Campus Activewear Limited — Q1 FY26

Campus Activewear Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=2_UFcSZLfX8 Published: 9 months ago

0:00 Ladies and gentlemen, good day and welcome to the campus activeware limited Q1 FI26 earnings conference call. As a 0:09 9 seconds reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:17 17 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Before we proceed 0:26 26 seconds on this call, let me remind you that the discussions may contain forward-looking statements that may involve known or 0:33 33 seconds unknown risks and uncertaintities or other factors. It may be viewed in conjunction with our business that could 0:40 40 seconds cause future results, performance or achievements to differ significantly from what expressed or implied by such forward-looking statements. The campus 0:49 49 seconds active management team is represented by Mr. Mr. Nikil Agarwaltime director and CEO and Mr. Sanjay Chabra CFO. I now 0:59 59 seconds hand the conference over to Mr. Nikil Agarwaltime director and CEO. Thank you and over to you sir. 1:07 1 minute, 7 seconds Good evening everyone. Thank you all for joining us today for our quarter 1 FI26 earnings call. We reported a revenue of INR 343.3 crores for the quarter. 1:19 1 minute, 19 seconds Successfully navigating a challenging macro environment and managing two very significant internal transitions. 1:26 1 minute, 26 seconds First, stabilizing the operations at our new raw material warehouse which took longer than anticipated as we 1:33 1 minute, 33 seconds consolidated the operations of three warehouses together. Second, the successful implementation of SAP. I'm 1:41 1 minute, 41 seconds happy to report that the blackout period for SAP was shorter than we anticipated, allowing us to resume normal business operations in the second week of April 2025. 1:51 1 minute, 51 seconds To mitigate potential disruptions during the blackout period, we proactively stocked up the inventories with our 1:58 1 minute, 58 seconds channel partners during quarter 4 end to ensure minimum impact on secondary sales in the distribution channel. However, 2:07 2 minutes, 7 seconds online channel sales got impacted during this transition resulting in sales loss during the first Fortnite. 2:14 2 minutes, 14 seconds During the quarter, our volume declined by 11.6%. 2:19 2 minutes, 19 seconds However, the impact was largely offset through higher ASP, higher margin product mix. The decline in volume was 2:26 2 minutes, 26 seconds driven by muted demand in the online channel and lower sales of entry price point DIP school shoes, slippers and sandals in the distribution channel. 2:36 2 minutes, 36 seconds Part of the volume loss of DIP shoes was mitigated through upgrading our consumers to Eva school shoes. The reduction in slippers and sandals volume 2:45 2 minutes, 45 seconds was primarily in the entry price point segment with lower than average margins. 2:50 2 minutes, 50 seconds Our revenue grew by 1.4% 4% during the quarter driven by 8% growth in the distribution channel, 20% growth in the 2:59 2 minutes, 59 seconds large format stores and partly offset with the transition degrowth in the online marketplace channels. 3:07 3 minutes, 7 seconds We focused on driving premium product sales in particular sneakers which positively impacted our ASPs which 3:14 3 minutes, 14 seconds increased by 14.7% YI from rupees 586 in quarter 1 FI25 to rupees 671 during quarter 1 FI26. 3:25 3 minutes, 25 seconds This highlights our commitment to premiumization while ensuring competitive pricing even amidst macroeconomic headwinds. 3:33 3 minutes, 33 seconds We continue to enhance our product portfolio by launching over 50 new value for money styles across men's, women, and children's categories. These new 3:42 3 minutes, 42 seconds offerings cater to various family occasions, reflecting our commitment to meeting the diverse needs of our consumer base. Notably, our sneaker 3:51 3 minutes, 51 seconds category achieved a remarkable 150% growth. Uh we sold 550,000 pairs versus 3:58 3 minutes, 58 seconds 220,000 pairs last year, reinforcing our dedication to providing stylish, highquality footwear at accessible 4:06 4 minutes, 6 seconds prices. We also saw an improvement in our gross margin, which expanded by 210 basis points Y from 53.3% to 55.4%. 4:18 4 minutes, 18 seconds During the quarter, we hosted our largest ever distributors meet Shoecase 2025, celebrating two decades of shared growth and our commitment to the future. 4:28 4 minutes, 28 seconds The feedback we received for our latest focus collection has been overwhelmingly positive. 4:33 4 minutes, 33 seconds Operator request has been initiated. If you'd like to cancel this request, please press star zero again. 4:40 4 minutes, 40 seconds Uh enhancing our growth visibility and raising hopes for demand recovery in the upcoming quarters. I'm excited to share 4:47 4 minutes, 47 seconds that our new digital campaign a bro capsule pro featuring Sedan Chhaturvedi has resonated very well with the youth. 4:55 4 minutes, 55 seconds This campaign showcases the versatility of our flagship air capsule pro collection and has generated a significant interest amongst our target 5:03 5 minutes, 3 seconds audience. As we speak, we have further augmented the in-house manufacturing capacities for upper by commencing the 5:10 5 minutes, 10 seconds production of upper at our Ponta size facility in Himal Pradesh starting 1st August 2025. 5:17 5 minutes, 17 seconds This strategic move is expected to bolster our manufacturing efficiency and help us in meeting the peak of demand. 5:24 5 minutes, 24 seconds We are optimistic about the trajectory moving forward and remain committed to delivering value to all our stakeholders. Thank you. And now I hand 5:31 5 minutes, 31 seconds over the call to our CFO Mr. Sanjay Chabra to take you through more details. 5:38 5 minutes, 38 seconds Thank you Nikl and good evening everyone and thank you for joining us on Q1 FY26 earnings call for campus activeware. 5:46 5 minutes, 46 seconds Our operational review uh revenue grew by 1.2% yearonear to INR 343 crores in quarter 1 FI26 largely benefited by 5:55 5 minutes, 55 seconds higher distribution which has registered a growth of 8.6% 6% and growth in large format stores. While the online channel 6:03 6 minutes, 3 seconds had a degrowth of 8%. The company sold approximately 5.1 million pairs of 6:09 6 minutes, 9 seconds footwear in Q1 FY26 down by around 11.6% yearonear. 6:15 6 minutes, 15 seconds The average selling price grew by 14.5% yearonear from rupees 586 per pair to rupees 671 during Q1 FI26. 6:26 6 minutes, 26 seconds The gross margins improved from 53.3% during Q1 FI25 to 55.4% during the current quarter. The 6:35 6 minutes, 35 seconds improvement in gross margin is largely driven by higher share of premium products including sneakers as well as overall cost efficiencies. 6:44 6 minutes, 44 seconds Our EITA for quarter 1 was INR 55.4 crores. The AITA margin stood at 15.9% 6:52 6 minutes, 52 seconds during the quarter. an improvement of 10 basis points versus last year. 6:58 6 minutes, 58 seconds PAT stood at INR 22.2 crores during the quarter and PAT margin stood at 6.4%. 7:04 7 minutes, 4 seconds Drop in PAT margin from 7.4% last year to 6.4% during the current year is driven by higher depreciation on our 7:13 7 minutes, 13 seconds capacity enhancement related investments in Harido and Gnor during second half of the last year. With this summary, I will 7:21 7 minutes, 21 seconds now conclude my remarks and open the floor to the moderator for Q&A session. Thank you. 7:27 7 minutes, 27 seconds Thank you very much, sir. We will now begin the question and answer session. 7:32 7 minutes, 32 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 7:40 7 minutes, 40 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll 7:48 7 minutes, 48 seconds wait for a moment while the question queue assembles. 7:58 7 minutes, 58 seconds We have a first question from the line of Gor of Joani from JM Financials. Please go ahead. 8:04 8 minutes, 4 seconds Uh thank you for taking my question. So my first question is in regards to the decline in the online sale. Actually we lost out the initial part of your 8:12 8 minutes, 12 seconds commentary because there was a lull. uh if you can tell us why the online sales have declined uh sharply and uh how much 8:20 8 minutes, 20 seconds of this is recoupable in the uh coming quarters. 8:25 8 minutes, 25 seconds Hi G. So u actually in the online sales the two things happened. We basically 8:32 8 minutes, 32 seconds had a very large transition of the raw material warehouse which I called out. 8:36 8 minutes, 36 seconds So we consolidated three warehouses into one and this act this is the largest transition the company's ever made in the history of the organization. Now the 8:45 8 minutes, 45 seconds benefit of course is is going to be immense and we've already see started seeing the benefits of this transition from quarter 2 onwards. uh but I mean 8:54 8 minutes, 54 seconds there's never a honestly a good time to to make this transition because the business also has to run as usual but we 9:01 9 minutes, 1 second took that call to do uh to do it do it during quarter 1 which is all like the slower time right compared to the season 9:08 9 minutes, 8 seconds time so so during this time well while we uh made very good progress and the distribution channel had enough 9:15 9 minutes, 15 seconds inventory to to get the growth we unfortunately could not supply enough uh material for the online le marketplace 9:24 9 minutes, 24 seconds and that is where we sort of lost out on the growth over 15 days I would say 15 to 20 days which operator request has been initiated if 9:33 9 minutes, 33 seconds you like to cancel this request please press star zero again hello sorry about this did you hear me so far 9:41 9 minutes, 41 seconds yeah sir we I listened uh till the part that you said that ma out on sale for 15 to 20 days that is where I heard you last 9:48 9 minutes, 48 seconds yes yes so that's that's basically what happened in the online channel otherwise we would have gone gotten at least 9:56 9 minutes, 56 seconds higher singledigit growth in the online as well. 10:01 10 minutes, 1 second Okay. Okay. And you said that you know already you are seeing the benefits of the uh whereas consolidation. So if you can highlight what kind of benefit this 10:10 10 minutes, 10 seconds consolidation is giving you. Are you talking more in terms of uh a cost side? 10:14 10 minutes, 14 seconds Are you talking more in terms of better distribution? How how this warehouse consolidation is helping you? 10:20 10 minutes, 20 seconds Sure. So this warehouse uh so so far we had three warehouses for raw material uh issuance to basically all the plants 10:28 10 minutes, 28 seconds and our fabricators and these three warehouses had a combined capacity of not more than 80,000 pairs a day right 10:36 10 minutes, 36 seconds and that's the maximum we've ever done from these three now the new warehouse gives us a capacity of in a in a mature 10:43 10 minutes, 43 seconds state and a high throughput state we can easily go up to 200,000 pairs a day so it's basically basically doubling of the 10:50 10 minutes, 50 seconds capacity of the throughput. And what this does is this debottlenecks the entire supply chain where we can now 10:57 10 minutes, 57 seconds comfortably and uh you know we can also do a lot of advanced issuance of the material to the respective uh plants wherever required. 11:09 11 minutes, 9 seconds Okay. So basically it allows you to store a lot more uh capa uh raw material which you can then give it to the vendors for processing and then your 11:18 11 minutes, 18 seconds production can increase effectively. Is that the right understanding? 11:22 11 minutes, 22 seconds It it it adds a lot of bandwidth for us to feed our 60 plus fabricators who in turn make up for us throughout the year 11:31 11 minutes, 31 seconds and also uh during the peak season when we when we have a higher demand. 11:37 11 minutes, 37 seconds Sure. Okay. And the last question is with regards to the the the other expenses line item. I think this quarter 11:44 11 minutes, 44 seconds we also had a higher ad spend that probably uh and plus the negative leverage is impacting the margins. 11:51 11 minutes, 51 seconds Otherwise uh uh if you look at the overall margin tax of this would you be confident of at least touching 16 to 17% 11:58 11 minutes, 58 seconds margin this year? Uh given that you know now this uh the the closure is now behind us and we expect the the the sales to recoup going ahead. 12:08 12 minutes, 8 seconds Yeah, Gorav uh we continue to aspire to go back to the old days. 17 to 19% is what we have been uh highlighting 12:16 12 minutes, 16 seconds always. So that that's what we aspire to achieve. Sure. Thank you. That's all for me. 12:26 12 minutes, 26 seconds Thank you. 12:28 12 minutes, 28 seconds We have our next question from the line of Priyanker from VM Capital. Please go ahead. 12:34 12 minutes, 34 seconds Yeah. Hi sir. Thank you. Nice to uh interact again uh but uh we'll be sorry to uh point out 12:44 12 minutes, 44 seconds we have been guiding for doubledigit growth. We have been guiding for 17 19% margins 12:51 12 minutes, 51 seconds but uh we have been waiting also long uh for that delivery. 12:56 12 minutes, 56 seconds uh and then somehow either it's industry or internal to campus that the delivery miss is something which is very 13:05 13 minutes, 5 seconds consistent. Uh could you please highlight by when should we actually see what you have been guiding in terms of delivery happening on the PNN also. 13:18 13 minutes, 18 seconds Hi Priyank uh yes you are right on uh delivery misses on occasion but if you 13:27 13 minutes, 27 seconds look at it on a consistent basis and on an annual basis you will see that there is improvement on the uh EITA margin 13:35 13 minutes, 35 seconds front I mean if you look at full year FI25 versus FI24 and if you look at the consistency we are trying to maintain 13:43 13 minutes, 43 seconds quarteron quarter uh the numbers are there uh as I said to answer Gorov in 13:51 13 minutes, 51 seconds the earlier question that yes we aspire to go back to 70 to 19% trajectory and we're trying to sort of uh work on all 13:59 13 minutes, 59 seconds the building blocks which are going to take us there on a sustainable basis and these transition both SAP implementation 14:06 14 minutes, 6 seconds and consolidating uh RM warehouse are part of that I mean we are always keeping in view one year 14:13 14 minutes, 13 seconds forward how do we augment the capacities to take care of the future uh demand growth and these are building blocks. 14:22 14 minutes, 22 seconds Yes, it is taking a bit of time. I agree with that. U but hi Nicl. Yeah, I just like to add that uh you know like Sanjay 14:31 14 minutes, 31 seconds said Sanjay clearly pointed out there has been significant movement. We quarter 4 and quarter 3 last year was 14:38 14 minutes, 38 seconds was very good for the company and after a long time we were able to demonstrate that kind of performance. This was a one-off. We also did not honestly 14:46 14 minutes, 46 seconds anticipate in quarter 1 uh this kind of uh you know time frame for the warehouse 14:53 14 minutes, 53 seconds consolidation because it it was massive like it it was hundreds of crores of inventory which was shifted over a very 15:02 15 minutes, 2 seconds short period of time which had to be uploaded into the SAP and so it was a very complex affair which we're very 15:08 15 minutes, 8 seconds proud of which which you know it's it's it's a tough transition and and honestly like it will it's opened up a lot of the 15:17 15 minutes, 17 seconds debottlenecked the entire supply chain completely. So we are very positive for quarter two onwards and it's we've had a good start in quarter two. So we are 15:25 15 minutes, 25 seconds very hopeful of the recovery uh going forward. 15:30 15 minutes, 30 seconds Sure. Sure. No we also hope for that and we have been well wishious. What I have failed to reconcile is that if we had 15:38 15 minutes, 38 seconds planned uh such a large movement uh a we could have guided the the consensus or 15:46 15 minutes, 46 seconds we could have guided the investors in the previous call itself that there would be this disruption b on the business front in in the times where 15:54 15 minutes, 54 seconds industry is struggling to struggling for a better sales growth u we can't afford for 15 20 day days of sales loss I think 16:03 16 minutes, 3 seconds that could have been also planned well uh just a observation right uh I come I I'll come to the second question the 16:12 16 minutes, 12 seconds second question is on in the times when there is a 15 20 days disruption in the times where industry is struggling we 16:19 16 minutes, 19 seconds are still continue to invest into the advertisement and promotion that is that we couldn't see decline or a degrowth 16:27 16 minutes, 27 seconds over there I mean uh I'm sorry but I'm asking this question again while I was I had asked this question on in the last 16:35 16 minutes, 35 seconds call also we spend top dollars in terms of percentage revenue when compared to all the other uh uh footwear uh brands 16:44 16 minutes, 44 seconds that are listed in India uh how do we reconcile this uh for this quarter for this full year uh that ROI getting 16:52 16 minutes, 52 seconds translated into the revenues help me with what's the thought process behind uh so spending such a large amount in 17:00 17 minutes advertisement and promotions Hey Priyank uh of course needless to say 17:06 17 minutes, 6 seconds that N&P spends always have a lag in terms of realization in terms of sales and uh as we mentioned in the opening 17:14 17 minutes, 14 seconds remarks that this uh degrowth in online uh was a channel specific phenomena which required certain set of finished 17:23 17 minutes, 23 seconds goods. The degrowth was not universal like we have shown a growth in distribution of around 8% which is uh 17:29 17 minutes, 29 seconds which is pretty decent and that's what it's all execution led and also it is it was a part of plan I mean we did upstock 17:38 17 minutes, 38 seconds inventory in Q4 despite that we were able to service all the orders post SAP go live and which resulted into uh uh 17:47 17 minutes, 47 seconds into a growth in distribution channel so spends are like channel agnostic and of course the investments are ahead of 17:55 17 minutes, 55 seconds curve and the impact also comes in the uh with a let's say a quarter lakh right 18:03 18 minutes, 3 seconds okay uh hopefully interrupt you Mr. Brian, may you please request you to rejoin the queue as there are several participants waiting for their turn. 18:15 18 minutes, 15 seconds Thank you. 18:17 18 minutes, 17 seconds We have our next question from the line of Shardakia from Smith Limited. Please go ahead. 18:25 18 minutes, 25 seconds Hello. Am I audible? Yes, please. 18:29 18 minutes, 29 seconds Uh thank you for the opportunity. So basically my question is with regards to the ASP. So uh we have seen increase in 18:38 18 minutes, 38 seconds the ASP. So is there any specific uh re region where uh there has been more ASP 18:47 18 minutes, 47 seconds increase or it's overall which is there also in terms of the consumer buying patterns. So for if you could just give 18:56 18 minutes, 56 seconds a brief about the recent Q2 demand trends and the consumer buying patterns that would be great. Sure. 19:06 19 minutes, 6 seconds Uh firstly with respect to the ASP uh we have you know had a uh an excellent response in terms of our sneaker 19:14 19 minutes, 14 seconds portfolio number one even on the shoes portfolio the sport shoes as well which has uh you know so our 159500 plus 19:23 19 minutes, 23 seconds portfolio share salency has gone up to all 50% plus for this quarter which is the highest ever we've done and uh so 19:31 19 minutes, 31 seconds there are two three reasons for that one is a disproportionate focus on the sneaker category which is definitely extremely premium and very high ASP 19:41 19 minutes, 41 seconds and that is again a reflection of you know our commitment to premiumization um and this is on a actually not a very 19:50 19 minutes, 50 seconds large base we've sold just 550,000 pairs of sneakers uh so it's it's still like scaling up and and we have uh you know 19:57 19 minutes, 57 seconds big plans for for this category going forward um secondly uh there was we we 20:04 20 minutes, 4 seconds did slow down on the lower margin lower uh MRP DIP school shoes and some bit of 20:12 20 minutes, 12 seconds sandals and slippers which were not very margin accretive and very very low value. So that is one portfolio which we 20:19 20 minutes, 19 seconds sort of scaled down slightly and so it's it's a combination of both where we have gained disproportionately on the ASP front. 20:30 20 minutes, 30 seconds uh in terms sir any regional trends which can be observed not really it's across it is it's across 20:39 20 minutes, 39 seconds the board um the regional salency for us is also very similar to the previous quarter so no 20:48 20 minutes, 48 seconds real change in terms of uh it's it's across the board okay in terms of the yeah I'll just highlight that 20:56 20 minutes, 56 seconds yeah sure the macros were like okay. They weren't like the best uh in terms of the demand 21:04 21 minutes, 4 seconds situation uh and but they weren't also too bad. So so we were hoping for uh you know so that's why we were able to do even 8 or 9% growth in the distribution. 21:15 21 minutes, 15 seconds So uh but if you look at the other results of the of the peer set right so clearly you can see there is stress in 21:22 21 minutes, 22 seconds in terms of demand but as a brand we've been focusing disproportionately on branding and and the premium portfolio 21:29 21 minutes, 29 seconds and the quality of shoes right uh which is giving us this kind of growth uh even in this market. So that's how we are looking at the market right now. 21:41 21 minutes, 41 seconds Sure sir. Uh just one more questions from my end. So what is the proportion of nonpis inventory in the system and do 21:50 21 minutes, 50 seconds you continue to expect the 20 to 40 basis points of market uh margin drag for spy 26 21:59 21 minutes, 59 seconds uh shada uh the proportion is uh has significantly reduced and uh that again 22:07 22 minutes, 7 seconds uh has started reflecting in our uh gross margins as well. So on the one side there is a ASP increase and on the other side there's a cost efficiency 22:16 22 minutes, 16 seconds which means that now we are uh getting lower hit in terms of liquidation of nonBIS inventory and all as compared to 22:24 22 minutes, 24 seconds same quarter last year and as compared to last quarter as well. So that has started reflecting on the on the margins. We don't see uh much of stress 22:34 22 minutes, 34 seconds there uh uh beyond the range what we have already highlighted in the past. 22:40 22 minutes, 40 seconds Sure sir, that was quite helpful. Thank you so much. 22:46 22 minutes, 46 seconds Thank you. We have our next question from the line of Omang Maha from Kekch Institutional Equities. Please go ahead. 22:55 22 minutes, 55 seconds Yeah. Hi. Uh thanks for the opportunity. 22:57 22 minutes, 57 seconds So uh Nikl if I were to just uh you mentioned that D2C online uh if this disruption wasn't there then would have 23:05 23 minutes, 5 seconds grown by around uh high single digits, right? So assuming that this wouldn't have happened, you are saying that your overall sales would have grown in something like 600%. Uh is that correct? 23:18 23 minutes, 18 seconds Uh yes, high single digits a month. That's right. 23:21 23 minutes, 21 seconds Even the company level sales at company level that's correct. 23:24 23 minutes, 24 seconds Understood. and any color you can share on how June July have been uh so that you know we come to know about how the 23:32 23 minutes, 32 seconds recent trends are and what to kind of expect uh uh you know going ahead. 23:38 23 minutes, 38 seconds So without like diverging into numbers, I can I can share with you that uh we 23:44 23 minutes, 44 seconds have recovered uh in terms of uh the sales in July and uh we expect a decent 23:52 23 minutes, 52 seconds quarter two we we're basically in line with our budgets like internal budgets what we've aligned so we don't see any challenge there. 24:00 24 minutes Understood. And uh just a clarification the 16 to sorry 17 to 19% guidance uh 24:06 24 minutes, 6 seconds that uh you gave uh that includes your other income is it uh in terms of the AIDA margin that you all calculate. 24:14 24 minutes, 14 seconds Yes. 24:16 24 minutes, 16 seconds Understood. Uh thank you so much. The best. Thank you. Thank you. 24:25 24 minutes, 25 seconds A reminder to all participants, if you wish to ask any questions, you may press star and one. Anyone who wishes to ask a 24:32 24 minutes, 32 seconds question may press star and one. We have our next question from the line of Samir Gupta from India info line, please go ahead. 24:42 24 minutes, 42 seconds Uh hi, good evening everyone and thanks for taking my question. Uh so firstly on the BIS part, uh just want an update 24:48 24 minutes, 48 seconds here and this is not on the nonBIS inventory that we we have. And this is on the overall industry piece. Uh there 24:56 24 minutes, 56 seconds was an expectation that campus would be a one of the bigger beneficiaries of uh this uh uh disruption that we saw in BIS 25:05 25 minutes, 5 seconds talks. Now as you see it on the ground are all the related benefits to this uh 25:12 25 minutes, 12 seconds accured to us already or more can be expected? 25:17 25 minutes, 17 seconds Uh okay. Hi Samir. No. So we've just actually started seeing the benefits to be honest the benefits are yet to be 25:24 25 minutes, 24 seconds fully materialized. Uh as there is still you know inventory in the system nonb inventory for all the brands it's not 25:32 25 minutes, 32 seconds just limited to us. Uh the regulation says that we have everyone has to dispose of the inventory before June 25:38 25 minutes, 38 seconds 2026. So everyone's taking their time to do that but that's not really a a big issue now with anyone as the overall 25:46 25 minutes, 46 seconds inventory is I believe finite uh and and not that significant. Uh so so the the benefit has started coming in but I 25:55 25 minutes, 55 seconds believe the the bulk of it is yet to come. 25:59 25 minutes, 59 seconds Got it. And see why I ask is because now with the evolving geopolitical situation with China 26:06 26 minutes, 6 seconds uh first of all is there a potential for you know whatever benefits that could have come to even reverse hypothetically 26:16 26 minutes, 16 seconds or now the ecosystem has changed completely and whatever has done is done and uh you don't think this to this situation to reverse 26:24 26 minutes, 24 seconds you mean the BI is to be reversed as in uh let's say if uh uh factories outside China start to get uh approvals 26:33 26 minutes, 33 seconds etc. then we'll be back to square one, right? 26:36 26 minutes, 36 seconds Not really. I mean, see, they're already getting approvals uh but they're getting approvals for the MNC France because they don't really have any manufacturing 26:45 26 minutes, 45 seconds in India and they're only dependent on China, Vietnam, Indonesia, such countries. So, they are getting very exceptionally approved. But for 26:53 26 minutes, 53 seconds basically our biggest competitor were to two uh you know lines of thought here. 26:59 26 minutes, 59 seconds One is uh the fake goods the fake brands that would come into India from China that was a very big volume that that was 27:08 27 minutes, 8 seconds being brought here and that sort of also disrupted our market. So that that piece has really really shrunk completely more 27:15 27 minutes, 15 seconds or less and uh then there was of course uh uh you know other importers the non non-branded ones. So on both fronts we 27:24 27 minutes, 24 seconds have seen significant decline in the imports into the country. So I don't see any reason why the government would want to reverse this. I mean there are other 27:32 27 minutes, 32 seconds ways of I'm sure they they have better solutions to this but I think it's a great move. BIS will be very beneficial 27:40 27 minutes, 40 seconds for the entire industry in terms of even employment generation which we're already seeing the benefits of and even us like we are going all out in terms of 27:48 27 minutes, 48 seconds expansion right so we're also putting up new plants and new facilities and expanding our production. So clearly we see a lot of leverage going forward. 27:58 27 minutes, 58 seconds Got it. And these fake brands and non-branded importers that you're talking about, they still have a sizable inventory of nonBIS products. That is 28:08 28 minutes, 8 seconds why the benefits are yet to occur. Is that in a correct understanding? 28:12 28 minutes, 12 seconds There there is some definitely I mean uh see one is obviously there's a seasonality to it also. uh we believe 28:19 28 minutes, 19 seconds that in the the demand wasn't that great in quarter 1 and that is a reflection that you will see in the other results 28:26 28 minutes, 26 seconds also of other companies despite that of course we lost out due to some internal transitions on the online side but the 28:33 28 minutes, 33 seconds distribution piece has shown growth right 8% 9% growth so in the season time of course this will be accelerated and 28:41 28 minutes, 41 seconds we believe that uh in the next one or two quarters the benefits will become even more apparent of the BI Yes. 28:49 28 minutes, 49 seconds And there are no fresh imports happening of these fake brands. That is for sure. 28:54 28 minutes, 54 seconds I mean if anything is getting done uh by other means I don't know but like legally yes nothing is getting imported now. 29:02 29 minutes, 2 seconds Okay. Okay. No worries. And uh second question if I may on this uh 15 to 20day disruption that you mentioned uh I am 29:11 29 minutes, 11 seconds not able to really understand what has happened. So one, how is it that this disruption is only affecting the online 29:18 29 minutes, 18 seconds channel? Was it specific to certain SKUs that demand came in on the online marketplace and you could not supply or 29:25 29 minutes, 25 seconds you couldn't anticipate stocking up? Uh or you know you didn't have enough capacity to stock up that much. What exactly happened? 29:35 29 minutes, 35 seconds Sure. So basically you know we firstly had suffic sufficient stock on the distribution side. Of course there was 29:43 29 minutes, 43 seconds some some disruption on the distribution also but distribution was less affected because they had a healthy inventory base already. Uh on the online side we 29:52 29 minutes, 52 seconds got impacted mostly on these specific articles which were high movers and uh uh and the outright sale in the 30:00 30 minutes marketplace. Right. So both both the areas got affected with respect to because they were already on a lower base of inventory. So that is where the impact was more significant. 30:10 30 minutes, 10 seconds But you planned to do this so you could have stocked up on those items, right? 30:15 30 minutes, 15 seconds Uh so yes, you it was an unplanned exercise. Yeah. 30:20 30 minutes, 20 seconds No, you're right. So two or three, you know, basically two big transitions were happening at the same time and the SAP 30:27 30 minutes, 27 seconds and the warehouse. And while we honestly thought that this could have been done in over a week's time but it took much 30:35 30 minutes, 35 seconds longer the the warehouse transition because of the complexity which we did not really anticipate to take that long. 30:41 30 minutes, 41 seconds So it was definitely a miss I would call it out that it was it could have been done slightly better uh you know but I 30:49 30 minutes, 49 seconds mean whatever it is it is in the past now and and we are very hopeful of recovering completely from here on in the in the balance three quarters. 30:58 30 minutes, 58 seconds Uh, got it. Uh, that's all from me. All the best for the future. Thank you. Thank you. 31:06 31 minutes, 6 seconds We have our next question from the line of Action from Fidelity. Please go ahead. 31:17 31 minutes, 17 seconds Action. We will request you to unmute yourself and go ahead with the questions. 31:24 31 minutes, 24 seconds Yeah. Uh, sorry. Uh first question was around the ASP. We've seen a sharp uptick this quarter. I don't know if 31:31 31 minutes, 31 seconds this is just you know choice of inventory we sold or something that we should see steady state going forward. 31:40 31 minutes, 40 seconds Uh yeah that that's question one. Uh if you could answer that then I'll go to the second one. Yeah. Hi Action Sanjay this side right. 31:48 31 minutes, 48 seconds So uh this ASP is a high ASP is a combination of two things. One is the higher salency of sneaker portfolio 31:56 31 minutes, 56 seconds which has a higher MRP uh range. Uh that salency or that portfolio has shown a growth of around 150%. And then second 32:05 32 minutes, 5 seconds is the lower sale of slippers, sandals and DIP shoes. So DIP shoes were selling it's a entry-level school shoes which 32:13 32 minutes, 13 seconds was selling at a price point of roughly 400 rupees. uh which we consciously uh sort of descaled or uh scaled down and 32:23 32 minutes, 23 seconds tried to move consumers to the EVA based soul which is a lighter school shoe but at a higher price point. So it's it's a 32:31 32 minutes, 31 seconds combination of one the sneaker portfolio and second the the lower salency of the school shoes DIP school shoes plus 32:40 32 minutes, 40 seconds sandals and slippers which which was a conscious call on sort of vacating some entry price point which were uh 32:48 32 minutes, 48 seconds delivering us less than the average margin and going forward uh I would say that sneaker the base which we have formed in 32:57 32 minutes, 57 seconds this quarter I mean from here on uh there will be a consistent growth quarter on quarter. Of course, uh we 33:04 33 minutes, 4 seconds should not be comparing it versus last year, but now this 500 uh,000 pairs to uh 700,000 pairs would become a base for 33:13 33 minutes, 13 seconds every quarter. Uh because our Harido 2 facility is also now up and running at full scale. 33:19 33 minutes, 19 seconds So the ASP may not be as high as this every every quarter, but it will certainly be uh higher than last year. Higher than last year. 33:28 33 minutes, 28 seconds Okay. Uh second was just your comments around the disruption. So from the earlier call you had mentioned that the 33:36 33 minutes, 36 seconds SAP you had a go live on 4th April. Uh so that wouldn't really have disrupted the quarter too much. No. 33:48 33 minutes, 48 seconds Yeah. So uh the the disruption here it was more on 33:55 33 minutes, 55 seconds account of raw material warehouse consolidation which feeds our five plants and 60 odd fabricators. So if 34:02 34 minutes, 2 seconds there is a uh I mean it it handicaps us if there is a sudden demand on an article and if I'm unable to issue the raw material for that article I just 34:11 34 minutes, 11 seconds can't mold it and service that demand and that's where our online channel got impacted. uh SAP go live was scheduled 34:19 34 minutes, 19 seconds for fourth by 7th all the modules were up and running by by 10th it was BAU for uh for our largest channel which is 34:26 34 minutes, 26 seconds distribution. So, so the the disruption was more on account of back end uh supply chain which is there. 34:35 34 minutes, 35 seconds Sure. Just just the last thing from my side more of a suggestion. I mean we had a call fairly late in May this 34:43 34 minutes, 43 seconds disruption on warehousing would have been a known headwind to you. uh I mean it it doesn't change 1 2 3 year outlook 34:52 34 minutes, 52 seconds but just around the quarter we were coming off two decent quarters three decent quarters uh we were changing 35:00 35 minutes logistics we did call out but we didn't call out disruptions over there uh if there were disruptions you would have seen the disruptions by me uh out of 35:08 35 minutes, 8 seconds good practice I think we should have just called it out that's my side thank you guys right thank you no deduction 35:16 35 minutes, 16 seconds yes thank 35:34 35 minutes, 34 seconds Thank you. A reminder to all participants. If you wish to ask a question, you may press star and one. 35:41 35 minutes, 41 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. We have our next question from line of Pina Junjun Wala from Ara Securities. Please go ahead. 35:53 35 minutes, 53 seconds Thank you for the opportunity. Um just wanted to understand the uh difference between primary sales and secondary sales growth this this quarter. 36:06 36 minutes, 6 seconds Okay. uh right now we had a fair amount of secondary sales growth uh I mean largely reflected in our 36:15 36 minutes, 15 seconds distribution growth so we are working in the key markets we are working on uh sort of replenishment model uh the the 36:22 36 minutes, 22 seconds big markets in north and also in west uh we have seen a decent secondary sales traction 36:30 36 minutes, 30 seconds no because we lost 15 20 days of sales that would largely be on the primary side I assume and hence 36:37 36 minutes, 37 seconds uh just wanted to get clarity whether uh this would be covered up in the forthcoming quarters. 36:45 36 minutes, 45 seconds No, we have been mentioning I mean uh since the beginning that we have shown a growth in distribution around 8.6%. 36:52 36 minutes, 52 seconds So distribution channel we were able to upstock the inventory in line with the demand. Uh the the disruption impact was 36:59 36 minutes, 59 seconds not that severe and uh that's how I mean we have been able to grow. So the replenishment thing uh continue to work 37:08 37 minutes, 8 seconds wherever in distribution whatever little degrowth is that is on account of lower sale of school shoes DIP sandals and 37:15 37 minutes, 15 seconds slippers which again was a conscious call based on those price points and lower margin articles. 37:23 37 minutes, 23 seconds So then how would just to add here that by the end of the quarter one we were able to start 37:30 37 minutes, 30 seconds building up the stock again right so the disruption issue is behind us completely and uh that's why we were able to see a 37:39 37 minutes, 39 seconds good momentum July onward so uh I would say that this issue is past us now 37:46 37 minutes, 46 seconds so would you like to um uh call out for any positives coming in from preponement of festive season in Q2 um uh this year. 37:58 37 minutes, 58 seconds I think it's too early to call that out. 38:01 38 minutes, 1 second I mean uh we're of course fully geared up for the season. Um so we'll see you know how it goes. 38:10 38 minutes, 10 seconds Okay. Thank you sir and all the best. Thank you. Thank you. 38:16 38 minutes, 16 seconds We have our next question from the line of Aliasar Shaki from Motila Losal Financial Services. Please go ahead. 38:24 38 minutes, 24 seconds Yeah. Hi, thanks for the opportunity. Uh just want to understand the demand uh outlook. 38:30 38 minutes, 30 seconds Uh now uh I mean uh as you did mentioned that uh the inventory of non-BI inventory in the industry has come down 38:38 38 minutes, 38 seconds quite significantly which was hurting us and uh also you know overall macro scenario was also not very great. So in 38:47 38 minutes, 47 seconds that backdrop uh uh how do you see now the demand outlook uh also from a demand driver point of view you know 38:54 38 minutes, 54 seconds distribution side uh what steps we have taken and all that uh do you think uh we should be able to uh still do our double 39:03 39 minutes, 3 seconds digit growth target that we had or with this Q1 disruption I think now uh that would come down. 39:11 39 minutes, 11 seconds Uh hi Ali. Uh so we are absolutely on track with the double digit guidance. Uh 39:18 39 minutes, 18 seconds there is no change in that. Um we've basically been you know executing apart from this one issue that we had on the 39:27 39 minutes, 27 seconds warehouse. We we are executing very well on the front end side and we we currently doing uh we've had a fantastic 39:35 39 minutes, 35 seconds distributor meet where we've you know collected orders till basically December. uh we have a very high visibility of the order pipeline and uh 39:43 39 minutes, 43 seconds and and uh even at the secondary level as currently we're doing the retailers meet it's as we speak they're going on 39:51 39 minutes, 51 seconds across the country so uh the response is very good on the newer articles and and and the entire portfolio the core 39:58 39 minutes, 58 seconds portfolio is is very well accepted um uh so so we have a good visibility it's all about execution now and and that's 40:06 40 minutes, 6 seconds basically what we're doing as uh you know uh the the challenges that were there in terms of the warehouse, we've 40:14 40 minutes, 14 seconds opened it up completely. So at least now we have a very good throughput available from the warehouse side. So uh we don't 40:22 40 minutes, 22 seconds see any other challenges in the season. 40:27 40 minutes, 27 seconds Got it. This is very useful. And on the distribution side, if you can share any insight in terms of the initiative we 40:34 40 minutes, 34 seconds are taking to ramp up distribution uh uh and uh the new territories that we are planning to add. 40:43 40 minutes, 43 seconds So yeah, like I mentioned, I mean these are all new initiatives. You know, the number of retail meets that we're doing are highest in the country by far by any 40:52 40 minutes, 52 seconds other brand by significant margin. Like I can't share the numbers, but it's in like over 150 plus distri uh retailer meets that 41:01 41 minutes, 1 second are happening across the country uh uh plus the distributor meet that happened was at a very large scale. So these are like you know uh in industry first 41:10 41 minutes, 10 seconds initiatives nobody else has done this before and along with that we're giving them a highly curated portfolio of uh 41:19 41 minutes, 19 seconds very you know good designs and value proposition is very high as always that we maintained plus uh you know we're 41:27 41 minutes, 27 seconds also uh launching with some new branding and and uh uh you know which you'll see in the coming times in the season. So, 41:35 41 minutes, 35 seconds so lot of stuff is happening in terms of the brand visibility, marketing, uh, sales front of course in the in the in 41:43 41 minutes, 43 seconds the regions of uh, south and west as well like we we maintain the momentum. South has also 41:49 41 minutes, 49 seconds grown for us in quarter 1 uh y right so so there is a a very good execution push 41:57 41 minutes, 57 seconds at ground level in terms of distribution and that's where you see the growth as well in quarter one. 42:04 42 minutes, 4 seconds Good. Just last question on the margin front. So you mentioned uh uh 7 to 19% is where you aspire. Uh can you share 42:11 42 minutes, 11 seconds timelines? I mean should we expect this year uh to achieve that level of margin or else when by when should we expect 42:19 42 minutes, 19 seconds and what kind of growth do we need to achieve that? 42:23 42 minutes, 23 seconds Ali of course we do plan and the plans are always uh slightly above what we have already delivered in the last year. 42:30 42 minutes, 30 seconds So 17 to 19% is a range I would say uh for a for a period uh greater than one 42:39 42 minutes, 39 seconds year I would not uh sort of commit that yeah that upper band is what we will be achieving this year but that's a range we are aspiring it is a combination of 42:48 42 minutes, 48 seconds multiple factors and everything falls into place uh I mean we can deliver in 42:54 42 minutes, 54 seconds that range but definitely uh I mean that range has has some building blocks which we are working But it should be linear, right? It 43:03 43 minutes, 3 seconds should not be uh backended, right? We should see linear improvement year on year. 43:09 43 minutes, 9 seconds Yeah, understood. Very clear. Thank you so much. Thank you. 43:18 43 minutes, 18 seconds The next question is from the line of Jasmine from VT Capital. Please go ahead. 43:25 43 minutes, 25 seconds Uh hi team, my question is uh largely on the nearer term. My understanding is that quarter 2 may have some seasonal 43:33 43 minutes, 33 seconds impact from the rain plus reinventory disruption as well as the rising ASPS that may have caused a little bit of a slump in the volume as well. So would it 43:41 43 minutes, 41 seconds be fair to assume that H2 is when a proper recovery would be seen? 43:49 43 minutes, 49 seconds Um hi Jasmine. So we've covered this already like quarter two like I've called out is on track right. uh and uh 43:58 43 minutes, 58 seconds so whatever that translates into H1 numbers given how quarter one went but uh clearly like we are on road to 44:05 44 minutes, 5 seconds recovery and we we still have like I've guided to a double digit growth for this year with you know absolutely on track 44:12 44 minutes, 12 seconds with that so I mean that's all I can point to here I mean there is there was of course abnormally abnormal amount of 44:20 44 minutes, 20 seconds rainfall this year but I do I don't see a disruption beyond any point for that. So it's it's manageable 44:27 44 minutes, 27 seconds and we've been able to do you know fairly well so far. 44:32 44 minutes, 32 seconds Okay. Uh my second question is uh on the unorganized competition. 44:38 44 minutes, 38 seconds Do you have anything to call out on that front? And uh a followup or a related question on that would be how is the pricing in the market right now? Is 44:47 44 minutes, 47 seconds there a lot of uh price cutting happening in the lower price points? 44:52 44 minutes, 52 seconds Uh yes that is true actually on the ground a lot of the unorganized players 44:58 44 minutes, 58 seconds are you know cutting uh prices a lot um and you know there is intense 45:05 45 minutes, 5 seconds competition on ground so I mean that's where we are taking some you know steps to to mitigate that and and uh you know 45:14 45 minutes, 14 seconds reduce that impact to to as low as possible. So we've also done some schemes and and some initiatives have 45:22 45 minutes, 22 seconds been taken on the front end to to push sales and uh but as long as you know we're also obviously monitoring secondary inventories uh very carefully. 45:32 45 minutes, 32 seconds So there is a movement on the secondary side completely. So so it's basically the sale is uh is pretty much in line 45:39 45 minutes, 39 seconds with how we anticipate so far. Uh but yes there is a push on the ground. Uh there is definitely you know quite intense competition at the moment. 45:50 45 minutes, 50 seconds Great. Thank you so much. All the best. Thank you. 45:56 45 minutes, 56 seconds Thank you. A reminder to all participants if you wish to ask any questions you may press star and one. 46:04 46 minutes, 4 seconds Anyone willing to ask a question may press star and one on the touchstone telephone. We have our next question from the line of Jira Sha from White 46:12 46 minutes, 12 seconds Pine Investment Management. Please go ahead. 46:16 46 minutes, 16 seconds Thanks for the opportunity. So two questions. Uh so first on this uh disruption due to warehousing uh that 46:24 46 minutes, 24 seconds ship that convert was happening what kind of volume or revenue you would have lost because of that because you would have you would have tried to recoup it in the subsequent period of the quarter. 46:36 46 minutes, 36 seconds So either in terms of number of pairs or in any form you would like to call out. 46:44 46 minutes, 44 seconds Yeah Shiraz uh we mentioned that the impact was uh there primarily on the online channel. So which uh which is 46:52 46 minutes, 52 seconds roughly 35 odd% salency and uh I mean had everything been normal and uh we 47:00 47 minutes would have uh shown a bit of growth there as well. So it would have a have a 47:06 47 minutes, 6 seconds impact of uh maybe around uh 10 to 12 cr of revenue there uh which on overall 47:13 47 minutes, 13 seconds basis would have added maybe 3 4%age growth. 47:18 47 minutes, 18 seconds Great. And just a clarification, you indicated there was a 50% growth in sneakers if I heard it correctly. 47:26 47 minutes, 26 seconds Yeah, that's right. Versus last year, same quarter. 47:29 47 minutes, 29 seconds Uh and uh is this a new trend or last year was more of an abnormality because of uh the growth? 47:39 47 minutes, 39 seconds Sorry, we were not very uh uh I mean geared up for the sneaker portfolio. uh we have set up new stitching lines in 47:47 47 minutes, 47 seconds Harido facility uh mainly to cater to the sneaker segment because that's a that's a trend or that's a category 47:54 47 minutes, 54 seconds which was evolving and we were late entrance there that was a gap in our portfolio which we have bridged from H2 of last year. 48:03 48 minutes, 3 seconds Yeah. Yeah. Yeah. Uh and last question was on this nonbis inventory in general 48:10 48 minutes, 10 seconds uh in the system. Is it from based on your understanding uh can you call out what is the impact of this either on on 48:19 48 minutes, 19 seconds revenue as well as on margins either way in general for industry because uh it's a kind of a black box beyond a point and 48:26 48 minutes, 26 seconds your understanding would be far far superior than ours. 48:32 48 minutes, 32 seconds So as Nikl mentioned uh I mean the nonbis inventory is primarily or let's say half of that uh is nothing but the 48:41 48 minutes, 41 seconds fakes of the MNC brands which used to get imported from China. So that has been stopped completely which would mean 48:49 48 minutes, 49 seconds that uh it should result in uh in a demand for the local players. Right? So that's what it is and uh the uh 48:58 48 minutes, 58 seconds government giving time to liquidate such inventories till June 2026 means that wherever it is parked I mean those 49:06 49 minutes, 6 seconds channels still have the inventory and once those inventories are completely exhausted it would lead to a demand for 49:14 49 minutes, 14 seconds the local players and by this time I mean since last one and a half year if the imports are banned it is presumed 49:22 49 minutes, 22 seconds that a large part of that inventory is already liquidated. ated. So it should translate into the demand and now it's 49:29 49 minutes, 29 seconds all a matter of guesswork that how much of that demand will come to campus and how much will go to the unorganized 49:36 49 minutes, 36 seconds players and it's it's now it's a level playing field for all and it it becomes a execution game uh for us to try to grab as much share as possible. 49:47 49 minutes, 47 seconds So what I was trying to understand is say if I take F25 as a fullear base would it be right that for an organized 49:54 49 minutes, 54 seconds player like you all as an industry I'm more referring to there would be a 5 to 7% impact on revenue coming because of 50:02 50 minutes, 2 seconds this uh inventory of nonb inventory or it is more impacting you on the margins front because uh there is more supply 50:10 50 minutes, 10 seconds and you have to compete in the market uh as as a player. So how is the impact in your assessment uh on on the financial? 50:20 50 minutes, 20 seconds It's very difficult to put a number to it. I would only say that it it can impact us on the positive side in terms 50:27 50 minutes, 27 seconds of uh revenue because the imports have been banned. On the negative front as a cost uh there was a cost of liquidating 50:35 50 minutes, 35 seconds non-BIS inventory ASAP which we have been doing for last I would say five quarters since the BIS regulation is in 50:42 50 minutes, 42 seconds place and I mean like all other players we are also now left with very little of that stock and hence the cost side impact is very minuscule. 50:54 50 minutes, 54 seconds So would it be the right statement that uh F25 margins would be significant that would have a reasonable impact on this 51:01 51 minutes, 1 second and uh in a sense it can help us understand how big it could be the impact for F25 as a whole I'm referring to because there could be quarterly 51:10 51 minutes, 10 seconds variations etc etc it would be very difficult uh to fair point sir okay thank you and all 51:19 51 minutes, 19 seconds the rest thank Thank you. 51:26 51 minutes, 26 seconds In the interest of time, we will request all the participants to restrict to one question per participant. So, do you have a follow-up question? We request 51:33 51 minutes, 33 seconds you to rejoin the queue. We have our next question from the line of Rajes Aarval from Manim. Please go ahead. 51:42 51 minutes, 42 seconds Sir, uh can you throw more light on the sneaker business on the higher base of five lakh or seven lakh? Can we grow quarter to quarter 25% or nearly 40%. 51:52 51 minutes, 52 seconds And uh and you said key AS will not go up if the snaker business goes up. AS should go up from here also. Now you got my questions. 52:02 52 minutes, 2 seconds Okay. I mentioned earlier I mean if you are comparing versus last year the numbers would look great but then if you get into a quarteronquarter comparison 52:11 52 minutes, 11 seconds five lakh pairs per quarter is a is a decent number and from here on our growth will be normal. let's say 15 20%. 52:18 52 minutes, 18 seconds Right? Okay. 52:20 52 minutes, 20 seconds The kind of salency we will have for sneaker and yes sneaker commands a let's say 200 to 250 rupees ASP difference 52:28 52 minutes, 28 seconds versus our regular uh sport shoe category and hence to that extent ASP accretion and margin accretion would get reflected in the numbers. 52:39 52 minutes, 39 seconds Can you come back again on the last thing? What is of the margin margin accretion? 52:44 52 minutes, 44 seconds That's what I'm saying that to the extent we continue adding sneaker portfolio, it's nothing but premiumization. So to that extent the 52:53 52 minutes, 53 seconds ASP accretion and margin accretion related to that price difference would occur in our numbers. 53:00 53 minutes that that please can you quantify that will be how much 250 rupees or 300 or whatever you can put let's say 10% growth on my 53:09 53 minutes, 9 seconds current quarter's number that's what uh it will grow now okay and our sneaker price uh begins from what rate sir what price do we 53:18 53 minutes, 18 seconds begin starting range uh usually begins at uh 14.99 and above 53:25 53 minutes, 25 seconds 149 still there's a scope of then a to is substantially from here or not. 53:33 53 minutes, 33 seconds Now we at 671 now I mean from the sneaker portfolio certainly the will grow right 1499 is the MRP so our realization would 53:43 53 minutes, 43 seconds be after the channel margin of course yeah of course but there's a still scope of ASP increasing you know 53:50 53 minutes, 50 seconds yes there is there is still a scope so we so when we talking about this guidance so we're talking about volume 53:57 53 minutes, 57 seconds growth also and ASP increase also we are talking about revenue growth and 54:04 54 minutes, 4 seconds that I mean everything is built into understood. Okay. And uh any other 54:11 54 minutes, 11 seconds drivers for the growth and margins of course product uh sneakers and uh 54:19 54 minutes, 19 seconds from a category perspective like uh segment perspective women share is another driver and from a geography perspective south is the driver. 54:29 54 minutes, 29 seconds Okay. Understood. No, I've been using your product. It's a very Sorry to interrupt you, Mr. Rajes. May you please request you to rejoin the queue. 54:37 54 minutes, 37 seconds Thank you. Thank you. Thank you. 54:41 54 minutes, 41 seconds We have our next question from the line of Yes. Kinwatra, an individual investor. Please go ahead. 54:48 54 minutes, 48 seconds Uh hello, good evening. Can you hear me, sir? Hi. Yes. Yes, please go on. 54:54 54 minutes, 54 seconds Uh okay, sir. Uh sir, actually I did some ground work uh ground research. I talk to two to three retailers. Uh sir, 55:01 55 minutes, 1 second what I've noticed is that uh if you take the I am talking about sport shoes. If you take the segment from uh 500 rupees 55:09 55 minutes, 9 seconds to 15 2,000 rupees then people usually refer campus which is good and congratulation for that. And sir, second 55:17 55 minutes, 17 seconds thing but uh if you take a premium segment which is from about 200 2,500 people are usually tilted to uh other 55:26 55 minutes, 26 seconds international brand. So my question is that do you have any strategy or are you planning do you have any framework for branding to gain some market share in higher premium segment? 55:37 55 minutes, 37 seconds Sure. Yes. No, great question. Yes, that's exactly what we're working on. So sneaker is one portfolio which is helping us bridge that gap. uh and 2000 55:46 55 minutes, 46 seconds plus onwards we have a fantastic range of sneakers which is already there and and of course there's a lot more in the pipeline which is about to get launched. 55:54 55 minutes, 54 seconds So u so that is one big piece of this puzzle which will help us premiumize uh 2,000 and above right and of course 56:02 56 minutes, 2 seconds there are some other steps that are being taken as well which it's it's a bit early too early to share right now on the call but uh rest assured we are 56:11 56 minutes, 11 seconds working on on our 2000 plus portfolio very aggressively. 56:16 56 minutes, 16 seconds Uh okay sir and my sir short question is that key uh sorry to interrupt you Mr. Yes. 56:21 56 minutes, 21 seconds Okay okay okay thank you. Thank you ladies and gentlemen. In the interest of 56:30 56 minutes, 30 seconds time, that would be the last question for today. On behalf of Campus Activeware Limited, that concludes this conference. Thank you for joining us and 56:37 56 minutes, 37 seconds in case of any further queries, please reach out to the campus activeweares investor relations team at Idcampus.com. 56:47 56 minutes, 47 seconds You may now disconnect your lines.