Vedant Fashions Ltd — Q4 FY26

Vedant Fashions Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Wx5W7gmz4p8 Published: 2 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Vidan Fashions Limited Q4 FI26 earnings conference call hosted by 0:10 10 seconds Amen Spark. As a reminder, all participant lines will be in the listen only mode and there'll be an opportunity for you to ask questions after the 0:18 18 seconds presentation concludes. Shiron assistance during this conference call, please signal an operator by pressing star and zero on your touchstone phone. 0:28 28 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Tjas Sha from Amendas Park. Thank you and over to you sir. 0:40 40 seconds Thanks Nero. Uh hello everyone. On behalf of Aenda Spark I would like to welcome you all to Vidant Fashion Fi 26 0:48 48 seconds earnings conference call from the management. Today we have with us Mr. 0:52 52 seconds Vidant Modi Chief Revenue Officer and Mr. Rahul Maraka, chief financial officer. Uh thank you and over to the management for opening remarks. 1:02 1 minute, 2 seconds Good afternoon, namaskar and a warm welcome to all the participants. I am Vinant Modi, the chief revenue officer of the company. Thank you for joining us 1:10 1 minute, 10 seconds today to discuss Vidant Fashions Limited quarter 4 and financial year 26 results. 1:16 1 minute, 16 seconds I hope you've got an opportunity to go through our financial results and investor presentation which have been uploaded on the stock exchange as well as the company's website. 1:25 1 minute, 25 seconds Van Fashions is India's leading wedding and celebration wear company. During the fourth quarter of FI26, retail sales 1:32 1 minute, 32 seconds that is the sale of our customers stood at approximately 561 crores reflecting a growth of 7.8% 1:40 1 minute, 40 seconds over Q4 FI25 with SSG of approximately 4.6%. 1:46 1 minute, 46 seconds FI26 marked an important milestone for the company as retail sales of our customers crossed the 2,000 cr 1:54 1 minute, 54 seconds reaching 2008 crores and reflecting a growth of 6.1% over FI25. 2:01 2 minutes, 1 second Our strategic focus on enhancing customer experience, retail training, datadriven merchandising and replenishment, omni channel integration 2:09 2 minutes, 9 seconds and disciplined KPI management drove a same store sales growth of approximately 2.7% for the full year. We are pleased 2:17 2 minutes, 17 seconds to report that our retail KPIs have improved in a healthy and sustainable manner both for the quarter and on annual basis. 2:26 2 minutes, 26 seconds Consistent with our stated priorities, our focus this year has been on strengthening the quality of retail as foundation for sustained lockdown 2:33 2 minutes, 33 seconds growth. Reflecting this philosophy and in the context of prevailing market conditions and an evolving retail 2:40 2 minutes, 40 seconds landscape, we adopted a focused and disciplined approach to network expansion, prioritizing strategic sustainable store 2:48 2 minutes, 48 seconds openings. During the year, we selectively added new stores while also rationalizing underperforming locations, resulting in a net addition of about 4,200 ft² to our retail area. 3:00 3 minutes We also successfully expanded our TAM brand through a new EBO during the financial year. As of March 2026, Van 3:08 3 minutes, 8 seconds Fashion's EBO network stands at, excuse me, Van Fashion's EBO network stands at about 1.79 million square ft, 3:17 3 minutes, 17 seconds spanning across 669 stores in 252 cities and towns globally. 3:23 3 minutes, 23 seconds Across the quarter and throughout the year, we executed a powerful and wide-ranging marketing initiatives, spanning multiple brands and channels, 3:32 3 minutes, 32 seconds seamlessly integrating digital and traditional platforms to elevate brand visibility, sharpen positioning, and 3:39 3 minutes, 39 seconds foster deeper consumer engagement. Our efforts encompass celebrity fronted campaigns, a podcast and lifestyle 3:47 3 minutes, 47 seconds series offering wedding planning guidance featuring real couples and celebrity guests. category specific campaigns, social media activations, new 3:55 3 minutes, 55 seconds wedding collection unveilings, festive and occasiond driven outreach, instore events and influencer partnerships. All 4:03 4 minutes, 3 seconds working in concert to reinforce brand equity and strengthen our connection with consumers. 4:09 4 minutes, 9 seconds A defining highlight of a marketing calendar was the launch of the landmark made for each other campaign featuring Rashmika Vanana and Vijay Devraonda. 4:18 4 minutes, 18 seconds Conceptualized as a high energy musical romcom by celebrity composer Amit Ridi, the campaign beautifully captures the 4:26 4 minutes, 26 seconds couple's playful dynamic around wedding attire, celebrating how their differences make them perfectly matched 4:34 4 minutes, 34 seconds a narrative that mirrors the modern stylish fusion embodied by Moheay and Mandy. The campaign resonated powerfully 4:42 4 minutes, 42 seconds with audiences, surpassing 1 billion plus views and becoming the most liked organic branded collaboration on 4:48 4 minutes, 48 seconds Instagram in India, generating more than 11 million likes. 4:54 4 minutes, 54 seconds A testament to the strength and cultural relevance of our brands. This was also one of the fastest campaign turnarounds that we've ever done from receiving the 5:02 5 minutes, 2 seconds confirmation from the celebrities to production in just 6 days. 5:07 5 minutes, 7 seconds We further deepened our consumer connect during the year through the launch of the Maver Shadhi show a 6 episode YouTube podcast hosted hosted by 5:15 5 minutes, 15 seconds renowned celebrity Karan Johar. The show brought together multiple personalities including Kiti Kharbandha Pulkit Samraat 5:23 5 minutes, 23 seconds the moan sisters Vishal Punjabi alongside many industry experts. The idea was to explore modern Indian 5:30 5 minutes, 30 seconds wedding planning through humor, candid conversations and expert insights. 5:35 5 minutes, 35 seconds Spanning themes from wedding fashion and styling to photography and evolving consumer expectations, the show garnered strong viewership and an overwhelmingly 5:44 5 minutes, 44 seconds positive audience response, further strengthening brand equity and deepening our connect with the modern Indian wedding consumer. 5:51 5 minutes, 51 seconds Adding to this momentum, our manuver social media campaign featuring cricketer Ringu Singh amplified brand 5:59 5 minutes, 59 seconds visibility and engagement across platforms complemented by the successful launch of Arana collection. 6:06 6 minutes, 6 seconds Our brand building momentum extended confidently across a wider portfolio as well. Mohei deepens its cultural res 6:13 6 minutes, 13 seconds resonance through Mohango campaign while Tuame advanced its truly you proposition through fresh collection launches 6:21 6 minutes, 21 seconds influencerdriven narratives and curated experiential activations. 6:26 6 minutes, 26 seconds Mayaz reinforced its positioning through the celebration begin with Mayas campaign keeping the brand firmly anchored in its core wedding and 6:34 6 minutes, 34 seconds occasion identity. Divas executed sharp targeted digital and social media initiatives during the key festive 6:41 6 minutes, 41 seconds windows broadening reach and driving meaningful engagement across marketplaces. 6:47 6 minutes, 47 seconds Collectively, these initiatives have significantly strengthened our brand presence and deepened consumer engagement across our entire portfolio. 6:55 6 minutes, 55 seconds As we look ahead, we remain confident in the strength of our business and firmly committed to our core strengths of brand equity, operational efficiency, and 7:04 7 minutes, 4 seconds customer experience. A robust toe network, relevant inventory and designs, multi-dimensional marketing initiatives, 7:11 7 minutes, 11 seconds efficient auto replenishment systems, all anchored by a strong back-end infrastructure position well for long sustainable growth and value creation 7:20 7 minutes, 20 seconds for all our stakeholders. This confidence is further reinforced by our strong structural modes a resilient 7:27 7 minutes, 27 seconds business model a disciplined approach overall giving us significant advantage of crossbrand leverage across our portfolio with this I will now hand it over to Mr. 7:38 7 minutes, 38 seconds Rahul Muraka to take you through the financial performance of the company. Thank you. 7:42 7 minutes, 42 seconds Thank you Vant. Namaskar and good afternoon everyone. I would like to highlight the key financial performance matrices for the fourth quarter and full financial year ended 31st March 2026. 7:54 7 minutes, 54 seconds Starting from Q4 FI26 performance update revenue from operation during the quarter was around 399 cr with a growth 8:02 8 minutes, 2 seconds of 8.7% over Q4 of FI25. 8:06 8 minutes, 6 seconds The company continued to report industryleading gross margin of 65% and healthy evita margin of 45.6%. 8:13 8 minutes, 13 seconds The company also reported strong pat margin of around 28.6% and a profit after tax stood at around 8:20 8 minutes, 20 seconds 114 cr with a growth of around 13% over Q4 of FI25. 8:26 8 minutes, 26 seconds Moreover, sale of our customer during the quarter was around 561 cr with a growth of 7.8% while FSD grew by 4.6% 6% over Q4 of FI25. 8:37 8 minutes, 37 seconds Now coming to full financial year FI26 performance update. The company reported revenue from operation of around 1,436 cr with a growth of around 3.5%. 8:49 8 minutes, 49 seconds The company continued to report industry rating gross margin of around 65.7%. 8:54 8 minutes, 54 seconds Along with healthy AITA margin of around 44.3%. 8:58 8 minutes, 58 seconds The AITA during the period stood at around 636 cr. 9:02 9 minutes, 2 seconds The company also reported healthy profit margin of 26.2%. 9:06 9 minutes, 6 seconds And the profit after tax stood at around 376 cr. 9:11 9 minutes, 11 seconds Moreover, during FI26, the company reported strong cash conversion ratio of approed 9:18 9 minutes, 18 seconds based upon operating cash flow to PAT excluding finance income. 9:22 9 minutes, 22 seconds Sale of our customer during the year was 2008 cr with a growth of around 6.1% 9:29 9 minutes, 29 seconds while SSG during FI26 drew by 2.7% over FI25. 9:35 9 minutes, 35 seconds As we look ahead we remain firmly committed to our core strengths brand equity operational efficiency and customer experience supported by a range 9:44 9 minutes, 44 seconds of strategic initiatives designed to drive sustainable and long-term value creation for all our stakeholders. Now we can move to the Q&A session. 9:55 9 minutes, 55 seconds Thank you very much. We'll now begin with the question and answer session. 10:00 10 minutes Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press R and two. 10:10 10 minutes, 10 seconds Participants are requested to use handsets while asking the question. 10:14 10 minutes, 14 seconds Ladies and gentlemen, you will wait for a moment while the question Q assembles. 10:21 10 minutes, 21 seconds Participants you may press star and one to ask a question. 10:34 10 minutes, 34 seconds The first question is from the line of Rahul Aarwal from EKI asset managers. Please go ahead. 10:39 10 minutes, 39 seconds Yeah. Hi. Uh very good evening. Thank you for the opportunity. Three quick questions. 10:44 10 minutes, 44 seconds Uh firstly on the on your outlook vanton how do you see the SSG you know continuing the momentum going into next 10:52 10 minutes, 52 seconds uh year fiscal 27 and the new store openings if you could just comment on that you know how are you thinking you know what's the plan ahead second 11:00 11 minutes question was on input inflation uh just wanted to know your thoughts in terms of you know how are we booked on fabric and other input materials uh for the 11:08 11 minutes, 8 seconds festival season going forward how should we look at gross margins apart from the mix and GST I understand that's going to be a a favorable thing going forward uh 11:17 11 minutes, 17 seconds in terms of base. Uh but just incrementally just on from a input cost inflation perspective it will just guide us on gross margins and operating 11:24 11 minutes, 24 seconds margins. Guidance as in not like looking at specific numbers just directionally how does the company deal with it. And 11:31 11 minutes, 31 seconds third was on the on the gap between the retail sales and net sales. I see the gap is increasing on a fullear basis. 11:39 11 minutes, 39 seconds This 26 over 25 this number is almost gone up to 29%. Uh just wanted to know what is changing here. So these are my three questions. Thank you. 11:49 11 minutes, 49 seconds Sure. I think you've covered majority of the questions for the entire earnings call. Uh but thank you for those. So 11:55 11 minutes, 55 seconds starting off with SSG u as a company I think we are very optimistic and we always remain very optimistic. Uh so our 12:03 12 minutes, 3 seconds goal is to work on everything that we can internally uh starting from uh working on footfalls by continuing to 12:12 12 minutes, 12 seconds make campaign similar to the ones we made with made for each other working on improving our conversion rate through multiple tech initiatives we've actually 12:20 12 minutes, 20 seconds taken on the ground level. uh one thing which you know I would like to reflect on is that due to the kind of pressure we were feeling in the last 2 years uh 12:29 12 minutes, 29 seconds our ASPs have not moved as quickly as they've typically moved in the past so this is one thing which we will be 12:36 12 minutes, 36 seconds changing as we move ahead and focusing on improving our ASPs that would also help us improve SSGS uh and finally 12:44 12 minutes, 44 seconds continuous investment in terms of training to improve our average basket size so while I can't give you a particular guidance on what SSG do we 12:53 12 minutes, 53 seconds aim to achieve for the next financial year. Uh what I can tell you is that anything and everything which we should be doing as a company to achieve better 13:02 13 minutes, 2 seconds SSG numbers is something which we are targeting from a business development point of view with regards to new store openings. U 13:10 13 minutes, 10 seconds the period we are uh currently in the cycle of the company we feel the main goal for us right now is to focus on SSG 13:18 13 minutes, 18 seconds which is what we have been doing. So while gross openings will remain stable in the next financial years and we continue to we will continue to open 13:27 13 minutes, 27 seconds decent number of stores uh some level of consolidation will remain. Uh so one thing which I would like to emphasize on 13:35 13 minutes, 35 seconds is the quality of new stores that we open will be much better than the quality of the stores that we will close. So net net the quality of retail 13:43 13 minutes, 43 seconds should actually improve quite a lot. So this is broadly what I would like to speak on in terms of SSG and business development and there are also a lot of 13:52 13 minutes, 52 seconds plans in terms of further improving our business when it comes to our other channels such as uh multibrand outlets 13:59 13 minutes, 59 seconds through the SIS format and also working extra hard on our online segments especially with divas now starting to scale up there. 14:08 14 minutes, 8 seconds Uh moving to your second point which was on you know the the cost and the uh how are we looking at you know the cost inflation majorly on account of the war. 14:18 14 minutes, 18 seconds Uh typically fabric is a very large part of cogs for most companies. In our case one 14:26 14 minutes, 26 seconds good thing is that fabrics as a component is not a very large part of our overall cogs. So I give you an 14:34 14 minutes, 34 seconds example a product of 100 rupees MRP fabric will typically be 8 to 10 rupees 14:40 14 minutes, 40 seconds uh of the overall cost. Uh so in our case we do anticipate about 50 to 150 14:48 14 minutes, 48 seconds basis point increase uh in the total uh you know sort of this number which is let's say on a 100 rupee product we can 14:54 14 minutes, 54 seconds see a uh impact of 1 to 1 and a half rupees on the cost but I think with time we will be able to manage this uh pretty well. 15:05 15 minutes, 5 seconds Finally I would let Rahul G take the question on retail sales versus net sales. 15:10 15 minutes, 10 seconds Sure thank you Vidal. So typically you know as we have been mentioning that this this year after revised GST rules 15:17 15 minutes, 17 seconds were rates were rolled out in September 25 that has affected our se sales and pad both including the gross margins. So 15:24 15 minutes, 24 seconds the difference which we are looking at between the primary sales and the secondary sales 71% and 73%. It is 15:32 15 minutes, 32 seconds majorly on account of the GST aspect which we understand will get normalized to a great extent from the upcoming financial year. 15:42 15 minutes, 42 seconds Got it. So basically that means the gap will go back again to like 25 uh 26 26 and a half% right that that was the past average. 15:51 15 minutes, 51 seconds No. So basically uh look I mean the right way to look at it is that how much is my growth in primary and 15:58 15 minutes, 58 seconds secondary generally in all financial year you'll see that it was moving in the same direction but this year there's 16:05 16 minutes, 5 seconds a gap of 2 to 3% 2 and a half 3%. It is mainly because of GST only. The margin aspect which you are mentioning it is 16:13 16 minutes, 13 seconds combination of our two modules. One is 18% and 29.5% from GST. So it all depends upon you know which which store 16:20 16 minutes, 20 seconds we are opening how at what percentage and majorly it is 18% store we are opening at 29.5% also. So that does not 16:28 16 minutes, 28 seconds play a big role. It is important that the GST aspect which I mentioned that is the main reason why we see a difference which should get normalized on upcoming 16:37 16 minutes, 37 seconds financial year. So I'll just add on to that. So basically what happens is consumer sales minus the GST component and the franchisee margin is our 16:45 16 minutes, 45 seconds reported revenue. Now the average preg GST change was approximately 10% was our 16:52 16 minutes, 52 seconds blended GST which has now increased slightly and hence this difference is here to stay now between the two numbers 17:01 17 minutes, 1 second at a at a decent level but the growth levels will now start to uh follow the same trend is what Rahul G is trying to say. 17:09 17 minutes, 9 seconds Got it Very clear. Thank you so much. 17:11 17 minutes, 11 seconds I'll I have more questions. I'll get back in the queue. Thank you. All the best. Thank you. 17:16 17 minutes, 16 seconds Thank you participants. You may press star and want to ask a question. Next question is from the line of Rishi Modi from RDM Advisory. Please go ahead. 17:27 17 minutes, 27 seconds Yeah. Hi Van, can you hear me? Hi. Yes. 17:32 17 minutes, 32 seconds Yeah. So a few questions from my end. Um just uh continuing on the store addition piece for the coming year, right? U 17:40 17 minutes, 40 seconds should we expect the net addition growth to be similar as this year? And secondly, the inventory quality or the 17:49 17 minutes, 49 seconds inventory ASP in the new stores, is it uh higher than the company average today? 17:59 17 minutes, 59 seconds Sure. So to answer your first question, the way I would say is that we will see net openings happening in the in the coming in the new financial year. 18:09 18 minutes, 9 seconds However, majority of our growth will stem from SSG. Uh, you know, that is the kind of stance we've taken as a company 18:16 18 minutes, 16 seconds that we want to focus on improving the quality of retail and really focusing on driving much higher throughputs. Uh, even though at a gross level, we will 18:25 18 minutes, 25 seconds have a lot of openings happening in important parts of India where we currently don't have a store. Uh, we do feel that from a net perspective, next 18:34 18 minutes, 34 seconds financial year is when things will get a lot better. 18:38 18 minutes, 38 seconds to your to answer your second question there is definitely a slight advantage when it comes to our newer stores. Uh there are ESPs on average are better. 18:48 18 minutes, 48 seconds This is also because uh the kind of stores that we are opening now are slightly larger allowing us to carry moh. 18:59 18 minutes, 59 seconds So there are many nuances that comes to this answer but yes on average a new store has a much better ESP. 19:07 19 minutes, 7 seconds Okay. And the willingness for franchises to invest in the coming year is also there given the lack of wedding dates in the coming year. 19:16 19 minutes, 16 seconds Uh Rishi honestly to be honest there is no challenge in terms of wedding dates. 19:21 19 minutes, 21 seconds If you ask me if uh when we analyze the entire financial year, May as a month carries adek mas. So May will be 19:28 19 minutes, 28 seconds slightly impacted but hopefully June should take care of that because July has wedding dates uh versus last year not having any wedding dates in July. 19:38 19 minutes, 38 seconds From all right the from second half perspective uh last year had a early navatri. So we had Navatri in September uh which is 19:47 19 minutes, 47 seconds typically very good for us and this year is normalized with Navatri now happening in October. So these are the two big differences but at a cold level there 19:55 19 minutes, 55 seconds are not any large wedding date uh challenges that I would you know say uh from a franchisee perspective to be very 20:02 20 minutes, 2 seconds honest the way our company functions is that we are the ones that sign majority of the stores. So there has not been a single case where we've signed before 20:11 20 minutes, 11 seconds and faced an issue with franchises. So that is something which does not exist at all. Uh the challenge fully lies in 20:18 20 minutes, 18 seconds the current real estate market where rentals are so high that we want to actually sign stores that we are 20:25 20 minutes, 25 seconds confident we can sustain for the next 12 to 15 years at the rental levels we are signing them on. So that's the big challenge u and not at all anything like 20:34 20 minutes, 34 seconds to uh you know around franchisee partners. 20:38 20 minutes, 38 seconds Okay. All right. Got it. Um secondly on the marketing piece right um we've tried all three um types of marketing in this 20:47 20 minutes, 47 seconds quarter especially right you've got the influencer marketing you've got the YouTube series and then we've gone kind 20:55 20 minutes, 55 seconds of back to the traditional way of us doing our marketing with say movie stars and 21:02 21 minutes, 2 seconds a slightly festive way of doing it on the more um generic platforms what would you say has 21:11 21 minutes, 11 seconds uh contributed to the SSP and is there something that we planning for the next year basis this observation? 21:20 21 minutes, 20 seconds So this is a very difficult question to answer uh because in our case every time we've run marketing mix modeling we've 21:27 21 minutes, 27 seconds gotten very uh funny answers uh so to say. So the way I would break it down is that 21:34 21 minutes, 34 seconds something like campaign like Vijay Rashmika helps us for the next five to six years similar to the Virat Tanasha 21:42 21 minutes, 42 seconds campaign we did uh in 2017. So these are those big milestone campaigns that keep us on top of mind of any consumer that 21:50 21 minutes, 50 seconds could potentially come in our TG in the next two to three years. So these campaigns should continuously happen in a period of every year or two years from 21:59 21 minutes, 59 seconds a the wedding podcast which we did with Karan Johar. The idea behind that was that today 22:08 22 minutes, 8 seconds all modern wedding couples do a lot of research online. So how can we be a central part of that? So the goal was 22:16 22 minutes, 16 seconds that people who don't really have great way of researching about how to do a wedding can actually watch our podcast to get this information and this also 22:24 22 minutes, 24 seconds keeps man top of uh their mind. Finally, you know, we do a lot of influencers etc. But one thing I I would say that we 22:32 22 minutes, 32 seconds invest a lot now on is is the search keywords because anyone in market is typically searching for a Shiran or searching for an Indo western. So that 22:40 22 minutes, 40 seconds is also one place where we spend heavily. So it's a mix of everything that keeps us top of mind and helps us drive people to the stores. 22:51 22 minutes, 51 seconds Okay. Um final just quick question. 22:54 22 minutes, 54 seconds Divas any plans of adding physical stores? 22:59 22 minutes, 59 seconds Sorry for divas adding physical. 23:02 23 minutes, 2 seconds Ah so as regarding this uh you know I think currently for this financial year we are not planning to do anything. 23:10 23 minutes, 10 seconds Maybe we do a pilot uh just to just to have concept ready internally but there are no plans of opening these properly 23:18 23 minutes, 18 seconds as of now but what we are going to pilot is uh ka stores but under the mandar brand so this is something which we are 23:25 23 minutes, 25 seconds actively working on where uh there are a lot of opportunities in let's say uh high throughput neighborhoods of Bangalore where we want to open a 1,000 23:34 23 minutes, 34 seconds ft² maneuver store but we want to do it in a slightly differentiated manner where we primarily keep kortas and jackets as categories. So this is 23:42 23 minutes, 42 seconds something which we're actively working on right now and these will be um say associated with some sort of a quick commerce like I 23:51 23 minutes, 51 seconds don't know Zillow or something like I don't know how that model works but I'm assuming unfortunately works well for this 23:59 23 minutes, 59 seconds unfortunately no quick commerce companies are willing to use our stores inventory so typically be it a Zillow or 24:06 24 minutes, 6 seconds a Blinket everyone wants to keep Mande products in their own warehouse. Um so that is the model that all of these work 24:13 24 minutes, 13 seconds in today. If we do someday decide then we will have to launch our own uh quick commerce service on our website or make 24:22 24 minutes, 22 seconds an app out of it to enable all our stores to act as dark hubs as well. 24:28 24 minutes, 28 seconds Okay. All right. Fine. Yeah. That's it from my end for the time being. Thank you. Thank you. 24:34 24 minutes, 34 seconds Thank you. Next question is from the line of Gorov Jagani from GM Financial. Please go ahead. 24:41 24 minutes, 41 seconds Uh thank you for taking my question. Uh well my first question is with regards to the uh the revenue. Sorry we are not able to hear a Hello. Am I audible now? Hans. 24:52 24 minutes, 52 seconds Yeah. Hello. Yeah we can hear you. 24:56 24 minutes, 56 seconds Yeah. So uh so my first question is with regards to the the revenue growth for the quarter know despite Jan being a non-wedding month still you know we were 25:05 25 minutes, 5 seconds able to uh report an 8% kind of a growth. So just wanted to know uh you know what led to this how progressively 25:12 25 minutes, 12 seconds uh the growth has come by and is it still sustaining. Uh so that is the first question. 25:19 25 minutes, 19 seconds Thank you for the question. So if I speak about the quarter majority of the quarter growth actually came from March itself. Uh which which actually was a 25:28 25 minutes, 28 seconds tremendous month for us. And um u you know overall we saw that footballs had improved pretty decently and this also 25:37 25 minutes, 37 seconds gave us a lot of excitement for the upcoming financial year. Um and overall April has also been decent um as a 25:44 25 minutes, 44 seconds followup to March. Uh but what is interesting now to see is how would May work for us given that there is Adik 25:51 25 minutes, 51 seconds Mas. Uh but June should again then be exciting given weddings in July. So that is how we are looking at things. Overall I think consumer sentiments were turning 26:00 26 minutes to be positive as the quarter progressed. Uh but given that the war started in the later parts of uh end of 26:08 26 minutes, 8 seconds Feb early March that's when I feel that consumer sentiments not to a large extent but then again became sort of neutral. Uh so we'll have to see how 26:17 26 minutes, 17 seconds these things pan out and uh if things continue to be the way they are we could potentially have decent green shoots in the upcoming financial year. 26:27 26 minutes, 27 seconds Uh okay sure and just on the you know the multiple campaigns and the uh the multiple initiatives that you have taken not only uh towards rationalizing the 26:36 26 minutes, 36 seconds non-performing stores or uh the quality of the the poorer stores uh at the same time launching new merchandise new 26:43 26 minutes, 43 seconds collection etc. So has that you know helped you improve the conversions or the footfalls? Have you seen any changes 26:51 26 minutes, 51 seconds in both of these metrics uh that you know that you gives the confidence to you for the future uh coming years uh 26:58 26 minutes, 58 seconds that your actions are panning out the way you're invisaging? 27:03 27 minutes, 3 seconds Yes, absolutely. So you know if you look at it from um two three different perspectives if I 27:10 27 minutes, 10 seconds speak about just the last quarter we saw uh footfalls improving by by low single 27:17 27 minutes, 17 seconds digits. Although that low single digits looks like a low number, it's after many quarters we saw that increase happening. 27:24 27 minutes, 24 seconds Uh conversions on the other hand uh have remained stable. They're already very high. So as the competitive ind uh you 27:33 27 minutes, 33 seconds know intensity in this industry has escalated quite a lot just because we've been so quick with our merchandising and 27:40 27 minutes, 40 seconds been doing almost 2.5x designs now last financial year. it has helped us remain at the same conversion levels which has 27:46 27 minutes, 46 seconds always been very high. Uh so broadly these are two points and at the same time our average basket size also 27:53 27 minutes, 53 seconds improved by about 1 and a half%. Further helping us achieve better volumes in the last quarter. 28:01 28 minutes, 1 second Sure. Thanks. And this last one from me is on competitive intensity. I know as you highlighted 28:08 28 minutes, 8 seconds over the past couple of years. So how do you see that now? uh you know there was a view uh quite some time back you know 28:14 28 minutes, 14 seconds that given that majority of these pop-up stores uh will struggle uh given that you know they came in come out and 28:22 28 minutes, 22 seconds profitability is not really there. So have you seen the intensity in any way uh fading or you know moving as per your 28:30 28 minutes, 30 seconds expectations that you had you know thought before. H so we track any competition in any market very closely. 28:38 28 minutes, 38 seconds Uh and what we've seen in the last 7 to 8 months is that the players who had entered 28:45 28 minutes, 45 seconds in 2022 they have started to close down whereas players who entered recently in the last 1 to two years has still continued to 28:54 28 minutes, 54 seconds add stores uh at a pan India level. So all in all what we saw is that net quite a few stores closed but also few stores 29:01 29 minutes, 1 second opened but in a consolidated manner net new openings didn't exist in the industry. So that is one one aspect. My 29:10 29 minutes, 10 seconds understanding about the regional competition I can't comment on the larger national groups because their dynamics are very 29:18 29 minutes, 18 seconds different but the regional players uh and there are many many of them is that typically when they open a new store uh 29:26 29 minutes, 26 seconds the first year is very exciting um because it's a new store new investment that they've put in. Second year when 29:33 29 minutes, 33 seconds sales are not coming to their expectations that's when they invest even more money in the form of marketing in the form of investment into new types of merchandising. 29:43 29 minutes, 43 seconds Third year due to all the pain they start to have heavy discounts try to liquidate and fourth year is typically 29:50 29 minutes, 50 seconds when the store closure happens. That is my understanding of how regional players uh who don't have a lot of equity 29:58 29 minutes, 58 seconds backing typically function. Uh so this is what we have understood from the ground and this is a cycle that is you know sort of natural in retail. 30:08 30 minutes, 8 seconds Uh short thanks Van for answering all my question. Uh all the best. Thank you. Thank you. Thank you very much. 30:15 30 minutes, 15 seconds Thank you. Next question is from the line of Samir Gupta from IFL Capital. Please go ahead. 30:22 30 minutes, 22 seconds Hi good evening everyone and thanks for taking my question. Uh so firstly if you uh so improving retail quality is an 30:29 30 minutes, 29 seconds aspect that you have highlighted. uh if you break down the performance of stores which you would classify let's say as 30:36 30 minutes, 36 seconds newer or better quality uh uh are you seeing any big delta in the SSS growth versus those that you intend to replace 30:44 30 minutes, 44 seconds and uh how many search stores typically are still existing in the system and then a follow-up to this is how much was the gross retail area addition in FI26 30:55 30 minutes, 55 seconds sure um so I'll answer the last question first so we added about 1 lakh odd square ft at a gross level in the last 31:03 31 minutes, 3 seconds financial year. Uh to your second question, I will give you a broad understanding. At a broad level, revenue 31:11 31 minutes, 11 seconds per square ft of the new stores that we open versus the ones we close is about 85% better. 31:19 31 minutes, 19 seconds So any closed store versus any new store. So that's the difference in the revenue per square feet that we see. Uh 31:26 31 minutes, 26 seconds and thirdly to answer your question I would say right now we would have about 5 to 6% 31:34 31 minutes, 34 seconds retail area that falls in that category which we don't love. Uh in any retail company I would say the normal rate of 31:43 31 minutes, 43 seconds closure is typically 2 to 3%. Because markets within cities can move uh creating this this requirement every 31:50 31 minutes, 50 seconds financial year. But currently we sit on about let's say five five and a half% of our entire retail area being in that category. 31:59 31 minutes, 59 seconds So just to follow up on this so you when you say 85% better let's say the store that you're trying to close is 100 the new store that you open with a better 32:08 32 minutes, 8 seconds area or something is 185 on a higher area on a revenue per square feet basis. Correct. Correct. 32:15 32 minutes, 15 seconds And this is from day one. 32:17 32 minutes, 17 seconds Uh I am giving you averages. So for example, all the stores that we opened in FI26, their average revenue per square ft versus the stores that we 32:26 32 minutes, 26 seconds closed in FI26, their average revenue per square ft. 32:31 32 minutes, 31 seconds Got it. Got it. Fair. Uh uh second question is when you say ASP increase, uh that is one thing you'll focus on. Is 32:39 32 minutes, 39 seconds it larger stores which is resulting in better mix as you highlighted to one of the participants or are you also looking 32:45 32 minutes, 45 seconds to take price increases uh in the uh in the portfolio. 32:50 32 minutes, 50 seconds So I would say neither uh from that perspective. So category mix is something which we drive through training. Uh and that is an endeavor 32:59 32 minutes, 59 seconds that we continuously have where we want to cross-ell Mandar consumers to become Touamev consumers or Mandav consumers to 33:06 33 minutes, 6 seconds buy more Moheay products uh with both these brands actually having higher ASP than Mandavar. The point I was trying to make is as a company what we do is we 33:16 33 minutes, 16 seconds upgrade our merchandising every single financial year uh with the goal in mind of improving AS by about 3 three and a half% in each of the categories we 33:24 33 minutes, 24 seconds operate. So we will not be taking any price hikes in existing products but the goal would be to upgrade our collection. 33:32 33 minutes, 32 seconds So for example, if Manu's four kortas the best kortas exist today at 4,000 33:40 33 minutes, 40 seconds rupees, some of the new collection that we make will be in the 4,500 rupee bracket to give you an example. 33:48 33 minutes, 48 seconds Got it. So it's largely mix and that to upgradation. Correct. 33:54 33 minutes, 54 seconds Got it. Last question if I may. Uh so gross margin contraction of around 150 basis points during the year. I 34:02 34 minutes, 2 seconds understand it is still in the broad range of 65% plus but still if you could highlight the reasons for the 34:09 34 minutes, 9 seconds contraction this year uh is it higher provisioning mix impact the ST impact if you can just classify it in within these buckets. 34:19 34 minutes, 19 seconds So uh the gap which we are seeing it is majorly on account of GST only which has impacted our revenue and uh gross margin as well. 34:30 34 minutes, 30 seconds Okay. So, it's largely GST. Fair enough, sir. I'll I'll thanks for all thanks for answering all these questions. I'll I'll come back in the queue for any follow-ups. Thanks. 34:38 34 minutes, 38 seconds Sure. Thank you. 34:40 34 minutes, 40 seconds Thank you. A request to all the participants. Kindly limit yourself to two questions per participant and rejoin for a follow-up. 34:48 34 minutes, 48 seconds Next question is from the line of Shan Gora from Morgan Stanley. Please go ahead. 34:55 34 minutes, 55 seconds Yeah. Hi team, good evening. Uh I just wanted to dwell a little bit deeper on your comment around March. Uh and uh 35:02 35 minutes, 2 seconds could you just talk a little bit more about how was March and uh what actually changed and any region wise divergence that you saw in March? 35:12 35 minutes, 12 seconds Oh well, you see I could go deeper into this but 35:20 35 minutes, 20 seconds can perform uh much better also because of the way wedding dates can move between quarters. So I think that is one 35:27 35 minutes, 27 seconds of the core reasons why March was much better than any other month in the last quarter. Uh on the other hand from a 35:35 35 minutes, 35 seconds region perspective uh you know what we saw is that overall all regions did decently well. uh we did 35:42 35 minutes, 42 seconds see that some of the pockets that we operate in performed a little better than others. 35:50 35 minutes, 50 seconds Right. Got it. And just uh the second question I just wanted to understand the other expense line a little better going into X27 35:59 35 minutes, 59 seconds uh this quarter on a decent uh topline growth uh the other expenses were down about 7%. Uh so how should we look at 36:07 36 minutes, 7 seconds this u other expense uh decelerization that we saw in this quarter and also going into F27 any any color around that 36:15 36 minutes, 15 seconds what's driving this decelization so the other expenses comprised of a lot of things actually the major things 36:22 36 minutes, 22 seconds which were there as a result of it have gone down one was if you see our inventory we have bring in efficiency in 36:30 36 minutes, 30 seconds the inventory thing so as a result our job expenses have gone Our marketing cost overall were uh higher than last 36:38 36 minutes, 38 seconds year but if you look at only Q4 it was a bit lower. So on account of these things our other expenses have gone down in Q4 compared to last year Q4. 36:50 36 minutes, 50 seconds Perfect. Got it. Thank you so much. Thank you. Thank you. 36:59 36 minutes, 59 seconds Next question is from the line of Harsha from Bundan Mutual Fund. Please go ahead. 37:06 37 minutes, 6 seconds Hey. Hi Vidal. Am I audible? Yes. 37:10 37 minutes, 10 seconds Uh, hi Vid. Van, you mentioned about uh, you know, uh, focusing on uh, getting the SSD momentum first and then thinking 37:19 37 minutes, 19 seconds about uh, store expansion. So in that uh, in that sense, what would be a marker for you as to when to start 37:28 37 minutes, 28 seconds pursuing store expansion? as in uh would three four quarters of consistent mid single SSD be a marker let's say for 37:36 37 minutes, 36 seconds example uh for you guys to start trusting and believing that okay fine we've got the SSD momentum now and this 37:44 37 minutes, 44 seconds is the phase to kind of start going into expansion so I just wanted to get a brief sense on how are you thinking on those lines as well 37:53 37 minutes, 53 seconds yes I think that is definitely a key factor where if we are able to uh sustain very good SSGS 37:59 37 minutes, 59 seconds that also allows us to move faster into newer markets that we have not explored. 38:04 38 minutes, 4 seconds So that definitely remains as a large factor. On the other hand, rentals have become so expensive in the 38:13 38 minutes, 13 seconds newer parts of India that we want to experiment with that we've also been a little cautious. So with improved SSGS 38:20 38 minutes, 20 seconds and higher revenue per square feet that our model can then carry this will also allow us to explore new areas and even 38:29 38 minutes, 29 seconds at higher rental levels sign these stores. So they sort of go hand in hand which is which is what I I've been sort 38:36 38 minutes, 36 seconds of trying to refer to but at the same time you know there are also a lot of existing areas that we 38:44 38 minutes, 44 seconds want to open our store in. If I give a example very close to majority of you then we don't have any store in south 38:51 38 minutes, 51 seconds Bombay beyond lower brain uh I think there is definitely scope for two stores in in that area regardless of rental 38:58 38 minutes, 58 seconds levels. Uh but our goal is that even though rentals are high we want to get a property which uh really has a high 39:06 39 minutes, 6 seconds visibility value. So there are also many markets in India where we have been trying to get a very good store but it's just when an existing tenant actually 39:15 39 minutes, 15 seconds quits that we will be able to get this opportunity. 39:20 39 minutes, 20 seconds Okay. But I just wanted the directional tense uh Vidant as in uh how long would 39:26 39 minutes, 26 seconds you kind of uh wait and see the momentum sustained before you take the call of going again into expansion mode. 39:36 39 minutes, 36 seconds See, I think the goal is to be u at higher SSG numbers and then take those 39:43 39 minutes, 43 seconds you know sort of calls. Uh but broadly if you ask me is like I was mentioning um typically a retail company closes 39:52 39 minutes, 52 seconds about 3 to 4% of their uh retail area in a given year. This year we might again close 5 to 6% and still try to have net 40:01 40 minutes, 1 second square ft positive growth. I think by next financial year we will be in a position where openings start to normalize and uh that is when things 40:10 40 minutes, 10 seconds should sort of turn around in terms of openings. 40:15 40 minutes, 15 seconds Okay. And when you spoke about this new India opportunity right uh what exactly 40:22 40 minutes, 22 seconds I mean uh what kind of cities towns are you alluding to here in this new new India kind of remark here. 40:32 40 minutes, 32 seconds uh so you know broadly if I give you one example let's say let's take a city like Bopal 40:39 40 minutes, 39 seconds u so in a city like Bopal I think we want to open a very large store but for 40:45 40 minutes, 45 seconds example u the challenge lies in uh the rental levels even in markets like Bopal where if we expect the rentals to be X 40:54 40 minutes, 54 seconds they are currently 1.3 1.4x 4x. So that is the kind of fight we're having across the country where we want to get stores 41:01 41 minutes, 1 second at very good rental levels and it's being very difficult to find those stores. Uh but we continue to invest uh resources into ensuring we continue 41:09 41 minutes, 9 seconds signing stores at rental levels which we feel are sustainable for the next 12 to 15 years for a retail store. 41:18 41 minutes, 18 seconds Okay. Got it. And just one question on the inflation bit. you said that there is 100 150 basis point of uh uh RM 41:27 41 minutes, 27 seconds inflation which uh you would be able to absorb over time. So there might be some hit uh for us initially and then 41:36 41 minutes, 36 seconds probably we'll be able to make it up for it. Is that the right understanding? 41:41 41 minutes, 41 seconds So you know the the thing here is that uh majority of our orders for current 41:48 41 minutes, 48 seconds SKUs are already placed in the existing prices. 41:52 41 minutes, 52 seconds So the new products for which we are ordering the new fabric takes into account these prices. So broadly my 42:00 42 minutes understanding is that it should not affect our gross margins much. uh but 10 15 basis points here and there is something which might happen but broadly uh they should not impact anything. 42:14 42 minutes, 14 seconds Got it. And just lastly on this capital allocation thing or the cash balance we have with us 42:20 42 minutes, 20 seconds uh any kind of thoughts there uh in terms of returning it back to shareholders or retaining it for let's 42:28 42 minutes, 28 seconds say inorganic acquisition or something of that sort. 42:34 42 minutes, 34 seconds U so again a very interesting question up until now what we've been doing in the history of the company after IPO is that we've been doing about 50% 42:42 42 minutes, 42 seconds uh uh profits as dividends uh so that is a model which we've been doing uh regarding the 42:50 42 minutes, 50 seconds current policy this is something that uh we have been actively discussing internally and while I don't have something concrete to tell you right now 42:59 42 minutes, 59 seconds I think hopefully by next earnings call we will have a very concrete answer on Got it. Thank you so much. 43:09 43 minutes, 9 seconds Thank you. 43:10 43 minutes, 10 seconds Thank you. A request to all the participants. Kindly limit yourself to two questions per participant. 43:18 43 minutes, 18 seconds Next followup question is from the line of Rishi Modi from RDM advisory. Please go ahead. 43:24 43 minutes, 24 seconds Yeah. Hi. Thanks for giving me the opportunity again. Uh two questions from my end rather quick ones. Um first one any inorganic opportunities Lean that 43:32 43 minutes, 32 seconds you seeing in the market now that you mentioned players from 2022 have shut down and I'm sure there might be some 43:39 43 minutes, 39 seconds stress in some regional players sorry did you mention inorganic opportunities? Yeah. 43:47 43 minutes, 47 seconds All right. So um broadly if you ask me we we do track every single company in the space. uh while there is nothing in 43:57 43 minutes, 57 seconds the pipeline that we have or nothing that we are actively exploring uh the way I would put it is 44:04 44 minutes, 4 seconds um overall you know we do have the cash in our books uh you know explore 44:12 44 minutes, 12 seconds acquisitions but there is nothing that we have currently in the pipeline yet we feel that the company has advantages 44:19 44 minutes, 19 seconds where we could really turn around the bottom line of a company like in the case of Mayas which is something which we have done. Um so we are open to 44:28 44 minutes, 28 seconds acquisitions but again we are not currently looking at anything or exploring anything because nothing in scale exists in the kind of sector we 44:37 44 minutes, 37 seconds currently operate in. So all these are too small where the cost of acquisition would actually be a lot higher than just opening stores in that area. 44:48 44 minutes, 48 seconds Okay understood. Um second just if you could give me the store mix like how many mana mo how many how many mo 44:56 44 minutes, 56 seconds standalone how many standalone do we have and if you had to rank their sales per square feet by each format how would you rank them? 45:05 45 minutes, 5 seconds Yes. So we have about eight Tame EOS and similar number of Mohos. 45:11 45 minutes, 11 seconds uh broadly from a revenue per square feet point of view to would be slightly better off than Mana EOS and Moi would 45:19 45 minutes, 19 seconds be slightly lower than but broadly similar line the mix between say mana or mohei 45:27 45 minutes, 27 seconds combined versus only man uh you mean revenue wise 45:34 45 minutes, 34 seconds no no in store-wise as well like if you could just help me understand how many stores there there's still scope of you 45:42 45 minutes, 42 seconds know making mana moheay combined versus today we have only a manava store any store where we could have added moh 45:51 45 minutes, 51 seconds that exercise has been long completed uh so it's not feasible to add mo in any of the existing manava stores uh however 45:58 45 minutes, 58 seconds what we are doing is that wherever we have very high revenue per square feet in a mana store we are actively looking for a bigger store where we can also add 46:07 46 minutes, 7 seconds moay Okay. All right. And uh do we have any 46:14 46 minutes, 14 seconds pipeline like where we know we want to do this? 46:21 46 minutes, 21 seconds Yes, of course. I mean this is an exercise which we do on a quarterly basis where we track every store and try to understand if there is opportunity 46:29 46 minutes, 29 seconds for mo or opportunity for a bigger store and then we go deep into that and try to find a larger store. So this is something which we actively do on a 46:37 46 minutes, 37 seconds quarterly basis and uh the plan for remains the same 30 stores and India first and then decide on expanding. 46:47 46 minutes, 47 seconds Absolutely. So the top markets of India um and the best store within these markets that is the core strategy and we 46:54 46 minutes, 54 seconds are actively trying to sign stores in the in the next set of five to six stores now. 47:02 47 minutes, 2 seconds All right. But it won't happen in the coming year. The 8 to30 jump won't happen in the coming year for 47:09 47 minutes, 9 seconds unfortunately rishi the problem with uh with VBOS is that majority of the properties we are signing a bill to 47:16 47 minutes, 16 seconds suit. So let's say if we sign a property today the store actually opens 18 months from now to 20 months from now. So there 47:24 47 minutes, 24 seconds is a lag in terms of that because majority of the buildings are new and they are actually breaking down old buildings and creating new ones when 47:32 47 minutes, 32 seconds Tommy is going in. U so I hope that we will actually end the financial year with a lot of signing to VBOS but 47:40 47 minutes, 40 seconds openings might be staggered over the next financial year and maybe a few in first two quarters of financial year 28 or 29 as well. 47:49 47 minutes, 49 seconds Okay. All right. So in the next 2.5 years we should get to 30 is the target. 47:56 47 minutes, 56 seconds I would not say 30 but the idea is that we open open quite a few stores. I would not say the word uh number 30 yet. 48:04 48 minutes, 4 seconds Okay. All right. Great. Thank you. 48:05 48 minutes, 5 seconds That's it from my Thank you. 48:09 48 minutes, 9 seconds Thank you. Next question is from the line of Tja Sha from Spark. Please go ahead. Uh 48:16 48 minutes, 16 seconds hi M couple of questions. Uh yeah. Am I audible? Yes. Yes. 48:21 48 minutes, 21 seconds Yes. Yeah. Hi. Here we couple of questions. So first looking at how macro is developing and what happened uh on u 48:29 48 minutes, 29 seconds yesterday in terms of uh government uh discouraging foreign travels or travel as much uh as as less as possible. Um 48:38 48 minutes, 38 seconds coming uh so so just wanted to know let's hypothetically see stretches like that there are no overseas destination 48:45 48 minutes, 45 seconds wedding. So such scenarios actually work in after or or they are neutral because people in any case buy here and then go abroad. 48:54 48 minutes, 54 seconds Uh to be very honest with you uh my honest answer here would be anyone doing an overseas 49:01 49 minutes, 1 second uh wedding uh that wedding family is typically not our target audience at all. These are very premium weddings. Uh so it should not change much uh for us. 49:11 49 minutes, 11 seconds And on the other hand uh if those weddings are happening in India and people are actually inviting guests and 49:18 49 minutes, 18 seconds foreigners from across the world that is a very strong audience for us because for them man is a is a no-brainer in terms of the kind of quick turnaround that we have. 49:29 49 minutes, 29 seconds Perfect. Uh second looking looking ahead uh on this year what are the two three key projects initiatives you are excited 49:38 49 minutes, 38 seconds about that they deliver as per your expectation we can materially change the growth trajectory that we are having for last two three years. 49:47 49 minutes, 47 seconds Uh so couple of things that we are really working on very hard is on improving our retention rate as a 49:54 49 minutes, 54 seconds company we had never focused on working on the existing consumers. Um so right 50:01 50 minutes, 1 second now we have almost 90 lakh consumers with their data um in the company. So 50:10 50 minutes, 10 seconds one big goal that we have for the year is how can we call back a lot of these consumers again this financial year. So this is one project which I'm very 50:18 50 minutes, 18 seconds excited about because the opportunity is a lot uh from a revenue point of view and we've never done a lot of work for 50:26 50 minutes, 26 seconds this segment. So it's a very green field sort of a project as well. So this is one very exciting area for us. The other 50:34 50 minutes, 34 seconds area which I would not speak from an excitement perspective but which I already mentioned is ASP is something which was lagging for the last two to 50:40 50 minutes, 40 seconds three financial years. that is something we will go back to and that should also help us grow a little more uh within each category that we operate in. 50:51 50 minutes, 51 seconds Finally, something which I am truly excited about and uh you know this is something which whenever I meet analysts 50:58 50 minutes, 58 seconds in person in the office I would be very happy to show is the kind of investments we are making in AI. I think AI will 51:07 51 minutes, 7 seconds change the way retail companies function and we are making significant investments across the departments uh to 51:16 51 minutes, 16 seconds enable agentic AI where each and every function can actually have their own agents talking to each other so that the 51:24 51 minutes, 24 seconds kind of communication we have in retail company between product marketing supply chain uh teams can actually become a lot better. So you've already taken major 51:33 51 minutes, 33 seconds steps and initiatives already showing us very good results. If I give you a small example, let's say when you do a Google campaign, 51:42 51 minutes, 42 seconds there are about 20,000 line items on which you are spending on Google search. 51:47 51 minutes, 47 seconds U top 20 line items senior management would review. the next 200 line items middle management could review and maybe 51:56 51 minutes, 56 seconds only the top six 700 line items is what any human would actually analyze but now we've created an AI system that is 52:03 52 minutes, 3 seconds analyzing all 20,000 keywords and making changes on its own so those efficiencies which would never exist can are now 52:10 52 minutes, 10 seconds possible and we are literally working uh on training every member of our team to 52:18 52 minutes, 18 seconds understand AI and start deploying agents across the Interesting. And has this been deployed or in in process of deployment? 52:28 52 minutes, 28 seconds So I think easy use cases we've deployed them and any tough use cases that actually have a linkage to a larger system all of those are in progress. 52:40 52 minutes, 40 seconds Got it. That's all from my side. Thanks. Thank you. 52:43 52 minutes, 43 seconds Thank you very much. Ladies and gentlemen, that will be the last question. I'll now hand the conference over to the management for closing comments. 52:52 52 minutes, 52 seconds It is always a pleasure interacting with all of you. Um I think we've been through a a weak uh last two to three 53:01 53 minutes, 1 second years in terms of overall financial performance but as a company we are doing everything possible to create a 53:08 53 minutes, 8 seconds infrastructure in place both in terms of back end and front end where uh once the macro uh headwinds turn into tailwinds 53:16 53 minutes, 16 seconds and we are able to also see consolidation in terms of competition we will be set for much better growth as the company moves into the future. I 53:25 53 minutes, 25 seconds think one positive is that even though times are tough, we are able to stand our ground and not make any decisions that we feel will be wrong for long 53:34 53 minutes, 34 seconds term. So I think we as a company have that mindset of sticking towards making decisions that only help us grow 53:42 53 minutes, 42 seconds from a long-term perspective. Um so thank you very much for attending the call and look forward to interacting with you soon. 53:51 53 minutes, 51 seconds Thank you very much on behalf of Aveners Park. That concludes this conference.