Credo Brands Marketing Limited — Q3 FY26

Credo Brands Marketing Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=dZ3O2lZuzqM Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Credo Brands Marketing Limited Q3 and 9 months FY26 earnings 0:09 9 seconds conference call. As a reminder, all participant lines will be in the listenon only mode and there will be an 0:16 16 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:25 25 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:34 34 seconds This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. 0:44 44 seconds These statements are not the guarantees of future performance and it may contain involve risk and uncertainties that are 0:51 51 seconds difficult to predict. I now hand the conference over to Mr. Kamill Kushlani, managing director. Thank you and over to you sir. 1:01 1 minute, 1 second Thank you. 1:03 1 minute, 3 seconds Good afternoon everyone. I have with me Mr. Rasik Mittal our chief financial officer and SGA our investor relation 1:10 1 minute, 10 seconds adviserss. I trust you have received the investor deck. If not, it is available on the stock exchange websites and on our company website. 1:19 1 minute, 19 seconds In Q3 FY26, we continued to make steady progress on our MUI 2.0 transformation journey centered around premiumization 1:29 1 minute, 29 seconds of the store experience, elevated merchandise, and stronger brand storytelling. 1:34 1 minute, 34 seconds During the quarter, 12 stores under the new retail identity have already been opened. And while it is still early in the journey, the initial consumer and 1:43 1 minute, 43 seconds trade response across these locations has been encouraging, reinforcing our belief in the direction of the transformation. 1:51 1 minute, 51 seconds On a 9-month basis, we have opened 27 new stores and closed 22 underperforming stores, reflecting our continued 2:00 2 minutes emphasis on quality of network over scale. The advertising and branding spend for 9 months FY26 2:08 2 minutes, 8 seconds stood at approximately 5% of the revenue and we intend to increase this to 8 to 10% of revenue for the next year even if 2:16 2 minutes, 16 seconds it has a short-term impact on profitability. 2:19 2 minutes, 19 seconds Q3 FY26 was a muted quarter for the apparel industry marked by cautious consumer sentiment and lower footfalls. 2:28 2 minutes, 28 seconds For Musti as well, the festive season did not meet expectations which impacted overall sales momentum during the 2:34 2 minutes, 34 seconds quarter. Against this backdrop, our revenue from operations for Q3 FI26 stood at 146.1 cr with AITA of 33.5 2:44 2 minutes, 44 seconds crlating into an AITA margin of 22.9%. 2:49 2 minutes, 49 seconds Packed for the quarter was 7 cr. Gross margins during the quarter were temporarily impacted by recent GST 2:56 2 minutes, 56 seconds reforms as we consciously passed on tax benefits to customers on products priced below 2500 while refraining from price increases on products above 2500. 3:08 3 minutes, 8 seconds This measured approach was taken to protect volumes and sustain consumer traction during a softer demand phase. 3:14 3 minutes, 14 seconds However, while topline growth remained under pressure, we maintained gross margins of 56.5%. 3:21 3 minutes, 21 seconds On the working capital front, we saw an improvement during the quarter. Working capital days reduced to 179 days as of 3:29 3 minutes, 29 seconds Q3 FY26 compared to 217 days as of H1 FY26 on a trailing 12-month basis, reflecting stronger collections and 3:37 3 minutes, 37 seconds tighter credit discipline across channels. 3:40 3 minutes, 40 seconds While our working capital cycle remains structurally higher due to our deliberate risk absorption model where we retain inventory risk to ensure fresh 3:49 3 minutes, 49 seconds merchandise and stronger partnership relationships every season. While near-term demand conditions remain subdued, we remain confident in MUI's 3:58 3 minutes, 58 seconds long-term growth strategy. Our strong brand recall, diversified channel presence, disciplined inventory model, and continued focus on premiumization 4:07 4 minutes, 7 seconds position us well to benefit from a recovery in consumption. 4:11 4 minutes, 11 seconds As we move forward, our priorities remain clear. Strengthening brand equity, scaling profitable growth across channels, expanding our premium store 4:19 4 minutes, 19 seconds footprint, and building long-term value for all stakeholders. 4:24 4 minutes, 24 seconds With this, I will now hand over the call to our CFO, Mr. Rasik Mittal to take you through the detailed financial performance for the quarter. 4:32 4 minutes, 32 seconds Thank you Kamill and good afternoon everyone. First I will give you the financial highlights for Q3 FI26. Our revenue for the quarter stood at 146 4:41 4 minutes, 41 seconds crores as against 156 crores. In Q3 FI25 gross profit stood at 83 crores with a 4:48 4 minutes, 48 seconds GP margin of 56.5% for the quarter. Our AITA for the quarter stood at 34 crores. Our EITA margin stood at 22.9%. 4:57 4 minutes, 57 seconds Profit after tax for the quarter stood at 7 crores. Fat margin stood at 4.8%. Coming to 9 months FI26 performance. 5:05 5 minutes, 5 seconds Revenue stood at 430 crores in 9 months FI26 as against 465 crores in 9 months FI25. Gross profit stood at 250 crores 5:14 5 minutes, 14 seconds with GP margin of 58.2% for the 9 months. AITA for 9 months FI26 stood at 113 crores. Our EITA margin stood at 26.2%. 5:25 5 minutes, 25 seconds Pat margin for 9 months FY26 stood at 32 crores with a PAT margin of 7.5%. 5:32 5 minutes, 32 seconds ROC and roe as of 31st uh at 30th December 2025 uh basis stood at 13.7% 5:40 5 minutes, 40 seconds and 11.2% respectively. Cash flow from operations for December 25 stood at 115 5:46 5 minutes, 46 seconds crores. With this we now open the floor for question and answers. 5:53 5 minutes, 53 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 6:01 6 minutes, 1 second star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 6:10 6 minutes, 10 seconds requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question cue assembles. 6:26 6 minutes, 26 seconds Ladies and gentlemen, to ask a question, please press star and one now. 6:33 6 minutes, 33 seconds Participants who wish to ask questions may please press star and one now. 6:40 6 minutes, 40 seconds The first question is from the line of Gunit Singh from counter cyclical PMS. Please go ahead. 6:48 6 minutes, 48 seconds Hi sir, thank you for this opportunity. 6:51 6 minutes, 51 seconds So I just have a question regarding the increase in advertisement uh spends on the strategy behind it. So for the 6:58 6 minutes, 58 seconds previous 9 months we have increased the spend uh to about 5% of the revenues but we haven't seen any uh but they don't reflect in the numbers the venues have 7:07 7 minutes, 7 seconds gone down despite stores opening and all that but uh we plan to take it uh up to about 8 to 10% of total revenues. So I 7:16 7 minutes, 16 seconds would like to understand that number one this will be contracting our margins going forward. So uh when you uh planned 7:24 7 minutes, 24 seconds about increasing the spends uh I mean what kind of results did you uh what what were the underlying results of your 7:32 7 minutes, 32 seconds uh plan for this that you expect revenues to grow by about 20 30% by increasing the spends to about 8 10% of 7:40 7 minutes, 40 seconds the revenues. number one and number two is it so that we will continue to spend about 8 to 10% of revenues or is it just 7:49 7 minutes, 49 seconds is it that we will cap the spends to say about once we reach marketing spends about 40 cr or 50 CR or so on do we have 7:58 7 minutes, 58 seconds a number that despite revenue uh growing we will cap the marketing spends to a given number or is it the strategy that 8:06 8 minutes, 6 seconds even if our say revenues double in the next uh two years we will continue to spend about 8 to 10%. So I just want to 8:14 8 minutes, 14 seconds understand like I mean is this strategy well thought and what outcomes you expect from this? 8:22 8 minutes, 22 seconds So uh Gonit uh the thing is that the brand has undergone transformation again 8:29 8 minutes, 29 seconds and is moving towards a premium position in the market and it is important that the consumers are there is enough 8:37 8 minutes, 37 seconds awareness that is created among these consumers regarding the new position that the brand is taking in terms of elevated merchandise elevated store 8:44 8 minutes, 44 seconds experience and the way the experience at the store will be curated for them in future. So to do that it's at a stage 8:53 8 minutes, 53 seconds where we have to make these investments which is going to be in line to keep the brand salient and competitive in the 9:00 9 minutes environment which is ever evolving. So this is something which is necessary for the long-term health and future and sustainability for the brand. So for the 9:09 9 minutes, 9 seconds next couple of years for sure we are going to be spending 8 to 10 odd% of our revenue. However, these are decisions 9:16 9 minutes, 16 seconds which are uh taken keeping in mind the longerterm growth which I'm unable to protect uh project right now that when 9:24 9 minutes, 24 seconds we'll hit the 20 30% numbers but for the next couple of years we'll be spending heavily in investing and all the changes that we are making. It's a little early 9:32 9 minutes, 32 seconds in the journey to you know say much about it but there are already you know positive signs that we see from trade as 9:40 9 minutes, 40 seconds well as from consumers with a little bit of whatever kind of interactions that we have had with consumers 9:48 9 minutes, 48 seconds what kind of positive signs are we seeing because I mean if we consider our business earlier where the spends were 9:55 9 minutes, 55 seconds limited um not the 8 to 10% levels we were growing year on year we were having comfortable margins. So I mean why the 10:03 10 minutes, 3 seconds pivot to such high spends where in even after 9 months the revenues are falling and obviously we'll take a long hit on 10:12 10 minutes, 12 seconds the profitability as well. So why I mean what's the rationale for for I mean transitioning this I want to understand basically I mean what was the main idea 10:21 10 minutes, 21 seconds behind this because everything is going well till now if I'm not wrong. Sure Gonit uh it is certainly going well and 10:28 10 minutes, 28 seconds we will still be spending from our profits only. It's not that we are going to uh hit our bottom line or take it into the negative. The thing is that as 10:37 10 minutes, 37 seconds the market keeps changing and market keeps evolving there is new brands, new things that come into the market. So to 10:44 10 minutes, 44 seconds stay relevant you have to change your course. You cannot just continue to do what you were doing in the past. So keeping the future in mind and keeping 10:53 10 minutes, 53 seconds the current competitive scenario in mind. These are the steps that we are taking which we believe are going to help sustain the growth for the brand in future. 11:03 11 minutes, 3 seconds All right sir I wish you all the best and I hope that these come to fruition soon our share has fallen about 75% from 11:13 11 minutes, 13 seconds the old time. So I just hope that I mean these decisions work well for us. Sorry I you your voice was muffled sir. 11:22 11 minutes, 22 seconds So I'm saying that I I mean if we look at the bottom line the profitability has gone down the share has uh fallen about 11:29 11 minutes, 29 seconds 70 75% from all time high. So I just hope that I mean in future we are able to create some value for the investors as well from the decisions that they 11:38 11 minutes, 38 seconds take. I wish you all the best. Thank you very much. Thank you Gon. Thank you. Thank you sir. 11:45 11 minutes, 45 seconds Ladies and gentlemen to ask a question please press star and one. Now participants who wish to ask questions 11:53 11 minutes, 53 seconds may please press star and one at this time. 11:58 11 minutes, 58 seconds The next question is from the line of nilles doshi from Prospero tree. Please go ahead. 12:05 12 minutes, 5 seconds Thanks for the opportunity sir. Sir we we are changing the strategy. We are opening the new format store or the uh 12:13 12 minutes, 13 seconds premium store and we are spending a 8 to 10% of the revenue for the advertisement 12:20 12 minutes, 20 seconds by by by spending that much money and by opening the premium store we will the company achieve the earlier revenue and 12:28 12 minutes, 28 seconds profit or it will be a much more higher than the earlier uh profit 12:36 12 minutes, 36 seconds in future uh it will certainly We aspire and aim to get it to a higher level the 12:44 12 minutes, 44 seconds midterm on short term for the next couple of years definitely our profit will be impacted. 12:50 12 minutes, 50 seconds Sir the profit may be impacted maybe due to the advertisement cost but our GP margin is lower and our revenue is also 12:59 12 minutes, 59 seconds regrowing on quarter on quarter sorry on a Y bas. So if we are opening a premium store naturally we are selling the 13:07 13 minutes, 7 seconds premium product which which is higher than the average purch average sale price. So why the our revenue is not growing? Why our GP margin is not maintaining and why our profit is down. 13:20 13 minutes, 20 seconds So at this you should not be looking at our business on a quartarter basis. I have even said that in the past by the 13:27 13 minutes, 27 seconds end of the year this should the EITA should come to around 25 odd percent by 13:33 13 minutes, 33 seconds end of Q4 and also our uh our GP margin will be sustained. It's not that it's 13:40 13 minutes, 40 seconds going to be terribly lower margin has gone down because there have been changes in the GST rates and we as 13:48 13 minutes, 48 seconds we have explained in the uh presentation in the Q3 we have not increased the MRPs to 13:55 13 minutes, 55 seconds take care of the higher GST. However, we have passed on the benefits of the lower G lower GST to the consumer. So that's why the GP margin has been impacted 14:04 14 minutes, 4 seconds slightly. But however going forward we are confident we'll be a we'll be able to maintain our GP margins. 14:10 14 minutes, 10 seconds So what about the revenue will we maintain the from quarter 4 onward the can we maintain the revenue as earlier or further it will go down? 14:21 14 minutes, 21 seconds No no it won't further go down but by at the end of the year we we might be five to 6% lower than last year. 14:30 14 minutes, 30 seconds Okay. So because the investor are little bit worried at least the investor like me because last three to four quarters 14:38 14 minutes, 38 seconds every time uh the press release or everything from the company is informed that there is a market condition is not 14:45 14 minutes, 45 seconds good and the demand is not good. So the revenue is down. Now we are spending the money on opening a new store. At the 14:53 14 minutes, 53 seconds same time we are spending the money on a advertisement to establish our premium brand. uh I think the strategy will work 15:01 15 minutes, 1 second for the company in the future because currently it does not seems that we our revenue is growing because we are opening the store then why the revenue 15:09 15 minutes, 9 seconds is down I I don't understand because we are closing the some non-performing store and opening the new stores so I think the revenue must be maintained at 15:17 15 minutes, 17 seconds least the because of the advertisement expense of the operating expenses I is higher and AITA margin should suffer not 15:24 15 minutes, 24 seconds the GP margin and revenue that's that's my understanding I may be wrong It is my understanding sir. 15:31 15 minutes, 31 seconds Yeah. But these stores have just recently reopened and it's a game of patience. Uh NLH over the over the 15:39 15 minutes, 39 seconds future definitely the business will grow and we are confident about that as the demand picks up. But these stores have 15:46 15 minutes, 46 seconds just now been opened and underperforming stores have been closed. So they they take some time to pick up and these are 15:53 15 minutes, 53 seconds investments that are necessary for keep the salience of the brand going forward. Okay. Okay. All the best sir. Thank you. 16:02 16 minutes, 2 seconds We wish that from uh Q4 onwards at least we see the revenue growth. At least not the profit growth but the revenue growth. 16:11 16 minutes, 11 seconds Thank you N. Thank you very much. Thank you sir. 16:15 16 minutes, 15 seconds The next question is from the line of Rahil from Sapphire Capital. Please go ahead. 16:22 16 minutes, 22 seconds Hi sir. Good afternoon. Can you hear me? Yeah. Yes sir. 16:26 16 minutes, 26 seconds Yes. Hi sir. Sir uh firstly I would really like to you know u applaud you and commend you for so I uh for the 16:35 16 minutes, 35 seconds journey you've taken upon you know uh I can really see the change I recently passed by one of your stores in one of the malls 2.0 stores I also recently 16:44 16 minutes, 44 seconds visited your website right so I can see the vision which you had you know ported in front of investors that you want to premium as a brand it's really working I 16:53 16 minutes, 53 seconds my only concern is in today's time you know since co So many small brands have come up right uh and they are also uh 17:01 17 minutes, 1 second targeting the young generation who who want uh uh you know those fancy names and the logos from the market and they 17:10 17 minutes, 10 seconds want to wear that. How will you make MUI an overnight sensation? So for example recently I've been hearing a lot from uh friends and other people that they are 17:19 17 minutes, 19 seconds into rare rabbit and you know similar brands. So Miy has been in the market for such a long time and now I see that 17:26 17 minutes, 26 seconds okay the quality is there the the whole image has changed but how will you insert in your mind that okay Mi is something you want to go for against the 17:34 17 minutes, 34 seconds likes of RJ Jones Lac Cost superj etc so this is exactly what we are looking 17:41 17 minutes, 41 seconds to do Rael people have a overhang of the brand from the past and with whatever changes that we are making it's important to communicate and change 17:50 17 minutes, 50 seconds people's perceptions about the brand because there's a certain rate at which the physical stores will change. There are many factors that come into play 17:58 17 minutes, 58 seconds when we are changing or renovating new stores. Also, even while renovating a store, we have to keep in mind how much of the lease is still pending, whether 18:06 18 minutes, 6 seconds the lease is ending in two years. Then those kind of stores can't be renovated because then you have to amatize the you 18:13 18 minutes, 13 seconds know the uh depreciation over just 2 years and things like that. So this will happen at a certain pace. However, we 18:22 18 minutes, 22 seconds will do it prudently at the fastest pace possible. But that's the reason why we are changing the brand because as the 18:30 18 minutes, 30 seconds environment and the retail landscape keeps changing, we have to keep changing. So there are times when there are some ups and downs but it does not 18:37 18 minutes, 37 seconds impact the long-term uh you know sustainability of the brand. But whatever we are doing right now is to 18:45 18 minutes, 45 seconds keep is keeping in mind that what competition is doing, what we have to do, how we will have to navigate through 18:52 18 minutes, 52 seconds this period where we are able to come back on a growth path and rekindle the demand for the brand. 19:00 19 minutes Okay. Sir, I just I just want to wish you uh all the best. So I really wish that people are you know able to see uh what you have to offer now. I recently 19:09 19 minutes, 9 seconds purchased from uh and yeah even for that matter the website and the overall everything is looking you know uh there 19:16 19 minutes, 16 seconds is a drastic change in your presentation as well. So and if I have to pick out of the bunch the all the stores in the mall 19:23 19 minutes, 23 seconds I think I would go to Miy first from what I've seen from afar. So I think it it will work. I think it is working and I wish you all the best for that. 19:31 19 minutes, 31 seconds So much thank you sir. The next question is from the line of Deepan Shankara Narayan from Trust Line Holdings Private Limited. 19:41 19 minutes, 41 seconds Please go ahead. 19:43 19 minutes, 43 seconds Uh good afternoon everyone. Thanks a lot for the opportunity. Uh sir, firstly uh how do we see the growth profile of the 19:51 19 minutes, 51 seconds ch uh company changing over next 3 years considering uh uh the substantial increase in uh ad promotion and spend 20:00 20 minutes strategy. So do we see the growth profile uh changing over long term? 20:07 20 minutes, 7 seconds Certainly certainly we see it changing over the long term. But however as we have mentioned earlier for the next couple of years uh we are not going to 20:16 20 minutes, 16 seconds commit on numbers that this is what we'll do this is what we do. Typically we believe in undercommitting and overd delivering. So it's certainly we should 20:25 20 minutes, 25 seconds start seeing growth from next year onwards but after the next couple of years we'll definitely be back on a on track. 20:34 20 minutes, 34 seconds Okay. Okay. So is this uh change in strategy uh uh is mainly due to huge 20:42 20 minutes, 42 seconds competition coming from uh these D2C companies which are being funded by uh private equity guys and uh they have been aggressively growing. 20:51 20 minutes, 51 seconds This is reflective of that to stand the holding position in the competitive market environment. 20:59 20 minutes, 59 seconds Partly yes. Partly yes. Okay. Okay. Okay. 21:04 21 minutes, 4 seconds Ever changing market scenario you know you have to keep changing with the market. 21:10 21 minutes, 10 seconds Okay. And this week yeah sorry go ahead sir. Sorry. 21:16 21 minutes, 16 seconds I said we have to stand the test of time that only time will tell us in hindsight. 21:23 21 minutes, 23 seconds Okay. Okay. So, specific to this quarter, what is the kind of grass sales growth we had seen adjusting for sales return discounts and this BS impact? 21:34 21 minutes, 34 seconds What is the kind of grass sales growth we had? 21:41 21 minutes, 41 seconds We have not seen any growth in the revenue. 21:45 21 minutes, 45 seconds In fact, the in the quarter has regrown around 6%. Okay. 6%. Okay. 21:54 21 minutes, 54 seconds And uh can you can you throw some light on uh uh the GST impact on this gross margin survey? 22:03 22 minutes, 3 seconds So GST impact has been only in the third quarter when uh the because on 23rd September the new GST rates got 22:11 22 minutes, 11 seconds applicable basically. So as a company we had taken call to pass on the benefits of the lower GST rate to the consumers 22:18 22 minutes, 18 seconds and uh not increase the GST uh the MRP for the higher price GST uh rate 22:26 22 minutes, 26 seconds basically for the governments. We took the hit uh in the company took the hit. 22:30 22 minutes, 30 seconds We didn't want to disturb the uh consumer sentiment in between the season. Okay. Okay. 22:39 22 minutes, 39 seconds Okay. Thank you. I'll get back in the queue. Thank you, sir. 22:45 22 minutes, 45 seconds The next question is from the line of Adita Warha from Synergy Investments. Please go ahead. 22:53 22 minutes, 53 seconds Yeah. The good morning sir, good afternoon sir. Uh my question is on the quarter four now. we are already sitting in mid of uh February. How do you see 23:01 23 minutes, 1 second the sales happening and uh is there some uh improvement from the previous quarter? 23:08 23 minutes, 8 seconds So uh as I mentioned earlier uh Adita uh at the end of the year uh we should be at uh at about five or 6% lower than 23:17 23 minutes, 17 seconds last year's uh sale numbers. So it continues to be muted. However, the improvements and changes that we have 23:24 23 minutes, 24 seconds made in the merchandise etc. Uh hopefully from spring summer 26 they should start paying dividends. 23:33 23 minutes, 33 seconds Okay sir. Okay. My I had other questions but I think that most of them are asked by uh analyst. So thank you. 23:41 23 minutes, 41 seconds All right. 23:47 23 minutes, 47 seconds Thank you sir. The next question is from the line of Ashi from Marhon Investment Advisors. Please go ahead. 23:58 23 minutes, 58 seconds Hi S. Uh thanks for this opportunity. I had a few questions uh on the store opening plans. I wanted to understand uh 24:06 24 minutes, 6 seconds how do what are the plans going forward in terms of the number of stores being uh planned to be open opened in the 24:13 24 minutes, 13 seconds coming few quarters and uh the closing as well. 24:20 24 minutes, 20 seconds So Ashi currently we have uh in 9 months we have opened 27 uh new stores and 24:27 24 minutes, 27 seconds closed 22 stores. That's a net addition of five. However, in the next uh quarter 24:35 24 minutes, 35 seconds we shall be uh we shall be closing 21 stores and adding 15 new doors adding 24:44 24 minutes, 44 seconds six new doors in the season. So for the at year uh FY26 we would be at minus 10 24:51 24 minutes, 51 seconds which is 431 odd stores and out of these 20 stores will be of the new uh retail identity and going 25:00 25 minutes forward in the next year we intend to close about 20 25 odd stores and open 25 to 30 odd stores. We are not going to 25:09 25 minutes, 9 seconds chase scale we're going to chase quality for the next year. 25:14 25 minutes, 14 seconds Understood. Uh, another thing I wanted to uh get a understanding on was that there was a mention about inventory optimization as well in these stores. 25:24 25 minutes, 24 seconds Could you uh dwell a little deeper on that as well? 25:28 25 minutes, 28 seconds Inventory optimization. I don't know what exactly you're referring to but this is something that we uh 25:35 25 minutes, 35 seconds consistently do. It's a it's a the business model that we follow. Ashi is a business model where we take risk of the 25:43 25 minutes, 43 seconds entire inventory. We provide it to all channel partners and whatever is left over at the end of the season, we take 25:49 25 minutes, 49 seconds it back. Since the season has been uh impacted and the performance has been low, the goods will be coming back to 25:58 25 minutes, 58 seconds us. However, historically we have always manage to clear these goods at a profit. 26:03 26 minutes, 3 seconds We don't end up making losses. We take our own time to do it which impacts our working capital days but we don't end up 26:10 26 minutes, 10 seconds eroding the brand by giving extra discounts and trying to liquidate it in a hurry. 26:16 26 minutes, 16 seconds Understood. Yeah, this was around the uh you know point that was mentioned about the working capital cycle going down. U just wanted to get an understanding on 26:24 26 minutes, 24 seconds that. So thanks for that. Uh also there is a mention quite frequently about the market momentum being quite slow uh in 26:32 26 minutes, 32 seconds the coming in the past few quarters and in the coming few quarters as well. 26:36 26 minutes, 36 seconds Wanted to understand how do you see uh this market momentum? Of course we expect that the company would be able to recover the invested value uh say by 26:45 26 minutes, 45 seconds December 26. But how do you see the market moving in this particular segment going forward? 26:52 26 minutes, 52 seconds So we are hopeful that the demand should pick up given the reforms that the government has made and uh for the last few quarters it's been uh it's been 27:01 27 minutes, 1 second muted. We are hoping that the demand should pick up from spring summer 26 onward. 27:08 27 minutes, 8 seconds Understood. Uh thanks a lot sir. I just wanted to point out that I happened to uh visit one of the stores in the city I live in and uh it's commendable that 27:16 27 minutes, 16 seconds even the store uh staff is very well versed with the strategy 2.0 that you guys have uh implemented. Just wanted to 27:24 27 minutes, 24 seconds point that out as well. Thanks a lot for your time. Thank you Ash. Thank you. 27:29 27 minutes, 29 seconds Thank you ma'am. The next question is from the line of Tanma from Growth Infinity. Please go ahead. 27:39 27 minutes, 39 seconds Uh hello sir. Am I audible? 27:42 27 minutes, 42 seconds Uh could you come closer to the mic and speak because your voice is pretty low. Am I audible now? Yeah, better. Yes. 27:52 27 minutes, 52 seconds Uh sir, I was asking that in the last uh means from Jan only I have started to observe that uh there is a uh means 28:00 28 minutes large number of views coming towards your advertisement on YouTube and on Instagram as well. So are you able to 28:07 28 minutes, 7 seconds see some uh uh means uh green sprouts coming up and with those advertisement 28:14 28 minutes, 14 seconds means the large number of views that are coming are they converted into real-time sales on websites or on offline uh basis? 28:22 28 minutes, 22 seconds Yes. Yes. on the website our business has grown by 87% over the uh last year same quarter and definitely we are 28:30 28 minutes, 30 seconds seeing an improvement in that and from whatever we uh get in interactions from trade also like I said the response is 28:37 28 minutes, 37 seconds very positive and people are noticing that something has happened even on the website it looks a lot more premium the 28:45 28 minutes, 45 seconds stores look a lot better but however u tai these are not things because it's not like a call to action 28:53 28 minutes, 53 seconds uh advertisement that you know you're just promoting discounts and you're getting people to your stores. These are 29:00 29 minutes investments made for the longer term. So they take some time to pay off and there's a certain amount of frequency 29:08 29 minutes, 8 seconds with which we have to hit the consumers along with the reach that we have to you know for it to bear fruit. Hence we say 29:15 29 minutes, 15 seconds that for the next couple of years at least we will have to make huge investments in advertising and post that looking at the market scenario and the 29:23 29 minutes, 23 seconds performance we will take decisions on how we uh want to invest going further. 29:30 29 minutes, 30 seconds Okay sir. And sir one more question that uh as for now we have 12 premium stores. 29:35 29 minutes, 35 seconds So by the end of quarter 4 uh can we expect it to reach by 20 or 15 16 in the number? 29:43 29 minutes, 43 seconds 20. Okay sir. 29:46 29 minutes, 46 seconds End of Q4 there will be 20 new uh new identity stores out of which 15 will be uh new stores and five will be renovated stores. 29:57 29 minutes, 57 seconds Okay sir. Answer do we have something big collapse coming up with uh online creators as well or 30:05 30 minutes, 5 seconds collabs and uh means you are expanding the advertisement uh spend as well. So are we expecting some big collapse 30:13 30 minutes, 13 seconds between some creators or the industry collabs as well? 30:17 30 minutes, 17 seconds That's constant work in progress but we are not looking at big celebs but certainly we are looking at content creators as collaborators with the brand. 30:26 30 minutes, 26 seconds Okay sir. Thank you. Welcome Tai. 30:30 30 minutes, 30 seconds Thank you sir. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments. 30:42 30 minutes, 42 seconds Thank you. I'd like to thank everyone for being a part of this call. We hope we've answered your questions. If you need more information, please feel free 30:50 30 minutes, 50 seconds to contact us or SGA, our investor relations advisors. Thank you once again and have a good day. 30:58 30 minutes, 58 seconds Thank you sir. On behalf of Credo Brands Marketing Limited, that concludes this conference call. Thank you for joining 31:06 31 minutes, 6 seconds us and you may now disconnect your lines.