Go Fashion Ltd — Q4 FY26

Go Fashion (India) Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=gJZulHkt2Sg Published: 13 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to Co Passion India Limited Q4 and FY26 earnings conference call. This 0:09 9 seconds 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. 0:19 19 seconds These statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant 0:28 28 seconds lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:36 36 seconds during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being 0:43 43 seconds recorded. I now hand the conference over to Mr. Goautam Sari, CEO of Coashion India Limited. Thank you and over to you 0:52 52 seconds Mr. Sari. Thank you Mish. Uh good evening and warm welcome to everyone present on the call. Along with me I have Mr. R. Moan a chief financial 1:01 1 minute, 1 second officer and SGA investor relations advisors. I hope you have all received the investor deck by now. For those who have not you can view them on the stock 1:10 1 minute, 10 seconds exchange and the company websites. FI26 has been a year that has tested our resilience, challenged us in numerous ways and ultimately reinforced our 1:18 1 minute, 18 seconds conviction in the long-term opportunity that lies ahead for go colors. The bottomware industry has undergone a transformation and go colors has 1:25 1 minute, 25 seconds consistently evolved alongside these changes. When goal and go colors began its uh journey in 2009, it started off 1:33 1 minute, 33 seconds with leggings were the were the cornerstones of the offering. This is no longer the case. Today our portfolio has mixed has changed dramatically. 1:41 1 minute, 41 seconds Approximately 70% of our revenues now come from the value added bottomware portfolio which are the non-leggings 1:47 1 minute, 47 seconds range. This includes trousers, palazos, joggers, treggings, jeggings, athleisure wear, fusion styles and many more. This 1:56 1 minute, 56 seconds shift is not incidental. It is a result of a deliberate design investment, consumer insight and the courage to 2:03 2 minutes, 3 seconds expand in our defined category. We continue to strengthen and diversify our product portfolio to stay aligned with emerging market trends and consumer 2:11 2 minutes, 11 seconds preferences. Over FI27, we plan to add 10 to 12 new refreshing products, bottom web products for our customers. Not just 2:20 2 minutes, 20 seconds line extensions, but genuinely new format that will that opens up new purchase occasions and customer cohorts. 2:28 2 minutes, 28 seconds Our aspiration is clear to be the definitive one-stop destination for women bottomware in India. Now coming to our store network strategy. Our store 2:37 2 minutes, 37 seconds expansion strategy has undergone a significant evolution this year and I want to walk you through the thinking behind in some detail because it is 2:45 2 minutes, 45 seconds central to how we unlock the next phase of growth. 2:49 2 minutes, 49 seconds On the store network we have added 43,000 square ft of retail space over the last year. A growth of 11% primarily 2:56 2 minutes, 56 seconds driven by our aspect on shift to larger EBOs. As the bottomware category broadened with more more and more 3:04 3 minutes, 4 seconds products coming in and more SKUs coming, our smaller stores have actually increasingly become inadequate from a consumer experience standpoint. A 3:13 3 minutes, 13 seconds customer walking into a small store today cannot see the entire full breadth of what color offers. This store the 3:22 3 minutes, 22 seconds store is limiting the conversion between the brand and the consumer. In line with our new strategy, we now firmly focus on 3:30 3 minutes, 30 seconds increasing consumer experience through larger TVO stores of 700 square f feet and above. These stores allow us to 3:37 3 minutes, 37 seconds display our entire full range of inventory and create dedicated sections for different product categories and deliver a meaningful better instore 3:45 3 minutes, 45 seconds experience. We have reviewed our portfolio of stores comprehensively. In FI26, we have shut down 50 plus stores 3:53 3 minutes, 53 seconds in our overlapping catchment areas and and over the next uh 3 months in quarter 1, we uh plan to shut another 50 such 4:01 4 minutes, 1 second small stores. These are deliberate consolidations, two or more small nearby stores being merged into a single larger 4:09 4 minutes, 9 seconds for a better equipped store with a larger and more display of inventory. 4:13 4 minutes, 13 seconds Our store expansion strategy will continue to remain calibrated and selective with a clear force focus on entering high potential locations 4:21 4 minutes, 21 seconds predominantly tier 2 and tier three cities where penetration of our organized bottom market is low. 4:28 4 minutes, 28 seconds Over the next 5 years we sign we significantly ex aim to expand our footprint with the potential to nearly double our scale in terms of square 4:36 4 minutes, 36 seconds feet. The new business strategy will lead to revenue maximization and cost optimization. 4:42 4 minutes, 42 seconds Now uh coming to brand building and customer engagement, FI26 has seen us in investing meaning meaningfully in brand 4:50 4 minutes, 50 seconds visibility and customer engagement particularly among the younger consumer cohorts which represent our future 4:56 4 minutes, 56 seconds growth opportunity to drive improved store performance. We have undertaken few initiatives centered on product 5:03 5 minutes, 3 seconds freshness and customer engagement. We are accelerating the launch of new designs and expanding our product range 5:10 5 minutes, 10 seconds to cater to a wider customer base. In Jan 2026, we had collaborated with a leading influencer to launch a new collection specifically aimed at 5:19 5 minutes, 19 seconds enhancing brand visibility and relevance among younger audience. This was a deliberate effort to see Vocal's brand in a cultural and digital context that 5:27 5 minutes, 27 seconds resonates with the millennials and the Gen Z consumers. Looking ahead in June 2026, we will have a brand ambassador 5:35 5 minutes, 35 seconds for our products. This is a significant step for go colors, one that we believe will meaningfully amplify our brand salience, support stronger 5:43 5 minutes, 43 seconds top-of-the-line awareness and generate improved traction at a store level. A brand ambassador will help us create more consistent uh and more emotional 5:52 5 minutes, 52 seconds storytelling around local's identity particularly as we expand into newer markets and formats. 5:58 5 minutes, 58 seconds Coming to our business new business initiative. First is our daily wear concept. This initiative designed to capture everyday casual wear and 6:07 6 minutes, 7 seconds utilitydriven segment of men's and women's wear market is is demonstrating healthy unit economics in the early stages. We believe that this this uh 6:15 6 minutes, 15 seconds concept complement our core portfolio as well. By the fi by the end of fi 27 we plan to expand the daily concept to 25 6:24 6 minutes, 24 seconds to 30 stores which as on 31st March 2026 is 10 stores. It will give a strong read on scalability consumer adoption across 6:33 6 minutes, 33 seconds different markets international for vocal opened it first international store in the Middle East during FI26 making a significant 6:41 6 minutes, 41 seconds milestone in our brand's journey. This early response has been encouraging and we are studying the unit economics and consumer responses carefully. Our 6:49 6 minutes, 49 seconds approach will remain measured and datadriven as we scale this channel. 6:54 6 minutes, 54 seconds Coming to the LFS business, the LFS business has been volatile in FI26. As noticed earlier, Q3 was significantly 7:01 7 minutes, 1 second impacted by by a key LFS partner causing fresh inventory intake for approximately 45 days. This was an 7:09 7 minutes, 9 seconds operational disruption not reflection of end consumer demand for goal products but it massively affected our revenue 7:16 7 minutes, 16 seconds and channel efficiency for that for for the quarter. We have we have uh since resumed supply to this partner and have 7:25 7 minutes, 25 seconds put in place a strong engagement pro protocols to ensure that we do not face this recurrence again. More broadly the LS channel has faced structural 7:33 7 minutes, 33 seconds challenges around footfall recovery and secondary sales velocity over the past several quarters. Our focus going to FI27 is on improving product assortment and placement with with partner stores. 7:45 7 minutes, 45 seconds Uh ensuring consistent secondary sell through and deepening our engagement with all LFS partners to maximize our 7:53 7 minutes, 53 seconds visibility and consumer access at each touch point. We expect the LFS channel to stabilize and show meaningful recovery in FI27. 8:02 8 minutes, 2 seconds Looking ahead to FI27, our priorities are very clearly defined. First and the foremost, we are committed to turning 8:09 8 minutes, 9 seconds SSG positive and ending FY27 with a positive pull your same store sales growth. This is not just a financial metrics. It is a proxy for brand health, 8:18 8 minutes, 18 seconds consumer traction and store productivity. Every initiative we are taking uh larger stores, fresher products, brand ambassador, influencer 8:26 8 minutes, 26 seconds partnerships, the daily life concepts improve improve store aesthetics is ultimately aimed to driving the SSG 8:33 8 minutes, 33 seconds positive outcome. We are we are we have a clear internal roadmap for moving from negative SSG of FI26 to a positive number by the end of FI27. 8:44 8 minutes, 44 seconds Second, we will successfully migrate to a new store format strategy continuing to grow smaller stores in overlapping catchments and replacing them with 8:52 8 minutes, 52 seconds larger 700 plus feet stores. We will simultaneously in invest in improving the look and feel of our existing stores. Bring in more premium and 9:00 9 minutes aspirational uh products that matches the evolving expectation of the consumers. We want every customer to 9:08 9 minutes, 8 seconds walk into a go color store to to feel that they are engaging with a brand that truly understands them. Third, we will refresh our product portfolio with new 9:16 9 minutes, 16 seconds additions targeting new purchase occasions and consumer sentiments uh and ensuring goal remains the most innovative and comprehensive women's bottomware brand in the country. 9:27 9 minutes, 27 seconds Fourth, which will be our daily wear concept of open 2530 stores to be 2530 stores by the end end of FI27 building 9:35 9 minutes, 35 seconds on the healthy unit economic we've already seen in the 10 stores what we've opened before 31st March. We will continue to focus on the LFS channel 9:43 9 minutes, 43 seconds recovery working closely with our partners on assortment placement sell through to ensure that the channel continues meaningfully to our overall growth. 9:54 9 minutes, 54 seconds Through all this, we remain committed to maintaining a healthy working capital position and generating sufficient internal cash flows for further 10:02 10 minutes, 2 seconds expansion keeping our balance sheet strong as we invest in the future. 10:06 10 minutes, 6 seconds Before I close this, I want to speak in the longer opportunity, longerterm opportunity because I feel it is the it's easy to lose sight of in a 10:15 10 minutes, 15 seconds difficult year like what happened we just experienced now. The company continues to maintain a strong competitive position in one of the most 10:22 10 minutes, 22 seconds recognized women's b as as one of the most recognized women bought brands in India with a clear emphasis on quality, comfort and fit. Our category expertise, 10:31 10 minutes, 31 seconds long-standing relationships, and brand recall position us exceptionally well within the women's uh bottomware segment, which itself remains 10:39 10 minutes, 39 seconds significantly underpenetrated by organized players. Given the still low penetration of organized retail in the country, the bottomware market offers a 10:47 10 minutes, 47 seconds meaningful and long-term opportunity for a brand with a depth of presence and heritage. With this, I would like to hand over the call to our CFO, Mr. R 10:56 10 minutes, 56 seconds moan for the update on Q4 and the full year's results and financials. Thank you. 11:04 11 minutes, 4 seconds Thank you Gautam and good evening everyone. Uh first I will give you the financial highlights for Q4 FI26. 11:11 11 minutes, 11 seconds Our revenues for the quarter stood at 196 crores. Gross profit stood at 123 crores with the GP margin at 62.9%. 11:20 11 minutes, 20 seconds Our EITA for the quarter stood at rupees 50 crores. ETA margin stood at 23.3%. 11:25 11 minutes, 25 seconds Profit after tax for the quarter stood at 8 crores. Coming to FI26 performance, revenues stood at rupees 838 crores. 11:35 11 minutes, 35 seconds Gross profit students 529 crores with a GP margin of 63.2%. 11:41 11 minutes, 41 seconds EIA is at 2237 crores and AITA margin is at 28.3%. 11:49 11 minutes, 49 seconds PAT is at 59 crores. ROC and ROE excluding India impact as on FI26 is at 11:57 11 minutes, 57 seconds 11.5% and 8.9% respectively. Cash and cash equivalent stood at 181 crores as on 31st March 2026. 12:07 12 minutes, 7 seconds With this we'll now open the floor for question and answers. 12:12 12 minutes, 12 seconds Thank you very much sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask questions may please press star and one on their touchstone phone. 12:22 12 minutes, 22 seconds If you wish to withdraw yourself from the question, you may press star and two. Participants are requested to use only handsets while asking a question. 12:31 12 minutes, 31 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 12:46 12 minutes, 46 seconds The first question is from the line of Samir Gupta from India infoline. Please go ahead. 12:53 12 minutes, 53 seconds Hi. Hi team and thanks for taking my question. Uh uh Goautam firstly if you were to exclude the stores that have 13:01 13 minutes, 1 second been closed during the year or during the quarter uh and there is a sizable number of closure. This is what we see. 13:07 13 minutes, 7 seconds uh could you help us with what kind of SSS growth the rest of the stores have clocked uh uh in the system and uh sub 13:17 13 minutes, 17 seconds yeah go ahead Scott yeah thank thanks uh in fact I was just having a look at this data also see in 13:23 13 minutes, 23 seconds Q4 um if I exclude those stores and if I see how many stores have delivered positive SST out of our total network of 13:31 13 minutes, 31 seconds stores uh there have been about 275 stores which have delivered positive SSD in Q4 store with an average SSG of about 13:39 13 minutes, 39 seconds 10 to 11%. So uh there are some there are many stores which are actually doing well and many other the larger stores 13:45 13 minutes, 45 seconds which are more than 300 ft and about 275 stores have been actually positive. So I think uh it's it's a mixed bag of 13:54 13 minutes, 54 seconds stores. I think if you exclude the closed stores I'll have to just see the reported SSG before closed stores or after closed doors. My hunch is that it 14:03 14 minutes, 3 seconds is excluding the flow stores of the year. This is essentially based on live stores through the year. 14:11 14 minutes, 11 seconds So the stores have actually not been considered. 14:15 14 minutes, 15 seconds Okay. So basically even if you exclude the closed stores it's still a 3 three and a half% decline 14:22 14 minutes, 22 seconds minus which is the number the reported number is after excluding closed stores. 14:27 14 minutes, 27 seconds So closed to the stores which are closed is not a problem in terms of SSG. We would still need something else to fix the problem. 14:36 14 minutes, 36 seconds No, because there no because there are there are still many smaller stores in the network and we have still 100 plus stores which are smaller stores in the 14:43 14 minutes, 43 seconds network which have to be eventually migrated into larger stores. See I'll tell you the main problem of the negative SE is because we've been going from store to store meeting customers. 14:52 14 minutes, 52 seconds Many of the smaller stores don't have that kind of shelf space and size to accommodate all the newer products what we are launching and because of that 15:01 15 minutes, 1 second product discovery in the smaller stores become a problem and that is been one of the reasons why our overall EVO SSG has been negative. 15:10 15 minutes, 10 seconds So as we transition in in FI27 we see this recovery happening. 15:15 15 minutes, 15 seconds Got it. Got it. Fair. uh and uh these 275 stores is there any uh uh analysis 15:22 15 minutes, 22 seconds on you know their store size or their vintage? 15:26 15 minutes, 26 seconds Yeah. See having a Yeah. See no these these 275 are across vintage. It's not that all of these stores are new stores. 15:34 15 minutes, 34 seconds They're across vintage. Uh out of these 275 stores approximately close to 200 plus 200 210 stores are stores which are more than 300 ft or more than 400 ft². 15:46 15 minutes, 46 seconds So even our data is suggesting very clearly that positive SSG is more common in these stores. 15:53 15 minutes, 53 seconds And when you say 100 plus smaller stores what would be their average stores and no these are all stores size below 300 the 100 plus stores. 16:02 16 minutes, 2 seconds Okay. 16:03 16 minutes, 3 seconds Got it. And by any chance would you be able to share the net store addition that you expect for FI27? 16:11 16 minutes, 11 seconds See uh right now it's very difficult to give a guidance on the number of stores we are going to be adding on a net basis 16:17 16 minutes, 17 seconds because uh we are going to be looking to uh close many small stores and open larger stores. So it's difficult to give 16:26 16 minutes, 26 seconds a net number as far as uh store additions are concerned but on a square basis I can tell you what how much 16:33 16 minutes, 33 seconds square feet we'll be deploying. We would be adding at least more than 10% more square ft in the coming year. 16:39 16 minutes, 39 seconds And this is net net correct. 16:43 16 minutes, 43 seconds Okay. And 100 plus in in in in FI26 we deliver about 11%. 16:49 16 minutes, 49 seconds So I'm hopeful that even in FI27 we'll be at least minimum giving 10 to 11% of square feet increase. 16:57 16 minutes, 57 seconds Okay. And these 100 plus smaller stores you're mentioning is after the cleanup in 4Q. So there are still 100 plus more uh uh smaller 17:05 17 minutes, 5 seconds but see but but but that that will happen over a slightly longer period of time. See what we have done is we are consolidating some of the smaller stores 17:12 17 minutes, 12 seconds in Q1 as well which I just mentioned in my speech right those already have larger stores nearby so the business is likely to move to the larger stores. Uh 17:21 17 minutes, 21 seconds having said that uh there will be still a tail of uh smalls size store that will happen over a period of time as and when we are opening larger stores in those 17:30 17 minutes, 30 seconds markets we'll be shutting those very small stores. 17:33 17 minutes, 33 seconds Got it. Got it. Fair. Uh but it's very difficult to give a it's very difficult to give a time frame for when we and how we'll be closing those stores. 17:43 17 minutes, 43 seconds Fair. Fair. No worries. Uh secondly and also Sam one more thing what we do. 17:48 17 minutes, 48 seconds So sorry honey this one see one more thing what we have done is when we are signing 700 plus square feet stores right we don't want to be in a situation 17:55 17 minutes, 55 seconds where after 3 years we feel 700 is also less so from a 700 plus square ft store size we are able to say that in the 18:02 18 minutes, 2 seconds long-term future as well we will not have a situation where the floor has started to be turning out to be small for us so we are calculatively call 18:11 18 minutes, 11 seconds signing floors which will last from a longerterm perspective fair Uh this is good. Uh secondly, I'm sorry taking you some more time. 18:22 18 minutes, 22 seconds No, please go ahead. Go ahead. 18:24 18 minutes, 24 seconds So see positive SSS growth expectation or uh ambition for FI27 versus 3% decline. Now you have stated the broad 18:33 18 minutes, 33 seconds plans. But what I noticed is that the the key strengths that we associated with go colors which was lower store 18:42 18 minutes, 42 seconds sizes, less fashion quotient, uh ability to stack up products rather than you know having it on racks which resulted 18:50 18 minutes, 50 seconds in higher throughput and superior store economics. Now when we are moving to larger stores and having a higher 18:57 18 minutes, 57 seconds fashion quotient, more influencer marketing, uh I believe the risks also increase if SSS growth doesn't come 19:05 19 minutes, 5 seconds through. So we have inventory write offs, higher operating leverage. 19:09 19 minutes, 9 seconds Uh so I'll clarify on that. I I'll clarify on that. That's a good point. 19:14 19 minutes, 14 seconds See I'll tell you uh from a unit economics and return on capital employed perspective and payback period 19:20 19 minutes, 20 seconds perspective a 700 ft store and a 300 ft store does not behave differently. See 19:26 19 minutes, 26 seconds even when we were even when we're having positive access in a unit economics we had larger stores also and smaller stores also and both had similar unit 19:36 19 minutes, 36 seconds economics. It's not that we've never had 700 plus square feet stores in our in our ecosystem and network of stores. 19:42 19 minutes, 42 seconds Right. So stores 2,000 square ft where it's a single box,000 square ft follow the same unit economics. So from a 19:50 19 minutes, 50 seconds payback period and return on capital employed it's not going to change much. 19:54 19 minutes, 54 seconds Now as far as pack stacking and display is concerned it is not that we are entering into the fashion category. The bottomware category is always going to 20:03 20 minutes, 3 seconds be a core and basic category. The only problem what I'm facing today is that my smaller stores cannot accommodate the new style. See once I start opening a 20:11 20 minutes, 11 seconds larger store there is a display space to stack them and hang them. So from that perspective the inventory risk does not increase because I'm not entering the 20:20 20 minutes, 20 seconds fashion space. It is just because my line of products have increased which are again very basic and core in nature. I just need shelf space to display. 20:29 20 minutes, 29 seconds So my fundamentals of our business of our ebo giving uh certain throughput giving certain ebida without inventory 20:37 20 minutes, 37 seconds risk it will continue the same way even in a 700 square ft store because we've had 700 square ft store in the past in our current ecosystem as well. 20:47 20 minutes, 47 seconds Got it. Fair this this this answers the question. Lastly if I may squeeze in uh inventory increase is it just a function 20:54 20 minutes, 54 seconds of changing mix or is there something else? And if it is a see it's a combination of no it's a combination of two reasons uh Samir one 21:03 21 minutes, 3 seconds is because we've not we've had a revenue softness uh in inventory days is showing 21:10 21 minutes, 10 seconds higher second uh because our pilot also has gone live with 10 stores there's slightly increase inventory overall 21:18 21 minutes, 18 seconds bottomware inventory because of the pilot of daily wear concept we've started seeing the sales but the sales have not picked up velocity for the 21:27 21 minutes, 27 seconds inventory to be efficient towards the sale for the daily wear concept. So the slight elevation of inventory is largely 21:34 21 minutes, 34 seconds on the basis of softness and bottom wear sales and uh the the daily concept uh 21:41 21 minutes, 41 seconds products which have entered this year in our inventory where the sales have just started picking up now. So this inventory level what we have currently 21:49 21 minutes, 49 seconds at 4 months in the in FI27 it will stabilize again back to 3 months. What was our previous number? 21:57 21 minutes, 57 seconds But both the factors are going to be there right I mean uh you're targeting to I mean the same sales growth if at 22:04 22 minutes, 4 seconds all will be low single digits and daily where as a pilot no no see no see no as far as inventory is concerned no our inventory sourcing 22:13 22 minutes, 13 seconds is dynamic now since there has been softness in sale our inventory will autocorrect and bottomless so there will not be a situation where my inventory 22:22 22 minutes, 22 seconds levels are continuing to rise dramatically So this year yes we will grow we will have positive SSG but even the inventory levels as far as daily 22:31 22 minutes, 31 seconds where is concerned and bottom where is concerned it will auto correct got it fair uh this is all from me 22:38 22 minutes, 38 seconds thanks for taking all these questions and all the best for the future I'll come back in the follow 22:46 22 minutes, 46 seconds thank you the next question is from the line of Deep Sha from Equirus Securities please go ahead 22:54 22 minutes, 54 seconds hi So uh thanks for the opportunity. So basically two questions from my side. U last couple of quarters if we see we 23:02 23 minutes, 2 seconds have been taking initiatives in terms of improving customer experience. We have been closing down smaller stores. We have been launching new products. 23:10 23 minutes, 10 seconds However when I see number nothing has been flowing to that side. So first of all if you can comment upon how has been 23:18 23 minutes, 18 seconds the demand trends what's happening in the industry. If you can throw some color over here. uh talk then I will off to the second edition. 23:26 23 minutes, 26 seconds Sure. Thank you Deep. So Deep see uh see very clearly it's very reflective in our numbers. We are also going through an internal transition. When we are going 23:34 23 minutes, 34 seconds through an internal transition we have identified where the pain points are. So now we know what actions have to be taken and when we are taking those 23:42 23 minutes, 42 seconds actions the results always takes a little bit of time. So I know it's not reflected in our quarterly number what efforts we are putting in but I'm very 23:51 23 minutes, 51 seconds hopeful that in the coming quarters all our repair actions what we are taking it will finally show good results for us. 23:58 23 minutes, 58 seconds So I think if we wait a little more, we be patient little more, we will start seeing the green shoots. As far as 24:05 24 minutes, 5 seconds demand scenario is concerned, I think overall demand is not as weak maybe as how it was maybe 6 months a year back. 24:13 24 minutes, 13 seconds Quarter four when I speak to my uh peers, many uh retail companies, apparel companies have given positive commentary 24:20 24 minutes, 20 seconds around demand and demand scenario. So I think from a demand perspective probably it's not as weak as it was earlier and we have seen improvement in demand in the industry. 24:31 24 minutes, 31 seconds Okay. Got it sir. And so secondly on the margin side um uh we have somewhere in the paper mentioned that there was 5 24:39 24 minutes, 39 seconds crores of impact due to the uh reliance credit note. So if I adjust that to my gross margins we have seen some 114 24:49 24 minutes, 49 seconds basis points of gross margin expansion on a Y basis. So first of all can you comment upon uh the nature of this 24:55 24 minutes, 55 seconds expansion and secondly uh see considering over last two months cotton prices uh have seen a very sharp rally 25:03 25 minutes, 3 seconds so any outlook for the gross margin on FI27 gross margins. 25:08 25 minutes, 8 seconds Yeah I think see I think we'll maintain similar gross margins. I think we'll maintain between that uh 62 and a half and 63 and a half% gross margins what 25:17 25 minutes, 17 seconds we've been delivering. See the one good thing in our P&L right even in a very tough year we have not uh we have not moved and pivoted to discounting we have 25:26 25 minutes, 26 seconds kept our no discounting uh policy intact our gross margins have been rock solid intact so even in the coming year we see similar gross margins to what we've been 25:34 25 minutes, 34 seconds delivering I don't see an expansion but we'll be similar gross margins okay done thank you so much 25:41 25 minutes, 41 seconds thank you thank you so much thank you the next question is from the line of 25:48 25 minutes, 48 seconds Avin Karumani from Motila Losan. Please go ahead. 25:54 25 minutes, 54 seconds Hi sir, good evening. So my question is regarding the ASP. So if we look at like uh there's a very increase in the ASP 26:01 26 minutes, 1 second and also the uh number of products that are priced below, th000 rupees their share has gone down from 80% to 70% uh 26:09 26 minutes, 9 seconds in the last four quarters. So is that one of the steps that you're looking to drive the growth which will help you going forward? 26:18 26 minutes, 18 seconds Uh see from an AS perspective Ninach uh look we are careful on premiumization. 26:23 26 minutes, 23 seconds Yes we want to uh you know introduce products of our higher AS but we we don't want to become so premium that we 26:32 26 minutes, 32 seconds start becoming a very expensive product right expensive uh product line. 26:36 26 minutes, 36 seconds Currently our ASV is around that 800 rupees. I think in the short term it will be uh between 800 and 900. So we are very cognizant of that. We don't 26:44 26 minutes, 44 seconds want to premiumize so much that our ASV starts crossing 1,000 rupees or beyond 1,000. We always want to keep our ASV we 26:52 26 minutes, 52 seconds want to try keeping our bottom where ASV sub 1,000. 26:57 26 minutes, 57 seconds So this uh reduction in the percentage share of products below 1,000 rupees is it because you voluntarily moving some low value products or uh how 27:05 27 minutes, 5 seconds no I don't think uh I don't think the number that percentage should be given too much importance. I think we should always see a blended average of our ASP. 27:12 27 minutes, 12 seconds Yes, 70% of the products are less than thousand but we are also introducing products which are more than 1300 as well. So the way as management we are 27:21 27 minutes, 21 seconds looking at is that what is a blended ASP which comes into into our business. So the blended ASP right now is between 800 27:28 27 minutes, 28 seconds rupees and 811 rupees. So I think that's a very decent ASP and we would like to maintain our ASP from a long-term perspective. We would like to maintain it under,000. 27:39 27 minutes, 39 seconds Okay. Okay. Got it. Uh and the other question is regarding the LFS. So when we said last time that this 45 days of issue that happened with one of the 27:47 27 minutes, 47 seconds partners there was supposed to be ending third quarter right even this quarter we have seen a decline here in case of LFS. 27:54 27 minutes, 54 seconds See uh what has happened know what has happened we've had a 15 16% decline in LFS revenue in Q4. If I adjust that five 28:03 28 minutes, 3 seconds crores which I mentioned in my investor presentation because when we do a reversal or we get a credit note it adds on to the LFS revenue right uh because 28:12 28 minutes, 12 seconds of India's 115 standard so if I adjust the 5 crores uh the 15% decline will come down to 7%. 28:21 28 minutes, 21 seconds Now from a trajectory perspective where we were at minus 30% in quarter 3 the minus 30 has become minus 7. So the 28:29 28 minutes, 29 seconds recovery is already started seen in Q4 from an LFS perspective. So minus15 is the incorrect number to look at. If we 28:37 28 minutes, 37 seconds adjust the 5 crores of shortfall of credit note and we look at it from a that perspective then the then the fall is only - 7 or - 8%. 28:47 28 minutes, 47 seconds Okay. Okay. Okay. 28:47 28 minutes, 47 seconds So from so from minus30 in Q3 from minus30 in Q3 has come to minus 7 in Q4. 28:53 28 minutes, 53 seconds So in Q1 you'll see further improvement where it will I'm hopeful that it will start uh there will be no degrowth and there will be growth as well. 29:02 29 minutes, 2 seconds Understood. Understood. Sure. And uh uh you said in the earlier point that out of the 800 stores somewhere around 275 29:08 29 minutes, 8 seconds stores are delivering a policy and out of rest 500 stores 100 stores would be a smaller stores which uh correct over the 29:17 29 minutes, 17 seconds near future you'll be closing down and what's commonality between the other 400 stores which are still seeing a negative SSD. 29:26 29 minutes, 26 seconds uh see uh the other 300 200 300 stores are seeing negative SSG and we are studying see it's a even those stores uh 29:34 29 minutes, 34 seconds some of those stores uh have actually uh degrown and there are many stores which have grown so we are looking at the reasoning of all the other stores we 29:43 29 minutes, 43 seconds have studied all the buckets of sizes we have seen that the ma majority lead has happened in the very small stores of 29:51 29 minutes, 51 seconds course uh from a I can't say that all larger stores have grown But the whichever stores have been posited a major chunk of them have been 29:59 29 minutes, 59 seconds the larger stores. So we've been able to when we studying that data we've been able to come to the conclusion that the larger stores work better than the smaller stores. 30:08 30 minutes, 8 seconds No. Okay. Okay. Uh that's it. And uh one last question regarding this 10% area that you would be doing. Uh so these 30:16 30 minutes, 16 seconds pilot stores they are of a larger ser 2005 kind of stores correct. So how many of that are you building into this 10% areas grow? 30:26 30 minutes, 26 seconds Uh I think uh including that I think see the number of stores uh as far as we are adding we going to be adding another 105 30:34 30 minutes, 34 seconds stores in FI27 right they are already currently at 10 stores so the 1050 stores will add maybe 2% or 3% on the overall square ft. 30:43 30 minutes, 43 seconds Okay. Okay. Got it. So maybe so where maybe from a bottom pair perspective if we were adding 10% including the the daily concept pilot maybe it will become 12%. 30:55 30 minutes, 55 seconds Thank you sir. Thank you. 30:58 30 minutes, 58 seconds Thank you. The next question is from the line of Sham Sundar from Franklin Templeton. Please go ahead. 31:07 31 minutes, 7 seconds Yeah. Um hi Goautam. Good evening. Yeah. Hi Sean. 31:12 31 minutes, 12 seconds Yeah. Hi. Um Gotham. So this SSG coming back to a low single digit next year. Um the key insight you are mentioning is uh 31:21 31 minutes, 21 seconds once we do away with some of the smaller stores and with larger stores our customers should have a better um 31:28 31 minutes, 28 seconds discovery potential and therefore that should lead to better SSG. Is that the key insight there? Did I get it right? 31:34 31 minutes, 34 seconds That is one of the that is that is one of the main main reasons. 31:39 31 minutes, 39 seconds Okay. Okay. Is there is there are there any other uh no see see what we doing no we doing two three 31:46 31 minutes, 46 seconds things one is obviously the largest role which is one of the key main reasons why our business also has been slowed down because of the display of uh styles 31:54 31 minutes, 54 seconds we've also launching many new products in the coming year which are in today's time the consumer is demanding which 32:01 32 minutes, 1 second like we launching all day pants we launching cloud pants we're launching a few new products in the pants category which is likely to do very well in the 32:10 32 minutes, 10 seconds uh in the coming years. So some new product additions, better store experience, larger store with a brand ambassador coming on board and our 32:19 32 minutes, 19 seconds marketing also gets strengthened. I think the overall all these two three levers will have a very positive impact on the sales and performance of the business. 32:29 32 minutes, 29 seconds Understood. Okay. Understood. Got it. Um okay. Um uh Gotham the next question. If you look at our clean Eida margin as in 32:36 32 minutes, 36 seconds the pre-indida margin based on our disclosure and if you look at over a 12 quarter period that margin has steadily 32:44 32 minutes, 44 seconds dropped uh from say 60 o% to 6.8% 8% this quarter. Uh what is your diagnosis 32:51 32 minutes, 51 seconds here and how do we intend to arrest this margin? You can is there some um tough margins that we can defend 33:00 33 minutes given our um store the quantum of stores and and the cost base that we have now built into the system. 33:09 33 minutes, 9 seconds Okay. uh so sham I don't see the best way to look at the margins will be from a fullear basis because the quarter 4 33:16 33 minutes, 16 seconds EIDA is also impacted because of the LFS credit note so the best way to look at it is from a fullear basis so from a 33:24 33 minutes, 24 seconds fullear basis you see our EIDA for the full year pre-indida is 11 and a half% and last year was 16.8%. 33:32 33 minutes, 32 seconds So there is a there is a uh 40 crore fall in IBIDA. Last year our full year I ebida was 143 crores. This year it's one 33:39 33 minutes, 39 seconds of 93 crores. So there is a fall of 40 crores. Now the stores what we have shut 33:45 33 minutes, 45 seconds and shutting uh these stores revenue is more likely to move to the larger store which is nearby over a period of time. 33:54 33 minutes, 54 seconds But the cost which was incurring for these stores was more than 25 crores. So a good chunk of cost comes down when we 34:04 34 minutes, 4 seconds are shutting these small stores. So eventually once the business also moves to the larger stores, the IBIDA margins will start improving and start going up. 34:13 34 minutes, 13 seconds So I'm not really very concerned about the IBIDA margins because it's it's uh it's a function of rent and salaries which will get corrected once the 34:22 34 minutes, 22 seconds smaller stores start shutting in Q1. So the margin recovery is more likely to happen from Q2. So from Q2 reports Q2 34:30 34 minutes, 30 seconds financials you'll be able to see a significant increase in our EIA margins which is currently at about 11.5% for the full year. Visa B we were close to 16.8% in the previous year. 34:42 34 minutes, 42 seconds Correct. And and in F23 I think that was the peak at close to 19 odd percent. So correct about 18%. 34:49 34 minutes, 49 seconds We were at about 18 yeah 18 18 and a half%. But you will but this IDA what which is right now is at its lowest it 34:57 34 minutes, 57 seconds cannot go below than that. So from Q2 onwards one Q1 we are going to be like I just mentioned in my speech in Q1 also we are going to be shutting about 50 35:05 35 minutes, 5 seconds small stores from July onwards from Q2 onward once those small stores are out of the ecosystem that entire 25 cr plus 35:14 35 minutes, 14 seconds cost reduces in the P&L and the revenue is also eventually moved to the larger stores. So we'll get a full benefit of that flowing to the evil. 35:23 35 minutes, 23 seconds Understood. Okay. Okay. Uh thanks. Thanks Goam. Thank you very much. Yeah. 35:28 35 minutes, 28 seconds Thank you. The next question is from the line of Dan Shuansil from MK Global. Please go ahead. 35:35 35 minutes, 35 seconds Hi Goautam. Thanks for the opportunity. 35:39 35 minutes, 39 seconds uh sir uh we are most likely optimizing our network by 10 15% right 35:47 35 minutes, 47 seconds and uh SSD expectation is turn around only by uh end of FI27 right so uh revenue for FI27 35:56 35 minutes, 56 seconds can we assume it should be like a 10% kind of a dip 10 15% kind of a dip is this the right way to look at it uh no 36:04 36 minutes, 4 seconds we will not we will not grow in FI27 uh Dan So the idea is to grow and uh we you 36:12 36 minutes, 12 seconds know a lot of things a lot of efforts been have been happening in correcting the small stores doing good marketing we've signed a brand ambassador also I think all these things are going to 36:20 36 minutes, 20 seconds bring a positive result for us in FI27 so there will definitely not be a D growth I I'm expecting that we will grow difficult to give a growth guidance but 36:29 36 minutes, 29 seconds we will definitely grow in FI27 so Gotham what I understand so your SSD target that you're giving is a tad that 36:38 36 minutes, 38 seconds conservative right so why I'm saying so so suppose you have given two examples right Rajasthan and Maharashtra so if 36:45 36 minutes, 45 seconds you're combining these two stores into one store right so your SSD should jump up right in that particular cluster uh 36:53 36 minutes, 53 seconds so why are you saying that your SSD will only become positive by year end so seeing now see no I'll tell you what 37:01 37 minutes, 1 second happens Advant closing the store it takes time for that revenue to move so we are also not able to estimate key within which time frame will that 37:08 37 minutes, 8 seconds revenue move? So right now from a ideology p from a uh guidance perspective we feel that okay we should 37:16 37 minutes, 16 seconds turn positive by the middle of next financial year or maybe end the entire year on a positive SNSC but for us to define the time frame of how long it 37:25 37 minutes, 25 seconds will take to for that revenue to move from the smaller to the larger store is very difficult. 37:31 37 minutes, 31 seconds Okay. Okay. and uh Goth Gotham. So uh going back to the example uh you're 37:38 37 minutes, 38 seconds saying that two stores combined were having about 500 to 600 uh square ft which is now getting converted into one large store of 900 to,000 square ft. 37:49 37 minutes, 49 seconds So uh combined how should we see the revenue and margin profile of that cluster? Right. 37:55 37 minutes, 55 seconds The unit Yeah, the unit economics don't change. In fact, Sam had asked the same question. 38:00 38 minutes The unit economics don't change. I'll tell you the reason why. Now even if I take my current network of stores, we have stores of all sizes. 38:09 38 minutes, 9 seconds I have seen uh the larger store sizes also give the same unit economics. So uh from a unit economics perspective, if 38:17 38 minutes, 17 seconds the business is likely to move to the nearby larger store, uh the unit economics will be the same. In fact the 38:24 38 minutes, 24 seconds question is when we are opening another large store in a fresh market or 700 ft² it will carry the same unit economics as a 300 one. 38:32 38 minutes, 32 seconds See the existing store which is there and the business is going to move to the larger store the existing larger store the the there will be improvement in revenue. 38:40 38 minutes, 40 seconds But for a brand new 700 ft store when I opened the unit economics is going to be very similar to my 300 ft. 38:49 38 minutes, 49 seconds No, I get it. But uh the example that you have provided is actually a 900 2,000 square ft² store, right? 38:56 38 minutes, 56 seconds Basically, ideally what I the idea is suppose so I got your question. Suppose the two 300 ft² stores were doing four 39:06 39 minutes, 6 seconds lakh rupees each and uh I've opened a new larger store nearby. 39:14 39 minutes, 14 seconds So that eight lakhs of business with some incremental business should move to the larger store. 39:21 39 minutes, 21 seconds Yeah. Okay. But still you're saying only four lakh but your annual revenue per store is 39:27 39 minutes, 27 seconds no no I'm giving you an example example. If two stores are there doing say five lakhs each 39:36 39 minutes, 36 seconds and we are opening one large store nearby in that cluster. It's a brand new store of say 700 800 square ft. Okay, 39:43 39 minutes, 43 seconds both those stores revenue should move to that larger store and in addition to that because it's a larger store with better experience, it should do a much 39:52 39 minutes, 52 seconds higher number than what those two stores were combined with also. Okay. So, the unit metrics of larger stores should 39:59 39 minutes, 59 seconds actually be better than it must be actually much better than two smaller stores because and I'll tell you why your employees also what you're 40:08 40 minutes, 8 seconds going to be keeping in the 700 ft² store is going to be less compared to the total employees what you would keep in two small stores. 40:17 40 minutes, 17 seconds Fair enough. 40:17 40 minutes, 17 seconds So, from a unit limits perspective it the viability and the it'll be on par with the 300 if not better. 40:25 40 minutes, 25 seconds Fair enough. But uh have you seen this uh precedent in some of the areas already or this is just an expectation? 40:33 40 minutes, 33 seconds No. No. We have see I'll tell you many places where we've opened larger stores we have seen deep cannibalizations in the very small stores nearby. So it's 40:41 40 minutes, 41 seconds very evident that the customer has a better shopping experience in a larger store. So you practically see you know when you're walking into a 250 ft store. 40:52 40 minutes, 52 seconds The new size it becomes very difficult to display the new size. 40:58 40 minutes, 58 seconds See ideally as a company we should have pivoted to larger stores and seeing this pivot a lot earlier. Today that's why we 41:05 41 minutes, 5 seconds are not repeating the same mistake by doing 700 plus square feet store. We will not be in this position again after 3 years or four years. 41:15 41 minutes, 15 seconds Okay. I'm taking a 700 plus square feet store to also keep in mind and to accommodate the newer bottomware products what are launch in the future. 41:27 41 minutes, 27 seconds Understood. Understood. Gotham. Uh Gotham. Uh I also wanted to understand so my understanding suggests that uh the 41:34 41 minutes, 34 seconds core consumer which we had was 25 to 35 years uh age women right and our intent 41:41 41 minutes, 41 seconds was to bring in that 20 to 25 years age young women also right uh correct so now with the product launches that we 41:49 41 minutes, 49 seconds are doing right uh what are we trying to uh do with these products are we sort of trying to attract uh what we trying to 41:58 41 minutes, 58 seconds what we're trying to do so we want to launch products which are relevant for all age groups. See I even when we are 42:05 42 minutes, 5 seconds launching the new when we launched the project Kohli associated collection that collection was well purchased across a 42:14 42 minutes, 14 seconds 20 year old girl and a 45 year old woman also. So I think the products is our product strategy is very clear that it 42:22 42 minutes, 22 seconds should appeal to all age groups. So whatever new products we are developing it will be not only for the Gent but 42:29 42 minutes, 29 seconds even for the millennials as well if not older no we don't want to yeah go ahead sorry 42:38 42 minutes, 38 seconds go ahead so but if you see your numbers bottom right so uh if we see this quarter's performance also then actually 42:47 42 minutes, 47 seconds your ASP has increased by about 9 odd% and your volume per store has dipped by about 11% 121% right so that is the uh 42:55 42 minutes, 55 seconds broad estimate I have uh come up to so your volumes are actually dipping right so um that means your core consumer uh 43:04 43 minutes, 4 seconds is actually not finding what um yeah I no I understand but see I understand that we are in a volume 43:12 43 minutes, 12 seconds business right I mean see look there's no doubt about it that we are in a volume business but I'll give you another aspect when a consumer is 43:20 43 minutes, 20 seconds shopping apparel say bottomware the average they buy of a particular average transaction value. See today our 43:28 43 minutes, 28 seconds average transaction value say is around 1,700,800 rupees. I'm just giving an example. So as the AFC increases the 43:36 43 minutes, 36 seconds consumer will end up buying of a particular transaction value. So sometimes I'm not saying that we should 43:44 43 minutes, 44 seconds not be looking at volume. Volume is a very very important metric in our business. But as ASC increases it will 43:52 43 minutes, 52 seconds not uh also completely mean that the volume growth is keeping up in pace and the consumer uh bill will keep increasing. Are you understanding? 44:01 44 minutes, 1 second Suppose P if a lady used to buy say two bottoms or 500 each. Today when she's coming and she's probably buying 1,300 44:09 44 minutes, 9 seconds rupees for eight bottom, right? 44:12 44 minutes, 12 seconds So she's actually from an average transaction value perspective she's actually spent more than what she was spending earlier. So see so what I mean 44:19 44 minutes, 19 seconds to say is we should keep an eye on volume because our is the volume led business but it because there's a volume dro does not mean that there's a 44:28 44 minutes, 28 seconds fundamental uh misalignment in the business does not necessarily mean like that. 44:32 44 minutes, 32 seconds So so you're saying that your bill counts have actually not dipped to the uh extent your units per transaction. 44:39 44 minutes, 39 seconds Yeah. Yeah. My bill my bill cuts have actually not fallen. Yeah. Exactly. Not to the is not to the volume deg growth what you're calculating. Absolutely. 44:47 44 minutes, 47 seconds Okay. So your consumer you're not losing consumers it's only that they're purchasing less uh from you. 44:53 44 minutes, 53 seconds Yeah. Purchasing less because your ASV also is increasing. Today see when you're offering a 1,400 rupee product sometimes the customer says okay I'll take a I'll take a 1,400 rupee product 45:02 45 minutes, 2 seconds and maybe not 500s. I'm just giving you an example. So but look it it still does not mean that we should not look at volume. At the end of the day apparel 45:11 45 minutes, 11 seconds the entire apparel category volume data is a very very important data to track. 45:16 45 minutes, 16 seconds But in this case, I don't think we should give too much emphasis on it. It it does not really mean that there's a misalignment in the business. It's not that we losing customers. 45:26 45 minutes, 26 seconds Got it, sir. Uh, thanks for taking my question. Yeah. 45:30 45 minutes, 30 seconds Thank you. The next question is from the line of Per Sha from Evaspark Institutional Equities. Please go ahead. 45:38 45 minutes, 38 seconds Hey. Hi. Hi, Gotham. Thanks for the opportunity. Uh, yeah. uh I just wanted to understand uh this uh conceptually 45:46 45 minutes, 46 seconds this whole uh point that if we move to larger store then SSG will improve because I'm understanding it will be 45:55 45 minutes, 55 seconds combination of our existing offerings and on that there will be a layer of new offering that we'll give now the 46:02 46 minutes, 2 seconds productivity wise the old inventory which in any case we are seeing that it is not driving SSG 46:09 46 minutes, 9 seconds uh there its efficiency both in inventory terms and per square footage terms should not lead to SSGS 46:16 46 minutes, 16 seconds or or higher SSG and the balance is actually whatever the incremental inventory will bring that is supposed to 46:25 46 minutes, 25 seconds not I'll explain to you see when I move from a 300 ft to a 700 ft my inventory is necessarily not increasing at the 46:34 46 minutes, 34 seconds store see I'll tell you what happens if I want to launch new products I can very well keep it in the 300 ft put it kept it in a folded way one behind the other. 46:43 46 minutes, 43 seconds Accommodation is not the problem. The problem is the display is the problem. 46:47 46 minutes, 47 seconds So when I'm when I'm moving from 300 to 700, I'm going to keep the same number of units what I was keeping in a 300. It 46:54 46 minutes, 54 seconds is just that they are displayed a lot more. The the product discovery happens [clears throat and snorts] very easily when the consumer is walking around the 47:03 47 minutes, 3 seconds store. Visav the new product lying in a shelf behind another stack. 47:10 47 minutes, 10 seconds Correct. My in my inventory does not increase. I understand your question. 47:14 47 minutes, 14 seconds You have a valid point. But my inventory does not increase when I'm moving from a 300 to a 700. 47:22 47 minutes, 22 seconds Got it. But then one should assume that at least uh so inventory turn does not 47:29 47 minutes, 29 seconds get compromised. But uh square footage efficiency how should we think about it? 47:35 47 minutes, 35 seconds Square footage uh efficiency. See in our business no uh though we are reporting square footage now uh for us you should 47:43 47 minutes, 43 seconds see whether the absolute average per EO is increasing and what is the SSD sales per square feet of course is a very 47:51 47 minutes, 51 seconds important metric for any brand to track but because we are a sub000 square ft brand the right way of looking at our 47:58 47 minutes, 58 seconds kind of model would be okay how is the average store of a goal store uh output and throughput in a year and what is the same store sales growth 48:07 48 minutes, 7 seconds I think these are the two metrics to track for us. 48:10 48 minutes, 10 seconds Perfect. And the last one, what process led us to narrow down that this is the problem statement and and uh sorry I 48:18 48 minutes, 18 seconds logged in late but uh have we kind of seen early success stories that this is 48:26 48 minutes, 26 seconds actually the solution which can be now scaled and and then can be I'll tell you I I'll tell you see we've been visiting many stores and retail you 48:33 48 minutes, 33 seconds have to be on the shop floor visiting many stores and we visited many of our stores we and because in the last few quarters and years we've launched so the 48:41 48 minutes, 41 seconds products. When we visited our store, we saw the display, when we spoke to the sales executive, we spoke to many customers. Uh we just got a very good 48:50 48 minutes, 50 seconds sense of what was happening. And second example what we had that when we opened a slightly larger store that's there 48:58 48 minutes, 58 seconds were many stores which did really well and the new products also did very well. 49:02 49 minutes, 2 seconds So when we connected the dots, we understood where the problem is and that's how we arrived at this conclusion that this is a big factor. See the 49:10 49 minutes, 10 seconds entire bottomware market is moving more and more towards value added products right as you keep introducing more value added products and the shelf space is 49:18 49 minutes, 18 seconds not enough to display growth will get hampered no perfect and and was this not the option 49:26 49 minutes, 26 seconds or not considered as an option to let's say buy a next door store and expand the store I'm just uh 49:35 49 minutes, 35 seconds you know I I that we have done that in many cases but sometimes it's not available will pay this. I mean look it's sometimes we are lucky to get it 49:43 49 minutes, 43 seconds sometimes is very difficult. So we keeping an eye on situations like that if you're able to either get space behind the store or on the side of the store. 49:54 49 minutes, 54 seconds No I was just thinking from consumer journey and muscle memory perspective that there is some muscle memory has 50:01 50 minutes, 1 second been built on your geo location and then suddenly if the store is not there uh how quickly a customer can kind of 50:09 50 minutes, 9 seconds transitions it transitions very fast because you're not see we are also at the end of the day opening stores in prime location so it's not that the 50:17 50 minutes, 17 seconds customer will miss it see if we were opening in locations which are weak then I completely buy your point so you see 50:25 50 minutes, 25 seconds in retail any which ways uh even if you're not having the square feet transition what we are having brands keep moving from location to location 50:33 50 minutes, 33 seconds the important for discovery is that it should be a prime Got it. Got it. Uh, thanks and all the best. 50:43 50 minutes, 43 seconds Thank you. 50:45 50 minutes, 45 seconds Thank you. The next question is from the line of Dhanja Jen from GM Financials. Please go ahead. 50:52 50 minutes, 52 seconds Uh, hi sir, thanks for taking my question. Uh, I just wanted to understand how has been throughut of 51:00 51 minutes these larger stores compared to others uh, smaller size stores and how has been customer experience you are hearing? Uh that's all. 51:08 51 minutes, 8 seconds Uh no I mean look uh once these larger stores have opened we've also visited we've also seen that the customer is uh 51:16 51 minutes, 16 seconds reacting to it very differently. We've introduced a methodology where there is more self shopping. See what typically in a smaller store what used to happen 51:24 51 minutes, 24 seconds was when a customer used to enter she used to get assisted by a sales girl. 51:30 51 minutes, 30 seconds It's very difficult to shop in a small go color store by yourself because browsing is very difficult. The Facebook has to take out the folded garments and then show the product to the consumer. 51:41 51 minutes, 41 seconds In the 700 plus square feet there is an element of self browsing. So when there's an element of self browsing the self-discovery takes place. So from what 51:50 51 minutes, 50 seconds we have spoken to consumers the feedback has been very positive. In fact we've also visited the stores we've also seen that it's made a very big difference. 52:07 52 minutes, 7 seconds So the participant has left the queue. 52:09 52 minutes, 9 seconds We'll move on to the next question which is from the line of Archel Jalan from Lotus Well. Please go ahead. 52:16 52 minutes, 16 seconds Hello. Uh thank you for taking my question. So sir, the company has built around a niche in women's bottomware, 52:24 52 minutes, 24 seconds right? But competitors like Nika that are multibrand platforms are growing very strong with wider offerings and customer reach. So how does the 52:32 52 minutes, 32 seconds management plan to def uh defend and grow their market share in the coming years? What is your take on this? Can you please give some road map around it? 52:41 52 minutes, 41 seconds See, I think the uh main objective of the company uh in the midterm and lock term is to keep going deeper in bottomware because I still feel I know 52:50 52 minutes, 50 seconds we had a tough year but I still feel the bottomware category is huge and there is a very very big growth map for us left 52:57 52 minutes, 57 seconds for in bottomware. Uh having said that uh to your question about other categories we did a pilot with topware 53:04 53 minutes, 4 seconds and little bit of men's wear as a all day wear category pilot we did we've opened 10 stores and we've seen that the unit economics are very uh very very 53:13 53 minutes, 13 seconds positive and encouraging. So as the bottomware business keeps growing is the if this if the pilot also does well and 53:21 53 minutes, 21 seconds on on the merit of the pilot we'll decide the future course of that growth as well. So I think as a company we are trying out different things like you mentioned the Nika example. 53:31 53 minutes, 31 seconds Okay sir. So basically the company is ready to cater to other uh projects also right if there's good opportunity. 53:37 53 minutes, 37 seconds No which we are doing right now through doing this pilot but it's not because we are any less bullish on bottom there. 53:46 53 minutes, 46 seconds We still feel that there's a lot of growth left here in this niche itself. Okay sir. Thank you. 53:54 53 minutes, 54 seconds Thank you. 53:55 53 minutes, 55 seconds Thank you. The next question is from the line of Rsmik Oza from NAR EQ research. Please go ahead. 54:02 54 minutes, 2 seconds Yeah. Uh am I audible? Yeah. Yeah. Please go ahead. Yeah. 54:06 54 minutes, 6 seconds Thanks for the question. Uh sir, a small observation on numbers uh FI 2526 and last two quarters also our gross 54:14 54 minutes, 14 seconds margins has been steady at 63%. But the margin in FI25 which was 32 has come down to 28% in FI26 and especially in the last two quarter it's averaging 25%. 54:27 54 minutes, 27 seconds Similarly if I observe your net margin which was 11% in FI25 goes down to 7% in FI26 and especially 54:36 54 minutes, 36 seconds it has been 4% in last two quarters. I just want to understand based on whatever you have you've spoken in your last you know uh in this call uh 54:45 54 minutes, 45 seconds changing the strategy and you know the store format and so and so uh by when you feel you could go back to that 7 to 54:52 54 minutes, 52 seconds 11% net margin range going forward uh that's my first question 55:00 55 minutes definitely we will see margin recovery from quarter two I'm quite uh in quarter one margins will continue to be little 55:08 55 minutes, 8 seconds weak because we are closing about 50 odd small stores uh small stores in quarter 1 but quarter two onwards we should see 55:16 55 minutes, 16 seconds a good recovery in margins difficult to give a guidance on how much percentage we will end up with but there will be good decent recovery from quarter two 55:26 55 minutes, 26 seconds okay okay because uh in absolute figure also as I'm seeing uh two quarters back uh previous four quarters you had at 55:34 55 minutes, 34 seconds least average net profit of around 20 crores per quarter which is now the run rate has come down to 78 crores in the 55:40 55 minutes, 40 seconds last two quarters. So you know barring Q1 if you expecting Q2 onwards recovery 55:47 55 minutes, 47 seconds uh do you do you envisage it to going back to around that 15 20 crores in the second half of FI27 55:55 55 minutes, 55 seconds difficult difficult to give a such a such a narrow guidance very difficult to give a guidance but from where we are 56:03 56 minutes, 3 seconds today our margins are right now currently quite weak right from what we have delivered from here it's going to significantly improve but from a 56:11 56 minutes, 11 seconds guidance persp perspective will be hard to guide on how much it will become but I can I I can tell you this that it 56:18 56 minutes, 18 seconds will be from quarter two and not from quarter one. 56:22 56 minutes, 22 seconds Okay. Okay. Thanks. Thanks for the answer. I appreciate. 56:25 56 minutes, 25 seconds Thank you ladies and gentlemen that was the last question. I now hand the conference over to the management for closing comments. Thank you and over to you sir. 56:34 56 minutes, 34 seconds I would like to thank everyone for taking part in this call. We I hope we've answered all your questions. We are undertaking this a comprehensive 56:42 56 minutes, 42 seconds transformation in our growth format strategy, our product portfolio, our brand investments and our new business initiative. This transformation will 56:50 56 minutes, 50 seconds take time to fully manifest into our financial numbers but the early signs are encouraging. If you need more information, please feel free connect to 56:58 56 minutes, 58 seconds uh feel free to connect to Mr. Dyen Ruba from SGA, our investor relation advisor. Thank you. Thank you members of the management. 57:06 57 minutes, 6 seconds Ladies and gentlemen, on behalf of Goof Fashion India Limited, that concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you.