BlueStone Jewellery and Lifestyle Limited — Q1 FY26

Bluestone Jewellery and Lifestyle Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Z9jYKEMESuY Published: 8 months ago

0:00 Ladies and gentlemen, good day and welcome to the Bluestone Jewelry and Lifestyle Limited. Q1 FI26 earnings conference call hosted by Ernst Daniel. 0:10 10 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during the conference call, please signal an operator by pressing the star then zero on your touchstone phone. Please note 0:27 27 seconds this conference is being recorded. I now hand the conference over to Miss Rea from Ewa Investor relations. Thank you and over to you ma'am. 0:37 37 seconds Thank you Steve. Good evening to all the participants on this call. Before we proceed on the call, let me remind you that the discussion may contain 0:45 45 seconds forward-looking statements that may involve known or unknown risks, uncertainties, and other factors. It must be viewed in conjunction with our 0:53 53 seconds business risk that could cause future result performance or achievement to differ significantly from what is 1:01 1 minute, 1 second expressed or implied in such forward-looking statements. 1:05 1 minute, 5 seconds Please note that we have made the results and the same is available on the exchange. In case you have not received the same, you can write to us and we 1:13 1 minute, 13 seconds will be happy to send the same over to you to take us through the results and answer your questions. Today we have the top management of Bluestone Jewelry and Lifestyle Limited represented by Mr. 1:24 1 minute, 24 seconds Gorab Singh Pushwaha founder managing director and chief executive officer and Mr. Rome dugar chief financial officer. 1:33 1 minute, 33 seconds We have we will start call with a brief overview of the quarter gone past and then conduct the Q&A session. With that said, I will now hand over the call to Mr. Gorov. Over to you. 1:44 1 minute, 44 seconds Thank you Ria. Good evening everyone. 1:49 1 minute, 49 seconds Thank you for joining us today. Uh it is my pleasure to welcome you to Bluestone's first earning conference call as a publicly listed company. This 1:57 1 minute, 57 seconds marks a significant milestone for us as we are truly excited about the progress we have achieved so far. Before we begin, I would like to sincerely thank 2:05 2 minutes, 5 seconds all our investors and shareholders who participate in our IPO and place their trust in us. We deeply value this trust and are fully committed to creating 2:13 2 minutes, 13 seconds long-term value for all the stakeholders. I would like to extend a special thanks to our banking partners, legal advisers and all uh stakeholders 2:21 2 minutes, 21 seconds who played a pivotal role in guiding us through this important journey. Last but not the least, I want to express my sincere gratitude to the entire team at 2:28 2 minutes, 28 seconds Blue Stone. Their unwavering commitment and hard work has been fundamental in shaping the company into what it is today. Now, uh before we discuss the 2:37 2 minutes, 37 seconds quarterly results etc. uh this is the first time this is our first earnings call after going public and this is the first time I'm speaking to a lot of you 2:45 2 minutes, 45 seconds so would like to also take this opportunity to uh to quickly walk uh walk you through our journey over last 2:51 2 minutes, 51 seconds 13 to 14 years and uh tell you bit uh about a bit more about myself personally 2:58 2 minutes, 58 seconds so I started blue stone in 2011 with with uh with feed round or initial funding from Axel partners and Axel 3:05 3 minutes, 5 seconds partners has been our uh one of the strongest supporters throughout Even before starting Bluetorm, I had another company. I started my first company in 2007 which was a social 3:13 3 minutes, 13 seconds network and that was also funded by Axel Partners. Prior to that I studied I studied it daily. I did computer science from there. I graduated in 2001 and 3:22 3 minutes, 22 seconds worked programming jobs. Amazon was the last company I worked in and from there I got to got interested in consumer internet space and started uh two 3:31 3 minutes, 31 seconds companies. One was social network and which I sold to Flipkart in 2010 and then moved out of it and then I was thinking of doing or I was in process of 3:40 3 minutes, 40 seconds figuring out what to do next and having seen how Flipkart Mena and some of the early e-commerce companies and other 3:47 3 minutes, 47 seconds categories were progressing I decided to do something in commerce. I could clearly see the opportunity there and 3:54 3 minutes, 54 seconds hence I started evaluating a lot of categories and while doing that uh evaluation I realized that jewelry is uh jewelry is an amazingly beautiful 4:03 4 minutes, 3 seconds category it's a category built for the country every other category that I was looking at at that time India was uh 4:10 4 minutes, 10 seconds Indian market was not that big in fact uh so any category if you look at if you look at and if you compare the size of Indian market with US market uh in that 4:19 4 minutes, 19 seconds category in India would 110 or 115 the size of US market. Now when I looked at Julie I realized this category is almost as big as it as its US counterpart and 4:29 4 minutes, 29 seconds more importantly it's even it's very ingrained in our society. So it's very cultural to us. It's very fundamental to us which was uh which which was some of 4:38 4 minutes, 38 seconds the very good uh some of the beautiful things about the category. I had no bad experience in the category. I had never entered a jewelry store before starting 4:45 4 minutes, 45 seconds it. uh but everything that I looked at everything that I saw in the category I found it very beautiful and decided to 4:54 4 minutes, 54 seconds uh start in it and at that time Axel who had worked with me in my previous company also they they also decided to uh jump in and they wrote me a seat 5:02 5 minutes, 2 seconds check of $4 million with which we started I built an initial team uh through mostly my juniors from IT and uh their 5:11 5 minutes, 11 seconds juniors of their network uh through their network through my network and so on and we started Ed addressing we started uh we started with the belief 5:20 5 minutes, 20 seconds and with the idea of building an online only jewelry brand uh we uh we were very clear that it's not going to be a 5:27 5 minutes, 27 seconds marketplace model it's going to be a direct uh direct to consumer model in fact the term D2C was not coined at that time but everything that we uh uh the 5:36 5 minutes, 36 seconds conclusions that we came to make the fundamental tenets of D2C now so we realized that what we were going to sell on our website on bluestone.com were 5:45 5 minutes, 45 seconds going to be our own products, our own designs and it was not going to be someone else's designs. Uh in the beginning we started working with so we 5:54 5 minutes, 54 seconds created a set of 3 400 designs primarily rings, earrings, pendants and decided to sell them. Uh the first step was to was 6:03 6 minutes, 3 seconds obviously to catalog them and I think that was when we met our first big challenge when we tried to photograph uh jewelry pieces. We realized that the 6:12 6 minutes, 12 seconds this category the kind of products and the kind the nature of the products make them very difficult uh for camera very 6:19 6 minutes, 19 seconds uh it's kind of it makes it impossible for camera uh to take beautiful photographs of jewelry pieces mainly because they're reflecting surfaces 6:27 6 minutes, 27 seconds refracting surfaces which gold reflects the light diamond lets the light pass through and so on. We looked around to see how others are taking others are 6:35 6 minutes, 35 seconds handling it and we realized that no one was either serious about it or was capable of doing or solving it. So we were the first ones in the world to then 6:43 6 minutes, 43 seconds use 3D rendering, 3D modeling uh to then depict jewelry beautifully. And that quite honestly changed the game for us. 6:51 6 minutes, 51 seconds And when we when we transformed our entire catalog from photographs to 3D renders uh the quality of the product 6:58 6 minutes, 58 seconds etc was very very high and people it was and coming to think of it when we were in online only when we were in online 7:07 7 minutes, 7 seconds only avar we were in a way in the business of selling a photo like what people were getting and delivered was a physical product but all the selling all 7:15 7 minutes, 15 seconds the decision making was happening on those photos. So it was very important for those photographs to be extremely beautiful and that that we were able to 7:23 7 minutes, 23 seconds achieve back in 2012. And then on I think our another our next big 7:31 7 minutes, 31 seconds observation was that as we're expanding our catalog we could not invenize everything. Uh we had limited capital available to us. So the only way we 7:38 7 minutes, 38 seconds could offer a lot of choices and choices is one of the beauty of internet. So the only way we could offer lots of choices 7:45 7 minutes, 45 seconds was if we move to just in time manufacturing model. Now we tried that with the existing supply chain with the existing manufacturers of jewelry but 7:53 7 minutes, 53 seconds realized that the that supply chain was not there for it. The manufacturing timelines were 3 to four weeks. The reliability of the end product was also 8:01 8 minutes, 1 second not that high. Uh there were lots of uh discrepancies between what was promised and what was manufactured. So we decided 8:09 8 minutes, 9 seconds to bring manufacturing in house and in next one year or so by end of 2013 early 2014 almost entire manufacturing was in 8:16 8 minutes, 16 seconds house and right after that we were able to bring down manufacturing timelines to 3 to 5 days and the whole e-commerce 8:23 8 minutes, 23 seconds engine kind of uh started working by around and with that by around 2015 by 8:31 8 minutes, 31 seconds around 2016 we reached close to 50 555 cr in on pure online D2C revenues and Uh that was also the time when we were 8:39 8 minutes, 39 seconds talking to a lot of our customers and we we spoke to a lot of our buyers asked them what is it why did you buy from blue stone and the number one reason is 8:48 8 minutes, 48 seconds always designs almost 86% people said they bought because they love the design so much uh number two was choices 9% people said choices 3% said price 1% 8:57 8 minutes, 57 seconds said convenience those also pointed us in the direction that this is truly a brand category it's not a it's not a 9:04 9 minutes, 4 seconds services game like your card or Amazon where if you ask the same question price and convenience would be the number one number two reasons. That was not the 9:12 9 minutes, 12 seconds case with us. And more importantly uh what we were also seeing was for every one person buying there were 30 to 40 people who were just browsing the 9:19 9 minutes, 19 seconds website who were spending who were exhibiting exactly same behavior as buyers spending as many weeks on the website looking at as many products 9:28 9 minutes, 28 seconds adding as many products to their wish list and cart but not buying. And we spoke to them the non- buyers and almost all the non- buyers told us that we love 9:36 9 minutes, 36 seconds the design. We love the fact that sitting at home we can browse we can look at so many uh beautiful jewelry designs which is just not possible in 9:44 9 minutes, 44 seconds the offline setup. In offline setup once you offer once you enter into a jewelry store you are generally under pressure because it's a counterdriven experience 9:53 9 minutes, 53 seconds you're generally asked if you like this particular piece don't like this piece shall short list and so on. So free browsing which is the case in a lot of 10:01 10 minutes, 1 second categories offline also like uh like apparel, shoes, you can just go to malls and browse for as many days as many weeks as you want without anyone asking 10:09 10 minutes, 9 seconds you any questions that free browsing is not present in case of jewelry in the offline setup and that is where online was extremely powerful. I say online was 10:18 10 minutes, 18 seconds turning out to be extremely powerful. So almost all those buyers said that we love the fact that we can actually look at 10,000 pieces of 10,000 designs of 10:25 10 minutes, 25 seconds frame which you can't do in offline. uh but then they said how can we buy something so expensive without touching and feeling it. Number two reason was if 10:34 10 minutes, 34 seconds something is if something uh if uh if let's say I few years down the line if 10:42 10 minutes, 42 seconds uh if there is some repair needed in that if a ring size needs needs to be changed if a diamond chips off where would I go for uh the repair in jewelry 10:49 10 minutes, 49 seconds typically the jeweler is also your service provider or repair provider and number three or the third biggest reason was that if years down the line I want 10:58 10 minutes, 58 seconds to exchange this design for a newer design how do I do that and that is a behavior which is uh which is very common in our country and generally 11:05 11 minutes, 5 seconds non-existent in any other country. So I think that was our big realization that for all the efforts for all the demand and all the pull that we are generating 11:14 11 minutes, 14 seconds online maybe uh because we are not able to solve these three problems maybe we are not uh we are not uh converting that 11:23 11 minutes, 23 seconds into the real business or we are not kind of efficiently converting that into the real business and maybe that if you could solve for these three problems the business size is not whatever it was 11:32 11 minutes, 32 seconds maybe the true business size is 30 to 40 times of whatever that was and with that with that led With that hypothesis, we 11:40 11 minutes, 40 seconds uh we went out uh to open we went out uh to open stores and the idea was clear that these three problems cannot be 11:48 11 minutes, 48 seconds solved online. The natural solve for these is a store. A store very natural solves for it. Uh no known amount of web pages, no amount of cornises that you 11:56 11 minutes, 56 seconds put on your web page. We're going to solve it. So we opened our first mall in F59 in Pacific Mall, Rajari Garden and 12:04 12 minutes, 4 seconds that year we opened uh five five stores in total. And we saw the hypothesis playing out. We saw that in those catchments 12:12 12 minutes, 12 seconds uh in those catchments where we opened the store, we were able to convert that online demand into overall business for 12:19 12 minutes, 19 seconds the company much more efficiently. And I think in our RSP also and and in uh investor presentation also we have 12:26 12 minutes, 26 seconds depicted uh one such one such scenario and in the city of Rachi when the online only a we were doing close to 70 lakh in 12:35 12 minutes, 35 seconds revenues annual revenues which have now gone up to approximately 18 or so with with the support of two stores. That's 12:42 12 minutes, 42 seconds the kind of that's the kind of multipliers that that omni channel presents has built uh on top of these existing strong online 12:51 12 minutes, 51 seconds present that we already had and I think since then the journey has been of how fast can we u can we layer this these 13:00 13 minutes channel stores are our online presence was always very strong pan India and in last four to five years or five to six 13:07 13 minutes, 7 seconds years our endeavor has been there more and more of this online presence with a strong omni channel presence and that's why and it's it is working out in 13:17 13 minutes, 17 seconds every catchment in every zone in every region of the country and that's why we have very high confidence very high conviction and that is the fundamental 13:25 13 minutes, 25 seconds reason of uh very uh very rapid roll out as lot of efforts all the efforts uh all 13:34 13 minutes, 34 seconds the efforts that already been there and getting people on the website getting people to engage getting people to love our designs all that has been going on 13:41 13 minutes, 41 seconds for almost 14 years now. The more we lay into the only channel, the stronger we keep on becoming and the stronger leverage we keep on getting on each of 13:48 13 minutes, 48 seconds those efforts that we have been putting over last 14 years. Uh so we ended F525 with 275 stores. So this quarter we 13:57 13 minutes, 57 seconds opened uh few more I think 297 292 292 stores uh we ended this quarter with 14:05 14 minutes, 5 seconds and um coming to our performance during the quarter overall we saw healthy revenue growth of around 41 around 41% y 14:15 14 minutes, 15 seconds and that's driven by very healthy sales sales growth and the continued expansion of our omi channel footprint. Alongside this growth, we delivered meaningful profitability improvements also with 14:23 14 minutes, 23 seconds standalone adjusted AITA of 630%. And margin expanding by 1358 basis points reflecting operating leverage across 14:31 14 minutes, 31 seconds marketing, corporate costs and manufacturing efficiencies. I'm also pleased to report that through our consistent efforts and focus on profitability, we turned cash back 14:39 14 minutes, 39 seconds positive at 17.5 crores versus the cash loss on a standalone basis of INR 36 14:46 14 minutes, 46 seconds crore million 36 cr in the same quarter last year. These results underscore the profit uh profitable scalability of our 14:55 14 minutes, 55 seconds business model and this balance of growth with improving profitability gives us confidential deliver sustainable long-term outcome for our stakeholders. 15:04 15 minutes, 4 seconds Now our chief financial officer Mr. 15:06 15 minutes, 6 seconds Dumit Duper uh will take you through the financials detail. Dumit can please. 15:11 15 minutes, 11 seconds Thanks Gorov. Thank you all for joining us today. Good evening. I'm pleased to share our Q1 FI26 financial performance. 15:19 15 minutes, 19 seconds I'll keep my remarks brief. Uh we hope that all of you had the chance to go through our detailed financials and 15:26 15 minutes, 26 seconds commentary. As you can see from a disclosure perspective, we've uh we putting in our best efforts to make sure that there is uh there is as much 15:35 15 minutes, 35 seconds transparency as we can bring in in terms of uh our disclosures uh and uh thus the detail manage comment uh management 15:43 15 minutes, 43 seconds commentary uh that you would have seen in our results pack. 15:48 15 minutes, 48 seconds Overall, our standalone revenue standalone revenue from operations for the quarter stood at 4926 million up 41% 15:55 15 minutes, 55 seconds year-on-year. uh versus 3482 million during the same quarter last year. 16:01 16 minutes, 1 second Standalone adjusted IIDA was at 830 million uh rupees uh up 630 630%. More importantly, standalone adjusted IIDA margins came in at 16.8%. 16:13 16 minutes, 13 seconds Uh up 1,358 basis points yearon year. Uh this was 3.3% in Q1 FI25. 16:22 16 minutes, 22 seconds Uh also I would like to highlight uh as as a best practice from a transparency perspective uh we would be calling out 16:31 16 minutes, 31 seconds inventory gain or loss. Uh this quarter we had an inventory gain of 228 million during Q1 FI26. 16:38 16 minutes, 38 seconds Uh excluding these inventory gains, our adjusted EIDA was still pretty strong at 602 million with adjusted EVIDA margins 16:46 16 minutes, 46 seconds of 12.2% 2% uh up more than 400% year-onear uh with nearly 895 basis 16:53 16 minutes, 53 seconds point margin improvement on contribution margins. Again excluding inventory gains and contribution margin is is our key 17:01 17 minutes, 1 second operating uh margin uh metric which which is the source of driving operating leverage uh in the business because 17:08 17 minutes, 8 seconds below contribution margin we have a lot of fixed cost structure which is sitting there related to stores. 17:14 17 minutes, 14 seconds So contribution margin excluding inventory gain stood at 31.8% an improvement of again uh more than 130 basis points YI. Uh this expansion was 17:23 17 minutes, 23 seconds primarily driven by scaling of our new manufacturing facilities that opened in FI25 uh which were improving man capacity 17:30 17 minutes, 30 seconds utilization as well as uh stabilizing and delivering process efficiencies. 17:35 17 minutes, 35 seconds Our expense for rent was rupees 368 million during the quarter. Um we have seen significant reduction in our 17:43 17 minutes, 43 seconds advertising and marketing cost uh from 12.2% as a percentage of revenue in Q1 FI25 17:49 17 minutes, 49 seconds uh to 6.9% of revenue. Uh this is driven by operating leverage that we are seeing uh coming from scale benefits uh rising 17:58 17 minutes, 58 seconds repeat customer uh uh revenue ratio uh as well as there was a uh step down in terms of the promotion scheme that we 18:07 18 minutes, 7 seconds had on the old gold exchange as Goro mentioned more importantly we turned cash back positive for the uh for the quarter our same store sales growth 18:16 18 minutes, 16 seconds was strong at 18.4% 4% YI for the quarter and we reported a healthy revenue repeat revenue ratio of uh 50.7%. 18:25 18 minutes, 25 seconds Uh demonstrating uh the strength of our product portfolio uh the stickiness of our customers and the scalability of our omni channel model. Our performance 18:34 18 minutes, 34 seconds during the quarter reinstates our faith in the business model. Our digital first approach uh continues to serve strong demand funnel for our stores while our 18:42 18 minutes, 42 seconds expanding retail footprint is deepening customer access. This also allowed us to grow our customer base to more than 18:49 18 minutes, 49 seconds 800,000 816,000 uh to be precise. Importantly, we've also maintained strong unit economics 18:56 18 minutes, 56 seconds and discipline cost management uh which has as demonstrated in this quarter ensured that the topline growth translates effectively into operating profitability. 19:06 19 minutes, 6 seconds Uh with that uh Steve, we can uh open the floor uh for questions if any. 19:15 19 minutes, 15 seconds Thank you sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 19:22 19 minutes, 22 seconds and one on your touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 19:28 19 minutes, 28 seconds two. Participants are requested to use handset while asking a question. 19:35 19 minutes, 35 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 19:44 19 minutes, 44 seconds The first question comes from the line of Arvin Kuripaka with IME portfolio managers. Please go ahead. 19:54 19 minutes, 54 seconds Hello. Hello. 19:57 19 minutes, 57 seconds Hi every congratulations on good numbers. I had a 20:03 20 minutes, 3 seconds couple of questions on the model itself where I understand the omni channel model and the argument very well. Is it 20:12 20 minutes, 12 seconds possible for you to uh distinguish between a customer who walks in directly into offline and someone who is 20:20 20 minutes, 20 seconds influenced online and then goes to stores? 20:26 20 minutes, 26 seconds Yeah. So there are various ways of doing it. I think one of the one of the obvious ones. So there are two major ways of doing it. One of the obvious 20:34 20 minutes, 34 seconds ones is a lot of people when they are browsing on the website, they also tend to they also tend to register especially repeat users. 20:43 20 minutes, 43 seconds Yes. Yes. 20:44 20 minutes, 44 seconds Okay. So when when someone is registered, we already have their email and phone numbers. 20:49 20 minutes, 49 seconds Okay. And when they make a purchase in in any of our stores, the phone number email is mandatory. It's the same system essentially. So the point of sale that 20:57 20 minutes, 57 seconds we have in stores is nothing but the website. 21:01 21 minutes, 1 second Okay. So yeah, I understood that. Yes. 21:04 21 minutes, 4 seconds The moment the moment someone does that, we can uh we match their we match we match that person to their browsing 21:12 21 minutes, 12 seconds history. Let's say few weeks prior to making that purchase, right? So every person who registered, 21:20 21 minutes, 20 seconds we we have tracking. There's something called cookie based tracking. So we have that in detail on every person whether the person is registered or not registered. Cookie based tracking goes 21:29 21 minutes, 29 seconds all the way for 6 months or 12 months for yeah so the question 21:36 21 minutes, 36 seconds no I am familiar with this the question that is one that is so that is one 21:43 21 minutes, 43 seconds secondly what happens is as we a lot of these user that we get we get from Google Facebook etc. 21:50 21 minutes, 50 seconds So what they also provide is once you act so there's something called hashing. 21:54 21 minutes, 54 seconds So once you anonymize uh the your buyers phone numbers and email addresses and supplied to them 22:01 22 minutes, 1 second they also tell us that how many of those people have actually come to my website from these platforms. Sure. 22:10 22 minutes, 10 seconds So these are two ways which with which you can actually match this and when we do this matching that that match is very very high. 22:19 22 minutes, 19 seconds Yeah. Um, so then what percentage of your sales can you actually attribute to someone who has browsed beforehand 22:28 22 minutes, 28 seconds before getting into the store and someone who directly walked in without having a say a one or two week history 22:36 22 minutes, 36 seconds of browsing in that particular category and can you sure our ballpark sense there is 70 to 90% uh comes from online browsing. 22:48 22 minutes, 48 seconds Okay. So 70 to 90% of the people who browse eventually come to the store. 22:53 22 minutes, 53 seconds No no no 70 to 90% of people who end up buying they they had browsed the website prior to buying from the store. 23:00 23 minutes Okay. And and the browsing window is what like 1 week 1 month 3 month. 23:13 23 minutes, 13 seconds Is it possible for the company in general? in general has been the number of people who are browsing is in 23:21 23 minutes, 21 seconds millions right every day cannot obviously cannot be 70 to 90% of that is the number of people who are buying 23:29 23 minutes, 29 seconds 70 to 90% of buyers were browsers on the website understood understood yeah yeah yeah I 23:36 23 minutes, 36 seconds should have asked this sure sure is it possible for the company to disclose this metric on a constant quarterly 23:44 23 minutes, 44 seconds basis just so I understand How much of a dependence there is on the digital channel? 23:53 23 minutes, 53 seconds There's no plan to be to do that right now. 23:56 23 minutes, 56 seconds Okay. Okay. Okay. Understood. The second question is regarding inventory on the balance sheet. 24:04 24 minutes, 4 seconds Now I understand there's been a rapid sore expansion. In fact, we've gone from 24:10 24 minutes, 10 seconds 77 stores in FI22 to roughly uh 300 stores by quarter end this year. Um but 24:20 24 minutes, 20 seconds your expansion of inventory on balance sheet has also rapidly increased. In fact, if you just look at uh inventory 24:28 24 minutes, 28 seconds per store, right, or inventory days, whichever you look at, right? Let's just say inventory per store went from 2 and a half crores of inventory per store to 24:37 24 minutes, 37 seconds roughly um 6 croresish per store. Uh I don't understand what exactly drove this rapid 24:46 24 minutes, 46 seconds expansion in inventory uh on the balance sheet. So Arind this is Rome. I'll take that. 24:54 24 minutes, 54 seconds Um look before before I actually get into the um uh the the specific question let me let me also kind of take a step 25:04 25 minutes, 4 seconds back and uh give you some color on you know how we kind of operate how we recognize revenue etc. So you can 25:11 25 minutes, 11 seconds contextualize uh our inventory versus some of the other uh other peer sets etc. uh so so one is in terms of revenue recognition 25:20 25 minutes, 20 seconds we recognize revenue only on a B2C or a retail sales basis so even though we have some 25:28 25 minutes, 28 seconds franchisee stores uh we don't recognize revenue when inventory moves from our balance sheet to let's say a franchisee 25:36 25 minutes, 36 seconds store right so so we are a B2C sales uh revenue recognition as a result the balance sheet that you or the inventory 25:45 25 minutes, 45 seconds that you see is the full view of the retail channel. Uh that is that is number one. Uh number two is again we 25:54 25 minutes, 54 seconds are fully vertically integrated into manufacturing which reflects in our superior contribution margins etc. right 26:01 26 minutes, 1 second uh versus versus the peer book uh peer group. So there is also manufacturing inventory that is sitting on our balance 26:08 26 minutes, 8 seconds sheet which which you need to uh consider. Uh third third factor now 26:16 26 minutes, 16 seconds coming to um the inventory large part of the inventory is gold and to the extent the inventory is uh is is hedged there 26:24 26 minutes, 24 seconds will be obviously mark to market. So it's so inventory growth is not necessarily a function of you know uh us adding more inventory but it's just that 26:32 26 minutes, 32 seconds if the gold prices keep going up which which you have seen over the last two to three years obviously it increases the 26:39 26 minutes, 39 seconds inventory value. Um so that's the that's the third factor and the fourth one is uh obviously uh the amount of stores 26:47 26 minutes, 47 seconds that we have opened. So if you look at our 292 stores uh that we have as of Q1 uh of this almost 83 opened in FI 2025. 26:57 26 minutes, 57 seconds So nearly 210 stores have opened actually in the last 3 years. Right? So if you're going to 27:05 27 minutes, 5 seconds compare my my inventory from FI22 to where we are or FI23 to where we are today, you have to factor in the gold 27:14 27 minutes, 14 seconds price movement u as well as the uh roll out of new stores. Also uh the average 27:22 27 minutes, 22 seconds the average age of our stores is uh uh as a result quite young. Um and thus if you look at our RHP we've given you know 27:30 27 minutes, 30 seconds the typical uh store performance and even in this quarter's management commentary we've disclosed the oldest cohorts what kind of revenue 27:38 27 minutes, 38 seconds productivity they are delivering so you can see that FI25 by 1920 cohorts were at 12 cr revenue productivity right 27:46 27 minutes, 46 seconds so typically the way to think about inventory turn is at a very fundamental 27:53 27 minutes, 53 seconds level uh is look at the turn and on every turn how much gross margin I'm 28:01 28 minutes, 1 second generating. So you could have one model where you do point sales at 3% margin 28:09 28 minutes, 9 seconds and do 10 inventory turns and you'll have a 30% gymroy and that is your fundamental source of ROC in the business right because 30% Jimroy is is 28:19 28 minutes, 19 seconds the source of ROC and then it kind of translates after opex etc into the company level ROC or you could operate 28:28 28 minutes, 28 seconds at 1.82 two turns uh with a with a 30 35 38% 28:35 28 minutes, 35 seconds GM and then let's say at a 38% GM you generate a 70% sort of Jim Royo right 28:43 28 minutes, 43 seconds and that becomes your fundamental source of ROC so you can't look at only inventory turn in isolation it has to be 28:50 28 minutes, 50 seconds viewed in context of gross margin and the metric that we try to optimize is the Jim Roy because that's our fundamental source of ROC in the Sure. 29:01 29 minutes, 1 second Uh I understood uh what you're trying to uh explain here. Just but just a very 29:09 29 minutes, 9 seconds quick question. I understand the impact of gold prices on inventory and the days moving up right but that would have also 29:18 29 minutes, 18 seconds had an impact on your revenue right would have also aided the revenue growth. So when I invent 29:26 29 minutes, 26 seconds I just cut you there when you look at year in numbers and the way the gold moved from January to March I don't think sales would have time to catch up in that especially if you're looking at 29:34 29 minutes, 34 seconds the annual sales if you're looking at um 29:44 29 minutes, 44 seconds if gold goes up 40% in one month your sales will not increase by 40%. But on the contrary, the sales when gold is 29:52 29 minutes, 52 seconds volatile and it takes time. It takes time for the catch up to happen. 29:58 29 minutes, 58 seconds No, I'm aware uncharted territory especially when it comes to the way gold is structured. 30:08 30 minutes, 8 seconds No, I'm aware of this mechanism in alert. I am not referring to now. Uh could you please come back in the queue for further questions? 30:18 30 minutes, 18 seconds No, I can I just complete my question. Uh yes, please go ahead. 30:23 30 minutes, 23 seconds It's a follow on please. Yeah. Uh I'm aware of this mechanism in due earth. I'm looking at a longer itself, right? 30:30 30 minutes, 30 seconds I'm looking from FI22 to FI25. 30:34 30 minutes, 34 seconds Right. Over this period, we did see gold prices move up. I'm not saying one month's gold price increase would have had an impact immediately on revenue. 30:43 30 minutes, 43 seconds But also, what I'm trying to get to is even if I factor in the gold price impact, whether it's on one year basis 30:51 30 minutes, 51 seconds or threeear basis on inventory and revenue, your inventory turn would have still gotten down from the roughly 2.8 times 31:01 31 minutes, 1 second that you understand. So if you're looking at very long term from FI22 to 25, it has less to do with let's say gold price movement and gold price 31:08 31 minutes, 8 seconds movement actually only impacts it when you're looking at year end inventory and fully a sale which maybe your normalizing important which is the right thing for two to do when we are 31:17 31 minutes, 17 seconds expanding at this rapid pace. Now in our case a big reason for that also is the maturity and the growth of stores with 31:24 31 minutes, 24 seconds the kind of SSGS we are seeing and if you look at those 200 stores which have been opened in less than 2 to 3 years 31:31 31 minutes, 31 seconds those are going to take time to fully show results for on the inventory and the capital that is deployed in those 31:38 31 minutes, 38 seconds stores when we when I look at my mature stores or not not not mature because even they are going very rapidly but older stores this number is much much 31:46 31 minutes, 46 seconds stronger what you what you're seeing is a blend of new and old stores 31:54 31 minutes, 54 seconds and in fact a blend and then on top of that manufacturing inventory also. So you need to once you start culling all those a lot of those things out uh the numbers are actually much much better. 32:06 32 minutes, 6 seconds Thank you Mr. Arvin. I would request you to please come back in the queue for further questions. 32:12 32 minutes, 12 seconds The next question comes from the line of TJ Sa an individual investor. Please go ahead. 32:19 32 minutes, 19 seconds Uh fine. Uh this is Pis from uh Aendas Park. Uh yeah, just wanted to understand uh what was the revenue per square feet 32:27 32 minutes, 27 seconds uh for this quarter and typically uh how many quarters does a new store take to reach maturity and and you just spoke about that even mature stores are doing 32:36 32 minutes, 36 seconds good number. So what is typically the number that revenue per square feet uh that mature stores uh kind of stabilizes? 32:45 32 minutes, 45 seconds Yeah. So pages uh given uh given our business model and our formats uh really revenue per square feet is not a metric 32:53 32 minutes, 53 seconds that uh that we look at or we track. Uh I think the best way to see it is uh revenue per store. So if I look at my uh 33:02 33 minutes, 2 seconds older older cohorts uh you know uh the stores that opened in 1920 in FI25 on an 33:09 33 minutes, 9 seconds average they did a revenue of about 12 crores peranom and uh the rental uh uh 33:17 33 minutes, 17 seconds for these stores would be in the range of you know 40 45 lakhs peranom. So just that kind of gives you an idea that you 33:25 33 minutes, 25 seconds know the rental cost as a percentage of overall revenue in this particular category and in our omni channel business model because our format sizes 33:33 33 minutes, 33 seconds are 1,800 2,000 square ft² average uh revenue per square feet is not something that that we track. So the focus uh 33:41 33 minutes, 41 seconds metric for us is to uh drive the revenue per store. uh and given our contribution margins are pretty high lot of the 33:50 33 minutes, 50 seconds operating leverage kind of keeps flowing in uh to the vendor at a store level. 33:56 33 minutes, 56 seconds Okay. And and if you can just elaborate uh if revenue per square feet doesn't matter then how does revenue per store 34:03 34 minutes, 3 seconds matter because I can understand there's an underlying commodity volatility perhaps hence we just wanted to understand because how do you measure 34:11 34 minutes, 11 seconds then productivity of uh of of the store so on a per store uh uh per store metric 34:20 34 minutes, 20 seconds right uh so revenue per store rent uh rent per store uh employee cost per store facility cost per So the way we build the unit economics 34:28 34 minutes, 28 seconds and and you can look at in the RSP we've given the unit economics of our older cohorts um so typically an all-in cost uh in our 34:38 34 minutes, 38 seconds FI1920 cohort is about 1 cr which includes rent facilities um and and uh 34:44 34 minutes, 44 seconds store employee cost. Uh so now if a 12 crore uh 12 crore revenue productivity store at 30 32 32% contribution margin 34:53 34 minutes, 53 seconds there's about 3.2 2 crores of contribution with about 1 cr of opex which includes rent u so that delivers a 35:01 35 minutes, 1 second 22% post rental store uh story level available so that's that's the way we think about it and these these stores 35:10 35 minutes, 10 seconds are still seeing SSH sheets right so uh so it's not that the these are our older cohorts but not to say they are matured 35:20 35 minutes, 20 seconds and and thus there are a lot of categories where we are still not present maintain there is room to expand merchandise. There is room to build and 35:28 35 minutes, 28 seconds get into more product categories, subcategories uh which which can then continue to drive growth uh even in these stores. 35:36 35 minutes, 36 seconds And as you can see if on an existing mature cohort uh or or the older cohort stores at 12 cr if there is a 15% 20% 35:46 35 minutes, 46 seconds kind of SSG that incremental revenue the IBIDA margin for that is almost equal to contribution margin. 35:54 35 minutes, 54 seconds Okay. And then matures are showing uh SSSG which is volume or because there's a lot of pricing element also which plays role here. Right. 36:05 36 minutes, 5 seconds See u we generally are non-existent in coins chains and a lot of grammage based 36:12 36 minutes, 12 seconds products. And typically in our case what happens is people come with a budget of let's say 50 to 70,000. Now that same 36:22 36 minutes, 22 seconds person's budget is not going to double if the gold has doubled. We are all mostly middle class, right? 36:28 36 minutes, 28 seconds So, so essentially the the product that they end up buying is different because one year back there other there was some 36:36 36 minutes, 36 seconds other product in their budget. Now there's some other budget product in their budget. So that is essentially what we largely see also. Historically 36:45 36 minutes, 45 seconds there have been periods when gold was not moving that rapidly. Our increased in those periods also. So if you go back 2 3 years and so on and not not look at 36:53 36 minutes, 53 seconds just the current ASP increase you'll see that those ASPs have generally been increasing. 36:59 36 minutes, 59 seconds Okay and and last one if I may and since we are talking for the first time uh just wanted to understand what are the 37:06 37 minutes, 6 seconds top five KPIs you monitor to understand uh demand environment and productivity of the stores. 37:16 37 minutes, 16 seconds So um they just uh what we look at is uh one the uh cohort level per store uh per 37:25 37 minutes, 25 seconds month revenues. I think that is that is one of the key key metrices that we kind of look at. Uh and then obviously it gets broken down into you know how much 37:34 37 minutes, 34 seconds is repeat, how much is coming from new customers, how much is the AOV uh and these are the output metrics but lot of 37:43 37 minutes, 43 seconds our fundamental approach to execution is very input driven. So metrics that we control in terms of you know the designs 37:52 37 minutes, 52 seconds in in terms of the in inventoriization in terms of the design terms in terms of u uh the gymroys at a design level etc. 38:00 38 minutes So so lot of our matrices are very input based but from your perspective the output metrics I think the key one is 38:08 38 minutes, 8 seconds per store uh revenue per store per month at a cohort level. I think that that is the key output metric. Uh I would say 38:17 38 minutes, 17 seconds perfect. Uh thanks a lot and all the best for your common purpose. 38:24 38 minutes, 24 seconds Thank you ladies and gentlemen. If you wish to ask a question you may press star and one. 38:31 38 minutes, 31 seconds The next question comes from the line of Adita Jan from Kartella Ventures. Please go ahead. 38:38 38 minutes, 38 seconds Hi good evening. Thank you so much for this uh opportunity. Congratulations on the strong growths Gorov and Rome. My 38:46 38 minutes, 46 seconds question is on the same uh mean we see a few factors playing out in in this growth. I mean despite the elevated 38:53 38 minutes, 53 seconds growth prices we've seen your uh customer base expanding. You have opened up new stores but at the same time we see moderation in your stud mix. It has gone down to 64% from 59%. 39:06 39 minutes, 6 seconds The uh the gap was filled with with increase in average order volume value. 39:11 39 minutes, 11 seconds So how do you see these factors playing out in the upcoming quarters? Which one do you see would play a main role in sustaining the growth? At the same time, 39:19 39 minutes, 19 seconds can you help me understand if this increase in average order value was adjusted for the prices or it's uh including price? 39:33 39 minutes, 33 seconds Yeah. So so I think in terms of playing gold and in terms of stud ratios etc. uh there are uh I think as we are expanding 39:41 39 minutes, 41 seconds more and more stores and uh I think behaviorally 6469 is not I think our general endeavor 39:48 39 minutes, 48 seconds has been to kind of be more stud focused and 6469 I understand that is marginal difference there but I think that's just 39:56 39 minutes, 56 seconds behavioral change and especially in these volatile times some of these mixes are just moving here 40:02 40 minutes, 2 seconds and there uh in terms of second uh on on AOB is a mix of price and 40:11 40 minutes, 11 seconds yeah so on AOV we don't track it at volume because honestly with the kind of margins that we have like 38% gross margin it's not it's not driven by 40:19 40 minutes, 19 seconds honestly it's not driven by volume when when someone is actually paying 38% on top of the on on top of the value of the 40:26 40 minutes, 26 seconds gold they're not looking at uh kind of they're not driven by buying a 10 g gold a 10 gold chain and so on we don't sell 40:33 40 minutes, 33 seconds those kind of products And we see a increase even when the gold is flat. It's not that a decrease when 40:43 40 minutes, 43 seconds gold drops or they remain flat when the gold is flat. So we have not seen that behind that cause effect. 40:51 40 minutes, 51 seconds Understood. And this increase in customer base uh customer base expansion this is largely driven by your online efforts or new stores 41:00 41 minutes both. uh so essentially I think what's happening is the only channel as a behavior is fundamentally seeping in more and more people and younger generation is naturally online all the 41:09 41 minutes, 9 seconds time you can just see around yourself also everyone is just doing their mobile all the time a lot of this discovery happens on Instagram Google and so on 41:17 41 minutes, 17 seconds people are just discovering the world on on their reels on their on their Tik Toks and so on so I think all that is happening and all that the more that 41:25 41 minutes, 25 seconds happens the stronger we'll keep on becoming because uh we we we kind tap much better into those platforms and the 41:33 41 minutes, 33 seconds traditional players. So that is happening. I think it's a behavior. It's a societal change. If I just kind of try to look ahead 20 years, I think everyone 41:42 41 minutes, 42 seconds every all the discovery and a lot of mobile and technology doing or internet people doing a lot more than what it is doing right now. So I think it's a behavior change that has happened over 41:50 41 minutes, 50 seconds the last 20 years. We in 2025 right now 2005 there was no mobile there's no hardly any wireless routers. And from there we have come to this point in 20 41:59 41 minutes, 59 seconds years next 20 years it's going to be God only knows what will happen. Uh but but internet and technology is going to play 42:06 42 minutes, 6 seconds a much stronger role and that is that is really much stronger. 42:11 42 minutes, 11 seconds Understood. U since this is driven by omni channel growth and you also mentioned that you cut down on your marketing cost. So marketing cost has 42:18 42 minutes, 18 seconds gone down by a few percentage points. I mean how is that impacted given your conversion cycles of around one month? 42:24 42 minutes, 24 seconds Our efficiency has increased drastically. In last one year, the platform's efficiencies have increased drastically. 42:30 42 minutes, 30 seconds It's on the back of efficiency. It's on the back of reducing cost per lead or any other method. 42:36 42 minutes, 36 seconds Which is efficiency, right? The platform. So, okay. U so typically what happens is or what gives online marketing more strength over traditional 42:44 42 minutes, 44 seconds marketing is the ability of that platform to know about each and individual customers. And you would have experienced that loss if you're an Instagram user or Google user. If you're 42:53 42 minutes, 53 seconds if you have a certain intent, these platforms are much stronger now or much more accurate now in targeting you. 43:00 43 minutes So that efficiency essentially is what translates into eventual marketing efficiency also which traditional media does not have. We still have to spray and pray. Traditional media is all about spray and pray. 43:10 43 minutes, 10 seconds My last question is on the same store sales growth. U I believe a few of uh other people have asked same question 43:17 43 minutes, 17 seconds but uh your same store sales growth for this quarter was around 18.4%. 43:23 43 minutes, 23 seconds At the same time the FY25 growth was around 32.1%. Now I believe you have opened up new stores as well. Uh how do 43:31 43 minutes, 31 seconds you see the uh sales store sales growth panning out across different regions or different geographies and if there is any particular geography that is moving 43:40 43 minutes, 40 seconds slow how are you managing inventory there? 43:45 43 minutes, 45 seconds So uh I think from a geographical perspective it's uh it's reasonably well distributed. I don't think there is there is anything to call out from a 43:53 43 minutes, 53 seconds geographical perspective. Um I think what has also uh happened is we've seen this calendar year uh gold has moved 44:03 44 minutes, 3 seconds from you know 70 75,000 to almost you know one lakh one lakh plus and it's all happened in a very short time. 44:13 44 minutes, 13 seconds uh as Goro was I think answering one of the questions earlier in terms of you know gold price increase uh gold price 44:20 44 minutes, 20 seconds increase impacts you know pauses the customer uh purchase. So what consumers especially our type of buyers want to 44:28 44 minutes, 28 seconds see is a stable you know stable gold price or if the gold price is trending up but with not high velocity change. 44:37 44 minutes, 37 seconds So that is what I think has been there for the last you know the bulk of this uh this calendar year. 44:45 44 minutes, 45 seconds So, so I think uh the growth is still pretty strong considering the outlook and uh uh the environment of very high 44:53 44 minutes, 53 seconds gold prices, right? I mean, if you recall, April had a record price increase in uh in gold. 45:00 45 minutes So, uh so I think I'll leave it there and that's all right. Uh thank you so much. 45:10 45 minutes, 10 seconds Thank you. 45:12 45 minutes, 12 seconds The next question comes from the line of Gopal with SBI life insurance. Please go ahead. 45:19 45 minutes, 19 seconds Uh uh hi am I audible? Hi we can hear you. 45:25 45 minutes, 25 seconds Yeah congrats uh uh for the strong performance. 45:30 45 minutes, 30 seconds Uh my question was uh on uh a couple of things on uh PNL side. uh this 45:38 45 minutes, 38 seconds franchisee commission what is uh higher sequentially and uh year on year so is there any one-offs in this? Yeah. 45:49 45 minutes, 49 seconds So there were some franchisee settlements that are that are there, right? Uh so we are uh so some of the contracts that we had earlier with the 45:57 45 minutes, 57 seconds franchises I think as we are kind of exiting those contracts there are some of these one-time kind of settlements uh 46:04 46 minutes, 4 seconds that are that are there when we exit these uh these contracts. 46:10 46 minutes, 10 seconds So right now what is the mix uh franchisee and own store? 46:15 46 minutes, 15 seconds 75 is franchisee uh and uh out of 292. 46:22 46 minutes, 22 seconds Okay. Okay. Uh and uh if I'm not wrong this is part of uh uh financial cost. 46:31 46 minutes, 31 seconds No. So uh so there are two components. 46:35 46 minutes, 35 seconds uh one is the minimum guarantee that we give to the franchises which is recorded as financial cost uh and anything over 46:42 46 minutes, 42 seconds and above that minimum guarantee uh is recorded as OPEX. 46:47 46 minutes, 47 seconds So what you've seen in that franchise ID expense uh is the delta on the on the opex as there were some uh exit exits 46:56 46 minutes, 56 seconds that uh we are taking and then there are some provisions right with respect to those exits that we are taking with those franchises. 47:04 47 minutes, 4 seconds Okay. And uh the absolute other expenses were down and if I try to split it 47:12 47 minutes, 12 seconds between spends uh uh I was wondering why manufacturing expenses should be down absolute level one. 47:20 47 minutes, 20 seconds So uh two things there uh one is that uh because we are vertically integrated 47:27 47 minutes, 27 seconds into manufacturing manufacturing expense is a function of how much production I have done in that quarter. So if you 47:35 47 minutes, 35 seconds look at our inventory change, our inventory change between Q4 and uh Q1 is 47:41 47 minutes, 41 seconds not not very large right. Um so there was no big inventory buildup. So the production facilities were optimized for efficiency not for inventory buildup. 47:54 47 minutes, 54 seconds And thus thus the expenses are lower and same time last year we were kind of ramping up right because we were opening 48:03 48 minutes, 3 seconds 83 stores the store rollout was frontloaded etc. And also it's also a 48:09 48 minutes, 9 seconds function of uh capital uh uh in in last year if you have access to capital then you frontload some of the inventory for 48:16 48 minutes, 16 seconds seasonality for store roll out. So I think all that also creates some volatility in the base quarter and also gopal we had some of the factories which 48:25 48 minutes, 25 seconds are new there. So uh the and as those fac new factory essentially has uh takes some time to then start operating at 48:34 48 minutes, 34 seconds more efficiency or higher efficiency which has I can understand efficiency but how come uh absolute expenses goes down is where 48:42 48 minutes, 42 seconds I was wondering actually yeah which is as I said I mentioned goal it's a function of production right like if if I'm not building out inventory the 48:50 48 minutes, 50 seconds production that I'm doing in that quarter is lower does the labor that I need to use right uh in terms of costs 48:57 48 minutes, 57 seconds uh the quantum of all the expenses is much lower because I can keep moving up my moving 49:04 49 minutes, 4 seconds up and down my mind capacity. So there is an installed capacity and then there is a man capacity. I can keep adjusting the mind capacity to optimize for capacity utilization. 49:16 49 minutes, 16 seconds Got it. And uh same is the case on the ad spend side. 49:22 49 minutes, 22 seconds ad spend ad spend I think I asked this question the previous uh I answered as part of the previous question also so platforms efficiencies have increased we 49:31 49 minutes, 31 seconds are seeing uh from last year to this year we are seeing significant uh significant improvement in the 49:38 49 minutes, 38 seconds efficiency of online platforms it's mainly Google and Facebook that we work with uh just to add uh also Gopal uh 49:47 49 minutes, 47 seconds there was a downward revision in our carrot upgrade offer right uh so earlier when we offer. So that way we were we were we 49:56 49 minutes, 56 seconds are now spending less right like the absolute cost. So that also drives slightly lower cost. 50:03 50 minutes, 3 seconds So out of the 34 cr how much uh is related to uh uh extra carrot which you are giving. 50:14 50 minutes, 14 seconds I think roughly it'll be I don't have the exact number maybe I can come back to you in terms of uh the exact percentages uh of how much is uh of this 50:24 50 minutes, 24 seconds breakup of uh 34 crores generally how much it is uh in the folar basis 50:32 50 minutes, 32 seconds I think historically it's been about 2 to 3% u in in that territory historically I'm saying now in this base 50:41 50 minutes, 41 seconds quarter it would have come down for 2 to 3% of sales I'm saying. 50:46 50 minutes, 46 seconds Okay. And uh uh I'm sorry to interrupt Mr. Gopal. I would request that you please come back in the queue for further questions. 50:55 50 minutes, 55 seconds Ladies and gentlemen, you are requested to limit your questions to one per participant. 51:02 51 minutes, 2 seconds The next question comes from the line of Ark Sha with Stallion Asset. Please go ahead. 51:10 51 minutes, 10 seconds Hello. Am I audible? Oh yes you are. Please go ahead. 51:17 51 minutes, 17 seconds Yeah. Hi Kov. Hi Rome. Congratulations uh on the IP on the listing. I'm just seeing the company uh very initially 51:24 51 minutes, 24 seconds just wanted to understand uh uh what is typical difference between uh our contribution and gross margins. It will be my one question another question. 51:34 51 minutes, 34 seconds Yeah sure. So the delta between our contribution and gross margin is uh uh look we are vertically integrated into 51:42 51 minutes, 42 seconds manufacturing. So our our gross margins are material margins. Uh so between contribution and our gross margin we 51:50 51 minutes, 50 seconds have the factory cost uh the payment gateway cost logistics insurance. So, so 51:57 51 minutes, 57 seconds the delta is roughly the direct costs uh which includes production, hallmarking, certification, 52:04 52 minutes, 4 seconds payment gateway and insurance and logistics. 52:10 52 minutes, 10 seconds Right. Right. And you did mention uh in some of your answers that our mature stores or at least our older stores are doing about 23 to 24% operating margins. 52:22 52 minutes, 22 seconds So does this number include the corporate overheads or the branding expenses for the company or is this a standalone store number 23 to 24% operating margins? 52:32 52 minutes, 32 seconds That's store store level margins. 52:36 52 minutes, 36 seconds Got it. And if can you just help me with the store economics as well? inventory per store, uh, KEX per store, uh, what 52:43 52 minutes, 43 seconds kind of numbers do we do there and, uh, how does it, how does a store look like in terms of year one revenue, year two 52:51 52 minutes, 51 seconds revenue or year three revenue and also wanted to understand the the the model on the franchising side. What kind of minimum guarantees or what kind of copex 53:00 53 minutes guarantees do we have to give them? And if you can just walk through that Sure, I'll take the last one first on 53:07 53 minutes, 7 seconds the franchising model. Look, this was a model that we had in 201920 when we started uh moving from pure digital to 53:16 53 minutes, 16 seconds Omni. Um and uh that was the capital that was available to us. Uh and and that worked as me financing. So we've 53:23 53 minutes, 23 seconds stopped doing franchises uh largely and uh we are exiting those contracts. We typically had a 12 to 15% 53:32 53 minutes, 32 seconds kind of minimum guarantee and revenue share on the store economics. uh a I would actually encourage you uh in the 53:40 53 minutes, 40 seconds interest of time to actually look at the RHP. Uh we have a store economic model uh detailed out in the RP for the older 53:48 53 minutes, 48 seconds cohorts. Um and uh maybe we can we can I mean it'll require a detailed answer. Uh so just in the interest of time maybe 53:57 53 minutes, 57 seconds you can have a look at the RHP and then you can reach out to us and uh we can take that up. 54:02 54 minutes, 2 seconds Sure. Sure. Thank you. I think we'll have a call soon. Thank you. Thank you so much. Thank you. 54:09 54 minutes, 9 seconds The next question comes from the line of Kalia Bank with IFL Capital. Please go ahead. 54:17 54 minutes, 17 seconds Uh hi uh Rome. Uh this is Py here from uh I just wanted to understand on the 54:25 54 minutes, 25 seconds inventory of 1750 cr uh would you be able to give me an idea how much of it is actually store inventory? 54:36 54 minutes, 36 seconds Uh just just one second. 54:56 54 minutes, 56 seconds It's about 70% uh close to 70% per 55:02 55 minutes, 2 seconds 70%. So that means that uh it's around 4.2 4.3 cr per store on an average. Uh 55:12 55 minutes, 12 seconds my question was that does this number vary widely between stores? If the average is 4.2 does it vary widely or it 55:20 55 minutes, 20 seconds would be in a very narrow band between uh different stores? 55:25 55 minutes, 25 seconds It it does uh but to bring bring down the averages uh you know so it will so so the first part of the answer is yes 55:34 55 minutes, 34 seconds it varies uh it's a function of vintage performance uh you know some stores uh have higher 55:42 55 minutes, 42 seconds productivity and you back the winners you put more merchandise it would vary but but I think at a broader level these 55:50 55 minutes, 50 seconds averages are reasonably representative of where we So I I would say these are not huge averages. These are reasonable averages. 56:00 56 minutes Okay. Because uh my question was if this number goes up uh as the store matures 56:06 56 minutes, 6 seconds and as it gets more sales then uh do we see the average inventory days more or less stubborn at this level? That is 56:15 56 minutes, 15 seconds what I wanted to answer. No, I I think the way to as I as I said py to look at this is you know Jimroy, right? Like 56:24 56 minutes, 24 seconds that's really the fundamental metric. I I I think there is a very classical way of looking at a typically a plain gold 56:33 56 minutes, 33 seconds commodity kind of business which is just an inventory turn business but in our case we are a product and design based 56:40 56 minutes, 40 seconds business then as a result it's just not inventory turn it's also at what margin we are turning that inventory because 56:48 56 minutes, 48 seconds fundamentally obviously we have to generate a strong ROC right which is which is what our older cohorts are demonstrating 56:55 56 minutes, 55 seconds so I would urge to look at Jimroys uh and because that's the metric that he optimized. So inventory turn will give 57:03 57 minutes, 3 seconds you half truth uh margins will give you half truth. So the combination is is where the so Jimroy at a company level 57:12 57 minutes, 12 seconds at a company level Jimroy will uh go up or do you think I mean I mean what will drive the Jimroy at the company level 57:21 57 minutes, 21 seconds it's just the overly at the company level the Jimroy will be driven driven by store vintage uh and 57:30 57 minutes, 30 seconds maturity so you have a fundamental Jimroy which is visible in let's say an FI9 1920 cohort 57:38 57 minutes, 38 seconds uh and their productivity uh unit economics are quite stable still improving uh so as the broader portfolio 57:47 57 minutes, 47 seconds gets to maturity so if my entire portfolio is at 10 10 12 cr at a portfolio level productivity you will 57:55 57 minutes, 55 seconds see the uh you will see the Jimro and ROC that you see at the store at a corporate company level so I think 58:02 58 minutes, 2 seconds that's that's the way to think about Got it. And in terms of store expansion, 58:08 58 minutes, 8 seconds when you put new stores now, are you rethinking the uh size or will you continue with this 181,900 average? 58:18 58 minutes, 18 seconds I think at the moment we are we are good. Okay. Okay. That's all from my side. 58:26 58 minutes, 26 seconds Thank you and all the best. 58:30 58 minutes, 30 seconds Thank you ladies and gentlemen. That was the last question for today's conference call. I now hand the conference over to 58:38 58 minutes, 38 seconds the management for their closing comments. 58:43 58 minutes, 43 seconds Thank you everyone. Uh thank you for taking time to uh join our first uh earnings call. Uh the eny team uh and 58:51 58 minutes, 51 seconds the blueest team are available. If your questions have not been uh taken up uh in the queue uh due to posity of time, 58:59 58 minutes, 59 seconds please feel free to reach out to us uh and we'll be happy to address them. Thank you and good evening. 59:07 59 minutes, 7 seconds Thank you on behalf of Bluestone Jewelry Lifestyle Limited. That concludes this conference. Thank you for joining us and we may now disconnect your rights.