Campus Activewear Limited — Q3 FY26

Campus Activewear Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=FQyoYccszXo Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the campus active air limited quarter 3 and 9 months FY26 earnings 0:10 10 seconds conference call. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:26 26 seconds your touchtone phone. Before we proceed on this call, let me remind you that the discussion may contain forward-looking statements that may involve known and 0:35 35 seconds unknown risks, uncertainties, and other factors. It must be viewed in conjunction with our businesses that could cause future results, performance, 0:43 43 seconds or achievement to differ significantly from what is expressed or implied by such forward-looking statements. The campus active management team is 0:52 52 seconds represented by Mr. Nikki Lagarvaltime director and CEO Mr. Sanjay Chabra CFO 1:00 1 minute and Mr. Uplak Tari CBO I now hand the conference over to Mr. Nikil Agarval who 1:08 1 minute, 8 seconds director and CEO for his opening remarks. Thank you and over to you sir. 1:14 1 minute, 14 seconds Thank you. Good evening everyone. Thank you all for joining us today for a quarter 3 and 9 month FI26 earnings 1:21 1 minute, 21 seconds call. We continue to demonstrate strong performance in quarter 3 and 9 month FY26 driven by our focus on widening 1:29 1 minute, 29 seconds distribution and strengthening our product mix which has resulted in a higher AS. The robust demand during the 1:36 1 minute, 36 seconds festive season coupled with the positive impact of GST rationalization has further accelerated our performance during the quarter. We are related to 1:44 1 minute, 44 seconds reports that our revenue surged by 14.3% YI and our profit after tax grew by 37% 1:51 1 minute, 51 seconds YI owing to sustained growth across the channels. We take a highly focused approach to product segmentation with 1:59 1 minute, 59 seconds our portfolio in encompassing various occasions, channels and consumer mindsets. Building on this strong 2:07 2 minutes, 7 seconds foundation, we are expanding our design expertise into full-scale apparel, maintaining the same agility and consumer centric innovation that has characterized our active wear journey. 2:18 2 minutes, 18 seconds As pioneers in offering premium sneakers at affordable prices, we remain committed to making highquality design forward footwear accessible to a wider 2:27 2 minutes, 27 seconds audience. Our sneaker portfolio has doubled in volume validating strong consumer adoption. The trend of 2:35 2 minutes, 35 seconds premiumization continues to play out positively for us with ASP rising by 5.2% YI to INR 711 in quarter 3 FI26. 2:45 2 minutes, 45 seconds This growth has been aided by a higher salency of premium SKUs and strong acceptance of our refreshed collections. 2:52 2 minutes, 52 seconds At the beginning of quarter 3, we launched our brand campaign you go girl featuring the actor Priti Sanon. This 3:00 3 minutes campaign has meaningfully strengthened our connection with w women consumers who navigate life on their own terms. 3:06 3 minutes, 6 seconds Unbothered by labels and guided by choice. We are thrilled to see that the campaign resonated strongly with our female consumers resulting in an improvement in the women's category mix. 3:16 3 minutes, 16 seconds On the manufacturing front, we are pleased to share that our Pontter side facility which focuses on upper manufacturing has now fully stabilized. 3:24 3 minutes, 24 seconds Additionally, we commenced commercial production of premium uppers at our PNGA facility in January 2026. 3:33 3 minutes, 33 seconds This enhancement of our integrated manufacturing capabilities will equip us to meet the rising demand for premium products in the coming quarters. With 3:41 3 minutes, 41 seconds more than 90% of our raw materials sourced locally and all assembly conducted in-house, our manufacturing ecosystem is not only compliant but also 3:50 3 minutes, 50 seconds strategically independent within a BIS regulated environment. As a natural progression of our brand, we have strategically ventured into at leisure apparel in January 2026. 4:01 4 minutes, 1 second This expansion not only broadens our addressable market, but also unlocks incremental revenue opportunities from our existing customers while enhancing 4:10 4 minutes, 10 seconds store productivity. This move aligns perfectly with campus's long-term vision of becoming one of India's prominent lifestyle brands. Looking ahead, we 4:18 4 minutes, 18 seconds remain focused on disciplined execution, customer centric innovation and strengthening our operational efficiencies. These efforts are aimed at 4:27 4 minutes, 27 seconds ensuring long-term value creation for all our stakeholders. Thank you. And now I hand over the call to our CFO Mr. 4:33 4 minutes, 33 seconds Sanjay Chabra to take you through more details on the quarter 3 and 9 month performance. 4:39 4 minutes, 39 seconds Thank you Nikil. Good evening everyone and thank you for joining us in Q3 and 9 month FI26 earnings call for campus 4:46 4 minutes, 46 seconds active year highlighting on quarter 3 FI26 performance. Our operational re revenue grew by 14.3% YI to INR 589 4:55 4 minutes, 55 seconds crores in quarter 3 largely benefited by higher distribution which has registered a growth of 9% and online channel which 5:03 5 minutes, 3 seconds has grown by around 18%. The company sold approximately 8.3 million pairs in quarter 3. The average selling price 5:11 5 minutes, 11 seconds grew by around 5% yearonear to rupees 711 in quarter 3. Women's and kit share in the revenue mix has improved from 5:20 5 minutes, 20 seconds 18.7% last year to around 22% during this quarter. Our gross margins were 53.1% 5:28 5 minutes, 28 seconds in quarter 3 versus 51.2% 2% in quarter 3 last year due to higher sneaker mix and higher other income or operating 5:37 5 minutes, 37 seconds revenues which is partly offset by lower mix of open footwear and also because of change in accounting policy by our ecom 5:45 5 minutes, 45 seconds portals FK and MNRA uh resulting in a lower revenue and lower freight or commission cost. Our EIA for quarter 3 5:54 5 minutes, 54 seconds was INR 115.8 crores. The AITA margin stood at 19.5% during the quarter. An improvement of 6:02 6 minutes, 2 seconds 290 basis points versus last year driven by seasonality and execution led higher sales in key channels helping us to 6:10 6 minutes, 10 seconds leverage our fixed cost more efficiently. [clears throat] Our PAT for quarter 3 was INR 63.7 crores. The PAT 6:19 6 minutes, 19 seconds margin stood at healthy 10.7% during the quarter. An improvement of 175 basis points versus last year. Our balance 6:27 6 minutes, 27 seconds sheet remains strong with return ratios that is return on capital employed at 20% and return on equity of 17.6% as of 6:36 6 minutes, 36 seconds December 25. With this summary, I'll now conclude my remarks and open the floor to the moderator for Q&A session. Thank you. 6:46 6 minutes, 46 seconds Thank you very much, sir. We will now begin the question and answer session. 6:50 6 minutes, 50 seconds Anyone who wishes to ask questions may please press star and one on the touchstone phone. If you wish to withdraw yourself from the question Q, 6:57 6 minutes, 57 seconds you may press star and two. Participants are requested to use only hand while asking a question. Ladies and gentlemen, we will wait for a moment while the 7:05 7 minutes, 5 seconds question Q assembles. You may please press star and one to ask questions. 7:21 7 minutes, 21 seconds The first question is from the line of Vidisha Fate from Ambbit Capital. Please go ahead. Yes. Hi. Uh I hope I'm audible. Thank you for the opportunity. 7:30 7 minutes, 30 seconds So growth in the second and third quarter combined has been as high as 15%. So a if you can break down the underlying levers of this double digit 7:38 7 minutes, 38 seconds growth. I understand you talked about widening distribution and product mix etc. But probably in terms of the strategic alignment if you could 7:45 7 minutes, 45 seconds highlight the granularity and B uh since we're a month into the quarter now have the have similar growth trend sustained that was my first question. 8:00 8 minutes So hi uh plugs aside in terms of uh uh quarter two and quarter 3 growth uh like you mentioned around the 15% number at a 8:08 8 minutes, 8 seconds blended level uh the core uh uh reason for this of course is the is the strength of our distribution and the 8:15 8 minutes, 15 seconds execution progress back with a very strong product story on the lines of sneakers as well as the women's story that that both Nikl and Sanjay mentioned 8:23 8 minutes, 23 seconds before. So I mean very strong execution uh partner focus along with a very strong product point of view backed with 8:31 8 minutes, 31 seconds a very strong marketing campaign which was the you go campaign that we executed last quarter. I think all of these things bring together is the reason why 8:38 8 minutes, 38 seconds we are delivering this and uh and on the on the forward looking I 8:46 8 minutes, 46 seconds don't think we will be able to give any specifics on the uh for any guidance on that. 8:52 8 minutes, 52 seconds Got it. Um my second question was that if I were to break down the region wise revenue mix there's been a good spike in 9:00 9 minutes the northern region where the mix has gone up from 40 to 47 o%. So are there any focused efforts being undertaken for 9:08 9 minutes, 8 seconds the specific region or would it be pertaining to weakening competition if you can throw some light on the same please? 9:14 9 minutes, 14 seconds [clears throat] 9:14 9 minutes, 14 seconds No. So no it's basically complete focus on uh you know of course we have we have very different strategies now for every 9:23 9 minutes, 23 seconds region. So the way we are playing out the distribution channel is uh it's a state specific almost like a state specific strategy that has been 9:31 9 minutes, 31 seconds formulated and uh we've been addressing that uh you know for the past uh two or two quarters now almost. So uh that that 9:40 9 minutes, 40 seconds is what is giving us the leverage also apart from obviously having a very very strong product line which is uh which is 9:47 9 minutes, 47 seconds again like channel focused and region specific also at the same time. So multiple initiatives of these kinds have come together to give us this growth. 9:59 9 minutes, 59 seconds Got it. Got it. And lastly just on the sneaker portfolio you mentioned that the volume is nearly doubled. So what would the current uh sneaker portfolio mix be in terms of volume and overall revenue? 10:11 10 minutes, 11 seconds Um so we don't share that number uh in terms of volume. Uh we just wanted to let you know of course the base is also 10:19 10 minutes, 19 seconds slight it's it's like a new category which you just entered in the last uh one one and a half years but uh it's it's we we're basically 10:26 10 minutes, 26 seconds doubling that volume for the past uh uh every quarter almost right for the last 10:33 10 minutes, 33 seconds one year so it's basic and it's a premium category it's it's about 900 to 910 rupees ASP contribution just from 10:42 10 minutes, 42 seconds sneakers uh so it does, you know, materially add to the premiumization. 10:48 10 minutes, 48 seconds Got it. I had a few more questions. I'll get back in the queue. Thank you. All the best. Sure. Sure. Thanks. 10:55 10 minutes, 55 seconds Thank you. The next question is from the line of Gorov Jani from GM Financial. Please go ahead. 11:01 11 minutes, 1 second Uh uh congratulations on a strong set of numbers and thank you for taking my question. Uh my first question is with regards to you know the growth in the 11:09 11 minutes, 9 seconds online format this quarter. It seems you know quite great. uh how much is this you know uh due to the shift of the 11:16 11 minutes, 16 seconds festivity led uh and how much you would see in terms of the core growth uh on the online space also in addition uh if 11:24 11 minutes, 24 seconds you look at the while the number of touch points for you have increased from 28,000 to 29,000 or however if you look at the number of distributors this 11:32 11 minutes, 32 seconds quarter it seems that uh they have come down uh so so if you can help us on these two aspects 11:42 11 minutes, 42 seconds so hi I got or a plug right uh on the two question that you asked specifically on the online front about 2 years back we started pivoting our business from an 11:50 11 minutes, 50 seconds outright based model to a marketplace model right I think we are pretty much uh complete on the journey only one big platform we do uh outright business 11:58 11 minutes, 58 seconds model with them every other platform today sits on a pure marketplace business gives us much stronger control gives us much stronger levers of running this business right and within the 12:07 12 minutes, 7 seconds larger marketplace ecosystem I think uh we have been able to deliver ex extremely uh good performance in certain accounts like Amazon. I think uh the 12:15 12 minutes, 15 seconds pivot from a market outright to a marketplace business has been the strongest in in this channel and which is also uh leading to to the overall 12:24 12 minutes, 24 seconds growth of this uh this vertical. On the general trade side, we have launched a a newer format of a super stock, right? 12:32 12 minutes, 32 seconds And uh smaller wholesalers or smaller distributors have been mapped under the super model and hence you might see a small uh reduction in the oral 12:40 12 minutes, 40 seconds distributor account because those are not that mapped to us. They will be mapped to a intermediary of a super stock system. 12:47 12 minutes, 47 seconds Uh that's helpful. Thanks. Uh just one more thing you know in the past what we have noticed is there has been quite a 12:55 12 minutes, 55 seconds uh a volatility in terms of the quarterly performances that we have seen but going now how confident are you of 13:02 13 minutes, 2 seconds you know at least sustaining these kind of uh trends or performances uh going ahead. 13:09 13 minutes, 9 seconds So Gorov we understand uh you know your apprehensions and uh you know we've we've that's what we've trying to fix. 13:16 13 minutes, 16 seconds We've we've done a lot of interventions over the past three years uh to to bring a sustainable growth uh and predictable 13:24 13 minutes, 24 seconds growth to to the organization and and you'll appreciate that for the past at least two to three quarters we've been consistent in in doing that and and 13:32 13 minutes, 32 seconds therefore you know we have a high degree of confidence on the way forward as a lot of those initiatives which you know 13:41 13 minutes, 41 seconds have been planned for the past 3 years are now materializing and and coming together. Uh so so yeah we have high degree of confidence on the way forward. 13:51 13 minutes, 51 seconds Sure. And just one last question from my end is in terms of the the gross margin expansion that we are seeing and it is also collaborating with the the premium 14:00 14 minutes contribution of the the sneakers portfolio also increasing. So can we take the current uh margins uh the gross 14:07 14 minutes, 7 seconds margin levels at least as a sustainable one uh going ahead uh if not expanding and if you can also help us in terms of the certain cost initiatives that are 14:16 14 minutes, 16 seconds helping you to bring the overall cost up. Uh that would be the last set of questions for me. 14:23 14 minutes, 23 seconds Hi Gorov. Uh yes uh we we targeted an improvement in gross margin versus our last year numbers in in our annual 14:31 14 minutes, 31 seconds business plan and we are uh sort of consistently heading towards that. Uh however our business is dependent on 14:40 14 minutes, 40 seconds seasonality or sort of skewed by seasonality festivals and marriage seasons and also the product mix. We are 14:47 14 minutes, 47 seconds trying to be consistent and uh I mean the next quarter would be more towards 14:54 14 minutes, 54 seconds open footwear. So it would be unfair to compare quarteron-quarter gross margins on a full year basis. That would be a 15:02 15 minutes, 2 seconds right reflection and the aspiration is to improve versus last year. Right. 15:08 15 minutes, 8 seconds And on the cost side of course uh we are trying to be more consistent in terms of phasing of our production. uh that helps 15:17 15 minutes, 17 seconds us to plan our uh facilities or lines and optimize on the cost side which is able to help us in mitigating the 15:26 15 minutes, 26 seconds inflation on account of minimum wages etc and that's what is translating into leverage benefit which is getting reflected in the numbers. 15:35 15 minutes, 35 seconds Sure. So just to go on clarification actually the reason why I asked this question was this time around if you look at the the ad spense the ad spense was quite uh saw decent jump of around 15:44 15 minutes, 44 seconds 65 crores in absolute that we saw. Uh so wanted your comments in this context that is the ad spend this quarter a bit 15:51 15 minutes, 51 seconds more uh higher because of the seasonality and probably this would normal out for the yearly average that we normally have seen in the past. 16:02 16 minutes, 2 seconds Yes, of course. This quarter the ad spends are higher because of our TV campaign and also the digital campaign. Okay. Thank you. 16:10 16 minutes, 10 seconds But you know like it's uh it it was just to give more com clarity on that we uh we are as you know uh focused on 16:18 16 minutes, 18 seconds long-term brand building and we did about 10.2% if I'm correct in quarter 3 last year on the ad spend versus 10.9%. 16:26 16 minutes, 26 seconds So uh this is of course a quarterly seasonality thing as well. At the same time uh uh we will we'll be in line with 16:34 16 minutes, 34 seconds the overall ad spend that we've planned uh the within the budget you know so uh you know we don't want to reduce on the ad spend at this point. 16:46 16 minutes, 46 seconds Sure. And just lastly, sorry if I may slip in one more question. Uh on the the new at leisure uh apparel uh venture if 16:54 16 minutes, 54 seconds you can, you know, give us more insight into what is it just now right now only introduced in the EBOS or is it also 17:01 17 minutes, 1 second piloted in some uh uh MBOS as well? Uh how are you going about it? How are you thinking about it? Some more color you can give on it. 17:11 17 minutes, 11 seconds Sure. So uh it's currently firstly we're very excited to launch this uh entire new category. Uh this has been on our 17:19 17 minutes, 19 seconds bucket list for quite some time and we're glad that we came around to getting it launched. uh basically it's it's it's it's going to you know 17:27 17 minutes, 27 seconds increase our addressable market significantly and we expect because this is a similar model to uh you know how the the bigger companies the MNC's have 17:36 17 minutes, 36 seconds grown across the world and this it's a natural pivot for us as a sports company and organization and this should incrementally add to the per store 17:45 17 minutes, 45 seconds economics uh you know meaningfully uh but at this point it's it's basically a pilot that we've done in about 60 odd eB 17:53 17 minutes, 53 seconds OS uh and this will you know we will uh continue to add more EBOS because there's a small change we have to make into the EBU as well to add a you know 18:01 18 minutes, 1 second trial room and uh uh a certain area dedicated for apparel uh space. So uh as 18:09 18 minutes, 9 seconds we're doing that we'll continue adding more and more uh stores to the mix. Uh but at the same time we've also launched it on our brand.com and Myntra and 18:18 18 minutes, 18 seconds Amazon. Uh so it's been launched on these three platforms at the same time. 18:23 18 minutes, 23 seconds So so far the result is very encouraging. Sure. Thank you. That's all. 18:31 18 minutes, 31 seconds Thanks Gor. 18:33 18 minutes, 33 seconds Thank you. The next question is from the line of Omang Maha from KC Securities. Please go ahead. 18:40 18 minutes, 40 seconds Hi. Uh thanks for the opportunity and congrats uh on a great quarter. Uh my first question was on online. Uh so continuing on what Goro was mentioning, 18:48 18 minutes, 48 seconds you've seen a acceleration in online growth despite a slightly early festive this time around. Uh do you uh are you 18:56 18 minutes, 56 seconds tracking uh share games uh on the platforms? Anything on that front if you can highlight uh based whatever data you get from the platforms. 19:10 19 minutes, 10 seconds So yeah, I mean uh uh we like I mentioned earlier that there is a very strong pivot towards the marketplace 19:18 19 minutes, 18 seconds business and we are aggressively expanding this channel as well. The sneaker pivot has been very strong as well as the women pivot. One of the 19:25 19 minutes, 25 seconds strongest channels to have delivered both of these uh uh key organizational uh directives has been the online channel and I mentioned earlier there 19:33 19 minutes, 33 seconds has been a very strong uh uh shift or or incremental uh uh uptick in our Amazon business as well. We have pivoted 19:40 19 minutes, 40 seconds completely from a an outright plus market business to a complete market business over the last 18 months and we have been able to work a lot on the 19:48 19 minutes, 48 seconds input metrics or or the metrics that are required to succeed. So we're trying to get better at the marketplace operations as much as we can and as well as uh on 19:57 19 minutes, 57 seconds the uh since there is no published data that these channels uh offer us uh I would not be able to comment on that but uh of course there would be some 20:05 20 minutes, 5 seconds improvements for sure looking at our performance. 20:07 20 minutes, 7 seconds Understood. And what was the mix of marketplace versus outright and so apart from there is only one platform 20:16 20 minutes, 16 seconds that we do outright business to that is quick. 20:19 20 minutes, 19 seconds Uh okay to share a percentage of online sales which came from marketplace versus outright 20:27 20 minutes, 27 seconds would be approximately 8020 or like 75 7525 roughly. 20:34 20 minutes, 34 seconds Got it. Got it. And second question was for Sanjay sir. So on this inverted duty structure uh what would be the 20:42 20 minutes, 42 seconds approximate impact if there's no resolution by year end uh for the full year 20:50 20 minutes, 50 seconds we are still evaluating uh I mean as far as raw materials is concerned uh uh we have started filing the refunds with the 20:58 20 minutes, 58 seconds state governments for uh the inverted duty structure. Okay, got it. And just one bookkeeping. 21:07 21 minutes, 7 seconds So could you call out the optical or basically the adjustment in uh business model of uh uh the online platform? What 21:16 21 minutes, 16 seconds was the impact on topline and other this quarter? 21:20 21 minutes, 20 seconds Yeah, for this quarter for this quarter it was approximately 10 cr. 21:26 21 minutes, 26 seconds Got it. Thank you so much guys and all the best. 21:30 21 minutes, 30 seconds Thank you. The next question is from the line of Samir Gupta from India info line. Please go ahead. 21:37 21 minutes, 37 seconds Hi uh good evening sir. Thanks for taking my question. First of all congratulations on a good set of numbers sir. Uh I believe that uh there is a GST 21:46 21 minutes, 46 seconds rate cut for a large part of the products that you sell and uh this quarter would also have seen some impact 21:53 21 minutes, 53 seconds of channel upstocking which is what the feedback is wherever there are GST cuts. 21:59 21 minutes, 59 seconds So if you strip out the or let's say just look at channel upstocking first would you be able to like give us a uh 22:06 22 minutes, 6 seconds uh adjusted number of our growth this quarter if you adjust for that? 22:13 22 minutes, 13 seconds Uh we don't see any channel upstocking I mean our inventory with the channel partners continue to be at 84 days at 22:20 22 minutes, 20 seconds the end of this quarter from our DMS data which hovers in the range of 80 to 90 days. So it is very much uh within 22:27 22 minutes, 27 seconds the norms and uh so far as we believe that we are working on replenishment model. So whatever secondaries are 22:34 22 minutes, 34 seconds happening we are able to uh match it with commensurate primary sales and keeping an eye on the inventory levels with the distributor partners. 22:44 22 minutes, 44 seconds Got it sir. And if I may ask uh uh at a consumer level what would be the price reduction on a blended basis for campus as a company? 22:57 22 minutes, 57 seconds at a consumer level. 22:59 22 minutes, 59 seconds Yeah, we have uh I mean uh at different price points uh we had to change the MRP. So 23:07 23 minutes, 7 seconds let's say uh the MRP reduction would be in the range of 5 to 6%. 23:13 23 minutes, 13 seconds But for you like a large part would be in the range of,000 to 2,500 MRP right? 23:21 23 minutes, 21 seconds All of it actually. 23:23 23 minutes, 23 seconds Yeah. But there the GST cut is from 18 to 5. So technically a 10 11% kind of a price cut should have been passed on, right? 23:32 23 minutes, 32 seconds No, but our price our selling price normally is below,000. No. So it is for us the X factory pricing is normally at 12%. 23:41 23 minutes, 41 seconds You're looking at the MRPs uh Sam, right? uh you're looking at the MRPs but our transaction uh value our 23:50 23 minutes, 50 seconds billing value is like 50% of the MRP approximately as a thumb rule but sir the GST rate would be dependent 23:58 23 minutes, 58 seconds on the MRP only right sorry your if your correction is to at a consumer level the consumer level uh the 24:07 24 minutes, 7 seconds benefit would be higher got it sir got it uh thank you sir thanks for this Uh lastly sir uh with 24:16 24 minutes, 16 seconds free trade agreements being signed I know it's out of context but uh footwware as a sector has become more competitive as an export and given your 24:25 24 minutes, 25 seconds manufacturing progress uh would you be like exploring this opportunity going forward? 24:32 24 minutes, 32 seconds Yeah, absolutely. It is uh it's it's an exciting opportunity uh given that we are one of the lowest cost producers as 24:39 24 minutes, 39 seconds a country, right? So, uh we'll definitely be exploring that market. 24:45 24 minutes, 45 seconds So, any any plans as to capeex or uh uh supply uh uh augmentation in in near future? 24:54 24 minutes, 54 seconds No, we've already invested uh you know as you know into Pantagar and Ponta just came online and stabilized and Pnagar 25:01 25 minutes, 1 second the new investment that we recently announced uh two months uh six four months back is already uh live with 25:09 25 minutes, 9 seconds production. So now we expect to stabilize that plant soon and uh that will definitely add to the existing 25:16 25 minutes, 16 seconds capacity. So we we we're good for for the time being. We don't need to invest more. 25:21 25 minutes, 21 seconds But sir, that would be for the domestic market, right? I mean, if you're exploring newer markets and exports, uh you would still need more capacity plus 25:30 25 minutes, 30 seconds some level of uh business uh exploration etc. some team there or or something on 25:38 25 minutes, 38 seconds those lines also. Right. So adding capacity is not a constraint as we already you know we've invested into the into the building landed building of 25:46 25 minutes, 46 seconds funmear which is anyways very very large uh and we're just activating a small portion of that so we have enough space 25:54 25 minutes, 54 seconds to uh you know add capacity as and when required and it's it's very quick for us like we don't take time to do that. 26:03 26 minutes, 3 seconds Great sir thanks for thanks for this uh I'll be back in the queue for any follow-ups. Thanks a lot. Yeah, sure. Sure. Thanks. 26:11 26 minutes, 11 seconds Thank you. The next question is from the line of Risham Jen from VVT Asset Managers. Please go ahead. 26:20 26 minutes, 20 seconds Yeah. Hi. Hi Nik. So [clears throat] I have uh two questions. First one is with respect to the apperal business. Uh you 26:28 26 minutes, 28 seconds mentioned that you're doing at leisure apparel primarily through EOS right now. Is that correct? 26:35 26 minutes, 35 seconds Hi Risham. No. So it's uh EPOS of course is a big focus but uh we've also launched on brand.com campershoes.com 26:42 26 minutes, 42 seconds and uh Myntra and Flipkart uh sorry Amazon not Flipkart Amazon. 26:48 26 minutes, 48 seconds Okay. And possibly uh compared to the existing footwear business uh this will 26:55 26 minutes, 55 seconds have a much larger online play uh given that this category itself is very large and you are the largest player on the 27:04 27 minutes, 4 seconds footwear side. So that will give some uh kind of uh help uh to you on the online side. 27:13 27 minutes, 13 seconds Yeah, I mean absolutely online is a big market for uh this category. Uh on the offline side, we've we've just started 27:21 27 minutes, 21 seconds with EOS first. We'd like to cover the base of EOS and possibly we can look at the GT model later, but that's like a 27:28 27 minutes, 28 seconds little too early to call that out. uh online would be definitely a key market for us to focus on. 27:36 27 minutes, 36 seconds Okay, understood. And the second one is on the EOS. It's a very small piece right now, but uh uh uh given that uh 27:45 27 minutes, 45 seconds our price points uh which is comparatively much lower than most of the other footwear retail players. 27:55 27 minutes, 55 seconds uh how are we thinking about uh the EBO strategy also in context to most of the foreign brands now uh they are more 28:04 28 minutes, 4 seconds focusing on the experience store rather than a typical retail store so any 28:10 28 minutes, 10 seconds thoughts on the EDO strategy uh yeah absolutely so we've not actually increased the overall count in this last 28:19 28 minutes, 19 seconds one year versus last year FI25 in these 9 months FI26 our count is more or less 28:26 28 minutes, 26 seconds uh static because we've we've shut down a few nonprofitable stores and we've opened a few, right? Uh so currently the 28:34 28 minutes, 34 seconds focus for us uh is on profitability, you know, first we focusing a lot on profitability and and opening stores very judiciously accordingly. So rather 28:43 28 minutes, 43 seconds than just going you know all out on opening stores and adding to the cost. 28:48 28 minutes, 48 seconds So that's that's uh and and you know apparel is a is a big part of that as it'll add to incremental revenues on a 28:56 28 minutes, 56 seconds on a per square ft basis. So uh you know we want to absolutely bring profitability first and then continue 29:05 29 minutes, 5 seconds adding more stores. Uh so possibly going a little bit slower than what we initially anticipated to. 29:13 29 minutes, 13 seconds You may want to add anything. Yeah, on the on the EBO front, right? Uh we are trying to get a unit economics at a store level perfectly right. Uh the 29:21 29 minutes, 21 seconds apperal and the other some ancillary category addition to the store is an effort in that uh direction as well. 29:27 29 minutes, 27 seconds Right. From the uh uh uh we as a strategy wanted to open commercially viable stores because a large part of 29:35 29 minutes, 35 seconds our EBU network is uh operated through our franchise partners, right? So profitability of those partners is is 29:42 29 minutes, 42 seconds very imperative and we want to get that uh economics perfectly right. Uh on on in terms of the experiential stores 29:50 29 minutes, 50 seconds there will be certain uh important stores that we will open. We have had some stores on those lines like Bandra in Bombay and some other stores on those lines. We have had some stores which 29:58 29 minutes, 58 seconds were uh made to exhibit the brand in its in its entirety. But yeah, at an overall level, profitability will be a very 30:06 30 minutes, 6 seconds strong pivot because uh these stores will are being open across the country through a different uh uh multiple 30:13 30 minutes, 13 seconds franchise partner networks and uh uh to ensure that they are making strong returns on their investments. We need to ensure profitability stays at a core. 30:23 30 minutes, 23 seconds But uh this this year since we opened about 300 stores in in in less than four years, right? uh this year we looking at 30:30 30 minutes, 30 seconds as a way to correct our footprint and do a short correction of unit economics and then at after maybe a few months or quarters we will again get back to expansion on this channel. 30:42 30 minutes, 42 seconds Okay, thank you so much. Uh congratulations and uh compliment especially on the working capital the way you guys are managing uh quite uh incredible. So thanks. 30:54 30 minutes, 54 seconds Thank you. 30:56 30 minutes, 56 seconds Thank you. The next question is from the line of Rahan say from three asset managers. Please go ahead. 31:04 31 minutes, 4 seconds Yeah, good evening team and thank you for the opportunity. Like my most of the questions have been answered. So I just want to understanding regarding your uh 31:13 31 minutes, 13 seconds replenishment uh uh models. So sir in season replenishment and never out of stock models are key pillars. So uh 31:21 31 minutes, 21 seconds approximately what proportion of quarter 3 sales came from relevant versus uh 31:27 31 minutes, 27 seconds press launches and how how does this mix influence gross margin inventory risk way forward 31:37 31 minutes, 37 seconds um we couldn't get that completely I think there was some voice uh jittery there but what I understand is you're 31:44 31 minutes, 44 seconds asking about replenishment versus uh uh the core like replenishment is a core model definitely you know that we follow 31:52 31 minutes, 52 seconds it's a it's a DMS and uh and the digital apps that are act that we have on the sales uh uh you know the feet on street 32:01 32 minutes, 1 second that that the sales officers use. Um and through that model we basically replenish the uh the inventory which we 32:10 32 minutes, 10 seconds see at the distributor stock levels uh which is diminishing but which is which has high uh you know sale through. Uh so 32:18 32 minutes, 18 seconds we that's how we replenish and it's an automatic replenishment model. Uh so we're moving towards that direction like currently we're developing technology to 32:27 32 minutes, 27 seconds to auto replenish uh uh you know the depleted stock levels. 32:33 32 minutes, 33 seconds Okay. And like uh just clarification you you have mentioned that uh for this quarter three sales majority of our revenue come from replenishment right. 32:48 32 minutes, 48 seconds Hello am I audible so hi right uh there is there there I'm just trying to explain how the the model 32:56 32 minutes, 56 seconds works right there is a made to stock and made to order model right so we are trying to move as close to the made to order model right we have 33:04 33 minutes, 4 seconds distributor meets and retailer meets that we have have through the year right we have a grand distributor mean that happened in May this year and followed by a host of retailer meets where the 33:13 33 minutes, 13 seconds distributor call the retailer partners And uh and this was done uh in primarily in quarter two this year and extended into quarter three as well. Right? 33:21 33 minutes, 21 seconds Through this mechanism we collect orders through a vi vite host of networks in the general trade site. Right? Plus we have started using digital tools to make 33:30 33 minutes, 30 seconds this even more efficient. We're trying to leverage the inventory visibility in DMS to plan our inventory management. We are using a tool to do order gathering 33:38 33 minutes, 38 seconds at the DMS state at the distributor meet as well as the retail meet. We have a genesis in our uh retail cost through 33:45 33 minutes, 45 seconds which we we use our weekly remission cycle for our EBOs as well and online also we we use unicommerce as a partner through which we run our our daily and 33:54 33 minutes, 54 seconds weekly replacement cycle right so I mean there is no way to distinguish what is replenishment I'm just I thought I will explain the definition of replenishment 34:02 34 minutes, 2 seconds we use basically a secondary tracking mechanism to be able to drive our business objectives right it is not made to stock and then try to push the cement into 34:10 34 minutes, 10 seconds system we take extra uh uh efforts to get input from the market through be eB online or be a generate or retailer 34:18 34 minutes, 18 seconds network and create orders or or products according to that right so that is what our regulation model is oh okay yeah yeah okay okay thank you 34:26 34 minutes, 26 seconds for clarification yeah I'll give you thank you next question is from the line 34:34 34 minutes, 34 seconds of Ankit Kadia from Philip Capital please go ahead answer three questions first is uh for the quarter we saw 5% plus ASP uh 34:43 34 minutes, 43 seconds increase at the same time you mentioned because of the GST we took a 6% or price cut that makes it a nearly 11% on 34:51 34 minutes, 51 seconds product wise you know increase so where are we getting this increase from uh you know in the market 35:01 35 minutes, 1 second can you come back again with your question sure I saw there was a 5% I'm sorry to interrupt there is a background noise from your end that is 35:10 35 minutes, 10 seconds you're not able to understand Sorry, can you please can you hear me now? Yeah, we saw 5% increase. 35:19 35 minutes, 19 seconds We had a 5% ASP increase in the quarter. 35:22 35 minutes, 22 seconds Uh while at the same time you mentioned that there was a 6% you know price cut due to GST. So if the GST cut would not have happened probably the ASP increase 35:30 35 minutes, 30 seconds would have been 11% uh 12% odd. Where are we getting this ASP increase from at the full portfolio? 35:38 35 minutes, 38 seconds Okay, Ankit uh I think your understanding is incorrect. GST never gets added to my sales revenue. No. And hence will not impact my ASP. 5% 35:48 35 minutes, 48 seconds increase in my ASP during the quarter is primarily driven by improvement in mix and it is two types of mix. One is your 35:57 35 minutes, 57 seconds channel mix and one is the product category mix. So in the product category side, our sneaker has shown uh almost 36:04 36 minutes, 4 seconds doubled versus last year. So that is one key contributor and on the other side on the channel side the more we sell in the 36:11 36 minutes, 11 seconds marketplace uh we and our own brand.com we are able to uh get a better realization and that results in a 36:19 36 minutes, 19 seconds improvement in ASP. So uh the the GST has nothing to do with my ASP because that's never part of my sales revenue. 36:28 36 minutes, 28 seconds Understood. Uh my second question is on the revenue contribution then uh we saw upwards of 1,500 rupees contribution 36:34 36 minutes, 34 seconds increase from 53 odd% to 58%. Uh while I understand on sneaker portfolio which would be sub,000 uh you know that contribution increasing from 16 to 21%. 36:44 36 minutes, 44 seconds Uh what has led to the above 1500 uh contribution? 36:52 36 minutes, 52 seconds So it's it's it's uh again as I mentioned the second lever the channel lever. So on on the online site the 36:59 36 minutes, 59 seconds realizations are higher and hence the uh the uh what you call salency has shifted 37:06 37 minutes, 6 seconds uh from 1200 to 1500 more towards 1500 and above and that's what is getting reflected. 37:13 37 minutes, 13 seconds Is it a conscious effort to reduce inventory uh in,000 to 1500 price point? 37:24 37 minutes, 24 seconds we uh I mean there's always an effort to uh move towards premiumization. So my 37:30 37 minutes, 30 seconds sneakers are my realization is higher the MRP is also higher. So that ways uh the the brackets would change towards 37:39 37 minutes, 39 seconds premium mix but it's also a seasonality anit it's 37:46 37 minutes, 46 seconds also a seasonality uh mix because quarter three of course we sell higher premium uh mix slightly higher premium 37:55 37 minutes, 55 seconds than let's say quarter 1 which would be more focused or quarter yeah quarter one which would be more focused towards open 38:01 38 minutes, 1 second category right so um there could be some changes in terms of that mix on 38:08 38 minutes, 8 seconds quarteronquarter basis also in terms of the premiumization and semi premium salency 38:15 38 minutes, 15 seconds referring to more on y basis because quarter 3 fi25 uh numbers we have and on that basis you know even in sub,000 38:24 38 minutes, 24 seconds price point we have seen a good 400 450 bips movement uh you know sub,000 so that I can understand it it could be you 38:31 38 minutes, 31 seconds know due to you know the sneakers where you said average is 900 950 rupees price point but you know the gap between 1,000 38:40 38 minutes, 40 seconds and500 from 31% to 20% odd is a very big change in positioning also uh in the category. 38:50 38 minutes, 50 seconds Sure. That is also in part to some of the sneakers, you know, that has uh that have done very well for us uh in the 38:59 38 minutes, 59 seconds 1500 plus category, right? So, their salency has also uh added to to this mix 39:06 39 minutes, 6 seconds change. Uh yeah, and on on the like just just I think there is a bit of a confusion when you mentioning 900, right? When we're 39:14 39 minutes, 14 seconds talking about 900 as the the ASP for for uh uh sneakers, right? that is my my ASP 39:21 39 minutes, 21 seconds in my revenue right and the table I think you're referring to is the MRP table the share of 1500 to 3,000 that you're referring to in the table that's the MRP table so that 900 would 39:30 39 minutes, 30 seconds correlate to about 1,800 MRP right so just to just to clarify these things right so the 900 is my realization MRP 39:38 39 minutes, 38 seconds of the product would be tentatively about 17800 sure get it uh my last question is on your new brand ambassador now PP son was 39:45 39 minutes, 45 seconds a brand ambassador of a competitor retailer for 3 to four And in that time if I look at that retailer's revenue it didn't move significantly. In fact they 39:53 39 minutes, 53 seconds lost significant market share. So what made you sign her as a brand ambassador for the new youth women product? 40:01 40 minutes, 1 second Well she uh we we think she resonates very well with the brand uh long-term brand building aspirations that we have 40:07 40 minutes, 7 seconds and u and she has significantly contributed. I mean the campaign has done incredibly well. So I'm not sure of 40:15 40 minutes, 15 seconds her past or like whatever happened in the previous company but uh but she's uh she's she's done extremely well uh in 40:23 40 minutes, 23 seconds terms of consumer pull you know has has been significant as the women category as you know has grown by almost 40%. So 40:30 40 minutes, 30 seconds yeah some share of that credibility we we'll have to credit her also to that. 40:36 40 minutes, 36 seconds Understood. Uh thank you Nikl and all the best. 40:42 40 minutes, 42 seconds Thank you. A reminder to all the participants that you may please press star and want to ask questions at this time. The next question is from the line of Dwan Shu Bansil from MK Global. 40:53 40 minutes, 53 seconds Please go ahead. 40:55 40 minutes, 55 seconds Yes. Hi Nikil. Uh congratulations for a growth sum. Uh Nikl first question is on 41:02 41 minutes, 2 seconds leisure category. Uh the growth is uh struggling for quite some time now right. So this is the data that is available uh for some of the publicly 41:11 41 minutes, 11 seconds listed players and we'll be competing against various MNC brands uh over the 41:17 41 minutes, 17 seconds preferred online channel um uh where uh all these players are also present. So I just wanted to check how have we 41:24 41 minutes, 24 seconds positioned our products uh uh to sort of gain share uh within this category. 41:31 41 minutes, 31 seconds So yeah know great question. So firstly you know of course uh this is part of our strategy in terms of leveraging the 41:39 41 minutes, 39 seconds brand equity that we've created over the years right and as you know we are very very strong in the uh in the tier 2 and three markets and now tier one as well 41:47 41 minutes, 47 seconds is is the share is very significant. So this is uh a very good uh add-on you know supplementary category to to invest 41:56 41 minutes, 56 seconds for us as a brand like it may not be a very good decision for a newcomer but for a mature brand like us it makes a 42:02 42 minutes, 2 seconds lot of sense. Uh and at the same time like the quality and the price points that we have launched it is is is very 42:09 42 minutes, 9 seconds very attractive. So very high quality at very uh reasonable pricing right. uh as we understand it is a competitive space. 42:17 42 minutes, 17 seconds So it will take some time to build this category up for sure. Uh but the pilot so far has been very encouraging and and also uh currently the mix that we've 42:26 42 minutes, 26 seconds launched in this is most more to a summer apparel. U the winter collection is is is still quite fairly new and and 42:34 42 minutes, 34 seconds like less in terms of SKUs. So, uh, as we progress into the summer season, we we sure that we're going to get, uh, an even better response on on top of this. 42:46 42 minutes, 46 seconds Great sir. Uh, and second, uh, uh, as there is this big DST reduction that has happened, uh, for the upcoming launches 42:56 42 minutes, 56 seconds for the new season launches that will that will take place now. Uh so I wanted to check will we be working with uh 43:03 43 minutes, 3 seconds lower MRP price points or uh we are focusing on providing better products at similar preGST MRP price points. 43:15 43 minutes, 15 seconds Yeah, the the value proposition definitely will increase significantly, right? So, uh for example, the same shoe 43:22 43 minutes, 22 seconds for 1,500 bucks, 1499 will have significantly more value than it what what it previously had in terms of the new product launches. 43:32 43 minutes, 32 seconds So, the MRP uh that magic price points that we operate at right so they will broadly remain stable and uh we will be 43:39 43 minutes, 39 seconds providing better products is the right understanding, right? 43:43 43 minutes, 43 seconds Absolutely. Yeah. So there'll be more value addition if I can put it crudely like there'll be definitely more value addition in the same price point. 43:52 43 minutes, 52 seconds Understood. Understood. Um and uh last question from May. So uh 44:00 44 minutes when we see from a demand environment uh post this big GST cut uh if you can share your reading uh uh from the 44:08 44 minutes, 8 seconds channel perspective uh because our growth has definitely picked up uh but there are certain new businesses like 44:15 44 minutes, 15 seconds women sneakers etc which have added to the overall growth. Uh the like to like growth in say men's footwear would still 44:23 44 minutes, 23 seconds be relatively lower versus the company average if my assumptions are right. So what's your reading on um the demand 44:31 44 minutes, 31 seconds environment as of now? Has it improved or it is still a bit of a challenge? 44:38 44 minutes, 38 seconds So demand has improved uh to the extent that it normally does uh uh a little bit better of course in terms of the season 44:46 44 minutes, 46 seconds as well in terms of quarter 3 uh and and after GST cut it has improved a little but I would say the it may improve 44:54 44 minutes, 54 seconds further going forward because it's still not uh as per you know what the industry is expected and this is for the entire industry like the the demand hasn't 45:03 45 minutes, 3 seconds picked up the way the industry anticipated it to Um uh and in terms of the growth so what has what we have done 45:11 45 minutes, 11 seconds is like we've added and into and you know diversified into newer categories like uh increasing the share of sneakers 45:18 45 minutes, 18 seconds and women and you know so these are the ancillary categories that have helped us uh overcome this uh demand let's say 45:28 45 minutes, 28 seconds stagnation or whatever you want to call it in the market. uh and as the GST benefit over time starts flowing into 45:35 45 minutes, 35 seconds into the overall industry demand it should definitely help us as a tailwind as well. 45:42 45 minutes, 42 seconds Uh so just one small final bookkeeping question um uh from a channel uh margin perspective I'm talking about say a 45:50 45 minutes, 50 seconds retailer or a distributor how are their margins are they on MRPs or there's a fixed component that they get on selling 45:59 45 minutes, 59 seconds a pair of shoes. So suppose if the MRP is 1,500 so the retailer gets like say whatever 46:06 46 minutes, 6 seconds amount 20 30% of that uh MRP or is it like a fixed amount uh that he gets uh 46:12 46 minutes, 12 seconds for selling that pair we have uh different margin structures 46:19 46 minutes, 19 seconds both for uh retailers and distributors to take care of by and large their fixed 46:25 46 minutes, 25 seconds cost and uh uh we do run periodic or seasonal schemes or incentive programs which are targeted both for primary and 46:34 46 minutes, 34 seconds secondary uh to drive certain behaviors uh let's say if I want to propel a women category or I want to propel some sales 46:43 46 minutes, 43 seconds in a higher price point so those all are through tactical uh seasonal schemes uh however there are defined margin 46:51 46 minutes, 51 seconds structures for both distribution and retail channel to take care of their uh fixed costs no so these margins are percentage of 47:00 47 minutes MRP or what is the uh uh what do we say the yes uh anchor point they are no they are on a percentage to 47:08 47 minutes, 8 seconds MRP and not uh per pair basis and even for distributors or or or for 47:15 47 minutes, 15 seconds distributors it is on percentage of what you bid to them no everywhere it is percentage to MR 47:24 47 minutes, 24 seconds okay great sir thank you so Thank you. The next question is from the 47:32 47 minutes, 32 seconds line of Ali Akar Shakir from Motilal Oswal Mutual Fund. Please go ahead. Yeah. Hi Nicl and Sanjay. How are you? 47:40 47 minutes, 40 seconds Thanks for the opportunity. Uh just wanted to understand on the demand side. 47:44 47 minutes, 44 seconds So you know I mean uh uh pretty commendable numbers. uh we have uh not seen you know similar kind of growth by 47:51 47 minutes, 51 seconds other footwear companies which have posted or you know are likely to post now. So if you can just share some color in terms of you know what has driven uh 48:00 48 minutes numbers for us visav others uh I I understand that you know online has been uh a big driving force for you. Uh so if 48:09 48 minutes, 9 seconds you can just share some more insight over here because online historically we were having multiple models and uh you know uh uh the outright model that you 48:17 48 minutes, 17 seconds were selling uh you know didn't really work so how have things changed and uh you know I mean uh what is the sustainability of this growth? 48:28 48 minutes, 28 seconds Hi Ali. No, so like we've u already called out uh in the call uh so multiple initiatives you know we've taken so 48:36 48 minutes, 36 seconds demand certainly isn't as expected you know by the industry it's not picked up as much as is evident you know from the other companies results also. Uh so what 48:45 48 minutes, 45 seconds has worked differently is that a culmination of uh things like sneakers, women sneakers portfolio edition and 48:52 48 minutes, 52 seconds women's uh uh we've added to [clears throat] the women's category significantly in terms of the SQ and the NPD launches have been very well 49:00 49 minutes received along with the brand ambassador. So you know that's worked really well and apart from that uh online of course it's a big focus area. 49:09 49 minutes, 9 seconds uh it's always been but we've also been very aggressive online uh along with the profitability not just it's not just a 49:17 49 minutes, 17 seconds uh a burn model for us it's it's it's profitable you know more than I think the other companies that operate on and of course we've added on to in terms of 49:26 49 minutes, 26 seconds GT general trade we've added a number of retailers as well like 29,000 count is the first time we've reached that kind 49:33 49 minutes, 33 seconds of count so uh that has given much more predictability to the the cash cow channel for us which is uh the 49:41 49 minutes, 41 seconds distribution channel right so number of these things it's not just a it's not nothing has changed for us in one quarter is is what I'm trying to say 49:49 49 minutes, 49 seconds this is a culmination of the effort for the past two years you know like the range any any any product range that we 49:56 49 minutes, 56 seconds need to launch today uh the the journey for that starts at least at least a year you know before like we have to 50:04 50 minutes, 4 seconds conceptualize and think about the future products that have to be launched So for example currently we're working on 2027 range 26 is already done and 50:13 50 minutes, 13 seconds dusted right for us like it's already in the bag. So, so that's how that that's the that's the cycle you know in terms of innovation and product development 50:21 50 minutes, 21 seconds that we work on and uh so whatever has happened in this quarter is is of course uh incredible 50:29 50 minutes, 29 seconds performance by the sales team uh and and at the same time you know we were able to execute very well in terms of all the 50:37 50 minutes, 37 seconds u demand that was generated for the articles right so u yeah it's it's just number of 50:46 50 minutes, 46 seconds things coming together. I would put it like that. 50:50 50 minutes, 50 seconds Got it. It's very useful. So incremental growth if you can share how much has come from the women category as well as 50:57 50 minutes, 57 seconds the new sneaker category that you have launched and um I understand this would have come mainly on the online channel given that is the segment which has grown significantly. 51:09 51 minutes, 9 seconds So sneaker has done uh well across both the platforms across distribution and online you know right. So distribution 51:17 51 minutes, 17 seconds of course the MRPs would be slightly lower than uh uh than online but overall 51:25 51 minutes, 25 seconds like sneaker has been very well accepted across platforms and um uh you know we 51:31 51 minutes, 31 seconds don't see uh so we see a healthy growth going forward. So that that's where we've invested in terms of capacities as well. Uh to make very high-end sneakers 51:40 51 minutes, 40 seconds uh you know and I don't think many setups exist in India today at least to manufacture these quality sneakers the one that we've invested in. 51:50 51 minutes, 50 seconds Okay. So could you share in out of this 14% growth how much would have been your new products specifically the women and sneaker category would have contributed to your growth? 52:01 52 minutes, 1 second Uh we don't share that data ali unfortunately. uh uh because it's it's it's like a strategic confidential data 52:08 52 minutes, 8 seconds right so sure and that is what has also driven your margins uh the uh you know I mean improved realization is uh and margin is 52:18 52 minutes, 18 seconds mainly because of the new products uh coming at slightly higher price point uh yeah Ali I I would uh attribute that 52:27 52 minutes, 27 seconds margin expansion uh primarily to the mix part as I mentioned earlier it is both the lever was product mix and which is 52:35 52 minutes, 35 seconds sneakers and the channel mix which is online. So both played its role as far as material or uh gross margin is 52:42 52 minutes, 42 seconds concerned and uh we are highly skewed towards quarter three. This is our biggest quarter. So that has resulted in 52:50 52 minutes, 50 seconds uh some leverage also fixed cost leverage which has helped us to expand our margins. 52:57 52 minutes, 57 seconds Got it. and going now into the new season. You think I mean uh this kind of growth is sustainable with the new products that you have launched and the amount of funnel that you are creating 53:06 53 minutes, 6 seconds towards uh you know creating new products. 53:11 53 minutes, 11 seconds Uh again I think it's a forward-looking statement. I would refrain from commenting on that. However, uh our sales are like each quarter is a 53:20 53 minutes, 20 seconds different quarter by virtue of seasonality uh festival occasion or marit season 53:27 53 minutes, 27 seconds and uh as I mentioned initially that quarter 4 would be the later part would be more towards open footwear. So we 53:36 53 minutes, 36 seconds need to take that into perspective both in terms of uh uh in terms of uh revenue and and also in terms of product mix. 53:45 53 minutes, 45 seconds Yeah, I understand that that part but like Mr. Shakir, I'm sorry to interrupt you, sir. I would request you to for followup question. Sure. 53:54 53 minutes, 54 seconds Thank you. 53:55 53 minutes, 55 seconds We'll take the next question from the line of pages sha from Evan the Spark Institutional Equities. Please go ahead. 54:03 54 minutes, 3 seconds Uh hi, thanks for the opportunity. Uh so you've highlighted sneakers and and new category women category as a key growth 54:10 54 minutes, 10 seconds lever for this quarter. uh what percentage of our network is currently uh dealing in this products. 54:23 54 minutes, 23 seconds I just plug aside every part of our network today primarily would be dealing in these two categories. The extent of 54:31 54 minutes, 31 seconds penetration of these categories will be different depending on the evolution of the channel. A more modern channel will have a slightly higher share of women's 54:38 54 minutes, 38 seconds and sneakers. a slightly traditional channel will have a lower share but there would be no channel currently in our ecosystem where we would not be focusing on these categories. 54:47 54 minutes, 47 seconds Does that answer your question? 54:49 54 minutes, 49 seconds Yeah, it does. So, so basically as of today whichever uh channel fit that we we uh understand the products are placed 54:58 54 minutes, 58 seconds there. So there is not uh placement lever is not there from here on. Is that the right understanding? 55:06 55 minutes, 6 seconds penetration placement can be wider placement can be deeper right so those levers will always keep on getting 55:13 55 minutes, 13 seconds activated even if you're there in 300 stores you can always be in 400 stores right so that will never stop I think uh and since the these are newer categories 55:21 55 minutes, 21 seconds from our evolution I think there will always be scope for further enhancement of these categories the scale and the quantum of growth will of course over 55:28 55 minutes, 28 seconds time uh taper once we reach a critical mass but I think they will uh continue to grow drivers for us at least in the near future. 55:38 55 minutes, 38 seconds Perfect. Very clear. Second, uh what's the primary uh kind of value proposition that is working for us in sneakers? Is 55:46 55 minutes, 46 seconds it largely fashion or functionality or is it is it performance and price? Uh obviously the answer could be all of 55:53 55 minutes, 53 seconds this but uh just as as a key proposition what is working by the construct of this category it 56:02 56 minutes, 2 seconds works on fashion and look and feel more than functionality. That is the reason why consumers buy this category to look good and not to go for a run right that 56:10 56 minutes, 10 seconds is the intrinsic nature of this category. So this category first pivots on on on fashion and look and look and feel but also the added we would want to 56:19 56 minutes, 19 seconds since we as a brand have been known for our value provision of comfort and durability we would build these added advantages to every product that we do 56:27 56 minutes, 27 seconds right so that that underlying value proposition of campus will never go away but of course this category being a fashion-driven category or or a 56:35 56 minutes, 35 seconds something you wear to look good right so that fashion element will always be there and hence we try to take aspiration and inspiration from the best in the industry or from the leading trends of the market. 56:45 56 minutes, 45 seconds Sure. And last one uh a followup here uh in in this stage of uh product uh NPD evaluation and then acceptance also how 56:54 56 minutes, 54 seconds do we get confidence that uh there is a demand pull or or repeat purchase which is getting created and then hence there 57:01 57 minutes, 1 second is a very wider acceptance of the product and not just the initial uh uh initial kind of push growth which is happening. 57:10 57 minutes, 10 seconds So I mean the first phase uh of course is to get the products placed right there is there there is a demand generation which we do through our 57:18 57 minutes, 18 seconds partner network be our partners can be our distributors can be our review partners can be LFR partners can be our online partners right we take inputs from them in terms of what is the 57:26 57 minutes, 26 seconds requirements we create products accordingly we do our consumer immersions we understand what is happening in the market what is happening in other countries what's happening in competition what's 57:34 57 minutes, 34 seconds happening as from a trend point of view right then our first objective is to get these products placed in the market to the extent possible. Right? So there has 57:41 57 minutes, 41 seconds to be a minimum throughput placement to drive understanding of the the the success of the product. Right? Both that we do understanding of feedback from a 57:50 57 minutes, 50 seconds retailer or a consumer point of view to understand what works well and what doesn't. We have a very big network of our own stores as well. Right? 300 store 57:57 57 minutes, 57 seconds is a very big base for us to do any form of AB testing that we want to do. Right? 58:01 58 minutes, 1 second So we get that feedback and depending on the feedback and the response we we know whether this will be one of our top iconic products or will it be a great 58:08 58 minutes, 8 seconds product or it may not be as high a volume as we might have anticipated. 58:12 58 minutes, 12 seconds Right? So that is after the first act primarily goes into reach and then depending on the consumer or retailer's point of view we take a call on how do 58:19 58 minutes, 19 seconds we repent but our first is is wide enough to ensure that we get a very strong uh data input from the market. 58:27 58 minutes, 27 seconds Quite clear. Thanks and all the best for coming quarters. Thank you. 58:33 58 minutes, 33 seconds Thank you. Due to time constraint, that was the last question for today's corn call. On behalf of Campus Activeware Limited, that concludes this conference. 58:42 58 minutes, 42 seconds Thank you for joining us. And in case of any further queries, please reach out to Campus Active investor relations team at Iirdampusshw.com. 58:53 58 minutes, 53 seconds I repeat, Idcampusshw.com. 58:57 58 minutes, 57 seconds Once again, thank you ladies and gentlemen. And you may now disconnect your lights.