Bluestone Jewellery and Lifestyle Ltd — Q4 FY26

Bluestone Jewellery and Lifestyle Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=qd8x0soDGjM Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Bluestone Jewelry and Lifestyle Limited Q4 FY26 conference call hosted by EY. 0:12 12 seconds As a reminder, all participant lines will win the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:21 21 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:30 30 seconds I now hand the conference over to Miss Ria Dharya from EY investor relations. Thank you and over to you Miss Ria. 0:38 38 seconds Thank you. Good morning to all the participants on the call. Welcome to the Q4 and FI26 earnings call of Bluestone 0:45 45 seconds Jewelry and Lifestyle Limited. Before we proceed with the call, let me remind you that the discussion may contain forward-looking statements that may 0:53 53 seconds involve known and unknown risks, uncertainties, and other factors. It must be viewed in conjunction with our business risks that could cause future 1:02 1 minute, 2 seconds results, performance or achievement to differ significantly from what is expressed or implied in such statements. 1:09 1 minute, 9 seconds Please note that we have mailed 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'll be happy over happy to send the same 1:18 1 minute, 18 seconds over to you to take us through the results and answer your questions. Today we have the management of Bluestone represented by Mr. Gorav Singh Kushwaha founder and chief executive officer, Mr. 1:29 1 minute, 29 seconds Vipin Sharma, chief merchandising officer and Mr. Rummed Dog, chief financial officer. We will start the call with a brief overview of the 1:37 1 minute, 37 seconds quarter gone past and then conduct the Q&A session. With that said, I will hand call to Gorav. Over to you, Gor. 1:45 1 minute, 45 seconds Thank you, Ria. Good morning, everyone, and thank you for joining us at Bluestones quarter 4 and FI26 earnings 1:52 1 minute, 52 seconds call. FI26 marks a milestone year for us as our first full financial year as a listed company and delivering four uh quarters of earnings post listing. 2:03 2 minutes, 3 seconds During the year we demonstrated strong growth momentum, deepening distribution penetration, significant improvement in cohort productivity and strong operating 2:11 2 minutes, 11 seconds leverage. This operating performance sets up nicely going into next year and beyond. We are in a unique position to fill the large uh consumer experience 2:19 2 minutes, 19 seconds and product market gap with our omni channel experience, pan India distribution and design product approach across categories. 2:28 2 minutes, 28 seconds We enter FI27 with robust exit growth as demonstrated in Q4 with a clear focus on execution driving deeper wallet share among existing customers while continuing to expand our customer base. 2:39 2 minutes, 39 seconds Let me briefly touch upon the demand environment, key retail parameters and financial performance. Also, it is imperative as we execute towards such a 2:46 2 minutes, 46 seconds large opportunity that you get to hear and interact on strategic aspects with various leaders at Bluestone. Today we have Vippin our chief merchandising 2:53 2 minutes, 53 seconds officer on the call who can take you through the more strategic aspects around various parameters and how we think about execute uh executing across 3:00 3 minutes these vectors. Coming to demand consumer demand trend remain resilient in Q4 with consumers continuing to spend as at 3:08 3 minutes, 8 seconds their preferred price points in the categories of choices. In our view, quality merchandise assortment is key across demand uh vectors, categories and 3:17 3 minutes, 17 seconds price points and remains a critical execution priority. 3:22 3 minutes, 22 seconds Same store sale growth of 34% this quarter demon uh demonstrates demand environment is resilient growth was broad-based with homogeneous SSG growth 3:29 3 minutes, 29 seconds trends across all three months of the quarter. 3:33 3 minutes, 33 seconds A key driver to our performance continues to be our omi channel model. 3:36 3 minutes, 36 seconds Seamless integrate seamlessly integrating digital and physical retail. 3:40 3 minutes, 40 seconds As of March 26, uh we operated 340 stores across 135 134 cities adding 17 stores during the quarter and 64 65 3:49 3 minutes, 49 seconds stores for the year significantly strengthening our national footprint to give more color on long-term impact of omni channel at a city level. Growth in 3:57 3 minutes, 57 seconds Rachi and Lucknau demonstrate uh ability to drive coverage and density with strong productivity beyond metros. This reinforces our conviction that the 4:05 4 minutes, 5 seconds product market opportunity goes beyond metros and it's large and underpenetrated. 4:10 4 minutes, 10 seconds Repeat customers continue to contribute meaningfully reflecting rising brand loyalty and wallet share. Our rapid realign uh realignment of entry-level 4:19 4 minutes, 19 seconds offerings leveraging our vertically integrated model enabled us to restore price accessibility without compromising design or experience. The benefit of 4:27 4 minutes, 27 seconds this recal recalibration are clearly visible in Q4 and are expected to continue through FI27. 4:35 4 minutes, 35 seconds I'll now briefly walk you through a financial performance for uh Q4 and FI26. I'll keep this concise as detailed disclosures are already available in the 4:43 4 minutes, 43 seconds stock exchanges and I hope that you had a chance to go through this for the quarter standalone revenue grew 49.1% yearonear and we delivered revenues of 4:52 4 minutes, 52 seconds 2441 cr for the full year as highlighted earlier our revenues are recorded on retail sales cases including franchisee 4:59 4 minutes, 59 seconds stores providing a clean and transparent view of underlying consumer demand our Q4 and FI26 our pre-industa performance 5:07 5 minutes, 7 seconds demonstrates embedded operating leverage in the system and and we continue to set a fixed cost base. The room for growth remains large. Balance sheet remains 5:15 5 minutes, 15 seconds strong with uh with solid capitalization levels and sets up well to execute against the opportunity. 5:21 5 minutes, 21 seconds With this, I would like to hand over the call to whip. 5:25 5 minutes, 25 seconds Thank you. Thank you, Gorov. And uh good morning everyone. It's it's my pleasure to be uh sharing my opening remarks on 5:33 5 minutes, 33 seconds this uh earnings call today for Bluetorm. 5:37 5 minutes, 37 seconds uh right from the beginning I think our focus has been very clearly on building a jewelry brand that is uh led by design 5:45 5 minutes, 45 seconds and our intent has always been in in terms of trying to reimagine jewelry that plays a role in the life of 5:52 5 minutes, 52 seconds consumers particularly the modern Indian consumer. 5:56 5 minutes, 56 seconds Uh if you look at uh our endeavor has been always centered on moving jewelry from lockers to the wardrobe playing a 6:06 6 minutes, 6 seconds playing a role in the life of consumers and this kind of focus on lifestyle jewelry that is designed to play a role 6:13 6 minutes, 13 seconds in terms of expressive modern consumers that we have in India today along with the digital first experience and 6:21 6 minutes, 21 seconds consumer first approach lays the foundation on on which we have been building blue stone right from the beginning. 6:29 6 minutes, 29 seconds If I look at more recent I think last one year as we all know there has been an unprecedented rise in the gold prices. 6:37 6 minutes, 37 seconds This rise in gold prices triggered a dislocation in terms of overall merchandise that we have we had on 6:46 6 minutes, 46 seconds certain price points and in certain categories and that became our focus in terms of immediate actions that needed 6:52 6 minutes, 52 seconds to be taken to plug this gap caused by a uh a significant rise in terms of gold 6:59 6 minutes, 59 seconds prices. And I think at the same time it was an also an opportunity for us to put a real test on our approach in terms of 7:07 7 minutes, 7 seconds vertical integrations the foundation of a manufacturing and design approach in terms of how we develop our new products and offerings. Uh this with this focus I 7:16 7 minutes, 16 seconds think we were able to respond with this vertical integrated model in a very responsive manner. it at a at a very 7:22 7 minutes, 22 seconds fast pace and I think some of that effect we saw in terms of the performance that we see coming back to 7:31 7 minutes, 31 seconds our regular levels in terms of the overall growth that we saw in the previous quarter in in I think what is of particular 7:39 7 minutes, 39 seconds significance here is to highlight the fact that our design uh works in close collaboration with manufacturing with a 7:46 7 minutes, 46 seconds focus on innovation and techniques that allow us to sweat the gold more effectively. Included uh along with this 7:54 7 minutes, 54 seconds innovative approach is our is the opportunity to look at alternate materials that the modern India consumers seem very open to not just as 8:03 8 minutes, 3 seconds a as a means to achieve certain targeted price points but also as an expression of I think uh their own personalities 8:10 8 minutes, 10 seconds and a sense of style that the modern Indian consumer is very interested in. 8:16 8 minutes, 16 seconds I think at this point it would be relevant for me to highlight one of one of uh the new uh initiatives that we've 8:24 8 minutes, 24 seconds undertaken is the probably industry's uh unique and first kind of its own uh 8:30 8 minutes, 30 seconds experiment as we set up an exclusive store that focused on offering men's and kissed jewelry to our consumers. 8:39 8 minutes, 39 seconds I think uh uh it is very clear I think it is uh well recognized the association that jewelry in general has with uh with 8:47 8 minutes, 47 seconds women and the kind of designs that are created but if we see a modern man in the Indian context who wants to be very 8:55 8 minutes, 55 seconds expressive and in terms of expression of the style I think it's our endeavor to say how do we give more focus to the kind of exciting products and offerings 9:03 9 minutes, 3 seconds that we have and the men's and kids stores that we have set up is is a great example how we are looking at extending 9:11 9 minutes, 11 seconds our offerings not just in terms of the depth of product portfolio but also in terms of the width in different offerings and with focus in terms of 9:19 9 minutes, 19 seconds what can engage the consumers in a very strong fashion. 9:24 9 minutes, 24 seconds The format allows a much sharper much uh much more relevant kind of discoveryled experience for a consumer in a store 9:31 9 minutes, 31 seconds that is predominantly focused on what they are interested in in terms of specific product categories. 9:39 9 minutes, 39 seconds Broadly in terms of demand trends I think gorov touched upon those points but if you look at consumer I think fundamentally consumer's uh traction 9:48 9 minutes, 48 seconds with our overall offering continues to stay strong and our focus will continue to be on looking at making our portfolio 9:57 9 minutes, 57 seconds uh stronger and more and more designled as we move forward. 10:03 10 minutes, 3 seconds We continue to see this structural gap that exists in terms of what the consumer expects and the what what broadly the market delivers at scale. I 10:11 10 minutes, 11 seconds think blue stone comes in steps in with its own point of view with a approach that is omni channel pan India distribution at scale and design first 10:19 10 minutes, 19 seconds approach across categories making us a very strong and unique player in terms of a modern consumer's lifestyle 10:27 10 minutes, 27 seconds with these widening across price points and we are expanding into underserved demographics while maintaining strong economic discipline this positions blue 10:36 10 minutes, 36 seconds stone to support network expansion improve repeat engagement and time sustainable compounding growth over 10:43 10 minutes, 43 seconds time. With that, may I request that we can begin our Q&A session. Thank you. 10:51 10 minutes, 51 seconds Thank you very much. We will now begin the question and answer session. 10:57 10 minutes, 57 seconds Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove 11:03 11 minutes, 3 seconds yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 11:11 11 minutes, 11 seconds question. Please note in order to ensure that the management will be able to address questions from all the participants in the conference, kindly 11:20 11 minutes, 20 seconds limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. 11:26 11 minutes, 26 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 11:45 11 minutes, 45 seconds The first question is from the line of Akil Gulcha from Hornbill Capital. Please go ahead. 11:53 11 minutes, 53 seconds Oh, hi Goro and congratulations on a great set of results. Uh can you just quickly share uh how many of the current stores are franchisee stores? 12:05 12 minutes, 5 seconds So out of the total portfolio of 340 stores about 67 are franchisee stores 12:12 12 minutes, 12 seconds and what is our plan going ahead? Are we going to run them down in the next few years when the contract expires or are we planning to uh close them up before the contract expires? 12:24 12 minutes, 24 seconds So uh see principally uh I mean the approach that we had taken when we started doing these franchisee stores the idea was to uh you know use 12:32 12 minutes, 32 seconds franchises as more a capital access or a capital structure tool. Uh now given uh given where we are in terms of size 12:40 12 minutes, 40 seconds scale balance sheet capitalization uh obviously that kind of structure from a cost of capital perspective doesn't make sense but from a relationship 12:48 12 minutes, 48 seconds perspective we are not accelerating their exit. uh they have a five-year contract term. Uh we are honoring that 12:55 12 minutes, 55 seconds entire 5-year contract term. Uh from a trendline perspective, uh I think 27 and 13:02 13 minutes, 2 seconds 28 should see a significant drop uh in terms of uh this classical franchisee model that we have had historically. Uh 13:10 13 minutes, 10 seconds so 27 and 28 is going to see a substantial drop in terms of the uh franchisee owned company operated stores. 13:19 13 minutes, 19 seconds Got it. Got it. Thank you. and uh cost has seen almost an 80% rise over FY25. 13:26 13 minutes, 26 seconds So uh any thoughts on the trajectory of that going ahead? 13:30 13 minutes, 30 seconds Uh sorry we the question was not very clear. Uh can you please repeat the question? 13:36 13 minutes, 36 seconds Yeah sorry so our ESOP cost has seen almost an 80% rise uh from FI25. So any thoughts on the trajectory of that number going ahead? 13:46 13 minutes, 46 seconds Sure. Uh so the trajectory of ESO cost on the P&L is something that we have shared in our uh management commentary 13:54 13 minutes, 54 seconds also but let me uh let me take this opportunity opportunity to elaborate a little more. 14:00 14 minutes So I think ESOP uh as a tool uh so ESOP is a tool to kind of make sure that the ownership is uh fairly 14:07 14 minutes, 7 seconds well distributed uh especially in the senior leadership of the company and that uh people at the top uh they are actually aligned with the long-term 14:16 14 minutes, 16 seconds objectives of the shareholders also so by making them them by making them a shareholder as well. So I think u one of 14:23 14 minutes, 23 seconds the thoughts that we had uh before going IPO was to strengthen our management team. So uh Sudep, Gomemed, Vipin, Mikuel, Hashid. 14:33 14 minutes, 33 seconds So essentially um this is these are the these are the five top management folks uh uh beyond myself. Uh so essentially 14:41 14 minutes, 41 seconds uh two years before that we believe that uh as we go IPO we should we should make sure that the for the for next five six 14:48 14 minutes, 48 seconds seven years everyone is aligned. Uh so if you look at our ESOP allocations historically also uh so at an over so 14:56 14 minutes, 56 seconds okay so first at an overall level almost 90% of our ESOs are with the management with top six people in the company. So ESOP is not something that we use as a 15:04 15 minutes, 4 seconds broadb broad-based compensation tool across the across let's say uh various functions etc. But we use it uh it as a 15:13 15 minutes, 13 seconds very specific and a very potent tool to make sure that the entire management is aligned with the shareholders. 15:20 15 minutes, 20 seconds uh and and hence it's more of a management stock option plan uh less of an ESOP uh employee stock option plan 15:28 15 minutes, 28 seconds and hence it's not uh it's not something that should be seen very linearly uh in the sense that it's not so as our employee costs increase it's not that 15:37 15 minutes, 37 seconds every employee in the company has ESOs and so on so forth it's more of to keep the management aligned and uh and hence I'm sharing another number with you 15:44 15 minutes, 44 seconds which is that 90% of this uh these ESOPs are with the top six people in the Secondly, a lot of this ESOP were 15:53 15 minutes, 53 seconds actually allocated around 50 60% of these were allocated few months prior to sorry couple of years prior to doing IPO 16:00 16 minutes to make sure that that align alignment is there for next six seven years at least as we prove ourselves uh in the public markets also. Now what happens is 16:08 16 minutes, 8 seconds while the vesting of many of these options is over 6 years 7 years and so on uh the way accounting works is that we need to frontload all the charge and 16:17 16 minutes, 17 seconds hence when we see almost 94 cr uh almost sorry 93 cr of that charge came in the first year itself uh but then it's 16:25 16 minutes, 25 seconds dropping down to 58 cr and then 28 crore and then see uh then uh and then bottoming out and essentially we don't 16:32 16 minutes, 32 seconds see uh in f going forward also we don't see ourselves deviating much from this plan uh beyond this we have around 1.7% 16:41 16 minutes, 41 seconds of unallocated esop pool on a fully diluted basis and we don't foresee ourselves breaching that in next 3 to 16:49 16 minutes, 49 seconds four years uh got it got it uh that was very detailed and very helpful so uh thank you so much and best of luck going ahead 16:58 16 minutes, 58 seconds thank you thank you the next question is from the line of Adital from MSA Capital partners, please go ahead. 17:09 17 minutes, 9 seconds Hello, I'm audible. Yes, you are. 17:13 17 minutes, 13 seconds Hi, thank you so much for the opportunity. Uh, congratulations on a great set of results. Uh, I just have a 17:20 17 minutes, 20 seconds couple of questions. So, quickly wanted to understand on your thought process of inventory turns because if I see from 17:28 17 minutes, 28 seconds FI25 to FI26, our inventory turns have fallen from 1.3x to close to 1.13. 17:37 17 minutes, 37 seconds And uh also this is this is keeping uh being cognizant of the fact that we 17:44 17 minutes, 44 seconds had opened 80D stores in uh FI25 where we open only 65 stores and uh 17:51 17 minutes, 51 seconds historically also uh used to comment on the concourse that we have a 7030 split between uh store level inventory versus 18:00 18 minutes corporate. So out of the 2652 crores of inventory that we closed in FI26, what could be the split? 18:11 18 minutes, 11 seconds So maybe I'll just take the split and then Gorav and Vipin can comment on the uh uh on the inventory bit. Uh the split is not significantly different from what 18:20 18 minutes, 20 seconds we had uh communicated earlier. Uh so it's it's in uh it's pretty much in the same territory, 18:27 18 minutes, 27 seconds right? I I think um if we look at you know in terms of while quarterly uh 18:35 18 minutes, 35 seconds variances happen based on how consumer behavior is for that specific quarter I think more fundamentally the question is 18:42 18 minutes, 42 seconds really touching upon you know a few uh important aspects if you look at in terms of what's happening at a consumer level in terms of its life cycle and how 18:51 18 minutes, 51 seconds we looking at uh setting the cost base and uh capital productivity I think uh Overall we are in a high growth uh uh 19:00 19 minutes phase setting up new stores. We are also vertically integrated where we have inventory uh you know from one end to 19:07 19 minutes, 7 seconds the other uh with uh in terms of franchisee participation probably uh not very comparable and our overall mix and 19:16 19 minutes, 16 seconds margins are also uh significantly different from the rest of the industry. 19:20 19 minutes, 20 seconds I think if you take all of these factors into account um the we would probably understand that 19:26 19 minutes, 26 seconds I understand the GM part historical the question is more about if you look at 19:32 19 minutes, 32 seconds the trajectory we closed inventory terms of 1.34 when we added such a huge amount 19:40 19 minutes, 40 seconds of net new stores of 83 stores in FI26 we've added 65 stores yet our inventory turners uh is coming down. 19:52 19 minutes, 52 seconds If you can connect this to how the mature s how many mature s we have and how they are performing so that we we will get an understanding to connect to 20:00 20 minutes connect the blue stone cockpit to blue mature so that we will where 20:09 20 minutes, 9 seconds sure so I think this year one of the most uh one of the kind of one-offs that happened in this 20:16 20 minutes, 16 seconds financial year was the sharp increase in gold which it which has actually led to the in the a very sharp increase in the 20:24 20 minutes, 24 seconds value of closing inventory. Okay. So this is a one-off and this is the case with almost all the players in the industry where the closing inventory is 20:31 20 minutes, 31 seconds uh is kind of disproportionately high higher uh then uh the uh the sale numbers for this particular financial year. So I think that is one thing that 20:39 20 minutes, 39 seconds is impacted otherwise uh if I if I were to normalize for that I don't think the inventory turns should have changed that much especially because we are 20:47 20 minutes, 47 seconds calculating that on the closing inventory uh as gold normalizes and I think it has normalized over last two to three year uh two to three months we 20:56 20 minutes, 56 seconds have not seen too much of an activity or it has been rangebound I think we are seeing uh the inventory efficiency coming back and I think if it remains 21:03 21 minutes, 3 seconds stable over next one year uh we the inventory efficiency should be much better than what it is right now especially when you look at at the closing inventory level. 21:12 21 minutes, 12 seconds Can you can you just can you just uh talk a bit about how the major stores one out of 340 stores how many would be 21:22 21 minutes, 22 seconds mature stores and how they are performing because uh last quarter you had come out with in your uh presentation where you said that they 21:30 21 minutes, 30 seconds are in an on a run rate of the the FI1920 cohort is in a run rate of 14.4 four odd goes and uh how 21:39 21 minutes, 39 seconds yeah yeah so uh good question good question so basically uh so you're right I mean a lot of these terms etc when you calculate it they're just calculating at 21:47 21 minutes, 47 seconds the balance sheet level which also carries let's say manufacturing inventory and so on the right and those things actually normalize and kind of taper off over long term so the right 21:56 21 minutes, 56 seconds way to look at it is uh uh how mature stores are performing and as more and more uh stores move towards maturity that the companywide inventory turns 22:04 22 minutes, 4 seconds will also kind of tend to go towards that. So internally we track that obviously and I think mature stores the stores which have seen more than 3 to 22:12 22 minutes, 12 seconds four years of operations there we see these turns to be uh hovering somewhere between 1.7 to 1.9. 22:19 22 minutes, 19 seconds All right and earlier earlier sorry interrupt I'm sorry question 22:28 22 minutes, 28 seconds just one last question squeeze this one last question. Hello. 22:36 22 minutes, 36 seconds Yeah, sure. Go ahead. Go ahead. 22:38 22 minutes, 38 seconds Thank you. Thank you. Yeah. Thank you so much. Uh just quickly commenting before I come back in the quickly commenting on how we are looking at the new toll 22:46 22 minutes, 46 seconds edition in FI27 and FI28. 22:52 22 minutes, 52 seconds So I think uh generally what we uh what we have maintained or what we're trying to maintain uh uh for last one to two 22:59 22 minutes, 59 seconds years is uh adding close to 20% to our distribution uh on a annual basis. 23:06 23 minutes, 6 seconds U we believe that that's kind of a right mix of uh right mix of new and old stores giving a good blended productivity. 23:15 23 minutes, 15 seconds Understood. So 20% on 340 or 20% on 340 minus 67 which is the franchise 340. All right. 23:22 23 minutes, 22 seconds 340 we don't yeah we don't we don't see franchise store separately because this more of a capital uh structure and not an operating structure. So at an overall store level on 340. 23:33 23 minutes, 33 seconds All right. Thank you so much Gorov um and I'll come back in the queue. One more question. Thank you so much. 23:40 23 minutes, 40 seconds Thank you. 23:43 23 minutes, 43 seconds Thank you. Before we take the next question, a reminder to all the participants, if you wish to ask a question, please press star N1. 23:52 23 minutes, 52 seconds The next question is from the line of Vikram Devanatan from Prodigy Investment and Management. Please go ahead. 24:00 24 minutes Hi, thank you for taking my question. I just have one question. In the RHP in 24:08 24 minutes, 8 seconds page 249 it was mentioned that the company plans to add 290 new stores over 24:15 24 minutes, 15 seconds FI26 and FI27 but in FI26 you added only 65 stores and your guidance for 20% store growth. So I 24:24 24 minutes, 24 seconds just wanted some clarification on why the store expansion plan has been revised down. 24:33 24 minutes, 33 seconds So uh I think just to contextualize uh we should look at how the external operating environment has been specifically from a gold price 24:40 24 minutes, 40 seconds perspective. Uh and uh I think a lot of the decisions that we take are in context of the broader operating environment. Um the gold price has seen 24:49 24 minutes, 49 seconds a significant increase. uh we need to obviously make sure that we have enough conviction from a uh demand behavior 24:55 24 minutes, 55 seconds perspective um uh as to how the demand is going to react to you know such a sharp increase in gold price. If you see 25:03 25 minutes, 3 seconds from a trajectory perspective uh I think Q4 we've uh we've added almost 17 17 stores in the quarter which is a 25:10 25 minutes, 10 seconds significant uh significant pickup and uh I think that's a tactical call that we at the management level take uh looking 25:17 25 minutes, 17 seconds at how the external environment is what the demand trends are uh etc. 25:24 25 minutes, 24 seconds Okay, thank you. Uh just one more question. So this uh 20% store growth how many years do you think we can 25:31 25 minutes, 31 seconds maintain this kind of store growth or another way to ask this question over the next four five years do you have any 25:38 25 minutes, 38 seconds target of total store base which you would like to have during the demand can support. 25:46 25 minutes, 46 seconds So I uh let me let me sort of contextualize this uh question in terms of you know the market opportunity set 25:54 25 minutes, 54 seconds you know as you I mean as you as you all know there are there are very few pan India brands in a such a large category which is close to 8090 billion dollars 26:03 26 minutes, 3 seconds uh growing at uh you know very uh very solid pace uh uh from a uh growth perspective. Further there are secular 26:12 26 minutes, 12 seconds tailwinds driven by use of internet, consumer behavior, need for uh for products for uh you know more from a 26:20 26 minutes, 20 seconds consumer perspective rather than jewelry for for the locker. 26:24 26 minutes, 24 seconds If you look at players occupying this whole design uh omni channel first kind of space are are fairly limited and that 26:32 26 minutes, 32 seconds opens up a substantial headroom for us to grow and drive market share. 26:38 26 minutes, 38 seconds If you look at large panindia players that drive similar pricing structures that we have are significantly better penetrated from a city standpoint. 26:49 26 minutes, 49 seconds Further, our format is different from the traditional big box retail and this format allows us to better uh to deliver 26:56 26 minutes, 56 seconds better density and higher productivity and thus I think if you look at it from a city presence perspective from a 27:05 27 minutes, 5 seconds density uh that we can drive at a city level I think the headroom for growth is is massive. uh I think we obviously 27:14 27 minutes, 14 seconds calibrate in terms of you know how fast we want to grow distribution um how uh how much revenue productivity 27:22 27 minutes, 22 seconds uh and cohort vintage we want to have at a at a blended level so I think those are those are sort of tactical puts and 27:30 27 minutes, 30 seconds takes uh that we take but I think as as Gorov mentioned I think a 20% taker on distribution is is a fairly 27:38 27 minutes, 38 seconds fairly uh good number which which we will continue to deliver over several years. 27:46 27 minutes, 46 seconds Okay. And uh you expect all the stores to eventually converge to a 14 to 15 cr 27:54 27 minutes, 54 seconds kind of revenue per store at peak utilization right at the minimum. 28:01 28 minutes, 1 second Okay. Thank you. That is all. Thank you. 28:06 28 minutes, 6 seconds Thank you. The next question is from the line of Harish Adwani from Access Capital. Please go ahead. 28:14 28 minutes, 14 seconds Hi, thank you for the opportunity and congrats on a great set of results. So in your opening commentary, you said that the monthly exit rate has been 28:22 28 minutes, 22 seconds pretty strong going into Q1. So can you uh tell us what is that uh March uh exit uh number looking like? 28:32 28 minutes, 32 seconds Uh so no specific commentary on March exit but uh so I so as we continue to 28:40 28 minutes, 40 seconds kind of work on our categories and our merchandise specifically we see uh we see the results getting better and 28:47 28 minutes, 47 seconds better. Uh so the momentum uh the momentum is only strengthened I think with with every passing day it's only strengthening. 28:56 28 minutes, 56 seconds Okay. 28:57 28 minutes, 57 seconds There's I can't comment on the specific number but there is there is still there's still some juice left there. 29:04 29 minutes, 4 seconds Got it. Uh also uh similarly you said that we've redesigned the entry-level portfolio now. So can you kind of 29:11 29 minutes, 11 seconds quantify in terms of what this entry- level uh portfolio would be contributing to our revenues uh say for Q4 or say for 29:20 29 minutes, 20 seconds the full year whichever number you could share uh that breakup will not be able to provide 29:28 29 minutes, 28 seconds okay for for competitive reasons we wouldn't want to okay uh similarly see now this time 29:36 29 minutes, 36 seconds around we've had a lot of gold sale and our studied share has come down to about 55. So given that now the gold price 29:45 29 minutes, 45 seconds scenario has more or less stabilized as you said uh where do we see this number moving in the next say 6 months? Do we 29:52 29 minutes, 52 seconds envision it going back towards the 60 65 band or possibly even higher now that the customer has learned to deal with these kind of gold prices. 30:01 30 minutes, 1 second So I think there is last one year there has been uh quite an upheaval in terms of you know the way gold prices moved. 30:08 30 minutes, 8 seconds So obviously consumer tends to anticipate and have one's own kind of mindset around the buying behavior. 30:16 30 minutes, 16 seconds Fundamentally uh from our point of view I feel that uh for us it's like looking at we built uh you know overall network 30:25 30 minutes, 25 seconds which has its own uh cost base and kind of operating leverage. So for us it's an opportunity to dip into uh a greater 30:34 30 minutes, 34 seconds share of wallet from a consumer point of view kind of uh looking at making sort of expanding our portfolio without 30:41 30 minutes, 41 seconds diluting our focus on uh designled product portfolio that's playing a meaningful role in the lives of modern consumer and uh I think three core 30:51 30 minutes, 51 seconds pillars there are what's happening to consumer life cycle if we want to look at over next two to three quarters in terms of how uh what we are expecting I 30:59 30 minutes, 59 seconds think This is our thinking on approaching this from a product portfolio and product development point of view. Fundamentally nothing nothing 31:07 31 minutes, 7 seconds has shifted on that aspect and focus is clearly on looking at uh you know taking the brand forward and setting the cost 31:16 31 minutes, 16 seconds base for capital productivity uh with an eye on greater share of the wallet as an overall. 31:24 31 minutes, 24 seconds Okay. And uh there would nothing there would be no element of any seasonality out here that maybe say the customer was 31:31 31 minutes, 31 seconds preferring more of gold versus uh Harish please rejoind for more questions. 31:37 31 minutes, 37 seconds Sure. Thank you. Yeah maybe we can just answer that and and then Harish uh you can come back in the queue. uh I I see 31:45 31 minutes, 45 seconds from a seasonality perspective uh I mean the seasonality is largely there in Q3 right like which is which is there 31:52 31 minutes, 52 seconds pretty much across the board so as I think whippin was kind of addressing it it's not uh you should not look at it 32:01 32 minutes, 1 second just from a quartertoquarter perspective I think it's more fundamental in terms of you know how we contextually think about it across you know uh consumer 32:10 32 minutes, 10 seconds life cycle uh which is making sure consumer product because consumer product demand is not static. Uh they 32:18 32 minutes, 18 seconds have different use cases, different material choices etc. So I think that's the way to contextually think about it. 32:25 32 minutes, 25 seconds I think quarter to quarter you may have some variances because of gold prices etc but but I won't read too much into that. 32:33 32 minutes, 33 seconds Okay. Thank you and all the best. I'll rejoin with you. 32:39 32 minutes, 39 seconds Thank you. The next question is from the line of calls to Pavasar from ICICI direct. Please go ahead. 32:47 32 minutes, 47 seconds Yeah. Uh thanks for giving me the opportunity. Uh congrats for a great set of numbers. Uh sir, I have couple of question. First question is on the 32:56 32 minutes, 56 seconds margins. So uh uh you know I just thinking for the inventory inventory gains uh the on sequential basis margins 33:04 33 minutes, 4 seconds have seen a uh a dip. uh is it mainly because of the mix change in mix because your studed mix this quarter was 55% uh 33:14 33 minutes, 14 seconds last quarter it was much much better and also on y basis as well uh you know the studed mix was down so if you can help 33:21 33 minutes, 21 seconds us understand that sure so one is look uh fundamentally you uh you should look at how the business 33:30 33 minutes, 30 seconds uh and operating leverage kind of functions right so first is the best comparisons are IO because seasonality 33:39 33 minutes, 39 seconds uh in revenues drives a significant delta on a operating leverage and ours is a fixed cost kind of business model. 33:46 33 minutes, 46 seconds Uh thus YI is the best comparison and if you look at YI there has been a substantial improvement in the margin uh 33:53 33 minutes, 53 seconds at the pre-indust level. Uh second is uh this improvement is despite the shift in 34:01 34 minutes, 1 second mix uh which kind of demonstrates that as the growth accelerates as we build more presence across categories uh and 34:10 34 minutes, 10 seconds drives more wallet share with our existing customers there is there is still a fair amount of operating leverage which is ahead of us uh in the 34:18 34 minutes, 18 seconds business and we'll continue to mine that uh thus I think sequential is not not the right way to look uh look at the business at 34:26 34 minutes, 26 seconds uh because of a fixed cost nature and the seasonality. So why y is the best comparison. 34:32 34 minutes, 32 seconds Understood. Uh my second question is on s sales growth is quarter 34% growth again you know uh if you compare it on 34:41 34 minutes, 41 seconds quarter uh you know some of the other quarters compared to that it is quite strong. So what led to the strong SG or 34:50 34 minutes, 50 seconds if you can dissect it in terms of how was the uh growth or the transaction growth and you know uh whether this has 34:58 34 minutes, 58 seconds any element of even the gold price high uh so just understanding because the trajectory is quite strong and whether 35:05 35 minutes, 5 seconds you know this kind of trajectory would continue. Second question to this is uh you know uh once your stores get mature 35:13 35 minutes, 13 seconds uh like uh you are expecting some of your mature store revenues to reach to around 14 crores uh you know so if large 35:20 35 minutes, 20 seconds crowd of these 340 stores attain certain maturity then your SSG growth level should come to certain level uh maybe 35:29 35 minutes, 29 seconds not 34% but it should uh you know moderate a bit so if you can give us some understanding on Sure. 35:38 35 minutes, 38 seconds Uh so on the variance in SSSG uh I understand that as a public company it's only a fourth quarter. Uh but 35:46 35 minutes, 46 seconds internally we've had data for last 6 years uh since the stores have been in operations. U if you look at FI20 same store sales growth that was close to 35:55 35 minutes, 55 seconds 30%. Okay. Uh year prior to that it was even higher than that right. So so 34% is not something which is very new for 36:02 36 minutes, 2 seconds us. In fact uh anomaly for us was uh Q uh Q3 of last year. So Q2 Q3 of last year and I think uh that was largely because of the sharp rise in gold price. 36:14 36 minutes, 14 seconds Uh in fact if you look at if if you look at the the plot of ho how and when gold rose you will see that Q2 and Q3 of last 36:22 36 minutes, 22 seconds year was when the gold flew sharpest and those were the quarters uh which uh 36:28 36 minutes, 28 seconds where our SSGS had been uh lowest. Uh so the fact that we perform well when the 36:36 36 minutes, 36 seconds gold is stable uh and it fundamentally it's it it kind of it it comes from the 36:43 36 minutes, 43 seconds the use case that we are catering to the products and the customers that we are catering to. They are not investment customers. They are the ones who 36:50 36 minutes, 50 seconds actually want to buy jewelry uh in order to wear it in order to use it. uh and 36:57 36 minutes, 57 seconds hence I would say uh the the the SSC that we see in Q4 is kind of uh it's it's like for us it's getting back to being uh it's getting back to normal. 37:08 37 minutes, 8 seconds Uh in terms of maturity I think there are se so initial few cohorts uh are performing uh well uh in I think past 37:17 37 minutes, 17 seconds quarter we had shown their performance also separately and uh and and those stores continue to grow well. Uh so when 37:25 37 minutes, 25 seconds we look at this SSG of 34% we there's not a skew towards let's say newer stores uh it's fairly well distributed 37:33 37 minutes, 33 seconds between older stores and new stores. So we don't see any of the stores kind of capping out in terms of their potential. 37:38 37 minutes, 38 seconds I think the potential can be much much much bigger than what even our older stores are showing just that internally in our data we don't have uh we we don't 37:47 37 minutes, 47 seconds see uh what is that mature level of stores even so all the codes are going 37:56 37 minutes, 56 seconds thank you next question is from the line of Percy Panti from securities please go ahead 38:05 38 minutes, 5 seconds uh hi two questions from my side Let me put them up up front. Uh so uh one is 38:12 38 minutes, 12 seconds just wanted to understand if you have any kind of mechanism uh to sort of offset the negative impact of the gold 38:21 38 minutes, 21 seconds price inflation on the ROIC. So let me explain. So when the gold price uh goes up uh very sharply, you see a 38:30 38 minutes, 30 seconds restatement of uh the uh hedged part of the inventory uh to the MTM and that 38:37 38 minutes, 37 seconds increases your uh uh inventory in the balance sheet. Uh however the positive impact of the gold price inflation on 38:45 38 minutes, 45 seconds the overall sales growth is not material and therefore you have a situation where the sharp inflation in gold price uh 38:54 38 minutes, 54 seconds increases your balance sheet size much more than it does to increase your P&L and that results in the ROIC getting 39:01 39 minutes, 1 second dampened. just wanted to understand if like this is a structural uh uh part of the business model or is there anything 39:08 39 minutes, 8 seconds you can do to offset uh this impact. So that is question one. Uh question two is with the gold price inflation a lot of 39:16 39 minutes, 16 seconds consumers are going towards the plain gold jewelry and that is putting uh significant pressure on the gross uh 39:24 39 minutes, 24 seconds profit. So while your sales has gone up uh uh almost 50% this quarter the gross 39:31 39 minutes, 31 seconds profit x inventory gain is up only 36% uh uh uh y u so just wanted to know if 39:39 39 minutes, 39 seconds like the pressure in the gross margin is also something which will continue if the mix remains uh where it is currently 39:48 39 minutes, 48 seconds uh or do you have some way to uh offset this gross margin pressure even if the mix is the same or you think that the 39:55 39 minutes, 55 seconds mix itself uh uh will sort of uh change because of some initiatives of your own. 40:00 40 minutes So these are my two questions. I put them up up up front. Thank you. 40:04 40 minutes, 4 seconds Thanks. Thanks Percy. Uh let me let me take the first one on gold price, right? 40:08 40 minutes, 8 seconds Uh so so I think the foundational trigger for that question is the recency bias in terms of the gold price performance, right? Which is uh which is 40:17 40 minutes, 17 seconds sort of been about close to 100% in the last whatever 15 18 months. Uh now uh if 40:25 40 minutes, 25 seconds you believe that that is that is how gold will continue to behave uh over over the longer term uh then I think 40:34 40 minutes, 34 seconds what what you're asking uh uh is is a is a uh is a fair question but but I think if you look at broadly these normalized 40:43 40 minutes, 43 seconds gold price movements over over several years uh uh you can take five 10 year blocks uh then I think obviously all 40:52 40 minutes, 52 seconds this kind of uh you know short-term volatility etc kind of normalizes and thus I think long-term ROIC of the 40:59 40 minutes, 59 seconds business remains uh uh remains pretty strong right and to give you that from a context perspective when when there is 41:08 41 minutes, 8 seconds you know consolidation in gold prices uh over a certain period uh we see behaviorally the consumer demand comes 41:15 41 minutes, 15 seconds back significantly and comes back very strongly right uh which which drives uh other other vectors from a margin 41:23 41 minutes, 23 seconds perspective, operating leverage perspective etc. Right. So, so I think that is that is one. Uh second is I 41:30 41 minutes, 30 seconds think obviously there are multiple levers right if you if if somebody has that view that this keer that the gold has seen continues to be there for next 41:39 41 minutes, 39 seconds next 5 years 10 years uh then obviously there are there are different kind of capital structures that can be deployed right like franchisee own franchisee 41:47 41 minutes, 47 seconds operator is one capital structure uh where you basically then uh move uh uh move that capital to to franchisee 41:57 41 minutes, 57 seconds balance sheet or outsourced capital to the other balance sheets etc. Right. So, but I'm saying that fundamentally you 42:03 42 minutes, 3 seconds have to uh this involves taking a speculative view on how gold price is. 42:10 42 minutes, 10 seconds Uh what we look at is long-term trends and I think we're fairly comfortable from a long-term trend perspective. So, I think that's that's on question one. 42:19 42 minutes, 19 seconds On question two, uh I think it is not the right way to just look at broadly 42:27 42 minutes, 27 seconds from a mix studied mix perspective uh only as you know sort of one operating 42:34 42 minutes, 34 seconds metric. Right? So at a broad level the right way to think about this is across you know three vectors right? One is 42:42 42 minutes, 42 seconds consumer life cycle uh and brand uh uh you know uh and and and sweating the 42:49 42 minutes, 49 seconds cost base and capital productivity right from a consumer product perspective the demand is not static uh as through the life cycle they purchase different 42:56 42 minutes, 56 seconds categories and materials driven by income growth occasions choices the idea from our perspective is to be able to capture that larger wallet share and add 43:05 43 minutes, 5 seconds more consumers into this fold in the context of overall growth across studded and plain you should think of it as 43:13 43 minutes, 13 seconds additive and not substitutive. Uh there is still a fairly large market opportunity across both these product 43:21 43 minutes, 21 seconds categories and the consumer picks up different things at different points in time. Second, from a brand approach perspective, we continue to remain 43:29 43 minutes, 29 seconds product first, right? with an omni channel experience and this will continue to percolate and reflect in our 43:36 43 minutes, 36 seconds premium pricing uh that we offer given our premium design approach in whatever relevant product stack that we pick to 43:45 43 minutes, 45 seconds operate in. Right? So so whether it is a plain gold or a studded our pricing structures are premium and continue to 43:52 43 minutes, 52 seconds remain premium. And lastly, you should see uh more importantly from a fixed costbased perspective, right? And as we 44:00 44 minutes expand our product portfolio and this is additive to the broader productivity, it will just allow us to 44:08 44 minutes, 8 seconds sweat our assets better and drive operating leverage allowing us to expand absolute iida absolute margins at the 44:15 44 minutes, 15 seconds iida level and add capital productivity because margin is only one vector. You have to also see the inventory turns. So 44:22 44 minutes, 22 seconds from an ROC perspective it's not that plain gold is dilutive to ROC and diamond uh uh diamond is significantly 44:30 44 minutes, 30 seconds accreative right uh so at the end of the day your return on capital is driven by how many times you've turned that capital and at what margin and as I had 44:37 44 minutes, 37 seconds mentioned earlier and pricing is is similar and even if you look at last one year uh our margins have been fairly 44:44 44 minutes, 44 seconds stable despite uh the drop or the mix change despite the significant change in 44:51 44 minutes, 51 seconds gold prices uh we have been delivering fairly good margins with continued operating leverage. So with this additive structure it should only 44:59 44 minutes, 59 seconds accelerate growth and accelerate IDA accelerate IDA margin and improve capital productivity. 45:09 45 minutes, 9 seconds Thank you. The next question is from the line of Abhishek Shankar from ICIC direct. Please go ahead. 45:18 45 minutes, 18 seconds Yeah. I um congrats on a good set of results. Uh I just needed three data points. Uh so what was the SSG for full 45:27 45 minutes, 27 seconds year FR26 and subsequently what was the SSG for Q in Q4 FI25? 45:37 45 minutes, 37 seconds See, I I think the best way to look at it on a is on a quarteronquarter basis and I think we've given the data for the last four quarters uh YI on SS uh SSSG 45:46 45 minutes, 46 seconds because we've been significantly expanding the the store count right through the last through last uh FI26 45:53 45 minutes, 53 seconds and even FI25. So I think the best way to measure measure SSG is you know how we are performing on a quarterly basis. 46:03 46 minutes, 3 seconds Okay. And uh uh another question what is the started revenue contribution uh for full year FI26? 46:11 46 minutes, 11 seconds I think last year in FI25 it was around 68%. 46:18 46 minutes, 18 seconds See I I think we can we can come back with that exact number but again as I said uh the exit uh uh it'll be close to 46:25 46 minutes, 25 seconds 60 but at the exit rates u and variances obviously are there on a quarteronquarter basis right so so that 46:33 46 minutes, 33 seconds whole mix shift can depend on how gold prices kind of moved in that quarter how consumer demand was in certain 46:40 46 minutes, 40 seconds categories certain price points uh so I think the right right context that you should kind of look at is what is the broad growth that we are delivering, 46:49 46 minutes, 49 seconds what is the market share uh gain that we are uh we are driving and third is at an aggregate level what is the operating leverage that we are delivering and I 46:57 46 minutes, 57 seconds think if you look at all these three vectors uh we have performed exceptionally well across across FI26 and our exit growth remain very very strong. 47:11 47 minutes, 11 seconds Thank you. The next question is from the line of Rajiv B from Noama. Please go ahead. 47:18 47 minutes, 18 seconds Yeah. Hi uh uh good morning and thanks for the opportunity. So I am on slide uh 28 and this is um the gross profit and 47:28 47 minutes, 28 seconds contribution uh profit gap. Now I I just want to understand this cost is largely fixed in nature. Uh is it and and um 47:37 47 minutes, 37 seconds let's say if we were to get another grow another 50% next year. So then we will see another let's say close to uh 160 47:44 47 minutes, 44 seconds basis point leverage on this line item again. And the second part is uh if you can also talk about how how should we think about the advertisement cost uh 47:52 47 minutes, 52 seconds for future. Thank you. So maybe I'll uh I'll pick the direct cost and Gorov can talk about AM. Uh 48:01 48 minutes, 1 second so the delta uh the delta between gross profit margin and contribution margin is largely direct cost and direct cost is split between the cost of manufacturing. 48:13 48 minutes, 13 seconds Uh because we are vertically integrated there is there is cost of manufacturing um it includes payment gateway, 48:19 48 minutes, 19 seconds shipping, logistics etc. So I think a lot of operating leverage uh from a re uh from a manufacturing productivity 48:27 48 minutes, 27 seconds perspective, capacity utilization perspective came through from between FI25 and FI26. Uh but this is this is 48:35 48 minutes, 35 seconds not really a fixed uh fixed cost uh uh to that extent from where we are right now. uh so there is obviously an element 48:44 48 minutes, 44 seconds of fixed cost on the manufacturing side but with revenue productivity and uh better capacity utilizations I think 48:51 48 minutes, 51 seconds bulk of that is is is kind of reflecting in our performance in the last couple of quarters so so you should not model it 48:59 48 minutes, 59 seconds as a uh as an absolute fixed cost I'll hand it over to go to talk about 49:05 49 minutes, 5 seconds yeah so on our thought is uh so so as we expanding our distribution uh for past 2 to 3 years we believe that 49:14 49 minutes, 14 seconds we should not go overboard on uh brand building uh until the distribution is in place uh so that whenever we decide to 49:21 49 minutes, 21 seconds do that uh we'll get better ROI on that uh in terms of numbers our thought our 49:28 49 minutes, 28 seconds uh our indiv so so what we our plan is to kind of keep it at to not drop it at below 6% uh so I think over last two to 49:37 49 minutes, 37 seconds three years we have come down from 12% to 6% while in absolute terms it has gone grown up marginally but the revenues are uh revenues outpaced it. So 49:45 49 minutes, 45 seconds in percentage terms it has dropped from 12% to 6%. Now we are comfortable at that 6% level and as we move forward we 49:52 49 minutes, 52 seconds will uh we'll increase it in absolute terms while keeping it static in terms of uh in terms of percentage. Now what that will also do is that will actually 50:00 50 minutes open up a lot of uh extra lot of additional marketing budget for us which uh which we had not utilized or which we 50:07 50 minutes, 7 seconds not uh used or uh which which we've not used up in the past. So uh so as we increase our marketing budgets lot of 50:14 50 minutes, 14 seconds this incremental budgets would actually go on uh building the brand on the brand spends etc building long-term uh growth in the business. Uh so so far our uh 50:24 50 minutes, 24 seconds marketing spends have largely been kind of performance marketing salesdriven online only uh very very tactical ones. 50:30 50 minutes, 30 seconds Uh but going forward uh we'll be making significant investments in building uh long-term growth. So uh and and we 50:38 50 minutes, 38 seconds believe that that will accelerate growth even further. Uh thank you. Thanks uh all the best. 50:45 50 minutes, 45 seconds Thank you. 50:48 50 minutes, 48 seconds Thank you. The next question is from the line of Kamanika from Samikshia Capital. Please go ahead. 50:56 50 minutes, 56 seconds Yeah. Hi, thank you for taking my question. So, uh in your Q3 FI26 presentation, you gave us like the 51:03 51 minutes, 3 seconds performance of the 18 schools that were opened in FI 1920 and you also gave us the information around AIDS margins 51:12 51 minutes, 12 seconds which are like 23.8% AIDS. So I just wanted to check this uh 51:19 51 minutes, 19 seconds also includes any inventory gain and if yes then how much? 51:25 51 minutes, 25 seconds It doesn't include any inventory game. U okay so this is excluding any inventory game. Okay. Yeah that's it. 51:38 51 minutes, 38 seconds Thank you. The next question is from the line of Dia from Safire Capital. Please go ahead. 51:46 51 minutes, 46 seconds Hi sir, am I audible? Yeah. 51:51 51 minutes, 51 seconds What revenue growth are we targeting for FI27 and for FI28? Do we have any plans or goals in mind? 52:02 52 minutes, 2 seconds So we we have no specific comment that is forwardlooking at this point. I think 52:18 52 minutes, 18 seconds Thank you. The next question is from the line of Adept Tapal from MSA Capital Partners. Please go ahead. 52:26 52 minutes, 26 seconds Hi. Uh thank you so much for the opportunity again. Uh um G just wanted to understand uh so out of these three 52:35 52 minutes, 35 seconds party stores uh are there any stores or say a particular cohort of stores that are not performing 52:44 52 minutes, 44 seconds as per our expectation and what went right there what went wrong there just trying to understand 52:52 52 minutes, 52 seconds your thought process second part what was the second part what was the last statement I'm saying out of the 340 stores. Yeah. 53:00 53 minutes Was there was there any stores that didn't match your KPI maybe in year one that is uh before 13th month 53:08 53 minutes, 8 seconds and what what were our learnings from there? 53:12 53 minutes, 12 seconds So I'm just what I'm trying to do I'm trying to connect this the the the lower inventory turn to the store math. 53:20 53 minutes, 20 seconds Sure. So uh so essentially Aditi what happens is when you open let's say 50 stores all 50 stores will not have a very very uniform performance okay some 53:29 53 minutes, 29 seconds stores will be higher some stores will be lower so I think the best way but that's not actionable right what actionable is uh and for actionable 53:36 53 minutes, 36 seconds thing you actually look need to look at the cohort now the those cohort might be by vintage those cohort might be by let's say the store sizes those cohorts might be by the tiers of the city etc. 53:47 53 minutes, 47 seconds So when we do that cohorting uh what we realize is that there is not there's no material difference between one cohort 53:53 53 minutes, 53 seconds and the other. Okay. Uh and hence we continue to believe that it's a that's fairly well distributed and and the 54:01 54 minutes, 1 second opportunity in front of us is uh huge uh in terms of stores not working or stores closure etc. we've not done any closure 54:10 54 minutes, 10 seconds and I'll just uh make it very clear that if you open a store in a location and let's say uh 10 12 months down the line 54:18 54 minutes, 18 seconds we realized that uh the location was wrong or there was some other operate operational issue with that store and we relocate it and after that starts 54:26 54 minutes, 26 seconds working we don't call it a closure we call it relocation so so with that context we have not closed down any uh stores 54:34 54 minutes, 34 seconds no you made that clear and that is why that is why I started with clubbing clubbing the store into a particular vintage that is less than 54:43 54 minutes, 43 seconds 13th month right so so see there there would be variations so there would be stores 54:49 54 minutes, 49 seconds which which would so there okay so the the difference between best and worst store can be let's say 4x of each other also 54:57 54 minutes, 57 seconds but I think what's important what's important is that the that the growth that the yearon-year growth trends are 55:04 55 minutes, 4 seconds not that different and the beauty of compounding is Whatever number you start with, if your compounding carries on, you actually hit a very big number. 55:14 55 minutes, 14 seconds Understood. Understood. This makes this makes it clear. Just one last question. 55:19 55 minutes, 19 seconds Uh you missed. So uh the other current liabilities uh in in in in the current liabilities 55:27 55 minutes, 27 seconds aspect it increased to 1,01 crores. So how much would a how much of that 10,00 55:36 55 minutes, 36 seconds would be gold mine scheme uh franchise deposit and other than because the reason the market is it increased quite a bit. 55:47 55 minutes, 47 seconds So uh from another tenant liability perspective uh you know this is this is sort of an aggregate uh aggregate value 55:54 55 minutes, 54 seconds that consists of customer liability that drives you know multiple vectors in the business ranging from repeat behavior revenue stickiness 56:02 56 minutes, 2 seconds upselling source of funds on the business and this component covers customer advances consumer lease gold 56:08 56 minutes, 8 seconds dip vouchers and customer schemes where you know they pre-save every month for the next purchase either in value or in 56:15 56 minutes, 15 seconds gramage. So when they do it in gamage obviously there is that marktomarket effect also that kind of comes into play for the consumer uh consumer gold that 56:25 56 minutes, 25 seconds we uh that we have. So part of that is also driven by the marktomarket uh as the gold has been kind of moving through through the year. 56:37 56 minutes, 37 seconds Thank you. The next question is from the line of Karan Gupta from Azit S Mata Investments. Please go ahead. 56:49 56 minutes, 49 seconds Yeah. Hi. Uh so uh my question is related to uh Dr. J. I'm audible right? 56:57 56 minutes, 57 seconds Uh you're not very clear. U there is some disturbance in the line. It's not very clear. 57:08 57 minutes, 8 seconds Yeah. So u now I think it's clear. 57:12 57 minutes, 12 seconds Um I'm I'm sorry we're not able to hear you very clearly. There's lot of disturbance in the line. Uh 57:19 57 minutes, 19 seconds Mr. Gupta, can you use your handset mode please? Yes. 57:32 57 minutes, 32 seconds Yeah. So now uh audible clear. Yeah. Yeah. Much better. Thank you. 57:37 57 minutes, 37 seconds Yeah. So uh my question is uh on the genro what is the genoy uh number for fi 26 and I'm seeing the trend is uh 57:47 57 minutes, 47 seconds declining year over year since fi 24 understand the inventory path in last two years if 57:57 57 minutes, 57 seconds you see the gold drivers in dollars also more than doubled but how should we look 58:02 58 minutes, 2 seconds at this employ uh going forward as a profit profitability uh trait. 58:11 58 minutes, 11 seconds What will be the sustainable number and again this is also related to 58:17 58 minutes, 17 seconds the inventory turn. Um what is the uh you know rational behind the store size 58:26 58 minutes, 26 seconds that we have? If you just compare with the sphere which is something close to 58:33 58 minutes, 33 seconds double in size and their inventory turn is also close to I know 2.5 to three 58:41 58 minutes, 41 seconds times in the range uh in compar in comparison with our inventory turn. So how do we solve this thing? 58:52 58 minutes, 52 seconds Yeah, that's fine. 58:57 58 minutes, 57 seconds Right. So, so for store size essentially and the rational there is uh see in our 59:04 59 minutes, 4 seconds category uh the store rentals typically had a very very low percentage of the revenues. Uh now in when we started 59:12 59 minutes, 12 seconds opening the stores our stores were typically very very uh smalls size stores and what we realized was that in many of those cases uh we had to 59:21 59 minutes, 21 seconds actually relocate uh within next 2 years of opening. Now the cost of that relocation is actually pretty high and 59:28 59 minutes, 28 seconds the rental delta between let's say opening a 1200 ft² store and 2,000 ft² store generally is not that high because on a high street or in a mall when you 59:37 59 minutes, 37 seconds actually try to look for a smaller store it's not that the rental is not proportional that if 2,000 ft² is coming for X 1,000 ft² will come for for X by 59:46 59 minutes, 46 seconds 2. So that that's generally not the case right. So uh so so that is essentially the rational behind uh let's say why to 59:54 59 minutes, 54 seconds open slightly bigger store uh with slightly higher renter uh so that you can save on the relocation cost at a 1:00:01 1 hour, 1 second later stage. Secondly, uh okay, if you're comparing let's say uh inventory 1:00:08 1 hour, 8 seconds terms bases what is available on the balance sheet of two different companies then that might not be the best thing to 1:00:16 1 hour, 16 seconds do because you actually have to look at a lot of nuances uh in the balance sheet and the way those two companies operate. 1:00:22 1 hour, 22 seconds For example, let's say if the if company A has all franchisee stores, then technically their inventory terms would be infinite because they will just park 1:00:30 1 hour, 30 seconds all the inventory on franchisee balance sheets and the sales they'll book up front. So the sales numbers will inflate whereas the inventory numbers will 1:00:39 1 hour, 39 seconds deflate. So what you'll see is uh inflated numerator uh deflated denominator and so on. Uh so essentially 1:00:46 1 hour, 46 seconds the only way to compare two companies or at a channel level which company is doing better is to load everything and hence that comparison is generally mal. 1:01:01 1 hour, 1 minute, 1 second Thank you. That was the last question for today. I now hand the conference over to the manishan for closing comments. 1:01:09 1 hour, 1 minute, 9 seconds Thank you everyone uh for participating the on the call today. uh look forward to seeing you uh next quarter. Thank you and have a good day. 1:01:19 1 hour, 1 minute, 19 seconds Thank you very much. On behalf of Bluestone Jewelry and Lifestyle Limited, that concludes Wisconsin. Thank you all for joining us today and you may not disconnect your lines.