Titan Company Ltd — Q4 FY26

Titan Company Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=amhy00L4qxE Published: 5 days ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to Titan Company Limited Q4 and FI26 conference call. As a reminder, all 0:12 12 seconds participant line will be in the listen only mode and there will be an opportunity for you to ask question after the presentation conclude. Should you need assistant during the conference 0:21 21 seconds call, please signal an operator by pressing star then zero on your touchdown. I now hand the conference over to Mr. A Chawa, managing director, 0:29 29 seconds Titan Company Limited. Thank you and over to you, Mr. Cha. 0:34 34 seconds Thank you. U warm welcome to the Titan Quarter 4 FY26 earnings call. 0:41 41 seconds Thank you for being here this Friday afternoon. 0:45 45 seconds We have ended the year with a superlative quarter for topline growth, perhaps our best ever in the recent past. 0:55 55 seconds All our businesses have grown very well and all our brands have enhanced their visibility and equity in the quarter and the full year that went by. 1:06 1 minute, 6 seconds Over to you for all the questions so we can get on with the Q&A. Thank you so much ladies and gentlemen. 1:14 1 minute, 14 seconds We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish 1:22 1 minute, 22 seconds to remove yourself from the question cube, you may press star and two. 1:26 1 minute, 26 seconds Participants are requested to use handsets while asking a question. 1:31 1 minute, 31 seconds Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 1:39 1 minute, 39 seconds Our first question come from the line of Dwan Shuans from Anki Global. Please go ahead. 1:45 1 minute, 45 seconds Yes sir. Hi, congratulations on a good set of numbers. Uh sir uh firstly I wanted to check on gold sourcing. Uh the 1:53 1 minute, 53 seconds industry sources a considerable part of gold from India and uh there was some news flow also uh that there has been 2:00 2 minutes delayed removal of import licenses by DGFC. Uh checking if you could provide some color on the current inventory levels as well as any cost related to 2:09 2 minutes, 9 seconds sourcing that you foresee the um hi Dan Suok here. uh while yeah some 2:18 2 minutes, 18 seconds of those uh slow slowness they are also picking up from the customs point of view but we are pretty much quite 2:26 2 minutes, 26 seconds covered for you know quarter one uh and also our gold exchange program is very 2:34 2 minutes, 34 seconds very successfully being run from the last quarter three onwards actually we always used to run this but you know now 2:41 2 minutes, 41 seconds we have another level of and and on a short notice we can kind of if required further ratchet up and some of the other 2:51 2 minutes, 51 seconds uh plan B's are also ready. So we are at least not concerned in the short term as far as gold supply is concerned for 2:58 2 minutes, 58 seconds Titan Tesk and perspective Mr. So uh sir just small followup uh 3:07 3 minutes, 7 seconds from a availability perspective I understood but do you foresee any increase in cost uh maybe our gold medal loan cost was around 300 odd% uh do you 3:16 3 minutes, 16 seconds foresee an increase there? No, no, no, not yet. Actually, now if you would recall gold loan tenure has been 3:25 3 minutes, 25 seconds increased from 180 to 270 days and I think we are working on that and we are successful in starting that also. So we 3:35 3 minutes, 35 seconds don't see any increase in cost in gold loan at least in the short term. 3:41 3 minutes, 41 seconds Sure sir. Uh second couple of uh bookkeeping questions. Uh sir Dhamas is a recent acquisition. Uh international 3:48 3 minutes, 48 seconds loss has been around 80 cr in Q4. Uh if you could guide us on the topline scale growth as well as near-term loss rate 3:56 3 minutes, 56 seconds for Damas, it would be helpful uh in analy sort of forecasting uh for FI27. 4:04 4 minutes, 4 seconds You know one of the positive news for international business if you look at the full year at operating level they're becoming profitable and this is the 4:12 4 minutes, 12 seconds first year after whatever two three years back we started and we scaled it up so full year basis it is profitable. 4:20 4 minutes, 20 seconds Water force certainly had a challenges which we all are aware. Uh March month was quite uh disturbed in the GCC where 4:31 4 minutes, 31 seconds not only the mass is present but our talisk also uh is present. So all those 4:37 4 minutes, 37 seconds things have uh kind of uh come uh in the quarter for in the form of loss of 82 4:43 4 minutes, 43 seconds crore. what you are seeing uh GCC continues to be evolving or situation which is unpredictable at this stage and 4:52 4 minutes, 52 seconds where the Damas uh uh vast retail network is there and panis is also expanding there through some conversion 5:01 5 minutes, 1 second of Damas retail network so a lot of restructuring going on there uh so but but over the I would say two three 5:11 5 minutes, 11 seconds quarters beyond if you want to look at we are very very positive about the aspects of whatever is happening in the 5:18 5 minutes, 18 seconds integration the operational improvement we are quite positive about that so Damas you know the next four quarter we 5:25 5 minutes, 25 seconds started consolidating from the January first four quarter of course we are uh we have started disclosure in some 5:33 5 minutes, 33 seconds manner and maybe you will see in increased disclosure coming out of us as as kind of we get better uh you know and 5:42 5 minutes, 42 seconds and then Next year onwards you will also have comparison then you will able to assess how the situation in terms of 5:50 5 minutes, 50 seconds growth of revenue margin of uh the mass itself is improving but right now we are not separately calling out but it is not 5:58 5 minutes, 58 seconds a major part of 82 cr I can tell you whatever plan they had it is actually they have done better than that plan. 6:07 6 minutes, 7 seconds Got it. Uh so last one uh the unallocated losses uh which were which used to be around 20 30 cr uh this time 6:16 6 minutes, 16 seconds around is around 140 cr in Q4. Uh so what has led to this higher loss uh for uh corporate just give me a second. 6:30 6 minutes, 30 seconds Okay. So this is you know uh uh there was a quite a good performance for the 6:37 6 minutes, 37 seconds full year at Azo started and Titan in past also we have spoken about we have a 6:44 6 minutes, 44 seconds a tradition of sharing that superlative uh performance by sharing uh 6:52 6 minutes, 52 seconds ex we call it special reward uh which kind of announce once we know the result and that is How in quarter 4 uh it comes 7:02 7 minutes, 2 seconds uh without much planning and this year also uh the good performance has been celebrated by sharing that with all the 7:11 7 minutes, 11 seconds employees and all the people uh connected with Titan about 120 7:20 7 minutes, 20 seconds 120 cr roughly and that is what the variation you are seeing. 7:24 7 minutes, 24 seconds Sure. I have more questions but I'll join back in the queue. Yes. Thank you. Thank you. 7:33 7 minutes, 33 seconds The next question comes from the line of Adita Swan from CLSA. Please go ahead. 7:39 7 minutes, 39 seconds Hi. Uh thanks for the opportunity. So actually uh two followup questions. So you said uh a lot of that 80 to2 cr law 7:46 7 minutes, 46 seconds loss was uh not in Damas. So that would be for Titans uh uh uh Middle East businesses. Is is that the right assumption? 7:55 7 minutes, 55 seconds Yeah. Yeah, you're right. 7:56 7 minutes, 56 seconds Okay. and and which is why it's showing up in the standalone numbers, right? 8:01 8 minutes, 1 second No, it will not show in standalone. It is the international subsidiary. It is showing okay in the international sub. All 8:09 8 minutes, 9 seconds right. And and this 120 crores this is not uh attribute I mean the reason it's an unallocated loss is because it's not 8:16 8 minutes, 16 seconds attributable uh to any so it wouldn't be like a payment to the franchises right. 8:21 8 minutes, 21 seconds So this is just uh bonuses to employees or other partners or would this also include payment to franchises? 8:27 8 minutes, 27 seconds No, it is not payment to franchise. It is mostly employees and the uh other employees through different agencies who are connected with us. 8:37 8 minutes, 37 seconds All right. No, very clear. And then just very quickly on the uh watches business uh again we've seen you know like my colleague just uh 8:46 8 minutes, 46 seconds hinted me one thing which you would see in standalone uh in international uh I don't know what page you are looking at 8:54 8 minutes, 54 seconds but we from the 2526 although we had a transfer pricing arrangement all through start of international business but we 9:03 9 minutes, 3 seconds formalized that from 2526 where we are treating our all successively that low-risk distributor and that titan as a 9:12 9 minutes, 12 seconds parent company is in a way ensuring that a certain amount of basic profit is there and that transfer pricing 9:19 9 minutes, 19 seconds adjustment in standalone books is about 80 cr or plus minus but in consolidated 9:26 9 minutes, 26 seconds basis that nullifies because it is between subsidiary and parents so that I just wanted to point out for you as well 9:32 9 minutes, 32 seconds as all the people who are on the call understand that's very clear and that's why the standalone uh profitability will look lower. 9:41 9 minutes, 41 seconds Yes. Yes. Yes. 9:43 9 minutes, 43 seconds Okay. Okay. Very clear. And just quickly on the watches one uh so any you've given us a sense of how the analog 9:50 9 minutes, 50 seconds watches have have done but can you give us a sense of what the contribution for the full year is from analog watches. 10:00 10 minutes for the anal um hi this is Denny here analog watches uh overall 10:08 10 minutes, 8 seconds uh growth has been around 16% for the year um if you look at both smart and analog put together because smart uh 10:16 10 minutes, 16 seconds reduced in numbers overall growth has been about 14% uh for the watches division and you were asking about contribution 10:24 10 minutes, 24 seconds what contribution were you looking So no just a revenue contribution of analog watches within the overall business or within the watch business 10:34 10 minutes, 34 seconds within overall business analog within the watch business analog within the watch is around 85%. 10:43 10 minutes, 43 seconds now closer to 90. Yeah. Okay. Very clear. Thank you. That's it for me sir. 10:52 10 minutes, 52 seconds Thank you. 10:54 10 minutes, 54 seconds Our next question comes from the line of Miha from Namura. Please. 10:59 10 minutes, 59 seconds Hi sir. Congrats on a good set of numbers. Uh thank you for taking my question. Uh so first question is on buyer growth. I just wanted to get a 11:06 11 minutes, 6 seconds sense of what led to the return of buyers growth to 8% versus flat that we've seen for the past 9 months. Uh was 11:14 11 minutes, 14 seconds it a brief period of stable gold demand that brought it back or I'm sure you'll be doing certain activations etc on diamond. Uh so how should one look at 11:23 11 minutes, 23 seconds the return of buyer growth? Was it more from gold point of view or from activation point of view? 11:30 11 minutes, 30 seconds Yeah, thanks. This is uh Arun Narend here. So uh very clearly we have seen uh resurgence in buyer growth in quarter 4 11:39 11 minutes, 39 seconds and uh what we have reported is 8% versus a flattish for the period prior to that. Now two clear types of buyers. 11:47 11 minutes, 47 seconds Those who are waiting on the sidelines for uh Dubai and uh pretty much we have seen gold rates go up from uh festive uh 11:55 11 minutes, 55 seconds onwards. So three onwards it's been climbing and there are uh many customers who were waiting on the sidelines who 12:03 12 minutes, 3 seconds came in to buy in quarter 4. uh and we've also seen an advancement uh in wedding purchases uh because people were 12:11 12 minutes, 11 seconds anxious that it could go up uh even beyond and those who had uh who have weddings in their families uh in quarter 12:18 12 minutes, 18 seconds one also ended up coming in the months of Feb and March to it's a mix of both 12:27 12 minutes, 27 seconds which has helped but also we have seen a resistance in bio growth on the stud front as well aided and enabled by 12:35 12 minutes, 35 seconds of diamonds which has been a very very successful uh campaign a very fresh campaign very different from what uh what we've done in the past so on both 12:44 12 minutes, 44 seconds sides we have seen a good buyer growth uh lastly I think the continued exchange 12:51 12 minutes, 51 seconds campaign which we began uh in the month of just before uh uh festive really has you know uh worked extremely well. It 13:00 13 minutes helped get buyers in in quarter three and by sustaining it it's also helped us to get buyers in quarter 4. And now we 13:09 13 minutes, 9 seconds run we're running the exchange campaign both as a standalone campaign and you may have seen that a lot of our uh kanish campaigns which are new 13:17 13 minutes, 17 seconds collection campaigns also have an exchange uh uh section in the same campaign. So in a sense it's getting 13:24 13 minutes, 24 seconds reinforced with every campaign that we run. 13:29 13 minutes, 29 seconds Understood. May I request if you can crystal ball gaze on how do you see the sustainability of this? Do you think the 13:37 13 minutes, 37 seconds exchange program will help us uh ensure uh some level of bio growth to continue? 13:44 13 minutes, 44 seconds Uh we think so. We think so. We believe so. That's why we we are sustaining the investment uh behind exchange. It's very 13:51 13 minutes, 51 seconds relevant for wedding buyers. It's also relevant for others who uh are looking at uh you know updating their uh 13:59 13 minutes, 59 seconds collection of jewelry and uh I mean we all and the sentiment also of the campaign has resonated very well with 14:06 14 minutes, 6 seconds people because it has a certain public service mess and nationalistic angle to it. So all in all we think that uh you 14:15 14 minutes, 15 seconds know it is a good thing to run and it will give us uh rewards even going forward. 14:22 14 minutes, 22 seconds Got it. That is clear. Uh so that's one. 14:25 14 minutes, 25 seconds Uh secondly, wanted to get your sense on the increase in ticket size that we've been witnessing over the past two quarters of 44 and 40%. 14:34 14 minutes, 34 seconds Uh you know, should one extrapolate this growth given that the gold prices have gone up? Uh or do you think it is a 14:41 14 minutes, 41 seconds phenomena again because of you know wedding earlier activation in fourth quarter? uh can one expect this at least to continue for uh some more time? 14:52 14 minutes, 52 seconds Uh yeah. So if you track the gold rate trend of last year, you will see that there has there have been increases on a 15:00 15 minutes consistent basis and a big jump which happened close to uh Dashara and thereafter it's gone up significantly. 15:08 15 minutes, 8 seconds So uh therefore they will be you know uh uh I mean in that sense if you were to 15:15 15 minutes, 15 seconds compare let's say quarter 1 uh versus quarter 1 of last year just the increase in gold rate will give us a certain uh 15:23 15 minutes, 23 seconds ticket size benefit uh in quarter 1 and quarter two but the second half of the year we will have to see how the trend 15:30 15 minutes, 30 seconds of gold uh uh actually you know how it kind of pans out but perhaps for the first two quarters we may see a certain benefit. 15:41 15 minutes, 41 seconds Got it. And lastly on profitability uh you know you have been within the 11 11 half% band in the TMZ side of the 15:49 15 minutes, 49 seconds business in domestic. Um any confidence on sustaining these levels? I understand 15:56 15 minutes, 56 seconds this quarter while it is down yi but because of the diamond activation it will be optically sequentially better. 16:03 16 minutes, 3 seconds uh but ability to sustain these margins any insights of that will be great. Uh yeah yes Ashoke here you know I think this is 16:11 16 minutes, 11 seconds completely I would not say full correlation but gold price is playing a significant role on the product mix 16:20 16 minutes, 20 seconds aspect of it and consequently it is very difficult to tell sustainability. Yeah, 16:27 16 minutes, 27 seconds if gold remains at the current rate, it is sustainable. But if go gold continues to go up, we may have to keep making 16:34 16 minutes, 34 seconds effort which which has been a huge effort by the team on various things which we have talked in the past uh like 16:41 16 minutes, 41 seconds doing 18 karat 14 karat jewelry doing mix re-engineering lightweight jewelry lot of things they have been doing. So 16:48 16 minutes, 48 seconds to some extent you can offset that but beyond a point you know there will be impact on margin and and that is visible 16:56 16 minutes, 56 seconds you know some 10 20 basis point we have been kind of uh losing and the other thing which we are able to offset 17:04 17 minutes, 4 seconds sometime through the control of our overhead costs etc optimizing that so I would not uh give you a good assurance 17:13 17 minutes, 13 seconds that this is sustainable lot of things are going on and maybe we will have more informed view to guide a little bit 17:21 17 minutes, 21 seconds about this. How do we see it you know in the context of where growth is number one priority? How do we see it? Maybe in 17:29 17 minutes, 29 seconds our investor day which we are planning in June first week. Yeah, 17:35 17 minutes, 35 seconds got it. Understood. prices have constantly gone up and you've been able to manage well and I was you know asking in that context only but I I hear you 17:44 17 minutes, 44 seconds and uh we look forward to uh you know seeing more guidance from you on the first week of June. Uh thank you all. 17:50 17 minutes, 50 seconds Keep sending your blessings. Uh we will hopefully continue to deliver. Just keep sending yourself. 17:57 17 minutes, 57 seconds Thank you sir. Wishing you all the very best. Thank you. 18:02 18 minutes, 2 seconds Thank you. Our next question come from the line of Kunal Bora from the NP Paribas. Please go ahead. 18:09 18 minutes, 9 seconds Yeah, thanks for the opportunity. I mean gold price is now stabilized at a fairly high level. How is the consumer managing with the high gold price? What is the behavioral change which you are seeing? 18:20 18 minutes, 20 seconds Any changes and trends in exchange or shift towards lower carat or increase in the jewelry budgets buying gold coins? 18:29 18 minutes, 29 seconds What's happening in the market? 18:31 18 minutes, 31 seconds Yeah, actually all of the above. Uh with you know because I think people have started accepting gold at this level and 18:39 18 minutes, 39 seconds this small cool off that we have seen in the last month or two is also kind of helped to bring people back because 18:46 18 minutes, 46 seconds there seems to be an acceptance that in the medium to long term it's again going to uh go back to its trajectory of 18:54 18 minutes, 54 seconds upward movement. That seems to be the sentiment with consumers. Uh from a brand standpoint, I think we have said 19:01 19 minutes, 1 second we need to make jewelry uh both exciting as well as accessible. So there are a set of things we have done to make it 19:08 19 minutes, 8 seconds accessible. Exchange is one. 18 karat gold is the other. 14 karat uh studded jewelry is the third. Lastly is the 19:17 19 minutes, 17 seconds jewelry purchase plan that we have which is a gramage purchase plan which is ongoing for the last two years. Uh which does a rupee cost averaging by uh by accumulation in grams and not in rupees. 19:29 19 minutes, 29 seconds Uh plus the whole lightweight piece where we are trying to get uh a significant difference in the uh weight of the jewelry versus the way it looks. 19:40 19 minutes, 40 seconds So look to uh price ratio. So multiple things we are doing to make jewelry accessible uh and exciting as well for 19:50 19 minutes, 50 seconds customers. But certainly there is interest in the category which is you know what we have seen in quarter 4 by way of a buyer growth uh both in 19:58 19 minutes, 58 seconds diamonds studded jewelry and in gold jewelry and we are also expanding the the pie by you know by what we have 20:05 20 minutes, 5 seconds launched also this aka which is uh getting you know entry into whole new world of natural gemstone jewelry to 20:14 20 minutes, 14 seconds make jewelry more exciting and uh provide uh collections and stories which have never been seen before. So a bunch 20:24 20 minutes, 24 seconds of things we are doing to keep jewelry and the category exciting and accessible. 20:29 20 minutes, 29 seconds Understood. Just a follow up there. So FY26 was a strong year for you. Uh and the deal will keep getting higher especially in the second half. Can you 20:38 20 minutes, 38 seconds share your early thoughts on FY27 generally sales growth also? You mentioned customers might have prep purchases. Is that a risk for SY27 and 20:47 20 minutes, 47 seconds how like say confident are you of like say maintaining the growth rate or like say the 20% growth which you've been talking about in the past how doable is that? 20:57 20 minutes, 57 seconds Yeah, I think in the past we have said between 15 to 20. So in a sense you know that uh holds good and we hope to to do 21:05 21 minutes, 5 seconds that and maybe do a bit better. Uh in a sense this preponement is you know can keep happening you know because you each 21:13 21 minutes, 13 seconds at each month you can keep advancing from the future because wedding dates are in a way sustained but uh it all 21:21 21 minutes, 21 seconds depends upon the trajectory of gold and what impact that makes on uh on consumer 21:27 21 minutes, 27 seconds sentiments. So we'll you know too early to call on that but we are hopeful to uh 21:34 21 minutes, 34 seconds to uh keep to the same guidance we may have given in the past. Whether we will sustain this trajectory I think uh perhaps time will tell. 21:44 21 minutes, 44 seconds Understood. Just lastly any comments on LGD4A beyond would you look to scale it up? 21:51 21 minutes, 51 seconds Yeah, like we said in the you know earlier uh we would certainly like to expand to you know around 10 to 12 21:58 21 minutes, 58 seconds stores uh in two to three cities and then kind of see how that you know because we've done a certain study we've 22:06 22 minutes, 6 seconds done a lot of interaction with customers and we reached a point where we believe that uh you know that it is a uh it is a 22:14 22 minutes, 14 seconds a twin engine approach to growing adoption uh in a very low penetrated uh diamond market which is India. So our 22:23 22 minutes, 23 seconds objective currently is very soon to scale up to you know the next step of 10 to 12 stores and then kind of see uh how 22:30 22 minutes, 30 seconds that works for us before planning uh uh national launch. So right now we are looking to get to that point. We are uh 22:38 22 minutes, 38 seconds we are at two stores currently and hopefully we'll get a bunch of stores uh in place uh well in quarter one is uh itself. 22:48 22 minutes, 48 seconds Understood. Uh thank you. That's it from me. Thank you. 22:54 22 minutes, 54 seconds Next question come from the line of Nihal Mahesh Jam from HSBC Bank. Please go ahead. 23:02 23 minutes, 2 seconds Yes. Hi team. Uh good evening. Couple of questions. Uh the first one was on the 15 to 20% growth for next year that you 23:09 23 minutes, 9 seconds mentioned. Uh does it say depend on the fact of gold prices coming to substantially increase? that also becomes an additional lever for buyer 23:17 23 minutes, 17 seconds growth or what are the caveats in terms of achieving that number? 23:23 23 minutes, 23 seconds uh see I think this is the general guidance that we have given that we should be able to sustain uh this kind of a growth 23:31 23 minutes, 31 seconds irrespective of uh gold rate because it's intrinsic to what we uh 23:38 23 minutes, 38 seconds what we kind of try to achieve irrespective of the gold rate and uh pretty much the playbook is very simple if gold rate goes up then we need to 23:46 23 minutes, 46 seconds manage the bio growth to uh deliver this number and to keep the category 23:53 23 minutes, 53 seconds like I said accessible. Uh so in a sense that's the playbook that we've been following also for the last year or so. 24:03 24 minutes, 3 seconds I I I will just add to that there's a joy here. These are fundamentals of jewelry category and industry 24:11 24 minutes, 11 seconds formalizing and therefore organized players growing uh more rapidly. 24:17 24 minutes, 17 seconds certainly players with stronger balance sheets as gold price go up as well as brands which are uh you know providing 24:25 24 minutes, 25 seconds that trust uh and of course differentiation. So I think that formalization of the industry continues to be a very strong underlying factor 24:33 24 minutes, 33 seconds for growth interest in the category because of its preciousness and thirdly the India growth story therefore the 15 24:41 24 minutes, 41 seconds to 20% is something that we ought to do you know if we don't do that much we won't be doing justice to all these 24:49 24 minutes, 49 seconds entailments caveats will always exist in terms of volatility in gold price macro sentiment etc but those need to be 24:57 24 minutes, 57 seconds managed Got that out of the way. Just one follow up to that that you know this FY26 was an 25:05 25 minutes, 5 seconds exceptionally you also mentioned there was a lot of for buying which would have played up say in Q3 maybe in Q4 that that kind of a customer obviously would 25:13 25 minutes, 13 seconds have come in one time or would have upsized the amount he spent. So potentially if you know you don't see that kind of a gold price up in this 25:21 25 minutes, 21 seconds current year maybe that customer goes out. 25:24 25 minutes, 24 seconds Does that still have any impact on this 15 to 20%? just asking your views on that. 25:29 25 minutes, 29 seconds I think this 15 to 20% uh whenever we have given we've never set it for a quarter or for a certain period it's 25:37 25 minutes, 37 seconds typically an annualized number and also a kind of a kagger for the next 3 four years and I would stay with that pluses 25:45 25 minutes, 45 seconds and minuses will happen preponement postponement can keep happening but that's more noise which happens between 25:52 25 minutes, 52 seconds month to month quarter to quarter think of it over the next 3 to four years what should be the growth I think India growth story and the formalization of the sector will land you in this space. 26:04 26 minutes, 4 seconds Got you. Final question. Uh beyond obviously the mix of gold and diamond which is sort of changing uh is there 26:11 26 minutes, 11 seconds any other pressure on margins in terms of say comparative intensity or is just maybe the mix that is leading to the uncertainty? 26:20 26 minutes, 20 seconds It's primarily that uh nothing else that uh that's in the mix. 26:26 26 minutes, 26 seconds So coin plays a role these days because investmentled orientation is high and that that and plain gold and diamond you 26:35 26 minutes, 35 seconds know these are the three broad categories which interplays and impact the margin. 26:43 26 minutes, 43 seconds Yeah. Understood. Thanks. 26:48 26 minutes, 48 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address all the question from the participant, we request you to 26:57 26 minutes, 57 seconds kindly limit your question. The two question per participant. If you have a follow-up question, please join the 27:06 27 minutes, 6 seconds next question come from the line of Cavalia Bank from Capital. Please go ahead. 27:14 27 minutes, 14 seconds Uh hi sir, this is Percy Panki here. Uh I just wanted to understand uh on the 27:20 27 minutes, 20 seconds competitive and uh margin front for the jewelry business. Uh what is the situation now uh uh in terms of 27:29 27 minutes, 29 seconds competition? Uh uh is it still sort of on a YI basis uh getting more intense in 27:36 27 minutes, 36 seconds terms of uh discounting and so on? uh and uh uh on a standalone basis now for 27:43 27 minutes, 43 seconds the India business uh what kind of AIDA margins are we confident of achieving in FI27? 27:54 27 minutes, 54 seconds Okay, thanks Percy. I'll answer the competition question. I think competition is now has become business as usual. uh nothing you know and I 28:04 28 minutes, 4 seconds think we have shown that uh we've got a playbook to kind of uh uh to deliver sustainable sustained results so it's 28:12 28 minutes, 12 seconds not something that uh that we are so concerned about and it's uh competition is here to stay and what Ajoy mentioned 28:20 28 minutes, 20 seconds on formalization is also resulting in uh organized competition uh putting up 28:27 28 minutes, 27 seconds stores and adding uh stores uh across geography fees. So that's something that is now part for the course. Uh yeah and 28:36 28 minutes, 36 seconds as far as you know margin is concerned I was answering to the earlier question where I was asked that 11.2% and how 28:44 28 minutes, 44 seconds much it can sustain. uh so it in a way uh you know we have been focusing on growth and in the current environment of 28:52 28 minutes, 52 seconds gold prices it's very difficult to uh predict or give you a number that or or a small range that within that we will 29:01 29 minutes, 1 second operate idea is that if we are growing revenue 15 to 20% in the same ballpark can we grow our ebit also at least you 29:10 29 minutes, 10 seconds know a little bit lower than revenue because the structural gold price impacts are happening We talked about product mix etc. But but a healthy 29:19 29 minutes, 19 seconds growth of EBIT which would be a source of cash flow and value creation overall but we will talk maybe more about that 29:27 29 minutes, 27 seconds uh in our investor day that how do we view this uh which is going to be June first week. Okay. 29:36 29 minutes, 36 seconds Yeah. And on the top line uh given uh supposing if the gold price remains roughly at 1 lak 50,000 for the rest of 29:43 29 minutes, 43 seconds the year uh on a yi average basis that would still be a significant inflation and uh uh although not fully to some 29:53 29 minutes, 53 seconds partial effect uh the gold price inflation uh typically has a positive effect on the topline growth. So when 30:01 30 minutes, 1 second you are saying a 15 20% growth, aren't you lowballing the uh possible growth for FI27 given where the gold price is currently? 30:13 30 minutes, 13 seconds Uh so we are not lowballing. We said this is the medium to 3 to 5 year horizon. If 30:21 30 minutes, 21 seconds you want to look at this is the growth rate we are growth rate we are expecting. We are not giving any guidance to you for FY27. As Arun spoke 30:30 30 minutes, 30 seconds about quarter 1 and quarter two may have benefit of this gold price inflation substantially. Quarter 3, quarter 4 30:39 30 minutes, 39 seconds already gold price was quite elevated and it will completely depend on trajectory from there on. So this 30:45 30 minutes, 45 seconds guidance of 15.1020 10 20 you look more that we have the way we are running business the way Indian macros are 30:53 30 minutes, 53 seconds behaving we believe 15 to 20% 3 to five year kind of horizon is certainly deliver deliver to be delivered on a 31:02 31 minutes, 2 seconds caggr basis kind of thing understood very clear sir thank you very much 31:11 31 minutes, 11 seconds thank you our next question comes from the line of you Benson SG, please go ahead. 31:21 31 minutes, 21 seconds Hi. Uh, thank you for the opportunity. I just have one question. A lot of this has already been discussed. Wanted to touch base on Carrot Lane. The 31:30 31 minutes, 30 seconds commentary seemed to suggest to me that uh one of the reasons why the growth sort of slowed from last quarter to this 31:37 31 minutes, 37 seconds quarter was a preference for higher gold jewelry across customers. 31:43 31 minutes, 43 seconds uh uh and which is why the studied drillery value proposition for carat lane uh uh had a had a challenge uh this 31:52 31 minutes, 52 seconds almost suggests there is funibility of gold versus uh studied or indeed calan versus tanisk/mia 32:02 32 minutes, 2 seconds u is this uh understanding correct um or is the customer's 32:09 32 minutes, 9 seconds uh uh use case and profile different for these How do you think about it structurally? 32:17 32 minutes, 17 seconds Uh Shin is there on the line but actually are you there? You want to I'm there. I'm there. 32:24 32 minutes, 24 seconds I'll take I'll take Hi, this is Shom. 32:27 32 minutes, 27 seconds again uh uh I wouldn't uh you know uh draw that kind of a conclusion by one 32:34 32 minutes, 34 seconds quarter's you know result and I think uh if you look at uh even the studied sales 32:42 32 minutes, 42 seconds of Tanish or even otherwise I think it has been a good sales good growth for Caratland specifically among other 32:49 32 minutes, 49 seconds things we have grown to the tune of 22 20% uh which is per say not bad but we also 32:56 32 minutes, 56 seconds had a big you know platform level ship meaning we moved from our legacy ERP to uh you know Oracle fusion that had 33:05 33 minutes, 5 seconds created some degree of operational challenges especially in the month of January and first half of uh February and February month is very critical for 33:14 33 minutes, 14 seconds uh car uh because Valentine is our next big month after Diwali so at some level 33:20 33 minutes, 20 seconds we have not been able to fulfill uh some of the uh you know demand that were coming to So I would say this is a bit 33:28 33 minutes, 28 seconds internal and this is a part and parcel of any big change that happens in in terms of ERP migration and uh and if I 33:37 33 minutes, 37 seconds why am I saying it so confidently because if I look at my December figure or if I look at what we experienced in the month of April uh that suggests that 33:45 33 minutes, 45 seconds this is actually a more of a uh you know yeah so I wouldn't think there is any significant change in customer positions 33:52 33 minutes, 52 seconds for environment and therefore uh kine 34:00 34 minutes um okay clear uh just a quick follow up then the margin profile changing for katen at 8.4% 4% this quarter is also a 34:09 34 minutes, 9 seconds function largely of operating leverage or something else as well. 34:13 34 minutes, 13 seconds Yeah, it is because uh the revenue was one big factor and uh also we have 34:21 34 minutes, 21 seconds continued our investment on our campaigns in order to you know generate 34:28 34 minutes, 28 seconds lot more uh you know awareness among uh customers because we are also presenting 34:35 34 minutes, 35 seconds across 150 plus towns. So uh these would be the two factors but revenue would be the single largest factor for the uh but 34:43 34 minutes, 43 seconds for the year it's almost nearly 10%. Uh so yeah okay all right uh that's it for me. Thank you so much. 34:54 34 minutes, 54 seconds Thank you. 34:56 34 minutes, 56 seconds Our next question comes from the line of Siddhant from Goodwill. Please go ahead. 35:03 35 minutes, 3 seconds Uh first question was about Tanera. What kind of metrics are you targeting till you start opening new stores again like some inventory tone profitability? 35:17 35 minutes, 17 seconds We uh yeah hi this is AA here. I'll take that. Um on Tanera I think we are undergoing some kind of a review of the 35:25 35 minutes, 25 seconds way we are managing the store operating model through a mix of merchandise 35:32 35 minutes, 32 seconds change price points and strengthening the consumer value proposition. 35:38 35 minutes, 38 seconds Uh and therefore the metrics we are looking at is twofold. One is of course same store growth, 35:46 35 minutes, 46 seconds buyer growth. uh and thirdly we'll be looking at the stock turns as well as the sellroughs of product merchandise 35:55 35 minutes, 55 seconds that has been brought in. These are the top level pieces that we are tracking and uh lot of work is underway to kind 36:03 36 minutes, 3 seconds of bring in a lot more buyer growth particularly in the sub 10,000 price 36:09 36 minutes, 9 seconds band category and some of that will start showing up in the next few months. 36:16 36 minutes, 16 seconds Okay, that's that's great to know. Uh about uh the Damas just I wanted to understand a little more about the minority stake. So you know because 36:25 36 minutes, 25 seconds they're converting some Damas to Sanish how does it work for the minority shareholder and what is the acquisition 36:32 36 minutes, 32 seconds plan like for the residual stake in 3 four years whenever it is planned because in case it is very successful he 36:39 36 minutes, 39 seconds might not want to overpay for it or something like that right? 36:44 36 minutes, 44 seconds If it is very successful, we are happy to overpay. Uh but you know, it is about four years uh after that uh that uh 36:53 36 minutes, 53 seconds occasion would come where partners can discuss and transact. Um so so the and 37:01 37 minutes, 1 second the some of the retail conversion which are happening uh in favor of Tanesk in the catchments where Southeast Asian 37:09 37 minutes, 9 seconds customers are dominant. They are they are you know under a franchisee model with Damas. So minority shareholder interest has been completely protected 37:18 37 minutes, 18 seconds and both the partners are in full partnership taking some of these calls for the upliftment of brand equity and 37:26 37 minutes, 26 seconds everything. uh what Damas is expected to do for Arab segment. Yeah, understood. That was good to know. And 37:34 37 minutes, 34 seconds the third question would be would we expect the momentum at K to continue and how's the jet acquisition doing? 37:42 37 minutes, 42 seconds So that has done wonderfully well which is which is ev which which you can see in the full year result I think which we 37:48 37 minutes, 48 seconds have spoken about and te has good uh opportunities folding in uh unfolding 37:55 37 minutes, 55 seconds under various domains and they are a powerhouse of engineering precision manufacturing. A you want to add something? Yeah, I think uh the real 38:04 38 minutes, 4 seconds deal business has some good uh growth uh tailwinds or opportunities sitting in front. A lot of India manufacturing 38:13 38 minutes, 13 seconds coming in lot of investments, aerospace sector, defense, infrastructure, 38:20 38 minutes, 20 seconds electronic chips. So manufacturing itself uh because of partly government le incentives as well as the fact that 38:29 38 minutes, 29 seconds internationally many clients are choosing to have a China plus one strategy. Both of these 38:37 38 minutes, 37 seconds augur very well and uh the automation business as well having a lot of opportunities thanks to a lot more uh 38:46 38 minutes, 46 seconds new sectors also emerging from batteries to EVs to so many other things. 38:53 38 minutes, 53 seconds Wonderful. Thank you so much. Thank you. 39:02 39 minutes, 2 seconds Next question comes from the line of Ashish. 39:08 39 minutes, 8 seconds Uh uh hi uh thank you for the opportunity. So the first question was on the boolean sales uh you know if I look at on a fullear basis the bullion 39:14 39 minutes, 14 seconds sales is uh substantially higher. So one uh is this boolean sales largely because of the you know benefit which we have on 39:22 39 minutes, 22 seconds the custom duty which uh or 1% custom duty. So you're just uh selling that uh gold and if that's true then uh where is 39:30 39 minutes, 30 seconds the profit sitting? Is it sitting within the jewelry bit? 39:34 39 minutes, 34 seconds No, this is more uh inventory management. We have been running gold exchange from a very very successfully. 39:42 39 minutes, 42 seconds You would have seen our campaign around that from quarter three onwards and uh lot of gold we are buying from customers 39:50 39 minutes, 50 seconds you know from their vault and we don't want to hold it for long. So we continuously keeping that and replacing it when we really need that volume. 40:02 40 minutes, 2 seconds there is no 1% angle to this. We we are not getting uh enough quota you know from the government to get that 1% 40:11 40 minutes, 11 seconds thing. So you know it is not at all linked with that and and actually you know there is no in a way profit because it is just uh inventory optimization. 40:21 40 minutes, 21 seconds That's your concern. The second question was on the jewelry EB. Now when I look at uh on the standalone basis on the reported financials the jewelry bit is 40:30 40 minutes, 30 seconds around uh 1,711 crores and when I look at uh you know the the revised disclosure of the TMZ business domestic 40:38 40 minutes, 38 seconds it's around 1,813 crores. So there's a difference of around 10203 crores. Now Mayan uh please help me correct if I'm 40:47 40 minutes, 47 seconds wrong here but this is basically the difference in revenue as well as on the EBIT absolute EBIT is largely because of the primary sales which happened from 40:56 40 minutes, 56 seconds India to international and if if that's true why is there a suddenly a 102 cror loss this quarter versus typically 41:04 41 minutes, 4 seconds having profit because this is mostly gross margins on the primary sales so that you know we I spoke about that 41:11 41 minutes, 11 seconds transfer pricing adjustment of about 80 plus CR that is sitting into the India uh international business that is why 41:20 41 minutes, 20 seconds you are seeing that loss otherwise uh and and this is a new thing as I spoke in the beginning in the sometime during the call that Titan as a parent company 41:30 41 minutes, 30 seconds is ensuring that it's international subsidiaries who are who are doing this jewelry business they are lowrisk distributor and we ensure that they have 41:38 41 minutes, 38 seconds a minimum profit there so that is sitting there sure so maybe I'll uh connect more on is offline and just last question I think 41:46 41 minutes, 46 seconds uh uh on the demand side u uh is one if you can help me understand I think you talked about the grams purchase plan which started two years back so one uh 41:55 41 minutes, 55 seconds when did we started seeing the first uh you know like which quarter did you started seeing the you know uh maybe the redemption of the same because I think 42:02 42 minutes, 2 seconds it's typically a one-year uh phenomena so that's one and second thing is uh this oneq will have uh adikmas as well 42:10 42 minutes, 10 seconds and when I look at historical numbers uh 2018 we saw some uh you know de acceleration in growth because of adik 42:16 42 minutes, 16 seconds mas the next year 2021 because of covid etc is not very clear but uh 2024 we we didn't see any impact uh from a growth 42:25 42 minutes, 25 seconds point of view whatever was the trajectory it kind of continued so from Adikma's point of view um anything to you know look at or do you think that 42:33 42 minutes, 33 seconds you know there are enough you know initiatives the company has taken to mitigate that impact on growth 42:42 42 minutes, 42 seconds okay Thank you for that for the two questions. Uh let me answer the first one first. The redemption for uh the REA 42:51 42 minutes, 51 seconds golden advantage program started from Jan 2025. 42:56 42 minutes, 56 seconds Uh this is at a national level though the program was run at a pilot uh level in Tamil Nadu prior to that. So Jan 25 43:05 43 minutes, 5 seconds was the national uh at a national level is when redemptions began. Uh the second question on Adikmas uh honestly you know 43:14 43 minutes, 14 seconds we haven't really given it too much of thought for me to you know answer that but uh see there is a lot of seasonality 43:22 43 minutes, 22 seconds in jewelry purchase. Uh there are months which are auspicious months which are not auspicious. So it pretty much is part of an operating rhythm that we 43:31 43 minutes, 31 seconds have. So really we don't uh you know worry too much about uh uh too much 43:38 43 minutes, 38 seconds about this. Sure sir. Uh thank you and all the best. Thank you so much. 43:46 43 minutes, 46 seconds Thank you. 43:48 43 minutes, 48 seconds Our next question come from the line of Ali Agar Shakir from Otraal Mutual Front. Please go ahead. 43:54 43 minutes, 54 seconds Yeah, thanks a lot for the opportunity sir. Uh so just have one question on the margin. So u you know we've uh seen margin slightly coming down obviously 44:02 44 minutes, 2 seconds because of the prices going up and you know you also have to offer promotions discounts to the customer. Now as you 44:09 44 minutes, 9 seconds mentioned that Q1 Q2 you know prices will be high but beyond that if prices remain at the current level uh would we 44:17 44 minutes, 17 seconds expect the discounts promotions to now start coming down and therefore in a flattish gold price environment your margins could be better. 44:31 44 minutes, 31 seconds Uh you see our reference was more from the growth point of view that quarter 1 quarter two may have a tailwind of 44:40 44 minutes, 40 seconds differential gold rate compared to last year quarter 1 to this quarter 1 and quarter 3 quarter four might be much 44:47 44 minutes, 47 seconds more closer if gold prices doesn't go further up but you know if at all they go further up then again something may 44:54 44 minutes, 54 seconds happen. So it was more from the growth point of view than the margin point of view you know our our response that and I think the margin pressures are more 45:03 45 minutes, 3 seconds coming from the product mix aspect not as much as the discount which which happens you know which we have 45:10 45 minutes, 10 seconds activations and I don't think we have kind of doubled down on that in a very very big manner exchange program of course 45:18 45 minutes, 18 seconds exchange program does have a investment and which is kind of helping us a lot in growth in ing buyers and all those 45:26 45 minutes, 26 seconds stuff. So we are quite comfortable in continuing with that. Okay. 45:31 45 minutes, 31 seconds uh but uh just uh to you know I mean further uh you know persist on this point that if at all the gold prices 45:38 45 minutes, 38 seconds remain stable do you think uh there is any possibility of improvement either from the point of view of also makes or maybe whatever activation we may be 45:47 45 minutes, 47 seconds doing to you know increase customer intensity sustainability of margin would become far easier if if gold rate 45:55 45 minutes, 55 seconds remains where it is and then we will see whether there is opportunity to improve what but sustainability would certainly become far easier. 46:05 46 minutes, 5 seconds Got it. Okay. Thank you very much. Very useful. 46:10 46 minutes, 10 seconds Thank you. Our next question come from the line of pages from a spark institutional equities. Please go ahead. 46:18 46 minutes, 18 seconds Yeah. Uh hi, thanks for the opportunity sir. Uh so just wanted to know based on the current trends and data available uh what would be assessment our assessment 46:27 46 minutes, 27 seconds of the market share uh moment this year in in jewelry. Okay. Uh thank you for that uh question. 46:37 46 minutes, 37 seconds Our sense is that perhaps we have gained about 50 to 60 bips is our sense uh on FI26 versus FI25. 46:47 46 minutes, 47 seconds Perfect. The second uh if we have to look uh the opportunity here in jewelry from uh consumer wallet share 46:54 46 minutes, 54 seconds perspective uh based on my rough calculation we would have added uh the sector would have added roughly four lakh cr kind of uh size in last four 47:03 47 minutes, 3 seconds five years. Uh so which is which is sizable if we compare with many other discretionary categories. So how should 47:10 47 minutes, 10 seconds we think about this number or or the denominator is not only consumption basket but it is dipping into investment basket of the consumer as well and hence 47:18 47 minutes, 18 seconds uh perhaps looking from consumer lens could be not the right way or the only way to work. I just just wanted your perspective. 47:27 47 minutes, 27 seconds I think it's a bit of a complex question. Better to you know discuss it in person when we are meeting just few weeks from now. 47:36 47 minutes, 36 seconds Honest answer. If you get to answer that over a call but there are multiple customers, multiple needs traits. The whole investment buying has really you 47:45 47 minutes, 45 seconds know peaked in the last few years. that may not have been in the case between 2012 and 2019 when gold was very stable. 47:54 47 minutes, 54 seconds So uh yeah so we'll have to look at it by need state and maybe good to catch up 48:00 48 minutes in person perhaps or do it investor few weeks from now and then park it for them. Thanks for the break. 48:11 48 minutes, 11 seconds Thank you. 48:13 48 minutes, 13 seconds Our next question comes from the line of question from an individual investor. Please go ahead. 48:23 48 minutes, 23 seconds Actually we wanted to understand that given the sharp increase in gold prices of the gold. Can you paint a picture of 48:30 48 minutes, 30 seconds how the demand trends progress across January March? 48:41 48 minutes, 41 seconds I think gold price uh increase has actually um created more interest in the category 48:48 48 minutes, 48 seconds is my sense. This is Ajay Shaza and it's not just for investment demand but even for jewelry demand 48:57 48 minutes, 57 seconds gold as well as studded I think Arun shared that how um people have requirements for wedding people have requirements for adornment. I think the 49:05 49 minutes, 5 seconds interest in the precious jewelry category has got heightened with the high gold prices 49:13 49 minutes, 13 seconds and across segments young, old, modern, traditional. 49:28 49 minutes, 28 seconds Mr. Sa, are you done with your question? Yeah, I guess. No, yeah, yes. Thank you. 49:37 49 minutes, 37 seconds Thank you. 49:39 49 minutes, 39 seconds The next question comes from the line of Dwan Shivansil from Ant Global. Please go ahead. 49:47 49 minutes, 47 seconds Sir, hi uh thanks for the follow-up opportunity. Uh sir, I wanted to check on uh this new gemstone based uh uh view 49:55 49 minutes, 55 seconds collection that we have launched. Uh what is the uh strategic rationing behind this launch? uh is it also an attempt uh to address the current 50:04 50 minutes, 4 seconds challenges at entry-level price points uh or is it to address a relatively slower growth in the studed segment um 50:12 50 minutes, 12 seconds and second sub question is how is the margin profile for this line of GB uh within line with the studed uh G 50:21 50 minutes, 21 seconds okay thank you thank you for that question and also thank you for noting this new development from our side it's 50:28 50 minutes, 28 seconds an effort to uh grow the category Uh so far the category has been seen through the lens of coins, gold jewelry and 50:36 50 minutes, 36 seconds studded jewelry. We are adding a new dimension to it uh of natural gemstones with uh gold uh and therefore create 50:44 50 minutes, 44 seconds attempting to create another engine of growth for us. uh there are you know the category is a very very uh uh let's say 50:52 50 minutes, 52 seconds the category is penetration for gold is extremely high in India and we are seeing that over the last few years the 51:00 51 minutes design seeker in the category is growing by leaps and bounds uh in addition to the value seeker who's there to get you know the best value for their 51:09 51 minutes, 9 seconds hard-earned money and the design seeker in the category is looking for new expressions uh in gold jewelry and we 51:17 51 minutes, 17 seconds are adding a dimension to it by adding natural gemstones. And natural gemstones is a completely different world where 51:25 51 minutes, 25 seconds there are multiple types of natural gemstones from different parts of the world which can be uh embellished in 51:32 51 minutes, 32 seconds gold to create a whole new uh whole new range of jewelry. So that's what we are aiming to do with this. Hughes is just 51:40 51 minutes, 40 seconds the first uh first uh attempt or first uh collection and there'll be many more 51:47 51 minutes, 47 seconds coming up uh in this. So the you know we're not approaching it from a margin standpoint or from any other standpoint 51:55 51 minutes, 55 seconds but we're only approaching it from creating uh a new dimension and ensuring that uh the category in which we operate stays exciting. 52:06 52 minutes, 6 seconds Understood. It's a small followup if you could highlight the uh price range for this collection. I in it at entry- level 52:13 52 minutes, 13 seconds price points or more towards the premium price points. 52:17 52 minutes, 17 seconds Yeah, we have about 200 uh styles 50% of which is between about 40,000 and 2 and a half lakhs. 52:26 52 minutes, 26 seconds Okay. So, this may help us about 10 lakhs. That's the overall uh range. 52:33 52 minutes, 33 seconds Understood. So this may help us uh uh sort of address the challenges that we have been seeing at entry level price points as well and 52:41 52 minutes, 41 seconds uh it is seeming to do that as well and a lot of the yeah it is seeming to do that as well. So very wearable jewelry 52:50 52 minutes, 50 seconds jewelry that you can wear every day. So it's not stuff that you buy and keep uh you know keep it in the locker and 52:57 52 minutes, 57 seconds that's also the direction in which we are moving to have a greater uh part of the excitement also in variable daily 53:06 53 minutes, 6 seconds children. So it's it's it's certainly helping in that that got it sir. Uh thanks for the opportunity. 53:17 53 minutes, 17 seconds Thank you. 53:19 53 minutes, 19 seconds Our next question come from the line of Priyanka Dengra from SBA mutual fund. 53:23 53 minutes, 23 seconds Please go ahead. Amaz um so I just wanted to understand uh from the IK business perspective there were 20 53:32 53 minutes, 32 seconds stores which were uh net closed in the quarter and uh of course the epic margin is also from a y basis a little 53:40 53 minutes, 40 seconds suppressed so I'm just trying to understand that despite the premiumization and the store optimization that we are doing why are 53:48 53 minutes, 48 seconds the edit margins uh going down and what are the plans to further improve this category Thank you Priyanka. This is Ragavan Kir. 53:59 53 minutes, 59 seconds So the store closures is a part of revamping the look and feel of our network. So this is a journey which we 54:07 54 minutes, 7 seconds undertook for the past one and a half years and there is a reason you'll see almost 32 store closures and the net 54:14 54 minutes, 14 seconds being at 20. So that is to enhance the overall appeal. In terms of the EBIT, I think uh our focus is on growing the 54:24 54 minutes, 24 seconds topline revenue and if you look at the revenue growth now we are clocking almost 16 to 17% growth. However, this 54:31 54 minutes, 31 seconds was also supported by uh increased marketing spends and also we had a one-off uh inventory recall where we 54:40 54 minutes, 40 seconds recalled certain stocks which we believe were slow movers. So these are the reasons for that. 54:48 54 minutes, 48 seconds Okay, got it sir. The second question I wanted to ask was about Beyond the LGB uh platform. I understand that at this point of time maybe sharing separate 54:56 54 minutes, 56 seconds numbers will may not be possible but how was the uh let's say the Valentine's period sale for Beyond and do you see 55:04 55 minutes, 4 seconds kind of parity between uh Caroline or let's say Mia versus Beyond? Do you think that the footfalls are increasing? 55:12 55 minutes, 12 seconds If you could give us some color around uh Beyond. 55:16 55 minutes, 16 seconds Sure. Thank you for this question on beyond. Uh it's just one store so you know it would be incorrect to extrapolate on a sample size of one but 55:24 55 minutes, 24 seconds we have seen good uh good traction even in beyond during the Valentine's uh period this year. So nothing that we are 55:33 55 minutes, 33 seconds seeing which is very different from what uh we are seeing in natural uh uh diamonds but uh do allow us to open few 55:42 55 minutes, 42 seconds more stores and uh have more data points to you know to answer that with uh more rigor. 55:49 55 minutes, 49 seconds Sure. Thank you so much. 55:54 55 minutes, 54 seconds Thank you. As there are no further question from the participant I would like to hand the conference over to Mrs. 55:59 55 minutes, 59 seconds Shaola for closing comments. Thank you and over to you sir. 56:04 56 minutes, 4 seconds Thank you. Thank you everyone once again for uh a very engaging and uh interesting conversation. Thanks for all 56:12 56 minutes, 12 seconds your questions. They make us think and look forward to seeing you soon in the next few weeks. Till then take care. 56:20 56 minutes, 20 seconds Bye. Have a good Friday and a weekend. 56:23 56 minutes, 23 seconds Thank you so much sir. Ladies and gentlemen, on behalf of Titan Company Limited, that concludes this conference. 56:31 56 minutes, 31 seconds Thank you for joining and have a good day.