Aditya Birla Lifestyle Brands Limited — Q2 FY26

Aditya Birla Lifestyle Brands Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=3mnc308p310 Published: 6 months ago

0:02 2 seconds Ladies and gentlemen, good today and welcome to the second quarter earnings conference call of Aditya Berla Lifestyle Brands Limited. The call will 0:10 10 seconds begin with a brief discussion by the company's management on the Q2 SI26 performance followed by a question and answer session. We have with us today 0:19 19 seconds Mr. Ashish Tikshit managing director ALBBL Mr. Vishak Kumar deputy managing 0:26 26 seconds director and CEO ABLBL Mr. Dhmintra Loda CFO ABL I want to thank the management 0:33 33 seconds team on behalf of all the participants for taking valuable time to be with us. 0:38 38 seconds I must remind you that today's discussion may include certain forward-looking statements and must be viewed therefore in conjunction with the risk that the company faces. Please 0:47 47 seconds restrict your questions to the quarter performance and to strategic questions only. Housekeeping questions can be dealt separately with the IR team. With this I hand the conference over to Mr. 0:57 57 seconds DM Loda. Thank you. Uh over to you Mr. Loda. 1:01 1 minute, 1 second Thank you. Good afternoon everyone. Uh thank you for joining us today. I would like to welcome you all to the quarter 2 1:08 1 minute, 8 seconds FI26 earning call for ATA lifestyle grants limited. As we reflect on the quarter, the operating environment presented a mix of challenges and 1:18 1 minute, 18 seconds opportunities. The early onset of the pujo season provided a healthy boost to our festive demand. However, the GP 1:26 1 minute, 26 seconds transition and localized issue in the east did moderate overall momentum to some extent. In this context, our team 1:34 1 minute, 34 seconds continued to drive focus execution, believing yet another quarter of doubledigit retail like to-life growth for ADLB. 1:43 1 minute, 43 seconds with all our brands performance strongly in this channel. This performance reflects the strength of our brand portfolio, the resilience of our 1:51 1 minute, 51 seconds business model and the rigor of our execution which are now translating into sustained profitable growth even in the dynamic marketing environment. 2:01 2 minutes, 1 second Now moving to the financial performance of our business. ABL has delivered a steady performance in this quarter with 2:07 2 minutes, 7 seconds revenue growing to 4%age Y to rupees 238 cr rupee led by strong retail performance. 2:16 2 minutes, 16 seconds Lifestyle brands grew at 7%age Y while emerging businesses segment saw a decline 2:24 2 minutes, 24 seconds mainly due to Forever 21 revenue in the base. 2:28 2 minutes, 28 seconds While retail remained strong, other channels saw other channels have now been calibrated to a more profitable 2:35 2 minutes, 35 seconds base and are well positioned to deliver strong profitable growth in the coming quarters. 2:41 2 minutes, 41 seconds Consolidated registered a healthy growth of 12%age given by topline momentum in lifestyle brand and continued discipline 2:49 2 minutes, 49 seconds in discounting and cost management in a challenging market backdrop. 2:56 2 minutes, 56 seconds In absolute term, I evida stood at 338 cr rupees compared to 301 cr rupees in the same quarter last year. Evida margin 3:04 3 minutes, 4 seconds expanded by 125 bits moving up from 15.3%age in quarter 225 3:12 3 minutes, 12 seconds to 16.6%age in this quarter reflecting improved operating efficiency. 3:18 3 minutes, 18 seconds Consolidated PT is at 23 cr rupes in this quarter versus a loss of 59 cr rupes in a previous year. In the same 3:25 3 minutes, 25 seconds quarter which had a onetime exceptional loss of 98 cr rupees 3:32 3 minutes, 32 seconds 231 cr rupes up from 18 cr rupees in the previous year same quarter. 3:39 3 minutes, 39 seconds Moving to the first half of the year, ADLB revenues to 3,878 cr rupees up 38 3:46 3 minutes, 46 seconds 3% by rebida grew at 7 percentage in absolute term to rupees 624 cr versus 3:53 3 minutes, 53 seconds 584 cr rupees in H1 last year with margins improving by 50 bits to 15.1%age despite higher advertising spending 4:01 4 minutes, 1 second current year for H1 still at 48. 4:07 4 minutes, 7 seconds During the quarter, we continue to expand our retail divisions uh adding 75 plus new stores in this quarter. Our 4:14 4 minutes, 14 seconds footprint now spans 4.7 million square ft across 785 plus cities and towns with 4:21 4 minutes, 21 seconds a network of around 3,250 stores including 550 plus stores in smaller towns. Our retail presence continue to 4:30 4 minutes, 30 seconds be a powerful growth driver. With the consolidation exercise now complete and a strong foundation in place, we expect 4:38 4 minutes, 38 seconds to see a steady net addition of stores going forward. 4:42 4 minutes, 42 seconds Turning to a lifestyle brands, retail toolite grew at 12% during the quarter reflecting consistent performance across 4:50 4 minutes, 50 seconds all months. This performance builds on the solid momentum of past five quarters where LTL growth has remained very 4:58 4 minutes, 58 seconds strong. The growth was fueled by a combination of product portfolio growth, impactful marketing campaigns and continued announcement to instore 5:07 5 minutes, 7 seconds experience. All of which deepened consumer engagement and standard brand salience. Revenue for the quarter rose 5:14 5 minutes, 14 seconds 7%age worldwide to rupes 1,754 cr with ana margin of 19.3%age. 5:22 5 minutes, 22 seconds The portfolio further expanded is present with 60 plus growth store addition during the period while retail 5:29 5 minutes, 29 seconds remained strong. Secondary growth across other channel also continued to perform well led by double digit like growth in 5:37 5 minutes, 37 seconds the departmental store business. Primary fields was temporarily impacted in September due to the GST transition. We 5:45 5 minutes, 45 seconds expect this segment to report strong growth in the coming quarters. 5:50 5 minutes, 50 seconds Our emerging business portfolio which includes vanishing energ 5:59 5 minutes, 59 seconds also delivered a robust 11% like growth during the quarter. The strong retail momentum reflects the growth of strength 6:07 6 minutes, 7 seconds of our brands and effectiveness of our product strategy. The overall settlement revenue were impacted by closure of 6:14 6 minutes, 14 seconds forever 21 which was part of the BCF numbers. 6:18 6 minutes, 18 seconds Profitability improved by 150 bit mainly due to uh the lower losses in revenue business. 6:25 6 minutes, 25 seconds Together this position by emerging business portfolio will prove profitable and scalable growth in the coming quarters. 6:33 6 minutes, 33 seconds In summary, despite a measured consumer environment, we delivered steady growth, improved profitability, and broadened 6:42 6 minutes, 42 seconds out audience across both established and emerging markets. All lifestyle brands continue to demonstrate strong growth while the emerging businesses well 6:50 6 minutes, 50 seconds positioned to become of profitable and meaningful growth in the coming quarters. With a robust store network 6:59 6 minutes, 59 seconds and enhanced product portfolio and continued digitization across operations and supply chain, we are well equipped to capitalize on future opportunities. 7:09 7 minutes, 9 seconds As we expand our product portfolio through innovation and our distribution into high potential market, we remain confident in our ability to sustain 7:18 7 minutes, 18 seconds profitable growth and create long-term value for all our stakeholders. We are now open to questions. Thank you. 7:28 7 minutes, 28 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If 7:37 7 minutes, 37 seconds you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 7:44 7 minutes, 44 seconds and gentlemen, we will wait for a moment while the question queue assembles. 7:51 7 minutes, 51 seconds The first question comes from the line of Gorov Joani with GM Financial. Please go ahead. 7:57 7 minutes, 57 seconds Uh hi uh thank you for taking my question. Uh so my first question is with regards to the emerging business. 8:02 8 minutes, 2 seconds If you can quantify the impact of forever 21 in the base quarter so that will help us to appreciate the growth for the remaining of the portfolio. 8:12 8 minutes, 12 seconds Yeah. Hi Gor. So uh there is both topline impact because of 21 and bottom 8:19 8 minutes, 19 seconds line impact. Uh maybe the overall growth would have been better by 1% if the forever 21 business was not considered. 8:28 8 minutes, 28 seconds Of course the maybe the impact is also there and that is also there in both the base and in uh this year that loss is not there. 8:37 8 minutes, 37 seconds Sure. Uh so uh if I understand it right you know given that if there is a 1% default improvement uh would that imply 8:44 8 minutes, 44 seconds you know that the rest of the business uh would have also not grown uh very significantly in that context. I mean because uh if you see the overall growth 8:52 8 minutes, 52 seconds rates in that sense is it uh it's it's declared by 10% on a y basis. Yeah, I it's a fair conclusion. I think there 9:01 9 minutes, 1 second are two three uh points that I would like to make. Uh Gorov, uh one is that look if you were to look at the like 9:08 9 minutes, 8 seconds forl like sale and the emerging businesses uh all of them together had double digit like to like okay so 9:16 9 minutes, 16 seconds between the innerware business, Reebok business, American Eagle business, I think our weighted average was some 11 12% of like to like sales. Okay. uh 9:25 9 minutes, 25 seconds there was a couple of things which impacted our overall business. One is the uh transition with GST where a lot of our wholesale partners had to 9:34 9 minutes, 34 seconds reconfigure their purchase order systems, IT systems and so on. So about half of September in that sense was lost 9:41 9 minutes, 41 seconds for large part of our business. In businesses with smaller base it impacts a little more. So it it had that it had 9:48 9 minutes, 48 seconds that effect as well. Uh uh there is also specifically in um in Reebok the the 9:55 9 minutes, 55 seconds issue of you know uh uh the the pipeline inventory we had uh reduced the inventory in some of the exclusive 10:02 10 minutes, 2 seconds stores which buy and sell stores. So that also shows the impact of that in the way we recognize revenue in the system. So that that's broadly the the 10:12 10 minutes, 12 seconds reason uh which is why the uh 11 12% like to like doesn't translate to a similar growth in the overall business. 10:21 10 minutes, 21 seconds Okay. Sure. Sure. That helps. Yeah. And lastly, uh just one bookkeeping question I would say in the sense if you see the 10:28 10 minutes, 28 seconds deprecation and the interest amount, uh both has seen a quite increase on a sequential basis. Uh I mean if you see 10:36 10 minutes, 36 seconds the deprecation has increased from 173 odd crores to 209 odd crores in two and likewise the interest has also gone up. 10:45 10 minutes, 45 seconds So if you can help us out the reason for that. So goro uh you know these are the new additions and stores and whatever 10:53 10 minutes, 53 seconds leases we sign for the new stores and I have to consider this as part of the depreciation and create the lead 11:00 11 minutes liability that is the impact otherwise in finance terms the finance cost has come down because you know we are effectively manage our borings supported by the interest rate reduction. 11:12 11 minutes, 12 seconds Uh sure. So sir at least on the reported basis can we consider this as a uh a normalized number that we can take ahead for depreciation and interest? 11:23 11 minutes, 23 seconds Yeah. 11:24 11 minutes, 24 seconds Uh right now yes but you know let us see how H2 pan out because you know generally H2 for this business is very 11:31 11 minutes, 31 seconds good. So the finance cost should come down. 11:36 11 minutes, 36 seconds Yeah. Okay. Okay sir. Thank you. That's all. 11:42 11 minutes, 42 seconds Thank you. Next question comes from the line of Archa Menon with Morgan Stanley. Please go ahead. 11:49 11 minutes, 49 seconds Hi, thank you so much for the opportunity. Uh just continuing from the earlier question on the emerging businesses. Uh so when we look at the 11:58 11 minutes, 58 seconds quarters ahead with you uh what will be the impact of Forever 21 um in the base now? 12:07 12 minutes, 7 seconds uh not too much it won't be very material on u on the base uh you know we had started scaling down F21 last year 12:15 12 minutes, 15 seconds itself from Q3 so uh there would be a uh there would be some business impact 12:22 12 minutes, 22 seconds maybe for Q3 as well but by Q4 it would be insignificant I can maybe separately I can give you 12:30 12 minutes, 30 seconds exact numbers but all I can say is um it's scaling down even in last year's base it would continue to reduce. 12:38 12 minutes, 38 seconds Understood. And on Reebok, um what is your customer phase growth like at an overall brand level and how should we be 12:46 12 minutes, 46 seconds again thinking about some of the pipeline and energy related uh challenges for the coming quarter? 12:52 12 minutes, 52 seconds No, thanks for asking that. Uh I think uh 9% was our uh same store growth in uh in retail stores. In department stores, 13:00 13 minutes it was 12%. Uh so I think at a consumer level it would have been an overall aggregated 10% plus uh overall growth. 13:09 13 minutes, 9 seconds Okay. Uh so uh in in in that sense the brand is on a on a nice uh steady growth path. A lot of the uh sourcing uh uh 13:19 13 minutes, 19 seconds issues around BIS all of that have been uh you know streamlined and and it's it's on a good growth path. Lot of stores getting added as well. I think we 13:27 13 minutes, 27 seconds added some 20 odd stores. So all of that should uh should keep building on the momentum for the brand. 13:35 13 minutes, 35 seconds Got it. So again when we look at the quarters ahead, would it be fair to assume that um this customer level growth also gets translated into reported revenues in the coming quarter? 13:46 13 minutes, 46 seconds I mean I I would like to believe so I I can't say the definitiveness but I would like to believe that yes uh because this uh primary to secondary is a uh is not a 13:56 13 minutes, 56 seconds continuous thing. So uh you know you don't keep reducing the inventory in the stores. So just to give you a sense you know in all our other brands uh Archa we 14:05 14 minutes, 5 seconds we run a uh automatic replenishment system software. Uh we introduced that in Reebok uh last quarter. Okay or last 14:15 14 minutes, 15 seconds to last quarter but most of the impact was in last quarter. Uh the software also in that sense sharpens the inventory in each store. So it that did 14:24 14 minutes, 24 seconds result in um sharpening of the overall inventory levels in every store. That streamlining is pretty much done. 14:32 14 minutes, 32 seconds Understood. Uh very clear. Uh just uh lastly on the GST impact uh for ABL as a 14:39 14 minutes, 39 seconds whole um how has the portfolio been impacted? I mean what has been the percentage of the portfolio where you've had to take price changes and how would you sort of address it for that? 14:50 14 minutes, 50 seconds There are two parts. One is of course the immediate impact which we saw in Q2 which was more to do with the wholesale businesses etc. the transition impact 14:58 14 minutes, 58 seconds waiting for IT configurations purchase orders etc that is behind us. Okay. So now it's more about the uh how consumer 15:07 15 minutes, 7 seconds takes on the revised prices. So there are we as far as we are concerned we u uh wherever there are uh reductions we 15:15 15 minutes, 15 seconds would pass that on to consumer wherever there are increases we would do the same accordingly. So it it now remains to be seen how consumers uh respond to this. A 15:24 15 minutes, 24 seconds good test of that would be in the wedding season now where I know a lot of our suits and blazers and all are at play right now. So we'll have to see 15:32 15 minutes, 32 seconds that part uh playing out in the next few quarters. 15:36 15 minutes, 36 seconds Understood. I just last question anything you'd like to share um you know in terms of the demand trends that you've seen during the festive uh visual 15:44 15 minutes, 44 seconds the festive last quarter and anything any early signs in October and November for the festival 15:51 15 minutes, 51 seconds early days uh I think it was a you would have came through across the industry it was a it was an okay Diwali and we will 15:58 15 minutes, 58 seconds have to now see how the wedding season pans out right uh it's uh if you go by the calendar it should be a decent and 16:07 16 minutes, 7 seconds uh wedding season. So let's see u u it's so far in line with market trends. So let's see how that pans out over the next few weeks. 16:18 16 minutes, 18 seconds Understood. Thank you so much. Thanks Asha. 16:23 16 minutes, 23 seconds Thank you. Next question comes from the line of Pasa with Aendas Spark Institutional Equities. Please go ahead. 16:30 16 minutes, 30 seconds Uh hi Vashad. Thanks for the opportunity. Uh uh this quarter was slightly a complicated one for industry 16:38 16 minutes, 38 seconds in terms of many signals got jumbled up uh leuja uh but uh at the same time real estate disruption and then extended 16:45 16 minutes, 45 seconds monsoons. So if you remove all the signals uh how are you reading consumer sentiment and I'm not asking only for 16:53 16 minutes, 53 seconds this month or this quarter because a lot of uh uh impetus from government has been put in to revive this. Are you seeing that uh at the broader level? 17:04 17 minutes, 4 seconds Look uh GST le thing we'll have to see how that pans out. Okay, we'll have to you know it's it's been a it's very early days to see how that stands out 17:12 17 minutes, 12 seconds because uh in peak Diwali season it's hard to figure out what was the impact. 17:17 17 minutes, 17 seconds Also you know when there is an early Diwali you have to it's a lot of effort to separate how much of it was Diwali impact versus how much of it was wedding 17:26 17 minutes, 26 seconds impact. So you're right. It is it is getting more and more complex to decifer this. Uh I can only say that uh you know 17:34 17 minutes, 34 seconds so one of the indexes for us is the suit sale uh suits and taser sale that we do uh which which has now you know so a lot 17:43 17 minutes, 43 seconds of Diwali business. Last year would have had Diwali and wedding. This year was probably more Diwali less wedding. So we'll have to see if if November, 17:52 17 minutes, 52 seconds December pan out uh true to their wedding dates, then u then you would be able to say that yes, some of it worked out. We'll have to wait for that. But in 18:01 18 minutes, 1 second general, if you're asking look uh has there been an overall uh greater consumption in the in the market? I would I would say not yet uh visible. 18:14 18 minutes, 14 seconds Yeah. So there were two more interventions which government made before GST uh which was uh at monetary 18:22 18 minutes, 22 seconds policy easing level and then uh income tax cut level. Uh so what I was trying to understand that is it safer to say 18:30 18 minutes, 30 seconds that the first two measures have still not surfaced in terms of increased demand because one of the national 18:37 18 minutes, 37 seconds chains said that they saw at least exuberance in terms of footfalls picking up and they called out if I remember 18:45 18 minutes, 45 seconds correctly that one of the best Diwali in last three years in terms of footfalls at least uh conversion they also did not see that as happening as much. So I'm 18:54 18 minutes, 54 seconds just trying to see at a broader level should we say that the trends are changing or it is it is and then this is not as I said not GST led only but at 19:02 19 minutes, 2 seconds the all those measures which happened before as well. 19:06 19 minutes, 6 seconds So let me say this one clear indicator in the last couple of quarters is very strong growth in smalltown India and uh 19:14 19 minutes, 14 seconds you know that is something which is uh uh which we saw pages in Q1 and we we also saw that uh in fact it was a 19:22 19 minutes, 22 seconds stronger like to like in small towns than even our very good like to like in uh in urban centers. So that is 19:28 19 minutes, 28 seconds something which I can safely say yes um this this had an impact. Other than that like I said I want to be a little guarded about Diwali because I need to 19:37 19 minutes, 37 seconds make sure how much of it was Diwali versus how much of it is wedding and once that uh result comes out I'll be able to say with more confidence that 19:45 19 minutes, 45 seconds yes Diwali worked well. So we'll have to see that result panning out u over the next few weeks. Actually next six weeks 19:53 19 minutes, 53 seconds we'll get a good sense of that. Uh I would say yeah it was a decent Diwali but how good was it? I'll be able to 20:00 20 minutes tell you uh only once we know how well the wedding season goes. 20:04 20 minutes, 4 seconds Yeah. Uh and any regional or uh so you you spoke about tier 2, tier three, but any regional nuances in terms of 20:12 20 minutes, 12 seconds northeast, southwest, any divergence there? 20:16 20 minutes, 16 seconds Um uh yes and no in the sense that yes, north was fairly strong this time. Okay. 20:22 20 minutes, 22 seconds So it did well. East was going well till the um the flood situation happened in in some parts of West Bengal also some 20:31 20 minutes, 31 seconds of those disturbances in Gojhati and some parts of northeast that also had a had an adverse impact. So it's been in 20:38 20 minutes, 38 seconds that sense a bit of a mixed bag. So I I but beyond that no other trends changes uh at a regional level. 20:47 20 minutes, 47 seconds Thanks this is very helpful and all the best for coming quarter. Thank you. 20:53 20 minutes, 53 seconds Thank you. Next question comes on the line of Shria Bahiti with Anadwati Institution Equities. Please go ahead. 21:01 21 minutes, 1 second Uh hello sir. Uh sir, so uh I just wanted to ask about the how like if we 21:07 21 minutes, 7 seconds see Navarati were this time early. So what was if you look at the festive impact. So so how if you could just give 21:16 21 minutes, 16 seconds a sense of how did uh navatri impacted the Q2 sales for us and also I wanted to understand this 120 bit margin 21:25 21 minutes, 25 seconds expansion. So this was led by operating leverage but did it also help the impact of gross margin expansion in lifestyle and emerging brand segment? 21:36 21 minutes, 36 seconds Okay. So two questions. One is you asked on Nakatri. I think Natri continued for us in the same pace as the overall like 21:45 21 minutes, 45 seconds has been for the business. So So yes, that's the way it was. But like I was explaining to pages earlier. I think we'll have to hold for a little more to 21:53 21 minutes, 53 seconds see uh you know the impact of how the wedding season uh goes. So u yeah. So that that's one part. U Shri um you had 22:02 22 minutes, 2 seconds another question that you had asked. Uh yes sir sir it's the margin expansion. 22:10 22 minutes, 10 seconds Yeah. So it was a combination of multiple things. A lot of cost reduction initiatives Shria which went through also as you know when you have u strong 22:18 22 minutes, 18 seconds like for likes you're you get uh rent leverage. So you you would see that also impacting because most of our rent is 22:26 22 minutes, 26 seconds with fixed costs or whichever is the company owned stores etc. the the fixed costs on rent get spread across larger sales base. So that also impacts. Plus 22:35 22 minutes, 35 seconds there have been multiple cost reduction uh program initiatives which have also helped to improve the margins both in the emerging business as well as in the in the lifestyle business. 22:45 22 minutes, 45 seconds Okay sir and sir also uh if you could tell what is the revenue growth for emerging brands excluding the rebok business. 22:55 22 minutes, 55 seconds So I I thought I'd just explain that to Gorav. Uh sh um uh do you want me to repeat that? 23:05 23 minutes, 5 seconds So, so basically you said that 9% FSG is for the retail business for the rebok segment. 23:13 23 minutes, 13 seconds Yeah. Yeah. So, uh so if you look at it, it's broadly uh outside of Forever 21 which we uh phased out. There are three 23:22 23 minutes, 22 seconds large pieces. Uh there is u inware, there is Reebok and there is um uh American Eagle. uh I I also tried 23:31 23 minutes, 31 seconds explaining to Goro that uh you know the overall 4% ADLBL would have been a little more than 5% if it not been for F21. 23:41 23 minutes, 41 seconds So that is understood. I just wanted to understand like how did innerware and American Eagle uh like perform. 23:49 23 minutes, 49 seconds So uh they were you know again like for like all WG growth uh businesses okay uh 23:56 23 minutes, 56 seconds but also similar to uh many other parts of business which are impacted by wholesale. So there was the impact of uh 24:04 24 minutes, 4 seconds you know in all our calculations now we've done a July plus August separately and a separate September separately. So there was impact of all of these 24:11 24 minutes, 11 seconds transitions which which impacted this also uh in specifically in the case of American Eagle there was also some 24:19 24 minutes, 19 seconds network rationalization which also impacted but without that that also that brand was also near I think 9 or 10% 24:26 24 minutes, 26 seconds like for like um on American Eagle as well. Okay sir. And sir, yes sir, understood. 24:34 24 minutes, 34 seconds And so just one last question on s this working capital increase so it must be due to the inventory build up we did for festival wedding season. 24:45 24 minutes, 45 seconds So if we have to compare it to uh last year September 24. 24:51 24 minutes, 51 seconds So sir is it mainly due to seasonal and this is what is leading to increase in the date also. 24:57 24 minutes, 57 seconds So yeah you're right. uh the um uh season is earlier this time and you know when you're planning you don't know how 25:04 25 minutes, 4 seconds much uh consumer will respond early so you'd rather be safer when you're planning. So a lot of our planning 25:11 25 minutes, 11 seconds horizon will be built around u uh early uh season inwards. So we did that. So that's largely the reason for the delta 25:20 25 minutes, 20 seconds in working capital and you'll see that pretty much by the end of this quarter that would be back to the same levels pretty much except for the uh growth and 25:28 25 minutes, 28 seconds expansion in network which would carry more inventory. Um uh there was also this additional factor of uh some of the 25:36 25 minutes, 36 seconds supplies from Bangladesh were getting a little uncertain. So we had to make sure that we and lot of winter wear uh from there. So we want to make sure that we 25:44 25 minutes, 44 seconds took that in early to to prevent any um business loss uh when the when the winter season starts. 25:52 25 minutes, 52 seconds Okay. So this will this will uh be uh go down by uh the end of um FI26 and debt levels will also go down. 26:02 26 minutes, 2 seconds Uh JP you want to answer on the debt level? I think on inventory I can say at least. 26:07 26 minutes, 7 seconds Yeah. So here yes definitely by end of F2C that level should go down from this number. 26:14 26 minutes, 14 seconds So if you could quantify we don't quantify number but this is ind directionally it should go down uh from this number. 26:23 26 minutes, 23 seconds Okay. Thank you. Thanks. 26:28 26 minutes, 28 seconds Thank you. Next question comes on the line of Danchu Pansel with MK Global. Please go ahead. 26:36 26 minutes, 36 seconds Hi Vishak, thanks for taking my question. Uh Vishak, you have discussed about it uh in previous questions. Uh just for better understanding. Uh this 26:45 26 minutes, 45 seconds time around uh the underlying uh consumer level growth trend has been about 10% in your uh say wholesale 26:53 26 minutes, 53 seconds businesses uh uh both in lifestyle and emerging segments. Uh however the reported numbers are lower uh because of 27:01 27 minutes, 1 second primary building getting affected because of these two conditions. uh but now that the channel is lighter uh do we 27:09 27 minutes, 9 seconds expect uh uh like this impact to sort of come back into uh higher growth uh in uh 27:17 27 minutes, 17 seconds so for better uh understanding so there has been a 20% impact right so 10% is the consumer level growth and we have 27:26 27 minutes, 26 seconds reported minus 10 so do you expect this 20 to add on to that 10% underlying growth trend in coming quarters is this 27:33 27 minutes, 33 seconds the right way to look at So Devanchu just one extra factor I want to bring in uh which I hadn't shared 27:41 27 minutes, 41 seconds with you earlier but uh you know which also impacted our overall growth in last quarter which is a very aggressive target that we took on store 27:48 27 minutes, 48 seconds renovations. So just to give you a sense we did 65 store renovations in just the last quarter. A typical renovation takes 27:57 27 minutes, 57 seconds about 45 to 60 days. So it's almost like some 130 store months which are not there during the during the quarter and 28:06 28 minutes, 6 seconds that also has a as you can do the calculation that also has an impact on your overall growth that is uh however 28:13 28 minutes, 13 seconds something that we will continue for the next few quarters. We we want to upgrade more and more of our stores also in a lot of stores we are making them larger 28:22 28 minutes, 22 seconds making them uh you know uh wherever uh agreements are um coming to an end we are taking larger spaces in the same 28:29 28 minutes, 29 seconds locations etc. So all of that is however um uh going to reflect in some flux in 28:36 28 minutes, 36 seconds the business in terms of overall retail growth. But to to answer a larger question around should in the coming 28:43 28 minutes, 43 seconds quarters uh uh more and more of like tol like sales and secondary sales translate to overall growth. A simple answer is 28:50 28 minutes, 50 seconds yes. There will be ups and downs across various quarters depending on seasons, weddings, all of that. But by and large uh directionally and that's what we've 28:58 28 minutes, 58 seconds said u in uh in earlier uh communication as well. I think uh double digit growth is something that we should expect from these brands in the in the medium term. 29:07 29 minutes, 7 seconds Uh give or take few quarters plus or minus but yeah by and large that should be the direction. 29:14 29 minutes, 14 seconds And these 130 stores that you're talking about 65 stores. Yeah. 29:23 29 minutes, 23 seconds 65. Yeah. 29:25 29 minutes, 25 seconds Yeah. So I was asking that company own stores or stores. 29:31 29 minutes, 31 seconds Yeah. So these were company owned stores. There would be some franchisee stores also. They would also renovate. 29:36 29 minutes, 36 seconds Uh so that is a work in pro progress for us. When you have a 3,000 store kind of a network uh and typically we renovate 29:44 29 minutes, 44 seconds once every 5 to 6 years. So there is that process of u uh you know we've also created a a lot of new exciting retail 29:53 29 minutes, 53 seconds identities across our brands which also reflect the way consumers like to shop today. So that is something which we go through that process and we've done a 30:01 30 minutes, 1 second lot of heavy lifting around that in the last few quarters. Uh it's it's something which which also results uh in stronger likes for likes as you do the 30:10 30 minutes, 10 seconds as you do the exercise. So um yeah so that's that's been uh that's been keeping us uh on these numbers. 30:19 30 minutes, 19 seconds So Vish my question was more into the wholesale channel the e-commerce channel for lifestyle businesses and uh 30:28 30 minutes, 28 seconds the emerging segments right so where you mentioned there is a gap between primary and secondary so for these channels I was just checking whether the impact 30:37 30 minutes, 37 seconds that has been there to the tune of 10 to 20% in terms of growth should that sort of add add into the underlying growth 30:45 30 minutes, 45 seconds trend right which is yeah fair point I think Sure. No, I think that's a fair point. As long as we continue doing these kind of secondary sales, that should translate to primary sales in quarters. Absolutely. 30:56 30 minutes, 56 seconds Okay. Okay. Yeah. That's a fair question. 31:00 31 minutes Yeah. Second, uh Vishhat, I wanted to understand you have been mentioning that there is a steady demand up across 31:07 31 minutes, 7 seconds non-metro markets, right? So and here I guess uh quite uh some time back we sort 31:14 31 minutes, 14 seconds of indicated that these markets the experience was not so great u uh from um 31:21 31 minutes, 21 seconds the below five tier two markets the experience were not so great. Uh so what has actually uh helped to turn around 31:29 31 minutes, 29 seconds these markets uh because from a competition perspective uh we are seeing some challenges with some of the uh 31:36 31 minutes, 36 seconds value retailers who are indicating that uh the industry at such is sort of not uh growing to the extent it was growing 31:44 31 minutes, 44 seconds but uh it's certain to see that from brand portfolio you're getting this amount of production. So if you can just close some line there. 31:53 31 minutes, 53 seconds Yeah. So yeah, you're right. Uh uh we define uh small towns as uh uh tier 4 32:00 32 minutes kind of towns. These are uh one one and a half lakh population uh uh uh towns and you're right they have been doing well for us. I would say combination of 32:09 32 minutes, 9 seconds two things. One yes uh market itself has picked up. Uh actually it was uh if you saw these uh stores these markets 3 years back they were doing very well. 32:20 32 minutes, 20 seconds Last maybe uh maybe before this quarter a few four five quarters were bad for smaller towns seems to be coming back. I 32:28 32 minutes, 28 seconds also think we have sharpened our ways of working in these towns. Our methods of doing regional assortments our methods 32:34 32 minutes, 34 seconds of activating regionally locally etc. I think we've gotten better and better at uh at managing these uh this format of stores. So it's a combination of both. 32:44 32 minutes, 44 seconds The fact that there have been some tailwinds in the market and the fact that our ability to manage these stores has has improved over time. So there's been that learning curve as well. 32:55 32 minutes, 55 seconds Understood. Uh last one bookkeeping question. Uh so I have I'm noticing that there is a significant reduction in the 33:03 33 minutes, 3 seconds rent expense reported by the company uh which is sort of moving towards depreciation and higher uh interest 33:11 33 minutes, 11 seconds cost. So is there some change in model because rent was typically the commission that we used to pay to franchises. Uh so are we sort of 33:19 33 minutes, 19 seconds converting some of our franchise stores to company own stores? Uh how should we see this because uh there is a significant reduction in in the rent expense. 33:30 33 minutes, 30 seconds Yeah. So you're right. uh you know in one or two brands of ours which Vishak explained to you in last quarter we uh 33:39 33 minutes, 39 seconds changed the model and now we are coming back. So I think you know our business model continues to be uh franchisedriven 33:47 33 minutes, 47 seconds uh growth except you know few cocoa stores also but whatever actions we have taken that is the impact of you know the 33:54 33 minutes, 54 seconds variable rent which we are seeing in the public result. 33:59 33 minutes, 59 seconds Can you explain as in what exactly has happened in which brand uh you can help us better appreciate that transition? 34:09 34 minutes, 9 seconds Sorry, can you repeat that Danchu? 34:12 34 minutes, 12 seconds I'm saying can you help us better understand what exactly uh has the change happened and in which the change 34:19 34 minutes, 19 seconds has happened? Look two things uh Danchu uh one is you must recognize that in the way Indas uh you know handles accounting 34:28 34 minutes, 28 seconds of depreciation uh it's frontloaded on dep so as you put up new stores okay you would see a higher charge in early years 34:36 34 minutes, 36 seconds while as you close earlier stores so that delta you would see in the in the eit last year to this year probably you're referring to that second piece 34:44 34 minutes, 44 seconds which JB is referring to is a few stores which would have got converted from franchisee to a coco cooperation. These are tactical things that you would do 34:52 34 minutes, 52 seconds time to time uh depending on you know if there are stores where a franchisee doesn't want to continue the business he's moving abroad he's trying to do 35:00 35 minutes something else or it's it's not viable enough for him etc. So there are time to time you would then take on some of these so we would have done that as 35:08 35 minutes, 8 seconds well. So it's a combination of these two things which should have resulted the launch in this uh sure but just the quantum was big 35:16 35 minutes, 16 seconds right so we were at a run of 200 so now we are at 150 so this suggest that there is a significant chunk that uh this 35:25 35 minutes, 25 seconds conversion has happened if I'm reading this correctly uh no I think you'll have to you know the MIS numbers versus India's numbers 35:34 35 minutes, 34 seconds we'll have to give you a bridge to reconcile probably do Right. 35:38 35 minutes, 38 seconds Only one versus 150 cr 13 cr delta not 200 going down to 150. 35:46 35 minutes, 46 seconds So I don't know you I hope you are referring from a quarterly perspective. 35:51 35 minutes, 51 seconds So in Q1 it was 190 which has moved to 150 but on a y basis it is 30. Yeah. So 163 to 150. Yeah. 36:00 36 minutes Yeah. Okay. Sure. 36:08 36 minutes, 8 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Kunal Jeff. 36:18 36 minutes, 18 seconds Please go ahead. 36:20 36 minutes, 20 seconds Uh hi thank you for the opportunity. Uh most of my questions have been answered actually but one question I had was on 36:26 36 minutes, 26 seconds this entire GST transition. uh so uh has it created any uh let's say uh troubles for you in the portfolio especially 36:35 36 minutes, 35 seconds around price points of let's say 2500 because there's a very sharp jump from 5 to 18 right uh so so any any uh impact 36:43 36 minutes, 43 seconds that we should expect in the long let's say in the next few quarters on margins because of that maybe you have to take down prices of products which are on those 36:51 36 minutes, 51 seconds not gone from 5 to 18 it's gone from 12 to 18 so there are what I mean is uh the delta process 36:58 36 minutes, 58 seconds threshold is now very steep right so two three things one is like I explained earlier the transition challenge we had to go through 37:07 37 minutes, 7 seconds especially when you're dealing with wholesale partners purchase order systems all of that you have to deal with I think that's behind us we also had to do a lot of repricing in front 37:15 37 minutes, 15 seconds end to to transparently pass on the prices to consumers etc that's also been done and that's been executed now as we 37:23 37 minutes, 23 seconds move ahead it is about how well do consumers accept these uh prices wherever the prices have gone down how 37:30 37 minutes, 30 seconds how much demand goes up because of that I think there is also another dimension of like you rightly said uh uh there is 37:38 37 minutes, 38 seconds a very steep delta from when you go up above 2500 technically actually 2625 so when you go up from that uh it suddenly 37:47 37 minutes, 47 seconds moves from 5 to 18 uh product managers pricing managers have to get uh more and more of products within that 5% GST so 37:56 37 minutes, 56 seconds some of those are things you do and yet large part of our um suits and blazer wedding business would now be a 18%. So 38:04 38 minutes, 4 seconds there would be a 6% delta in that sort of business. We'll have to see how consumers respond to it. 38:11 38 minutes, 11 seconds Understood. Understood. Uh but let's say no you know fundamental let's say reduction in pricing that you have to take for anything which is priced 38:19 38 minutes, 19 seconds between let's say 2500 and 3500 because suddenly it becomes a bit more uncompetitive. Uh yeah but you know no 38:27 38 minutes, 27 seconds uh kunal you win some you lose some on these things uh there are parts of business where uh you should also expect that uh you know the entire,000 to 2500 38:37 38 minutes, 37 seconds uh where it has gone down from 12 to 5 should also for each of our brands give those commensurate benefits. So yeah you 38:44 38 minutes, 44 seconds know pricing cannot be completely formulate you'll also have to uh build it with what what consumers would expect from you in your brand. So I think it's fine. I think we should do all that. 38:56 38 minutes, 56 seconds Understood. Understood. Uh that's clear. 38:58 38 minutes, 58 seconds Second is on the uh so we had quite a bit of discussion on the growth of emerging brands. Just wanted to check uh 39:06 39 minutes, 6 seconds how do you expect profitability of this portfolio to shape up uh because now we don't have that forever 21 uh but we haven't seen any meaningful uh 39:13 39 minutes, 13 seconds improvement uh on the profitability front. uh I know two of the three parts of this portfolio are actually profitable but how do you expect the 39:21 39 minutes, 21 seconds overall portfolio to move let's say in a year or so from now yeah so we should keep getting better and better and yet I do want to tell you 39:30 39 minutes, 30 seconds that uh you know at least in the innerware side of business we'll continue to invest for growth and that is something which is going to be very 39:37 39 minutes, 37 seconds important part of our overall play in the portfolio and we will grow very aggressively so in in the order of 39:45 39 minutes, 45 seconds priority there would be a lot of impetus for growth. Of course, as we keep getting uh benefits of skill, benefits of leverage, we'll keep getting more and 39:53 39 minutes, 53 seconds more efficient and uh profitability will keep improving. So, directionally you should start seeing that. Uh 40:01 40 minutes, 1 second and yet I do want to say that this is the part of business where there is a lot of headroom for growth very very you know almost exponential headroom for 40:08 40 minutes, 8 seconds growth and we have to recognize that as well. 40:12 40 minutes, 12 seconds Understood. Understood. Very clear. Uh yeah that that's all from my thanks so much. 40:20 40 minutes, 20 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Samir Gupta with please go ahead. 40:30 40 minutes, 30 seconds Hi uh am I audible? Yes Samir. Hey hey hey good evening everyone. 40:35 40 minutes, 35 seconds Thanks for taking my question. Sorry about the goof up here during the call. 40:39 40 minutes, 39 seconds Uh so first question is on inaware. Now uh the numbers that I'm looking at uh I assume there has been a large decline in 40:48 40 minutes, 48 seconds this quarter. Uh there could I mean you already alluded that GST transitions could have led to but just wondering I 40:55 40 minutes, 55 seconds mean uh for a category which is largely under 2,500 rupees why should a GST transition really affect uh this 41:03 41 minutes, 3 seconds category? So just a number what kind of a decline have we seen in anywhere? Uh uh uh if you could answer that. No but 41:11 41 minutes, 11 seconds uh kunal uh anything which is above thousand the GSP rates have changed so uh we have to recognize that uh but also 41:21 41 minutes, 21 seconds uh you know it's not just about percentages etc. There is a uh there is a system development transition 41:29 41 minutes, 29 seconds challenge that every business would have gone through. Uh whether it's your distributors, whether it's your key accounts, e-commerce partners, a whole 41:37 41 minutes, 37 seconds lot of changes to be made into the uh into their uh ordering systems which is frankly a fairly timeconuming process 41:45 41 minutes, 45 seconds for any actually even for small size organizations not only for large organizations for everybody. there would have been the challenge of going through 41:52 41 minutes, 52 seconds that regardless of whatever the um whether you've increased decreased or you know so the percentage is not so 42:01 42 minutes, 1 second much the issue as it is the the administrative part of going through the transition okay but uh let's say uh I would still 42:10 42 minutes, 10 seconds assume that large part of will be below thousand only uh at least at the final price sale uh uh would that transition 42:18 42 minutes, 18 seconds then impact this part of the sale also Uh yes uh two things one is that uh we also do a fair bit of at leisure okay uh 42:27 42 minutes, 27 seconds which is all um about thousand a lot of it is about th00and not all but a lot of it is about thousand a lot of lingery 42:34 42 minutes, 34 seconds would come at thousand plus okay uh then uh we also send to wholesale in 42:42 42 minutes, 42 seconds September the winterware first dispatches which is all about in in uh definitely about thousand and in many 42:49 42 minutes, 49 seconds cases about 2500 as well. So all of those would would impact uh Suni. 42:55 42 minutes, 55 seconds Got it. Got it. Uh so see broadly I wanted to understand is that among the three emer emerging business segments 43:03 43 minutes, 3 seconds that you have innerware is a segment which has been struggling for some time. 43:08 43 minutes, 8 seconds Uh lifestyle brands have come back others are performing but this segment continues to be under pressure. one the 43:15 43 minutes, 15 seconds latest quarter if you just adjust for the GST noise uh uh is there any sign of improvement and two what is the path to 43:24 43 minutes, 24 seconds both recovery here and profitability here. 43:29 43 minutes, 29 seconds So question uh three four data points to you one is that you know across our 43:36 43 minutes, 36 seconds network um across our brands and formats the highest like for like sales was in 43:42 43 minutes, 42 seconds in aare regard. So we have some 110 115 exclusive innerware stores which should 43:49 43 minutes, 49 seconds have had an average 20 plus% like for like. So that tells you the strength of the brand with consumers which is there. 43:58 43 minutes, 58 seconds uh from a wholesale perspective we are also going through you know I I think we've said in the last few quarters also we are also uh doing a lot of inventory 44:06 44 minutes, 6 seconds corrections bringing down our overall base of inventory etc which has had its challenges beyond what I said to you about GST but it's only making us uh 44:15 44 minutes, 15 seconds even more robust even more faster replenishment etc the fact is also that um the overall market continues to be 44:23 44 minutes, 23 seconds soft right so it is also not there are not too many headwinds in this um tailwinds in this part of business. So 44:31 44 minutes, 31 seconds um all uh considered I think the the biggest uh pluses that I would take from the quarter is the fact that continued 44:39 44 minutes, 39 seconds very aggressive. Q1 was also very strong like for like on in retail Q2 continues to be very strong like for you like on in retail. I think that momentum is is 44:48 44 minutes, 48 seconds very good. Second is we've also been able to strengthen the shape of business uh being able to manage costs and supply 44:54 44 minutes, 54 seconds chain costs all of that sharper which has resulted in a better shape of uh EDIDA for for this part of business. I 45:03 45 minutes, 3 seconds think uh the biggest challenge now is going to be how do we uh create exponential sales growth uh putting together a lot of things in place so 45:11 45 minutes, 11 seconds that u uh summit that that is uh that is something we can put into action and the path on profitability. So just 45:19 45 minutes, 19 seconds trying to understand what is the problem area. Is it a low gross margin uh because of the higher trade spends? Is it uh markdowns in inventory that you 45:27 45 minutes, 27 seconds have to take on time to time? Is it higher marketing? Uh where is the really you know the line item which is causing 45:34 45 minutes, 34 seconds it to be a loss making uh segment for many many years now. 45:39 45 minutes, 39 seconds So I think uh this is the business which we are playing for a very large stake. 45:44 45 minutes, 44 seconds So this is something that we want to be very large and meaningful. So there are deeper investments into making this uh this happen. Uh you're right, it's a 45:53 45 minutes, 53 seconds sharp margin business. Uh and um I think we'll have to to recognize that. Uh it's 46:00 46 minutes it's also a business where u the components of the business changed significantly what you know the kind of 46:07 46 minutes, 7 seconds share that at leisure had in this business to what is now uh it's evolved into. I think we all have to recognize 46:14 46 minutes, 14 seconds and go with that. Um but but here is a business which um which also has a lot of consumer stickiness. So as as we keep 46:23 46 minutes, 23 seconds selling every pair of uh venison innerware to consumer uh you have uh more and more sticky consumer. So it is 46:30 46 minutes, 30 seconds something that you do one consumer at a time in that sense of building a stronger and stronger base of consumers. 46:36 46 minutes, 36 seconds It is habit habit forming. So as as you sell to more and more consumers you you build a stronger franchise for the brand. So it it has to be done uh 46:44 46 minutes, 44 seconds patiently. We'll have to go through this. 46:49 46 minutes, 49 seconds Got it. Uh fair enough. Just a bookkeeping question from me. Uh part of your portfolio this is overall lifestyle plus emerging included uh which is uh 46:58 46 minutes, 58 seconds below this uh sweet price point of now 2625 rupees for you. 47:10 47 minutes, 10 seconds Hello. Uh hard to explain this off the cuff. Maybe we can put this analysis together because there are various 47:17 47 minutes, 17 seconds slices and dices and we do this usually at a single brand level. So each brand tracks this separately. Maybe we can share this separately with you. Yeah. 47:25 47 minutes, 25 seconds Uh sure. No problem. I'll come back and take any question. Thanks. 47:32 47 minutes, 32 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Sukrit Deep Part with Eyesight Fin Trade Private Limited. 47:43 47 minutes, 43 seconds Please go ahead. 47:44 47 minutes, 44 seconds Good afternoon. I have a broader question on uh India's long-term direction. Uh as more fashion and 47:51 47 minutes, 51 seconds lifestyle brand expand across India, what is Akipa Lifestyle doing to build a strong edge? Uh not just through store 47:58 47 minutes, 58 seconds count or uh celebrity but something deeper like a way of working or thinking that grows over time and makes the company uh hard to replace. 48:10 48 minutes, 10 seconds Oh, so you're you're saying uh what are our uh strategic uh uh strengths or 48:16 48 minutes, 16 seconds differentiators? I think many uh uh Sukriti uh if you u uh you know uh if you refer to our strategy deck that 48:25 48 minutes, 25 seconds we've shared uh some time back you would see that but you know uh it's also a very deep knowledge of market uh 48:33 48 minutes, 33 seconds different segments consumers etc which in in that sense gives us uh our strengths. It's also a very deep 48:41 48 minutes, 41 seconds understanding of retailing. We run 3,000 plus stores. Uh continue to do that. 48:45 48 minutes, 45 seconds Build very strong equations with various partners in the uh in the ecosystem. We we work very closely with various 48:53 48 minutes, 53 seconds business partners across franchises, malls, uh department stores and uh mills 49:00 49 minutes and so on. Uh we also have a very strong creation ecosystem with a very strong manufacturing base, a creation designing 49:08 49 minutes, 8 seconds creation base, product creation base. So there are multiple things which which give us that a very tech enabled organization. Uh so it will be difficult 49:17 49 minutes, 17 seconds for for me to explain this over an earnings call but I think uh a lot of things which we believe will give us uh a right to win in the market. 49:27 49 minutes, 27 seconds Okay fair enough. Uh my second question is to Mr. uh Looda. Uh as retail expansion and customer experiences keep 49:34 49 minutes, 34 seconds on rising, how are you planning to protect the margins and uh are there any smart internal methods like sourcing or 49:41 49 minutes, 41 seconds uh uh any store design that helps you to keep the quality high without hurting the profits even if they even uh they 49:50 49 minutes, 50 seconds don't show up on the numbers. Just try to understand how you balance brand experience with keeping margin strong 49:56 49 minutes, 56 seconds over the time. So thank you. So uh so if you look at um u our ship of business 50:04 50 minutes, 4 seconds you know um our biggest drivers of u uh profitability is actually uh rent leverage and uh sales per square foot to 50:13 50 minutes, 13 seconds that extent like to like is probably one of the best drivers of profitability and that's why you see margins expanding over time. So that is something which 50:21 50 minutes, 21 seconds has worked well for us. uh uh of course there are continuous cost programs around capac reduction around various 50:30 50 minutes, 30 seconds such things but uh I I would say this uh the bigger lever for uh margin expansion would be built around uh greater retail 50:38 50 minutes, 38 seconds productivity greater greater retail throughput so that's what we will continually drive uh of course in each brand the capex per square foot cost 50:48 50 minutes, 48 seconds plans etc would be very different very contextual uh let's say a louis Philip store cost per square foot is very different from let's say a Peter England 50:56 50 minutes, 56 seconds cost per square foot and so on. So it would also depend on what the brand's position its equation with consumer etc is 51:07 51 minutes, 7 seconds thank you Mr. particle please rejoin the queue for more questions. Next question comes from the line of Kunal Badia with Dalal and Baja. Please go ahead. 51:17 51 minutes, 17 seconds Uh yeah hello sir uh thanks for the opportunity. Um sir from the from the overall call uh one does understand that 51:26 51 minutes, 26 seconds uh this quarter around um as you mentioned Diwali was okay um plus there there was a GST transition um you've 51:35 51 minutes, 35 seconds also mentioned that uh the uh smaller towns are doing well we raised the metro um so broadly what's the pain point here 51:44 51 minutes, 44 seconds meaning uh on an overall basis uh uh despite uh the government impetus uh whether it be through income tax uh 51:52 51 minutes, 52 seconds savings or through GST. Um is it the competition uh which is uh uh dragging 52:00 52 minutes uh the sales or uh there is something else uh which is also impact impacting the overall environment because your 52:08 52 minutes, 8 seconds commentary even in case of wedding was we hope so uh that the wedding season should be good. So just wanted to get a broader perspective here sir. 52:17 52 minutes, 17 seconds So very nicely summarized uh but here here I would say u you know there are two parts one is external 52:25 52 minutes, 25 seconds market and one is what we do internally markets have been how they've been you would have heard commentaries from various players in the market I think 52:33 52 minutes, 33 seconds for us uh our task we we know what is uh what needs to be done we have to continue to expand u aggressively you 52:41 52 minutes, 41 seconds will start seeing that you know you already seen that our overall network uh has has significantly increased in the last quarter. That has to start bearing 52:50 52 minutes, 50 seconds fruit. We'll continue to expand aggressively. Uh our uh our e-commerce business you would have seen uh in the 52:56 52 minutes, 56 seconds overall uh growth uh is something which we could do better in. We have to find our own methods and recipes by which we 53:03 53 minutes, 3 seconds make that sort of business stronger. uh there are multiple growth opportunities uh regardless of how markets are which 53:11 53 minutes, 11 seconds we have to keep chasing to make sure that we are we continue to grow and we continue to be strong and as tailwinds come back to market that that should 53:19 53 minutes, 19 seconds only help us to grow even further uh but yeah right now I is it fair easy for me to say yes markets are great I I don't 53:27 53 minutes, 27 seconds and I think we're all seeing out of the window to see how the markets are uh but separately kunal we have to do what we 53:35 53 minutes, 35 seconds have to do to keep growing in the business. 53:38 53 minutes, 38 seconds So, but at at this point in time, what would be uh the most crucial pain point for the uh for you or the industry as a whole? 53:48 53 minutes, 48 seconds Well, uh uh I wouldn't call it painoint. 53:51 53 minutes, 51 seconds You would want u more consumption in the market. That is something which um uh everybody in the in the in the industry 53:58 53 minutes, 58 seconds would seek by. I wouldn't call it a pain point. But that is something which uh everybody would want. No consumption. 54:07 54 minutes, 7 seconds Okay, fair enough sir. Thank you. 54:12 54 minutes, 12 seconds Thank you. Next question comes from the line of Dwanchel with MK Global. Please go ahead. 54:18 54 minutes, 18 seconds Yes. Uh thanks for the followup opportunity. Uh just one uh bookkeeping explanation. So uh in Q4 we did call out 54:27 54 minutes, 27 seconds that forever 21 had about 50 cr loss at the level of val and then 50 cr was in 54:35 54 minutes, 35 seconds the interest right for 25. Uh I just wanted to check in which quarters were was this sort of line last year in H1 primarily. 54:48 54 minutes, 48 seconds So H2 except yeah except the small number rest all is accounted in the H1. 54:59 54 minutes, 59 seconds Okay one u request. So we have made some uh reporting changes uh but we have not 55:08 55 minutes, 8 seconds provided uh comparable numbers even for the last year right. So um it would be very helpful if you could provide that 55:17 55 minutes, 17 seconds because making projections on um on only one or two quarters of data becomes very 55:23 55 minutes, 23 seconds difficult. Uh so provide the comparable numbers at least for last four quarters of FYI 25 it will be very helpful. 55:31 55 minutes, 31 seconds Yeah. Yeah. They want to you know it was part of the consolidate FRL. So we are splitting up but you know we'll provide you separately. 55:41 55 minutes, 41 seconds Yes sir. 55:45 55 minutes, 45 seconds Thank you very much ladies and gentlemen. On behalf of the management we thanks all participants for joining us. In case of any further queries you 55:54 55 minutes, 54 seconds may please get in touch with Mr. Amit Dwi. You may now disconnect your lines. 55:58 55 minutes, 58 seconds Thank