Stove Kraft Ltd — Q4 FY26

Stove Kraft Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=YeCIEfb93SY

0:00 Ladies and gentlemen, good day and welcome to the STO craft limited Q4 and FY26 earnings conference call. As a 0:10 10 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions for the after the presentation 0:18 18 seconds concludes. Should you need assistance during the conference call, please sign an operator by pressing star then zero 0:25 25 seconds on your touchstone phone. Please note that this conference is being recorded. 0:30 30 seconds I now hand the conference over to Midi Wasam from MUFG in time. Thank you and over to you. 0:39 39 seconds Thank you and good afternoon everyone. 0:42 42 seconds On behalf of MFG End Time, I welcome you all to Stocraft Limited Q4 and FI26 earnings conference call. Today on this 0:50 50 seconds call we have Mr. Rajinda Gandhi S, managing director and Mr. Ramak Krishnan Pindal Chief Financial Officer Mr. Hayit 0:58 58 seconds Kumar Kotari Vice President Investor relation and Mr. Sud Sudi Palp finance before we begin the call I would like to 1:06 1 minute, 6 seconds give a short disclaimer this call may contain some of the forward-looking statements which are completely based upon our beliefs opinion expectations as 1:14 1 minute, 14 seconds of today the statements are not a guarantee of our future performance and involve unforeseen risk and uncertaintities and with this I would 1:22 1 minute, 22 seconds like to hand the world the call to Gandhi sir over to you sir thank you 1:28 1 minute, 28 seconds good evening good evening everyone On behalf of Stoutcraft Limited, I extend a warm welcome to all 1:36 1 minute, 36 seconds participants to the Q4 and FI26 financial results learning board. We also have MRG in time with us on this 1:45 1 minute, 45 seconds call who are our advisers on investor relations. Along with me is Mr. 1:51 1 minute, 51 seconds Ramakrishna Bendala our CFO Katari vice president investor relations and Mr. 1:58 1 minute, 58 seconds Sadi Paul VP Finance who is taking charge as CFO from 16th May 2026. 2:07 2 minutes, 7 seconds We have uploaded our investor deck and earnings press release on the stock exchanges and the company's website. I 2:14 2 minutes, 14 seconds hope everybody had an opportunity to go through them. I would like to begin that the global geopolitical environment has 2:23 2 minutes, 23 seconds disrupted supply chain. The situation has also resulted into volatility in foreign currency and commodity resulting into cross pressures across board. 2:35 2 minutes, 35 seconds However, we are happy to inform our investment in the last five years on backward integrated manufacturing setup 2:42 2 minutes, 42 seconds is well equipped to observe such supply chain disruption and improve our resilience to adapt to the situation. 2:49 2 minutes, 49 seconds Our ability to quick turnaround presented into addressing the surge in demand of small appliances better than 2:56 2 minutes, 56 seconds the appearance. We are already observing this transition with rising adoption of induction cooktops and increasing 3:04 3 minutes, 4 seconds traction in small electrical appliances particularly rice cookers, kettle, OTGs and air fryers which are emerging as key 3:12 3 minutes, 12 seconds growth drivers within the electric cooking segment. Iran bar regulated in the surge in demand for induction book 3:20 3 minutes, 20 seconds talks and other small appliances. During the quarter both small appliances and induction cooktop talks have contributed 3:27 3 minutes, 27 seconds around 36% of our total revenue. This is mainly due to a higher adoption and penetration of these products by 3:34 3 minutes, 34 seconds households. This will broaden the market of these categories and increase the market size base as it has moved from option to necessity. 3:44 3 minutes, 44 seconds This quarter, induction cooktops contributed 15.5% of revenue and delivered strong momentum with high 3:52 3 minutes, 52 seconds value growth of 89.4% yearonear and volume growth of 67.3% yearonear. 4:01 4 minutes, 1 second We understand that there was an untapped market of forka the hotels, restaurant 4:08 4 minutes, 8 seconds and coffee chain segment which was dependent on LPG for cooking. Fora 4:15 4 minutes, 15 seconds segment have has limited access to solutions suited to high volume high wattage and high intensity. So to 4:22 4 minutes, 22 seconds address this segment, we launched the kitchen ignite 3,500 watt heavyduty infrared cooktop designed 4:32 4 minutes, 32 seconds specifically for professional kitchens and commercial use case. The unit's 3,500 W power output enables faster 4:42 4 minutes, 42 seconds heating and more efficient cooking cycles and essential advantage in the high pressure service environment. Built 4:50 4 minutes, 50 seconds with a heavy duty stainless steel body, the booktop is engineered to withstand continuous use, aligning with the durability expectations of commercial 4:58 4 minutes, 58 seconds setups. Going forward, due demand for energy efficient alternatives is expected to remain resilient as 5:06 5 minutes, 6 seconds households increasingly prioritize reliable and affordable appliances. This trend is reflected in our smaller 5:13 5 minutes, 13 seconds kitchen appliances segment which contributed 40.2% 2% of revenue and delivered Q4 value growth of 12.7% 5:21 5 minutes, 21 seconds yearonear and volume growth of 97.7% yearonear. Further the recent reduction in US tar on Indian goods from nearly 5:31 5 minutes, 31 seconds 50% tally to around 18% is expected to meaningfully improve export competitiveness and open more 5:38 5 minutes, 38 seconds sustainable growth opportunities for the Indian kitchen appliance industry in global markets. In line with this, our 5:46 5 minutes, 46 seconds OEM exports contributed contribution increased to 8.7% in quarter 4 up from 3.8% in quarter three 5:55 5 minutes, 55 seconds on a YD basis. OM exports have delivered a CAR of 3.9% supported by continued progress on key customer development. 6:04 6 minutes, 4 seconds Moving forward, our channel mix Q426 were led by e-commerce at 34.3% followed 6:11 6 minutes, 11 seconds by general trade at 32.3%, modern retail at 11.3%, retail EPOS at 9%, OEM exports at 8.7% 6:21 6 minutes, 21 seconds and corporate sales at 4.8%. For FI26 e-commerce competition, 35.9%, 6:29 6 minutes, 29 seconds general trade 20 29.7%, modern retail 12.4%, 4% OEM export 10.7% retail EPOS at 7.5%. 6:39 6 minutes, 39 seconds And corporate sales at 3.8%. 6:42 6 minutes, 42 seconds This evolution is increasing because organized tenants are expanding both uh both access and visibility for pigeon. 6:52 6 minutes, 52 seconds Online platforms are helping us reach consumers beyond our traditional geographies with with commerce in 6:59 6 minutes, 59 seconds Canadian partways and improving conversion especially for it replacement needs and convenience for convenient 7:06 7 minutes, 6 seconds purchases. Our consistent stock availability reliable fulfillment and strong customer feedback are 7:13 7 minutes, 13 seconds strengthening trust in supporting repeat buying from our customers. I'm also pleased to highlight our progress in vision exclusive brand outlets. As of 7:22 7 minutes, 22 seconds March 2026, we have grown to 329 stores across 151 cities and 22 states with 67 7:30 7 minutes, 30 seconds net additions in the year including 16 in Q4. We are firmly aligned with our 7:36 7 minutes, 36 seconds goal of reaching 500 stores exclusively by the year 2027. 7:42 7 minutes, 42 seconds Alongside this, our flagship brand delivered a YT Kag of 11.6% with Q4 FI26 Kag at 16.7%. 7:53 7 minutes, 53 seconds Reinforcing its pan Indian leadership and strong consumer affinity. Now I will discuss Q4 FI26 financial performance. 8:02 8 minutes, 2 seconds The consolidated revenue stood at 44.5 crores for the quarter versus 313 crores in the previous quarter last year. Hence 8:11 8 minutes, 11 seconds reducing a growth of 32.4% yearon-year basis. Gross profit for the quarter 8:17 8 minutes, 17 seconds stood at 160.2 crores versus 120.8 cr in Q425. 8:23 8 minutes, 23 seconds A growth of 32.6% yearonear. Gross margins for the current quarter stood at 38.6 in line in line with Q4 FI25. 8:36 8 minutes, 36 seconds Indida for Q4 FI26 stood at 39.5 crores versus 29.5 crores in Q4 FI25 showing a 8:44 8 minutes, 44 seconds growth of 33.9% yearonear margins for the current quarter stood at 8:50 8 minutes, 50 seconds 9.5% versus 9.4 in Q4 FI25 improving by 113 basis points year on year for Q4 8:59 8 minutes, 59 seconds FI26 stood at 6.1 cr versus 1.4 photos in Q4 FI25 showing exceptional growth of 9:06 9 minutes, 6 seconds 317.8% yearonear the PA margins for the current quarter stood at 1.5%. 9:14 9 minutes, 14 seconds Now I will discuss the FI26 financial performance the consolidated revenue stood at,67.4 9:23 9 minutes, 23 seconds crores for FI26 versus,449.8 8 crores in FI25 and saluting a growth 9:30 9 minutes, 30 seconds of 10.9% yearonear gross profit for FI26 stood at 622.5 crores versus 552.4 four 9:40 9 minutes, 40 seconds course last year same time same period producing a growth of 12.7% yearonear 9:46 9 minutes, 46 seconds gross profit margin stood at 38.7% an increase of 164 basis points yearon-year basis 9:54 9 minutes, 54 seconds for fi26 stood at 166.1 cr versus 150.7 10:00 10 minutes cr in fi25 showing a growth of 10.3% year on year margins for fi26 stood at 10:08 10 minutes, 8 seconds 10.3% % profit of returns FI26 stood at 42 crores versus 38.5 crores in FI25 10:18 10 minutes, 18 seconds showing the growth of 9.9 9.1% yearon year bad margins for the BDX student at 2.6%. 10:26 10 minutes, 26 seconds Now I would request the moderator to open the floor for question and answers. Thank you. 10:34 10 minutes, 34 seconds Thank you. Thank you very much. will now begin the question and answer session. 10:39 10 minutes, 39 seconds Anyone who wishes to ask a question may press star and one on the touchstone phone. If you wish to remove yourself 10:46 10 minutes, 46 seconds from the question queue, you may press star and two. Participants are requested to use handsets while asking the 10:53 10 minutes, 53 seconds questions. Ladies and gentlemen, we'll wait for a moment while the question cue assembles. 11:02 11 minutes, 2 seconds The first question is from the line of Shrians Jane from Swan Investments. Please go ahead. 11:11 11 minutes, 11 seconds Hello sir, I have three questions. Uh first is on the cash flow sir. Uh if I look at a cash flow statement, we've 11:17 11 minutes, 17 seconds done a capeex of about 111 odd crores and I think in the Q3 call we had mentioned that our capeex was 63. So I'm 11:26 11 minutes, 26 seconds just trying to understand Q4 we have spent about 48 odd crores. uh can you help me understand what have we spent this on uh for Q4 as well as the whole 11:35 11 minutes, 35 seconds year because we are going to understand that a large part of our capex uh we have done with so that uh what is uh reflecting on 11:44 11 minutes, 44 seconds these numbers is what we have capitalized what has been capitalized in the quarter we'll give you a list of all 11:51 11 minutes, 51 seconds those capitaliz items of course the capex spend had come to has come to a complete I mean the cycle is completed 12:00 12 minutes But there are a very few uh WIP WIP items like our uh uh substation for for 12:08 12 minutes, 8 seconds electric power and then IKEA planted which is a total of uh 12:18 12 minutes, 18 seconds yeah see the in the cash flow where you see the cash flow for investment 12:26 12 minutes, 26 seconds is 10 Uh course but you al we also have taken 12:33 12 minutes, 33 seconds some uh LCS and then we have gone with uh the long-term uh um uh long-term 12:40 12 minutes, 40 seconds borrowing against this um the the uh the capex. So you should net out the capex investment with the supplers credit. So 12:50 12 minutes, 50 seconds the net is the actual increase in the cash flow. Uh the net is the uh actual cash flows for the capex. 12:58 12 minutes, 58 seconds So the net I try to do with last year's gross block I did accumulated depreciation and this year's 13:05 13 minutes, 5 seconds depreciation. So the net addition comes to 35 crores and the amount here is 111. 13:11 13 minutes, 11 seconds So I'm just trying to understand is this fixed assets le liability where are we spending this on? If you can just explain this uh in a little more detail. 13:21 13 minutes, 21 seconds As you said, you have to net the increase in the uh or decrease in the supplers credit. So in the financing 13:29 13 minutes, 29 seconds activity, in the financing activities, you have suppliers credit where it has positive of about 32 crores. You should net net off that. 13:44 13 minutes, 44 seconds Maybe I'll take this offline. Sir the second question is obviously we have repaid our debt but if you look at the interest in other finance charges paid 13:53 13 minutes, 53 seconds that has increased from 19 crores to 25 crores. Now why should this happen? 14:02 14 minutes, 2 seconds Hello. Can you hear me? Hello. 14:09 14 minutes, 9 seconds Hello Shan sir. We can hear you. Just bring the headset a little bit closer. 14:15 14 minutes, 15 seconds Yeah and since sir uh during the year we have repaid our debt uh but if I look at our cash flow then uh interest and other 14:22 14 minutes, 22 seconds finance charges paid has increased from 19 odd crores to 25 odd crores now even if I adjust the suppliers credit uh I 14:31 14 minutes, 31 seconds mean I'm just trying to understand what is happening this line item because ideally you would expect interest in other charges to go down right 14:39 14 minutes, 39 seconds so interest and borrowings have come down and uh the interest expense That is for supplier credit, lease liability, 14:48 14 minutes, 48 seconds lease and buyback financing that is gone up. 14:57 14 minutes, 57 seconds We had one sale and lease transaction in the last quarter and on that the interest charges has gone up compared to 15:05 15 minutes, 5 seconds the previous uh quarters but the borrowing cost has come down. 15:12 15 minutes, 12 seconds Okay. uh and sir one question on the P&L uh obviously we've done well on the topline bit but I'm just trying to 15:19 15 minutes, 19 seconds understand uh shouldn't we have benefited on uh the gross margins because ideally I think one of the calls Mr. Gandhi had mentioned that we have 15:27 15 minutes, 27 seconds taken price increases. So but Yi gross margins are flat and on the same side if I look at the OPEX 50 crores of OPEX has 15:35 15 minutes, 35 seconds gone to 73 odd crores which is an increase of 41%. And I I was getting to understand that all our exports are FOB. 15:43 15 minutes, 43 seconds So a lot of the increase in fate and all that doesn't actually impact us right. 15:47 15 minutes, 47 seconds So what is leading to this 41% increase in OPEC? 15:53 15 minutes, 53 seconds See uh our retail sales has gone up from the uh like previous quarter or for the whole year. 16:03 16 minutes, 3 seconds Is there some distance? No, I can hear you clearly. 16:08 16 minutes, 8 seconds Yeah. So uh because uh there is a sales commission that is accounted for other expenses 16:20 16 minutes, 20 seconds which is uh which is in line with the revenue growth and uh generally the overall otherwise the growth for the quarter is about 30%. 16:30 16 minutes, 30 seconds So also the relative cost of uh freight uh provision for guarantee and uh business promotion power cost all these 16:39 16 minutes, 39 seconds in are growing in line with that uh revenue growth. 16:44 16 minutes, 44 seconds Seems the same has gone up compared to the uh previous year same quarter by 16:51 16 minutes, 51 seconds 22%. My cost has gone up by only u uh less than that increase. So which means about 17:00 17 minutes with the similar uh range but it is in line with the sales increase as Mr. 17:04 17 minutes, 4 seconds Gandhi said price uh then warranty and then then business promotion expenses these are all increased in line with the sales increase. 17:18 17 minutes, 18 seconds Got it. And uh so last question is uh can you help us understand the value volume uh split in small appliances 17:25 17 minutes, 25 seconds volumes have grown by almost% but overall value is just 13 odd%. So what 17:31 17 minutes, 31 seconds is happening in this uh segment now you you are telling there is a uh 17:42 17 minutes, 42 seconds there's a difference between volume growth and volume growth. 17:46 17 minutes, 46 seconds So for the quarter small appliances volumes have grown by almost 100%. But overall value growth is just 13%. So 17:54 17 minutes, 54 seconds what is actually happening uh in small appliances? It has different prices I see. 17:59 17 minutes, 59 seconds Yeah. So we we'll give you complete data if required. So the different products 18:06 18 minutes, 6 seconds are at different uh price points. uh there are uh higher contribution coming from uh lower ASB products in the 18:14 18 minutes, 14 seconds quarter and so you are seeing uh higher volumes of those products uh and the net uh value growth is 18:24 18 minutes, 24 seconds accordingly because the unit count uh of the sum of all the small appliances is what uh we 18:33 18 minutes, 33 seconds give you in the presentation but the value is absolute Got it. I'll follow back with you, sir. 18:40 18 minutes, 40 seconds Thank you and all the best. 18:44 18 minutes, 44 seconds Thank you. The next question is from the line of Ryan Syad from Three Nitra Asset Managers. Please go ahead. 18:56 18 minutes, 56 seconds Thanks for taking my question. I have a couple of questions. First all your inventory. Okay. Inventory levels still 19:03 19 minutes, 3 seconds remain relatively elevated despite working capital improvements. So uh is this inventory being built intentionally 19:11 19 minutes, 11 seconds ahead of anticipated demand growth or are there certain categories where remain uh slower than expected this quarter? 19:20 19 minutes, 20 seconds Are you um been discussing inventory? 19:24 19 minutes, 24 seconds Yeah. Yeah. I think uh we have optimized on the inventory levels. This is the inventory of both our RM and finished goods. We are a manufacturing company. 19:34 19 minutes, 34 seconds We have both uh almost at equal level RM and inventory. Actually our number of days of inventory has come down. 19:44 19 minutes, 44 seconds You may see the absolute value remain the same but the number of inventory days has come down. 19:51 19 minutes, 51 seconds Yeah. I'm not I'm talking about the absolute inventory. 19:57 19 minutes, 57 seconds Absolute inventory. Yes, to some extent because the metal prices are are increasing. We had uh stopped this uh uh aluminium. 20:06 20 minutes, 6 seconds Yeah. Aluminium and then steel uh in the last quarter. 20:12 20 minutes, 12 seconds Oh okay. Okay. Uh so the second question is around your retail expansion that your retail expansion accelerated 20:19 20 minutes, 19 seconds meaningfully in FY26. So at the current maturity level are mostly at its stores dilutive or creating growth of masses in the first 12 to 18 months. 20:36 20 minutes, 36 seconds Can you repeat your question? You still not be able to Yeah. 20:41 20 minutes, 41 seconds Yeah. So our second question is around your retail expansion that you have done has accelerated meaningfully in FY26. So 20:48 20 minutes, 48 seconds at the current majority level are newly added stores silently accredited the overall company margin in the first 12 to 18 months. 20:57 20 minutes, 57 seconds Yeah. So if you will see our average uh sales of the retail uh uh per store has 21:06 21 minutes, 6 seconds gone up substantially from 3.8 lakhs to 4.4. 21:12 21 minutes, 12 seconds So uh any incremental growth beyond 2.5 lakhs on an average is directly contributing to bottom line. 21:22 21 minutes, 22 seconds Uh okay. Okay. Uh the last one bookkeeping question. 21:27 21 minutes, 27 seconds Could you please uh guide that what uh revenue uh the margin growth are targeting for next two to three years? 21:36 21 minutes, 36 seconds I think uh we would definitely want to protect that level. Even we are currently at that level. There are one-off items like uh particularly in 21:44 21 minutes, 44 seconds the quarter we had a huge surge in the forex loss very volatile rupee uh depreciation of rupee otherwise we are 21:52 21 minutes, 52 seconds in line and so with higher revenue growth we definitely believe that I margins will be better than this but uh we are we are very confident with the 22:01 22 minutes, 1 second current uh trend and the demand for all the categories of our products we will be able to protect that 11% and 22:08 22 minutes, 8 seconds definitely improve on this on the growth time we are seeing growth in all our channels and all our products. So again 22:15 22 minutes, 15 seconds we are confident of getting back to the earlier growth rate while we uh the the 22:22 22 minutes, 22 seconds quarter of gone by it was strong before the quarter we had challenges with our export export uh is getting uh 22:29 22 minutes, 29 seconds normalized uh with the normalization and additional revenue of IKEA coming this year and with the growth on small 22:36 22 minutes, 36 seconds appliances we are very confident of a upwards of 15% growth this year. 22:44 22 minutes, 44 seconds Okay. Okay sir. Thank you for and good luck for your coming quarter. Thank you. 22:51 22 minutes, 51 seconds Thank you. The next question is from the line of Anand Mudra from Sorwell. Please go ahead. 22:59 22 minutes, 59 seconds Hello. Yeah, good afternoon sir. 23:03 23 minutes, 3 seconds Congratulation on great great result especially on revenue and working capital side and thanks for the detailed presentation also which capture the 23:11 23 minutes, 11 seconds reason for onetime expenses in the financials. 23:15 23 minutes, 15 seconds So wanted to understand about EITA margin. So we have missed this year guidance by what is your guidance for next year 23:23 23 minutes, 23 seconds margin 11% you said. So in spite of growing revenue by 15% some operating leverage may play out and a bit margin may be higher than 11% sir. 23:34 23 minutes, 34 seconds Uh an uh what we were suggesting is we are very confident of protecting the 11% and improving upon from here. We are 23:43 23 minutes, 43 seconds also confident on the revenue growth both driven by growth in small appliances. Uh our export stabilizing 23:51 23 minutes, 51 seconds and also uh IPR is uh commencing uh to 23:57 23 minutes, 57 seconds we'll start doing revenue in IKEA. So all these three give us gives us that confidence that we will grow at upwards 24:05 24 minutes, 5 seconds of 15%. and any growth beyond that will be also positively contributing to increase in percentage of IIDA. 24:15 24 minutes, 15 seconds Okay, understood. Sir another thing uh have we taken any price height because rupee has depreciated sub substantially 24:21 24 minutes, 21 seconds and we may have some higher we have uh covered the price height for 24:30 24 minutes, 30 seconds commodities beginning of this uh quarter we have uh accounted for that and passed down the price increase and for our 24:38 24 minutes, 38 seconds exports there has been a little delay but from starting from 1st of June all our customers have agreed to the uh the 24:47 24 minutes, 47 seconds increase that we have asked for and so with that we are confident of this margin. 24:53 24 minutes, 53 seconds Okay sir. So my another question with respect to capacity of indexing cooktop what is our capacity s in terms of 25:00 25 minutes number of units and how much you want to are you planning to increase that? 25:06 25 minutes, 6 seconds We were around 2 million pieces last year and uh we would be up for we are at the current run rate we'll be between 25:14 25 minutes, 14 seconds four and 5 million but we are adding some more with our add additional lines also being set up at our uh plant in Bhi 25:22 25 minutes, 22 seconds apart from Bangalore. So we should be on the lower side between 4 to 5 million and if we are able to cater I mean um 25:31 25 minutes, 31 seconds manufacture more with the demand being very high it could be higher. 25:37 25 minutes, 37 seconds So uh last year we were having capacity of 2 million. Yeah we produce 2 million. 25:43 25 minutes, 43 seconds Okay. And this year what is your uh guidance sir or what is your capacity? 25:47 25 minutes, 47 seconds What current rate? Uh we will hit uh between four to 5 million. So you want to double the production. 25:55 25 minutes, 55 seconds We have already doubled the production but the demand continues to be higher than our cap capa capability to produce 26:02 26 minutes, 2 seconds and uh overall manage the supply chain and if we are able to improve on our production capacity. We see a market 26:10 26 minutes, 10 seconds which is growing very fast and we'll be we are confident to be leadership and leadership position in this. We are well equipped compared to our peers on this. 26:20 26 minutes, 20 seconds Okay. And sir with respect to capex because since you are doubling the capacity there would be some capex for this financial year too other than maintenance cap. 26:28 26 minutes, 28 seconds No this is uh we had capacity it is more of uh some small 26:35 26 minutes, 35 seconds assembly line and uh allocating more resources towards this product. It's not it's not uh meaningful capex. There's 26:44 26 minutes, 44 seconds very small assembly line testing lines and all. 26:48 26 minutes, 48 seconds Okay. and say what is the guidance for this year's capex that will be cash outflow from the balance sheet from the cash flow statement I'm saying 26:55 26 minutes, 55 seconds yeah that I think is uh well within our uh plan it is around 40% 27:02 27 minutes, 2 seconds is uh including our retail I mean overall capex for this year will be around the 40 27:09 27 minutes, 9 seconds okay and sir uh when is the IKEA building to IKEA will start sir this this quarter 27:17 27 minutes, 17 seconds uh okay Q1 of this Yeah. Okay. Thank you sir. Thanks a lot. 27:23 27 minutes, 23 seconds Thank you. The next question is from the line of Min Krishna from Amir. Am I audible sir? Yeah. 27:32 27 minutes, 32 seconds So thank you for the opportunity. So my question is now that we have done a cipex is almost at the end and we have added IKEA. We are also uh expanding our 27:41 27 minutes, 41 seconds footprint across the globe and also having a tailwind in our kitchen appliances because of whatever is happening and uh so do don't we like I'm 27:50 27 minutes, 50 seconds not asking for particular number guidance but don't you think our growth should be better than what we have done over the last five year in the next two to three years uh because of higher 27:59 27 minutes, 59 seconds growth more than 15% I'm not saying give me exactly it's not a commitment but even the factor that you already have IKEA 28:07 28 minutes, 7 seconds exports and also tailwinds in the domestic. Can we assume uh better growth than last word did in last 15% that 28:15 28 minutes, 15 seconds within the last five years sir can I take it sir? 28:17 28 minutes, 17 seconds So I will tell you the last quarter we grew uh in the range of 30%. And current demand continues to be at the same 28:25 28 minutes, 25 seconds level. So we are confident of that higher growth now. So, so second question can we can we assume the working capital be at the same can we 28:33 28 minutes, 33 seconds maintain or it's a one-off because of the index inventory moving very fast because of Iran or we can maintain a current level of working capital around 28:41 28 minutes, 41 seconds 30 days or it is too optimistic what should be the working capital we are confident of the keeping it below 30 days 28:49 28 minutes, 49 seconds you're confident of below 30 days sir uh the last question so what will be the drivers so last two questions are e-commerce because our 30 35% sales come 28:58 28 minutes, 58 seconds e-commerce Uh are we seeing more competition in e-commerce because it is easier to distribute instead of having presence across retail outlets, general 29:06 29 minutes, 6 seconds trade, retail trade. Are we seeing more competition and uh how are we positioning oursel for uh because large part of our sales is coming from 29:13 29 minutes, 13 seconds e-commerce. So to really build a brand and uh what are we doing because that because there it is easy to compete right you can outsource and put a brand 29:21 29 minutes, 21 seconds you don't need to be present across the cities and towns and GT and MT you can't retail you need not be. So can you see explain more the dynamics of the 29:29 29 minutes, 29 seconds e-commerce business sir if you don't mind. 29:31 29 minutes, 31 seconds In both the small appliances category and the group category we are leaders on both the large platforms in this country already. 29:42 29 minutes, 42 seconds So you are not seeing a different no it is it is a combination of uh too many factors. It is not only about 29:50 29 minutes, 50 seconds sourcing and selling our capability to make uh innovate give the product I mean bring the product to the consumer at the 29:57 29 minutes, 57 seconds right price point make it available in large numbers when it is required having a service network across the country the 30:05 30 minutes, 5 seconds brand uh connect with the customer I think all of these matter work and that's why we are leaders there 30:13 30 minutes, 13 seconds from the read okay thank you sir sir on the lead if you can in the presentation put the market shares in a case where you think it is not moving it is more 30:21 30 minutes, 21 seconds stable like in pressure cookers and in the at categories where you are sure that the market shares don't change too much if you can put it in the presentation it will be helpful sir that 30:29 30 minutes, 29 seconds is one request and second is what are the drivers of margin growth in the next two to three years sir I'm not asking for next one year but where because you 30:37 30 minutes, 37 seconds have done the capex most of the thing is behind us so what are the drivers of our margin exp is just sales growth or because and at peak of our manufacturing 30:46 30 minutes, 46 seconds capacity what would be our sales s and how far we are away from that sales. So you answer it yourself. As we scale up, 30:54 30 minutes, 54 seconds we harness the capacities that we have built, uh the cost gets rationalized and the unit costs uh gets improved with all 31:03 31 minutes, 3 seconds the backward integration that we have and with higher uh uh production uh mean uh efficiency in production. Definitely 31:12 31 minutes, 12 seconds uh this becomes a margin driver with higher uh revenue growth. uh definitely the cost between the cost of the product 31:20 31 minutes, 20 seconds and the realization also goes up and the overall corporate cost will uh proportionately come down. All these are budget drivers as we grow from here we 31:29 31 minutes, 29 seconds can definitely see improvement on our margin. 31:33 31 minutes, 33 seconds So at peak capacity what would be our sales s if you can no I agree it is depend between uh 2500 to 3,000 with the 31:42 31 minutes, 42 seconds existing facility we are very confident to get there and it would come in the next two years mostly because if you assume a 15 20% 31:50 31 minutes, 50 seconds growth we we wish we grow at the current pace that we are growing the last quarter we've grown at 30%. 31:57 31 minutes, 57 seconds Got it. So we will go there in two years. Okay. All the best sir. Thank you very much for the opportunity. Thank you. 32:05 32 minutes, 5 seconds Thank you. The next question is from the line of Nailay parak from Proprieti Ventures. Please go ahead. 32:14 32 minutes, 14 seconds Good evening sir. Am I audible? Yeah. Yeah. 32:18 32 minutes, 18 seconds Yes. So we wanted to have some more information on the export side. Can you just provide this revenue mix of the domestic and the export? 32:31 32 minutes, 31 seconds So our exports uh was growing. We did have a disruption because of uh tariffs. 32:38 32 minutes, 38 seconds Those tariffs now today are in line with the Southeast Asian countries and uh we are a preferred uh supplier with our 32:47 32 minutes, 47 seconds existing customers and additionally with the growth of the IKEA business. our export contribution which in the earliest years used to be around 12%. 32:58 32 minutes, 58 seconds From there the the setback in the early part of this year is uh the reason for 33:07 33 minutes, 7 seconds lower contribution from exports but we will get back to uh higher of 10%. and and actually our exports in terms of 33:15 33 minutes, 15 seconds growth will be little higher than the company's growth. Right? But we are also very confident of strong domestic uh growth uh driven by both uh small 33:24 33 minutes, 24 seconds appliances and the pressure cooker. Our pressure cooker segment is growing by volume and there's a lot of movement from aluminium to stainless steel. So by 33:33 33 minutes, 33 seconds value terms is also growing. So the between pressure cooker and small appliances and export we see growth coming from all these three segments. 33:41 33 minutes, 41 seconds Sure sir. uh just just a quick add-on can you just please provide the export numbers 33:50 33 minutes, 50 seconds contribution in Q426 just from the numbers perspective it would be yeah uh 33:58 33 minutes, 58 seconds about 8.7% Q4 export number 34:10 34 minutes, 10 seconds is about 8.7% for the Q4 for and 11% for the whole year. 34:16 34 minutes, 16 seconds Okay. Okay. Thanks a lot. Have a nice Thank you. The next question is from the 34:25 34 minutes, 25 seconds line of Rago Maheshwari from Kamayaka Wealth Management. Please go ahead. 34:32 34 minutes, 32 seconds Uh yeah. Uh hi, thanks for the motion people. Uh okay. First of all, I just wanted you to understand uh since you mentioned that from Q1 onwards uh 34:41 34 minutes, 41 seconds revenue from IKEA will uh be you know build. So is it fair to assume that the plant is live and we have capitalized 34:48 34 minutes, 48 seconds all the costs or we still yet to capitalize some cost? 34:53 34 minutes, 53 seconds We have capitalized it now in the first quarter we have capitalized all but last quarter all of IKEA's uh the investment 35:02 35 minutes, 2 seconds in that plan has been capitalized as of 31st March. 35:06 35 minutes, 6 seconds Okay sir. And sir what kind of revenue are we looking from for uh from this IKEA deal uh yearly? I think uh this is a progressive growth. 35:16 35 minutes, 16 seconds We have invested for the future. It will be uh we have uh uh three line of 35:22 35 minutes, 22 seconds products already uh that has been awarded to us. The first line will start uh will have a production and uh uh 35:31 35 minutes, 31 seconds revenue recognition in the company from this quarter and maybe uh by the third quarter the second line and by the 35:38 35 minutes, 38 seconds fourth quarter the third line. So um maybe before the end of this year we are between 40 50 crores but at a 35:45 35 minutes, 45 seconds fullfledged uh full year of this at a full uh cap capacity utilization of these three lines we'll be around 200 35:53 35 minutes, 53 seconds between 200 and 250 crores on the system batteries. I said my next question is on the line of our retail 36:00 36 minutes stores. We are we are moving from uh the PCO model to uh you know the PFO model 36:06 36 minutes, 6 seconds and the KFO model PO. Uh in in in which model are we more aggressive like do we are we considering franchisee owned franchisee operated more? 36:18 36 minutes, 18 seconds So uh as a strategy when we started to build our retail we wanted to have a complete control on the experience of 36:26 36 minutes, 26 seconds the stores the way it is working and understand the whole thing. Uh the future stores are all Kofo or Kofo 36:33 36 minutes, 33 seconds including the existing KCO stores in the next uh two and I I believe in the next two years majority of all these stores 36:42 36 minutes, 42 seconds will be franchise operated either it is COPO or COPO. We would want entrepreneurs to manage these stores. 36:49 36 minutes, 49 seconds There is a good uh uh pipeline of uh franchises who are interested in taking up these existing stores also. We are 36:57 36 minutes, 57 seconds working on that. I mean the future of our retail is that it will be managed by uh entrepreneurs. 37:04 37 minutes, 4 seconds Understood sir. And for such aggressive expansion of franchises uh can you guide me through your uh sales store sales 37:11 37 minutes, 11 seconds growth percentage for uh not the new stores but the mature stores? 37:18 37 minutes, 18 seconds uh at the moment particularly if you want to only compare the last quarter it has been very strong uh it is in the 37:24 37 minutes, 24 seconds range of 25%. uh even the same same store growth. 37:30 37 minutes, 30 seconds So uh this you're talking about the mature stores, right? Yes. 37:35 37 minutes, 35 seconds Okay. So a mature store has been like 2 years. 37:38 37 minutes, 38 seconds No, that may not be the benchmark. I said the last quarter has been very strong. Uh same uh store to store growth is in uh between 25 to 30%. 37:49 37 minutes, 49 seconds 25 to 30%. Just I just wanted a bifocation between newer stores will get you more revenue in the first month. So 37:56 37 minutes, 56 seconds yeah, for us uh we believe any store uh which is crossing that two years of operation, majority of those stores are breaching the five p five laps. 38:08 38 minutes, 8 seconds Understood sir. Understood. And sir, uh last question from my side. Uh in this photo and model of franchise in which we 38:16 38 minutes, 16 seconds are targeting uh who uh books the inventory like will the inventory be on your books or the franchise owners books? 38:24 38 minutes, 24 seconds Yeah, all the inventory uh belongs to the company and this is funded by deposits that we will uh take from the 38:32 38 minutes, 32 seconds franchises if these are franchise operated stores. 38:35 38 minutes, 35 seconds And what kind of royalty arrangement do you have with them? Come back. 38:41 38 minutes, 41 seconds uh what kind of royalty arrangement do you have with them? 38:45 38 minutes, 45 seconds For the franchise 2 lakhs is a fixed uh franchise and otherwise based on the arrangement 38:52 38 minutes, 52 seconds between a 4.4 he gets between uh 15 to 30% margin. 39:00 39 minutes Understood. Understood. That's all from my sir. Thank you so much and the rest of my 39:08 39 minutes, 8 seconds Thank you. A reminder to all the participants. Please restrict yourself to two questions. The next question 39:15 39 minutes, 15 seconds comes from the line of Madur Ratti from counter counter cyclical investments. Please go ahead. 39:23 39 minutes, 23 seconds Sir, thank you for the opportunity sir. 39:25 39 minutes, 25 seconds I wanted to understand how much gross margin improvement can we expect with economies of scale going forward uh maybe over the next two to three years. 39:35 39 minutes, 35 seconds We are uh we are targeting to improve it by 1% every year and we believe that uh within the 2 three years we should hit a 42%. 39:47 39 minutes, 47 seconds Right. Sure. So, uh on a 2,500 to 3,000 K revenue base also we are expecting a 39:54 39 minutes, 54 seconds 40 to 43% gross margin. Is that understand correct? 39:59 39 minutes, 59 seconds Yeah. So, as we grow from here definitely we are also working on our um margin improvement. So, we believe we'll be able to improve by 1% here only. 40:14 40 minutes, 14 seconds Right. 40:16 40 minutes, 16 seconds Um I'm sure I wanted to understand um you mind. 40:25 40 minutes, 25 seconds Sorry for interrupting Mr. Rati. Please be louder. 40:32 40 minutes, 32 seconds We can't hear you. Mr. Rati, you're not audible. 40:46 40 minutes, 46 seconds The line has got disconnected. I will take the next participant. The next the next question is from the line of 40:53 40 minutes, 53 seconds Ran Meta from Green Edge Wealth. Please go ahead. 40:59 40 minutes, 59 seconds Yeah, thank you. Um so, so um you know few questions on the balance sheet. uh uh if you look at the working capital it 41:07 41 minutes, 7 seconds has uh improved substantially in you know the in FI26 uh so what really has helped reduce you 41:15 41 minutes, 15 seconds know our inventory and data days I think they've reduced by 8 days each and also simultaneously creditor days have 41:22 41 minutes, 22 seconds increased so uh if you could just uh you know uh explain the uh reduction in overall working capital 41:31 41 minutes, 31 seconds uh yeah so for receables we are working uh with the channel financing partners to realize the money um earlier than the 41:40 41 minutes, 40 seconds due dates. And then for payables we are working with payable finance uh partners where we while we pay the vendors on 41:48 41 minutes, 48 seconds time. So we get an extended credits uh from these uh uh partners. And then for inventory we have a close watch on um 41:57 41 minutes, 57 seconds the utilization and then uh we keep the inventory for the require I mean uh whatever is required for production and 42:04 42 minutes, 4 seconds then we have um we have good controls on the inventory so that we are trying to reduce it um the reduce the inventory um and then the number of days. 42:16 42 minutes, 16 seconds So typically uh for you know raw materials like steel and aluminum uh you know what is the inventory that we typically keep for them and uh 42:25 42 minutes, 25 seconds considering the inflationary trends we are seeing there what kind of uh cleaning up you know have we done. 42:33 42 minutes, 33 seconds So for um raw materials we keep around 60 days of uh for for 60 days of sales. 42:40 42 minutes, 40 seconds Um so especially aluminium and then steel uh around 45 to 60 days 42:49 42 minutes, 49 seconds and uh currently in the current scenario are we increasing that from let's say 60 days 42:56 42 minutes, 56 seconds for the last quarter because uh expecting the uh the increase in the metal prices we have had taken high 43:05 43 minutes, 5 seconds volumes and then keep the kept the materials. So it is an advantage for us so that we got it at the lesser price at uh than the market uh the market price. 43:16 43 minutes, 16 seconds So with this uh where do we see our working capital at you know sustainable levels? What is what would be those levels? 43:24 43 minutes, 24 seconds Yeah with all that we were able to reduce it. So in fact uh while uh the increase the inventory is at the same levels in absolute value compared to the 43:31 43 minutes, 31 seconds previous year still we have reduced the number of days right and you think that is sustainable 43:40 43 minutes, 40 seconds right like around at 7 yeah it is sustainable you're right you're right and you know the right of use assets uh this number has reduced substantially 43:49 43 minutes, 49 seconds from 160 crores in FI25 to 62 crores in FI26 so uh what's led to this reduction 43:57 43 minutes, 57 seconds See in uh uh last quarter we have reduced the useful life of the retail store. So initially we used to 44:05 44 minutes, 5 seconds capitalize for 9 years. Um so based on because we started this retail about two 44:11 44 minutes, 11 seconds two and a half years ago. So we have um I mean uh we have the trend um established and then we have reduced it useful life from 9 years to 3 years. 44:22 44 minutes, 22 seconds That's why the assets and liability has come down uh worth uh I mean equal equally. 44:29 44 minutes, 29 seconds Okay. Okay. And uh uh you know if you could just uh talk about the uh demand 44:36 44 minutes, 36 seconds and you know where we are seeing that buoyancy. Of course uh point taken um sir in your opening remarks in terms of induction cooktops and OTGs and things 44:45 44 minutes, 45 seconds like that but uh um any specific areas and are we also seeing you know the buoyancy because of the GST rate cuts 44:53 44 minutes, 53 seconds that had happened some time ago. So just your thoughts on you know how the demand has shaped up and how it is expected to move uh you know going forward and any 45:01 45 minutes, 1 second specific regions or sub segments uh apart from induction cooktops and electrical appliances that you would like to highlight. 45:10 45 minutes, 10 seconds Primarily these are the three categories of products for us cooktop appliances and cookware. Cookware substantially is 45:17 45 minutes, 17 seconds contributed by pressure cookware and uh the cookware is coming from our exports. 45:22 45 minutes, 22 seconds In all these three segments we see continuous we continue to see very positive growth but of course the smaller clients are growing faster 45:31 45 minutes, 31 seconds segment uh is growing both in terms of volume and also because of the premiumization that is going from aluminium to stainless steel the value 45:38 45 minutes, 38 seconds growth is uh uh is also substantial in the last quarter you'll see that uh we had very high growth in the 45:47 45 minutes, 47 seconds in value terms 44% coming from and because we had reasonably good export port we had a 49% growth even in our 45:55 45 minutes, 55 seconds non-stick cookware. The small appliances category uh apart from uh induction is also growing but induction at the moment 46:03 46 minutes, 3 seconds is growing disproportionately but uh this is also uh getting into adapt adaptation now most of the house are wanting to use induction cooktops. 46:15 46 minutes, 15 seconds they would have started using it based on uh those emergency needs but now people want to use we are we are seeing this kind of trend and we believe this 46:23 46 minutes, 23 seconds will continue for a long time India being a very large country it's not uh too much of capacity in the country uh 46:30 46 minutes, 30 seconds we are at we are positioned in such a in a better position to peers so all this will lead to higher growth than industry 46:38 46 minutes, 38 seconds for us but the industry is also continuing growth uh so on the induction cooktop side if I'm not wrong a b a a bulk of the raw 46:46 46 minutes, 46 seconds materials is imported from China. So because of the supply chain disruptions that we are seeing and you know overall industry demand surge for this category 46:54 46 minutes, 54 seconds are we facing any challenges in terms of uh you know sourcing the uh underlying raw materials for induction cooktop 47:03 47 minutes, 3 seconds again as I mentioned we are better positioned in this uh we manufacture it's a highly backward integrated facility for manufacturing index index 47:12 47 minutes, 12 seconds and cooktops is not that all of these components we uh import all those uh uh facilities that are available 47:19 47 minutes, 19 seconds domestically. We use them either we manufacture them ourself or also source them. Example to give you one small 47:26 47 minutes, 26 seconds example we make our own PCBs but we get the PCB board from the domestic manufacturers is only the components that we import. Uh a typical assembler 47:35 47 minutes, 35 seconds would want to import the whole uh popular. So the the cost difference between these two the capac capacity 47:43 47 minutes, 43 seconds that will be available uh from the suppliers in China may not be uh adequate enough to address the surge in 47:50 47 minutes, 50 seconds demand. Uh of course there is one particular uh uh input that is the crystalline glass today at the moment in this country we do not have any capacity 48:00 48 minutes but so uh about 33 to between 33 and 40% of the input is imported based on the 48:07 48 minutes, 7 seconds type of model that you make. Yes, that remains and but we have a very strong capability of sourcing procuring uh these uh uh these uh items from China. 48:17 48 minutes, 17 seconds We have a very strong team on the roles of the company working in China also. Sure. Thank you. 48:28 48 minutes, 28 seconds Thank you. The next question is from the line of Anub Go from Cosmo Ventures. Please go ahead. 48:34 48 minutes, 34 seconds Yeah. Hi sir. Congratulations on a great set of numbers especially the cash flows front. So uh we are a mass value brand 48:42 48 minutes, 42 seconds and uh 60 to 70% of the cost of an induction cooktop for industry is still imported. I think there are three 48:50 48 minutes, 50 seconds components PCB glass and induction coils. So for I think I heard your comments for PCB and glass. So what about this induction coil? 49:00 49 minutes make our there's enough of wire available in the country and then there's a plastic part of course we import the magnets 49:09 49 minutes, 9 seconds okay okay so sir wouldn't gross margins take a hit for the next one two quarters like we have steel price is increasing 49:17 49 minutes, 17 seconds and price is increasing the forex movement is not favorable so at least temporarily for a few quarters we should 49:24 49 minutes, 24 seconds we should see a bit on margin right no we will definitely pass on any commodity uh price increase. Uh 49:33 49 minutes, 33 seconds generally we have an arrangement with our suppliers for a quarter and uh the average of the previous quarter is what uh we have an arrangement for for all 49:41 49 minutes, 41 seconds our but uh we definitely see a challenge on addressing uh the forex disruption that 49:48 49 minutes, 48 seconds could be a challenge but otherwise uh on any input cost increase due to commodity we'll pass on. 49:56 49 minutes, 56 seconds Okay. 49:59 49 minutes, 59 seconds Okay. So, can you quantify the price we might have taken so far? 50:04 50 minutes, 4 seconds For the 10th quarter, we are in the range of 10%. 10%. Okay. Yeah. 50:11 50 minutes, 11 seconds Okay. Okay. Okay. Uh and so uh coming to exports, I think before Paris came in picture, we were very very positive on 50:18 50 minutes, 18 seconds growth in beyond IKEA. So you feel that potential business we were running will take some time to come back once clients 50:26 50 minutes, 26 seconds have properly started it started coming back. 50:31 50 minutes, 31 seconds You said we should pencil in some gradual growth for this year. 50:36 50 minutes, 36 seconds Yeah. So definitely there'll be good growth and it'll be gradual. 50:42 50 minutes, 42 seconds Got it. And so my last question is we see many new brands and entrance coming in the market. you know maybe they are they at about 50 K sales or 100 K sales. 50:53 50 minutes, 53 seconds Do we have any thoughts to acquire a mass premium or a premium brand and try leveraging our manufacturing and distribution setup to play it? 51:03 51 minutes, 3 seconds We don't want to evaluate any such opportunity but uh uh there is enough room for us to grow with uh the facility and capability that we have built both 51:12 51 minutes, 12 seconds in the channels and with the manufacturing uh capacities but we will not say if there is any good uh 51:19 51 minutes, 19 seconds opportunity that can add value to our uh business. 51:25 51 minutes, 25 seconds Okay. Best of luck. Thank you so much. 51:31 51 minutes, 31 seconds Thank you. The next question is from the line of Anand Mudra from so wealth. Please go ahead. 51:38 51 minutes, 38 seconds So uh yeah so just wanted to understand about other expenses in quarter 4 other expenses has gone up to 62 cr this is 51:47 51 minutes, 47 seconds very high. So wanted to understand is there any one-off item in this? 51:53 51 minutes, 53 seconds There's no oneoff item per se but I will tell you substantially there's a of the uh large number uh about 10 crores is 52:02 52 minutes, 2 seconds increase in sales commission. The sales commission is a commission that we pay to our franchise stores. Okay. 52:10 52 minutes, 10 seconds Because there is a huge surge in the revenue number itself for retail. That's where you see that here otherwise it is 52:18 52 minutes, 18 seconds in line in line with our uh revenue growth example I will give you if it was 52:24 52 minutes, 24 seconds 5.5 crores of rate and forwarding last year this year it is 6.15 crores similarly provision for warranty if it was 1.25 25 crores. It is 1.75 crores. 52:35 52 minutes, 35 seconds This year business promotion would have moved from uh 48 crores to 54 crores. So it is in line with this power and fuel 52:44 52 minutes, 44 seconds say from 15 crores has gone to 20 crores. It is in line with revenue growth. 52:49 52 minutes, 49 seconds So sir effectively our revenue from our own stores has increased in quarter 4 as compared to the whole year and hence the commission has gone up. 52:57 52 minutes, 57 seconds Correct? 52:58 52 minutes, 58 seconds Yes. Yes. Oh, so our gross margin is impacted much more because gross margin from the direct store is much higher. So 53:06 53 minutes, 6 seconds there's uh currently our revenue from retail stores is in the range of uh 9%. 53:14 53 minutes, 14 seconds Okay. And in Q4 it was higher sir. Yeah, in the same range. Okay. Q4 overall revenue was also higher. 53:23 53 minutes, 23 seconds Okay. 53:26 53 minutes, 26 seconds Under 60. So one more thing uh in uh I checked few conference call of last year we we have guided for 50 cr of capex 53:34 53 minutes, 34 seconds including the IKA capex but as per cash flow statement we ended up spending 111 crores. So uh this year our guidance is 53:42 53 minutes, 42 seconds 50 cr. Do you think we uh we may end up spending more or do you think uh 50 is more or less we are there 53:51 53 minutes, 51 seconds sir in the cash flow the uh uh capex investment is coming 109 is actual uh it's an indirect indirect cash flow so 53:59 53 minutes, 59 seconds whatever is capitalized in the PPA schedule is reflecting there but it is funded by uh the banks by way of 54:07 54 minutes, 7 seconds suppliers credit so my actual cash out is the net of the the decrease in suppliers credit. Oh. And what is the actual outflow sir? 54:16 54 minutes, 16 seconds Actual net outflow will be around 70 to 70 to 75 crores. Okay. You want an exact number? Share it. 54:25 54 minutes, 25 seconds I understood sir. Just a clarification sir. Till that time it is funded by suppliers right? It will uh it will not 54:32 54 minutes, 32 seconds come in cash flow statement as capex. It will come and it will okay understood. It will not be a real cash flow. Only when we pay the 54:40 54 minutes, 40 seconds liability to the bank, it will reflect in the cash flow. 54:43 54 minutes, 43 seconds Understo last year. 54:47 54 minutes, 47 seconds Yeah. Net net cash out for capex will be about 705. 54:52 54 minutes, 52 seconds Okay. And sir, uh since other expenses have gone up substantially, coming back to the same question, other expenses have gone up substantially in Q4. 55:01 55 minutes, 1 second What shall we budget for financial year 27 as a whole? other expenses as a percentage of sales. 55:16 55 minutes, 16 seconds As a percentage of sales, it remains uh the same. So it would come down being 55:24 55 minutes, 24 seconds the revenue is growing up but the other expenses will not go in the same uh increase while the revenue grows. So if 55:31 55 minutes, 31 seconds uh revenue obviously it will be uh less than the current year's percentage. 55:38 55 minutes, 38 seconds Okay. Understood. Thanks. Thanks a lot. 55:44 55 minutes, 44 seconds Thank you. The next question is from the line of Vinod Krishna from Amundas. Please go ahead. 55:51 55 minutes, 51 seconds Sir you mentioned that in my previous question that you are leader in e-commerce. So any market shares can you give on pressure cookers induction 55:59 55 minutes, 59 seconds wherever you can clearly say that we are leaders in whichever items if you can name the item market share. So if you 56:06 56 minutes, 6 seconds mention these two products definitely by volume we are far ahead of competition both on induction cooktops and pressure cookers 56:13 56 minutes, 13 seconds on the you do not and overall also you do not want to share the exact number 30 or no no there are different category of 56:20 56 minutes, 20 seconds products different see product segment uh particularly since you mentioned induction cooktop and pressure cookers we are far I mean definitely far ahead 56:29 56 minutes, 29 seconds in volume by any competition on both these platforms on any target of retail expansion over the next three years this year will be 500 or the next three four years. 56:39 56 minutes, 39 seconds So we are talking at that trend rate of 25 stores every quarter more or less that will continue. Yeah. 56:47 56 minutes, 47 seconds Thank you sir. All the best sir. 56:52 56 minutes, 52 seconds Thank you. The next question is from the line of Maduri from counter cyclical investments. Please go ahead. 56:59 56 minutes, 59 seconds Sure. Thank you for the opportunity sir. 57:02 57 minutes, 2 seconds uh how would be a margin excluding the induction segment uh so I'm trying to understand what would be the margin for induction would it be near company 57:09 57 minutes, 9 seconds average or higher or lower so for us other than the export business which is white label at a gross margin 57:16 57 minutes, 16 seconds level we are agnostic on channel or product or uh category 57:24 57 minutes, 24 seconds okay and sir I wanted to understand we have invested over 500 crores in capital over the past five years But that hasn't 57:32 57 minutes, 32 seconds reflected in our revenue. If I consider fi 22 to 26 hardly 400 cr revenue. So where we 57:41 57 minutes, 41 seconds struggled and so going forward how should I look at our capital allocation policy. 57:47 57 minutes, 47 seconds So there is no struggle uh the capex is uh for a long term and we have moved from 800 to revenue 2,600 57:56 57 minutes, 56 seconds but the capex is designed for 3,000. So the growth is from 800 to 3,000. 58:04 58 minutes, 4 seconds Right. So what kind of payback period do we expect before embarking on? Generally uh we we believe that whatever we invest 58:12 58 minutes, 12 seconds we should uh get back in maximum 3 years right and uh so so 58:21 58 minutes, 21 seconds we haven't so so if I even if I consider our PBT there the PBT that we terminated 58:29 58 minutes, 29 seconds we did in the past five years doesn't like if I consider the payback versus the PBT incremental PBT that we have 58:37 58 minutes, 37 seconds delivered in past five years it doesn't match up for the 3 years per not for the five years period but these 58:45 58 minutes, 45 seconds investments have happened uh uh progressively in the last four years and this is also for the future it is not 58:54 58 minutes, 54 seconds for the period that has uh gone by the investment whenever we do an investment uh if it does not uh give us returns in 59:02 59 minutes, 2 seconds 3 years we will not pursue the investment right I'm sure with I see a business scaling up. What can be the quantum of 59:10 59 minutes, 10 seconds this business maybe in the next one or two years? 59:14 59 minutes, 14 seconds Yeah, the the current uh line of items that have been awarded to us and at its full capacity will be between 200 to 250 crores. 59:26 59 minutes, 26 seconds Okay. So that was from Thank you so much and all the question. 59:31 59 minutes, 31 seconds Thank you. The next question is from the line of Lakshmi Narayan from Tunga Investments. Please go ahead. 59:38 59 minutes, 38 seconds Yeah. Uh thank you for the channel. 59:42 59 minutes, 42 seconds Uh has it been given already because I joined the call a little late. I pick it up. 59:50 59 minutes, 50 seconds Sorry. 59:51 59 minutes, 51 seconds Yeah. I I like to understand the channel mix of the sales uh uh in terms of modern trade uh your own 59:58 59 minutes, 58 seconds channel e-commerce uh and for the quarter or for the year for the for the full year. 1:00:04 1 hour, 4 seconds Okay. 1:00:08 1 hour, 8 seconds We are at uh 29.7% for GT, 35.9% on ecom, 12.4% for modern 1:00:16 1 hour, 16 seconds trade, uh 3.8% is corporate sales, our EBO sales is at uh 7.5% and our exports is at 10.7%. 1:00:28 1 hour, 28 seconds And and I see that we sell products on various combo offers, right? So what percentage of our sales come from uh combo offers is something which you track. Is there a better way to say? 1:00:39 1 hour, 39 seconds No, we do a annual uh combo sales during the December period and the overall 1:00:46 1 hour, 46 seconds sales is about uh between 5 to 6% of our annual sales. 1:00:52 1 hour, 52 seconds Got it. And uh your working capital has actually uh has gone through a tremendous improvement. uh what led to 1:01:00 1 hour, 1 minute this uh improvement and how sustainable is this? 1:01:04 1 hour, 1 minute, 4 seconds So we have worked on both our receivables and payables and the inventory with the receivables now are all fully majority of all that are 1:01:12 1 hour, 1 minute, 12 seconds covered by channel financing. So we have some uh charge system policy for our customers that funds their cost of uh 1:01:20 1 hour, 1 minute, 20 seconds paying us. So most of the time we it is much ahead of the normal payment period. 1:01:25 1 hour, 1 minute, 25 seconds A majority of all our payments we receive within 15 days. And on payable side we are on invoice mark platform. 1:01:32 1 hour, 1 minute, 32 seconds This is a platform which facilitates payment to MSMES wherein uh while the maximum credit period to MSMES is 45 1:01:40 1 hour, 1 minute, 40 seconds days. We pay them in 90 days and but they get the payment up front immediately and because they get this 1:01:46 1 hour, 1 minute, 46 seconds money immediately they fund the cost of this uh financing. It for us while we pay them in 90 days the payment is 1:01:55 1 hour, 1 minute, 55 seconds received by our suppliers uh almost immediately and on the inventory while 1:02:02 1 hour, 2 minutes, 2 seconds we maintain the same level of inventory as our revenue is going up uh the inventory to the number of days is 1:02:10 1 hour, 2 minutes, 10 seconds coming down. All these three are contributing to our better cash flow by number of days. We believe this is a 1:02:17 1 hour, 2 minutes, 17 seconds sustainable model. we have worked for this and uh in that range between the 24 to 30 we are definitely confident of 1:02:24 1 hour, 2 minutes, 24 seconds being there. This also is accounting for some inventory that we uh sometimes as a strategy build like in the last quarter 1:02:33 1 hour, 2 minutes, 33 seconds we had to build inventory on aluminium because there are in uh forwardl looking similarly was for 1:02:41 1 hour, 2 minutes, 41 seconds was stainless steel there were supply side challenges so we want so these are also accounting for all this uh we believe that uh this is a sustainable 1:02:49 1 hour, 2 minutes, 49 seconds model thank you and uh in terms of your total uh you know in-house manufacturing versus outsource how this has actually 1:02:56 1 hour, 2 minutes, 56 seconds panned out over the years in compared to the last year. 1:03:00 1 hour, 3 minutes No, we almost have uh moved to uh mean 7 and 98. We have between 97 and 98% of all inhouse manufacturing. 1:03:12 1 hour, 3 minutes, 12 seconds Got it. And and in terms of uh you know uh good sales in in Q4 uh uh you know when you started the Q4 did you 1:03:20 1 hour, 3 minutes, 20 seconds anticipate uh such a good uh increase or how much was actually driven by the induction? I mean if you remove the induction part uh how much of that you 1:03:29 1 hour, 3 minutes, 29 seconds actually anticipated and you actually could actually manage such a good sale. 1:03:34 1 hour, 3 minutes, 34 seconds Okay let me put it like this. The indexing sale started on the 10th of March. So uh yeah of the 90 days 70 days 1:03:43 1 hour, 3 minutes, 43 seconds has elapsed we are seeing growth in across the categories. Of course what the there was a sudden spurt in all the 1:03:51 1 hour, 3 minutes, 51 seconds in the sales of induction and there has seen s but we were growing on the induction category as a category uh even 1:03:59 1 hour, 3 minutes, 59 seconds before this high spurt in demand we were growing. 1:04:03 1 hour, 4 minutes, 3 seconds Got it. and and do you see this uh anything that led to this uh uh spurt in demand other than you know your own 1:04:10 1 hour, 4 minutes, 10 seconds sales engine and the marketing engine anything any other factor that actually contributed to to to we believe uh host the GSC reduction to 1:04:19 1 hour, 4 minutes, 19 seconds 5% we are continuously seeing uh uh uh across the categories good demand in our products uh even those products which 1:04:28 1 hour, 4 minutes, 28 seconds are not uh falling the category I mean the bracket of 5% but posted GS uh reduction announcement that was in the 1:04:37 1 hour, 4 minutes, 37 seconds middle of third quarter see continuous growth. 1:04:41 1 hour, 4 minutes, 41 seconds Sorry. you know because you know I mean just wondering if if a person would go and buy a cookware or a or a utensil or 1:04:48 1 hour, 4 minutes, 48 seconds something because of GST cut is that I mean just trying to understand how how GST 1:04:55 1 hour, 4 minutes, 55 seconds uh let me try to explain to you this becomes a very strong play for any organized player at 5% uh there's almost 1:05:04 1 hour, 5 minutes, 4 seconds uh no impact of GST on the product between a 18 and a five there's huge difference there is a lot of uh uh challenge for any unorganized player 10. 1:05:14 1 hour, 5 minutes, 14 seconds In our opinion, lot of that uh challenge is also coming to uh players like Stcraft who are very aggressive. See, we 1:05:22 1 hour, 5 minutes, 22 seconds are also addressing a very price conscious, very costconcious uh customer. By design, the brand is designed to address them. So, it 1:05:30 1 hour, 5 minutes, 30 seconds definitely impacts it does it does not it does not mean that it will have no impact at all. 1:05:35 1 hour, 5 minutes, 35 seconds Got it. And and do you think this is actually uh uh this is faced by other manufacturers also all your peers of 1:05:43 1 hour, 5 minutes, 43 seconds this kind of a spurt and demand on the industry? Yes. Across across board uh those who are serious players 1:05:50 1 hour, 5 minutes, 50 seconds in the industry cooktop category those who are stranded with inventory that they could not liquidate all that saw very heavy 1:05:59 1 hour, 5 minutes, 59 seconds consumption. And so there's a pipeline that is completely uh empty. Even if the 1:06:07 1 hour, 6 minutes, 7 seconds demand stabilizes, normalizes, there is a pipeline that has to be completely filled in. So for a near-term, even if 1:06:15 1 hour, 6 minutes, 15 seconds there is assuming there is no adapt adaptation of these products, still there is demand. But in our opinion, the 1:06:23 1 hour, 6 minutes, 23 seconds consumers are now wanting to have this appliance as a regular uh daily use uh cooktop. And with that, we see that 1:06:32 1 hour, 6 minutes, 32 seconds there is a there's a opportunity of a very large growth. Thank you for answering my questions. 1:06:41 1 hour, 6 minutes, 41 seconds Thank you. In the interest of time, that was the last question for the day. I now hand the conference over to Mr. Rajentra 1:06:49 1 hour, 6 minutes, 49 seconds Gandhi, managing director from Storecraft Limited for closing comments. 1:06:56 1 hour, 6 minutes, 56 seconds Thank you. We hope we could answer your queries. But in case you have any public clarifications and have any queries, you 1:07:05 1 hour, 7 minutes, 5 seconds may write to us or reach out to your investor relationship advisor. Uh and thank you for this evening. 1:07:16 1 hour, 7 minutes, 16 seconds On behalf of Storecraft Limited, that concludes this conference. Thank you for joining us.