Iris Clothings Ltd — Q4 FY26

Iris Clothings Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=vvYcNJJmp1k Published: 1 day ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to Iris Clothing Limited Q4 and FY26 earnings conference call. Please 0:11 11 seconds note that some of the statement made in today's discussion may be forward-looking in nature and may involve risk and uncertainties. 0:19 19 seconds Documents relating to the company's financial performance is available to the stock exchange. Thus, you have been able to go through them. 0:28 28 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need the 0:37 37 seconds assistance during the conference call, please signal an operator by pressing star then zero on the touchstone phone. 0:43 43 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Harwad Sarda, business head. Thank you and over to you sir. 0:53 53 seconds Good morning everyone. Thank you for joining us today for our Q4 and S526 earnings call. I'm pleased to share our 1:02 1 minute, 2 seconds progress and achievements over the past year along with our strategic vision for the future. 1:08 1 minute, 8 seconds IB clothing has delivered robust revenue growth during the year alongside significant improvement in operational profitability. 1:16 1 minute, 16 seconds FI26 has been a transformational year for the company as we continued our evolution from a garment manufacturing 1:24 1 minute, 24 seconds company into a fast growing branded kitchenware player. 1:30 1 minute, 30 seconds Our performance reflects the increasing strength of the Dory brand expanding customer franchise and the resilience of our business model. 1:39 1 minute, 39 seconds A key growth driver during the year was the expansion of our distributor network particularly across the B2B channels 1:46 1 minute, 46 seconds which significantly improved our market reach and sales momentum across regions. 1:52 1 minute, 52 seconds The addition of new distributors coupled with growing brand acceptance helped us deepen penetration in the organized kids 2:00 2 minutes market and contributed strongly to our Q4 performance. 2:05 2 minutes, 5 seconds Over the years, we have built a scalable distribution-led platform supported by product innovation, category 2:12 2 minutes, 12 seconds diversification, and a consumer centric approach. We are also seeing encouraging opportunities to expand wallet share as 2:21 2 minutes, 21 seconds we gradually widen our product offerings. 2:25 2 minutes, 25 seconds Another important milestone during the year was the launch of our dedicated direct to consumer platform. This marks a strategic step in our omni channel 2:34 2 minutes, 34 seconds journey and reflects our vision of building a future ready and digital digitally integrated brand. 2:42 2 minutes, 42 seconds We believe this initiative will strengthen online sales, deepen customer engagement and provide valuable consumer 2:49 2 minutes, 49 seconds insights to support long-term brand building. 2:53 2 minutes, 53 seconds Despite cons continued investments towards expansion and brand building initiatives, we delivered strong profitability growth supported by scale 3:01 3 minutes, 1 second benefits and improving operational efficiencies. 3:05 3 minutes, 5 seconds We remain optimistic about the long-term opportunity and the organized schedule market driven by rising disposable incomes, increasing preference for 3:14 3 minutes, 14 seconds branded apparel and higher spending per child. 3:18 3 minutes, 18 seconds With Dormy positioned in the affordable premium segment, we believe we are well placed to capitalize on these evolving consumer trends. 3:28 3 minutes, 28 seconds Going forward, we remain focused on expanding our distribution network, strengthening brand equity, scaling digital capabilities and driving sustainable profitable growth. 3:40 3 minutes, 40 seconds I will now hand over the call to NRA Jagaral, our chief financial officer who will walk us through the Q4 and FI 2026 3:48 3 minutes, 48 seconds financial numbers. Thank you and over to you N. 3:59 3 minutes, 59 seconds Thank you Raj. Good morning everyone. 4:03 4 minutes, 3 seconds Thank you all for joining us today. I'm pleased to share that we have delivered strong performance in Q4 and FI26. 4:13 4 minutes, 13 seconds Talking about the key financial highlights of Q4 FI26, our total income was 60.4 crores 4:21 4 minutes, 21 seconds compared to 40.2 crores in Q4 FI25. 4:27 4 minutes, 27 seconds Consolidated income during FI26 witnessed a significant growth of 30.5% 4:34 4 minutes, 34 seconds yearonear reaching 190.8 crores against 4:39 4 minutes, 39 seconds 146.2 crores reported in FY25A 4:46 4 minutes, 46 seconds during the quarter grew by 34.1% yearon year and stood at 11 cr as 4:53 4 minutes, 53 seconds against 8.2 2 cr in Q4 FI25 with an AITA margin of 18.2%. 5:02 5 minutes, 2 seconds AITA for FI26 was annualized 29.4 crores as compared to 28.3 crores in FY25. 5:13 5 minutes, 13 seconds A VA margin of 15.4% in FY26. 5:18 5 minutes, 18 seconds Additionally, profit after tax for the quarter witnessed robust growth of 43.5% 5:26 5 minutes, 26 seconds yearonear from 4.48 crores to 5:31 5 minutes, 31 seconds 6.4 kores. During FI26, net profit was 16.1 crores compared to 13.1 crores in FI25. 5:43 5 minutes, 43 seconds Growth of 23.4% yearon-year basis. 5:48 5 minutes, 48 seconds In summary, our focus remains on strengthening operational efficiency and leveraging growth opportunities to create long-term values. 5:59 5 minutes, 59 seconds With this, we can now open the floor for questions. Thanks. 6:05 6 minutes, 5 seconds Thank you very much, sir. We will now begin the question and answer session. 6:11 6 minutes, 11 seconds Anyone who wishes to ask a question may press star N1 on data stone telephone. 6:17 6 minutes, 17 seconds If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 6:26 6 minutes, 26 seconds Ladies and gentlemen, we'll wait for a moment while the question few seconds. 6:37 6 minutes, 37 seconds First question is from the line of Adita Banerjee from Aryan Capital Market. Please go ahead. 6:44 6 minutes, 44 seconds Oh yeah. Hi. 6:46 6 minutes, 46 seconds So my first question is that uh given that EITA margins declined from 19.3% in 6:53 6 minutes, 53 seconds SY to 15.4% in FI26 can the company provide a bridge explaining the primary 7:01 7 minutes, 1 second drivers of this compression specifically the impact of the increase in KOGS versus investments in B2C rollout. 7:11 7 minutes, 11 seconds Right. Hi Torov. Uh thank you for your question. So hi hi Aita thank you for your question. Uh so primarily uh aida 7:20 7 minutes, 20 seconds margins if you see quarter 4 have been uh decently improved. However since we have been robustly expanding uh revenue. 7:29 7 minutes, 29 seconds We have added a few new product categories which are you know value in nature and super competitive in terms of 7:37 7 minutes, 37 seconds pricing to drive that market uh you know the pyramid of the market at the bottom 7:44 7 minutes, 44 seconds so that we can capture uh specific uh stores which were certainly out of our reach until now. So since we have 7:52 7 minutes, 52 seconds entered those comp competitive products for which we will see value in terms of growth this year. Uh hence one of the 8:01 8 minutes, 1 second one of the reasons for epida margin decline has been that. Secondly uh since we launched D2C uh in Q4 there has been 8:10 8 minutes, 10 seconds uh significant spending in terms of branding and creating the entire platform. So that has also been 8:18 8 minutes, 18 seconds impacting uh the margins. Apart from that, we also did a big distributor event uh for uh summer's conference 8:28 8 minutes, 28 seconds which is also impacted the margins for this year. 8:32 8 minutes, 32 seconds Okay. Okay. Great. Great. Uh so my uh the question is that with a planned green field expansion of two lakh square 8:41 8 minutes, 41 seconds ft² and an estimated capital outlay of 50 crores what are the projected asset turnover and incremental revenue 8:48 8 minutes, 48 seconds expectations once this facility reaches optimal utilization. 8:54 8 minutes, 54 seconds So once this uh factory reaches optimal utilization we will see additional 9:02 9 minutes, 2 seconds 300 crores uh coming in from that facility. So overall 9:09 9 minutes, 9 seconds yeah additional 300 crores. So we are targeting somewhere around 500 crores uh 9:16 9 minutes, 16 seconds from this facility over the next uh uh two years once the facility is in place. 9:24 9 minutes, 24 seconds Okay. Okay. Thank you. And uh my third question would be that uh regarding the launch of the dedicated D2C platform, 9:33 9 minutes, 33 seconds what are the target customer acquisition costs and expected customer lifetime value metrics as the company's 9:41 9 minutes, 41 seconds transitions into a future ready omni channel ecosystem. 9:46 9 minutes, 46 seconds Right. Uh so the target customer acquisition cost that we are looking at currently uh is around 250 to 300 rupees 9:54 9 minutes, 54 seconds for a product for an average uh bill value that we are currently getting is around 1,500 to 1,600 rupees that is the target cap that we are looking at. 10:05 10 minutes, 5 seconds Okay. Okay. Uh and the other question would be that uh both return on equity and return on capital employed saw 10:12 10 minutes, 12 seconds significant declines in FI26 from their FI24 peaks. So what operational levers 10:19 10 minutes, 19 seconds are being pulled to return this metrics to the to the 20% plus range? 10:28 10 minutes, 28 seconds So as I said we are experimenting with multiple product categories. So we are recently planning to launch an infant 10:36 10 minutes, 36 seconds gift set collection uh trying to add a few new product categories which will provide us with higher margins and take 10:44 10 minutes, 44 seconds us to the optimal uh 19 to 20% aida margin that we are looking. 10:49 10 minutes, 49 seconds Okay. Okay. Great. And uh my other question is uh that the type to equity 10:57 10 minutes, 57 seconds ratio improved sharply to 0.14 times in FI26. So does the company intend to fund 11:05 11 minutes, 5 seconds the upcoming 50 crore green field projects through internal approvals or is the plan to re leverage the balance sheet? 11:15 11 minutes, 15 seconds uh we are we are still evaluating our best options for that but intern funding it through internal approvals is definitely an option since we do not 11:23 11 minutes, 23 seconds have any long-term debt on our books currently. 11:26 11 minutes, 26 seconds Okay. Okay. And uh the other question is the company currently has uh 216 11:34 11 minutes, 34 seconds distributors across 26 states. Beyond the initial focus on eastern regions for EBOS uh which specific states are being 11:43 11 minutes, 43 seconds prioritized to reach the vision 2030 target of 300 distributors. 11:50 11 minutes, 50 seconds Uh so currently we are targeting the southern part of India. So Telangana, Andhra Pradesh, Karnataka that is a big 11:59 11 minutes, 59 seconds focus for us. U that is where our presence needs to increase. Uh apart from that Uttar Pradesh is one state 12:08 12 minutes, 8 seconds which we are focusing on expanding our reach in that as well. 12:13 12 minutes, 13 seconds Okay. Okay. And um uh so one more question with the introduction of uh of 12:20 12 minutes, 20 seconds the categories like kids winter sportsware and woven and woven suits. How do you foresee the 12:29 12 minutes, 29 seconds product mix evolving by FY27 and which category is expected to have the highest contribution to bottom line growth? 12:38 12 minutes, 38 seconds So our highest contribution we are looking since we launched woven products uh woven will become a big part. So we 12:47 12 minutes, 47 seconds have primarily been a niche company uh for the last decade or so. In the last year we have recently caught into woven 12:55 12 minutes, 55 seconds which is a completely different ball game and there are multiple products that we plan to add in that category in 13:02 13 minutes, 2 seconds the next uh couple years. So we see woven uh pants, woven uh sets, woven 13:10 13 minutes, 10 seconds night suits as a big category overall in the upcoming couple years. Apart from that, infant wear which has been around 13:18 13 minutes, 18 seconds 12 13% of of our mix, we plan to increase that to around 20%, which will 13:24 13 minutes, 24 seconds be a big driver uh for margins overall in the business. 13:30 13 minutes, 30 seconds Okay. Okay. Great. And my other question is uh so currently uh the company has been exporting to uh uh around uh a few 13:40 13 minutes, 40 seconds countries with a target of the 12 by the Hello. Hello. 13:51 13 minutes, 51 seconds Yes, I think I lost you. 13:53 13 minutes, 53 seconds Yeah. Yeah. Uh is a target of 12 by uh 2030. Is the international strategy 14:00 14 minutes focused on organic brand growth of uh OMI or the leveraging the pharma 14:08 14 minutes, 8 seconds approval for Disney products to enter more uh regulated western markets. So currently the focus is primarily on 14:16 14 minutes, 16 seconds growing through the Doramine brand by taking that to more international markets finding bigger retailers in 14:24 14 minutes, 24 seconds specific regions and selling our brand to them. that is the primary focus for experts in our strategy. 14:33 14 minutes, 33 seconds Okay. Okay. Great. Great. And uh the last question from my side would be in the 14:41 14 minutes, 41 seconds height of the 30.5% growth in total income for FI26. How has the company 14:48 14 minutes, 48 seconds managed its working capital cycle? And are there any plans to further optimize warehousing and dispatch units to improve speed to market? 14:59 14 minutes, 59 seconds So our working capital cycle since the growth of this has uh been has become 15:06 15 minutes, 6 seconds much better uh from last year because of that improvement in revenue and uh to 15:13 15 minutes, 13 seconds improve the working capital cycle uh we are planning to you know optimize our manufacturing cycles and uh reduce that 15:22 15 minutes, 22 seconds uh by sign significant margins to improve the overall working capital cycles. Okay. Okay. Okay, thank you so much. 15:30 15 minutes, 30 seconds Thanks. Thank you. 15:34 15 minutes, 34 seconds Next question is from the line of Nisha from Stellar AMC. Please proceed. 15:40 15 minutes, 40 seconds Hi sir, good afternoon. Thanks for the opportunity. So my first question is with regard to digital platforms. You 15:47 15 minutes, 47 seconds said that the customer acquisition cost would be around 250 to 300 rupees. So what strategy are you uh have you kept 15:54 15 minutes, 54 seconds in place since the customers won't be having the benefit of touch and feel and also today's skills are very choosy with respect to the designs they want to 16:02 16 minutes, 2 seconds wear. So what are your target customers and what is the strategy in place? 16:09 16 minutes, 9 seconds So digitally our strategy is very clear to offer a market directly. 16:15 16 minutes, 15 seconds Sorry to interrupt sir your voice is breaking. Uh this still breaking sir. 16:23 16 minutes, 23 seconds So just second. 16:29 16 minutes, 29 seconds No sir. There is static noise started from your line. 16:45 16 minutes, 45 seconds No sir. Should we reconnect? 16:49 16 minutes, 49 seconds Okay, ladies and gentlemen, please stay connected while we reconnect the management. Thank you. 17:15 17 minutes, 15 seconds Christmas morning. 17:41 17 minutes, 41 seconds Down. 18:08 18 minutes, 8 seconds La. 18:10 18 minutes, 10 seconds Another word. 18:40 18 minutes, 40 seconds I'm happy. 19:05 19 minutes, 5 seconds I know 19:13 19 minutes, 13 seconds there are 19:38 19 minutes, 38 seconds Ladies and gentlemen, thank you for patiently holding. We have the line for the management reconnected. Over to you, sir. 19:46 19 minutes, 46 seconds Hi. Uh apologies for the uh I don't know what whatever happens with the uh 19:52 19 minutes, 52 seconds network. So uh Neil I think uh uh let's start off with your question. Uh are you still online? 20:00 20 minutes Yeah. Yeah. Yes. 20:01 20 minutes, 1 second Yes. So Neil talking about the digital platform that we have launched. The idea and the strategy overall as a company is 20:10 20 minutes, 10 seconds to leverage our wide experience of being a branded kidsear company for the last 20:16 20 minutes, 16 seconds 20 years and using that brand experience by going into a different distribution 20:23 20 minutes, 23 seconds network which is the online network. So digitally we want to uh be present in multiple product categories serving the 20:32 20 minutes, 32 seconds same audience and offer a variety of products to our consumers in a much more 20:40 20 minutes, 40 seconds uh you know uh uh hygienic environment for them to make that purchase. So that 20:48 20 minutes, 48 seconds is the overall digital uh platform idea that we currently have. 20:53 20 minutes, 53 seconds Just on this uh we were already present in other online market places like Amazon first right so was this on 21:00 21 minutes digital own digital platform really a need which you spend absolutely so so we are not on Amazon 21:09 21 minutes, 9 seconds currently first cry uh we are doing significantly well on first cry which is what makes us uh very very confident 21:16 21 minutes, 16 seconds that we as a platform can offer better variety uh can offer better uh experience to our customers customer who 21:24 21 minutes, 24 seconds really wants our products and are searching for them on first crack they can directly come to us as well and 21:30 21 minutes, 30 seconds expand that overall uh product cate overall uh vision of the brand in the minds of the customer. 21:38 21 minutes, 38 seconds So the process SKUs would be different in first try and uh our own platform. Absolutely. Absolutely. 21:47 21 minutes, 47 seconds Okay. And are we creating visibility on the website? What is the uh footfall and the how are we creating that visibility? 21:58 21 minutes, 58 seconds Yeah, since we have just started uh it's been a couple months. Uh currently we are we have received a decent response 22:05 22 minutes, 5 seconds and we are doing around 300 pieces per day in terms of uh orders and we plan to 22:12 22 minutes, 12 seconds ramp that up uh very very fast over the next 6 months. 22:17 22 minutes, 17 seconds Okay. So and going forward our focus would be to uh create more focus on our own platform or 22:24 22 minutes, 24 seconds we will like to explore other marketplaces like Amazon or also quick commerce. 22:30 22 minutes, 30 seconds So Quickcommerce is something that we are still exploring uh with multiple partners but our primary focus will be 22:38 22 minutes, 38 seconds to build our own digital platform and of course also improve our presence on specific platforms like cry. 22:49 22 minutes, 49 seconds Okay. And uh where will we fund uh the uh where will we get the funding for the marketing internal or we'll be raising some debt. 23:01 23 minutes, 1 second Uh so that is something that we are still working around with. Uh primarily currently we are using through our internal approvals that the company is 23:09 23 minutes, 9 seconds generating. Uh funding is something around that we are exploring as we ramp up our expansion. 23:18 23 minutes, 18 seconds Okay. What contribution are we expecting from the digital platforms next 2 three years? 23:25 23 minutes, 25 seconds Uh this year specifically we are expecting somewhere around 10% overall from our digital platforms and next year 23:34 23 minutes, 34 seconds we are targeting around 20 to 25% of the overall revenue coming from the 23:41 23 minutes, 41 seconds so uh I can see we uh don't have much cash in our balance sheet. So internal approvals uh I don't think will work out 23:50 23 minutes, 50 seconds in near term as I said we are as we plan on expansion we are very very aggressively uh 23:58 23 minutes, 58 seconds discussing on how to fund this either raise that or raise fund okay sir uh are the margin profiles 24:07 24 minutes, 7 seconds better in our uh if we uh sell through D2C model uh rather than going to distributors or other marketplaces 24:16 24 minutes, 16 seconds So uh initially uh since we are in digital initially uh you we have to spend on uh advertising and getting 24:25 24 minutes, 25 seconds those customers. Once the customer lifetime value starts kicking in the margins start improving. So initially we'll have to take a hit on margin but that is our investment for the future. 24:36 24 minutes, 36 seconds As we go ahead margins will start improving massively. 24:40 24 minutes, 40 seconds So how much gross margins are we expecting when the C uh everything is settled out? 24:46 24 minutes, 46 seconds Uh when everything is settled out we are expecting around 65% gross margins coming in and margins margins we target around 20 to 22%. 24:58 24 minutes, 58 seconds And roughly which year are we uh do we expect this to uh kick in? 25:05 25 minutes, 5 seconds uh we expect uh the next two years at the end of the second year we are expecting this to kick in. 25:12 25 minutes, 12 seconds Okay. So% of the overall revenue uh we expect this to start kicking in. 25:19 25 minutes, 19 seconds Okay. Till then can we expect margins profile to be around 15 16%. 25:26 25 minutes, 26 seconds Uh we expect margin profile to slightly improve to somewhere around 18% that is our target. 25:33 25 minutes, 33 seconds Okay. So that any development of the EB of front uh EB of front we are uh exploring uh as 25:42 25 minutes, 42 seconds I said uh in the previous question uh we are exploring regions like Talangana, Karnataka uh Maharashtra to expand EOS. Uh so 25:52 25 minutes, 52 seconds hopefully we'll see some development happening uh in this uh quarter. 25:57 25 minutes, 57 seconds Okay. And for this also we will be uh take raising debts. Correct. 26:03 26 minutes, 3 seconds for the EOS we are we are still not not not going to raise that for EBOS we as I said funding 26:10 26 minutes, 10 seconds is something that we are still working on and we'll be uh more clear in the next quarter where the entire development is going forward 26:20 26 minutes, 20 seconds so any plans for raising uh further equity uh as I said we are still exploring uh 26:27 26 minutes, 27 seconds the opportunities that we have currently Okay. Uh sir uh going forward what will 26:34 26 minutes, 34 seconds be a focus to uh develop a digital platform at a much higher focus or going towards EBO? 26:43 26 minutes, 43 seconds I think digital will be more focused but EOS will be part of our omni channel strategy to create that brand experience for the customers. 26:54 26 minutes, 54 seconds Okay. 26:57 26 minutes, 57 seconds And sir, um we also had uh 4,000 additional capacity 4,000 pes. When will uh it be operational? 27:06 27 minutes, 6 seconds Uh so the factory is already operational. Uh we will uh get to full capacity in the next couple months. 27:16 27 minutes, 16 seconds Okay. Thank you. I'll join. Thank you. 27:22 27 minutes, 22 seconds Thank you. Before we move to the next question, a reminder to the participants to ask a question, you may press star and one. 27:31 27 minutes, 31 seconds Next question is from the line of Madur Gandhi from SIES School of Business Studies. Please go ahead. 27:38 27 minutes, 38 seconds Uh yeah. Uh good morning sir. Uh I just wanted to ask uh like three questions. 27:45 27 minutes, 45 seconds So first one is like uh based like you said that company is exporting. So how did the raw material price fluctuation 27:53 27 minutes, 53 seconds impact profitability? Maybe there as there is a rise in price of GR. 27:59 27 minutes, 59 seconds Uh so does that for profitability? 28:04 28 minutes, 4 seconds So if if the raw material continues it will 28:12 28 minutes, 12 seconds our margins but uh currently we are uh since we are decently covered we are currently looking at what the how this 28:22 28 minutes, 22 seconds entire raw material pricing situation shapes up over the next month or so. 28:28 28 minutes, 28 seconds I think my yeah my next question is uh so now as you said that you are going to do uh 28:37 28 minutes, 37 seconds like a B2C platform so uh company approaches failings uh so while mentioning the margin how will you 28:46 28 minutes, 46 seconds approach the failings that you are you you have planned mother I think I don't know so I missed 28:55 28 minutes, 55 seconds your question I'm sorry oh I'm Sorry sir. Uh so uh company is going B2C. So how does company approach 29:05 29 minutes, 5 seconds uh this level of while maintaining the margin? 29:10 29 minutes, 10 seconds Uh as I said Mr. Mad we please request you to self mute your line if uh there's background noise from your end. 29:21 29 minutes, 21 seconds Please go ahead sir. 29:23 29 minutes, 23 seconds Yes. Uh so Madur I uh just to answer your question since we are uh right from 29:30 29 minutes, 30 seconds manufacturing to distribution uh since we are this vertically integrated and we have had a vast experience in the space 29:38 29 minutes, 38 seconds that we are currently operating in. Uh so scalability will not be a challenge. 29:44 29 minutes, 44 seconds Uh it's just a change of platform. So initially of course we'll have to take a hit on margins at the digital front. But 29:53 29 minutes, 53 seconds having said that uh in the next couple years as it starts to scale up uh we will definitely achieve the profitability that we had targeted. 30:02 30 minutes, 2 seconds Uh yeah uh thank you. Thank you. 30:08 30 minutes, 8 seconds Thank you participants to ask a question you may press star and one. 30:18 30 minutes, 18 seconds Ladies and gentlemen, anyone who wishes to ask question may press star and one on your touchstone telephone. 30:30 30 minutes, 30 seconds Participants, if you wish to join the question queue, you may press star and one. 30:37 30 minutes, 37 seconds Next question is from the line of Majid Ahmed, an individual investor. Please go ahead. 30:43 30 minutes, 43 seconds I'm audible sir. Thank you for Yes, you are audible. 30:47 30 minutes, 47 seconds So my first question that I have is that for the EVOS uh how much are we looking to expand for uh the coming year sir? 30:56 30 minutes, 56 seconds Uh EBOs we are planning to add around 8 to 10 stores in this coming year. 31:03 31 minutes, 3 seconds Okay. As of how how many stores do we have sir? As of currently less than per 31:12 31 minutes, 12 seconds and what is the capeex per e sir? What is the cex and what could be the payback period? Uh so the capeex per is around 2 31:20 31 minutes, 20 seconds and a half,000 to 3,000 rupees per square ft² which is for a,000 ft² store that comes to around 30 lakh rupees uh 31:28 31 minutes, 28 seconds for the capeex only plus there's inventory and overall payback we see somewhere in the 18 to 20 months. 31:42 31 minutes, 42 seconds What how do you see the competitive intensity intensity in the market space currently because uh let's say new 31:48 31 minutes, 48 seconds players emerging both in the private equity funded players and other international players getting into this market. How do you see the right to win for us to scale? 32:00 32 minutes So the right to win for us is definitely uh the experience uh that we have built 32:06 32 minutes, 6 seconds over the last uh decade as a manufacturing company and a productled company. Having 32:14 32 minutes, 14 seconds said that in the kids space apart from one very big player there is not a lot of competition primarily the market is 32:22 32 minutes, 22 seconds still very unorganized and there's still a der of organized floods. So the our right to win is to become a big 32:30 32 minutes, 30 seconds organized kids branded player in the market uh in the affordable premium segment that we operate in because if 32:39 32 minutes, 39 seconds you look around there's not a lot of competition in the organized kids space. 32:46 32 minutes, 46 seconds So how much do we uh exactly spend in marketing and making our brand uh like how what are the channels are we trying to market like is it pure for digital 32:55 32 minutes, 55 seconds marketing or how we are exploring primarily is digital marketing which is 33:03 33 minutes, 3 seconds running ads through social media channels like YouTube uh Instagram Facebook apart from that we have a lot 33:10 33 minutes, 10 seconds of local marketing that we do at the distributor uh retailers the retailer that we are currently selling to. So we 33:19 33 minutes, 19 seconds have a lot of marketing hap that happens at that point of sale as well. So those are the two primary marketing channels that we are currently using. 33:29 33 minutes, 29 seconds Got it. Sir in terms of the export how do you see this uh and others how do you 33:35 33 minutes, 35 seconds see that uh export? I think India it is a good opportunity for uh India and players 33:43 33 minutes, 43 seconds like us to explore uh the various FTAs that have been signed uh by the 33:51 33 minutes, 51 seconds government of India and uh we are keeping a close eye on opportunities that uh arise out of this uh agreement. 34:03 34 minutes, 3 seconds So I just wanted to know just the revenue from the EPOS and the segment margins currently how much should we expect? 34:13 34 minutes, 13 seconds So currently EOS is contributing somewhere in the one and a 1% one 1% 34:19 34 minutes, 19 seconds range to the overall uh revenue of the overall company. So it's still very significantly uh smaller. We are 34:28 34 minutes, 28 seconds planning to expand that uh from digital focus mostly and having eers as in more 34:36 34 minutes, 36 seconds of an experience center uh for the overall brand. 34:41 34 minutes, 41 seconds So the revenue is around 2 cr uh yeah somewhere around 34:48 34 minutes, 48 seconds going for how much are you expecting sir? 34:55 34 minutes, 55 seconds Hello from audible sir going forward how much do we expect this 1% so 35:03 35 minutes, 3 seconds we expect overall to grow up to 3 and a half 4% in just three years 35:13 35 minutes, 13 seconds finally how much growth are we expecting uh next year any guidance we are we are 35:20 35 minutes, 20 seconds very aggressive uh in terms of our growth we expect 30 to 35% growth this year in terms of that. 35:32 35 minutes, 32 seconds Uh thank you sir. All the very best. Thank you. Thank you. 35:39 35 minutes, 39 seconds Next follow-up question is from the line of Nisha from Staler AMC. Please go ahead. 35:46 35 minutes, 46 seconds Hi sir. Thanks for the opportunity again. 35:49 35 minutes, 49 seconds mentioned earlier in the year we said that we'll be adding five to six new videos by March 26 next month and in Q3 35:57 35 minutes, 57 seconds we said that the execution will be delayed by a quarter or so and uh relate we are still in the exploring stage for 36:05 36 minutes, 5 seconds identifying the new areas also we are unsure of how the funds will be funded than the marketing spend of a digital 36:13 36 minutes, 13 seconds platform so we understand it is a not an easy decision to make but um but when Can we expect something concrete in this in our state? 36:23 36 minutes, 23 seconds I think we'll uh see something concrete since we are still figuring a lot of things uh in the overall direction of 36:29 36 minutes, 29 seconds the company. Uh I think in the next 6 months we'll have a concrete uh uh proposal on how this is shaping up since 36:38 36 minutes, 38 seconds we have launched digital and we are seeing a lot of traction coming to digital. uh next six months we'll get an 36:45 36 minutes, 45 seconds idea on how this has expanded uh overall as a company. 36:51 36 minutes, 51 seconds Okay. Sir uh don't we think that we are getting distracted by launching too many things uh launching a digital platforms 36:57 36 minutes, 57 seconds and also uh going focusing on the eos side by side won't be it making it 37:04 37 minutes, 4 seconds difficult for us not really not really I think eos and online uh goes hand in hand it is an omni channel strategy that 37:12 37 minutes, 12 seconds has to be implemented for any brand which wants to come in and uh capture this space uh we see a big big gap in 37:21 37 minutes, 21 seconds this entire uh market where there is no player which is doing uh there's one very large player which is trying to do 37:29 37 minutes, 29 seconds what we are replicating which is first apart from that there is no big player which has come in and tried to capture 37:36 37 minutes, 36 seconds this market. So we are very very positive that the direction that we are going as a company is uh a very high 37:44 37 minutes, 44 seconds growth and a big big opportunity for someone like us who has that experience over the last 15 years uh in building 37:53 37 minutes, 53 seconds something similar and capturing that space and becoming one of the pioneers in the kids where parents space. 38:02 38 minutes, 2 seconds Thank you and all the best for future. Thank you. 38:07 38 minutes, 7 seconds Thank you ladies and gentlemen. As there are no further questions from the participants, I now hand the conference over to the management for the closing comments. 38:20 38 minutes, 20 seconds Thank you once again for your heart and for being a part of our journey. video. 38:28 38 minutes, 28 seconds In case you have any queries post this call or anything remain, you can please connect to our team. 38:35 38 minutes, 35 seconds Thank you so much. 38:39 38 minutes, 39 seconds Thank on behalf of Iris Clothing Limited. That concludes this conference. Thank you all for joining us and you may now disconnect your lines.