Senco Gold –
Q3 FY 24 results and concall highlights –
Revenues – 1652 vs 1339 cr ( up 23 pc. Out of this, 920 cr of sales were clocked in a single day on Dhanteras )
EBITDA – 181 vs 162 cr ( up 11 pc, noteworthy margin compression due higher employee and other expenses – due higher investments in newer stores )
PAT – 109 vs 103 cr ( up 6 pc due higher depreciation, interest costs )
Revenue growth led by – higher gold prices – up 15 pc, higher stud ratio and new store openings @ 19 additional stores vs LY ( out of these, 04 are franchisee stores )
Q3 volume growth @ 9 pc in gold and 27 pc in Diamond jewellery
Current number of showrooms – 155. Company operated stores @ 90, franchise stores @ 65
Stores present across 105 towns and cities
Last 3 yr – revenue CAGR @ 19 pc, ROCE @ 14.2 pc, ROE @ 19 pc
Dec 23 stud ratio at 11.6 pc vs 9 pc in FY 21
Avg transaction value @ 65k vs 57k in FY 21
Share of organised player in the Jewellery industry @ 40 pc vs 15 pc in 2001
Segment wise industry break up –
Bridal – 50-55 pc
Daily wear – 35-40 pc
Fashion – 5-10 pc
Geography wise industry break up –
Urban India – 40 pc
Rural India – 60 pc
As urbanisation improves, this may change
Company’s geographical spread –
WB + Kolkata – 90 + 21
North – 22
Central – 4
West – 7
South – 5
Almost all of franchise stores ( except 1 ) are in WB
About 33 pc of company’s revenues come from Franchise stores
Brand ambassadors – Kaira Advani, Vidya Balan, Saurav Ganguly, Madhumita Sarcar, Diptipriya Roy, Ishaa Saha
Company has strong digital presence by the name – Sencoverse to attract Gen Z customers
Company has launched new product ranges under the Sennes brand –
Laptop Bags
Backpacks
Men’s Wallets
Leather Bags
Other accessories
Company has enrolled itself on the ONDC platform as well
Aim to open 18-20 stores/yr for the foreseeable future
Company’s same store growth in Q3 is healthy @ 17 pc
Company seeing good demand trends in Q4 as well. Company guiding for 23-24 pc growth for full FY 24
Company seeing better growth rates and better stud ratios in the North. For the time being, North – including UP, Chandigarh, and NCR are focus areas for the company
Aiming to maintain full FY’s EBITDA margins at around 7 pc
South is a hyper competitive mkt for Jewellery. Hence the company’s focus remains to be North and East. Company will continue to be a niche player in South. Company’s stores in South are already profitable
On an avg, 60 pc of company’s buyers are repeat and 40 pc are new buyers
Capex plan for next FY at around 60 cr – mostly for new store openings
Company believes, it can open another 12-15 stores in WB in next 2-3 yrs in tier – 2,3 cities
Disc: holding, biased, not SEBI registered
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