Aditya Birla Fashion and Retail Limited — Q4 FY26

Aditya Birla Fashion and Retail Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=2O0DpG1RQeU Published: 7 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the fourth quarter earnings conference call of Adita Villa Fashion and Retail Limited. The call will begin 0:10 10 seconds with a brief discussion by the company's management on the quarter 4 FI26 performance followed by a question and answer session. We have with us today Mr. Ashish, managing director, Mr. 0:22 22 seconds Jagish Baj, CFO, Mrs. Sangeita Tanwan, director and CEO bank loans. I want to thank the management team on behalf of 0:30 30 seconds all the participants for taking valuable time to be with us. I must remind you that today's discussion may include certain forward-looking statements and 0:38 38 seconds must be viewed therefore in conjunction with the risk that the company faces. 0:43 43 seconds Please restrict your questions to the quarter performance and to strategic questions only. Housekeeping questions can be dealt separately with the IR 0:51 51 seconds team. With this, I hand the conference over to Mr. Jatish Paj. Thank you and over to you sir. 0:57 57 seconds Thank you. Good evening everyone. Thank you for joining us today for the Q4 FI26 earnings call of Adita Fashion and 1:05 1 minute, 5 seconds Retail Limited. Starting with the demand environment in this quarter. Demand trends during the quarter remained broadly in line with what we have seen 1:13 1 minute, 13 seconds over the past quarter. The wedding calendar was relatively weaker compared to the same period last year. At the same time towards the end of the quarter 1:21 1 minute, 21 seconds market began to see the emergence of certain disruptions in context of the geopolitical uncertainty and we shall see how these developments play out. 1:31 1 minute, 31 seconds Against this backdrop, our company delivered a strong performance. Pental loans was a key highlight with one of its highest yearon-year growth 1:39 1 minute, 39 seconds performances. The company's overall revenue momentum was broad-based across channels with both stores and e-commerce 1:46 1 minute, 46 seconds continuing to perform well and building on the improvement seen in the previous quarters. We also continued to invest in 1:54 1 minute, 54 seconds future growth through calibrated store expansion. During the quarter, we added around 70 new stores taking the total additions for the year to over 180 2:02 2 minutes, 2 seconds stores. As these stores mature, they are expected to contribute meaningfully to revenue growth, productivity improvement and profitability with operating 2:11 2 minutes, 11 seconds leverage setting in. In summary, the quarter reflects healthy momentum across the portfolio, robust execution across 2:18 2 minutes, 18 seconds channels and continued investment behind avenues of future growth. Now moving to the financial performance of the 2:24 2 minutes, 24 seconds quarter. ABFL posted 16% YI growth to reach rupees 1,990 cr versus 1719 cr 2:33 2 minutes, 33 seconds last year. Within segments, pentalone segment delivered 19% Yi growth led by 17% Yi growth in the core pentaloons 2:42 2 minutes, 42 seconds format. Tomorrow maintained momentum delivering 45% growth year on year. I would like to emphasize on profitability 2:50 2 minutes, 50 seconds for this quarter in context of few one-offs in the base quarter. 2:55 2 minutes, 55 seconds It is important to note that last year included onetime gain of rupees 97 cr relating to inventory write up an 3:03 3 minutes, 3 seconds accounting treatment relating to de merger which was explained in detail during Q4 results of last year. Please note that comparisons are made against a 3:11 3 minutes, 11 seconds base excluding this impact. This quarter also saw a gain of rupes 83 cr from derivative gain within tomorrow's 3:18 3 minutes, 18 seconds associate company wrong compared to rups 22 cr in the same period last year. 3:24 3 minutes, 24 seconds These gains are getting consolidated abfra level and are non-cash in nature. 3:29 3 minutes, 29 seconds Excluding both of these impact ibida grew 29% yearonear with margins at 11 and a half%. Within overall IIDA, our 3:38 3 minutes, 38 seconds ethnic business marginally margin significant specifically saw a big expansion of 390 basis points yearon year mainly due to reduction in TCN. 3:48 3 minutes, 48 seconds Reported loss for the quarter is stood at rupees 164 cr compared to rupees 171 cr in the same period last year. This 3:57 3 minutes, 57 seconds include a onetime exceptional charge of rupees 11 cr related to the wage board. 4:02 4 minutes, 2 seconds Here also please note that last year's reported PAT included de merger gain of rups 97 cr. 4:09 4 minutes, 9 seconds Adjusting for this the revolution gain is tomorrow's associate and wage code impact. The loss at pat level has 4:16 4 minutes, 16 seconds reduced from rups 289 cr last year to rupees 235 cr this year highlighting a better underlying operating performance. 4:25 4 minutes, 25 seconds Going to the financial performance for the year, ABFL delivered revenue of Rs 8,177 4:33 4 minutes, 33 seconds cr registering a an 11% YI growth. This was supported by doubledigit growth across ethnic, tomorrow and luxury 4:41 4 minutes, 41 seconds businesses. IIDA adjusted for the de merger gain and the revolution gain in tomorrow's associate grew by 23% YI to 4:49 4 minutes, 49 seconds rupees 9003 cr with margin at 11% versus 10% last year. This reflects the continued improvement in operating 4:57 4 minutes, 57 seconds performance across the portfolio. As of March 2026, ABFL held gross cash of rups 5:05 5 minutes, 5 seconds 1,549 cr at the consolidated level while gross cash at the standalone level is stood at rupees 1144 cr. The gross date 5:14 5 minutes, 14 seconds at consolidate level is 1695 cr and standalone level is rupes 740 crores. On a pre- index IIDA basis, fulier 5:23 5 minutes, 23 seconds performance continues to improve. X tomorrow consolidate IBIDA stood a loss 5:30 5 minutes, 30 seconds of rupees 33 cr against loss of rupees 75 cr in previous year. 5:36 5 minutes, 36 seconds At the standalone level, we are at IBIDA break even. Our overall retail network stood at 1273 stores spending almost 7.9 5:45 5 minutes, 45 seconds million square ft. During the year we added6 million square ft of retail space on a net basis further strengthening our 5:54 5 minutes, 54 seconds presence and supporting our growth agenda. Now let me brief you on performance of individual segments. 6:00 6 minutes Coming to the pentalum segments the business delivered one of the strongest growth quarters in recent periods with revenue growing 19% yi to rupees,48 cr. 6:11 6 minutes, 11 seconds The performance was supported by healthy 14% liketo-like growth in pentaloons format reflecting sustained underlying momentum. 6:20 6 minutes, 20 seconds Profitability also improved during that quarter with evida margin at 15.5% expanding by 40 basis points year on 6:28 6 minutes, 28 seconds year. This is despite the impact of continued ramp up of home during the quarter. Over the past 18 24 months, 6:36 6 minutes, 36 seconds Pentalum has undertaken a strategic shift that has strengthened its customer and product proposition, elevated the instore experience, and sharpened 6:45 6 minutes, 45 seconds execution across the business. These actions are enhancing the relevance of pentaloon for today's consumer while positioning the business as a stronger and more sustainable growth platform. 6:55 6 minutes, 55 seconds Over time, continues to strengthen its presence with its store network expanding to 79 7:03 7 minutes, 3 seconds stores. These included 12 new stores added during the quarter and 34 stores added in FY26. 7:10 7 minutes, 10 seconds We'll continue to scale this business in a discipline manner as we build it into an import and growth platform for our company in the largest addressable 7:19 7 minutes, 19 seconds market. Coming to the ethnic business, the business delivered annual revenue of rups 2,227 7:27 7 minutes, 27 seconds cr in FY26 growing 14% yi and growth in Q4 stood at 4% versus last year. The portfolio 7:36 7 minutes, 36 seconds continues to scale well with a network of over 680 stores across key markets in the country. The business also delivered 7:44 7 minutes, 44 seconds a 16% likelike growth during the year reflecting continued consumer traction across the portfolio. Profitability 7:52 7 minutes, 52 seconds improved significantly with FY26 Ibida margin expanding by 560 560 basis points to 10.8%. 8:02 8 minutes, 2 seconds Overall the ethnic portfolio made solid progress during the year across both growth and profitability and remains a key strategic pillar for us. As you are 8:11 8 minutes, 11 seconds aware, our ethnic portfolio comprises of two segments, designer lead and premier ethnic. Our designer lead ethnic 8:18 8 minutes, 18 seconds portfolio continued to perform well, delivering robust growth along with a strong double-digit profitability. 8:24 8 minutes, 24 seconds Revenue momentum was supported by focused category extensions, craft and contemporary product launches and deeper 8:32 8 minutes, 32 seconds grant collaborations across the portfolio. Now within the premium ethnic web brands, TCNS continued with its 8:39 8 minutes, 39 seconds profitability improvement journey during the year. The business delivered 7% like to like in Q4 and 10% like to like 8:47 8 minutes, 47 seconds growth in FY26 supported by a sharper product proposition, refreshed collections and new launches that 8:53 8 minutes, 53 seconds resonates with well with consumers. As indicated earlier, we made meaningful progress on reducing losses with full 9:02 9 minutes, 2 seconds year cash losses reduced reducing by more than half compared to last year. We remain focused on further improving the 9:10 9 minutes, 10 seconds margins profile through better store productivity, cost discipline and operating leverage as the business scales. The business has also 9:18 9 minutes, 18 seconds kickstarted its expansion journey this expansion journey this year in a calibrated manner adding 23 new stores 9:26 9 minutes, 26 seconds during FI26. During that quarter, we also launched the first W flexive store in Mumbai which is an important step in 9:34 9 minutes, 34 seconds strengthening the brand's retail presence and showcasing the refresh proposition to consumers. With all its grants under one roof, Taswa continues a 9:44 9 minutes, 44 seconds strong growth trajectory during the year, delivering consistent double-digit liketo-like growth for the quarter as well as for the full year. The brand 9:53 9 minutes, 53 seconds continues to build strength across product, retail experience, and brand image with a clear focus on scaling 10:00 10 minutes across India's key wedding markets. The network now stands at 94 stores and we will continue to expand selectively in 10:07 10 minutes, 7 seconds high potential wedding markets. Japur also delivered doubledigit growth supported by store expansion and healthy 10:14 10 minutes, 14 seconds e-commerce performance. The brand now has his network of 44 stores and continue to strengthen its position in 10:22 10 minutes, 22 seconds the premium artisal and craft ethnic wear space on luxury retail. 10:29 10 minutes, 29 seconds The collective and monograms business continued to grow profitably with its total network including mono brand 10:36 10 minutes, 36 seconds stores at 49 stores. Gallery LA India's first colleive luxury departmental stores commenced operations in November 10:44 10 minutes, 44 seconds 2025 and has been has seen encouraging early traction. The platform continues to drive consumer engagement through 10:52 10 minutes, 52 seconds curated luxury experiences and collaborations, setting new benchmarks in luxury retail in India. Our digital 11:00 11 minutes brands portfolio of tomorrow delivered 45% Yi growth in Q4 underpinned by category extensions and high impact 11:08 11 minutes, 8 seconds marketing campaigns. Q4 cash losses narrowed Yi led by better scale efficiencies and operating leverage. The 11:17 11 minutes, 17 seconds portfolio also continued to build its omni channel presence closing the quarter with 120 stores including wrong 11:25 11 minutes, 25 seconds across key market nationwide. As you are aware with equity issuance of rupees 440 cr during the year and more recent fund 11:34 11 minutes, 34 seconds tie up of rupes 500 cr through NCD tomorrow is now well now adequately funded with rupees 800 cr cash to pursue 11:43 11 minutes, 43 seconds its aggressive growth plans. In conclusion, the quarter reflects a strong momentum across our businesses supported by steady improvement in 11:51 11 minutes, 51 seconds profitability. We are seeing encouraging progress across both established businesses and new initiatives driven by 11:58 11 minutes, 58 seconds healthy L2L growth, robust channel performance and continued execution discipline. As we look ahead, the market 12:07 12 minutes, 7 seconds environment must continue to evolve and we will remain focused on responding with clarity, speed and discipline. Our priority is to stay close to consumer 12:15 12 minutes, 15 seconds trends, make the right choices on product launches and network expansion and continue executing with financial discipline. We'll continue to scale our 12:24 12 minutes, 24 seconds newer businesses in a calibrated manner while building on the strength and momentum of our mature businesses. This balanced approach should help drive 12:33 12 minutes, 33 seconds long-term growth, improve operating leverage, strengthen the overall margin profile, and build a solid foundation for sustained profitability over time. 12:42 12 minutes, 42 seconds Thank you and happy to take questions now. 12:46 12 minutes, 46 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may have press star and one on your touchstone telephone. If you wish to remove 12:54 12 minutes, 54 seconds yourself from the question queue, you may press star and two. Participants are requested to use sess while asking a question. Ladies and gentlemen, we'll 13:02 13 minutes, 2 seconds wait for a moment while the question assembles. 13:08 13 minutes, 8 seconds The first question comes on the line of Archaon with Morgan Stanley. Please go ahead. 13:15 13 minutes, 15 seconds Hi uh thank you for the opportunity and congratulations on the strong performance. Um so my first question was 13:21 13 minutes, 21 seconds actually on pantaloon uh so the 17% uh pantaloon format revenue growth. 13:32 13 minutes, 32 seconds Hi am I audible? Yes. Yes. Yes. 13:37 13 minutes, 37 seconds Yes. So my question was on the panel format. If you could just uh help us understand what drove the 17% um revenue 13:45 13 minutes, 45 seconds growth. I understand there could be some benefit of the EOSS which moved into this quarter. Uh but any additional details you could help us with on this. 13:54 13 minutes, 54 seconds Yeah sure. Thanks Asha for the question. 13:56 13 minutes, 56 seconds This is Sanita. Uh so a like we had told you in the last call the reason why we 14:03 14 minutes, 3 seconds had pushed our EOSss we based on our new strategy we were pretty confident of our 14:10 14 minutes, 10 seconds merchandising sellroughs and therefore we've chosen to move the USS to January 14:17 14 minutes, 17 seconds this is really a quarter where we think our strategy that we've been working on for the last uh 18 months with a 14:25 14 minutes, 25 seconds concerted set of actions which are translating into results. Uh which starts from as Jagish alluded in his 14:34 14 minutes, 34 seconds speech um fundamentally defining our target audience in a very sharp manner. 14:41 14 minutes, 41 seconds Uh strengthening the pantloon's proposition with a superior customer experience. Uh 14:48 14 minutes, 48 seconds some of the key levers that we have talked about in the past where we've now seen results come through clearly are uh 14:55 14 minutes, 55 seconds the reset of uh our merchandising strategy spec specifically in three categories which is women's western men's wear and the non-apparel category. 15:07 15 minutes, 7 seconds We've seen uh growths in excess of 20% in each of these categories in quarter 4. our sell throughs uh which is again a 15:16 15 minutes, 16 seconds very important metric of um the success of our merchandising strategy. We've seen the highest ever sell throughs uh 15:25 15 minutes, 25 seconds in our autumn winter season. Uh secondly, I think the new store strategy with the new design with the purpose of 15:32 15 minutes, 32 seconds creating a distinctive and superior customer experience seems to be paying off well. The customers seem to be liking our stores. They are well 15:40 15 minutes, 40 seconds accepted. Uh we've seen uh the new stores also delivering uh very good results. Uh we've opened large stores as 15:49 15 minutes, 49 seconds you probably know and while we may have reduced in terms of overall the number of stores in terms of square footage we 15:56 15 minutes, 56 seconds have only added about 68,000 square ft of space uh during the course of year despite having lesser number of stores 16:04 16 minutes, 4 seconds because the stores we are opening are larger stores because we have the confidence of our proposition working. 16:10 16 minutes, 10 seconds Uh third, I think our online business um I had alluded to this also in the last call. Uh we feel again very confident of 16:19 16 minutes, 19 seconds this business. It's uh demonstrated terrific growth in quarter 4 and through the year and we're now ready to scale this business. We also relaunched 16:28 16 minutes, 28 seconds Pantrons as a brand uh made significant marketing investments uh largely in the digital space uh signed up on a 16:37 16 minutes, 37 seconds celebrity and again we've seen good results. So even if you keep uh the EOSS piece and you normalize keep it aside 16:46 16 minutes, 46 seconds and you normalize for that and even if I look at November to March which on the previous period kind of normalizes for 16:54 16 minutes, 54 seconds festive shifts and on this side normalizes for the EOSS shift. Our growths are very strong both in terms of 17:02 17 minutes, 2 seconds L2L and uh total growth even for the period November to March. 17:09 17 minutes, 9 seconds And from a consumer profile standpoint again we are seeing that the customers who we were targeting demographically we 17:16 17 minutes, 16 seconds seem to be seeing uh us appealing to that set of customers uh in a more relevant manner. So these are some of the drivers of our strategy which we 17:25 17 minutes, 25 seconds have talked about very consistently through the year. 17:30 17 minutes, 30 seconds uh strategy has been translated into action. We had said in the last call we are seeing some green shoots and uh we're very pleased uh with the quarter 17:39 17 minutes, 39 seconds with the quarter results that uh we've just delivered. 17:43 17 minutes, 43 seconds Thanks Anita that's great to hear. Just continuing on this uh firstly could you help us with your online share of 17:51 17 minutes, 51 seconds revenue for panel loans uh currently and secondly uh you know all these pulses that you spoke of is that uh helping you 17:59 17 minutes, 59 seconds in a higher customer walk-in or is it more conversion or ASP any numbers that you can help us with uh if not for the 18:06 18 minutes, 6 seconds full year at least for the exit uh which you think is more sustainable going ahead. Yeah. So online as a business is 18:13 18 minutes, 13 seconds still very small and uh uh if you recall a couple of years back we had said that we will not invest uh in that channel 18:21 18 minutes, 21 seconds but over the last year we called out omni channel as one of our priorities uh and now we have a part to profitability. 18:30 18 minutes, 30 seconds The reason why we had that business uh was because we wanted to make sure that we can uh get the unit economics right and make this business uh profitable. 18:40 18 minutes, 40 seconds Today it's about 3 4% of our business. 18:42 18 minutes, 42 seconds It's not very large but with all the shifts we have made this year we feel confident of scaling up this business. 18:49 18 minutes, 49 seconds Uh so your third question in terms of the customer KPIs the biggest one which we feel uh very good about is our uh 18:58 18 minutes, 58 seconds increase in our basket sizes and uh that again is a ratification of the fact that the customers who are coming into our stores are liking what they are seeing. 19:07 19 minutes, 7 seconds They're liking the experience in our stores and they're liking the merchandise and of course it comes with a lot of operational discipline which is 19:15 19 minutes, 15 seconds a very important leg of our strategy as well in terms of how we serve the customer, the rhythm of how we display 19:22 19 minutes, 22 seconds our merchandise etc. So increase in basket sizes has been one of our biggest uh levers of growth. 19:32 19 minutes, 32 seconds Thank you. Just last question from me uh on the current environment with inflation. Um I mean what is the level of inflation that you are facing for pan 19:41 19 minutes, 41 seconds home and for own uh and what is the strategy around that uh I mean where do you think you can take price hike and should we be thinking of any margin 19:49 19 minutes, 49 seconds impact uh in the next couple of so um a I'll take this question because 19:55 19 minutes, 55 seconds this is I think uh broadly relevant to the entire portfolio not just to pant loans uh we are experiencing something 20:04 20 minutes, 4 seconds like 3 to 4% uh sort of inflationary pressure as far as raw materials is concerned. Uh obviously this is not the entire cost. 20:14 20 minutes, 14 seconds Raw material is a part of the cost. Uh and therefore effectively it would uh so 20:22 20 minutes, 22 seconds put pressure in the second half of the year to take uh to fully counter it take price increases between 5 to 8% 20:31 20 minutes, 31 seconds depending on the category. We are still evaluating. We don't have a firm view on whether we'll pass on all of it, some 20:38 20 minutes, 38 seconds part of it and perhaps we'll be differentiating between different parts of the businesses. 20:47 20 minutes, 47 seconds Thanks. I I'll come back in. 20:52 20 minutes, 52 seconds Thank you. Next question comes from the line of pages with Aendas Park institution. Please go ahead. 21:01 21 minutes, 1 second Uh hi, thanks for the opportunity. Uh first question pertains to overall your lead on demand sentiment because this 21:08 21 minutes, 8 seconds quarter was a slightly muddy quadrant in in terms of the first two months were very normal and then the last month we 21:16 21 minutes, 16 seconds saw disruption at a macro level not in India but otherwise the the sentiment wise and all and supply chain wise. uh 21:24 21 minutes, 24 seconds so whether uh the the last month has disrupted the flow materially or or at all and then uh should we extrapolate 21:32 21 minutes, 32 seconds the sentiment or revival that we have seen uh to FY27 as well. 21:38 21 minutes, 38 seconds So uh they just I think FY27 on a full year basis is perhaps uh too much of a 21:45 21 minutes, 45 seconds stretch when things are changing on a daily basis. uh would be hard to assess on a fullear basis. But uh to your 21:53 21 minutes, 53 seconds question on a more near-term uh you're right I I think there was a marginal impact in uh March which was uh which 22:02 22 minutes, 2 seconds slowed down some of the momentum which had built up in the previous 3 to four months but we have seen demand nearly 22:10 22 minutes, 10 seconds normal uh for most part of April and uh going into this quarter. So as of now uh 22:18 22 minutes, 18 seconds while we feared a significant uh sort of risk on demand as of now we have not seen it play out. Uh having 22:26 22 minutes, 26 seconds said that u you know most of the inflationary uh uh pressures are perhaps 22:34 22 minutes, 34 seconds uh still at work and u may play out fully over next 3 to four months and therefore consequent sort of uh pressure 22:43 22 minutes, 43 seconds on demand is something that we'll have to wait and watch for in the second half of the year. 22:50 22 minutes, 50 seconds Yeah. Uh second uh uh very many uh hardiest uh congrats on uh super LTL and 22:56 22 minutes, 56 seconds bank loans. Uh first just wanted to understand what would be the break up of volume versus uh price premiumization 23:04 23 minutes, 4 seconds mix on that and second uh uh the the point that Sita you mentioned that it is still basket size uh increase that we 23:13 23 minutes, 13 seconds are seeing. So when do you think that this will actually convert into word of mouth momentum and we'll see increased 23:20 23 minutes, 20 seconds footfall also because of uh because of the changes that we have made in last 18 months. 23:26 23 minutes, 26 seconds Yeah. Hi Tish. So as far as footfalls convertions are concerned, we've anyway seen through the back end of uh quarter 23:34 23 minutes, 34 seconds 3 and quarter 4, we've seen an increase in footfall and therefore we feel that the momentum that we've 23:42 23 minutes, 42 seconds generated is a part of our growth because you need that funnel at the top uh to come in for us to be able to 23:50 23 minutes, 50 seconds deliver conversions and basket size. So we've already seen a step up in our market size like I said towards the uh 23:57 23 minutes, 57 seconds second half of third quarter and fourth quarter. Uh as far as uh pricing is concerned our price increase through the 24:04 24 minutes, 4 seconds year was negligible. We've hardly taken any price increases and uh in fact in quarter 4 u our our pricing would have 24:14 24 minutes, 14 seconds been in fact marginally negative. So a large part of the growth has come from volume. 24:20 24 minutes, 20 seconds Yeah. And looking at the uh response that we have got in terms of LTL also confirming that uh should we revisit our 24:27 24 minutes, 27 seconds mids singledigit uh LTL guidance and also should we revisit our store expansion plan and much more upper end of the guidance. 24:38 24 minutes, 38 seconds I'll step in just here. uh I think um uh you know strategy has taken time to to 24:48 24 minutes, 48 seconds all for all parts of its pieces to come together as Sangita described in her response to Archa's question initially 24:56 24 minutes, 56 seconds uh actually from mid to late October almost for last five months of the year 25:03 25 minutes, 3 seconds and going into this year uh we are seeing a fairly consistent uptick in 25:10 25 minutes, 10 seconds almost all measurements both quantitative and qualitative gives us confidence that much of what has been 25:17 25 minutes, 17 seconds worked upon in last year year and a half is actually turning into a consumer um uh benefit which is showing up in the 25:25 25 minutes, 25 seconds response. Now we would obviously in in this environment be little watchful but uh I 25:34 25 minutes, 34 seconds I would uh be more inclined to go with your suggestion uh of u slightly better 25:43 25 minutes, 43 seconds and more rapid expansion. Uh we won't change the it takes long time for funnel to shift and therefore we'll obviously 25:50 25 minutes, 50 seconds some of it will be back in dead as far as this year is concerned. uh and also hopefully we'll continue this momentum 25:57 25 minutes, 57 seconds of uh of strong like to like growth even if you take away this uh uh USS impact in this quarter as Singita said that 26:06 26 minutes, 6 seconds five six month delivery of high singledigit uh near double digit kind of uh like like with 26:14 26 minutes, 14 seconds the business has been delivering month that's something that we uh hopefully will will stand out for later part of 26:21 26 minutes, 21 seconds the year my only concern is really the demand compression towards if any coming towards the second half of the year when 26:28 26 minutes, 28 seconds the cost inflation not just in textile but overall uh basket uh if it brings any you know slow down 26:38 26 minutes, 38 seconds the market but we are feeling very confident about the strategy it's uh not just stores are looking good products are looking good consumers are 26:45 26 minutes, 45 seconds responding well and finally it's also beginning to flow into financials thanks that's all from my side and best wishes for coming. 26:55 26 minutes, 55 seconds Thank you. 26:58 26 minutes, 58 seconds Thank you. A reminder to all the participants that you may press star and want to ask a question. Next question comes from the line of Khalima Mishra with COVID security. Please go ahead. 27:10 27 minutes, 10 seconds Thank you so much for the opportunity. 27:12 27 minutes, 12 seconds Um my first question is on the company's cash flow situation. So it seems like cash consumed in SI26 is of the order of 27:20 27 minutes, 20 seconds 1400 crores. I'm just summing up the operating cash flow payments for lease liability and graphics right. So how are 27:27 27 minutes, 27 seconds you viewing your liquidity situation considering per your earlier guidance the company becomes SCF positive only by 27:34 27 minutes, 34 seconds FY 2021 thanks I'll give Jakish uh I'll give Jish to 27:42 27 minutes, 42 seconds thanks very at the general level we started the year with a gross cash of 2,100 cr as stated we're planning to 27:52 27 minutes, 52 seconds utilize it 1,000 cr in FY26 600 cr in FI FI 27 and 500 cr in 28 cost which we 28:00 28 minutes aimed to be FCF positive in FI 29. In FI26 we were cash aida positive at 28:08 28 minutes, 8 seconds standalone level as we aggressively ramped up our new businesses during this quarter. During this year we consumed 28:15 28 minutes, 15 seconds totaling to around 1,000 cr 300 towards working capital 450 cr towards capex and infused 250 cr in our ethnic subsidiaries. 28:26 28 minutes, 26 seconds Uh in FI26 our investments were high due to one-time investment in GL and investment in working capital and capex 28:35 28 minutes, 35 seconds of rupes 450 cr uh with working capital and we rebranded on with which aggregate to rupees 200 cr. So this is some sort 28:44 28 minutes, 44 seconds of oneoff you know one-time expenditure which I would like to call it but FYI 27 we aim to utilize 600 cr towards ramping 28:52 28 minutes, 52 seconds up of businesses and invest in working capital and capex of which 450 cr and 150 cr will go into investment in 29:00 29 minutes subsidiaries from now onward as our subsidiaries including including designer brand and tomorrow have reached 29:08 29 minutes, 8 seconds size and scale they will fund their own growth as they have reached at this level and in this context 29:16 29 minutes, 16 seconds tomorrow you know has already tied up uh the debt funding of which 500 cr by way of debentures on completion of this 29:24 29 minutes, 24 seconds funding they will have 800 cr cash in it in their books which will support tomorrow's growth plan so we have to 29:32 29 minutes, 32 seconds spend not more than 600 cr rupees during this year uh and I have roughly 1150 cr cash available with me which is sufficient for next two years Nice. 29:44 29 minutes, 44 seconds So Germa this response was uh from the from the context of standalone standalone because that's the investing entity and 29:53 29 minutes, 53 seconds we have looked at investments in all the subsidiaries as well as our uh own internal need for funding for uh the 30:01 30 minutes, 1 second landal parts the CFS level you're right 1400 cr but which is in tomorrow's losses etc for which they already raised 30:08 30 minutes, 8 seconds 440 cr rupes of equity range Okay. So, so you're basically saying 30:16 30 minutes, 16 seconds that uh incrementally you're not uh foreseeing some big debt increase or additional you know large debt 30:24 30 minutes, 24 seconds requirement that the company needs to take. There is there is debt but again that there is cash and that cash you can keep consuming. 30:31 30 minutes, 31 seconds That is correct. That is right. That is okay. Understood. My second question is 30:38 30 minutes, 38 seconds on pantaloons. So uh the pandemic in the last few quarters the store count per se has not changed very meaningfully right. 30:47 30 minutes, 47 seconds Um so maybe I have missed this number but a uh does this 399 store count 30:54 30 minutes, 54 seconds include stores of owned as well and b how should we look at store edition plans going forward? 31:02 31 minutes, 2 seconds Yeah. Hi Kimma this is Sanita. So uh 399 is just the number for pantaloons. it does not include the own number. 31:12 31 minutes, 12 seconds Um, as you know, again, as part of our uh strategy that we defined 18 months ago, we chose very consciously to close 31:22 31 minutes, 22 seconds stores that were either not profitable or stores that were not in line with our strategy. And over the last couple of 31:28 31 minutes, 28 seconds years, we've kind of gone through that exercise and u uh optimized our our network. Going forward as uh you heard 31:38 31 minutes, 38 seconds Ashish mention given the fact that we are seeing um you know some early results of our 31:45 31 minutes, 45 seconds strategy um though the plan for the for this financial year is about 2022 31:50 31 minutes, 50 seconds [clears throat] 31:51 31 minutes, 51 seconds stores. Uh I think as we get more confident we will look at some point of time to step up this agenda and accelerate our store expansion. 32:03 32 minutes, 3 seconds Got it. Got it. clear and my last question was on the ethnic business. Now here right now the two large entities um 32:11 32 minutes, 11 seconds especially on the everyday ethnic everyday or whatever yeah festive ethnic piece are u pasma and DCNS. So a could 32:21 32 minutes, 21 seconds you uh highlight the losses which CCNS in uh you know incurred in FY26 32:28 32 minutes, 28 seconds and what is the progress on tasa what is the response on store that you are seeing and when do you expect the tasa 32:35 32 minutes, 35 seconds piece to break even that's it from me thank you so tasua as we have maintained has uh 32:43 32 minutes, 43 seconds remained in a very strong growth trajectory and today continues to be in investment phase uh It's one of the 32:50 32 minutes, 50 seconds exceptional breakout growth uh in the otherwise somewhat subdued wedding markets and ethnic wear category. Uh 32:58 32 minutes, 58 seconds we'd like to like growth of 20% plus for the full year for FI26 and overall growth which is in north of 30 33%. So 33:07 33 minutes, 7 seconds that's on a very strong momentum. The profitability will take some time. Uh we have said FY28 33:14 33 minutes, 14 seconds and we still feel that's the the right assessment at this point as well. Uh as far as TCLS is concerned, Vignition is 33:22 33 minutes, 22 seconds opening the market. Talk about how the losses have this year versus FI25. 33:29 33 minutes, 29 seconds We still not profitable. We'll probably towards the end of FI27 is when we would expect to break even and on a full year 33:38 33 minutes, 38 seconds basis definitely be profitable by FI28 onwards. 33:44 33 minutes, 44 seconds All this I'm giving you most India's profitabilities are positive in both case and talking of cash profit. 33:58 33 minutes, 58 seconds Thank you. The next question comes from the line of Kov Jagani with GM Financial. Please go ahead. 34:05 34 minutes, 5 seconds Uh thank you for taking my question. Uh my question is again is with uh in relation to pantal loans. Now if we add 34:12 34 minutes, 12 seconds up the Q3 and the Q4 numbers and we compare it with the last year uh you know H2 base the growth is 6%. Uh now 34:22 34 minutes, 22 seconds the growth that we see in Q4 would you say just it's merely a shift of the one quarter to other or I mean as you've 34:29 34 minutes, 29 seconds been highlighting that the strategy is working out so are you seeing the benefits again seeping in uh in the Q1 numbers as well? 34:38 34 minutes, 38 seconds Yeah. Uh hi. So as I mentioned before uh this is obviously um not um even if you 34:46 34 minutes, 46 seconds normalize for the shift of the OSS as I mentioned before even if I look at November to March which normalizes for 34:54 34 minutes, 54 seconds both the shift in festivals uh from last year versus FI25 35:00 35 minutes uh and if you um account for the shift of the EOS's as well our growth uh and therefore quarter 3 plus quarter 4 may 35:08 35 minutes, 8 seconds not be the best way to look at it because there's a shift of festive sitting there and therefore November March is the cleanest period to kind of 35:15 35 minutes, 15 seconds look at the true growth our growths are uh pretty high like to like in fact is uh in the in the range of about 7% even 35:23 35 minutes, 23 seconds in for those for those 5 months uh sorry so when you say like to like uh 35:31 35 minutes, 31 seconds I mean the reported growth obviously would be in the same line given the story editions have been negligible so would that be the right understanding 35:40 35 minutes, 40 seconds No, the the uh total growth would be slightly higher than the like to life growth. It's 9%. To be precise. 35:50 35 minutes, 50 seconds Okay. Okay. Fine. Uh uh now second question is with regards to the the ethnic fees. uh I mean uh within that that the TCNS uh would it be fair to 35:59 35 minutes, 59 seconds assume you know that you have written uh that you know while the overall excluding the TCNS the growth was in uh 36:05 36 minutes, 5 seconds 25% year by around that region so uh for the year would TCNS revenues again would have declined by 9 to 10% uh would that 36:14 36 minutes, 14 seconds be a fair uh assumption no no TCNS revenues are virtually flat 36:22 36 minutes, 22 seconds uh okay because uh you know if uh if uh Suspay has also grown strongly uh by 38 odd% for the year and Subaraj has also 36:30 36 minutes, 30 seconds grown by 33% odd. So you know uh what would be then you know culminating to no there are multiple other designers 36:37 36 minutes, 37 seconds there is three other designer businesses there's jour so it's a mix of six seven businesses so I don't know which one you have left out I'm giving you exact 36:46 36 minutes, 46 seconds numbers DCNS is uh just marginally negative 1% or 2% uh and rest of the 36:54 36 minutes, 54 seconds designers uh have also varied between 1 2% to 31 odd% 37:01 37 minutes, 1 second Sure. Uh so I I'll check back that. Uh thank you. And just last bit you know uh when you say that you know you'll not be 37:07 37 minutes, 7 seconds requiring the incremental uh cash uh from uh from 27 and 28 as well apart from the planned one. What kind of 37:15 37 minutes, 15 seconds profitability are you building in uh across the the major segments? So that will help us you know uh to cross check our numbers as well. 37:24 37 minutes, 24 seconds I think I don't want to give yearon year numbers. We had uh got as you know indicated our overall segmental uh shift in profitability in our long-term plan. 37:34 37 minutes, 34 seconds We pretty much stay on that range both on the cash utilization as well as profitability journey. 37:43 37 minutes, 43 seconds Okay. Uh thank you. Thank you. 37:48 37 minutes, 48 seconds Thank you. Next question comes from the line of Ankit Kadia Philip Capital India. Please go ahead. 37:55 37 minutes, 55 seconds Uh sir just between pantaloon division uh if you have to take owned out there uh what could be the pantaloon margins if I exclude owned then what are the 38:04 38 minutes, 4 seconds losses in own pantaloon's margin uh for the quarter and I think for the year are also 38:11 38 minutes, 11 seconds between 18 to 18 1.5%. Which is the margin that pantaloons has consistently delivered slightly higher than last year. 38:20 38 minutes, 20 seconds own losses are therefore cost the you know uh causing the rest of the difference between the segmental 38:27 38 minutes, 27 seconds profitability business is still very small we are investing we've got a whole new team separated the business relaunch the 38:35 38 minutes, 35 seconds brand this year so we'll have to wait and see uh wait for some more time to get a reasonable sense of uh uh 38:43 38 minutes, 43 seconds profitability of this business so in this environment uh where you said demand challen challenges could come in 38:50 38 minutes, 50 seconds second half and we're also looking at price increases to mid to high single digit. Um the confidence in pantaloon would be significantly higher versus 38:59 38 minutes, 59 seconds owned and hence uh should we have slower stores opening in owned versus pantaloon this year. 39:06 39 minutes, 6 seconds Yeah. If you look at it, it pantloons and owns price segment and market opportunity. 39:12 39 minutes, 12 seconds Uh Pantons with 400 store network operating at higher higher price points is talking about 2022 stores. Old 39:21 39 minutes, 21 seconds operating at half the average price point practically startup base uh is also operating at similar level of this 39:30 39 minutes, 30 seconds year we are looking at 20 to 30 or at best 30 35 stores. uh primarily it's not to do so much with the market 39:37 39 minutes, 37 seconds environment because these are multi-year businesses. Uh we can't be reacting uh very short-term to these long-term 39:45 39 minutes, 45 seconds opportunities. This is more to do with us wanting to be clear getting the operating parameters right, getting the store economics right, getting the 39:53 39 minutes, 53 seconds merchandise mix, uh the team and everything else. Which is why this year we are not accelerating as fast as the opportunity might be. Sure. 40:06 40 minutes, 6 seconds Uh my next question is for Taswa. Uh a check suggest you're entering women's wear in Tasawa as well this year. Uh so 40:13 40 minutes, 13 seconds from your profitability perspective FIR28. Um does that include entry into women in Taswa as well or no? 40:23 40 minutes, 23 seconds No. I think by then Taswa women's wear if at all we do launch will be very small part of it. So I don't think it'll 40:30 40 minutes, 30 seconds materially create a shift. Because unlike launching a new brand where you have three new costs, a whole new brand 40:38 40 minutes, 38 seconds and marketing cost, a whole new store cost because you have to set up exclusive stores and a new team cost. In 40:47 40 minutes, 47 seconds Tasra women launch, uh we have no incremental cost that we talking about. 40:53 40 minutes, 53 seconds It'll launch in the same store under the same brand by largely the same team and therefore it will not materially change 41:01 41 minutes, 1 second the economics either way at least in the short. In the long term of course we see this as a large opportunity. 41:10 41 minutes, 10 seconds Sure. And um I know you you will not talk much about it but which uh you know in which category in women's way are you 41:17 41 minutes, 17 seconds planning to launch it and you know where do you see the white space? 41:23 41 minutes, 23 seconds I think women getting married is the white space that we're looking at. You know the opportunity it's very large. 41:29 41 minutes, 29 seconds It's a fragmented market. Uh we'll be in a position to talk about it I think in next 6 months or so. It's too early. Uh 41:37 41 minutes, 37 seconds I don't think even FI27 will see much action on it. 41:43 41 minutes, 43 seconds Sure. Uh and last question if I may squeeze in uh just on cash flow statement if I look at uh you know lease 41:50 41 minutes, 50 seconds liability uh you know last year versus this year it's significant decline uh so a high 41:58 41 minutes, 58 seconds rental stores have that been closed or we have moved more towards you know variable rental uh why is the you know 42:06 42 minutes, 6 seconds Pinterest and lease liability declined in cash flow significantly. lease liability has gone up from 3,600 to 4,500. 42:15 42 minutes, 15 seconds Uh so I'm talking of cash flows uh repayment of lease liability. 42:19 42 minutes, 19 seconds So that is you know the uh uh lease agreement etc. that is separate but my lease liability because we are entering 42:27 42 minutes, 27 seconds into agreements which is there in the balance sheet. Cash flow is the adjustment of if the some closure takes place or the old leaders expire that 42:35 42 minutes, 35 seconds will come into this but uh it's a significant decline versus last year. So have we changed some accounting uh for that? 42:45 42 minutes, 45 seconds No no no change in accounting nothing. 42:50 42 minutes, 50 seconds Okay I'll take it offline uh with you. Yeah. Thank you sir. 42:58 42 minutes, 58 seconds Thank you. Next question comes from the line of Samir Gupta with IFL Capital. Please go ahead. 43:04 43 minutes, 4 seconds Hi, good afternoon sir and thanks for taking my question. Firstly and I know a lot of people have asked on this but pant loans. So if I look at the full 43:14 43 minutes, 14 seconds year numbers and this normalizes for festive shifts shifts etc. Uh it's a 2% LTL and this has generally been a good 43:22 43 minutes, 22 seconds year for apparel. So we have a shopper stop and a vmart both reporting 5% LTL growth this year. So is it a case in 43:31 43 minutes, 31 seconds case of pant loons of the first half being poor and second half with all our strategies and actions uh is is that the case? 43:41 43 minutes, 41 seconds Yeah that's right absolutely okay and if that is the case then why are we still not accelerating the pace 43:49 43 minutes, 49 seconds of storage edition? I heard in the other question you said 2022 story editions in FI27 and this happens to be a multi-year 43:57 43 minutes, 57 seconds opportunity. Uh why then uh uh uh the confidence is not uh showing in our uh 44:04 44 minutes, 4 seconds store edition guidance. So see it will be very knee-jerk reactions if we keep reacting to every quarter's responses 44:11 44 minutes, 11 seconds which is why we look for long-term trends and opportunities which is why as Sita mentioned we have looked at last five six months of last year as well as 44:20 44 minutes, 20 seconds as we're getting into this quarter increasingly all the pieces of strategy are coming together the store addition 44:27 44 minutes, 27 seconds uh pipeline takes time to build so when you decide it takes 6 to9 months for right quality of stores which is another 44:35 44 minutes, 35 seconds part of a strate strategy because we were adding too many stores too rapidly and therefore in some sense the quality and impact and visibility was not of the 44:44 44 minutes, 44 seconds same order that we wanted and that pipeline takes time to build. So anything that we decide to do doesn't really play out in 6 to9 months and uh 44:53 44 minutes, 53 seconds that's why the guidance has not shifted but as pages had suggested in his question and my response we obviously 45:01 45 minutes, 1 second are looking to scale up a little faster in the shorter term you may not be able to see the impact of it. 45:09 45 minutes, 9 seconds Got it sir. Uh so uh still we we we are still in a slightly cautious mode here or is it just you know the pipeline takes time to build. 45:18 45 minutes, 18 seconds It's a pipeline which takes time to build. 45:21 45 minutes, 21 seconds Sure. Sure. Uh great that that answers that. Uh second question again this has been asked in some different forms but uh uh I have a slightly different 45:30 45 minutes, 30 seconds version of a question here. So 1,400 cash outflow this year. Uh and in general most of the segments 45:38 45 minutes, 38 seconds profitability has improved. Uh so first of all when you started this year did we 45:44 45 minutes, 44 seconds envisage a 1,400 cash outflow in the overall business and now because we are at a net debt position and uh the the 45:53 45 minutes, 53 seconds break even in some of these businesses which still require investments is still some time away. um you might see the net 46:00 46 minutes debt and looking at overall net debt uh uh on the business on a console level uh uh that will keep increasing. So is 46:08 46 minutes, 8 seconds there then you know a foresight of an equity infusion in near future? 46:14 46 minutes, 14 seconds No, I think uh we're pretty much should explain the the numbers. If you look at consolidated basis, the net cash 46:21 46 minutes, 21 seconds position was about 2,500 crores. Uh 2,400 odd crores beginning of the year which was about 2,150 crores on 46:29 46 minutes, 29 seconds standalone basis. There was a plan of 1,000 crores this year, 600 crores next year, 500 crores year after. We are 46:36 46 minutes, 36 seconds pretty much going as per that plan which factors in uh this the stage level of profitability shift across various 46:44 46 minutes, 44 seconds businesses as well as uh growth and the capex needs of the business and which is uh why while the debt may go up in a net 46:54 46 minutes, 54 seconds level there is adequate cash to fund not just standalone entity but uh if any investments required in subsidiaries 47:02 47 minutes, 2 seconds where we are investing there are some subsidi riaries which are raising capital on their own. Jagish just explained that tomorrow with its uh 47:11 47 minutes, 11 seconds proposed uh fund raise at the end of this quarter will be sitting on something like 800 crores of cash on its book. That's the one which requires 47:20 47 minutes, 20 seconds highest growth capital. There are multiple other smaller subsidiaries which have strong profitability to be able to raise capital on its own books 47:29 47 minutes, 29 seconds if required. So we have factored in all this and uh that's why the calculations that Jagish should given explain everything. 47:37 47 minutes, 37 seconds Uh I understand sir I I I I also understood sir's explanation but at the end of the day we will have a capital structure 47:45 47 minutes, 45 seconds with a significantly larger net debt which might be slightly risky in a retail business. Uh so uh how are you 47:54 47 minutes, 54 seconds looking at that possibility? No, we have seen cycles uh over a long period of time. Obviously, if there is a co-l like crisis, we'll have to react differently. 48:04 48 minutes, 4 seconds But we are pretty confident that this is the sort of right structure which allows uh equity shareholders to maintain uh 48:12 48 minutes, 12 seconds their levels of equity and the business to grow remarkably as you grow. 48:20 48 minutes, 20 seconds And is there a level of this net debt then which is which is where you will be comfortable let's say in an absolute basis or a net debt to aida basis. No so 48:29 48 minutes, 29 seconds we'll look at that number as it plays out. I don't want to give projections of this but I think we have maintained over last 7 years in multiple presentations 48:38 48 minutes, 38 seconds that as a company first ADFR in United company uh which included ADL pill these days and separately here anything around 48:46 48 minutes, 46 seconds 2 to three is what we have mentioned for any of our fashion companies uh we are very far but but that's the guidance we 48:54 48 minutes, 54 seconds gave 5 years back and 3 years back it's in public domain you don't have to ask me this question 49:01 49 minutes, 1 second sure sir No worries. Uh uh last question bookkeeping one uh capeex uh guidance for FI27 and in just uh the 26 number 49:10 49 minutes, 10 seconds overall 500 crore capeex if you could go for rough split between different businesses pant tomorrow galleries la uh 49:18 49 minutes, 18 seconds and the gu it for 27. So I covered you know it includes 150 cr rupees of PL uh 49:25 49 minutes, 25 seconds the store which we open that will not be there going forward otherwise the remaining other capex have gone into own 49:33 49 minutes, 33 seconds pentaloon uh tasua uh and the TCMS we open around 30 stores 49:40 49 minutes, 40 seconds and tomorrow also open around 30 40 stores and going forward sir uh next year you know this oneoff type 49:49 49 minutes, 49 seconds of thing will So we have in our plan I already conveyed roughly 300 cr capex 250 to 300 cr at console. 50:00 50 minutes That's all from me sir. Thanks a lot and all the best. 50:06 50 minutes, 6 seconds Thank you. Next question comes from the line of human with AMC. Please go ahead. 50:14 50 minutes, 14 seconds Good evening team. Thank you for this opportunity. uh first thing I want you to understand uh on the owned. So now 50:22 50 minutes, 22 seconds across the 79 stores what is your experience in terms of uh consumer expect uh acceptance of our uh 50:30 50 minutes, 30 seconds merchandise uh the profile of consumers and uh given that there there might be 50:37 50 minutes, 37 seconds some impact of inflation in the second half. uh so how do you see the impact on uh this brand? 50:46 50 minutes, 46 seconds So old as you know is in a very early phase in a market where there are multiple players between 300 to,000 50:55 50 minutes, 55 seconds stores. Uh we have just started the the journey. So early stage for us to make conclusive sort of uh 51:04 51 minutes, 4 seconds points about it. Uh there are largely two set of customers. One is uh young people who are looking for uh what you 51:12 51 minutes, 12 seconds one could call a disposable fashion fast fashion different names used for it which is uh high fashion but low price. 51:20 51 minutes, 20 seconds The other is simply customers who are looking for reasonable quality at low price which is uh mid to low income uh 51:27 51 minutes, 27 seconds family customers. Both these profiles currently exist. uh we are obviously developing our point of view on where uh 51:36 51 minutes, 36 seconds we want to shift uh our customer to and that's something that's uh part of our overall strategy. Uh but I I wouldn't I 51:44 51 minutes, 44 seconds wouldn't take too much in such a large market with such an early stage of evolution. Uh don't want to sort of 51:52 51 minutes, 52 seconds narrow our uh opportunity at this point of time. 51:58 51 minutes, 58 seconds any impact you see on the demand if uh the inflation in the second half uh leads to some sort of uh price action. 52:07 52 minutes, 7 seconds So we have seen both uh at some level sometimes uh inflation causes downward 52:14 52 minutes, 14 seconds pressure and therefore uh value retailers uh uh gain out of it. At other times it 52:23 52 minutes, 23 seconds leads to lower discretionary demand. As I said, our size of our business compared to the size of the segment is 52:30 52 minutes, 30 seconds so small that I I don't think we will be material beneficiary or bene material uh 52:38 52 minutes, 38 seconds sort of u we won't take uh a significant hint on account of that. We'll have to remain 52:45 52 minutes, 45 seconds cautious in terms of our pricing in this and perhaps be more conservative as far as price increases are concerned. But I 52:53 52 minutes, 53 seconds don't think we'll be able to you know anything that happens in this segment will be reflected in such a small business at this point of time. 53:04 53 minutes, 4 seconds Second on the ethnic category uh just wanted to understand your view on the competition especially from the local or 53:11 53 minutes, 11 seconds uh regional players. Uh is there intense or aggressive competition coming up uh or the competition is uh uh getting down? Just your thoughts on that. 53:24 53 minutes, 24 seconds I think this is a category which has seen fairly large number of players entering 53:31 53 minutes, 31 seconds the space over last I would say 8 to 10 years from mid 2015 16 when e-commerce started to develop it offered 53:40 53 minutes, 40 seconds opportunity for multiple small brands labels manufacturers to put their product uh in last five seven years that 53:47 53 minutes, 47 seconds has further ex sort of uh grown rapidly I don't think new competition is 53:54 53 minutes, 54 seconds entering this space because it's already pretty crowded with very low entry barriers and large number of players. Uh 54:02 54 minutes, 2 seconds I think the challenge is to create a distinctive brand where you can stand out and charge a reasonable premium to be to build a brand around it and which 54:12 54 minutes, 12 seconds is why uh we we we are building the business the way we are building. Uh if your question is about the regular 54:19 54 minutes, 19 seconds women's ethnic wear on the men's ethnic wear the market is uh fairly consolidated there is obviously a larger number of 54:26 54 minutes, 26 seconds smaller players but uh I think uh there the big players have uh taken a more formidable position. 54:36 54 minutes, 36 seconds This last one wanted to understand on the rent. So given uh we we are in an 54:42 54 minutes, 42 seconds inflationary space uh how do you see uh the current rentals and do you see uh 54:51 54 minutes, 51 seconds given that there might be some impact on demand uh do you see then the rentals lowering or remaining at current levels 55:00 55 minutes and would that change uh the store addition uh trajectory for 55:09 55 minutes, 9 seconds See rentals are uh sort of midterm. They don't follow a very short-term phenomena. If the demand compression is 55:17 55 minutes, 17 seconds slightly longer, uh definitely there will be compression on the rental side as well. But if it's a very transient and temporary 55:26 55 minutes, 26 seconds feature, then I I don't think it'll significantly change that trajectory. 55:33 55 minutes, 33 seconds That's it from me. Thank you so much. 55:40 55 minutes, 40 seconds Thank you. Next question comes from the line of Kunal Pia with Dalal and Patcha stock broken limited disco. 55:49 55 minutes, 49 seconds Um yes sir. Uh thank you for the opportunity. Um sir we uh have spoken um 55:56 55 minutes, 56 seconds a lot regards Omni as far as pandaloon's concerned and also u the online businesses in general getting more 56:04 56 minutes, 4 seconds traction but uh could you give some sense on how uh the uh competition is panning up? So are we uh seeing more 56:13 56 minutes, 13 seconds competition even from the other players especially uh on the overall online businesses concerned and also your 56:21 56 minutes, 21 seconds specific comments on the same uh with tomorrow uh because it's more of an online kind of a brand. So how how are you facing uh the competition there? 56:32 56 minutes, 32 seconds Visav uh how soon uh you expect uh the uh profitability in case of tomorrow or to come in in this context. 56:43 56 minutes, 43 seconds So I I I think it's very similar to the question that was asked in context of the ethnic web. Uh there are it's not 56:51 56 minutes, 51 seconds that new online players are coming. I mean online uh players have got established. All the new players who had to come have come in last six seven 56:59 56 minutes, 59 seconds years. There are new players coming in equally. There are older players which fall out. Uh as far as tomorrow business 57:06 57 minutes, 6 seconds concern you've seen consistently we report every quarter the growth numbers. 57:10 57 minutes, 10 seconds Uh we still growing on a full year and a quarterly basis at 30% plus. This is the third consecutive year and about 10 12 57:18 57 minutes, 18 seconds quarters with the exception of one or two. we have grown in excess of 25 30%. 57:23 57 minutes, 23 seconds So we are continuing to see strong trajectory as far as tomorrow business is concerned. Uh this is on the back of 57:30 57 minutes, 30 seconds uh superior execution uh building some of those labels into more stronger brand giving management 57:38 57 minutes, 38 seconds support wherever needed to the founders who had built the business early on. uh and obviously uh providing cap growth 57:45 57 minutes, 45 seconds capital which is really what has driven this. As far as profitability of tomorrow is concerned uh we had 57:53 57 minutes, 53 seconds indicated FI29 as the year in which we expect the tomorrow as a portfolio level sum of all 57:59 57 minutes, 59 seconds brands to become profitable. Uh we still see that journey. uh in the interim we had uh as I mentioned all the growth 58:08 58 minutes, 8 seconds capital is primarily to drive growth of this business so that it's not just profitable it's also substantive and a large business at that point of time. 58:19 58 minutes, 19 seconds Okay. And uh so in in case of tomorrow to get to that profitability uh uh 58:26 58 minutes, 26 seconds target um with current situation wherein we would be having a 500 crores NCD 423 crores uh equity infusion would we be 58:36 58 minutes, 36 seconds requiring more debt to fund this growth or uh the 800 crores of uh cash which we 58:44 58 minutes, 44 seconds would be having should be enough to fund that growth in order to get to a profitability So we we feel the 800 crores is a 58:53 58 minutes, 53 seconds substantial amount of cash on a business which is already on a run rate of 1500 crores. Uh if you look at the losses 59:00 59 minutes that we report on an annual basis close to about 200 crores uh which is annual. 59:05 59 minutes, 5 seconds So we feel that there is enough cash lever to both grow the business and with 59:12 59 minutes, 12 seconds scale also drive profitability uh within the brands and the overall ecosystem. So we feel comfortable with that. 59:21 59 minutes, 21 seconds Okay. And uh so my second question is in in terms of the overall uh uh raw 59:28 59 minutes, 28 seconds materials. So um you you would be obviously having your forward bookings for the coming season. So what is your 59:37 59 minutes, 37 seconds anticipation specifically on the ABFL level? What is the kind of inflation? 59:43 59 minutes, 43 seconds I'm not talking about industry in general but for you per se. What is the inflation which has already kicked in for you for uh the next u um 6 to 7 months? 59:54 59 minutes, 54 seconds I had indicated about 3 to 5% in response to an earlier question. 59:59 59 minutes, 59 seconds Okay. Okay. Thanks sir. Thank you so much. 1:00:05 1 hour, 5 seconds Thank you very much ladies and gentlemen. On behalf of the management we thank all participants for joining us. In case of any further inquiries, you may please get in touch with Mr. 1:00:16 1 hour, 16 seconds Amit Di. You may now disconnect your lines.