Kewal Kiran Clothing Limited (NSE: KKCL) Q4 2025 Earnings Call dated May. 13, 2025
Corporate Participants:
Unidentified Speaker
Hemant Jain — Managing Director and Marathon Capital, Investor Relationship Advisor
Analysts:
Unidentified Participant
Tejas Shah — Analyst
Manasvi Shah — Analyst
Laxminarayan KG — Analyst
Pritesh Chheda — Analyst
Viraj Mehta — Analyst
Priyank Chheda — Analyst
Surya Narayan Nayak — Analyst
Vaishnavi Mandhaniya — Analyst
Keshav Garg — Analyst
Deepak Lalwani — Analyst
Abhijit Kundu — Analyst
Giriraj Daga — Analyst
Siddharth Purohit — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to K well Kiran Clothing Limited Q4 and FY25 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing then zero on your touchstone phone. Please note that this conference is being recorded before we begin a brief disclaimer. The presentation which K well Kiran Clothing Limited has uploaded on the stock Exchange and their website, including the discussions during this call, contains or may contain certain forward looking statements concerning K well Kiran Clothing Limited business prospects and profitability which are subject to several risks and uncertainties and the actual result could materially differ from those in such forward looking statements.
I now hand the conference over to Mr. Heman chain joint MD Cable Kiran clothing. Thank you. And over to you sir.
Hemant Jain — Managing Director and Marathon Capital, Investor Relationship Advisor
Thank you. Good morning everyone. It is our pleasure to welcome all the participants to the earning conference call for Q4 and financial years ending 2025. Joining me on this call, Mr. Pankaj and President Retail and Marathon Capital, our Investor Relations Advisors. I hope everyone had an opportunity to go through our investor presentations and result release that we have uploaded on the exchange and our company’s website. Financial year 2025 marks a significant milestones for our company with the consolidated operating revenue surpassing rupees thousand crore mark. This achievement underscores our relentless pursuit for growth and excellence. As we build on this momentum, this milestone lays a robust foundation for our future endeavors positioning us for the sustained success and further expansions before diving into Q4 and FY 2025 performance.
As mentioned during our previous CON call, we would like to outline Our roadmap vision FY 2028 driven by our management strategic directions, this framework underscores our ambitions, key priorities and strategic initiatives providing context for our future growth tragedy. India fashion market is evolving rapidly and KK7 is poised to lead these transformations with a clear vision to reach 1,500 crore revenue by FY28 while maintaining healthy operating margin between 17 to 18%. We rebuilding a high growth capital efficient business that the balance deal with sustainability. Retail will remain at the core of our expansion strategy. We aim to grow our EBOs from 609 to over 900 coupled with deeper penetration in Tier 2 and Tier 3 market through cost effective format like SIS and AMBOs.
While our large format stores presence will continue to expand in premium zones. In parallel, E Commerce will become a strong growth engine through Digital first consumer engagement and AI driven personalization. Product wise we are scaling from being dominant menswear post to become your full lifestyle house. While denim and casual wear will continue to anchor our portfolio, we are actively growing into women’s wear, kids wear, athleisure and accessories, building wardrobe ownership across categories and consumers. What truly sets KKCL apart it is integration of in house manufacturing strength with emerging technology. Our brownfield expansion plan will enhanced capacity with AI led forecasting.
Smart inventory planning and digital trend mapping will bring us closer to our consumer with precision and speed. Financially discipline will continue to define us. With a sharp target of working capital cycle of 125 to 135 days and strong internal accruals, we will fund growth while protecting profitability. We are also actively exploring inorganic opportunity to enter new categories or acquire strategic brands. Internationally we see significant export potential for our flagship brand like Kila and Cross especially in market with a strong youth and Diapora Connect. By 2028 we aim to establish ourselves as a creditable Indian fashion voice on the global stage.
We at KKCL are set to redefine the way we design for our consumer. Today the biggest challenge that the industry faces is to predict the right consumer demand. Forecasting what is going to keep our consumer interest interested and define their fashion age is what would be our top priority. At KKCL we are evolving beyond traditional consumer insight, leveraging our rich history of understanding our consumer to anticipate their needs. Now we plan to take a step further by predicting personalized preference for special occasions as as well as everyday wear, ensuring our offerings resonate with their unique taste and lifestyle.
Today, consumers are seeking products tailored to their unique preference and will not want to buy what you make. By adopting generative AI tools, KKcell aims to deliver customized solutions that progressively meet individual consumer needs, ensuring a more personalized and satisfying experience. Further revamping of strategy for Lomen brand is an integral part of this roadmap, ensuring group robust presence across the entire fashion spectrum. Evolving LMAN as a fast fashion D2C brand, shifting from a me to approach to a distinct identity coupled with expanding EBO strategy would help in driving quicker engagement with our end consumer. Further, with higher integration of our women’s casual focus cross brand and growth of our kids wear for boys focus Junior killer brand coupled with a winding product offering will be key enable for us to achieve the target revenues.
Our vision is clear to transform KKCEN into a future ready omnichannel multi category fashion powerhouse that reflect the aspirations of New India and command respect across consumer investor and global peers. Unlike growth fueled purely by discounting or capital burns, Kishal’s model is fundamentally sustainable. We have built this company on unit level profitability, prudent capital allocations and working capital discipline and that DNA will define our next lead on the performance from the quarter ending FY 2025. It is hurting to see the strategic initiative playing out positively resulting in a robust growth of 31% year on year for Q4 Q4 FY25 with EBITDA margin of 18.1% within our guided range.
The resultant of our effort especially toward improving our inventory management practices coupled with successful integration of Cross Casual have helped us to achieve an annual growth of 16.5% in FY25 in our operating revenue which stood at around 1003 crores with EBITDA of 19%. Our growth momentum was not only fueled by consolidation of Cross reflecting the effectiveness of our strategic initiatives but also on the back of strong volume expansion. Even on standalone basis, we deliver positive double digit volume growth in April showcasing the effectiveness of our design capabilities. In line with our policy to widen our presence through brand led evos, we have aggressively added stores through the financial year resulting in a net addition of 121 EVOs across our key brands and the tally stand at 609 EBOS as on 3-31-2025.
With the encouraging response to our trade show for autumn winter 2025 collection of Killer IG’s Cross and Junior Killer brand, we are confident in achieving robust growth in the coming financial year with a clear laid out pathway of growth. We will continue to diversify our product offering, leverage the lifestyle appeal of our brand and strengthen our position as a leading lifestyle category to all genders and ages. With this I would like to conclude and open the forum for questions.
Questions and Answers:
operator
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 their touchtone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Tejas Shah from Avendes Park. Please go ahead.
Tejas Shah
Hi, thanks for the opportunity. Am I audible?
Hemant Jain
Yeah yeah please yeah.
Tejas Shah
Hi sir, you have guided for 1500 crore revenue by FY28 from thousand odd in FY25. So just wanted to know what are the key growth drivers? Will it be volume led pricing, new formats or geography expansion? How are we Planning to reach there.
Hemant Jain
So okay. We have forecasted that all our brands will have a separate strategy. Okay. Killer being on the automote perspective it will be led by volume as well as the price growth structure Cross. Okay. There are lot of channel which are yet to be explored. So there will be a channel expansion going on there. And Loman and integrity would be more LFS LED and Lowman would be more D2C perspective.
Tejas Shah
Okay. Okay.
Hemant Jain
Next three years we are planning to open 900 stores increase the stores all channels online channel or other channels. So all put together hamit achieve next three years May pandraso crore karangi. We. Will achieve in 2025 we will achieve thousand crore and we will maintain the EBITDA of 17 to 18% and we achieve that our goal.
Tejas Shah
Perfect. Perfect. So he will just wanted to know that EBO expansion what you spoke about 600 to 900 will it be mix of evo and sorry Coco and four four or will it be only.
Hemant Jain
75 to 80%?
Tejas Shah
Perfect. And second point on that. So usually like. Obviously expansion is a very good strategy there. But are we doing anything to increase the square footage the revenue throughput per store or per square footage of the existing store? So what are we doing to increase. The full effect of the brand? Push is clear.
Hemant Jain
6 to 6.5 to 7%. See end of the day you need business or Apka Paisa Banachi stores open Gar KB Osakta or Kanjambi junior B Agay Abi features departmental stores we open it all depends or Kahape. So if you are asking me for an SSG growth I like to like retail format. Growth in the last quarter has been close to around 13%.
Tejas Shah
Wow. That. That’s very healthy. Perfect. That’s all from my side and all. The best for coming quarters.
Hemant Jain
Thank you.
operator
Thank you. The next question is from the line of Manasisha from ICICI Prudential amc. Please go ahead.
Manasvi Shah
Yeah. Hi sir. Am I audible?
Hemant Jain
Yeah.
Manasvi Shah
Yeah. Hi sir. Two questions. One is on working capital. So you know if I look at your inventory and get to the. They have significantly increased, you know versus last year. So how should we think about working capital going ahead? And like what are the key reasons for this increase? I’m sure cross acquisition would be one of them. But like how should we think about working capital?
Hemant Jain
I. I understand Mansi. Okay. There has been a growth in the working capital value structured as well as the number of days. We feel that going forward it will stay between 125 to 135 odd days. Basically the reason for growth in the working capital has been one because of the cross integration where the working capital cycle is higher as compared to K. Vkiran. That’s one. Secondly, you are comparing at the base of last year’s number where the absolute inventory was around 82 crores which has drastically increased reach this year.
Manasvi Shah
So 125 to 35 networking capital. That is the number that we should leave.
Hemant Jain
I feel that we’ll be able to bring cross working capital also to that limit. Okay. But it will take at least two quarters to do that.
Manasvi Shah
Okay. Okay. And so on. My second question is related to the land parcel. So you know you had made exchanges in your articles of association. Is this clear? Is this clear?
Hemant Jain
Yeah, tell me.
Manasvi Shah
Yeah, sorry I was. The second question was regarding the land parcel and you know you had made changes in the articles of association. I think 2/4 back related the same. Any updates on you know, potential land sale or anything like that?
Hemant Jain
There is no intention of land sale as of today. Okay. We have already acquired it so that. Okay. The head office could actually be shifted to that line parcel. And the current property where the head office is. We could explore the opportunities for the current property.
Manasvi Shah
I’m talking about the current property which was where the current headquarters are before we.
Hemant Jain
So if you see that. Okay. Last quarter. If you’ll see that we have already acquired one of the land parcel which is closer to the current head office.
Manasvi Shah
Okay. So like.
Hemant Jain
And then monetize the current land parcel.
Manasvi Shah
So any timelines for that?
Hemant Jain
It is too early to say construction. It will take some time. But we have already in discussion with lot many people regarding how to go ahead with it. So. So. Right. But I will not be able to comment till things get free stuff.
Manasvi Shah
Okay. Okay. Thank you so much.
Manasvi Shah
Thank you. Thank you.
operator
Thank you. The next question is from the line of Lakshmi Narayan from Tunga Investments. Please go ahead.
Laxminarayan KG
Thank you. I hope I’m audible as always has always been known for low discounting and also managing low inventory. Now I think there has been little flexibility on that in the last one or two years. Can you just talk about what has been your 100%? I mean what has been the discounted sale in the overall scheme of things. And then there has been a increase in the inventory as we see in the balance sheet. Just talk a bit more about it. Is it one off or how you think about it? Because you answered for the previous participant on working capital.
Just want to understand that
Hemant Jain
firstly. Okay. We. You see. Okay. From last year comparison Scenario. Okay. A year before the inventory was up to the trade and we were able to match our targets. Last year we tried to reduce the inventory to go on a real time basis, which we felt that okay. We could not achieve. And that’s the reason the inventory cycle, inventory has gone up. That’s one of the reasons. Secondly, is that okay. Because of the consolidation of. Also the inventory cycle looks on a higher side. Okay.
Laxminarayan KG
And. And what is the normalized inventory date you would actually expect and by when it would actually come to that level?
Hemant Jain
We feel on. Okay. The working capital it should stay between 125 to 135 days old.
Laxminarayan KG
Okay. Yeah. On the first one in terms of. Discounting,
Hemant Jain
first question when you asked. Yes, we have in little. We had our norms relaxed in terms of discounting. So we do do discounting and participate in the discounting aspect. But still our fresh sell throughs have been more than 60%.
Laxminarayan KG
Can you just tell me how it has moved in the last two, three years? So this year it is at 60% than last year what it was in the previous year.
Hemant Jain
The discounting percentage may vary but okay. Sell throughs have been similar to 60%.
Laxminarayan KG
The second question is. I mean the third question is in terms of cross acquisition, can you please highlight the areas where you are positively surprised and where you think. And what are the areas where you think after the acquisition you think there is lot of scope of improvement.
Hemant Jain
So we feel there has been a successful integration. Okay. Where there was a robust sale of close to around 160 or 2 odd rows for this 9 month period. When we acquired it, it was close to 175 for an annualized basis. First focus was increasing the EBITDA margins and we feel that it has aligned with our group targets closing to around 16 to 18%. Okay. We have been able to introduce or okay. On a cross index put more markets for the current year. Okay. We have also started working on widening its distribution in the distribution channel.
The next phase. Next phase would be on realigning or refining the working capital limit there.
Laxminarayan KG
Got it. And I see that you have around. 12 to 13 stores in Cross. What do you. What is your plan to enhance that reach?
Hemant Jain
Yes. Okay. We have seen that there is a significant. Okay. In fact, the retail numbers looks very exciting for Crush. Okay. So going forward with the number of stores, there will be a healthy number of stores improvement in a vision perspective. Also, if you’ll see that we have seen that in next three years at least there should be at least close to around 50 odd stores for cross.
Laxminarayan KG
Got it. And just from the outlook point of view in the near term and the little long term, how do you think as we stand now the year would look like for you in terms of volume growth or value growth?
Hemant Jain
Market positive basis? April, the sale as AMLO treasury map was very good. So I am thinking.
Laxminarayan KG
Okay, thank you sir and wonderful to see good numbers. You know, despite having a large acquisition which you have done. Thank you so much. I’ll come back in.
Hemant Jain
Yeah. Thank you sir.
operator
Thank you. The next question is from the line of Pritesh Cheddar from Lucky Investments. Please go ahead.
Pritesh Chheda
Yeah. Hello sir. Sir, I didn’t catch your comments on working capital where you’re now saying that your revised working capital days will be 125 days. Just that you know for when, when before the acquisition. If I take last 8, 10 years average then it used to be about let’s say 80, 90 days. So is it that even the original base business of killers even there the working capital has changed or the whole change is because of the equation from whatever the revised 125 days that you’re talking about. Business. Without inventory?
Hemant Jain
Answer again. If I look from a FY19 scenario, working capital have always been above close to around 120 odd day scenarios.
Pritesh Chheda
When you say 120, what you do you take debtor plus inventory only. What you guys do.
Hemant Jain
Inventory less creditors.
Pritesh Chheda
Okay. In cross is there a higher working capital risk?
Hemant Jain
Yes, there is. Close to your days.
Pritesh Chheda
Okay, my second question is on your slide 10. So when you look at your slide 10 there is a very good volume growth but there is a pricing decline.
Hemant Jain
Yes.
Pritesh Chheda
So this pricing decline is to do with the cross coming in the mix. Right.
Hemant Jain
A lot of factors. One is okay, the accessories contribution has increased, that’s one. Secondly, the category mix has changed, that’s two. Third, the brand mix has changed a bit, that’s three. And cross integration, that’s four.
Pritesh Chheda
Okay, so can you tell on the volume growth on the volume quantity sold what will be KKCL’s volume growth? So if you just remove cross out of this and one can understand your base business volume growth.
Hemant Jain
The KKCL standard on volume growth was around 15%.
Pritesh Chheda
Okay. Okay. The other question is on KKCL and the just in time impact, the production schedule, the delivery that you are you had done and in the start of the year you had said that because of which our growth has slowed down. So when I come to this quarter, also the standalone growth is just 6%. So that impact is still experienced or when should we see KKCL standalone growing Double digit.
Hemant Jain
Quarter one, quarter two was minus quarter three is flat and quarter four is just 5 to 6% growth. Without inventory we cannot work.
Pritesh Chheda
Okay. And you have got your manufacturing capacities in place?
Hemant Jain
Yeah, yeah, very much.
Pritesh Chheda
Okay. And my last question is on Killer Junior. So what portion of your revenue today is Killer Junior? And for the next three years when you talk about a 1500 crore revenue what should be the size of Kila Junior business.
Hemant Jain
It’s been a first year for us. Okay. But we have seen positive attraction from most of our clients. Okay. Since it’s already been two years, numbers. Okay. Projected growth structure. Okay. It’s too early to comment on it. Next year definitely we’ll come up with our targets for this category also.
Pritesh Chheda
So these are separate stores or they gonna be available within the killer stores?
Hemant Jain
None of them are available in killer stores. Hardly. Maybe one or two on an experiment basis where the size store is bigger. But the most major concentration is embryos and lfs.
Pritesh Chheda
Okay. Embryos and elephants. Okay. Okay. Thank you very much. All the best you said.
operator
Thank you. The next question is on the line of Viraj Mehta Please go ahead.
Viraj Mehta
Yeah. Hi sir. What I wanted to understand is over last two years we have changed our working style in terms of. If I look at our history we were looking at much higher margins. Now we’re looking at much lower margins of 18 19% compared to our own history. Even at the industry level it is still very respectable. When you talk about 15% compounded growth over next two years, would there be again a trade off between margins and growth? If the. If the. If the growth of the industry does not revive and if that will be the case, what will be the option you will choose?
Hemant Jain
So if you see that. Okay. Our vision perspective says that our operating margin will stay between 80, 18 to 19%.
Viraj Mehta
So you.
Hemant Jain
So if there is. If there is a market demand, if there is a subdued market sentiment which is going on, the market will be still chasing growth as compared to our margins.
Viraj Mehta
Okay. Now that. That answer my. Answers my question. Thank you.
operator
Thank you. The next question is from the line of Sharia from Ajay Partners. Please go ahead. Yes sir.
Unidentified Participant
So you mentioned in your commentary regarding some brownfield expansion. So can you elaborate upon that? Hello.
Hemant Jain
Yeah.
Unidentified Participant
Hello.
Hemant Jain
Yeah. Yeah, go ahead.
Unidentified Participant
Sir, in your commentary you mentioned about brownfield expansion. So could you elaborate about that?
Hemant Jain
Just a minute.
Unidentified Participant
Yeah.
Hemant Jain
Jesse. Expansion current is the dominant Wapi. Business. Bananas, upco, back end pay, production capacity. Every day is all put together. All the categories around 25,000 pieces.
Unidentified Participant
Okay. And what is the cost of this expansion?
Hemant Jain
Normally we say year on year. Capex Malaguea.
Unidentified Participant
Okay. And so one. One more question. So your current margins are around 19%. And you’re saying like in FY28 the range will be around 17 to 18%. So. So is this a conservative estimate or we expecting like a dip in mar.
Hemant Jain
So Xanagara Nietzsche.
Unidentified Speaker
Answer your question. We’ll be chasing growth as compared to our margin structure. So we have given an estimate based on that only.
Unidentified Participant
Okay. Okay. Okay sir. Thank you.
operator
Thank you. The next question is from the line of Priyank Cheda from Vallum Capital. Please go ahead.
Priyank Chheda
Yeah. Hi sir. I wanted to know about the performance for FY25. Brand wise integrity lawman and going ahead saying 1500 crores of sales vision Konse brand would take the faster growth pace and the priority and what are the strategic actions required in each of the brands to be done normally.
Hemant Jain
Still today the cleaner is the flagship brand of the company. So our major focus is on killer. Integrity is the value. So we say and we will the integrity brand come widely in embos or lfs. So all put together mix wise at the Lawman brand. So all put together killer junior expansion. Mode. Consolidations vision and next three years 1500 crore. And we will going to achieve that the focus is on growth.
Priyank Chheda
Sure sir, we understand that. In case if it’s possible, any comments on how pillar or integrity or lawman has worked out in the whole year would be great.
Unidentified Speaker
Okay. It contributes more than 60% is what I can give.
Priyank Chheda
Yes, sure. Okay sir. Thank you.
operator
Thank you. The next question is from the line of Surya Narayan Nayak from Sunidi Securities. Please go ahead.
Surya Narayan Nayak
Okay. So sir, I was just looking at the realization pattern and where we are seeing that you are. We are actually chasing more of the growth on the value side. So resultantly the. The gross margin is not inching upwards but not downwards. And as you said the killer is in autopilot mode. But if you derive the genes, you know volume let’s say in the revenue stream. So it is nearly remaining stagnant. So and browser segment is actually rising. So in this context what I understand is you know are we facing the competition from the value retail so that now you have more focusing on the integrities and all the value brands rather than the premium brands like Aziz and Taylor.
So and when. When can we expect the. The upward trajectory in the gross margin Maybe up to 45% or so or let’s say 43% has been the highest. So is there any chance in couple of years.
Hemant Jain
Okay. Current year if you Definitely there has been a shift in consumer preferences and the preferences was more towards cargoes and athleisures and that’s the reason denim was facing that pressure. Okay. But I feel okay, it has normalized now. Okay. And denim should perform better in the current year perspectives. Okay. Comparing it with the value format. I would not say there has been a shift over in the category because of the price bracket. Since there has been a shift in the category mix. That’s one of the reasons where the gross margins have got impacted. If there has been.
If the category mix definitely improves improves on the better side in terms of denim wear. Okay. There’ll be a better off in terms of gross margins but not to the extent of 45 or 46%. Close to around 40. 42, 43 is a reasonable number which we like to estimate at.
Surya Narayan Nayak
Okay. And. And especially when there is there has been some realignment with the admin expenses versus the the staff cost also. What can you just clarify on that point?
Hemant Jain
Hello, I didn’t get your last question. What did you ask?
Surya Narayan Nayak
So that there has been some change alignment with this. I believe there is a change between the staff question admin expenses whereas administrators admin expenses has dropped. Whether staff expenses rise. So. So is there any you know alignment changed or were the no change in alignment?
Hemant Jain
There is no. There’s not been any change in alignment. Yeah. At the admin expenses. The. The admin expenses have gone down majorly because there was recovery of some old debtors and some legal expenses and professional fees.
Surya Narayan Nayak
Okay. And when we are actually planning from 609 evos to 900 plus evos by 28 so obviously we. We will be more of focal heavy. So obviously the ROU assets will be lagging. So.
Hemant Jain
If you. If you look at the number structure killer was increasing on an overall basis. Okay. But strategy is not yet planned in that way that there will be more cocoa. We will still focus to have four fours. Okay. But in case if we have to go more mall driven structure it will be more cocoa driven. So because of Coco with the the return on the return value on the assets will decrease. I would not put it as a statement.
Surya Narayan Nayak
Okay. Because you know you. We. We are not getting the geographical presence as of now because penetration. So can can I conclude or let’s say infer that the this the share of premium goods is not available unless we are not present heavily. And that is why we are able to push more of the value little goods. So that is why we are suffering the realization.
Hemant Jain
I wouldn’t agree to that. Also Killer being a more denim wear it Core competition lies around most of the Indians and international brands. Okay. And it has been growing as well as the contribution of it is more than 60%. So I don’t think. Okay, the the inference which you are making is absolutely true.
Unidentified Speaker
Okay answer. Because you know the number.
Hemant Jain
The demand is that only.
Surya Narayan Nayak
Now that no, I don’t want to name the competitors but a lot of value retailers have come and because that is the reason why we could be facing difficulty in pushing the premium products. So that is why the sales mix is getting adverse. That is my inference. And second the mid price segment brand.
Hemant Jain
And mid size mid premium brand available all over India category or mix change.
Unidentified Speaker
And I would agree with them that. Okay. Yes the value players have done better this season and that’s the reason we have also realigned a strategy for one of the brands of us. We have not changed any strategy for killer.
Surya Narayan Nayak
Okay. Okay. But now in going forward this kind of value of growth phasing or there’s a volume phasing will be there for a couple of years. Can we expect the sacrifice of the. Price we are chasing?
Hemant Jain
See, it depends. Discounting is an end result of the sales season carried forward. So anything which gets left over. Okay. So if the market is sentiments are low scenario discounting percentage goes higher which impacts your realization. We have definitely been chasing volume growth and which we have been able to achieve this year also.
Surya Narayan Nayak
So can you expect improvement in the realization this year?
Hemant Jain
We are hopeful for that and we have. We have seen that. Okay. April, May the sentiments were better. So definitely we can. You can estimate that it should be better.
Surya Narayan Nayak
Okay. And sir, progressively we are adding more of the four stores or the right of use assets are also rising. So and their sope. So is the depreciation. So. So what kind. What kind of not less a depreciation figure you we can expect for 25.
Hemant Jain
26 and 27 mostly because of the amortization of the. The good goodwill value.
Surya Narayan Nayak
Okay so it is. It is not due to the right of use assets.
Hemant Jain
No, no it’s not
Surya Narayan Nayak
because the the net block has also increased and the others. I believe the right of use justice might region.
Hemant Jain
Sorry, I didn’t get your last question again.
Surya Narayan Nayak
Hello.
Hemant Jain
Yes.
Surya Narayan Nayak
Am I audible? Yeah. Am I audible?
Hemant Jain
Yeah.
Surya Narayan Nayak
Yeah. I. Yeah. The net block also increased. So I believe one of the. Along with the manufacturing capabilities, you know the right of use assets also have increased. So that has Led to some some kind of depreciation. Maybe some amortization part from the, you know, good deal part also could be.
Hemant Jain
There because of amortization. And yes, we have opened little bit of cocoa stores and that fixed assets I have added in the network.
Surya Narayan Nayak
Okay. Okay. Okay. Thank you sir.
Hemant Jain
Thank you.
operator
Thank you. The next question is from the line of Vaishnavi from Anandrati. Please go ahead.
Vaishnavi Mandhaniya
Hi. Thank you for taking my question. I wanted to understand how is the competitive scenario now in the mid premium denim segment so with other branded players such as pepe Lee, Ranglo, etc. So how is the competitive scenario for those players as well? Now.
Hemant Jain
I won’t be able to comment how they have been doing but I have not seen much of the price decrease in their current season also.
Vaishnavi Mandhaniya
So have they also been adding more aggressive ebos or has there been any change or exit in any of these players or how have moved from that scenario?
Hemant Jain
None of the players have exited. Everyone is reworking on their strategy. Okay. And I don’t feel that we have been facing too much of competition. If that would have been the case, growth for the current quarter would not have been around 13%.
Vaishnavi Mandhaniya
Okay. Okay. And also you mentioned that we will look for any inorganic growth opportunities as well. So any wide gaps in the portfolio that you see that you want to. Fill or
Hemant Jain
if you look at the vision statement, there will be a lot of vacuums there.
Vaishnavi Mandhaniya
So can you please elaborate on a few of those categories if possible?
Hemant Jain
If you look, we have given a statement or a chart where it shows menswear and kid wears on boys and girls. Somewhere we are already present and somewhere we are already pivoting and there is a vacuum. So anything which falls on the pivot or maybe with the vacuum side definitely will be happy to explore. Okay.
Vaishnavi Mandhaniya
Okay. Thank you so much.
operator
Thank you. The next question is from the line of Keshavgarh from countercyclical pms. Please go ahead.
Keshav Garg
Sir, I’m trying to understand that out of the breakup of various denim and garments and accessories etc, which all are we. Which all categories are we manufacturing in house and which are we outsourcing
Hemant Jain
85%. On on the apparel side. Okay. 85% of the business we are manufacturing in house. Okay. Winterwear and knitwear as a category, we export, we trade. That’s one. All the accessories categories we are just reading.
Keshav Garg
Okay. So so basically winter wear and accessories we are buying from outside.
Hemant Jain
Okay. Network. Yeah. Yeah.
Keshav Garg
Okay. Sir, also I wanted to understand that, sir, if we see then in over the past three, two years from FY23 the realizations have gone down from 700 to 595 per piece. Now sir, going forward sir, you think again we can go up to near 700 or it will stay at this level or this trend will continue.
Hemant Jain
Saying the realization is a mix of everything which includes apparel as well as accessories. That’s one. It’s a mix of category mix and a brand mix. So all. All three aspects impact the absolute realization.
Keshav Garg
Right sir. So what is your expectation that what. What sales mix are you expecting.
Hemant Jain
Going forward? Realization should definitely improve. That’s our estimate for the current year.
Keshav Garg
Okay? Right sir. Answer. Also sir, I’m trying to understand the wisdom of running multiple brands. So because if you see then for example Jockey has just one mother brand and then they have multiple categories but they sell everything under Jockey brand sir. So whereas sir I my guess is that had we killer brand would be having far more margins versus your other lawman integrity etc and I feel the working capital days also might be lower for Killer versus the other non core brands. So why not just focus on this killer brand and make it big rather than run multiple brands, keep multiple skus inventory and then the pricing is also lower since those are not as well established brands as Killer.
So what are your thoughts on that?
Hemant Jain
We are trying to establish KKCL as a house of brands. Okay. Killer. Catering to a premium segment scenario. Easy. Catering to a semi formal brand. Okay. Lawman. We’re trying to make it more D2C integrity. Middle price bracket cross would be more woman wear focused. So every brand focus to either one of the gender structure or the price structure.
Keshav Garg
Answer. All of these brands are profit making.
Hemant Jain
Yeah.
Keshav Garg
Answer. In our consolidated balance sheet there’s a 131crore approx. Other intangible assets. So I’m not able to understand that. We acquired 50% of this cross this company. And so then how come. So it is showing us goodwill over the network. So now what is this other intangible asset?
Hemant Jain
It’s the difference between the the value paid against the net assets.
Keshav Garg
Right sir. So that is goodwill of 119 crore. Then what is other intangible asset?
Hemant Jain
So other intangible assets includes. Okay. Lease rights, brand and trademark, manufacturing agreement and software.
Keshav Garg
Okay, Answer. Any plans to acquire the remaining 50% of this cross?
Hemant Jain
Nothing for first five years.
Keshav Garg
Okay. And property plant equipment has also increased from 97 crore to 172 crore. So I mean what. I mean it’s almost double. So what have we spent this money on?
Hemant Jain
Current. The current asset which we have Acquired. Okay. A land parcel which is close to the head office scenario to ship the head office and monetize the current property where the head office is.
Keshav Garg
So what kind of expectation, the current monetization of the current property? Any ballpark number.
Hemant Jain
See we are exploring that possibility of what numbers can actually be arrived at. And on the negotiations also.
Keshav Garg
Answer what’s the size of the property?
Hemant Jain
Which one?
Keshav Garg
Your current head office that you are planning to monetize.
Hemant Jain
If all put together is around 7,000 meters and we have I think.
Keshav Garg
5.5 lakhs. Answer by when are we expecting this?
Hemant Jain
It’s too early to say anything. The construction office will shift over there. Then we will think.
operator
Sorry to interrupt you sir, but I may request you to rejoin the question queue.
Keshav Garg
Yeah. Thank you.
operator
Yes, ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. The next question is from the line of Deepak Lalwani from Unifi Capital. Please go ahead.
Deepak Lalwani
Hi sir. Thank you for the opportunity. So first question on your long term margin target. So where do we see to spend these extra margins that we’re earning today? Is it, is it going to be through extra discounts and schemes or is it going to be investing in channel like EBO expansion or is it going to be on advertisements? So today we are making 19%. Our endeavor is to you know, spend 100, 200 basis points extra. So going forward we’ll be doing 17, 18. So that I’m talking about, it’s an.
Unidentified Speaker
Estimate which we have given if anything which adds value which will spend on marketing and marketing can be in both aspects. Atl, BTL or maybe in terms of cocoa stores.
Deepak Lalwani
Okay, sure. And secondly, you know the finance, on the finance cost, is there any, is there any measures that we’re taking to maybe bring down the loan that we have on the books because we also have a lot of cash. So do we plan to bring down the book? The loans on the books and also the other income piece has been quite volatile. So any plans to monetize the shares of the listed company that we own?
Hemant Jain
We already did. About the cost value structure. Okay. Looking at the market scenarios as it feels feasible. Okay, we’ll try to explore that. Okay, that’s one, two. Okay. It was, it’s been volatile only because. Okay. It is right now currently M2M. Okay. Because the company got listed.
Deepak Lalwani
Okay. And on the finance cost, sir, any plans to reduce finance cost, reduce loans?
Unidentified Speaker
You look at the figure last year with two aspects. The inventory Levels have doubled almost. Okay. As compared to a last year scenario. And there was a acquisition. So two aspects. It led to an increase. We don’t feel forward. It will keep on increasing and okay. We’ll be reducing in a phased out manner.
Deepak Lalwani
Understood. And last question on your revenue acceleration. The standalone business has grown by 7%. So assuming that the production issues are over, you know we still see that the genes and the MBO segment growth was on the lower side. So what gives you the confidence to grow it double digit going forward?
Unidentified Speaker
Two reasons. One, okay. There is not been much of inventory in the. In the entire cycle. Okay. So we feel the secondary sales have been adequate up to our expectations for the month of April and May. And that’s the reason we feel that. Okay. The next quarter is going to be good.
Deepak Lalwani
Okay. And both the issues on jeans and embo both are improving the inventory of jeans that we’re carrying.
Unidentified Speaker
And after the roadshow we have done. Okay. We see that there is an increase in the number of denims. Okay. In terms of orders.
Deepak Lalwani
Okay. Thank you sir.
operator
Thank you. The next question is from the line of Abhijit Kundu from Antique Stockbroking. Please go ahead.
Abhijit Kundu
Thanks for the opportunity. My question was on depreciation and amortization. What would be the ballpark amount going ahead for the next two years?
Unidentified Speaker
Similar. Similar amount. Close to around 21. 21 crores.
Abhijit Kundu
21 crores. Take. I mean depreciation and amortization taken together.
Unidentified Speaker
Amortization amount.
Abhijit Kundu
Sorry.
Hemant Jain
21 crores is the amortization amount. Balance is depreciation.
Abhijit Kundu
Okay. Understood. Thanks.
operator
Thank you. The next question is from the line of Pramod Dangi from Ratnan RNT Investments Management llp. Please go ahead.
Unidentified Participant
Yeah. Hi. Thanks. First of all congratulations. Hi. First, congratulations for the integration of cross which is mainly the men oriented. And when we have the cross which is mainly woman oriented business map which difference here in terms of the seasonality, in terms of the, you know, discounting. Because I believe that woman business should be ready for the more volatility. And is it okay? We should prepare for that.
Hemant Jain
So I would say that. Okay ladies, woman wear category is more dynamic as compared to volatility. Okay. Discounting. I again said it’s a end result of how your self flows are close. Okay. The average discounting has been lower there. Okay. The performance on most of the LFS has been at number one or number two. So I don’t feel there is a problem there. Anything lying down as a problem there?
Unidentified Participant
No, no, not as a problem. I’m just Saying that okay, if quarter. On quarter we see a strike little volatility compared to the historical. Is it okay? Should we prepare for that as a investor?
Unidentified Speaker
So the cat the category is such that. Okay. It is not very seasonal. Okay. I have seen the last three quarters. It’s been almost even out business.
Unidentified Participant
Okay. Okay, great. Great. Thanks. And my other questions are answered. Thank you. Thank you.
operator
Thank you. The next question is from the line of Giridash Taga from Vasaria family test. Please go ahead.
Giriraj Daga
Yeah. Hello sir, my question is like to like FY26 growth assumption where we mentioned double digit growth just to get bit more. Hello. Is it audible now?
Hemant Jain
Yeah. Better.
Giriraj Daga
Yeah. So I was saying that on the FY26 growth assumption of double digit growth but just get a bit bit granular here. So obviously one quarter of crops cross will be added in this which is actually about 5055 crore. And last year one quarter was exceptionally weak quarter. So there we will have about 2025 crore just refilling of the quarter revenue. So like on the base we should stick a thousand crore or surface about 1050, 1070 crore and 10% growth over there. What would be your number?
Hemant Jain
We are saying that. Okay. Looking at things. Okay. Looking at the market scenario overall number we see that. Okay. We’ll see a double digit growth.
Giriraj Daga
Okay. Okay. Sure. Thank you.
operator
Thank you. The next question is from the line of Siddharth Purohit from InvestQ Investment Advisors Private Limited. Please go ahead.
Siddharth Purohit
Yeah. Hi sir, a lot of question has been answered and just two clarifications. The 15% that you as a like no expecting is mostly volume led. Right?
Hemant Jain
The mix of volume as price lead.
Siddharth Purohit
Okay. And so when I check the standalone versus consolidated like you know margins so it seems that you know the acquired company has a margins of close to 16 and a half percent this quarter. So was there something one of over there for It’s a kind of. No. Probably new normal for that 16. You said if I calculate the EBITDA margin separately versus consolidated and standalone and calculated separately then the acquired companies margin should be something close to 16 and a half to 17%.
Hemant Jain
Okay, go ahead.
Siddharth Purohit
So. So is it. Is it that 16 to 17% for that entity will be the new normal or there is potential for that to come back to our level of margins at parent level.
Hemant Jain
When we acquired we felt that okay. But both the margins could be at similar levels. And currently also this year. Okay. It was close to around 18 or 19% not 16.
Siddharth Purohit
Okay, I’ll cross check it sir. Thanks.
operator
Thank you. We will take that as the last question. I would now like to hand the conference over to Mr. Hemant Jain for closing comments.
Hemant Jain
I would like to thank once again to all of you for joining us on this call today. We hope we have been able to answer your queries. Please feel free to reach out to our I any clarification of feedback. Thank you all and once again wishes for good festive season. Thank you so much.
operator
Thank you. On behalf of K well Kiran Clothing limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Hemant Jain
Okay, thank you.