Cantabil Retail India Limited — Q3 FY26

Cantabil Retail India Limited Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=JyBgwyMGF4E Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to the Canabil Retail India Limited Q3 and 9 months FY26 earnings 0:09 9 seconds conference call. As a reminder, all participant lines will be in the listen only mode and there will be an 0:16 16 seconds opportunity for you to ask questions after the presentation concludes. 0:21 21 seconds Before we begin, a brief disclaimer. The presentation which Canabil Retail India Limited has uploaded on the stock 0:28 28 seconds exchange and their website including the discussions during this call contains or may contain certain forward-looking 0:35 35 seconds statements concerning Canavville Retail India Limited business prospects and profitability which are subject to 0:43 43 seconds several risk and uncertainties and the actual result could materially differ from those in such forward-looking statements. 0:52 52 seconds Should you need assistance during this conference call, please signal an operator by pressing star 10 on your 0:59 59 seconds touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vijay Pansel, CMD, Canavville Retail India Limited. 1:10 1 minute, 10 seconds Thank you and over to you sir. 1:15 1 minute, 15 seconds Good evening everyone. On behalf of Pentville Retail India Limited, I extend a warm welcome to all participants 1:25 1 minute, 25 seconds joining us for the Q3 and 9 month FY26 earnings conference call. Joining me 1:33 1 minute, 33 seconds today are Mr. Deepak Benson full-time director, Mr. Basant Goen, whole time director, Mr. Suender Nigam, Chief 1:41 1 minute, 41 seconds Financial Officer, Mr. Mrs. Punam company secretary and our investor relations advisor from Metron Capital. 1:52 1 minute, 52 seconds We trust you have had the opportunity to review our Q3 and 9 month FY26 results. 2:00 2 minutes The earnings presentation and financial statements are available on the Stories 2:07 2 minutes, 7 seconds and the company website. We are proud to report another landmark quarter with 2:15 2 minutes, 15 seconds profit of 45.1 crores reflecting the strength of our 2:22 2 minutes, 22 seconds strategy robust 9 month FY26 performance 2:28 2 minutes, 28 seconds including 20% revenue growth 27% pet growth and a strong 6.3 same store 2:37 2 minutes, 37 seconds growth SFG demonstrates the enduring trust of our customers. The recent GSP 2:46 2 minutes, 46 seconds rationalization has provided a meaningful boost to consumer sentiment, 2:52 2 minutes, 52 seconds further supporting demand across our portfolio. We continue to expand our footprint while deepening customer engagement. 3:04 3 minutes, 4 seconds We believe that companies with strong brand equity, fast execution and 3:10 3 minutes, 10 seconds extensive retail reach are best position to capture this upstream. 3:17 3 minutes, 17 seconds Our continued investment in store expansion, product innovation and 3:24 3 minutes, 24 seconds customer experience provide a solid foundation for the next phase of growth. 3:31 3 minutes, 31 seconds Importantly, we are progressing well on our vision 2027, 3:37 3 minutes, 37 seconds a strategic blueprint aimed of expanding our retail presence and reach, improving 3:44 3 minutes, 44 seconds efficiencies and cementing Delta's position as a dominant force in India's fashion app. 3:55 3 minutes, 55 seconds I know I now hand over the code to Mr. 3:59 3 minutes, 59 seconds Nigham for giving update on the financial and operational performance of the quarter. Thank you. 4:13 4 minutes, 13 seconds Thank you sir and a warm welcome to everyone. 4:17 4 minutes, 17 seconds Standalone performance highlights for Q3 FY26. 4:20 4 minutes, 20 seconds Revenue from operations for Q3 FY26 grew by 19% to 264.4 4 cr as compared to 222.6 cr in Q3 FY25. 4:32 4 minutes, 32 seconds AITA for Q3 FY26 grew by 31% to 95.2C cr as compared to 72.5 CR in Q3 FY25. 4:42 4 minutes, 42 seconds AITA margin for Q3 FY26 improved to 36% as compared to 32.6% in Q3 FY25. 4:50 4 minutes, 50 seconds packed for Q3 FY26 grew by 31% to 45.1 CR as compared to 34.4 CR in Q3 FY25. 5:01 5 minutes, 1 second Pat margins for Q3 FY26 improved to 17.1% as compared to 15.4% in Q3 FY24. 5:10 5 minutes, 10 seconds Now standalone performance highlights for 9 month FY26. 5:15 5 minutes, 15 seconds In 9 months revenue from operations for 9 month FI26 grew by 20% to 599.1 cr as compared to 501.3 cr in 9 month FY25. 5:25 5 minutes, 25 seconds A beta margins for 9 month FI26 grew by 27% to 186.2 cr as compared to 146.4 cr in 9 month FY25. 5:36 5 minutes, 36 seconds AITA margins for 9 month FY26 improved to 31.1% as compared to 29.2% in 9 month FY25. 5:45 5 minutes, 45 seconds Coming to packed for 9 month FY26 grew by 27% to 66.5 crores as compared to 52.3 cr in 9 month FY25. 5:55 5 minutes, 55 seconds PAT margins for 9 month FY26 improved to 11.1% as compared to 10.4% in 9 month FY25. 6:04 6 minutes, 4 seconds On the operational front, we continued to scale efficiently with a total of 646 stores across the country covering a 6:11 6 minutes, 11 seconds total retail area of 8.82 lakh square ft. These results are from the strength of our business model and our ability to drive consistent highquality growth. We may now open the floor for Q&A session. 6:22 6 minutes, 22 seconds Thank you. 6:24 6 minutes, 24 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please 6:33 6 minutes, 33 seconds press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 6:39 6 minutes, 39 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will 6:48 6 minutes, 48 seconds wait for a moment while the question Q assembles. 6:54 6 minutes, 54 seconds The first question is from the line of Pavan from Ratna Tria. Please go ahead. 7:03 7 minutes, 3 seconds Okay. line. Uh what what what is the square feet uh for uh uh the mature 7:10 7 minutes, 10 seconds stores or uh that you have used to calculate the SST and what was the revenue square? This is an out. 7:20 7 minutes, 20 seconds So you I think uh voice was not here. 7:22 7 minutes, 22 seconds Your question is what is a um per square in terms of mature stores and how right? 7:29 7 minutes, 29 seconds Yeah. statement of those jobs. Correct. 7:39 7 minutes, 39 seconds Uh I'm using my handset. Is it not clear? Yes sir. Go ahead. 7:43 7 minutes, 43 seconds It's not completely clear. Can you please repeat the question again please? 7:48 7 minutes, 48 seconds what is the square area that has been used to calculate uh the SSD which is 7:54 7 minutes, 54 seconds like for the m mature stores and also what is the revenue per square ft of the mature stores that has been used to 8:01 8 minutes, 1 second calculate that particular SS uh I can uh broadly give you the answer 8:08 8 minutes, 8 seconds if I'll take my per square sale which we can be considered as a matured last year the uh overall store running for the 8:16 8 minutes, 16 seconds year this here that is the uh 100 for the quarter it is, 2018 as compared to 8:22 8 minutes, 22 seconds 962 last year and if I'll take 9 months it is 790 rupees per square ft as 8:29 8 minutes, 29 seconds compared to 743 rupees square ft last year so which can be taken L2L as a maturity store 8:37 8 minutes, 37 seconds that is revenue per square feet that is the number that you gave us right correct yes yes revenue per square what would be the 8:45 8 minutes, 45 seconds and what would be the square ft uh that you have used to calculate it exactly 8:53 8 minutes, 53 seconds I mean what area right agree agree so our total area is 88 8 our total area is 9:00 9 minutes 8.82 lakh square ft but the question I replied in terms of L2A that is 7.08 08 square ft lags. 9:09 9 minutes, 9 seconds Okay. 9:09 9 minutes, 9 seconds Because for for this matured store I'm taking the definition of L2L and the difference is this one. So newest store in last one year has been removed. 9:19 9 minutes, 19 seconds Right. Okay. Got it. Got it. Thank you. 9:22 9 minutes, 22 seconds So guys the answer I got was it was 1018 revenue per square ft. 9:30 9 minutes, 30 seconds Correct. LTL. Yeah. Okay. Okay. Thank you. Thank you sir. 9:38 9 minutes, 38 seconds The next question is from the line of Ankit Sha from White Equity Investment Advisor. Please go ahead. 9:46 9 minutes, 46 seconds Thanks for taking my question. Uh sir, employee cost is very well controlled. 9:51 9 minutes, 51 seconds Uh so how are we managing this in spite of the store expansion? Uh can you help us understand this better and uh also share the trajectory going forward? 10:04 10 minutes, 4 seconds So what I got the question is salary is being man uh maintained right? 10:11 10 minutes, 11 seconds Yes. So employee cost yeah salary cost is very well controlled uh the salary cost is not growing that fast uh in 10:19 10 minutes, 19 seconds spite of the store expansion. So how are we able to manage this uh and the trajectory going forward? 10:26 10 minutes, 26 seconds So our store uh is approximately 9 to 10% right. So this is the third quarter. 10:33 10 minutes, 33 seconds So obviously when the third quarter revenue is slightly higher but overall uh 10% is my salary cost at this front end level and going forward the trajectory will be approximately same. 10:42 10 minutes, 42 seconds So we are controlling in a manner that this is approximately plus - half% is a different thing otherwise it's approximately 10% 9 to 10% and going forward in the same trajectory. 10:56 10 minutes, 56 seconds Okay. Uh can you share the number of stores uh in the franchise model uh as of December 25? 11:04 11 minutes, 4 seconds The total number of franchisee stores is 131 out of total 646 which is 20%. 11:11 11 minutes, 11 seconds Perfect. Uh okay. Uh and sir in case of franchise stores the inventory is on their books or is the inventory in our books only the finished inventory lying 11:20 11 minutes, 20 seconds over franchise inventory in all the stores including franchisee stores in company's book it's a stock transfer and 11:28 11 minutes, 28 seconds all the u merchandise which is sold to the end user is in company's GSTN. So including franchisee stores all 646 11:35 11 minutes, 35 seconds stores inventory is coming in company's book. 11:39 11 minutes, 39 seconds Perfect. So in case of franchisee uh they own or rent the store on their books but inventory is all the front is 11:48 11 minutes, 48 seconds there all the front end cost is there are getting a fixed commission net of GST whatever they are selling in a monthly basis they are getting a uh 11:57 11 minutes, 57 seconds commission which is in the range of 27 to 28% and all the front end cost including rentals salaries of their employees electricity all front end cost 12:06 12 minutes, 6 seconds to be by them and we are taking the deposit against the inventory what we are supplying. 12:12 12 minutes, 12 seconds Perfect. So the commission expense in the annual report uh that was about 6% of that largely that 12:19 12 minutes, 19 seconds so this is okay. Okay. So that is from my side. Thank you. Thank you so much. 12:26 12 minutes, 26 seconds Thank you sir. The next question is from the line of Nitik from NV alpha fund. Please go ahead. 12:34 12 minutes, 34 seconds U hi sir. Uh uh thank you for taking my question. So my question is you know we've we've seen about five or 6% of SSG 12:41 12 minutes, 41 seconds give or take and and with that we have done almost 26% clean this AITA margin. 12:46 12 minutes, 46 seconds So I and if I look at your three Q uh you know it's usually uh very good in terms of AIDA margins both in topline 12:54 12 minutes, 54 seconds and margin. So I want to understand the seasonality better because if I look at the gross margins they are not as high you know but your AITA margins are so uh 13:03 13 minutes, 3 seconds it's clearly not better pricing that you are getting in 3Q which is leading to this. So I want to understand the seasonality in the margins absolutely so 13:12 13 minutes, 12 seconds uh we need to understand how the sales is going right. So always Q3 is better in terms of sales because ticket value 13:21 13 minutes, 21 seconds due to winter is high. Now the you said the margin is same 60% margin quarter on quarter say we have been maintaining but the store expenses are mostly fixed in 13:29 13 minutes, 29 seconds nature. So that is why I always see third quarter aa or in fact margin is always very high because sales is higher 13:37 13 minutes, 37 seconds and better margin we are getting because mostly fresh sale is also there October was almost there then so third quarter 13:44 13 minutes, 44 seconds sale in terms and we are maintaining obviously the gross margin at a same level. So that is why this quarter particularly your AIA margin is high. 13:54 13 minutes, 54 seconds Got it. So so basically if I were to put it in one sentence is because the ticket size is higher average bill value higher compared to other bottle that business model. 14:04 14 minutes, 4 seconds Correct. Absolutely. Yeah. 14:06 14 minutes, 6 seconds Perfect. And sir another question is you know there was some graduity uh provisions or changes made. So have we taken those in the employee cost are you 14:14 14 minutes, 14 seconds yet to take it or the impact of all been considered all been considered all the graity employees quarter on quarter basis everything has been 14:22 14 minutes, 22 seconds considered there's nothing we are already providing the new labor law codes so everything has been taken care of everything has been accounted for in these numbers only 14:30 14 minutes, 30 seconds got it got it got okay sir that's it from a side I'll follow back in the queue I have questions thank you thank you sir the next question is from 14:39 14 minutes, 39 seconds the line of hers from Anandraati Please go ahead. 14:45 14 minutes, 45 seconds Um good evening. Congratulations on a great set of numbers. Just a couple of questions from my end. 14:53 14 minutes, 53 seconds Yeah. So just a couple of questions. So what would be the sustainable level of SSD that we are targeting going forward in the next two one or two years? 15:04 15 minutes, 4 seconds Same in any of the earlier commentary as well. We are targeting 6% 5 to 6% which is a long-term sustainable number maybe couple of quarter up and down but 15:13 15 minutes, 13 seconds long-term sustainable number is approximately 6 to 7%. 15:17 15 minutes, 17 seconds Okay. And uh on the GST side what are the benefits that we have seen in the GST reduction? Have you seen any 15:25 15 minutes, 25 seconds incremental footfall because of reduction in GST? 15:31 15 minutes, 31 seconds So uh the day 22nd of September the GST say we have seen a great momentum. So the October was uh great number was 15:40 15 minutes, 40 seconds superb right in fact seasonality effect was also there wedding effect was also there uh December it was little bit came down on a flatter side but overall 15:48 15 minutes, 48 seconds quarter is fine uh January was the same case and now it is again picking up so the momentum is definitely there GSC rationalization has definitely made the 15:57 15 minutes, 57 seconds changes in terms of overall business specifically for retail so momentum is there and it looks like a long term 16:04 16 minutes, 4 seconds okay and just last A couple of questions sir. What would be your guidance in terms of revenue and I mean gross margin expansion going forward for FI27? 16:17 16 minutes, 17 seconds So we are uh continuously have a target of approximate 20 plus% in terms of 16:25 16 minutes, 25 seconds revenue growth. So definitely this year and next year our vision statement was clear by 2027 we are crossing,000 cr of 16:33 16 minutes, 33 seconds revenue mark and in terms of gross margin. Yes, 58 59% we are operating and this is probably couple of percentage or 16:40 16 minutes, 40 seconds side percentage may improve. The target is to make the company thousand cr revenue company by next financial year with a margin of 58 59% gross margin. 16:50 16 minutes, 50 seconds Okay. Thank you sir and congrat once again congratulations on a great set of numbers. Thank you. Thank you so much. Thank you. 16:58 16 minutes, 58 seconds Thank you sir. The next question is from the line of Mayul Qatara from Insight Advisors. Please go ahead. 17:06 17 minutes, 6 seconds Sir good evening. Uh congratulations on a great set of numbers sir. Uh I just continuing the previous uh conversation which you just had with the previous 17:14 17 minutes, 14 seconds participant. Uh on account of this momentum which you're talking about on uh on the GST measures which have been come which has come up. Uh do you think 17:23 17 minutes, 23 seconds that for the FI26 or 27 you there is any change in guidance in terms of revenues especially FI26 for that matter given the momentum in this quarter continuing. 17:33 17 minutes, 33 seconds So that that momentum will be continued. 17:35 17 minutes, 35 seconds We may have a increase a couple of percentage. So always we have been giving the numbers which we feel is hardly feasible. So this financial year, 17:44 17 minutes, 44 seconds next financial year this growth would be maintained at least this growth will be maintained what we are expecting and given this growth momentum any 17:53 17 minutes, 53 seconds change in guidance in terms of number of stores opening by the end of this fiscal any guidance for the next financial year 17:59 17 minutes, 59 seconds as well in terms of number of stores new stores opening new stores opening as we have already 18:08 18 minutes, 8 seconds said that we plan to open 75 new stores in a year and the size of the store is increasing because we are opening the 18:15 18 minutes, 15 seconds average store size of 1,600 to 1,700 square ft² now. So as of now our target is same uh but if we see some uh very 18:23 18 minutes, 23 seconds good pick up in the demand uh in the ne next quarter then again we can uh plan the store expansion in aggressive manner 18:32 18 minutes, 32 seconds and just continuing on the store expansion how's the focus with regard to those focus stores for women and kids and all how is that going along means 18:41 18 minutes, 41 seconds any specific number which you would like to throw on that going along in the same lines 10% of the stores are exclusive ladies and kids 18:48 18 minutes, 48 seconds stores and 20% stores are the family stores. So, uh the expansion is going in the same lines. Uh but uh the area has 18:57 18 minutes, 57 seconds been increased not only in the family stores but in the exclusive men's category and the men's ladies category also the average store size has been increased. 19:10 19 minutes, 10 seconds you're looking you've always been giving SSG growth but have been any calculation numbers when you compare these exclusive 19:18 19 minutes, 18 seconds women and kids stores compared to previous years or anything like that do you have those kind of numbers as well in terms of how what growth are you seeing in those kind of stores on a like 19:26 19 minutes, 26 seconds to like basis so the overall if I'll take in terms of broad picture right the approximation 19:35 19 minutes, 35 seconds approximately these number are same right right okay because yes we started so they are taking maturity in fact if I'll take ladies and kids store they are 19:43 19 minutes, 43 seconds this is the year where they have been started maturing so we are expecting more sales right so from next financial year is better the stores what we have 19:51 19 minutes, 51 seconds opened for last two years right so how they have been behaving so they are still in the perfect but the results in terms of exclusive stores is absolutely 20:00 20 minutes as per our expectation so broadly 6% 7% in all those category of the stores is 20:07 20 minutes, 7 seconds feasible what we are looking at So given the fact that the base of these stores which are getting mature will 20:15 20 minutes, 15 seconds keep increasing. Do you expect that probably with the maturity coming by EITA margins to improve further in the next fiscal means do we have a uh re 20:24 20 minutes, 24 seconds means just like revenue guidance on the EITA margin would you like to uh comment upon it as well? See last year if you see in last two years FY24 was an 20:32 20 minutes, 32 seconds exceptional year then in last two last year and then last year we have shown improvement in the VA margin 15.8% 8% to 16.7 and we are extremely hopeful this 20:41 20 minutes, 41 seconds year we have to take it back plus 18% pre-indust 30% with touch this year so yes couple of percentage of margin improvement in 20:49 20 minutes, 49 seconds terms of EIA is always there we are targeting that and so last question just a bookkeeping question on working capital if you can 20:57 20 minutes, 57 seconds just give us an overview about it for uh currently as well as what do you see expecting FI26 to close off this year improvement would have been there last 21:05 21 minutes, 5 seconds year if you see our inventory days was 121 21 days we are expecting to be come down little bit but earlier uh in all 21:12 21 minutes, 12 seconds our commentaries and uh we always mentioned there is an ideal situation for a uh for the company is somewhere in 21:19 21 minutes, 19 seconds between 100 and 120 days in terms of inventory and working capital is approximately 1005 days considering the MBQ of the stores what the we need to be 21:28 21 minutes, 28 seconds there on the shelf all the stores so that would be maintained not much margin already the numbers have been controlled in terms of inventory in terms of 21:35 21 minutes, 35 seconds working capital but we we keep on working at it. So this year as compared to last year some improvement you would be able to see. 21:43 21 minutes, 43 seconds Okay sir. Thank you. Congrats once again on the great. Thank you so much sir. Thank you. 21:48 21 minutes, 48 seconds Thank you sir. The next question is from the line of Shirin Jana Mittal from MS Capital. Please go ahead. 21:57 21 minutes, 57 seconds Hi uh thank you for the opportunity and congratulations on the great set of numbers. Uh I have couple of questions. 22:05 22 minutes, 5 seconds uh uh uh shindra G can you help us understand like if I look at the realization the realization has come 22:12 22 minutes, 12 seconds down from 1,400 to,000 rupees 1,100 rupees and how much of the impact can be justified by the GST rate cut 22:21 22 minutes, 21 seconds uh one second sorry uh can you please how 1,400 I'm not getting it actually can 22:29 22 minutes, 29 seconds you please repeat it more clarification so I was uh so I was just saying I'm just looking at the real realization per piece. The realization per piece has 22:37 22 minutes, 37 seconds come down year on year. There is some impact of GST also I believe. Uh so I just wanted to understand like what is 22:44 22 minutes, 44 seconds the blended impact of GST on the final price for us. 22:50 22 minutes, 50 seconds So if I take it uh yeah yeah if I'll take it the ticket size for the quarter right October to 22:58 22 minutes, 58 seconds November quarter the totality right ticket size. So it has been not been reduced actually overall 9 month is 23:06 23 minutes, 6 seconds 4387 is my ticket size and my average selling price is also 1,70 as compared to last year 1026. 23:16 23 minutes, 16 seconds So it is improved actually by four% a curve. 23:23 23 minutes, 23 seconds Okay question. Yeah. So because my ASP has been as volume so balance mix is there. 23:30 23 minutes, 30 seconds We did not notice any reduction in terms of selling price and ticket size as well. Yeah. 23:36 23 minutes, 36 seconds Right. Right. Uh just the GST impact Shind if you can quantify like in terms of this the final price uh how much like 23:43 23 minutes, 43 seconds in terms of realization for us uh what would the impact what would what would the impact uh GST rationalization right? 23:55 23 minutes, 55 seconds Yes. Yes. So what we did the day 22nd of September it came. So whatever the inventory would have been there as per guidance we have been passed on whatever 24:04 24 minutes, 4 seconds the GST benefit has been there to the consumer right whatever the inventory we had and then we have taken care of in terms of pricing as well going forward 24:12 24 minutes, 12 seconds uh new one. So that rationalization impact you can see customer momentum was there we have noticed immediately in the 9 days of September October November 24:21 24 minutes, 21 seconds obviously it came down in the month of December and June. Now it is again started picking up the momentum is positive what we can see and going forward also look like you know 2 and a 24:30 24 minutes, 30 seconds half lakh cr of money has been given pumped in by the government itself in last one year for you know end consumer 24:38 24 minutes, 38 seconds so consumption would definitely have to boost no doubt about it right right u uh one more question the 24:46 24 minutes, 46 seconds e-commerce sales number can you share for this quarter and what was it for uh the same quarter last year 24:53 24 minutes, 53 seconds yeah So overall same uh e-commerce that billing method has been changed. So overall volume growth is approximately 25:01 25 minutes, 1 second for 9 months is 11.4%. In terms of e-commerce however the even after change this billing method the value has been 25:08 25 minutes, 8 seconds increased for 5%. So our target is to take it to last year we closed it at 6.2%. And this year uh 7% approximately we may end up. 25:18 25 minutes, 18 seconds So in just in terms of absolute value how what would that number be? 25:23 25 minutes, 23 seconds in the stage of e-commerce, right? 25:26 25 minutes, 26 seconds We have already achieved 37 cr in 9 months. 25:30 25 minutes, 30 seconds 37 cr in 9 months. And uh and for this quarter, December quarter particularly, what would that number be? 25:38 25 minutes, 38 seconds And how what was it last year? 25:41 25 minutes, 41 seconds So the my December quarter number was 17.7 K. 25:46 25 minutes, 46 seconds Okay. Okay. And this was uh last year for last year I think 16 something I just need to 25:54 25 minutes, 54 seconds recheck. So uh because that was also already having a higher value for Myntra and what I explained last year as well. Billing me. 26:04 26 minutes, 4 seconds Yeah. Billing method has changed. 26:05 26 minutes, 5 seconds Understood. Understood. Yeah. Just uh one last question if I can squeeze in uh you mentioned the we have a 25% growth 26:13 26 minutes, 13 seconds plan. So out of this 25% 5% would be SS SSD growth and 20% would be led by store 26:20 26 minutes, 20 seconds expansion. Is that is that how we thinking? 26:24 26 minutes, 24 seconds So yes we are continuously at the rate of 20%. And minimum target we are having at 20%. Obviously it will improve right 26:32 26 minutes, 32 seconds it may go up to 22 but 25 looks little bit later on. 26:38 26 minutes, 38 seconds This includes yes this includes 6% 7% approximately same with store sales and the balance would be coming from the 26:46 26 minutes, 46 seconds store expansion as well as e-commerce segment because e-commerce is operating as of now is 6% then next year by the 1,000 we are targeting 8 to 10%. A lot 26:55 26 minutes, 55 seconds of things have been happening in e-commerce. 26:57 26 minutes, 57 seconds So 6 7% out of this 20 you can say from the same resources then balance 13% 14% would be mix of uh store expansion as well as e-commerce. 27:06 27 minutes, 6 seconds Understood. No, this was very helpful. 27:09 27 minutes, 9 seconds Thank you for answering the questions and all the thank you friends. 27:13 27 minutes, 13 seconds Thank you ma'am. The next question is from the line of Anand Mundra from Sore Wealth. Please go ahead. 27:22 27 minutes, 22 seconds Good evening sir. Congratulation on good results. Thank you. Thank you. 27:27 27 minutes, 27 seconds Wanted to check what is the impact of the new labor code on the penal. 27:33 27 minutes, 33 seconds So just uh and another participant been asked. So in new labor code we have already been compliant with earlier one. 27:40 27 minutes, 40 seconds Our basics was always been 50%. There is some correction in few cases was there which has been taken care of. Our graity is accordingly that so all the 27:49 27 minutes, 49 seconds compliances are mostly in place. If there is any gap my auditor is also in cons with us we will take care of that. 27:55 27 minutes, 55 seconds However largely 99% all the compliances has been done. We are already in line with that. 28:00 28 minutes Okay. So there is no one-time expense because of that. We were already compliant of that. That's what we have. Yeah. 28:06 28 minutes, 6 seconds Okay. So the second question is what is the profit profitability of family store versus our traditional men's store? What is the profitability differences? 28:16 28 minutes, 16 seconds So Anj the ITA is 2% higher in the family stores than the men's stores. So, so we have a better profitability in the 28:23 28 minutes, 23 seconds family stores than the only men stores because the rental per square feet comes down in the family stores and the sales 28:31 28 minutes, 31 seconds visav doesn't come down that much. So, profitability is higher in family stores. 28:36 28 minutes, 36 seconds Okay, that is good to know sir. So, that in that case sir are we opening more family stores incremental as compared to traditional stores or how do you plan this? 28:47 28 minutes, 47 seconds So we we want to open more family stores but sometime it's depend upon the availability also because we don't want to let go of a good property if it is of 28:56 28 minutes, 56 seconds a smaller size. So we some many times open the only men's or men's ladies store also but if there is a right opportunity and the good opportunity 29:04 29 minutes, 4 seconds definitely we opt for a family stores and in the future also our focus will be more on the bigger stores only. 29:12 29 minutes, 12 seconds Okay sir in one of the slides you mentioned that 50% is repeat customer. 29:18 29 minutes, 18 seconds So uh what was this number say 3 four years back sir 29:23 29 minutes, 23 seconds sir I noticed I data as well uh the year 29:29 29 minutes, 29 seconds of covid I remember uh 20 fy my repeat was 44 and every year we are noticing 29:36 29 minutes, 36 seconds 22%. in so it started in 4 years back 44% and approximately it is operating as of now 50 to 52%. 29:45 29 minutes, 45 seconds Okay. So so very finely balanced new customer is coming approximately 50 couple of% maybe but largely the fine balance will 29:53 29 minutes, 53 seconds maintain of 50/50 undersod. So one last question on online sales. Uh so what is 30:00 30 minutes the process? We sell it to uh all this e-commerce website and they can return back to us if they are not able to sell 30:08 30 minutes, 8 seconds or it's on uh no typically all the inventory is there with us. We have our own warehouses and 30:16 30 minutes, 16 seconds all the inventory is made live to uh our own WMS software and so the we don't uh uh send the inventory to the market 30:23 30 minutes, 23 seconds places. It's with us only. Okay. So whenever there's an order on the website, the bill will be generated from your end. 30:31 30 minutes, 31 seconds Yes. Yes. The dispatch is done through our own warehouses and we are also operating through omni channel. So the dispatch is al also done through our stores. 30:41 30 minutes, 41 seconds Okay. Okay. And what is the return sir in all in online sales sir? 30:45 30 minutes, 45 seconds Well the industry standard is something around 30%. So we we also have a return percentage of around 32 33%. And we are trying our best to you know just get it down around that 30% mark. 30:56 30 minutes, 56 seconds Okay. And sir with respect to our pricing in online as compared to offline is it similar sir or online we are giving more discount or I don't know any thoughts on that sir. 31:06 31 minutes, 6 seconds No no the pricing is very much similar and we also try to maintain the parity between the discounts. It's just that sometimes the portals uh give the 31:15 31 minutes, 15 seconds discount from their own uh you know pockets whenever there's a a sale or during you know some sale periods. 31:21 31 minutes, 21 seconds Otherwise from the brand level the discounting is pretty much the same. Okay. Thank you sir. Thanks a lot sir. 31:28 31 minutes, 28 seconds Congratulations sir once again sir. Thank you. Thank you An. Thanks. 31:32 31 minutes, 32 seconds Thank you sir. The next question is from the line of Ankit Sha from White Equity Investment Advisor. Please go ahead. 31:42 31 minutes, 42 seconds Thanks for taking a followup. Uh so we've reported uh 18% volume and value growth. Um so uh as said you know we've 31:52 31 minutes, 52 seconds not reported any pricing growth. Uh can you explain this a little bit? 32:03 32 minutes, 3 seconds Uh this is for the quarter or 9 month we are discussing. Yes, this is for this is for the quarter that we we've reported 18% volume growth for this quarter and our revenue growth is also similar. 32:16 32 minutes, 16 seconds Uhhuh. The 18% is the quantity growth total total quantity. Yeah. Yeah. 32:25 32 minutes, 25 seconds Yes sir. That that's a number. 32:28 32 minutes, 28 seconds So uh is uh so have we not taken any price hikes during the year or is this because of larger contribution from 32:36 32 minutes, 36 seconds accessories or low uh low pricing products. Can you kind of uh explain that? 32:44 32 minutes, 44 seconds So in this case in this quarter if you say we have a 7 18% of the quantity growth right in totality however the 32:52 32 minutes, 52 seconds price because yes the pricing for the quarter itself if I take exclusively that not on the that much higher side 33:03 33 minutes, 3 seconds yes the pricing is not that higher compared to the same quarter last year. 33:07 33 minutes, 7 seconds So last year same fing season third quarter uh and this year's uh fishing season third quarter the pricing has not 33:15 33 minutes, 15 seconds changed as per the reported number. So uh what would be the reason for it? So uh either you've taken a price hike but 33:22 33 minutes, 22 seconds accessories etc have brought down the price per piece or is there something else? If you can you know share some light on that. 33:31 33 minutes, 31 seconds Yes, there's a change in the mix obviously because my ASP for the quarter this is what we are talking about company as a whole not L2L. So yes, if 33:41 33 minutes, 41 seconds this say my ASP ASP is this is almost same. Last year it was approximately 1492 and this year 1491. So the change in the mix is there. 33:53 33 minutes, 53 seconds Okay, agree you are right. Correct. 33:55 33 minutes, 55 seconds Okay. So we are selling more of lower price products or slightly cheaper products are selling more 34:02 34 minutes, 2 seconds difficult to quantify because it's a mix right so it's a mix is always being there plus GST changes are also that is also impacting little bit of because 34:10 34 minutes, 10 seconds October and November we completely passed down to the customer because old inventory was there which was selling so mostly volume growth that is also very 34:19 34 minutes, 19 seconds important that the volume growth is totally is there and pricing growth is almost visible in terms of ASP last year my ASP was 1330 39 and this year my SPS 34:27 34 minutes, 27 seconds are 1349 only marginal difference right but very important we have increased very good in terms of basket size 34:37 34 minutes, 37 seconds uh so even the uh order values have broadly remained same okay they have improved slightly yes you are right the order value because market sizes 34:46 34 minutes, 46 seconds increased so my order value from the ticket sizes increased from 4500 rupees to 4900 it's a very positive every time the question price is there Yeah. 34:56 34 minutes, 56 seconds Yes. Yes. Agree with you. Yeah. That's that's right. Uh just wanted some clarification. When we are reporting this volume, this volume includes the accessories, right? 35:05 35 minutes, 5 seconds Yes. 35:08 35 minutes, 8 seconds Accessories is also all the company as a whole number is there. So includes accessories, ladies, everything, all the categories. 35:16 35 minutes, 16 seconds Okay. Okay. So one question I had was on the branding side. Uh so we've done very well in terms of efficient retailing. uh 35:24 35 minutes, 24 seconds even you know early entry in some title cities and we're doing well that side uh but what are we doing for branding uh I 35:32 35 minutes, 32 seconds mean if you take for example Peter Peter England or Louis Phil etc you know there the focus on branding is 35:40 35 minutes, 40 seconds quite there so you know we can see those brands around uh but our logos are not physical so in terms of advertising etc 35:48 35 minutes, 48 seconds so uh can you share your thoughts around you know this in terms of your plans for the medium term for the company from 3 35:55 35 minutes, 55 seconds to 5 years perspective. Is there any thinking on this side? 36:00 36 minutes So our branding uh goes both in the traditional way and the digital marketing way. So we are doing both kind of ads. So for the new stores we are 36:09 36 minutes, 9 seconds doing aggressive advertisement campaigns and for the old stores we are doing majorly SMS campaigns. But our main strength lies in the uh uh location of 36:17 36 minutes, 17 seconds the store because location of the store is such a good location that we don't need much marketing support. The signage site is big. The store facade is good. 36:26 36 minutes, 26 seconds Uh but yes, when it comes to the future, we planning to go for some aggressive advertisement campaign like brand 36:33 36 minutes, 33 seconds investor kind of thing. But that's not a plan in the short run. Maybe after a year or two, we go with that kind of brand. 36:42 36 minutes, 42 seconds Gotcha. Gotcha. That's it. Thank you so much. Thank you sir. Thank you sir. 36:49 36 minutes, 49 seconds The next question is from the line of Tanmay Roy from an individual investor. Please go ahead. 36:56 36 minutes, 56 seconds Hi uh thank you for the opportunity. 36:59 36 minutes, 59 seconds Actually most of my question has been answered. 37:01 37 minutes, 1 second Uh just wanted to check like how you are seeing that uh next uh Q1 shaping up because remember last Q1 it was like 37:08 37 minutes, 8 seconds completely washed out and we got a negative G. So how this quarter is shaping up? Uh do you think we'll be able to maintain that 5 6% of the same total sales growth? 37:20 37 minutes, 20 seconds So this we are discussing Q1 FY27 right? Yes. Yes. 37:27 37 minutes, 27 seconds So it looks positive because last year also we have a positive numbers in uh that is that's why 26 Q1 also we have a 37:35 37 minutes, 35 seconds positive number. Yeah. The 26 Q1 it was minus 1.3. Yes. See no Q1 of FY26. 37:46 37 minutes, 46 seconds Yes. 37:47 37 minutes, 47 seconds No. It was FY26. It was very good actually. 11.3%. Q1 FYI 26. 37:55 37 minutes, 55 seconds No. Exactly. The result I mean just now I opened the PPT and it was like minus 120. Maybe you can check. 38:01 38 minutes, 1 second Maybe last year maybe FY25. You are talking about FY25. Yeah. You want FY25 or minus? Yeah. 38:09 38 minutes, 9 seconds Yeah. 38:11 38 minutes, 11 seconds Yeah. So Q1 FI 26 was positive and we are expecting better Q1 FI 27 as well. 38:20 38 minutes, 20 seconds Okay. Q4 and Q1 are the best quarters for us, right? So in terms of Yes. Q3 in terms of uh AITA 38:29 38 minutes, 29 seconds margins and sales as well and Q1 is also good. 38:34 38 minutes, 34 seconds Q2 is slightly uh pressure side. Just all the cities are great. 38:40 38 minutes, 40 seconds Okay. So, and that's for the long-term goal we are looking at uh 20% growth like which is currently 800 something. 38:48 38 minutes, 48 seconds So maybe around 160 crores extra for the next year I mean 27 for the yeah same 1,000 cr is on the 38:55 38 minutes, 55 seconds card definitely 20% the margin of so like uh pat of margin of how much you are expecting that same 39:03 39 minutes, 3 seconds we are expecting a pat margin because of GST national and everything plus 12% maybe it's maybe 13% we'll look at it but whatever we are coming it is 39:11 39 minutes, 11 seconds definitely going to improve couple of percentage okay okay so I think that's I got most of the question being answered. Thank you. Thank you sir. 39:21 39 minutes, 21 seconds Thank you sir. The next question is from the line of Arpan Rat from Insight Advisory. Please go ahead. 39:31 39 minutes, 31 seconds Good evening sir. Uh congratulation on a great set of numbers. Uh I have couple 39:38 39 minutes, 38 seconds of questions. Uh uh my first question is uh how do we track fashion? 39:47 39 minutes, 47 seconds uh can you tell us more about how uh the changes in merchandise which we do? 39:54 39 minutes, 54 seconds So we we have been majorly doing the basic kind of clothing but yet yes we are introducing some fashionable 40:02 40 minutes, 2 seconds garments also for the younger generation. So uh this year into into the testing phase. So as we get the response we will increase the share of 40:10 40 minutes, 10 seconds the fashionable garments in the total collection. 40:15 40 minutes, 15 seconds Okay. Uh so uh we expect this to uh be more uh prominent from Q2 onwards or uh Q2 FI27. 40:28 40 minutes, 28 seconds uh yeah from after Q to FY27 only we will be we may be increasing but uh as we haven't uh like tested the voters 40:37 40 minutes, 37 seconds completely so let let the outcome let us to conclude about it then only we will be able to give the clear picture. 40:46 40 minutes, 46 seconds Sure. Uh this is more of a qualitative question. Uh we see the competition is 40:52 40 minutes, 52 seconds not doing great. Um and uh we have been consistently uh doing a good set of numbers. So any 41:00 41 minutes secret sauce which we should know uh you know uh numbers have been really great. 41:06 41 minutes, 6 seconds you know when I compare other companies uh in the fashion segment obviously you know uh I understand there is no direct competition 41:14 41 minutes, 14 seconds uh but uh otherwise we are doing good uh uh better than all of them so uh any 41:22 41 minutes, 22 seconds secret uh recipe or secret sauce which you would want to tell secret sauce source should always be 41:28 41 minutes, 28 seconds kept secret it should not be revealed sure continue doing that Uh uh my other 41:37 41 minutes, 37 seconds question is uh now that we uh since we have been uh doing great in terms of numbers and profitability 41:45 41 minutes, 45 seconds uh obviously we're generating uh good amount of free cash flows. Uh the company has been consistent in paying dividends. 41:55 41 minutes, 55 seconds uh but can we look at in uh incremental dividend in terms of percentage or 42:02 42 minutes, 2 seconds secondly you considering that uh now that we have the recipe uh why can't we uh accelerate our store expansion 42:12 42 minutes, 12 seconds and uh you know rather than uh 20% growth why don't we look at 30% growth 42:19 42 minutes, 19 seconds or thereabout so store expansion any thoughts store expansion never been constrained 42:28 42 minutes, 28 seconds due to the availability of the capital or the funds. So we have been doing expansion to the best of our uh 42:35 42 minutes, 35 seconds opportunities coming in the retail sector. So uh but yes because we're increasing the size of the store the expansion can will be little faster. 42:45 42 minutes, 45 seconds So if you see now coming back to your question we have increased continuously our retail area numbers may be 60 but now opening the bigger stores in last 42:53 42 minutes, 53 seconds one year December to December if you compare again 1.44 44 lakh square of area has been added. So now we are opening the bigger store. Plus earlier 43:00 43 minutes also I said there are 10% approximately you know renewals are due because we have a 600 plus stores now. So we are 43:08 43 minutes, 8 seconds opening more but the net side took some time lesser. However the square is continuous. 43:15 43 minutes, 15 seconds Sure. And uh any uh so India has signed couple of trade deals. uh the European 43:23 43 minutes, 23 seconds trade deal is more relevant considering that you know it uh opens up the textile and all for 43:30 43 minutes, 30 seconds so any thoughts there though we we do our own branded stuff only any thoughts 43:37 43 minutes, 37 seconds uh there uh you know uh going to Europe once it opens up so in in single branded 43:44 43 minutes, 44 seconds there is already 100% FDI allowed in India so I don't there will be much competition coming but if it will be coming yeah We are very much prepared to 43:52 43 minutes, 52 seconds tackle it and with the kind of marketing footing we have like we have 650 stores to 300 cities. So it will not be easy 43:59 43 minutes, 59 seconds for any new brand to compete us with at all the places and at all the locations. 44:06 44 minutes, 6 seconds Sir my question was reverse are we looking at an export opportunity we are we are doing in Nepal the market established so we are looking at it 44:14 44 minutes, 14 seconds let's have a better opportunity come because master franchisee can only be given so that inventory risk can be eliminated. So but not immediately you 44:22 44 minutes, 22 seconds will be able to see later on. So very focused areas we have but yes that is okay. 44:30 44 minutes, 30 seconds Great sir. Uh once again congratulation on a very good set of numbers. Uh all the best for future cies. Thank you. 44:38 44 minutes, 38 seconds Thank you so much sir. Thank you. 44:40 44 minutes, 40 seconds Thank you sir. The next question is from the line of an Mundra from Sore. Please go ahead. 44:49 44 minutes, 49 seconds Yes. Thank you for giving me opportunity again. Uh sir wanted to understand about our gross margin. Uh what is the reason for the improvement in this quarter sir? 45:00 45 minutes So uh same thing whenever we quarter one you see the margin I'm comparing sir Q3 to Q3 sir last year 45:08 45 minutes, 8 seconds let's see our Cox was 39% this year it is 36.9 so 2.4% 2% improvement 2% improvement is there. 45:17 45 minutes, 17 seconds So yes some correction in pricing as well plus efficiency little bit involvement is there it's a mix of those some correction of pricing is also 45:23 45 minutes, 23 seconds there. Okay. And then one suggestion if I uh on slide 12 we have given and 45:31 45 minutes, 31 seconds when we have when we are giving uh gross margin or in slide number uh 45:40 45 minutes, 40 seconds right number s uh 33 they are not matching because over here raw material expenses are only taken over there 45:48 45 minutes, 48 seconds something else is also clubbed into So if I want to compare SI25 numbers with YTD SI26, I can't. 45:57 45 minutes, 57 seconds Correct? No. 45:58 45 minutes, 58 seconds I I I'll I'll check it and come back to you on this. I'll check it, come back. 46:01 46 minutes, 1 second Maybe some typo error would have been there. I'll check it and come back on you. Okay. And one last question on this. 46:06 46 minutes, 6 seconds What is your gross margin guidance for say this year sir or including it's similar to last year or would be slightly improvement sir? 46:13 46 minutes, 13 seconds Couple of you will be able to see some improvement maybe a 1% but some improvement would have been there. Okay. Thank you sir. Thanks a lot sir. 46:22 46 minutes, 22 seconds Thanks a lot sir. 46:23 46 minutes, 23 seconds Thank you sir. Ladies and gentlemen to ask a question please press star and one. Now 46:32 46 minutes, 32 seconds participants who wish to ask questions may please press star and one at this time. 46:39 46 minutes, 39 seconds The next question is from the line of Hitendra Pradhan from Maximal Capital. Please go ahead. Yeah. 46:47 46 minutes, 47 seconds Hi sir. Uh thanks for the opportunity. 46:50 46 minutes, 50 seconds Uh so my first question is u you know few you know data points uh made it few data points. So what were your uh what 46:57 46 minutes, 57 seconds was your rental uh cost for the 9 month uh total rental cost for the 9 months right? 47:04 47 minutes, 4 seconds Yeah. Yeah. 47:07 47 minutes, 7 seconds This is uh approximately I'll just give you the exact figure total 74 crores. 74 47:16 47 minutes, 16 seconds shares. Okay. Yeah. And the ESOP cost which one? 47:22 47 minutes, 22 seconds Uh any any ESOP cost that uh that was part of the T and adjustment? No. No cost. No. 47:30 47 minutes, 30 seconds Okay. And and this would be for the full year it would be you know what would be the rental cost? 47:37 47 minutes, 37 seconds Uh rental cost for the full year would be approximately 95 approximately 95 to 100. 47:47 47 minutes, 47 seconds Last year it was last year it was 83 crores this year it would end up approximately 100. 47:52 47 minutes, 52 seconds Wonderful sir and sir um uh I think in the uh beginning of the call like uh you answered uh regarding the mature store 48:01 48 minutes, 1 second uh uh like you know the what was the space and you know the triple SC was coming around 6%. And the the space 48:09 48 minutes, 9 seconds growth was somewhere around I think 20 22% or 25%. uh somewhere u u around that 48:16 48 minutes, 16 seconds uh number. So sir uh I just wanted to understand you know for our new stores uh which have been opened in last year. 48:24 48 minutes, 24 seconds So how are they ramping up and what is the expectation like what is the current you know sales per square ft on the new 48:31 48 minutes, 31 seconds stores and what is our expectations uh of you know them ramping up um you know eventually and what what is the timeline 48:39 48 minutes, 39 seconds for them to you know uh come to the mature store level. 48:44 48 minutes, 44 seconds uh earlier also whenever we are opening the maturity period for the store we are considering as 2 to 2 and 1/2 year and when that is also our payback period the 48:53 48 minutes, 53 seconds 2 to 2 and 1/2 year so as I just uh explained my matured store if it's I'll take that is being grown from 743 to 790 49:03 49 minutes, 3 seconds however my overall company uh per square ft 746 as compared to 790 so you can say 49:11 49 minutes, 11 seconds new storage delivering is approximately 675 rupees you can say and over a period of time when it has been matured it is 49:19 49 minutes, 19 seconds coming to the maturity level in two to two and a half year. 49:24 49 minutes, 24 seconds Got it sir. And sir again to reiterate previous participants point most of the players have u uh you know kind of 49:32 49 minutes, 32 seconds struggled to post good numbers this quarter citing the festive mix and uh you know the overall winter uh demand uh 49:40 49 minutes, 40 seconds oriented issues. Uh so sir again you know just want to you know understand um what kind of helped you you know achieve 49:48 49 minutes, 48 seconds both the triple HG and overall numbers this quarter. I mean was it due to your geographical mix which is good towards 49:55 49 minutes, 55 seconds uh you know north and west uh or you know your product positioning you know if you can just you know give a little bit more color on that. 50:05 50 minutes, 5 seconds So we have ASP of like,50 rupees and most of the brands are either above this ASP or below this ASP. Very few brands are operating in this kind of ASP. 50:15 50 minutes, 15 seconds So we have competition we have very good efficiency in the operations and company long-term fundamentals have kept very strong. 50:22 50 minutes, 22 seconds So all these things over period of period of time have made made up these numbers. So it's not just a functioning 50:30 50 minutes, 30 seconds of one quarter or two quarter. It's a long-term vision and the long-term effort. 50:34 50 minutes, 34 seconds No sir that that makes sense. Uh just wanted to see if you see any kind of demands optioning in you know u any of 50:42 50 minutes, 42 seconds your like you know geographically or you know any tier one tier 2 mix. By the way sir you are you are present in mostly in 50:48 50 minutes, 48 seconds tier 2 tier tier three cities or uh what is our mix if you can write us. So our mix is 20% stores are in tier one 40% in 50:58 50 minutes, 58 seconds tier 2 and 40% in tier three towns and demand have been good in all the tier tier tier 1 2 three towns. So there is 51:06 51 minutes, 6 seconds no particular category which is delivering more and other category delivering less. So we are seeing any demand slowdown necessarily in no 51:16 51 minutes, 16 seconds witnessing slowdown. Every region is contributing equally. 51:20 51 minutes, 20 seconds Got it sir. and and in your adjustments are like you know again you know previous participant uh you know pointed you know asked uh I just want to you know again u you know push you on that. 51:30 51 minutes, 30 seconds So sir uh you know this is this business is about you know finding you know the trends or catching the trends and uh um 51:38 51 minutes, 38 seconds you know keeping keeping very fresh inventory in the shops and also sir uh what has been your strategy around that? 51:45 51 minutes, 45 seconds I mean do you do it uh do you use any kind of you know tech platforms or do you like you know strategy and how do you 51:54 51 minutes, 54 seconds achieve that? How do you execute on that you know to have price inventory price trends uh in your stores? 52:01 52 minutes, 1 second So trend forecasting have been has been done through the research both online offline research. So we have a team of designers merchandiser who do this 52:09 52 minutes, 9 seconds activity every every season. So trends have been done forecasting and we believe that uh the more we refresh or 52:19 52 minutes, 19 seconds the inventory faster the better will be the sales. So uh we have a vision to be that uh not more than one year inventory 52:26 52 minutes, 26 seconds should be at the fresh stores. So we are trying to bring down bring down the aging inventory in the stores. Uh so 52:34 52 minutes, 34 seconds that's why the results are getting better day by day because we are uh moving towards the better uh rotation of the inventory at the stores. 52:43 52 minutes, 43 seconds Yes. What is your internal target to you know churn out the inventory? How like you if you suppose you know winter inventory uh doesn't get sold off so how 52:52 52 minutes, 52 seconds soon you basically you know turn them out and replace uh with new inventory in your kind of you know close and all what 52:59 52 minutes, 59 seconds is your internal metrics for that. So uh any product which is getting one year old org movie to the FOS and uh and the 53:07 53 minutes, 7 seconds online space because online space is also for the clearing the leftover inventory but you keep the keep the clothes for one year in your stores you don't you 53:15 53 minutes, 15 seconds know it out within a quarter or two quarter or you know like that one year 53:22 53 minutes, 22 seconds one year one year we are keeping it okay okay so final question is what was your like I didn't catch the parts where 53:29 53 minutes, 29 seconds you you know mentioned the walking capital in the inventory years. Working capital days was 100 to 120 days if I got that right. What was the inventory days this year and last year? 53:39 53 minutes, 39 seconds Inventory FG. Yeah. Finished goods inventory days. 53:43 53 minutes, 43 seconds Target is last year 120. We are trying to clim it down and you will be able to see uh some uh lesser number. Working 53:52 53 minutes, 52 seconds capital that is net of creditors that would be approximately 100 to 105 day. 53:57 53 minutes, 57 seconds So working capital 100 to 105 days and uh inventory days and between 110 to 120 days. And what is your target sir or do 54:05 54 minutes, 5 seconds you want to you know be so this is the target because considering our MBQs and my shelf 54:13 54 minutes, 13 seconds requirement my ideal number is 120 days before 5 days we may came it down but 54:21 54 minutes, 21 seconds there's no drastic change you'll be able to see because I have to keep five piece per square ft in my shell and backend two piece to 7 piece is the my 54:28 54 minutes, 28 seconds requirement and considering it's the cost my 3,000 rupees per square ft is the cost so very simple If you take it to 9 lakh today of the state and 2 lakh 54:38 54 minutes, 38 seconds 70,000 so that is uh 270 cr that's so that would be there 120 days. 54:45 54 minutes, 45 seconds Got it sir. Got it sir. Okay sir. All the best. Thank you so much sir. Thank you sir. 54:52 54 minutes, 52 seconds Ladies and gentlemen that was the last question for today. I would now like to hand the conference over to management for closing comments. 55:03 55 minutes, 3 seconds To conclude, 9 months FY26 has demonstrated our commitment towards annual targets for the FY26. 55:12 55 minutes, 12 seconds Our results reflect the enduring strength of the Canabil brand, the discipline execution of our teams and 55:20 55 minutes, 20 seconds the growing appeal of our products among consumers across India. The first nine months of FY 26 have been encouraging, marked by robust financial performance. 55:32 55 minutes, 32 seconds As we enter the final quarter, we remain focused on delivering long-term value to our shareholders. And with a resilient 55:39 55 minutes, 39 seconds business model and healthy balance sheet, we remain confident in our ability to sustain our growth trajectory. We thank you all for your 55:48 55 minutes, 48 seconds time today and for your continued trust and support in Canab Retail India Limited. We look forward to engaging 55:56 55 minutes, 56 seconds with you in the upcoming quarter. We hope we have been able to answer your queries. Please feel free to reach out 56:04 56 minutes, 4 seconds to our CFO or IR team for any clarifications or feedback. Thank you all. 56:11 56 minutes, 11 seconds Thank you sir. On behalf of Canabil Retail India Limited, that concludes this conference call. Thank you for 56:18 56 minutes, 18 seconds joining us and you may now disconnect your lines. 56:23 56 minutes, 23 seconds Thank you so much sir. Thank you everyone.