Baazar Style Retail Ltd — Q3 FY26

Baazar Style Retail Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=DmeIGJfw6-0 Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Bazar Style Retail Limited Q3 FY26 earnings conference call hosted by 0:08 8 seconds Philip Capital Private Client Group. As a reminder, all participant lines will be in the listenon mode and there will 0:15 15 seconds be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please 0:23 23 seconds signal an operator by pressing star and then zero on your touchstone phone. 0:28 28 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. 0:34 34 seconds Rotu Chavan from Philip Capital. Thank you and over to you sir. 0:41 41 seconds Good evening everyone. On behalf of Philip Capital private client group, I welcome all of you to the Q39M FY26 0:48 48 seconds earning conference call of Bazy Retail Limited. Today from the management we have Mr. Srian Sudana, managing director 0:55 55 seconds and Mr. Nitan Singh Ganya, Chief Health Officer. The management will be sharing key operating and financial highlights 1:02 1 minute, 2 seconds for the quarter and 9 months ended 31st December 2025 followed by a question and answer session. Please note this call 1:10 1 minute, 10 seconds may contain some of the forward-looking statements which are completely based upon company's belief, opinions and expectations as of today. These 1:19 1 minute, 19 seconds statements are not a guarantee of company's future performance and involves unforeseen risks and uncertainties. The company also 1:27 1 minute, 27 seconds undertakes no obligation to update any forward-looking statements to reflect developments that occur after a statement is made. I now hand over the 1:35 1 minute, 35 seconds conference to Mr. Srian Surana. Over to you, sir. 1:39 1 minute, 39 seconds Good evening everyone and thank you for joining us today. Our investor presentation has been uploaded on the stock exchange and on our website and I 1:48 1 minute, 48 seconds hope you had an opportunity to review it. Let me begin with a very important strategic development for our company 1:55 1 minute, 55 seconds Balast Limited. We have secured a strategic investment of 331.53 kores from Cupid Limited through a 2:03 2 minutes, 3 seconds preferential issue of up to 1.01 cr equity warrants at an issue price of rupees 328.25 per warrant convertible into equity shares within 18 months. 2:15 2 minutes, 15 seconds This partnership is closely aligned with our long-term growth plans. The proceed from this transaction will be utilized 2:22 2 minutes, 22 seconds towards phase 4 expansion and business growth initiatives including network expansion, supply chain integration and 2:29 2 minutes, 29 seconds improve customer reach. A portion of the proceeds will also be used for repayment and prepayment of borrowings which will 2:37 2 minutes, 37 seconds result in reduction in debt and a stronger balance sheet for the company. 2:40 2 minutes, 40 seconds Equally important, this partnership brings strong operational and product synergies by leveraging Cupid's trusted and scaled manufacturing capabilities. 2:48 2 minutes, 48 seconds Bazar Style will expand it offering in the personal care and wellness category, thereby enhancing our product mix, increasing customer frequency, improving 2:57 2 minutes, 57 seconds store productivity and diversifying revenue beyond fashion. We operate 252 stores as of December 25 and we have a 3:04 3 minutes, 4 seconds clear road map to scale to 500 plus stores over the next 3 years through a discipline clusterbased approach. 3:10 3 minutes, 10 seconds Earlier our plan was to open 40 to 50 stores annually. With the capital now in place, we have the opportunity to accelerate this growth to 60 to 80 3:20 3 minutes, 20 seconds stores per year, giving us a greater headroom and flexibility for growth. We believe this strategic association 3:27 3 minutes, 27 seconds meaningfully strengthens our value proposition and supports sustainable long-term growth. If there are additional question on this, we can take 3:35 3 minutes, 35 seconds them on a separate call. For today's discussion, we would prefer to focus specifically on the Q3 and 9 month FI26 3:42 3 minutes, 42 seconds performance given the 1 hour time constraint. 3:46 3 minutes, 46 seconds Now, let me take you through the key highlights of our 9-month FI26 business performance, which clearly reflects 3:53 3 minutes, 53 seconds momentum firing on all fronts. Driven by based expansion strategy, we have consistently scaled our store network 4:00 4 minutes from 199 stores in 9 month FI25 to 252 stores in 9 month FI26, 4:07 4 minutes, 7 seconds delivering a strong 27% growth in store count. This expansion has been complemented by a steady increase in our 4:14 4 minutes, 14 seconds retail footprint with a total rental area rising to 2.35 million square ft, a robust 31% year-on-year growth. 4:24 4 minutes, 24 seconds Alongside expansion, we has strengthened our focus on brand building. The share of private label in overall revenue has 4:31 4 minutes, 31 seconds increased significantly from 44% in 9 months FI25 to 54% in 9 months FI26 4:38 4 minutes, 38 seconds translating into a revenue of 740 cr and impressive 68% year-on-year growth highlighting the growth strength and acceptance of our brand portfolio. 4:48 4 minutes, 48 seconds Further reinforcing our growth strategy, our focus states delivered a robust 61% year-on-year increase in revenue to 238 4:57 4 minutes, 57 seconds crores in 9 month FI26. As a result, their contribution to the revenue improve improved from 15% in 9 month 5:05 5 minutes, 5 seconds FI25 to 17% in 9 month FI26 demonstrating stronger regional penetration and customer traction. 5:13 5 minutes, 13 seconds Building on this robust performance accelator store expansion and strategic initiatives we revised our fullear 5:19 5 minutes, 19 seconds revenue guidance to 35% year on year our pre-industa margin is guided at 7 to 8% 5:26 5 minutes, 26 seconds and pre-India's pet margin is guided at 3 to 4% on India's basis is guided at 14 5:34 5 minutes, 34 seconds to 15% and pet margin is expected between 2 to 3% reflecting continued operational discipline and improving cost absorption. 5:43 5 minutes, 43 seconds on strategic approach of cluster based store expansion influenced SSG performance. As a result, increment 5:50 5 minutes, 50 seconds incre incremental stores were added within established cluster. However, the rapid ramp up of new stores 5:58 5 minutes, 58 seconds significantly enhanced overall cluster productivity enabling higher throughput and improved operating leverage. During 6:06 6 minutes, 6 seconds 9 month FI26 the company opened 25 new stores within the existing cluster resulting in a decline of 8% in SSG of 6:15 6 minutes, 15 seconds mature store in this clusters heavy rainfall in Bengal and unrest in part of Assam and Tripura during peak festival 6:23 6 minutes, 23 seconds impacted SSG in 9 month FI26 states other than West Bengal Assam and Tripura continue to deliver healthy growth with 6:31 6 minutes, 31 seconds SSG remaining resilient at 8% in 9 month FI26. 6. Hence the SSG guidance for FI26 is being revised to 4 to 5%. 6:42 6 minutes, 42 seconds Let me now briefly touch upon the key pillars that will drive our future growth. Our clusterled expansion remaining the foundation of our 6:49 6 minutes, 49 seconds strategy. We are pursuing a focused rollout that enables superior site selection, deeper understanding of catchments, faster store ramp up and 6:57 6 minutes, 57 seconds quicker realization of operating leverage and economies of scale. In parallel, we are accelerating digital transformation. We are investing 7 to 10 7:05 7 minutes, 5 seconds crores in FI26 to build an integrated and intelligent technology backbone with SAP ERP expected to go live within 6 7:12 7 minutes, 12 seconds months along with the deployment of info WMS gold replenishment and Domo analytics. We aim to enhance supply chain visibility, optimize inventory 7:21 7 minutes, 21 seconds turn and enable scalable datadriven operations. We are also strengthening our merchandising capabilities. We have 7:29 7 minutes, 29 seconds reinforced our leadership with experienced retail talent in a supportive consu consumption environment. We are seeing strong 7:36 7 minutes, 36 seconds traction in tier 2 and tier three market driven by rising disposable incomes and a shift from uninvested to organized retail. At the same time, tier one 7:43 7 minutes, 43 seconds cities are witnessing strong participation from value conscious youth. Our proposition style for the entire day at thousand positions bazar 7:52 7 minutes, 52 seconds style strongly to address India's large and underpenetrated value retail opportunity by blending aspiration with affordability. 8:00 8 minutes Align with this we are steadily increasing private level penetration. 8:03 8 minutes, 3 seconds Private level now contributes 54% of the revenue and we aim to scale this to around 65% over the next two years. 8:12 8 minutes, 12 seconds While these products are currently priced competitively to drive brand recognition and customer adoption, we see meaningfullying we see meaningful 8:20 8 minutes, 20 seconds headroom for strategic price optimization which should support margin expansion over time. I am pleased to report that we have delivered another 8:28 8 minutes, 28 seconds quarter of strong performance sustaining our positive growth trajectory. The first 9 months of FI26 represents a 8:35 8 minutes, 35 seconds milestone period for the company as we achieved our highest ever 9month revenue and operating metrics across key parameters alongside healthy profit 8:43 8 minutes, 43 seconds growth. Coming to our financial performance in 9 month FI26 revenue from operation grew 38% yearonear to 1376 cr 8:52 8 minutes, 52 seconds supported by strong growth across both cost and focus markets. Gross profit stood at 475 crores up 40% year-on- year with gross margin as 34.5 up 65 bips. 9:03 9 minutes, 3 seconds IATA rose 45% year-on-year to 22 217 crores with IITA margin at 15.8% up 76 9:10 9 minutes, 10 seconds bips reflecting improved operational efficiency and discipline cost management. On operating metrics in 9 month FI26 our core market grew 34% 9:19 9 minutes, 19 seconds year-on-year while focus market grew 61%. 9:23 9 minutes, 23 seconds underscoring the broad strength of our business. Total area, retail area now stands at 2.35 million square ft, up 31% 9:31 9 minutes, 31 seconds yearonear. Importantly, our inventory days has also reduced from 111 days to 102 days. On operational performance, 9:39 9 minutes, 39 seconds SSG stood at 5% in calendar year 25, which captures all major festival and provides a more holistic view. Store 9:46 9 minutes, 46 seconds count reached 252, a growth of 27% yearonear in 9 month 26. Retail area stands at 2.35 billion square ft. A growth of 31% yearonear in 9 month FI26. 9:57 9 minutes, 57 seconds Sale per square feet stood at 743 for 9 month FI26. And for the calendar year 25 it stood at 731 up by 4%. The monthly 10:06 10 minutes, 6 seconds average transactional value stood at 969 in 9 month FI26. Number of bills stood at 15.1 million up 42% yearonear in 9 10:14 10 minutes, 14 seconds month FI 26. Quantity sold increased 40% to 49.49 49 million units in 9 month FI26. Inventory days on revenue reduced 10:23 10 minutes, 23 seconds from 111 days in 9 month FI 25 to 102 days as of 9 month FI26. 10:30 10 minutes, 30 seconds Focus market revenue was 238 K up 61% yearonear in 9 month FI26. 10:37 10 minutes, 37 seconds In conclusion, Bazar style is well positioned on a strong growth tractory supported by our differentiated value 10:44 10 minutes, 44 seconds proposition, discipline expansion approach, accelerating digital transformation and improving operating leverage. As we scale, we are steadily 10:53 10 minutes, 53 seconds building a future ready, resilient and profitable retail platform aligned with India's expanding consumption story. The 11:01 11 minutes, 1 second recent fund raise has further strengthened our financial foundation providing us with a greater flexibility to execute our growth strategy with 11:09 11 minutes, 9 seconds confidence and agility. Thank you for continued trust and support. With that I conclude my opening remark and the request the moderator to open the floor for questions. 11:20 11 minutes, 20 seconds Thank you very much. We will now begin with the question and answer session. 11:25 11 minutes, 25 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. 11:30 11 minutes, 30 seconds If you wish to remove yourself from the question queue, you may press star and then two. 11:36 11 minutes, 36 seconds Participants are requested to use handsets while asking a question. 11:42 11 minutes, 42 seconds Also request participants to limit their questions to two each per participant and can rejoin the queue for any follow-up questions. 11:51 11 minutes, 51 seconds Our first question comes from the line of Gor of Joani from JM Financial. Please go ahead. 11:58 11 minutes, 58 seconds Uh, hi. Uh thank you for taking my question. Uh my first question Sance to you is with regards to the store expansion. Now you know you have 12:05 12 minutes, 5 seconds mentioned that uh opening the stores uh in the existing areas uh has kind of cannibalized your SSSG uh leading to uh 12:15 12 minutes, 15 seconds uh you know kind of flattish uh SSG for the 9 months uh that have been reported. 12:19 12 minutes, 19 seconds So in this context how do you look at the store expansion? Where should we consider the incremental stores to come into the future? 12:27 12 minutes, 27 seconds So in that scenario you rightly said that the existing cluster there has was a cannibalization of sales by 8% in the 12:35 12 minutes, 35 seconds existing cluster but while that I think the strategy of the iita has been good for us if you see the first 9 month 12:41 12 minutes, 41 seconds performance even without e the store iita overall store iita for the company has increased by uh 30 bips that is that 12:50 12 minutes, 50 seconds the new stores are performing equivalent to a mature store category because of opening of same stores in same cities 12:57 12 minutes, 57 seconds because we know the catchment and there's a still a huge room uh of getting the revenue. So you can say that yeah while I have cannibalized my seal 13:06 13 minutes, 6 seconds only in that area but because of the analyst understanding about that catchment we have been able to achieve a higher IITA in the same geography where you open the newer stores. 13:18 13 minutes, 18 seconds Yeah. So, so, so sh my question was largely on account of the store incremental store openings that you would do going ahead uh you know u so as 13:26 13 minutes, 26 seconds to avoid this cannibalization or would the strategy would be the same of you know uh how would we divide the new store opening between the the existing 13:34 13 minutes, 34 seconds cluster and the newer clusters if I can ask the other way around I think uh it will be blend of both so 13:41 13 minutes, 41 seconds while we are opening in focus states also where the still the canal action has not happened that much uh And uh as 13:48 13 minutes, 48 seconds we are seeing a good I think there's a huge room to grow in the existing cluster also. So it will be a mixed blend of both of them. But while we are 13:57 13 minutes, 57 seconds opening 60 to 80 stores, I think the larger part will be open in the focus states resulting in I think uh sales coming from the non-cannibalized area 14:06 14 minutes, 6 seconds that way and as I think till the time we are getting good margins on the IITA side I think uh if any store comes in 14:14 14 minutes, 14 seconds the existing cluster we will be happy to open the store in that cluster if we find the IITA is good because as I said this year the new store's performance 14:21 14 minutes, 21 seconds has been exceptionally well and is equivalent to a mature store ITA performance. performance. So as a company we are seeing at the bottom line 14:29 14 minutes, 29 seconds also and if I is good so we'll be opening stores across but we are largely in the focus states. 14:36 14 minutes, 36 seconds Sure. And my second question you know is with regards to the competitive intensity that you are seeing in the value retail space. You know we are 14:43 14 minutes, 43 seconds seeing many uh different players uh you know kind of expanding or accelerating the store expansion. Uh so how do you 14:51 14 minutes, 51 seconds look at the overall competitive scenario? Does this board any risk for future growth uh for us? Uh if you can highlight something on this front. 14:59 14 minutes, 59 seconds I think compression intensity is growing. Uh I think it's it's good for the market only. And I as I as I have told in previous call also there's a huge opportunity in in this market 15:08 15 minutes, 8 seconds because of the under penetration in tier 2, tier three and unorganized penetration is very very high compared to the organized penetration. Still on 15:16 15 minutes, 16 seconds an average every smaller city has got only two to three organized player. So I think there's a huge headroom to grow in 15:25 15 minutes, 25 seconds the cities. uh I think while saying that uh because the intensity is increasing I think we have to be good on uh our back 15:32 15 minutes, 32 seconds end infra that's why we are continuously investing in our infrastructure our IT structure our uh manpower thing and we 15:40 15 minutes, 40 seconds are building that cost also on the back end backend ho cost so that we are able to compete with the all the big players 15:48 15 minutes, 48 seconds coming in this industry okay sure and just last question from my end is in terms of The bookkeeping one 15:56 15 minutes, 56 seconds actually is on the the rentals piece. Uh if you can help us out, you know we uh we are also adding stores which are of higher square feet. I think this quarter 16:04 16 minutes, 4 seconds if you look at it uh two of the stores that we have added that seems to be at a higher square feet in terms of size leading to also higher rental. So if you 16:13 16 minutes, 13 seconds can give some sense on how the future uh store sizes would be and how should we uh making the rentals here. So see in 16:21 16 minutes, 21 seconds terms of store size I think generally it ranges around 9,000 ft² only 8,000,000 square feet some stores may come as a 16:28 16 minutes, 28 seconds flagship store. So in this quarter there were two stores opened which were uh relatively larger in the size in terms of uh rental I think we will give you the numbers. 16:38 16 minutes, 38 seconds So uh rental per square foot for this quarter was 58 right and for the uh last quarter it was 57. So there will be not 16:46 16 minutes, 46 seconds a much increase in the rental per square foot. It will be hovering around 58 to 60 rupees per square foot. 16:54 16 minutes, 54 seconds Okay. Uh thank you. That's all for me. Thank you. 17:03 17 minutes, 3 seconds Participants please restrict your questions to each per participant and you may rejoin the queue for any follow-up questions. 17:10 17 minutes, 10 seconds Our next question comes from the line of Churak from Keynote Capitals. Please go ahead. Yeah, thank you for the opportunity. 17:18 17 minutes, 18 seconds My first question is related to the insurance that we were expected to receive. Uh any update on clarity on that? 17:27 17 minutes, 27 seconds Yeah, as we have mentioned earlier also and I think uh in last also I think we have told that the claim of around 3.48 17:34 17 minutes, 34 seconds cr against the total capital asset loss of 4.2 2 4.24 24 K has been received on 17:40 17 minutes, 40 seconds the asset side. On the inventory side, I think approximately 43 K claim has been 17:49 17 minutes, 49 seconds filed with the insurance company and the matter is currently under the review and we are still on the discussion stage. We have submitted the require documents 17:57 17 minutes, 57 seconds also and the assessment is also going on and we are regularly in contact with the insurer to speed up the process. I think we are optimistic that I cannot give you 18:07 18 minutes, 7 seconds a timeline item but I'm expecting it uh the uh the uh I think the conclusion of the entire claim thing to get settled in 18:14 18 minutes, 14 seconds a few months and I think then once we get received the update we will update to the exchange and I think everyone you will get the understanding of the 18:22 18 minutes, 22 seconds insurance part right now it's on the still on the uh discussion stage. 18:29 18 minutes, 29 seconds Got it. The second question is related to strategic investment. So uh before the strategic investment came into 18:37 18 minutes, 37 seconds picture our expected store addition per year was around 4550. And our thought 18:44 18 minutes, 44 seconds process related to that was that uh uh having more than 45 50 stores addition 18:51 18 minutes, 51 seconds can have a negative consequences also that uh there can be store closure not selecting the right place to open the 18:59 18 minutes, 59 seconds store and now there there is this after the money coming into picture or the strategic investment coming into picture our assessment looks into the right 19:06 19 minutes, 6 seconds direction that we are now opening 70 80 stores but just wanted your thoughts on the saying that uh uh Has that thought process changed? 19:15 19 minutes, 15 seconds No. So, so there's a little bit uh gap in the our understanding structure for that. If you see the at that time when we said 40 to 50 stores with the capital 19:24 19 minutes, 24 seconds that we are having and with the internal approval that we were having. So we said okay with the current approval we will be able to open 40 to 50 stores and if 19:32 19 minutes, 32 seconds we stretch beyond that then it will be a negative on the balance sheet because if you see as on 9 months also we are 19:39 19 minutes, 39 seconds having a debt of around 267 crores out of which 152 is for bank and 115 for the bill discounting with a trade payable of 19:48 19 minutes, 48 seconds around 249 crores. So idea was that if you want to open 40 to 50 stores, we will open only through the internal approval with the limitation of the our 19:57 19 minutes, 57 seconds balance sheet. It was never that we cannot open or there will be a closer store. Yeah. With now having a fund in 20:04 20 minutes, 4 seconds our bank, I think we can go for the faster expansion of 60 to 80 stores at the same time making meaningful 20:11 20 minutes, 11 seconds meaningful investments in technology and infrastructure to support the scale and operational efficiency. And I think second thing the most important thing is 20:19 20 minutes, 19 seconds that if you have a balance in your bank and if you're growing for 60 to 80 stores it will help you to have a better 20:26 20 minutes, 26 seconds profitability on the I think interest side also because higher if you see the object because the primary object of the fund is also to reduce the debt which 20:34 20 minutes, 34 seconds will in return help you with the interest expense which will enhance your strengthens your balance sheet. Okay. Uh 20:41 20 minutes, 41 seconds second thing I think the 60 to 80 stores the growth that we were chasing I have said previous in previous call also 25% was the number that we were looking with 20:50 20 minutes, 50 seconds the internal approvals 20 to 25% but now with this fund coming in we we will be able to sustainably grow at 30%. while 20:58 20 minutes, 58 seconds not taking too much hit on our balance sheet in terms of any expenditures or a wrong selection of stores or anything like that because we are opening in the 21:07 21 minutes, 7 seconds same cluster only and if you see our closer rate I have told in previous call also has been only 34 stores since 21:13 21 minutes, 13 seconds inception which is around 1.75 to 2% every year so when we are opening the store in the same cluster I don't think 21:21 21 minutes, 21 seconds there's a huge risk about store opening it was always about the working capital management and the fund flow 21:29 21 minutes, 29 seconds Fair enough. Fair enough. Just last one question from my side. So roughly about uh uh uh if I'm not wrong about uh 50 to 21:38 21 minutes, 38 seconds 60 K is expected to be spent on tech uh uh has that uh capeex been concluded or 21:46 21 minutes, 46 seconds we still require any more funds for that? Second 45 to 50 stores would have required us 1 cr plus per store plus 1 21:53 21 minutes, 53 seconds cr of inventory per store. So about 2 crores of capeex amount. So uh will it 22:00 22 minutes be fair to assume that uh uh around 100 crores of debt is expected to get reduced from the books and rest would be 22:08 22 minutes, 8 seconds used for the capeex purpose. So 150 crores of debt to be reduced and about 100 crores to be used for capeex purpose. 22:16 22 minutes, 16 seconds Yeah around 180 crores would be uh for the reduction of uh cap borrowings. And so the only only thing that I would like 22:23 22 minutes, 23 seconds to say is that key yeah on the capex front there has been a lot of capex was not 50 to 60 crores but yeah around 10 7 to 10 crores on the tax side and around 22:32 22 minutes, 32 seconds 20 25 crores on the warehouse side warehouse infra. Uh the only thing that we have changed in our strategy right now is that we are opening lot of 22:40 22 minutes, 40 seconds collection centers. We have started creating hub and scope model. So right now initially we were only having one warehouse in West Bengal but now we have 22:48 22 minutes, 48 seconds opening smaller smaller warehouses like in Assam we have opened in month of December. Uh we have just opened the correction center in Bihar. So going 22:57 22 minutes, 57 seconds forward I think the idea is in next one one one and a half year we will have uh two big regional distribution center one in Bengal and one in uh maybe uh in the 23:06 23 minutes, 6 seconds central India and there will be five to seven smaller collection centers which will enhance the supply chain in terms 23:14 23 minutes, 14 seconds of the delivery. So right now after the collection center has opened it it has been only 1 month the Assam delivery time which used to take around 10 days 23:22 23 minutes, 22 seconds to reach store has uh come down to around 5 to 6 days. So the idea is to uh 23:29 23 minutes, 29 seconds improve the supply chain efficiency while opening a few warehouse warehouses in different different states. 23:41 23 minutes, 41 seconds So fair to assume that cash flow the cash flow that we are receiving in the year would be used for the supply chain and warehouses and the warrant money 23:49 23 minutes, 49 seconds that would be coming into picture would first be used for capac uh for store expansion and the rest of the money would be used to reduce the debt down below. 23:57 23 minutes, 57 seconds Yeah, 182 will be used for the reduction of Bangor and the balance would be fairly used in the store expansion and the infrastructure development both on 24:05 24 minutes, 5 seconds the tech side and on the warehouse side and priority would be expansion over there. Right. Yes. 24:12 24 minutes, 12 seconds Perfect. That's it from Thank you. Requesting all the participants to limit to only two 24:21 24 minutes, 21 seconds questions each per participant. Our next question comes from the line of Rahan say from prenator asset managers. Please go ahead. 24:31 24 minutes, 31 seconds Um yeah opportunity. 24:35 24 minutes, 35 seconds Sorry to interrupt Rahan sir your voice is sounding muffled. If you are using any other mode maybe requesting just give me a minute. 24:45 24 minutes, 45 seconds [clears throat] 24:48 24 minutes, 48 seconds Yeah you uh slightly better sir. Please go ahead. 24:53 24 minutes, 53 seconds Sure. Okay. I just want some understanding on your uh present in your presentation that you have mentioned uh 25:01 25 minutes, 1 second that shift from attractive pricing to fair pricing for private labor. So once brand recall established given that your 25:09 25 minutes, 9 seconds leading brand squash accured 3158 million revenue for 91 26. So are you 25:16 25 minutes, 16 seconds already initiating this transaction for this brand? 25:20 25 minutes, 20 seconds Uh sorry but I think your voice is not clear to me. Uh if I have correctly understood your question it's on the square a private label. 25:28 25 minutes, 28 seconds Yeah yeah yeah can you just come again with a question on the private labels. 25:33 25 minutes, 33 seconds Sure. Sure. I repeat my question again which you you have mentioned in your presentation regarding the shift from attractive pricing to fair pricing for 25:42 25 minutes, 42 seconds private labels. So once brand recall is established. So given that your leading brand square achieved 3158 million in revenue for 9 months. 25:52 25 minutes, 52 seconds So are you already uh initiating this price transition for this brand? 26:00 26 minutes Uh see in terms of yeah private label has started doing very well for us and I think uh that we can see in numbers also. So the growth tractory from last 26:09 26 minutes, 9 seconds year from the almost 45% we have grown to 54%. and square up is becoming uh 300 26:16 26 minutes, 16 seconds cr plus revenue brand. I think the acceptance of label has started coming in uh I think in the common uh public 26:24 26 minutes, 24 seconds structure I can say wherever our shows are present. So people have been able to understand even the gross margins are doing fairly well on the private level 26:32 26 minutes, 32 seconds side. Uh though we have not increased a lot on the MRP side but we have kept the MRP same but yeah we are getting good traction around the private labels. Is that was your question? Yeah. Yeah. 26:42 26 minutes, 42 seconds That's that's Thank you. 26:46 26 minutes, 46 seconds Yeah. Uh like I have one question. Can I ask? Hello. 26:54 26 minutes, 54 seconds Hello. 26:55 26 minutes, 55 seconds You can go ahead but your audio is not coming clearly. If you are using any other mode, maybe request to use handset to ask a question. 27:02 27 minutes, 2 seconds Oh, I'm on headet only. Wait, can I uh check this? Oh yeah, now it's clear. 27:10 27 minutes, 10 seconds So it is slightly better. 27:12 27 minutes, 12 seconds Yeah. Uh so sir like my second and last question is around your uh on logistics side that the the contribution from 27:19 27 minutes, 19 seconds focus market outside the core instance create 58% YI and 9 month 26 now making 27:26 27 minutes, 26 seconds 17% of total revenue. So as you scale further into states like Uttar Pradesh and Andhra Pradesh. So do you expect the 27:34 27 minutes, 34 seconds logistic and supply chain cost per store to increase comparatively to your uh core or west Bengal market? 27:41 27 minutes, 41 seconds I think it it will not increase it will reduce only because as compared to obviously the uh states which are nearer 27:49 27 minutes, 49 seconds to the uh core warehouse right now our warehouse is Bengal soy cost will be lower for them compared to the states 27:56 27 minutes, 56 seconds like UP and Bihar. But as I said key that the strategy that we are applying for the future is that we will have two big regional distribution centers going 28:04 28 minutes, 4 seconds forward. One from Bengal and one from central India and there will be smaller smaller collection centers in different 28:11 28 minutes, 11 seconds parts like Guati, Bihar. Uh then we will be in Lacnau also. So I think that will help us to uh reduce the cost uh of 28:20 28 minutes, 20 seconds logistic and increase the I think the speed of supply chain. uh we will be taking lower time to transfer goods from 28:29 28 minutes, 29 seconds mainware also to the stores which will result in I think better revenue per square feet for the stores. So I think on the cost costing front as we grow 28:36 28 minutes, 36 seconds more stores in the focus states it will help us in economies of scale only. So the costing will lower only. 28:44 28 minutes, 44 seconds Okay. Fair enough. Thank you. 28:50 28 minutes, 50 seconds Thank you. Before we take the next question, a reminder to all the participants. If you wish to register for a question, please press star and 28:58 28 minutes, 58 seconds then one. Our next question comes from the line of Himmanu Dugar from Stylus Holdings. Please go ahead. 29:07 29 minutes, 7 seconds Yeah. Hi, am I audible? Yeah, you audible. 29:11 29 minutes, 11 seconds Yeah, thanks uh Shan for the opportunity. So, uh two questions. The first question from me was on the general merchandise and uh also how 29:20 29 minutes, 20 seconds general merchandise forms a part of private labor. So if you just share like out of total private label sales how much is general mercandise and getting merchandise how are you see the sales you know moving. 29:31 29 minutes, 31 seconds See total total 13% of revenue comes from general merchandise. On the private label side we only have one private label that is home focused which is 29:39 29 minutes, 39 seconds under GM category for the private label side and I think one more is miss 19 which also have some private labels in 29:47 29 minutes, 47 seconds general merchandise category. I think on the general business side the category is good the category is growing and uh I 29:55 29 minutes, 55 seconds think it is really complementing the fashion part. But lot of time people are coming from the GM also and while coming 30:03 30 minutes, 3 seconds for the general merchandise they are buying the apples also. So I think it is acting as a footfall driver for us. 30:10 30 minutes, 10 seconds Uh in terms of private label we are not going too much on the general material side because mostly on lot of uh things 30:18 30 minutes, 18 seconds like personal care or maybe the plastic wear. So there are lots of big brands which are already available. So we are just buying from them. Uh so we are not 30:27 30 minutes, 27 seconds very much strategically looking as a private create to create something on a private level to a very large extent on those general majority the private level focus largely remains on the G side. 30:39 30 minutes, 39 seconds So just like the first the following is the percentage what is the percentage of Jimmy Mckendai which is your private label 30:47 30 minutes, 47 seconds in terms of number the private table sales coming from GM would be uh right now I don't have the number exactly available with me but total private 30:55 30 minutes, 55 seconds table sales contribution is of around 54% for the company I think I can take it separately on the I can tell you that number uh the CFO can tell you the 31:03 31 minutes, 3 seconds number exact number for the GM private label yeah the second question was for that overall declining ASP for your products. 31:11 31 minutes, 11 seconds Uh because when you look at volume growth as well as and I'm guessing 9M or something I'm not even looking at I understand the reason so 9M to 9M there 31:19 31 minutes, 19 seconds seems to be a material decline almost a 3% dip in uh ASP which should ideally be increasing right because of inflation etc. is on that. 31:28 31 minutes, 28 seconds So sir there are two reasons for the decline in AP. One when you're seeing this 9 months the last 9 months. So last year 9 months had Eid in that uh so 31:36 31 minutes, 36 seconds festival always helps you to create a higher ASP. This year the E shifted to 31st March. As a result the first 9 31:44 31 minutes, 44 seconds month had only did have Eid as a festival in the month of April. So that is one of the reason. 31:51 31 minutes, 51 seconds Second thing this year largely because on the focus phase we have also focused a lot on the anti price per product. As a result the assortment w had a higher 31:59 31 minutes, 59 seconds antiric point product resulting into a lower compatibility ASP. Uh but if you see the unit per piece it is almost on 32:07 32 minutes, 7 seconds the similar side as last year. So the up remains similar to last year while the ASP reduced on this two account. 32:17 32 minutes, 17 seconds Got it. Thank you. 32:21 32 minutes, 21 seconds Thank you participants. You may press star and then one to ask a question. 32:37 32 minutes, 37 seconds Our next question comes from the line of Anand Mundra from Sar Wealth. Please go ahead. 32:44 32 minutes, 44 seconds Good evening sir. Uh sir uh just wanted to check any changes in growth outlook as we have done large fund raise for 32:52 32 minutes, 52 seconds FI27 I think in terms of growth outlook maybe as I said see 25% was the number that we 33:00 33 minutes were looking every year now we will go for 30% as a growth outlook and in terms of store expansion as I've already mentioned that from 50 to 60 40 to 50 33:09 33 minutes, 9 seconds stores we are targeting 60 to 80 stores so the growth momentum will increase and in coming years in next 3 years the target is to reach 500 stores. So with 33:18 33 minutes, 18 seconds this infusion I think we are set to open around 500 we to reach 500 stores in next coming two years to three years. 33:27 33 minutes, 27 seconds Thank you sir. Thanks a lot. Thank you. 33:36 33 minutes, 36 seconds Your next question comes from the line of Rutan. Please go ahead. 33:41 33 minutes, 41 seconds Uh hi sir. Thank you for the opportunity sir. I wanted to know how many more stores are we expected to add in this last quarter of FY26. 33:52 33 minutes, 52 seconds So it is around 11 stores. 33:55 33 minutes, 55 seconds Okay. 11 more stores. And uh Okay. And uh I wanted to know since our partnership with uh Cupid for the FMCG 34:04 34 minutes, 4 seconds products, what sort of gross profit margins do we expect to see on those FMCG pro uh products and by when will that be live? 34:14 34 minutes, 14 seconds I think the personal care category as a whole gives you a gross per of around 25 to 28%. on different products at 34:23 34 minutes, 23 seconds different RGMs but I am talking as a whole that we see uh in terms of uh the the revenue that we have generating from 34:31 34 minutes, 31 seconds the cupid I think uh maybe you will see the numbers started coming from the first Q1 so there will there are some 34:38 34 minutes, 38 seconds pros which we are placing in Q1 itself it will uh in the maybe at the end end of March or maybe in the first week of April we'll be able to put some articles 34:48 34 minutes, 48 seconds of cupid in different stores in terms of product mix I think largely the product will remain similar to the numbers that 34:56 34 minutes, 56 seconds we are having right now which is 87 and 13% uh in terms of uh sales coming and as and when gradually the personal care 35:03 35 minutes, 3 seconds wellness and FNCG categories scales up then only I will be able to tell you the specific percentage increase but intent 35:11 35 minutes, 11 seconds is very simple we want to complement fashion not replace it with the high frequency categories so the idea is that 35:18 35 minutes, 18 seconds the cupid cupid art portfolio will be across the stores we around 250 stores which will help us in increasing the 35:26 35 minutes, 26 seconds revenue on the personal care wellness and FMG category which will acting as a booster uh to increase footfall also and 35:33 35 minutes, 33 seconds the sales also in for style bazaar stores while doing that we will ensure that the mix of apps remains healthy which is around 87%. 35:44 35 minutes, 44 seconds Okay, thank you sir. And uh in terms of uh target for these products, is there any target that we set internally uh for 35:53 35 minutes, 53 seconds the revenue to reach let's say in the next couple of years FI27, FI28? 35:59 35 minutes, 59 seconds So I think it's very premature to specifically tell the revenue coming from these products. I think uh uh we 36:07 36 minutes, 7 seconds will try to put it in the stores and then we will see the performance and then only maybe in the coming few quarters I will be able to uh tell you 36:15 36 minutes, 15 seconds the numbers. Right now I don't have a number in my mind. Fair enough. Fair enough. Thank you sir. 36:20 36 minutes, 20 seconds If I have any question I'll come back I'll join the queue. Thank you. Thank you. 36:28 36 minutes, 28 seconds The next followup question comes from the line of Himmanu Dugar from Stylus Holdings. Please go ahead. 36:35 36 minutes, 35 seconds Yeah. Hi, thanks for the uh opportunity again. Uh so first question here is on the competition. So uh in your home 36:42 36 minutes, 42 seconds market like uh we see that you know a lot of the other competitive players are really coming up and there are crowding up in most of the high street area that 36:50 36 minutes, 50 seconds you could look at. This is just kind of uh point of because you are mentioning on that you are continuing to uh expand 36:57 36 minutes, 57 seconds in areas where already present and you are seeing increasing margins but then there seems to be this disconnect where there's too much of crowding in the same 37:05 37 minutes, 5 seconds high street. So could you just point out like are these specifically only in West Bengal you are seeing these kind of issues or even in the other market uh 37:13 37 minutes, 13 seconds you are seeing the similar kind of situation happening up. 37:16 37 minutes, 16 seconds I see if you see it's not the compression is just coming this year. If you see past three financial years from I think last three financial years uh 37:24 37 minutes, 24 seconds every one in the value retail has grown and they have grown at a uh good rate of around 20 to 30%. So uh but but while 37:34 37 minutes, 34 seconds growing we have been able to successfully maintain the ITA of 7 to8 on the pre-indust and 14 to 15% on the 37:41 37 minutes, 41 seconds index side. So there's clear it clearly shows that you have been able to achieve revenue also and while achieving the 37:48 37 minutes, 48 seconds revenue you have been able to uh sustain the profitability also. Now coming to the current I think the competition is we are seeing everywhere and in the 37:57 37 minutes, 57 seconds entire eastern part it's just that when this year the strategic approach that we have taken is that when we saw there is 38:03 38 minutes, 3 seconds an opportunity in the existing cluster and if we are not opening the store someone else is opening and if we know about the catchment so why to not open 38:13 38 minutes, 13 seconds the same stores so we started it as an experiment but when we started opening stores we saw key there's a huge 38:21 38 minutes, 21 seconds profitability coming from the newer stores. So just for example uh generally uh the newer store was giving 5 to 6% as 38:30 38 minutes, 30 seconds a pre-industa on the year 1 in which it was opening. This year has been exceptional and they have given a bit of around 13%. 38:40 38 minutes, 40 seconds 13 to 14% which is matching the mature store. So we saw if 7 to 8% of the revenue has been cannibalized also from 38:49 38 minutes, 49 seconds our existing store but 92% of the revenue has come from the market the remaining market and uh it is giving us 38:57 38 minutes, 57 seconds a profitable growth then why not to open stores in the same cities where there's a still a potential and I think see in 39:05 39 minutes, 5 seconds terms of store expansion everywhere there's a conversion so I cannot say it's Bengal only so maybe the Bengal 39:12 39 minutes, 12 seconds have a lot of regional play But again UP and Bihar also have a lot of big players from central India. 39:21 39 minutes, 21 seconds Got it. The second question is around uh your current net debt and balance sheet position. Uh why I'm coming to this is 39:29 39 minutes, 29 seconds because one you mentioned in the slide that there is almost 10 days improvement in inventory as well as 5 days improvement in the trade table. Broadly 39:38 39 minutes, 38 seconds we should be seeing the 15 days kind of an improvement overall at net working capital level and uh you are also I mean 39:45 39 minutes, 45 seconds I think the net debt as of September was in control 150 160 odd cr uh the the capex plan that you mentioned kind of seems reasonable to fund it. 39:55 39 minutes, 55 seconds uh how do you kind of you know elaborate on the uh fund raise that you've done currently and just one more you know point you wanted to touch upon is 40:03 40 minutes, 3 seconds because this has happened dilution to the IPO price IPO is around 290 rupees and the current uh dilution is happening only at 330 rupees so if you could just 40:11 40 minutes, 11 seconds kind of uh explain to us on why current fund base makes sense and uh on your current balance sheet position as well. 40:20 40 minutes, 20 seconds So coming to question on the balance sheet I think the bank borrowing is at 152 crores on the bank uh directly from the bank and the bill acceptance is 40:29 40 minutes, 29 seconds around 115 crores uh and for the 9th 9 months uh and I think on the September also uh as I said 40:37 40 minutes, 37 seconds I the growing 40 to 50 stores with the same uh balance sheet we will be able to grow but if you want to escalate through 40:44 40 minutes, 44 seconds 60 to 80 stores we require the fund. Now coming to the pricing of the fund, the option that we chose was warrants and I 40:52 40 minutes, 52 seconds think the idea was that when we planned to do that that time the if I correctly remember the prices was in the range of 40:59 40 minutes, 59 seconds 250 to 300 rupees and I think with the calculation or whatever the the formula that have for the warrant with that we 41:08 41 minutes, 8 seconds decided to go with 331 crores which ensures that if you want to have a future growth of 60 to 80 stores uh I we 41:15 41 minutes, 15 seconds can do that And as I said that most of the part is going to still going to the debt side to reduce the debt side which will help us in improving the I will say 41:24 41 minutes, 24 seconds financial position of the company by uh having a higher profitability because of the lower interest cost reduction. So 41:31 41 minutes, 31 seconds that was the idea and the rational behind uh taking funds. 41:37 41 minutes, 37 seconds Sorry to interrupt here Sean but uh you mentioned 150 crores of debt in hand and uh uh the current capex also so even if 41:44 41 minutes, 44 seconds you're say adding 50 stores in a year uh the overall capex is going to be 200 odd crores 120 150 odd crores again which 41:52 41 minutes, 52 seconds could be payable by operating cash flows so by raising 330 cr how does it serve the growth purpose 42:00 42 minutes but I am opening 80 stores and while doing that I'm also investing in lot of warehouse uh infrastructure and technology technology and I think while 42:08 42 minutes, 8 seconds doing that uh without debt in our books it helps you uh clearly on the financial side even if uh store expansion for any 42:16 42 minutes, 16 seconds reason goes wrong there's always a leverage on the balance sheet that you have the cash in the balance sheet and if there's any interest cost uh if 42:23 42 minutes, 23 seconds there's a lower interest cost which can set offset the any wrong selection if you have any but in our model the best part is that because we are in the 42:31 42 minutes, 31 seconds clusterbased approach the closure of store historically has been very go. So that is the reason that we chose to take 42:38 42 minutes, 38 seconds money and take this risk because we are opening in the existing cluster only and the past data suggests that the risk of selecting a wrong location in our 42:47 42 minutes, 47 seconds scenario has been lower compared to other retailers. As a result, we chose to do go ahead with this uh fund plan. 42:57 42 minutes, 57 seconds So uh you are saying that uh currently so you added like some 200 stores to 250 stores in the last one year and from 43:05 43 minutes, 5 seconds here you want to grow at 80 stores and for that 80 stores your investment is still going to be four crores right 2 crores for fixed and 2 cr inventory or 43:13 43 minutes, 13 seconds that is also going to increase what similar 1 cr asset and 1 cr inven two crores yeah so in that case can't you just add 43:22 43 minutes, 22 seconds on like 150 stores in the next year itself is that something that you're thinking No, I think as I said 60 to 80 stores 43:30 43 minutes, 30 seconds every year in next three years 500 stores will be the target. 43:36 43 minutes, 36 seconds So there 500 the target FI 28 or F29 80 stores every year. Right now we are 43:43 43 minutes, 43 seconds at 252 stores and if 260 stores will be the 31st March and if I had 80 stores every year so by FI 20 it will be 500 stores. 43:56 43 minutes, 56 seconds Okay, thank you. 44:00 44 minutes Thank you participants. If you wish to register for a question, please press star and then one. 44:09 44 minutes, 9 seconds Our next question comes from the line of Shabbanu from three head capital. Please go ahead. Yeah, hope. 44:18 44 minutes, 18 seconds Uh sir, my first question is uh as you mentioned your current GM around 13%. 44:24 44 minutes, 24 seconds What was the how is the margin from GM segment? It is around 32 to 33%. 44:31 44 minutes, 31 seconds Go. Yeah. 44:34 44 minutes, 34 seconds Yeah. Uh because I asking this question because uh QP personal care. Hello. 44:41 44 minutes, 41 seconds Yeah. Please go ahead. 44:44 44 minutes, 44 seconds Yeah. QP personal care products fall in GM segment. Uh uh if Hello. 44:51 44 minutes, 51 seconds Yeah, you're audible. Please go ahead. 44:53 44 minutes, 53 seconds If yeah uh if personal care product mix increasing m our GM segment mix will increase going further. 45:02 45 minutes, 2 seconds No it doesn't mean that so as I said there is a 13% sales coming from GM and I think there's a lot of within the 45:10 45 minutes, 10 seconds category changes that we are going to do because again the target is to maintain the fashion quotient in the store. So while maintaining that the cupid will 45:19 45 minutes, 19 seconds help us to attract more footfall because I think the personal care category in India is growing and I think it will with with their brand portfolio it will 45:27 45 minutes, 27 seconds only enhance the revenue for Salvazar maybe the category of personal care may grow higher and there there may be some 45:36 45 minutes, 36 seconds categories which will be replaced by the personal care category. It is not that the fashion will be replaced by the personal care category but what will be your target going 45:43 45 minutes, 43 seconds forward? So I think I think it's too as I said it's premature to say a numbers on that but ideally the product miss 45:50 45 minutes, 50 seconds right now stands at 87% of revenue coming from apples and 13% from GM and as we evolve I think uh then only I will 45:59 45 minutes, 59 seconds be able to give but largely 87% focus on the apps will be higher so 87% will of the revenue will be coming from April in 46:08 46 minutes, 8 seconds going forward future also 13% I think now there may be a mix changing in under the 13% structure only. 46:17 46 minutes, 17 seconds Okay. Okay. Okay. My second uh got it. 46:20 46 minutes, 20 seconds Uh my second question is uh as you mentioned uh out of this 330 warranty issue uh one will be used for reduced 46:28 46 minutes, 28 seconds bank boarding and rest will be for expansion. Uh then what uh then cash flow? Free cash flow. Okay. 46:42 46 minutes, 42 seconds Uh out of this 330 warranty. So you said uh 180 card will be used for banking reducement reduce and rest will be used for store expansion. 46:52 46 minutes, 52 seconds Yeah. And and warehouse infra and tech investment together. Yeah. On the cap side. Okay. Okay. Okay. Uh then Amar. Sorry to interrupt. 47:01 47 minutes, 1 second So, sorry to interrupt. Shanosa, may we request return to the queue for any follow-up question? This my second question. 47:08 47 minutes, 8 seconds Yeah, this was my second question. Okay. Yeah, please, please do go ahead. 47:11 47 minutes, 11 seconds Please go ahead. Please go ahead. I think Yeah, please. Okay. 47:30 47 minutes, 30 seconds months as we grow higher. So I think FCS will increase and largely as of no as of now 47:39 47 minutes, 39 seconds the debt the debt is around 1267 crores which is out of which 152 is a bank borrowing 115 is a bill discounting 47:48 47 minutes, 48 seconds going forward we will use it for the working capital. 48:07 48 minutes, 7 seconds Okay. Thank you sir. Thank you. Uh thank you. Thank you. 48:15 48 minutes, 15 seconds Your next question comes from the line of Pranov Shrimal from Pink Wealth Advisory. Please go ahead. 48:22 48 minutes, 22 seconds Hello. Yes sir. Please go ahead. 48:26 48 minutes, 26 seconds Yeah. Uh, hi sir. I just had a couple of small questions. What is the interest payment we can expect going forward? 48:36 48 minutes, 36 seconds Interest payment for the next years onwards it will. 48:39 48 minutes, 39 seconds So, so uh this year it will all depends when the fund uh comes in. So uh most 48:46 48 minutes, 46 seconds probably this year it is around 1% of of the total revenue. Next year it might be 7% and gradually it goes decreasing. 48:57 48 minutes, 57 seconds Okay, understood. So any rough idea when we can estimate the funds to come in? 49:02 49 minutes, 2 seconds See I think uh today I think it takes generally a month time from the we are just have 49:10 49 minutes, 10 seconds just written a documents to the exchange and I think we are just awaiting their approval. Generally uh it takes around 20 to 25 days. We are expecting uh the 49:19 49 minutes, 19 seconds first to flow by end of third to fourth week of March but again it totally depends on the when we get the approval from exchanges. 49:29 49 minutes, 29 seconds Understood. Uh secondly uh with uh Cupid what sort of a partnership or strategic 49:36 49 minutes, 36 seconds expansion we are expecting will we use their facilities will they use our facilities will there be some uh knowhow 49:43 49 minutes, 43 seconds that both the companies will be sharing with each other I think in terms of uh cupid I think as as as this partition because as I said 49:52 49 minutes, 52 seconds also that the synergy is more beyond financial indust also it's more on the operator side. I think we will be giving 49:59 49 minutes, 59 seconds them that 252 stores the marketplace in which they can uh put their product as a display and I think uh with the knowhow 50:08 50 minutes, 8 seconds of their in personal care category and as I said this category is also one of the growing categories in India and it purely complements the fashion side 50:16 50 minutes, 16 seconds also. So I think uh we both will be helping each other in that way. So I will not say we will be using their manufacturing plant but we will be using 50:24 50 minutes, 24 seconds their expertise in the manufacturing plant and I think they can use the retail experience expertise that we have got and together 50:33 50 minutes, 33 seconds we are creating this synergy for each other and is this an exclusive deal or uh are 50:40 50 minutes, 40 seconds they allowed to venture to other states also because from what I understand we are mainly focused on the uh east side and now expanding towards central India. 50:50 50 minutes, 50 seconds So in the future they plan to expand. Yeah. 50:56 50 minutes, 56 seconds So no it's not it's not an exclusive deal that we are talking about. It is not like that that uh they will only be selling in our stores. Uh it's a 51:03 51 minutes, 3 seconds national brand. They can sell in any stores. Yeah. But yeah we we are giving them this 250 stores as a marketplace which will always help them to promote 51:11 51 minutes, 11 seconds their products in our stores. So there is nothing called uh this fixed deal that they will have to only sell in our stores. uh they can sell in anywhere and 51:20 51 minutes, 20 seconds I think that is the best way also because higher is the presence of a brand in uh different stores more is a visibility and more is the sales 51:29 51 minutes, 29 seconds customers are about that brand understood and just lastly one question so in terms of the revenue selling is 51:36 51 minutes, 36 seconds there anything that we have decided uh or will they pay us any certain cost for uh self space 51:44 51 minutes, 44 seconds I think see as of now we have not uh decided on any uh numbers yet. I think uh it's a gradual process. I think as I 51:53 51 minutes, 53 seconds said we have 250 stores which have a lot of space which is available for GM. I think once we are through with the 52:00 52 minutes strategy that how many how much space we need to give it to the personal care right now we already have some space which will be shared uh which will be 52:08 52 minutes, 8 seconds shared with them also in terms of their parent promotion. But in terms of number I don't have a number yet. I think it it 52:16 52 minutes, 16 seconds would at least take a quarter or maybe 3 to four months in order to understand how the product behaves. Then only I will be able to tell you a number. 52:25 52 minutes, 25 seconds Understood. Thank you so much. This is lastly one uh confirmation. So we said going forward we can expect around 58 to 60 rupees per square speed entry cost. 52:33 52 minutes, 33 seconds Uh is that correct? 52:35 52 minutes, 35 seconds Yeah. Yeah. 57 is the right now the cost. I think 57 to 60 is the largely the cost which will be uh on the rental 52:41 52 minutes, 41 seconds side. uh next year for the for the next year right yeah understood that thank you so much 52:50 52 minutes, 50 seconds thank you your next follow-up question comes from the line of Anand Mundra from SW please go ahead 52:59 52 minutes, 59 seconds thanks for the opportunity again sir are we planning to convert our existing source in double condola and if yes how 53:06 53 minutes, 6 seconds long it will take sir uh yeah yeah yeah we have already started doing that and I think strategy has really uh is working well for us and 53:15 53 minutes, 15 seconds I think uh currently we have already uh I think did around 50 stores have been in the double head gondola we have 53:22 53 minutes, 22 seconds changed that and going forward we expect near about in by by next one year we expecting almost 80% of the stores 53:31 53 minutes, 31 seconds having doublehead gendola so to add on to sanji's point all the new stores what we are opening where we have this space 53:40 53 minutes, 40 seconds so we are opening with a double height gondola and the like to like stores which are not in double height gondola we are converting to double height 53:48 53 minutes, 48 seconds gondola uh and 20 to 30 stores of that has been converted and one more thing just for everyone who is listening this 53:56 53 minutes, 56 seconds call I think the the double gondola allows you to have display more quantity of uh articles freely to the consumer 54:05 54 minutes, 5 seconds which helps in increasing the impulsive buying from the customer end and that we are seeing in of SPSF also in lot of stores where the doublehead gondola are 54:14 54 minutes, 14 seconds presented. So that is the reason that we have taken this strategy and we will be rolling out as I said key almost 80% of the stores in next one year will have 54:22 54 minutes, 22 seconds double gondola and by uh yeah please 80% of the existing stores will convert or 80% of the expanded store you are 54:31 54 minutes, 31 seconds saying sir uh 80% of the existing stores will have double gondola in next one in 12 to 14 months. 54:39 54 minutes, 39 seconds Okay to 200 out of this 250 will get converted. Yes. 54:45 54 minutes, 45 seconds Okay. And sir, how much revenue throughput you are seeing more as compared to earlier version of without double gondola? 54:54 54 minutes, 54 seconds So I think uh in terms of number uh uh is a very nation state but what we are seeing the double gondola stores is 55:02 55 minutes, 2 seconds giving us the stores that have been open is giving us a uh per square foot sale of around 11,000 rupees that we have 55:10 55 minutes, 10 seconds seen uh which have been opened in this year but I think it's at a very early stage uh compared to the nonadola stores 55:18 55 minutes, 18 seconds which are giving saves of around 9,000 rupees if I compare that way Apple to apple but it's a very small sample that we have 55:26 55 minutes, 26 seconds taken. I think uh by coming two quarters I will be in a better position to tell you the exact numbers but yeah right now the double egg are giving more sales 55:35 55 minutes, 35 seconds than a single high gala stores on an average. 55:39 55 minutes, 39 seconds Okay sir uh thank you sir thanks for this. One more question sir when are the funds expected to come? So see uh in 55:47 55 minutes, 47 seconds terms of warrant now uh it's it's purely driven by the uh exchange uh exchange. 55:53 55 minutes, 53 seconds So we have submitted the documents and I think uh the documenting submission the company secretary is still discussing with the exchange. Uh it generally takes 56:01 56 minutes, 1 second around 25 to 30 days. uh uh I we are expecting by maybe the uh first week or second week of March we will be able to 56:10 56 minutes, 10 seconds achieve uh we will be able to get the approval from the exchange and maybe then from there maybe 7 days. So we 56:16 56 minutes, 16 seconds expecting from 15th March to 25th of March we expecting the fund flow coming in the company it's uh it's but it's 56:24 56 minutes, 24 seconds subject to the approval from the exchange how much time they are going to take to approve uh that is the main thing and sir the investing has got the 56:33 56 minutes, 33 seconds shareholders approval so I think they happened today uh we have got and I think their is on the 56:41 56 minutes, 41 seconds their board is approved and their is in the next week 25th of this I think they also expected to have the 56:48 56 minutes, 48 seconds approval and post that uh the deal can be concluded uh after once we get the note from exchange. 56:56 56 minutes, 56 seconds Okay. Thank you sir. Thanks a lot sir. Thank you. 57:01 57 minutes, 1 second Thank you ladies and gentlemen. We will take that as our last question for today. I now hand the conference over to the management for closing comments. 57:12 57 minutes, 12 seconds So thank you so much uh to everyone. 57:14 57 minutes, 14 seconds Bazar style continues to deliver strong momentum driven by our deficitated value proposition, discipline expansion strategy, accelerating retail 57:22 57 minutes, 22 seconds initiatives and strengthening operating leverage. We are building a future ready scalable and profitable retail platform. 57:29 57 minutes, 29 seconds Thank you all for joining us today and for your continued support. As always, we remain available to address any follow-up questions. Please feel free to 57:38 57 minutes, 38 seconds reach out to us directly or through our investor relation partner stellar advisor. Thank you so much. 57:47 57 minutes, 47 seconds Thank you on behalf of Philip Capital Private Client Group. That concludes this conference. Thank you all for 57:55 57 minutes, 55 seconds joining us and you may now disconnect your lines. Thank you.