PNGS Gargi Fashion Jewellery Ltd — Q3 FY26

PNGS Gargi Fashion Jewellery Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=IG1BNLSyI7s Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the earnings call with identified investors and or analyst 0:08 8 seconds conference call hosted by PNGs Gari Fashion Jewelry Limited. 0:14 14 seconds As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:24 24 seconds Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchstone phone. 0:32 32 seconds I now hand the conference over to Miss Hanya Desh Pande, computing secretary from PNGs GI Fashion Duality Limited for 0:40 40 seconds opening remark. Thank you and over to you. Thank you Ryan. Good evening everyone. 0:47 47 seconds This is Hireny Midesh Pandai, company secretary and compliance officer of PNGs Gagi Fashion Jewelry Limited. A very 0:55 55 seconds warm welcome to all of you to the earnings conference call for discussion. We have here with us Mr. Amit Mod, Mr. 1:03 1 minute, 3 seconds Adita Mod, our directors and Mr. Vishwas Hungra, our chief financial officer. 1:09 1 minute, 9 seconds Welcome everyone. We wish to start by qualifying that during the call we may make some forward-looking statements. 1:18 1 minute, 18 seconds PNGs does not provide any specific revenue earning guidance. Anything which is said during this call which may 1:25 1 minute, 25 seconds reflect our outlook for the future or which may constitute as a forward-looking statement must be reviewed in conjunction with the risk 1:34 1 minute, 34 seconds that the company faces. These statements are considering the business environment we see as of today and therefore there 1:42 1 minute, 42 seconds could be risk and uncertainties that could cause actual results to vive materially from what we are discussing 1:49 1 minute, 49 seconds on this call today. An audio link and transcript of this call will be shortly available on the investor section of our website www.scari.com. 2:01 2 minutes, 1 second With this we are now ready to begin with the opening statements and the performance of the company and post that we will be available for the question 2:10 2 minutes, 10 seconds answer session. I now request Mr. Amit Mod to take over. 2:16 2 minutes, 16 seconds Uh okay now I request Mr. Adita Mod to take over. Over to you sir. 2:24 2 minutes, 24 seconds Thank you. Uh I hope I'm audible. 2:30 2 minutes, 30 seconds Yes. Uh thank you all for joining the call. Our QT Q3 results were announced on 9th February and we are here to explain those and other updates 2:39 2 minutes, 39 seconds happening around the company and industry that we are observing. Our Q3 did topline of 46.18 cr with a PAT of 2:47 2 minutes, 47 seconds 10.65 cr. This shows growth of almost 27% in top line and PAT also rose by almost 16.5% compared to last year's Q3. 2:58 2 minutes, 58 seconds Our last year's top line was consist of one time sale of goods amounting to 25.74 3:06 3 minutes, 6 seconds K. Due to change in from Poco to Poco in RS if you reduce that sale number from 3:13 3 minutes, 13 seconds the top line of the last year our sale rose by uh rose by 41.89 89 K that is 3:21 3 minutes, 21 seconds almost 53 54% in first 9 months and we are really satisfied with with this number when we compare this with uh 3:29 3 minutes, 29 seconds other uh with the industry growth. Last year we said that the 2526 will be all about the expansion and creating new 3:37 3 minutes, 37 seconds footprint in coming year and we also said that we will be uh opening exclusive sale points or brand outlets. 3:45 3 minutes, 45 seconds Uh the number we directed uh uh in previous calls were not less than 12 locations and we are happy to tell you that we opened 16 location in this year 3:53 3 minutes, 53 seconds and still there are few in pipeline for the for this year. As on date we have total 121 point of sales across India 4:02 4 minutes, 2 seconds and similar to this year next year will be again about opening new stores creating new markets creating more brand awareness and concreting our presence in growing market. 4:12 4 minutes, 12 seconds In last year we also promised that we will be spending uh on pan India marketing. For that our promoter infused approximately 10 year equity uh uh 4:22 4 minutes, 22 seconds during the year at a rate of 970. We are utilizing that money to create brand awareness across India using variety of sources including digital media. 4:32 4 minutes, 32 seconds This market is set to triple in coming five years and we are getting ready uh to grab this opportunity through all our product lines. Whether it is 925 4:40 4 minutes, 40 seconds sterling silver jewelry, 14 karat natural diamond gold jewelry or also fashion jewelry. We are exploring new ways and avenues to take this 4:48 4 minutes, 48 seconds opportunity to expand our business with market tripling in this year. One more advantage that we have is that 4:56 4 minutes, 56 seconds there are very few organized players in this segment and the consumers are moving or preferring organized players for their quality concern and brand 5:04 5 minutes, 4 seconds awareness and that should help us grab more market uh market share in years to come. This positive environment ensures 5:11 5 minutes, 11 seconds us to grow at least by 35% in years to come uh with good SSG and additional sale point that we are creating while 5:20 5 minutes, 20 seconds taking advantage of growing market and expanding our footprint. We are also maintaining our pad profitability over 20% which is best in the in the 5:27 5 minutes, 27 seconds industry. We are zero debt company and we have self financed all our growth we did till now and intend to continue it 5:34 5 minutes, 34 seconds with excellent cash balance and current ratio. Our current liquidity is sufficient for another at least 25 without any debt or any equity expansion. 5:45 5 minutes, 45 seconds As we always have talked about the philosophy that we will not hurry to showcase the numbers but we'll take thorough measures to create profitable 5:53 5 minutes, 53 seconds locations and indeed a sustainable model to thrive in years to come. We won't be compromising on quality on any aspect 6:00 6 minutes whatsoever while growing at the faster speed. We will continue our excellent corporal governance also with quarterly 6:07 6 minutes, 7 seconds results calls etc every year and we'll take our business to new heights with journey as smooth as possible. This is 6:15 6 minutes, 15 seconds it from my side. I now hand it over to Mr. Avid Modak to give his commentary and Q&A sessions. Thank you. 6:29 6 minutes, 29 seconds Good afternoon everyone and welcome for this uh investor call. 6:35 6 minutes, 35 seconds Uh we are giving maximum transparent information from time to time plus quarterly result along with the 6:42 6 minutes, 42 seconds explanatory statements quarterly uh statement giving the details about the previous quarter quarter over quarter 6:51 6 minutes, 51 seconds period over period everything in the standardized format which is supposed to be of the mainboard uh entity kind of 6:58 6 minutes, 58 seconds thing. I hope you must be uh appreciating this uh effort to have good corporate governance through all these things. 7:08 7 minutes, 8 seconds Before uh taking question answer, I want to summarize something like Indian fashion jewelry market is 10,000 cr today likely to be 30,000 cr by 2030. 7:20 7 minutes, 20 seconds Organized retail portion is less than 10% currently. So there is a huge scope for the organized sector to expand. But 7:29 7 minutes, 29 seconds only thing with the price point, customer shift is also required because customer shift will happen only when customer will realize that price is not 7:37 7 minutes, 37 seconds only the concern. The quality and finishing and sustainability for the product which they are buying is also the concern and it is happening because 7:45 7 minutes, 45 seconds we are looking that there is a great shift is coming. Killer jewelry has got four to 6% CAGR in the market. Costume 7:54 7 minutes, 54 seconds jewelry has got almost 11 and a half% cag driven by GenZ the adoption. 8:01 8 minutes, 1 second Our company is a founded in 2021 backed by 193 year old legacy of Pang Gargilson. Brandfolio Gi is a 8:11 8 minutes, 11 seconds contemporary is a bridal and heavy but not having any resale value. Product range includes that sterling silver, 8:20 8 minutes, 20 seconds brass, 14 karat gold and diamond and now recently added 9 karat gold. Our touch 8:28 8 minutes, 28 seconds points are spread pan India and Adita has given you the details about the number. 8:36 8 minutes, 36 seconds recent period 9 months. If we set out uh set up the one-time sale of previous year's number then the growth is around 8:45 8 minutes, 45 seconds 52 to 54% somewhere between revenue last full year was 126 cr this year's first 9 8:52 8 minutes, 52 seconds months revenue is 119 cr 126 cr is without taking the setup for the one time sale so it is almost matching even 9:00 9 minutes if we keep that uh one time sale our growth is going to be more than 30% including that one time sale. So if you 9:10 9 minutes, 10 seconds remove that one time sale, you will find that growth is far far better than the market trend which is right now. IITA is 9:16 9 minutes, 16 seconds around 39.56 cr. PNGs Gagi has got 22.8% PAT margin, 31.3% 9:25 9 minutes, 25 seconds margin. As against the market, I will not take the names of the brand. I have got even even though I have got the information about this brand their 9:33 9 minutes, 33 seconds company name and everything I can mention the largest competitor in the fashion jewelry or the uh pocket friendly diamond brand they have got 9:42 9 minutes, 42 seconds 2.7% pat margin with 5.5% iita the appleto apple company which is operating 9:50 9 minutes, 50 seconds in market with us has got a loss making of 58 cr and they are showing that there is a reduction in loss and that's why 9:58 9 minutes, 58 seconds they are coming in profit which is not acceptable term to me because I only accept the rupee which can be wrote on the check or which can be get reflected 10:06 10 minutes, 6 seconds in the bank statement. It should not be in the negative or in the bracket on the financial statement that I don't accept 10:13 10 minutes, 13 seconds at all. Then one global brand is there which has got 11.8% packed margin with 18.3% ITA margin. From all these figures 10:22 10 minutes, 22 seconds you can assess the quality of the company in which you have got investment and we are leading that company. It's a 10:30 10 minutes, 30 seconds proud for us. It's a zero debt. Cash balance is almost equivalent to the 70 cr rupees which is in the form of uh 10:39 10 minutes, 39 seconds treasury in form of short-term cap uh deposits with the bank and that is sufficient as as said to expand minimum 10:48 10 minutes, 48 seconds 25 location in the coming year without asking for any debt from the market or without asking for the expansion to the 10:55 10 minutes, 55 seconds equity. Working capital is a 97 cr for the 119 cr rupees stop line 5 years 11:02 11 minutes, 2 seconds caggr is a 95.24% 24% hyper growth phase fi 25% 11:09 11 minutes, 9 seconds revenue growth with 23% pack margin 150% is always said 100 is a basic and 50% is 11:16 11 minutes, 16 seconds a growth that concept even though for the investment purpose I'm explaining actually it's the 50% growth and basic 100 is there so we call it as 150%. 11:27 11 minutes, 27 seconds 9 months FI26 119 K revenue annualized run rate is a 160 cr but I will not say 11:34 11 minutes, 34 seconds that 160 cr will be there because last year one time sale will not be there so I can say you will see not less than 35 11:42 11 minutes, 42 seconds to 40% growth in any year in the downline which is coming year in after for at least next 3 to four years 11:50 11 minutes, 50 seconds profitable in every quarter since inception which is exceptional for the fashion jewelry in The market neither 11:58 11 minutes, 58 seconds listed nor unlisted. No one is having this kind of the profitability in the fashion building. Fixed asset it's a 12:04 12 minutes, 4 seconds asset like model from start itself we are saying it's a asset light model. So for 126 cr rupes last year top line we 12:12 12 minutes, 12 seconds were having only 4.7 cr rupees fixed asset poco model 75 inventory funded by the franchisee and investment per store 12:22 12 minutes, 22 seconds is around 50 lakh rupees versus 1 to2 cr rupees per other competitor minimal capex expansion is required 12:31 12 minutes, 31 seconds stores are franchise operated company own inventory sg which are fo franchise operated and 12:38 12 minutes, 38 seconds franchise and retail partners like shopper stock and third party franchises. Product diversification as 12:45 12 minutes, 45 seconds we have seen in earlier my statement only it is a silver jewelry, brass jewelry, copper jewelry, utso jewelry 12:52 12 minutes, 52 seconds with the plating then 14 karat gold studied with the natural diamond. 12:56 12 minutes, 56 seconds Natural diamond is a precisely thing we need to uh keep in mind because very shortly whoever is selling the labon 13:05 13 minutes, 5 seconds diamond will not be allowed to use diamond word in their billing or in their sales matter. They need to mention 13:12 13 minutes, 12 seconds either LGD or stone not even precious stone. So that B standards and B notification is coming very shortly. 13:22 13 minutes, 22 seconds Kids collection we have introduced and which is becoming very popular. 13:27 13 minutes, 27 seconds One company is operating at 5% market share around 3,000 cr. Another company is operating at 1.5 market share around 13:35 13 minutes, 35 seconds 500 cr. We are operating at 15% market share at 126 cr. But we should keep in mind the earlier two which we have 13:43 13 minutes, 43 seconds mentioned they are selling plain gold jewelry also along with their product. 13:47 13 minutes, 47 seconds If I start selling tomorrow plain gold jewelry, I can beat all these numbers that much I am confident. But my uh main 13:56 13 minutes, 56 seconds purpose of this uh fashion jewelry segment is not to sell plain gold jewelry but to sell fashion jewelry 14:03 14 minutes, 3 seconds which is a profit friendly and fastm moving jewelry. 14:07 14 minutes, 7 seconds We have got uh blessings from 193y old brand only player with 20% pack margin 14:15 14 minutes, 15 seconds pan India zero debt versus industry norm of leveraging through the equity calls 14:21 14 minutes, 21 seconds or the debt and took model superior unit economics versus own scores 14:32 14 minutes, 32 seconds for me that is a summarization and you can start Now your question answer. I'm 14:38 14 minutes, 38 seconds happy to receive your question and happy to answer your question. Thank you. 14:46 14 minutes, 46 seconds Thank you ladies and gentlemen. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the 14:55 14 minutes, 55 seconds touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants 15:02 15 minutes, 2 seconds are requested to use their handsets while asking a question. 15:06 15 minutes, 6 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 15:13 15 minutes, 13 seconds We take the first question from the line of Nishan Johi from Equisense Advisor Private Limited. Please go ahead. 15:20 15 minutes, 20 seconds Uh sir, good evening. Uh I have two questions. Uh first question is relates to our distribution system. I believe we 15:27 15 minutes, 27 seconds have larger distribution in uh in and around Pune, Mumbai or Maharashtra. Uh 15:34 15 minutes, 34 seconds do you intend to copy this concentrate circle growth in different district states because as of now what I have been seeing that we are opening the 15:42 15 minutes, 42 seconds stores in a staggered manner in different states. Uh so would you like to comment on that and can you give details how much sales comes from Kune, 15:50 15 minutes, 50 seconds Mumbai or Maharashtra area in percentage terms? 15:56 15 minutes, 56 seconds mainly we have already uh having presence in almost 13 states. 16:04 16 minutes, 4 seconds So uh saying that we are concentrated in Maharashtra now I will not accept that statement because we have started 16:10 16 minutes, 10 seconds expanding in other state also. Getting good turnover from all these states where we are approaching or establishing 16:19 16 minutes, 19 seconds new location will take some time. It will not beat the Maharashtra top line because Maharashtra is a our core area 16:28 16 minutes, 28 seconds of operation where our brand has got very strong presence and there are many brands who have got strong presence in some specific area even though they are 16:37 16 minutes, 37 seconds present in the national uh scenario or as a national brand. If you take their uh split of the toner or the top line, 16:46 16 minutes, 46 seconds they are also having substantially coming from their native uh brand area and coming remaining from the pan India 16:53 16 minutes, 53 seconds area. Same thing is here. But yes, we are doing extremely well where we have expanded in last 8 to 12 months. So 17:01 17 minutes, 1 second still those uh location are in position to the gas station period kind of the thing they need to get matured in a 3 to 17:10 17 minutes, 10 seconds four years time and then we can assess whether they are matching with our Maharashtra performance or not. 17:16 17 minutes, 16 seconds Secondly, the SI location with PNG guard and Suns Limited because they there is a 17:23 17 minutes, 23 seconds by default or the generic footfall is there and uh customer comfort is there 17:30 17 minutes, 30 seconds they are shopping at a higher uh price point or higher level in these 33 location as compared to other but my one 17:39 17 minutes, 39 seconds Punea location or even the three four location which are in Pune outside the PNG gargson's location Standalone kind 17:46 17 minutes, 46 seconds of shop having uh standalone uh location shop they also have got 1.5 K to 2.5 K 17:55 17 minutes, 55 seconds per anom kind of the top line in a single location our recently established 18:02 18 minutes, 2 seconds Lakshmi franchisee model third party franchisee they are clocked in a first year of their operation because they 18:10 18 minutes, 10 seconds started last year on 30th March so last year only two days they were working they clocked Till date almost 2.25 cr rupees turnover that means they will close around 2.5 cr by end of the year. 18:21 18 minutes, 21 seconds Lacor is doing well. Amrser is doing well. Then patna kiosk is there and kiosk is doing equivalent to the uh standalone shop kind of the thing. 18:32 18 minutes, 32 seconds Indoor CTL mall is there which mall is upcoming and still infrastructure is in progress but yes there also we have got 18:40 18 minutes, 40 seconds good response and it is also clocking almost three and a half to four lakh rupees uh sale every month which was not 18:48 18 minutes, 48 seconds expected by us to achieve this kind of sale in early period. So it is in line 18:54 18 minutes, 54 seconds even the Gura Elante mall the we started in last February and that is also carrying out more than five lakh rupees 19:03 19 minutes, 3 seconds a month. So I'm not worried whether outside Maharashtra I can perform or not. On the other hand, I'm confident 19:10 19 minutes, 10 seconds that it will perform and I am happy to say that we have received a very good response even though our brand name was 19:17 19 minutes, 17 seconds new to this north Indian places and because shopper stop was keeping our uh brand within their shops we become 19:25 19 minutes, 25 seconds popular pan India in advance before expansion and our strategy is working very well. 19:32 19 minutes, 32 seconds Uh uh my second query was that as you said industry itself is growing in double digit 19:39 19 minutes, 39 seconds organized market is alorg organized market is also getting converted to organized on a faster pace. Uh so are 19:46 19 minutes, 46 seconds you estimating 30 35% growth on a conservative basis or as you 19:52 19 minutes, 52 seconds I always say not less than sorry sir I always commit not less than 20:00 20 minutes not less than means that much I am getting bound to do I will say not up to 45%. 20:07 20 minutes, 7 seconds up to 45% even if I perform 19% I will say I said up to 45% it comes 19%. But I 20:15 20 minutes, 15 seconds am getting committed myself by saying not less than that is more important for me. I am also from the finance background. So anybody saying not less 20:24 20 minutes, 24 seconds than is more important for me rather than up to. So my all commitments in every call earlier call also I commit 20:32 20 minutes, 32 seconds every number not less than. So my growth will be not less than 35%. You said double digit. So I am in double digit. 20:39 20 minutes, 39 seconds Very well in double digit. 20:42 20 minutes, 42 seconds And for any rational that why would you increase? 20:45 20 minutes, 45 seconds Because saying I can grow at 50% and next year saying sorry I don't accept that kind of thing. So I say always not 20:53 20 minutes, 53 seconds less than because this year I have grown by 53%. I can say I can grow by 50%. But I will not say that. 21:02 21 minutes, 2 seconds Maybe I appreciate that sir. Uh I just intend to say that uh is there any rational answer you can give for why quarter 3 was in link with quarter 2 21:10 21 minutes, 10 seconds mean uh this was a season wherein a high come any reason for that sir. I will 21:18 21 minutes, 18 seconds reply your this question but before that I will uh address to all the investor that I perform for the year not for the 21:27 21 minutes, 27 seconds day over day week over week month over month quarter over quarter so if you compare 9 months over 9 months why I 21:34 21 minutes, 34 seconds took quarter over quarter my growth is 53%. 21:38 21 minutes, 38 seconds And now come to the Q2 to Q3. Q2 start ended with the festival start. 10 days 21:45 21 minutes, 45 seconds of festival were there in the Q2. If you remember it started around 20th September this year. So out of 45 days 21:54 21 minutes, 54 seconds festival days 10 days were in the September month. Secondly there are some models where franchise on franchise 22:01 22 minutes, 1 second operated where I need to move inventory for their purpose well in advance. I cannot move it day on day basis. So 22:09 22 minutes, 9 seconds almost 60% inventory required for their festival sale was moved in Q2 in last 10 22:15 22 minutes, 15 seconds days. So that sale got booked there and even though irrespective of that I have 22:22 22 minutes, 22 seconds shown overall growth. So if that sale would have happened in the first week of the October subject to festival starting 22:30 22 minutes, 30 seconds after first week of October, my sale would have been higher by 40 to 45% in Q to Q3. 22:40 22 minutes, 40 seconds Okay sir. Thank you. Thank you. 22:46 22 minutes, 46 seconds Thank you. We take the next question from the line of Disha from Safia Capital. Please go ahead. Hello. 22:54 22 minutes, 54 seconds Yes. Am I audible, sir? Yes. Yes. Very well. 22:59 22 minutes, 59 seconds Yes. So, so uh I think this how many stores are we planning to open for the next year? 23:06 23 minutes, 6 seconds Last year I said not less than 12. Right now I have already opened 16 and there are some in pipeline as Adita has given 23:15 23 minutes, 15 seconds in his explanation. Next year I am saying not less than 20 but up to 25 to 30. 23:23 23 minutes, 23 seconds And what what geographies will you be targeting? 23:26 23 minutes, 26 seconds Pan India except South India fashion jewelry costume jewelry popular because there is a popularity for the pure gold 23:35 23 minutes, 35 seconds jewelry. So we are targeting first north India where fashion jewelry or costume jewelry is very much popular. 23:42 23 minutes, 42 seconds Okay. And what of capex or store do we see around for us if it is a franchisee model because franchisee do all things 23:51 23 minutes, 51 seconds that is a capex for the furniture fixtures and rentals rental advances and everything we need to keep the uh 23:58 23 minutes, 58 seconds inventory only. So to the extent of inventory if it is only for fashion jewelry of the silver then capex is 24:05 24 minutes, 5 seconds required 25 to 30 lakhs rupees. If it is including diamond then capex is required around 50 to 60 lakh 24:13 24 minutes, 13 seconds and if it's if it's not the franchisee model then then if my own store is there I required 1 k rupees 24:21 24 minutes, 21 seconds because infrastructure I need to create on my own and generally when we create our own franchisee it has got little bit 24:30 24 minutes, 30 seconds different look because our brand value gets involved there and so so the new store openings that we 24:36 24 minutes, 36 seconds planning any sort of split between the uh franchisee model and our own store model. 24:43 24 minutes, 43 seconds Right now we have got almost 90% plus our own stores or the stores operated by our master franchisee you can say that is a parent company PNG and Suns limited. 24:54 24 minutes, 54 seconds So uh third party franchising we are very much cautious before giving because if they start and afterward they say 25:01 25 minutes, 1 second that it is not becoming viable we want to quit then it becomes massive expansion for me because I have got 25:09 25 minutes, 9 seconds legacy of 190 year with the one USP that not a single shutter is down 25:18 25 minutes, 18 seconds right okay and so just for the on the margins we've seen some expansion Q2 Where do you see these margins and what 25:26 25 minutes, 26 seconds sort of steady state margins do we expect on the uh COGS side? You can expect COGS to the level of 53 to 55%. 25:37 25 minutes, 37 seconds And pack margin somewhere between 20 to 22%. B says percent. 25:44 25 minutes, 44 seconds Okay. Okay. And so just on the marketing expenses what sort of so the expenses as a percentage of revenue what sort of number will we target there? 25:53 25 minutes, 53 seconds Last year uh first 9 month we have spent on marketing uh just a minute 26:01 26 minutes, 1 second we spent on marketing last year first 9 month 3 cr 64 lakh this year first 9 26:07 26 minutes, 7 seconds month we have spent almost 6.75 cr so it is almost uh near to double right so where do we 26:15 26 minutes, 15 seconds and we are mainly mainly targeting social media marketing through Insta or the YouTube or the uh 26:24 26 minutes, 24 seconds influencers uh created AVs. 26:30 26 minutes, 30 seconds So, so the 6 to 7 K is the sort of annual number. Can we see going ahead or do we see it pinching up further? 26:40 26 minutes, 40 seconds Wherever I will have expansion, I need to have create a marketing buzz for a certain period for creating footfall and 26:48 26 minutes, 48 seconds creating awareness about the same. So till the time I'm expanding my this spend is going to be remain annually somewhere between 7 to 9 cr. 27:00 27 minutes Okay. Okay. All right. Thank you sir. 27:02 27 minutes, 2 seconds And our promoter have contributed separately 10 cr rupes at 970 rupees per share exclusively for this marketing 27:09 27 minutes, 9 seconds purpose. If you refer to the recent preferential allotment the object was for spending on marketing purpose pan India. 27:17 27 minutes, 17 seconds Right. Right. Right. Okay. Thank you. That is it from my side. Thank you. 27:22 27 minutes, 22 seconds Thank you. We take the next question from the line of Sor Kumar from Scientific Investing. Please go ahead. 27:31 27 minutes, 31 seconds Uh hello sir. Uh first thanks a lot for setting up such a great corporate governance inme 27:40 27 minutes, 40 seconds and I am invested in your company for last six seven months. Uh it's very impressive. Sir I have few questions. Uh first question sir in terms of unit 27:48 27 minutes, 48 seconds economics and just right now you said if you are setting your own exclusive store around 1 cr is required for inventory and capex. So if you take the existing 27:57 27 minutes, 57 seconds stores at matured level, how many stores can fund this one use? 28:06 28 minutes, 6 seconds No, I uh your voice was breaking and uh so sir, I'm looking at the matured level 28:15 28 minutes, 15 seconds profit of your one exclusive store. Just to come at a number that to open one new store, how many stores need to contribute through internal approval? 28:24 28 minutes, 24 seconds What is the profitability of one unique store, one exclusive store at maturity level? 28:31 28 minutes, 31 seconds It depends what rental. 28:42 28 minutes, 42 seconds So there is no any hard and fast but if I invest on my own for 1 cr rupees capex 28:50 28 minutes, 50 seconds with capex flux inventory and within 2 years time it gives me ROI on my investment basis somewhere between 20 to 25%. 29:14 29 minutes, 14 seconds location. 29:23 29 minutes, 23 seconds Okay, this is cash profit sir after factoring working capital. No, I am I talking about profit. 29:36 29 minutes, 36 seconds explaining you 29:44 29 minutes, 44 seconds that is my concern investor that is my concern. 29:52 29 minutes, 52 seconds Okay sir. Uh second sir in terms of expansion strategy uh like there are tier one cities with very high 1 cr 30:00 30 minutes population then you have tire two cities in like 25 30 lakh population then you have smaller cities uh do we have any 30:07 30 minutes, 7 seconds strategy in mind that we will restrict to a certain minimum is one and a city like let's say a city like Pune uh what is the total number of 30:16 30 minutes, 16 seconds stores you see there is a possibility to open x number of stores at maturity level in Pune Pune Pune can accommodate not 30:24 30 minutes, 24 seconds less than 40 stores. It has got 70 square kilometer area. 30:30 30 minutes, 30 seconds 70 square kilome area and Pune has got population of 80 lakh plus and many surrounding places are becoming 30:39 30 minutes, 39 seconds the suburb of Pune. Right now we have got almost I think 15 or 16 location 30:46 30 minutes, 46 seconds within Pune. So there is a still scope to expand in Pune. 30:52 30 minutes, 52 seconds Sir if I will keep on expanding in Pune first investor will start asking me why 30:59 30 minutes, 59 seconds you are not going outside so I am keeping mix 31:05 31 minutes, 5 seconds outside so that becoming brand it is necessary to spread everywhere I cannot concentrate in single area investors are 31:13 31 minutes, 13 seconds also right because they want a brand uh perception brand presence everywhere so we are trying to create a brand presence 31:21 31 minutes, 21 seconds along with profitable location. So it will be a mixit 31:39 31 minutes, 39 seconds Nonprofit making fund. Got it sir. Got it sir. Last question. 31:48 31 minutes, 48 seconds We say in every state there is a different language design and some companies in the past they have suffered because of aggressive expansion 31:57 31 minutes, 57 seconds and we are going pan India but in fashion jewelry. So how is your reading of fashion jewelry market there also? 32:03 32 minutes, 3 seconds Every state is different or once you have built a design strategy you can apply it across you know north India or you know west. Generally in fashion 32:12 32 minutes, 12 seconds jewelry there are no different design from Kashmir to Kanyakumar. Fashion jewelry has got some standards. Online community. 32:38 32 minutes, 38 seconds Yes. For plain gold it is there. design. 32:48 32 minutes, 48 seconds But for fashion jewelry, it is not like that. Fashion jewelry is a jewelry platform 33:03 33 minutes, 3 seconds like Got it, sir. Got it. And sir for these 20 30 stocks we sorry stores which you told you will be expanding and we have a 33:11 33 minutes, 11 seconds marketing budget also are we looking for any further dilution? 33:16 33 minutes, 16 seconds No as I said in coming at least 18 months period I am not requiring any dilution or any debt for funding the 33:25 33 minutes, 25 seconds expansion either model company own or third party franchise for 33:32 33 minutes, 32 seconds everything I am prepared because on own when I make a store as I said 1 K is required and I got treasury of almost 70 33:40 33 minutes, 40 seconds K rupees and I'm too conservative that's why I'm I can keep that treasury whatever 33:47 33 minutes, 47 seconds earning is there I'm retaining it very properly and uh very carefully great sir that's all I had wish you all 33:56 33 minutes, 56 seconds the best sir thank you thank you thank you we take the next question from the line of Rajes Singler from VTG 34:05 34 minutes, 5 seconds Capital please go ahead yeah hi good evening sir thank you very much for taking my question and uh first of all thank you for maintaining sir top 34:13 34 minutes, 13 seconds class corporate governance which we have maintained so far And uh so far we have grown at 2x to 3x versus the industry growth and considering the strong 34:21 34 minutes, 21 seconds expansion plan which we have we are looking forward to strong growth in the coming years as well. So my couple of question I will go one by one. So probably first question would be like 34:30 34 minutes, 30 seconds how are we managing silver prices like uh can we say that so maybe just your your silver pricing strategy if you can uh tell a bit of that. 34:40 34 minutes, 40 seconds First of all we are not selling on the gramage basis we are selling on MRP basis. So silver prices if you go with 34:47 34 minutes, 47 seconds the one g top in the year 35:10 35 minutes, 10 seconds one thing secondly government has banned importing Silver jewelry, readym made silver jewelry up to 31st March, 26th at 35:18 35 minutes, 18 seconds first level, they may extend it and with taking into that consideration, we have already established our own 35:24 35 minutes, 24 seconds manufacturing setup within Maharashtra with many karagis who have got expertise in 9 karat, 14 karat gold, silver, gold 35:33 35 minutes, 33 seconds jewelry export. So they have got very good machinery available with them with using their expertise and machinery and setup we are manufacturing their silver 35:42 35 minutes, 42 seconds jewelry which is equivalent to the imported silver jewelry and we are getting cost benefit also that we are 35:50 35 minutes, 50 seconds watching that COGS has come down from 56% to 53%. 35:54 35 minutes, 54 seconds So that benefit is coming out of our indigenous manufacturing process. Silver price is very uh comparatively 36:03 36 minutes, 3 seconds irrelevant because if you take 15,000 rupees item with 10 gram of silver today 10 g of silver is costing you even at 4 36:11 36 minutes, 11 seconds lakh rupees even if you consider it as a 4,000. So main is a markup finishing design and marketing. So silver prices 36:20 36 minutes, 20 seconds are not going to directly impact but yes we are saving on silver prices because we are timely procuring it and I cannot 36:28 36 minutes, 28 seconds disclose it explicitly but keep in mind whatever stock is valued it is at the average purchase price not at realizable 36:35 36 minutes, 35 seconds price and realizable price is far better as compared to the 12 months back so margins are likely to improve 36:43 36 minutes, 43 seconds right sir and my thank you sir my second question would be on the share of uh silver jewelry or silver items in a 36:50 36 minutes, 50 seconds total revenue uh like what what so how that share has changed over the last three years and where do you see that changing in the next few years 37:01 37 minutes, 1 second uh I can percentage if you want I will give you just a minute 37:10 37 minutes, 10 seconds it is a 38% of the diamond jewelry this year so far right 37:17 37 minutes, 17 seconds up to 9 months first 9 months and 57% is a silver jewelry 37:26 37 minutes, 26 seconds and I am expecting it to become almost 45% of the diamond and 55% of silver by 37:33 37 minutes, 33 seconds H1 of next year right so the share of diamond and basically gold jewelry is increasing and 37:41 37 minutes, 41 seconds what what would be the ticket size the normal what is the normal ticket size normal ticket size in diamond jewelry it is 15,000 to 25,000. 37:50 37 minutes, 50 seconds Okay. If anyone buys say like uh your necklace with tops or necklace with uh bracelet or necklace with the finger 37:58 37 minutes, 58 seconds ring that kind of combination it goes up to 1 lakh 25,000 also and generally during this Valentine period we keep 38:07 38 minutes, 7 seconds certain this kind of design and we have seen good traction for this design in last two years. This year also we are likely to see. 38:16 38 minutes, 16 seconds Right. Great sir. And the last question would be on the marketing spend. So we have spent a significant amount this year so far. Uh so we so should we 38:24 38 minutes, 24 seconds expect a good amount of benefit or yield from this marketing spend in the coming uh quarters? Uh given that your new 38:31 38 minutes, 31 seconds stores might have started already generating revenue driven by uh the strong demand which we have seen so far as well as the marketing aggressive marketing which you have done. 38:42 38 minutes, 42 seconds Marketing 38:53 38 minutes, 53 seconds market value. 39:01 39 minutes, 1 second It is very difficult. Even if I will take some celebrity for marketing whether that celebrity will be 39:08 39 minutes, 8 seconds acceptable or not one thing whether that celebrity will come in some controversy in future and that will hamper negatively on myself even after spending 39:16 39 minutes, 16 seconds that is also difficult but yes we are spending on the marketing with very thoughtfully social market. 39:37 39 minutes, 37 seconds So it gives us good return on that. But I will never say that whatever I'm making 20% 39:44 39 minutes, 44 seconds pack out of that 3% pack is coming because I am spending on marketing that kind of thing. I will not never say or comment. 39:53 39 minutes, 53 seconds last two years hardly% profitability plus minus so but 40:04 40 minutes, 4 seconds yes we will have effective marketing for creating more and more awareness for our brand and in last call only I have 40:11 40 minutes, 11 seconds mentioned very precisely that next year we will spend largely means next two years 24 months we will spend largely on 40:19 40 minutes, 19 seconds the panindia marketing regional brand. Now we are spreading pan India. So for getting awareness about 40:27 40 minutes, 27 seconds our brand we acquired that kind of marketing. So as I said it is double as compared to last year and promoter have contributed to it. 40:35 40 minutes, 35 seconds Great subject. Thank you sir. I will get in the queue sir. Thank you very much sir. 40:39 40 minutes, 39 seconds Okay that's thank you. 40:42 40 minutes, 42 seconds Thank you. We take the next question for the line of AJ. with with permission sir can I take one uh email question which I 40:50 40 minutes, 50 seconds have received because that person is not connected I think in the QR he is there 40:56 40 minutes, 56 seconds yes yes yes he is there Rahul Surya can we take him on the top so that I can 41:03 41 minutes, 3 seconds finish uh the questions which he has asked uh sure he has sent the mail uh sure sir 41:10 41 minutes, 10 seconds Rahul G you are listening yeah am I audible hello yes You're audible. Thank you sir. 41:16 41 minutes, 16 seconds So Rahul Gib your that question about the Q3 sale and all this thing. I think 41:24 41 minutes, 24 seconds you have received the answer in the first questioner person question. 41:32 41 minutes, 32 seconds I hope so. Uh your questions were mainly regarding the Q3 41:38 41 minutes, 38 seconds lower growth. I will not say lower turnout. It was a lower growth as expected growth for the people but it is 41:46 41 minutes, 46 seconds as per the expected only but partial 10 days for all the store was in September and for FO store 60% of their festival 41:56 41 minutes, 56 seconds sale was sold in the 10 days of the uh Q2 because I need to transfer stock to 42:02 42 minutes, 2 seconds them by billing. So Q3 Q2 last 10 days 42:11 42 minutes, 11 seconds sir actual sales to the customer during festival season which concerning 42:18 42 minutes, 18 seconds our brand properties. Hey there is a growth there is a growth sir I'm looking that there is a growth because I am taking statistics from fo model also how 42:27 42 minutes, 27 seconds much they are selling to the customer and their B2C plus my own store B2C if I 42:34 42 minutes, 34 seconds come up it is it was almost good larger number since I have not mentioned 42:41 42 minutes, 41 seconds it here but I can communicate you on the separate mail because I need to calculate it separately and I have 42:49 42 minutes, 49 seconds quantify it separately because right now it is not in the audited uh statements of the account. I cannot give some 42:56 42 minutes, 56 seconds number with my own thought process as a gross or uh approximate number. I will communicate you. Yeah. 43:04 43 minutes, 4 seconds But I can assure you all that the sale in Q3 or the festival sale was definitely good at higher number and it is matching to our growth. 43:15 43 minutes, 15 seconds Perfect. Thank you sir. Sir question. 43:20 43 minutes, 20 seconds Yes. Yes. Continue. Uh sir cap non Maharashan revenue or profit share 43:28 43 minutes, 28 seconds idea outside 43:52 43 minutes, 52 seconds I will definitely disclose that number person jewelry business. 44:02 44 minutes, 2 seconds It's easy to enter because of the uh third party manufacturings are available right market. So how are we different from them? 44:22 44 minutes, 22 seconds bigger brands similar to the Maharashtra right? 44:27 44 minutes, 27 seconds If you tell me about the brand name then only I can comment about it. 44:39 44 minutes, 39 seconds Lifestyle is a plain gold jewelry. It is not a fashion jewelry brand 44:51 44 minutes, 51 seconds silvery brand that is not competing with us as far as topline of our business is concerned about fashion jewelry 45:01 45 minutes, 1 second and as I explained there are many brand but they are not matching to us in the propility 45:08 45 minutes, 8 seconds in the variety we have got 190 plus year experience. We are not startup. We are not IITs starting jewelry business. We 45:16 45 minutes, 16 seconds are hardcore jeller or the sarab who are entering in the business. So our knowledge age will be far better than 45:25 45 minutes, 25 seconds any other than the shop kind of the experienced person and startup. 45:32 45 minutes, 32 seconds They want to create a number whether it is a profitable or not it is immaterial. 45:37 45 minutes, 37 seconds But since we are hardcore business people rather than top line unless something is 45:47 45 minutes, 47 seconds going to make profit we will not enter into it. 45:52 45 minutes, 52 seconds Yeah. Thank you sir. I'm done with my question. Thanks for your corporate governance. This give us a confidence 45:59 45 minutes, 59 seconds right irrespective of what is currently happening in the market. See I stayed with you. Thank you. Thank you. Thank you. Yes. Next. 46:08 46 minutes, 8 seconds Thank you. We take the next question from the line of AJ S who is an individual investor. Please go ahead. 46:15 46 minutes, 15 seconds Um hello sir. Uh thank you for the opportunity. 46:18 46 minutes, 18 seconds Uh sir question. Um so um we have been maintaining the AIDA margins around uh 30%. 46:26 46 minutes, 26 seconds Uh consistently. So uh if you look at other brands uh they're able to maintain around 12 to 15%. So what what is that 46:35 46 minutes, 35 seconds we are doing differently in our company uh such that we are able to maintain this margins. 46:43 46 minutes, 43 seconds Thank you. 46:54 46 minutes, 54 seconds We have got 190 plus year legacy promoters. 47:03 47 minutes, 3 seconds All these new people required to spend on marketing which I call as a cash burden. That's why their profitability 47:09 47 minutes, 9 seconds is low as compared to ours. So that is advantage to our brand, advantage to our company and blessing to our company. 47:18 47 minutes, 18 seconds Okay. 47:20 47 minutes, 20 seconds Uh sir uh but if we have to expand outside of Maharashtra uh is our brand visible I mean do we have to do more on 47:29 47 minutes, 29 seconds marketing? Uh so we have started doing that last year only I told that next year and next to next year we will spend double or triple 47:38 47 minutes, 38 seconds on the marketing this first 9 month visa is last year first 9 month we have spend double on the marketing because I know 47:46 47 minutes, 46 seconds that we are regional brand. So in Maharashtra Gujarat Karnataka we are well known very well verssed with the people but when I will go to north like 47:55 47 minutes, 55 seconds Lulu Lacnu or the Lacno high street or NCR or Gura or the Pitampura Dilli or 48:03 48 minutes, 3 seconds the Patna or the Bhuaneshwar or Jaipur or Indor I need to create awareness to 48:10 48 minutes, 10 seconds the people and I'm doing that and that is giving me the good returns also but that I will not spend Just like a mad cash burning I will not do anything. 48:22 48 minutes, 22 seconds Got it. So, so because of this do you see or do you uh expect any contraction in EIDA margins or do you expect the 48:31 48 minutes, 31 seconds same margins to continue or you see an improvement? I I I always talk about the pat only sir. Pat 48:39 48 minutes, 39 seconds only sir I will talk only about pat you will see patent consistent rank. 48:47 48 minutes, 47 seconds Okay. Okay. 48:58 48 minutes, 58 seconds Pvt. 49:03 49 minutes, 3 seconds Got it sir. Uh sir and recently uh there is a note that uh the company has 49:10 49 minutes, 10 seconds released about PNGs reva diamond jewelry. Uh if you can uh uh talk about 49:18 49 minutes, 18 seconds what are the product product mix of Reva Diamond because uh you were also you you 49:24 49 minutes, 24 seconds have recognized as a group company uh PNGs Derby. So in PNGs the do group company classification is 49:33 49 minutes, 33 seconds because of the related party transaction otherwise there is no group company kind of the thing because in Raa jewelry some 49:41 49 minutes, 41 seconds location we may start selling GI diamond jewelry also because Raa diamond jewelry 49:48 49 minutes, 48 seconds DRP it is said it will be a multibrand store also. So in some store we may sell it. It is not necessary that every store 49:57 49 minutes, 57 seconds will sell but we may sell entire to Tai city under Raa Gi fashion jewelry uh diamond jewelry. 50:06 50 minutes, 6 seconds Okay. And that will be a shopping right. No no as it is Raa is a shopping shop. 50:12 50 minutes, 12 seconds So in their inventory we may keep some affordable inventory or fastmoving inventory on which we will get commission from uh means I'm talking in 50:20 50 minutes, 20 seconds the contest of Raa. So I am saying we will get some commission from Raa. 50:26 50 minutes, 26 seconds Okay sir and one last question sir and uh so we have three formats of gurgy right one is franchise one is shopping 50:34 50 minutes, 34 seconds and one is exclusive brand store in the future or in the next report or uh anytime uh could we get the break up of 50:42 50 minutes, 42 seconds each each uh format in annual report I will give the okay sir in another two months time you 50:50 50 minutes, 50 seconds will get annual report that time you will get that okay sir okay sir thank you so much Thank you. 50:57 50 minutes, 57 seconds Thank you. We take the next question from the line of Kiran who is an indigital investor. Please go ahead. 51:05 51 minutes, 5 seconds Hello Amit G. Thank you for taking my call. Hello. Hello. Thank you. 51:09 51 minutes, 9 seconds Uh I have three questions. First one is regarding 9 karat gold. Uh this was started couple of months back. Can you 51:18 51 minutes, 18 seconds please update us in terms of how's the progress? How's the It is only 3 months back. It is started in Natri. First time it was started in 51:26 51 minutes, 26 seconds Navaratri and it is getting good response as a new product is introduced and it is that 9 karat gold jewelry is 51:33 51 minutes, 33 seconds not available in 33 SI of PNGs because it is a uh conflict of interest for their business. 51:41 51 minutes, 41 seconds Oh other than 33 location of PN Gilsons. 51:47 51 minutes, 47 seconds Okay. Okay. So it's only for exclusive or non exclusive franchisee or exclusive brand stores and I can uh tell you 1 kilo on 51:56 51 minutes, 56 seconds gross weight basis we have already sold 9 karat jelly. 52:02 52 minutes, 2 seconds Oh okay okay okay great great. Uh the second question was regarding mainboard listing. Uh last time we discussed you 52:09 52 minutes, 9 seconds mentioned that in by December January 26 we can become mainboard company right? 52:15 52 minutes, 15 seconds So can you update us on the progress of that? 52:19 52 minutes, 19 seconds So last time when we conducted meeting that uh some criteria uh got changed in uh April May 25 52:27 52 minutes, 27 seconds like uh earlier it was said previous three years positive profit means positive result. Now they are saying 52:36 52 minutes, 36 seconds minimum 15 cr rupees uh operating profit in every year. So if you calculate 21 22 52:44 52 minutes, 44 seconds 23 24 and 24 25 in that 2122 I was not having that 15 cr operating profit. Now 52:52 52 minutes, 52 seconds 22 23 23 24 25 26. So when I complete that 25 26 I will have previous three 53:01 53 minutes, 1 second year more than 15 cr rupes operating profit and I am eligible because I as it is I have got more than uh that minimum 53:08 53 minutes, 8 seconds number of shareholder right now company has got more than 2,500 shareholder more than 100 cr rupes network that criter 53:15 53 minutes, 15 seconds also fulfilled so we can get listed in main board after the declaration of 53:21 53 minutes, 21 seconds result for 31st mark and it is uh on the track we are preparing for that and you 53:29 53 minutes, 29 seconds will get it to see if everything goes correct to the regulators and everything. By September 26, you will see ourself on the mainboard. 53:40 53 minutes, 40 seconds Oh, okay. Okay. Okay. Thanks for the update. I didn't know the change. So, I was wondering whether it will happen this month or next month. 53:48 53 minutes, 48 seconds Okay. Uh and the third question again uh I will leave it to you whether you want to answer it or not. This was related to 53:55 53 minutes, 55 seconds our associate company or REA. Now the DRHP was filed couple of months back but we didn't hear anything about listing. 54:02 54 minutes, 2 seconds Now my question is purely related to GI because last time when we discussed you mentioned that REA expansion has a benefit for GGI because GGI will able to 54:11 54 minutes, 11 seconds sell our uh dillery over there as you mentioned just now also right so hence I'm interested in Raa listing. So any update on that if you can share. 54:21 54 minutes, 21 seconds So it is already on public domain that issue is opening on 24th of February and uh tentative is date is a 4th of March. 54:32 54 minutes, 32 seconds Oh okay. Okay. I didn't know that. Okay. Thanks for the update. 54:35 54 minutes, 35 seconds That's all from my my side. Uh all the best. Thank you. 54:40 54 minutes, 40 seconds Thank you. We take the next question from the line of Paris Kakar who is an individual investor. Please go ahead. 54:48 54 minutes, 48 seconds Uh thank you sir. My questions have been answered well and uh I wish you all the best for years. 54:55 54 minutes, 55 seconds Thank you. Welcome. 54:57 54 minutes, 57 seconds Thank you. We take the next question from the line of Rahul Kumar Palwal from Sheffa family office. Please go ahead. 55:05 55 minutes, 5 seconds Good afternoon sir. 55:07 55 minutes, 7 seconds Sir intellectual question intellectual question. Surely sir but I have to congratulate on excellence of 55:16 55 minutes, 16 seconds financial prudence with 70C cr of uh treasury in place industry leading 55:22 55 minutes, 22 seconds margin roc in tune of 25 to 30%. And with just uh you know uh.15% of market 55:30 55 minutes, 30 seconds share so things are going like you know dream for investor any investor. So congratulations to the team. Thank you sir. 55:38 55 minutes, 38 seconds I have four questions sir. Uh so one is uh yeah uh one is like AI is now 55:44 55 minutes, 44 seconds impacting IT jobs. Okay that is for sure and that can impact you know tier one uh tier one consumer sentiments. So how are you assessing the risk? 55:56 55 minutes, 56 seconds Uh can I put all four question or one by one I should go? 56:00 56 minutes Yes yes yes yes put all the Sure. My second question is apart from Mila are we planning any other male or 56:08 56 minutes, 8 seconds female model uh which can be a better marketing expense ROI wise probably that's second question any comment on 56:17 56 minutes, 17 seconds in-house manufacturing capabilities which which can be an added added advantage and uh are we trying with any 56:26 56 minutes, 26 seconds other metals in the jewelry and any other uh cross-selling opportunity in Raa because there the 56:34 56 minutes, 34 seconds customer will come with the higher budget in mind and the higher ticket item of GI can be you know uh sold out 56:41 56 minutes, 41 seconds there. And my last question is the snowballing impact uh where we can uh uh you know that impact is like where we 56:49 56 minutes, 49 seconds can drive the next year growth with the profit of last year. So like opening the number of stores with the profit of last few year the snowballing effect can it 56:58 56 minutes, 58 seconds be fair to assume can be played around uh 300 cr of top uh top line with the operating leverage kicking out by maybe 57:07 57 minutes, 7 seconds 2728 operating profit or operating leverage may be kicked out by uh by 2728 with the top line of 300 cr. 57:18 57 minutes, 18 seconds So that snowballing can play out like you know running the opening the new stores with the profit of last year where we don't have to dilute the equity 57:27 57 minutes, 27 seconds in other words actually. So uh you must appreciate uh that I have conserved the entire earnings of the earlier year and 57:36 57 minutes, 36 seconds that's make the treasury right now because whatever was raised in the second round of uh QIB that is first 57:44 57 minutes, 44 seconds round of QAB and second round of QAB is almost getting consumed. So whatever is remaining is a uh accur uh so 57:52 57 minutes, 52 seconds accumulated profits only of the earlier year. So those will be used for the expansion. No date will be there, no expansion in equity will be there at 58:00 58 minutes least for next 18 to 24 months. Secondly you want to know about the metals but 58:07 58 minutes, 7 seconds yes we are that 9 karat is a something kind of using other metal only because in 9 karat hardly 37% is a gold 58:16 58 minutes, 16 seconds remaining is alloys only and right now there are research going on in the industry I cannot pronounce the name of 58:24 58 minutes, 24 seconds the metal because I am in the industry so I need to keep the confidentiality of it but yes we are trying about it and uh 58:32 58 minutes, 32 seconds If successful we will definitely introduce but high polish means 58:48 58 minutes, 48 seconds resale value. 58:50 58 minutes, 50 seconds So for that we are trying but don't take any of my this statement as something concrete statement. 59:01 59 minutes, 1 second So I am this is just what is going on. 59:04 59 minutes, 4 seconds I'm briefing you without any timeline commitment. 59:08 59 minutes, 8 seconds Then Mitila for us she is reasonable for the our regional brand aspect and she's known on the web series pan India also. 59:18 59 minutes, 18 seconds So I can tell you very proudly one Sharma madam from very prominent banking sector came to us for some other work. 59:26 59 minutes, 26 seconds She said I'm not 59:37 59 minutes, 37 seconds internet savvy or the technosy I don't have even Facebook account or insta account or anything but since she has 59:45 59 minutes, 45 seconds given this compliment I said okay that means our model is okay and we are extended uh contract with her till July 59:53 59 minutes, 53 seconds 26 then again if she continue or anyone new comes we will accept it but uh your 1:00:00 1 hour question about ROI earlier also I think you was not there in queue you joined little bit late I replied that 1:00:07 1 hour, 7 seconds advertisement or marketing marketing and concept is only spent without expecting anything if something 1:00:15 1 hour, 15 seconds comes it's a bonus for us so but yes it is showing the effect because half a percent 1:00:23 1 hour, 23 seconds is improving so we can say that it is because of the marketing 1:00:31 1 hour, 31 seconds market again whether it is ROI or negative ROI I don't understand AI yes definitely the 1:00:41 1 hour, 41 seconds software industry is going to hit with the AI there will be loss of job and everything but it happens every time in 1:00:47 1 hour, 47 seconds 2005 Y2K was there or earlier 1985 to 1995 there was a threat because of computer loss of job and everything. 1:01:10 1 hour, 1 minute, 10 seconds So date changes, time changes, king changes. So we need to take it as a something new challenge. But I don't 1:01:19 1 hour, 1 minute, 19 seconds think that it will reduce the consumer's buying power drastically. Okay. 1:01:34 1 hour, 1 minute, 34 seconds Got it. Got it. Just a correction. I was not asking about replacing but adding another male or female. Yeah. Okay. Got it. Got it. 1:01:49 1 hour, 1 minute, 49 seconds It is too difficult. 1:01:53 1 hour, 1 minute, 53 seconds business 1:02:12 1 hour, 2 minutes, 12 seconds has got good response. 1:02:15 1 hour, 2 minutes, 15 seconds Got it. Got it. And any any idea about this Rava cross-selling and on this front mail side uh just give us some 1:02:22 1 hour, 2 minutes, 22 seconds innovative product like you know pulsar definitive male I'm sure this category will surprise you we have we have lot of 1:02:31 1 hour, 2 minutes, 31 seconds run by male for female righta side if you can comment cross-selling 1:02:40 1 hour, 2 minutes, 40 seconds if you excuse me I will comment because there are any number of regulatory limitations you also understand you can also understand and right now on the on 1:02:48 1 hour, 2 minutes, 48 seconds the public domain so I am restricted to talk only within the DRHP or RHP content 1:02:55 1 hour, 2 minutes, 55 seconds so I will request you to give the to your question makes sense sir thank you thank you so 1:03:02 1 hour, 3 minutes, 2 seconds much and all the best thank you thank you we take the next question from the line of Rajes Singla from BTG 1:03:11 1 hour, 3 minutes, 11 seconds Capital please go ahead uh thank you sir all my questions have been answered Thank you very much and best of luck. 1:03:27 1 hour, 3 minutes, 27 seconds I think people other people who are entering in this industry they are exploring like premium watches or premium scent or any other kind of 1:03:35 1 hour, 3 minutes, 35 seconds premium clothing as well. So any like maybe in the distant future main parent company introduced one time past 1:03:44 1 hour, 3 minutes, 44 seconds watches and we need to write off few k rupees because those watch companies are not uh 1:03:52 1 hour, 3 minutes, 52 seconds giving us stock on sale or return basis though it is a very high-risk business and cash burn business. 1:04:02 1 hour, 4 minutes, 2 seconds Yeah, great. I think I think investors are I think probably most of us are quite comfortable with the management acumen as well as their strategy for 1:04:10 1 hour, 4 minutes, 10 seconds growth. So nothing to worry on that front. It's just that it's always curious to know like what management is thinking for. 1:04:15 1 hour, 4 minutes, 15 seconds Yes, definitely. But wherever we have got already experienced, I will also explain you that we have already 1:04:22 1 hour, 4 minutes, 22 seconds experienced it instead of saying yes, we will try kind of thing. 1:04:28 1 hour, 4 minutes, 28 seconds Yeah. Yeah. Sure. Sure. Sure. Thank you very much. Thanks. 1:04:34 1 hour, 4 minutes, 34 seconds Thank you. We take the next question from the line of Anand Yalimar Shanoi who is an indigital investor. Please go ahead. 1:04:43 1 hour, 4 minutes, 43 seconds Sir, congratulations on very good numbers and great corporate governance. 1:04:46 1 hour, 4 minutes, 46 seconds Uh my first my first question is on the same uh same store growth like how has been the on the PNG side as well as on 1:04:56 1 hour, 4 minutes, 56 seconds the EBO side? How has been the same store growth sir for 9 months? At PNG side it is uh not less than 25%. 1:05:05 1 hour, 5 minutes, 5 seconds Okay. 1:05:06 1 hour, 5 minutes, 6 seconds And on eB since these are new EOS all are new. Last year 1:05:14 1 hour, 5 minutes, 14 seconds I will not say it is a two and a half time because it is not going to get repeat. Okay. 1:05:36 1 hour, 5 minutes, 36 seconds That doesn't mean there is a 200% growth or 300% growth because it's a one time 1:05:46 1 hour, 5 minutes, 46 seconds that is our experience as far as previous all things are seen. 1:05:57 1 hour, 5 minutes, 57 seconds Yes, if you go on average out the SSG will not be less than 25%. Mhm. And on 1:06:05 1 hour, 6 minutes, 5 seconds the diamond jewelry side versus the silver like how is the margin differential between these two segments and uh like you are telling that next 1:06:13 1 hour, 6 minutes, 13 seconds year the diamond jewelry proportion will go up. So like how does it impact the overall like working capital as well as the margins? 1:06:22 1 hour, 6 minutes, 22 seconds So in diamond jewelry gold component has got lower margin. 1:06:26 1 hour, 6 minutes, 26 seconds This year we got good margin because of the rate appreciation in gold. Okay. 1:06:31 1 hour, 6 minutes, 31 seconds But on diamond front there is a good margin. Making charges there is a good margin which is compensating no margin 1:06:38 1 hour, 6 minutes, 38 seconds on the gold. So overall it is matching with the silver jewelry only on a vanilla basis. uh if silver jewelry is 1:06:47 1 hour, 6 minutes, 47 seconds giving say gross margin of 55% this may be giving us 45 to 47%. Okay. 1:06:55 1 hour, 6 minutes, 55 seconds Okay. And this diamond jewelry is only sold in the eB stores or even in the PNG stores. 1:07:03 1 hour, 7 minutes, 3 seconds No no even in main stores also. 1:07:05 1 hour, 7 minutes, 5 seconds Okay. Okay. PNG store also we are selling gi diamond jewelry. Diamond j. Okay sir. 1:07:12 1 hour, 7 minutes, 12 seconds Thanks a lot for answering. Thank you. The last one. 1:07:17 1 hour, 7 minutes, 17 seconds Thank you. We take the next question from the line of Madav Malpani who is an individual investor. Please go ahead. 1:07:25 1 hour, 7 minutes, 25 seconds Hello. So, you can hear me? Yes. Welcome. Welcome. Yes. 1:07:29 1 hour, 7 minutes, 29 seconds Uh sir, congratulations for amazing set of numbers. Yes. Thank you. 1:07:34 1 hour, 7 minutes, 34 seconds Uh uh sir, I have just one question with respect to Raa and Gagi. You just mentioned that uh uh Reeva will be 1:07:43 1 hour, 7 minutes, 43 seconds selling few products of GI. Uh so just in taking an hypothetical example uh a customer walking into the store u 1:07:52 1 hour, 7 minutes, 52 seconds choosing a gi uh suppose a ring of around 40,000 and if he gets a better option at around 1:07:59 1 hour, 7 minutes, 59 seconds 60,000 of rava the same diamond ring a different so wouldn't that be an conflict of interest sir the customer 1:08:07 1 hour, 8 minutes, 7 seconds tend to go for better just a minute selling gi jewelry in raa is not my prime object 1:08:14 1 hour, 8 minutes, 14 seconds right It is a additional avenue for GI's diamond jewelry. Okay. Because GI has got its own store. GIG has got SS with 1:08:22 1 hour, 8 minutes, 22 seconds PN GI. So GI's expansion or GI's profitability or sale is not depending how REA will sell GI jewelry. 1:08:32 1 hour, 8 minutes, 32 seconds Right? 1:08:34 1 hour, 8 minutes, 34 seconds So it will be additional option available to the customer. It is not competing to each other. 1:08:49 1 hour, 8 minutes, 49 seconds That is not my prime object. My prime object in Raa store will be to sell Raa jewelry not GI jewelry. 1:08:56 1 hour, 8 minutes, 56 seconds Right. Uh right sir sir and another thing I just want to ask is there is there any strict distinction that the GI 1:09:03 1 hour, 9 minutes, 3 seconds will be holding only 14 karat and anything above 14 karat won't be included in GI? 1:09:09 1 hour, 9 minutes, 9 seconds No no 14 karat why to make it affordable. Okay. 1:09:14 1 hour, 9 minutes, 14 seconds 14 karat is not something classification. 14 karat makes affordability because gold value in that 1:09:21 1 hour, 9 minutes, 21 seconds 14 karat thing will be lesser as compared to 18 karat content or the 22 karat content. 1:09:36 1 hour, 9 minutes, 36 seconds In Raa we will be selling 14 as well as 18 as per choice of customer. Okay. So same will be applicable to GI also. Even in GI we can 1:09:44 1 hour, 9 minutes, 44 seconds no in GI we are not keeping at all 18 and 22 karat because there it's a fashion jewelry store. So it has to be affordable pocket friendly. 1:09:54 1 hour, 9 minutes, 54 seconds Okay. So with 18 karat 22 karat that pocket friendliness will get removed. Okay. Okay. Okay. 1:10:02 1 hour, 10 minutes, 2 seconds Thank you sir. Thank you. Thank you and welcome. 1:10:07 1 hour, 10 minutes, 7 seconds Thanks to all for joining and uh I will ask uh Hend to conclude the meeting. Thank you. 1:10:17 1 hour, 10 minutes, 17 seconds Thank you so much everyone for joining the meeting. I hand over the call to Ryan now. 1:10:24 1 hour, 10 minutes, 24 seconds Thank you on behalf of PNGs Gari Fashion Virtual Limited. That concludes this conference call.