Arvind Fashions Ltd — Q4 FY26

Arvind Fashions Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=-4OkYbEj-xc Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Urban Fashions Limited Q4 FI26 earnings conference call. As a 0:10 10 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on a 0:27 27 seconds touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Gda 0:35 35 seconds Sitlangia. Thank you and over to you sir. 0:39 39 seconds Thanks for um hello everyone. Good afternoon. Uh thank you for joining the Urban Fashions uh limited earnings call 0:47 47 seconds for the quarter and year ended uh March 26. I'm joined here today by Kulin Dalhigh, vice chairman and non-executive 0:56 56 seconds director and Amisha Jen, managing director and CEO. Please note that results, press release and earning presentation have been mailed across to 1:03 1 minute, 3 seconds you and these are available on our website www.arvinfashions.com. 1:09 1 minute, 9 seconds I hope you had the opportunity to browse through the highlights of the performance. We will commence the call with Colleen providing his key strategic 1:16 1 minute, 16 seconds thoughts on our quarters quarter and year performance. Post that uh Amisha will cover the financial performance and 1:25 1 minute, 25 seconds the business highlights. At the end of the management discussion, we will have a Q&A session session. Before we start, I would like to remind you that some of 1:32 1 minute, 32 seconds the statements made or discussed on this call today may be forward-looking in nature and must be viewed in conjunction with risks and uncertaintities we face. 1:42 1 minute, 42 seconds A detailed statement of these risks is available on the quarter's earnings presentation. the company does not undertake to update these forward-looking statements publicly. 1:50 1 minute, 50 seconds With that said, I would now turn the call over to Khim to share his views. Thank you and over to you Kim. 1:57 1 minute, 57 seconds Thanks, Gar. A very good afternoon to you all. Thank you for joining us for the Q4 results. FY26 continues our 2:05 2 minutes, 5 seconds trajectory of impressive growth and high performing business outcomes. I'm very happy to share that this quarter we have again achieved a very strong growth of 14.8% 8% and a fullear growth of 14%. 2:18 2 minutes, 18 seconds This highlights our disciplined execution across all growth drivers, enabling us to successfully deliver on our FY26 objective that we set at the 2:27 2 minutes, 27 seconds beginning of the year. The demand environment remained stable. Investments in brand and people and our consistent and superior retail execution. 2:42 2 minutes, 42 seconds Sorry, I'll continue. The demand environment remained stable. Investments in brand and people and our consistent and superior retail execution and have 2:51 2 minutes, 51 seconds enabled us to deliver a very healthy LTL growth of 7.8% in retail and over 40% 2:58 2 minutes, 58 seconds growth in the online direct to consumer channel. Our ebitida grew by 19% with a 50 bits margin expansion. Our PAT on a 3:07 3 minutes, 7 seconds comparable basis has grown by 56% in Q4 and 62% in FY26 which shows strong operating leverage in our business. We 3:16 3 minutes, 16 seconds have also achieved the milestone of generating more than 23% return on capital employed which remains our northstar metric and this is likely to 3:25 3 minutes, 25 seconds improve going further. The seamless transition to new leadership has ensured continued growth momentum and sets the 3:32 3 minutes, 32 seconds company up for its next phase of growth and transformation. Moving forward, we remain committed to maintaining our growth trajectory through investments in 3:41 3 minutes, 41 seconds marketing, tech, and the AI initiatives whilst keeping consumer at the core and continuing to drive operating leverage 3:48 3 minutes, 48 seconds and stronger cash flows. We continue to stay focused on our mantra of profitable growth result which should result in further improvement in return on capital 3:56 3 minutes, 56 seconds employed. I would like to now hand it over to Amisha Jen to take us through the specifics and more details about our financial performance. 4:08 4 minutes, 8 seconds Good afternoon everyone and a warm welcome to our investor call for Q4 and the full year ended March 31st 2026. 4:16 4 minutes, 16 seconds Let me start with key highlights. FI26 was a year of profitable broad-based growth with 14% revenue growth, 40 bit 4:24 4 minutes, 24 seconds eida margin expansion, PAT up 62% on a comparable basis and Orosi crossing 23%. 4:31 4 minutes, 31 seconds Importantly, this was not driven by a single channel of RAM. It was execution across the board. Three things I would 4:39 4 minutes, 39 seconds like for you to take away from today's call. One, our D2C engine is compounding. Direct channels now account 4:46 4 minutes, 46 seconds for 56% of sales, up 300 basis points year on year. Online B2C alone grew 40% 4:53 4 minutes, 53 seconds in Q4. Number two, profitability is structural. Gross margin is up, Eida is 5:00 5 minutes up, Rosie at a new high and the inventory is the freshest it has ever been. And number three, we are entering 5:07 5 minutes, 7 seconds fiscal 27 with confidence. We expect to sustain mid double-digit growth with another 30 to 40 basis points of AIDA 5:14 5 minutes, 14 seconds margin expansion despite a more uncertain macro. 5:19 5 minutes, 19 seconds Now coming back to Q4 performance, Q4 revenue grew 14.8% 8% with NSV at 1,365 5:26 5 minutes, 26 seconds crores versus 1,189 crores in the same quarter last year. Ebida excluding other 5:33 5 minutes, 33 seconds income was 189 crores versus 159 crores, a 50 basis point margin improvement. PAT 5:40 5 minutes, 40 seconds came in at 47 crores versus a loss of 93 crores in Q4 last year on a comparable basis that is 56% growth. Q4 marks 5:49 5 minutes, 49 seconds another strong quarter for us driven by consistent execution in our direct to consumer channels. These together 5:56 5 minutes, 56 seconds account for nearly 56% of sales, 300 basis points higher than same quarter last year. 6:03 6 minutes, 3 seconds A gross margin improved 20 basis points in Q4. 6:07 6 minutes, 7 seconds Inventory freshness is at an all-time high. Despite the channel mix shift to D2C carrying slightly more inventory, working capital has been well controlled. 6:17 6 minutes, 17 seconds On channel performance in Q4, we delivered a robust L2L of 7.8% in retail with overall retail growing at 14%. 6:26 6 minutes, 26 seconds Retail growth was impacted by a transitory GST rate change impact on PBH brands for a few weeks. That dip is 6:34 6 minutes, 34 seconds behind us and both brands are back to double digit growth. Online B2C grew over 40% taking its share to 14% from 11 6:43 6 minutes, 43 seconds which is in line with our intent to pivot away from B2B online. Wholesale and department stores delivered strong double digit secondary sales growth as well. 50 EVOs were added in the quarter. 6:55 6 minutes, 55 seconds Coming to brand performance in the quarter, USBA led the pack delivering its highest ever growth this quarter. 7:02 7 minutes, 2 seconds PVH brand and flying machine each grew over 10%. An arrow was subdued a one time due to a one-time model change and 7:10 7 minutes, 10 seconds a weak wedding calendar. Both are timing related and not structural. 7:16 7 minutes, 16 seconds I'd like to highlight that flying machine deserves a a special mention. 7:20 7 minutes, 20 seconds Flying machine clocked retail LTL of double digits and a B2C growth of 70%. 7:26 7 minutes, 26 seconds We have sharply positioned flying machine as a uni unisex denim anchored on trend youth brand and that has shown 7:33 7 minutes, 33 seconds good early traction. Flying machine is now live across multiple e-commerce platforms. 7:39 7 minutes, 39 seconds We will also launch flying machine.com in H2 fiscal 27 to build a direct community of consumers. 7:47 7 minutes, 47 seconds Coming to full year fiscal 26, our revenue grew 14% with growth across every channel. Retail LTL was remark 7:56 7 minutes, 56 seconds remarkably consistent at 8.1% for the year and overall retail was in mid- double digits reflecting strong execution rather than a single quarter sale wind. 8:07 8 minutes, 7 seconds We added more than 1.4 lakh net square feet of retail space. Other categories beyond men's apparel now contribute 24% 8:15 8 minutes, 15 seconds of our business and were a meaningful growth driver. On profitability margin is at 13.4% 4% up 40 basis points 8:24 8 minutes, 24 seconds year on year. PAT at 124 crores up 62% on a comparable basis. 8:31 8 minutes, 31 seconds Roti at 23% plus is a multi-year high and in my view the single best indicator of how our business is consist consistently improving. 8:41 8 minutes, 41 seconds Let me shift gears towards fiscal 27 outlook and vision. Now as we enter fiscal 27 I would like to take the opportunity to talk about two things. 8:51 8 minutes, 51 seconds First is on the macro. Government measures around GST interest rates and income tax have supported demand. The 8:58 8 minutes, 58 seconds West Asia situation is a watch item for us. We expect mild pressure on certain raw materials, forex and capeex over the 9:06 9 minutes, 6 seconds over the medium term with the risk of a consumption slowdown due to a supply inflationary pressures. Our mitigation 9:14 9 minutes, 14 seconds actions are already in motion. A couple of points to highlight there. We bought inventory slightly ahead of the curve 9:21 9 minutes, 21 seconds for SS26 locking in costs before the increase for AW26. We are actively monitoring and hedging where required. 9:29 9 minutes, 29 seconds Our sourcing remains predominantly India based and we are deepening that further. 9:34 9 minutes, 34 seconds Lastly, to navigate the volatility, we plan to remain nimble. We intend to double down on our cost control measures and we will selectively implement price increases while safeguarding growth. 9:46 9 minutes, 46 seconds Moving to the second point on fiscal 27. 9:50 9 minutes, 50 seconds I'd like to share our vision and way forward with you. Our strategy rests on five pillars. 9:57 9 minutes, 57 seconds I will list out the five pillars. First being portfolio diversification. We aim to deepen our leadership in men's wear by establishing a top position in the 10:05 10 minutes, 5 seconds country's five largest apparel categories. shirts, polos, denim, t-shirts, and blazers while doubling down on adjacencies like footwear and 10:12 10 minutes, 12 seconds inear that are already contributing 24% of our business. Number two, building a differentiated brand. Building differentiated brands of scale and 10:21 10 minutes, 21 seconds desire. Our portfolio of five brands has meaningful headroom to grow. The unlock is sharper positioning, deeper consumer connections and a strong merchandising grid led by innovation across our brand. 10:33 10 minutes, 33 seconds Hence, we expect growth from each of our brands. As we have said earlier, we will continue to invest more towards marketing. Number three, building a 10:42 10 minutes, 42 seconds world-class direct to consumer organization. We will continue to double down on our D2C journey with a vision to take the share of D2C to 65%. 10:50 10 minutes, 50 seconds Driving retail excellence and building a digital powerhouse remains our priority. 10:56 10 minutes, 56 seconds Talking about offline retail, we will continue our expansion and upsizing journey with a relentless focus on LTL and conversion driven by right products, 11:04 11 minutes, 4 seconds brand experience and service. Further, we will build a digital powerhouse through our.com and marketplace partnerships. We expect each brand to 11:13 11 minutes, 13 seconds have its own.com and app live this fiscal year, which will be the foundation for great brand experience and commerce. 11:20 11 minutes, 20 seconds Number four, transforming urban fashions limited with data analytic analytics and AI. This is a key growth driver for us 11:27 11 minutes, 27 seconds and not a back office initiative. Our investments will target two outcomes. 11:34 11 minutes, 34 seconds First is leveraging AI to drive cost efficiencies across functions and second to leverage analytics and AI to drive 11:40 11 minutes, 40 seconds front-end effectiveness. Retail excellence, pricing, assortment, marketing, marketing effectiveness are some of the examples of the same. 11:49 11 minutes, 49 seconds Lastly, and importantly, a nimble supply chain that sits closer to demand, which should yield shorter cycles, faster re, 11:57 11 minutes, 57 seconds and less inventory risk. Those are our five growth drivers. I also want to highlight the fact that in line with the above strategy, we have already put a 12:05 12 minutes, 5 seconds few things in motion over the last two quarters. 12:10 12 minutes, 10 seconds We took a deep consumer work. We took up deep consumer work to map the market opportunity and consumer demand landscape which is now informing our portfolio and where to play choices. 12:21 12 minutes, 21 seconds We are putting structured investment in tech and AI with a dedicated specialist team built over the last two quarters 12:29 12 minutes, 29 seconds which is now working towards tech AI consumer analytics and growth. 12:33 12 minutes, 33 seconds We have also reorganized ourselves into a business unit structure for sharper accountability and speed while centralizing consumer brand marketing, 12:42 12 minutes, 42 seconds digital and data AI initiatives to build deep leverage capabilities. These things are already in motion. 12:49 12 minutes, 49 seconds To summarize, with a clear strategy and right organizational design now in place, we are reasonably confident of sustaining mid double-digit growth in 12:58 12 minutes, 58 seconds fiscal 27 with 30 to 40 basis points of iida margin expansion. 13:04 13 minutes, 4 seconds With the unifying goal of one team, one mission driving cohesiveness and collaboration and urban fashion limited, we are poised to embark on the next phase of growth. 13:15 13 minutes, 15 seconds Thank you so much. We're now happy to take your questions. 13:20 13 minutes, 20 seconds Thank you very much. We will now begin with a question and answer session. 13:24 13 minutes, 24 seconds Anyone who wishes to ask a question may press star and then one on the telephone. 13:31 13 minutes, 31 seconds If you wish to remove yourself from the question cube, you may press star and then two. Participants, you are 13:38 13 minutes, 38 seconds requested to use hand clips while asking the question. 13:42 13 minutes, 42 seconds Ladies and gentlemen, we will wait for a moment while the question to descend. 13:53 13 minutes, 53 seconds A reminder to all you may press star and then one to ask a question. 14:02 14 minutes, 2 seconds We have the first question from the line of Deep Sha from Equity Securities. Please go ahead. 14:09 14 minutes, 9 seconds Hi team. uh thanks for the opportunity and congratulations on this set of numbers. Uh first of all on the guidance 14:16 14 minutes, 16 seconds which we have given around mid mid double digit sort of a growth. I just wanted to u if if you can help me and give me some color around the brand wise 14:25 14 minutes, 25 seconds performance because this year if we see US polo has been a standout performer throughout the year for us. uh should we 14:32 14 minutes, 32 seconds expect the same sort of growth for US polo continuing in the years to come and how do we brandwise how do we see uh 14:40 14 minutes, 40 seconds growth uh coming in the future period you hi thanks for your question um I think 14:47 14 minutes, 47 seconds as we have seen our portfolio and like I mentioned earlier you know we we are sort of committed to building a portfolio of differentiated brands and 14:55 14 minutes, 55 seconds each of our brands have a very specific role to play um as we have seen us polo obviously ahead of the curve and it's it's now reached its potential with 15:04 15 minutes, 4 seconds product innovation, right product market fit, a great retail presence and it continues to clock solid growth uh 15:11 15 minutes, 11 seconds across our channels. Having said that, our PBH portfolio is really well poised to service the premiumiz primized end of 15:19 15 minutes, 19 seconds the consumer demand and we expect that this portfolio will continue to c clock growth as well. 15:25 15 minutes, 25 seconds What we are bullish about is also flying machine with the positioning getting deeper and sharper with it being a denim 15:33 15 minutes, 33 seconds oriented youth brand which is on trend and unisex we believe that flying machine will continue to drop solid double-digit growth as well. Having said 15:42 15 minutes, 42 seconds all of that for us, Arrow is our unique position in terms of the formalware workware market and we believe that with 15:49 15 minutes, 49 seconds some of the measures around store expansion, the right merchandising grid and the right store format, we should 15:57 15 minutes, 57 seconds see again a solid growth coming out of Arrow. 16:01 16 minutes, 1 second All in all, I think what we believe is that from with this diversified portfolio that we have, we should see consistent growth across our brands. 16:10 16 minutes, 10 seconds Got it. Just just a follow up over here. 16:12 16 minutes, 12 seconds See uh if I'm not wrong, US polo would be roughly around 2,400 2,500 K of top line. And what I wanted to understand is 16:20 16 minutes, 20 seconds that on this base, do we expect US polo continue to grow at 13 14% KER in next 3 16:27 16 minutes, 27 seconds 4 years or should we say look for a lesser growth? 16:33 16 minutes, 33 seconds We expect uh we expect our brands to grow at mid double digits. 16:37 16 minutes, 37 seconds Okay, got it. Uh second question is on the margin side. Uh well it's extremely positive that we are guiding for 32 post 40 basis points of the margin expansion. 16:48 16 minutes, 48 seconds But what I understand is that uh the cotton prices are on the uptrend plus we are focused on investing behind and all. 16:56 16 minutes, 56 seconds So shouldn't we uh consider 1 margins remaining under pressure and how confident are we of achieving this 30 to 17:04 17 minutes, 4 seconds 40 basis points of aida margin expansion and how how will we value this margin expansion 17:11 17 minutes, 11 seconds so I think just a couple of points here as I mentioned earlier in my opening remarks our sourcing remains predominantly India based and we are deepening that further and second also 17:20 17 minutes, 20 seconds we're watching the uh overall watching this environment very closely and to navigate the volatility We do plan to remain nimble. Um while we on one hand 17:30 17 minutes, 30 seconds we will double down on our cost measures but at the same time we will be selective in driving price increases where required while protecting our growth as well. 17:39 17 minutes, 39 seconds Perfect. Got it. One last question if I can squeeze in. Uh yeah. 17:45 17 minutes, 45 seconds Yeah. Yeah. So on the store side we have been constantly seeing new store addition but on the other hand we are 17:53 17 minutes, 53 seconds seeing store closures as well. So this quarter as well we have closed down somewhere around 45 odd stores. So can we just give some color uh what are the 18:01 18 minutes, 1 second for which are the which are the brands for for whom we are closing down the stores and are we done with this store closure initiative or not? 18:09 18 minutes, 9 seconds So I think uh look I think stores closing is a journey of retail right I think broadly speaking as we continue to 18:16 18 minutes, 16 seconds build retail this this journey will continue right we should see approximately about 5% closures going 18:24 18 minutes, 24 seconds forward and I wouldn't say it's one higher in one brand over the other this is just how overall the retail journey will look like 18:32 18 minutes, 32 seconds okay got it does thank you so much thank you thank you so much thank 18:39 18 minutes, 39 seconds Thank you. We will take the next question from the line of Kosuk Pavaskkar from ICA direct. Please go ahead. 18:48 18 minutes, 48 seconds Yeah. Uh good afternoon. Uh thanks for giving me the opportunity and congrats for good set of numbers. Uh my question 18:55 18 minutes, 55 seconds is on uh online B2C business. Uh so that part of our business is doing extremely well this quarter also we have seen 19:03 19 minutes, 3 seconds strong growth. So considering the competition building around in this space or on this channel in this channel 19:11 19 minutes, 11 seconds uh do we see uh uh you know this growth momentum to continue or what is helping us you know uh to be a standout player 19:19 19 minutes, 19 seconds in this uh in this particular channel you know uh and we are doing extremely well in terms of growth. 19:29 19 minutes, 29 seconds So thanks for your question. Um I think one thing I'd say broadly is B2C is a core channel strategy for us right like 19:36 19 minutes, 36 seconds I said that overall uh as we look forward uh building a worldclass D2C organization that is built of retail and 19:44 19 minutes, 44 seconds online is is a priority for us we are we have key initiatives in place to drive our D2C so whether you think about 19:52 19 minutes, 52 seconds product the way our brands show up how we control our pricing and how we manage our last mile these are the certain few things that is actually driving growth 20:00 20 minutes for us over the years we've also been able to actually drive full price uh sell through and reduce our discounts on 20:07 20 minutes, 7 seconds our online channels as well. So it's a it's a solid uh channel which delivers profitability as well. Now in terms of 20:14 20 minutes, 14 seconds your question when you said that online B2C competition increasing in fact we're seeing this channel stabilizing we have seen advent of certain B2C brands but 20:23 20 minutes, 23 seconds with the brands that are there in our portfolio and the product innovation and the offering that we bring to the table 20:30 20 minutes, 30 seconds with the pricing that we bring uh I think our brands are are pretty solid and from a competition point of view what we're seeing is the uptake in the 20:39 20 minutes, 39 seconds market is actually much better and uh you know we continue to drive that through driving brand experience great 20:47 20 minutes, 47 seconds assortments and overall you know last mileile service as well. Hope that answers your question right. So uh 20:56 20 minutes, 56 seconds should we expect this momentum of uh you know 30 to 40% kind of a growth to continue uh in the coming years and that 21:03 21 minutes, 3 seconds will help us uh this mix to further improve uh towards online B2C. 21:10 21 minutes, 10 seconds Yes. So see I think for us online B2C like I said continues to remain uh solid and we expect that over the years this 21:18 21 minutes, 18 seconds should continue to be at a 20% plus right right uh my second question again is ahead of the margins like uh you just 21:27 21 minutes, 27 seconds mentioned that uh you know uh we are expecting 30 to 40% improvement in the margins despite the fact that currently 21:35 21 minutes, 35 seconds uh there is uncertainty related to volatility in the commodity es and you mentioned in your comment that you are 21:42 21 minutes, 42 seconds focusing more on s sourcing from India and you also have good cover in terms of uh the raw material prices which will 21:51 21 minutes, 51 seconds take a large part of your season. Uh so however if this continue if this volatility continue or uncertainty 21:58 21 minutes, 58 seconds continue uh should we expect some kind of deceleration in what you have guided or should we uh uh uh whatever 22:07 22 minutes, 7 seconds uncertainties it would be you will still manage to plot 30 to 40% in the comm uh expansion. 22:15 22 minutes, 15 seconds See at this point in time we uh like I had mentioned earlier that while we are seeing mild pressure on raw materials, 22:23 22 minutes, 23 seconds forex, capeex over the medium term, we do expect that there could be a potential risk on uh of a consumption slowdown due to the inflationary 22:31 22 minutes, 31 seconds pressures. Having said that, we are reasonably certain about our mitigation actions and given that we are uh you 22:38 22 minutes, 38 seconds know at this point in time we are cautious and at the same time optimistic about our guidance. 22:46 22 minutes, 46 seconds Okay, got it. Thank you. 22:52 22 minutes, 52 seconds Thank you. A reminder to all the participants. You may press star and then one to ask a question. 23:00 23 minutes We will take the next question from the line of Avin Kamachi from Motina Rosar Financial Services Limited. Please go ahead. 23:08 23 minutes, 8 seconds I think congrats on good set of members. Audible. Yes sir. 23:15 23 minutes, 15 seconds Hi. Hi. Congrats and good set of members. So, um, so Mr. Anika, so this year both flying mission and US has seen 23:22 23 minutes, 22 seconds a very significant reborn. So, what are the things that you could highlight for this kind of reborn? What are the changes that has happened in these two brands? Flying mission in particular. 23:32 23 minutes, 32 seconds Sure. Uh, thank you so much. Uh, you know, I think, uh, as I'll talk about both the brands, uh, one at a time. So 23:40 23 minutes, 40 seconds when we look at flying machine as you know that uh you know we've just gone through a very recent sharper positioning and deeper work with flying 23:48 23 minutes, 48 seconds machine and with that the one thing that we've done is actually gone deeper with how do we drive consumer connect uh 23:55 23 minutes, 55 seconds flying machine now is positioned as a on trend youth brand which is more focused on denim and also pivoting 24:04 24 minutes, 4 seconds towards unisex right now what that does is and what we have seen with that initial uh season that we've launched is a great 24:12 24 minutes, 12 seconds offtake uh across our channels. The other thing with us kind of taking over uh flying machine fully the one thing that we've been able to also do is now 24:21 24 minutes, 21 seconds been able to kind of make sure that this brand is available to our consumers across the channels of their choice. So you will find flying machine 24:30 24 minutes, 30 seconds distribution now in retail and across various e-commerce platforms. We've actually seen a pretty healthy growth across the board both in retail and 24:38 24 minutes, 38 seconds online. So with those measures with a great uh product positioning we believe that flying machine is 24:45 24 minutes, 45 seconds actually well poised to grow uh from a from an overall youth and gen Z point of view. If you look at it in the denim 24:52 24 minutes, 52 seconds space, there isn't a strong player out there beyond barring one. And we believe that flying machine has a very very 25:01 25 minutes, 1 second strong positioning and with that we believe that we should be able to take on a much larger market share over a period of time. 25:08 25 minutes, 8 seconds So that's about flying machine. In terms of US polo, I think US polo has been on a fabulous journey. uh you know with the 25:16 25 minutes, 16 seconds way the US polar is set up across the consumer landscape you know it caters to various occasions for uh for men's 25:22 25 minutes, 22 seconds apparel uh with our leadership in polos shirts and as you can see in denins US 25:30 25 minutes, 30 seconds polo is actually very well poised in terms of the way we are expanding ourselves across various channels both 25:37 25 minutes, 37 seconds online and offline we've been able to bring great innovation in US polo across the pricing merchandising grid at great 25:44 25 minutes, 44 seconds price points as well and we've seen really good offtake across the board. So I think all in all if I was to look at it all three pillars in terms of product 25:53 25 minutes, 53 seconds merchandising the way the brand is connecting with the consumer and the the strong spread we have from a channel 26:00 26 minutes point of view we believe that US polo is actually set for a very strong trajectory ahead. Having said that, we do believe that there is potential for 26:08 26 minutes, 8 seconds us to expand the network uh from a retail point of view and also drive us polo.com and our marketplace presence in 26:16 26 minutes, 16 seconds a much stronger way. So we expect and we remain bullish on us polo going forward as well. 26:23 26 minutes, 23 seconds Okay, got it. And uh regarding the channel mix uh how does the channel mix vary for bands like arrow or clients? 26:31 26 minutes, 31 seconds It's already at 400 stores and you are adding a larger stores with a different outlook there. But uh how does this channel mix looks like in case of flying nation and narrow? 26:42 26 minutes, 42 seconds So I think look each each brand has its own channel journey and like I said I think for us the channel mix is more 26:50 26 minutes, 50 seconds coming from consumer demand and where do we believe that there is pockets of growth. uh US polar is a brand which is 26:58 26 minutes, 58 seconds you know which addresses a certain demand and it has got a much wider distribution in terms of stores. We do believe that it there is a lot more 27:06 27 minutes, 6 seconds potential for it to for our network to actually expand from where it is. 27:11 27 minutes, 11 seconds Similarly, arrow and flying machine are on on the beginning of their journey and we do believe that as we go and as we 27:19 27 minutes, 19 seconds rethink the product line as we expand the product mix and drive assortment uh in a certain way we believe that both 27:26 27 minutes, 26 seconds these brands will see an evolution of their retail further. So both you should see expect expansion of retail at the same time we will go much deeper with 27:34 27 minutes, 34 seconds our online business as well in both these brands. 27:39 27 minutes, 39 seconds Okay, understood. And the next question is to Mr. G is regarding the capex in debt. So if you look at it like this 27:46 27 minutes, 46 seconds year the capex was around 110 crores. So can you give a break up for that? 27:52 27 minutes, 52 seconds Yeah I'll take that. Hi Vinas. I think uh you know the capeex includes besides investment in stores it also includes investment in MBU the department stores. 28:02 28 minutes, 2 seconds It also includes deposits that we give to the uh uh landlords where we sign up stores. So if you look at the breakup it 28:11 28 minutes, 11 seconds could be uh you know we opened uh about uh 50 cocoa stores uh and deposit uh for 28:19 28 minutes, 19 seconds those stores plus investment in uh department store MBO we also you know invested some in IT and admin capex. 28:29 28 minutes, 29 seconds Okay. Okay. Uh and regarding the other project data so uh how should we see the net uh going forward? 28:37 28 minutes, 37 seconds You see uh in the quarter just ended uh our debt was higher because uh we took some uh borrowing to fund the flip card 28:45 28 minutes, 45 seconds transaction. I think uh apart from that uh we have been quite efficient and uh this this basically you know changes our 28:54 28 minutes, 54 seconds goal of becoming a net net debt zero company by about maybe 9 to 12 months. I think we we are in the right trajectory. 29:01 29 minutes, 1 second I think apart from this uh one one-off transaction uh we are we are in line to reduce our debt on a yearon-year basis. 29:09 29 minutes, 9 seconds Okay. And a little bit of the debt also fees and payments right uh in in form of acceptances. So how how does it move going forward? 29:18 29 minutes, 18 seconds So you see this this this business always has uh you know purchases from small suppliers and small vendors MSME 29:27 29 minutes, 27 seconds vendors and you know there is obviously we all know that there is a cash cycle uh that has to be managed and hence we 29:35 29 minutes, 35 seconds use some kind of uh you know funding to manage that uh purchases but uh you know usually it is to manage 29:42 29 minutes, 42 seconds our uh payables. I mean there is nothing uh extraordinary. It has always been there and it has always been reported as part of a random report. 29:52 29 minutes, 52 seconds Uh I mean uh should we see like uh externally if I look at it like it is somewhere around 5 to 6% of the sales. 29:58 29 minutes, 58 seconds So are you trying to address that that debt as well or uh that would continue? 30:03 30 minutes, 3 seconds I mean you see as as there is cash generation primary objective is to reduce the debt which is the the term 30:11 30 minutes, 11 seconds loans and then secondary of course is to reduce the working capital uh financing. 30:17 30 minutes, 17 seconds Okay got it from Thank you. We will take the next 30:25 30 minutes, 25 seconds question from the line of Aijit Kundu from Antique stock token. Please go ahead. 30:31 30 minutes, 31 seconds Yeah. Hi. Uh congratulations on a great set of numbers. Uh one was on the overall uh macro environment. Uh in the 30:40 30 minutes, 40 seconds sense that uh you know we have been seeing that uh premium brands have been growing at a better rate. uh there has 30:48 30 minutes, 48 seconds been some amount of uh you know uh pressure on the value brands and uh some amount of pressure on the mid premium uh 30:57 30 minutes, 57 seconds uh price brands. Uh so wanted your view on that that how how the overall scenario has evolved because uh you know 31:06 31 minutes, 6 seconds March quarter uh there has been some amount of uh recovery 31:12 31 minutes, 12 seconds uh I mean perceived recovery uh in April uh in in fashion brands. So just wanted 31:20 31 minutes, 20 seconds a view on that. And then uh secondly you know you have been uh you have I mean 31:28 31 minutes, 28 seconds out of all the denim brands u a single brand has done very well in the last uh 31:34 31 minutes, 34 seconds seven eight years. Uh that gives you a very uh strong ground on how to revive 31:41 31 minutes, 41 seconds the uh flying machine brand. uh through our channels what we understood is what you read in uh you know 31:49 31 minutes, 49 seconds sorry I mean other brand uh your other brand uh you have brought down the SQS 31:56 31 minutes, 56 seconds or the designs or or the most you know dropped down to the most selling uh designs in flying machine and hence you 32:05 32 minutes, 5 seconds done a lot of restructuring so just you know uh how much is the confidence that flying machine will revive from this 32:12 32 minutes, 12 seconds level because flying machine used to be a very strong brand 2025 20 25 years back. Uh so yeah just a view on that and I have my second question. 32:24 32 minutes, 24 seconds So thank you so much. Um I think uh you know on your first part you know premiumization has been a trend for us and we've seen that both across our 32:33 32 minutes, 33 seconds brands that that has kind of uh something that has paid off very well for us. our brands have actually premiumized while at the same time 32:41 32 minutes, 41 seconds ensuring great uh value at fabulous prices right so from that point of view all our brands when you look at our PVH 32:49 32 minutes, 49 seconds brands when you look at US polo uh arrow flying machine I think from a premiumization trend point of view we're definitely seeing that and we see that 32:57 32 minutes, 57 seconds consistently uh quarter over quarter as well right so uh that to the question that you asked first I think that trend is something 33:05 33 minutes, 5 seconds that we expect to continue coming back to Flying Machine. We're actually quite bullish on uh Flying Machine. If you look at it and I think you touched upon 33:13 33 minutes, 13 seconds this, Flying Machine has a fabulous equity and with the latest consumer work that we've done, what we've found is that consumers actually resonate really 33:21 33 minutes, 21 seconds well with the equity and for us the question has been about how do we go and 33:28 33 minutes, 28 seconds drive this brand much deeper, get uh bring great products and ensure that we drive much deeper consumer connect uh as 33:36 33 minutes, 36 seconds well. So we've gone in and done some work on flying machine and uh from a brand positioning point of view here are 33:43 33 minutes, 43 seconds the few things that we're driving. We believe that this equity is actually well poised and is connects really well with the youth and the Gen Z consumer. 33:51 33 minutes, 51 seconds That's number one. The second is we also strongly believe that it has a potential to drive both for men's and women's and 33:58 33 minutes, 58 seconds you'll see that coming out of flying machine also. The third being that you know the flying mission has always been a very strong denim equity and we are 34:08 34 minutes, 8 seconds going much deeper with that offering offering really great products for the consumer from a Gen Z point of view and 34:16 34 minutes, 16 seconds if you look back at the point you made I think this is again a very strong anchor for flying machine 34:23 34 minutes, 23 seconds the last part I'll touch upon is that the one thing that I feel that the the flying machine will bring to the market and again kind of connecting back to its 34:31 34 minutes, 31 seconds Equity is ensuring that it is on trend because that's what this consumer is seeking and we believe that given our 34:38 34 minutes, 38 seconds strength uh in denim given the strength in product and innovation we are very well poised to bring that to the market. 34:47 34 minutes, 47 seconds We will definitely cater to the consumers through the their preferences. 34:51 34 minutes, 51 seconds You know, we have the one thing that we're doing is actually staying very close to the ground, ensuring that we understand what are the trends they're seeking, the price points they're 34:59 34 minutes, 59 seconds seeking, the silhouettes they are looking for and you know making sure that our offering is tight and our product assortment is actually right 35:08 35 minutes, 8 seconds sized for the right product mix and pricing as well. So with that we believe that it has a very unique position uh that it can take in the market. 35:19 35 minutes, 19 seconds Understood. And uh so two things uh clear. One is uh in arrow uh only one 35:27 35 minutes, 27 seconds year back uh you know in the last three before that I mean uh in all three 35:34 35 minutes, 34 seconds seasons a lot of uh new products were launched in the semi-asual uh segment uh and which were uh looking extremely 35:42 35 minutes, 42 seconds great. uh what would be the uh I mean in the last 2 years and and after you have 35:49 35 minutes, 49 seconds joined uh what have been the changes uh in arrow and and what has been the 35:55 35 minutes, 55 seconds progress there and secondly uh in terms of profitability in these two brands I don't need a figure but uh has there 36:04 36 minutes, 4 seconds been a uh profitability improvement uh in arrow as well as flying machine because this is a this is one of the you 36:12 36 minutes, 12 seconds very uh very frequent questions asked by the investor community. 36:17 36 minutes, 17 seconds Yeah, sure. So, thank you so much for asking that. Um, we're actually, you know, when you look at Arrow from our portfolio point of view, Arrow is 36:26 36 minutes, 26 seconds actually one of our brands that uh is all set to kind of, you know, cater to the innovation and and the workware 36:34 36 minutes, 34 seconds market in a much sharper way. actually pivoting towards how the modern professional uh seeks to uh you know go 36:41 36 minutes, 41 seconds about his day. And as as we look at it, we've kind of looked at this uh brand closely. We've looked at the consumer 36:49 36 minutes, 49 seconds demand. We've looked at uh again done some deep work around consumer and uh we have again sharpening the offering in arrows. So the one thing that you will 36:57 36 minutes, 57 seconds see happening is we're relooking at the line and we're actually simplifying the merchandising grid and going much more sharper in terms of the benefits that 37:06 37 minutes, 6 seconds the consumer is seeking uh on a day-to-day basis. 37:11 37 minutes, 11 seconds Right? And that's one one shift you will see. The other thing is as you look at our stores, you'll see a little more simplification and navigation happening uh at our retail and online as well. 37:23 37 minutes, 23 seconds Third, we are also relooking at the store formats to see that it is it is allowing us to cater to the consumer, the navigation, uh all of those pieces 37:31 37 minutes, 31 seconds in a in a much tighter way. All of this should yield much better sell through should yield much better full price sell 37:38 37 minutes, 38 seconds through and with that we expect that the profitability will only improve. So um all in all again like I said I think in 37:46 37 minutes, 46 seconds our portfolio this is one brand that we believe is actually very well positioned to cater to the formal workware market and some of the special occasions as well. 37:57 37 minutes, 57 seconds Understood. Thanks. Thanks for watching. 38:04 38 minutes, 4 seconds Thank you. We will take the next question from the line of Swapnir Gupta from White Pine Investment Management. Please go ahead. 38:12 38 minutes, 12 seconds Uh thank you for the opportunity sir. Uh just a bookkeeping question. Why our reserves have declined by uh by about 13 crores? 38:21 38 minutes, 21 seconds Yes, because uh when we did this uh transaction with Flipkart and there was 38:29 38 minutes, 29 seconds some uh equity adjustment uh because of that. 38:42 38 minutes, 42 seconds Thank you. We will take the next question from the line of Naven from NwamaC. Please go ahead. 38:52 38 minutes, 52 seconds Thank you. Uh thank you for the opportunity and congratulations and a great set of number. uh just wanted to check on uh you know what is our uh uh 39:01 39 minutes, 1 second store area store expansion plans for FY uh 27 and secondly in terms of our existency we are already at 24%. uh so 39:10 39 minutes, 10 seconds from here on by you're guiding for mid double digit sort of growth for fi 27 but is it the four portfolio which will 39:18 39 minutes, 18 seconds have to do the heavy lifting from now on considering that you know on ades we are already at 24% or do do you think that 39:26 39 minutes, 26 seconds will continue to grow so I think the first question you asked uh is around the uh store expansion 39:35 39 minutes, 35 seconds right for the next fiscal year uh that's correct yeah so we uh so I uh like I mentioned earlier, I think when you look at our store fleet, we do believe that there's 39:44 39 minutes, 44 seconds a great opportunity for us to uh expand our store fleet at the same time upsize our stores as well because our offering is increasing and our consumer offtake 39:52 39 minutes, 52 seconds of some of our brands is also great. So we expect to drive about 1 five lakh net square feet addition over 40:02 40 minutes, 2 seconds the next fiscal year across our portfolio. Right? That's kind of answering your question number one. Um uh your second question see there are 40:11 40 minutes, 11 seconds the way we I would I would look at our brands right as you look at our brands what we are seeing is that there is a significant potential for us to grow 40:18 40 minutes, 18 seconds even in just the men's apparel space and for us we've kind of set a goal for ourselves to establish a strong 40:25 40 minutes, 25 seconds leadership position across the top categories in the market right so there is a significant opportunity headroom for us to grow just within that uh 40:34 40 minutes, 34 seconds second we've also identified that there is opportunity for us to grow across other categories and footwear in a wear uh being the key ones that we're driving 40:43 40 minutes, 43 seconds over a period of time we will also start scaling women's wear as well. So to answer your question we do expect that 40:49 40 minutes, 49 seconds growth to come through our brand through the network at the same time you know the adjacencies will continue to clock 40:56 40 minutes, 56 seconds growth as well so we're quite confident about the the mid uh scenes that we've talked about. 41:04 41 minutes, 4 seconds If I can just add in one more question. 41:06 41 minutes, 6 seconds So uh in the past you said that beyond these five brands you aren't really actively looking to sort of expand the portfolio. Uh do you still hold on to 41:15 41 minutes, 15 seconds that position or are we in active evaluation of uh new brands? 41:21 41 minutes, 21 seconds So I think what we've maintained is that you know um obviously our five brands are key and we see significant headroom of growth right. Having said that uh 41:30 41 minutes, 30 seconds over a period of time if something come up which is strategically makes sense from a portfolio point of view we will be open to looking at it. 41:40 41 minutes, 40 seconds Sure. Thank you and all the best. Thank you. Thank you. 41:46 41 minutes, 46 seconds Thank you. We will take the next question from the line of scan from Swan Investments. Please go ahead. 41:54 41 minutes, 54 seconds Yeah. Hi. Thank you for the opportunity. 41:58 41 minutes, 58 seconds uh just wanted to know that what is the uh size of the business we had for supplies in FY26. 42:04 42 minutes, 4 seconds Uh how many stores uh like uh we open for 42:11 42 minutes, 11 seconds 26 and how many stores we plan to open in the coming year like FI 27 28 and how many schools are there for child. 42:24 42 minutes, 24 seconds So I think broadly speaking if I were to talk about the adjacency growth uh our c adjacent category has grown at 25% 42:33 42 minutes, 33 seconds uh and it is now sitting at about a 24% share of our business uh and we expect the adjacent parts of their categories 42:40 42 minutes, 40 seconds also to continue to grow as well right in terms of our growth like I said we are expecting to expand at a portfolio level to about 1.5 lakh net square ft 42:49 42 minutes, 49 seconds addition next year we don't give out brandwise numbers so hopefully the 1.5 lakh net square feet helps you. 42:57 42 minutes, 57 seconds So if you say the footware 43:07 43 minutes, 7 seconds see I think footwear also for us is an expansion through our uh you know US polo footwear uh stores and our uh uh 43:15 43 minutes, 15 seconds stride formats and uh this year uh you know stride grew by about u we're 43:22 43 minutes, 22 seconds currently at 19 stores of stride and you know we will look at it from an opportunity and a catchment point of 43:29 43 minutes, 29 seconds view and we will continue to expand. Uh I would also want to highlight that for us online is a very important channel for footwware and that will continue to be the case. 43:40 43 minutes, 40 seconds Thank you. 43:46 43 minutes, 46 seconds Thank you. We will take the next question from the line of Ankit Kadia from Pulit capital India. Please go ahead. 43:54 43 minutes, 54 seconds Uh hi uh inventory days have increased by you know nearly 20 days over last two years. So what is leading to this 44:02 44 minutes, 2 seconds inventory day increase while at the same time you're commenting that the inventory is the freshest ever. So have you know what's changed out here? 44:12 44 minutes, 12 seconds Anita hi Gita here. uh you see inventory days is a function of channel mix and as we will increase our channel towards 44:20 44 minutes, 20 seconds more D2C both which is basically retail and B2C you know the inventory sits are now in our books in a wholesale business 44:28 44 minutes, 28 seconds it actually moves out of our books so correspondingly if you see our while our inventory days has gone up over last two 44:35 44 minutes, 35 seconds years receivable days also has correspondingly reduced so you know all in all it's a balancing within the DWC 44:43 44 minutes, 43 seconds uh sector ction within the balance sheet. So as we increase and just to just to let you know as we increase and focus our energies on the B2C business 44:52 44 minutes, 52 seconds or the D2C business rather this is likely to remain like this or maybe increase a little as we go along as the channel changes. 45:03 45 minutes, 3 seconds So the receivable days have reduced only by 3 days uh versus 18 days increase in inventory. Uh so that the right way to 45:12 45 minutes, 12 seconds look at the business. Yeah, there was a there was a small uh B2B um transaction 45:19 45 minutes, 19 seconds done on the Tony side at the end of March. Other than that, you know, there is a corresponding uh reduction in receivable. 45:27 45 minutes, 27 seconds Sure. Uh my second question is regarding the stores uh you know the previous participant you mentioned that there were 50 CPO stores open for which security deposit and others were paid. 45:37 45 minutes, 37 seconds Now the net stores opening in the quarter or the year is also 50 stores. Uh so how many cocoa stores have you? 45:46 45 minutes, 46 seconds Sorry that the number of 50 was for the year. I think the question was on the capex for the year and the answer was for the year not for the quarter the 45:54 45 minutes, 54 seconds right. So my question is also for the year. Uh we have net opening of 50 stores for the year and 50 were poker stores uh which you opened uh while 46:02 46 minutes, 2 seconds gross opening is around 150. So how many coco stores uh during the year have we closed? 46:13 46 minutes, 13 seconds Ankit I don't have this data handy but I will uh we can catch up separately on the floor. 46:18 46 minutes, 18 seconds Sure. Uh my last question is on the retail like for like growth. Uh this 8% growth which we have delivered is it 46:25 46 minutes, 25 seconds only for stores or full franchisee network of full thousand stores and is it the primary which we give to franchisee does it capture that data or 46:34 46 minutes, 34 seconds the consumer data? So this is consumer data an across the network. This is basically across our network. Uh if you 46:43 46 minutes, 43 seconds if you know our business model, we are on a consignment basis for on all our stores. Uh and the sale is recorded in 46:51 46 minutes, 51 seconds our books when the final consumer buys out. 46:55 46 minutes, 55 seconds Sure. Uh that's helpful. Thank you so much and all the best. 47:02 47 minutes, 2 seconds Thank you. We will take the next question from the line of Prakash Kapadia from Kapadia Financial Services. Please go ahead. 47:10 47 minutes, 10 seconds Yeah, thanks for the opportunity. Uh couple of questions. What is the share of adjacency we are targeting in the 47:18 47 minutes, 18 seconds coming years? And uh if that share you know further increases uh would the margin see more expansion is that the right understanding? 47:29 47 minutes, 29 seconds Secondly on you know Tommy and Calvin Klein any major uh cost pressures we are seeing what is the price hike mechanism 47:38 47 minutes, 38 seconds the frequency of you know price changes and something on arrow I think in the pit you've mentioned some new products 47:45 47 minutes, 45 seconds in linen so are they launched what kind of products are we looking at if you could give us some sense these were my three questions thank you 47:54 47 minutes, 54 seconds sure so I think coming back to your question on gross margin I think we do believe that with our work around overall I'd say that you know we do 48:01 48 minutes, 1 second believe that over a period of time we would like to take this to high 50s and uh it's not just about the adjacencies but I think overall we believe that 48:09 48 minutes, 9 seconds there is uh some uh headroom for growth over here and as we drive full price tools through our consumer analytics etc we do believe that we should be able to 48:17 48 minutes, 17 seconds drive that now uh coming to your question on uh the PBS side uh there definitely was an impact of GST right we 48:25 48 minutes, 25 seconds the from a slab movement to about 18% And those are the brands that kind of uh got impacted and we did see an initial and a transitory sort of a uh impact. 48:36 48 minutes, 36 seconds Having said that, I think both our brands were starting to see now a double digit traction there as well, right? Uh so I those are the two questions in 48:44 48 minutes, 44 seconds terms of arrow. I think that's a great question. U you know innovation has always been at the heart of everything that we do. Uh and that is true for 48:53 48 minutes, 53 seconds across our portfolio. Especially talking about arrow, you know, we've always been one of those companies that has been known for to be bringing the best shirts 49:01 49 minutes, 1 second in the market and with linen uh you know uh linen on trend we've been able to kind of capture that uh and bring some 49:09 49 minutes, 9 seconds great products uh out in the market and you will see uh you know you would have seen that we are kind of leading with that as well in terms of some of our uh 49:18 49 minutes, 18 seconds more localized uh store campaign as well. So uh you know this is something that is part of our DNA and we will continue to drive more of that as we go 49:27 49 minutes, 27 seconds along and and in the adjacency US polo would have the largest contribution in a brand 49:35 49 minutes, 35 seconds salience adjacent contribution that's true because US polo is at a certain size and scale uh we've also 49:42 49 minutes, 42 seconds built out the other categories uh for US polo faster so uh that's absolutely right I think US polo is as a little 49:51 49 minutes, 51 seconds ahead. Uh having said that our PBH businesses also have a strong uh adjacency uh uh business as well and 49:58 49 minutes, 58 seconds both of those you know all three of those kind of look in the same uh zone also and and directionally you know you said 50:07 50 minutes, 7 seconds would look at 50% gross margin. So the next two three years would that be possible to achieve? Is that the direction we are working on? 50:17 50 minutes, 17 seconds We have directionally been working on delivering uh towards the high 50s, right? And that's what we will go towards the next uh two to three years. 50:25 50 minutes, 25 seconds We'll continue to drive gross margin upwards as our as our direct channel also build 50:32 50 minutes, 32 seconds up. We drive uh efficiency through COGS and also reduction of discounts. We'll continue to drive that. 50:40 50 minutes, 40 seconds Thank you. All the best. Thank you so much. 50:45 50 minutes, 45 seconds Thank you. We will take the next question from the line of Vun Singh from Alpha Accurate Advisor. Please go ahead. 50:54 50 minutes, 54 seconds Am I audible? Yes, you are. Uh sure. Thank you for the opportunity. 51:01 51 minutes, 1 second Question is uh you know uh I think the previous participants has uh has asked on a growth in the inventory. So if we 51:10 51 minutes, 10 seconds just compare FI25 inventory with 26 there is almost more than 30% growth and historically we have not seen similar 51:18 51 minutes, 18 seconds kind of a growth uh given the change in the business mix and the revenue growth uh that we have delivered and uh 51:24 51 minutes, 24 seconds honestly I mean if you look at 25 and 26 the mix of the business in terms of uh revenue looks uh not significantly 51:33 51 minutes, 33 seconds different so in front of 15% revenue growth 30% inventory growth uh please help 51:39 51 minutes, 39 seconds uh no under uh deconstruct the uh uh maybe how to look at it. 51:49 51 minutes, 49 seconds So hi hi Vun as I said earlier change in channel mix I think you cannot look at the full year number you'll have to look 51:56 51 minutes, 56 seconds at a quarter on quarter number which is more representative of how the inventory is moving so our three our channel mix has changed by 3% towards the direct 52:05 52 minutes, 5 seconds that itself is almost like 6 days impact uh as we also mentioned in our investor de as well as Amisha mentioned in her 52:13 52 minutes, 13 seconds opening comments uh we had an early inwards which is also uh to mitigate some of our some of our uh basically you 52:21 52 minutes, 21 seconds know risk that we saw. If you uh if you recolct our previous call we had mentioned that there were delays on account of the geopolitical issues 52:30 52 minutes, 30 seconds Bangladesh shipments and so on and so forth. So we were really extra inverted a lot of our SS26 52:37 52 minutes, 37 seconds uh merchandise before March. Having said all that, you know, we of course used to have a four inventory turn, but that was at a certain channel mix which was more 52:46 52 minutes, 46 seconds skewed towards wholesale channels. As we move down our path of achieving a larger business in retail and B2C, we expect 52:54 52 minutes, 54 seconds our inventory terms to improve to 3.7 to 3.8. The last point point that I want to make is while this inventory is of 53:03 53 minutes, 3 seconds course there in our books it is a large part of the late inward also gets mitigated by higher creditors. So in terms of net uh working capital if you 53:12 53 minutes, 12 seconds look at it I mean over December quarter for example there was hardly any change and we continue to focus on reducing our inventory. 53:21 53 minutes, 21 seconds All right understood. And uh secondly uh uh maybe uh if uh uh if you could call 53:31 53 minutes, 31 seconds out that full price sale compared to the overall sale in our revenue has been how much in FY26 uh compared to FY25. 53:43 53 minutes, 43 seconds I mean the only thing I will say is that uh um you know we continue to clock and when you look at our gross margins as 53:51 53 minutes, 51 seconds well I mean we are we're looking healthy and positive which is an indicator of the fact that our uh you know overall sellroughs are in a good place we expect 53:59 53 minutes, 59 seconds that we will keep improving on it uh and it has improved over a period of time as well right so while we won't give out 54:06 54 minutes, 6 seconds specific numbers there but uh we're actually seeing a good traction in in that direction with our initiative around pricing and analytics coming in. 54:15 54 minutes, 15 seconds We will only continue to see improvement in that area. 54:19 54 minutes, 19 seconds Understood. The reason I was asking that is you know when you call out 40 to 50 bits expansion in margin. So uh where exactly should we expect those margin 54:28 54 minutes, 28 seconds expansion to come from? Is it only from the uh maybe uh you know uh store 54:35 54 minutes, 35 seconds maturity and uh improving uh uh output from the existing stores or from 54:43 54 minutes, 43 seconds uh increasing full price uh sale of merchandise also. So just wanted to understand that maybe how much of that journey has already been been traveled. 54:53 54 minutes, 53 seconds So absolutely we will expect to see our GP improve uh you know powered by a couple of things right so as we kind of 55:00 55 minutes drive premiumization and product innovation uh with a great product market fit we're expecting to see a better sell through and we're also 55:09 55 minutes, 9 seconds continuing to see that with our uh some of our initiatives around analytics etc uh our pricing and full price sell 55:16 55 minutes, 16 seconds through will also get better right so and with further cogs improvement all in all we expect to uh see an improvement 55:23 55 minutes, 23 seconds in GP. That's one. The second is uh you know on an ongoing basis we expect that our select should continue to improve as 55:31 55 minutes, 31 seconds well. So all of those pieces should kind of drive operating leverage for us. 55:35 55 minutes, 35 seconds All right. And just one last question if I may, if you could you know just deconstruct the 15% uh growth expectation. So how much you think uh 55:45 55 minutes, 45 seconds you know you would be uh extracting that growth from like to like and how much from retail area expansion? What is the 55:52 55 minutes, 52 seconds maths behind the 15% growth expectation guidance? 55:56 55 minutes, 56 seconds We're expecting to see about 7 to 8% of like for like uh and the rest of it to come from an expansion upsizing etc. 56:06 56 minutes, 6 seconds And even uh in like to like it should be largely uh what uh mixled price or how should we expect it to be? 56:15 56 minutes, 15 seconds Again there I would say probably an equal split in terms of driving through pricing and volume growth. 56:21 56 minutes, 21 seconds Okay. Okay. Sure. Thank you very much and wish you all the request. Thank you very much. Thank you. 56:30 56 minutes, 30 seconds We will take the next question from the line of chairman from air asset management. Please go ahead. 56:37 56 minutes, 37 seconds Uh thanks for taking my questions if I have one question for you. When you say I mean you would be open to something strategic at a portfolio level. Does 56:46 56 minutes, 46 seconds that imply that the current portfolio alone may not be sufficient to deliver the growth momentum or that you are targeting at a company level also I mean 56:55 56 minutes, 55 seconds given the capabilities of the company can you elaborate more on your thoughts on wheel versus buy strategy. 57:01 57 minutes, 1 second Sure. So I think one thing that I do want to highlight is that our overall plan is around driving growth through 57:08 57 minutes, 8 seconds our own five brand portfolio uh and the strategy that I just laid out in my opening comments which is our own organic growth around 15%. Right? That's 57:17 57 minutes, 17 seconds what we've spoken about in the mid double digit is what we've spoken about right um the only thing that I've highlighted is that uh the question on 57:25 57 minutes, 25 seconds are we open yes if something comes which is more relevant from a strategic direction point of view and it looks 57:32 57 minutes, 32 seconds like something that will allow us to double down from a capability or from a future growth point of view we might look at it hope that answers your 57:40 57 minutes, 40 seconds question okay but any wide space you are seeing in a portfolio debt I mean I could feel through the volume. 57:47 57 minutes, 47 seconds I think it's too it's too early to uh you know comment on that. Like I said, we picked up some deep consumer work and we are very very clear on the areas that 57:56 57 minutes, 56 seconds we want to double down with our brands in terms of men's wear men's apparel space itself and we believe our portfolio is actually really well poised to service some of those specific 58:04 58 minutes, 4 seconds opportunity areas. Uh there are a couple of spaces that we want to uh build and we might still seek to build it organically. 58:12 58 minutes, 12 seconds Wow, it's great to add. And the last question I mean right now the demand seems to be I mean holding up for now and you are clearly investing behind it 58:20 58 minutes, 20 seconds through the marketing investment but you have also flagged out the influencer I mean as well is to consumption. In that context I mean can you elaborate more on 58:29 58 minutes, 29 seconds the internal cost control measure that are already underway at the company level that can help you to protect the margins in the coming times versus just 58:38 58 minutes, 38 seconds simply cutting down your marketing spend. 58:41 58 minutes, 41 seconds So you know you know we are uh we are always continuously looking at it from an organization point of view and we are quite uh nimble about looking at cost 58:50 58 minutes, 50 seconds structure across the board uh and as we look at uh the next few months and some of the inflationary pressures we are 58:57 58 minutes, 57 seconds conscious of it and we're just putting in cost controls in various areas uh so I know nothing uh nothing one point to 59:04 59 minutes, 4 seconds uh specify but I think that's something that we're looking at across the board. Okay. Okay, that's it from my friend. All the best for the future. 59:13 59 minutes, 13 seconds Thank you. Thank you so much. 59:18 59 minutes, 18 seconds Thank you very much ladies and gentlemen. That was the last question and with that concludes the question and answer session. I now have the 59:27 59 minutes, 27 seconds conference back to Mr. Ger Chiplanga for the closing comments. Thank you and over to you sir. 59:34 59 minutes, 34 seconds Thank you everybody for joining the call uh today. If you have any questions uh please feel free free to reach out to me 59:41 59 minutes, 41 seconds and we would be happy to answer them offline. Thank you so much. Have a good day. 59:47 59 minutes, 47 seconds Thank you members of the management. On behalf of Urban Passions Limited, that concludes this conference. Thank you all for joining with us today and you may now disconnect your lines. Thank you.