Baazar Style Retail Limited — Q2 FY26

Baazar Style Retail Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=IlaVzcadrxQ Published: 6 months ago

0:00 Ladies and gentlemen, good day and welcome to Vazar Style Retail Limited Q2 and H1 FY26 earnings conference calls 0:08 8 seconds hosted by Philip Capital India Private Limited. As a reminder, all participant lines will be in the listenon mode and 0:16 16 seconds there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please 0:24 24 seconds signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being 0:30 30 seconds recorded. I now hand the conference over to Mr. Ruuchan from Philip Capital India Private Limited. Thank you and over to you sir. 0:41 41 seconds Good afternoon everyone. On behalf of Philip Capital Private Client Group I welcome all of you to the Q2 H1 FYI26 0:49 49 seconds earning conference call of Bazar Style Retail Limited. Today from the management we have Mr. Srian Surana, managing director, Mr. Dr. Nitan 0:57 57 seconds Singana, Chief Financial Officer. The management will be sharing the key operating and financial highlights for the quarter and half year ended 30th 1:05 1 minute, 5 seconds September 2025 followed by a question and answer session. Please note this call may contain some of the forward-looking statements which are 1:14 1 minute, 14 seconds completely based upon company's beliefs, opinions and expectations as of today. 1:19 1 minute, 19 seconds These statements are not a guarantee of company's future performance and involve unforeseen risks and uncertainties. The 1:27 1 minute, 27 seconds company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after a statement is made. I now hand over the 1:36 1 minute, 36 seconds conference call to Mr. Srian Surana for his opening remarks. Over to you sir. 1:42 1 minute, 42 seconds Thank you. Uh good afternoon everyone and thank you for joining us today. Our investor presentation has been uploaded on stock exchange and on our website and I hope you had a chance to review it. 1:54 1 minute, 54 seconds Let me take you through the key highlights of our business performance, the initiatives driving our growth and the broader retail environment that 2:02 2 minutes, 2 seconds continues to support our journey. The second quarter saw a strong demand uptake aided by the early arrival of festival season which is a key consumption period in our core market. 2:12 2 minutes, 12 seconds Our regional leadership in the underpenetrated eastern region continues to strengthen as our customers increasingly graviate towards branded 2:21 2 minutes, 21 seconds value fashion. Our Y product portfolio serves the entire family driving higher footfalls and improved basket sizes. 2:28 2 minutes, 28 seconds While festival timing can create some quarterly variation given our geographical mix as we expand into newer cluster and states this impact will 2:36 2 minutes, 36 seconds gradually even out providing a more balanced growth trajectory throughout the year. I am pleased to share that we have delivered another quarter of strong 2:44 2 minutes, 44 seconds performance continuing our healthy growth momentum. Q2 FI26 marked a milestone period for us with our highest 2:52 2 minutes, 52 seconds ever quarterly and half yearly revenue and operating metrics across key parameters along with profit growth. 2:58 2 minutes, 58 seconds Starting with the financial performance in Q2 FI26 revenue from operational grew 71% yearonear to 532 KES supported by 3:08 3 minutes, 8 seconds strong growth across both our core and focus markets. A beta rose 184% year-onear to 69 crores reflecting 3:15 3 minutes, 15 seconds improved operational efficiency and discipline cost management. Coming to some noteworthy operating metrics during 3:22 3 minutes, 22 seconds the quarter our core market grew 70% yearon year while focus recorded 77% 3:29 3 minutes, 29 seconds growth underscoring the broadbased strength of our brand and execution strategy. We are well on track to meet our new store opening guidance having 3:38 3 minutes, 38 seconds achieved 72% of our FI26 target with 36 net stores added in the first half. Uh we are in guidance with the growth of 40 3:47 3 minutes, 47 seconds to 50 stores for this fiscal year. Our total retail area now stands at 2.3 million square ft a 38% increase over 3:54 3 minutes, 54 seconds last year reinforcing our growth rectory in the retail landscape. The growth action continued in our private table 4:01 4 minutes, 1 second sales which grew 119% yearonear in Q2 FI26 and contributed to 58% of overall 4:09 4 minutes, 9 seconds sales. Our sales per square saw a strong 22% uptick to 865 in Q2 FI26 from 78 in 4:17 4 minutes, 17 seconds the previous quarter. Importantly, our inventory days saw a decline from 108 4:23 4 minutes, 23 seconds days in Q2 FI25 to 86 days in Q2 FI26, underscoring our decision to invest in technology to streamline our operations. 4:35 4 minutes, 35 seconds On the back of just visibility and a strong H1 FI26, we are revising our topline growth guidance for FI26 from 25 4:44 4 minutes, 44 seconds to 30%. Our pre-Indius IITA margin is guided at 7 to 8% and pre-InEnd PET 4:51 4 minutes, 51 seconds margin at 3 to 4%. India's IBITA is guided at 14 to 15% and India's pet margin without exceptional gain will be 4:58 4 minutes, 58 seconds between 2 to 3%. Reflecting continued operational discipline and improving cost absorption. We are on track with our expansion plan. We reform our target 5:07 5 minutes, 7 seconds of opening 40 to 50 stores this year, reinforcing our confidence in the scalability and profitability of our model. Before we move to the discussion 5:15 5 minutes, 15 seconds on the operational aspect of the business, we would like to highlight that we have undertaken a strategic reassessment of our lease term under 5:23 5 minutes, 23 seconds index 116 to better align with our evolving store portfolio and expansion strategy. As a result, we recognize a 5:30 5 minutes, 30 seconds one-time exceptional gain of 55 cr which has been disclosed separately in the financials. Going forward, this will help in reducing the gap between the 5:38 5 minutes, 38 seconds pre-Indius and India's profitability. We have provided detailed information on this adjustment in the investor presentation including the pre-index 5:46 5 minutes, 46 seconds financials. In the interest of time, we will be h happy to take up any specific queries relating to this separately on a 5:54 5 minutes, 54 seconds one-on-one basis after this call. Please get in touch with our I team for this on the business update. Let me begin with 6:02 6 minutes, 2 seconds our progress on some of our key pillars that we that will have identified through global or future growth on digital transformation. We are making 6:11 6 minutes, 11 seconds significantly headway in our digital and warehouse transformation journey with a planned investment of 2025 cr this year towards building an integrated and 6:19 6 minutes, 19 seconds intelligent technology backbone. The implementation of SAP for enterprise resource planning expected to go live in 6:26 6 minutes, 26 seconds the next 6 months enabling realtime datadriven decision making across functions. Alongside this we are deploying info for warehouse management 6:34 6 minutes, 34 seconds integrating the gold best advanced replenishment solution and do Dom do Dom 6:38 6 minutes, 38 seconds do Dom do Dom do Dom do Dom do Dom do Dom do Dom do Dom do for business intelligence and analytics. Together this system will streamline processes enhances supply chain visibility and optimize inventory turnaround laying the 6:47 6 minutes, 47 seconds foundation for a future ready scalable organization. Moving to the merchandising which continues to remain one of the strongest pillar of our 6:55 6 minutes, 55 seconds business. Over the past few quarters, we have significantly strengthened our team by bringing in experienced professionals from leading retailer and apperal 7:02 7 minutes, 2 seconds companies. This infusion of talent, the overall retail environment, this infusion of 7:09 7 minutes, 9 seconds this infusion of talent, the overall retail environment in India remains highly supportive of our growth strategy. Tier two and tier three makes 7:18 7 minutes, 18 seconds market continues to lead the consumption momentum driven by rising disposable income, aspirational lifestyle 7:25 7 minutes, 25 seconds and a clear shift from unorganized to organized retail. Simultaneously, tier 1 markets are witnessing strong participation from younger uh value 7:33 7 minutes, 33 seconds conscious consumer who seek both affordability and style. Despite global macro uncertaintities, domestic consumptions remain resilient with 7:41 7 minutes, 41 seconds customer increasingly prioritizing the quality, experience and value. A space where bazar style is naturally positioned as a leader. When we look at 7:50 7 minutes, 50 seconds the broader retail landscape, the value segment in India is still at the nent stage with enormous untapped potential. 7:58 7 minutes, 58 seconds Unlike developed markets such as the US or Europe where one or two large players dominate the space, India currently lacks a single national value retail 8:06 8 minutes, 6 seconds leader. This creates a wide and open opportunity and bazar style aims to pull this wide space. We believe India's 8:14 8 minutes, 14 seconds consumption story will be value retailerdriven and our proposition style for the entire day is rupees,000 8:22 8 minutes, 22 seconds captures that essence preach. It's an offering that combines aspiration with affordability and this positioning has connected powerfully with the consumer 8:30 8 minutes, 30 seconds across our market. Now coming to the operational parameter, same store sale growth stood at 22% in 8:37 8 minutes, 37 seconds Q2 FI26 and 10% in H1 FI26. Private table contribution was 58% in Q2 FI26 8:44 8 minutes, 44 seconds versus 45% in Q2 FI25 and 59% in H1 FI26 versus 48% in H1 FI25. Total store count reached 215, Q2, FI26, up 36% yearonear. 8:57 8 minutes, 57 seconds Retail area now stands at 2.3 million square ft, a 38% increase from last year. Focus market performed well with 9:05 9 minutes, 5 seconds Q2 FI26 revenue at 71 crores up 77% yearonear and H1 FI26 revenues stood at 144 crores up 75% from the last year. 9:16 9 minutes, 16 seconds Average transaction value for Q2 F26 stands at,05 and 958 in H1 FI26. Number 9:23 9 minutes, 23 seconds of bills grew 69% yearonear to 5.63 million in Q2 FI26 and 58% yearonear to 10.11 million in H1 FI26. 9:33 9 minutes, 33 seconds Quantities sold increased 63% to 19.5 million units in Q2 FI26 and increased 55% to 34.5 million units in H1 FI26. 9:43 9 minutes, 43 seconds Sales per square stood at 865 in Q2 FI26 up 22% year-onear and 768 in H1 FI26 up 9:51 9 minutes, 51 seconds 12% from last year. Inventory days for the quarter reduced to 86 from 108 days while trade payable days stood at 70 9:59 9 minutes, 59 seconds compared to 81 for the same period last year. 10:04 10 minutes, 4 seconds As a value retailer with strong presence in eastern India, our demand is seasonal and influenced by regional festivities. 10:12 10 minutes, 12 seconds Hence our performance is based view on a full year basis. We remain in an expansion phase investing in new store and digital capabilities. While this 10:21 10 minutes, 21 seconds investment may temporarily affect operating margins, absolute growth continues to be strong. Revenue for Q2 FI26 stood at 532 crores reflecting a 10:29 10 minutes, 29 seconds strong 70% yearonear and 41% quarteron quarter. Gross profit for the quarter increased to 162 cr representing a 10:37 10 minutes, 37 seconds robust rise of 76% yearonear and 20% sequentially. Gross margin remains healthy at 31% expanding by nearly 90 bips on a year-on-year basis. 10:48 10 minutes, 48 seconds For the first half of FI26, our revenue stood at 910 KES reflecting a strong growth of 55% over the previous year. 10:55 10 minutes, 55 seconds Gross profit for the period increased to 298 K registering a healthy year-on-year growth of 63%. 11:01 11 minutes, 1 second On the expenses expansion expenses front, manpower cost increased by 40% yearonear primarily driven by our ongoing expansion initiatives and the addition of senior leadership talent. 11:11 11 minutes, 11 seconds Moving on, our India for Q2 FI269 cr reflecting a robust growth of 184% 11:19 11 minutes, 19 seconds year-onear and 19% quarteron quarter. On a half yearly basis, ITA rose by 92% yearonear to 127 crores. on pre-endita 11:28 11 minutes, 28 seconds for Q2 FI26 33 KES reflecting a robust growth of 933% yearonear and 33% quarter 11:35 11 minutes, 35 seconds on quarter on a half yearly basis IITA rose by 132% yearonear to 58 kores to sum up bazar style is firing on all 11:44 11 minutes, 44 seconds cylinders our differentiated value proposition discipline expansion model accelerating retail transformation and strong operating leverage we are 11:52 11 minutes, 52 seconds building a future ready scalable and profitable retail business position at the heart of India's consumption story. 11:59 11 minutes, 59 seconds Thank you for your continued trust and support. With that, I will conclude my opening remark and request the moderator to open the floor for questions. Thank you. 12:06 12 minutes, 6 seconds Thank you very much, sir. We will now begin the question and answer session. 12:11 12 minutes, 11 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove 12:18 12 minutes, 18 seconds yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 12:25 12 minutes, 25 seconds question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 12:31 12 minutes, 31 seconds The first question is from the line of Goro Jagani from JM Financial. Please go ahead. 12:39 12 minutes, 39 seconds Uh hi uh thank you for taking my question and congratulations on a strong set of revenue growth numbers. Uh my first question you know is with regards 12:47 12 minutes, 47 seconds to your guidance of you know revising it to 25 to 30% for the year. Now even if I take the higher end of the guidance at 12:54 12 minutes, 54 seconds 30%. That would mean that you know H2 revenue growth would be somewhere in the range of around 16% only. So uh so just 13:02 13 minutes, 2 seconds wanted to have your thoughts on the same uh that do we expect significant deceleration in H2 uh to have the guidance of 30%. 13:14 13 minutes, 14 seconds So yeah obviously the Q3 uh though I think we are Dulga Puja is a significant cultural and commercial event in the 13:21 13 minutes, 21 seconds eastern India but I think uh our business model is not planned on it but again Ja puja plays a very important role for us so Q2 becomes a bigger 13:30 13 minutes, 30 seconds quarter across all the quarters uh but while saying that I think uh we have grown at a 55% yearon year and uh the 13:39 13 minutes, 39 seconds guidance that we have revised from 2130 is again as I said key We have a conservative approach towards the revenue. We target more but try to 13:48 13 minutes, 48 seconds achieve uh the numbers that we say. Uh so 30% is the guidance. I think mathematically what you are saying is 13:55 13 minutes, 55 seconds correct. Uh but I hope we'll be able to achieve 30% revenue. 14:02 14 minutes, 2 seconds Okay. Uh and uh sorry I missed out on the guidance that you also revised for the pre-index margins. Uh both the pre-industa and the pad margins for the year. If you can just reiterate that. 14:14 14 minutes, 14 seconds So, so we have not revised the guidance uh we have set key on the index uh because the PAT with the exceptional gain it will be more so without 14:23 14 minutes, 23 seconds exceptional gain the PA for ind is between 2 to 3% only. So we have not revised the guidance for PAT or EIA but the guidance has been only for the revenue. 14:33 14 minutes, 33 seconds Okay. Okay. And uh have you given the number for the AIA also the reported uh AITA margin what you are looking out uh the reason for asking this is uh you 14:42 14 minutes, 42 seconds know if we look at the gross margins also your gross margins for H1 has expanded by 150 bits. So so how should one look at the gross margins here? 14:54 14 minutes, 54 seconds So the gross margin for the entire year uh as we have already communicated in the earlier call it will be 50 pips only 15:02 15 minutes, 2 seconds because uh there Q4 there will be another USS of winter. So the margin uh will be around so uh 34% overall. 15:13 15 minutes, 13 seconds So for the full full financial it will be a 15% increase 50 right. Okay. Okay. Okay. And uh apart 15:22 15 minutes, 22 seconds from this you know we have seen this rent per square feet you know uh increasing sharply uh approximately 20% 15:29 15 minutes, 29 seconds for H1 and uh I think you have also highlighted that you know you'll be spending 20 to 25 KS towards tech and 15:36 15 minutes, 36 seconds all so so two parts to this one the tech cost would be uh capitalized or would it be taken to the P&L and also on the rent per square ft. 15:46 15 minutes, 46 seconds So in terms of when first uh as I was already mentioned the earlier cost it depends on the tier that you are opening 15:52 15 minutes, 52 seconds the stores in. So for us uh 57 56 to 57 rupees is the annual rental per square ft for this entire year in in terms of 16:01 16 minutes, 1 second uh per square foot rental that we that is we going to charge on the PL and in terms of uh capital expenditure on the 16:08 16 minutes, 8 seconds tech. So again it's divided into two parts. So for example uh SAP will be implemented and will be live uh by next 16:15 16 minutes, 15 seconds year. So the cost of SAP will be capitalized but uh as info will be live uh I believe by 1st January. So uh the 16:24 16 minutes, 24 seconds cost will be hitting to the P&L. So it will depend will be live by uh December 1st week itself. So the cost will be on 16:32 16 minutes, 32 seconds the P&L. So it will depend on the tech to tech and when there's the implementation and will like get live on in which period 16:40 16 minutes, 40 seconds but uh so when you uh so would it be uh hitting because see your capex for H1 has already been I think around year 80s 16:47 16 minutes, 47 seconds all so this increase your capex for the the year how much capex are you anticipating for the year? So our plan 16:56 16 minutes, 56 seconds is to have around 100 crores as a total capex throughout through throughout the year and as we have already opened more than 36 stores in the first half. Uh I 17:05 17 minutes, 5 seconds think uh and our target is to open between 40 to 50 stores. So for the balance six uh months the 20 cr is the planned capex that we have in our mind. 17:15 17 minutes, 15 seconds Uh okay sure. So I'll come back into the queue for more questions. Okay. 17:21 17 minutes, 21 seconds Thank you. The next question is from the line of Pesh Kaval from Noama Wealth. Please go ahead. 17:30 17 minutes, 30 seconds Thank you for the opportunity sir and congratulations on this. 17:34 17 minutes, 34 seconds Sorry to interrupt your voice is muffled. Yeah. Uh is it okay now? Hello. 17:41 17 minutes, 41 seconds Yeah. Go ahead. 17:43 17 minutes, 43 seconds Yeah. Uh so sir my first question is on inventory. So inventory has uh came down. uh do you expect this to go like 17:51 17 minutes, 51 seconds this trend to go further and inventory to come down in ter in terms of number of days? 17:59 17 minutes, 59 seconds Yeah. So we for the September as as it's as the plan that we have in our mind we have been able to execute and as a result you can see that the inventory 18:07 18 minutes, 7 seconds per square has reduced by 246 rupees from last year and uh I believe that uh the 18:15 18 minutes, 15 seconds ARS system and the thing that we are implementing on the tech side uh we are working on reducing it further. So you will see that in uh expect in the 31st March also. 18:27 18 minutes, 27 seconds Okay. center uh what can we expect on the pad side on the ported pad side for next year FI27 is expected to go towards four to 5%. 18:41 18 minutes, 41 seconds So the target by for is between 4 to 5% the pet. Okay. Okay. 18:48 18 minutes, 48 seconds Yes. Huh? The pre-indust that difference between pre-industries 18:59 18 minutes, 59 seconds which used to be very large would come down and uh yeah so uh yeah it will reduce but the impact 19:07 19 minutes, 7 seconds of India's adjustment will persist uh it will be substantially lower. uh but uh but yeah you can say that it will 19:16 19 minutes, 16 seconds be only the difference that I believe from the next year it will be only 10% of the difference between both pre and post as a profitability difference 19:25 19 minutes, 25 seconds okay sir that's really helpful and s uh just one more question uh how many stores are in pipeline and again uh the 19:33 19 minutes, 33 seconds same question as last participant are we being very conservative in terms of growth uh because uh even if I look at your inventory 19:41 19 minutes, 41 seconds levels year on year that have grown by 25%. So uh won't even at least a 20% growth be possible for H2. 19:55 19 minutes, 55 seconds See uh as I again I am retwing myself that uh as a plan uh we have taken 30% for the entire year out of which I think the first 6 months we have achieved 55%. 20:06 20 minutes, 6 seconds So from 25 already gu and because this quarter will be the big season for us uh because it has got all the winter 20:14 20 minutes, 14 seconds wedding ch um so I think after going this quarter only I will be able to give that answer to you your question 20:23 20 minutes, 23 seconds I don't want to comment something uh I don't know but I think this is a big quarter for us so let this quarter go 20:31 20 minutes, 31 seconds then only I will uh next call I will tell you the answer for this question. 20:37 20 minutes, 37 seconds Okay sir. And how many stores are in pipeline right now? 20:41 20 minutes, 41 seconds As I said 40 to 50 is the target for this year and we have already opened 36 stores uh and two has been open in this quarter. So 38 technically I think 20:50 20 minutes, 50 seconds another 10 stores will be in thin for this financial year. 20:54 20 minutes, 54 seconds Okay. Okay. Yeah. That's it from my side. Thank you. Thank you for your answers. 21:00 21 minutes Thank you. The next question is from the line of Shans J from Swan Investments. Please go ahead. 21:10 21 minutes, 10 seconds Hello. Can you hear me? Yeah. Sorry. 21:15 21 minutes, 15 seconds Yeah. So my first question is uh typically when you open new store uh how how is the SPSF of that store? Can you 21:22 21 minutes, 22 seconds explain the ramp up time a new store takes to uh uh reach the matured store? 21:28 21 minutes, 28 seconds I mean I'm just trying to understand when you open the news store what is the typical cycle how does the SPSF move? 21:36 21 minutes, 36 seconds So see in terms of SPSF it uh again depends on the tier that you are opening what we have seen in last two years uh because as a strategy uh we have taken 21:44 21 minutes, 44 seconds two approach one is to open more stores in metro and tier one also because uh that cities give us higher SPSF and 21:53 21 minutes, 53 seconds second uh to open in the same cities where we are located. So that is also giving us a good profitability in terms 22:01 22 minutes, 1 second of a simple business model if I say. So typically when a store gets open so the financial year that it gets open it 22:08 22 minutes, 8 seconds delivers a bit of 5 to 6% on an average and uh when it completes one full year it gives you a bit of uh 8 to 10%. And 22:17 22 minutes, 17 seconds on the maturity which is the L2 stage it gives you a I a bit of 13 to 15%. If you are in tier 2, tier three, tier four and 22:25 22 minutes, 25 seconds if you are in metro and tier one, it gives you around 12% of aa when it gets mature all at pre-indas at store levela. 22:32 22 minutes, 32 seconds How is it? Uh where would the revenue say? Uh how much revenue does typically a new store do versus an old matured store per month or per can understand? 22:45 22 minutes, 45 seconds So I think uh as of now we are at uh 9200 SPSF and if I talk about the newer stores uh it has yielded this year more 22:55 22 minutes, 55 seconds than 9,000 square ft to us because of uh the more stores getting opening in metro and tier one for this financial year. 23:04 23 minutes, 4 seconds Okay. 23:04 23 minutes, 4 seconds So it is in line with the older stores that way you can say in terms of SPSF. 23:10 23 minutes, 10 seconds Okay. Okay. And is there also a suspicion or a possibility that uh say you're opening new stores in metros and tier one. So do those stores tend to 23:19 23 minutes, 19 seconds higher revenues versus the other older stores that we would have had. 23:24 23 minutes, 24 seconds Excuse me. Can you just come again with the question? Can you be a little loud because I'm unable to hear you properly? 23:29 23 minutes, 29 seconds I'm saying I'm saying have we come across a situation where uh say you're opening new stores in uh tier 1 and metro city. So uh is there a possibility 23:38 23 minutes, 38 seconds that newer stores tend to do higher revenues uh versus the older matur which were in tier 2 working? 23:46 23 minutes, 46 seconds Yeah. So metro stores typically gives you a SPAC of more than 10,000 square ft whereas uh tier 2 tier three gives you a 23:55 23 minutes, 55 seconds SP of around 8,000 to 8,500 rupees typically. So the SPS will always be higher on the metro and tier one. Again 24:02 24 minutes, 2 seconds the rentals will also be higher on tier uh tier one and metro cities. 24:07 24 minutes, 7 seconds Also in the last one year how many uh stores out of uh the 36 that we've opened or 38 we've opened would be in 24:15 24 minutes, 15 seconds the metro. Can you help us with the breakup? 24:19 24 minutes, 19 seconds So uh I I can take this question offline in terms of the breakup but yeah overall as I said key the average SPSF for all the stores that has been opened this 24:27 24 minutes, 27 seconds year on the annualized basis is more than uh more than 9,000 ft² which is in line with the numbers that we have 24:35 24 minutes, 35 seconds achieved for the overall uh company level sales. 24:38 24 minutes, 38 seconds Got it. Got it. And my last question is that when sorry to interrupt please reju for more questions. 24:47 24 minutes, 47 seconds I'm just uh this is my second question. 24:52 24 minutes, 52 seconds Uh we have other participants waiting for their turn. Please rejoin the queue. 24:59 24 minutes, 59 seconds Thank you. The next question is from the line of Shira from Keynote Capitals. Please go ahead. 25:06 25 minutes, 6 seconds Yes, thank you for the opportunity. Uh congratulations for a good set of numbers. Uh one thing I would like to know is the update on the insurance 25:15 25 minutes, 15 seconds money which which we are expected to receive uh due to the fire incident. Is there any update on that? 25:23 25 minutes, 23 seconds Thank you Shira. Uh so on the insurance claim uh as you said last call also that we have received already the asset part 25:32 25 minutes, 32 seconds which is 3.48 48 cr and in relation to the inventory the company has submitted all the documents uh related to the insurance claim and the assessment process by the insurance is in progress. 25:43 25 minutes, 43 seconds We are in continuous communication with the insurer to ensure timely completion. 25:48 25 minutes, 48 seconds The company is following up on the matter and any further development will be communicated as and when they occur. 25:56 25 minutes, 56 seconds We expect the resistance very soon but I don't have any a fixed timeline in my hand. I think uh the first part of the insurance has already been uh resolved 26:04 26 minutes, 4 seconds and this is the inventory part in which the discussion is going on. 26:08 26 minutes, 8 seconds As inventory part is a bigger chunk of the money. Uh once this received can I expect that the current run rate of stores that we have about 40 to 50 we 26:18 26 minutes, 18 seconds are going to utilize this money to increase the additional stores or could you just let me know what are your thoughts if this money gets received 26:25 26 minutes, 25 seconds where it is going to be used? So uh the guidance will remain largely intact. 26:31 26 minutes, 31 seconds We'll be opening 40 to 50 stores and the plan has been made in such a way that uh uh with the insurance money coming in it 26:39 26 minutes, 39 seconds will be used for the working capital efficiency because on the capex front we are already ining the uh we are doing 26:48 26 minutes, 48 seconds internal approvals and the banking limits. So the plan will be intact between 40 to 50. We will not be increasing the speed of store count. 26:57 26 minutes, 57 seconds Fair enough. Fair enough. Generally Q3 are the strongest because the growth. So based on month and are we seeing the 27:07 27 minutes, 7 seconds same traction of growth which has been going forward. 27:10 27 minutes, 10 seconds So see uh for us because the festival of Dau Puja came in September. So obviously uh there has been a prepment of festival 27:19 27 minutes, 19 seconds which led to a higher growth in Q2. But while saying that Q3 remains a very strong quarter for us both in terms of 27:25 27 minutes, 25 seconds revenue and profitability because in our total count of 250 stores still more than 120 stores are such which relies 27:34 27 minutes, 34 seconds purely on Diwali and Shut and I think uh all the stores including the Bengal Assam every store uh in terms of winter 27:41 27 minutes, 41 seconds in terms of wedding so all these uh things are celebrated in a manner in every state. So I think there is a good 27:48 27 minutes, 48 seconds sales in terms of winter. We are seeing a good traction this time. Winter is looking good uh and it started well. So 27:55 27 minutes, 55 seconds we are seeing a good sales coming from winter stocks uh largely from across the zone. So I'm expecting uh upcoming 28:02 28 minutes, 2 seconds quarter to be a good quarter considering all the festivals lineup in this quarter. 28:09 28 minutes, 9 seconds And I'll join my video. Thank you. 28:14 28 minutes, 14 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address questions from all the participant, kindly limit your questions 28:23 28 minutes, 23 seconds to two per participant. Should you have a follow-up question, please rejoin the queue. 28:29 28 minutes, 29 seconds The next question is from the line of Deepak Pod from Safire Capital. Please go ahead. 28:37 28 minutes, 37 seconds Am I audible sir? Yeah, you audible. 28:40 28 minutes, 40 seconds Yeah. Okay. Thank you very much for this opportunity. So just first of clarification uh I mean um next year Pat M you said on pre-India's 4 to 5% on 28:49 28 minutes, 49 seconds India's what is the expectation 3 to 4%. 28:55 28 minutes, 55 seconds Okay 3 to 4% on India's basis and um and out of this uh 250 stores we have how much would be mature and how how much would be new stores? 29:06 29 minutes, 6 seconds So for our tax 150 stores are 152 stores are mature which is coming into L2L collection and balance are uh new and uh below 18 months of aging. 29:17 29 minutes, 17 seconds Okay. Okay. And and in terms of depreciation I was just reading through because of this reassessment of lease terms we are expecting 10% increase in depreciation express quarteron quarter. 29:27 29 minutes, 27 seconds I mean can you can you throw some more light on that? 29:30 29 minutes, 30 seconds Yeah. Uh because of the reassessment our um leaseold improvement depreciation will increase 29:38 29 minutes, 38 seconds right and that will be a 10% increment quarter on quarter going forward. 29:44 29 minutes, 44 seconds So 42 crores is what we did in two second quarter. So we expect 10% on increase. 29:49 29 minutes, 49 seconds No no no sir. So sir you are taking into consideration the index. I am talking about the pre-index depreciation which will increase by 10%. 29:58 29 minutes, 58 seconds Uh-huh. Right. So, so, so it is 10 K quarterly. So, it will increase to 11 cr. Okay. And what about India? 30:07 30 minutes, 7 seconds So, India's there will be a benefit of depreciation and interest put together there will be a benefit of 5 quarter on quarter. 30:18 30 minutes, 18 seconds Okay. Okay. No. So, if we take this quarter as a reference, I mean depreciation plus interest was around um close to 60 crores, right? So, so some 30:26 30 minutes, 26 seconds reference point over that. I mean how should one look that 60 crores in India basis going forward? 30:31 30 minutes, 31 seconds Yes. Yes. Yes. So so out of that 41 cr was the u was the interest and 30:38 30 minutes, 38 seconds depreciation under inds right and 20 cr was the depreciation under the pre-nindas. So if you put together it 30:46 30 minutes, 46 seconds was 61 cr. So the benefit will be 5 K towards the depreciation and interest 30:52 30 minutes, 52 seconds under India and 1 K for expenses towards the depreciation on leal improvement. So 30:59 30 minutes, 59 seconds ultimate uh in uh benefit will be 4 K quarter on quarter. 31:05 31 minutes, 5 seconds Okay understood and just one last small thing in terms of private labels um so currently we are at about 59%. So any 31:14 31 minutes, 14 seconds aspiration we have I mean over next three years guys we want to take this private labels and what's the private level margin differential versus the other brands. 31:22 31 minutes, 22 seconds So sir I have said in my earlier call also our expectation is to reach to 65% of the sales coming from private label by FI27. 31:30 31 minutes, 30 seconds Uh in terms of margin uh right now we want to scale our private labels rather one of our private labels square app has already touched 227 crores of revenue 31:38 31 minutes, 38 seconds for first 6 months this year itself and idea is to scale these labels in terms of margin differentiation as of now we 31:46 31 minutes, 46 seconds have a difference of uh in different private labels between 75 to 1.5%. 31:52 31 minutes, 52 seconds But uh going forward once the labels are uh settled in the market and people are coming to the store asking for those 31:59 31 minutes, 59 seconds labels that is the time we will again go back to the whiteboard and plan the strategy around that. As of now the idea is to reach 65% of revenue by FA 27 32:08 32 minutes, 8 seconds through private label sales. Expand the private label every person who is coming. We want one article or two articles of private label in his in in 32:17 32 minutes, 17 seconds his or her hand so that they can understand the quality that we are working on and next time we can increase 32:23 32 minutes, 23 seconds the quantity of those labels in the repeat purchase hand repeat purchases hand that way. 32:32 32 minutes, 32 seconds Understood. Understood. But that's very helpful sir. That would be it from my side. Uh wish you all the very best. Thank you. Thank you so much. 32:41 32 minutes, 41 seconds Thank you. The next question is from the line of Akash Chain from Money Curves Analytics. Please go ahead. 32:51 32 minutes, 51 seconds Yeah, thank you so much. Uh I have one very basic question sir. I have been following the company only very recently. So uh as I understand the Q2 32:59 32 minutes, 59 seconds and Q4 gross margins are lower because of the end of season sales and Q Q1 and Q3 there is no end of season sales. So 33:07 33 minutes, 7 seconds the gross margins are higher but when I compared to some other players in the industry they do not show this kind of variation in quarterly gross margins. So 33:16 33 minutes, 16 seconds can you uh help me understand why we have such higher gross margin variation for us as compared some of the other 33:23 33 minutes, 23 seconds larger players in the industry who have quite stable cross money across quarters. 33:28 33 minutes, 28 seconds So the main reason beh the concentration that we are having uh in Bengal and Assam zone. So typically entire India 33:36 33 minutes, 36 seconds the Q3 is the biggest quarter for the any retailer in the garment space. But because of our presence in Bengalon and 33:44 33 minutes, 44 seconds Assam in terms of the concentration that we are having so the fluctuation in Daau Puja leads to a variation in the sales 33:53 33 minutes, 53 seconds in both Q2 and Q3. So if a sale of Puja is in Q3 only so that time you will see the numbers matching with the all the 34:02 34 minutes, 2 seconds national retailers Q2 will have a lower margin because of July and August being the end of season sale but because the 34:09 34 minutes, 9 seconds puja shifted to September and September then then becomes a festival month for us as a result festival buying happens 34:16 34 minutes, 16 seconds and as a result the gross margin on the festival buying is more compared to non-festestival. So as a result the overall gross margin increases for that 34:24 34 minutes, 24 seconds quarter. So this puja shift is actually uh because of that the variation for our company is there but as we are opening 34:32 34 minutes, 32 seconds more store in the focus market and as the concentration uh between the Assam, Bengal and other regions will be growing 34:40 34 minutes, 40 seconds I will say when the focus will grow the balance will come in the terms of revenue that we generating from all the states. that time I think the numbers 34:48 34 minutes, 48 seconds will look uh similar to the national fair but as of now till the time we have a higher concentration in this geographies so the number will look 34:55 34 minutes, 55 seconds little skewed compared to the other retailers sorry Q2 gross margin would have been even 35:04 35 minutes, 4 seconds lower than what we reported is is is that yes yes yes that is what I'm saying because if for example in the September 35:12 35 minutes, 12 seconds month uh maybe we would not have sold the festival ual stock resulting in the higher margins. We would have sold or maybe some discount would have been 35:20 35 minutes, 20 seconds going on in the month of September itself if Dauja was in uh October. 35:27 35 minutes, 27 seconds Understood sir. Thank you so much. Yeah. 35:33 35 minutes, 33 seconds Thank you. The next question is from the line of Hitendra Pradhan from Maximal Capital. Please go ahead. 35:41 35 minutes, 41 seconds Hi sir. Um thanks for the opportunity. 35:44 35 minutes, 44 seconds Uh so my first question is regarding uh you know your uh corporate expenses uh this quarter. If you can give us the bifocation like of your store level 35:54 35 minutes, 54 seconds margin and you know your uh corporate expenses or just a color on the corporate expense and what part what was due to the employees that you're hiring 36:01 36 minutes, 1 second and uh um you know the other cost that you're uh you know being this quarter. 36:08 36 minutes, 8 seconds So in terms of uh company at the company level our uh total IITA stands at 6.8% 36:16 36 minutes, 16 seconds on pre-index out of which the store stands at 12.83%. 36:20 36 minutes, 20 seconds And 6% is the HO cost for the first half of this year. 36:27 36 minutes, 27 seconds Okay. And that's said like you know your employee like for the corporate like I assume like the hirings that you are doing uh for the supply chain and your 36:36 36 minutes, 36 seconds ops they are under the corporate expenses. So yes they are on the corporate expense here. 36:42 36 minutes, 42 seconds I just want to understand so sir like you know your store level like employee expense is that uh seen a material pick up or you know it is more due to your uh hirings uh under the corporate umbrella. 36:54 36 minutes, 54 seconds So I I think in uh our employee cost overall has increased more on the corporate side comparatively than the 37:02 37 minutes, 2 seconds store side. Uh as I said that the overall the store metrics looks good only because we have been able to achieve 12.83 at the store level liita 37:10 37 minutes, 10 seconds on pre and if I talk about the mature stores it has given us a bit of around 14% for the 37:16 37 minutes, 16 seconds first 6 months. So that is well in the range that we have planned on the over store side. the corporate as as we are 37:24 37 minutes, 24 seconds hiring a lot of people from uh the stalwarts uh from the industry and the considering the future plan that we have 37:31 37 minutes, 31 seconds in mind. So it's the front loaded we are just frontloading the expenditure on the manpower side at the corporate level. 37:40 37 minutes, 40 seconds Got it sir. Got it. Understood. And so my second question is related to the uh reassessment of the lease assets. Can 37:48 37 minutes, 48 seconds you just elaborate like you know what was the resting again because uh um 37:58 37 minutes, 58 seconds yeah can you just come again with a question? Yeah, on the on the reassessment of the lead assets and the 55CR uh that uh you know gains that you 38:06 38 minutes, 6 seconds are taking onto your P&L, can you just you know elaborate on you know what was the rational behind it and why did you 38:13 38 minutes, 13 seconds what what exactly changed in terms of the lease terms or is it to do more with the renewal or 38:21 38 minutes, 21 seconds why why did you take this accounting change this quarter? 38:25 38 minutes, 25 seconds I guess that there were multiple reasons to it. First thing uh I think uh this particular uh system allows us to first 38:33 38 minutes, 33 seconds thing most important thing is that there's a huge variation between indexes because of the uh lease handling that we 38:41 38 minutes, 41 seconds were doing and uh we came to understand the correct approach while talking to big four and everyone and then 38:49 38 minutes, 49 seconds understood then and in this particular method we are assessing each lease individually after considering the business needs 38:56 38 minutes, 56 seconds store performance and market changes that are having on that store and uh I think that is a very detailed list that 39:04 39 minutes, 4 seconds they have prepared and as I've mentioned earlier also we'll be happy to address specific queries regarding this but it will take a lot of time I think in the 39:12 39 minutes, 12 seconds interest of time I will suggest you to have a prior uh appointment with the IR with the CFO and he will explain you 39:19 39 minutes, 19 seconds that in the detailed structure yeah that makes sense yeah thank you 39:29 39 minutes, 29 seconds Thank you. The next question is from the line of Sashanit Paul from 1 to9 wealth. Please go ahead. 39:36 39 minutes, 36 seconds Yep. Uh thank you for the opportunity and uh good afternoon sir. Uh my first question is uh can you uh help me to understand what's the percentage of 39:44 39 minutes, 44 seconds revenue comes from the products or apparel priced above 1,000 rupees? Any rough idea? 39:52 39 minutes, 52 seconds So see as a company we don't have very large assortment. maybe uh 12 to 15% of the assortment is only is above thousand range. 40:01 40 minutes, 1 second Uh so the percentage of sales is very lower on the thousand and above side on the garment side. 40:08 40 minutes, 8 seconds Okay. Uh second question is as you all know like from 22nd September the GST uh reduced from 12% to 5% for the products 40:17 40 minutes, 17 seconds priced within 1,00 to 2,500. Uh but for the garments those are priced above 2,500. So their GST rate increased from 40:26 40 minutes, 26 seconds 12% to 18%. Uh however while I visited many of your style bazar store in and around Kolkata. So I noticed a good 40:35 40 minutes, 35 seconds banner GST batch. So on that banner while I'm checking that you are offering the discount of this 6.5% even for the 40:44 40 minutes, 44 seconds uh products those are priced above 2,500 like there are products 3,000 3,500. I can understand there are very few 40:51 40 minutes, 51 seconds products on those price range but even for those products 3,000 3,500 you are offering that 6.5% sort of discount but 41:00 41 minutes actually on those price range GST increased from 12 to 18. So can you help me to understand your uh strategy here 41:06 41 minutes, 6 seconds uh and how is it like you're observing the GST hike or what's your strategy regarding this GST thing? So uh preGST 41:16 41 minutes, 16 seconds uh scenario so above 1,000 rupees uh uh cost sale price we we were you charging 41:25 41 minutes, 25 seconds 12% from the customer right and post GST revision the increase happened from,000 41:33 41 minutes, 33 seconds to 200 2500 so the GST rate reduced from 12 to 41:39 41 minutes, 39 seconds 5% for this range 1,000 to 2500 so on that article because we are offering discount of 6.25%. 41:47 41 minutes, 47 seconds And rest we are not charging anything from the customers. 41:53 41 minutes, 53 seconds So we we thought of trans we thought of passing it the benefit to everyone uh any MRP of 1,000 rupees in our portfolio uh to the consumer. 42:03 42 minutes, 3 seconds Yeah. But in in all of your stores like in Kolkata be it in Axis mall or whatever on the promotional banner we 42:11 42 minutes, 11 seconds can see that even for the products those are priced at 3,000 there also you are opening. 42:16 42 minutes, 16 seconds Yeah we have we have pass on because that is very very negligible quantity that we have in the store. So we have passed on the entire this 6.5% benefit 42:23 42 minutes, 23 seconds to the consumer across all the MRPs of,000 rupees. 42:28 42 minutes, 28 seconds Okay. And uh on the GST front itself there is also a change of the GST in the value chain like in fabric uh uh in uh I 42:37 42 minutes, 37 seconds mean all the raw material I mean this entire value chain. So do you think that will be beneficial for the company or not? So see in the broader sense you can 42:46 42 minutes, 46 seconds say yeah obviously as the GST reduces uh the people will have more disposable income in their hand which will ultimately flow to the consumer section 42:55 42 minutes, 55 seconds only. uh but yeah it will uh it is not that it will immediately gets into the supply chain in terms of product as we 43:02 43 minutes, 2 seconds speak uh it's not that the fabric uh there have been tax change in the fabric side so uh I don't think that each and 43:10 43 minutes, 10 seconds every fabric it there are lot of variation in the fabric structure also where the GST rate has reduced and where 43:16 43 minutes, 16 seconds there has not been any reduction or increase of GST so I think as of now we have not seen any uh reduction in the 43:24 43 minutes, 24 seconds fabric price for at least this uh summer season buying that we are doing going forward. If any because of any 43:32 43 minutes, 32 seconds just rate reduction on the fabric side any pass one that we get from the uh from the merchandise fabric 43:40 43 minutes, 40 seconds manufacturers we will be able to pass in again to the consumer because we don't want to increase the price we just want we just want to have a fair pricing to for the consumer. 43:52 43 minutes, 52 seconds Okay, thank you. That's all from my side. 43:58 43 minutes, 58 seconds Thank you. The next question is from the line of Vijaya Chawan from RHPMS. Please go ahead. 44:06 44 minutes, 6 seconds Yeah. So my first question is on the consumer sentiment for the October month in terms of footfalls. So can you just 44:13 44 minutes, 13 seconds elaborate and throw some light like how we are seeing for the October month or post Q2 what's the consumer trend and sentiment? So that is my first question. 44:22 44 minutes, 22 seconds Yeah. 44:24 44 minutes, 24 seconds So in terms of consumer sentiment I think uh we have witnessed a a positive sentiment across the zone. The only 44:32 44 minutes, 32 seconds challenge was I think with the rain this time the rain effect was from end of September till 15th of October. So there 44:39 44 minutes, 39 seconds rain was there but apart from that the the footfall looks good to us. As I said the winter uh uptake in sale has been 44:46 44 minutes, 46 seconds good as of now we are just uh we are just we were just discussing yesterday only with the entire team the winter 44:54 44 minutes, 54 seconds looks good to us and with the way uh the sales are happening we expect a good quarter. We expecting a good quarter 45:01 45 minutes, 1 second this this time. So is it fair to assume the SSC that we have reported in quarter 2 will we be able to replicate in the 45:08 45 minutes, 8 seconds quarter three or somewhere it will be on the lower side then because of the festival shift. Yeah, I think obviously it will be subdued because of the 45:16 45 minutes, 16 seconds festival shift in terms of SSG and moreover uh just to give everyone this referency the SSG also doesn't give the 45:25 45 minutes, 25 seconds clear viewer view of any store mix because there are a lot of stores which are not under SSG category but are under the under the new focus market which has 45:34 45 minutes, 34 seconds got a good sales coming in the month of October, November, December and uh because our starting concentration zone 45:41 45 minutes, 41 seconds was more on Bengal Assam. So I think uh the SSG will be reflecting the picture of Bengal and Assam at the corporate 45:49 45 minutes, 49 seconds level. So just for example in the first 6 months if you see uh the focus states has given us SSG of 13%. Uh whereas the 45:57 45 minutes, 57 seconds focus state has given SSG of 10%. The focus states are doing very well this year across the zones. 46:03 46 minutes, 3 seconds So I think uh in terms of numbers yeah the numbers that we have planned we are on track to achieve that number. 46:10 46 minutes, 10 seconds Okay. And what will be the guidance for the next two years in terms of sales per square feet in terms of percentage growth if we are any targeting and what 46:17 46 minutes, 17 seconds is the normalized SSG that you would like to target for next 3 to four years. 46:22 46 minutes, 22 seconds Say in terms of revenue I have told on my previous call also that I would like to start the year with a 25% revenue 46:29 46 minutes, 29 seconds structure and as the year go if there's a increase we would change the guidance but the business plan will be created on 46:36 46 minutes, 36 seconds the 25% revenue growth with the SSG of again 6 to 7%. So that will be the 46:43 46 minutes, 43 seconds structured planned way to go ahead and uh for the next two years at least post that depends on the strategy that the company adopts to open more stores. 46:53 46 minutes, 53 seconds Yeah, thank you for the great clarifications. Thank you and good luck. Thank you. 47:02 47 minutes, 2 seconds Thank you. The next question is from the line of Arman from Blue Sky Fintech. Please go ahead. 47:08 47 minutes, 8 seconds Uh yeah first of all just 47:15 47 minutes, 15 seconds the guidance part because like if we if we 47:22 47 minutes, 22 seconds account also that means we are for a growth of just sorry to interrupt hello 47:29 47 minutes, 29 seconds can you please speak a little louder hello yeah is it better hello hello Hello. 47:38 47 minutes, 38 seconds Yeah. Is it better? Hello. Yeah, now it's better. 47:42 47 minutes, 42 seconds Yeah. Yeah. Just reiterating on the guidance part sir. Uh because if still if we take into account 30% that means 47:51 47 minutes, 51 seconds for H2 we are targeting just around 10 to 11% of growth and already we are seeing October month getting good 47:58 47 minutes, 58 seconds traction. Then are we really very conservative over here? Just on that front I want to have an understanding 48:06 48 minutes, 6 seconds from uh from you. So see I think as a business we plan quarter and quarter as I said that this quarter looks good to 48:13 48 minutes, 13 seconds us and with the winter being the biggest uh I think uh uh product portfolio that sells in the month of November and 48:22 48 minutes, 22 seconds December but winter is very unpredictable in terms of sometimes now it looks good and we have seen over the 48:29 48 minutes, 29 seconds years sometimes the the climate changes suddenly which leads to a drop of sale also. So I think uh the way we see this 48:38 48 minutes, 38 seconds 30% guidance is more on the current structure and I think with this quarter going on the how this quarter spans up 48:45 48 minutes, 45 seconds after December uh then again we will be able to take a call but on a on a interest of I think uh everyone whether 48:53 48 minutes, 53 seconds it's a stakeholder or the company we we believe in conservative approach so we would like to right now stick with 30% guidance only and I think after seeing 49:02 49 minutes, 2 seconds this quarter uh then we can come again uh next in next call. 49:07 49 minutes, 7 seconds Okay. Uh as my second question is like we already have already told that we have a little bit of concentration 49:14 49 minutes, 14 seconds compared to more concentration on West Bengal and Assam and that's why our numbers are bit skewed compared to other 49:21 49 minutes, 21 seconds players. So in so when are we going to see that that going to stabilize? I mean in which financial year we are going to 49:29 49 minutes, 29 seconds see that we will be on par with to be very frank uh I don't have an answer right now for that that question 49:36 49 minutes, 36 seconds the reason is that though we are opening stores in all the geographies so what happens is that uh the Bengal has a very 49:44 49 minutes, 44 seconds high concentration of sales coming right now because of lot of stores getting open in the metro and here so I think uh that is a good I don't find it is a 49:52 49 minutes, 52 seconds challenge I think if I'm able to achieve a good profitability uh So uh that's good for the company that way. uh in 50:00 50 minutes terms of revenue yeah as we are growing more on the focus states so the balance wheel will come but uh not before I 50:07 50 minutes, 7 seconds think fi 27 or by end of fi 28 because that many number of store has to be open in those geographies which are more on 50:15 50 minutes, 15 seconds which are more focused on like uphar and jihark to cover up the sales of Bengal because because Bengal as a state also has a higher sales per square for us 50:24 50 minutes, 24 seconds because there are a lot of stores in cities Kolkata itself so we have got very high bases from Bengal coming So I think it will take at least a 28 I will 50:33 50 minutes, 33 seconds say to get things to get settled in terms of revenue contribution coming from both Bengal, Assam and other states put together. 50:41 50 minutes, 41 seconds Okay. Okay. Thanks a lot. That's all from my side. Thank you. 50:47 50 minutes, 47 seconds Thank you. The next question is from the line of Gor of Jagani from JM Financial. Please go ahead. 50:56 50 minutes, 56 seconds Uh hi uh thank you for taking my question again. I just have one question you know if we add up the depreciation number only uh for the H1 and assuming 51:05 51 minutes, 5 seconds that the Q2 number kind of the depreciation for the entire year would be somewhere around you know 150 K 51:13 51 minutes, 13 seconds versus 100 crores last year. So the depreciation the reported terms you will see a sharp jump. Is that a right understanding? 51:26 51 minutes, 26 seconds Uh just just a second. Uh yeah u gorav uh to discuss this we will take this uh 51:34 51 minutes, 34 seconds offline uh we can u 51:46 51 minutes, 46 seconds thank you the next question is from the line of pales kawal from noama wealth please go ahead 51:53 51 minutes, 53 seconds uh thank you for the opportunity again sir uh sir despite of large chunk of your stores being in Bengal with Bengal 52:01 52 minutes, 1 second and uh Pu uh Pujo being preponed your difference between your actual SSG and 52:08 52 minutes, 8 seconds normalized SSG is very low. So what could be the reason for this? 52:13 52 minutes, 13 seconds So see in terms of because see this word of normalized SSG uh just started from this April itself. If you believe we never should report this the only idea 52:21 52 minutes, 21 seconds is the way we calculate the normalized SSG is that uh the period which is uh going in both the quarters. So for example this year 11 days has been 52:30 52 minutes, 30 seconds shipped from last year October to this year September. So uh in terms of for the calculation of uh this normalized SG 52:38 52 minutes, 38 seconds we have taken from a period from 1st July to maybe 19th of September uh of the last year also. So we have just shifted. So that is a normal period 52:47 52 minutes, 47 seconds without that festival shift that we are given in terms of SSG. 52:51 52 minutes, 51 seconds So even despite of that the the growth SSG was 19%. So that is that is encouraging. Okay. Okay. Thank you sir. 52:59 52 minutes, 59 seconds That's it from my side. Yeah. 53:05 53 minutes, 5 seconds Thank you ladies and gentlemen. You may press star and one to ask a question. 53:22 53 minutes, 22 seconds The next question is from the line of Achad Pabad, an individual investor. Please go ahead. 53:31 53 minutes, 31 seconds Yeah. Hello. A uh yeah, you are audible. 53:38 53 minutes, 38 seconds Yeah. I I just wanted to know what is the growth guidance for FI27. 53:45 53 minutes, 45 seconds So see uh as of now uh as I said we aspired to grow by 25% every year that is our aspiration I have told previously 53:53 53 minutes, 53 seconds in previous call also. So that will be the uh number that we'll benchmark uh for the growth purpose. 54:01 54 minutes, 1 second Okay. And one more question like uh the prop after tax guidance of 3 to 4% is excluding the exception income we got in this quarter right? 54:11 54 minutes, 11 seconds Uh can you just come again and your voice is not audible? 54:14 54 minutes, 14 seconds I mean I mean we got exemption income of uh 50 crores this quarter right? So the bad guidance of uh 3 to 4% it is 54:22 54 minutes, 22 seconds excluding the 50 cr income you got in this quarter right? So bad guidance for pre-indas is 3 to four and without this 54:31 54 minutes, 31 seconds exceptional gain which happens to be on the index side is 2 to 3% without exceptional gain. 54:39 54 minutes, 39 seconds Okay. Yeah. Thank you. Thank you. 54:44 54 minutes, 44 seconds Thank you ladies and gentlemen. This is the last question for today. I now hand the conference over to Mr. Shrian Shirana for closing comments. Thank you and over to you sir. 54:56 54 minutes, 56 seconds So uh thank you for uh joining uh this call. We love to see you in the next call. 55:06 55 minutes, 6 seconds Thank you. 55:08 55 minutes, 8 seconds Thank you sir. On behalf of Bazar Style Retail Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. 55:16 55 minutes, 16 seconds Thank you.