Senco Gold Limited has informed the Exchange about Investor Presentation
Ref: SEC/SE/2023-24/59 Date: 14th February, 2024
The Manager- Listing
The Manager – Listing
The National Stock Exchange of India Limited “Exchange Plaza”, Bandra – Kurla Complex, Bandra (EAST), Mumbai – 400051
BSE Limited Corporate Relationship Department Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001
NSE SYMBOL: SENCO
Dear Sir(s)/ Madam(s),
Sub: Investor's Presentation- Q3 & 9M FY24
BSE SCRIP CODE: 543936
Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, enclosed please find the Investors Presentation for the
third quarter and nine months ended 31st December, 2023 .
This
update
is
also
being
uploaded
on
the website
of
the Company
at
https://sencogoldanddiamonds.com/investor-relations
We request you to take the above on record.
Yours sincerely,
For SENCO GOLD LIMITED
Surendra Gupta Company Secretary & Compliance Officer Membership No. A20666
Enclosed: as above
SURENDRA GUPTADigitally signed by SURENDRA GUPTA Date: 2024.02.14 18:22:02 +05'30' SENCO GOLD LIMITED
BSE – 543936 NSE - SENCO Bloomberg – SENCO:IN
14TH February 2024
India’s 2nd Most Trusted & 2nd Most Desired Jewellery Brand*
* As per TRA report 2023
Investor Presentation Q3 & 9M FY24
1
1
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 changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations.
The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own research/investigation and analysis of the Company and the data set forth in this information. The Company makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company.
While we have made every attempt to ensure that the information contained in this presentation has been obtained from reliable source, the Company is not responsible for any errors or omissions, or for the results from the use of this information. All information in this presentation is provided on "as is" basis with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information and without warranty of any kind, express or implies including but not limited to warranties of performance for a particular purpose. In no event will the Company its Directors, legal representatives, agents or employees thereof be liable to anyone for any decision made or action taken by relying on data/information in this Presentation.
All financial and business indicators/KPIs/ratios are in line with statutory reporting and industry practices respectively unless otherwise specified
2
Index
01
02
03
04
Company Overview (4-12)
Investment Highlights (13-34)
Business Strategies (35-37)
Financial Information (38-46)
3
3
01 Company Overview
4
Guiding Pillars That Define Senco Gold & Diamonds
Vision
Trust and Transparency
India’s most trusted jewellery brand and a leading accessory & lifestyle partner
Best Business Practices and Processes
Mission
• Delight our valuable customers and fulfil their
lifestyle needs and desires
• Offer localized and creative designs, in line with
global trends and varied choices
• Delivering quality products at reasonable prices •
Serve the customer digitally as per their needs and convenience
• Promote the Karigari of India across the Globe • Promote a culture of learning and development
amongst employees
• Take care of
interest of all stakeholders
including community with sustainable growth.
Purity and Quality
Value Systems
Integrity and Customer Centricity
Innovation and Creativity
5
5
Serving Indian Jewellery Industry since 4 generations
Shri Maran Chand Sen
Son of a school principal, used to work at a Jewellery store in Dacca (in Undivided India, now Bangladesh). By the turn of fate, he started his own jewelry business in Dhaka, Tantibazar during 1938; and later moved to Area) Kolkata (Chitpur during partition in 1947. Shri Maran Chand Sen had 5 sons joint family business and was credited for starting brand name “Senco”
in the
Shri Prabhat Chandra Sen
Shri Shaankar Sen (Founder Chairman)
Son of Shri Maran Chand Sen inherited a small cloth store in Kolkata (Bow Bazaar) in 1968 as part of family settlement; and he started jewellery business from the scratch at the age of 42. He expanded the business by 2 at more and Shyambazar Gariahat (1972)
showrooms (1970)
Son of Shri Prabhat Chandra Sen left his post graduate studies and joined his father’s business in 1979. As a visionary Business Leader, he led the business to high growth momentum with over 100 showrooms. He innovated and established in Franchisee Senco PE investment by SAIF partner. He was also associated with various Industry forum in Leadership position.
Business also
and
Shri Suvankar Sen
Son of Shri Shaankar Sen joined the family business in 2007 after completing his PGDBM from IMT Ghaziabad and has been part of the growth journey of the brand. He has been instrumental in driving technology excellence and modern management technique. He has also led Equity Private 2nd Investment by OJIF and listing of the Company at NSE & BSE in July, 2023
6
Over eight decades of journey
The Humble Beginning Shri M C Sen started the jewellery business in Dhaka and shifted to Kolkata during partition. His son Shri P C Sen inherited the family business in 1968.
FRANCHISEE MODEL Opened first franchisee showroom in Durgapur, West Bengal.
2010
2012
Adopted franchisee route to expand outside West Bengal by opening first showroom in Assam. Opened first showroom in Jharkhand under franchisee model.
Entered southern region by opening showroom in Bangalore. Introduced Everlite brand. Total number of showrooms cross 80. Revenue crossed INR 20 bn.
2016
2017
2018
1938 to 1994
2000
2004 2007
2010 2012
2013 2015
2016 2018
2019 2023
Mr. Shaankar sen joined family business in 1979 and grew the business from three showrooms to over 100 showrooms by 2020
SENCO GOLD PRIVATE LIMITED Company Incorporated by merging existing proprietary and partnership.
2004
2007
LARGEST SHOWROOM Largest showroom with an area of c. 8,000 sq. ft. launched in Kolkata Mr. Suvankar Sen joined the family business as 4th generation entrepreneur after competing his studies in 2007
INVESTMENT FROM MARQUEE PE INVESTOR Entered northern region by opening showroom in Delhi. 2014 Revenue crossed INR 10 bn 2015 Raises INR 800 Mn equity from SAIF Partners India IV limited. (now Elevation Capital) Entered Bihar, Maharashtra & Uttar Pradesh
FY21
Revenue: INR 26,603.79 Mn Company Operated Showrooms: 60 Franchisee Operated Showrooms: 52
FY22
FY23
Revenue: INR 35,346.41 Mn Company Operated Showrooms: 70 Franchisee Operated Showrooms: 57
Revenue: INR 40,774.04 Mn Company Operated Showrooms: 75 Franchisee Operated Showrooms: 61
2nd MOST TRUSTED BRAND
2019 Received the Best Promising
Gems and Jewellery Brand award.
2020 Crossed 100 showroom mark 2022 Raises INR 750 Mn equity
from OIJIF II 2023 Listed on NSE & BSE
Launched 136 showrooms Awarded 2nd most trusted jewellery brand by TRA
9M FY24
Revenue: INR 41,041.59 Mn Company Operated Showrooms: 90 Franchisee Operated Showrooms: 65
7
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) 2014 and Oman India Joint Investment Fund II-2022
BIS Hallmarking of Gold Jewellery since 2012
Awards: Jeweller of the month By IBJA’s Jury Committee Best Brand in Jewellery Category by The Economic Times in 2021 2nd Most Trusted Jewellery Brand by TRA’s Brand Trust Report 2023 2nd Most Desired Jewellery Brand in India by TRA Excellence in Design Innovation in Gold & Diamonds by Jagran Achievers 2023
Over 2 million Loyal customers
SGL and GEMEX certifications, hallmarked & HUID Jewelleries and attractive replacement and exchange policies
Reputed brand ambassadors like Kiara Advani, Sourav Ganguly, Vidya Balan etc.
Meticulous craftsmanship of our 170+ Karigars
8
Experienced Board of Directors
RANJANA SEN Chairperson and Whole Time Director ▪ Over 29 years of experience in the jewellery industry ▪ Associated with our Company since the incorporation of the
Company
▪ Holds a bachelors degree in arts from the University of Calcutta
SUVANKAR SEN Managing Director and CEO ▪ 18+ years of experience in the jewellery industry ▪ Bsc.(Hons) in economics from St Xavier college and PGDM from
IMT, Ghaziabad
▪ Committee and Board member of GJEPC, ICC gems and jewellery
panel and ASSOCHEM bullion and jewellery council
JOITA SEN Whole Time Director & Head Marketing ▪ Over 14 years of experience in the designing and marketing ▪ Associated with the Company since 2009 ▪ Holds degree in master’s in arts from Presidency College,
University of Calcutta
VIVEK KUMAR MATHUR Non-Executive Nominee Director ▪ Nominee of SAIF Partners ▪ Previously served as the executive director for customer
service at Dell International Services Private Limited and is currently a partner at Light Ray Advisors LLP
▪ MBA from the Graduate College of the University of Iowa
BHASKAR SEN Independent Director ▪ Experience of more than four decades in the banking sector ▪ Previously associated with Bandhan Bank Limited as an
independent director, United Bank of India as the Chairman and Managing Director, and at Dena Bank as an executive director
SHANKAR PRASAD HALDER Independent Director ▪ Over 30 years of experience in both wire line as well as wireless
mobile and telecommunication service providers
▪ Presently the founder and CEO of Pinnacle Digital Analytics Private
Limited
▪ Previously worked with Escotel Mobile and Bharti Airtel
KUMAR SHANKAR DATTA Independent Director
▪ Over 30 years of experience in finance, functional and project
management in different corporate organisations
▪ Chartered Accountant and Cost and Works Accountant ▪ Ex-CFO of KPMG (East)
SUMAN VARMA Independent Director ▪ An advertising and marketing professional ▪ Earlier associated with J Walter Thompson (India), Rediffusion – Y & R
(India) and Hamdard Laboratories (India)
▪ Holds a master’s degree in comparative literature from the Jadavpur
University
9
Senco Snapshot
India’s 2nd Most Trusted & 2nd Most Desired Jewellery Brand
Rich heritage and legacy
of over Eight decades
Among the most trusted brand
ET Trusted Brands 2021 2nd Most Trusted Jewellery Brand in India by TRA 2023 2nd Most Desired Jewellery Brand in India by TRA 2023
Largest organized jewellery retail player in the eastern region of India
PAN India Presence with 155 showrooms
Successful Asset Light Franchise model
65 Franchisee showrooms with 49 of them in Tier II Cities
Bouquet of Brands
with powerful brands like Everlite, Gossip, Aham, Sennes etc. targeting across all segments and GenZ also
Light Weight Jewellery
1,30,000+ Gold jewellery designs
72,000+ Diamond jewellery designs
Omni-channel experience
Showrooms , Websites, ‘MySenco’ app, Digi Gold, Digi Silver app Sencoverse (Metaverse)
In-house modern and tech enabled manufacturing facilities Two factories near Kolkata, West Bengal
Meticulous craftsmanship of 170+ Karigars
10
Key Highlights
80+ Years
155 Showrooms
65 Franchisee Showrooms
105 Towns & Cities
2,413+ Team Strength
Trust & Legacy
19%
Pan India Presence
14.2%
Asset light Franchisee Model
19%
Presence across Metro, Tier-i, Tier-ii & iii
11.6%
2 Mn +
3yrs Revenue CAGR
ROCE FY 23
Return on Equity (RoE) FY 23
Stud ratio Dec 23
Loyal Customers
11
Awards & Recognitions
India’s 2nd Most Trusted Brand by TRA Research Pvt. Ltd.
ET Inspiring Women Leaders 2023 By ET Women's Conclave 2023
Excellence in Design Innovation in Gold & Diamond By Jagran Achiever Awards 2023
New Powerful Women Entrepreneur Award By Jagran Achiever Awards 2023
The Rising Star, 40 Under 40 Award By IIJS Premiere 2023 and Gem & Jewellery Export Promotion Council
The Young Business leader by Sanmarg
Jeweller of the month By IBJA’s Jury Committee
12
02 Investment Highlights
13
India’s Gems and Jewellery market – TAM* of INR 4.7 Trillion
India’s Gem and Jewellery sector growing at 14% CAGR
Structural growth drivers act as tailwind for growth of organized sector
(INR Bn)
Changing Consumer Preference
Superior Organisation Capabilities
Regulatory Changes
~2,300
24%
76%
FY16
~4,700
34%
66%
FY23
Gold jewellery
Bars & Coins
Organised players rapidly gaining market share and outperforming industry
85-90%
10-15%
FY01
62-67%
33-38%
53-58%
42-47%
FY22
FY26P
Organised
Unorganised
Source: CRISIL, Note: *TAM = Total Addressable Market
▪ Implementation of GST ▪ Compulsory hallmarking
of gold jewellery
▪ Increasing demand for diamond-studded and light weight jewellery ▪ Better customer service
and policies
▪ Widespread
presence with own stores as well as franchisee stores
▪ Adopting online formats
as a sales channel
▪ Focus on quality and
trust ▪ Launch
of
new
collections and brands
▪ Investments
in brand building creating brand recall value
Daily wear light weight jewellery and fashion jewellery have
40% to 50% market share
Bridal jewellery constitutes large share of the demand
Gold demand by jewellery type (%), fiscal 2022
50-55% Bridal
35-40% Daily wear
5-10% Fashion
14
India’s Gems and Jewellery market – Rural Bharat leads demand
Gold jewellery demand and ownership is higher in rural India and rises with income levels
Rising share of organised retail in jewellery to continue
India is the 2nd largest gold market in the world
3rd Highest component of retail consumption
70% Share of gold jewellery out of the total gold demand
40%
60%
Urban India
Rural India
95
94
68
32
60
40
5
2000
6
2007
2020
2025
Organised (%)
Unorganised (%)
Source: Company annual reports; WGC; Industry; CRISIL, MI&A Research, Technopak
15
Emerging trends accelerating market share of organized jewellers
Changing Consumer Trends
Evolution of Consumer Preferences: Market Transparency, Product Purity, and Quality Benchmark
Brand Awareness: Growing momentum driven by Marketing Strategies of Organized Retailers
Service Excellence: Extended Service Focus: Vital for Long-Term Jewellery Investment
Regulatory Developments as tailwind for growth
Demonetization: Transparency Enhanced Through Cashless Transactions
GST: Implementing Tax Compliance Measures
Mandatory PAN: For transactions over ₹2,00,000: Buyer ID required
Rural policy: Given rural India's deep connection to gold culture
Hallmarking of gold jewellery with HUID marking: Mandatory Starting from the year 2021 Mandatory HUID from 2023
Anti Money Laundering (AML) applicability CBIC designated as regulator for jewellery industry
BIS Hallmarking Preceding Regulatory Mandate
Clear Pricing Enhancing Customer Transparency
High Quality Product Gold Jewellery Purity Confirmation via Karatmeters
Certification Of Product Purity assurance, lifetime maintenance and guarantee of life-time buy back and exchange specially diamond & Polki
After-sales Service Employee Training for Enhanced Customer Satisfaction and Loyalty
Transparency in Gold purity Valuation and Purity Verification in Customer's Presence by Gold testing machine
16
Pan-India presence & largest Retail Player in Eastern Region
155 Showrooms (19 showrooms current year 43 showrooms since Apr-20)
Region
Own Franchisee Total
East ( including WB)
- West Bengal incl Kolkata
-
North
Kolkata
Central (including MPCG)
West
South
Total- 31st Dec, 2023
Total- 30 Sep, 2023
Total – 31 Mar, 2023
53
41
21
21
4
7
5
90
83
75
64
49
0
1
0
0
0
65
62
61
117
90
21
22
4
7
5
155
145
136
90
Company showrooms
155
Showrooms
65
Franchisee showrooms
Large Distribution Network
Geographically Diversified Presence
16
105
States
Towns & Cities
Presence in Tier 3 and 4 Cities through Franchisee Route
Company Showrooms
40
37
8
5
Franchisee Showrooms
10
11
44
90
65
Tier classification has been revised based upon potential ,population and inter se positioning
17
Metro & Tier 1Tier 2Tier 3Tier 4 & BelowTotal Customized Showroom formats catering to all segments
Classic
D’Signia
Everlite
Modern
House of Senco
Sennes
Traditional Customer Base in existing geography
Premium and HNI
Younger generation & millennials
Upcoming Geographies
Super Luxury
Lifestyle and accessories
~INR 63,700
~INR 73,700
~INR 34,900
~INR 72,400
~INR 48,300
~INR 33,500
126
13
3
11
1
1
Target Audience
Average Ticket Value (ATV)*
₹
For 9M FY 24
# Showrooms 155
As of December 2023
18
Omni-channel Retail Network
Phygital Model
OMNI CHANNEL
HYPERLOCAL
155+ Showrooms Over ~90% of Own showrooms are leased
1
Fulfillmen t
Hub & Spoke Model
App
Order Processing
2
3
‘MySenco’ app with almost 3,05,000+ downloads
Websites & Apps www.sencogoldanddiamonds.com mydigigold.com; mydigisilver.com www.mygossip.in www.everlite.in
4
E-commerce Aggregators
Customers
Websit e
Video/ Tele-call
Customer location
E-commerce
Walk-in / Order dispatch
Omni-Channel Retail Strategy Allows our Customers to Interact with us – Whenever & However they Find Most Convenient
19
Successful “asset-light” franchise model
Strong distribution network leveraging asset light franchisee model – evaluating both ‘franchisee owned, franchisee operated’ models
Operational leverage of franchisee model ▪ Leverage Hub and spoke model to penetrate into tier-III and
tier-IV towns and cities as part of our Bharat strategy.
▪ Startup Support including store design, staff hiring and training and market research, sales technique, product knowledge and training
▪ Franchisee makes capital investment in the form of store capex and upfront purchase of jewellery from Senco.(No capital Investment by Senco)
Senco has added (net) 43 showrooms from FY21 till date
# of Showrooms
112
52
60
FY21
127
57
70
136
61
75
155
65
90
FY22
Company
FY23
9M FY24
Franchisee
▪ Marketing and ERP support at marginal annual fees
About 33% revenue from Franchisee showrooms
▪ Seasonal Credit Support and support in availing Bank
Finance. Continuous engagement and training
Company
Franchisee
% 5 3
% 2 6
% 5 3
% 2 6
% 1 3
% 5 6
% 2 3
% 4 6
Higher inventory turnover at a franchisee store leads to higher ROE for Senco Over 90% of showrooms are in FOFO model
FY21
FY22
FY23
9M FY24
Proportion to revenue from operations (without including franchisee fees and discount allowed)
20
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 strategic locational advantages with access to expert Jewellery Karigars
Stringent quality control procedures to ensure standardised quality and purity of the products
The manufacturing of our jewellery is carried out by over 170 skilled Karigars in and around Kolkata, West Bengal
Bengal karigars are renowned for their exquisite and artistic work
The workshops of Karigars associated with us are subject to periodic audits to ensure compliance with quality and security requirements
Regular Training and workshops are held to enhance engagement on EHS, Design and Technology
21
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
Our strategy and experience in selling light weight jewellery has enabled us to reach out to wider customer base across age groups
Current portfolio of light weight, affordable jewellery brands
72,000+ designs for diamond jewellery
Initiatives that has enabled us to have strong foothold
Online presence via own websites, mobile app and ecommerce tie ups
Offering jewellery purchase schemes with monthly installments
Starting from INR 2,000
Key drivers for light weight, affordable jewellery
Minimum Ticket Size
Target customers
Product offerings
Upwardly mobile (GenZ / Millennial)
Gold ,diamond & Platinum jewellery
Silver and costume jewellery
Showroom formats include Classic, D’Signia, Everlite , Modern, House of Senco
Exclusive Gossip and Everlite counters
# showrooms
Increasing number of working women & their earnings
Exposure to global designs
Rising number of younger generation
Jewellery preferred as adornment as well as investments
Preferences shifting from heavy jewellery to light weight contemporary designs
Suitable for daily use/ office work
22
Glimpses of New Collections
AHAM 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 the modern man who seeks distinction
LOTUS COLLECTION
the
in Senco's
logo, thoughtfully Its muse integrating and swan auspicious lotus motifs. This harmonious fusion perfectly embodies the serene and blessed essence of Goddess Lakshmi.
graceful
SIGNATURE COLLECTION
23
Glimpses of New Collections
RAJWADA COLLECTION
Perfect of contemporary elegance and eternal beauty
traditional
blend
opulence,
KIDS COLLECTION Kids Collection is crafted in 14k gold, adorned with delicate diamonds, and painted in pastel enamels, these small earrings, charms bracelets, and pendants capture the essence of childhood.
Exquisite pieces for all occasions, from contemporary light weight to the royal traditional designs
SHAGUN COLLECTION
24
Campaign of New Collections
25
Campaign of New Collections
Aham Campaign
Digital Campaign
26
Campaign of Rajwada Collections
27
Campaign of Gossip Collections
28
Driving Pan India Brand Loyalty
Ishaa Saha
Madhumita Sarcar
Ditipriya Roy
Vidya Balan
Regional Brand Ambassadors in Eastern India Market
Kiara Advani
Sourav Ganguly
Jaya Ahsan
Marketing & Promotional Exp. 9M FY24 Rs 716 Mn
Digital Focus
% of Revenue 9M FY 24 – 1.7% Last 3ys avg. Below 2.0%
29
Wide Product Range at attractive price points
Bouquet of Brands (highlighted key brands)
Light Weight, Affordable Jewellery
Exclusive Range of Collections
Lightweight Jewellery
Silver and Fashion Jewellery
Bridal Jewellery
Solitaire Diamonds
Men’s Jewellery
With active Catalogue (across brands) of
1,30,000+ designs for gold jewellery
72,000+ designs for diamond jewellery
30
Digital Focus and Integrated Systems
Standard SQL server reporting services (“SSRS”)
08
01
Customer 3600 insights enables targeted marketing
Periodic re-shuffling of stock inter and intra state
07
06
Continuing to use an analytics-based program for forecasting, planning and efficiency
05
04
02
03
ERP driven organization since two decades integrated with all critical business operations giving real time control and visibility
Leveraging latest technology like augmented reality (AR) through Magic Mirror and virtual try on of ornaments to be ahead on growth curve
Digi Gold – A platform to buy/sell gold in any quantity
Digi Silver- First ever silver holding platform
Virtual connectivity across all our showrooms and offices
31
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 showcased in stunning virtual displays.
• Advanced technology enables virtual try-ons for interactive shopping.
• Additional features include expert advice, customization, and virtual consultations, catering to tech-savvy customers‘ preferences.
Get ready to step into a new era of immersive jewellery shopping with the upcoming launch.
32
Robust systems and procedures helps seamless collaboration and growth
Customer
Manufacturing
Strong technology focus to maintain greater control over business operations
Sales & Retailing
Sourcing & Procurement
▪ Integrated Systems
Finance and Human Recourses
Planning & Monitoring
▪ Data Analysis & Forecasting
▪ Institutionalized Process
Procurement Advantage
Manufacturing
Efficient Inventory Management
Quality Control
▪ De-risking the business from gold price
fluctuations
▪ Most of the gold sourced by way of gold metal loan facilities offered by bullion banks
▪ Procure old gold from our customers ▪ Strong pipeline of trusted Diamond
jewellery vendors for several decades
▪ Asset light model of manufacturing
through karigar with strategic locational advantages
▪ The manufacturing of jewellery is carried out either by the skilled Karigars in West Bengal for hand made products or by organised manufacturers in Mumbai, Maharashtra or Kerala or Rajkot, Gujarat or Coimbatore, Tamil Nadu or in-house at our manufacturing facility at Ankurhati, Howrah
▪ Workshops of Karigars are subject to
periodic audits
▪ Use of modern technologies such as 3D printing, CAD driven designing and laser cutting
▪ Controlled and monitored through
ERP
▪ Hallmarking gold jewellery from 2012 ▪ SGL and GEMEX certifications for
▪ Strong control and monitoring of
diamond jewellery
inventory by series of audits, physical verification and CCTV monitoring
▪ Jewelleries shuffling among
showrooms to increase inventory turnover
▪ Minimal accumulation of slow moving
stock driven by data analysis and report
▪ Future inventory forecasts
▪ Stringent two quality control
checkpoints for inventory produced by Karigars
▪ Usage of XRF machines at showrooms
for quality check at point of sales
▪ Internal quality control team
comprises 33 experts and trained staff (Dec 31, 2023)
33
Sennes
Products • Women’s leather Bags and wallets • Men’s Bags • •
Laptop bags Backpacks
• Men’s wallets
• • • •
Travel/Toilet Kit Card Cases Spectacle cases Tab Cover with Pouch & Key Chains.
Range of products • •
Small leather goods: INR 1,000 to INR 7,500 Leather Bags: INR 9,000 to INR 30,000
Presence* • •
9 SIS formats (only leather bags) 2 MBOs (Lajpat Nagar & Elante Mall Chandigarh)
Geographical presence • •
Phase 1 - Present in the East and North India Phase 2 - Aim for Pan-India presence
*SIS – Shop in Shop, MBO – Multi Brand Outlets, EBO – Exclusive Brand Outlets
34
03 Business Strategies
35
Strategies to drive Future Growth
1
Passionately Drive sustainable profitable Growth on Pan India basis and consolidating our market leadership in the East
2
Elevate Hyperlocal Strategy across all customer facing Gradient like Products, Designs, Marketing , Communication etc
3
Customer Centricity and Delight as Fulcrum of Operating Strategy
Elevating Capacity , Igniting Excellence By Talent Management, Technology driven, ESG commitment & Risk Management
4
5
Constantly Sharpen Profitability and Cash Flows spectrum by Enhancing EBITDA and Free Cash Flows
▪ Accelerated Showroom Expansion on pan India basis with modern formats . ▪ Sustain, Strengthen & Leverage Franchisee Model for growth in Tier 3 & 4 Towns. ▪ Asset Sweating and Revenue CAGR with high Same Store Sales Growth (SSSG) ▪ Upsell high margin lifestyle products & Accessories such as Leather products.
▪ Continuously Innovate on Designs catering to local taste and fashions ▪ Promote Light Weight jewellery targeting millennials and Gen Z with brands like
Sennes, Everlite, Gossip etc by Omni channel strategy.
▪ National and Regional Brand Ambassadors and Influencers to bond with market
▪ Remain in the Top League as “ Most Trusted” and “ Most Desired” Jewellery brand. ▪ Superlative In-Store Experience and after sales service to enhance loyalty ▪ Harness data science and CRM to forecast buying trend and drive ASP and ATV ▪ Attract millennial and “brides of future” through digital marketing and Social media ▪ Competitive Pricing, Lifetime relationship, and Hallmarked & certified products
▪ Continuously enhance Capacity to scale up on Growth Quotient. ▪ Extensive galvanization of Technology across all functions for sustainable growth ▪ Highest commitment towards Corporate Governance , Ethics and Transparency ▪ Constant Risk Management , Sustainable growth and ESG commitment .
▪ Enhance sale of higher margin jewelleries, Diamond, Polki , Temple , Antique. ▪ Optimize Inventory Turnover to enhance Store and Space productivity by Hub
and Spoke Model
▪ Higher proportion of Gold Metal Loan for borrowing cost and robust hedging. ▪ Generate robust Free Cash Flow for future expansion & working Capital need.
36
Key Growth Drivers
Showroom expansion Pan India
Revenue Growth
Stud Ratio
INR Mn unless stated otherwise
Company
Franchisee
112
52
60
127
57
70
136
61
75
155
65
90
Growth
SSSG
33%
27%
10%
7%
15%
10%
CAGR 19%
26%
17%
10%
11%
9%
8%
FY21
FY22
FY23
Dec-23
FY21
fY22
FY23
9M FY24
FY21
FY22
FY23
9M FY24
Average Sale Price (ASP)
Average Transaction Value (ATV)
Inventory Days*
41,700
64,400
148
146
2.5x
2.5x
36,500
36,200
36,600
57,300
56,900
57,900
147
2.5x
139
2.6x
126
2.9x
FY21
FY22
FY23
9M FY24
FY21
FY22
FY23
9M FY24
ASP and ATV have been rounded off to nearest hundred
FY20
FY21
FY22
FY23
9M FY24
*Inventory days= Avg Inventory / per day sales
37
04 Financial Information
38
Management Comment on Q3 & 9M performance
Mr. Suvankar Sen MD & CEO
“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 out 19 showrooms including 4 Franchisee Showrooms. The key offers during the Q3 were Dhanteras Offer, Puja Offers -Flexi Gold Offer and Wedding Offers, which helped in enhancing footfall and catalyzing the sales in line with market sentiments. Stable gold prices throughout Q3 also helped in higher sales in Q3 with YTD 9% volume growth in Gold and ~ 27% volume growth in Diamond. Dhanteras’ period sales contributed Rs 920 Cr which is about 55% of Q3 Revenue in line with last year trend. We have also achieved an almost 40% increase in footfall and 6% increase in Invoices, which have contributed to this growth. The old Gold Exchange was 33% of total sales indicating shift from non-organized to organized and Senco as the preferred Jeweller. The stud ratio also further improved from 11.2% to 11.6%. We have also become the first Indian jewellery brand to join Open Network for Digital Commerce (ONDC) Network and now our catalogue will be available across various shopping apps within the expanding ONDC Network, facilitating smooth and efficient transactions.” In our constant endeavors to innovate and create new designs for our customers we have launched a premium wedding range for 2023- 24 wedding season- Vivaha & Rajwada Collections in Gold and diamonds. Shagun collection for Dhanteras festive, Solitaires under perfect love hearts and arrow cut diamonds and SiyaRam Collection as a perfect tribute to the personification of love, peace and perfection amongst Ram, Sita, Lakshman, and Hanuman to celebrate the inauguration of Ram Mandir in Ayodhya.”
“Our consistent performance demonstrates our robust execution capability, Operational Prudence and Financial rigour. We achieved the highest ever Q3 Revenue of Rs 1,652 Cr recording QOQ growth of 43% and YoY growth of 23%. For the 9 month period, we achieved top line of Rs 4,104 Cr surpassing FY 23 Topline and achieving best in class YoY growth of 26%. This growth has been led by Same Stores Sales (SSS) growth of 17% and volume growth in Gold and Diamond both.
Our EBITDA Margin for Q3 improved substantially to 11.0% in line with Q3, FY 23 ; and for the 9 Month period we achieved a stable EBIDTA margin of 7.0% vis a vis 7.7% last year same period. Our inventory turnover also remained at 152 days (2.4x) which is amongst the best in Industry. We continue to focus on enhancing the GML % (presently 60%) in our total bank borrowing to reduce our blended borrowing cost which is presently is about 6%. The new showroom launches of 18 so far have also led to investment in working capital out of our internal accruals, IPO funds and incremental borrowing. We thus remain dedicated to delivering value to our stakeholders.
Mr. Sanjay Banka CFO
39
9M and Q3, FY2024 performance
9 Months
3 Months
Revenue from operations (Rs. mn)
Revenue from operations (Rs. mn)
32,635
41,042
13,396
16,522
9M FY23
9M FY24
Q3 FY23
Q3 FY24
Others
Silver and platinum Jewellery
Diamond & precious/ semi-precious stones
Gold jewellery
Others
Silver and platinum Jewellery
Diamond & precious/ semi-precious stones
Gold jewellery
EBITDA (Rs. mn)
EBITDA (Rs. mn)
2,499
2,878
1,627
1,811
9M FY23
9M FY24
Q3 FY23
Q3 FY24
PAT (Rs. mn)
1,325
1,488
PAT (Rs. mn)
1093
1033
• Q3 FY 24 revenue growth of 24% includes dhanteras sales of Rs 920cr which is almost 55% of Q3 revenue
• 9m FY24 YOY revenue growth of 26% is mainly on account of higher SSSG of 17%, Gold price increase of 15% ,higher stud ratio and 19+ new store.
• Q3 FY 24 EBITDA margin substantially improves to 11% vis-à-vis 4.3% in H1 due to less volatility, higher wedding and Dhanteras sales and continued optimum hedging
• 9m FY 24 EBITDA margin improve to 7% range inline with earlier guidance and indicating 15% YoY growth
• Q3 FY 24 PAT stood at Rs 109.3cr achieving
5.8% YoY growth
• 9m FY 24 PAT grow to Rs 148.8cr indicating
12.4% YoY growth
9M FY23
9M FY24
Q3 FY23
Q3 FY24
40
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
Employee Cost
Other Expenses
EBITDA
EBITDA Margin (%)
Other Income
Depreciation and amortisation expenses
Finance costs
747.67
933.8
2,021.50
2,454.68
246.98
707.39
324.74
947.63
2,771.84
3,166.22
1,627.49
1,811.02
7.8%
127.69
421.15
708.79
7.8%
311.36
455.53
860.53
12.1%
96.44
115.73
227.19
11.0%
89.12
158.48
282.65
Profit before tax (PBT)
1,769.59
2,161.52
1,381.01
1,459.01
Total Tax Expenses
478.57
576.73
347.51
365.81
Profit/(Loss) for the Period
1,291.02
1,584.79
1,033.50
1,093.20
24.3%
31.5%
34%
11.3%
-7.6%
36.9%
24.4%
5.6%
5.3%
5.8%
10,111.18
27,614.46
34,971.49
253.20
706.37
394.82
3.4%
110.34
132.51
233.58
139.07
19.59
654.12
831.88
1,867.13
2,360.40
2,499.00
2,877.82
7.7%
237.56
315.14
615.31
7.0%
293.99
417.23
782.99
1,806.10
1,971.59
481.58
483.28
119.48
1,324.52
1,488.31
PAT Margins (%)
3.65%
3.89%
7.71%
6.62%
1.04%
4.06%
3.63%
Note: Cost of good sold includes purchase of stock in trade and Changes in inventories of finished goods and stock-in-trade.
41
Balance Sheet (Consolidated)
Particulars (INR Mn)
EQUITY AND LIABILITIES
Equity
Total Equity
Non-current Liabilities
Borrowings
Lease Liabilities
Provisions
Other non-current liabilities
As at
Mar-22
As at
Mar-23
As at
Sep-23
Particulars (INR Mn)
ASSETS
Non-current assets
As at
Mar-22
As at
Mar-23
As at
Sep-23
7,259.67
9,455.20
12,352.07
Property, plant and equipment
3.95
14.26
1,451.03
1,884.02
0.73
8.50
6.32
251.38
12.43
2,095.7
31.56
8.44
Capital work-in-progress
Right of use assets
Other intangible assets
Other financial assets
Other non-current assets
691.00
65.14
847.02
130.64
937.66
33.02
1,516.20
1,926.70
2,156.46
24.59
166.78
524.42
22.95
560.69
555.17
28.24
1,095.62
693.01
Total non-current liabilities
1,464.21
2,155.98
2,148.13
Total non-current assets
2,988.13
4,043.17
4,944.01
Current liabilities
Borrowings
Lease Liabilities
Trade Payables
Other Financial Liabilities
Current tax liabilities (net)
8,625.72
11,757.48
11,358.25
178.61
213.51
1,174.23
1,444.59
335.69
138.51
702.31
155.05
210.93
2,352.21
236.89
65.51
Other Current Liabilities
1,825.21
3,169.07
3,128.42
Total Current Liabilities
12,277.97
17,442.01
17,352.21
Current Assets
Inventories
Trade Receivables
Cash and Cash Equivalents
Bank Balances & FDs
Other Current Assets
Total Current Assets
Total Equity and Liabilities
21,001.85
29,053.19
31,852.41
Total Assets
13,912.45
18,854.57
20,612.98
393.98
95.44
2,692.69
919.16
454.22
94.83
4,280.90
1,325.50
670.14
129.66
4,159.91
1,335.71
18,013.72
25,010.02
2,6908.40
21,001.85
29,053.19
31,852.41
42
Cash Flow Statement (Consolidated)
Particulars (INR Mn)
Cash Flow from operating activities Profit/(loss) before Tax and Exceptional Items Adjustments for: Depreciation and Amortisation Expense Finance Costs Interest income and other adjustments Operating Profit before Working Capital Changes Working Capital Adjustments (Increase) / Decrease in Inventories (Increase) / Decrease in Trade Receivables
Increase) / Decrease in Financial Assets and other Current and Non-Current Assets
Increase (Decrease) in Financial Liabilities & Other Current and Non-Current Liabilities
Cash Generated from Operations Income Taxes Paid (Net of Refund) Net Cash Generated by Operating Activities Cash Flow from Investing activities Net Cash used in Investing Activities Cash Flow from Financing activities Proceeds from issue of equity shares Dividends paid Net Movement of Long-term Borrowings and other Borrowings (net) Finance Cost Net Cash (used in) / Generated by Financing Activities Net Increase/(decrease) in cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Year Cash and Cash Equivalents at the end of the Year
FY22
FY23
H1 FY23
H1 FY24
1,769.59
2,161.52
421.15 -71.50 692.18 2,811.42
-3,519.02 -115.03
-194.79
706.19
-311.23 -387.63 -698.86
455.53 -164.45 849.03 3,301.63
-4,942.12 -60.98
-599.57
2,131.75
-169.29 -591.74 -761.03
-1,570.94
-1,980.30
- -54.72 3,039.29 -704.46 2,280.11 10.31 85.13 95.44
750.00 -114.24 2,937.75 -832.79 2,740.72 -0.61 95.44 94.83
430.16
199.37 389.38 -65.79 953.12
-3,365.20 -137.50
-331.30
2,177.37
-703.51 -278.04 -981.55
-261.11
750.00 -96.41 906.44 -288.88 1,271.15 28.49 95.44 123.93
513.63
258.02 499.95 -141.62 1,129.98
-1,758.38 -211.68
-455.29
236.55
-1,058.82 -361.73 -1,420.55
-6.06
2,510.99 -15.38 -665.09 -369.08 1,461.44 34.83 94.83 129.66
43
Key Financial Metrices
Gold Sourcing
Gold Metal Loan (GML) as % of total Borrowings
Blended Borrowing Cost per annum
INR Mn unless stated otherwise
45%
49%
49%
22%
16%
17%
27%
22%
28%
21%
50%
50%
54%
46%
60%
40%
1%
2%
0.1%
0.2%
0.1%
9.3%
6.6%
9.2%
6.0%
9.6%
6.1%
3.5%
3.3%
3.2%
FY22
GML/Bank
FY23
9MFY24
Old Jewellery exchange
FY22
FY23
9MFY24
FY22
FY23
9MFY24
trading (Readymade)
Bullion Dealers
GML
Cash Credit
Others
Significant part of Gold Sourcing is done from Consortium Bankers(~49%) and balance by Old Jewellery Exchange(~ 29%), Trading Purchase(~21%) etc.
GML borrowing as % of Total Borrowing has been consistently enhanced to ~60% leading to working capital efficiency and lower ROI
GML
Cash Credit
Blended
Average Rate of Interest ( ROI) paid to consortium bankers has been range bound at 6% and marginally increased in H1 by 10 basis points, primarily due to lower cost of GML
Finance Cost*
Working Capital Borrowings
Receivable & Payable Days
666
501
518
709
642
861
782
579
165
FY21
190
219
203
FY22
FY23
9MFY24
Actual Finance Cost
Interest on lease liabilities
Reported Finance Cost
IND AS reported finance cost contains impact of lease accounting and usually higher.9m IND AS finance cost is Rs 782mn while actual Finance cost for the period is Rs 579mn.
382
152
811
GML
CC WCDL
15
4
11
3
17
4
FY21
FY22
Receivables Days
Payable Days
FY23
The total Bank Borrowing as on 31st December, 23 was 13,47cr
Receivable and Payable are in control and inline with growing business
44
Five years successful track record
Revenue from operations
Operational margins
Profit After Tax
CAGR
19%
40,774
41,042
35,346
24,203
26,604
EBITDA (%)
Gross Margins (%)
Gross margins is a function of franchisee gross margins also
17.5%
9.3%
14.1%
7.1%
15.7%
16.1%
8.2%
8.5%
14.8%
7.0%
1,585
1,488
1,291
909
615
INR Mn unless stated otherwise
FY20
FY21
FY22
FY23
9M FY24
FY20
FY21
FY22
FY23
9M FY24
FY20
FY21
FY22
FY23
9M FY24
Net Worth and Debt-Equity Ratio
D/E^
1.0x
0.9x
1.2x
1.2x
Total Equity/ Net worth
5,518
6,026
9,445
7,260
Return ratios
RoCE (%)
RoE (%)
17.9%
16.6%
13.2%
10.7%
19.4%
19.0%
15.6%
14.2%
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
Notes: i. Gross margins = Gross profit divided by revenue from operations for the period; Gross profit is difference between summation of cost of materials consumed, purchase of stock-in-trade and Changes in inventories of finished goods and stock-in-trade and revenue from
operations for the period
ii. EBITDA Margin = Earnings before interest, tax, depreciation and amortisation divided by revenue from operations iii. Return on Capital Employed = Earnings before interest and taxes for the period/year divided by capital employed, where capital employed is computed as sum of total equity and borrowings (including accrued interest and Gold Metal Loan) as at the end of the period/year. iv. Return on Equity=Profit after tax for the period / year divided by average total equity. Average total equity is calculated as average of opening and closing balance of total equity for the period / year.
45
Shareholding Pattern
Holding as on 31st December 2023
Promoters
68.46%
SAIF Partners India
11.63%
OIJIF
2.66%
FIIs
Mutual Funds and AIF
4.32%
Bodies Corporate
Others
9.21%
2.84%
0.88%
Post IPO and OFS by SAIF, Promoters’ shareholding has reduced from 76.92% to 68.46%
Major Share holders among Top 10 (Excluding Promoters) As on 31st December 2023
SAIF PARTNERS INDIA IV LIMITED
OMAN INDIA JOINT INVESTMENT FUND II
3P INDIA EQUITY FUND 1
JUPITER INDIA FUND
BANDHAN SMALL CAP AND CORE EQUITY FUND
SUNDARAM MUTUAL FUND
BNP PARIBAS ARBITRAGE – ODI
WHITEOAK CAPITAL (FLEXI CAP, MULTI CAP AND MID CAP)
HIGHWEST GLOBAL MASTER FUND, LP
CARNELIAN CAPITAL COMPOUNDER FUND-1
BANK OF INDIA (SMALL CAP, MULTI CAP, DEBT FUND)
46
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