Kewal Kiran Clothing Limited — Q4 FY26

Kewal Kiran Clothing Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=lPjMp0Wn09I Published: 2 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Cable Kiran Clothing Limited Q4 FY26 earnings conference 0:09 9 seconds call. 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. 0:19 19 seconds Before we begin, a brief disclaimer. The presentation which cable current clothing limited has uploaded on the stock exchange and their website 0:27 27 seconds including the discussions during this call contains or may contain certain forward-looking statements concerning cable kin clothing limited business 0:35 35 seconds prospects and profitability which are subject to several risks and uncertaintities and the actual result could materially differ from those in 0:43 43 seconds such forward-looking statements. Should you need assistance during the conference call, please signal an operator by pressing star and then zero 0:51 51 seconds on your touchstone phone. I now hand the conference over to Mr. Hmon's Jane, joint MD cable Kiran clothing. Thank you and over to you sir. 1:03 1 minute, 3 seconds Good afternoon everyone and thank you for taking the time to join us today. 1:09 1 minute, 9 seconds Welcome to Cable Clothing Limited Q4 and FI26 earning call. I am joining by Mr. 1:16 1 minute, 16 seconds Panker Jen, President Rital and Marathon Capital, our investor relation advisor. 1:23 1 minute, 23 seconds We are pleased to report a strong close to FI26 with Q4 marking yet another 1:30 1 minute, 30 seconds quarter of doubledigit sales growth and taking fullear growth of 20.9%. 1:37 1 minute, 37 seconds This performance is well ahead of the average growth rate and message in vision 2028 and validates 1:46 1 minute, 46 seconds our brand wise different differentiated strategy. 1:51 1 minute, 51 seconds Let me talk uh let me walk you through some of the key highlights for the quarters and financials. 1:59 1 minute, 59 seconds Consolidated consolidated revenue for Q4 FI26 stood at 325 crores up by 12.4% 2:08 2 minutes, 8 seconds yearonear and for FI26 stood at 1212 crores lead by strong growth in the both volumes and value. 2:20 2 minutes, 20 seconds April volume growth on a consolidated basis saw an encouraging growth of 16% 2:26 2 minutes, 26 seconds year on year on year driven by strong design capabilities and sustained consumer demand for our product. 2:36 2 minutes, 36 seconds Coming to our operational performance. 2:39 2 minutes, 39 seconds Our perform performance reflect the scalability, resilience and execution strength of our operating model driven 2:48 2 minutes, 48 seconds by recipient execution of focus growth strategy across brand and channel. 2:54 2 minutes, 54 seconds Strong consumer attractions lead by our fashion forward designled product portfolio. 3:02 3 minutes, 2 seconds agility in navigating a competitive landscape while sustaining market shares and profitability. 3:10 3 minutes, 10 seconds Some notable operational highlight across our brand. First killer continue continued its sustained growth journey 3:20 3 minutes, 20 seconds with doubledigit sales growth in FI26 and now operated 457 EBUS. The SSG for 3:28 3 minutes, 28 seconds Q4 26 is 6.8%. 8% and for the year FY26 is 9.4%. 3:36 3 minutes, 36 seconds Cross delivered robust sales performance and growth in AITA margins at par overall KKL margin profile on track to 3:46 3 minutes, 46 seconds evolve a significant player in woman's casual market started getting good traction in MBO's 3:54 3 minutes, 54 seconds export market and expanded EBO's network to 28 focus now towards further improvement in 4:01 4 minutes, 1 second working capital cycle junior killer posted high sales growth in FY26 4:09 4 minutes, 9 seconds validating our focus entry into kids wear backed by discipline execution the brand is gaining strong traction 4:18 4 minutes, 18 seconds law men with this strategic uh repositioning toward D2C model the brand had started showing positive traction 4:27 4 minutes, 27 seconds and consumer acceptance resulting in double sales growth in FI26 and now 4:34 4 minutes, 34 seconds operated 19 90 EBOS integrity recorded notable growth in 4:42 4 minutes, 42 seconds both Q4 and FI26 year on year driven by renewed focus and targeted brand building efforts. 4:52 4 minutes, 52 seconds On the profit profitability front AIA came in at 238 crores for FI26 and 62 crores for Q4 FI26. 5:04 5 minutes, 4 seconds reflecting a stat steering 25% and 18% growth yearon year respectively. 5:12 5 minutes, 12 seconds Abita margin expanded upward of 19% for both the quarter and financial years driven by efficient operational 5:20 5 minutes, 20 seconds performance surpassing our guided range of 17 to 18%. Our execution operational 5:29 5 minutes, 29 seconds discipline enable us to grow at scale while protecting profitability resulting in a strong AITA margin of 19.6% for FY26. 5:42 5 minutes, 42 seconds On the channel of sales front, our EVO, large format stores, MBO and online channel reported healthy doubledigit 5:49 5 minutes, 49 seconds growth in FI26, validating the effectiveness of our goto market strategy. 5:57 5 minutes, 57 seconds Revenue growth 16% yearonear in retail and 8% yearonear in non- retail. Q4 Q4 FI26 6:06 6 minutes, 6 seconds for FI26 retail grew 24% and non-retail grew 17% yearonear 6:12 6 minutes, 12 seconds underscoring consistent broadbased momentum across format 6:19 6 minutes, 19 seconds in line with our strategy to expand our brand footprint we added net 57 EOS in FI26 6:28 6 minutes, 28 seconds taking our total to 666 store as on March 31st 2026. 6:36 6 minutes, 36 seconds Coming to our outlook and strategy, the robust performance in FI26 particularly the contribution from cross 6:45 6 minutes, 45 seconds casual give us the confidence to raise our growth and ambitions backed by an inorganic acquisition strategy. 6:55 6 minutes, 55 seconds We continue to achieve the vision 2028. 6:58 6 minutes, 58 seconds However, we aim to further accelerate the growth target from 15% CAGGR to 20% 7:06 7 minutes, 6 seconds CAGGR in the next three years and it's expected to be meaningfully supported by a well definfined acquisitions framework. 7:17 7 minutes, 17 seconds While acquisitions may not materialize uniformally each year, our three-year strategic road map is designed to 7:25 7 minutes, 25 seconds deliver this accelerator growth trajectory backed by our core principle of stability, sustainability and 7:33 7 minutes, 33 seconds scalability. We remain remain confident in our ability to achieve this ambition. 7:41 7 minutes, 41 seconds With that, I would now like to open the floor for questions. 7:46 7 minutes, 46 seconds Thank you very much. We will now begin with the question and answer session. 7:52 7 minutes, 52 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. 7:58 7 minutes, 58 seconds If you wish to remove yourself from the question queue, you may press star and two. 8:04 8 minutes, 4 seconds Participants are requested to use handsets while asking a question. 8:10 8 minutes, 10 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles again. To register for a question, please press star and then one. 8:29 8 minutes, 29 seconds Your first question comes from Shubam Jane from Counter. Please go ahead. 8:39 8 minutes, 39 seconds Hello. Yes. Good afternoon. 8:43 8 minutes, 43 seconds Good afternoon. Uh thanks for the opportunity. I just have two quick questions. Uh so firstly on the monetization side uh of our land in Guro uh any update on that? 8:55 8 minutes, 55 seconds We are still under negotiations for that. 8:58 8 minutes, 58 seconds Okay. And what is your expectation when can we complete that uh part? 9:04 9 minutes, 4 seconds But as of as of now the decision is still standill can update this decision on a quarter to quarter basis on every confer. 9:15 9 minutes, 15 seconds Okay sir. Uh secondly sir uh on the acquisition that we had done in cross uh 50% stake are we planning to increase 9:23 9 minutes, 23 seconds that stake uh going forward for there is nothing changed for first 9:30 9 minutes, 30 seconds five years periods after there there there can be some and any any other acquisitions that you 9:37 9 minutes, 37 seconds have been planning in other segments as form of inorganic growth we are open for opport opportunities and we're also looking for some. 9:49 9 minutes, 49 seconds Okay sir. Uh just lastly you have raised your guidance from 10 15% to 20 plus. 9:56 9 minutes, 56 seconds Where are you particularly expecting that growth to be coming from? So uh what I'm trying to say is that okay our 10:03 10 minutes, 3 seconds organically our growth we still say that it should be around 15 to 18%. The additional vacuum of close to around 5% 10:10 10 minutes, 10 seconds shall be covered by an inorganic acquisition. 10:14 10 minutes, 14 seconds Okay sir. Uh thank you. I'll get back into the Thank you. Before we take the next 10:23 10 minutes, 23 seconds question, a reminder to everyone. You may press star and then one to ask a question. 10:29 10 minutes, 29 seconds The next question comes from the line of Rushab Sha from Bugle Rock PMS. Please go ahead. 10:37 10 minutes, 37 seconds Thanks for opportunity. Uh sir a few calls back you have said that uh you see significant export potential for our 10:45 10 minutes, 45 seconds flagship brands like uh filler cross especially in markets with a with 10:51 10 minutes, 51 seconds a strong use. So just wanted to have uh uh just wanted to know what wanted to 11:00 11 minutes have to look up for those markets which are those markets what is the export potential and any internal targets you 11:07 11 minutes, 7 seconds have to you have to reach in exports for next five years the exports for KKCL the exports doesn't 11:17 11 minutes, 17 seconds actually contribute significantly however most of the countries which they export report to including cross is 11:25 11 minutes, 25 seconds middle east and saudi okay you have known the case scenario that over the last 3 months okay it has been disturbed and that's the reason okay exports has 11:33 11 minutes, 33 seconds been little bit disturbed that gi going to the the article which we said right now that all the channels have been 11:41 11 minutes, 41 seconds growing and we we we think that okay the exports is going to remain constant or may degr for the next year 11:51 11 minutes, 51 seconds Okay. Uh so my second question is uh KKCL also launched the acme segment. So 11:58 11 minutes, 58 seconds how has that segment grown for us and what about it's a part of the entire brand? Okay. 12:06 12 minutes, 6 seconds Some categories move upward, some categories move. We are not treating it as a separate format. 12:13 12 minutes, 13 seconds Yeah. So sir, what do you think about this segment? Can this uh segment going ahead in the next let's say four to five 12:19 12 minutes, 19 seconds years can be as big as the genes segment we have too early to speak about it I'm as I 12:29 12 minutes, 29 seconds said that we treating it as a category only or as one of the category sales for us okay we not 12:35 12 minutes, 35 seconds treating it as a separate or a subbrand okay my uh next question is I wanted to 12:43 12 minutes, 43 seconds know from the from your uh vision perspective perspective and this little bit loud please. 12:49 12 minutes, 49 seconds Yeah. I wanted to know more more from your vision perspective and this question is not for just let's say two to three years but a long-term thought 12:57 12 minutes, 57 seconds process. The question is uh that newer brands or categories like killer junior cross and also the older ones like law 13:07 13 minutes, 7 seconds man integrity do you think that these can become as big as the killer brand and like any steps we have taken we can 13:16 13 minutes, 16 seconds see them as a huge brand like killer jeans over the coming years. 13:21 13 minutes, 21 seconds Every brand was launched with a separate mindset, separate price bracket and a separate PG. Okay. So definitely we had some problems for some of the brands. 13:30 13 minutes, 30 seconds Okay. We have restrategized our strategy and we have started seeing attraction towards it and I definitely feel that all the such brands have that potential 13:39 13 minutes, 39 seconds to go where killer is as of today. Okay fine. Thank you. I'll get back in. 13:49 13 minutes, 49 seconds Thank you. Your next question comes from the line of Arpan Rat from Insight Advisory. Please go ahead. 13:58 13 minutes, 58 seconds Good afternoon. Uh congratulation on a great set of numbers. Uh thank you and 14:05 14 minutes, 5 seconds more encouraging is the revision and guidance offered uh even considering the current market volatility. So my first 14:14 14 minutes, 14 seconds question is emanating from that only. Um what is the impact of war on us? uh obviously we are not too much in exports 14:22 14 minutes, 22 seconds but the raw material prices have increased substantially across uh commodities. So what is the impact uh 14:32 14 minutes, 32 seconds are we able to pass on in terms of revision in price or uh are we looking 14:37 14 minutes, 37 seconds at revision in candle prices 14:56 14 minutes, 56 seconds we don't want to lose the revenue So which percent some percent will take hit 15:03 15 minutes, 3 seconds in the profit or some percentage we will pass on to the consumers we don't know as such 15:13 15 minutes, 13 seconds nobody knows so but Yes, in future 15:31 15 minutes, 31 seconds we don't want to los the revenue. Major focus is revenue is ready to take that kind of heat. 15:42 15 minutes, 42 seconds That's good to hear. Uh sir any color on the working cap? 15:59 15 minutes, 59 seconds to buying a cash and everything cash volumes. 16:11 16 minutes, 11 seconds So that's nobody knows 16:26 16 minutes, 26 seconds Yes sir please. Hello. 16:31 16 minutes, 31 seconds Yes sir. The line for the current participant has uh dropped from the queue. We'll move on to the next question. The next question comes from 16:38 16 minutes, 38 seconds the line of Lakshmi Narayan and KG from Tonga Investments. Please go ahead. 16:43 16 minutes, 43 seconds Yeah. Uh thank you. Uh I uh you know thank good especially on the working capital funds. uh we have done uh pretty 16:51 16 minutes, 51 seconds well and uh I think we have sustained the operating margins also uh or we can enhance it couple of basis points. So a 17:00 17 minutes few questions u uh from a uh from a scale of cross brand uh how much that actually contributed to the growth for 17:09 17 minutes, 9 seconds the full year? I think this full year is the first financial year with uh with cross uh both in the baseline as well as 17:16 17 minutes, 16 seconds uh uh towards the end of FI. That is my first question. 17:29 17 minutes, 29 seconds Growth for cross in upwards of more than 20%. 17:34 17 minutes, 34 seconds How much crop contributes now is it compared to last year to this year? 17:40 17 minutes, 40 seconds On a we generally give the numbers on a console basis scenario. We don't give brand numbers. 17:46 17 minutes, 46 seconds Got it. And and in terms of uh you know because of there have been some uh due to GST there has been some uh pricing uh 17:54 17 minutes, 54 seconds uh revisions and uh is there any any stock level loss we had to take or uh is that entire uh uh the preGST stock has 18:04 18 minutes, 4 seconds been uh uh you know is out of the system tell me how that actually got handled after the after the GST changes which was happened on 22nd of September. Okay. 18:15 18 minutes, 15 seconds For for the first the third quarter the company had to pass on the entire GST benefit to the consumer. Okay. Going 18:23 18 minutes, 23 seconds forward or maybe for FI26 we feel that okay the the impact of GST is neutral for the company. Some brands for some 18:31 18 minutes, 31 seconds brands it's more and from some brands it's less. Sorry. And and any price increases you have taken uh um in the last uh few months. 18:45 18 minutes, 45 seconds Same prices that of course. 18:56 18 minutes, 56 seconds So we have a room we have that room. 19:03 19 minutes, 3 seconds Yeah. and and the uh e-commerce channel is it growing ahead of your uh growth or is it in line with your uh company's growth? 19:12 19 minutes, 12 seconds It's it's in line with the company. 19:16 19 minutes, 16 seconds Okay. And in terms of full price uh full price sales uh can I just give a sense of how much it was for the uh the men's 19:24 19 minutes, 24 seconds wear and the women's wear because usually around 60 65% full price is close to around 60%. 19:33 19 minutes, 33 seconds Okay. Okay. Okay. And uh when you started the year and ended the year uh what are the areas which actually did better than what you anticipated for 19:41 19 minutes, 41 seconds FI26 and what are the areas which did not do well as per your expectations for FI26 19:52 19 minutes, 52 seconds major focus is on the west east we are already very much 19:59 19 minutes, 59 seconds so now we are focusing on the west and we are having a very good result. Yes. 20:08 20 minutes, 8 seconds But yes, west and south we are majorly focused on this year also see 20:23 20 minutes, 23 seconds we have to target yes we are focusing on territory 20:42 20 minutes, 42 seconds and and uh in the other segment uh which includes inner wear and uh perfume glasses and so many other things right 20:50 20 minutes, 50 seconds so uh that has actually also grown uh ahead of uh uh our overall uh growth I believe right or uh can you just explain 20:58 20 minutes, 58 seconds as to within that which segment is growing in the other uh Sir, 21:08 21 minutes, 8 seconds our major focus is on the April business. All the accessories business is impulse buying. 21:15 21 minutes, 15 seconds Focus. Our major focus is on the April side like jeans, shirt, trouser, t-shirt, winter wear, jacket, 21:23 21 minutes, 23 seconds sweatshirt, sweaters. So our major focus is that we are not major focusing on the inner wear or some socks or some the 21:30 21 minutes, 30 seconds accessories business. Yes, we do that but it's a because the brand is all about the lifestyle we have to keep all these things but our major focus is on the approach. 21:41 21 minutes, 41 seconds Okay. Okay. Thank you sir and I come back in. 21:48 21 minutes, 48 seconds Thank you. The next question comes from Anoj Takur from Motil. Please go ahead. 21:54 21 minutes, 54 seconds Oh hello uh good afternoon and congratulations on a great set of numbers both on the operational front and as well as on the revenue growth. So 22:03 22 minutes, 3 seconds I have just had a couple of questions on my side. So uh regarding our development and progression of gross uh on the 22:11 22 minutes, 11 seconds margin front how we were back like about one year back and how we are doing now. 22:17 22 minutes, 17 seconds What has been our focus in creating the additional evida margin that we can get from 22:24 22 minutes, 24 seconds 90% 22:40 22 minutes, 40 seconds because of that for the temporary basis. 22:52 22 minutes, 52 seconds So it's all mix. 23:02 23 minutes, 2 seconds Yes. Yes. Great set number sir. As I said also uh on a store guidance level 23:08 23 minutes, 8 seconds uh what are we targeting for next couple of quarter and full year? 23:14 23 minutes, 14 seconds Fear should be around net around 50 to 70 odd stores. These are all majorly ed. 23:22 23 minutes, 22 seconds All huh only? Yes. Yes. 23:28 23 minutes, 28 seconds Okay sir. Uh I'll just come back in the queue for further questions. Sure. Thank you. 23:36 23 minutes, 36 seconds Participants you may press star and then one to ask a question. Your next question comes from the line of Arpan Raur from inside Advisory. Please go ahead. 23:46 23 minutes, 46 seconds Uh thank you for taking my call. Uh so uh my continuing from the uh conversation wherein I dropped it off. 23:56 23 minutes, 56 seconds Uh can you give some sense on the working capital? Can you be little louder and clearer? 24:05 24 minutes, 5 seconds Okay. My question is regarding the working capital. Uh what are the short-term and long-term working capital uh days which we are looking at? 24:20 24 minutes, 20 seconds Hello. 24:22 24 minutes, 22 seconds Okay. The working capital should stay Yeah. should stay anywhere between a limit of 130 to 140 odd days. 24:30 24 minutes, 30 seconds And this is same for cross and the company on a standing basis. This is the overall limit structure. 24:37 24 minutes, 37 seconds Okay. Cross it will be little higher. Any specific reason? 24:44 24 minutes, 44 seconds Okay. Most of it business is skewed towards LF and retail. That is the reason. 24:53 24 minutes, 53 seconds Okay. 24:53 24 minutes, 53 seconds Secondly, we are the manufacturing company. We are not the vendor based company. 25:01 25 minutes, 1 second There is a WIP. So when we are manufacturing to 60 days 25:10 25 minutes, 10 seconds very true comparison manufacturing days and then other days 25:17 25 minutes, 17 seconds so selling combin 140 odd days 25:24 25 minutes, 24 seconds right so the my second question is linked to that only uh cross currently cross currently everything is uh 25:32 25 minutes, 32 seconds outsourced In terms of manufacturing this is right. Yeah. 25:36 25 minutes, 36 seconds So uh and considering that we have uh a standalone basis enough capacities wherein we can uh actually work uh 25:46 25 minutes, 46 seconds absorb that uh manufacturing also any plan there that's that's not the plan for the 25:53 25 minutes, 53 seconds immediate future also okay currently the okay KKCL is only operating at 100% efficiency structure. 26:02 26 minutes, 2 seconds Okay. So any uh KPEX which uh considering that you know uh the growth targets have been revised upwards 26:10 26 minutes, 10 seconds obviously with acquisitions uh but then also on a standalone basis you'll need some capacity expansions. 26:18 26 minutes, 18 seconds So okay not much okay as we said that okay close to around 30 to 35 crores is the requirement for KEX that includes 26:26 26 minutes, 26 seconds the front end as well as the back end on a yearon-year basis. Sure. 26:32 26 minutes, 32 seconds Secondly, uh in the opening remarks, uh you had made uh a pointed remark on growth with alongside acquisitions. 26:44 26 minutes, 44 seconds So any uh you know plan which have been drawn up I I know it's very difficult to point at any 26:52 26 minutes, 52 seconds specific company currently but uh which uh segment or uh you know like we did 26:59 26 minutes, 59 seconds cross so which would be the other segment which we will be looking at any broad strategies around that 27:06 27 minutes, 6 seconds obviously the name uh value everything can't be discussed currently uh but broad broad parameters just for art understanding. 27:16 27 minutes, 16 seconds So more importantly we are right now okay open for all the company structure. 27:20 27 minutes, 20 seconds We just define whether okay we can add to the synergies then we look it from an ROC perspective whether we can that 27:26 27 minutes, 26 seconds synergy and ROC can deliver okay we are also we are open for our competing categories also as well as okay premium as well as the value segment. 27:39 27 minutes, 39 seconds We are even open for any gender specific. Okay. 27:47 27 minutes, 47 seconds Sure. That's it from my set. Thank you and all the best. Thank you. Thank you. 27:53 27 minutes, 53 seconds Thank you. The next question comes from the line of Sahil Dshi from ThinkWise. Please go ahead. 28:00 28 minutes Hello. Uh good afternoon sir. Good afternoon. 28:03 28 minutes, 3 seconds Yeah. uh just uh one on the integrity bit which we said it's done exceedingly well this quarter and uh so could you 28:11 28 minutes, 11 seconds just talk a little more on integrity and for FI27 with the pivot in the brand strategy can we start expecting better numbers on that? 28:21 28 minutes, 21 seconds Yep. 28:23 28 minutes, 23 seconds Okay. So okay we have we have changed the price strategy for that and we have started seeing interesting results. We have also 28:32 28 minutes, 32 seconds started gaining counters okay on the multibrand as well as chain store formats okay we feel okay the growth 28:40 28 minutes, 40 seconds will be in line as what we are talking about the company okay so meaning the transition in terms of modern trade and number of counters 28:49 28 minutes, 49 seconds are we complete in terms of the entire plan or no there is huge there is huge vacuum left yet 28:56 28 minutes, 56 seconds okay understood understood okay so additionally basically these all new pivots from law man and integrity should 29:04 29 minutes, 4 seconds start contributing higher uh from first quarter of this year itself. 29:09 29 minutes, 9 seconds Okay. So if I had to just correlate if I see standalone you know which is your traditional business say this quarter maybe it's been 8% kind of growth and 29:18 29 minutes, 18 seconds for full year is 13 so directionally do we think that this should start picking up at a much higher level 29:27 29 minutes, 27 seconds should be should be an upward of 15%. Should be upwards of 15%. Understood. 29:34 29 minutes, 34 seconds Sure. And just a follow on in terms of uh brand if I see the segment mix the bottom and the denim which typically 29:43 29 minutes, 43 seconds have higher margins this quarter we've seen an improvement in terms of the share of bottoms and denims. Uh but if I 29:51 29 minutes, 51 seconds see in the standalone at least our gross margins are not showing a similar momentum. So is there some strategic call here or just wanted to get a sense 30:00 30 minutes on this. So the mix would have also changed because of the stat change in the price brackets for uh some of the 30:07 30 minutes, 7 seconds brands right okay so that is so a you know because I think 30:17 30 minutes, 17 seconds we used to say 41 42% gross margin should be normal on an annualized basis is that the best we should that okay the going forward also the 30:25 30 minutes, 25 seconds gross margin should anywhere between 412 to 43 rates 41 to 43 Understood. Right. And just 30:32 30 minutes, 32 seconds lastly if you know we've tal spoken about a few pivots and uh you know you made a presentation on that. So if you 30:39 30 minutes, 39 seconds can talk about some of these pivots and you know where are we in that journey and anything further? 30:45 30 minutes, 45 seconds Well this year this year actually okay there were too many things. Okay we also had the organic brands which were looking at restrategizing 30:53 30 minutes, 53 seconds which we feel we have been able to do and that's the reason we have slowed down our pwords in the last quarters. 30:59 30 minutes, 59 seconds Okay. So the pivots would take a scale from this quarter. 31:03 31 minutes, 3 seconds Okay. Any particular pivots in particular which will be the focus for 27 FI too early to answer that. Okay. Maybe 31:12 31 minutes, 12 seconds maybe a quarter two conc will be able to elaborate on it. Sure. Understood. Understood. Perfect. 31:19 31 minutes, 19 seconds That's it from my end and uh great work on the balance sheet again. Yeah. Thank you. 31:26 31 minutes, 26 seconds Thank you. Before we take the next question, a reminder to all the participants, you may press star and then one to ask a question. The next 31:34 31 minutes, 34 seconds question comes from the line of Manoj Takur from Motila Loal. Please go ahead. 31:39 31 minutes, 39 seconds Uh hi sir, I'm rejoining again. So uh one clarification on the movement of other income that we have seen FI26 Q4. 31:48 31 minutes, 48 seconds Can you put some light on that? Hello. Other income? Yes. 32:03 32 minutes, 3 seconds The other income has gone down. Is we talking about the quarter or the full financial year? Quarter. Quarter. This quarter? 32:10 32 minutes, 10 seconds Quarter. Okay. So, it's generally mark to market and that's the reason it has gone down. And 32:18 32 minutes, 18 seconds okay. So, majorly it's that. So, uh what would be the quantum of the mark to market? 32:31 32 minutes, 31 seconds So if you look at the analyzed number, okay, our other income should stay within somewhere between 30 to 35 crores. 32:40 32 minutes, 40 seconds Okay. Okay. Got it. And also uh one more question coming related to cross. Uh 32:48 32 minutes, 48 seconds there are any plans to do a further acquisition of the remaining shares? 32:54 32 minutes, 54 seconds U not for the first five years. 32:58 32 minutes, 58 seconds Okay. And uh in in the strategy that we said then we would do one more inorganic thing. Would that be a 100% full buyout 33:07 33 minutes, 7 seconds or how would be the structure or we can get the details later on? 33:12 33 minutes, 12 seconds Okay. We will update we'll update you about the companies and after this buy actually happens. 33:19 33 minutes, 19 seconds Okay. Okay. 33:34 33 minutes, 34 seconds So I can't say anything right now if the deal is not happen. 33:40 33 minutes, 40 seconds Yes. Yes. Agreed. Agreed. 33:44 33 minutes, 44 seconds Sure. So thank you and that's it for my side. 33:50 33 minutes, 50 seconds Thank you participants. So you may press star and then one to ask a question. The next question comes from Arpan Rathur from Insight Advisory. Please go ahead. 34:03 34 minutes, 3 seconds Uh one question on the store edition target. Uh how many 34:10 34 minutes, 10 seconds uh store company owned company operated stores we are looking to add up in this year? 34:19 34 minutes, 19 seconds We are looking at close to around 50 to 70 odd stores net to be added. Okay. 34:24 34 minutes, 24 seconds Generally we try that okay that the proportion stays close to around uh 15% as compared to 85% franchise store. But 34:33 34 minutes, 33 seconds however okay if any good deal structure happen. So that makes I can update you on more on much uh quarteronquarter basis. 34:43 34 minutes, 43 seconds Sure. And the SSG numbers which we have started disclosing that's a welcome move and this is for would be for company 34:51 34 minutes, 51 seconds owned stores only right for to total yeah yeah for all the years 34:58 34 minutes, 58 seconds okay thank you thank you 35:07 35 minutes, 7 seconds next question comes from the line of Madurati from countercyclical investments please go ahead 35:13 35 minutes, 13 seconds sir Firstly sir uh uh instead of paying dividends sir have we thought about doing a share by back 35:27 35 minutes, 27 seconds it's a company policy boss already the promoter have 74.7% 35:35 35 minutes, 35 seconds so because it's too early to say 35:43 35 minutes, 43 seconds And we are not we are thinking on that div 36:12 36 minutes, 12 seconds 170 We say that okay working capital should 36:24 36 minutes, 24 seconds stay somewhere between 130 to 140 odd days and it will stay in that limit only. Okay. If the business has also expanded from the base as you are asking for. 36:35 36 minutes, 35 seconds Understood sir. 36:38 36 minutes, 38 seconds Search for this FY27 sir. What kind of top line are we looking at? 37:02 37 minutes, 2 seconds So as we said in this console also okay the growth strategy organically stays somewhere between 15 to 18% scenario. 37:12 37 minutes, 12 seconds However if we look at any inorganic growth okay the growth strategy for a 3ear period is at 20%. 37:21 37 minutes, 21 seconds So CA year yeah thank you very much sir. Best of you 37:30 37 minutes, 30 seconds including 2022 2026 we are growing by 18.6%. 37:37 37 minutes, 37 seconds And we will maintain that. 37:41 37 minutes, 41 seconds Sure sir. Thank you. Thank you very much. Okay. 37:46 37 minutes, 46 seconds Thank you. The next question comes from the line of Naven B from Nuama Asset Management. Please go ahead. 37:55 37 minutes, 55 seconds Thank you. Uh thank you for the opportunity. Uh just wanted to check uh what was the same store sales growth for the quarter. 38:03 38 minutes, 3 seconds I have already updated the SSD growth for quarter 4 was around 86.8%. 38:09 38 minutes, 9 seconds And what was the same sales growth for the full year? 9.4. Okay. Thank you. 38:20 38 minutes, 20 seconds Thank you participants. You may press star and then one to ask a question. 38:40 38 minutes, 40 seconds A reminder to everyone, if you wish to register for a question, please press star and then one now. 38:52 38 minutes, 52 seconds We have uh followup question coming from the line of Madorati from counter cyclical investments. Please go ahead. 38:59 38 minutes, 59 seconds So thank you for the opportunity once again. Sir, where do we see our average selling price moving over the next two to three years with cross under our 39:06 39 minutes, 6 seconds acquisition? Uh do we expect the genes which is a higher ASP product to uh scale from the current 50% level? So so how should we look at that? 39:22 39 minutes, 22 seconds Just a moment. Huh? 39:39 39 minutes, 39 seconds category. 39:45 39 minutes, 45 seconds See it was a subdued use for denim as a category for last year. Okay. This year we have started seeing that again the momentum has increased for denim. Okay. 39:55 39 minutes, 55 seconds If if that starts happening definitely you'll be able to gain much market share. The brands most of the brands of KKCL including cross are known for denim 40:04 40 minutes, 4 seconds wear right. Instead of going forward either in terms of acquisition or in 40:12 40 minutes, 12 seconds terms of organic growth do we see the denim segment increasing as a percent the category mix so what it is 48% 40:22 40 minutes, 22 seconds currently can we expect it to move to 50 60% over the maybe next two to three years as well as any acquisition yeah 40:31 40 minutes, 31 seconds I would put it like this okay 5 years or 7 years down the line it was in upwards of close to around 60%. We have intended 40:38 40 minutes, 38 seconds and tried to deris the entire category mix and come down to close to around 45 or 48. I think if the with the retail 40:46 40 minutes, 46 seconds expansion all the categories move in the sim similar percentage structure. So I think it should stay in the similar mix 40:54 40 minutes, 54 seconds of what it is as of today and and sir on the acquisition s 41:04 41 minutes, 4 seconds where do we see this acquisition in terms of price point? Will it be a higher a price point whenever that happens or would it be on the similar 41:12 41 minutes, 12 seconds price point that we are currently present in on the value channel? See for cable kan everything is open. We are generously 41:20 41 minutes, 20 seconds men's led more casual driven more denimentric okay there is lot of vacuum on other side aspects which can which we 41:29 41 minutes, 29 seconds feel that KKL can still synergize and explode. That's one. Secondly, if there is something coming on the DM aspect, we 41:36 41 minutes, 36 seconds are not even disputing that we should not look at it. 41:41 41 minutes, 41 seconds So on the price, so so KKCL is open on the gender mix that includes ladies as kids. Okay. On the men's are also I feel 41:50 41 minutes, 50 seconds there is more room on the on the value segment as well as upper premium price bracket. 41:57 41 minutes, 57 seconds Right. U so nothing concrete as of now. That's true. 42:05 42 minutes, 5 seconds Okay. Got it. 42:08 42 minutes, 8 seconds Targetal% growth per year for the next two years. 42:26 42 minutes, 26 seconds The vision statement was made a year before. Okay. where we had rejected at close to around 15 to 18%. Okay, we have 42:34 42 minutes, 34 seconds already delivered at 20%, we are changing a growth strategy for going forward from a 15% to a 20%, where we 42:40 42 minutes, 40 seconds again say that that 51% 15% will be organic and that 20% will be from any inorganic 42:49 42 minutes, 49 seconds buyout. Okay. So, but it will be within a three-ear period. So if one year has already lapsed okay maybe in the next two year perspectively but if you look 42:57 42 minutes, 57 seconds at a 3 years CG you I'll be able to deliver it at 20%. 43:02 43 minutes, 2 seconds Understood sir and sir you ebo that is company owned or franchisee owned franchisee operated a mix of both of them. 43:12 43 minutes, 12 seconds So, so what is the breakup generally we okay right now I think it should be around 15 to 20% should be 43:19 43 minutes, 19 seconds coco and 80% should be franchisee on franchisee operated but going forward that mix can change 43:27 43 minutes, 27 seconds sir and what is the ballpark capex in uh one ebo to set up one ebo in terms of capex 43:36 43 minutes, 36 seconds and the working capital so overall I as I said that the the capex required should be around 30 to 35 43:44 43 minutes, 44 seconds crores on the company level. Okay, that includes the front end as well as coco stores. 43:51 43 minutes, 51 seconds Understood sir. And sir, what were the exports for the current year? And sir, are we doing white label exports or exporting under our own brand? 44:02 44 minutes, 2 seconds Okay, we are exporting most of our brands and it is under our brand name only. 44:08 44 minutes, 8 seconds Okay. Okay. And uh sir finally sir what is the rental as a percentage of uh top line 44:20 44 minutes, 20 seconds you see huh we have very less cocoa stores as of now so removing that percentage will be very mineral. 44:29 44 minutes, 29 seconds Okay okay okay understood sir. So going forward sir but the strategy is to uh do koko or fo 44:38 44 minutes, 38 seconds I'm again saying okay we have explored the t2 entirely well well in advance where we are able to grab the fo 44:45 44 minutes, 45 seconds franchisee operation stores okay going forward okay it's a mixed perspective which will be coming and that mix will 44:52 44 minutes, 52 seconds keep on changing on a year-on-year basis and between our e-commerce multibrand 45:01 45 minutes, 1 second store, ebo uh sir, so where is the margin highest and how much working capital is required 45:09 45 minutes, 9 seconds in each of these channels on we generally give the bifocation of retail and non- retail where retail it 45:16 45 minutes, 16 seconds contributes includes EBO stores and LFS while all other channels are part of non- retail on the channel the composite 45:25 45 minutes, 25 seconds mix on the AITA margins is almost similar on both the levels so is the working capital. 45:32 45 minutes, 32 seconds Understood, sir. Thank you. Thank you. 45:41 45 minutes, 41 seconds As there are no further questions from the participants, I now hand the conference over to Mr. Rahman Chain for closing comments. 45:50 45 minutes, 50 seconds Thank you once again for joining us today. We truly value your continued support and confidence in KK field 45:58 45 minutes, 58 seconds journey. Should you have any further questions, please feel free to reach out our investor relations team. 46:07 46 minutes, 7 seconds Thank you and have a great great day ahead. Thank you so much. 46:13 46 minutes, 13 seconds Thank you on behalf of Kalcare and Clothing Limited. That concludes this conference. Thank you everyone for joining us and you may now disconnect 46:22 46 minutes, 22 seconds your