Kalyan Jewellers India Ltd. · NSE:KALYANKJIL
Kalyan Jewellers India — Q2 FY2024 Earnings Presentation
50 slides from Kalyan Jewellers India's earnings presentation, Nov 14, 2023
Slide 1: Exchange filing cover letter: Investors/Analysts Presentation
SEC/87/2023-2024 November 14, 2023 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 2023
I N V ESTO R P R ES E N TAT I O N November 2023 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 03 27-29 COMPANY OVERVIEW STRATEGIC PRIORITIES 02 04 10-25 31-45 INVESTMENT HIGHLIGHTS PERFORMANCE REVIEW
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 30 Years 175 34 997 ₹ 160,562 Mn Showrooms Showrooms in "My Kalyan" Current Revenues Since Formation in India Middle East Grassroots Stores (Last 12 months) 5 23 13 11,181 ₹ 5,216 Mn Countries States & UT’s in India Procurement Centres Employees Current Adj. Profit
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 Jammu & Kashmir • Karnataka • 17 • 1 1 Chandigarh • 1 Tamil Nadu • 23 Odisha •5 84% Showrooms in 16% Showrooms in Punjab India (Including Middle East • 6 Jharkhand •4 Uttarakhand Candere) Rajasthan •4 Telangana
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 ~₹10,000 mn Marketing and Advertising Investments In Last 4 Years REGIONAL INFLUENCERS Pooja Sawant Maharashtra (Marathi) 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 997 Grassroots Network: ‘My Kalyan“ centres Facilitator of the neighborhood Dedicated “My Kalyan” personnel Showcase product Drive traffic to jeweller pr
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: 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 24: 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 25: 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 26: 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 27: Strategic Priorities
03 STRATEGIC PRIORITIES Py KALYAN JEWELLERS
Slide 28: 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 Since IPO and Road Ahead Strengthening Growing In Pan-India Expansion, Capitalising On The Foundation – Our Roots Southern India Professionalisation & Investment P
Slide 29: 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 30: Way Forward – FY25
Long-term objectives & priorities Way Forward – FY25 Same Stores Reward Return Profile India Expansion Middle East Expansion Sales Growth Shareholders Targeted same stores sales • Capital-efficient franchise • To increase the share of • Calibrated expansion in • Use the benefits of growth of mid to
Slide 31: Performance Review
04 PERFORMANCE REVIEW Py KALYAN JEWELLERS
Slide 32: Kalyan Jewellers Has Made Significant Progress Over the Past Few Years
Recap of Performance through COVID Kalyan Jewellers Has Made Significant Progress Over the Past Few Years Meaningful Progress Across Key Business Metrics … … Supported by Clear Strategic Steps/Direction & Execution FY20 FY23 TTM Clear Strategic Direction Towards Capital-Efficient Growth, ROCE Accret
Slide 33: Ushering Into New Era of Growth With Franchise Model
Franchise Model Ushering Into New Era of Growth With Franchise Model 1st Franchise store at Aurangabad, Maharashtra First showroom 70+ showrooms launch Q1FY23 FY24 End Now 55 Kalyan showrooms in India, 2 Candere showrooms in India, 1 Kalyan showroom in Middle East Objectives: • Focus company’s expan
Slide 34: India: Q2FY24 Performance Summary
India performance India: Q2FY24 Performance Summary • Revenue growth of over 32% when compared to Q2FY23 Revenue (₹mn) driven by robust underlying operating momentum No. of Showrooms • New customer additions continue to stay healthy; share of 37,543 new customers at over 36% 172 28,409 • Added 13 sh
Slide 35: India: Q2FY24 Performance Summary
India performance India: Q2FY24 Performance Summary South Revenue (₹mn) Non-South Revenue (₹mn) 20,435 17,108 18,951 • South revenue driven entirely by Same store sales growth (SSSG) as no showrooms were launched in the last 9,458 12 months • Non-south SSSG higher than south • Non-south share at 45.
Slide 36: ME: Q2FY24 Performance Summary
ME performance ME: Q2FY24 Performance Summary Revenue (₹mn) • Consumer sentiment continues to remain No. of Showrooms robust • 5% revenue growth YoY; EID holidays-driven sales which was not part of this quarter 34 6,290 (Q2 FY24) and was part of the base quarter (Q2 FY23) impacted revenue 31 6,006 g
Slide 37: Consolidated: Q2FY24 Performance Summary
Consolidated performance Consolidated: Q2FY24 Performance Summary Revenue (₹mn) Gross Profit (₹mn) 44,145 6,306 34,729 5,261 Q2FY23 Q2FY24 Q2FY23 Q2FY24 EBITDA (₹mn) PAT (₹mn) 1,349 3,137 1,059 2,661 Q2FY23 Q2FY24 Q2FY23 Q2FY24 KALYAN JEWELLERS INDIA LIMITED 36
Slide 38: Historical Financial Performance Summary
Consolidated performance Historical Financial Performance Summary Revenue (₹mn) • Trailing Twelve Month (TTM) Consolidated Revenue EBITDA1 (₹mn) & EBITDA Margins (%) of ₹ 1,60,562 mn, over 58% higher than 1,60,562 pre-COVID (FY20) levels 7.9% 7.5% 7.5% 7.6% 1,40,714 • TTM India Standalone Revenue of
Slide 39: 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 0.7 0.6 0.2 0.2 FY20 FY23 H1FY24 Note: 1. GML: Gold Metal Loan KALYAN JEWELLERS INDIA LIMITED 38
Slide 40: Q2FY24 India: Income Statement
India performance Q2FY24 India: Income Statement Particulars (₹mn) Q2FY24 Q2FY23 YoY Q1FY24 QoQ Revenue 37,543 28,409 32% 36,409 3% Gross Profit 5,324 4,319 23% 5,488 (3)% Gross Profit Margins % 14.2% 15.2% 15.1% Total Opex 2,651 2,096 27% 2,797 (5)% Advertisement & Promotion 538 571 (6)% 793 (32)%
Slide 41: H1FY24 India: Income Statement
India performance H1FY24 India: Income Statement Particulars (₹mn) H1FY24 H1FY23 YoY Revenue 73,952 55,599 33% Gross Profit 10,811 8,524 27% Gross Profit Margins % 14.6% 15.3% Total Opex 5,448 4,121 32% Advertisement & Promotion 1,331 1,161 15% Other Opex 4,117 2,960 39% EBIDTA 5,363 4,402 22% EBIDT
Slide 42: Q2FY24 ME: Income Statement
Middle East performance Q2FY24 ME: Income Statement Particulars (₹mn) Q2FY24 Q2FY23 YoY Q1FY24 QoQ Revenue 6,290 6,006 5% 7,003 (10)% Gross Profit 925 899 3% 1,049 (12)% Gross Profit Margins % 14.7% 15.0% 15.0% Total Opex 444 432 3% 496 (10)% Advertisement & Promotion 79 73 8% 110 (28)% Other Opex 3
Slide 43: H1FY24 ME: Income Statement
Middle East performance H1FY24 ME: Income Statement Particulars (₹mn) H1FY24 H1FY23 YoY Revenue 13,294 11,742 13% Gross Profit 1,974 1,790 10% Gross Profit Margins % 14.8% 15.2% Total Opex 940 853 10% Advertisement & Promotion 190 177 7% Other Opex 750 676 11% EBIDTA 1,034 937 10% EBIDTA Margins % 7
Slide 44: Q2FY24 Consolidated Income Statement
Consolidated performance Q2FY24 Consolidated Income Statement Particulars (₹mn) Q2FY24 Q2FY23 YoY Q1FY24 QoQ Revenue 44,145 34,729 27% 43,757 1% Gross Profit 6,306 5,261 20% 6,604 (5)% Gross Profit Margins % 14.3% 15.2% 15.1% Total Opex 3,169 2,600 22% 3,375 (6)% Advertisement & Promotion 630 665 (5
Slide 45: H1FY24 Consolidated Income Statement
Consolidated performance H1FY24 Consolidated Income Statement Particulars (₹mn) H1FY24 H1FY23 YoY Revenue 87,903 68,055 29% Gross Profit 12,910 10,435 24% Gross Profit Margins % 14.7% 15.3% Total Opex 6,544 5,132 28% Advertisement & Promotion 1,554 1,388 12% Other Opex 4,990 3,744 33% EBIDTA 6,366 5
Slide 46: Standalone Income Statement
Standalone Performance Standalone Income Statement Particulars (₹mn) TTM FY23 FY22 Revenue 1,34,193 1,15,840 90,561 Gross Profit 20,388 18,100 13,868 Gross Profit Margins % 15.2% 15.6% 15.3% Total Opex 10,096 8,769 6,953 Advertisement & Promotion 2,582 2,412 1,931 Other Opex 7,514 6,357 5,022 EBITDA
Slide 47: Consolidated Income Statement
Consolidated Performance Consolidated Income Statement Particulars (₹mn) TTM FY23 FY22 Revenue 1,60,562 1,40,714 1,08,179 Gross Profit 24,467 21,992 16,916 Gross Profit Margins % 15.2% 15.6% 15.6% Total Opex 12,264 10,852 8,771 Advertisement & Promotion 3,047 2,881 2,324 Other Opex 9,216 7,971 6,448
Slide 48: Standalone Balance Sheet
Standalone performance Standalone Balance Sheet Particulars (₹mn) FY23 H1FY24 Particulars (₹mn) FY23 H1FY24 Equity and Liabilities Assets I. Equity I. Non-current Assets (a) Equity Share Capital 10,300.53 10,300.53 (a) Property, Plant and Equipment 7,370.84 8,267.53 (b) Other Equity 26,365.69 28,215
Slide 49: Consolidated Balance Sheet
Consolidated performance Consolidated Balance Sheet Particulars (₹mn) FY23 H1FY24 Particulars (₹mn) FY23 H1FY24 Equity and Liabilities Assets I. Equity I Non-current Assets (a) Equity Share Capital 10,300.53 10,300.53 (a) Property, Plant and Equipment 8,738.18 9,625.98 (b) Other Equity 26,046.58 28,
Slide 50: 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
Kalyan Jewellers India — Q2 FY2024 Earnings Presentation on 6ix