Pc Jeweller Ltd. · NSE:PCJEWELLER
Pc Jeweller — Investor Presentation (February 2015)
44 slides from Pc Jeweller's investor presentation, February 2015
Slide 1: PC Jeweller Limited
February 2015 PC Jeweller Limited
Slide 2: Disclaimer
Disclaimer Certain statements are included in this release which contain words or phrases such as “will,” “aim,” “will likely result,” “believe,” “expect,” “will continue,” “anticipate,” “estimate,” “intend,” “plan,” “contemplate,” “seek to,” “future,” “objective,” “goal,” “project,” “should,” “will
Slide 3: Indian Jewellery Industry
Indian Jewellery Industry Annual value of India’s domestic gems and jewellery industry is over INR 3,000 bn (US$ 50 bn) ....Expected to grow @ CAGR of over 16% to reach INR 5,430 bn (US$90.5 bn) by 2018 Of this, organized market constitutes ~20-22% (regional chains contribute ~17% and national chain
Slide 4: Promoter Background
Promoter Background Company’s promoter, first generation entrepreneur Mr. Padam Chand Gupta, entered the jewellery business in 1971 in partnership with a family friend Mr. Balram Garg joined the jewellery business in 1989 This partnership continued till 2005, when the two families amicably sep
Slide 5: PC Jeweller – Brief Snapshot
PC Jeweller – Brief Snapshot PC Jeweller - India’s leading jewellery retail chain Backed by strong promoter team, professional management and an independent board 50 showrooms across 42 cities and 17 states (over 3,13,000 sq. ft. of retail space) Indian Jewellery Market: ~US$ 50 bn, growing at 18% a
Slide 6: Right Business Plan, Speedy Execution with Careful Optimism over the years
Right Business Plan, Speedy Execution with Careful Optimism over the years FY 2005 - 06 • Commenced operations with a single showroom focussed on wedding jewellery at Karol Bagh (New Delhi) FY 2007 - 08 • +2 showrooms • Export operations commenced, manufacturing facility upgraded at Noida SEZ FY 200
Slide 7: Business Segments – Brief Overview
Business Segments – Brief Overview PC Jeweller Limited FY 2014 Sales: INR 53,248 mn (US$ 887.5 mn) 75.20% 24.80 % Domestic Sales Export Sales Sales – Rs. 40,021 mn (US$ 667.0 mn) Sales – Rs. 13,228 mn (US$ 220.5 mn) Gross Margins ~15 %- 16% Gross Margins ~ 8% (on steady state basis) 72.85% Gold Jewe
Slide 8: Extensive Retail Network – Pan India Reach
Extensive Retail Network – Pan India Reach Jammu 50 showrooms across 42 cities Amritsar and 17 states till date Panchkula Ludhiana Dehradun Chandigarh Hisar Hardiwar Expansion plans are well on Shri Ganganagar Rohtak Ghaziabad New Delhi Faridabad Bareilly track with 9 new showrooms Jaipur Gurgao
Slide 9: Showrooms opened in FY 2015 till date
Showrooms opened in FY 2015 till date Showroom Area in Sq. Ft. Opening Date Ranchi, Jharkhand 3,300 May 2014 Guwahati, Assam 4,350 Jun 2014 Jammu, J&K 3,250 Jun 2014 Patna, Bihar 6,378 Jul 2014 Kolkata, West Bengal 8,198 Sep 2014 Mathura, UP 3,200 Oct 2014 Bareilly, UP 4,000 Nov 2014 Varanasi, UP 13
Slide 10: Robust Financial Performance Trends
Robust Financial Performance Trends 5 years CAGR in revenues ~ 52.5% Continuously growing focus on Retail Sales 35,000 Total Sales (INR Mn) 100% 53,248 28,000 33.5% 25.5% 24.8% 80% 40,184 34.4% 33.0% 21,000 75.2% 74.5% 60% 67.0% 30,419 66.5% 65.6% 14,000 40% 19,771 9,848 7,000 20% 0% 0 FY 2010 FY 20
Slide 11: Robust Financial Performance Trends (Cont’d.)
Robust Financial Performance Trends (Cont’d.) RoCE RoE Significant increase in 30,000 45.4% 30,000 43.6% 26,853 43.9% 41.9% networth owing to IPO fund 25,000 38.2% 25,000 raise 16,197 30.0% 20,000 13,888 16,823 20,000 29.1% 20.9% 15,000 15,000 21.2% 11,275 10,000 21.4% 10,000 5,492 4,647 5,000 2,624
Slide 12: Robust Financial Performance - 9 months ending Dec 2014
Robust Financial Performance - 9 months ending Dec 2014 9 MTHS FY 15 9 MTHS FY 14 Particulars (Rs. Mn) (Apr – Dec) (Apr – Dec) Revenue from Operations 43,283 37,887 Domestic Retail 30,740 28,985 Exports 12,543 8,902 Gross Margins 15.40% 15.28% Domestic Retail 18.22% 14.68% Exports 8.48% 17.24% Expen
Slide 13: Salient Features - Unique Business Model
Salient Features - Unique Business Model PC Jeweller has focus on wedding jewellery which is a high ticket purchase with strong emotional touch-point for most Indian families Wedding jewellery is considered as an investment and an asset to be used in need. Trust becomes the most important factor
Slide 14: Salient Features - Unique Business Model (Cont’d)
Salient Features - Unique Business Model (Cont’d) Pursuant to our contract with canalizing agencies and international bullion suppliers, price of gold purchased is fixed within the applicable credit period on the basis of prevailing gold rates on sale to Gold Hedging customers o This minimizes any
Slide 15: Salient Features (Cont’d.)
Salient Features (Cont’d.) Strong Designing and Manufacturing Capabilities Company has a strong team of over 50 designers who keep on creating new patterns and designs on a regular basis based on domestic and international trends Company also participates in domestic and international fashion sh
Slide 16: Salient Features (Cont’d.)
Salient Features (Cont’d.) Profitable Growth without additional Capital We plan to grow through its internal accruals without raising additional capital We are confident that our future accruals would be sufficient to take care of its future capital requirements even after increasing dividend pa
Slide 17: Strong Risk Management Policies
Strong Risk Management Policies Company obtains almost of all its gold on lease basis which protects it against gold price fluctuations 100% insured transfer Entire inventory, including raw material, finished goods at stores, goods under transit remains fully insured at all times Nearly 80%
Slide 18: Business de-risked from Gold price fluctuations
Business de-risked from Gold price fluctuations Gold Purchase Arrangement Domestic Exports Mode of Purchase RBI Nominated Agency Direct Import for SEZs / RBI Nominated Agency Credit Days 180 Days from date of procurement 270 Days from date of procurement Type of Security Stand By Letter of
Slide 19: Focussed Expansion Strategy
Focussed Expansion Strategy Started operations from one showroom at Karol Bagh, New Delhi. Today, PCJ has 50 showrooms across 42 cities and 17 states Has consistently followed a well thought-out and considered expansion plan. Key drivers are as follows Position itself as a most trusted jewelle
Slide 20: India Online Jewellery Industry – Indicative Market Size
India Online Jewellery Industry – Indicative Market Size Annual value of India’s domestic jewellery industry is ~INR 3,000 bn (US$ 50 bn) Expected to grow @ CAGR of ~16% to reach INR 5,430 bn (US$90.5 bn) by 2018 Of this, organized market constitutes ~20-22% (regional chains contribute ~17% an
Slide 21: WearYourShine.com: PCJ’s unique Online + Offline strategy
Leveraging on the Online Jewellery industry potential - WearYourShine.com: PCJ’s unique Online + Offline strategy Buying patterns of Indian consumers are changing fast. Consumer are getting more comfortable with online purchases Online sales of precious jewellery items is also picking up, especi
Slide 22: Unique Customer Experience at PCJ
Unique Customer Experience at PCJ Best in class, transparent and customer friendly policies Exchange, Return and Life-time maintenance policies Lounge concept introduced at select stores for catering to high net-worth customers Lounge gives HNI customers adequate space and privacy. There is
Slide 23: Professional Management
Professional Management Mr. Padam Chand Mr. Manohar Lal Mr. Krishan Mr. Miyar Directors Board of Mr. RK Sharma Gupta Singla Kumar Khurana Ramanath Nayak Mr. Balram Garg Executive Director Non- Exec Independent Independent Independent Managing Director and COO Chairman Director Director Director Mr.
Slide 24: Strong Corporate Governance Practices
Strong Corporate Governance Practices Only 2 (out of total 6) directors on the Management Board are Promoters Directors 3 (of the total 6) directors on the Management Board are independent directors who are eminent personalities in their chosen field (Law, Management and Finance) Independent d
Slide 25: Typical Store Economics
Typical Store Economics Indicative workings for a Store with an area of 5,000 sq. ft. Indicative Capital Employed at the Store Target Annual Store Sales Rs. 600 mn Total Inventory Rs. 300 mn Gold: Diamond Jewellery Mix 70% : 30% Store Inventory Rs. 225 mn Gross Margins – Gold 9% – 10% Back-end Inven
Slide 26: Future Initiatives: Franchisee Model
Future Initiatives: Franchisee Model Indian retail jewellery market is fast becoming organized and preference towards organized jewellery players is growing. Past decade has witnessed the emergence of various such organized players Organized market in India today constitutes ~22% (regional chain
Slide 27: Future Initiatives: Empowering Women Entrepreneurs
Future Initiatives: Empowering Women Entrepreneurs Every Indian city has a number of women entrepreneurs working in the jewellery space We are looking to build our social selling programme to harness this entrepreneurial intellect and develop women ambassadors/ stylists who will showcase and mar
Slide 28: Future Initiatives
Future Initiatives Active work on developing a separate team to focus on jewellery marketing to HNI customers and regular buyers through home visits/ roadshows Image Consulting Image consultants being hired for lounges with a focus to help high networth individuals and regular buyers in choosi
Slide 29: Recent Industry Updates
Recent Industry Updates PC Jeweller has recently been designated as Nominated Agency by the Additional Director General of Foreign Trade (CLA), Ministry of Commerce & Industry, Department of Commerce, New Delhi This permission makes the company eligible for direct import of Precious Metals (Gold
Slide 30: Recent Industry Updates (Cont’d)
Recent Industry Updates (Cont’d) FICC and WGC Recommendation FICCI and the World Gold Council (WGC) have also recently issued a report wherein they have given recommendations to Indian policy makers with a focus is on establishing an India Gold Exchange to ensure pricing standardisation, increas
Slide 31: Annexure A: Select Showroom Images
Annexure A: Select Showroom Images Flagship Showroom at Karol Bagh, New Bengaluru, Karnataka Delhi 31
Slide 32: Annexure A: Select Showroom Images (Cont’d.)
Annexure A: Select Showroom Images (Cont’d.) Kolkatta, West Bengal Vadodara, Gujarat 32
Slide 33: Annexure A: Select Showroom Images (Cont’d.)
Annexure A: Select Showroom Images (Cont’d.) Kanpur, Uttar Pradesh Jodhpur, Rajasthan 33
Slide 34: Annexure A: Select Showroom Images (Cont’d.)
Annexure A: Select Showroom Images (Cont’d.) Rohtak, Haryana Dehradun, Uttarakhand 34
Slide 35: Annexure A: Select Showroom Images (Cont’d.)
Annexure A: Select Showroom Images (Cont’d.) Varanasi, UP Jabalpur, Madhya Pradesh 35
Slide 36: Annexure A: Select Showroom Images (Cont’d.)
Annexure A: Select Showroom Images (Cont’d.) Milestone 50th Showroom at Jaipur, Rajasthan (Feb 2015) (20,522 sq. ft.) 36
Slide 37: Annexure B: State-of-the-art manufacturing facility at Noida, UP, India
Annexure B: State-of-the-art manufacturing facility at Noida, UP, India 37
Slide 38: Annexure C: Unique Product development by PCJ - Detachable Necklaces (Flexia Collection) - Aasra
Annexure C: Unique Product development by PCJ - Detachable Necklaces (Flexia Collection) - Aasra 38
Slide 39: Necklaces (Flexia Collection) - Adira (Cont’d.)
Annexure C: Unique Product development by PCJ - Detachable Necklaces (Flexia Collection) - Adira (Cont’d.) 39
Slide 40: Necklaces (Flexia Collection) - Inaayat (Cont’d.)
Annexure C: Unique Product development by PCJ - Detachable Necklaces (Flexia Collection) - Inaayat (Cont’d.) 40
Slide 41: Necklaces (Flexia Collection) - Laavanya (Cont’d.)
Annexure C: Unique Product development by PCJ - Detachable Necklaces (Flexia Collection) - Laavanya (Cont’d.) 41
Slide 42: Necklaces (Flexia Collection) - Daira (Cont’d.)
Annexure C: Unique Product development by PCJ - Detachable Necklaces (Flexia Collection) - Daira (Cont’d.) 42
Slide 43: Necklaces (Flexia Collection) - Zohrah (Cont’d.)
Annexure C: Unique Product development by PCJ - Detachable Necklaces (Flexia Collection) - Zohrah (Cont’d.) 43
Slide 44: Thank You
Thank You Investor Contact: Mr. Sanjeev Bhatia (Chief Financial Officer) PC Jeweller Limited 2708, Bank Street, Karol Bagh, New Delhi, India Mobile: +91 – 99108 97653 Email: sanjeev.bhatia@pcjewellers.com 44