585 1,488 40,774 41,042 1,291 35,346 17.5% 16.1% 14.1% 15.7% 14.8% 26,60
Slide 47: Shareholding Pattern
Shareholding Pattern Holding as on 31st December 2023 Major Share holders among Top 10 (Excluding Promoters) As on 31st December 2023 Promoters 68.46% SAIF PARTNERS INDIA IV LIMITED SAIF Partners OMAN INDIA JOINT INVESTMENT FUND II India 11.63% 3P INDIA EQUITY FUND 1 OIJIF 2.66% JUPITER INDIA FUND 2
Slide 48: THANK YOU
THANK YOU For further information, please contact Sanjay Banka Chief Financial Officer & Head IR sanjay.banka@sencogold.co.in CIN: L36911WB1994PLC064637 Telephone: +91 33 4021 5000 Email: IR@sencogold.co.in Website: www.sencogoldanddiamonds.com