Brand Concepts Ltd — Q3 FY26

Brand Concepts Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=iaGiX4GMr-A Published: 2 months ago

0:03 3 seconds Ladies and gentlemen, on behalf of Captify Consulting Investor relations team, I welcome you all to the Q3 and 9 0:11 11 seconds months FI26 post earnings conference call or brand concepts limited. Today on the call from the management team we 0:19 19 seconds have with us, Mr. Abhinav Kumar, full-time director and CEO, Mr. Kalyan Maheshwari, president finance, Mr. Mr. 0:26 26 seconds Manish Peswani, Vice President Commercial and Mr. Nabindu Chakraarti, CEO. As a disclaimer, I would like to 0:33 33 seconds inform all of you that this call may contain forward-looking statements which may involve risk and uncertainties. 0:40 40 seconds Also, a reminder that this call is being recorded. I would now request the management to detail us about the business and performance highlights for 0:47 47 seconds the period ended December 2025, the growth perspective and vision for the coming year. post which we will open the floor for Q&A over to the management team. 0:58 58 seconds Hi, very good afternoon everyone. Thank you for joining uh the call. So just 1:04 1 minute, 4 seconds giving a few highlights uh in terms of the revenue we've grown strongly by 23%. 1:12 1 minute, 12 seconds Uh you would also see a uh expansion in the gross margins. uh but that is primarily from the fact that the 1:21 1 minute, 21 seconds manufacturing is coming inhouse. Uh however the uh the expenses of the same 1:27 1 minute, 27 seconds is is uh goes below the uh in below in the line items and hence probably the expenses would look right now a little 1:35 1 minute, 35 seconds swelled up. Um uh overall I think it's been a good quarter 1:43 1 minute, 43 seconds for us. We've expanded, we've gained more market share and uh you know in terms of our offline business we've 1:51 1 minute, 51 seconds we've fared fairly well online of course we continue to do well. Our B2C which is a initiative that we have taken uh the 1:59 1 minute, 59 seconds B2C business has been growing pretty well. uh we've grown uh by more than 18% 2:06 2 minutes, 6 seconds in our B2C business from last year and uh uh which is selling to the end consumer directly through various 2:14 2 minutes, 14 seconds platforms. Um going forward we are also uh sort of focus our focus areas are going to be 2:23 2 minutes, 23 seconds also optimizing and efficiency in various different channels. Um while one 2:30 2 minutes, 30 seconds phase has been where we've been expanding uh now I think we'll be entering a phase where uh we'll also 2:37 2 minutes, 37 seconds sort of optimize our efficiencies across various different channels uh specifically uh pertaining to the large 2:44 2 minutes, 44 seconds format stores. So that's a focus area for us. Um this quarter uh would also the the 2:53 2 minutes, 53 seconds existing current quarter which is Q4 will also mark a major milestone for us. 2:59 2 minutes, 59 seconds Uh we're going to be launching uh the two new brands that we have signed which is super dry as well as off-white. Uh 3:08 3 minutes, 8 seconds this quarter will see the initial launch of these brands. So I think uh this entire year has been very very 3:15 3 minutes, 15 seconds significant for us. uh we've aspired to become a house of brands and we've added new brands um and we've successfully 3:24 3 minutes, 24 seconds launched a couple of them and now we are going to launch the next two brands from our portfolio. So overall uh I think uh 3:34 3 minutes, 34 seconds uh we happy with with uh the space that we are in and uh from here I think the company sitting on the right base to 3:42 3 minutes, 42 seconds sort of capitalize on the future uh prospects. 3:47 3 minutes, 47 seconds Uh that's from us. Uh I'm happy to take questions because I know the question and the Q&A round takes a longer time. 3:54 3 minutes, 54 seconds So opening the round for Q&A. 4:04 4 minutes, 4 seconds All the participants who wish to ask the question may use the option of raise hand and if unable to do so you can put 4:11 4 minutes, 11 seconds your question in the chat 4:22 4 minutes, 22 seconds until the question cube assembles I'll ask a question uh where is the competitive intensity now uh between the 4:30 4 minutes, 30 seconds incumbents in the travel and luggage space. I think that is one question uh that everybody wants to know about. 4:36 4 minutes, 36 seconds Secondly is uh how are the pricing trends now behaving and third again related to this is that there are other 4:44 4 minutes, 44 seconds players also who've started advertising marketing different brands uh coming into luggage etc. uh how do you see that 4:52 4 minutes, 52 seconds as competition and what are you doing to face to that? 4:56 4 minutes, 56 seconds So I think the competition the competitive intensity is still very very high. Uh there are newer players still entering the market and uh since they 5:06 5 minutes, 6 seconds are in the unlisted space uh and this sector has become an interesting sector for everyone and hence uh you know raising capital uh has been fairly easy. 5:18 5 minutes, 18 seconds So in fact the all the competition you name a brand and everybody today has raised funds right from uh the new 5:27 5 minutes, 27 seconds entrance like whether it is Mocobara assembly uh uppercase Yumi uh national 5:35 5 minutes, 35 seconds miles all of these are obviously funded companies right and hence the competition intensity is there but I 5:43 5 minutes, 43 seconds believe u you know competition is always good for any uh any category you know ultimately competition grows the overall 5:52 5 minutes, 52 seconds category uh you might feel the heat for a couple of quarters or a couple of years but uh ultimately it results in 6:00 6 minutes expanding the category I've always been saying uh like way back I used to say that this is a sort of a white space 6:08 6 minutes, 8 seconds industry uh but now and hence it was also we had a a huge u you know um uh 6:18 6 minutes, 18 seconds gray market or uh that kind of a business over here which was not a branded business which was an unbranded 6:26 6 minutes, 26 seconds business. So now this entire category with all these uh players coming in and marketing happening everything happening 6:35 6 minutes, 35 seconds product development happening uh so I think uh it's a it's a very interesting phase for for our industry going forward 6:44 6 minutes, 44 seconds over the years to come. I think uh this is going to expand the market, expand the branded market and uh the organized 6:52 6 minutes, 52 seconds sector is is going to benefit from all of this. But currently yes lot of these brands, lot of these companies they 6:59 6 minutes, 59 seconds continue to burn and hence uh there is a bit of a pricing pressure which is there. Uh however uh I believe that you 7:08 7 minutes, 8 seconds know we've also started with our own manufacturing also coming into place. I think we are well poised to uh sort of 7:16 7 minutes, 16 seconds tackle this. Um and uh in terms of our premium and super 7:22 7 minutes, 22 seconds premium brands uh there we are seeing a lot of traction even at the the upper end of the pricing spectrum. So uh which 7:31 7 minutes, 31 seconds gives us a lot of confidence that uh you know if if your brand is right the product is right uh the customer is 7:38 7 minutes, 38 seconds willing to pay the price you know. So uh I think that's the clear strategy that we are taking with our mastage brands. 7:46 7 minutes, 46 seconds Obviously we'll have to play the price game but with our premium and super premium brands I believe uh going 7:52 7 minutes, 52 seconds forward we can uh we can sort of uh uh take the take the premium route and be a little insulated from those pricing 8:01 8 minutes, 1 second pressures. So yeah and um again reflecting upon your last question in terms of marketing we've also upped our 8:10 8 minutes, 10 seconds marketing game uh we've started uh sort of uh doing marketing for individual brands uh 8:18 8 minutes, 18 seconds earlier our marketing spend was was lower. We've increased increased that in our budget digitally. We are very very 8:27 8 minutes, 27 seconds strong now. We present across uh you know our digital presence is increasing 8:33 8 minutes, 33 seconds day by day. So I think uh you know as a company we are we are very well poised to tackle any sort of uh competition which comes our way. 8:44 8 minutes, 44 seconds I hope I've answered your question. Yes. Yes. 8:52 8 minutes, 52 seconds Thank you. Uh we have a question from chat from uh Anubhav Sha. He's asking, "Thanks for detailing the key pointers on uh slide one in your presentation. 9:04 9 minutes, 4 seconds Can you update us on the progress of Juicy Coch? That's his first question. 9:09 9 minutes, 9 seconds Yeah. So Juicy Ku very very happy to share. We are already uh you know for example uh this quarter uh it has done 9:18 9 minutes, 18 seconds really well uh we are almost at a run rate of now uh 17 to 18 crores at 9:25 9 minutes, 25 seconds wholesale you know uh for the annual uh year so this quarter we've done almost 9:31 9 minutes, 31 seconds 4.4 4 crores uh in one quarter considering the fact that we launched in Q1 and by Q3 we've reached this kind of 9:40 9 minutes, 40 seconds a run rate uh I think uh it it testifies our belief in the brand and uh I I see 9:49 9 minutes, 49 seconds this as a as a very very good opportunity for us. So uh it's going good. Touch hood uh the brand is getting 9:57 9 minutes, 57 seconds established very well. We expanding uh offline online everywhere. So digital digitally we are now more poised to 10:06 10 minutes, 6 seconds expand Juicy Couture a little more digitally which should unlock uh the potential of the brand. 10:14 10 minutes, 14 seconds Uh his next question is can you also share the thought process for off-white and where are we on that front? 10:23 10 minutes, 23 seconds So offered for us is our first for into the luxury space and uh uh we are we've signed our first store uh in Bangalore. 10:33 10 minutes, 33 seconds Uh we'll be doing the brand launch in Bangalore. Uh Mall of Asia would be the first store uh which hopefully uh we 10:41 10 minutes, 41 seconds should be able to launch it in March. Uh actually uh is a very very strategic uh 10:50 10 minutes, 50 seconds this thing for us. It opens up whole new horizons for us. Uh so it's a niche 10:57 10 minutes, 57 seconds segment as I've always said that uh you should never shy away from experimenting but you should never bet your shirt on 11:05 11 minutes, 5 seconds the experiment. So experimenting in a niche segment is always better rather than experimenting in a mass segment where you're dealing with huge volumes, 11:13 11 minutes, 13 seconds huge investments and all of that. So u this will give us an understanding of the luxury industry. give us an 11:20 11 minutes, 20 seconds understanding of apparel, give us an understanding of various different categories. So until now whatever response that we're getting for 11:28 11 minutes, 28 seconds off-white is fabulous. So u you know the all the the luxury retailers the premium 11:36 11 minutes, 36 seconds retailers of the country they are they're absolutely on to you know keep the brand. So we've signed contracts 11:43 11 minutes, 43 seconds with them. We've already signed the MUS with with all of them and uh you will find uh off-white in in various 11:51 11 minutes, 51 seconds different multiple channels. So till now very very happy touchwood with uh the response that we're getting. We've not 11:58 11 minutes, 58 seconds launched the brand yet but uh there's a lot of uh expectation from the brand getting very positive feedback. 12:09 12 minutes, 9 seconds And sir uh he's asking by when do you think this two and super drive will start contributing to the revenue. 12:16 12 minutes, 16 seconds I think we huh? 12:23 12 minutes, 23 seconds Yeah. I I think give it uh uh about uh two seasons at least you know. So uh 12:31 12 minutes, 31 seconds this is going to be the first season spring summer I think from fall winter onwards uh we'll start seeing the traction you know. So first season you 12:40 12 minutes, 40 seconds go small uh you buy limited you launch uh you It's more of you know setting up 12:49 12 minutes, 49 seconds right so from second season onwards you start seeing the true colors as we seeing in Juicy as well. So I think from 12:56 12 minutes, 56 seconds Q3 onwards again uh you'll start seeing some color happening in in off-white and super dry both. 13:06 13 minutes, 6 seconds Thank you. Uh we have another question in the chat from uh Ashwaryia. Yeah. 13:15 13 minutes, 15 seconds What capacity are we at in our manufacturing? What is the current utilization rate? What is the incremental ebitita saving eventually from there? 13:26 13 minutes, 26 seconds So that's our first question. 13:28 13 minutes, 28 seconds Yeah. The capacity that we are at currently the lines which are operational we are at a capacity of about 25,000 26,000 pieces a month. And 13:37 13 minutes, 37 seconds uh in fact in one of the months we have actually produced uh full 100% capacity also but uh on an average we're doing 13:47 13 minutes, 47 seconds about 20 22,000 pieces a month uh because of multiple changes or whatever line changes and everything. uh in terms 13:55 13 minutes, 55 seconds of EIA expansion uh we had hoped for a 10 to 15% AITA expansion 14:02 14 minutes, 2 seconds um from our own manufacturing in that uh uh category. However, uh looking at the 14:10 14 minutes, 10 seconds current pricing uh and the competition uh over there the price the pricing competitiveness currently going in the 14:17 14 minutes, 17 seconds market uh we are passing on that benefit to the end consumer. 14:23 14 minutes, 23 seconds So uh I think uh you know over the years once we reach economy of scale that's when we'll start 14:32 14 minutes, 32 seconds seeing uh the true benefit and the true color of our own manufacturing. 14:40 14 minutes, 40 seconds Uh next question is uh how is the inventory situation of finished goods or semi-finish goods and how do we see the sales flow moving? 14:50 14 minutes, 50 seconds How do you see the sales? Sales flow moving. Sales flow moving. 14:58 14 minutes, 58 seconds Okay. Uh yes. 15:01 15 minutes, 1 second So uh I think uh inventory right now if you will see obviously it is uh uh it's 15:08 15 minutes, 8 seconds increased from uh the last uh financial year March ending whatever inventories we had. uh currently the number of days 15:17 15 minutes, 17 seconds of inventory has increased from there but it is owing to all the new brands that you're taking right now it's obviously uh in the beginning you'll 15:25 15 minutes, 25 seconds have to stock up so the inventories and new brands plus the new manufacturing as well you need to 15:32 15 minutes, 32 seconds have raw materials you need to have all of that so initial inventory swell up is because of this but I see all of this settling down I think in the next two to 15:41 15 minutes, 41 seconds three quarters we'll start settling all of this down in terms terms of the revenue or the sales flow if I say u I think we are you know delivering a a 15:50 15 minutes, 50 seconds healthy 23 24% kind of a growth right now and uh uh I think uh considering our size 15:59 15 minutes, 59 seconds considering the competition considering all of this I think it's a very very good growth that we're delivering so u 16:06 16 minutes, 6 seconds we are happy with this growth uh now the phase now our focus is going to be a little more on improving the efficiency 16:13 16 minutes, 13 seconds of the channels rather than uh just going on for growth but at the same time uh not to forget that with the new 16:22 16 minutes, 22 seconds brands also coming in I think uh growth is not a challenge for us 16:30 16 minutes, 30 seconds so there's another question from her are we doing anything with your uh own brand vertical also since uh others are also 16:38 16 minutes, 38 seconds trying to build their own brand don't you think it could be a good strategy to start building up your own brand as well using our existing network. 16:48 16 minutes, 48 seconds uh so uh you know building our own brand yes I think it is it is there on our uh 16:56 16 minutes, 56 seconds uh list uh today or tomorrow we would for sure do that but right now I feel it's not the right time uh because uh 17:05 17 minutes, 5 seconds you know creating a new brand and when you're competing against uh all the the funded players I think in the last year 17:14 17 minutes, 14 seconds or this year itself in our segment I I think there's been a fund raise of more than 1,000 crores right put together. So 17:23 17 minutes, 23 seconds uh people putting in money burning very very heavily uh to just build the brand 17:31 17 minutes, 31 seconds uh while they're achieving a certain top line their bottom lines are uh all haywire but since they're not in the 17:37 17 minutes, 37 seconds listed space it's a private equity space so that's how this entire thing is operating so uh I believe as a company 17:46 17 minutes, 46 seconds we should uh hold on uh focus on we've taken new brands. These 17:53 17 minutes, 53 seconds brands are already they resonate very well with the consumers and there is enough and more potential right now with all these brands you know. So with these 18:02 18 minutes, 2 seconds brands itself we can easily cross a 500 600 crores u in fact these brands are good enough for a,000 cr kind of a 18:09 18 minutes, 9 seconds revenue as well. So we're not going to right now focus on that. We want to do one thing at a time do justice to it. 18:18 18 minutes, 18 seconds We've just expanded into manufacturing. 18:20 18 minutes, 20 seconds We've just taken new brands. All of this takes a toll on uh your resources, your balance sheet, everything. So, we want 18:28 18 minutes, 28 seconds to focus, we want to stay very very focused, get this right, get this moving. Once we cross the 5 minutes, 600 18:35 18 minutes, 35 seconds crores, then if I take out and build a plan on 10 20 crores, probably my balance sheet will be able to take that plan. Right now, I don't want to burden 18:43 18 minutes, 43 seconds too much uh the balance sheet. So uh it is there on our agenda but not right now. 18:52 18 minutes, 52 seconds Thank you sir. There is another question from another participant uh in the chat Ashi Sharma. He's asking can you throw 19:01 19 minutes, 1 second some light on bag line? This time your presentation is missing the slides on number of stores. How many new stores did we open in Q3 and what's a target for next year? 19:13 19 minutes, 13 seconds So we haven't opened any new store in Q3. uh as I said we had uh uh done a new 19:21 19 minutes, 21 seconds identity we launched a new identity of bag line in in Q2 and we are studying that results we studying the uh this 19:30 19 minutes, 30 seconds thing of it we are now replicating that identity in in a new store we are expanding that so if we have for example 19:38 19 minutes, 38 seconds 500 600 square ft in the same mall we asking a uh a bigger uh area so that we 19:45 19 minutes, 45 seconds are able to showcase all our brands and do justice. So, uh but in the meanwhile, we've obviously opened single brand stores. So, we've opened Juicy Couture. 19:56 19 minutes, 56 seconds Um this quarter, we'll be opening Off-White. We're opening another Juicy Couture store and we are also 20:03 20 minutes, 3 seconds contemplating that uh should we also look at you know opening more of monogram stores as well. So, for 20:12 20 minutes, 12 seconds example, Tommy Hilfiger Travel. So in totality today we have about 56 stores out of which 50 stores are bag light, 20:19 20 minutes, 19 seconds four stores are Tommy Travel Gear and two stores of Juicy Couture. Now the result that we are seeing in the two stores of Juicy Couture and four stores 20:27 20 minutes, 27 seconds of uh Tommy Hilfiger uh we feel that uh you know with those results uh mono 20:35 20 minutes, 35 seconds brand stores because it gives you a complete brand experience. So uh we contemplating with that and hence you 20:43 20 minutes, 43 seconds might probably see opening of more mon stores also in the upcoming quarters but 20:50 20 minutes, 50 seconds uh uh you know we're not in a hurry to open a lot of stores. 50 55 stores are good enough. We are as I said the focus is more on improving the channel health. 21:00 21 minutes So we'll be going through each and every store cutting down the tail. You always have a tail in retail right? So uh 21:08 21 minutes, 8 seconds you'll always have some uh best performing stores then you have a average and then you have those lagards 21:15 21 minutes, 15 seconds and time and again you need to cut that tail you know so that uh you are still very efficient and robust. So uh you 21:24 21 minutes, 24 seconds will see that in the next couple of quarters uh we are actually in the process of cutting the tail. So but we will not shy away from opening new 21:32 21 minutes, 32 seconds stores. If we if you're getting a good property, we are uh we evaluating all the properties. We evaluating all the new developments. So you will see announcements of new stores as well. 21:45 21 minutes, 45 seconds His next question is uh where do you see your revenue margin profit profile for the next year and next 3 years? You can 21:53 21 minutes, 53 seconds share growth rate as well since you may not want to give absolute targets. 22:00 22 minutes So I think I believe uh the growth rate should be uh anywhere between 20 25% 22:07 22 minutes, 7 seconds uh caggr for the next 3 years. I think we can easily achieve that. Uh so we should be on that path of doing a 20 22:15 22 minutes, 15 seconds 25%. And uh I think from next year onwards you'll start seeing the as an uh from FY27 22:24 22 minutes, 24 seconds which is next year uh I would be I I believe that you'd be seeing a uh a very 22:33 22 minutes, 33 seconds very good improvement in our u in our bottom line in our margins uh because the brands would have sort of settled uh the factory would have sort of settled. 22:44 22 minutes, 44 seconds So uh we expect a good uh uh you know increase in our bottom line. So it's 22:52 22 minutes, 52 seconds difficult for me to put down put it down as a percentage but I think uh in the next 3 years we would aim to be about 12 23:01 23 minutes, 1 second to 13% a bit up and uh currently our borrowings have also gone up obviously to fuel uh all of this expansion. So we 23:11 23 minutes, 11 seconds are currently at a debt equity ratio of 1 1 is to 1.5. Uh I believe an ideal is 1 is to1. So uh in the due course of 23:20 23 minutes, 20 seconds time whenever it is required and and for that itself actually promoters have also subscribed and we are getting in that equity coming in. So with all of this 23:29 23 minutes, 29 seconds the also the aim is that how do we bring our interest costs down because today uh the interest costs are also uh because 23:37 23 minutes, 37 seconds of the borrowing the interest costs are on the higher side. So once we start uh pruning all of this I think you you'll 23:45 23 minutes, 45 seconds start seeing a very very healthy uh pat margin in the next two to three years. 23:53 23 minutes, 53 seconds Thank you. We have another question from Pawan Sher. Pan you can unmute and go ahead. 23:59 23 minutes, 59 seconds Thank you for the opportunity. So sir, can you explain a bit more on your statement that you have executed a full brand license for JC apparel? 24:09 24 minutes, 9 seconds Yeah. So JC when we launched uh we have taken the license for uh 24:16 24 minutes, 16 seconds handbags, bags are the category all our categories which is bags and accessories. We had taken the license for that but we had taken a special uh 24:26 24 minutes, 26 seconds sort of permission. Our contract also entailed that we could open Juicy Couture stores 24:33 24 minutes, 33 seconds where we could keep apparel and other categories as well but we had not signed 24:40 24 minutes, 40 seconds the license for it you know so it was just a retail license that we had that we could open stores. Um once we 24:48 24 minutes, 48 seconds launched our first store and we launched the apparel in that store, we launched the apparel on our on our website as 24:55 24 minutes, 55 seconds well and we got stocked out in like no time. So the demand for apparel was amazing. Uh the quality of apparel was 25:03 25 minutes, 3 seconds amazing. So looking at that response uh and because we are investing, we've already invested quite heavily into that 25:11 25 minutes, 11 seconds brand. We have the brand for we had our initial contract was for 15 years. So we said we should go ahead and block the 25:20 25 minutes, 20 seconds apparel category as well with us. So hence we went ahead and now we signed the the master license for apparel as 25:28 25 minutes, 28 seconds well. So entire apparel, handbags, accessories all of these categories are now with us. Um there are a couple of categories which which obviously we've 25:36 25 minutes, 36 seconds not signed because we are not uh experienced from masters in that category. But the apparel, handbags, accessories, all of this is with us. And 25:45 25 minutes, 45 seconds now that contract is also almost 20 years. So uh so that's actually a good news uh that we have. 25:54 25 minutes, 54 seconds Okay, got it. So my other question is that can you throw some lights on status of UCB like what size have we reached in 26:02 26 minutes, 2 seconds this brand and by when do we do you see it becoming a 100 cr brand? 26:08 26 minutes, 8 seconds uh so UCB I'm actually happy to share in Q3 u you know uh it's a brand which has 26:16 26 minutes, 16 seconds grown the maximum so we've done almost a 50% growth year on year from last Q3 26:22 26 minutes, 22 seconds right so uh I think we are now beginning to see green shoots in UCD as well though I would still say that we we 26:30 26 minutes, 30 seconds doing well uh last year also we did well uh this year I think we'll end up u at a 26:37 26 minutes, 37 seconds growth of almost between 30 35% uh for the annual and uh at a retail 26:46 26 minutes, 46 seconds value if I talk about uh we'll be close to 65 70 cr at retail and hence the 26:53 26 minutes, 53 seconds wholesale would be close to about a 35 38 uh odd crores between 35 to 40 odd 27:00 27 minutes crores is what we'll be ending up with if everything goes well I think uh you 27:08 27 minutes, 8 seconds another I think another 3 to four years it can easily 3 years I think it can uh become 27:15 27 minutes, 15 seconds a 100 cr brand okay and one more question actually regarding your uh depreciation what led 27:22 27 minutes, 22 seconds to a lower depreciation in Q3 is there any change in your depreciation policy yes so earlier we were calculating you 27:30 27 minutes, 30 seconds know we've been conservative uh always uh when it comes to our accounting In finance, we've always been very very 27:38 27 minutes, 38 seconds prudent. Uh so we always adopted a WDB method, right? Uh which leads to higher 27:45 27 minutes, 45 seconds depreciation in when you have uh higher capeex. So it was advised by uh our 27:53 27 minutes, 53 seconds consultants and our auditors. We check with them and we also check what are all the other companies doing and I think 28:02 28 minutes, 2 seconds everybody takes a SLM method. Um so and because these years are going to be KEX heavy uh hence uh we've changed our 28:11 28 minutes, 11 seconds policy from the WDB method to a SLM method. 28:16 28 minutes, 16 seconds Okay. And also your interest and also your in uh interest cost has moved up. So where are we in our working capital debt versus the end of H1? 28:28 28 minutes, 28 seconds Uh I think I already mentioned that we are at a uh 1.5 debt equity ratio. Uh so 28:36 28 minutes, 36 seconds working capital days working capital days you're saying is it working capital debt debt debt? 28:45 28 minutes, 45 seconds Yeah. So we are about uh in terms of working capital debt we have about 100 crores uh of CC now uh including 28:53 28 minutes, 53 seconds everything the factory retail division all of that. Okay. Okay. That's it from my side. 29:01 29 minutes, 1 second Thank you so much. Thank you. 29:05 29 minutes, 5 seconds Thank you. We have another question from Ashwary Amishra. Ashwara, you can unmute and go. 29:12 29 minutes, 12 seconds Listen sir, I would like to know would you be able to share the revenue breakup among your key categories for Q3 and 9 29:19 29 minutes, 19 seconds months where you are seeing significant change and which category do you think can scale up the volumes from here? 29:28 29 minutes, 28 seconds Uh so I think so current Q3 figures if I talk about like uh you know travel gap is roughly around 60%. 29:38 29 minutes, 38 seconds uh smaller the goods is roughly about 33%. 29:42 29 minutes, 42 seconds And the balance uh 6 to 7% is now women handbags. Uh so we seeing green shoots 29:50 29 minutes, 50 seconds and women handbags. I I always mentioned that uh we are lower over there and hence now we gaining traction over 29:58 29 minutes, 58 seconds there. So I think all the three categories have potential to grow. Um you know and uh 30:06 30 minutes, 6 seconds I would I would be pegging my bets on all the three categories. I don't see any rhyme or reason why any of the categories uh would not grow from here. 30:16 30 minutes, 16 seconds Handbag is a massive massive opportunity. Uh I think every brand that I speak to today, every fashion brand um everybody is focusing on women handbags. 30:28 30 minutes, 28 seconds It's a massive category, massive value unlock. So I think we are there uh in the right place at the right time. Uh 30:37 30 minutes, 37 seconds and we'll see a lot of green shoots happening over there. Travel gear and smaller the goods as I said they little 30:43 30 minutes, 43 seconds more mature categories. Um they're already there. So we'll continue to grow as the market expands. 30:54 30 minutes, 54 seconds So I would also like to know is there any update on the CSD channel? Have we entered into it or we are still working on the same? 31:04 31 minutes, 4 seconds We we entered we entered uh like this this is going to be our second full year of operations. So uh and touchwood I 31:13 31 minutes, 13 seconds would say that uh uh is doing really really well over there. We've in fact uh very recently executed product changes 31:21 31 minutes, 21 seconds uh certain pricing changes. So the efficiency also of that channel I believe in the next year uh would be far better. 31:31 31 minutes, 31 seconds So very very that should it's going very well. 31:36 31 minutes, 36 seconds And what kind of sales are we doing there? 31:40 31 minutes, 40 seconds Um okay so I think this year we'll be ending between uh around close to 40 31:48 31 minutes, 48 seconds crores at wholesale topline uh and uh where is it clubbed in our 31:55 31 minutes, 55 seconds revenue mix sorry traditional trade traditional trade okay thank you so much 32:04 32 minutes, 4 seconds traditional trade last year the the figure was about 26 27 crores we ended at 26 27 this year we ending at close to a 40. 32:17 32 minutes, 17 seconds Thank you. We'll take the next question from Ashish Sharma. Ashish, you can go ahead. 32:24 32 minutes, 24 seconds Good afternoon sir. With current investment in manufacturing and cocoa store expansion, what is the expected habit margin tragedy for FI26 and FI 27? 32:37 32 minutes, 37 seconds I think I already answered this uh Ashish uh with uh uh you know the 32:44 32 minutes, 44 seconds manufacturing but I'll just repeat with manufacturing uh we had expected a 10 to 15%. So manufacturing 32:53 32 minutes, 53 seconds essentially would give you a 10 to 15% uh jump in terms of your margins but 33:00 33 minutes manufacturing is we have to remember that manufacturing is only for hard luggage and backpack u which is close to 33:07 33 minutes, 7 seconds about 50% of our overall turnover. So uh you can do the maths but currently with 33:14 33 minutes, 14 seconds the pricing pressures and everything we are passing on this benefit to the end consumer 33:22 33 minutes, 22 seconds right so as the economy of scale happens right now you know the plant can go up to 33:30 33 minutes, 30 seconds 2.5 lakh pieces a month you know but uh currently we operating at onetenth of that right but your building your setup 33:38 33 minutes, 38 seconds your everything is over And hence initially the uh you know it's frontloaded the the expenses are 33:46 33 minutes, 46 seconds frontloaded. Uh with the economy of scale I think uh you know the margin intake will start getting better and 33:53 33 minutes, 53 seconds that's when you'll start seeing it uh adding to the bottom line. 34:03 34 minutes, 3 seconds And uh what digital marketing initiatives are being scaled to support online growth and customer retentions? 34:10 34 minutes, 10 seconds I think uh digitally we are now very very active. We have we active not only on the so our performance marketing game 34:17 34 minutes, 17 seconds is very good and the kind of robas that we generate uh is actually very very good. So in in certain brands we've 34:24 34 minutes, 24 seconds generated a robas of 8 to 10 as well which is sort of unheard of uh in the industry but touchwood uh because the 34:32 34 minutes, 32 seconds brand's charm the brand's uh power is is already established so hence we get a benefit uh in our marketing as well 34:41 34 minutes, 41 seconds right so uh one is that we is uh we are now looking at uh you know going brand by brand in terms of marketing so this 34:51 34 minutes, 51 seconds year you will see major investment happening even in Tommy Hilfiger. Um we've we've till date we've 34:58 34 minutes, 58 seconds not done a brand specific heavy investment in Tommy Figure and considering it is our largest brand. Um 35:08 35 minutes, 8 seconds I think the the this thing is is is right uh the stage is right that uh we sort of invest into the marketing of 35:15 35 minutes, 15 seconds that brand. Uh but all the marketing that we're doing uh it's all digitally aligned. 35:28 35 minutes, 28 seconds Thank you. We'll take the next question from Manugu Sha. Manuga we can go ahead. Yeah. Hello sir. 35:37 35 minutes, 37 seconds Can you throw some light on the management bandwidth aspect with so many brands now in your portfolio? 35:43 35 minutes, 43 seconds Yes. Uh a very good question. So we have been investing uh uh into increasing our 35:51 35 minutes, 51 seconds bandwidth u and hence u you know overall the costs have gone up because we've 35:58 35 minutes, 58 seconds been investing into into people but I can uh say this with utmost sincerity 36:04 36 minutes, 4 seconds and clarity that uh the team that we have in place is a brilliant team u very 36:11 36 minutes, 11 seconds very happy with uh with the new people also joined on these new brands. Uh the very experienced team uh everybody comes 36:19 36 minutes, 19 seconds in with at least 12 to 15 years of experience worked with uh the topmost brands worked on 500 crores 800 crores 36:28 36 minutes, 28 seconds of revenues and all of that. So and uh wherever we require we are not shying 36:35 36 minutes, 35 seconds away from uh from having consultants as well. So we have a panel of consultants as well. So uh we taking this entire 36:43 36 minutes, 43 seconds approach we strengthening the team and we will continue to invest into uh into manpower because at the end of the day 36:51 36 minutes, 51 seconds uh it's the team which which takes you there. So uh very happy right now with with the current bandwidth. U there'll 36:59 36 minutes, 59 seconds be one or two new announcements also in terms of uh uh some senior people joining us. Uh we'll be making them shortly. 37:10 37 minutes, 10 seconds Okay sir. And my another question is what's your vision for next 3 to 5 years? 37:17 37 minutes, 17 seconds Yeah, 3 to five years. I think uh uh you know the vision is uh 37:25 37 minutes, 25 seconds you know how do I say if it is only in terms of revenue I can say that okay in the next uh four to 5 years we aim a,000 37:33 37 minutes, 33 seconds crores you know but uh actually the vision is is not only uh from the topline 37:40 37 minutes, 40 seconds perspective the vision is that uh we uh we deliver a very very good 37:48 37 minutes, 48 seconds healthy we are a very healthy company we want to be a very very healthy company uh when it comes to top line bottom line 37:56 37 minutes, 56 seconds your talent sheet all of that so I think the focus for the next two years now would be you know uh how do we improve 38:05 38 minutes, 5 seconds our efficiencies uh now that we have all of this uh we need to scale and we need to scale it 38:14 38 minutes, 14 seconds efficiently so that's going to be the focus Okay sir. And my last question is uh are we done with the integration of the 38:22 38 minutes, 22 seconds softback manufacturing and is there any plan to move everything to one location? If yes then by when? 38:30 38 minutes, 30 seconds Sorry I I didn't get your question. Sorry. 38:33 38 minutes, 33 seconds Okay. I repeat it. Are we done with the integration of softback manufacturing and is there a plan to move everything 38:40 38 minutes, 40 seconds to one location? If yes, by when? He's saying are we done with the integration of software? Yeah. 38:48 38 minutes, 48 seconds Yes. The software integration was already done. So I think it was effective 1st of April 2024 itself. Uh 38:58 38 minutes, 58 seconds correct? Uh it was 1st of April 2024. We got the order late got it was effective 39:05 39 minutes, 5 seconds 1st of uh April 2024. So hence all the all the results that you see are all consolidated figures. 39:14 39 minutes, 14 seconds uh in fact if I talk about only the retail division our growth growth percentages are higher uh because in the 39:22 39 minutes, 22 seconds manufacturing you have now a higher share of in-house consumption hence uh uh it doesn't reflect on the top line um 39:30 39 minutes, 30 seconds so uh yes that integration was done and bringing everything to one place yes 39:38 39 minutes, 38 seconds that is on the cards but as I said right now we made our first investment uh it's a heavy capeex that we've done 39:47 39 minutes, 47 seconds uh for our hard luggage plant to shift the soft luggage over there. We'll again have to invest into uh you know building 39:56 39 minutes, 56 seconds uh construction and all of that. Um and on the parallel we have our warehouse 40:03 40 minutes, 3 seconds also which is requiring investment. So what uh we want to take it step by step. 40:09 40 minutes, 9 seconds uh so I think 2 years down the line is when uh we can expect that we'll we'll 40:16 40 minutes, 16 seconds sort of start executing a plan of moving this uh to one location but yes that is on the cards that we move everything to one location. 40:29 40 minutes, 29 seconds Thank you. Since uh there are no further questions uh would you like to give any closing comments? 40:36 40 minutes, 36 seconds Yeah, I think uh uh we are very very well poised. I think we have uh all the 40:44 40 minutes, 44 seconds all the uh arsenals that we need in our in our kitty and now it's time to uh you 40:52 40 minutes, 52 seconds know unlock the the true potential. So uh looking forward to you know a great 41:00 41 minutes next financial year is what I can say. 41:06 41 minutes, 6 seconds Thank you. Thank you to the management and all the participants. This brings us to the end of Q3 F26. 41:14 41 minutes, 14 seconds Thank you. Awesome. Perfect. Thank you. Thank you everyone for joining. Thank you.