Raymond Lifestyle Ltd — Q4 FY26

Raymond Lifestyle Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Ox_PahKnpww Published: 6 days ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to the Raymond Lifestyle Limited Q4 FY26 and FY26 earnings conference 0:12 12 seconds calls hosted by Motil Oswal Financial Services. 0:17 17 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:27 27 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:33 33 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:41 41 seconds Avin Karumanchi from Motila Losal Financial Services. Thank you and over to you sir. 0:49 49 seconds Thank you Shnali. On behalf of motil oall financial services, I would like to welcome all the participants to Q4 SI 26 0:57 57 seconds and SI26 conference call of Rayman lifestyle limited. Today we have with us from the senior management of Freeman 1:05 1 minute, 5 seconds Lifestyle Limited. Mr. Rkesh Diwari, group chief of financial officer, Mr. 1:11 1 minute, 11 seconds Satyaki Boss, Chief Executive Officer, Mr. E Prasad, Chief Financial Officer, 1:18 1 minute, 18 seconds and Mr. Sani Desa, head investor relations. Without taking further time, I would like to hand the call to Mr. 1:25 1 minute, 25 seconds Satyaki Go. Over to you, sir. 1:31 1 minute, 31 seconds Hi everybody, thank you for joining this call. My name is Satyaki Kosh and I am the CEO for Raymond Lifestyle Limited. 1:42 1 minute, 42 seconds Uh before we dive into our performance, it is important to acknowledge the totally volatile macroeconomic environment that we are navigating. 1:52 1 minute, 52 seconds While India remains a bright spot with GDP estimates around 6.8 to 7.2%, global headwinds persist. 2:01 2 minutes, 1 second We are closely monitoring from Raymond the US Iran conflict which has kept Brent crude prices hovering over $100 2:09 2 minutes, 9 seconds and leading to increased energy raw material prices and freight costs. 2:14 2 minutes, 14 seconds Domestically, we face the dual challenge of extreme heat waves affecting multiple states and below average monsoon forecast at 92% which may impact discretionary spending. 2:25 2 minutes, 25 seconds However, amongst all this doom, there is a silver lining. the US India trade deal 2:31 2 minutes, 31 seconds that currently looks quite open to the entire uh world and we don't have a 2:38 2 minutes, 38 seconds disadvantage. The UK India FDA and the impending Euro uh India FDA can create 2:46 2 minutes, 46 seconds significant demand recovery for our exports. It is against this backdrop of external volatility and emerging opportunities that Raymond Lifestyle has 2:55 2 minutes, 55 seconds delivered a strong performance last year. 2:59 2 minutes, 59 seconds It is my privilege to address you for the first time. And as I embark on this journey with an iconic brand that boasts 3:06 3 minutes, 6 seconds of legacy spanning over a century, I want to share the context of my leadership and what will I bring to the 3:12 3 minutes, 12 seconds table. I worked about 30 years uh in FMCG companies like General Electric, 3:18 3 minutes, 18 seconds Pepsico, L'Oreal and I worked in Indian uh groups like Spencer's retail which 3:25 3 minutes, 25 seconds was RPG and Artilla Group before joining Raymond Group. uh so I have experience 3:32 3 minutes, 32 seconds in FMCG part of the business and I also have uh experience in textiles and hence 3:39 3 minutes, 39 seconds Raymond seemed like the right opportunity where I get the opportunity to turn around a 100 year old brand and take it to its next logical growth part. 3:50 3 minutes, 50 seconds I'm also happy to introduce our new new chief financial officer EC Prasad. I'll hand over to Prasad to introduce himself before I come back to address you. 4:01 4 minutes, 1 second So uh good evening everyone and uh thank you for attending our call today. Uh this is EC Prasad. Uh I'm a professional 4:08 4 minutes, 8 seconds with about 29 years of experience. Uh prior to joining Ravens just 3 months back I was the CFO for Baj Electricals 4:16 4 minutes, 16 seconds and I also work with Voltas Limited and Imami. Uh predominantly in the FMCG FMEG 4:23 4 minutes, 23 seconds uh space. uh my focus here would be to strengthen our governance compliance and 4:30 4 minutes, 30 seconds also to build cash and improve our working capital cycles and with a improved profitability. Thank you very much. 4:40 4 minutes, 40 seconds Coming back Sachiki here once again. 4:43 4 minutes, 43 seconds FI26 has been a year of recovery for Raymond Lifestyle. Despite international headwinds, we have delivered a healthy performance driven by strong domestic consumption. 4:53 4 minutes, 53 seconds For the first time in our history, we crossed 7,000 cr recording our highest ever total income of 7034 crores and 11% 5:02 5 minutes, 2 seconds year-on-year growth. AITA for the year rose to 804 crores with a 23% year-on-year growth with an AITA margin of 11.4%. 5:12 5 minutes, 12 seconds We remain debt-free with a net cash surplus of 179 crores. Networking capital improved significantly over last 5:21 5 minutes, 21 seconds March and has come down by 10 days from 87 days to 77 days showing efficiency in the system. 5:29 5 minutes, 29 seconds Complementing the strength, our Q426 performance remained resilient. We recorded our highest ever Q4 total 5:35 5 minutes, 35 seconds income of 1810 cr a 15% year-on-year growth. AITA for the quarter rose by 53% 5:43 5 minutes, 43 seconds to 152 crores. Our AITA margin improved by 210 basis points Q over Q to 8.4%. 5:52 5 minutes, 52 seconds And we created robust cash flows and we generated close to 200 crores of net cash during this quarter. Our Q4 6:01 6 minutes, 1 second performance remains resilient and reflected sustained demand despite a challenging global environment. In our branded textile segment, revenue grew 6:10 6 minutes, 10 seconds 14% to 831 crores in Q4 driven by robust volume growth and premiumization. 6:17 6 minutes, 17 seconds EVITA for the segment grew by 126% to 115 cr on account of improved product mix, strong volume, ASP growth and scale 6:25 6 minutes, 25 seconds leverage. Branded apperal segment. Uh it is to note that our current branded apperal segment results include our emerging and new businesses. 6:37 6 minutes, 37 seconds It has been the case in the past also. 6:40 6 minutes, 40 seconds So this quarter we are keeping it the way we have been reporting but next quarter we will try to show you 6:47 6 minutes, 47 seconds separately what are we doing in emerging businesses and what are we doing in our marquee brands. The four brands which is the core apparel business of Park 6:54 6 minutes, 54 seconds Avenue, color plus Raymond ready to wear and parks. 6:58 6 minutes, 58 seconds Our new ventures are currently in strategic investment phase and it will be good for everybody to know how these 7:05 7 minutes, 5 seconds businesses are developing. The core four brands revenue was 1667 crores with aa margin of 7.8 crores which is without 7:14 7 minutes, 14 seconds these uh new businesses. So the core brands are actually quite okay at 7.8% 8% and we will endeavor to take it to 7:23 7 minutes, 23 seconds double digits over the next two years time. 7:28 7 minutes, 28 seconds So overall branded apparel the way we report today is 469 crores in Q4 with a 20% year-on-year growth. We witnessed 7:37 7 minutes, 37 seconds doubledigit like growth in retail channels of branded apparel segment. 7:41 7 minutes, 41 seconds AITA for the segment grew significantly to 19 crores and if we exclude the emerging businesses the margin was at 5.4% in Q4. 7:55 7 minutes, 55 seconds The governmenting business we saw demand recovery post the US India trade deal leading to the highest ever monthly revenue in March. We also implemented 8:04 8 minutes, 4 seconds duty paid terms for US client which helped us keep the clients with us throughout the year and now we will get the benefit of 8:13 8 minutes, 13 seconds that going into next year. The segment reported a revenue of 342 crores in Q4 FI26 as compared to 248 crores in the 8:22 8 minutes, 22 seconds same quarter previous year reflecting a growth of 38% YI. The segment reported a 8:28 8 minutes, 28 seconds EIT of 14 crores in Q4 FI26 compared to negative 7 crores in Q4 FI25 8:35 8 minutes, 35 seconds and the AITA margin for the quarter was at 4.1% which is higher than the rest of the year and is much higher than minus 8:43 8 minutes, 43 seconds 2.9% in the same quarter last year. This business is going to go forward at a fast pace next year with the UK and Euro 8:53 8 minutes, 53 seconds FTS and US India trade deal being equitable for the world. In our high value cottonman shirting the B2B segment 9:01 9 minutes, 1 second revenue grew grew at 6% to 831 cr in Q4 and AITA for the segment was 20 crores. 9:09 9 minutes, 9 seconds Now this is com you can compare it to 61 crores in Q4 last year but last year Q4 9:16 9 minutes, 16 seconds a bit of 61 crores had a 53 cr oneet one-time uh subsidy from the government for our 9:24 9 minutes, 24 seconds Amraati plant. So the base is high if you take that out then the segment has done actually better than last year's headquarter. 9:35 9 minutes, 35 seconds Now let me talk a little bit about our marketing strategy. Our new CMO Kalpana Singh has just joined in March from Hul 9:43 9 minutes, 43 seconds and she'll be leading this for us. We'll introduce her to you maybe next quarter. 9:48 9 minutes, 48 seconds Our intent is to move forward from fragmented marketing to a more connected omni channel system across the full consumer journey. Today we are executing 9:57 9 minutes, 57 seconds many initiatives, thematic campaigns, impactful ideas, digital and retail efforts. But the whole idea now going 10:03 10 minutes, 3 seconds forward is to put this in a 360deree marketing campaign and make each of our brands stand on their own feet and get 10:12 10 minutes, 12 seconds recognized separately between Park Avenue, Raymond Ready toear, Raymond MTM, Color Plus etc. This year we have advertised Raymond Linen in a big way. 10:22 10 minutes, 22 seconds We've increased our presence in high impact media like cricket and cinema. If you have watched Durandat 2, we launched 10:29 10 minutes, 29 seconds our cinema campaign with Durandat 2 and we have started building digital and influencer ecosystem. Leen is doing very well for us at the moment. 10:41 10 minutes, 41 seconds At Raymond Lifestyle Limited, we have a target-driven ESG road map. 10:46 10 minutes, 46 seconds Our emission reduction strategy runs across three levers. Renewable energy, fuel transition, and operational efficiency. All these three are active 10:54 10 minutes, 54 seconds simultaneously. On renewable energy, we are on track to increase our renewable percentage between five to 6% this year 11:03 11 minutes, 3 seconds from our baseline of FI25 and we remain on track to increase this to 25% of our total energy requirement by 2030. 11:12 11 minutes, 12 seconds on scope one and scope two emissions we are targeting to reduce we have reduced between four and 5% this year from our 11:19 11 minutes, 19 seconds baseline year of FI25 and we are on track to reduce these by 15% by 2030 11:29 11 minutes, 29 seconds the leadership transitions during the quarter marked a new chapter for the business with the recent appointment of Rakkesh Tiari as group CFO Prasad as 11:39 11 minutes, 39 seconds lifestyle CFO and myself as a CEO and I just introduced uh Kalpana as the new CMO. Raymond Lifestyle Limited is poised 11:48 11 minutes, 48 seconds to accelerate its growth agenda. The new leadership brings a renewed focus on expanding branded apperal scaling newer categories and driving operational 11:57 11 minutes, 57 seconds efficiencies across the value chain. As we enter FI27, we would like to call this the year of consolidation as we are 12:05 12 minutes, 5 seconds shifting focus from restoring sustainable profitability and we will do it through a lean and high performing 12:12 12 minutes, 12 seconds network. We plan to add a growth of about 100 EBO stores in FI27. However, 12:19 12 minutes, 19 seconds we will continue to exit underperforming stores during the year and we think the next increase would be 30 to 40 this 12:26 12 minutes, 26 seconds year. Once we stabilize then maybe year after we will see if we can go aggressive on store opening or not but that we will decide depending on the 12:34 12 minutes, 34 seconds results of this year. In terms of digital transformation our investments in S4 HANA uh that we must have been 12:42 12 minutes, 42 seconds talking about has now been implemented in the textile and home part of our business and this will modernize our 12:49 12 minutes, 49 seconds supply chain and enhance operational agility for FY27. are strategic growth pieces. 12:57 12 minutes, 57 seconds The number one piece is premiumization across all segments. 13:01 13 minutes, 1 second In suiting, shift towards wool. In shirting, shift towards linen. In apparel, shift towards the premium category of apparel. 13:13 13 minutes, 13 seconds The second lever that we are going to push is casualization. In branded textiles, we will focus on comfort first 13:20 13 minutes, 20 seconds fabrics. We will focus on hybrid blends, relaxed visual aesthetics, versatile wearability and knitwear. 13:29 13 minutes, 29 seconds In branded apparel, we'll move the product mix towards smart casuals, polos, chinos, t-shirt, cordro, denim, 13:38 13 minutes, 38 seconds etc. With our core portfolio, Color Plus is the brand that is positioned as the primary casual brand to spearhead our 13:46 13 minutes, 46 seconds casualization strategy with our remaining three brands of Park Avenue, Raymond Ray toear and parks providing robust secondary support to drive this 13:55 13 minutes, 55 seconds transition. So number one is premiumization, number two is casualization. 14:01 14 minutes, 1 second We will also go towards GTM expansion in MBOS and LFS counters in large format stores. Our apperals are doing very well 14:09 14 minutes, 9 seconds with SSPD right up with the top brand of the category and in some LSS we are the top brand. The whole idea is to enter LFSS on the casual section. 14:22 14 minutes, 22 seconds We will also work on holistic marketing campaigns as we talked about sharper brand positioning for each of our brands, differentiated communication, 14:30 14 minutes, 30 seconds prudent media selection and last night activities to drive awareness and footfall in our EOS. Our ESG commitment 14:38 14 minutes, 38 seconds would remain and we are advancing towards our 2030 goals including the 25% renewable energy target and 40% female 14:46 14 minutes, 46 seconds representation in our company. By integrating digital agility with transparent oversight, we are building a resilient future ready institution for all stakeholders. 14:58 14 minutes, 58 seconds We hope that this year of consolidation actually gives us good growth and decent profitability. 15:08 15 minutes, 8 seconds And with that, thank you very much. And we are now open for questions. 15:15 15 minutes, 15 seconds Thank you very much. We will now begin with the question and answer session. 15:20 15 minutes, 20 seconds Anyone who wishes to ask a question may press star and then one on the Tuck telephone. 15:28 15 minutes, 28 seconds If you wish to remove yourself from the question queue, you may press star and two. 15:34 15 minutes, 34 seconds Participants, you are requested to use hands while asking a question. 15:39 15 minutes, 39 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 15:48 15 minutes, 48 seconds A reminder to all, you may press star and then one to ask a question. 16:07 16 minutes, 7 seconds We will take the first question from the line of Vijay Jangir from systematics. Please go ahead. 16:14 16 minutes, 14 seconds Uh thank you. Thank you for the opportunity ma'am. Uh my first question is on gross margin. So could you please explain what caused the decline in gross 16:22 16 minutes, 22 seconds margins as we were doing 54 to 55 percentage of range in gross margins now this quarter we decline to 51 52%. So 16:32 16 minutes, 32 seconds first question on gross margin my second question is on a margin. So uh what would be our range for the coming coming 16:41 16 minutes, 41 seconds two to three years in margin and uh additional question is like uh our gross margin declined but our margin expanded. 16:52 16 minutes, 52 seconds So like manufacturing expenses went down, employee cost went down. So are these 16:59 16 minutes, 59 seconds sustainable decline or I mean just one time. So these are my two question on gross margin and ITA margin. 17:06 17 minutes, 6 seconds Thank you sir for your question. On the gross margin I think I mentioned in my uh commentary that last year in our uh 17:15 17 minutes, 15 seconds B2B RLCL luxury cotton luxury linen business we had got a 53 cr subsidy on 17:23 17 minutes, 23 seconds our Amraati plant from the government which was a one-time low. So that is in the base. If you take that out then the Q4 will look like 44.7. 17:33 17 minutes, 33 seconds It's in the ballpark and for the year including this 53 crores in the base we have still ended up at 44%. So if you remove that we will be in the ballpark. 17:43 17 minutes, 43 seconds There's no drop in gross margin. The EITA has still grown. If you look at our opex you will see in quarter 4 our 17:52 17 minutes, 52 seconds income grew 15% our opex grew 1.2% 2% and for the year income grew 11% and 17:59 17 minutes, 59 seconds opex grew 5%. Which means income grew faster and that has flown into aa. The second thing that you must recognize 18:07 18 minutes, 7 seconds here how did the opex come down as a percentage our factory utilizations which traditionally used to be between 18:14 18 minutes, 14 seconds 80 85% have all gone above 90%. There are factories uh which we have operated 18:20 18 minutes, 20 seconds at 95% plus also and this has given us a lot of scale advantage. It has given us drop in opex. It has given us scale 18:29 18 minutes, 29 seconds advantage which has flown into a so these the whole idea is that if we do a 18:36 18 minutes, 36 seconds higher turnover this year than last year then the factories should keep running at this pace and hence the opex should be sustainable and hence should hold. 18:48 18 minutes, 48 seconds The third question for you was uh the future AITA. We are not giving a guidance at this stage. Uh however uh 18:57 18 minutes, 57 seconds our idea is even in the year of consolidation to keep a double digit topline growth and a double digit bottom line growth. 19:09 19 minutes, 9 seconds Okay sir. Thank you. V do you have any further questions? 19:20 19 minutes, 20 seconds Uh no ma'am uh could you sorry sir u can please explain more on uh employee cost I mean it is currently 12.5% of the 19:29 19 minutes, 29 seconds sales in the last quarter uh last quarter of the 4 to 25 it was 15%. So what caused the decline in employee post? 19:41 19 minutes, 41 seconds Sorry, can you repeat the question one more time? Sir, it was not clear this employee cost went down in the 4K 25 it was around 15% of the 19:50 19 minutes, 50 seconds sales. This quarter is around 12 to 13% of the sales. So what caused reduction in close to absolute basis it's decline around 1.5%. 20:02 20 minutes, 2 seconds So that's what I want. So two things, one is we stay with our factory 20:09 20 minutes, 9 seconds efficiencies. When factory produces more, the employee cost per unit starts 20:15 20 minutes, 15 seconds going down and on an absolute basis because garmenting last year was not 20:22 20 minutes, 22 seconds getting a lot of orders because of US the utilization was little and their uh 20:30 20 minutes, 30 seconds labor is a little variable. So that cost got saved. Finally, as you know, we have 20:36 20 minutes, 36 seconds been for a year or so uh closing down our uh nonprofitable stores. And when 20:43 20 minutes, 43 seconds you close down your nonprofitable stores, two things happen. One is your employee cost goes down on the other hand stores that make consistent losses 20:52 20 minutes, 52 seconds if they get closed down actually your profit goes up. So you get positive effect from both sides. So we are opening calibrated stores. It's not that we have closed massive amount of stores. 21:02 21 minutes, 2 seconds What we have closed, we have roughly opened. But bad stores have gone. So that has reduced employee cost and has also increase profit by a little delta. 21:11 21 minutes, 11 seconds So you get all kinds of positive effects when you rationalize and do the right things for business. That's my answer. 21:19 21 minutes, 19 seconds Okay. Okay. Thank you sir. And uh one more question on store opening in FI27. 21:24 21 minutes, 24 seconds Could you please repeat? I mean how many store we are targeting in FI27? 21:28 21 minutes, 28 seconds So FI27 on a gross basis we'll try more than triple digits more than 100 stores but we will continue our this endeavor 21:36 21 minutes, 36 seconds which has given us very good of not so good stores we will close down so I think net basis it will be between 30 21:44 21 minutes, 44 seconds and 40 stores because this is the year of consolidation we are not doing anything dramatically different this 21:50 21 minutes, 50 seconds year and uh we will just concentrate on giving good growth and good profitable 21:58 21 minutes, 58 seconds able growth on a sustainable basis for four quarters before we embark on the next uh big journey. Just to tell you so 22:06 22 minutes, 6 seconds 100 gross and maybe between 30 and 40 net just to tell you that we are also employing one of the big consultancy 22:13 22 minutes, 13 seconds firms to build a three-year uh strategy for us. the work the job has been 22:19 22 minutes, 19 seconds awarded and uh we will start work on the strategy piece and then in three months 22:27 22 minutes, 27 seconds we will start implementing that. So this year as a consolidation year we will do all the right things in the right way 22:35 22 minutes, 35 seconds around governance around ESG around the way we do our quarter businesses in a profitable sustainable manner. Get the 22:42 22 minutes, 42 seconds store economics right get the factory economics right build our strategy and from next year we hope with a good base 22:50 22 minutes, 50 seconds we start the next level of acceleration with a very very good partner handling it with us. 22:59 22 minutes, 59 seconds Okay sir and sir in terms of u emerging and new business how much um is the run 23:07 23 minutes, 7 seconds rate in terms of these two these categories emerging and new businesses which is included in our branded apparel revenues 23:15 23 minutes, 15 seconds how much it's about uh from emerging and new business 23:26 23 minutes, 26 seconds it's more than uh more than 120 crores I think in 420 okay 23:35 23 minutes, 35 seconds keep year but the year is about 140 crores but on this 140 crores because we invest in 23:44 23 minutes, 44 seconds these businesses we incur losses so when you start looking at the four core brands if you take out roughly 125 140 23:52 23 minutes, 52 seconds crores of turnover and if you add back the losses to the profit Then you'll start seeing that the four apparel brands actually deliver between 7 and a half 8% profit already. 24:04 24 minutes, 4 seconds But it gets shaded by all this and from next quarter we will show you what is emerging what is the four core brands 24:12 24 minutes, 12 seconds and uh we will give you the history also if you want because we'll cut the data like that and we will be consistent with 24:19 24 minutes, 19 seconds that data. But right now there is about 140 crores 82 crores and with 80 crores 24:26 24 minutes, 26 seconds loss. So if you take out from the turnover 140 crores and if you add back 80 crores you will see that business of 24:33 24 minutes, 33 seconds the brands is looking not so bad as it looks right now in the reporting. Yes. Yes. 24:42 24 minutes, 42 seconds 140 cr top line gone 80 crores profit increased. It just changes the game. 24:50 24 minutes, 50 seconds Yeah, got it. Got it. 24:56 24 minutes, 56 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. 25:07 25 minutes, 7 seconds We will take the next question from the line of Deepi Kumari from Arhan Capital Markets Limited. Please go ahead. 25:15 25 minutes, 15 seconds Yeah. Hello. So I have question regarding geographical. So managing plans to reduce US dependency in 25:24 25 minutes, 24 seconds government and we can't hear you properly. Yeah. Am I audible? 25:30 25 minutes, 30 seconds Yeah but it's not very clear if you come closer to the mic or something like that. 25:35 25 minutes, 35 seconds Okay. Okay sir. So I have question regarding geographical. So management planning to reduce US dependency in 25:43 25 minutes, 43 seconds government from 65 to 50. So with this recovery in Q4 following the US India 25:50 25 minutes, 50 seconds trade deal, what why is the strategical shift towards the UK and UA is is still a priority given to a potential for higher logistical cost? 26:02 26 minutes, 2 seconds So ma'am I'll try and explain this to you. we had about 65 66% dependency on 26:09 26 minutes, 9 seconds us. Now any sane business will say that when you have high penetration in a vendor or in a customer or in a 26:17 26 minutes, 17 seconds geography you are susceptible to rude shocks. Now this is what happened to us as uh the tariffs started coming in 65 26:27 26 minutes, 27 seconds 67% of our business went into uh trouble. So we started uh this process 26:34 26 minutes, 34 seconds of expanding our geographical base and we have we were scouting in Asian markets strong Asian markets and also European and UK markets. 26:46 26 minutes, 46 seconds The advantage that we got was the UK FDA was announced and now the UFT was also announced though they not implemented 26:53 26 minutes, 53 seconds but will get implemented. So we started getting a lot of interest from these places and contrary to belief Europe can 27:01 27 minutes, 1 second give you good margins also. For example, if you look at the West Asia conflict, if you look at from Indian ports, 27:10 27 minutes, 10 seconds Navasheva, this that to the American ports, the freight cost has gone up. If you look at from these same ports to 27:19 27 minutes, 19 seconds European ports, the cost has actually come down last month. So from a freight perspective also Europe is better and 27:26 27 minutes, 26 seconds from uh you know margin perspective it is not bad and it increases my Europe FTA concentration but the US orders have 27:34 27 minutes, 34 seconds also started coming back and hence as a directional guidance I'm saying that the governmenting business next year should be good for us because US orders will 27:43 27 minutes, 43 seconds come back but we'll have incremental orders from Europe so the mix will change the margin structure will become better and hence 27:52 27 minutes, 52 seconds A top line if it grows by high double digits the bottom line will grow at a much faster pace than that in government. 28:01 28 minutes, 1 second Okay sir. And so like have you felt any recent disruption in raw material sourcing or export shipping timelines due to this US Israel Iran conflict? 28:14 28 minutes, 14 seconds As of now, no. I think when you know troubled times come, bigger companies 28:20 28 minutes, 20 seconds are more resilient to hold because we can hold some working capital. Uh our 28:28 28 minutes, 28 seconds raw material, two main raw materials come from abroad. One is wool which comes from Australia. There is frankly 28:35 28 minutes, 35 seconds no major disturbance between Australia and India. It's on the other side of the world and containers are also available. 28:41 28 minutes, 41 seconds Freight has also not moved too much. So wool there is no problem. Suiting has no problem. The only thing that comes 28:47 28 minutes, 47 seconds majorly from Europe is uh plaques for the linen and here I'm saying India to Europe and 28:55 28 minutes, 55 seconds Europe to India rates are actually slightly better in April than March. So going forward we think it'll be okay. 29:03 29 minutes, 3 seconds And all of you have seen today's headline news right that Iran and US are trying to 29:10 29 minutes, 10 seconds at least take steps forward towards opening state of Hormuz and it is all over the news today. I think stock markets are going uph because of that 29:20 29 minutes, 20 seconds and if that happens this quickly I think we will be very well positioned to take advantage of that. 29:28 29 minutes, 28 seconds Okay. Okay. Okay. And so you are also like focusing on shifting the product mix towards wool and linen across all 29:36 29 minutes, 36 seconds the segment. So what is the expected impact on your capacity and gross margin from this? 29:44 29 minutes, 44 seconds So the gross margin uh should go up because uh two things here. Number one is as you 29:52 29 minutes, 52 seconds sell more premium products directionally your gross margin should go up. However, currently there is a challenge that the wool prices are going through the roof. 30:02 30 minutes, 2 seconds Marino wool prices also flax prices are going up. We have information that this 30:09 30 minutes, 9 seconds year's crop flax is one crop a year but this year's crop is right now looking good. It gets harvested in September. So 30:16 30 minutes, 16 seconds it is on the fields right now and it is looking good. But the flax prices are also up. Now when both prices are up 30:25 30 minutes, 25 seconds then protecting margin even in a premium situation can become debatable. So on the one hand we are 30:32 30 minutes, 32 seconds going for premiumization on the other hand raw material prices are up. So we think overall we should still look at 30:39 30 minutes, 39 seconds some gross margin improvements but it may not be humongous because there are tailwinds and there are headwinds both. 30:48 30 minutes, 48 seconds Okay. answer on the celia side. I guess you are deciding to stop that. So what 30:55 30 minutes, 55 seconds about the annual drag on from this segment is about uh 31:03 31 minutes, 3 seconds 20 CR was the annual drag. uh so that we should get back but uh this year to do 31:10 31 minutes, 10 seconds that we have been we have had to take some uh provisions and uh that is evident I 31:18 31 minutes, 18 seconds think in the data that you have okay answer one last question what is the margin difference between MBO and 31:25 31 minutes, 25 seconds EBO and LFS so the best margins come in EBO because there you are D2C ma'am it is your 31:34 31 minutes, 34 seconds product it is your stored and the consumer buys directly from you. There is absolutely no doubt that for any company EBO is the most profitable 31:42 31 minutes, 42 seconds channel after which comes the MBO because in MBO you distribute and uh the 31:50 31 minutes, 50 seconds consumer buys. In LFS it is like for FMCG company modern trade LFS is like 31:56 31 minutes, 56 seconds that for us that uh the retailer is also strong and they negotiate but when they negotiate you also think that you build 32:05 32 minutes, 5 seconds brand when you go to LFS for example if you go to a shopper stop and see a beautiful 12 ft 16 ft wall of park 32:12 32 minutes, 12 seconds avenue or Raymond ready to wear or ethnics then it registers to you that this is a brand of importance more LFSs 32:21 32 minutes, 21 seconds in shopper stop lifestyle you know reliance and these kind of central these kind of LFSs keep your brand it becomes 32:30 32 minutes, 30 seconds easier to distribute in MBOS's because the MBOS's then recognize you as a bigger brand so everything has its 32:38 32 minutes, 38 seconds utility but profit wise EBO first MBO second and LFS third from a pure profit perspective 32:45 32 minutes, 45 seconds okay so sir what is the targeted revenue split between these channels 32:52 32 minutes, 52 seconds So these guidances actually we do not provide but uh if you look at there'll be a e-commerce uh piece also in there. 33:01 33 minutes, 1 second So out of offline you can imagine Ebo will be our biggest channel uh followed by MBO followed by LFS in terms of 33:10 33 minutes, 10 seconds volume because LFS are only those many in the country right MBOS's there are lot of numbers and EBO we are free to sell what we sell and how many other 33:19 33 minutes, 19 seconds doors we want to open yeah okay thank you so much thank you ma'am 33:27 33 minutes, 27 seconds thank you take the next question from the line of Ain Rash from Motila Los Financial Services. Please go ahead. 33:36 33 minutes, 36 seconds Thank you sir. Uh thank you for this opportunity. So my question was regarding the branded textile fitment which is the core cash. So if I look at 33:44 33 minutes, 44 seconds it like four years back and till now the revenues sh were barely up and the profitability has actually declined compared to the FY23 level. So I mean I 33:54 33 minutes, 54 seconds know there is break off and set things happen in between but uh how should we look this event going forward? What are the opportunities here in terms of the profitability drivers? 34:04 34 minutes, 4 seconds Sir, can you please repeat the question once more? It is not very clear on this side. Am I audible now? 34:12 34 minutes, 12 seconds Better now. 34:13 34 minutes, 13 seconds Yeah. So my question is regarding the branded textile segment which is the cash code for the company. 34:18 34 minutes, 18 seconds So if I look at the numbers from SI 23 to 26 over the last four years, uh revenue has barely gone up and the 34:25 34 minutes, 25 seconds profitability has declined. I understand that there are few [clears throat] things uh that went wrong but uh how should we look at this segment going 34:33 34 minutes, 33 seconds forward? I'm not asking for a guidance but what will be the drivers of profitability for this segment. 34:41 34 minutes, 41 seconds So branded textile as a business in India keeps growing at a 34:48 34 minutes, 48 seconds particular growth rate uh low to medium single digit. uh the business is also 34:55 34 minutes, 55 seconds moving from particular t tier of cities to the next layer of cities where the demand for uh 35:05 35 minutes, 5 seconds fabric and stitched fabric still remains. The occasion for stitch fabric 35:12 35 minutes, 12 seconds is largely around marriages and occasions and Diwali and festivals etc. 35:18 35 minutes, 18 seconds when large scale buying happens and the good piece here is that the tier one two 35:25 35 minutes, 25 seconds cities are coming back to designers and bespoke tailoring. 35:30 35 minutes, 30 seconds So more and more in cities like Bombay and Delhi you'll see designer shops opening up. They are not only the big 35:37 35 minutes, 37 seconds designers but a lot of small designers creating bespoke and that's an opportunity for fabric business. So 35:45 35 minutes, 45 seconds fabric business going going forward my take is that should keep growing in 35:52 35 minutes, 52 seconds lower single digit in volume. We will premiumize. So we will try to do value 35:59 35 minutes, 59 seconds growth higher than uh volume growth. We will also casualize like I said because people are moving from full suits to jackets. Uh they're moving to cordoy. 36:11 36 minutes, 11 seconds They're moving to you know blended material which suits them in every occasion and every 36:21 36 minutes, 21 seconds climatic condition. We will adapt to these. We will service the top-end boutique distribution. We will go to 36:28 36 minutes, 28 seconds lower town classes and as Raymond we support a large ecosystem of tailoring 36:35 36 minutes, 35 seconds which we will ramp up from this year onwards once more. Allah uh almost how 36:44 36 minutes, 44 seconds uh you know hairdressers thing was supported by some of the beauty companies. So we are going to build that. I have experience in it. I 36:52 36 minutes, 52 seconds came from L'Oreal and we changed the salon industry. We will try to do things for the tailor and try to be the best recommended brand. This is a cash flow. 37:02 37 minutes, 2 seconds Our job is to protect this. Second on the export side you know uh fabric when 37:10 37 minutes, 10 seconds you do fabric business you should also know how to do good export business because the world buys readymates but 37:19 37 minutes, 19 seconds readymates need fabric and you can do profitable business in Europe and US by exporting fabric. So we will export we 37:28 37 minutes, 28 seconds will explore that with more intensity along with our garmenting business which is pure fabric export. So we will find 37:36 37 minutes, 36 seconds the livers in lower town classes in boutique business in export businesses by premiumizing by casualizing by 37:44 37 minutes, 44 seconds working with the tailor to build this business. I believe that we will build gross margins over here and I believe 37:52 37 minutes, 52 seconds it'll come back to the older profitable uh older levels of profitability over a period of uh time. 38:02 38 minutes, 2 seconds Okay. Okay. Understood. And uh the next question is same thing regarding the branded apparel. So in this space we have a decently built at 2,000 crores of 38:11 38 minutes, 11 seconds uh brands but even if I look at it like uh the pre-indust 38:19 38 minutes, 19 seconds also it is still in the loss making so apart from the AB that you'll be trimming down going forward what are the 38:27 38 minutes, 27 seconds levers for there for this segment so our strategy remains uh consistent 38:34 38 minutes, 34 seconds number one I'll reiterate again is premium minimization and number two is casualization. Amongst the four brands, 38:42 38 minutes, 42 seconds color plus is our front runner for our casualization drive. If you look at the 38:49 38 minutes, 49 seconds consumer today, consumers are wearing like I said less suits but more jumpers, more jackets. People are wearing a lot 38:57 38 minutes, 57 seconds of knitwear. People are wearing a lot of denim. People come to office with denim. 39:01 39 minutes, 1 second So we will lead this casualization charge with color plus. We are changing the entire design system. We are putting 39:09 39 minutes, 9 seconds uh digitization and uh demand uh in design system. I don't want to use the 39:17 39 minutes, 17 seconds small uh the cliche much cliched AI word but today everybody is moving towards that and we will we are taking steps 39:25 39 minutes, 25 seconds towards building our design capabilities on AI. So we will shorten our supply chain. we will shorten the turnaround 39:34 39 minutes, 34 seconds time and we will have much better designs which will come through uh web crawling of the best of the best in the 39:42 39 minutes, 42 seconds world. So our design capabilities are going up. Color Plus will lead this charge. But if you look at brands like 39:50 39 minutes, 50 seconds Raymond Ready to wear and parks at the lower price point, but color plus more in the EBO and the more eol segment in terms of park revenue and Raymond ready 39:59 39 minutes, 59 seconds to wear our casual portfolio is right now about 15% of our total uh revenues and 40:09 40 minutes, 9 seconds uh we are still quite a formal looking brand. The whole idea is to push the limits and take it from it was 10% year 40:19 40 minutes, 19 seconds before it's 15% now to take it towards 20 25% and over a period of time aim towards 45%. Which does not mean that I 40:27 40 minutes, 27 seconds will let go of the formal segment where I'm strong. I just have to grow on the back of casualization. In the formal 40:34 40 minutes, 34 seconds segment we are making special products the non-iron shirts where you don't have to iron etc etc and we will keep 40:43 40 minutes, 43 seconds premiumizing and these are the segments that we will focus on where you know uh 40:50 40 minutes, 50 seconds the K-shaped recovery will help us with an opportunity over there. So we will 40:57 40 minutes, 57 seconds change the design system. We will force casualization. We will work on premiumization. We will improve our product quality and distribution will 41:05 41 minutes, 5 seconds keep becoming better because I talked about stores opening and stores closing. 41:09 41 minutes, 9 seconds We will be more calibrated and keep our apperal stores in the higher town classes and stop some stores which are not making so much money and not making 41:18 41 minutes, 18 seconds sense. So the mix keeps becoming better and it keeps giving us operational efficiency and we get into a virtual cycle. 41:28 41 minutes, 28 seconds No. Okay. Got it. And one last bookkeeping question. Uh so the capex for this year is around 180 crores. Can you give the break up of this and how should this number be going forward? 41:40 41 minutes, 40 seconds So the capex for the next year also would remain uh almost similar lines. 41:45 41 minutes, 45 seconds Uh so of of the 180 crores 50 crores is on account of our SAP implementation that we did. 41:52 41 minutes, 52 seconds uh about 60 crores on account of our new factory uh at the for the garmenting which you which you have in Hyderabad and the balance are all maintenance 42:00 42 minutes capex I'll join in the thank you 42:08 42 minutes, 8 seconds thank you we will take the next question before taking that a reminder to all the participants you may press star and then 42:16 42 minutes, 16 seconds one to ask a question we have the next question from the line of Mayangaswani from CDR India. Please go ahead. 42:25 42 minutes, 25 seconds Thank you for the opportunity. My first question is for Mr. Goch. Sir, it's it's still fairly early days in your tenure. 42:32 42 minutes, 32 seconds So would just like to hear your thoughts on you know what what excites you uh with this you know 100 year old brand 42:39 42 minutes, 39 seconds that that you know you are now at the helm of and you know which of the verticals uh you know whether it is the 42:46 42 minutes, 46 seconds branded apparel or the garmenting uh do you see you know holds holds a lot of potential and uh you know if if it does 42:54 42 minutes, 54 seconds even come close to potential we could possibly see doubling or tripling or more over the next 2 three years. 43:02 43 minutes, 2 seconds So thank you for the encouragement. I missed your name. Uh what's your m uh thank you very much. Uh it's almost like 43:09 43 minutes, 9 seconds a warm welcome uh to the job. Uh I'm coming from somebody who's not my boss or not from the organization. Really 43:18 43 minutes, 18 seconds happy to get the question. So I'll tell you my motivation of uh joining this uh organization. 43:25 43 minutes, 25 seconds I think when you get a chance in your life to work for a 100 year old brand 43:33 43 minutes, 33 seconds and everybody thinks even analysts like you think that there's the opportunity of doubling and tripling it. You imagine 43:40 43 minutes, 40 seconds if you're in the thick of the things and you are the guy who supposed to lead that it gives you a huge amount of 43:47 43 minutes, 47 seconds excitement energy gives you enough topics to stay awake in the night right we also know and you as analysts know 43:56 43 minutes, 56 seconds that Raymond uh have promised and always not delivered to that 44:04 44 minutes, 4 seconds expectation. So I would try to you know make promises that I can keep and I want 44:12 44 minutes, 12 seconds to be uh a person who uh really builds this with a lot of passion. Uh there's opportunity of a cultural change here. 44:23 44 minutes, 23 seconds There's opportunity of complete digitization over here. And then you imagine that you are at the helm of a 44:30 44 minutes, 30 seconds brand Raymon which arguably is a top 10 brand in India amongst Indian brands. If you ask a consumer tell me 10 brands on 44:40 44 minutes, 40 seconds the street he may say SDI I don't know he may say LIC uh I don't know he can potentially say Raymond. All of us I 44:49 44 minutes, 49 seconds think we have had one Raymond suit. All of you can ask yourself maybe your shadi suit was Raymond. Mine was for sure. So 44:57 44 minutes, 57 seconds when I got this opportunity and I thought it's a 360° revival of the brand but the brand already does 7,000 crores 45:05 45 minutes, 5 seconds already has doubledigit AITA. So it is not that you're going into a pond where you have to discover the pond. The water is there you have to clean it and make 45:14 45 minutes, 14 seconds it bigger and make it much bigger. So I think the opportunity really excited me 45:19 45 minutes, 19 seconds and hence I came from the uh vertical that you talked about. I think the 45:27 45 minutes, 27 seconds biggest opportunity for us is branded apperal last gentleman asked me that you've built a business of close to 2,000 crores. Where do you think it can 45:36 45 minutes, 36 seconds go? I think if I stay a decade and work a decade for this organization, sky is the limit. uh we should really double 45:45 45 minutes, 45 seconds down on branded apperal and build our brands make them digital make them uh make them relevant for the new age 45:54 45 minutes, 54 seconds consumer the big challenge for me would be the brand piece where uh Raymond everybody thinks it's my brand because 46:01 46 minutes, 1 second I'm quite old now I'm seeing satiki's brand earlier they used to call it uncle's brand now I am the uncle actually so I don't want to be the 46:09 46 minutes, 9 seconds target consumer for Raymond I want somebody who's much younger than me to be the target consumer and I have to create it with my marketing team and I 46:18 46 minutes, 18 seconds am really excited about it and then there are ancillary brands like AR Avenue like snakes everybody has a right to live and how do we build the brand 46:26 46 minutes, 26 seconds step by step by step I think that excites me but branded app opportunity garmenting I think huge opportunity 46:34 46 minutes, 34 seconds because nobody makes suits like us we make suits for brands that uh on this call I cannot take my customers names 46:42 46 minutes, 42 seconds but if you come and meet me someday I can tell you I can take you to my factory and show you which global big 46:50 46 minutes, 50 seconds brands that you buy suits at I don't know what prices are made by Raymond because Raymond is one of the best 46:57 46 minutes, 57 seconds organization to make suits globally soup shirts also we make well but suits you have to come to us to see how well 47:05 47 minutes, 5 seconds we make suits in garmenting so our product is fantastic our reach in US was Great. Uh we will double down on Europe 47:14 47 minutes, 14 seconds and UK and I think this business can really step up. That's my feeling. Some of the nent businesses let me talk about 47:22 47 minutes, 22 seconds our home business turned uh a bit neutral last year and it should make some money this year. 47:31 47 minutes, 31 seconds Our innerware business which we were struggling with our products are fantastic. So if you go to the market 47:38 47 minutes, 38 seconds and buy park avenue topend innerware you will see the product is as good as the runaway market leader if not better. 47:47 47 minutes, 47 seconds That's the feedback that we are getting. 47:49 47 minutes, 49 seconds So this year we will consolidate on innerware also we will clean up the system and put new product but I can 47:56 47 minutes, 56 seconds assure you that in the next two years innerware as a you know add-on to my aperal business would be another 48:05 48 minutes, 5 seconds profitable business that we start driving. So there are many many verticals that I'm very excited about. Does that answer your question? 48:12 48 minutes, 12 seconds Yes sir. Wonderful. Wonderful. So my next question is for Mr. Prasad. 48:17 48 minutes, 17 seconds Uh so sir I'm sorry if this is a repetition I just wanted to understand on the store count as we uh indicated we 48:26 48 minutes, 26 seconds will continue to rationalize the underperforming stores but you know we've seen the network now come to about 1 1650 odd stores so if this uh 48:35 48 minutes, 35 seconds continues for the next two or three quarters do we see the network dipping below 1600 or would it go as low as say 48:42 48 minutes, 42 seconds 1500 I know that's not the answer no no I I will take the question it will not dip below 1653 in a particular month 48:50 48 minutes, 50 seconds it might that I open 10 and close 15 but for the year we will open more than 100 draws and we will close in between 50 48:58 48 minutes, 58 seconds and 60 so net 40 addition will be there and at the end of next year I think you should hear a number around 1,700 49:07 49 minutes, 7 seconds and this year is about consolidation right so that is why we are not going very gung-ho but ebo like I indicated to the lady before is our most profitable 49:16 49 minutes, 16 seconds channel and we will take off on this at some point in time. We just want to be ready. We want to keep our strategy 49:24 49 minutes, 24 seconds ready. We are working with this strategy partner. We want to understand the clear uh science of opening 49:33 49 minutes, 33 seconds 90% stores that are right because everybody makes mistakes. But we will get all those pieces right and most 49:41 49 minutes, 41 seconds probably if we do decent this year then next year we will really talk about expansion but that we will see closer to 49:50 49 minutes, 50 seconds the end of this year. That's the noted noted and just one last question from my side uh you know fairly 49:57 49 minutes, 57 seconds commendable uh performance on the working capital front. So, so what uh further levers do we see to you know 50:05 50 minutes, 5 seconds take this uh even uh lower? I'm talking about the NWC days. 50:10 50 minutes, 10 seconds So, I think I think there are a lot of lot of levers especially around data. 50:14 50 minutes, 14 seconds So, we have now started our reviews uh trying to bring down our uh clamp down on the overstanding. So, all of that has 50:22 50 minutes, 22 seconds actually helped us. Uh we will also be working on the inventory and we are actually targeting less than 70 days of 50:29 50 minutes, 29 seconds working capital. Sorry. uh yeah less than 70 days of working capital in an exponential year. 50:35 50 minutes, 35 seconds So we came from 87 to 77 this year. We will target another 89 days uh to take 50:41 50 minutes, 41 seconds off uh from the working capital and give you a much happier picture next year. 50:48 50 minutes, 48 seconds This is what we attempt we would attempt but we think there are enough levers to do that. 50:56 50 minutes, 56 seconds Wonderful and wish you all the best. Thank you. Thank you sir. 51:02 51 minutes, 2 seconds Thank you. We will take the next question from the line of Ashto Joti Adita from ICC Securities. Please go ahead. 51:12 51 minutes, 12 seconds So yeah, hello. Uh thank you for the opportunity uh sir. So my question uh is on a relatively smaller business which 51:19 51 minutes, 19 seconds is Raymond Ethnics. Uh so just wanted to understand uh how is the competitive intensity there? How's the demand and 51:28 51 minutes, 28 seconds like in last one one and a half years uh like after the success of Manu uh there like uh has been sudden jump in many 51:37 51 minutes, 37 seconds regional or even smaller players who have come up in this space uh especially if you see like uh UP or Bihar market 51:45 51 minutes, 45 seconds there are many small players uh who have actually ramped up. So uh I just wanted to understand how is the overall growth 51:54 51 minutes, 54 seconds here uh and what kind of opportunities uh do you see here? 52:03 52 minutes, 3 seconds So you're right uh you know ethnics uh this shadi market 52:10 52 minutes, 10 seconds man really led it and uh kudos to them that they did and hence others have uh jumped out. the market keeps uh growing. 52:21 52 minutes, 21 seconds This market uh keeps growing. Uh and u we will participate in this growth. Uh I 52:31 52 minutes, 31 seconds think we are recalibrating like I said this year is about consolidation. So we 52:36 52 minutes, 36 seconds are recalibrating uh uh this business and we are thinking that you know where 52:44 52 minutes, 44 seconds do we have the right to succeed. There's a manuver brand which is doing well. You 52:50 52 minutes, 50 seconds are saying last one one and a half years maybe the growth is not that high for them because others have come in. 52:58 52 minutes, 58 seconds Exactly what you said in other markets local players are coming in and in this category as you would understand that a 53:06 53 minutes, 6 seconds Bengali shadi and a Punjabi shadi and a Tamil shadi and a maharashin shadi the dresses are quite different. So it is 53:15 53 minutes, 15 seconds quite difficult for a national brand to you know replicate something in their factory like a black suit and sell it everywhere. This is about customization. 53:27 53 minutes, 27 seconds So that we realize after running ethnics for some time. Hence we think that for the year of 53:35 53 minutes, 35 seconds consolidation we will concentrate on the product on two fronts. on the product we will be rather than being the 53:43 53 minutes, 43 seconds bridegroom's main brand we would be the brand for everybody else around the bridegroom. So 53:51 53 minutes, 51 seconds these are lighter products less structured but the numbers are higher and once we double down on this this is 54:00 54 minutes like kortas bundis what used to be called nhu jackets what is now called modi jacket you know those kind of stuff 54:09 54 minutes, 9 seconds we will uh really double down on them because here apart from our ethnic stores we have a right to succeed in our 54:17 54 minutes, 17 seconds the raaymon shop where you go to buy suiting shirting or my ready apparel you might want to buy a korta etc from me 54:26 54 minutes, 26 seconds and that distribution for me is given my eBio network is very solid and it is 54:32 54 minutes, 32 seconds growing so I have a right to win as a bridegroom's friends brand and I let the 54:40 54 minutes, 40 seconds bridegroom buy from the local guys who are really sitting in Bihar and know what the Bihari bridegroom wants maybe 54:48 54 minutes, 48 seconds better than me Second, I think we will also venture into Indowesterns 54:55 54 minutes, 55 seconds which are let's say Indowestern is a buntgala instead of a sherwani. We make the best suits in the world at least in 55:03 55 minutes, 3 seconds the country there is absolutely no doubt that who makes the best suits and in those factories uh banala is really a 55:10 55 minutes, 10 seconds very decorated jacket and we have a right to win on our production capabilities and design capabilities on 55:18 55 minutes, 18 seconds that. So once again it becomes a bridegroom's party's dress bun while the bridegroom may be wearing a sherwani 55:26 55 minutes, 26 seconds that is very locally designed. So we will uh get on to this and the third piece that I talked about is AI stepping into designing. 55:38 55 minutes, 38 seconds This is the next big tool for us to attack the bridegroom with heavy products. But that maybe we will do 55:47 55 minutes, 47 seconds after our year of consolidation. This year we will clean up our uh ethnics business. We will provide merchandise. 55:57 55 minutes, 57 seconds We will distribute it better through our TRS stores apart from our ethnic stores and we will attack the bridegroom's friends while the bridegroom can come in 56:06 56 minutes, 6 seconds the future. By that time we'll get our you know hyper local design sensibilities right. Does that answer your question? 56:17 56 minutes, 17 seconds Yes. Yes sir. Uh I think that is very detailed answer. Uh thank you. Thank you for that and all the best for 27. 56:24 56 minutes, 24 seconds Thank you. 56:28 56 minutes, 28 seconds Thank you. We will take the next question from the line of Dave an individual investor. Please go ahead. 56:34 56 minutes, 34 seconds Yeah thank you for the opportunity and uh congratulations on a good set of numbers. Uh so firstly on the branded 56:41 56 minutes, 41 seconds apparel segment uh wanted to understand uh how should we think about the sustainability of this uh growth momentum we have witnessed going forward 56:51 56 minutes, 51 seconds uh you believe the current growth in this uh branded apparel can sustain over the next few quarters. 56:57 56 minutes, 57 seconds The uh thank you for the question uh I think uh the directional answer is a 57:02 57 minutes, 2 seconds emphatic yes. Uh the only uh problem in India is that today people are getting a 57:11 57 minutes, 11 seconds little spooked by the West Asia war and the way the share market is going. when share market doesn't do well the 57:19 57 minutes, 19 seconds affluent class they don't lose money I don't believe they lose money they are just seeing their paper money go down 57:27 57 minutes, 27 seconds and they feel that the uh you know their conspicuous consumption should not be that much that is the only problem the 57:37 57 minutes, 37 seconds growth projections for the country which were at high 7% something high are coming down towards 6.8 6.6 Six 57:45 57 minutes, 45 seconds different agencies are talking about that. So that indicates that the conspicuous consumption comes down and 57:51 57 minutes, 51 seconds branded apparel frankly is not dal, rice uh etc. It is not essential. It is just 57:59 57 minutes, 59 seconds good to have. But most categories that we do business in uh right from my uh 58:06 58 minutes, 6 seconds you know food FMCG days to personal care FMCG days I have worked in discretionary 58:13 58 minutes, 13 seconds categories and discretionary categories in small price points actually bounces back very well because in difficult 58:20 58 minutes, 20 seconds times you don't put big investments in big uh things that you want to do but you still want to satisfy yourself as a 58:28 58 minutes, 28 seconds consumer and you buy the smaller things that give you uh happiness and hence I think branded apperal directionally will 58:37 58 minutes, 37 seconds keep growing. Uh India is urbanizing uh India is moving forward directionally and there is absolutely no reason to 58:45 58 minutes, 45 seconds believe that our growth momentum will drop. 58:49 58 minutes, 49 seconds Right. Right. So that is helpful. And uh so secondly on this governmenting business uh is there hope for this current traction to continue going 58:57 58 minutes, 57 seconds forward? Actually next year next year uh Dave uh should be much better than this year because the US thing has become 59:07 59 minutes, 7 seconds better. You has responding. Our order books are solid. Uh let me tell you that my first quarter order books are 59:14 59 minutes, 14 seconds completely full. I am doing the latter half of second quarter order booking right now. So uh our order books are 59:23 59 minutes, 23 seconds solid unless something dramatic happens in the Middle East war or uh you know US comes back with another 30 40% tariff 59:31 59 minutes, 31 seconds under some other pretext in the current business con uh situation order books are very robust and there's absolutely 59:40 59 minutes, 40 seconds nothing to worry about growth in this business. 59:43 59 minutes, 43 seconds So have the inventory levels like across our customers now normalized like could that also potentially act like as a 59:51 59 minutes, 51 seconds tailwind for us in the next two three quarters going forward or you US uh I am thinking you are still on the governmenting business the US 1:00:00 1 hour pipelines are quite good because US could not uh import from a lot of countries not only India people who got 1:00:07 1 hour, 7 seconds 35% also everything that they import the prices are going up right for the consumer there so they kept kept holding, kept holding and they kept 1:00:15 1 hour, 15 seconds selling. So their pipelines are decent right now. There is no major uh in US and US orders are coming back. Europe uh 1:00:24 1 hour, 24 seconds the markets are not great but like I said every difficulty we have seen postcoid the recovery 1:00:32 1 hour, 32 seconds always has been K-shaped. So the premium part of the market actually there is no problem where we operate in Europe uh as 1:00:40 1 hour, 40 seconds well in the domestic market. uh like I said with 6.6 6.8 7.2 to these kind of 1:00:47 1 hour, 47 seconds GDP growth numbers. You know if a brand that is not the market leader like our branded apperal we are not market 1:00:55 1 hour, 55 seconds leaders. If we do not beat the GDP growth percentage then you know you have to do it and hence I think that double digit growth should happen in brand. 1:01:07 1 hour, 1 minute, 7 seconds All right. All right. So that is helpful sir. That's all from my side. Thank you and all the very best. Thank you Dave. 1:01:16 1 hour, 1 minute, 16 seconds Thank you. We will take the next question from the line of Ojal Lal, an individual investor. Please go ahead. 1:01:24 1 hour, 1 minute, 24 seconds Thank you for the opportunity. Most of my questions have been answered. I just have one question for Rakkesh, sir. Uh he's on the call, right? 1:01:34 1 hour, 1 minute, 34 seconds Rakkesh is not there on the call. Prasad. 1:01:38 1 hour, 1 minute, 38 seconds Okay. So, I had a question that Raymond Limited has bought around 4.85% 85% of our companies stopped. So what's the 1:01:48 1 hour, 1 minute, 48 seconds rational over there and like are they planning to increase this? I think maybe Prasad can't answer this. Give your thoughts on this. 1:01:56 1 hour, 1 minute, 56 seconds Rakkesh will answer this. Maybe the next quarter when we speak you come back with this question. I'll get Rakkesh on the call. 1:02:02 1 hour, 2 minutes, 2 seconds Okay. Okay. Thank you and all the best for this year. Thank you sir. 1:02:09 1 hour, 2 minutes, 9 seconds Thank you. We will take the next question from the line of Amirish Kumar Singh an individual investor. Please go ahead. 1:02:19 1 hour, 2 minutes, 19 seconds Good evening this congratulations on your new job and wish you all the best. 1:02:26 1 hour, 2 minutes, 26 seconds I'm sure we are in safe hand. The question to you is like our corporates I'm sure you work on numbers uh 1:02:33 1 hour, 2 minutes, 33 seconds forwardlooking numbers. So what is the revenue targets that you see 3 years, 5 years and 10 years down the line? During 1:02:42 1 hour, 2 minutes, 42 seconds the call, I heard you say 10 years from now. I wish you and me both are here. 1:02:47 1 hour, 2 minutes, 47 seconds What are the numbers we are looking at at that stages? 1:02:50 1 hour, 2 minutes, 50 seconds Sir, I have done 100 days of Raymond job and I have done 88 days of the job after 1:02:59 1 hour, 2 minutes, 59 seconds taking charge. I have taken charge of 9th February. You are talking to me on 7th May 88 days and February is a smaller month if I calculate it lesser. 1:03:10 1 hour, 3 minutes, 10 seconds So difficult for me to talk about 10 year and five year turnover plans but directionally 1:03:16 1 hour, 3 minutes, 16 seconds uh in these first 90 days I have uh gone through a pitch process of the top consultants of the country and we have 1:03:24 1 hour, 3 minutes, 24 seconds finalized one of them. We will shortly announce that and they will work on our long-term strategy for us. uh we will 1:03:32 1 hour, 3 minutes, 32 seconds work together and see what are the opportunities what are the levers that we can push and how can we take this company uh somewhere another individual 1:03:41 1 hour, 3 minutes, 41 seconds investor I think said that uh can double can triple if you push the 1:03:47 1 hour, 3 minutes, 47 seconds right levers so mentally I'm there with you number-wise I'm not sure because I'm still new in this uh business though I'm 1:03:57 1 hour, 3 minutes, 57 seconds absorbing very very fast I'm totally in charge right now uh but I would like to give it some more time before I start committing these kind of numbers. 1:04:08 1 hour, 4 minutes, 8 seconds Got it sir. Uh a leading question from here uh what is the timeline we have with our consultant to come up with the 1:04:15 1 hour, 4 minutes, 15 seconds plan. Can we look at it in the next town call? 1:04:18 1 hour, 4 minutes, 18 seconds Uh most probably no because we've just finalized. So one round of cost negotiation prasad and team will do uh 1:04:27 1 hour, 4 minutes, 27 seconds and so that you are a investor in the company you don't want to us to hire a consultant at the wrong price we will 1:04:35 1 hour, 4 minutes, 35 seconds get the price rise and maybe if we start now they will start work around 20th 25th May if not 1st June because they'll 1:04:43 1 hour, 4 minutes, 43 seconds have to get a team together etc etc strategy project is also somewhere between 12 to 14 weeks and then 1:04:51 1 hour, 4 minutes, 51 seconds presentation another two weeks So let's look at 16 weeks. So June, we looking at October. Uh I think uh Novemberish we 1:04:59 1 hour, 4 minutes, 59 seconds should have a plan and start execution on it. Uh let's say third quarter. So after that maybe we can have a discussion. 1:05:07 1 hour, 5 minutes, 7 seconds Thank you Mr. G. I think directionally we are on track and hope keeping all the best. 1:05:16 1 hour, 5 minutes, 16 seconds Thank you sir. 1:05:20 1 hour, 5 minutes, 20 seconds Thank you. A reminder to all the participants, you may press star and then one to ask a question. 1:05:37 1 hour, 5 minutes, 37 seconds Thank you very much ladies and gentlemen. As there are no further questions from the participants but that concludes the question and answer 1:05:45 1 hour, 5 minutes, 45 seconds session, I now hand the conference back to Mr. Satyaki for the closing comments. Thank you and over to you sir. 1:05:52 1 hour, 5 minutes, 52 seconds Thank you ma'am. Uh to thank I would like to thank all the investors uh whether your corporates or individual 1:06:00 1 hour, 6 minutes investors for attending the call and asking uh questions uh that were very very pertinent and thoughtprovoking. 1:06:07 1 hour, 6 minutes, 7 seconds Some of the questions uh we are taking back with us. We will try to answer them in due course of time like the last 1:06:14 1 hour, 6 minutes, 14 seconds gentleman's question also. Uh we just want to assure you that a new management team from group CFO to me to your CFO 1:06:24 1 hour, 6 minutes, 24 seconds which is Raymond Lifestyle CFO your new CMO and we are right now uh on the lookout for a new CIO which hopefully we 1:06:34 1 hour, 6 minutes, 34 seconds should be able to announce uh next uh quarter. We creating a new management team. Uh we are really excited about 1:06:43 1 hour, 6 minutes, 43 seconds this 100-year-old brand and its transformation. This year will remain the year of consolidation after the year of recovery where we have recovered well 1:06:52 1 hour, 6 minutes, 52 seconds doubledigit topline growth high very high double digit 20% plus uh bottom line growth we will look at this year 1:07:00 1 hour, 7 minutes once again as a double digit growth in the year of consolidation uh bottom line should grow faster than top line uh so we will give you decent 1:07:09 1 hour, 7 minutes, 9 seconds returns uh this year and if we consolidate and build our strategy well this year then next year maybe we will 1:07:16 1 hour, 7 minutes, 16 seconds talk to you about some kind of acceleration and moving forward but thank you very much meanwhile for 1:07:23 1 hour, 7 minutes, 23 seconds remaining invested I'm Satya I have worked with big multinationals globally in Paris with L'Oreal in 1:07:31 1 hour, 7 minutes, 31 seconds Thailand with ABG in Hong Kong with Pepsi I come with the best practices from these organizations I work for 1:07:38 1 hour, 7 minutes, 38 seconds General Electric and I am really committed to turning this uh Raymond lifestyle business around along with you 1:07:47 1 hour, 7 minutes, 47 seconds know Rakkesh, Prasad, Kalpana and all of them. You are in good hands and we hope 1:07:53 1 hour, 7 minutes, 53 seconds uh we will deliver on our promises this year. Thank you very much. 1:07:59 1 hour, 7 minutes, 59 seconds Thank you members of the management. On behalf of Modila Lowal Financial Services that concludes this conference 1:08:06 1 hour, 8 minutes, 6 seconds thank you all for joining with us today and you may now disconnect your lines. Thank you.