Sapphire Foods India Ltd — Q4 FY26

Sapphire Foods India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=bpVs7Ra5BzE Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Safia Food Q4 FI26 earnings call. This conference call may 0:10 10 seconds 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. 0:19 19 seconds These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant 0:29 29 seconds lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:37 37 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:44 44 seconds your touchstone phone. I now hand the conference over to Mr. Sanjay Rohit from Safire Foods. Thank you and over to you sir. 0:53 53 seconds Good afternoon everybody. Welcome to the quarter 4 and full year 2526 business performance highlights. I'm joined by my 1:02 1 minute, 2 seconds colleague and fellow board member Vijay Jen who's our executive director and CFO. Both of us will take uh uh you 1:11 1 minute, 11 seconds through the presentation. Quarter 4 FI26 has been our best quarter in the last 12 1:18 1 minute, 18 seconds quarters in terms of both SSSG and adjusted EBIDA growth. This has come on 1:25 1 minute, 25 seconds the back of a strong new consumer recruitment performance by KFC as well as strong 1:32 1 minute, 32 seconds performance in Sri Lanka also and you will all know this is despite the LPG related availability that we have faced 1:40 1 minute, 40 seconds both in India and Sri Lanka and some inflationary challenges. 1:44 1 minute, 44 seconds I think this uplift in performance is really encouraging as we move into the new fiscal year. We delivered a revenue 1:53 1 minute, 53 seconds of 7.9 billion rupees with 11% growth y 2:00 2 minutes in the quarter. Revenue for KFC grew by 15% which is the highest in the last eight quarters and Pizza Hut India revenue declined by 6%. 2:11 2 minutes, 11 seconds Sri Lanka grew in revenue by 15% in LKR. 2:16 2 minutes, 16 seconds In in the quarter we added 19 KFC restaurants, two Pizza Huts in India and three Pizza Huts in Sri Lanka. Our total 2:25 2 minutes, 25 seconds restaurant count was 152 as of 31st March 26. 2:31 2 minutes, 31 seconds A consolidated restaurant Ibida grew 21% yearonear and margin of 13% up 100 basis 2:38 2 minutes, 38 seconds points. Adjusted Ibida was 61 crores of 610 million rupees grew 20% yearonear 2:47 2 minutes, 47 seconds and consolidated adjusted IBIDA was 7.7%. 2:52 2 minutes, 52 seconds Consolidated IBIDA post India was 125 crores or 15.8% and this grew 10% yearon 3:00 3 minutes year. It's actually down 20 basis points. Consolidated adjusted PBT before exception was 8 crores 1.1%. 3:11 3 minutes, 11 seconds Um and uh uh consol PBT before exception was -2.7 crores or minus.3%. 3:21 3 minutes, 21 seconds Consol PBT um uh with exceptional items was -5.5 3:28 3 minutes, 28 seconds crores or minus 2%. And these exceptional items include the impact of 6.2 2 crores on account of labor code 3:36 3 minutes, 36 seconds changes and 6.6 crores towards merger related cost really the ESOP modification for employee retention. 3:47 3 minutes, 47 seconds Let's look at the fullear numbers. Full year numbers we delivered 8% revenue growth. So clearly the quarter at 11% was better than the fullear numbers. 3:56 3 minutes, 56 seconds Adjusted EBIDA declined at 9% uh by by 9% at 7.6%. 6% 4:04 4 minutes, 4 seconds 150 basis points down. KFC grew by 11% with a restaurant EID of 16.3% down 100 4:12 4 minutes, 12 seconds basis points. We opened 73 KFC restaurants during the year 575 total 4:19 4 minutes, 19 seconds restaurants. Pizza Hut revenue for the year declined with 7% revenue of 57 crores with restaurant dividend minus 3.3% 570 basis points below last year. 4:32 4 minutes, 32 seconds We opened seven restaurants during the year. Total of 341 restaurants. Sri 4:38 4 minutes, 38 seconds Lanka business grew 16% in LKR terms with restaurant IID of 14.9% down 50 4:46 4 minutes, 46 seconds basis points. We opened nine restaurants during the year. 136 is our total count 4:51 4 minutes, 51 seconds in uh Pizza Hut. The KFC performance has been driven by the two-prong consumer 4:58 4 minutes, 58 seconds recruitment strategy plus with the merger announcement with Davani International. We think that this 5:05 5 minutes, 5 seconds will enable a unified brand strategy on both the brands and this future proofs the growth in the coming years. I'm 5:13 5 minutes, 13 seconds going to go straight to KFC on page 5:18 5 minutes, 18 seconds number uh 19. As I said, KFC SS KFC SSSG grew at 4%. 5:29 5 minutes, 29 seconds 6% without the impact of Navatri. 5:34 5 minutes, 34 seconds Navatri last year two days were in March and 7 days were in April. This year entire Navatri was in March. So 5:42 5 minutes, 42 seconds underlying growth is 6%. And the 6% is highest in 14 quarters. So it really bodess well and there's a clear 5:51 5 minutes, 51 seconds two-prong consumer recruitment strategy for the for the more evolving markets where chicken consumption is slightly 6:00 6 minutes lower than uh the more developed chicken consuming markets. Our recruitment 6:07 6 minutes, 7 seconds strategy of advertising plus an entrylevel burger meal is working really well. This has been promoted only in our 6:16 6 minutes, 16 seconds D and takeaway channels and it has it is been um it is really driving SSSG 6:25 6 minutes, 25 seconds uh and then are in more developed markets. We have got uh disruptive value 6:33 6 minutes, 33 seconds at uh the at a higher price point. So we ran a BOGO, four pieces of hot and 6:41 6 minutes, 41 seconds crispy, four free and eight pieces of hot and crispy, eight free. Quite incredibly this is also driving uh new 6:48 6 minutes, 48 seconds consumer recruitment in uh some way. Um this is only in select 6:55 6 minutes, 55 seconds um markets on one day in the month only on dining in and takeaway. From an 7:02 7 minutes, 2 seconds innovations perspective, we have had two big innovations. Typically, we used to run three to four innovations in a year. 7:09 7 minutes, 9 seconds We have upped our innovation intensity. 7:13 7 minutes, 13 seconds dunked. Many of you would have tried which is a global saucy concept where um 7:20 7 minutes, 20 seconds where sauces are not added over the chicken but the entire piece of chicken is dumped into a um into a pot of sauce. 7:32 7 minutes, 32 seconds I mean it tastes absolutely fantastic. 7:35 7 minutes, 35 seconds And then we launched the KFC Shawma innovation which is also done really 7:42 7 minutes, 42 seconds well. Um I'm moving to uh the digital agenda. Our digital kiosks now are being 7:50 7 minutes, 50 seconds implemented in 73% of restaurants and clearly there's an APC upside that we get in uh from the kiosk 8:01 8 minutes, 1 second uh compared to what we would get at the counter. 8:05 8 minutes, 5 seconds You can see some of the new stores that we have uh opened. Epica mall in Delhi, Punjab, Satya Manglam in Tamil Nadu and 8:14 8 minutes, 14 seconds Mumbai. And quickly Vijay will handle the uh numbers the financial numbers. 8:21 8 minutes, 21 seconds I'm on slide 25 channel wise sales mix. 8:24 8 minutes, 24 seconds After few quarters of declining trend in dining and takeaway channel mix, uh we are seeing a really healthy performance on that front. The dining and takeaway 8:33 8 minutes, 33 seconds mix for the quarter remained stable at 57% same as last year. This was on account of improved performance we have 8:41 8 minutes, 41 seconds seen in those channels. Uh backed by the value campaigns which Sanjay spoke about which are exclusively available in 8:48 8 minutes, 48 seconds dining and takeaway channels only. From SSG point of view 4% SSG 6% X Natra and 8:56 8 minutes, 56 seconds overall revenue grew by 15% with addition of 19 stores in the quarter. 9:01 9 minutes, 1 second Gross margin improved by 70 bits over last year and remained similar to the previous quarter quarter 3. This along 9:09 9 minutes, 9 seconds with the operating leverage which we generated out of positive SSRG meant that we improved our restaurant EITA by 110 basis points which came in at 16.8%. 9:21 9 minutes, 21 seconds Slide number 28 gives the four year and five quarter trends. And while the annual investment margin uh dropped by 9:29 9 minutes, 29 seconds 100 bits, the last two quarters, quarter 3 and quarter 4 saw an improvement in margin which was generated on back of 9:38 9 minutes, 38 seconds back of positive SSG and this August really well as we move on to the new fiscal year. Let me take uh the Pizza 9:47 9 minutes, 47 seconds Hut business performance. It continues to be challenging. 9:52 9 minutes, 52 seconds However, our strategy of dining and forward omni channel with emphasis on great food and great exin experience, it 10:00 10 minutes continues to deliver doubledigit SSD and IBIDA Delta in Tamil Nadu, the only 10:07 10 minutes, 7 seconds exclusive uh sapphire market versus the rest of the country. 10:12 10 minutes, 12 seconds So we believe very strongly that this is the playbook for the future for our number two brand. Uh we've got to invest 10:20 10 minutes, 20 seconds behind uh uh invest behind advertising creating [clears throat] 10:27 10 minutes, 27 seconds top of mind and consideration amongst consumers and there is a big market share play that is possible. Uh which is 10:36 10 minutes, 36 seconds the financial numbers please. Slide number 34, the channel wise sales mix. 10:40 10 minutes, 40 seconds Dining and takeaway mix for the brand came at 49% and delivery at 51%. Just largely remained stable quarter on 10:48 10 minutes, 48 seconds quarter and over last year as well. From a SSG perspective minus 7% and overall revenue declined by 6% for the brand. 10:58 10 minutes, 58 seconds Gross margin improved by 40 basis points over last year. However, restaurant IITA declined and came in at 6% on account of operating dele. 11:08 11 minutes, 8 seconds Slide number 37 gives a fouryear and a five quarter performance. It can be seen that the overall performance for the brand continues to remain a challenge. 11:17 11 minutes, 17 seconds However, as mentioned by Sanjay that the Tamil Nadu delivered doubledigit delta on both SSHG and Western Tibbita performance and this acts as a playbook for the future. 11:28 11 minutes, 28 seconds Our Sri Lanka performance was very healthy. We delivered our sixth consecutive quarter of doubledigit SSSG along with healthy transaction growth. 11:39 11 minutes, 39 seconds We opened nine restaurants during the financial year. This has been our highest in the next over the last 3 years. And this really shows that Sri 11:48 11 minutes, 48 seconds Lanka is a highly promising market for Pizza Hut. We should be able to uh 11:56 11 minutes, 56 seconds continue this restaurant pace of expansion going forward in the next 2 three years. 12:02 12 minutes, 2 seconds Flight 41 Canon White sales mix again in Lanka as well our dining and takeaway mix remains stable and healthy at 62% 12:12 12 minutes, 12 seconds from SSG perspective 11% for the quarter which was u from a revenue perspective 12:18 12 minutes, 18 seconds 15% in LTR and 16% in INR terms while gross margin improved by 290 basis 12:26 12 minutes, 26 seconds points and this was a combination of uh reduction in discount as well has increase in price. We had a margin which 12:34 12 minutes, 34 seconds came at 14.6% down by 20 basis points and the entire benefit of the operating leverage because of the SSG did not flow 12:42 12 minutes, 42 seconds through the bottom line on account of high minimum wages been experienced in that particular country and there were two increases last year. 12:51 12 minutes, 51 seconds Slide number 45 gives four year and five quarter trend. So as can be seen the business continues to deliver healthy performance and we continue to retain 12:59 12 minutes, 59 seconds and consolidate our number one QSR position in the country. Our business performance in terms of numbers comes on 13:07 13 minutes, 7 seconds the back of certain foundational work that we do. Last time I said that we have been ranked the number one QSR in 13:16 13 minutes, 16 seconds the country and the number three QSR in the world on ESG metrics as per the Dow Jones 13:23 13 minutes, 23 seconds sustainability uh index. This is a matter of great pride for us and the two 13:31 13 minutes, 31 seconds areas where we perform outstandingly well are in the social and governance uh areas and indeed uh when we look at our 13:41 13 minutes, 41 seconds uh social scores there's another validation of the uh you know unique culture that we have at 13:50 13 minutes, 50 seconds Sapphire. We've been recognized by Gallup as an exceptional workplace in 13:56 13 minutes, 56 seconds the world. This is among the uh about 70 companies around the world who have been 14:03 14 minutes, 3 seconds uh who have been recognized in this manner. To be to qualify for this also 14:11 14 minutes, 11 seconds there is a need to be among the top quartile of all companies globally on employee engagement scores for four to 14:20 14 minutes, 20 seconds five years in a row. Only then does Gallup invite you to take part in this. 14:27 14 minutes, 27 seconds and we took part and we were uh recognized as a Gallup exceptional 14:33 14 minutes, 33 seconds workplace only Indian QSR organization recognized in the country only four Indian organizations recognized globally. 14:43 14 minutes, 43 seconds So with this uh I we conclude our uh numbers and our business performance 14:50 14 minutes, 50 seconds highlights. Again uh the quarter um performance especially on KFC as well 14:58 14 minutes, 58 seconds as on Sri Lanka bodess well as we get into the new fiscal. April also is 15:04 15 minutes, 4 seconds trending similarly and that gives us confidence uh for the new fiscal. Um I 15:12 15 minutes, 12 seconds want to reiterate here the KFC performances work that has been done uh to improve new consumer recruitment and 15:21 15 minutes, 21 seconds you would have heard me speak about this uh several times over the last quarters. 15:28 15 minutes, 28 seconds It has taken us time to find the right uh marketing mix to deliver on this intent, but we think we've got it now. 15:39 15 minutes, 39 seconds And uh that's uh that's very hearty. 15:43 15 minutes, 43 seconds Over to you all. Uh now over to you for questions. 15:50 15 minutes, 50 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 15:57 15 minutes, 57 seconds star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you 16:04 16 minutes, 4 seconds may press star and two. Participants are requested to use handsets while asking a question. Please note in order to ensure 16:12 16 minutes, 12 seconds that the management will be able to address questions from all the participants in the conference, kindly limit your questions to two per 16:19 16 minutes, 19 seconds participant. Should you have a follow-up question, please rejoin the queue. 16:24 16 minutes, 24 seconds Ladies and gentlemen, we will wait for a moment while the question Q assemble. 16:36 16 minutes, 36 seconds Okay, let's go. 16:40 16 minutes, 40 seconds The first question is from the line of S of Pundan from Goldman Se 16:46 16 minutes, 46 seconds [snorts] 16:48 16 minutes, 48 seconds for the presentation. Uh I want to ask you is the are these value initiatives in KFC now rolled out across your 16:57 16 minutes, 57 seconds network uh especially the north and west where you have the 99 rupee initiative. 17:03 17 minutes, 3 seconds So we started it sort of in uh about 150 odd stores in the month of November, 17:12 17 minutes, 12 seconds December then rolled it out to perhaps 200 stores uh in January, February, 17:18 17 minutes, 18 seconds March and as of April all our stores except our Tamil Nadu stores are running 17:25 17 minutes, 25 seconds this uh uh new new consumer recruitment uh uh value offer. So it's not a promotion. I want to underline this. 17:35 17 minutes, 35 seconds This not a promotion. This is a permanent um this a permanent value layer that we 17:42 17 minutes, 42 seconds are building over north and west and south we are implementing a different strategy. 17:51 17 minutes, 51 seconds Understood. Understood. And um what's the same for transactions growth that you are seeing and if you could remind 17:58 17 minutes, 58 seconds us what the trend has been last let's say four quarters. 18:02 18 minutes, 2 seconds So we have not not given out the numbers but yes our SSG has been closer to the S SSD performance in the previous quarter. 18:10 18 minutes, 10 seconds It follows a similar trend line. It's closer to our SSG performance. 18:19 18 minutes, 19 seconds All right. All right. Uh last question from me. You have also stepped up marketing in KFC. Uh could you give us 18:26 18 minutes, 26 seconds an idea the margin that we seeing in KFC? The the restaurant margin. uh how much has the uh marketing and ad spend 18:34 18 minutes, 34 seconds gone up as a percentage of the FC sales what what was it earlier and what is it now earlier as in before these 18:41 18 minutes, 41 seconds initiatives were introduced so while I'm not giving out the exact number anywhere between 75 business points to 100 bits additional marketing 18:49 18 minutes, 49 seconds spend we have put behind the brand and we have put additional so uh the the regular amount 18:59 18 minutes, 59 seconds which you end up spending uh as per the contract this is over and above the regular amount. 19:05 19 minutes, 5 seconds All right. And this this will continue as long as I mean this becomes a permanent uh now right uh highcomes 19:12 19 minutes, 12 seconds permanent or not because right now the focus in getting focuses on getting the transactions and getting the SSG. So a 19:21 19 minutes, 21 seconds marketing investment or a gross margin investment uh right now becomes a bit secondary in terms of the focus. As long 19:29 19 minutes, 29 seconds as we able to get a positive SSG and transaction and thereby finally create a accretive bottom line, I think that's the focus area. 19:37 19 minutes, 37 seconds Got it. Can I just ask one more question on gross margin? So in the previous quarter you were not fully rolled out. 19:43 19 minutes, 43 seconds This quarter you fully rolled out. Yet your gross margin is similar to the previous quarter. Is there a price hike as well involved here or 19:51 19 minutes, 51 seconds so the the primary reason uh is that this particular offer has been also supported by our vendor partners as well 20:00 20 minutes as a result we've been able to hold on to the gross margin uh that's the reason having said that if if I look it into 20:07 20 minutes, 7 seconds the future and if the vendor partner support goes away we we expect a gross margin impact of anywhere or a gross margin investment of anywhere between 50 to 70 basis points XR estimate. 20:20 20 minutes, 20 seconds All right. Thank you so much. Thanks a lot. Yeah. 20:26 20 minutes, 26 seconds Thank you. The next question is from the line of pages sa Sha from Aendis Spark Institutional Equities. Please go ahead. 20:35 20 minutes, 35 seconds Hi Sanjay. Thanks for the opportunity. 20:37 20 minutes, 37 seconds Uh so what? Yeah. So so the last quarter had two distinct shades in terms of operating environment. Jan, Feb at one 20:46 20 minutes, 46 seconds end and March was very volatile especially on an operational front despite that numbers came out very well 20:53 20 minutes, 53 seconds uh compared to what what the quarter was painted uh operationally. So just wanted to know giant fair had a very good 20:59 20 minutes, 59 seconds momentum which uh got uh disrupted I'm assuming it got disrupted in March or or is what was it uniform throughout? Yeah. 21:08 21 minutes, 8 seconds So March was also good. Um I would say uh while there was disruption on LPG and 21:18 21 minutes, 18 seconds indeed there's significant inflation that has happened on LPG the we were still able to manage to keep 21:27 21 minutes, 27 seconds our stores alive. Now that when I when I say the manage it's a daytoday activity so our teams on the ground just do an 21:36 21 minutes, 36 seconds incredible amount of work. Uh so we have not um uh um store closures have been uh 21:46 21 minutes, 46 seconds restricted significantly uh in wherever we have still been able in some cases we've been still been able to operate with a truncated menu. 21:59 21 minutes, 59 seconds Yeah. And so uh how's the current operating environment? To add to that so KFC had zero closures. 22:05 22 minutes, 5 seconds Okay. So while availability was a challenge, I think we've been able to manage the situation quite well. So there was a zero closure on KFC. Uh and 22:14 22 minutes, 14 seconds there continues to be zero closure on KFC. 22:18 22 minutes, 18 seconds Few stores would have been impacted by a truncated menu. Few stores would have been impacted by truncated timings. But those are a handful of the stores. Uh 22:25 22 minutes, 25 seconds hence March went very well from that perspective. In Pizza Hut we had closures which I would say for 10 days 22:33 22 minutes, 33 seconds 15 days but the number of stores would be less than 5% of the overall uh overall brand for Pizza Hut. So the bigger challenge right now is the the 22:41 22 minutes, 41 seconds LPG price where the impact could be anywhere between 25% to 40% increase in terms of the cost which could impact the 22:48 22 minutes, 48 seconds IPA by 30 to 50 basis points but as long as we're able to keep the store open I think that 30 to 50 basis points impact 22:55 22 minutes, 55 seconds right now in relative theory it's not so material there are consensus expectation on uh uh 23:05 23 minutes, 5 seconds energy price increase uh coming coming quarters or coming months month. Uh so any uh any price hike that we have 23:12 23 minutes, 12 seconds planned or already rolled out and and uh in general if inflation picks up what will be our strategy because inflation is coming after a long time. 23:21 23 minutes, 21 seconds So currently for KFC the price hike has happened in the range of 1 o% and in March also a small amount of price hike 23:28 23 minutes, 28 seconds happened. If I add up both the price hikes it's it's in the range of 1 and a half to 2% price hike for KFC. uh 23:36 23 minutes, 36 seconds similar price hike has uh is been t is taking place for Pizza Hut or has taken place for Pizza Hut as well in the month of April around about 2%. uh we don't 23:46 23 minutes, 46 seconds see any further price hike in the immediate future unless we see the situation at the ground going dramatically southwards uh where the raw 23:55 23 minutes, 55 seconds material prices or for that better specifically oil prices go out of the whack unless that happens we don't see any other price like happening in the near future. 24:04 24 minutes, 4 seconds Perfect. And just one clarification uh on in the reply to previous participant question. You said that uh despite the 24:11 24 minutes, 11 seconds broader rollout of the value offering the margins did not come under pressure because it was supported by vendor partners. But I thought this was largely 24:19 24 minutes, 19 seconds for dining in right dining takeaway. And when I say vendor partners are the the raw material suppliers, the suppliers of uh the 24:27 24 minutes, 27 seconds chicken, fries and the beverage partners. Beverage partner. 24:36 24 minutes, 36 seconds So So they cross subsidizes is it? Yes. 24:39 24 minutes, 39 seconds Yes. Because they they get volume. So they get substantial volumes. 24:45 24 minutes, 45 seconds Okay. Okay. That's all from my side and best wishes for the coming B. Thank you. 24:54 24 minutes, 54 seconds Thank you. The next question is from the line of G of Jagani from JM Financial. Please go ahead. 25:01 25 minutes, 1 second Thank you for taking my question. My question is with regards to KFC again and specific to margins. Would it be prudent to say that you know your 25:10 25 minutes, 10 seconds confidence in terms of the the new strategy and uh the way you have managed the cost uh that the margins now have 25:17 25 minutes, 17 seconds bottomed out and we can see uh the recovery in margins going ahead. 25:23 25 minutes, 23 seconds Sorry if you can you the margins what if you can come again have they bottomed out uh at the margins have they bottom out and can we only see 25:31 25 minutes, 31 seconds recovery margins going ahead despite you know the raw material inflation etc. 25:37 25 minutes, 37 seconds Yeah. So as long as we're able to hold on to the SSSG, I we we feel confident that we should be able to hold or improve the margins. So the SSSG is the 25:45 25 minutes, 45 seconds key and that's what we've been saying for last two years, the the drop has of margin has been a direct result of lack of SSG for last two years. So yes, the 25:53 25 minutes, 53 seconds quarter 3 and quarter four, the moment we hit the SSG, it has helped us improve the margins. 25:59 25 minutes, 59 seconds So there are two two margins, one gross margin and restaurant even. uh he was 26:07 26 minutes, 7 seconds mentioning restaurant I guess restaurant margin itself right that's what that is what I was alluding 26:14 26 minutes, 14 seconds to yes yes yes uh so so s just further on this you know given that you know now uh we have a 26:23 26 minutes, 23 seconds very low base to uh to hit and also the strategy started to work for us so uh so how is a confident of you know how how 26:31 26 minutes, 31 seconds confident are you of achieving mid single different kind of an SSG in AFC over the next couple of uh years. 26:39 26 minutes, 39 seconds So I I don't think the confidence comes from the low base. If that was the case, I think for last 3 years we've been still struggling, right? Every year we think the base has gone low. Uh and yet 26:47 26 minutes, 47 seconds it was now 3 years for us to get a 4% SSG. So the confidence does not come from the low base. It comes from the the strategy which is right now working at a 26:56 26 minutes, 56 seconds ground which has been now in operation for last 4 months or so. uh we have been quite cautious of expanding from 150 27:02 27 minutes, 2 seconds stores to 220 now to 400 plus stores. So I think that the traction at the ground gives us the confidence and the way the 27:10 27 minutes, 10 seconds April has also gone so far gives us the confidence that we should be able to deliver reasonable SSG as we move forward. 27:16 27 minutes, 16 seconds Yeah. So that is what I meant actually you know what I was trying to ask you is that what has really worked uh in changing that traction? Uh is it your 27:25 27 minutes, 25 seconds strategy that is working? Is it the consumers are coming back? uh are you seeing a shift in the consumer sentiment that is helping uh what is actually leading to this recovery process? 27:35 27 minutes, 35 seconds It's a combination of two things. Uh certainly we believe the consumer uh environment from a demand perspective has certainly improved in quarter 4 and 27:44 27 minutes, 44 seconds this is what we were alluding to when we had a quarter 3 call as well. But that uh backed by our specific strategy in 27:51 27 minutes, 51 seconds terms of driving consumer recruitment the two-fold strategy uh which is the 99 rupees chicken crisper burger meal for 27:58 27 minutes, 58 seconds driving customers or recruitment in north and west which is the more or less developed or less evolved markets in 28:05 28 minutes, 5 seconds terms of seeing pattern and another which is the abundant and disruptive value. I think this has clicked and it has it has not been easy to be fair over 28:14 28 minutes, 14 seconds last one one and a half years we did several experiments several pilots we did that epic saver campaign as well we ran it for the first 9 months so it has 28:20 28 minutes, 20 seconds been hit and miss good part is that we have finally been able to arrive at something which has clicked with the customers resonate with them and we are 28:29 28 minutes, 29 seconds able to see traction so that gives us the confidence and just one last question on the Sri Lanka bit you know uh Sri Lanka also 28:38 28 minutes, 38 seconds faced challenges in terms of LP shortage and uh the intensity of the issues there were a bit higher versus India. So so 28:45 28 minutes, 45 seconds how do you see uh Q1 so far panching out uh for Sri Lanka in specific in the margin profile? 28:53 28 minutes, 53 seconds So it's a uh it's a tough situation from being able to manage both uh fuel for our transport vehicles as well as LPG. 29:06 29 minutes, 6 seconds Uh the quarter has started okay uh has started well only uh but we've got to 29:15 29 minutes, 15 seconds see how it lands over the next uh uh you know couple of weeks. 29:23 29 minutes, 23 seconds So this LPG situation is ever evolving situation. It's very difficult to say how the quarter looks like taking that particular parameter into consideration. 29:31 29 minutes, 31 seconds So that's evolving in India as well that's evolving in Sri Lanka as well. 29:35 29 minutes, 35 seconds So it was the question more in context of uh are the consumers also feeling the pain and have they you know cut down on their discretionary spend in any way uh 29:44 29 minutes, 44 seconds which then could have a ripple effect on the the demand. 29:48 29 minutes, 48 seconds So but from that perspective I think the April has gone reasonably okay. Of course we have been delivering uh double digit SSG for last two years. So it's 29:55 29 minutes, 55 seconds it's a really high base. So coming out of that kind of a base but yet we continue to deliver positive SSG in April. 30:03 30 minutes, 3 seconds Okay. Thanks. That's all. 30:09 30 minutes, 9 seconds Thank you. The next question is from the line of Dwanchel from MK Global. Please go ahead. 30:17 30 minutes, 17 seconds Yes sir. Hi. Uh thanks for taking my question. Uh sir, firstly wanted to uh understand this community. So when you 30:24 30 minutes, 24 seconds say uh trends have continued uh you mean uh the quarter SSD trends or the comparable uh SSD trends? So maybe if 30:33 30 minutes, 33 seconds you could help me better understand that comment. 30:37 30 minutes, 37 seconds Sorry when you say SSS you you're asking SSSD trend what does it mean for a yeah so the yeah 30:46 30 minutes, 46 seconds for the quarter we we delivered 4% x x nagatra 6% so that kind of momentum we are seeing in 8 as well from a SSSG 30:54 30 minutes, 54 seconds point of view okay but Vijay that loss that happened which got prepped to Q4 that should have 31:04 31 minutes, 4 seconds benefited you right so in in so I so I'm calling out in a way like for like scenario so just like four 31:12 31 minutes, 12 seconds becomes six so I'm comparing on both sides I'm comparing the underlying number is X Natra benefit or X Natra 31:21 31 minutes, 21 seconds impact whichever the quarter you're looking at so I'm stripping that off okay okay so underlying consumption if 31:28 31 minutes, 28 seconds we say for Q4 was 6% uh then in Q1 also that similar trend is sort of shaping up right can similar to this. 31:39 31 minutes, 39 seconds Okay. Uh within a few sort of clarification from balance sheet front. 31:45 31 minutes, 45 seconds Uh so I noticed that uh in financial assets both current and non-current if we combine them uh there is some 100 cr right so what can this be attributed to? 31:56 31 minutes, 56 seconds So right now that balance sheet which we are facing is a post India 1116 impact right. So there are lot of other impacts in terms of how lease accounting comes 32:05 32 minutes, 5 seconds into the picture, how right of use comes into the picture, the tenor of the agreement. So a right way to maybe to look at after stripping of that 32:13 32 minutes, 13 seconds particular impact and maybe in that case we can take this question offline. You can connect with us separately. 32:20 32 minutes, 20 seconds Okay. Sure. And uh from a KEX perspective also uh there is about 320 cr of KE that we have done and we have 32:28 32 minutes, 28 seconds opened about 90 odd stores. Uh so how should we see this uh because it seems to be a tad higher right? 32:36 32 minutes, 36 seconds So the capex has a uh three components which are material components. One is of course the new store opening. It also 32:43 32 minutes, 43 seconds has a component on the refer capex which uh every 5 years and 10 years the store needs to be refurbished as per the 32:50 32 minutes, 50 seconds agreement. There's also a renewal fee which comes into the picture. Now apart from the initial so renewal fee because now as a sapphire we have completed 10 32:58 32 minutes, 58 seconds years. So there's a renewal fee component kicks which kicks in every year. So it's not just the capex on the stores. These are the several components 33:05 33 minutes, 5 seconds which adds up to the overall capex. When I look at the coming year, uh we see a similar number of capex uh similar number in terms of the capex spend for FI27 as well. 33:18 33 minutes, 18 seconds Okay. Possible to break them into the three buckets broad numbers. uh if you could help us understand 33:25 33 minutes, 25 seconds from initial fee or a university we are we are not allowed to share that that number publicly to be fair so okay 33:34 33 minutes, 34 seconds okay okay yeah got it thanks for taking if you're trying to do a modeling we have always called out what the kind of a KFC number looks like per store right so KFC 33:42 33 minutes, 42 seconds number looks like anywhere between 2.1 to 2 cr store so that's pure capex uh without any initial fee or renewal fee 33:50 33 minutes, 50 seconds as a part of it the pizza hut we have always called out that per store capex is like 1.35 to 1.4 CR per store. So that's the number you can look at from a modeling perspective. 34:01 34 minutes, 1 second No that's fair but that number comes to be 170 180 cr right. So there is the additional 140 cr of k that has 34:09 34 minutes, 9 seconds been done. So that was what I was inquiring about. 34:12 34 minutes, 12 seconds Yeah. So also what we do what what gets probably missed out in this is uh let's say the store closures in in Pizza Hut while the store opening for the calendar 34:20 34 minutes, 20 seconds year 25 was zero there were close to 15 to 20 stores which we uh which we shut down and we opened something else. So 34:28 34 minutes, 28 seconds that's another angle which gets missed out in the overall capex when we are looking at overall number but yes largely these are the components. 34:36 34 minutes, 36 seconds Got it. Yeah thank you Vijay. Thanks. 34:43 34 minutes, 43 seconds Thank you. The next question is from the line of AI Mata from Mcquaryy. Please go ahead. 34:49 34 minutes, 49 seconds Uh hi team. Uh two questions. First uh you know this April SSG of almost about 6%. Uh you know is is a very stark 34:58 34 minutes, 58 seconds contrast with what you know other discretionary peers are at least suggesting that there's a cautious consumer sentiment post the Iran 35:05 35 minutes, 5 seconds conflict. Now one I wanted to kind of get your thoughts on whether this this strength is more due 35:13 35 minutes, 13 seconds to what we have done would it be right or is it also seen is it like because the industry is going up so you know any thoughts or any uh you know if you could 35:22 35 minutes, 22 seconds give some thoughts over here please thank you uh just to correct you said that April SSH of 6% I never quoted April SSH of 6% 35:30 35 minutes, 30 seconds sorry sir sir not yeah sir I wanted to compare before Sanjay pitches in yeah and I wanted to understand a what 35:38 35 minutes, 38 seconds are other people saying because we don't have access to that so you seem to have better access so at this moment from our 35:46 35 minutes, 46 seconds perspective uh I mean if I look at the change that has happened from say quarter 3 to 35:53 35 minutes, 53 seconds quarter 4 and April something that we are doing seems to be working undoubtedly we are correct and uh let's 36:02 36 minutes, 2 seconds see as to how this pans out no so where where I was coming from is you know if If I were to look at other apparel retailers, you know, not ex 36:10 36 minutes, 10 seconds exactly comparable, but they have kind of stated that there is a some sign of a caution in the consumer sentiment and hence I was uh you know because you have 36:20 36 minutes, 20 seconds at least I was just trying to kind of read maybe from a food industry perspective whether there is a moderation that has been seen by other 36:28 36 minutes, 28 seconds peers which you have bucked the trend and that is where the context so you know the the impact from your 36:35 36 minutes, 35 seconds initiatives is actually very strong but any any sense over there if you could give so we believe that it is work that we 36:43 36 minutes, 43 seconds have done but uh we are the first to go off the blocks in terms of announcing full year and quarter four result so 36:50 36 minutes, 50 seconds we'll wait for all other results before making a definitive statement there okay sir so then in that sense the other 36:59 36 minutes, 59 seconds bit that I wanted to kind of understand is more from you know a structural thing you know while it's encouraging to see KFC deliver 15% growth you know when I 37:08 37 minutes, 8 seconds contrast it with aggregators you know like so just kind of reported today as well they saw almost 19% NOV growth so 37:17 37 minutes, 17 seconds wanted to get your thoughts on this on how do you see your this gap in growth rates behaving over over time 37:24 37 minutes, 24 seconds so I guess we have to I've not seen the uh I've not seen the eternal uh numbers 37:32 37 minutes, 32 seconds uh but one of the things that we just got to uh check here is how much is 37:38 37 minutes, 38 seconds coming in from both advertising revenues and uh improved uh take rates. So I'm 37:48 37 minutes, 48 seconds I'm not making any judgment on uh either front but without seeing this it's 37:56 37 minutes, 56 seconds difficult to comment. I mean if we look at our own business with uh the aggregators it is in line 38:04 38 minutes, 4 seconds more or less with uh you know with our overall SSLg numbers. 38:10 38 minutes, 10 seconds Having said that what's different this quarter has been uh the performance of the dining and takeaway. The delta which used to exist between the dining and 38:17 38 minutes, 17 seconds takeaway is now delivery that has certainly reduced by a big margin. And also over the last one one and a half 38:24 38 minutes, 24 seconds years or two years for that matter our own channel uh own delivery channel our own app performance has continuously 38:32 38 minutes, 32 seconds exceeded uh the delivery partners in terms of the SSG and the growth u and and that's by quite a bit of margin in 38:40 38 minutes, 40 seconds terms of the performance of our own delivery service aggregators. 38:45 38 minutes, 45 seconds Uh would it be okay if I read this comment as over time uh the way we would see is our growth rate as a brand could kind of at least equal or become ahead 38:54 38 minutes, 54 seconds of aggregator industry growth. Is that something that you can see panning out? 38:59 38 minutes, 59 seconds Very difficult to comment but in the very very long run eventually the brand and the aggregator growth rate has to fall in the same line right as long as 39:08 39 minutes, 8 seconds there's kind of arbitrage which is available. So for today also in India the the delivery convenience comes at a 39:15 39 minutes, 15 seconds price which is slightly lower and we have seen in more developed markets that over a period of time the the cost of 39:22 39 minutes, 22 seconds delivery eventually goes up and then the the arbitrage available to few of the customers who 39:30 39 minutes, 30 seconds look at it from a dining versus a delivery channel goes away. So in the very long long run we expect the mix to 39:38 39 minutes, 38 seconds stabilize but now when will that happen it's very difficult to conclude. 39:42 39 minutes, 42 seconds Fair enough sir. That's all from my side. Thank you very much for these comments. 39:48 39 minutes, 48 seconds Thank you. The next question is from the line of Rahan say fromra asset managers. Please go ahead. 39:57 39 minutes, 57 seconds Uh yeah hello good good evening team and thanks for taking my question. Uh sir I want I want understanding regarding your 40:05 40 minutes, 5 seconds Sri Lanka business. So despite macro volatility Sri Lanka has delivered persistent double digit same store sales 40:13 40 minutes, 13 seconds growth. So how much of this structural market share gain versus recovery late normalization and also do you see any uh 40:21 40 minutes, 21 seconds opportunity to express addition in Sri Lanka given the stronger profit profitability profile related to India? 40:28 40 minutes, 28 seconds So yes the the country has gone through a multiple macro or a geopolitical situation impact starting from few years 40:38 40 minutes, 38 seconds uh ago where the economy went down dramatically prior to that there was a covid impact uh now this geopolitical situation yes 40:46 40 minutes, 46 seconds so something or other has been going on it's I think the the strength of the brand and the organization structure which we have at the ground that has 40:54 40 minutes, 54 seconds helped us tide over this situation and also I think the belief in the value strategy. Uh one of the very strong 41:01 41 minutes, 1 second things which we have done over the last two years in Sri Lanka also that we have not taken price increase in line with the inflation that country had seen a 41:10 41 minutes, 10 seconds year or two year and a half ago that country saw a combined inflation of almost 90 95% over a period of 18 months 41:18 41 minutes, 18 seconds and at that time also our price increase was restricted to 50 odd%. So a huge focus on making sure that we we make our 41:25 41 minutes, 25 seconds products more affordable in terms of value that has played a really big hand in helping us drive this doubledigit uh 41:34 41 minutes, 34 seconds SSSG. This of course backed along with the innovations which we have done over the years beat MEL. So while MEL's 41:41 41 minutes, 41 seconds started off well in India and then it lost momentum because of the lack or lack of the marketing budget but in Sri Lanka we continued to back it for a very 41:50 41 minutes, 50 seconds long time. So those kind of innovations have also helped us deliver that double digit SS. 41:55 41 minutes, 55 seconds From a store opening point of view, I think we have opened nine stores this year which is highest in the last three financial years. Uh I think from where 42:04 42 minutes, 4 seconds the where we are in terms of the the margin the SSSG the overall business condition we should be able to 42:11 42 minutes, 11 seconds accelerate store expansion as well in Sri Lanka. uh which could be anywhere between let's say a high single digit or 42:19 42 minutes, 19 seconds uh low early double digits as well. So that possible for the next two to three years. 42:26 42 minutes, 26 seconds Okay. Okay. Fine. I mean that's it from coming. Thank you. 42:35 42 minutes, 35 seconds Thank you. The next question is from the line of Batani from MC Research. Please go ahead. 42:43 42 minutes, 43 seconds Uh yeah. Hi sir uh thanks for the opportunity. Uh sir you mentioned that uh in part of four the LPG while uh the 42:53 42 minutes, 53 seconds KFC level zero closure uh and uh few about 5%. 42:58 42 minutes, 58 seconds Sorry to interrupt. Uh can you please use your handset more? Okay. Okay fine I'll do that. 43:05 43 minutes, 5 seconds Thank you sir. Is it better now? Hello. Yes. Yes please. 43:10 43 minutes, 10 seconds Yeah. So, so my question is that uh you uh have given comments on the LPG shortage leading to about uh zero 43:18 43 minutes, 18 seconds closure in uh KFC and approximately 5% stores in Pizza Hut. Uh that was for quarter 4. So sir just wanted to check 43:25 43 minutes, 25 seconds on the current status uh I mean what you are seeing on ground uh is the situation same as quarter 4 or uh has it worsened 43:32 43 minutes, 32 seconds or has it improved? So just wanted your comments on that. 43:35 43 minutes, 35 seconds So uh while you're saying quarter 4 I'm just clarifying that it's it's the situation was marked. So Janset went comfortable. March was also while 43:42 43 minutes, 42 seconds availability was lesser of a issue than the inflationary energy prices or the gas prices were of more of a concern. 43:50 43 minutes, 50 seconds The April remains the same. So we we haven't seen any KFC closure in April as well. And in fact in case of Pizza Hut 43:57 43 minutes, 57 seconds the closures which was less than 5% in March it has come down. Now it's less than 3% in case of KFC in case of Pizza 44:05 44 minutes, 5 seconds Hut and KFC continues to be zero closure. 44:09 44 minutes, 9 seconds Okay. Okay. Okay. So it it is uh so this uh commentary that was there for that was specifically for March and you're saying that in April it is the situation 44:16 44 minutes, 16 seconds has improved basically the situation has remained same for KFC because it was zero and slightly improve slightly improve. Okay. Okay. Fine sir. Thanks a 44:24 44 minutes, 24 seconds lot and all the best. That's all from my s. 44:29 44 minutes, 29 seconds Thank you. The next question is from the line of Kalia Bang from Capital. Please go ahead. 44:41 44 minutes, 41 seconds Your line is unmuted. Please proceed. 44:45 44 minutes, 45 seconds Yeah. [clears throat] Uh hi sir, this is Percy here. Um so my question was you mentioned uh earlier that over the last 44:52 44 minutes, 52 seconds four five months you have done a lot of work and that is giving you rewards in terms of improved uh sales performance. 44:59 44 minutes, 59 seconds And one of the things you mentioned is that uh uh you have a uh sort of very strong focus on value. Um so apart from 45:08 45 minutes, 8 seconds the uh uh BOGO recruitment uh uh tool uh can you elaborate what exactly you mean 45:15 45 minutes, 15 seconds when you say you have a small strong focus on value? Does it mean that you have launched uh uh more products at 45:23 45 minutes, 23 seconds entry price points or does it mean that you have increased uh uh the intensity of promotion and thereby delivered more value or does it mean something else? 45:33 45 minutes, 33 seconds And uh uh related question to that is that if you have given more value to the 45:40 45 minutes, 40 seconds consumers, what is the uh uh uh while you would have of course gotten more uh transactions 45:47 45 minutes, 47 seconds uh what is the impact on the bill value because of this initiative? 45:53 45 minutes, 53 seconds Yeah. So uh Percy in the past we have run 99 rupee 46:00 46 minutes uh product offers and they have not worked as well. I remember we had a snacker range at 99 and so on and so 46:09 46 minutes, 9 seconds forth. So I think what what is working here is I don't know whether you've seen 46:16 46 minutes, 16 seconds the advertising that we have run along with the 99 46:22 46 minutes, 22 seconds uh uh along with the 99 products uh that advertising is really addressed directly 46:31 46 minutes, 31 seconds at aware non-users and it encourages them to come to KFC and 46:39 46 minutes, 39 seconds uh see the kind of range because that is the consumer that's the simple consumer insight that there are people who are 46:46 46 minutes, 46 seconds aware of the brand but they still don't come in because of u misplaced uh uh you know thoughts in 46:57 46 minutes, 57 seconds their head about the brand. I think this it's a combination of uh behavior changing advertising 47:06 47 minutes, 6 seconds along with a core meal at 99. So these are the two uh things that are working. So we ran a core meal at 299 didn't work as well. 47:18 47 minutes, 18 seconds Also our advertising there didn't uh call out uh and didn't address this aware 47:27 47 minutes, 27 seconds non-trial as um you know effectively as we wanted. So this has been a I think it's a learning experience that we have 47:36 47 minutes, 36 seconds had and perhaps this did well in November December we extended it uh in 47:44 47 minutes, 44 seconds about a third of our stores in uh by January and now in April uh all our 47:53 47 minutes, 53 seconds stores except uh the Tamil Nadu stores are on and impact on bill value. 48:04 48 minutes, 4 seconds So initially we find that there is an impact on there's a difference. So transactions are higher than uh and the 48:11 48 minutes, 11 seconds bill value is negative but over a period of time this closes quite rapidly. So it is also showing that the person comes in 48:21 48 minutes, 21 seconds and then buys other things also. the consumer comes in and buys other things but there'll be about a 300 to 500 basis 48:29 48 minutes, 29 seconds points difference in uh transactions will be higher than SSH. So again per so we are talking about twoprong strategy 48:38 48 minutes, 38 seconds right the 99 rupees mill there is a difference or there's a lower APC over there and higher transaction but then 48:45 48 minutes, 45 seconds what we run in the south market which is the BOGO is at a higher end in terms of the ticket price. So while there is a 48:53 48 minutes, 53 seconds drop in transa drop in ticket prices in north and west because of one particular kind of offer the idea is to drive 49:01 49 minutes, 1 second through a higher ticket price for a different kind of offer which is a bogo offer on select days. So at the organization level what Sanj is saying 49:09 49 minutes, 9 seconds probably a uh anywhere between 2% to 3% from a from a impact on a APC on this 49:17 49 minutes, 17 seconds offers per se. There are other sales which happens where we also drive the pricing up or the ticket price up not 49:24 49 minutes, 24 seconds the pricing up the ticket price up but these are this is a very specific to this particular offer a 2 to 3% drop 49:33 49 minutes, 33 seconds understood and while you mentioned that uh in BOGO the vendors are also participating and it therefore doesn't 49:39 49 minutes, 39 seconds impact your gross margins but what about the 99 rupees uh uh meal uh or uh I I 49:48 49 minutes, 48 seconds mean I'm sure that is at a significantly lower uh GM versus the rest of your average portfolio. So is there any kind 49:57 49 minutes, 57 seconds of impact of GM on that and if so how are you mitigating it? 50:02 50 minutes, 2 seconds So P is actually other way around. Uh we called out that the 99 rupees crisper chicken burger meal that's where the the 50:10 50 minutes, 10 seconds participation is there from the vendor partners not on the boogo side. 50:15 50 minutes, 15 seconds Oh I see. Yeah, I think you understood other way around and uh I also called out 50:22 50 minutes, 22 seconds uh I also called out that as we move forward probably the impact if the vendor partner support is not there also depending upon what kind of mix we drive 50:30 50 minutes, 30 seconds and generate there could be a potential impact of 50 to 70 basis points on gross margin as we move forward. 50:38 50 minutes, 38 seconds Right. Right. So in that case my question would be uh uh is there any significant impact from the BOGO offer 50:44 50 minutes, 44 seconds on the gross margin? the the the yes the answer is yes there is the impact of gobo affair on the on the gross margin 50:52 50 minutes, 52 seconds but it's it's there for that particular day because we don't run it on a continuous basis it's on a select day or couple of days in a month so even if 51:01 51 minutes, 1 second that margin impact is there more than gets made up by the kind of volumes and throughput we see on that particular day 51:08 51 minutes, 8 seconds so overall at a restaurant Iita margin percentage level also it is equity Understood. Understood. That's all from me. Thanks and all the best. 51:22 51 minutes, 22 seconds Thank you. Next question is from the line of Caven Gandhi from Capgrow Capital. Please go ahead. 51:29 51 minutes, 29 seconds Hello. Um uh sir, I just have one question. Uh just wanted to understand that uh the 51:36 51 minutes, 36 seconds expected so when is the expected to be completed? 51:43 51 minutes, 43 seconds So I I your voice was very feeble but I I guess I got your question. It was about the timeline of merger and when 51:51 51 minutes, 51 seconds it's expected to get consumed. Uh am I correct? Is that your question? Yeah. Yeah. That's the question. 51:57 51 minutes, 57 seconds So from a process point of view when we when we announced it on 1st of Jan we called it out that it's a 12 to 15 months process. uh in that process where 52:06 52 minutes, 6 seconds we are currently is our registered office change got approved by shareholders initially subsequently we have received an approval from the 52:15 52 minutes, 15 seconds authority also for the registered office change the formalities will get completed in next two weeks so that's one agenda which will get done the 52:22 52 minutes, 22 seconds second big ticket item is getting approval from uh SEBI we have already had a few round of queries from NSC and 52:30 52 minutes, 30 seconds BSC that's got cleared now uh it's moved to the SEBI uh we expect that clearance probably have to happen over next 30 to 52:39 52 minutes, 39 seconds 45 days. Once that happens with the registered office change in place and the SEBI approval in place, we should be able to go to NCT and make an 52:48 52 minutes, 48 seconds application and NCT approval process can be anywhere between 7 months to 10 months from approval process. 52:56 52 minutes, 56 seconds Parallelly, we will make a CCI application as well. So I would say it looks like by the end of this financial 53:04 53 minutes, 4 seconds year we should be in a position to consume the merger. That's the likely scenario by the end of this financial year. 53:13 53 minutes, 13 seconds Thank you. Thank you. Thank you. 53:19 53 minutes, 19 seconds Thank you. That was the last question for today. I now hand the conference over to Mr. Sanjay Purohit for closing comments. Over to you sir. 53:28 53 minutes, 28 seconds Thank you uh everybody. Like I said good uh quarter bodess well for the fiscal 53:35 53 minutes, 35 seconds going forward and it's been a all round performance. So when you see our ESG 53:42 53 minutes, 42 seconds scores and our uh our uh uh employee engagement scores, these are what 53:48 53 minutes, 48 seconds contribute to the uh and being and continuing to iterate on uh strategy 53:58 53 minutes, 58 seconds till we get it right. I think this is what is enabling us to uh deliver this 54:05 54 minutes, 5 seconds result. That's it from us. Thank you so much. 54:12 54 minutes, 12 seconds Thank you very much on behalf of Safia Foods. That concludes this conference. 54:16 54 minutes, 16 seconds Thank you all for joining us today and you may now disconnect your