INDIAN GOLD JEWELLERY RETAIL INDUSTRY

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1 ICRA RESEARCH SERVICES Contacts: Subrata Ray K Srikumar Mythri Macherla Hemamalini Chandrasekharan com INDIAN GOLD JEWELLERY RETAIL INDUSTRY Elevated gold prices and tightened credit availability to pulldown growth in jewellery demand during CY2018 ICRA LIMITED April 2018

2 Contents Summary Jewellery demand rebounds sharply in CY2017; higher gold prices and tightened credit to pull the growth in CY Demand trends and outlook Sharp recovery in jewellery demand during CY2017 led by confluence of factors Quarterly trends in gold jewellery demand Gold prices and regulatory measures List of regulatory measures and impact on jewellery industry Supply trends and outlook Gold bullion imports surge in CY Key operating efficiencies Same store sales growth improves in FY2018; to witness moderation in FY Financial updates Update on quarterly performance Earnings profile of organised retailers remain stable Amidst tightened credit environment, stable growth in earnings to support debt indicators Peer analysis and median numbers Industry-wide comparison of players profile Median financials for a sample of four major listed gold jewellery retailers ICRA ratings on the sector ICRA credit ratings in the Gold Jewellery industry Company profile PC Jewellers Limited Thangamayil Jewellery Limited Titan Company Limited Tribhovandas Bhimji Zaveri Limited ICRA LIMITED Page 2

3 List of Tables and Charts Demand trends and outlook Exhibit 1: Gold Jewellery demand trends (in volumes and values) Exhibit 2: Quarterly trends in Gold Jewellery demand Exhibit 3: Trends in gold prices and exchange rates Exhibit 4: Quarterly trends in gold prices Exhibit 5: Demand drivers across months Exhibit 6: Trends in gold prices (for 24gm) and growth in jewellery demand Exhibit 7: Comparison of returns across asset classes Exhibit 8: List of regulatory measures and impact on jewellery industry Exhibit 9: Market segmentation Supply trends and outlook Exhibit 10: Annual trends in gold supply Exhibit 11: Supply mix Exhibit 12: YoY growth in Supply Exhibit 13: Quarterly trends in gold dore imports Exhibit 14: Quarterly trends in gold bullion imports Financial updates Exhibit 21: Quarterly trends in revenues and margins Exhibit 22: Quarterly trends in interest cover Outlook Exhibit 23: Trends in Revenues and growth Exhibit 24: Operating and net margins estimates Exhibit 25: Coverage indicators Exhibit 26: Capitalisation indicators Industry wide peer comparison Exhibit 27: Financial comparison across players Industry median Exhibit 26: Profitability ratios Exhibit 29: Capitalisation ratios Exhibit 30: Liquidity ratios Exhibit 31: Coverage ratios Export trends Exhibit 15: Trends in Gold jewellery exports from India Exhibit 16: Trends in India s Gold jewellery exports to UAE ICRA ratings in the industry Exhibit 32: ICRA s Ratings in the Gold Jewellery industry Operating efficiencies Exhibit 17: Trends in operating metrics Exhibit 18: Trends in store size and SSS growth Exhibit 19: Growth in Revenue and EBITDA per Sq ft Exhibit 20: Movement in Inventory ratios ICRA LIMITED Page 3

4 Please contact ICRA to get a copy of the full report Business Contacts Mr. L. Shivakumar shivakumar@icraindia.com Tel: / Mr. Jayanta Chatterjee jayantac@icraindia.com Tel: / Media and Public Relations Ms. NazninProdhani naznin.prodhani@icraindia.com Tel: Ms. Malika Munjal malika.munjal@icraindia.com Tel: ICRA LIMITED Page 4

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