Sai Silks Limited — Q4 FY26

Sai Silks (Kalamandir) Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Ncjcktq4lk4 Published: 15 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to the SCI Health Scalamandra Limited earnings call for quarter and year ended March 31, 2026. 0:11 11 seconds This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. 0:21 21 seconds These statements are not the guarantees of future performance and involve risks and uncertaintities that are difficult to predict. 0:29 29 seconds As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation 0:36 36 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:44 44 seconds zero on your touchtone phone. Please note that this conference is being recorded. Today on the call we have with 0:51 51 seconds us Mr. Badaj Raja, CEO and Mr. KV Ellen Sharma, CFO. I would now like to hand 0:58 58 seconds the conference over to Mr. Bharat Raja, CEO of the company. Thank you and to you sir. 1:06 1 minute, 6 seconds Thank you Vikra. Good morning everyone and thank you for joining us today for the quarter 4 and full year SI 2526 earnings conference call of SCS 1:14 1 minute, 14 seconds Kalamanda Limited. On behalf of the management team, I extend a warm welcome to all of our investors, analysts, shareholders, stakeholders who are 1:23 1 minute, 23 seconds joining on the call today. I hope all of you had an opportunity to review our financial results presentation and investor material shared with the stock 1:30 1 minute, 30 seconds exchanges and are available on our website as well. Joining me today on a call is our chief financial officer KVLM Sharma. 1:41 1 minute, 41 seconds FI26 has been an important and transformational year for Cyil Kalamanda Limited. Despite mixed discretionary demand environments and increased 1:49 1 minute, 49 seconds competitive industry intensity, uh we still delivered strong double-digit revenue growth, significant 1:56 1 minute, 56 seconds profitability improvement, sustained sustained margin expansion and also focused on our retail expansion. Before 2:04 2 minutes, 4 seconds I move into our business performance, I would also like to briefly touch upon the broader industry environment and evolving consu consumption trends that 2:12 2 minutes, 12 seconds are shaping the ethnic women's ethnic Indian market. The Indian ethnic wear and occasionled market continues to 2:19 2 minutes, 19 seconds remain structurally strong which is supported by the wedging economy, the rising disposable income, premiumization 2:26 2 minutes, 26 seconds and also the shift towards the organized retail from unorganized. One of the biggest structural drivers continues to 2:33 2 minutes, 33 seconds be the wedding ecosystem. India's wedding consumption remains highly resilient and wedding as well as the festive purchases continue to drive a 2:42 2 minutes, 42 seconds significant portion of spending across retail categories. At the same time, organized retail also continue to gain 2:49 2 minutes, 49 seconds market share across India. Consumers are more aware today. Increasingly have are preferring brands and are 2:58 2 minutes, 58 seconds trusting retailers due to the transparency that is available, better customer service, the omni channel 3:04 3 minutes, 4 seconds convenience and a larger group of retail store network that they have. We're also seeing a strong growth coming from tier 3:12 3 minutes, 12 seconds 2 and tier three cities where rising aspirations, infrastructure development and brand awareness is creating meaningful long-term opportunities for 3:20 3 minutes, 20 seconds organized ethnic retailers. From a region standpoint, South India continues to remain one of the strongest ethnic wear markets in the country, 3:28 3 minutes, 28 seconds particularly in categories such as SARS and women's ethnic wear, which aligns well with our core positioning and brand 3:36 3 minutes, 36 seconds strengths. However, the industry is also witnessing heightened competitive intensity, faster fashion cycles, 3:44 3 minutes, 44 seconds increasing digital influence which has an impact on the purchase behavior. 3:49 3 minutes, 49 seconds Overall, we remain very optimistic about the medium and long-term opportunity in the Indian ethnic retail market. The structural demand drivers for the 3:56 3 minutes, 56 seconds category remain firmly intact and we believe organized players with strong brands, deep regional understanding and disciplined execution are well 4:05 4 minutes, 5 seconds positioned to benefit from this opportunity over the coming years. 4:10 4 minutes, 10 seconds Coming to our operational performance, I will first discuss the quarter 4 performance followed by the full year 26 highlights. During quarter 4, from a 4:18 4 minutes, 18 seconds retail expansion perspective, we added approximately 24,000 square ft of retail uh addition during the quarter. We 4:27 4 minutes, 27 seconds delivered a revenue of about 419 cr representing a growth of 5.1% YI despite a relatively mixed consumption 4:35 4 minutes, 35 seconds environment across certain mature markets. Our gross margin stood at 42.08 08 compared to 41.71 last year an 4:44 4 minutes, 44 seconds increase of 37 basis points. Our fat for the quarters to the 32.65 crores compared to 13.51 crores last year an 4:53 4 minutes, 53 seconds increase of about 140% y coming to the full year FI26 performance. FI26 again was a significant year in terms of 5:02 5 minutes, 2 seconds expansion, operational strengthening and profitability. During the year we have added 13 new stores and one extension 5:08 5 minutes, 8 seconds store. Taking our total network of our store from 68 stores to 81 stores across five states, we added close to 78,600 5:18 5 minutes, 18 seconds ft² of retail space with a net retail addition of about 69,000 taking our overall retail area to about 5:25 5 minutes, 25 seconds 7 lak 85,000 ft across five South Indian states. For the full year, our revenue 5:31 5 minutes, 31 seconds grew by 13.1% to 1654 cr compared to 1462 cr last year. While the same store sales growth stood at plus 3%. 5:42 5 minutes, 42 seconds Warahmi silken wali formats led the growth majorly this year. For the full year FI26, our AITA grew by 128 basis 5:51 5 minutes, 51 seconds points to 15.76 percentage compared to 14.48 percentage last year. Despite the changing market environment, we continue 6:00 6 minutes to maintain healthy gross margins at 42.07%age, 07 percentage reflecting an improvement of 30 basis points over last 6:07 6 minutes, 7 seconds year. Our PAT for the year grew significantly to 141 crores compared to 85 crores in the previous year 6:15 6 minutes, 15 seconds representing a very strong growth of nearly 65%age. 6:19 6 minutes, 19 seconds Even after considering the onetime tax impact in the previous year, our operational pad last year was around 105 6:26 6 minutes, 26 seconds crores. Against this 141 cr pad that is achieved this year, a substantial improvement of about more than 30% of 6:35 6 minutes, 35 seconds PAT improvement demonstrated a strong operational efficiencies, disciplined cost management and overall profitability across the business. 6:46 6 minutes, 46 seconds Additionally, few other metrics such as the ROE has improved from 7.78 percentage to 11.78 percentage while the 6:54 6 minutes, 54 seconds ROCE improved from 13.7 percentage to 16.7 percentage reflecting stronger profitability and improved capital 7:02 7 minutes, 2 seconds efficiency. Overall, FI26 was a year where we successfully balanced expansion, profitability, 7:11 7 minutes, 11 seconds operational discipline and strategic investments for our future growth. While continuing to present while looking 7:18 7 minutes, 18 seconds ahead in 2027, one of the key priorities for us will be to be able to focus on walk-ins across underperforming 7:26 7 minutes, 26 seconds catchments. We have identified potential stores where the trends have softened and targeted hyperlocal marketing initiatives ac along with localized 7:35 7 minutes, 35 seconds digital and on ground campaigns. This will help us improve customer acquisition and engagement. From a 7:42 7 minutes, 42 seconds merchandising standpoint as well, we are undertaking detailed assortment correction initiatives to improve alignment between stock mix as well as the consumer demand patterns. 7:55 7 minutes, 55 seconds Thank you. And I now wish to open the forum for questions and answers. 8:03 8 minutes, 3 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. 8:14 8 minutes, 14 seconds If you wish to remove yourself from the question queue, you may press star N2. 8:20 8 minutes, 20 seconds Participants are requested to use handsets while asking a questions. 8:25 8 minutes, 25 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 8:51 8 minutes, 51 seconds No. 8:54 8 minutes, 54 seconds The first question is from the line of Rahul Jane from Credence Wealth. Please go ahead. 9:00 9 minutes Thanks for the opportunity. Am I audible? Yes, you are. Yes, sir. You're able. Yeah, sure. Yes. Yes. 9:07 9 minutes, 7 seconds Thanks for the opportunity. So, sir, a couple of questions my friend. First of all uh so how do we look at growth for 9:14 9 minutes, 14 seconds the next year in terms of net square fit addition and also SSG given in the previous call we had mentioned that we 9:22 9 minutes, 22 seconds have a strong wedding season right up to one more quarter so somewhere at this quarter also the wedding season must 9:29 9 minutes, 29 seconds have been good till now just to understand how do we look at the next fair addition and overall SG so whereby 9:37 9 minutes, 37 seconds what kind of revenue growth we are looking for FI27 That is my first question. 9:44 9 minutes, 44 seconds Sure. See, in terms of revenue addition, I think last year we have added close to 75 78,000 close to about um 10% of retail addition is what we have added. 9:55 9 minutes, 55 seconds And this year we we we tend to actually plan a little bit more aggressive store expansion. We have identified potential 10:04 10 minutes, 4 seconds locations and the pipeline is uh more streamlined and solid this year. 10:08 10 minutes, 8 seconds Therefore, we should be able to expect at least 20% more than last year squared 10:15 10 minutes, 15 seconds edition easily. Um, however, I think uh probably after H1 if there's something else and additional stores might come up, I'll I'll keep you posted. But at 10:24 10 minutes, 24 seconds least for now, we should be able to expect at least 20% more than last year square addition. Now, with that in mind, I think uh yes, sorry. 10:33 10 minutes, 33 seconds No, no, sorry. This was net addition, right? 10:36 10 minutes, 36 seconds Yeah. See generally we don't we our net addition and the overall addition is same just in this finan this quarter we 10:44 10 minutes, 44 seconds have reduced the capacity we did not close down any stores we have reduced the capacity in one of our stores and therefore that negative 9,000 square ft 10:53 10 minutes, 53 seconds is there that's the first time I'm actually talking about the net retail addition otherwise it's always the same thing we don't have any uh store uh 11:01 11 minutes, 1 second closures that we anticipate uh in this year but again uh overall to answer your question in short. Yes, the net square 11:08 11 minutes, 8 seconds ft addition in this year will be in the range of 100,000. 11:14 11 minutes, 14 seconds On the SSST front, uh the way we look at is we generally look at the wedding calendar. Uh the wedding calendar is 11:22 11 minutes, 22 seconds positioned comfortably this year. Uh there could be a small shift between quarter. Uh but overall the number of wedding dates wise uh seem to be 11:31 11 minutes, 31 seconds healthy. Um this is again spread between four quarters of Q1 and Q Q2 Q Q3 Q4. Uh so we do anticipate a similar to a 11:40 11 minutes, 40 seconds little bit better SSG numbers than we've achieved this year. U so that's with respect to our SSSG front. And to your 11:48 11 minutes, 48 seconds third question on the revenue guidance, I I don't think um with the proper stores that we are going to open uh 11:55 11 minutes, 55 seconds it'll be difficult for me to give you a revenue guidance uh right now because I as I did tell you we are aiming at 100,000 but uh there could be chances 12:04 12 minutes, 4 seconds where we we might end up opening a little bit more as well. Now keeping that in mind our revenue targets will will not have a right number if I can 12:12 12 minutes, 12 seconds give you a number right now but broadly if I have to give you it should be more than the guidance that we have more than what we achieved last year 2526. 12:22 12 minutes, 22 seconds Yeah. And so with regards to the productivity at addition ex existing stores uh so typically uh we were 12:30 12 minutes, 30 seconds targeting because Tamil Nadu has all the Vamal Lakshmi stores uh and we understand is one of the best formats in 12:38 12 minutes, 38 seconds terms of the growth. So if we look at Tamil Nadu today the average square feet for the entire year is roughly around 32,300. 12:48 12 minutes, 48 seconds Uh so how do we look at this number for the coming quarters? Because last two three quarters it has somewhere been in the region of 95 to 98 crores. 13:03 13 minutes, 3 seconds Uh I mean I mean uh see overall Tamil Nadu averages are slowly picking up. Uh see the point here is uh tier 1, tier 2, 13:11 13 minutes, 11 seconds tier three, tier four. Tamil Nadu is one state that have split between all four tiers of stores. uh it definitely will 13:18 13 minutes, 18 seconds improve uh but uh it will not be a significant improvement. I think y you should be able to see about 5 to 10% kind of an improvement uh slowly. 13:27 13 minutes, 27 seconds However, I think these mature stores when they come into maturity levels, I think this will ignite the process a little bit sooner. 13:35 13 minutes, 35 seconds Okay. And last question. 13:38 13 minutes, 38 seconds Yeah, sure. And the last question uh so uh gross margins we have done reasonably quite well. uh we have been able to 13:46 13 minutes, 46 seconds maintain somewhere near 42% gross margins. Uh just this quarter your AITA margins in spite of having 42% plus kind 13:55 13 minutes, 55 seconds of gross margins our EITA margins have been around 15% only or it's around 14.6 primarily due to the increase in employee cost and the uh other expenses. 14:07 14 minutes, 7 seconds So within those two buckets anything to read in terms of some kind of one-offs for and going forward do we look at a 14:16 14 minutes, 16 seconds similar kind of quarterly run rate for these expenses. 14:20 14 minutes, 20 seconds See on the gross margin side I think I have to give you this year we have taken it as a very serious note. One of the 14:27 14 minutes, 27 seconds top uh high priority KPIs for us is to maintain the gross margin irrespect of the fact we're coming with the newer formats and lesser gross margin stores. 14:37 14 minutes, 37 seconds We have done a lot of activity around the improvisation in terms of gross margins in terms of vendor discounts and therefore we were able to maintain the 14:46 14 minutes, 46 seconds gross margins at this level despite all these changing economics. Right? But when you talk about the EITA percentages 14:53 14 minutes, 53 seconds in quarter four there are broadly two heads where our expenditure head the other expenditure majorly driven by 15:00 15 minutes advertisement cost. So advertisement cost um we have been um um reducing advertisement cost and we have been 15:09 15 minutes, 9 seconds split that between last year and this year if you look at Y our advertisement cost reduced by almost like about 10 cr 15:16 15 minutes, 16 seconds rupees. So uh this is a assertive cost exercise that we have done and some of the expenditure fell into Q4. Uh 15:25 15 minutes, 25 seconds secondly one more thing is the employee cost. I think on the employee cost side if you look at a store opening profile 15:32 15 minutes, 32 seconds majority of the stores even in the 78,000 square ft almost close to 50% to 55% of our stores opened between 15:40 15 minutes, 40 seconds December 15th and March 15th. Therefore, uh a a significant employee cost added 15:47 15 minutes, 47 seconds to this. That's number one. And on the employee cost front also, there are other factors such as there's uh bonuses 15:54 15 minutes, 54 seconds as well as the um the labor code impact to a certain extent. All of this is where the IITAs actually took a uh 16:03 16 minutes, 3 seconds beating in the quarter 4. Otherwise, we should be able to um um expect an EIT 16:10 16 minutes, 10 seconds decent AITA about the fullear year plus at least 50 basis points in the next year. 16:17 16 minutes, 17 seconds If I may add Rahul here that Q3 and Q4 will have a slight increase in respect 16:24 16 minutes, 24 seconds of personnel cost on account of issue of bonus. uh in one area we will 16:31 16 minutes, 31 seconds give in Q3 and one area we will give in Q4. Labor code commitment is a 16:38 16 minutes, 38 seconds continuing process. So that will be there uh in the same length as it is 16:44 16 minutes, 44 seconds today and Q1 Q2 we will not have that bonus thing uh bonus expenditure that 16:52 16 minutes, 52 seconds will be there. So the if we are working out any variation variation to the extent of bonus will be 16:59 16 minutes, 59 seconds or lesser personal cost on account of bonus should be there in Q1 and Q2. 17:06 17 minutes, 6 seconds Sure. Uh thank you so much sir. Quite helpful and wish you all the best. Uh look forward to the 100k plus square edition going. 17:16 17 minutes, 16 seconds Thank you. 17:19 17 minutes, 19 seconds Thank you. Next question is from the line of Bala Murle Krishna from Oman Investment Advisor. Please go ahead. 17:28 17 minutes, 28 seconds Uh hi good morning. So first of all uh uh regarding this uh taxation issue uh 17:35 17 minutes, 35 seconds recently updated that uh income bank department we off this uh taxation demand from the promoter. 17:43 17 minutes, 43 seconds about the 50 crores sum and but when it comes to company taxation issue so there is a 21 crores demand I immediately paid 17:51 17 minutes, 51 seconds that so why why would not appeal that the company side how they 17:59 17 minutes, 59 seconds agreed to off this 51 cration from the promoter side could you please explain 18:07 18 minutes, 7 seconds the contention on which they have raised a demand was wrong. I mean we cannot go 18:14 18 minutes, 14 seconds into nitty-gritty of what all has happened but uh they have taken a contention which was not tenable at that 18:21 18 minutes, 21 seconds point of time. So we went for an appeal and uh during the appeal was allowed and 18:28 18 minutes, 28 seconds finally the liability on the promoter came to around 50 lakhs plus or minus and the 18:35 18 minutes, 35 seconds other thing was dropped because the contention of the original assessing officer itself was wrong. 18:44 18 minutes, 44 seconds So but why why we haven't played in the first company tax man 18:52 18 minutes, 52 seconds company aspect is in fact uh in a closed chapter last year itself. 18:59 18 minutes, 59 seconds So I having uh came to the I mean I have uh extensively explained about uh the uh 19:08 19 minutes, 8 seconds company's taxation where we have agreed uh because uh we have given advances to 19:15 19 minutes, 15 seconds the employees during the covid period and then we waved it off initially keeping them as advances. 19:24 19 minutes, 24 seconds the uh income tax people have taken uh uh that it is to be read back and then 19:30 19 minutes, 30 seconds we have agreed for that. In respect of uh liability of the promoter, it's entirely a different issue involving 19:40 19 minutes, 40 seconds some personal intercede transaction between the promoter group and then uh they have 19:46 19 minutes, 46 seconds taken a wrong contention and gave the demand on which the promoter group have 19:53 19 minutes, 53 seconds gone in for an appeal and it was allowed. 19:56 19 minutes, 56 seconds So both sides it was reasonably ended as of now and the matters are fully closed by now. 20:02 20 minutes, 2 seconds I think the company side I think last year Q4 itself the matter ended and therefore the tax provisions have been made. Um um that that that's like Q4 of 2425. 20:16 20 minutes, 16 seconds Uh yeah that we know that one already are made and paid the question of the 20:24 20 minutes, 24 seconds investor community is um raising concern about how this 50 cr is negotiated and how the 20 cr is paid immediately. So 20:32 20 minutes, 32 seconds there is a concern that's as I did mention the whole point was transactions between the promoter group and family 20:40 20 minutes, 40 seconds members. uh I think I think we did explain again but probably if at all you need uh a detailed explanation on this I 20:47 20 minutes, 47 seconds can probably give you uh uh separately but broadly the condition the case here is there has been some transactions 20:55 20 minutes, 55 seconds during the family trust creation from the promoter group site. So right now all the shares currently that you see from the promoter group majorly are 21:02 21 minutes, 2 seconds parked under the family trust. During this entire transaction process, there has been some assets that have been moved between the promoters and 21:10 21 minutes, 10 seconds therefore the uh the the income tax authorities have highlighted that and I have marked against a demand notice. Now all of that we had a proper 21:19 21 minutes, 19 seconds representation made to the government I mean made to the department and therefore they have waved it off and they've kept a nominal notice of about 21:27 21 minutes, 27 seconds 25 to 50 lakhs rupees that is what supposed to be paid that has been taken care of. 21:34 21 minutes, 34 seconds If it's our contention is accepted and the demand dropped. Yeah. 21:39 21 minutes, 39 seconds There is no Is that clear? Okay. 21:43 21 minutes, 43 seconds Yeah. Yeah. Fine. Fine. So secondly on this uh the uh slow down in the growth rate in Q4 and it's almost flattish 21:52 21 minutes, 52 seconds about Q3. Uh usually Q3 will be higher because but this time it's not much like that. So is it uh uh the more volley 22:01 22 minutes, 1 second stored in the last two quarters is it contributing for this slowdown because the volume is below and any other factor or something? 22:11 22 minutes, 11 seconds Not necessarily. If you look at Yeah. So if you look at in terms of our revenue contribution between H1 and H2 22:19 22 minutes, 19 seconds we are still ideally it is like between 45 to 55 in that range it moves. And if you look at this year number 2526, it 22:28 22 minutes, 28 seconds moved between 51 and 49 which is which looks like as if having a a decent uh 22:35 22 minutes, 35 seconds growth that we had. Um nothing particular with respect to wisils. It's it's just that uh the the factors the 22:42 22 minutes, 42 seconds overall factors which is geopolitical factors could be the consumption factors could be in the month of late January to February there has been some slowdowns 22:51 22 minutes, 51 seconds in in in the overall consumption pattern and that's what has caused us to this kind of a plus 5%. Um um otherwise 22:59 22 minutes, 59 seconds otherwise one more reason why we we we had a little bit of less of a growth here is because our store additions 23:06 23 minutes, 6 seconds again even in Q4 the two stores the 25,000 ft² again came between March 10th and 15th uh if at all we would have 23:14 23 minutes, 14 seconds gotten a chance to open in maybe Jan or February a significant revenue contribution would have been added overall but it is just that the 23:21 23 minutes, 21 seconds alignment of the store opening date happened to be at the late of the quarter 4 and therefore that particular store opening revenue and you didn't actually contribute to the overall topline. 23:33 23 minutes, 33 seconds Okay, understood. So, and regarding this new store opening suppose 85,000 or 90,000 square ft. So what could be the 23:41 23 minutes, 41 seconds between the formats some rough number how many how many and uh see at this point of time giving an 23:50 23 minutes, 50 seconds exact number on the formats could be difficult but again baramahakmi kalamander wii are the format that will 23:56 23 minutes, 56 seconds lead the expansion for us we we we still don't plan to add any km stores it's just going to be vamaha 24:05 24 minutes, 5 seconds kalamandra and wi stores that will lead the overall expansion that uh we anticipate in this financial year 24:15 24 minutes, 15 seconds and and and we hopefully plan to I mean we hopefully plan to uh pivot into new state this financial year. 24:26 24 minutes, 26 seconds Thank you. Next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead. 24:33 24 minutes, 33 seconds Yeah. Uh thanks for the opportunity sir. 24:35 24 minutes, 35 seconds uh can you give us the you know format wise make up of sales for FI 26 and 25 as well 24:49 24 minutes, 49 seconds normally format wise sales are something that uh dissemination of the information is uh detrimental to the interests of 24:57 24 minutes, 57 seconds the company uh broadly uh broadly did around So 52% of the 25:06 25 minutes, 6 seconds 2% of the overall thing. So the component of Waral Lakshmi is increasing in the overall pie. Uh 25:14 25 minutes, 14 seconds how much did you pay for VML? How much at percentage of sales? It's about 52%. 25:21 25 minutes, 21 seconds Okay. Okay. Okay. And KM if you can talk about like KM how much decline have we seen in uh in this financial year? 25:33 25 minutes, 33 seconds No. So KM I think the decline has been around low single digit are going about 3% or so uh with the overall decline for 25:42 25 minutes, 42 seconds KM format and um the action plan we are we are working on the action plan as well and one of the store reductions 25:49 25 minutes, 49 seconds that we have done from uh this net retail addition I think 9,000 ft² of scale reduction uh we have done to to be 25:57 25 minutes, 57 seconds able to like you know uh have have have improved margin and improved profitability from that store. Um, and 26:05 26 minutes, 5 seconds these are the factors why KM has shown a decline. Uh, otherwise the plan for us this year again we'll be able to like you know continuously change these 26:13 26 minutes, 13 seconds product mix and still be able to achieve a a positive SSG growth on KM front. 26:19 26 minutes, 19 seconds Sure. Sure. on you know uh on the statewide sales if you look at it you know our two major states you know 26:27 26 minutes, 27 seconds Telangana Andra you know haven't seen growth in fact Telangana FI23 we did 600 crores of sales and FI26 we are at 500 26:36 26 minutes, 36 seconds cr andra 443 and we are ending this year with 474 of course there there would have been an impact of km on this sales 26:45 26 minutes, 45 seconds but you know broadly uh these two states have been significantly underperforming for One of the states which was doing 26:52 26 minutes, 52 seconds well for us because of the new addition of stores was Tamil Nadu but Tamil Nadu also in last two quarters we have 27:00 27 minutes started seeing uh a bit of flattening out as well as decline in sales in Q4 and we're saying Tamil Nadu we shall not 27:08 27 minutes, 8 seconds be expecting uh you know more than 5 10% of over growth for FI 27 also without 27:14 27 minutes, 14 seconds any store addition. So you know uh what are we doing to you know at least uh uh 27:22 27 minutes, 22 seconds increase the scale sales from uh Telangana Andra there is one thing on addition of net square feet but our SSSG 27:30 27 minutes, 30 seconds has to increase significantly for us to improve our profitability as well as uh you know uh see higher growth rates. 27:40 27 minutes, 40 seconds Um see I I I I I do agree that you know Telangana has been a slower growth and this is majorly on account of scale and 27:48 27 minutes, 48 seconds but uh all the other formats seem to add growth. I think even if you look at AP it's grew by almost 15%. Karnataka grew 27:56 27 minutes, 56 seconds by 27% and these these these growth is is driven by majorly uh square feet addition. uh but on the SSSG's fronts 28:06 28 minutes, 6 seconds particularly I think because of the KM format we have been seeing some um dip because majority I think more than 60% 28:13 28 minutes, 13 seconds of our 60 65% of our stores of KM is located in Telangana um so so so that's 28:20 28 minutes, 20 seconds that's the impact of that I think uh we are doing we have having plans on the KM front to be able to revive that to still 28:27 28 minutes, 27 seconds be able to deliver a positive SSGS apart from just the KM front all the other formats are continuing to deliver a 28:36 28 minutes, 36 seconds positive growth both on the SSSG front as well as on the store retail addition front. The reason why you not seeing a 28:44 28 minutes, 44 seconds significant jump is all the new stores that are coming up are not based out of in Telangana majorly are getting added 28:52 28 minutes, 52 seconds in outside of Telangana and those are the ones that are contributing to the overall revenue. So uh uh again in this 28:59 28 minutes, 59 seconds year we did add like a few stores in AP and Telangana and those stores have not had a full run of operations and once 29:06 29 minutes, 6 seconds they run probably they will also start adding these are format stores. 29:11 29 minutes, 11 seconds Sure. So if you can give me you know for Telangana and Andra particularly what would be the warm lakmi SSSG in this in 29:20 29 minutes, 20 seconds this states Telangana Andra Telangana and Andra 29:30 29 minutes, 30 seconds I think it should be in the high single digit number okay so at least uh VML uh continues to see decent SSG in Telanga Yeah. Yeah. 29:42 29 minutes, 42 seconds Definitely. Yes. High single digit number overall is what is there and I think similar trends will be in AP Telangana as well. Uh yes, you're right 29:48 29 minutes, 48 seconds on that. Sure. And then on the new uh you know uh new for uh new square 29:55 29 minutes, 55 seconds edition of 100,000. Uh of course you are saying you know we'll be expanding in VML Wii and uh Kalamand but if you can 30:03 30 minutes, 3 seconds give us you know where in which states will this expansion come? So and you know which 30:11 30 minutes, 11 seconds new state I think we we had talked about entering Mumbai and Maharashtra particularly. So so if you can broadly 30:18 30 minutes, 18 seconds give where will this new uh addition come and how will that have an impact on our margins given you know we are 30:26 30 minutes, 26 seconds entering the new stage there will be some higher uh advertising expenses store opening expenses and other things 30:34 30 minutes, 34 seconds which will come as we as we enter new states. 30:38 30 minutes, 38 seconds Uh so far with the stores that we have in pipeline, majority of our stores are coming in Karnataka. Um and Kalamandra 30:45 30 minutes, 45 seconds format uh in in Karnataka is the one which is leading this expansion front. 30:51 30 minutes, 51 seconds However, there is a new format that are going to come up which is Vahalakmi Silks in in in in inra and in Tamil Nadu as well. We have a few 31:00 31 minutes stores which are lined up with Vahalah as well. 31:04 31 minutes, 4 seconds So on the margin profile it will not have much of an impact. Okay, Valaki and Kalamand do have a little bit of a margin profile difference but overall 31:12 31 minutes, 12 seconds the still the goal for us is to be able to maintain similar margins without having an impact overall gross margin size. 31:22 31 minutes, 22 seconds But I think there could be some more additions of the stores coming in which I could probably be able to comment 31:29 31 minutes, 29 seconds probably at H1 ending um to give you a little bit more clarity in terms of the uh newer square feet that comes up. But 31:37 31 minutes, 37 seconds at this point of time it'll be Kalamand it will the state that will lead the expansion is Karnataka. To your question 31:43 31 minutes, 43 seconds of Maharashtra and other zones uh yes uh we are in advanced stages. I think probably this year you should be able to see at least one store outside of our core markets. 31:54 31 minutes, 54 seconds And so last question on you know our H1 outlook for this year. If you look at last year Q1 and Q2 were pretty heavy. 32:03 32 minutes, 3 seconds Uh you know we saw some Q1 because of uh Q1 FI25 having a low base. uh we had a 32:10 32 minutes, 10 seconds very good Q1 and uh Q2 also because of uh early Diwali and the sher this year we had a very good Q2. So given the 32:19 32 minutes, 19 seconds highways of uh you know first half in this in last financial year how should we look at the growth for this financial 32:26 32 minutes, 26 seconds year will we be able to grow at least 10 15 10 12% or uh you know we'll have higher sales in the second half uh 32:35 32 minutes, 35 seconds compared to uh H1 as we had seen in last year. Okay. 32:40 32 minutes, 40 seconds See, I think um this year I think H2 should lead than H1. Um there are a 32:47 32 minutes, 47 seconds couple of reasons why. Uh the first is I think Dashara is now moved back to Q3 instead of Q2. Um and and and two uh 32:56 32 minutes, 56 seconds there's some in in in Q1 there's some slowage in terms of the adikas that is going to kick in uh which is going to 33:04 33 minutes, 4 seconds start in probably like about uh four five days and it lasts till mid June um and and but but the point here is when 33:12 33 minutes, 12 seconds you look at the wedding date calendar right I think um the days more or less are spread out uh what I'm trying to say 33:19 33 minutes, 19 seconds is like it still does have a evenly spread out calendar And keeping all of that in mind, whatever is maybe the 33:27 33 minutes, 27 seconds slowest that we can see in probably 1 month here should probably be moved to Q2. Uh this is the kind of uh movement 33:34 33 minutes, 34 seconds that could happen, but overall the growth should be evenly spread out between H1 and H2. And this year I'm I'm 33:42 33 minutes, 42 seconds I'm expecting that H2 should be better than H1. 33:46 33 minutes, 46 seconds In in April, how how much growth have we seen compared to last year? 33:56 33 minutes, 56 seconds If you're talking about April, April I think April was about uh low singledigit positive overall. 34:03 34 minutes, 3 seconds Okay. Okay. Okay. Thank you. Yeah. Thank you. Thank you. 34:10 34 minutes, 10 seconds Thank you. Next question is from the line of Nan Jane from Fair Value Equity Advisory. Please go ahead. 34:17 34 minutes, 17 seconds Yeah. Thank you for the opportunity. Uh so uh my first question is on the depreciation expense. Uh it has gone 34:25 34 minutes, 25 seconds down meaningfully this quarter. So are we looking at smaller formats lately or some asset like expansion? If you could clarify that 34:34 34 minutes, 34 seconds the depreciation uh includes the I mean uh 116 as 1116 workings. 34:45 34 minutes, 45 seconds So because some of the uh um some of the leases will expire long-term leases will 34:53 34 minutes, 53 seconds expire and some new ones with a small store format will come with an extended uh 35:01 35 minutes, 1 second uh lease period that so it is mainly on account of uh the 35:09 35 minutes, 9 seconds leases AS116 workings that it has come down slightly. 35:17 35 minutes, 17 seconds Two of the major leases have expired. Um and uh obviously when uh the lease 35:25 35 minutes, 25 seconds period is uh extended uh we have a extended lease period and then one lease period expires and the other kicks in 35:33 35 minutes, 33 seconds the calculations depending on the calculations there will be a change in that. 35:40 35 minutes, 40 seconds Right? So how do we see it uh in FY27? 35:43 35 minutes, 43 seconds Should they go back to normal or it will be the same for this period and 35:49 35 minutes, 49 seconds but during during the year we will be contracting for further 35:58 35 minutes, 58 seconds uh stores. No when I when we contract for the further stores the right of use of assets and thereby the depreciation 36:06 36 minutes, 6 seconds there on will be kicking in in that right it's not a 36:16 36 minutes, 16 seconds go ahead go ahead no it's not a owned premises no so 36:23 36 minutes, 23 seconds everything goes by the lease lease rentals lease periods and then 36:29 36 minutes, 29 seconds uh the workings on. So obviously when we are targeting 36:36 36 minutes, 36 seconds one lakh square ft further in the during the year FI27 there is there should be an increase in 36:44 36 minutes, 44 seconds the depreciation part and regarding the margins uh you 36:51 36 minutes, 51 seconds mentioned that uh there was an impact of the bonus payout in Q3 and Q4 uh would it be possible to quantify the impact 36:59 36 minutes, 59 seconds the bonus impact It ranges I think Q4 we seem to disperse 37:06 37 minutes, 6 seconds about four four crores uh bonus. We spread it over the year some in Q3 some 37:15 37 minutes, 15 seconds in Q4 and the in fact during the quarter was to the extent of about four crores. 37:23 37 minutes, 23 seconds Okay. No. So in terms of basis points how much would it be? 37:30 37 minutes, 30 seconds Basan does that answer your question? 37:47 37 minutes, 47 seconds Uh no I have a few more questions. Yeah. Go ahead. Hello. 37:52 37 minutes, 52 seconds Yes. Yeah. So in terms of the wedding calendar, you mentioned that the dates are spread out evenly, but what about the absolute number of wedding dates 37:59 37 minutes, 59 seconds throughout the year, are they the same or uh is there any difference? 38:04 38 minutes, 4 seconds Okay. So to answer your wedding dates calendar, I think in terms of the absolute number, we have around extra 38:11 38 minutes, 11 seconds dates than compared to last year. Um um so so yes, I think more than 5 to 10% of extra dates is what we have compared to last year. 38:22 38 minutes, 22 seconds Great. And uh regarding the revenue outlook for FI27, you mentioned that it will be uh better than FI26. 38:30 38 minutes, 30 seconds Uh if you could clarify like FI 26 we have done 13% or so revenue growth. So should we be between 15 to 20% or 20 25%. 38:40 38 minutes, 40 seconds The reason why I'm unable to give you a number is on the SSG front we should be able to similar to a little bit better than last year which is more than 3%. On 38:49 38 minutes, 49 seconds the revenue group front from the way we stand it's all coming down to the net I mean total retail square feet addition that we are able to do at this point of 38:58 38 minutes, 58 seconds time we we we seem to have a healthy uh square feet opening uh openings which is spread between Q1 Q2 Q3 Q4 keeping that 39:07 39 minutes, 7 seconds in mind is why I said that we will have a better um number compared to the last year kind of a number but uh the the reason why I'm not able to give you a 39:15 39 minutes, 15 seconds number is because um I I should still plan for exactly how much square feet and that's why I said I I'll probably give you be able to give you this number 39:24 39 minutes, 24 seconds at the end of H1 where I'll have a visibility for the number of stores that I will be able to open till March 39:32 39 minutes, 32 seconds but overall we should broad I mean broadly if you look at we should be able to do much better than this year's 30 number something in the ranges that you 39:41 39 minutes, 41 seconds mentioned also right right so so gold has become more expensive like more so with the duty 39:49 39 minutes, 49 seconds hike today. So uh as a result of that should we see some part of the wedding budget that was you know earlier earmark 39:57 39 minutes, 57 seconds for jewelry now moving to apparel like saries etc. 40:03 40 minutes, 3 seconds two things I think gold is directly and indirectly also in the same range right like you know our raw materials also do 40:10 40 minutes, 10 seconds have gold pricing I mean gold embedded into our products I think all the s the zar that we use in the products is all 40:17 40 minutes, 17 seconds made from silver and gold again metal price do have an impact overall uh when this sort of a phenomena happens and and 40:24 40 minutes, 24 seconds and and generally what happens is like the product AS also start shooting up just in the last 6 months to 7 months we 40:32 40 minutes, 32 seconds have seen uh some increase in the overall pricing and and and that has caused um the the change in the consumer 40:40 40 minutes, 40 seconds behaviors but but if you look at that generally it should yield into positive trend because gold is becoming too expensive. Uh the silver the alternative 40:49 40 minutes, 49 seconds for golds right now are picking up with respect to such as silver jewelry and other other other similar categories. Uh but again uh in terms of saries also 40:58 40 minutes, 58 seconds it's the same thing. I think the the budgets now have like you know moved uh beyond like about which which was about 41:05 41 minutes, 5 seconds one lakh kind of a purchase today stands about like you know 60,000 or 70,000 on on that front. So the bill values are also uh decreasing into that extent. 41:17 41 minutes, 17 seconds So, so yes, that's that. On a lighter note, Saris 41:24 41 minutes, 24 seconds and these ethnic wear has no foreign exchange involved. 41:29 41 minutes, 29 seconds So, we are expecting that some of the money that was discouraged to be spent 41:36 41 minutes, 36 seconds on gold might come to April and particularly Saris in the wedding season. So we are hopeful that 41:45 41 minutes, 45 seconds we should have a better um uh uptake uh by getting the money diverted. 41:54 41 minutes, 54 seconds Yeah, that's uh very clear. Uh so just my last question, you mentioned that you would uh want to venture in at least one 42:02 42 minutes, 2 seconds new state this year. So would that lead to significant marketing expenses uh as you would like to establish your brand 42:11 42 minutes, 11 seconds in a new state? Thank you. And that's all from me. 42:15 42 minutes, 15 seconds See yes um it is possible but we still would we have budget on the advertisement sites to be still be able 42:21 42 minutes, 21 seconds to uh uh run the 4% kind of a number only uh which is a similar number compared to this year. So we will 42:29 42 minutes, 29 seconds reposition that at when whenever required but yes when we go to a new state it does require some noise to be made and we'll definitely go all in when 42:38 42 minutes, 38 seconds we go to a new state get the local um influencers or celebrities to be able to influence and and and and and be able to 42:46 42 minutes, 46 seconds showcase that you know we are now present in that brand. Most of our store formats also when we open I mean apart from of certain formats like Vahalashmi 42:54 42 minutes, 54 seconds most of the formats whenever we open stores we make a loud bang um so not just during the opening even post that 43:01 43 minutes, 1 second also we do that for us to be able to um get the eyeballs that we could get um and and and and that's something that we 43:09 43 minutes, 9 seconds do for every store this year particularly on the advertisement and marketing front of the global I mean the 43:17 43 minutes, 17 seconds uh BTL activity We started focusing on the ATL activities as well and focusing more on digital marketing and hyperlocal marketing campaigns. That is something 43:25 43 minutes, 25 seconds that we will continue to do next year as well in in few of our weaker performing stores in terms of the walk-ins. 43:34 43 minutes, 34 seconds But to answer your question broadly the advertisement expenditure should be in the similar range compar in in the same as how this year ended up in terms of percentage points. 43:45 43 minutes, 45 seconds Right. Thank you and all the best. Thank you. 43:52 43 minutes, 52 seconds Thank you. Next question is from the line of Ankit Babil from Shipcom Ventures. Please go ahead. 44:00 44 minutes Uh good afternoon sir. 44:04 44 minutes, 4 seconds Um long sir. How are you? 44:06 44 minutes, 6 seconds I am fine sir. Sir a couple of questions now. uh considering the store addition plans uh you mentioned about adding one 44:13 44 minutes, 13 seconds lakh square ft² and a better SSG uh you know compared to FI26 what kind of AITA margins we can look at 44:20 44 minutes, 20 seconds in FI27 AITA margins since the VHAMI component 44:30 44 minutes, 30 seconds is continuously growing uh within the entire pipe and 44:37 44 minutes, 37 seconds we we should surely see they will see an improvement in the VA margin this year also because broadly I would 44:45 44 minutes, 45 seconds say there is a potential of improving uh to the extent of another 4,000 to 5,000 44:53 44 minutes, 53 seconds per square ft inhummi format in Tamil Nadu so mostly that will add to the 45:00 45 minutes benefit to the improvement in the uh margin profile as such 45:08 45 minutes, 8 seconds And also one other thing is of course that is not directly related 45:15 45 minutes, 15 seconds but since the company is totally debtree and the company has enough resources uh 45:22 45 minutes, 22 seconds for completing the entire expansion uh uh with the internal generations there will not be any further borrowings and 45:30 45 minutes, 30 seconds we expect that the company will not have borrowings for the next 2 three years. 45:35 45 minutes, 35 seconds So all these uh u all these square foot additions and in uh uh improved 45:43 45 minutes, 43 seconds activities should improve on a total uh leave out the EITA margins. So EITA margins is one point and subsequent AITA 45:52 45 minutes, 52 seconds there is no interest cost no major interest cost will be there. So the difference between EITA margins and the 45:59 45 minutes, 59 seconds PAT margins would also shrink. thereby the pat margins you will be able to see a much better improvement than it was earlier. 46:09 46 minutes, 9 seconds Uh okay because a few quarters back you had guided for a uh around uh 200 basis point uh AITA improvement every year. So 46:19 46 minutes, 19 seconds uh you know so we were targeting some 19% margins by FI27 at AITA level. So what are the new 46:26 46 minutes, 26 seconds estimates where do you see because we have not seen much improvement in FI uh you know uh 26 46:36 46 minutes, 36 seconds but the target would be the same the target I think this year we have reached about 16 point and our target with the 46:46 46 minutes, 46 seconds plan of action on warm lakmi and uh I think we should be able to reach at least 18 oh we have already reached 46:57 46 minutes, 57 seconds Yes, 16 we have already reached. So it should be possible that we should at least be in the uh 17 and half to 18 guaranteed 17 and a half to 18 guaranteed. 47:09 47 minutes, 9 seconds Okay. Okay. And sir u u I just wanted to understand that you know since you mentioned that uh you have enough uh 47:18 47 minutes, 18 seconds financial resources to expand your uh retail network. So just wanted to understand why you are uh constrainting 47:27 47 minutes, 27 seconds you to just one lakh square ft and not adding one and a half or more lakh square ft. Um I is it is there any 47:35 47 minutes, 35 seconds execution challenge or you don't see that uh that kind of a demand in the industry or you feel that the balance 47:41 47 minutes, 41 seconds sheet doesn't allow this one not one and a half that is the target we have put in for 47:50 47 minutes, 50 seconds the current year but surely we will make an effort to in improve the square footage it's not as though we try to 47:58 47 minutes, 58 seconds locate a place and put up a store and do it there is a lot of work preliminary work that goes in to locate a store. 48:08 48 minutes, 8 seconds Currently we have an visibility of approximately one lakh square ft on which we have closed the entire process 48:16 48 minutes, 16 seconds of identification uh of the stores and then other modalities of it. That is how Mr. Badwaj 48:25 48 minutes, 25 seconds was mentioning that uh at the end of H1 towards the H2 we will be able to give 48:33 48 minutes, 33 seconds perhaps we we should we can give an indication that the to store edition would be slightly better than this one lakh also it's not about the resources 48:42 48 minutes, 42 seconds but consider that we have never closed the stores on account of operational issues. 48:50 48 minutes, 50 seconds So there is a lot of work preliminary work that goes on while locating the stores and once 48:58 48 minutes, 58 seconds that is located obviously we will have enough resources to put up the uh stores and we should surely make an effort to 49:08 49 minutes, 8 seconds go well beyond one lakh square this year. See adding to this um I would want to mention that it is always not about 49:16 49 minutes, 16 seconds adding too much square feet. It's also about retaining and maintaining the margin profile, maintaining the AIDA profile, maintaining the profitability 49:24 49 minutes, 24 seconds profile aspect of it. Uh I think it is fair to say at this point of time that uh in in our industry we command one of 49:32 49 minutes, 32 seconds the highest gross margins. I mean again I'm talking about a SAR retailer here. 49:38 49 minutes, 38 seconds We are commanding the highest EITA margins and PAT margins. The challenge is not opening retail stores and be able to like you know be okay with reduced 49:47 49 minutes, 47 seconds margins. The challenge is to be able to identify carefully, handpick carefully and be able to handhold these stores. 49:54 49 minutes, 54 seconds Majorly I think we have seen many in the cases in the market that too too aggressive expansion also can cause uh 50:01 50 minutes, 1 second consolidation of stores. Our goal is not about like opening the stores for the sake of like you know just because there is a healthy funds in the cash system 50:09 50 minutes, 9 seconds and then be able to look at a system where we had to consolidate the stores. 50:13 50 minutes, 13 seconds I think uh the careful approach that we have been taking and slowly start incrementing this process and continuously delivering that growth year 50:21 50 minutes, 21 seconds or year is our prime focus. I think um um during our um older conversations also I think I mentioned the same thing. 50:28 50 minutes, 28 seconds While we do have the balance sheet support to open more, I think here it it all comes down to the strategy piece 50:36 50 minutes, 36 seconds where it is all about being able to maintain the similar kind of productivity levels, efficiencies while still focusing on the growth. So when 50:45 50 minutes, 45 seconds you try to balance this, I think it has to go with the balanced approach and neither one can take precedence and one cannot take. So that's the approach 50:53 50 minutes, 53 seconds overall. But overall if you look at Y we are continuously improving the retail square addition Y. Mhm. 51:02 51 minutes, 2 seconds Okay. So so mathematically since uh even if I take a 15% kind of a topline growth for next year I mean this 27 and you did 51:10 51 minutes, 10 seconds mention about 17 and a half% AITA plus no increase no increase in interest cost. So at least a 200 basis point 51:17 51 minutes, 17 seconds improvement in net margins. So this gives me a a pat of around 200 crores for FI27. So are you guys also targeting that level? 51:28 51 minutes, 28 seconds We will discuss this uh I mean um May is too premature to discuss the finer aspects of this but 51:37 51 minutes, 37 seconds surely we will make an effort to improve our uh turnovers reserve profitabilities 51:44 51 minutes, 44 seconds continuously but uh the specific mathematics we'll discuss in the Q2 call. 51:51 51 minutes, 51 seconds No problem. And some last question is where do you see your inventory days in FI27 and your debt levels? We have seen 51:58 51 minutes, 58 seconds slight improvement in inventory days even yeah even in this even in this year you would have seen despite adding 70,000 52:07 52 minutes, 7 seconds square ft the increase in inventory was only 34 crores. So that there is a concerted effort constant vis on that 52:16 52 minutes, 16 seconds and to improve the inventory days. But uh if you are following us you would have remembered that I think uh second 52:24 52 minutes, 24 seconds half of uh 23 year 23 or 24 FI 24 when 52:31 52 minutes, 31 seconds we put a KPI on the inventory part uh there was a huge reduction in the 52:38 52 minutes, 38 seconds turnover during that quarter. So we are broadly uh balancing between the inventory uh 52:47 52 minutes, 47 seconds optimization and the sales by achievement and accordingly we will be taking a call on that but surely there's 52:54 52 minutes, 54 seconds an effort to continuously improve the uh inventory turnover any targets sir for this year how much 53:02 53 minutes, 2 seconds improve because 180 days was the last year's inven days which is still too high so any targets Huh? 53:10 53 minutes, 10 seconds It's it's a continuous thing. Uh see but if I if I convey KPI on this within the 53:17 53 minutes, 17 seconds system then uh it is taking a negative toll on the uh um inventory part sorry 53:25 53 minutes, 25 seconds the sales part. So we will make an effort to continuously improve that. 53:29 53 minutes, 29 seconds First if if I have to broadly give you an indication from the year from the year FI24 to this 53:38 53 minutes, 38 seconds date if you see the see our balance sheet we have improved we have reduced the inventory 53:45 53 minutes, 45 seconds per square ft by around 1,000 rupees what was around 1100 11,533 has 53:54 53 minutes, 54 seconds come down to 10,480 or so. So that's a concerted effort but we have to make a get an equilibrium between the uh 54:02 54 minutes, 2 seconds inventory days and the sale achievement that we that we'll continuously monitor. 54:09 54 minutes, 9 seconds On the overall other side to this is I think the format that we open I think kalamandra has a different inventory requirement km has a different I mean barmal has a different inventory 54:17 54 minutes, 17 seconds requirement and the store opening dates also does have an impact right at the end of the year. I think again talking about the inventory fees again coming to 54:26 54 minutes, 26 seconds this decision after H1 could be a better way to look at it. No problem sir. Okay. All the best. 54:33 54 minutes, 33 seconds Thank you so much. Thank you. 54:38 54 minutes, 38 seconds Thank you. Next question is from the line of Nlesh Di from Prosperity Tree AMC. Please go ahead. 54:47 54 minutes, 47 seconds Thanks for the opportunity sir. Many questions were asked by the earlier uh analyst. So my question in connection to 54:55 54 minutes, 55 seconds the earlier analyst that the how the future expansion and the maintenance of the margin. So within how many days the 55:02 55 minutes, 2 seconds new once the new store is open we match the AITA margin of the matured store and within how many days they achieve the 55:10 55 minutes, 10 seconds break even or at what revenue level they will achieve at the break even? 55:18 55 minutes, 18 seconds Depending on the format, Walakmi format will give a payback within 55:25 55 minutes, 25 seconds 8 to 9 months. Whereas to reach the AITA margins to get the store matured, it will be approximately 1 and a half years 55:35 55 minutes, 35 seconds to two years. The maturity part we consider is that we leave out the year in which the store was established and 55:42 55 minutes, 42 seconds we leave one one more year for the store to see the three cycles of a wedding 55:49 55 minutes, 49 seconds dates and other things and then go on to the base figure. So obviously for the 55:56 55 minutes, 56 seconds stores to store to mature and get established to the average margins of the company it will be 56:05 56 minutes, 5 seconds anywhere between 1 and a half years to two years and in respect of formats like kalam mand etc it will be slightly higher. 56:16 56 minutes, 16 seconds Okay sir and sir we are operating the different format stores and u but our blended GP margin is around 40 plus percentage and AIA is around 12 to 13%. 56:28 56 minutes, 28 seconds So which format is G generating the higher GP and higher a beta compared to the other format and are we expanding in 56:35 56 minutes, 35 seconds particularly in that format or we are expanding the all formats they are 56:42 56 minutes, 42 seconds location based say Tamil Nadu Walakmi format is the best format which gives higher gross margins and higher avita 56:51 56 minutes, 51 seconds margins whereas we have seen Kalamandir format has a good brand value in Karnataka particularly Bangalore and 56:58 56 minutes, 58 seconds other places. So when we have expanded in Tamil Nadu, we expanded on Vamalakmi 57:05 57 minutes, 5 seconds format. Now that we are expanding in Karnataka particularly Bangalore with Kalamandir format. So each format will 57:12 57 minutes, 12 seconds have a different uh uh metric depending on the location where its brand value is 57:20 57 minutes, 20 seconds there. Currently Kalamander see we have reached some kind of a 57:27 57 minutes, 27 seconds reasonable size in Tamil Nadu where the stores are in the process of maturity and improving the productivity. Now we 57:36 57 minutes, 36 seconds see a potential in Karnataka particularly Bangalore where the Kalamander format is in good brand brand has a brand equity. 57:48 57 minutes, 48 seconds So obviously current expansion will include kalamandir format and also um on a need 57:57 57 minutes, 57 seconds based format. Broadly I think it should be about 58:05 58 minutes, 5 seconds 40 60 ml and kalamir. 58:10 58 minutes, 10 seconds We should this year we should implement approximately in the range of 60 between Kalamander and the Waral Lakshmi formats. 58:22 58 minutes, 22 seconds Okay. And so ultimately all format are generating the near to equal margin a bit margin or it it generates the 58:31 58 minutes, 31 seconds difference between the one format to another. The permal lakmi format will definitely 58:39 58 minutes, 39 seconds give better evita margins but it cannot be put everywhere. It cannot be unlimitedly expanded. 58:47 58 minutes, 47 seconds So wherever there is a potential for that we will be placing WMA Lakshmi format and other places though 58:54 58 minutes, 54 seconds Kalamander format in Bangalore might might give a lesser aid margin but it has a potential to give higher turnovers 59:03 59 minutes, 3 seconds and by volume we will be able to achieve the absolute number of absolute amount of the 59:11 59 minutes, 11 seconds so we make a decision between we make an analysis of these two between the volumes and 59:18 59 minutes, 18 seconds um margins are there and then we take a call on that. So that's how this year 59:25 59 minutes, 25 seconds Kalamander in Bangalore also is a focus area along with Warma Lakshmi in general. 59:32 59 minutes, 32 seconds Okay. And sir my last question is related to inventory. How do you identify the slowmoving item particularly there are many number n 59:41 59 minutes, 41 seconds number of sis kept in the store. So there must be some slowmoving items. Uh so how do you clear that inventory and 59:49 59 minutes, 49 seconds how do you value the inventory at the end of the year? 59:55 59 minutes, 55 seconds Inventory uh valuation is the same principle. It is the cost or market 1:00:01 1 hour, 1 second value whichever is lower. So valuation part it is very much predefined. 1:00:08 1 hour, 8 seconds And with regard to the see we have one advantage is that is it fits all sizes. 1:00:16 1 hour, 16 seconds uh it fits everyone and then uh size is not a constraint and then it can be stored depending on the uh product like 1:00:26 1 hour, 26 seconds cotton s or a silk s or a gate etc. The shelf life is much longer there. So that 1:00:33 1 hour, 33 seconds is and secondly uh we have some many number of stores and then we keep moving 1:00:41 1 hour, 41 seconds these stock from one place to other uh depending on the uh suggestions that we 1:00:48 1 hour, 48 seconds that comes from out of our a machine tool suggestions. We have an elaborate 1:00:56 1 hour, 56 seconds packages built within the company where they will be continuously monitoring and 1:01:02 1 hour, 1 minute, 2 seconds the data analytics give which area which place the uh these kind of salaries are getting sold and accordingly we move the 1:01:11 1 hour, 1 minute, 11 seconds product. So there will not be any issue on that with regard to the aging of the salaries and keeping the salaries 1:01:20 1 hour, 1 minute, 20 seconds marketable above the cost price. Only if it comes to below the cost price only we need to be providing anything for that. 1:01:28 1 hour, 1 minute, 28 seconds And in respect of salaries we also have the provision of uh converting them into 1:01:36 1 hour, 1 minute, 36 seconds half saries or baby frogs etc. And since we have a other formats like kalamander 1:01:43 1 hour, 1 minute, 43 seconds and km where these products can be put we will be putting these things there and then we ensure that each product is 1:01:52 1 hour, 1 minute, 52 seconds fully uh sold in whatever form and then the expected margin out of those uh product is realized. 1:02:03 1 hour, 2 minutes, 3 seconds Thank you. Thank you. That's all from the my side. Thank you sir. Thank you. 1:02:12 1 hour, 2 minutes, 12 seconds Thank you ladies and gentlemen. We will take that as the last question for today. I now hand the conference back to Mr. Bharat Raja Maduku for closing comments. Over to you sir. 1:02:23 1 hour, 2 minutes, 23 seconds Thank you sir. Uh thank you again for joining today. I think uh we had a good year 2526 and we look forward to having 1:02:32 1 hour, 2 minutes, 32 seconds a healthy year 26 27 and uh looking forward to connecting you back at our Q1 results. Thank you everybody for taking 1:02:40 1 hour, 2 minutes, 40 seconds time and joining today. Thank you so much. Thank you. 1:02:46 1 hour, 2 minutes, 46 seconds Thank you very much on behalf of SCIS Kalamanda Limited. That concludes this conference. Thank you all for joining us today and you may now disconnect your lines.