Westlife Foodworld Ltd — Q4 FY26

Westlife Foodworld Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=uNFpFGQ4lyY Published: 6 days ago

0:00 Ladies and gentlemen, good day and welcome to the Westlife Food World Limited Q4 FI26 earnings conference call. 0:09 9 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:17 17 seconds Should you need assistance during the conference call, please signal an operator by pressing start and zero on your touchstone phone. We would like to 0:25 25 seconds remind you that certain statements made by the management in today's call may be forward-looking statements. These statements, this forward-looking 0:32 32 seconds statements reflect management's best judgment and analysis as of today. The actual results may differ materially from the current expectations based on 0:41 41 seconds the number of factors affecting the business. Please refer to the safe harbor disclosure and earnings presentation. I now hand the conference 0:50 50 seconds over to Mr. Chentan Jajul. Thank you and over to you sir. 0:56 56 seconds Thank you Rutuja. Good evening everyone and thank you for joining us on Westlife Food World earnings conference call for the fourth quarter and full year ended 31st March 2026. 1:06 1 minute, 6 seconds I am Chintan Jajel head of investor relations at Westlife Food World. From the management team I have with me Mr. 1:14 1 minute, 14 seconds Akay Jatya, president and CEO, Mr. Sorav Kalra, managing director and Mr. Sadus Doshi, Chief Financial Officer. 1:23 1 minute, 23 seconds As always, we will begin today's session with Akshai sharing his perspective on company's overall strategy and outlook. 1:31 1 minute, 31 seconds This will be followed by Sorup taking us through the key operational and financial highlights. Post that we will then open the forum for questions and answers. 1:40 1 minute, 40 seconds Throughout the call we will be referring to earnings presentation and financial releases which are available on the NSEBSC 1:46 1 minute, 46 seconds as well as investors page of our website. With that I now request a to commence the session. Thank you and over 1:53 1 minute, 53 seconds to you a hello and good evening everyone. Thank you for joining us today. I hope you've had the opportunity 2:01 2 minutes, 1 second to review our Q4 and full year FY27 FY26 sorry results. This quarter, our performance was anchored in 2:09 2 minutes, 9 seconds strengthening our everyday value platform and on ground execution. Our focus was primarily on driving guest 2:17 2 minutes, 17 seconds count growth by making everyday value accessible to everyone. 2:21 2 minutes, 21 seconds Despite the challenges, we delivered a steady performance underpinned by improving guest count trends and sustained profitability for the quarter. 2:31 2 minutes, 31 seconds Same store sales growth stood at 1.5% while overall topline grew 9% yearonear. 2:38 2 minutes, 38 seconds What is particularly reassuring is the underlying improvement in footfall trends with positive growth across 2:45 2 minutes, 45 seconds footfalls across all three months of the quarter. 2:49 2 minutes, 49 seconds Similar momentum is continuing into April as well, setting the base for a good start to the new fiscal year. That 2:57 2 minutes, 57 seconds said, these are still early days and we would refrain from calling this a sustained revival until we see a few more quarters and months of consistent momentum. 3:08 3 minutes, 8 seconds Our consumer proposition is very clear. 3:11 3 minutes, 11 seconds Accessible everyday value combined with iconic McDonald's experiences delivered with consistency and backed by strong 3:18 3 minutes, 18 seconds economic discipline. We are encouraged by the early evidence of this strategy translating into sustained guest count traction. 3:26 3 minutes, 26 seconds At the heart of this performance is our unwavering focus on everyday value. 3:31 3 minutes, 31 seconds Value at McDonald's is trusted, predictable and habit forming. Our our 99 everyday value meal continues to 3:38 3 minutes, 38 seconds witness strong traction and has driven encouraging dining and footfall growth across all our regions. 3:46 3 minutes, 46 seconds Building on this proposition, we are leveraging MC cafe as well to drive a daily habit of coffee consumption in 3:53 3 minutes, 53 seconds India. Our coffee is already loved by millions of people. And to further amplify this, last quarter, we launched 4:01 4 minutes, 1 second a monthly coffee subscription program to drive repeat visits and strengthen MCAF loyalty. 4:09 4 minutes, 9 seconds We continue to focus on deepening consumer engagement to keep the brand contemporary and culturally relevant. 4:16 4 minutes, 16 seconds During the quarter, we rolled out two merchandise campaigns featuring a sipper and a tote bag aimed at driving Gen Z 4:24 4 minutes, 24 seconds engagement and sustaining brand buzz within the cohort. 4:29 4 minutes, 29 seconds These engagements were driven primarily through leveraging digital media and we are encouraged by the strong response and brand affinity that they generated. 4:39 4 minutes, 39 seconds I'm also delighted to share that last quarter we achieved the major milestone in our sustainability journey. We were 4:46 4 minutes, 46 seconds ranked sixth globally in the restaurants and leisure facility sector according to the SNP global corporate sustainability 4:54 4 minutes, 54 seconds assessment and were included in the sustainability yearbook for 2026. 5:00 5 minutes This recognition was awarded to only six companies out of 126 in our industry globally, reflecting our continued 5:08 5 minutes, 8 seconds commitment to embedding sustainability to be at the core of our long-term growth strategy. 5:16 5 minutes, 16 seconds Looking ahead, we remain focused on disciplined and prudent network expansion aligned with improving demand trends and strong capital efficiency. 5:26 5 minutes, 26 seconds We opened a record 48 restaurants this year, taking our footprint meaningfully higher across both existing and newer 5:34 5 minutes, 34 seconds markets. Going forward, we plan to further accelerate our expansion by opening 60 plus restaurants annually 5:42 5 minutes, 42 seconds with all new stores fully equipped with digital modern design and m cafes, reflecting our confidence in the 5:49 5 minutes, 49 seconds strength of our industry and the opportunities that lie ahead. Before I hand it over, I'd like to reiterate that 5:57 5 minutes, 57 seconds our philosophy remains rooted in profitable and sustainable growth with a clear focus on stakeholder value 6:03 6 minutes, 3 seconds creation. We are building West Slide for the long term through cycles with discipline and with our consumer 6:11 6 minutes, 11 seconds proposition firmly at the center of every decision we make. With that, I'll now pass it to Sorup to take you through 6:18 6 minutes, 18 seconds the operational and financial highlights for the quarter. 6:23 6 minutes, 23 seconds Thank you Ash. Good evening everyone. I hope all of you are doing well. Uh coming back to the results, the fourth quarter reflected steady execution amid 6:32 6 minutes, 32 seconds amid challenges with our performance driven by improving guest count momentum uh disciplined execution and sustained 6:39 6 minutes, 39 seconds profitability margin throughout the quarter. We remained firmly focused on sharpening our value consumer value 6:46 6 minutes, 46 seconds proposition uh which Aki also spoke about while consistently delivering the great customer experience McDonald's is famous for across both dining and 6:55 6 minutes, 55 seconds delivery channels. For the quarter consolidated revenue stood at 6.6 billion rupees growing 9% yearon-year. 7:03 7 minutes, 3 seconds For the full year of FI26, revenue stood at 26.3 billion rupees, translating into 5% year-on-year growth. The quarter 7:12 7 minutes, 12 seconds ended with a positive same store sales growth of 1.5% at the system level driven by mids singledigit guest count 7:20 7 minutes, 20 seconds growth, which is the real heartening part. While the west continued to outperform, I'm especially encouraged by the progress in the south where same 7:28 7 minutes, 28 seconds store sales growth uh ended also ended the quarter nearly flattish and and a meaningful improvement versus the 7:37 7 minutes, 37 seconds previous quarters. Uh and that too on the back of GC momentum which was which was marginally positive. From a channel 7:45 7 minutes, 45 seconds standpoint, onremise sales grew 9% yearonear, while off-premise sales increased 6% yearon year. Growth across 7:54 7 minutes, 54 seconds both channels was supported by positive comparable guest count, primarily driven by everyday value means and sharper 8:00 8 minutes digital engagements. Importantly, the me delivery platform continued to gain scale and salience witnessing strong growth across day parts and 8:08 8 minutes, 8 seconds demonstrating early evidence of a re of of a robust and sustainable growth engine. Now moving to profitability, our 8:17 8 minutes, 17 seconds continued focus on execution, discipline and cost optimization helped anchor our margin performance. Gross margin for the 8:25 8 minutes, 25 seconds quarter remained near historic high levels of 68.1% improving by around 60 bits sequentially. Restaurant operating 8:34 8 minutes, 34 seconds margins improved by approximately 70 bits yearon year. Our operating AITA remains broadly stable yearon year 8:42 8 minutes, 42 seconds despite higher advertising and promotion spend and continued growth investments. 8:47 8 minutes, 47 seconds Cash profit after tax stood at 487 million rupees representing 7.4% 4% of sales. 8:56 8 minutes, 56 seconds FI26 witnessed continued inflationary pressures across key commodities, notably cocoa and coffee. However, the 9:05 9 minutes, 5 seconds impact was mitigated through supply chain efficiencies and our full year like forlike gross margins stood at 67.7%. 9:12 9 minutes, 12 seconds Improving by around 140 bits yearon year. Restaurant operating margin grew approximately 100 basis points 9:20 9 minutes, 20 seconds yearon year to 20.3%. While operating AITA remained stable at 13.2% for the 9:27 9 minutes, 27 seconds full year cash pack was at rupees 2.4 billion representing 9% of sales. Our 9:34 9 minutes, 34 seconds digital sales contribution stood at 76% increasing over 100 basis points year-on-year primarily driven by higher 9:42 9 minutes, 42 seconds engagement across McDonald's app mug delivery platform and self-ordering kiosks. These continue to enhance 9:49 9 minutes, 49 seconds frequency personalization and operation throughput at scale. Cumulative app download have now crossed 52 million 9:58 9 minutes, 58 seconds with approximately 3.5 million monthly active users going at a healthy double-digit rate year on year. Our 10:06 10 minutes, 6 seconds network expansion uh on the network expansion we continued to follow disciplined and a prudent approach. We opened 21 new restaurant in quarter 4. 10:15 10 minutes, 15 seconds Uh taking our total tally to 478 restaurants across 78 cities. New store performance remain encourage uh remains 10:23 10 minutes, 23 seconds encouraging supported by improved site selection and a stronger execution rigor. On on the operations front, we 10:31 10 minutes, 31 seconds continue to closely monitor uh LPG situations and have taken proactive measures to mitigate operational risk as 10:38 10 minutes, 38 seconds much as possible. Prior investment in store modernization capability upgrade have translated into greater resilience in this current environment. 10:48 10 minutes, 48 seconds All our restaurants are operational with less than 10% of the restaurant operating on limited menu. Uh to 10:56 10 minutes, 56 seconds conclude, Q4 reflects the strength and resilience of our core business fundamentals. Our continued focus on everyday value, discipline, execution 11:05 11 minutes, 5 seconds and structured profitability. This positions us well as demand trends improve gradually. As we move forward, 11:12 11 minutes, 12 seconds our priorities remain clear. Driving guest countled growth, strengthening our consumer value proposition, building 11:19 11 minutes, 19 seconds brand affinity, scaling digital capabilities and expanded our expanding our network responsibly. Uh with that, thank you very much for your time and we 11:28 11 minutes, 28 seconds are very happy to take whatever questions you have. 11:32 11 minutes, 32 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 11:40 11 minutes, 40 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to only use handsets while 11:48 11 minutes, 48 seconds asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 12:10 12 minutes, 10 seconds The first question is from the line of Dan Shuansil from MK Global. Please go ahead. 12:15 12 minutes, 15 seconds Yes. Hi. Uh good afternoon. Good evening everyone. So uh congratulations on good store openings as well as uh good gross 12:24 12 minutes, 24 seconds margin performance. Uh sir Q4 was impacted by supply. Hi Danu. Can you be a little louder? 12:32 12 minutes, 32 seconds Yeah. Am I audible now? Yeah. Better. 12:37 12 minutes, 37 seconds Yeah. I was saying uh Q4 was impacted by supply side disruptions. Uh there was some uh proponent of Navaratri as well. 12:45 12 minutes, 45 seconds Uh so wanted to check if you could uh help us better understand the normalized uh SSD uh during the quarter. Uh this would 12:54 12 minutes, 54 seconds help us better project the underlying consumption trends. 12:58 12 minutes, 58 seconds So uh as I spoke when I was giving you the review of quarter 4 uh we had high mid and we had mid singledigit guest 13:07 13 minutes, 7 seconds counts. Needless to say there were other pressures beyond Navaratri also like LTG not being available in a few restaurant 13:14 13 minutes, 14 seconds 10% of our stores were impacted pretty much from 10th of March onwards. So I think I think but all of this in the big picture is all fair because last year 13:23 13 minutes, 23 seconds also something would have happened. So what we would like to believe is if we take the same four bucket what has he done this year it is this is the number 13:30 13 minutes, 30 seconds which comes so I would not like to break it further and be able to say you know we will remove navatri something or the other keeps happening in an Indian 13:38 13 minutes, 38 seconds environment and it's a real performance is what comes out so for us that's how I would put it as 1.5% is what we've 13:45 13 minutes, 45 seconds delivered with a mid singledigit guest count comps which is the number of invoices so and and we are pleased that 13:53 13 minutes, 53 seconds after a long time now we started hitting a momentum which is 8 to 10% on growth and uh we believe we we're poised to 14:00 14 minutes continue this momentum got it s I also wanted to check across regions you indicated that south has 14:09 14 minutes, 9 seconds turned positive and uh despite that we are at 1.5% I wanted to check has there been a dip in SSD in the west region if 14:18 14 minutes, 18 seconds you could throw some light there so what I talked about south south has made a significant ificant amount of improvement on the sales side while the 14:27 14 minutes, 27 seconds guest count turned positive and that is something which was which was uh a problem which we had pointed out in the previous call. So we wanted to let you 14:35 14 minutes, 35 seconds know about that like I said there were multiple disruptions uh even in west uh to like LPG etc. So we are happy with 14:43 14 minutes, 43 seconds what we have been able to achieve in terms of 1.5%. West remains strong. 14:48 14 minutes, 48 seconds Obviously most of you are based out of west. You can go to the restaurants and and see west remains a very strong uh driver of growth for us. And uh what we 14:55 14 minutes, 55 seconds are seeing is green shoots in west definitely south also coming in as as as I'm talking to you. 15:01 15 minutes, 1 second Honest. So you're saying that guest count has turned positive for the south uh for the quarter right on the same level. 15:08 15 minutes, 8 seconds Yes. Okay. The last question from my end. We are we have taken conscious efforts to ramp up our delivery channel. 15:16 15 minutes, 16 seconds Um plus last quarter we indicated improved relationship with aggregators also and uh in your commentary you 15:23 15 minutes, 23 seconds mentioned that uh the monthly active users are growing at double digit right uh but uh if we see overall growth it is 15:30 15 minutes, 30 seconds around 56%. Uh so when do you expect these initiatives uh to reflect into better growth for us? 15:38 15 minutes, 38 seconds So on total growth I think there was there was a fundamental change we made and we spoke about it last year starting 15:46 15 minutes, 46 seconds second half onwards that what we do need is volume growth which means guest counts need to start come value is not difficult in a current environment to 15:54 15 minutes, 54 seconds get but we wanted to really really focus on volume so that's what we did and we got good volume growth uh on on on our 16:02 16 minutes, 2 seconds own channel 3PO uh and our dining uh while it grew there was a 2 3% difference And we are happy that Dian 16:09 16 minutes, 9 seconds grew faster. Uh but normally if I look at an overall uh and I reflect back or reflect forward I think we would I would 16:16 16 minutes, 16 seconds I would like to believe we would actually grow at a similar level in both diamond and deliveries. That's that's how we are looking at the business uh 16:25 16 minutes, 25 seconds going forward. So 2 3% here and there keeps happening quarter by quarter. But on the longer term outlook what I would like to believe is why delivery has 16:32 16 minutes, 32 seconds grown 6%. The guest count was far higher. uh while diamond has grown 9% the guest count was far far higher. So 16:39 16 minutes, 39 seconds uh we would like to balance a equal amount of growth coming from both diamond and delivery channels and all of them led by both uh more volume than value. 16:50 16 minutes, 50 seconds Fair enough. Just small followup uh for your own delivery channel. Is this monthly active user doubledigit growth 16:59 16 minutes, 59 seconds also reflecting into uh transacting users for you? 17:04 17 minutes, 4 seconds That's correct. Uh that's correct. For our own channel, we see the highest amount of growth coming on our own channel. Obviously, the base of our own 17:12 17 minutes, 12 seconds channel is smaller uh relatively speaking. So, it it does not really come into the result directly as of now. Um but we believe it should start reflecting over a period of time. 17:24 17 minutes, 24 seconds Okay. Uh great sor thanks for taking my question. Thank you. 17:30 17 minutes, 30 seconds Thank you. The next question is from the line of Kalia Bank from Capital. Please go ahead. 17:39 17 minutes, 39 seconds Uh hi uh this is Percy Panki here. Uh I just wanted to get some insight into your gross margin. What is the reason 17:47 17 minutes, 47 seconds for the very healthy expansion that you have seen there? 17:53 17 minutes, 53 seconds Firstly, we have been able to always make that there are three four levers in gross margin and when all of them play together uh we are always able to 18:02 18 minutes, 2 seconds maintain and improve margins. I think last year uh inflation was a little bit in our favor versus what we normally 18:09 18 minutes, 9 seconds get. It might not repeat this year. uh in in addition to that if I look at it we have got supply chain initiatives and we did a cost project internally which 18:18 18 minutes, 18 seconds has worked out quite well for us and we've been able to save some amount of uh gross margin which was able to not only mitigate inflation but also we were 18:24 18 minutes, 24 seconds saving beyond that which is what you see okay and uh any uh price increases uh 18:33 18 minutes, 33 seconds that uh you have recently taken I believe uh Domino's has taken some price increases already uh And there is there 18:41 18 minutes, 41 seconds are some inflationary pressures building up. So what are your thoughts on FY27? 18:47 18 minutes, 47 seconds What kind of uh contribution of pricing can we assume from the growth? 18:53 18 minutes, 53 seconds We have always maintained that year on year we pass on 2 to 4% of price increase year on year. Uh we generally don't don't talk about when do we do it, 19:01 19 minutes, 1 second how do we do it. Normally we do it in three four branches. It's a very small increase which will which you will not even be able to identify. For now we've not been able to take any price increase 19:10 19 minutes, 10 seconds in the last four five months. For immediate future uh we don't have a plan as of now. We will come back to you. We believe the inflation which is hitting 19:18 19 minutes, 18 seconds we should be able to manage. If there is a small price increase here and there it might happen it might happen. So for the year the outlook remains constant 2 to 19:26 19 minutes, 26 seconds 4% is what we take so that we are able to manage inflation better. 19:31 19 minutes, 31 seconds and on uh South India what exactly were the initiatives or the actions uh uh that uh you have put in the 19:39 19 minutes, 39 seconds interventions that you have put in uh which has uh uh worked can you just uh uh explain it a little bit in detail 19:48 19 minutes, 48 seconds so south really we were doing a lot of things uh we put a stop to everything and we went back to what we are really famous for which is everyday value platform and what we've done in west we 19:56 19 minutes, 56 seconds tried in south first and we have then started to roll Except Chennai pretty much everywhere we doing everyday value platform and in Chennai we are 20:04 20 minutes, 4 seconds experimenting in half the restaurant which have given great results. So this quarter we plan to roll everyday value platform including in Chennai but other 20:12 20 minutes, 12 seconds than Chennai the entire south we have done everyday value platform which is started giving us good traction and when you say that you are doing a 20:19 20 minutes, 19 seconds lot of uh things earlier which you have put a stop to what exactly does that mean? I'll just clarify for uh sort of 20:28 20 minutes, 28 seconds as well that I think uh you know everyday value platform and what McDonald's is known for which is delivering quality service and 20:36 20 minutes, 36 seconds cleanliness in every one of our restaurants is what we've really focused on. So we went back to the basics and I 20:42 20 minutes, 42 seconds think in the south while we continue to leverage our different menu categories, we focus primarily on our core which is 20:50 20 minutes, 50 seconds ensuring that customers get everyday value and we offer them the best possible experience in our restaurants. 20:59 20 minutes, 59 seconds Okay, got it. Thank you. 21:03 21 minutes, 3 seconds Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all participants, we request you to please limit your questions to two per participant. 21:14 21 minutes, 14 seconds The next question is from the line of Krishnan Samba Morti from Ashika Institutional Equities. Please go ahead. 21:20 21 minutes, 20 seconds Yeah. Hi. Uh two questions for me. One is on the store openings front. Uh you've guided for 60 plus uh openings in 21:27 21 minutes, 27 seconds FI27 which is higher than the usual 40 to 50 stores that you've been guiding for. 21:33 21 minutes, 33 seconds uh can you uh take us through the rational and your confidence uh how do you uh how he read up his number? 21:42 21 minutes, 42 seconds So I think uh you know we always committed to this larger number of 580 to 630 restaurants in our vision 2027 21:50 21 minutes, 50 seconds and as we've been deploying all our initiatives to further grow our average unit volume we've seen great momentum 21:57 21 minutes, 57 seconds and we do feel that in our region there's a lot of opportunity for penetration and I've always and we've always maintained that we will continue 22:05 22 minutes, 5 seconds to penetrate as we feel is logical and we feel now from 45 to 50 restaurants 60 22:13 22 minutes, 13 seconds plus is the number that our market can handle uh in order to grow sales profitably. So I think that's how we 22:20 22 minutes, 20 seconds came to give out this guidance and we're quite confident that uh it will further add to our growth aspirations. 22:28 22 minutes, 28 seconds Uh thanks. Uh the second question is on store closures. Uh while McDonald's has typically done a great job in terms of 22:36 22 minutes, 36 seconds store openings, uh over the last couple of years, you had between seven to eight store closures, which is not a very significant number of the overall 22:44 22 minutes, 44 seconds number, but still higher than the than the than the longerterm average. Uh my question is what are the reasons for store closures and particularly the 22:52 22 minutes, 52 seconds store closures for the current year and would this be a feature in subsequent years as well? 22:58 22 minutes, 58 seconds So in a retail environment actually to operate most optimally you do have to keep re-evaluating your portfolio. We 23:05 23 minutes, 5 seconds call it portfolio management and across 500 odd locations there will be locations that either become redundant 23:13 23 minutes, 13 seconds or are no longer commercially viable and actually it's best for the network that you optimize. It's one of the you know 23:20 23 minutes, 20 seconds most effective ways to you know run a network. So I think in the past we've been very prudent. we will continue to be but as our network keeps expanding 23:29 23 minutes, 29 seconds you will see store closures to optimize our portfolio and I think the current number would probably be a fair 23:36 23 minutes, 36 seconds representation of uh you know the guidance that we would give and I think that it's only for the benefit of our portfolio 23:44 23 minutes, 44 seconds yeah just a followup to that uh because of the relocate south India business were uh more were more of the store 23:51 23 minutes, 51 seconds closes skewed towards the southern market no nothing like that. 23:56 23 minutes, 56 seconds So like Aka said and you also know that we don't like to close too many stores. 24:01 24 minutes, 1 second We would like to do it for portfolio management but if you look at it from a portfolio standpoint we would have closed two three stores two three malls 24:08 24 minutes, 8 seconds shut down some of the places there is a new highway which comes up and all of a sudden accessibility is blocked. So it's not that we are we are keen on opening 24:16 24 minutes, 16 seconds closing more stores as a portfolio like you said we will continue to close six seven stores because three four stores automatically comes as some or the other 24:25 24 minutes, 25 seconds problem occurs in this kind of a network 1% store have an issue which occurs and there is one or two more closure which 24:32 24 minutes, 32 seconds can happen due to tenure etc etc so so it's nothing major which we would like to call it's it's a part of our 24:39 24 minutes, 39 seconds portfolio management and ways of working very thanks Hello. 24:47 24 minutes, 47 seconds Thank you. The next question is from the line of Rishi Modi from RDM Advisory LLP. Please go ahead. 24:55 24 minutes, 55 seconds Yeah. Hi guys. Can you hear me? Yes, we can. Please go ahead. 25:01 25 minutes, 1 second Yeah. Um firstly I just wanted to understand the 80 bits yi improvement. 25:06 25 minutes, 6 seconds See your voice is your voice is not clear. Um it's a little wobbly. If you can be closer and can be louder. Is this better? 25:17 25 minutes, 17 seconds Little better. 25:19 25 minutes, 19 seconds All right. So I wanted to understand firstly the 80 bits yi improvement that you have shown on the opex front in your 25:26 25 minutes, 26 seconds slides. Um what has that led to like what what's led to that improvement? If you could help me understand that. 25:39 25 minutes, 39 seconds So I think that you know we'll just take a look at what you're referring to which which which number are you talking about? 25:50 25 minutes, 50 seconds Um just a second I have the PPT open with me. 25:53 25 minutes, 53 seconds I think Rishi I think this question we can take offline. You can reach out to Chintan and I think he can explain that to you along with our CFO because uh you 26:03 26 minutes, 3 seconds know we'd like to limit the discussion to more strategic points. 26:08 26 minutes, 8 seconds Okay, fine. Um, second, you mentioned in the Q3 call that the toys issue is a BIS issue, but I was just reading up on it 26:16 26 minutes, 16 seconds online. It seems that there's a structural move by McDonald's globally away from toys to books for some 26:24 26 minutes, 24 seconds sustainability reasons. So, just wanted to understand are toys going to come back for your happy meals or 26:31 26 minutes, 31 seconds um if you could just give some clarity that on that piece. 26:36 26 minutes, 36 seconds So u like you rightly said there was a BIS issue and uh government has also opened up a few countries now we are working very hard with the supply chain 26:44 26 minutes, 44 seconds team to make sure the toys come as soon as possible including getting the BIS certified factories supplying us toys we 26:52 26 minutes, 52 seconds are also working parallelly for Indian vendors to get BIS approved that's uh or Indian vendors to be both McDonald's and BIS approved so that is happening in the 27:01 27 minutes, 1 second background we foresee that by next year it will still take almost 9 months to one here is in our judgment uh to be able to bring toys back but books are 27:09 27 minutes, 9 seconds already there. We have been since the time toys were banned we have been using books as a happy meal uh happy meal 27:16 27 minutes, 16 seconds giveaway uh in our restaurants. So that's that's what an update on that is. 27:23 27 minutes, 23 seconds Okay, got it. Uh finally just one structural piece on consumer behavior right your launch this protein slice 27:30 27 minutes, 30 seconds thing. Um, so just wanted to understand is there um like R like are consumers 27:38 27 minutes, 38 seconds justifying coming in to have McDonald's with the protein slice as a healthier 27:45 27 minutes, 45 seconds version or people are moving away from uh QSR western QSR 27:52 27 minutes, 52 seconds um saniting health reasons like just what's your read on the consumer behavior? Is there a health conscious 27:59 27 minutes, 59 seconds consumption wave that is structural in nature or it's um people revert back to QSR? 28:09 28 minutes, 9 seconds So let me come back to you on on this point in in two parts right the first part is as I talked about that there was a mid-s singledigit consumer uh the 28:17 28 minutes, 17 seconds guest count growth which means the number of consumer came were 5% extra and we are seeing the momentum grow even higher so I don't think that there is an 28:26 28 minutes, 26 seconds issue when you talk about health in fact as McDonald's I've always maintain and I always maintain this to everybody that 28:34 28 minutes, 34 seconds if there could be absolute transparent norms where people choose what they eat McDonald's would be better than most things people eat. Sometimes even better 28:42 28 minutes, 42 seconds than what you eat at home. Uh is is would be my argument. Uh but having said that, I think as as McDonald's, we 28:50 28 minutes, 50 seconds charted a path in 2016 on real food, real good. The first thing we we did was made Aloo Piki Burger, which is our 28:57 28 minutes, 57 seconds highest selling product into a balanced meal that broadly it confines to all the parameters which is calories coming out of carb, fat and protein are balanced. 29:06 29 minutes, 6 seconds This is the National Institute of Nutrition guidelines. So we did this in the background. Now obviously you don't sell by saying healthy aloud right? So 29:15 29 minutes, 15 seconds it's or you say don't say nutritious aludiki. This is what we did in the background. Then we kept working on saying can we reduce sodium on French 29:22 29 minutes, 22 seconds fries. Then when we went out about reducing fat in our mayonnaise right that's that's something which has been happening from last 10 years in the 29:30 29 minutes, 30 seconds background. last year was protein slice for people who want to have excess protein uh in their diet they know that you can always add five gram of protein 29:38 29 minutes, 38 seconds so it's it's a journey which McDonald's taking not because uh there is health eventually we would like our consumers 29:46 29 minutes, 46 seconds to choose what they eat and in in that spirit bun was a choice this is a choice we want to provide as many choices to 29:53 29 minutes, 53 seconds our consumer as possible got it request to please rejoin Yeah, 30:01 30 minutes, 1 second just a quick follow up. Let me just check that with the management. Uh when you said 5% customer growth, you meant 5% unique customer growth or you meant like 5% will cut growth. 30:13 30 minutes, 13 seconds So obviously we don't give breakups. Uh needless to say any business is a parto some lot of people customer come new some are regulars. Now on this call we do not give and share that information. 30:24 30 minutes, 24 seconds But when you see 5% growth uh in any company there would be a lot of new customers which would have come in the fold and a lot who would have continued to uh transact with us. 30:35 30 minutes, 35 seconds All right. Good. Thank you. That's it from my end. 30:38 30 minutes, 38 seconds Thank you. Participants are requested to please limit their questions to two per participant. The next question is from the line of Gorav Jagani from JM Financial. Please go ahead. 30:49 30 minutes, 49 seconds Uh thank you for taking my question. I have two sets of questions largely related to margins. Uh so first one is with regards to the your guidance on the 30:57 30 minutes, 57 seconds gross margin. You have you know mentioned that in the near term the gross margins could be that 67% plus. So is it largely in caution with the 31:05 31 minutes, 5 seconds inflation that we are seeing on multiple counts and if yes you know that is 100 approximately 100 pips uh lower versus 31:13 31 minutes, 13 seconds the current levels. So any guidance on the same thing will be helpful. 31:18 31 minutes, 18 seconds Yeah, it is in line with the inflation which we are seeing currently in the market. Uh there is of course lot of pressure uh which is there on the 31:26 31 minutes, 26 seconds suppliers too when with the with the uh geopolitical situation. So there'll be some inflation but there are also some u 31:35 31 minutes, 35 seconds cost optimization programs which we run and hence we have given you the uh indicative number of u in terms of the 67% uh cox going forward. 31:47 31 minutes, 47 seconds Sorry the gross margin going forward. 31:50 31 minutes, 50 seconds Uh okay. Okay. Thanks. And just a alluding question to this is with regards to the you know guidance for the vision 2027 margins. You know now for 32:00 32 minutes this year if you look at the pre-industa margin there is around 7 and a half%. 32:05 32 minutes, 5 seconds Now uh for that vision 27 number uh we are you know hardly one and a half years uh away from that number. uh so so is 32:14 32 minutes, 14 seconds there any change to the guidance or was still confident uh that we'll be able to achieve that guidance uh any change in the outlook if you can highlight. 32:23 32 minutes, 23 seconds So uh just to answer that firstly you know from an India's to India's uh comparison uh I think we're talking 32:31 32 minutes, 31 seconds about roughly this uh 7 and a half or 7.8 that you mentioned going to around 13 to 15%. 32:39 32 minutes, 39 seconds uh I think uh a lot of the improvement is going to come through operating leverage and when we're seeing such momentum in terms of same store sales 32:48 32 minutes, 48 seconds growth and guest counts uh we're quite confident that we will move closer towards what we've committed in terms of 32:56 32 minutes, 56 seconds vision 2027 the journey is for us to uh balance com sales as well as new store 33:02 33 minutes, 2 seconds additions over the next year and first cross say 3,000 odd crores in sales uh I think that's how we are looking at it 33:11 33 minutes, 11 seconds and then we will talk about uh the breakup for the next two years sometime closer to the start of the next 33:18 33 minutes, 18 seconds financial year to give more color on vision 2027. Uh okay sure thanks. 33:28 33 minutes, 28 seconds Thank you. The next question is from the line of stages from Aendaspark Institutional Equities. Please go ahead. 33:35 33 minutes, 35 seconds Uh hi thanks for the opportunity. Uh my first question pertains to the interplay between SSSG uh uh gross margin and 33:44 33 minutes, 44 seconds footfall that you have called out. So uh clearly the fact that footfall has been higher than SSSG I'm assuming that a lot 33:52 33 minutes, 52 seconds of recruitment of mix would have gone in the uh on the value format side but still we delivered very good uh gross 34:00 34 minutes margin. So we're just trying to deconstruct that what worked on raw material side that you you uh which which worked in our favor this quarter. 34:10 34 minutes, 10 seconds See luckily for us uh supply chain is managed on an annual basis. We've got contracts sometime those contracts uh we are able to deliver higher volume so 34:18 34 minutes, 18 seconds cost comes down and then the next protocol starts etc etc. So to me that's why we gave a guidance saying this this 34:25 34 minutes, 25 seconds quarter we've been able to achieve this which is true for the year. Our goal internal goal is to be able to as close of the yearly number as possible for the 34:32 34 minutes, 32 seconds next year. But realistic guidance is what SH will gave you that that's what we see is sustainable. 34:39 34 minutes, 39 seconds Got it. Second the acceleration on uh store expansion target restaurant expansion target that we have. Now you 34:47 34 minutes, 47 seconds you called out that it's a very volatile environment as we are entering this year. Just wanted to know have we projected in this guidance that let's 34:55 34 minutes, 55 seconds say if this situation had to has to persist for first six months uh this guidance will stay uh intact uh kind of 35:03 35 minutes, 3 seconds factoring for the scenario to prolong this scenario 35:11 35 minutes, 11 seconds the current raw material scenario or or of the LPG and other crisis that you called out which is hurting up one part of the 35:19 35 minutes, 19 seconds demand uh I'm saying have in this guidance. Have we built a scenario that if this persists for let's say for 6 35:25 35 minutes, 25 seconds months uh we we remain committed to this this tour expansion target we will because uh I think these are 35:34 35 minutes, 34 seconds things which are not new to India. Uh I think something or the other always comes up in the in a country like as dynamic as India and I believe this 35:41 35 minutes, 41 seconds volatility is also a friend of businesses if you are able to use it effectively. These are all opportunities. So I don't look at 35:48 35 minutes, 48 seconds changing that. There are levers in our hand. Uh for example, if it it goes up dramatically. It goes up for the entire 35:56 35 minutes, 56 seconds industry and everybody takes up little bit of price increase because of that. 35:59 35 minutes, 59 seconds So so I think we've got we've got more and enough to manage at least for the cost side of it. I'm not too worried. 36:06 36 minutes, 6 seconds our our key goal like AI said uh remains how do we how do we make sure that we deliver more com sales and more growth 36:14 36 minutes, 14 seconds uh with new show opening and as long as that happens the rest will fall in place. Got it. Thanks. 36:24 36 minutes, 24 seconds Thank you. The next question is from the line of Shup Kundan from Goldman Sachs. Please go ahead. 36:30 36 minutes, 30 seconds Yeah, thank you very much for the opportunity. Um your value platform initiatives have obviously given you encouraging results with guest count 36:38 36 minutes, 38 seconds being in mid-s single digit. Um going forward do you plan to accelerate these initiatives? Um um a related question is 36:47 36 minutes, 47 seconds this the 99 value meal maybe other value initiatives that you have have they been completely rolled out or you expect to sort of roll them out further into your network? 36:59 36 minutes, 59 seconds I think like I like I said value is something which is intrinsic to the industry and especially McDonald's 37:05 37 minutes, 5 seconds globally we do the highest highest guest count and sales numbers across the globe because we are a strong value player in 37:14 37 minutes, 14 seconds an omni channel environment right so there are plays which have not yet played out uh you will see us having a lot of exciting stuff coming in the next 37:23 37 minutes, 23 seconds one to two years and value is the work has just started in in our opinion Okay. Okay. Just just trying to ask it 37:30 37 minutes, 30 seconds another way. The there's a gap between uh the SSSG that you've reported and guest count. Um 37:38 37 minutes, 38 seconds so can we expect this gap to further widen or contract or remain the same? Uh is is what I meant to ask basically. 37:46 37 minutes, 46 seconds Yeah. No no so obviously we are working hard because in most cases value platform should not mean dilution of so much but we were very clear we wanted to 37:54 37 minutes, 54 seconds get volume first. We have been volume starved a little bit in the last two years and we have to reimagine our strategy. I think value we have got multiple levers in place to pick it up 38:03 38 minutes, 3 seconds whenever. Uh so we will remain disciplined around whatever we have done and not giving up any further margin than this as far as the product mix is concerned. 38:13 38 minutes, 13 seconds All right. All right. Thank you. 38:18 38 minutes, 18 seconds Thank you. The next question is from the line of Sadhhat from Nafa. Please go ahead. 38:26 38 minutes, 26 seconds Uh hello sir thanks a lot for the you know permission for me to you know raise a question to you. So my question is around that uh in the recent quarters we've seen some you know uh slowdown in 38:36 38 minutes, 36 seconds the you know QSRs space as a whole. So considering the you know recent Middle East tensions and the you know NPG crisis going around what's your 38:43 38 minutes, 43 seconds forwardlooking you know outlook in terms of the trips in terms of you know existing operations. I would just like to have a view on that. 38:51 38 minutes, 51 seconds I think we have been repetitive on this one. Uh we we read what we saw. Uh I think we we did not shy away even when 39:00 39 minutes we had negative growth that these are things of our making and some decisions which we made did not play out the way we anticipated it to play out. Uh we've 39:08 39 minutes, 8 seconds gone back like AI said back to our basics. uh to be able to go back to a model which works globally also and 39:15 39 minutes, 15 seconds replicate that playbook in in India back to basics back to EVM and and we do not 39:22 39 minutes, 22 seconds see with that for platform us not having enough to increase the momentum on the sales sales grow. 39:32 39 minutes, 32 seconds Okay, understood. So is there any uh revenue guidance if you may possibly you know give me a idea on in terms of you know coming up uh 39:40 39 minutes, 40 seconds so we don't give any forward based margins for sure guidance for sure uh but like we would we as as a just spoke 39:48 39 minutes, 48 seconds we would like to go to 3,000 cr as early as possible right so we would like to grow our same store sales growth as early as possible towards mid uh single 39:58 39 minutes, 58 seconds digits Okay, understood. Uh, thank you and you know wish you all the best. 40:09 40 minutes, 9 seconds Thank you. 40:11 40 minutes, 11 seconds Thank you. The next question is from the line of Ashal Punaya from Yes Security. Please go ahead. 40:17 40 minutes, 17 seconds Yeah, thank you. Uh question is on the 40:26 40 minutes, 26 seconds entire voice is little is it better now? 40:39 40 minutes, 39 seconds Yes. Sorry but we have lost the line for Mr. 40:44 40 minutes, 44 seconds Vashal. Participants who wishes to ask a question may press star and one now. 40:50 40 minutes, 50 seconds The next question is from the line of Dan Shubans from MK Global. Please go ahead. 40:58 40 minutes, 58 seconds Yes sir. Hi uh thanks for the follow-up opportunity. Um uh I just wanted to sort of check on this partnership which we have entered with uh gop. 41:10 41 minutes, 10 seconds uh is that also leading to uh this improvement in uh store outlook that we are sharing? 41:17 41 minutes, 17 seconds Uh actually we've got partnerships with HPCL, BPCL and now GOBP. So that is those partnerships are meant to expand 41:26 41 minutes, 26 seconds our footprint on the highways. uh and we've done a we've done a good job as far as Mumbai Kuna Highway is concerned and we see a lot of excess control 41:34 41 minutes, 34 seconds highway comingings in coming in and we want to make sure that we have strong partnership so that we can put the network in but all this was already 41:42 41 minutes, 42 seconds baked in when we had given the guidance of going to 45 to 50 and then now 60 plus. So it's not it will not be basis 41:49 41 minutes, 49 seconds one partner or one place. It is holistic. Uh we do want to have more restaurants in airports. We want to have more restaurants in infrastructure 41:58 41 minutes, 58 seconds growth including malls and highways. So that's one part of the portfolio. The second part of it is we want to continue penetrated markets the six key markets 42:07 42 minutes, 7 seconds like Mumbai, Punea, Bangalore, Hyderabad, Ahmedabad, Chennai that's not going out of flavor. So if we do stores there so it's a balanced portfolio which 42:15 42 minutes, 15 seconds we want to drive and gop is one such partnership in that direction. 42:20 42 minutes, 20 seconds Understood and sir uh just wanted to check on this uh new beverages that have been launched uh uh globally under the 42:29 42 minutes, 29 seconds mag cafe platform. Uh any uh chances to bring those products to India as well. 42:35 42 minutes, 35 seconds There's lot of noise around that. So yeah I think I think global has done a fantastic job. They will also come as a part of global core. We will make that 42:43 42 minutes, 43 seconds choice when we need to. For now we think we have got we've got work to be done as far as the cafe coffee category is concerned in the cafe. Uh it will play 42:59 42 minutes, 59 seconds I would rather give you a guidance that uh we are very closely focusing towards the consumer and we we are taking 43:07 43 minutes, 7 seconds cognizance of this beverage trends amongst Gen Z2. uh but the first play we see is strengthening makafe and coffee 43:14 43 minutes, 14 seconds credential as the most important play as we go and solidify our beverage credentials. 43:23 43 minutes, 23 seconds Got it sir. Got it. Thanks for taking the question. 43:27 43 minutes, 27 seconds Thank you. Participants who wishes to ask a question may press star and one. 43:34 43 minutes, 34 seconds The next question is from the line of Vishal Puna from Yes Security. Please go ahead. Yeah. Am I audible now? 43:43 43 minutes, 43 seconds Yes. Yes sir. Loud and clear. 43:45 43 minutes, 45 seconds Okay. Uh so my question was on MC if you could help uh with MC's performance in 43:52 43 minutes, 52 seconds FI26 uh in terms of maybe revenue contribution or how revenue per store 43:59 43 minutes, 59 seconds per MC has improved in FI26 that would be helpful. And secondly in terms of strategy for MEF going forward. Uh while 44:09 44 minutes, 9 seconds there are many smaller cafes opening up every nook and corner, we also have a 44:16 44 minutes, 16 seconds big QSR now entering the cafe space. Uh so any change in thought process or 44:23 44 minutes, 23 seconds strategy for Macafe going forward or in terms of aggression? 44:28 44 minutes, 28 seconds I think the more the merrier. uh as far as coffee is concerned, coffee is a category which which I think is underplaying right now in India and it's 44:36 44 minutes, 36 seconds got a huge potential to grow. The more people who can work on creating daily habits, the better for us and better for 44:44 44 minutes, 44 seconds coffee business. I think our job we have cut out if you look at it our proposition is differentiated. uh probably we do the best coffee uh in the 44:52 44 minutes, 52 seconds country at a price which is unbelievable and that we do because we want to create a daily coffee consuming habit in the country and democratize the coffee 45:00 45 minutes experience. Uh we want it to continue grow uh we see it as a growth lever even for the next two to three years to come. 45:08 45 minutes, 8 seconds So I I'm not we don't really worry about uh who's coming, who's not coming because coffee scene has been hot pretty 45:16 45 minutes, 16 seconds much with coffee shops etc. Uh from the last 5 years and we have still been able to do a substantial job. I I would argue that in most places we sell more coffees than any coffee shop in the trade area. 45:27 45 minutes, 27 seconds So uh in in in most locations so I'm quite confident of our makafe proposition and I think our job is to democratize and make more people 45:35 45 minutes, 35 seconds habituated to drink everyday coffee in McDonald's. 45:39 45 minutes, 39 seconds Yeah, agreed on the quality part. Uh the product is obviously one of the better better coffees in the market. But in 45:47 45 minutes, 47 seconds terms of maybe marketing initiative, do we need to scale up that part? And also if you could just update on the performance in FI26 in terms of revenue 45:55 45 minutes, 55 seconds or mix uh within the overall uh business. 46:00 46 minutes So on the overall business obviously we don't break it out but all I can tell you is uh the biggest marketing 46:08 46 minutes, 8 seconds work which we which we have done is look at it only from a standpoint of how do we make McDonald's the destination to 46:15 46 minutes, 15 seconds drink their everyday cup of coffee and in that spirit we roll out the subscription in which a makafe beverage is available if you come 10 times in a 46:23 46 minutes, 23 seconds month only for 55 rupees which is you don't have to think twice from a monetary standpoint I think if you're able to 46:30 46 minutes, 30 seconds get the success we want to in that we don't have to worry about anybody else. 46:35 46 minutes, 35 seconds Understood. Yes. Lastly on uh PI's as a platform globally PI does really well uh 46:43 46 minutes, 43 seconds terms of contributing to the meal. Uh any plans to basically add that to our 46:50 46 minutes, 50 seconds uh India portfolio in a bigger way? We obviously had tried in the past but any plans for future? 46:58 46 minutes, 58 seconds Yeah. So on the menu like I said there'll be exciting stuff coming in. Um typically we've got pizza puff which is a savory pie which we sell right now. 47:07 47 minutes, 7 seconds Whether we want to do sweet pie or not I think in the in the priorities we have we need to ruthlessly prioritize what will really give us results and that's 47:15 47 minutes, 15 seconds something which we are which we are working towards and then working with consumers to be able to say what will work and uh and you will see that 47:22 47 minutes, 22 seconds happening in the marketplace and you will see exciting news even on menu from us. Okay. 47:29 47 minutes, 29 seconds Uh just lastly appreciated uh the recent marketing initiative regarding the zippers and the tote bags. I think uh it 47:38 47 minutes, 38 seconds did really well. It was out of stock across all stores. I couldn't find it anywhere but uh kudos to the team for that. 47:46 47 minutes, 46 seconds Thank you. 47:47 47 minutes, 47 seconds Thank you very much. You should chop to simp. We can send you the zipper and tote bag in advance when it comes next. 47:53 47 minutes, 53 seconds Okay. Sure. Sure. I'll definitely do that. Yeah. Thank you. Done. Thank you. 48:00 48 minutes Thank you. The next question is from the line of Tja Sha from Aend Spark Institutional Equities. Please go ahead. 48:06 48 minutes, 6 seconds Hi. Uh thanks for the follow-up uh opportunity. Uh so just one question and and this is uh one at industry level and one at our level. So uh at a very 48:15 48 minutes, 15 seconds broader level QSR industry actually started massification or focus on value segment uh post covid revival phase. Uh 48:23 48 minutes, 23 seconds so do you believe that from competitive landscape we have hit the price point uh in terms of where uh where it doesn't 48:30 48 minutes, 30 seconds make sense to go further below so that a mix at industry level should not deteriorate from here that's one uh and it could be this could be conexture 48:38 48 minutes, 38 seconds answer also uh second is actually in our mix also uh from price point perspective do you think that we have reached to a 48:46 48 minutes, 46 seconds stage where further democratization won't happen at least on the pricing part and uh on in And and on in terms of 48:54 48 minutes, 54 seconds roll out also uh do you believe or or do you do you read that it has actually reached an optimum mix in terms of where you would like it to settle down at? 49:05 49 minutes, 5 seconds I would like to believe that India is growing per capita income in India is growing. So what we have currently is a great value proposition for the 49:13 49 minutes, 13 seconds consumers. uh the first question will be for how long should we hold this to make sure that we keep unlocking u the 49:20 49 minutes, 20 seconds consumer base of India too which we want to u to me that's the bigger question rather than us being able to say this is 49:27 49 minutes, 27 seconds optimum not optimum because see what value means keeps changing immediately after covid uh when we created even the 49:34 49 minutes, 34 seconds vision 2027 a large amount of assumption was big burgers will play a big role while it's not all it's not exactly played out it did a great job there's a 49:42 49 minutes, 42 seconds base which we have set up and the base has remained pretty much consistent. So uh when I look at value I think it's it's these are cycles. These are promix 49:50 49 minutes, 50 seconds play. I think I I'm very sure that after value will at some point in time we'll go to core then we'll go to premium then come back to value. These are all cycles 49:57 49 minutes, 57 seconds which will play out as they have played out in the past. 50:02 50 minutes, 2 seconds Sure. And then from your past read through usually uh what are the like approx number also what are the tenure of that cycles? 50:12 50 minutes, 12 seconds cycles. 50:14 50 minutes, 14 seconds Yeah. So see depends on activity that cycle I can't predict because when there is lot of information flowing through cycles 50:22 50 minutes, 22 seconds last one year sometimes cycles last seven years also when we did branded affordability that a cycle was seven years then we became premiumization that 50:29 50 minutes, 29 seconds lasted for almost four five years then it shortened just before covid it was almost two three year cycles. So what will it now be depends on what people 50:38 50 minutes, 38 seconds are feeling and therefore we need to keep very close watch on what the consumer is thinking what the consumer is going through you know there could be fatigue in when every day every 50:47 50 minutes, 47 seconds everybody's streaming new new things there could be a fatigue and people might go to go back to classics for that we need to always be listening to the 50:54 50 minutes, 54 seconds consumer and create strategy accordingly I would not predict the tenure of things but all I'm saying is I'm saying nothing 51:02 51 minutes, 2 seconds goes out of fashion it always comes Totally agreed. Thanks and all the best. Thank you. Thank you. 51:10 51 minutes, 10 seconds Thank you. 51:12 51 minutes, 12 seconds Participants to ask a question may press star and one. 51:25 51 minutes, 25 seconds As there are no further questions from the participants, I now hand the conference over to management for closing comments. 51:34 51 minutes, 34 seconds Thank you so much everyone and we look forward to seeing you next quarter. Thank you. 51:41 51 minutes, 41 seconds Thank you on behalf of West Life Food World Limited. That concludes the conference call. Thank you for joining us and you may now disconnect your lines. Thank you.