Brainbees Solutions Limited — Q4 FY26

Brainbees Solutions Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=mSbxA3mbumw Published: 3 weeks ago

0:03 3 seconds Good evening everyone. Welcome to BrainB Solutions Limited quarter 4 and year ending FI26 earnings call. This is Hersh 0:10 10 seconds Kabra and I have with me Mr. Supwari managing director and CEO of the company. Mr. Gautam Sharma group chief 0:17 17 seconds financial officer, Mr. Vive Goyel, Chief Business Officer of the company, Mr. 0:22 22 seconds Abinov Sharma, country head of Middle East business operations and Mr. Ano Jane, CEO of the G Global Bees. Kindly note that this call is meant for analysts and investors of the company. 0:33 33 seconds We wish to highlight that the call is being recorded and by participating in this event, you consent to such recording, distribution and publication. 0:41 41 seconds All participants have been muted as per the default mode and participants will be unmuted once we open the Q&A forum for the members to ask questions after 0:50 50 seconds the presentation from the management concludes. We will be covering the presentation in the beginning of the call and we will thereafter open for the 0:58 58 seconds Q&A forum. We would like to point out that some of the statement made in today's call may be forward-looking in nature and the disclaimer to this effect 1:06 1 minute, 6 seconds has been included in the investor presentation shared with you. With this I request Mr. Super Mahashari to take it over. 1:17 1 minute, 17 seconds Good evening everyone. Uh welcome to our uh last quarter presentation for FI26 1:24 1 minute, 24 seconds uh uh ending March 31st uh 26. So we'll be taking you through uh our performance for both the quarter as well as for the full fiscal year FI26. 1:35 1 minute, 35 seconds Um um Jash can you please move forward? Um so 1:42 1 minute, 42 seconds as as usually you will see we'll yeah please continue. 1:51 1 minute, 51 seconds Yeah. So this is all what we will cover today uh in FI26 performance India and wheel segment wise uh India multi- channelannel international business 2:00 2 minutes global be and other segments and overall uh financial summary and some supplementary information which uh is 2:07 2 minutes, 7 seconds already uh there in uh the presentation as a test which has been uh you know available for everyone both at NCBSC and 2:15 2 minutes, 15 seconds at our site as well. So now we'll straight dive into uh FI26 and Q4 performance. 2:28 2 minutes, 28 seconds So key highlights uh for the quarter 4 uh as well as for the FI26 console business if you talk about uh we 2:35 2 minutes, 35 seconds continue to remain free cash flow positive for the entire FI26 for the console business. Overall revenue increase has been 12% year-on-year for 2:44 2 minutes, 44 seconds the uh FI26 over FI25 and overall 24% year-on-year increase 2:51 2 minutes, 51 seconds and adjusted a bit adjusted for ESOC cost for FI26 2:57 2 minutes, 57 seconds and overall a very meaningful uh uh drop in net losses for both Q4 as well as for 3:04 3 minutes, 4 seconds FI26 57% and 23% yearonear from a segment perspective all three 3:11 3 minutes, 11 seconds segments uh key segments are in um I'll go one by one India multi- channelannel u as we have been talking about for last 3:18 3 minutes, 18 seconds few quarters that our endeavor is to focus uh on growth uh and u uh uh make 3:26 3 minutes, 26 seconds certain you know uh structural uh I would say you know key initiatives that we have undertaken 3:34 3 minutes, 34 seconds uh in last few quarters which have started to yield results. 3:39 3 minutes, 39 seconds So uh sequentially if you see year-on-year basis every quarter we have made improvement on the right hand side you can see the growth uh you know uh 3:47 3 minutes, 47 seconds the quarter-wise uh we have been able to demonstrate uh growth in Q4 now we are at 11 3:55 3 minutes, 55 seconds this meeting is being recorded we are at 11.4% 4% in Q4 growth and uh 4:04 4 minutes, 4 seconds despite you know competitive intensity which continues to remain in the quarter um and uh our initiative specifically in 4:13 4 minutes, 13 seconds offline channel uh that we had talked about in last two quarters that was expected to go live uh in Q4 in the SS26 4:23 4 minutes, 23 seconds has gone live and has also yielded and resulted in a mid- teens growth in the GMV for our offline channel in India 4:30 4 minutes, 30 seconds multi- channelannel. So that's a uh uh a very good outcome of our uh initiative and uh overall we believe that with the 4:40 4 minutes, 40 seconds current initiatives that we have taken uh across in the India multi- channelannel we believe that this 4:47 4 minutes, 47 seconds trajectory of sequential quarterly uh better growth will continue in FI27. 4:53 4 minutes, 53 seconds So FI27 we continue to believe that because of our initiatives that uh we 5:00 5 minutes will have a better growth overall for FI27 than compared to the entire FI26. 5:07 5 minutes, 7 seconds Um we happy to state that we continue to remain uh bad and cash flow uh positive 5:15 5 minutes, 15 seconds for our India multi channel business for the entire FI26. 5:20 5 minutes, 20 seconds In the international business, uh we continue to remain you know uh seeing the elevated uh promotional uh pressures 5:28 5 minutes, 28 seconds from the uh horizontal commerce players that we had talked about which entered the market in late uh quarter 3 of 25 5:36 5 minutes, 36 seconds FI25 uh and um uh but we continue to remain super laser sha focused on sustainable 5:44 5 minutes, 44 seconds growth and uh has been able to reduce our adjusted losses by 33%. % for the uh you know quarter 4 yearon-year basis and 35% for the entire FI26. 5:56 5 minutes, 56 seconds So it's been a very good progress on the international side as well because our uh goalpost is to you know uh build the 6:03 6 minutes, 3 seconds business in a sustainable way and u uh reduce our losses to zero as earliest 6:11 6 minutes, 11 seconds possible with a certain um structural math both in terms of uh you know gross margin improvement as well as through 6:19 6 minutes, 19 seconds obviously uh you know home brand expansion and u uh sales mix expansion. 6:26 6 minutes, 26 seconds Um on the global beast front u we had a very strong quarter on both organic uh 6:33 6 minutes, 33 seconds side as well as profitable growth. Uh we delivered 28% of core category yearon-year growth in FI26 with roughly 6:42 6 minutes, 42 seconds around 92 crores of adjusted AITA uh postc corporate expenses and we'll talk about in a little more detail as we go along. Uh but these were the highlights 6:51 6 minutes, 51 seconds that we wanted to uh talk about. uh moving further uh you will see 6:58 6 minutes, 58 seconds a can you move on please yeah performance um uh for the console 7:08 7 minutes, 8 seconds business uh at a GMV level uh we increased by 10% over FI25 revenue 7:13 7 minutes, 13 seconds overall grew by 12% to uh 8547 uh crores 7:21 7 minutes, 21 seconds and adjusted a bit uh has been has increased by 24% uh on a consol basis uh year on year to 7:29 7 minutes, 29 seconds around 486 uh crores. Um and cash profit uh for the 7:36 7 minutes, 36 seconds entire year on a consolid basis has uh roughly reached around 312 uh crores which is a 49% increase over the last 7:44 7 minutes, 44 seconds fiscal year. uh obviously happy to report that we continue to patent cash flow cash flow uh positive uh in India 7:52 7 minutes, 52 seconds multi- channelannel business and also uh on a free cash flow positive on a console basis 8:02 8 minutes, 2 seconds business segment wise detailed performance u in India multi- channelannel uh you know for the full year our revenue grew by 9%. 8:11 8 minutes, 11 seconds uh international revenue grew by 10%, global bes around 20%, and other segments largely preschool grew by 11%. 8:18 8 minutes, 18 seconds uh gross margin in India multi- channelannel uh as you remember in our Q3 uh presentation as well uh because of 8:27 8 minutes, 27 seconds the heightened comparity comparative intensity we had uh uh close to 140 bits 8:33 8 minutes, 33 seconds of uh gross margin uh you know margin pressure that we saw in Q3 which has continued and then 8:42 8 minutes, 42 seconds and and a and a bit of other gross margin loss that we saw uh was largely ly because in our manufacturing 8:50 8 minutes, 50 seconds uh seg you know uh you know uh part of our business which is again very transitional because of uh the the 9:00 9 minutes two factors which is rupee depreciation as well as u crude linked raw material 9:06 9 minutes, 6 seconds prices which has gone up. U the good news would be that you know these are very transitional in nature. uh these 9:15 9 minutes, 15 seconds will be passed on to the customers and the impact of the incremental gross margin loss apart from the Q3 will be 9:22 9 minutes, 22 seconds regained back in quarter 2. uh as they are being passed to the customer uh uh 9:28 9 minutes, 28 seconds you know in a regular BAU u on and um and in international we saw a 9:35 9 minutes, 35 seconds significant improvement in the uh gross margin expansion 250 bits uh leading to 22% increase in gross margin and global 9:43 9 minutes, 43 seconds ves uh 9% and others 11%. leading to you know adjusted a bit uh you know for 9:52 9 minutes, 52 seconds India multi- channelannel around 505 crores international uh improvement of 670 bibs with overall 10:00 10 minutes reduction uh of 35% year-on-year basis global v's 160 bips improvement and 153 10:09 10 minutes, 9 seconds uh you know uh percentage improvement over fi25 and our preschool segment also saw 21% improvement 10:18 10 minutes, 18 seconds overall from FI25 on the adjusted depict 10:23 10 minutes, 23 seconds moving further um Q4 snapshot our GMV uh grew by 10% for our uh console 10:32 10 minutes, 32 seconds business uh revenue from operation grew by 12% our consolidated adjusted AITA grew by 10:40 10 minutes, 40 seconds 18% to 118.7 crores and uh cash profits grew by uh 4% and uh around 72.3 crores. 10:51 10 minutes, 51 seconds Moving further uh now we can go into a you know our uh segment wise performance uh India multi- channelannel which is 11:00 11 minutes our largest segment. Uh we will talk about the key initiative updates that uh I'm sure all of you are eagerly waiting 11:07 11 minutes, 7 seconds to hear on. uh very happy to uh state that we have really worked hard on 11:15 11 minutes, 15 seconds building our uh you know uh and strengthening our key initiatives rocket bees which was 13 cities in Q2 and 22 11:23 11 minutes, 23 seconds cities by the end of Q3 and now by end of Q4 we have moved up to 62 cities 11:29 11 minutes, 29 seconds um and overall uh percentage of our online [clears throat] delivery volumes 11:35 11 minutes, 35 seconds we able to deliver 40% plus by end of Q4 uh through our rocket base initiative 11:42 11 minutes, 42 seconds which is obviously having a far improve far you know better you know tag than uh 11:49 11 minutes, 49 seconds some of our other uh shipping partners and resulting into uh incremental growth as well as customer experiences uh in 11:58 11 minutes, 58 seconds the pin codes that and the cities and the pin codes that we are uh delivering for uh under the rocket piece. We will 12:05 12 minutes, 5 seconds continue to expand this. Um we had promised that uh we will uh deliver to 12:11 12 minutes, 11 seconds around close to uh 50 plus cities and uh more than almost you know 45 to 50% of 12:17 12 minutes, 17 seconds our volumes in our online sort of uh business by middle of the year. We have been able to deliver it ahead of the 12:26 12 minutes, 26 seconds curve. Um and uh we comfortably should cross that number uh by the next quarter end. 12:34 12 minutes, 34 seconds on quick. Um again happy to report that uh you know we had started a pilot phase 12:42 12 minutes, 42 seconds now we have expanded the pilot phase to uh you know we are very clear that that we will be going ahead with this 12:50 12 minutes, 50 seconds strategy no longer a pilot anymore now uh it is doing uh uh you know extremely 12:57 12 minutes, 57 seconds well uh and uh we have expanded uh to five cities uh over uh last few months This 13:06 13 minutes, 6 seconds initiative was started uh from 1st of December uh 205 and it's just been a few months uh by end of March we were you 13:15 13 minutes, 15 seconds know we had crossed five cities and uh here uh we are doing uh select 13:22 13 minutes, 22 seconds catchments uh in the cities and in the catchments that we are doing we are already crossing 20% of our overall 13:29 13 minutes, 29 seconds online orders uh under uh our quick initiative and where we are able to deliver the 13:37 13 minutes, 37 seconds customer uh in less than 3 hours and uh we we expect over uh the full year of 13:45 13 minutes, 45 seconds FI27 uh our quick you know deliveries over a you know entire B2C uh shipments should 13:53 13 minutes, 53 seconds cross uh roughly around 10% of our overall online business um so this we will continue to expand on 14:02 14 minutes, 2 seconds recurring basis uh non-stop as uh we have been able to leverage our 14:08 14 minutes, 8 seconds uh cocoa stores um our warehouses, our stockish network and few of the dark stores as well. Uh so this has been a 14:16 14 minutes, 16 seconds very uh good experience. Uh customer experience has been uh superb here and we continue to believe in the strategy 14:25 14 minutes, 25 seconds and u uh we believe that as we increase more cities more catchments within the existing cities where we have opened uh 14:34 14 minutes, 34 seconds we will you know continue to get the love of our customers and and be able to uh you know defend all our you know uh 14:43 14 minutes, 43 seconds you know some of the categories that we had uh impact from uh some of our competitors. especially around game. 14:52 14 minutes, 52 seconds So we will continue to you know double down on on our expansion of quick u and uh we feel uh extremely happy that we 15:00 15 minutes really have executed well on our quick initiative. Now the third initiative that u you know we talked about 15:09 15 minutes, 9 seconds um um uh is was addressing uh you know both footfall as well as u you know the 15:16 15 minutes, 16 seconds growth in the offline channel. We wanted to fix uh you know the product mix and uh we have launched in SS26 somewhere 15:24 15 minutes, 24 seconds around March uh and the you know and impact has been fairly solid u as you 15:31 15 minutes, 31 seconds can see in the year GMV growth for Q4 in the offline business has been around 15% which has grown substantially from Q1 to 15:39 15 minutes, 39 seconds Q2 and Q3 and Q4. So all our three initiatives have been delivering well. I would only you know have only one point 15:48 15 minutes, 48 seconds to make that u while most of these initiatives are fairly new. Uh if you look at rocket 15:55 15 minutes, 55 seconds bees is just hardly a few quarters and it takes time to build a mature city under rocket bees the the area under the 16:04 16 minutes, 4 seconds curve or the number of shipments within a city that we can serve through a rocket bees it takes time to build that network. So uh the real impact of rocket 16:13 16 minutes, 13 seconds bees you will see as more and more customers get impacted and uh build their repeat cohorts and build their frequency uh while having uh you know 16:22 16 minutes, 22 seconds great customer experience and likewise uh for the quick and u and uh the offline initiative has just started. So 16:30 16 minutes, 30 seconds you can be and with you know sure of that in FI27 uh the growth for the offline channel 16:38 16 minutes, 38 seconds should continue to be as strong as what you have seen uh in the mid- teens in in what you have seen in Q4. So with all 16:45 16 minutes, 45 seconds these three initiatives we remain fairly uh I would say you know confident of uh 16:53 16 minutes, 53 seconds the FI27 growth will be much superior than the FI uh 26 and this gives us the 16:59 16 minutes, 59 seconds confidence and clarity of what how we are actually be able to execute and we'll be able to deliver that. Um moving 17:07 17 minutes, 7 seconds further I would request Vive uh to take u you know India multi- channelannel progress 17:15 17 minutes, 15 seconds uh V over to you. 17:20 17 minutes, 20 seconds Thank you Zupam. Uh so I'll take you through the progress of India multi channel in this quarter as well as uh uh 17:27 17 minutes, 27 seconds financial year 26. So happy to report that uh in financial year 26 we grew by 11% in terms of GMV and India multi 17:36 17 minutes, 36 seconds channel and [clears throat] for the first time we crossed $1 billion in GMV for the India multi- channelannel business. 17:44 17 minutes, 44 seconds So um moving to some of the key updates uh uh as superam has al already shared on some of these things we witnessed 17:52 17 minutes, 52 seconds sequential improvement in yearon-year growth rate for revenue despite heightened competitive intensity during the last two quarters. U our diapering 18:02 18 minutes, 2 seconds category continued to witness heightened competitive intensity during the quarter which led to pressure on both growth uh on growth as well as margins. 18:13 18 minutes, 13 seconds uh whereas our non-dipping portfolio which contributes to over 85% of our GMV remains very robust and continues to 18:21 18 minutes, 21 seconds perform well. Um our annual unique transacting customers uh stand tall at 18:27 18 minutes, 27 seconds 11 million. Uh our orders for quarter 4 FI26 grew by 10%. Uh and GMV grew by 18:35 18 minutes, 35 seconds 12%. Our GMV for FI26 as I already mentioned grew by 11% yearon year. Uh can we move to the next slide? 18:48 18 minutes, 48 seconds Uh so as super has mentioned uh even in India multi- channelannel business we have continued to see sequential uh improvement in revenue growth. For 18:56 18 minutes, 56 seconds quarter 4 FI26 we grew by 11%. Uh in terms of our revenue uh for FI26 over FI25 we grew by 9%. 19:08 19 minutes, 8 seconds However, uh as superam has mentioned that uh our gross margin has seen some further dip largely in our manufacturing 19:15 19 minutes, 15 seconds operations which is because of rupee depreciation and increase in crude linked raw material prices uh because of 19:22 19 minutes, 22 seconds geopolitical situation. If not for these volatilities, our gross margin in Q4 would have seen a similar drop which was 19:30 19 minutes, 30 seconds because uh of the competitive intensity in diapering as Q3 uh which we saw in Q3 year on year. Uh 19:39 19 minutes, 39 seconds further if I would say we have recovered almost uh 80 basis points of this loss in our eBay DA for Q4 uh uh owing to our operating leverage benefits. 19:50 19 minutes, 50 seconds Uh now I'll pass it on to Abhinav for international updates. 20:05 20 minutes, 5 seconds You're on mute. You're on mute. 20:10 20 minutes, 10 seconds I'm sorry I had to unmute myself. I forgot about that. So good evening everyone. Uh thanks for joining the call. Uh so we'll go over the first few 20:18 20 minutes, 18 seconds slides. uh for uh uh you know for our international business for those of you who joined for the first time this call we'll just go over certain metrics here. 20:27 20 minutes, 27 seconds So a very favorable uh sort of demographic and a market opportunity you know lies ahead of us in the international market. Uh as you can see 20:35 20 minutes, 35 seconds the birth rates are uh you know slightly higher in KSA as compared to India. The spends as you can see are substantially 20:42 20 minutes, 42 seconds higher in both the markets KSA as well as uh you know in UAE versus India. So that's a large opportunity there and 20:50 20 minutes, 50 seconds obviously the child care uh market size uh you know forecasted is also significantly high uh not as high as 20:58 20 minutes, 58 seconds India but significantly high for the international market. So that's the market opportunity we have uh you know in front of us and we'll speak more 21:06 21 minutes, 6 seconds about it as we move along. Uh can you go to the next slide please? 21:11 21 minutes, 11 seconds So uh you know in UA we've been live uh since October of 2019 and in KSA we've been live since August of 2022. 21:22 21 minutes, 22 seconds Uh so you know in both the markets we are uh we are offering our customers the flexibility to uh you know choose the 21:29 21 minutes, 29 seconds language of their choice English or Arabic. So we have our app in both English and Arabic. uh largely operating as an online platform in both the 21:37 21 minutes, 37 seconds markets UAE and KSA and uh our AOVs as compared to the international segment as compared to the India business is about 21:46 21 minutes, 46 seconds four times as high. Next slide please. 21:51 21 minutes, 51 seconds Now this is an important slide. uh this this shows you the evolution of or progression of gross margins uh for our 21:58 21 minutes, 58 seconds international business segment versus in comparison to the India India multi- channelannel and the reason is because 22:05 22 minutes, 5 seconds uh you know we as a business uh in the international uh segment are about 5 years old and as 22:13 22 minutes, 13 seconds you can see uh we've clocked the same gross margins as India had clocked when it was 8 years old so we are well on 22:21 22 minutes, 21 seconds track uh in terms terms of gross margins improving year on year, quarteron quarter and you will see it in subsequent slides as well. Key important 22:30 22 minutes, 30 seconds points here you know the the playbook that is that is being used and refined also for the international business is 22:38 22 minutes, 38 seconds uh is play has been played out in India as well. The levers uh that we some of the levers not all but some of the levers that I want to highlight here uh 22:46 22 minutes, 46 seconds for gross margin expansion are you know increase in the home brand share uh of topline and within home brands also the 22:54 22 minutes, 54 seconds fashion business share fashion share of the to the business also improving our gross margins in both home brands as 23:01 23 minutes, 1 second well as third party margins because uh you know third party brands also are equally important because it's a it's a consumerf facing business so obviously 23:08 23 minutes, 8 seconds it is what the mom likes uh if they like our home brand which which they do plus if they want to choose anything from the 23:16 23 minutes, 16 seconds non-h home brand or the third party brands we offer that as well but ensuring that the margins uh you know make sense on the third party side as 23:23 23 minutes, 23 seconds well with the economies of sale scale that we see going forward also uh obviously as we grow uh we will be we 23:31 23 minutes, 31 seconds will see as in any business operational efficiency is kicking in so gross margin improvement levers uh you know couple of them I've just spoken about And uh these 23:40 23 minutes, 40 seconds were the same levers in play in India as well in the progressive years that India saw in its business. So very comfortably 23:47 23 minutes, 47 seconds stacked here in terms of the way forward what we need to do to grow the business sustainably. Uh next slide please. 23:58 23 minutes, 58 seconds So uh some of the key highlights uh for FI26 uh we continue to you know witness uh promotional activities and heightened 24:06 24 minutes, 6 seconds promotional activities uh by the horizontals that we spoke about and Supum spoke about in his first two slides. However, we continued on the 24:15 24 minutes, 15 seconds path of sustainable growth uh as we have been over the last four quarters progressively. We've seen uh a reduction 24:22 24 minutes, 22 seconds in EITA losses uh by 33% year-onear for the quarter FI26 and 35% on a full year 24:30 24 minutes, 30 seconds basis FI26 versus FI25. Uh AUTC increased by 7% uh in this quarter Q4 FI26 versus same quarter last year. 24:41 24 minutes, 41 seconds Orders grew by 6% uh year on year FI26 versus FI25. Uh next slide please. 24:50 24 minutes, 50 seconds So uh $100 million plus in revenue in FI26 and uh we should see this growing uh uh you know progressively as we move 24:59 24 minutes, 59 seconds along. Uh the key highlights here uh this quarter we grew 9% over the same quarter last year. More importantly 470 25:07 25 minutes, 7 seconds bips margin expansion on the back of a 9% growth and for the full year we had a 200 240% 25:15 25 minutes, 15 seconds uh 240 bips margin expansion with a 10% growth. So while we are growing uh sustainably we also ensure that you know 25:24 25 minutes, 24 seconds our gross margin expands and that and that you can see on the right hand side where our uh embitter losses for the 25:31 25 minutes, 31 seconds same quarter last year we lower by 33% on absolute terms and as a percent of revenue we went from 15% to 9%. For the 25:40 25 minutes, 40 seconds full year, we reduced our losses from 140 crores to 90 crores, a reduction of 35%. 25:47 25 minutes, 47 seconds And our losses now stem at 10% versus 16% in FI25. 25:54 25 minutes, 54 seconds Next slide. 25:56 25 minutes, 56 seconds Uh again uh you know uh as we've spoken earlier uh uh on multiple quarterly 26:03 26 minutes, 3 seconds calls uh our prime focus has been to not just grow the business but grow it sustainably. uh not chasing top line at 26:11 26 minutes, 11 seconds any cost but growing top line ensuring that we reduce our losses substantially. 26:17 26 minutes, 17 seconds Uh so you can see the progression here from FI23 to FI25 there has been a 830 bips reduction in 26:26 26 minutes, 26 seconds losses and again in FI26 over FI25 was a 674 bips reduction which like 26:34 26 minutes, 34 seconds mentioned in the previous slide which is 10% of our revenue versus 16% last year. 26:42 26 minutes, 42 seconds Anoj over to you please. 26:54 26 minutes, 54 seconds I know you're on mute. Uh, we can't hear you. Okay. 27:04 27 minutes, 4 seconds Yeah, we can hear you now. Now you can hear me. Okay. All right. 27:08 27 minutes, 8 seconds So, I'll just u give you an update on P's eyes. Um, so we look at first. Let me just uh quickly take you through uh 27:16 27 minutes, 16 seconds how global piece is structured. Uh so we have uh essentially uh four broad categories that we look at um which is 27:24 27 minutes, 24 seconds home utilities, home appliances, fashion and lifestyle and beauty, personal care uh uh health and personal care. So these 27:32 27 minutes, 32 seconds are the these are the four broad segments in which we operate. As you know over over the last uh year it's been a very important one for global views where we've been nationalizing um 27:41 27 minutes, 41 seconds our portfolio of brands uh to focus on the ones which will continue to drive growth as well as profitability. We can move to the next slide. 27:53 27 minutes, 53 seconds So if I look at uh the overall uh performance for the year and I look at specifically the four categories uh uh 28:00 28 minutes we did a revenue of 1876.8 8 which was a 28% yearon-year growth and a 91.9 cr adjusted EITA post corporate 28:09 28 minutes, 9 seconds expenses uh which translates to a 4.9% uh of revenue. Now these core categories 28:16 28 minutes, 16 seconds are are the ones that we will continue to focus on in the long term. Um the rationalization of other brands are the 28:25 28 minutes, 25 seconds ones that are witnessing uh lower uh revenue growth and uh have had been incurring losses. We're almost at the 28:33 28 minutes, 33 seconds trail end of uh rationalization of these grants and our endeavor is to complete this rationalization by uh this uh 28:40 28 minutes, 40 seconds quarter end uh so that we're able to then move on to sustainable uh topline growth and bottom line growth as uh outlined uh in FI26. 28:52 28 minutes, 52 seconds Okay, we can move to the next slide. 28:56 28 minutes, 56 seconds So uh if I compare uh our performance in terms of revenue and adjusted dividends now we look at revenue first uh so in 29:03 29 minutes, 3 seconds the last quarter we had a we had a 15% uh growth quarter on quarter uh quart this quarter to last uh FI25 quarter 4 29:12 29 minutes, 12 seconds and uh uh at a at a full year on a full year basis uh we grew by 20% on a 29:19 29 minutes, 19 seconds consolidated uh basis the 20% is lower than the 27 uh% of four brands purely because of the rationalization of brands 29:27 29 minutes, 27 seconds as I've mentioned earlier. All of this growth that I'm mentioning is organic because the last acquisition that we made at global peace was uh in September 2022. 29:38 29 minutes, 38 seconds In terms of adjusted uh we have moved from in quarter FI26 uh we did an adjusted EIA for corporate 29:47 29 minutes, 47 seconds expenses of uh to 26.5 crores which is 5.8% 8% of revenue uh 9x increase from 29:55 29 minutes, 55 seconds the what the four FI25 adjusting AITA post corporate expenses which was at.7%. 30:01 30 minutes, 1 second So you had a significantly uh healthy growth in our AITA. Um if I look at it on a on a full year basis also from FI25 30:10 30 minutes, 10 seconds to FI26 we've moved from 1.4% 4% or 3% at uh 56 odd crores of uh adjusted post 30:18 30 minutes, 18 seconds corporate expenses which is a 2.5x uh increase. 30:23 30 minutes, 23 seconds Okay, we can move to the next slide. Um overall uh as you will observe there has been a continuous trend of improvement 30:32 30 minutes, 32 seconds in our bottom line uh over over the years from FI23 where we were negative to even an FI 24 where we were bit 30:39 30 minutes, 39 seconds neutral. Now at FI26 we stand at a healthy 3% adjusted EIA postcopic expenses. This is uh this is uh also 30:48 30 minutes, 48 seconds adjusted for EOP cost. Uh so uh this 3% includes uh the u rationalization of 30:55 30 minutes, 55 seconds grants. Uh uh but it's improving as we moving on. That's that's the update that I had on global piece. We can move to 31:04 31 minutes, 4 seconds the next slide. Uh now Gotham will take the other second guest. Thank you. Thanks so much. 31:11 31 minutes, 11 seconds So this is our last segment uh fourth segment which is uh called as others uh represent the preschool business uh 31:20 31 minutes, 20 seconds continuously growing from 28 uh preschools end of FI24 31:26 31 minutes, 26 seconds uh to more than double uh end of FI26 and uh in terms of number of students 31:34 31 minutes, 34 seconds enrolled uh it's it's almost 3x in in two years. Uh next slide please. 31:42 31 minutes, 42 seconds Uh a healthy growth in revenue 11% growth in revenue in FI26 over FI25 31:49 31 minutes, 49 seconds and and around uh 220 VIPS improvement in AITA from 24% in FI25 to 27% in FI26. 32:01 32 minutes, 1 second Now we'll talk about uh the console performance. Uh so while uh these numbers have been you know previously 32:08 32 minutes, 8 seconds covered by by uh by superina and way uh uh so India multi- channelannel business 32:17 32 minutes, 17 seconds uh it's a 9% growth in 26 over 25 8% 8 8 8.8% 8% at this beta for FI26. This was 32:28 32 minutes, 28 seconds 9.5% in FI25. uh uh this is you know largely because of as Superman Vivik mentioned 32:36 32 minutes, 36 seconds uh some pressure in gross margins uh which is a on account of uh heightened competition in our diapering category 32:44 32 minutes, 44 seconds which represents 15% of our business and the second one uh is basically a dip in Q4 because largely in our manufacturing 32:52 32 minutes, 52 seconds business because of rupee depreciation and uh uh and the increase in the crude leaked raw metal prices uh this dip uh 33:02 33 minutes, 2 seconds there is a lag in in terms of recovery from the customer's lag of around 1 to two quarters. So from Q2 onwards uh the 33:11 33 minutes, 11 seconds gross margin loss because of uh crude linked uh raw metal prices and rupee deprecation should be should be should be covered. So we'll be back we will be 33:19 33 minutes, 19 seconds recovering uh the lost margin uh international business you know I mean I've talked about uh despite of a 10% uh 33:28 33 minutes, 28 seconds yag growth in FI26 we managed to reduce our losses by almost 50 cr rupes from a 33:35 33 minutes, 35 seconds 140 cr rupes loss in in FI25 we reduce our losses to 90 cr rupes in FI26 so from 16% it has come down to 10%. 33:45 33 minutes, 45 seconds global based business continue to grow very well. Uh while on a console level it's a 20% growth. However, if I if we 33:53 33 minutes, 53 seconds talk about a clean slate that is uh the growth in the core category that is 28% and has delivered an emitter of 4.9%. 34:02 34 minutes, 2 seconds And as Anul mentioned the rationalization of uh the other brands uh should be over by by Q1 FI27. So we 34:10 34 minutes, 10 seconds should see a continuous a complete organic growth of the organic of the uh of the core business starting Q2 and 34:19 34 minutes, 19 seconds also the IITA which is 4.9% in FI26 others which is preschool business 27% AIA and 11% growth. 34:29 34 minutes, 29 seconds Next slide. So all those the results of those those four business segments it basically gives us uh a 12% growth in in 34:38 34 minutes, 38 seconds Q4 uh on a Y basis and a similar growth in FI26 over FI25 34:45 34 minutes, 45 seconds gross margin dip you know we can see a gross margin dip uh again this is because of two reasons one is the dip in the gross margin of India multi- 34:54 34 minutes, 54 seconds channelannel business which super uh explained I also explained in the previous slide and the second reason is is a slight dip in the gross margin in 35:02 35 minutes, 2 seconds the global wheels business. Uh however you know uh we maintained or we increase our in Q4 and for the for the full year 35:10 35 minutes, 10 seconds in global business uh consult existed uh despite of a dip in gross margin 35:18 35 minutes, 18 seconds uh uh you know from 3 from 37.4 we have come down 36 36.2%. We still 35:26 35 minutes, 26 seconds managed to increase our adjusted beta on a console basis both at a Q4 level and 35:33 35 minutes, 33 seconds also at the fullear level. So Q4 addition beta has increased by 18%. And the full year adjusted a beta has increased by 24%. 35:48 35 minutes, 48 seconds That's it. So this ends our presentation. uh previous slide uh uh 35:56 35 minutes, 56 seconds those are supplementary slides. Yeah, just just go back. Yeah, yeah, 36:05 36 minutes, 5 seconds we're happy to take questions. Uh thank you team. Uh we will now move on 36:14 36 minutes, 14 seconds to Q&A. I now request participants to raise the hands uh for asking questions. 36:20 36 minutes, 20 seconds We will unmute you one by one and you will have access to the mic. Please introduce yourself and name of the organization you represent. The 36:28 36 minutes, 28 seconds participants are also requested to limit their questions to a maximum of two. For any follow-up questions, you may join the queue again. 36:48 36 minutes, 48 seconds First question is uh from uh Janesh Modi. Janesh please unmute yourself. 36:57 36 minutes, 57 seconds Uh hi Janesh Modi this side. uh so uh uh taken various initiatives to improve the 37:04 37 minutes, 4 seconds delivery performance for your online business like delivering through your own logist logistic network. So what percentage of orders are delivered 37:12 37 minutes, 12 seconds through these networks and uh what is the logic logistic cost 37:21 37 minutes, 21 seconds increase in the Q4 and what is the expected increase in FI27? 37:26 37 minutes, 26 seconds So, so Janesh uh um I think u so the 37:34 37 minutes, 34 seconds percentage of orders that we were delivering by uh roughly around you know Q3 end were 37:41 37 minutes, 41 seconds uh so 28% now we have crossed 40% plus uh end of March uh uh 26 and we will 37:50 37 minutes, 50 seconds continue to increase it our goal post was to reach close to uh 45 to 50% by middle of the year. I think we remain uh 37:59 37 minutes, 59 seconds we believe we are ahead of the curve and we should be able to deliver it uh before uh the next quarter ends. Um and 38:07 38 minutes, 7 seconds um in terms of cost uh there is a you know uh marginal front loading of the cost that actually 38:15 38 minutes, 15 seconds happens both for rocket bees as well as for the quick u because um you know it takes some certain time to 38:24 38 minutes, 24 seconds uh reach to a little maturity within a city uh in terms of the number of shipments that we can do under rocket 38:32 38 minutes, 32 seconds bees. So till then you have to frontload but over so we will have some impact of 38:38 38 minutes, 38 seconds uh you know 40 to 60 bits uh in a uh from a uh you know few quarters but in a 38:46 38 minutes, 46 seconds medium term uh you know as the network matures uh our cost will normalize to a regular uh sort of a cost structure that 38:54 38 minutes, 54 seconds we had and uh that cost will be uh excess will be nullified. So that's how uh I hope I've answered both your 39:02 39 minutes, 2 seconds question in terms of what percentage of shipment as well as on the cost front. 39:06 39 minutes, 6 seconds Okay. Yeah. Thank you Janesh. Uh the next question is from 39:18 39 minutes, 18 seconds uh Vishal Doshi. Uh Vishal please unmute yourself. 39:26 39 minutes, 26 seconds Hi sir. Hi sir. Hi sir. Hello. 39:34 39 minutes, 34 seconds Yes. 39:35 39 minutes, 35 seconds Sir, my question is how is the store business in me doing and you have only 39:43 39 minutes, 43 seconds added 10 cocoa store in FY26? What is the plan for the store opening in financial year 27? 39:53 39 minutes, 53 seconds Uh so so in fact you know we have mentioned in our previous calls as well that uh because of the macros uh we 40:02 40 minutes, 2 seconds wanted to maintain capital efficiency and that's the reason we are kind [clears throat] of paused uh opening of 40:08 40 minutes, 8 seconds company own stores in FI26 uh uh given the initiatives that we have taken to 40:15 40 minutes, 15 seconds improve the the offline growth uh uh Q4 numbers are you know a testimony to the improvement in growth which 40:22 40 minutes, 22 seconds the growth is is best than last seven quarters. So we will double down on our approach to open company owned stores in FI27 40:29 40 minutes, 29 seconds and hopefully uh with a mix of Koko as well as Coco stores we should be opening roughly 100 stores uh in this year. 40:53 40 minutes, 53 seconds Yeah. Okay. Thank you. Thank you Vishad. 40:55 40 minutes, 55 seconds Uh the next question is from uh Tjas Sha. Uh Tjas, please unmute yourself. 41:04 41 minutes, 4 seconds Hello. Am I audible? Yes. Yeah. 41:08 41 minutes, 8 seconds Yeah. Hi. Hi. Uh hi Tom. Hi. Uh thanks for the opportunity. just uh first question uh the interventions that we have made uh on on India multi- 41:18 41 minutes, 18 seconds channelannel business uh uh the the areas or the pin codes that that we are actually now fully deployed in terms of 41:25 41 minutes, 25 seconds whatever interventions we had to make uh what are the key uh operational and financial parameters that you uh you are 41:34 41 minutes, 34 seconds seeing which gives us a lot of confidence that uh once we roll it out fully it will actually kind of uh bring 41:42 41 minutes, 42 seconds back what what the momentum that we're missing for last one year sure so tes while you know I I V both 41:50 41 minutes, 50 seconds can answer this question but uh but uh Vive you can add I'm going to maybe start so look uh it's a fair question 41:58 41 minutes, 58 seconds and both for rocket be initiatives as well as for the quick initiatives we have uh felt that there is a clear uh 42:06 42 minutes, 6 seconds superior customer experience that we are able to deliver uh which is what we had originally planned with these 42:13 42 minutes, 13 seconds initiatives and uh when I say uh it's a very tangible incremental 42:20 42 minutes, 20 seconds uh outcome and uh with that we are also experiencing incremental growth in those catchments for quick as well as in those 42:29 42 minutes, 29 seconds cities where we have uh rocket bees uh has reached to a certain uh maturity in terms of the total number of shipments 42:38 42 minutes, 38 seconds in that city. So with that we believe as we increase area under the curve both for rocket bees as well as for the quick 42:46 42 minutes, 46 seconds um and as u you know u it improves this will give us u you know with a lag 42:53 42 minutes, 53 seconds effect because you know it takes time to reach to a certain uh you know volume uh or a network you know to a point where 43:02 43 minutes, 2 seconds we have certain volume in the city. uh and as we reach there we uh we will have a benefit of incremental growth being accured to our overall online business. 43:13 43 minutes, 13 seconds You want to add anything or Yeah. So subam u as you as you rightly mentioned that uh we are seeing a lot of positive movement on the consumer 43:22 43 minutes, 22 seconds experience matrices. So um from that window uh very confident that as uh the network matures of rocket bees as well 43:30 43 minutes, 30 seconds as as expands we should see uh a good positive impact on our uh FI27 growth 43:38 43 minutes, 38 seconds and uh so I think that's and I guess the key operating operating matrix that we see is basically 43:45 43 minutes, 45 seconds uh reduction in promise delivery t actual delivery t uh on time delivery which is probably the best in industry 43:54 43 minutes, 54 seconds it's it's more than 92%. All these factors put together as super mentioned there could be a lag in terms of you 44:02 44 minutes, 2 seconds know seeing a tangible growth uh in the online business but yes uh we have already started seeing you know uh good 44:10 44 minutes, 10 seconds results in terms of you know uh service matrix and and we we strongly believe that FI27 online growth uh should be 44:20 44 minutes, 20 seconds much superior compared to the growth that we given in FI26. 44:24 44 minutes, 24 seconds Sure. and and Gotham this intervention that you spoke about on KPI it will largely reflect in better AOV frequency 44:31 44 minutes, 31 seconds or recruiting more users on the platform. 44:35 44 minutes, 35 seconds It will be both [clears throat] it will be uh improving the retentions as well as you know acquiring more number of customers. 44:42 44 minutes, 42 seconds Perfect. Uh second uh just if you can elaborate a bit what exactly is the source of this gross margin pressure? 44:49 44 minutes, 49 seconds you touched upon a bit on on certain categories but uh is it more of a competitive pressure which is hurting us or inflation or or mix of everything playing out together. 45:01 45 minutes, 1 second So, so we talked about there are on the India multi channel there were two parts to it. Uh we saw 140 bips that we saw in 45:09 45 minutes, 9 seconds Q3 that we explained that has continued. It will take us couple of quarters for uh the irrational 45:17 45 minutes, 17 seconds uh discounts or irrational you know intensity to go away. 45:22 45 minutes, 22 seconds We had seen this pressure in 2016 2017 as well. uh but you know everything normalized and uh lately uh few more 45:31 45 minutes, 31 seconds players in the quickcom who have joined sort of and again there has been the same intensity has been carried forward 45:39 45 minutes, 39 seconds in the larger horizontal commerce players as well. 45:44 45 minutes, 44 seconds So um we believe that at least it's probably a four to six quarters sort of a phenomena it'll go away. So that's on 45:51 45 minutes, 51 seconds the 140 bits that we are talking about that we spoke in Q3 that has continued for this quarter. the remainder part of the 45:59 45 minutes, 59 seconds gross margin loss um uh in the India in Q4 in Q4 in India multi- channelannel it's 46:06 46 minutes, 6 seconds very trans transitory uh as in especially coming from our manufacturing and which is crude link input cost as 46:15 46 minutes, 15 seconds well as rupee depreciation and as it gets passed to the customer uh you will see it you know uh bump bumping back uh 46:23 46 minutes, 23 seconds fully recovered in Q2 so it's just transitory in nature uh in past it has happened but you know such a steep depreciation and such a 46:31 46 minutes, 31 seconds steep in crude uh uh you know increase in crude prices not happened in the past at least we haven't seen it but u since 46:41 46 minutes, 41 seconds uh it will get recovered from the customer so uh from Q2 onwards as Gotham mentioned we be back on track this part of the 46:49 46 minutes, 49 seconds loss will be recovered in our Q2 numbers so so long pages just to add just to add what will improve the gross margin going forward. 47:00 47 minutes A the gross margin expansion levers you know which is uh increase in home brand mix. Uh there is a separate slide uh in 47:09 47 minutes, 9 seconds additional disclosures uh which basically talks about uh the the GM mix of our home brands uh fashion makes 47:17 47 minutes, 17 seconds increase again there's a separate slide uh which basically clearly shows the increase in the fashion mix continuous negotiation of third party brand margin. 47:25 47 minutes, 25 seconds So these factors will continue to play on which will increase the gross margin going forward. The second factor so we talked about that uh the manufacturing 47:34 47 minutes, 34 seconds business loss of loss in gross margin will be will be recovered starting Q2. 47:39 47 minutes, 39 seconds So that will again add to the improvement in gross margin. Third one is you know uh uh the deep discounts you know especially in the library category 47:47 47 minutes, 47 seconds which led to a 140 gifts uh rich in the gross margin in Q3 that will also be we believe that should be probably next 47:54 47 minutes, 54 seconds four to six quarter that should al also come back in the business. So all these three factors will help us you know regain the gross margin in you know 48:03 48 minutes, 3 seconds probably starting from Q2 uh probably in next you know four to five quarters. 48:08 48 minutes, 8 seconds Perfect. Just one followup if I may. Uh this uh pressure on diapers from quick commerce in terms of pre uh margins is 48:16 48 minutes, 16 seconds it coming from uh largely the unlisted uh players or is it are you seeing any behavioral change once you get listed 48:23 48 minutes, 23 seconds and you start chasing profitability or the behavior is across same in terms of uh uh losing money or being aggressive on this category? 48:32 48 minutes, 32 seconds No, it is not specific u to any low cost or you know it is across the board. It is it's more of a platform phenomena than a brand phenomena. 48:42 48 minutes, 42 seconds So just to answer that question, we have seen it both in listed and unlisted platforms. Uh and that has led to a 48:49 48 minutes, 49 seconds further uh price competition from the horizontals which are unlisted as well. 48:53 48 minutes, 53 seconds So uh it is across from cube commerce and horizontal where there's a there's a price competition which is resulting 49:00 49 minutes into uh this uh loss as of now which we as super and go mentioned which seems to 49:07 49 minutes, 7 seconds be quite irrational and typically the cycle takes a few quarters to subside and that's what we expect as well. 49:14 49 minutes, 14 seconds Thanks that's all from my side. 49:17 49 minutes, 17 seconds [snorts] 49:17 49 minutes, 17 seconds Uh thanks stages. Uh the next question is from uh Jant Parasanka. 49:24 49 minutes, 24 seconds Uh Jen, please unmute yourself. 49:42 49 minutes, 42 seconds Jen, we can't hear you. 49:52 49 minutes, 52 seconds Okay. So I think u come back to Yeah. Right. Right. So uh Abinav Kashab uh next question we'll take from you. Uh can you please unmute yourself? 50:04 50 minutes, 4 seconds Uh hi I have a couple of questions. So how is uh AI benefiting us? So I wanted to understand that. 50:16 50 minutes, 16 seconds Okay. Is that an only question or I thought there was Yeah. So another Okay. I think look AI has uh sort of 50:25 50 minutes, 25 seconds multifaceted ways of uh improving both from a revenue optimization, gross margin optimization 50:35 50 minutes, 35 seconds as well as uh you know uh improvement in uh uh productivity efficiencies. So you 50:42 50 minutes, 42 seconds know it has far facet I mean I would say you know I would say multiple facets of uh improvement that you know one would 50:51 50 minutes, 51 seconds see in the from my usage of AI. So uh it'll be it'll it'll you know I can give examples u because otherwise it'll take a little 51:00 51 minutes longer for me to be able to explain every point across uh different facets. 51:05 51 minutes, 5 seconds Uh it is very fascinating to be able to uh come up with answers and you know uh 51:12 51 minutes, 12 seconds able to um get information processed whether it is uh you know benefits that 51:19 51 minutes, 19 seconds we can drive uh to you know um save cost like for example you can you know save your supply chain cost in terms of 51:28 51 minutes, 28 seconds making a product life much faster than what you had otherwise uh were taking that leads to an improvement in working 51:34 51 minutes, 34 seconds capital uh to you know um improvement in how you will uh build you know URLs for 51:43 51 minutes, 43 seconds your SEO AEO or you know uh you know GEO kind of models to be able to be more relevant more effective uh to improve 51:52 51 minutes, 52 seconds conversions. So there are you know any number of opportunities that we are utilizing uh within the company as uh to 52:02 52 minutes, 2 seconds across different facets of running a business uh to not just you know use it only in you know typical sort of a call 52:10 52 minutes, 10 seconds center savings or automated voice B chat bots uh email bots but across the board 52:18 52 minutes, 18 seconds uh in different facets to be able to optimize our cost as well as uh efficiency ies, productivities as well as revenue optimization and even to the 52:26 52 minutes, 26 seconds extent of discounts or maybe the gross margin optimization. So there are these are at various stages of evolution over 52:34 52 minutes, 34 seconds a period of time you'll be able to some of you have already got the benefits some of the benefits will acrew over a period of time. So uh maybe we can take 52:42 52 minutes, 42 seconds this question a little more offline if you have more interest but that's a broad gist of it. uh there there's too much excitement entire in the entire 52:49 52 minutes, 49 seconds organization uh what we all can do with uh with the AI. 52:53 52 minutes, 53 seconds So to sum up we are working on cost cost efficiencies we are working towards revenue expansion and margin expansion as well as people efficiency. So every 53:02 53 minutes, 2 seconds single aspect uh I think AI has already entered in the organization. 53:06 53 minutes, 6 seconds Cool. What kind of what percentage of BIPS or something we can expect as a benefit in the long run? Is it if you 53:13 53 minutes, 13 seconds have any number or like it's too early to comment on that but I think that this is going to be a you 53:20 53 minutes, 20 seconds know meaningful outcome uh as we go along. It should definitely be a meaningful outcome. We'll be able to speak more in the subsequent quarters 53:27 53 minutes, 27 seconds because this initiative has just been just started a couple of months back. So it's premature for us to talk about the overall improvement that will do but we 53:36 53 minutes, 36 seconds remain very focused on uh the benefits that it will acrewue. It's not small right it's going to be meaningful. 53:44 53 minutes, 44 seconds Therefore uh we'll reserve our comment on that. Uh but maybe in the next subse you know next quarterly update we can probably share that number as well. 53:53 53 minutes, 53 seconds Uh one more question I had. So uh so we are trading at a pretty low valuation compared to our revenues. Is there any 54:01 54 minutes, 1 second risk of someone trying to acquire us and uh uh is there any chance of we are doing buybacks or something? 54:14 54 minutes, 14 seconds Look, we haven't taken we haven't discussed this. We haven't you know we haven't you know I think we are we are focused right now on what we can execute 54:23 54 minutes, 23 seconds to be able to deliver a far superior growth in FI27 with expansion uh in just a bit that's 54:32 54 minutes, 32 seconds what we are focused at rest of the stuff that you talked about u we haven't experienced that in the past 54:40 54 minutes, 40 seconds maybe but we haven't really you know thought through it yet as well. Yes, we have sufficient cash on the company. Uh 54:48 54 minutes, 48 seconds but we haven't discussed any of these buybacks and stuff like that so far uh in our uh internal uh discussions or even board discussions. 54:57 54 minutes, 57 seconds Okay. Thank you. 55:00 55 minutes Thank you Anib. Uh in the interest of time, we'll just take one last question. 55:06 55 minutes, 6 seconds The next question is from uh Percy Pantiki. Percy, please unmute yourself. 55:14 55 minutes, 14 seconds Yeah. Hi. uh sir just wanted to understand this uh offline channel I think uh this quarter the growth is uh 55:22 55 minutes, 22 seconds higher than the overall India multi- channelannel growth right so just uh two questions from this uh one is uh uh what 55:31 55 minutes, 31 seconds really has changed or what initiatives have you taken to revive the growth in the offline channel and secondly if uh 55:39 55 minutes, 39 seconds that channel has really grown faster than 11% which is your overall growth That means the online channel has done a 55:46 55 minutes, 46 seconds singledigit uh growth. Uh so what is uh uh the reason why the online channel growth is so low? Uh given that the 55:55 55 minutes, 55 seconds overall category itself might be growing at 10% and uh organized share within that is increasing. Uh uh just wanted to 56:04 56 minutes, 4 seconds understand the reason for this low growth. Yeah sure. 56:11 56 minutes, 11 seconds So first u u you know sub talked about the initiative that we have taken uh in 56:18 56 minutes, 18 seconds the offline business and we are talking about this initiative since our last presentation that's basically changing 56:25 56 minutes, 25 seconds the product assortment from a width to a depth strategy uh that has really played out very well for for our offline 56:34 56 minutes, 34 seconds business especially uh uh the coco business uh and that has resulted ed in 56:41 56 minutes, 41 seconds a a significantly higher growth in our offline business which is around 15% in Q4 on a Y basis. 56:50 56 minutes, 50 seconds Uh in terms of online growth per se uh it's not single digit. So online GMBB growth is is roughly 56:59 56 minutes, 59 seconds uh uh 10 and a half% uh in Q4 and it's it's you know around the same same range 57:07 57 minutes, 7 seconds you know for all the four quarters between you know hovering around 11 to 12%. Uh however given the initiatives 57:14 57 minutes, 14 seconds that we have taken around faster deliveries both in terms of you know delivery through our rocket be network and for you know first cryquake which we 57:23 57 minutes, 23 seconds believe should be delivering at least 10% of our online orders by end of this year we believe we should be able to 57:31 57 minutes, 31 seconds deliver a much superior growth even for the online business in FI27 compared to 57:37 57 minutes, 37 seconds the FI26 online growth. So both the channels online you know offline sub talked about that uh the growth that we 57:46 57 minutes, 46 seconds have delivered in Q4 should continue even for the rest of the part of you know FI27 and uh online should also 57:54 57 minutes, 54 seconds deliver a much better growth better growth while the cost is is frontloaded. uh the cost of logistics is frontloaded. 58:02 58 minutes, 2 seconds Uh the results the actual the tangible results comes with a lag. Uh and hopefully you know uh in coming quarters 58:11 58 minutes, 11 seconds we we should see a much superior growth in online business also. Got it. 58:16 58 minutes, 16 seconds Mix hasn't changed for both offline online. GMBB mix hasn't changed what you see in FI26 over FI25. So there's there's no material change in that. So 58:24 58 minutes, 24 seconds believe with with the lag effect I think you should see a you know growth bumping back in in online as well. So compounding effect of that you should be 58:33 58 minutes, 33 seconds able to see that's why we are very confident FI27 uh India multi- channelannel uh GMBB growth will be uh much superior than the uh FI26. 58:43 58 minutes, 43 seconds Understood. Uh next question I had again India multi- channelannel business only given that uh there are the margin 58:50 58 minutes, 50 seconds pressures which you said can continue for few quarters more uh on a full year to full year basis uh FI27 versus FI26 59:01 59 minutes, 1 second do you think that the AIDA uh rupees critta can have a doubledigit uh growth? 59:11 59 minutes, 11 seconds Yes. Um if you look at it you know uh you're talking about India multi- channel only right? Yes. 59:18 59 minutes, 18 seconds Yes you will have it proceed it should uh effectively we are saying u you know the AITA 59:26 59 minutes, 26 seconds uh you know I would I would say the drop that we have seen because the manufacturing should be recovered fully by Q2. So we'll have three quarters of that benefit. So I don't think you know 59:35 59 minutes, 35 seconds that effect will be there. uh and uh uh yes the diapering effect will continue to uh may continue for the full year uh 59:43 59 minutes, 43 seconds but margin expansion from the 85% of our category uh will should continue as well uh and you know the uh overall growth 59:53 59 minutes, 53 seconds u that we are anticipating will be superior. So there and also you'll get a you know operating leverage uh also 1:00:00 1 hour coming out. So uh we we still believe that we should be able to do you know a much superior sort of a growth. Uh to answer your question 1:00:08 1 hour, 8 seconds both in terms of topline as well as bottom line right and one last question if I can uh 1:00:14 1 hour, 14 seconds squeeze in uh just wanted to uh uh sort of understand on a benchmark basis what you are doing on delivery versus how the 1:00:24 1 hour, 24 seconds competition is uh doing the delivery. So with with Rocket Base uh I I mean uh own delivery uh how would that compare to 1:00:32 1 hour, 32 seconds the structure of uh players like let's say uh uh Amazon, Nika, Flipkart etc. Do 1:00:40 1 hour, 40 seconds they also do their own delivery or are they completely outsourced the same way that you were let's say a year ago? Just 1:00:47 1 hour, 47 seconds wanted to understand uh uh uh uh I mean within the industry practice where do you fall on the spectrum? So peri I'll 1:00:56 1 hour, 56 seconds just answer in two points. One, I think you have to understand uh uh the BB and kids business is fairly complex from a 1:01:03 1 hour, 1 minute, 3 seconds uh you know supply chain perspective both from an warehousing perspective as well as from a uh you know uh first mile midmile last mile delivery standpoint. 1:01:14 1 hour, 1 minute, 14 seconds uh because we're dealing with uh a category where you have almost 10 g diaper pin to a 30 kg toy car that has 1:01:22 1 hour, 1 minute, 22 seconds to be delivered and uh and it's it's fairly complex to have that size spectrum in terms of um you know 1:01:30 1 hour, 1 minute, 30 seconds managing your supply chain from availability to you know uh and and very fragile products as well on top. So, so 1:01:38 1 hour, 1 minute, 38 seconds given that u you know nothing that what we do how we do will can be really compared with some third party you know 1:01:46 1 hour, 1 minute, 46 seconds either shipping companies or third party uh commerce players whether it is the names that you have mentioned so I won't really directly compare but what we have 1:01:55 1 hour, 1 minute, 55 seconds built in rocket base is a fairly asset light model um uh and uh they use the technologies completely in house uh so 1:02:04 1 hour, 2 minutes, 4 seconds the entire technology stack that we have built is being produced by dedicated partners that we have regional, local 1:02:12 1 hour, 2 minutes, 12 seconds who are uh you know and and uh we and and we manage the first mile and the mid mile uh although on a totally asset 1:02:20 1 hour, 2 minutes, 20 seconds light capex light uh basis um and uh and and and and the last mile partners are actually delivering and giving us a 1:02:28 1 hour, 2 minutes, 28 seconds superior uh way of delivering and giving the better customer experience than otherwise that we were being managed 1:02:36 1 hour, 2 minutes, 36 seconds through third party in our prior context. I hope I've been able to answer the uh you know the landscape fully 1:02:43 1 hour, 2 minutes, 43 seconds can't be compared but at the same time it was totally asset light utilizing first mile mid mile on our own again 1:02:49 1 hour, 2 minutes, 49 seconds asset light but uh uh fully uh dedicated partners who are only delivering our shipment not mix shipments of third 1:02:58 1 hour, 2 minutes, 58 seconds party and not other other you know uh brands and us. Uh that's not the case. 1:03:04 1 hour, 3 minutes, 4 seconds It's only dedicated first deliveries that the last mile partners make. 1:03:08 1 hour, 3 minutes, 8 seconds So this last mile partner uh would would it be dedicated for all the other players also? I mean uh or is it something unique to our business model? 1:03:21 1 hour, 3 minutes, 21 seconds Well, different players have different you know sort of models uh per se. I won't be able to say that you know in few cities people may have different 1:03:29 1 hour, 3 minutes, 29 seconds models. Infusities they may have a you know third party model or like if you utilize their third party player they may aggregate shipments of different 1:03:36 1 hour, 3 minutes, 36 seconds companies or different brands or different platforms. Uh so there are different models uh for different companies. There is no one model that every company follows. 1:03:47 1 hour, 3 minutes, 47 seconds Understood. Understood. So are we planning at some point of time to go 100% rocket bees or we will sort of stabilize at certain percentage and uh 1:03:56 1 hour, 3 minutes, 56 seconds keep doing business of the certain percentage as per the old methodology. 1:04:00 1 hour, 4 minutes We will continue to improve the coverage of rocket beans. It'll be very difficult to go to 100%. 1:04:06 1 hour, 4 minutes, 6 seconds Got it. Got it. Okay. That's all from me. Thank you and all the best. Thanks. Thank you. 1:04:12 1 hour, 4 minutes, 12 seconds Uh thanks Percy. Uh we still have some time in hand so we'll take the next last question. uh from Jiant Paris Ranka. 1:04:20 1 hour, 4 minutes, 20 seconds Jiant if you can unmute yourself. Hi am I audible? Yes. 1:04:25 1 hour, 4 minutes, 25 seconds Hi sir. Uh thanks for taking my question. So just just a couple of questions uh on India multi- channelannel. I know uh uh the basic 1:04:34 1 hour, 4 minutes, 34 seconds thought process behind rocket bees and quick uh was to let's say increase uh both customer satisfaction and from an 1:04:42 1 hour, 4 minutes, 42 seconds ordering perspective get back uh let's say some of the pains which customers had of delayed delivery. just from from 1:04:49 1 hour, 4 minutes, 49 seconds from your initial uh takeaways over the past two quarters, if you could share uh on places where you've implemented both 1:04:56 1 hour, 4 minutes, 56 seconds quick and rocket bees, are you seeing higher transaction of orders uh uh versus places where uh rocket bees is 1:05:04 1 hour, 5 minutes, 4 seconds not there? Is that giving you confidence uh heading into FI27? And and the second part uh second question is uh is is on 1:05:12 1 hour, 5 minutes, 12 seconds the international business. Has there been some part of the international business also impacted by the Middle East uh which has led to the slow 1:05:20 1 hour, 5 minutes, 20 seconds singledigit revenue growth and uh uh is that uh also leading uh I mean I know on the cost side you have been working on 1:05:29 1 hour, 5 minutes, 29 seconds uh uh getting the margins down to uh at least a break even but just if you could impact is has that also impacted some 1:05:37 1 hour, 5 minutes, 37 seconds movement towards break even on the international business? Jent I will let Abinov take the second question but the first question answer is I've the same 1:05:45 1 hour, 5 minutes, 45 seconds question was asked by the so uh answer is that we are seeing incremental growth 1:05:52 1 hour, 5 minutes, 52 seconds uh in uh the cities as well as uh in the catchment that where we are serving both rocket bees and quick so therefore we'll 1:06:01 1 hour, 6 minutes, 1 second continue we have clarity of what we are executing we are watchful of the metrics service metrics that Gotham also spoke 1:06:09 1 hour, 6 minutes, 9 seconds about we'll continue to improve on that and bring more area under the curve and uh build that incremental growth as we go along. So that's an answer to your 1:06:18 1 hour, 6 minutes, 18 seconds first question. Second question, I'll let Abu speak on the Middle East. 1:06:22 1 hour, 6 minutes, 22 seconds Hi Jen. So your second question is related to the current evolving situation and how it impacts the business. Is that correct? 1:06:29 1 hour, 6 minutes, 29 seconds Right. 1:06:30 1 hour, 6 minutes, 30 seconds So Jent uh uh the situation we all know what is uh what is happening. However, uh you know our um it has been a little 1:06:40 1 hour, 6 minutes, 40 seconds bit of a moderation in consumer sentiment. I'm not going to uh stay uh you know say anything else about that. 1:06:46 1 hour, 6 minutes, 46 seconds But yes, there has been and there is some uh you know uh you know import complexities also as is happening as we 1:06:53 1 hour, 6 minutes, 53 seconds speak. However, I think um fundamentally you know for our business uh and our 1:06:59 1 hour, 6 minutes, 59 seconds goalpost as we've shown in the last so many quarters now has been uh you know our our our sort of a path is towards 1:07:09 1 hour, 7 minutes, 9 seconds sustainable growth. So we are continuously focusing on our topline optimization and gross margin expansion. 1:07:16 1 hour, 7 minutes, 16 seconds uh you know our home brands are you know are the most important one of the most important levers to improve gross 1:07:23 1 hour, 7 minutes, 23 seconds margins uh this situation you know is uh is beyond anyone's control so to speak but this is also an opportunity as the 1:07:30 1 hour, 7 minutes, 30 seconds way I look at it or the way we look at it internally is also an opportunity you know uh when uh when uh we can optimize 1:07:38 1 hour, 7 minutes, 38 seconds further on our you know processes within uh our discounting strategies our uh you 1:07:44 1 hour, 7 minutes, 44 seconds know marketing uh costs and reaching out to the right consumer uh who has who 1:07:51 1 hour, 7 minutes, 51 seconds will potentially give us give us a longer sort of a LTV uh that we desire and uh while we do all of this also 1:07:59 1 hour, 7 minutes, 59 seconds improve our home brand mix in the in the top line that we generate. So this is a unique opportunity but our focus is you 1:08:07 1 hour, 8 minutes, 7 seconds know is the same growing and not chasing a topline at the expense of uh you know obviously reduced cost or very high 1:08:15 1 hour, 8 minutes, 15 seconds marketing expense while you know we hope that this situation ends sooner than later but I think uh there are a lot of 1:08:23 1 hour, 8 minutes, 23 seconds learnings for us uh in terms of how how we optimize and how we uh you know continue to on our path to sustainable growth. 1:08:32 1 hour, 8 minutes, 32 seconds Sure. Just to conclude, we will continue to reduce our losses. What we did in FI26, 1:08:39 1 hour, 8 minutes, 39 seconds we will continue to do the same in FI27 also. 1:08:43 1 hour, 8 minutes, 43 seconds Sure, fair enough. So if I just may squeeze in one last question uh uh just on the relevance of the 6 to 12 years 1:08:51 1 hour, 8 minutes, 51 seconds age which you've extended your uh category if you could just give us uh in terms of how that is doing well uh in 1:08:58 1 hour, 8 minutes, 58 seconds the past couple of quarters uh just uh that's more I'm just trying to understand from from a retention of customer point of view uh how is that uh 1:09:07 1 hour, 9 minutes, 7 seconds shaping up if you could just give some thoughts on that. So Jen uh I'll probably take up that question. Um so we 1:09:16 1 hour, 9 minutes, 16 seconds are seeing a positive traction and we continue to see a uh a positive traction in 6 to 12 that remains the fastest 1:09:24 1 hour, 9 minutes, 24 seconds growing part of our business when it comes to age group of children. Um as we continue and basis that we continue to 1:09:32 1 hour, 9 minutes, 32 seconds build our assortment which is more conducive. So overall it is uh it is good news on that front and uh at the 1:09:40 1 hour, 9 minutes, 40 seconds same time u uh if you there there's a slide in this uh in the supplementary slides which shows our long-term cohorts 1:09:49 1 hour, 9 minutes, 49 seconds being very strong for like a consumer who's been acquired 10 years back continues to transact with us. There's a good segment of that consumer. So all of 1:09:58 1 hour, 9 minutes, 58 seconds that uh indicates towards a good positive future on the 62 segment for us. 1:10:02 1 hour, 10 minutes, 2 seconds Sure. Thanks. Thanks and all the best sir. 1:10:06 1 hour, 10 minutes, 6 seconds Thank you Jen. Uh that was the last question. Uh I'll just hand it over back to the management for any concluding remarks. 1:10:14 1 hour, 10 minutes, 14 seconds No thank you everyone. Uh thank you for your time and so much pleasure. Thank you. 1:10:21 1 hour, 10 minutes, 21 seconds Thank you. Thank you.