Thomas Scott Ltd — Q3 FY26

Thomas Scott (India) Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=y_7KsMhYz3Y Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Thomas Scott India Limited Q3 and 9 months FI 20226 earnings 0:09 9 seconds conference call hosted by Willer Advisors. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you 0:17 17 seconds to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:25 25 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now have the conference for 0:33 33 seconds Miss Pangi Jane from Advisors. Thank you and over to you Miss Jen. 0:40 40 seconds Good afternoon everyone and a warm welcome to you all. My name is Pangi Jen from Alaram Advisors. We represent the investor relations of Thomas India 0:48 48 seconds Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings conference call for the third quarter 0:56 56 seconds and 9 months ended of the financial year 2026. 1:00 1 minute Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings conference call may be forward-looking in nature. Said forward-looking 1:09 1 minute, 9 seconds statements are subject to risk and uncertaintities which could cause actual results to differ from those anticipated. Such statements are based 1:16 1 minute, 16 seconds on management's belief as well as assumptions made by and information currently available to the management. 1:22 1 minute, 22 seconds Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's 1:30 1 minute, 30 seconds earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. 1:38 1 minute, 38 seconds Let me now introduce you to the management participating with us in today's earnings call and hand it to over to them for their opening remarks. 1:45 1 minute, 45 seconds We have with us Mr. Van Bang, managing director heading the e-commerce division of the company. Without any delay, I 1:53 1 minute, 53 seconds request Mr. Vedan to start with his opening remarks. Thank you and over to you sir. 2:00 2 minutes Thank you Burwangi and uh good afternoon to everyone and a very warm welcome to all of you for joining our earnings contract. 2:07 2 minutes, 7 seconds As some of you may be new to our company, I would like to begin with a brief overview about the company and then move to our um onto our operational and 2:16 2 minutes, 16 seconds financial performance for the third quarter and the 9 months ended of the financial year 2026. 2:22 2 minutes, 22 seconds Thomas India Limited was incorporated in 2010 as a traditional apparel manufacturer and has since evolved over the years into a technology enabled 2:31 2 minutes, 31 seconds fashion retailer. The company has been formed through a de merger for Bangbang overseas limited with a vision of 2:37 2 minutes, 37 seconds creating a focused retail and fashion business. Initially we operated as a contract manufacturer for apparel from 2:45 2 minutes, 45 seconds our Shalapur facility for reputed domestic clients. This phase laid the foundation for strong product quality, 2:52 2 minutes, 52 seconds disciplined manufacturing and deep relationships across the apparel ecosystem. 2:57 2 minutes, 57 seconds Over the years, we have identified an opportunity to move closer to the consumer and build our own retail identity. Building on the legacy of our 3:05 3 minutes, 5 seconds manufacturing excellence, Thomas has transformed into a digital first datadriven passion company. Integrating 3:12 3 minutes, 12 seconds technology analytics and manufacturing to develop to deliver trendled products with speed and precision. Our plug-in 3 3:20 3 minutes, 20 seconds ecosystem combines real-time data forecasting, real-time demand for inventory optimization and rapid product launch capability. This build for demand 3:29 3 minutes, 29 seconds model allows us to bring new styles to market in a very short time thereby managing inventory risk and ensuring high responsiveness to consumer preferences. 3:38 3 minutes, 38 seconds Today we operate 12 plus brands and 20 2,000 plus SKUs including our own flagship brand Thomas. 3:48 3 minutes, 48 seconds We also support major global international brands through partnerships with marketplaces. 3:55 3 minutes, 55 seconds Our products are distributed through leading online platforms like Myntra and others as well as through our own offline stores in Bangalore for our brand Thomas. 4:06 4 minutes, 6 seconds With manufacturing units in Cholapur, Bangalore and Gura and fulfillment centers across India. We ensure a high degree of control over quality, efficiency and delivery speed. 4:17 4 minutes, 17 seconds Positioned in the online premium fashion segment, Thomas Scott, our own brand, caters to aspirational, brand conscious 4:24 4 minutes, 24 seconds consumers who value style and quality at accessible prices. We continue to strengthen our technology and analytics 4:31 4 minutes, 31 seconds platforms. Our own platforms and catalog AI are now being actively deployed across product planning, demand forecasting, and catalog management. 4:40 4 minutes, 40 seconds These tools allow us to identify emerging fashion trends quickly, gain pricing insights, and determine high demand products leading to better 4:47 4 minutes, 47 seconds conversion rates and faster response to changing market preferences. 4:52 4 minutes, 52 seconds Building on a strong foundation, we continue on to focus on scaling our operations efficiently, deepening our brand presence, and leveraging 5:00 5 minutes technology to drive sustainable profitable growth. With that background, let me now take you through the company's performance for the third 5:08 5 minutes, 8 seconds quarter and 9 months ended of financial year 2026. 5:12 5 minutes, 12 seconds For the quarter under review, we delivered our highest ever quarterly sales performance this quarter. Revenue 5:19 5 minutes, 19 seconds from operations stood uh at INR 56 cr of 46% yearon year. EITA for the period 5:28 5 minutes, 28 seconds stood at rupees 8 cr reflecting a 41% increase year on year margins of uh 5:35 5 minutes, 35 seconds stood at 11.92%. Profit after tax stood at 5 cr an increase of 67% yearonear and fat margin stood at 7.54%. 5:45 5 minutes, 45 seconds For the 9 months ended of the financial year, revenue from operations stood at 177 cr and increase of 56% year-onear. 5:52 5 minutes, 52 seconds EITA for the period stood at 22 cr up 75% year-on-year with EITA margins at 12.65%. 6:00 6 minutes Net profit for 9 months stood at about 13 cr rupees registering an 82% year-on-year increase with PAT margins of 7.4%. 6:10 6 minutes, 10 seconds This strong financial performance reflects disciplined execution and operating leverage gained from our scen and digital model. This performance was 6:17 6 minutes, 17 seconds despite the fact that during the quarter we encountered an unforeseen incident at one of our warehouses in Dandi in 6:24 6 minutes, 24 seconds Maharashtra. On 25th November 2025, an accidental fire resulted in the loss of inventory and certain fixed assets 6:31 6 minutes, 31 seconds stored at that location. I am relieved to share that there were no loss to our injury to life. 6:37 6 minutes, 37 seconds The affected inventory was adequately insured under a valid insurance policy. 6:42 6 minutes, 42 seconds The estimated losses are fully covered and the insurance claim process is currently underway. 6:47 6 minutes, 47 seconds Thanks to the swift response of our teams, we were able to restore the supply chain operations very quickly and minimize disruption as much as possible to our customers and channel partners. 6:59 6 minutes, 59 seconds This incident has further reinforced our focus on strengthening risk management framework and enhancing operational resilience across the organization. 7:07 7 minutes, 7 seconds In other updates, our own brand Thomas Scott recorded revenues of 27 cringing a 91% yearon-year growth reflecting the 7:15 7 minutes, 15 seconds rising strength of our own direct to consumer franchise and sharper assortment planning. The license and other brand segment sustained steady 7:23 7 minutes, 23 seconds momentum reporting revenue figures of 34 cr up 18% yearonear driven by healthy traction across uh key partner 7:31 7 minutes, 31 seconds platforms. Meanwhile, contract manufacturing business contributed rupees 5 cr. Registering a robust growth 7:38 7 minutes, 38 seconds of 113% year-on-year supported by improved capacity utilization and enduring client relationships. Demand conditions during the quarter remained 7:46 7 minutes, 46 seconds encouraging. Our expansion into new categories including winterware contributed incremental revenue streams and supported overall growth. We remain 7:55 7 minutes, 55 seconds confident in our long-term strategy and are committed to delivering sustainable growth backed by prudent financial management and discipline execution. 8:03 8 minutes, 3 seconds With this now I open the floor for questions and answer questions and answers. Thank you. 8:08 8 minutes, 8 seconds Thank you very much. We'll now begin with the question and answer session. 8:12 8 minutes, 12 seconds Anyone who wishes to ask the question may press R and one on their Touchstone telephone. If you wish to remove yourself from the question, you may 8:20 8 minutes, 20 seconds press R and two. Participants are requested to use handsets while asking a question. 8:27 8 minutes, 27 seconds Ladies and gentlemen, we will wait for a moment while the questions. 8:33 8 minutes, 33 seconds Participants, you may press star and one to ask a question. 8:44 8 minutes, 44 seconds The first question is from Rahan say from three asset managers. Please go ahead. 8:50 8 minutes, 50 seconds Uh yeah good afternoon uh to you and thanks for taking my question. Uh so sir my first question is around your 8:57 8 minutes, 57 seconds inventory levels that have risen significantly to uh 77 cr. So as you I I understand as you scale your SQ has 9:06 9 minutes, 6 seconds reached over 31,216 further 26. So how are you ensuring that the 9:14 9 minutes, 14 seconds highway approach doesn't lead to a long tail of slowmoving inventory in your fulfillment center? This is my first question. 9:22 9 minutes, 22 seconds Sure. Um I'll I I'll I'll take one one question at a time. So um on on the 9:28 9 minutes, 28 seconds inventory management part, um I just want to be clear that the SKQs that we report are the number of SKUs that we've launched to date. Uh not all of these 9:38 9 minutes, 38 seconds SKUs are in stock, which means that there could be a number of SKUs would have which would have sold through uh over a period. uh and if you see the 9:46 9 minutes, 46 seconds incremental SPUs within this quarter, it has been at the constant pace um that we have been recording quarter on quarter. 9:53 9 minutes, 53 seconds Uh in fact uh much of the growth is coming from going deeper uh in SPUs that have performed much better in the 10:00 10 minutes previous uh in the previous periods. Um uh so so the space of launch uh remains constant. There is very slight 10:09 10 minutes, 9 seconds acceleration in launch of SPUs which is commensurate with us entering into H2 where the where the pest season is. Um 10:18 10 minutes, 18 seconds uh however that remains stable generally and the in stock SQS are not u uh is is is is actually the correct metric to 10:26 10 minutes, 26 seconds look at and we will see how we can update how how we uh release that information um so that it gives more knowledge. In any case, uh I just want 10:34 10 minutes, 34 seconds to uh reiterate on one of our long-standing high width lowdepth strategies. 10:40 10 minutes, 40 seconds So, uh it is important to understand that when we launch a style, uh we do not launch a lot of inventory in that style. It is just 100 120 units that we 10:48 10 minutes, 48 seconds launch across, you know, four, five, six uh sizes uh to just test out. uh once this test is completed and then only do 10:56 10 minutes, 56 seconds we decide based on certain um um performance markers whether we have to scale or not. Uh due to this test and 11:05 11 minutes, 5 seconds scale model uh generally uh the inventory contribution in some of these styles is very less uh you know is very less to launch our style but yes once we 11:14 11 minutes, 14 seconds have identified how well it is performing uh our ability to scale is is is what uh drives us future growth and um profitability. So this is the core of 11:23 11 minutes, 23 seconds our uh model and how we are doing things and uh that that remains to uh be there. 11:29 11 minutes, 29 seconds Um other than this obviously even the styles that we are launching. So one is doing high with low depth. The other is launching smart inventory based on 11:36 11 minutes, 36 seconds actual trend insights uh that we do. We identify what is actually working which micro markets which is keywords are actually working on marketplaces and we 11:44 11 minutes, 44 seconds launch based on that. So we are launching very specifically where there is organic demand. Um having said that even then uh you know there is end of 11:52 11 minutes, 52 seconds end end of cycle end of life uh kind of inventory that that does come up uh you know uh for which we use our end of season sale uh periods uh which is 12:01 12 minutes, 1 second typically in June and December to clear out the inventory. Um and those sales typically are at a discount. Um so so 12:08 12 minutes, 8 seconds largely a combination of these factors allow us to clear most of the inventory you know within a 180 to 40 day kind of 12:15 12 minutes, 15 seconds period. Um and that's for the tail inventory uh the period that I was speaking about not for the general on an average. Um even then if there is 12:24 12 minutes, 24 seconds certain amount of inventory that um cannot be liquidated then we have a liquidation team based out of Bangalore uh that looks into how brand markers can 12:32 12 minutes, 32 seconds be removed and then this can be removed at a certain discount um in in in alternative markets but again that's a very small percentage of the overall 12:40 12 minutes, 40 seconds inventory. So all in all um uh uh the various uh steps that I mentioned um allow us to kind of manage inventory 12:48 12 minutes, 48 seconds more effectively. Uh this is to answer your first question. I will pause here in case you'd like to ask the second question. 12:55 12 minutes, 55 seconds Yeah. Yeah. Uh yeah very clearly and my second question is around your receivable sited uh your 13:02 13 minutes, 2 seconds trade receivables have climbed up to 71 cr as of H1 F.26 up from 57 cr 25. So 13:10 13 minutes, 10 seconds given that 94% of the revenue is now B2C which usually involves shorter payment cycle. So what is the reason for this 13:18 13 minutes, 18 seconds increase and what steps are being taken to improve the customer right connecting with this uh okay 13:28 13 minutes, 28 seconds sure please my question yeah please and yeah connecting with this question like uh could you please uh give the overview of your how your uh 13:36 13 minutes, 36 seconds stores are performing in Bangalore sure um so that would be three questions um I'll take question two first on the 13:44 13 minutes, 44 seconds receivables um Um with respect to receivables I I there are a couple of factors that are important to understand. Um one is that 13:53 13 minutes, 53 seconds our general payment cycle online uh you know is about 45 days 30 to 45 days um with the marketplace partners. Um we are 14:02 14 minutes, 2 seconds also selling a lot of inventory on B2B2C model. Okay. Uh essentially uh thereby 14:09 14 minutes, 9 seconds removing all um u uh various variables in terms of logistic costs and those kind of things. Um so in those cases 14:17 14 minutes, 17 seconds also there is a credit cycle associated with it. Having said that uh in the case of pure B2C uh we show all customer 14:25 14 minutes, 25 seconds returns as a receivable till such time that the inventory is received back by us. So at any point of time some portion of our receivables would actually be 14:34 14 minutes, 34 seconds customer returns uh and stock that is pending to be received again. So that's the second aspect to understand 14:40 14 minutes, 40 seconds um which stands in receivables. So that's technically stock standing within the scope of receivables. Um and and and 14:49 14 minutes, 49 seconds that's mostly from an accounting point of view how how we represent things. And the last point is that most of our sales uh for the past quarters including this 14:57 14 minutes, 57 seconds current quarter have been concentrated in the third month of the quarter largely because the festival or the sale 15:04 15 minutes, 4 seconds periods are forming up. Just to give you an example, last year it was March was um Eid and Ugadi Parva. 15:12 15 minutes, 12 seconds June was end of season sale. September was the train and again December was ender season winter. So because the of 15:19 15 minutes, 19 seconds revenue concentration in month three of of a given period about you know 50 60% revenue coming in month three. Um 15:27 15 minutes, 27 seconds thereby the refugal kind of uh uh you know uh showcase a point in time of being higher than normal which reverses 15:35 15 minutes, 35 seconds over the general course of business. Um so so a combination of these three factors have to be understood uh to look at with greater clarity. 15:49 15 minutes, 49 seconds Uh but but just to be clear uh yes uh receivables um are something that would normalize over a period of time as we 15:56 15 minutes, 56 seconds scale it is that we are working on multiple models. Um but as this would also kind of uh come to a more stable level 16:04 16 minutes, 4 seconds but so so far as the sale concentration in monthly that is kind of the major factor that results in um certain amount of escalation because most of the 16:13 16 minutes, 13 seconds receivables emanate from that particular month. Yeah. 16:19 16 minutes, 19 seconds Uh and so this is the question three on stores. 16:24 16 minutes, 24 seconds Uh so the stores have been performing well but again um as I said it's just six stores at the moment which is a very low base. Um they are not a major 16:33 16 minutes, 33 seconds contributor to the overall revenue or to the capital deployed of the company at this point of time. Um and currently we 16:40 16 minutes, 40 seconds continue to be focused on getting greater depth uh within e-commerce online um or greater width within 16:48 16 minutes, 48 seconds e-commerce online and that focus continues to remain. Um at this point it is again too early. It's it's uh only 16:55 16 minutes, 55 seconds been a quarter um you know since since uh the last time we kind of looked at performance. It's still a bit too early 17:02 17 minutes, 2 seconds to kind of uh look at it. Um but but uh we are to go kind of do a full review in March and maybe as a part of the next 17:09 17 minutes, 9 seconds set of investor presentation release we can talk a little bit about how the stores are performing more specifically. Yeah. Okay. Fair enough. Fair enough. 17:17 17 minutes, 17 seconds And last one bookkeeping question like if you can just highlight how you are seeing the quarter 4 regarding any industry headwinds or tins if you just specify any thing on that. 17:30 17 minutes, 30 seconds Sure. So uh quarter 4 again remains a generally upbeat quarter from a demand point of view. Uh we do see good demand. 17:37 17 minutes, 37 seconds Um overall um again month three where we have our Eid and Guripadwa sale happening that is going 17:45 17 minutes, 45 seconds to be the critical month that would be the defining month for us. 17:49 17 minutes, 49 seconds Uh but largely it remains from a from a demand point of view thinking positive. 17:54 17 minutes, 54 seconds Uh some of our bets that we did this year in the winter have paid off well. 17:57 17 minutes, 57 seconds some of it would show effect has shown effect in Q3 and some of it will show effect in Q4 uh as well. Um other than 18:05 18 minutes, 5 seconds this there are uh you know few lateral projects in terms of increasing width uh that that we are working on. Um and at 18:14 18 minutes, 14 seconds the same time we're also looking at how we can take um uh how we can work with the right partners um you know who can distribute inventory globally as well. 18:22 18 minutes, 22 seconds There's an entire global e-commerce uh angle that has uh come into the uh come into play right now. Uh but these are small seeds that we are putting in right 18:31 18 minutes, 31 seconds now which may give a bigger you know uh resolve over uh next few quarters. Uh at this point of time the focus continues 18:38 18 minutes, 38 seconds to remain to gain depth within the categories and within the brands that we are working in at the moment with positive demand momentum. 18:47 18 minutes, 47 seconds Okay. Okay. Okay. Okay, that's it from coming quarter. Thank you. Thank you. Thank you. 18:56 18 minutes, 56 seconds Next question is from the line of Ankos Shagarwal from Serge Capital. Please go ahead. 19:01 19 minutes, 1 second Yeah. Hi, thank you for taking my question. Uh so firstly uh I mean we have seen a sharp jump in our other experience during the quarter. So is 19:10 19 minutes, 10 seconds there something to read over there? It's a normal course of business. 19:14 19 minutes, 14 seconds Um yeah. So uh that's uh thank you for that question. Um other expenses has largely escalated because increased marketing initiatives on our side uh from a uh Diwali Dasera point of view. 19:26 19 minutes, 26 seconds So you need to kind of get greater brand visibility during this time uh because the spends across the board from a competitive landscape is generally 19:33 19 minutes, 33 seconds higher on marketing. Uh so this is something that we had to find um uh you know the the visibility trends to get 19:40 19 minutes, 40 seconds the right amount of visibility onto our products and that has what it what has happened uh in this uh particular uh period. Um okay 19:48 19 minutes, 48 seconds again for us uh the visibility spends are largely ROI oriented. So we kind of make sure that we are still earning uh the right right kind of ROI on the 19:56 19 minutes, 56 seconds spends that we do um uh you know out there. So um so this is to answer on the other expenses largely going to marketing increased marketing expenses 20:05 20 minutes, 5 seconds during festive period to ensure that brand gets the right amount of visibility um and does not lose out on visibility to other competitors 20:14 20 minutes, 14 seconds but it's absolutely in the with this okay uh secondly in your notes to account you have mentioned that uh we have taken a 20:21 20 minutes, 21 seconds write off of inventory of about 22 crores and that same has been written off in the P&L but uh your expense uh 20:28 20 minutes, 28 seconds doesn't tally that we have written off that 22 crores in the P&L. So just wanted to understand where we have written off that amount. 20:35 20 minutes, 35 seconds Sure. Um I'll just clarify on the accounting of this. So uh we have um we have a valid insurance claim. Um our 20:42 20 minutes, 42 seconds insurance policy completely covers u this value in question. Uh so what we have done is we've written off the carrying value of uh the inventory and 20:51 20 minutes, 51 seconds based on um the relevant communications that we've had with our surveyors and with the insurance company uh based on that um there is a certain amount that 21:00 21 minutes we are that that that is expected to be recovered and that has been recognized as a receivable um which is equal to the carrying value of the of this inventory. 21:09 21 minutes, 9 seconds Um okay so what has essentially happened is that there is a write off in the P&L which is based on um the value of the 21:16 21 minutes, 16 seconds stock and there is also a uh exceptional gain uh that that that has been recorded on account of expected insurance claim 21:25 21 minutes, 25 seconds receipts and there's an insurance claim receivable also that has been recorded accordingly. So com so these are net of each other. 21:32 21 minutes, 32 seconds So net yeah sorry net net there is no yeah good go yeah yeah yeah yeah yeah the the portion 21:40 21 minutes, 40 seconds that is not covered by insurance which is amounting to about 31.22 to two lakh which is uh which has been communicated to us. That part we have written off 21:48 21 minutes, 48 seconds because that is uh something that is known to us uh that is not covered by insurance and that part we have written off but yeah net net the uh the the loss 21:58 21 minutes, 58 seconds that has occurred on account of fire um uh has been rec has been covered against the insurance claim receivable based on the policy coverage. 22:08 22 minutes, 8 seconds Right. So net net 31 lakhs is what we have written of duty support in the PN uh 20 21.8 lakhs above. 22:18 22 minutes, 18 seconds Oh no uh but there is a receivable against it right. So net impact on the PNI during the quarter is only that 31 lakhs 22:26 22 minutes, 26 seconds right yeah just the 33 lakh 31 lakh sorry 31.2 lakhs. 22:31 22 minutes, 31 seconds Yeah. Uh lastly Vant uh just on the receivables so like being the D2C sort of you know uh business one would expect 22:39 22 minutes, 39 seconds that the receivables would be relatively modest. uh I mean I do understand that uh given the scale and you know the kind 22:47 22 minutes, 47 seconds of receables day of 30 45 days that you're saying but still for a uh business from say for example now almost 22:54 22 minutes, 54 seconds 35 40% of uh a business is coming from own brands and even if uh uh we understand that in the business that 23:02 23 minutes, 2 seconds you're doing for the licensed brand the uh receives might be on the higher end but still I mean uh receivable was which is close to like 100 days sort of 23:09 23 minutes, 9 seconds doesn't add up for a business like yours so uh I mean even if you say say 35 45 day sort of receivable cycle still that 23:18 23 minutes, 18 seconds number on the books it's still uh relatively higher. So just wanted to understand uh one thing that I wanted to ask is uh since a lot of our uh sales 23:27 23 minutes, 27 seconds are routed through our uh parent company bank. So is it a situation where in some of the receivers are also stuck on on 23:34 23 minutes, 34 seconds that uh company or that company pays us off immediately as soon as they receive uh the money from the marketplaces. 23:41 23 minutes, 41 seconds Okay. So there are two parts to this. Uh one is most of our sales is driven through marketplace model. Um in within 23:48 23 minutes, 48 seconds marketplace models as there a number of uh subm models um uh that that we operate on um uh they are in the nature 23:56 23 minutes, 56 seconds of a B2B2C transaction also um in some cases. So in those cases basically there is a credit period associated. Um uh 24:06 24 minutes, 6 seconds again it depends on the model itself but for that we get better commercial terms in terms of pricing in terms of um uh you know variability in the um expenses 24:15 24 minutes, 15 seconds variable expenses. Um so those things are managed better in those models. So that's why we prefer it even though the credit period is um slightly on the 24:23 24 minutes, 23 seconds higher side in those cases. Um having said that the uh the real reason why receivables kind of look to be on the 24:30 24 minutes, 30 seconds higher side um are you know one is a timing effect um of concentration of revenue in a particular month and the 24:38 24 minutes, 38 seconds second is that the returns uh the customer returns the mean which we account for it though it is actually stock it is shown as returns till such 24:45 24 minutes, 45 seconds time that it is uh received back um if if uh I mean we can consider looking at an accounting or representation where 24:54 24 minutes, 54 seconds that inventory actually looks in stock and you know it's this thing but then we'll have to prepare certain comparatives to make sure that you the investors understand this better um yeah 25:03 25 minutes, 3 seconds but having said that all our transactions with respect to so one is the transactions which were happening through Bangalore overseas which was a 25:09 25 minutes, 9 seconds um related party that is getting um curtailed over a period of time as a percentage of the overall revenue most of the contracts are getting transferred 25:17 25 minutes, 17 seconds directly within Thomas India Limited um and these effects will start have already started to show from Q3 onwards will continue into Q4. Uh so in that 25:25 25 minutes, 25 seconds case also there's direct kind of um there's no pass through or anything. Uh but otherwise also the pass through is just one is to one uh in most cases. So 25:33 25 minutes, 33 seconds it's just the sale of a month or so that kind of remains and that kind of you know churns through in the coming months. 25:38 25 minutes, 38 seconds Right. Right. Okay. So like in the very long run as you grow as a business case and everything uh do you believe uh 25:46 25 minutes, 46 seconds there is room for substantial reduction in receable debt or it would be more of a uh sort of gradual reduction it would still sort of settle at a relatively higher levels. 25:57 25 minutes, 57 seconds No we I we believe that uh long-term receivable would settle at somewhere around 60 days. Um and this is under current accounting practice. 26:05 26 minutes, 5 seconds Sorry I missed that number. Sorry. How many days you said? Uh 60 days. 60 days. 60 days. 26:13 26 minutes, 13 seconds Yeah. Yeah. Longterm. Long-term. I'm saying longterm. We believe that refusal days would settle somewhere close to 60 days. Um but there is a u you know um we 26:23 26 minutes, 23 seconds need all the contracts uh to be transitioned in that manner our models to kind of move into pure B2C. So those kind of things are um under play right 26:31 26 minutes, 31 seconds now. um as soon as that kind of comes into effect over a period of time automatically you will start seeing receivable days of closer to um 60 days 26:40 26 minutes, 40 seconds uh I can't commit a timeline at the moment as to where we will get there because you know at the end of the day there are certain business considerations why we offer additional credit period as well um but uh that 26:50 26 minutes, 50 seconds that should kind of uh normalize uh uh you know over a period of time as we scale 26:56 26 minutes, 56 seconds got that thank Thank you. Next question is from the 27:05 27 minutes, 5 seconds line of Dia from Sappaya Capital. Please go ahead. Hi sir. Am I audible? 27:12 27 minutes, 12 seconds Yes. Yes. I hear you. 27:15 27 minutes, 15 seconds So how much did the winter wear collection contribute to our revenue this quarter? 27:22 27 minutes, 22 seconds Sure. So um we believe that about um um based based on our so so when we say winter there are two parts to it 27:30 27 minutes, 30 seconds actually one is a autumn winter 26 kind 25 kind of collection which is say heavier shorts and those kind of things 27:39 27 minutes, 39 seconds and then there is win core winter wear articles which is like jacket sweater sweatshirts and those kind of products. 27:45 27 minutes, 45 seconds Um all right um now when I say winterware I I when I say winterware I just mean core winterware products. I do not mean you know other articles in 27:54 27 minutes, 54 seconds which there would be sort of winter based launches. Uh when I when we look at purely winterware products which is largely sweater, sweatshirt, jackets, 28:02 28 minutes, 2 seconds these products have contributed um somewhere close to about 15 to 20% during u this particular quarter. Uh and 28:10 28 minutes, 10 seconds in the month of December it was as high as 35%. 28:18 28 minutes, 18 seconds All right. And can you quantify the inventory loss uh at our warehouse in Bandi? 28:23 28 minutes, 23 seconds Yeah. So the carrying value of the inventory at our warehouse in Bandandy has been disclosed in notes to account at 21 K 85 lakh rupees approximately. 28:36 28 minutes, 36 seconds All right sir. And one last question uh are expectations for revenue next year and also for margin. 28:45 28 minutes, 45 seconds Um so currently we are not giving any forward-looking statements uh in terms of this thing uh the revenue or margin projections but we will continue to 28:54 28 minutes, 54 seconds remain on a growth trajectory that we have been so you would see a very very similar set of growth uh growth numbers is what we're expecting over a period of 29:02 29 minutes, 2 seconds time. Um so the growth journey will continue and we are targeting aa margins between 12 to 15% at any point of time. 29:10 29 minutes, 10 seconds So we will maintain that. Um obviously as we scale there is potential for these margins to improve. Okay. 29:19 29 minutes, 19 seconds All right sir. Thank you. Thank you. 29:25 29 minutes, 25 seconds Next question is from the line of Harsha from Samara International LLP. Please go ahead. 29:32 29 minutes, 32 seconds Hello. Hi. Uh thank you for the opportunity. Congratulations. 29:37 29 minutes, 37 seconds Uh so sir my question is related to our uh fire incident and uh so sir we have 29:45 29 minutes, 45 seconds recorded a write down in our PNL and we have recorded a receivable from the insurance company. So what is the timeline when do we expect to receive the payment from the insurance company? 29:59 29 minutes, 59 seconds Sure. Thank you for the question. So um since the matter is subject to u you know insurance and survey um I can't 30:07 30 minutes, 7 seconds really comment much on it but generally um our claim is mostly claim of stock uh and stock claims are generally backed by uh you know uh strong uh GST documents. 30:18 30 minutes, 18 seconds Um so based on this and based on our understanding of how claims work um stock claims are generally faster to 30:25 30 minutes, 25 seconds settle. Um the only thing is that u the only thing is that the sheer documentation that is required to be submitted considering the high volume of 30:33 30 minutes, 33 seconds transactions that were happening from this particular warehouse uh is on the higher side. So and there are several prescribed formats in which these submissions have to happen. So there are 30:42 30 minutes, 42 seconds few iterations that we have to go through. Um but generally you know uh once the entire documentation is completed we don't expect that it should 30:48 30 minutes, 48 seconds take too much time uh for the claims to be um uh settled. uh and and our team is on it um you know to to make sure that 30:56 30 minutes, 56 seconds this happens um on on at the fastest uh pace possible. Um but yeah having said that I there is no fixed timeline that I 31:05 31 minutes, 5 seconds can you know mention at this moment but generally stock claims as I said are are very fast to uh are faster in general to to set. 31:15 31 minutes, 15 seconds Okay. Thank you. 31:21 31 minutes, 21 seconds Next question is from the of Ankor Gulati from Genuity Capital. Please go ahead. 31:30 31 minutes, 30 seconds Can you quantify revenue loss because of fire? 31:33 31 minutes, 33 seconds Anor, sorry to interrupt. We lost your audience between can you repeat a question from the beginning little louder please? I audible now. 31:40 31 minutes, 40 seconds Yes, can you quantify revenue loss because of I understand 21 inventory. So if if we 31:48 31 minutes, 48 seconds have to quantify revenue loss, should we just u add gross profit to this? That's that's the potential revenue loss in this quarter. 31:57 31 minutes, 57 seconds Um sure. Uh thank you for the question. 32:00 32 minutes I I was uh uh I'm I'm thankful for you to ask this question. Um no now while it is a little difficult to say because 32:08 32 minutes, 8 seconds there was a lot of effort that um our teams and you know the team at Thomas has put in post the incident to make 32:14 32 minutes, 14 seconds sure that we cover up revenue. So um you know uh it is it is a little difficult to say because because of the event 32:21 32 minutes, 21 seconds there are certain other actions that we took you know factories started working a little extra team started working more efficiently we figured out how we can work with channel partners more deeply. 32:31 32 minutes, 31 seconds So a lot of effort that was taken by the team post the incident um and and a great momentum has been achieved by the 32:39 32 minutes, 39 seconds team um you know owing to that um uh uh desire to kind of make sure that we do not miss targets. So that um so there 32:47 32 minutes, 47 seconds was a behavioral change overall in terms of how we kind of manage uh things um and you know they've uh we worked very 32:55 32 minutes, 55 seconds hard to kind of ensure that our growth journey does not get impacted despite this uh setback. um our supply chain was 33:02 33 minutes, 2 seconds quick to react. Um so there's a lot of things right from the grassroot uh factory worker to you know uh the teams operational logistics teams um that have 33:11 33 minutes, 11 seconds worked around the clock um you know uh to make sure that uh uh the the journey that the company is on in terms of 33:18 33 minutes, 18 seconds growth um is collectively kind of um achieved. Um having said that um and I'm 33:26 33 minutes, 26 seconds totally speaking from my judgment and it is very difficult to quantify because maybe we would have uh kind of um been in a very different state had that not 33:35 33 minutes, 35 seconds happened. Um but surely based on my judgment we feel that um there would be about a 15 to 20% um further revenue that we could have potentially achieved. 33:45 33 minutes, 45 seconds um based on judgment uh you know even uh despite a certain amount of hard work that was put in by the teams post uh 33:52 33 minutes, 52 seconds post the particular event um and uh some of the expenses that we have incurred in this quarter you know they would still 33:59 33 minutes, 59 seconds remain at the current level. So the margins could have been also higher. Uh but we have still kind you know kind of made sure that um as much as possible 34:08 34 minutes, 8 seconds the overall impact is minimized and um even for future quarters we kind of uh um up up the entire level of efficiency 34:17 34 minutes, 17 seconds or the level at which we are operating at so that um this momentum that we are in in terms of growth it continues um uh 34:24 34 minutes, 24 seconds you know going ahead as well. But uh yeah so headline is that it's little difficult to qualify because there are certain steps that we took post that 34:33 34 minutes, 33 seconds certain amount of hard work that the team has put in post that uh which I'm very thankful for. Um but in general purely based on my judgment we believe 34:41 34 minutes, 41 seconds that 15 to 20% um additional revenue could have been expected in this particular quarter. So you did 67 15% of that is 10 crores. 34:50 34 minutes, 50 seconds So steady state it should have been close to let's say 7576 this quarter. Fair enough. 34:57 34 minutes, 57 seconds Um yeah so I mean that that is what the 15% so we were looking at a number closer to 80 75 to 80 in case the fire 35:05 35 minutes, 5 seconds incident was um uh had not happened um but again the uh you know u it's it's difficult to say 35:12 35 minutes, 12 seconds and in this slide did you lose anything which you were which you committed to um some of your e-commerce clients or some 35:20 35 minutes, 20 seconds of the brands or is there a penalty clause that has triggered in the act or no or no there is no penalty clause or there is no um you know um so our growth 35:29 35 minutes, 29 seconds percentages have still been very high um and there are no penalty clauses dictated in general um in some contracts 35:36 35 minutes, 36 seconds of ours there are minimum guarantees uh that are there but even those would not be invoked because our revenue levels are still much higher than than the 35:42 35 minutes, 42 seconds minimum guarantee levels um so in any case there's there's no there's no uh there's nothing from that side in fact um channel partners have been very 35:51 35 minutes, 51 seconds supportive through this uh journey and um there has been certain uh uh new avenues that we have been working with 35:59 35 minutes, 59 seconds channel partners uh with you know in terms of increasing speed to delivery by housing inventory you know with with channel partners. So those kind of 36:06 36 minutes, 6 seconds models have opened up um and and that has resulted in making sure that the level remains. 36:14 36 minutes, 14 seconds Last part uh whatever the inventory loss uh uh any color that whether you lost that mostly in your for your own 36:22 36 minutes, 22 seconds showrooms or was it for uh licensed brands or for e-commerce. 36:28 36 minutes, 28 seconds So um so yeah so it was a mix it was it was a very similar uh mix to the revenue mix overall. Um so generally we house 36:37 36 minutes, 37 seconds inventory in a manner that um is optimized for speed. So it's not that it is concentrated with one particular 36:44 36 minutes, 44 seconds brand all too you know it's uh concentrated very evenly across all our warehouses. 36:52 36 minutes, 52 seconds Okay thanks all the thank you ladies and gentlemen you must press star and want to ask a question. 37:01 37 minutes, 1 second Next question is from the line of SNIL Kabra from SK Enterprises. Please go ahead. 37:10 37 minutes, 10 seconds Hello. Hi Sel, thank you for the question. 37:16 37 minutes, 16 seconds Uh yeah, hi Van, congratulations on another quarter of good performance. So I just had a couple of questions. What 37:23 37 minutes, 23 seconds exactly is uh driving demand for us and uh what are the triggers that will help us in growing the top line and also are are we in talks with any new brands? 37:35 37 minutes, 35 seconds Sure. So um so generally the demand has been upbeat and uh you know our our test 37:42 37 minutes, 42 seconds and scale model is something that is servicing us uh better than before where we have a lot of uh top ranking products that we have created over this period of 37:51 37 minutes, 51 seconds time. Um and there is good amount of demand and ranking on those products and they are driving kind of continuous 37:58 37 minutes, 58 seconds profitable sales for us. Um so going deeper in general with our existing brands and making sure that we are able to maintain ranking through our superior 38:07 38 minutes, 7 seconds quality and execution. Um that is kind of making sure that the the the demand is maintained or the demand momentum is 38:14 38 minutes, 14 seconds maintained. Um at this point of time I can't really comment on any brand that we are on boarding or are working or you know are are looking at because that is 38:22 38 minutes, 22 seconds generally competitive information for us. Um but uh uh the focus at this point of time is in terms of going uh deeper 38:31 38 minutes, 31 seconds uh in terms of the existing brands that uh we are working with um and um also kind of focusing how we can leverage our 38:39 38 minutes, 39 seconds um e-commerce knowhow um you know to to create additional um channels or demand 38:47 38 minutes, 47 seconds even with the current uh brand pool. uh probably you will hear more on this uh in the March quarter once there are certain contract signings or launches 38:55 38 minutes, 55 seconds that happen uh which are in the pipeline but uh till such launches or contract signings are completed I'm unable to comment on them. 39:04 39 minutes, 4 seconds Yeah. So uh is this a function of uh better customer discovery or uh anything else that you want to add here or better 39:13 39 minutes, 13 seconds marketing I mean yeah so it's really a function of making sure that um our products that are top ranked continue to remain top ranked um 39:23 39 minutes, 23 seconds um you know and we keep adding more and more top ranked products um so our our uh you know we we are doing small 39:30 39 minutes, 30 seconds launches small batch launches seeing how things perform so our inventory investment is very low but um the products that hit they are big hits and 39:38 39 minutes, 38 seconds we have to just make sure that we're maintaining them with the right quality in stock all the time and um as soon as that happens marketplaces in general 39:47 39 minutes, 47 seconds start pushing product uh by themselves your product kind of uh starts climbing the ranks and get getting more visibility by itself. Um so so uh uh 39:56 39 minutes, 56 seconds this momentum has kind of come in and uh that is contributing to um you know uh greater demand of us. 40:06 40 minutes, 6 seconds Yeah. Thanks. 40:10 40 minutes, 10 seconds Thank you. Next question is from the line of Anel Parik and division investor. Please go ahead. 40:20 40 minutes, 20 seconds Hi. Am I audible? Yes sir, you're audible. 40:25 40 minutes, 25 seconds Um okay thank you for taking my question. Hi Vidant. Um I was just trying to understand the business of 40:32 40 minutes, 32 seconds Thomas in a little more detail. Um I'm going through your website and I see products which are listed at a price 40:39 40 minutes, 39 seconds point of greater than 4,000 um for even shirts and jeans. I was just wondering uh you know cuz when when you compare uh 40:48 40 minutes, 48 seconds this pricing to popular brands like Levis's you know when it comes to denims and jeans they're priced at a lower 40:55 40 minutes, 55 seconds price point. So I guess my question is which age group is your primary target audience. Any details you could share on 41:03 41 minutes, 3 seconds you know what percentage of your sales go to under 20 age group between 20 and 30 and so on would would really help. 41:11 41 minutes, 11 seconds And um you know in addition you know um how uh your expensive products how 41:19 41 minutes, 19 seconds quickly do they move compared to products under 1,500? Could you share with me some details? 41:26 41 minutes, 26 seconds Could you give us a little bit of color on that? 41:29 41 minutes, 29 seconds Sure. So there are two parts to your question. One is on pricing for Thomas brand and the other is on the demographics. I'll take the first question. Um in terms of pricing for 41:38 41 minutes, 38 seconds Thomas Cot brand um so Thomas Cot has been launched as an online first online focused brand. Um okay uh when we had 41:46 41 minutes, 46 seconds launched essentially at that point of time there uh even right now there are certain browsing pages that are available on marketplaces um that are 41:54 41 minutes, 54 seconds available to only a certain discount percentage. All right. Um so there is so there is a high MRP high discount kind 42:01 42 minutes, 1 second of um uh uh strategy that was implemented for uh some of the product lines uh back then. Uh and uh it has 42:08 42 minutes, 8 seconds continued even today to make sure that we are relevant in those browsing uh pages. Uh it is more of a um you know a 42:16 42 minutes, 16 seconds strategy that we used to make sure that we can get as much additional visibility uh for our products as possible uh by 42:22 42 minutes, 22 seconds being able to enter those pages. Um and uh you may have seen some of those products generally but our selling price 42:29 42 minutes, 29 seconds is not that high uh you know it is it is mostly at par um you know with what a premium brand uh you know would be. So 42:38 42 minutes, 38 seconds our denims typically um have an average selling price of close to actually 1,200 rupees. Our trousers are close to again 1,200 rupees. Shirts are between 800 42:46 42 minutes, 46 seconds to,000 rupees. Um that's that's where the average selling price tends to trend. Uh so generally it's a good um you know good good uh it's a good 42:54 42 minutes, 54 seconds selling price to an online point of view. Um it is slightly more than what you will find for uh you know um lot of 43:02 43 minutes, 2 seconds other brands online. Uh but um again I I want to emphasize that um the quality that we offer and the kind of product 43:09 43 minutes, 9 seconds that we offer um the same uh factories that make goods for world-class brands are also making for Thomas Cot and there are certain you know additional cost 43:17 43 minutes, 17 seconds associated with it. Um but it's this very quality that kind of creates a repeat customer behavior um for us. So 43:25 43 minutes, 25 seconds um that's that's that's the reason why uh you know um our pricing may be on a slightly the higher side but I don't think it is remarkably higher uh than 43:34 43 minutes, 34 seconds than than the competition. Um um having said that um overall uh you know uh it's 43:41 43 minutes, 41 seconds just a high MRP high TD high discounting kind of thing that uh and those products that you may have seen that you may have formed that view but generally pricing 43:49 43 minutes, 49 seconds is at par um and in terms of demographics um uh so our our major 43:55 43 minutes, 55 seconds demographic actually is the 25 uh to 40 years uh segment um and there is also 44:03 44 minutes, 3 seconds secondary demographic that we target which is between 20 to size. Um essentially a lot of our you know uh 44:10 44 minutes, 10 seconds purchases uh a lot of purchases that happen are for young um individuals who are um young men who are moving into 44:18 44 minutes, 18 seconds their first job or into corporate jobs or have just you know in the first two three years of their corporate jobs. Um a lot of our marketing initiatives also towards it kind of see us as the pre 44:27 44 minutes, 27 seconds preferred brand um or you know a casual go to office or go go to go out um or 44:34 44 minutes, 34 seconds daily wear you know positioning and then these customers tend to remain you know repeat customers for a long-term period 44:42 44 minutes, 42 seconds of time um ensuring brand loyalty. So uh so that's how we kind of um target our customers but yeah most the major 44:50 44 minutes, 50 seconds demographic in terms of actual sales um is about 25 years to 40 years. Um yeah that that's great I have a quick 44:58 44 minutes, 58 seconds followup. Um you how do you see this uh you know the consumption landscape in India change for an apparel company like 45:05 45 minutes, 5 seconds yours? You know, say if we talk about two years out or five years out, any any any uh information on that would be 45:13 45 minutes, 13 seconds tremendously helpful because you're an online marketplace for apparel. How do you see this consumption pattern change? 45:19 45 minutes, 19 seconds You know, what does it look like it's going to be 3 four years out? 45:23 45 minutes, 23 seconds Sure. Sure. Sure. So, when we look at um um you know online, I will just talk about online apparel first and then I'll 45:30 45 minutes, 30 seconds kind of zoom into where we are. Um if you look at online apparel, it was growing at a very steady rate um you 45:37 45 minutes, 37 seconds know um right up to co um maybe somewhere around uh 30 30 35% kind of growth rates um that that some of the 45:45 45 minutes, 45 seconds marketplaces were experiencing right right up to co um in covid there was a J-shaped kind of increase in um online purchasing 45:53 45 minutes, 53 seconds um um this was largely driven by you know the lockdowns and um this resulted in the first time customers you know 46:01 46 minutes, 1 second your your first- time customers kind of trying online doing the test and buy uh those kind of things. Um and now these 46:09 46 minutes, 9 seconds customers who the first time bulk first-time customers that were created during co um they are now the repeat customers who are doing the 30th 40th 46:16 46 minutes, 16 seconds 50th purchase online. Um what we have found uh in in terms of our understanding of um the purchase 46:24 46 minutes, 24 seconds patterns u we have found that as these customers are going from their first purchase to their 30th or 40th purchase 46:30 46 minutes, 30 seconds their basket size and their um the kind of brands that they are purchasing are both increasing. By brands increasing I 46:38 46 minutes, 38 seconds mean they're premiumizing in general. Um this was something that we recognized in early 2024 and that's when we decided 46:45 46 minutes, 45 seconds that uh you know premiumization as a trend um is going to continue because of um number of factors. One is with repeat 46:54 46 minutes, 54 seconds purchases increasing confidence in online. That is the first factor and the second factor is an uh increase in the aspirational class overall who are 47:03 47 minutes, 3 seconds aspiring to buy products of a superior quality or a superior make. And the third factor is also uh disposable incomes increasing in general um you 47:11 47 minutes, 11 seconds know uh for the younger consumers. Um so a combination of these three factors made us believe that the right space for us to be would be from the mass premium 47:20 47 minutes, 20 seconds to premium kind of segment online and that's where we've geared our entire focus. uh we believe that this market will uh show outsized uh growth um 47:29 47 minutes, 29 seconds against say a baseline growth that online is experiencing online apparel is experiencing uh generally online apparel in major market places is expect is 47:37 47 minutes, 37 seconds experiencing a 25 to 35% uh kind of growth uh even right now uh we believe that the uh you know there there will be 47:45 47 minutes, 45 seconds outside growth that would be there in the more premium or mass premium segments and our focus will continue to remain out there. 47:52 47 minutes, 52 seconds Okay. So the mass premium and the premium segments that you're defining are you defining it somewhere in the price bracket of,000 to,500. 48:01 48 minutes, 1 second Uh yes. So um from 750 or right up to 2,000 uh you know is is the bracket that we're looking at. 48:09 48 minutes, 9 seconds Okay. And my last question is um you know what percentage of products sold come back as return? 48:17 48 minutes, 17 seconds Sure. So this defers um usually from brand to brand and category to category. Um and there are two types of returns. 48:25 48 minutes, 25 seconds Um I I'll just put a little bit of light on this. Uh in our case, our customer returns are quite low. Um so we we have 48:33 48 minutes, 33 seconds customer returns of somewhere approximately close to 20%. Um which is lower than um you know 28 to 30% than 48:42 48 minutes, 42 seconds most other apparel brands experience in terms of customer returns. um our return to origin which is basically in the case 48:49 48 minutes, 49 seconds of cash on delivery cood orders uh where the customer does not accept the order um so generally at the industry level it's anywhere between um you know 10 to 48:58 48 minutes, 58 seconds 20% uh depending on how many how localized your inventory and how fast you deliver to the customer is in our case it is as low as um you know uh 6 to 49:07 49 minutes, 7 seconds 9%. Uh so uh generally our return percentages are lower than um you know uh the benchmark uh two reasons driving 49:14 49 minutes, 14 seconds this uh from a customer returns point of view it's our superior quality um and the value that we are giving to customer um you know at at that price point um 49:24 49 minutes, 24 seconds and uh in terms of RTO it's because of our speed our localization of inventory that we are able to kind of have lower 49:32 49 minutes, 32 seconds uh return to origin RTO cases. So yeah that's that's on the customer returns. Excellent. Thank you so much. 49:39 49 minutes, 39 seconds Thank you. 49:41 49 minutes, 41 seconds Next question is from the line of Ankush Shagaral from Search Capital. Please go ahead. 49:46 49 minutes, 46 seconds Yeah. Hi Van. Thanks for the opportunity again. Uh so with that a core part of our business uh growth is driven by us identifying trends and then you know launching SQS and benefiting from them. 49:56 49 minutes, 56 seconds But uh can you give some sense of how much of our business would still be reliant on say SKUs or designs? those 50:03 50 minutes, 3 seconds were launched one year or two years back because uh unless we have a base business and as the business size grows uh I think driving growth from uh new 50:13 50 minutes, 13 seconds trends uh every now and then would slightly become difficult at a larger scale. So just wanted to understand how the base business is shaping. 50:20 50 minutes, 20 seconds Sure. Um so um the the positive is that we are focused in men's wear as a 50:28 50 minutes, 28 seconds segment where the trends are very long cycle. So even today um the amongst the uh you know bestseller products that we 50:37 50 minutes, 37 seconds created say two or 3 years back out maybe just two or 3% of those products have actually gone into a drend bucket 50:44 50 minutes, 44 seconds you know um otherwise these trends are long-term in fact in the case of men's wear we find that um you know launching 50:52 50 minutes, 52 seconds more colors um if if a base if a base color say black color short is doing well and if we launch a few more colors in that we end up finding that customers 51:00 51 minutes are also purchasing those other colors once they have confidence in the first color that they purchased. So um so the 51:07 51 minutes, 7 seconds trends are very long cycle and you can capitalize deeper on trends in men's wear uh once you know you we kind of 51:15 51 minutes, 15 seconds identify what's working and launch lateral products as well um be color variations um uh so um you know uh and 51:24 51 minutes, 24 seconds as I said for styles that we've launched two or three years back the detent rate has not been more than two to 3%. So we are stacking up a lot of um bestsellers 51:32 51 minutes, 32 seconds uh you know or rather rather a lot of high rank products over a period of time uh and uh you know that is driving um uh 51:39 51 minutes, 39 seconds a lot of our growth as well. Um having said that uh um it is still important to keep accumulating those bestsellers you 51:47 51 minutes, 47 seconds know uh and that is why the fashion engine also needs to keep churning. So it's it's it's a double engine growth is a double engine of uh crashing bets as 51:56 51 minutes, 56 seconds well as you know um replenishment or high rank style and you need to we need to kind of maintain the balance between 52:04 52 minutes, 4 seconds the two. Um we are maintaining a very constant rate at which we are launching new SPUs. It is accelerating at a constant constant rate just to be very 52:12 52 minutes, 12 seconds clear. Uh it is not like if we launch 5,000 this quarter it's same 5,000 to 5,000 200 5,000 300 SPUs in the coming 52:19 52 minutes, 19 seconds quarter. Um but again our bet sizes are so small that it becomes insignificant uh less lesser and less significant as a percentage of the overall launches uh that we do. 52:28 52 minutes, 28 seconds That's right. Okay. Got it. Got it. That was simple. Thanks. Thank you. 52:36 52 minutes, 36 seconds A reminder to all the participants. You must get started one to ask a question. 52:48 52 minutes, 48 seconds A reminder to all the participants, you may press R1 to ask a question. 52:58 52 minutes, 58 seconds As there are no further questions, I'll now hand the conference over to the management for closing comments. 53:13 53 minutes, 13 seconds As there are no further questions, I'll now hand the conference over the management for closing comments. 53:25 53 minutes, 25 seconds So I would like to give any closing comments. 53:29 53 minutes, 29 seconds Um um I would like to thank all participants in this um conference call. Uh, of 53:38 53 minutes, 38 seconds course, if you have any further questions or would like to know more about the company, um, please do reach out to our investor relations manager at 53:45 53 minutes, 45 seconds Palorimum Advisors. I would also like, uh, to thank Advisors for arranging this conference um, and, uh, the entire team. 53:53 53 minutes, 53 seconds So, uh, thank you. 53:56 53 minutes, 56 seconds Thank you very much on behalf of Thomas Scott and Delta. That concludes this conference. Thank you for joining us and you may now disconnect. 54:05 54 minutes, 5 seconds Thank you.