Stanley Lifestyles Ltd — Q3 FY26

Stanley Lifestyles Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=SGtbS0M9dlU Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Stanley Lifestyles Limited earnings conference call hosted by MK Global Financial Services Limited. 0:10 10 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:27 27 seconds note that this call is being recorded. I now hand the conference over to Mr. 0:32 32 seconds Saniadra from MK MK Global Financial Services Limited. Thank you and over to you sir. 0:38 38 seconds Thank you Shri. Good evening everyone. I would like to welcome the management and thank them for this opportunity. We have 0:45 45 seconds with us today Mr. Sunil Suresh Chairman and founder, Mr. Wanker Raman Gorti, managing director, Mr. JK Sharat group 0:53 53 seconds chief financial officer and Mr. Abijit Sonat, chief executive officer, retail business. I shall now hand over the conference to the management for the opening remarks. Over to you gentlemen. 1:06 1 minute, 6 seconds Good evening and thank you for joining us. This year marks three decades of 1:12 1 minute, 12 seconds Stanley of leather mastery, manufacturing excellence and brand building. 1:19 1 minute, 19 seconds As we complete this milestone year, we have taken a deliberate pause not to slow down but to strengthen the foundation of the next phase of growth. 1:30 1 minute, 30 seconds Our revenue trajectory remains stable. 1:32 1 minute, 32 seconds However, profitability for the quarter reflects conscious investments and structural transactions we undertook over the past three quarters. 1:42 1 minute, 42 seconds Let me explain this clearly. 1:45 1 minute, 45 seconds After almost three decades of founder growth, we have initiated a structured transition towards institutional leadership. 1:54 1 minute, 54 seconds We inducted a joint managing director and a new retail CEO. Both among the strongest leadership talent for Stanley. 2:03 2 minutes, 3 seconds These leaders represent the new generation for Stanley. 2:10 2 minutes, 10 seconds For approximately 3 months, there was an overlap in senior management roles to ensure continuity and seamless transfer of responsibility. 2:20 2 minutes, 20 seconds This overlap has increased short-term cost but was critical for long-term governance strength. 2:27 2 minutes, 27 seconds We believe institutes institutilization leadership is not optional. It is essential for sustainable growth. 2:38 2 minutes, 38 seconds store expansion and investment phase. 2:41 2 minutes, 41 seconds Over the past three quarters, we opened nine new stores, including Popo stores. 2:47 2 minutes, 47 seconds Six additional stores expected to open in the next couple of months. 2:53 2 minutes, 53 seconds We acquired franchisee operations in Hyderabad and Pune, converting them into company-owned formats. 3:02 3 minutes, 2 seconds We have now expanded our cocoa presence across the top six metros in India. 3:09 3 minutes, 9 seconds However, stores under 36 months of operation yield significantly lower margins than matured stores with a large 3:18 3 minutes, 18 seconds number of recently opened stores in the system. This has temporarily diluted profitability. 3:25 3 minutes, 25 seconds While our Coco stores stores have grown steadily this year, the franchisee channel experienced moderation partly 3:33 3 minutes, 33 seconds due to broader demand softness and projected delays and project delays. 3:39 3 minutes, 39 seconds Importantly, these investments have been deliberate. 3:44 3 minutes, 44 seconds We have invested over 62 crores in expansion in the first three quarters. 3:49 3 minutes, 49 seconds Yet our cash reserves remain at the same level as last year reflecting prudent financial management. 4:02 4 minutes, 2 seconds Strategic sourcing BCC best course country model. We are working diligently to be more and more 4:10 4 minutes, 10 seconds competitive through our strategic sourcing initiatives through our BCC model. This has started yielding good 4:18 4 minutes, 18 seconds results for us and will continue to do so in the future too. 4:23 4 minutes, 23 seconds Brand architecture and network rationalization. 4:27 4 minutes, 27 seconds As part of our three decade reset, we undertake a comprehensive brand architecture review. 4:35 4 minutes, 35 seconds Reviewing existing stores, evaluating underperforming catchments, paused certain expansion, 4:43 4 minutes, 43 seconds rationalization formats were required. 4:48 4 minutes, 48 seconds Some stores had outlived their catchment potential. It was prudent to address this now rather than default defer this difficult decisions. 5:00 5 minutes Market environment and demand outlook. 5:03 5 minutes, 3 seconds Order execution during the year was impacted by residential project handover delays, global macro uncertaintities, 5:12 5 minutes, 12 seconds subdued discretionary demand in certain months. However, traction has improved meaningfully from January onward. 5:23 5 minutes, 23 seconds Data across the six metros where we are present now shows that the premium housing s sales over the past 3 four years have been at historic heights. 5:35 5 minutes, 35 seconds Delays in handover have created a pipeline of premium housing awaiting interior fit outs. We expect deliveries 5:43 5 minutes, 43 seconds to accelerate starting 2026 unblocking significant demand for premium furniture. 5:50 5 minutes, 50 seconds Stanley is now fully present in these markets and well positioned to benefit. 5:57 5 minutes, 57 seconds Regulatory advantages B certification. 6:01 6 minutes, 1 second We obtained our BS certification this month on products covered under QCO among the early movers in the furniture segment. 6:09 6 minutes, 9 seconds With the quality control order coming into effect this financial year, non-certified importers and organized 6:17 6 minutes, 17 seconds unorganized players will face restrictions in the Indian market. We believe this structural shift will favor 6:24 6 minutes, 24 seconds organized, compliant, integrated players like Stanley technology and full home pivot. 6:33 6 minutes, 33 seconds As we pivot from leather specialist sofa manufacturing company to fullome luxury provider, we have passed selectively to 6:42 6 minutes, 42 seconds integrate the right technology platforms, upgrade backend systems, re-calibrate our kitchen and cabinetry 6:50 6 minutes, 50 seconds vertical with the experience we have obtained. 6:55 6 minutes, 55 seconds Autobooks remain robust and we are confident this is integration will strengthen execution capability as we move towards FY27. 7:07 7 minutes, 7 seconds Closing outlook premium housing and branded luxury furniture India remain in early stage of organized growth. To 7:16 7 minutes, 16 seconds summarize again the reset after three decades, organiz organizational restructuring of 7:22 7 minutes, 22 seconds leadership transition, brand architecture and network rationalization, cost optimization through strategic 7:31 7 minutes, 31 seconds sourcing, efficiency and productivity improvements, business enablers through technology enhancement, 7:39 7 minutes, 39 seconds BI certific certifications, full home solutions, the investment ments made this year have 7:46 7 minutes, 46 seconds temporarily compressed profitability but they have structurally strengthened the business. We remain confident of 7:53 7 minutes, 53 seconds delivering quality growth, improved margins and stronger return ratios in FI26 and beyond. 8:01 8 minutes, 1 second I now invite Mr. JK Sharat to walk you through the financial performance. 8:08 8 minutes, 8 seconds Thank you Sunil. Good evening everyone. 8:11 8 minutes, 11 seconds Every investment we make today in stores, people and processes is aimed at reinforcing our position as India's most 8:20 8 minutes, 20 seconds admired luxury furniture company. For the 9 month ended FI26, the company reported revenue from 8:28 8 minutes, 28 seconds operation of 3179 million reflecting a modest year-on-year growth of 1.4%. 8:35 8 minutes, 35 seconds This relatively muted growth is largely attributable to evolving consumer preferences with a visible shift towards 8:44 8 minutes, 44 seconds more value oriented products during this period. Encouragingly gross profits grew 8:50 8 minutes, 50 seconds by 6.2% compared to the corresponding previous last year supported by an improved product mix and continued operational efficiencies. 9:01 9 minutes, 1 second AITA margins remained largely stable at 18.8% in 9 month FI26 9:08 9 minutes, 8 seconds as against 18.9% in 9 month FI25 demonstrating resilience 9:15 9 minutes, 15 seconds at the operation level. However, reported PAT stood at 136 million making 9:22 9 minutes, 22 seconds a decline of 26.1% from 184 million in 9 months FI25. The reduction in 9:29 9 minutes, 29 seconds profitability was mainly due to higher depreciation and finance cost arising from ongoing store expansion and 9:36 9 minutes, 36 seconds strategic investments in growth infrastructure which we believe will support long-term value creation. During 9:44 9 minutes, 44 seconds the 9 months, we opened seven cocoa stores and are progressing on five additional cocoa stores. This resulted 9:53 9 minutes, 53 seconds in higher depreciation and finance cost of 101 million due to lease related accounting impact. 10:01 10 minutes, 1 second These are forward-looking investments preparing us for the next phase of growth. 10:08 10 minutes, 8 seconds For the third quarter December 31st 2025, revenue from operations stood at 10:15 10 minutes, 15 seconds 1038 million reflecting a decline of 5.4% 4% yearonear primarily impacted by 10:22 10 minutes, 22 seconds nearterm demand softness after considering the impact of new labor loss 10:29 10 minutes, 29 seconds margins moderated at 11.9% in Q3 FI26 compared to 18.7% in Q3 FI 2025 10:39 10 minutes, 39 seconds representing a contraction of 680 basis points largely due to operational delever and cost associated with recent 10:48 10 minutes, 48 seconds expansion During the quarter, the company reported a marginal loss of 2 million at PAT level as against a profit of 89 million in the corresponding period last year. 11:00 11 minutes The decline in profitability was mainly attributable to higher depreciation and finance cost along with expenses 11:08 11 minutes, 8 seconds relating to new store additions that are yet to reach optimal utilization and deliver commensurate returns. Higher 11:16 11 minutes, 16 seconds amotization and finance cost from new store additions had a short-term impact. 11:22 11 minutes, 22 seconds However, these strategic investments will strengthen our retail footprint and support future profitability. 11:30 11 minutes, 30 seconds We will now open the floor for questions. 11:37 11 minutes, 37 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 11:45 11 minutes, 45 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking 11:53 11 minutes, 53 seconds your question. Ladies and gentlemen, we wait for a moment while the question queue assembles. 12:08 12 minutes, 8 seconds The first question is from the line of Risha Mata from Green Edge Wealth. Please proceed. 12:15 12 minutes, 15 seconds Yes, good evening and thank you uh for the opportunity. So you know the first is on the growth part right. So uh if you look at you know your commentary 12:23 12 minutes, 23 seconds basically project handovers uh will uh accelerate only by the end of FY27 and also the consumer is shifting or 12:32 12 minutes, 32 seconds downtrading or um you know to more value oriented products. So with that then you know how do we look at growth internally for us as a company. 12:43 12 minutes, 43 seconds So if you really look at uh how we have kind of uh you know moved from our typical uh home market and now have a 12:52 12 minutes, 52 seconds clear presence in the top six metros. Uh there is definitely a solid pipeline that is you know expected in terms of 13:00 13 minutes the premium homes and luxury homes that have been sold over the last 3 to four years which normally take between 4 13:08 13 minutes, 8 seconds years to 4 and 1/2 years to come for delivery. So we are very excited in terms of the number of projects that have already been sold probably a bit 13:17 13 minutes, 17 seconds delayed and they're all going to come to handover starting from FI26. 13:21 13 minutes, 21 seconds So while there has been a a small little you know what you can call as a sentiment uh in terms of how things were 13:28 13 minutes, 28 seconds in the last uh uh last 6 months or so with the you know global headwind uh and also the project coming into delivery 13:36 13 minutes, 36 seconds will definitely accelerate our uh you know offering to the market. 13:44 13 minutes, 44 seconds No sorry my question was then you know how do we how are what growth are we targeting let's say for the next for FI27 considering the macro consumer 13:53 13 minutes, 53 seconds sentiment is not supportive and handover of projects only happen by the end of FI27 uh you know while we've been 14:00 14 minutes articulating uh you know our aspiration of 20% plus kind of a revenue caggr but right now you know we are nowhere close 14:08 14 minutes, 8 seconds to that so just from a realistic standpoint what would you be your revenue guidance for the next one financial considering the macro situation. 14:16 14 minutes, 16 seconds So for you to understand that actually our pivot towards full solutions have turned out very positive and if I look 14:24 14 minutes, 24 seconds at how our KCD order book looks compared to December of last year. So basically when I say the kitchen business comes in first followed by loose furniture later. 14:35 14 minutes, 35 seconds Last year December we had an order book of roughly about 12% of our total order book coming from kitchen and cabinetry. 14:43 14 minutes, 43 seconds This year on December 31st it has gone up by 20%. So almost 30%. So the pipeline for us to do complete homes are 14:51 14 minutes, 51 seconds increasing. So thereby the average ticket size of each customer will jump almost six to sevenfold. So that is how 14:59 14 minutes, 59 seconds we are pivoting from our loose furniture brand towards a complete home solution brand. So this will definitely kind of 15:06 15 minutes, 6 seconds you know what you can cascade into a much higher sales as we go forward. 15:12 15 minutes, 12 seconds Would you want to quantify your guidance for revenue growth overall at a company level for FI27? 15:19 15 minutes, 19 seconds Uh basically like I said in terms of our approach we are looking at a very healthy and you know profitable growth. 15:26 15 minutes, 26 seconds So at this point in time we will not be able to give you a number as to what we are projecting because we are in the process of budgeting and we will 15:34 15 minutes, 34 seconds probably give it to you by Q1 and on the store addition. So I think for the full financial year we would be 15:42 15 minutes, 42 seconds at plus 9 uh stores right? Uh we would have added nine stores. Oh, I think by 15:48 15 minutes, 48 seconds the end of probably uh April, maybe not March, but by April, I think we should be having altogether 15 stores out of 15:57 15 minutes, 57 seconds which we have 12 Coco and three PCO stores coming in, including Yeah. 12 12 Koko. Am I right? 12. 16:05 16 minutes, 5 seconds No. So, we currently have No, no, I'm talking about how many stores this year total. 16:10 16 minutes, 10 seconds Correct. So, nine we have opened till December already opened. We have another six in the pipeline. In that five is 16:18 16 minutes, 18 seconds cocoa and one is total coco how many? Total coco is 12. Total coco is 7 + 5. 16:26 16 minutes, 26 seconds 7 + 5 makes it 13. 12. 12. 12. 16:30 16 minutes, 30 seconds So total cocoa stores will be 12 and three four stores. So we have already opened nine out and the six are pending. 16:38 16 minutes, 38 seconds they are they're confident of doing in between now and uh Q1 within within the early Q1 we will do it. 16:46 16 minutes, 46 seconds Uh and you know uh lastly the employee expenses and the other operating expenses are growing at a much uh higher 16:54 16 minutes, 54 seconds pace versus the revenue growth. Uh any comments there and where do we see the quarterly run rate settling especially 17:01 17 minutes, 1 second for the employee cost? Sure. I think I I was uh quite clear about that in my uh commentary and actually as I told there 17:09 17 minutes, 9 seconds has been a senior management change and there has been a transition period. So probably for almost 3 months we had an 17:16 17 minutes, 16 seconds overlap and that will start settling down by the end of this uh this quarter. 17:22 17 minutes, 22 seconds Plus also because of the new labor code we had to take a one-time hit in terms of uh employee benefits for graduity and 17:31 17 minutes, 31 seconds leave an on-time hit was uh there and plus also a recurring hit because of the change in the regulation has come and all these has hit our uh employee cost. 17:42 17 minutes, 42 seconds It's quite a large number actually close to 9 million. Sure. Thank you. 17:50 17 minutes, 50 seconds Thank you. 17:52 17 minutes, 52 seconds Thank you ladies and gentlemen. In order to address questions from all participants in the conference, please limit your questions to three per participant. 18:05 18 minutes, 5 seconds The next question is from the line of Madurus Raji from Counteryclic Investment. Please proceed. 18:13 18 minutes, 13 seconds Sir, I'm trying to understand that uh since we are in the luxury uh furniture space, what impact with quality control 18:21 18 minutes, 21 seconds order have because I understand mostly the unorganized sector would be at the entry level cheap furniture uh stage. So 18:29 18 minutes, 29 seconds are you really expecting some significant tailwind from the QCO order? 18:35 18 minutes, 35 seconds Uh yes as uh most of our competition is imported furniture and the uh compulsory 18:44 18 minutes, 44 seconds of uh making it BIS and QCO coming in. I think we will definitely be benefited because we have already applied for and 18:52 18 minutes, 52 seconds already got certain BIS certifications done. So we are quite positive about the impact on our company with the QCO being implemented. 19:03 19 minutes, 3 seconds uh while I think unorganized sector will find it fairly difficult uh know companies such as ourselves who are 19:10 19 minutes, 10 seconds basically you know compliant and are already certified will probably have a a 19:18 19 minutes, 18 seconds couple of years lead ahead we we remain very positive about that now s another question basic question is 19:26 19 minutes, 26 seconds on the uh top line which doesn't seem to be growing from FY23 levels we are stuck at around 400 450 levels even though the 19:36 19 minutes, 36 seconds net worth has significantly expanded thanks to the IPO proceeds. So uh all that capital even though net worth has 19:44 19 minutes, 44 seconds uh over doubled still when will it start showing in the top line? You you if you heard my commentary I think we were 19:52 19 minutes, 52 seconds quite clear we have completed three decades in business now and this has been a a small pause for us to kind of 20:00 20 minutes restructure do the entire brand architecture which I think we are almost completing by the end of this financial year and we are very positive that 20:09 20 minutes, 9 seconds you'll start seeing a lot of growth. So you know in terms of also our store aging if you really look at it you know 20:16 20 minutes, 16 seconds we have uh close to about uh 50%. 20:20 20 minutes, 20 seconds 50% of our stores are under 3 years which are basically still at very young young age in terms of the maturity. So 20:28 20 minutes, 28 seconds we expect that due course of the next financial year they will all many of them will start coming to a higher profitability and maturity. So that's how we are positioned right now. 20:39 20 minutes, 39 seconds Now sir uh we have over around 190 kores which is like 20% of our market cap so and we remain debt free so any plans to 20:49 20 minutes, 49 seconds do a share buyback so that the future growth can get divided on a smaller base and EPS can increase 20:56 20 minutes, 56 seconds no at this moment like I said we are fairly busy and been very involved in you know doing the reset for the 21:03 21 minutes, 3 seconds company. uh we are going to go ahead and do do some good performance in the due course of next quarter and we'll think about it later. 21:12 21 minutes, 12 seconds And so what about the rupee depreciation since we are also importing quite a bit so uh how are our margins getting hit or 21:21 21 minutes, 21 seconds or have we taken some kind of price hike in recent times? 21:25 21 minutes, 25 seconds Not really. But then I think our entire you know kind of pivot towards moving 21:32 21 minutes, 32 seconds away from expensive European imports towards BCC or what we call as best country suitable or localization. Those 21:41 21 minutes, 41 seconds things have started to play out and I think we are well positioned to kind of derisk ourselves from forex volatility. 21:50 21 minutes, 50 seconds Sir, are we looking at exports to US and EU after the recent deals? 21:56 21 minutes, 56 seconds Uh, at the moment, I think we are very clearly focused. While our B2B business has been showing a lot of good inquiries 22:05 22 minutes, 5 seconds and orderbook expansion, our focus will remain on B2C. And uh since we are investing in acquiring multiple uh you 22:14 22 minutes, 14 seconds know franchises in cities we are going to be very focused as a B2C brand. Sir and in page number six of your 22:21 22 minutes, 21 seconds presentation it says 61% stores are coco 9% are and 30% is others. Others meaning what? 22:29 22 minutes, 29 seconds Others is basically B2B. 22:32 22 minutes, 32 seconds We have a mix of B2B and B2C. 70% of our revenue is B2B B2C 22:39 22 minutes, 39 seconds B2C which is a mix of cocoa and fo and 30% is B2B answer what are our capex plans going 22:47 22 minutes, 47 seconds ahead so we have completed our uh you know capex projection for this year and as I 22:55 22 minutes, 55 seconds mentioned to you despite investing 63 crores our uh you know cash reserves are uh exactly the same where we were last 23:03 23 minutes, 3 seconds year so at the moment we budgeting I think we will basically be able to give you better clarity by the end of Q1. 23:12 23 minutes, 12 seconds So all the funds that we have 190 K or thereabouts it's it's for working capital uh usage going forward. 23:19 23 minutes, 19 seconds So it is it will be a mix because as per the fund utilization we have raised in the IPO we have part partially utilized 23:28 23 minutes, 28 seconds the proceeds which we have realized. The whole working capital requirement which was raised has already been utilized and 23:35 23 minutes, 35 seconds consumed by us. The remaining will be for our um new stores opening which we plan for the next couple of years. As 23:43 23 minutes, 43 seconds per the prospectus, we have close to 78 crores which we still have as part of our IPO process which are yet to be 23:51 23 minutes, 51 seconds deployed and as per our IPO plan, we will be deploying it in the next couple of years out of the 190 uh out of the 190. Yes. Yeah. 24:00 24 minutes So lastly, I just wanted to understand that do we enjoy any uh let's say uh advantage in the production side? Is our 24:10 24 minutes, 10 seconds cost of production lower than the competition? Let's say God interior or or whosoever is our competitor. Uh where 24:17 24 minutes, 17 seconds do we have the edge? Is our cost of production cheaper or I mean we are fully integrated. What would you say is our USP? 24:25 24 minutes, 25 seconds So please understand that our segment where we are catering to is much higher than what others are playing other 24:34 24 minutes, 34 seconds Indian organized players are actually playing. So for us the competition is primarily European imports and other the Chinese imports and so on and so forth. 24:45 24 minutes, 45 seconds So I we don't look at segment wise competition direct competition with uh the companies that you mentioned. So I 24:54 24 minutes, 54 seconds think we are mostly bespoke manufacturing and customization is our most important USP and we will continue 25:02 25 minutes, 2 seconds to do it. We are not in the mass production. We are in what you call as handcrafted bespoke production and our 25:10 25 minutes, 10 seconds customer base is uh normally homes with more than two to three crores investment in their you know residential projects. 25:19 25 minutes, 19 seconds We don't cater to you know homemakers below 3 crores of residential budget. 25:25 25 minutes, 25 seconds So since our competitors are are foreign companies like Gautier of France etc. So with the recent EU FDA deal, I hope the 25:34 25 minutes, 34 seconds I mean we'll not be flooded with European uh furniture imports and No, no, no. So basically that is the yes. 25:42 25 minutes, 42 seconds Yeah, that is exactly the you know the touch point that you have to understand the VA certification and QCO is doing 25:50 25 minutes, 50 seconds exactly what it did to footwear and toys five six years ago. If you realize that same QC was applied on footwear and toys and now it's being applied on furniture. 26:01 26 minutes, 1 second So it will definitely block you know certain imports and as we look at it as we expand our base and are able to kind 26:10 26 minutes, 10 seconds of uh give the similar quality. We believe that you know when we have a higherend competition we normally win 26:18 26 minutes, 18 seconds because our speed to market we are able to deliver our loose furniture in four to 6 weeks whereas they take almost four to 6 months so that's the kind of 26:27 26 minutes, 27 seconds advantages we have so as the market is getting more and more premiumized our business is going to thrive that is how 26:34 26 minutes, 34 seconds we are positioning ourselves and so lastly in Bangalore s what percent of our revenue is coming so with this if the IT sector gets disrupted 26:43 26 minutes, 43 seconds then I mean we can might get hit because after all they are the uh highly paid white collar uh segment which is our customer base. So any thoughts on that? 26:54 26 minutes, 54 seconds So again I think when you look at uh I understand your concern in terms of it getting disrupted but actually even in 27:03 27 minutes, 3 seconds our value premium segment it is typically the CXO level of it that actually start with it. So we are not in 27:12 27 minutes, 12 seconds the you know market segment where the typical IT employees are our customers. 27:17 27 minutes, 17 seconds When we look at our customer profile it is a very uh you know it normally starts with CXOs but we cater to lot of HNIs. 27:27 27 minutes, 27 seconds We cater to lot of our mix is very very large. We have SMS owners. We have a a 27:35 27 minutes, 35 seconds very huge uh mix in terms of bankers and you know that that corporate honchos actually we don't cater to normally I 27:44 27 minutes, 44 seconds could say in a way that for you to understand 90% of our customers are employers and not employees. 27:52 27 minutes, 52 seconds Thank you very much. 27:54 27 minutes, 54 seconds Yeah. Thank you. Thank you. 27:59 27 minutes, 59 seconds The next question is from the line of Mjit from Samia Advisor. Please proceed. 28:05 28 minutes, 5 seconds Uh thank you for taking my questions. Uh sir, I just wanted to again touch upon them on a revenue growth in a slightly 28:12 28 minutes, 12 seconds longer time frame. When I look at March 2023 end, we had about uh uh the store 28:19 28 minutes, 19 seconds count when the store count now our store count has gone up by about 33%. Whereas our B2C business has grown by about 10% 28:27 28 minutes, 27 seconds in this roughly 3 years now. Right? So why is this revenue growth lagging the store count group growth with such a wide margin? I'm not able to understand that. 28:37 28 minutes, 37 seconds Oh, that's exactly what you know if you look at our store aging normally as we have always mentioned that we require 28:44 28 minutes, 44 seconds about between 24 to 36 months for our stores to come to maturity. Currently when we when we looked at FY23 probably 28:54 28 minutes, 54 seconds we had stores that were fairly matured but today more than 50% of our stores are under 24 months. So we are still in 29:02 29 minutes, 2 seconds the process of maturity. So this you will see the you know what you call as result unfold due course of the few quarters going forward. 29:12 29 minutes, 12 seconds So sir then look is my understanding correct that the 35 stores which you have shown as more than 3 years old sold which are our mature stores have these 29:20 29 minutes, 20 seconds stores been regrowing or do they have negative FFSG? 29:24 29 minutes, 24 seconds So some of them probably have because like I have mentioned that we are looking at there were some very legacy stores which have outlooked outlived 29:33 29 minutes, 33 seconds their catchment area. So we are doing what we call as either we are you know changing the brand from a probably a 29:42 29 minutes, 42 seconds lower medium for from our premium to our value premium brands or we're relocating the stores and also the pivot is 29:50 29 minutes, 50 seconds happening in the company as far as you know we are moving from loose furniture to a complete home solution provider. So that's a changing process at this point in time. 30:02 30 minutes, 2 seconds And sir on this point of moving from use to a full home solution I think we are 30:09 30 minutes, 9 seconds statistic I think that in terms of more% of an owner who has now become a full home sort of you know a more composite 30:16 30 minutes, 16 seconds owner than just a loose producer order did you mention any mix over there yeah so essentially like I mentioned to your other question earlier if you look 30:25 30 minutes, 25 seconds at December 24 our order book position our uh you know what you call as full 30:32 30 minutes, 32 seconds home orders or our cabinetry orders was only 12% and our loose furniture order was 88%. 30:40 30 minutes, 40 seconds And this year FYI 25 it is grown by 20%. 30:44 30 minutes, 44 seconds So we have our KCD and full home order book is at 37% versus 12% and we have grown by 20%. So 30:52 30 minutes, 52 seconds thereby we are very clear that once we get into the house with kitchen and cabinetry the loose furniture also will start following. So that is the shift 31:00 31 minutes that we are you know uh we aim for and we are getting there. 31:06 31 minutes, 6 seconds Okay. And sir employee expenses I understand there has been sort of you know investments right now to strengthen the uh you know uh corporate team. Uh 31:14 31 minutes, 14 seconds the 19 cr quart quarterly number we see in Q3. Is this the new 19 cr will settle lower going? 31:24 31 minutes, 24 seconds Sorry um we missed your voice. It was not clear. Can you repeat it again? It was not clear. 31:29 31 minutes, 29 seconds No, I was just checking the 19 crores of monthly expenses we see in Q3 quarter. 31:35 31 minutes, 35 seconds You mentioned that there is some off investment right now for the foundation. 31:39 31 minutes, 39 seconds So I wanted to check how will this 19 cr settle going ahead. 31:45 31 minutes, 45 seconds So primarily what happens this increase constitutes of two three items. One key 31:52 31 minutes, 52 seconds item which is increased is more of the labor code impact which has come. 31:58 31 minutes, 58 seconds Overall we have an impact of about 9 million in the quarter which we have taken because of the new labor code which has come and uh the past service 32:07 32 minutes, 7 seconds liability which we have taken. The second key impact item is because of the new stores which we have opened. There 32:14 32 minutes, 14 seconds is a increase in the employee expenses which has come because we will have employees also being coming in each of these nine new stores which has come and 32:23 32 minutes, 23 seconds the other key piece is the transition which Sunil spoke about because we had onboarded new leadership team. We had 32:32 32 minutes, 32 seconds in the quarter both uh two both both old CEO and new CEO working new MD old MD were there because of which the salary 32:41 32 minutes, 41 seconds is uh you know sort of higher in this quarter which over a period of time will sort of even out. 32:49 32 minutes, 49 seconds Okay. My last question was uh you know has a Bangalore cohort overall uh you know uh shown equivalent performance to 32:57 32 minutes, 57 seconds other city stores or has Bangalore been more subdued than the you know non-bangular stores. That was my last question. Thank you. 33:05 33 minutes, 5 seconds So no he's asking how has been our growth in each of the so actually when you look at it just 33:13 33 minutes, 13 seconds about 24 months ago almost I would say 66 to 67% of our entire business was 33:20 33 minutes, 20 seconds dependent on Bangalore but after acquiring our partners in Hyderabad and also now expanding in Chennai and 33:28 33 minutes, 28 seconds Hyderabad and Pune we acquired our partners so Pune has grown by almost 250 33:34 33 minutes, 34 seconds odd % compared to last year. Hyderabad has grown by almost 30 35% and Chennai has grown by about 35. No, Hyderabad has 33:43 33 minutes, 43 seconds grown more Chennai 50% Chennai 30% Chennai has grown by 35%. So so we see that in the due course of the next three 33:51 33 minutes, 51 seconds to four quarters I think our business will be fairly evenly spread among five of the six metros because in Bombay we 33:59 33 minutes, 59 seconds still struggle due to nonavailability of real estate. Other than that, I think we have expanded in all the other metros. 34:06 34 minutes, 6 seconds So, it'll even out and we are hoping to have a more even play across the six metros in the due course of next three to four quarters. 34:14 34 minutes, 14 seconds Okay. Thank you sir for questions. Thank you. 34:21 34 minutes, 21 seconds Thank you. The next question is from the line of Koshik Padar from KB Capital Markets. Please proceed. 34:30 34 minutes, 30 seconds See two things. uh I think some time back you had uh said that in 3 years you'll be reaching a figure of 1,000 cr 34:38 34 minutes, 38 seconds uh is that intact and number two with the number two question is u the furniture control order do you see the 34:46 34 minutes, 46 seconds import of furniture coming down with that yes yeah let me articulate it that once 34:53 34 minutes, 53 seconds again so we had always mentioned that it would be thousand working days so that's technically you know what it was anyway nevertheless I think we are definitely keyed into getting towards that number. 35:04 35 minutes, 4 seconds There is no change. Of course, like I said, there has been a small little, you know, pause in the last couple of quarters to realign our entire brand 35:13 35 minutes, 13 seconds strategy and uh looking at how the you know winds are favoring us. We are very positive that uh you know with the QCO 35:21 35 minutes, 21 seconds and everything the imports coming down I think we are probably one of the few companies in India who are well positioned to cater to the premium and luxury demand demand that is emerging. 35:34 35 minutes, 34 seconds Okay. And the quality control order uh the import coming that you see import coming down. 35:39 35 minutes, 39 seconds Absolutely. Absolutely. I think uh basically like I said the BA certification process has already started. They are one of the first early 35:46 35 minutes, 46 seconds guys to have already got certain B certifications done. So I think that is really going to favor organized players in India. 35:56 35 minutes, 56 seconds Now the,000 cr in thousand days I mean right now has the period been prolonged by say another 200 300 days or where is it? 36:06 36 minutes, 6 seconds So like I mentioned to you we have done this structural change. Our uh intentions are very clear. We have to get to that milestone and we are 36:13 36 minutes, 13 seconds definitely working towards that. You know we have seen that in the last 6 7 8 months there has been major global headwinds that kind of you know played 36:22 36 minutes, 22 seconds out with tariffs being implemented on Indian sentiments. Uh in our customer profile was a bit slow. They have uh you 36:30 36 minutes, 30 seconds know I think postponed high ticket purchases. Uh I think those winds are once again changing. I think January we 36:37 36 minutes, 37 seconds have seen a more uh potential walk-ins in our stores and we remain very positive about that. 36:44 36 minutes, 44 seconds And my last question what is your prognostic uh prognosis of gross profit margin and uh operating profit margin in 36:52 36 minutes, 52 seconds in another say another two years say FYI 29. 36:57 36 minutes, 57 seconds So I think with uh I think with with all the you know developments in terms of our uh you know purchasing and scale 37:04 37 minutes, 4 seconds coming into the business we believe that we are positioned to kind of of course I think we have to look at how the aging of the stores play out because we still 37:13 37 minutes, 13 seconds have a lot of young younger stores as we call but eventually our vision is very clear that with the premium and luxury 37:20 37 minutes, 20 seconds positioning we need to have a premium margin. 37:24 37 minutes, 24 seconds Yes mean gross profit margin my last question the gross profit margin around 55 to 60% and operating profit margin around say 20%. 37:34 37 minutes, 34 seconds No, so the gross profit margin currently whatever we have uh is we have also mentioned earlier is something which is 37:42 37 minutes, 42 seconds sustainable. That's where you'll see that because of our lot of efforts in uh localization product mix and changes uh 37:51 37 minutes, 51 seconds in the operational efficiencies which we have bought in as a strategic effort over a period of time. You see a very 37:58 37 minutes, 58 seconds consistent and more um recurring kind of a uh benefit coming in. That's where these numbers which we have are more 38:06 38 minutes, 6 seconds sustainable numbers and we are confident that we continue to have it or maybe slightly better it as we go depends on 38:14 38 minutes, 14 seconds the various other parameters. Uh operating profit like Sunil said it's more a factor of how our new stores 38:22 38 minutes, 22 seconds perform and what is the mix of our new store versus old store. Like currently we have 50% of our stores which are less 38:29 38 minutes, 29 seconds than 3 years and 50% more than uh 3 years. We are currently looking at all the stores which are underperforming and 38:38 38 minutes, 38 seconds plus we are also opening a lot of new stores in the current year. So this mix will play a lot of 38:47 38 minutes, 47 seconds what do you say influence a lot of margins which will be there in short term because we are making lot of investments and you would see the 38:55 38 minutes, 55 seconds investments are initially getting recognized but over a period of time once this amortization interest cost etc 39:02 39 minutes, 2 seconds which is an accounting matter and lease accounting is sorted then you'll have a much better financial position which 39:11 39 minutes, 11 seconds will get reflected So you're not committing anything on the operating profit margin? 39:17 39 minutes, 17 seconds No, we we don't give any guidance on future numbers. Okay. Thank you. Thank you. Thank you. Okay. 39:26 39 minutes, 26 seconds Thank you. The next question is from the line of Sedat from IOP PM. I thought please proceed. 39:34 39 minutes, 34 seconds Hi sir. So my qu first question is like what kind of margins do you earn on uh 39:43 39 minutes, 43 seconds cocoa retail versus the B2B business 39:50 39 minutes, 50 seconds our margins more or less remain same the the way we work in coco business fo I'll 39:57 39 minutes, 57 seconds first take the fo business fo business is a franchisee owned franchisee operated it is a cash and carry 40:04 40 minutes, 4 seconds business. We sell to them and immediately that comes to our revenue and it it increases our uh overall uh 40:13 40 minutes, 13 seconds profitability. In a cocoa model, we we have our own stores where we incur the rentals where we incur the store uh 40:22 40 minutes, 22 seconds people and it is more monitored by us net. Our focus has been on our cocoa 40:29 40 minutes, 29 seconds model and our cocoa margins are higher provided we have an operating leverage which we achieve over a period of time 40:37 40 minutes, 37 seconds which is what we are trying to work on and uh get to that level. But yes see the the we we we are also working 40:46 40 minutes, 46 seconds towards getting a better mix of cocoa and fo because some of the cities we have seen that fo model is what works 40:53 40 minutes, 53 seconds better than a cocoa model. What is the six metros we have? 40:56 40 minutes, 56 seconds Yeah. But our focus on the six major metros continue to remain as a cocoa and we continue to invest in these in the 41:03 41 minutes, 3 seconds cocoa format and we see lot of benefits coming out of this because also the we work on the tailwind of the RAR and the 41:11 41 minutes, 11 seconds housing. This one the luxury means the more than one and a half crores housing which are launched plus also which are expected to come for deliveries in the 41:21 41 minutes, 21 seconds next couple of years. You will see in these six cities, six major cities, there is a big spike which is expected 41:28 41 minutes, 28 seconds in the next two years uh for uh deliveries for deliveries in these uh cities. So that way we we we look 41:36 41 minutes, 36 seconds forward to lot of uh growth in these cocoa stores. 41:40 41 minutes, 40 seconds Understood. But like if I'm uh correct me if I'm wrong uh does the 44 uh 41:49 41 minutes, 49 seconds uh stores require lesser working capital for you guys. 41:56 41 minutes, 56 seconds Yeah absolutely right. So the way it works is while we manage the branding store um positioning etc etc and provide 42:04 42 minutes, 4 seconds all the support to the fo stores we we don't make any investment in the 42:11 42 minutes, 11 seconds cost uh employees etc etc and it's also cash and carry completely. 42:19 42 minutes, 19 seconds So it's a it's a more cash and carry business where we sell it to them and they based on the order stock it and then uh they sell it to the end 42:28 42 minutes, 28 seconds customers. So it's a it's a you can in a sense say that I have less working capital and capex spend in for model. 42:37 42 minutes, 37 seconds Yeah, thank you. Next question is from the line of Danchu. 42:46 42 minutes, 46 seconds You may proceed. 42:49 42 minutes, 49 seconds Yes sir. Hi. Uh sir, you have been talking about this QCO thing for a while and thankfully it has come to fruition. 42:58 42 minutes, 58 seconds Now uh just couple of things here. one you indicated that a part of BIS certification has been uh achieved for 43:07 43 minutes, 7 seconds your operations right so what exactly that mean and uh for full certification as in by when are you expecting our 43:15 43 minutes, 15 seconds factory premises to be fully BIS certified yeah so it is we have a lot of different 43:24 43 minutes, 24 seconds SKS and quite a lot of SKs have already been certified we are in the process and we are very confident that in the due 43:31 43 minutes, 31 seconds course of next one or two months we should be able to get almost 90% of our SKUs certified under BIS and probably we 43:39 43 minutes, 39 seconds are one of the first guys to also kind of uh you know get our BI certifications. 43:46 43 minutes, 46 seconds Okay. So by Q4 the full BIS certification should be uh achieved right or maybe say by Q1 Q1 FI 27. 43:57 43 minutes, 57 seconds I see the BS B also is I would say completely choco block with hundreds of 44:05 44 minutes, 5 seconds people approaching them and the government is very clear that first they want to clear the Indian manufacturing before even looking anything at you know 44:14 44 minutes, 14 seconds foreign manufacturers. So I think it's going to be a long drawn process. We are expecting definitely to complete almost 44:22 44 minutes, 22 seconds 90% by hopefully end of Q4 itself and I don't see any impact on uh that coming into you know play for us. 44:32 44 minutes, 32 seconds Okay. Okay. And uh last bit from my end uh typically whenever there are such implementation 44:40 44 minutes, 40 seconds uh the channel sort of sees huge uh flooding of uh inventory right just uh to save themselves from an expected BIS 44:49 44 minutes, 49 seconds implementation by the government. Are you noticing the such a trend? Because we have seen uh such things happening uh 44:57 44 minutes, 57 seconds in the footwear space uh where typically the channel was flooded with excess inventory. Uh uh and it took 45:07 45 minutes, 7 seconds some uh a good amount of time first to sort of liquidate that channel inventory and then uh the benefits of BIA sort of 45:15 45 minutes, 15 seconds started to come to fruition. So do you also anticipate uh such things to happen? uh in in your industry as well. 45:23 45 minutes, 23 seconds So you are right actually probably this QCO thing has been in the in the you know in the market for the last uh I 45:31 45 minutes, 31 seconds would say at least two to three quarters and uh we have seen some amount of uh you know inventory build up with 45:38 45 minutes, 38 seconds importers because they were concerned and now the gazette is passed everything is awaited so there has been an impact I 45:45 45 minutes, 45 seconds think which is behind us I don't see that ahead of us and uh since we have passed through this I think we are going to see better quarters is coming forward 45:54 45 minutes, 54 seconds and I and we're also told that already the customs have started you know blocking uh the import so there are challenges for importers going forward. 46:06 46 minutes, 6 seconds So that's fair but whatever has been imported so they they will have some stock existing in the channel right so 46:14 46 minutes, 14 seconds will that take some time to uh get liquidated it could be I wouldn't want to really comment on that but because I said this 46:23 46 minutes, 23 seconds is always been there for the last three four quarters and I think uh there was a lot of inventory buildup I I'm not too 46:30 46 minutes, 30 seconds sure and also the market being a bit subdued I think what we realize is the most of the importers are still stuck 46:37 46 minutes, 37 seconds with some unsold inventories and are finding it bit difficult. So I wouldn't really be in a position to give you the 46:45 46 minutes, 45 seconds but it won't be such a unlike in footwear and other things these are very bulky products so they also need a lot 46:52 46 minutes, 52 seconds of storage spaces so you know I don't think we are going to be impacted like how the footwear industry importers were impacted. 47:02 47 minutes, 2 seconds Fair enough sir. Thanks for taking my question. Thank you. 47:10 47 minutes, 10 seconds Thank you. The next question is from the line of Arvind Aurora from Aquare Capital. Please proceed. 47:18 47 minutes, 18 seconds Hello. Am I available? Yes sir. 47:24 47 minutes, 24 seconds Yeah. So sir uh what's your uh change in your strate strategy that you are focusing that the whatever milestone 47:31 47 minutes, 31 seconds that we are setting like 1,000 cr we will be able to achieve and sun specifically for you like uh what will be your role going forward since there 47:39 47 minutes, 39 seconds is a change in the management that we can see I don't know whether you heard me speak in my commentary so we are in that 47:47 47 minutes, 47 seconds little pause phase where we are actually structuring ourselves much better and as I mentioned this was very crucial After 47:54 47 minutes, 54 seconds three decades of our presence, we realized that this was an essential investment to do in terms of getting the top management and in terms of doing a 48:03 48 minutes, 3 seconds bunch of I would say brand architectural changes which is all going on as we speak. So while our intentions are very 48:10 48 minutes, 10 seconds clear and our targets remain the same, we had to go through this little phase. 48:17 48 minutes, 17 seconds No, I understood sir setting up a target is a one thing and then taking steps like I understood that and I heard you 48:25 48 minutes, 25 seconds clearly that there is a change in the management but if you can throw some light uh because these things we are listening from last one two years 48:32 48 minutes, 32 seconds correct but if we see the revenue numbers and everything so the the moments are not visible so if you can 48:39 48 minutes, 39 seconds throw some lights like uh little bit in detail so that we investor can understand like what's going on like So that would be easy for us. 48:49 48 minutes, 49 seconds So basically like I mentioned uh you know uh I think we are focusing on this uh six major uh you know change 48:56 48 minutes, 56 seconds implementation. One is basically organizational restructuring latest leadership transition uh after our three 49:04 49 minutes, 4 seconds decades of play. brand architecture, network, uh rationalization, cost optimization, strategic sourcing, 49:12 49 minutes, 12 seconds efficiency and productivity improvements because we realize that with scale our profitability will improve. So we are doing that uh you know in terms of 49:20 49 minutes, 20 seconds getting our productivity and efficiency improved business enable through technology that was something that was missing. So we realized that it would be 49:28 49 minutes, 28 seconds dangerous to scale without getting the tech implementation done that's also being done of course BI certification 49:35 49 minutes, 35 seconds and we are pivoting mostly towards full solution actually and we have started to see the trend because if I look at what 49:42 49 minutes, 42 seconds we were having as an order book in December 2024 versus 2025 our order book has improved 20% in terms of full home 49:51 49 minutes, 51 seconds solutions and that will actually lead to more sales as we go forward. So that is the pivot that is playing out. 49:59 49 minutes, 59 seconds Understood. And sir uh I remember 15 months back there was an uh order that you announced that we are supplying to 50:06 50 minutes, 6 seconds an airport uh like for some seatings or some uh materials. So I haven't heard anything in last one year. So is there 50:14 50 minutes, 14 seconds any change in the strategy or how like we are not focusing on that part or how it is? If you can throw some light on that part as well. 50:23 50 minutes, 23 seconds So these are things we keep doing. We have already supplied to our uh Bangalore airport long time ago. We have recently also supplied to the business 50:32 50 minutes, 32 seconds and first class lounge in Delhi. So wherever there is a brand connect for us and we have a HNI clientele movement. We 50:40 50 minutes, 40 seconds take up such uh such orders. It is not something that we are not a B2B brand. 50:45 50 minutes, 45 seconds So we don't go behind corporate orders and hospitality orders. We are a very B2C residential furniture full home 50:53 50 minutes, 53 seconds suppliers. But however when we get such opportunities we definitely take it up and we execute them. So in the Delhi T2 51:00 51 minutes in the business and first class lounge we have already supplied our furniture. 51:07 51 minutes, 7 seconds Understood. And sir is it like we are losing our markets here in Bangalore because you mentioned uh we are uh our 51:14 51 minutes, 14 seconds revenue is increasing in uh Hyderabad, Pune and other cities. But if I see at a total level the revenue is flat correct. 51:22 51 minutes, 22 seconds So is it like we are losing at a Bangalore location? 51:26 51 minutes, 26 seconds Bangalore Bangalore I think has been slightly flattish for us primarily because like I said we are doing multiple changes. Bangalore has been our 51:34 51 minutes, 34 seconds oldest market in terms of cluster expansion. We started in 2017. So the cluster expansion work for about five to 51:43 51 minutes, 43 seconds six years. We are making certain changes now. And that's how I think Bangalore has been slightly flattish but I think we have expanded uh our business and 51:52 51 minutes, 52 seconds reached out to the other metros which was very important as a panindia player. 51:58 51 minutes, 58 seconds Okay. So last one sir uh last in the last quarter we discussed there was a new product that you were launching. So uh what's traction on that like? 52:09 52 minutes, 9 seconds Oh yeah I think you're talking about the license of a German company what we have taken here. So that I think we are just about starting and we'll have our pilot 52:18 52 minutes, 18 seconds store going live probably by end of this quarter and we will have certain budgeting done for that for next year 52:25 52 minutes, 25 seconds which we have not yet budgeted but the first pilot store is going to go live by end of this quarter. 52:31 52 minutes, 31 seconds How much we working on the collection for almost one year. There were German designers who have come and made the collection. The collection is fully 52:39 52 minutes, 39 seconds ready. We are also started sending we sent out one small container as a sample container to Germany. So we are awaiting 52:47 52 minutes, 47 seconds results of that plus also like I said the pilot store is being made and end of this quarter we'll have the first pilot store ready 52:55 52 minutes, 55 seconds but nothing as such uh as in uh like uh uh other than the sample or pilot project uh nothing is been materialized 53:03 53 minutes, 3 seconds as a discussion like how much revenue potential that project would have. 53:07 53 minutes, 7 seconds Not yet not yet. So this we will budget by probably end of this quarter and have something uh you know for next year 53:14 53 minutes, 14 seconds coming up. It's a it's a process. It has taken more than one year to get where we are and we are now just about ready to get uh market ready. 53:24 53 minutes, 24 seconds Understood. Unders. Okay sir. All the best. I know this time will help us and we will be like uh we'll definitely 53:31 53 minutes, 31 seconds cross this 1,000 milestone. All the best sir. Thank you. Yes sir. Thank you very much. Thank you. 53:39 53 minutes, 39 seconds Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participants. 53:49 53 minutes, 49 seconds The next question is from the line of Sedat from I thought please proceed. Hi sir, I just have one more question. 53:57 53 minutes, 57 seconds uh you've been talking about like the brand uh restructuring and with the new leadership team how is how are you 54:07 54 minutes, 7 seconds actually going to build this brand in the future? What is the strategy? 54:13 54 minutes, 13 seconds Yeah, it's a it's a good question. So basically if you really look at how we were evolving in the last few years. So 54:22 54 minutes, 22 seconds we did not have the quantum of premium and luxury houses coming into the market 54:29 54 minutes, 29 seconds between 2015 and 2020 or for that matter even between 2020 and 2025. But when I 54:36 54 minutes, 36 seconds look at what the actual RA report says and the quantum of luxury and premium houses that are sold in the last four 54:44 54 minutes, 44 seconds years which are historical high numbers these are the homes that are going to come to the market mostly in the six 54:51 54 minutes, 51 seconds major metros of India almost you can say 85% or 90% of India's premium and luxury 54:59 54 minutes, 59 seconds housing is going to come into play in this six metros of India. So we have actually very steadily but slowly you 55:07 55 minutes, 7 seconds know moved from our home market of Bangalore acquired partners in other cities such as Bombay, Chennai. Now 55:14 55 minutes, 14 seconds recently we also acquired after IPO we acquired our Hyderabad and our Pune partners. So we have actually started 55:21 55 minutes, 21 seconds putting up our cocoa stores and that is already starting to show growth there. 55:26 55 minutes, 26 seconds The new management team which is coming on board is more institutionally oriented. For third three decades, you 55:33 55 minutes, 33 seconds know, we were promoters. We were driving this business and we had a legacy team who probably were not capable of taking the company to the next level. So, we 55:42 55 minutes, 42 seconds had to go through those change implementation, tech implementation is also happening. So, various things are you know in the pipeline and that is how 55:50 55 minutes, 50 seconds we believe that we will be able to grow substantially going forward. I hope I've answered you correctly. 55:58 55 minutes, 58 seconds Thank you sir. That's it. 56:02 56 minutes, 2 seconds Thank you. The next question is from the line of Mjit from Samya Advisors. Please proceed. 56:09 56 minutes, 9 seconds Uh thank you for giving me a followup. 56:11 56 minutes, 11 seconds Uh so one question was as Abujit has taken over as CEO on a day-to-day basis have you taken a backseat or are you operationally involved daily even now? 56:21 56 minutes, 21 seconds I can't hear you. So I think you're too close to the mic. If you can just I think you know this is coming a little ruffled. Yeah. 56:28 56 minutes, 28 seconds Sorry. Is this better? Hello. Am I audible? 56:34 56 minutes, 34 seconds Okay. So yeah, in fact what I'm really going to do is basically in fact take a further front seat. I don't think I'm 56:42 56 minutes, 42 seconds going to take a back seat. That's not correct in terms like I said we had to get certain professionals to kind of 56:49 56 minutes, 49 seconds address certain areas which are very important. Of course there will be a you know slow process of succession that is going to happen but in terms of our 56:58 56 minutes, 58 seconds involvement as the promoters we are very much involved in this in this business and it continues to be our uh yeah it's a strategic changes that we are implementing. 57:09 57 minutes, 9 seconds Okay. And uh so this is the rare reports which you mentioned for the uh six metros over the next three years. What is the volume or the number of houses 57:17 57 minutes, 17 seconds which will be delivered as per these reports in these six metros which are your key target market. Do you have any number there the premium houses which are your target audience? 57:26 57 minutes, 26 seconds Yes we have and it is very very interesting for you to note that the spurt is actually going to start coming from now and in 2027 and 2028 it's going 57:36 57 minutes, 36 seconds to peak. From from our collection of data, we will have close to the 100 one 57:42 57 minutes, 42 seconds lakh 9,000 homes coming into play above the value of 1.5 crores in 2026. That's 57:50 57 minutes, 50 seconds going to almost 1.5 lakhs in 2027 and 1 lakh 68 63,000 in 2028. That those are the kind of numbers. 57:58 57 minutes, 58 seconds Home deliveries. 57:59 57 minutes, 59 seconds Home deliveries. Yeah, home delivery is coming for pick out. This is something which we have calibrated. This is where it is, you know, in for example in 2025 58:08 58 minutes, 8 seconds it was less than 60,000. So technically the home deliveries that are going to come to the market is almost doubling 58:15 58 minutes, 15 seconds and it's going to start in 2026 and peak in up to 2028. That's the data we have collected. 58:23 58 minutes, 23 seconds Very helpful. And last question Sunil was you know when we define premium let's say a house which is more than 1.5 crores and guessing the household income 58:32 58 minutes, 32 seconds of that family would be probably annually about 30 lakhs or you know maybe 40 lakh 30 lakhs maybe. So is that really our customer segment? My 58:39 58 minutes, 39 seconds understanding was we would be catering to sort of a you know higher segment than the 1.5 cr sort of house value. 58:47 58 minutes, 47 seconds You can say that our sofas and more starts catering to that. But actually when you further break down 1.5 to 5 58:56 58 minutes, 56 seconds crores is the what they call as the in the residential business they call that as a you know premium value premium. 5 59:04 59 minutes, 4 seconds to 10 crores is where they call it as premium and about 10 crores is what is considered luxury. So the split currently is almost even between all the 59:13 59 minutes, 13 seconds three but the trend of what is really selling is more of premium. Of course Bombay is a different consideration. 59:20 59 minutes, 20 seconds Bombay everything is 2x. So don't consider Bombay when you look at the six metros the the way you know the premium and luxury demand is continuing to grow. 59:30 59 minutes, 30 seconds In fact that's the fastest growing segment. If you look into what is happening on either JL report or Anarak 59:37 59 minutes, 37 seconds report or even RA report can I just ask one more question sorry? Yes please. 59:44 59 minutes, 44 seconds Okay. Uh so you mentioned to one of the questions uh in response that you know Bangalore cohort of stores which started 59:50 59 minutes, 50 seconds in 2017 are going through a certain uh sort of reshift in a way. Now my qu uh thought was typically retail outlets 59:59 59 minutes, 59 seconds which once established go on for about 15 20 years in the same location uh you know so this is like a 7-year journey 1:00:06 1 hour, 6 seconds for the stores you mentioned so why is it happening so fast because typically what they see is retail you know especially large retail formats 1:00:13 1 hour, 13 seconds typically stay in the same area for anywhere between at least 12 to 20 years I will explain this in a very simple and clear manner so that you can understand 1:00:22 1 hour, 22 seconds the geographies in our cities are very different trend. For example, if you look at Delhi, there are very clearly 1:00:29 1 hour, 29 seconds two or three furniture markets that have emerged there. You can continue to do business for decades because they're established as furniture markets. 1:00:38 1 hour, 38 seconds Whereas cities like Bangalore which have been there is no restriction of any ocean or anything and it has been growing all over. So the old stores the 1:00:47 1 hour, 47 seconds catchment has completed. So there is a you know new catchment coming up. So that is having a micro market effect. So those are very rapid changes happening 1:00:56 1 hour, 56 seconds in certain cities like Bangalore, Hyderabad where Mumbai and Delhi is more I would say defined because you already 1:01:04 1 hour, 1 minute, 4 seconds have a you know markets that have established. So I think it's a bit challenging for organized retail play. 1:01:11 1 hour, 1 minute, 11 seconds We have to keep our ears to the ground. 1:01:13 1 hour, 1 minute, 13 seconds We have to understand where the fillup is happening. So we tend to follow rera to understand where the next big you 1:01:21 1 hour, 1 minute, 21 seconds know inventory for puloms are going to come. So I think this will continue for a I would say for some more time to come 1:01:28 1 hour, 1 minute, 28 seconds because in in a fast growing cities like Bangalore, Hyderabad even Pune you know you have a lot of new micro markets 1:01:35 1 hour, 1 minute, 35 seconds coming. So we have to be a bit cautious and unfortunately like I said there is no clear uh established marketplace you 1:01:45 1 hour, 1 minute, 45 seconds know or a high street for furniture or a marketplace for furniture. So this is the kind of situation we face and I think we are definitely getting a little 1:01:53 1 hour, 1 minute, 53 seconds more matured in terms of identifying and putting up our larger store formats going forward. 1:02:02 1 hour, 2 minutes, 2 seconds Hope I've answered you. 1:02:07 1 hour, 2 minutes, 7 seconds Thank you. Due to time constraints, that was the last question. I now hand the conference over to the management for the closing comments. Over to you, sir. 1:02:20 1 hour, 2 minutes, 20 seconds Thank you everyone for joining us today. 1:02:23 1 hour, 2 minutes, 23 seconds We remain confident that the strategic investments we are making today will lay a strong foundation for sustainable 1:02:30 1 hour, 2 minutes, 30 seconds long-term growth. While this phase reflects calibrated investment and transition, we believe we are 1:02:37 1 hour, 2 minutes, 37 seconds approaching an in infllection point where operating leverage localization benefits and store maturity will more 1:02:45 1 hour, 2 minutes, 45 seconds meaningfully reflect in margins. We sincerely appreciate your continued support and engagement. 1:02:52 1 hour, 2 minutes, 52 seconds For the future queries, please reach out to our investor relations partner at factor. Thank you once again and we look 1:02:59 1 hour, 2 minutes, 59 seconds forward to speaking with you on our next quarter results. 1:03:05 1 hour, 3 minutes, 5 seconds Thank you. On behalf of MK Global Financial Services Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. 1:03:14 1 hour, 3 minutes, 14 seconds Thank you. Thank you.