Brand Concepts Ltd (NSE: BCONCEPTS) Q4 2025 Earnings Call dated May. 19, 2025
Corporate Participants:
Unidentified Speaker
Abhinav Kumar — Chief Executive Officer
Analysts:
Unidentified Participant
Abhi Jain — Analyst
Naysar Parikh — Analyst
Deep — Analyst
Rupesh Tatiya — Analyst
Naysar Parikh — Analyst
Ritesh Shah — Analyst
Presentation:
operator
Ladies and gentlemen, I welcome you all to the Q4 and FY25 post earnings conference call or Brand Concepts Limited today on the call from the management we have with us. Ladies and gentlemen I welcome you all to the Q4 and FY25 post earnings conference call or Brand Concepts Limited today on the call from the management we have with us Mr. Abhinav Kumar, full time director and CFO. As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded.
I would now request the management to detail us about the business and performance highlights for the period ended 31st March 2025, their growth plans and vision for the coming year. Post which we will open the floor for Q and A over to you.
Abhinav Kumar — Chief Executive Officer
Hi. Thanks Vinay. Very, very good morning to everyone. So I think the Q4 just a key, a few key highlights about E4 was that we’ve, we’ve sort of maintained or delivered a decent top line growth. Considering the market situations I think it is pretty good. And in terms of the bottom line I think we’ve been even in such a difficult price scenario where competitors have been discounting extremely, the discounting has been extremely high. We’ve been able to sort of maintain our EBITDA margins and in fact you know maintain our GPS gross margins. In fact gross margins have increased by a few basis points.
So overall I think we fared well from where we started and there is a higher sort of interest cost and depreciation on account of new investments and everything that we’ve made and hence the PBT has come a tad lower but there was a extra tax incidence which, which we had provisioned for in the earlier quarters and hence we’ve got the benefit of those tax incidents which has taken us to deliver a better fat margin overall from brands perspective I think Tamil Kit continues to grow strong. The brand salience has been pretty strong. We wanted to make a few corrections on the brand side on with respect to Tommy we wanted to make a few corrections in terms of pricing in terms of you know the heavy discounting which a few E Commerce players had done and hence we, we’ve been effectively able to check that our ASPs have been growing in Benetton.
I would say that we’ve done fairly well. It’s, it’s taken almost 10% now of the overall turnover. So I think for the first full year of operations we’ve seen a good response and I think we’re very, very hopeful on the third brand that I’m about to share, which is Juicy Couture. And we just were able to launch it in March. It was the first season and I would definitely say that it has been one of the best launches from Brand Concepts till date. We did a good digital media campaign and within the, the first 15 days itself we were.
Am I audible now? I just got a message saying the voice is failed.
operator
Yeah, you can just come a bit closer to the screen.
Abhinav Kumar — Chief Executive Officer
Okay. Now is it clear?
operator
Yes.
Abhinav Kumar — Chief Executive Officer
Okay. So yes, on the, on the, on the Juicy Couture, I think we, you know, we initiated our digital campaign, we upped our digital game and very, very happy to share that. You know, within the first 15 days itself we were able to garner in terms of the overall views and impressions that we generated, it was 1.94 billion impressions and views that we were able to generate across different media platforms. And that has given us a lot of confidence. Consumers have shown a lot of love towards that brand. We were supposed to, you know, shopper stop being our very close ally and partners.
They, they also believed in the collection and you know, initially we had hoped that we launch across 5, 10 stores but you know, after they saw the collection, they saw the plans and they were, they went quite bullish on it and we launched across more than 40 locations of shopperstock. As we say, we are rolling out more. As we keep on going, we are rolling out more. The initial response of Juicy Couture is very good, very well accepted and as I had said earlier also that I’m pretty bullish about this brand and as a category, so this trend inside position in the handbags segment.
So that’s something which is, which we are really looking forward to and we see that this should become a, a decent contributor to our overall brand portfolio. Apart from that, we’ve made a lot of investments in the last year, be it our warehouse, be it the new manufacturing plant, the new manufacturing plant. As we speak, we did the first trial orders, so. And that those trials have been successful. So I’m hoping that from this month onwards or within this month, we will start the full fledged production. So. And the plant has come up really, really well.
This is currently a, a PC plant. We are also already proceeding now with setting up a PP machine as well. So we are evaluating the machinery and everything and I think in the due course of time we should be able to start on our PP9 as well. So we finally received the order from NCLT. Very happy to share that. We’ve received the order from the NCLD for the final merger of IFF overseas into brand concepts. So hence now backpack as well as luggage both they come in house. So that’s a good news that we have.
As I said in the warehouse perspective, we invested into a very good warehouse state of the art facility which should improve our efficiencies in terms of supply chain and dispatches and everything by multifold. So very happy to share on that. Now with all of this, of course the new investments, you know, you have your interests and your depreciation gets impacted and hence you see the effect in pbt. Nevertheless, as we keep on growing, I think you know the mechanism, the India’s mechanism is such that it will keep on getting better every year. So I, I look forward to that and I think we are, we are now in a very, very good position with all our factors checked in.
Right from manufacturing to we’ve added stores this year in terms of EBOs now we are at a overall level we are almost 48 stores. But so I think we had a, even even though the overall year was a little tough, the consumer demand was a little tepid, the competition was, was playing the price game. I think we’ve still been able to hold our fort and fared well. So now over to the questions.
Questions and Answers:
operator
Yeah, thanks Abhina. All those who wish to ask a question may use the option of raise hand in case you are able to do so. You can just put the question in the chat box or you can put a message in the chat box and we’ll invite you to ask your questions. You take the first question from Abhijain. Abhi. You can go in. Hi, good morning. Am I audible?
Abhi Jain
Hi. Yes, morning sir. Hope you’re doing well.
Abhinav Kumar
Yes.
Abhi Jain
My first question is on the LFL growth. Are you seeing any traction on that? Because I think that is one of the most important metrics to understand obviously in terms of brand. But in terms of the brand that we have, are we able to grow them year on year? And I think last year was a struggle. So are you seeing any recovery in that?
Abhinav Kumar
Yeah. So lfl if you’ll see E commerce, lfl we’ve grown the, the distribution or you know, including the department stores, they have been a little sluggish. But I would still say that the LFL of is better than you know, last year. So. But it is still in negative zone. Our EBOs were sort of flattish. Yeah. So but ASPs have been increasing in, you know, so the value growth is better than the volume growth. In, in most of our channels.
Abhi Jain
Okay, that’s fairly helpful. And secondly, sir, I always wanted to understand whether you are very gungo or whether you are tracking return on investments. Do you have a trajectory, do you have a plan around, you know, return on capital employed, return on investment for the company as a whole? Well, I think Most of the CEOs or for most companies that helps to bring in all the metrics, you know, together and the focus on that really helps the business in the long term. So are you, do you have discussions around that? Is that a focus area for you?
Abhinav Kumar
Yes, 100. 100. You know, our, our focus on, on the, on the capital employed and hence. So for example, even in the warehouse when we were investing, the discussion came that, you know, the overall investment was close to 15, 16 crores. Right. And we said it was not about the money that we couldn’t have put in 15, 16 crores and got the entire thing done at one go. But we said no, we’ll break it into phases. And one of the primary reasons of that was the fact that, you know, let’s take it sequentially so that you know, our ROCE or ROE are still protected.
So hence there’s always a focus on, on the capital employed. And just. Yeah, I hope I’ve been able to answer your question.
Abhi Jain
No, that’s helpful because I think that FY2 or 22 onwards, obviously the, the return on capital was one of the most, you know, one unbelievable to, to be very honest, but obviously it’s taken a dip in the recent years and hence I wanted to understand that. So sir, obviously now since the industry has seen a downturn and I’m hoping that with the tax breaks and everything, we’ll see a revival this year. Hence, just a long short question. In terms of FY28 or FY29, where are you seeing your pat margins, return on capital employed? Any sort of medium term target or plan that the management has taken or is working upon.
Abhinav Kumar
See FY28, FY29. Okay, let me answer this question in a different way from our overall, in terms of plans perspectives from a medium to long term, we want to start hitting, you know, a 5% upwards of PAT. Right. And obviously in the long term you would expect that to go even higher. You know, so EBITDA margins inching towards the 14, 15% kind of a mark. So that’s a sort of a long term chapter and. Yes, but medium term, three years down the line if I have to talk about. Yes, you’d be looking at 5 to 6% kind of a pat.
6% kind of a pat.
Abhi Jain
Sure. Thank you. That was helpful and all the best.
Abhinav Kumar
Thanks. Thanks.
operator
Thank you. We’ll take the next question from Nysen Parikh N. You can unmute.
Naysar Parikh
Yeah. Hi. Hi A.B. so, you know, I think largely now where do you think and how do you think the whole industry, discounting and everything, you know, will resolve itself? Because, you know, competition is obviously increasing. So how, how do you think about it? You know, is it still couple of quarters? Is there still enough inventory there for it to continue? How should we think about that thing?
Abhinav Kumar
See, if you, if you talk about discounting, I think, you know, there were two players which have been sort of discounting or leading the price for and now we see even the likes of Samson and Group under their another brand name, which is Chameleon. And they’ve also launched a very sort of a economical product, a mass product. So while this news, it’s very difficult to say when will this end? It has to end. But in between we had started seeing, you know, some price corrections from vip. However, I think it was met with a turbo demand and hence they brought it down.
But what I hear is, and I could say, you know, it’s, it’s Grapevine, most of the brands are also focusing on, on having a premiumized offering as well. So as we speak, all the other brands are also looking at doing something in the premium space because everybody is saying that, you know, premiumization is the key and that’s where the overall, you see a strong demand happening in that premium segment. Right. So hopefully I would say that another one to two quarters and things will start to cool down because the demand is definitely coming back. You know, Q4, I think from the walk ins perspective, from overall consumer demand perspective, we see that returning.
So there are green shoots definitely happening. And once that starts happening, I think everybody starts taking cognizance of it and starts correcting.
Naysar Parikh
Understood. Got it. And this quarter, how much of our, you know, how much of our revenues is in house manufactured goods that we sold and how will that change post this merger? So what would that percentage be in FY26?
Abhinav Kumar
See, in terms of our own manufacturing, luggage had not kicked in. So luggage obviously there is nothing which is manufactured in house, which has kicked in in the last quarter in backpacks would be and I think now almost 70% of our entire backpacks is being, is being manufactured in house. Right. And backpacks overall in the company is contributing to about 14, you know, so you can do the maths. So about 10 would be in house.
Naysar Parikh
Which would have come and, and for FY26. What do we expect that to be?
Abhinav Kumar
I think luggage I’m looking at, you know, we are hoping that we are able to do at least 50 in house. Right. And 50 still would be sort of outsourced. So looking at a 50 kind of a production in luggage, backpacks will continue to be about 71%.
Naysar Parikh
Right. And so do we start seeing margin improvement? I think maybe right now because discounting and all that, it’s all blurred and the percentage in house also maybe not that high. But from next year do we start seeing the gross margin improvement that we were talking about with the in house benefit.
Abhinav Kumar
So in terms of backpacks for sure, you know, even in our plans, our targets, we’ve taken a target of improvement, our improvement in our gross margins when it comes to backpacks because that unit is a set unit, it’s a old unit, it’s a, you know, a well oiled machinery. We’re going to be getting that benefit from year one itself for sure. In terms of hard luggage, you know, my target is, and I’m being very transparent and honest, my target is that we at least are at par with what we were buying today. You know, it’s the first year of operations.
We’ll take, we’ll be starting production in this month. So it will take about three to four months to sort of get into get it as in well oiled machinery here, you know, there’ll be teething issues, there’ll be learning curves and all of that. So factoring in all of that, and I’m saying that in the first year, even if you don’t see a margin improvement, we should not see a margin depletion. Right. Just want to be at par. And if you’re able to achieve that, if you’re able to do something better than that, nothing like it.
But at least we should be able to do this. And from next year onwards you’ll start seeing a remarkable, we expect a good sort of, you know, uptick in the, in the gross margins, even in the ladies category.
Naysar Parikh
Right, understood. And last question. What percentage would be your corporate institutional defense? You know, all of that in your. Quarter and your revenue
Abhinav Kumar
this year, if you will see this year at institutional is about 7% of our overall turnover. We’ve, we, as I had mentioned earlier that we are looking at institutional as a serious line of business now and we extending so last year, you know, we’ve, we’ve invested into a full fledged team for institutional. We developing the entire distribution for Institution and we’ve already appointed a few distributors. So this year we hope that we should be able to do a better job in terms of the institutional business going forward. I see that as a good opportunity for us.
You know, in the next. I would say, okay, I wouldn’t want to exactly say in whether it is three years or four years or whatever, but I see that as 100 crore opportunity. The next 100 crore opportunity. So internally, whenever we are discussing, we see, let’s just look at which are the next 100 crore opportunities. So institutional. Definitely institutional. The canteen stores business, the handbag business, all these are, you know, the next hundred crore opportunities for us.
Naysar Parikh
Right. And what was that institutional in this quarter? Q4.
Abhinav Kumar
Q4 would be, I think close to, close to a 5%.
Naysar Parikh
Okay.
Abhinav Kumar
Yeah.
Naysar Parikh
And you include canting stores in this. Sorry, do you include canteen stores as part of institutional?
Abhinav Kumar
No, we don’t.
Naysar Parikh
What is that? Is that any meaningful this quarter?
Abhinav Kumar
Yes. So government, so we call it as government business. Overall it’s about 10. We’re going at, we did about 27 odd crores in the entire year and we’re going at about 2 and a half to 3 crores per month wholesale billing.
Naysar Parikh
So is our margins impacted because of that too?
Abhinav Kumar
Yes. So we’ve already applied for a price increase over there and it’ll take a little time, but we’ve identified a few models where you need to complete one year of operations over there in order to start affecting your price increases, start affecting your sort of. If you have to change a particular, replace a particular model. So you know, you have to take cognizance of the fact that when we applied, we had applied pre Covid for the canteen stores business. Right. And Covid happened and all of that and hence it took so much of time. So and in between we were not able to change the file.
You know, you’re not able to change either the product or its pricing or whatever because you already read the documents. So we said, never mind. Even if, even if the margins are a little lower, we will still continue because we’ve now got the foot in the door. And overall the response over there has been very good. So this is the year where we start sort of applying for model to model changes, price changes and all of that. So but you know, it’s a good.
Naysar Parikh
What would be the margin differential between retail and canteen stores? Roughly
Abhinav Kumar
about 10% lower
Naysar Parikh
10 percentage points.
Abhinav Kumar
So if, if it is, for example a 20 contribution coming from the other channels, the canteen stores department would be a 10 contribution margin.
Naysar Parikh
Understood. Okay. So sorry, I, I don’t mean to. Practically 10 is candy stores last year, I’m assuming it would be minuscule. Right. Last year, Q4. So the growth and despite
Abhinav Kumar
last year. Q4 is when we started.
Naysar Parikh
Correct. So it would be minuscule in terms of revenue contribution.
Abhinav Kumar
Yeah. So you can say that this quarter we’ve done about close to seven and a half crores. And last year same quarter would be close to about three, three and a half crores.
Naysar Parikh
All right. Okay. So retail alpha is still significantly lower. I mean even more lower,
Abhinav Kumar
not significantly lower. So As I said, EBOs are, are almost flattish, but large format is, is about a. Minus 7.5%. Right.
Naysar Parikh
Okay. All right.
Abhinav Kumar
Okay.
Naysar Parikh
Thank you so much. Thank you. All the best.
Abhinav Kumar
Thanks.
operator
Thanks sir. Thank you. We’ll take the next question from deep. You can unmute and ask.
Deep
Yeah. Good morning, sir. So can you throw some more light on the new manufacturing facility? Like what’s the current capacity installed and what kind of revenue can it throw up and what can it achieve in terms of production and revenue at full capacity?
Abhinav Kumar
So the current installed capacity is if you’re looking at about 25000 pieces to 30, 000 pieces in a month, that’s your optimal capacity. The maximum capacity could go higher if you’re running, you know, 24 hour shifts, all three lines running and all of that. But realistically, practically speaking, about 25 to 30, 000 pieces a month. See, in terms of revenue will be a little difficult to, to judge because if you’re producing mostly in house, it gets recorded as cogs. Right. But if I were to sell it outside as a factory, you know, it would be about a close to 50,000.
50 lakh. 40 to 50 lakh rupees a month. So that kind of. If I’m doing the maths correct or is it 5 crores? Yeah, it will be 5 crores. So about 5 crores a month. So that kind of. If you, if he’s selling it outside, but if you’re obviously recording it inside, if it is primarily in house, production gets recorded as cogs. Right. So in terms of scalability, I think, you know, we hardly utilize 10% of the land and everything available, luckily for us in the same building itself. And we had planned that we would be bringing an expansion.
So in the same building itself, we have a scope of adding at least another one to two lines, you know, further of production. At least two lines of production. So which can give us, you know, and every line will give you about 25 30,000 pieces. So within the same premises, within the same building itself, we’ll be able to sort of go up to a 75,000 to 80,000 pieces a month. You can go three times from the current capacity and you will not have to substantially spend more in terms of capex except for the machinery, not at least in the, in the, in the building.
From a land utilization perspective, we still utilize only 10% of, of the sort of land, about 12% of the land. So there is here also, you know, we could go eight times. So I think we have enough scope for expansion over there in full capacity.
Deep
Okay, understood sir. So is there a warehouse as shown in the presentation, secondary location or is it adjacent to the manufacturing facility? And so what is the potential storage capacity of this warehouse?
Abhinav Kumar
It’s very closely, so it’s, it’s not very far. You know, it’s about a 20 minute drive and it’s on the same route. So it’s not adjacent to the manufacturer. But yes, it’s about a 20 minute distance. It’s a lacking 10,000 square feet with a 12 and a half meter clear height. So you know, in terms of capacity it’s a little difficult to explain because you have different sort of products and different categories. But just to give this thing it should suffice. You know our requirements, Greece for the next two to three years, four years. We don’t need to sort of really expand the warehouse.
Deep
But then doesn’t that increase the cost per movement of goods? Like what’s the thought process for it being away from the plant?
Abhinav Kumar
The plant was, was done earlier and you know, sorry, the warehouse was signed earlier before we could commission on the plant. And the plant land has been allocated primarily for manufacturing purposes. It’s a government lease land and hence we’ve got it at a good price. It’s in one of the industrial corridors and you’re not allowed to make warehouse facility over there so. And warehousing is always in the logistics hub rather than in the manufacturing hub. You know, both the operations are very, very different and separate.
Deep
So is this owned warehouse or lease? And what’s the timeline for the lease?
Abhinav Kumar
It’s a lease warehouse and it’s a long term lease. So.
Deep
Any timeline?
Abhinav Kumar
Nine to 12 years I think, I think three plus three plus three. It’s about a nine year piece.
Deep
Okay, so one last question. With the IFF overseas merger now moving ahead, what’s the revenue run rate of FY25 and what’s the revenue potential from this facility? And would you be merging operations at the new plant being set up.
Abhinav Kumar
See last year ISS overseas did close to about 43,44 odd crores. This year we’re looking at, you know, upping that of course, because it has come down. Last year was tough but this year we’ve seen, as I said, you know, inventories have cooled off for a lot of our clients. New clients are coming in, you know, since the time we’ve taken over the management, we’ve, we’ve started inducting new clients as well, the schema business from one or two key sort of clients. So we expect that we should be looking at at least, you know, 15 to 20 jump in terms of the overall productivity over there in terms of number of pieces.
Now how much of that we consume in house and how much of that goes outside is yet to be seen. But we expect that we should be able to, you know, do at least a 20 jump in our volumes over there in terms of management. If I have to answer, no, we would not be merging the managements because we have a very seasoned, able plant head over there and both the operations are absolutely separate. So neither the retail gets merged into that nor the manufacturing gets merged into this thing.
Deep
Understood that that will be also my side. Thank you.
Abhinav Kumar
Thanks Z.
operator
Thanks. We’ll take the next question from the line of rbj. You can unmute.
Abhi Jain
Sorry sir, just one more question.
Abhinav Kumar
Yes, yes.
Abhi Jain
What I wanted to understand is that, you know, a negative LFL takes away from return on capital. Right. It does not add to return on capital.
Abhinav Kumar
Yeah.
Abhi Jain
Over years. I mean it will, it does not help scale the return on capital. The, the best part about any retail or any consumer business is that your existing, your LFL growth drives significant part of your return on capital in the long term. So your investment keeps paying off. So does that, I mean, concern you? Are you thinking about how can I, you know, get back to this LFL growth, what I need to optimize in my business? How I mean is that something that you’re dealing with or do you have a plan around it?
Abhinav Kumar
Yes. So if I talk about, see large format or the department store business or the distribution business where we don’t have a control over the, over the store, it’s difficult for us to sort of control things over there. Right. If, if they are seeing a sluggish sort of tepid sentiment, we all brands are sort of part of the that but over there also we always are looking at, you know, how can we better the product offering? How can we better the experience from a consumer point of view into that in that store. So while that continues to happen, EBOS is going to be a major sort of revamp.
So which I had mentioned, I think earlier, also that we’re looking at, you know, revamping the entire bag line proposition and actually happy to share that we took an agency on board just to define the entire brand positioning of, of Bagline. We’ll be rolling that out pretty soon. And I can, I can say with all my experience that it’s looking amazing, it’s looking great. Now we are in that execution phase and we’ll be opening a slightly bigger. We’ll start opening slightly bigger stores not only to incorporate, you know, the number of brands which are increasing and which will keep on increasing at least till a certain number, till the time hit a certain number of brands, but also it gives a bigger store, you know, gives the consumer, you know, the overall a much better experience.
The, the overall experience is much better. You have a better assortment that you can offer to the consumer rather than offering, you know, a small assortment in a small store. So I really see that this year is going to be a revamp year for our backline as a brand, as a store concept. So we completely focused on getting back into a positive light to like, and hopefully we shall this year get back into a positive like tonight.
Abhi Jain
Right, let’s work for that. Just one question, sir, and this is just a very, you know, qualitative question. I just wanted to understand from you. One of the competitors that you are, you know, there in the market, one of the competitors that you like, I mean, what or you have learned over the years from them or any quality about them that you have learned and incorporated because of the past experience or whatever, anything that you can share in. Terms of. From industry that you have learned or whatever.
Abhinav Kumar
I think we learn from all of them. Right? And that’s one thing that I feel, you know, as a, whether it is as an organization or whether it is as a human, your learning antenna should always be open. And I think all the competitors, they are all good, you know, in their own respect. You know, Safari has changed the whole landscape of the luggage industry. You know, at the price that now that they’re selling, I think the, the unorganized is getting marginalized. You know, it’s coming lower and lower, lower and lower as a, as a percentage of the overall industry.
Which means that, you know, you have somebody who’s coming in early in the branded fold. And if once you come in the branded fold, I’ve always maintained that, you know, it keeps on, you keep on growing from there as a. Because the aspirations always keep increasing. Right. VIP teaches us what not to do. Right. Mokobara is, is something that I, you know, I really feel that they’ve done a good job. Yes. They’ve burnt money. It’s, it’s a, it’s a different volume altogether. Private equity, you know, doing all of that, we are probably many a times we’re too focused on the bottom line.
But I think they’ve, they’ve shackled a lot of, a lot of things. So we take a lot of cognizance of that and hopefully you will see something happening from our side also pretty soon. I don’t want to, you know, speak too soon about it, but we are looking at, you know, upping our E Commerce because clearly what, what, what comes out today, as of today is that E Commerce, of course. And you’ll see most of your, I was, I was just going through, you know, even Arvind’s investor presentation and more than 25 or almost close to 25% of their overall revenue at that scale is now coming from E Commerce where traditionally they’ve always been offline heavy.
So I see that E Commerce for sure is, is going to grow, keep growing. You know, digital is going to keep growing and hence we’re also now investing a lot in, in the digital space. And second is so either the consumer is coming to a ebo, you know, a standalone store which is, which is, which gives the consumer that experience that he wants. Or so either it is experience or it is convenience. You know, so E Commerce is convenience whereas, you know, a good standalone store is convenience is experience. So these two are the pockets where, you know, the thrust is going to be from outside also.
And you will see a lot of green shoots happening this year in E Commerce. We’re looking at really, really taking the, the, the ball, raising the bar a little higher in terms of E Commerce and the other competitors as I, as I mentioned, whether it is Mokobar or whether it is national, they’ve proven this that you know, there is a sizable business that you can build from these channels.
Abhi Jain
Thank you so much. Always love chatting with you and love your honesty. Yeah, thank you.
Abhinav Kumar
Thanks.
operator
Take the next question from the line of Rupesh Tatya Dupesh. You can unmute and ask.
Rupesh Tatiya
Hi sir, am I audible?
Abhinav Kumar
Yeah.
Rupesh Tatiya
Hi. Hi Abhinav. My first question, Abhinav is what is the kind of plan to open the number of stores, how many stores. We are looking at which areas and, and maybe briefly, can you give some, you Know what, what are your parameters or strategy to select an area where you open the store?
Abhinav Kumar
So what we want to do with Bagline this year is as I said, we are revamping, right? So we’re going to be opening a larger store. We’re going to be opening, so I want to open one flagship store of say about 2000 to two, two and a half thousand square feet. You know, that’s one flagship that we want to open, open but between 1200 to 11, 1200 to going up to about a 14, 1500 square feet carpet is something that we are looking at sort of opening this year. You will also see a few airport stores coming up.
Have my fingers crossed. We’re very, very hopeful that we should be able to finalize a couple of airport locations. Now having said that, you know we first want to see, we as I said that we are sort of implementing a change in our, you know, the overall brand perception, the overall retail experience. It’s, it’s going to be a complete revamp. So we first want to do a couple of pilot stores, three to four pilot stores, take our learnings and then go all out and opening more such stores. But still, give or take, I would say that this year we should be able to open about 10 to 12 stores.
Rupesh Tatiya
Okay. Okay. So, so I mean I’m looking at your geographical distribution and one, I mean sort of issue. I see that you have very limited presence in Bangalore, very limited presence in Hyderabad, no presence in Tamil Nadu, Pune, maybe one or two stores. Ahmedabad, only four. So these, I mean these are the major, how do you say major airports and major sort of, you know, salaried class segments. So that, I mean I, I, maybe you can address that. How, how did we end up here? What are we doing to address it?
Abhinav Kumar
Yeah, so I had mentioned earlier also that south was a, south is a virgin territory for us. And only after that we’ve started opening stores in South. In fact one of the airport locations is going to be Bangalore. Very hopeful that we should be able to get that and convert that. So we are looking at opening more stores in Hyderabad. Hyderabad seems to be very, very good market today. In fact we are also looking at not only a bag line, we’re also looking at a juicy couture store over there. Bangalore. You know, traditionally while you all understand that yes, it’s, you know, it’s the it city and a lot of salary class and high salaried class people are there.
But in terms of, you know, we already have two or three stores in Bangalore and I wouldn’t say that I’m extremely happy with the kind of throughput that we’re getting over there. So you’ll go a little, I want to be a little more sure of our product offering that we’re giving in Bangalore and whether it is able to, to resonate with that consumer. Once we, once you’re sure about that, then probably yes, you’ll see more stores happening in, in Bangalore. But Hyderabad for sure should be looking at Chennai for sure. These are, these are markets that we are definitely looking at.
Rupesh Tatiya
Okay. Okay.
Abhinav Kumar
We have also focused on, you know, we don’t want to go too much into high street locations right now. So I want to stick to mall locations. Right. So now if it is an existing mall, it’s a little difficult to find space over there because until unless you know the churn is happening, you don’t many a times get the right location that you want. If it is a new mall like for example, all we have to be very, very close allied with Market City Genius. And any new mall which is coming up we are already a part of in that one.
Rupesh Tatiya
Okay. Okay. And then these, these 48 stores you have, what kind of sales would they have done in FY25?
Abhinav Kumar
We’ve done about, as I said, it’s about 10% of our overall turnover.
Rupesh Tatiya
So it’s roughly 50 lakh per store per year. Roughly. Ballpark.
Abhinav Kumar
Actually if you look at, there are two figures over here. One is you have focus, right, which is company on company operated where you record the sales at retail and then you have franchisee owned, franchisee operated stores where you record the sales at wholesale. So right now the figure that I quoted is basically your, you know the, the figure which goes into a balance sheet. If I have to transform that into retail overall we would have done close to 40 odd crores at retail. 40. Yeah, 40 odd crores at retail this year. So roughly you can say that, you know our stores are about average is about a 80 lakh per annum kind of a store.
Rupesh Tatiya
And, and how does that compare with let’s say industry with let’s say safari or America tourist or. I mean I don’t know. Pick, pick one maybe.
Abhinav Kumar
See they have the much larger base but I think viewed fair sort of better than a lot of these days because it depends on the store sizes. So we have stores of 300 square feet. Also we have stores of. So our biggest store currently would be about 6700 square feet. Right. So you’re averaging about a 300, 400, 400 square feet. So if you do the maths, 400 square feet and you know, generating that kind of this, this thing. So from an SSPD perspective, which is sales per square foot per day perspective, I think you’d be fairly faring better than most of these guys.
Rupesh Tatiya
Oh, that’s, that’s interesting. And, and, and I mean I, I didn’t find what, what was our sales and marketing spend in FY. FY25 and what is your, you know, thought process around that number?
Abhinav Kumar
See, FY25, you know, we, we sort of controlled on our marketing expenses because once we realized that, you know, it’s, it’s not going as per, you know, the, the overall sentiment is not as yet back and hence we contained our overall marketing expense. But going forward you can safely assume to be. Which was less than 3%. Right? About. Around, around 3% is what we spent in terms of marketing. But going forward we can safely assume that I would take the marketing up to about a 4%, 4 to 5% in terms of spend.
Rupesh Tatiya
Okay. Okay. And then, then another, another question sir. Is this online channel is 45, 46%.
Abhinav Kumar
Yeah.
Rupesh Tatiya
So if you can. One, one is if you can give some idea of the margin across online modern trade and traditional trade either at gross margin or EBITDA margin, that is one. And this high online percentage is, is a double edged sword. You are adopting newer, newer ways where people are shopping newer channels. So that’s good in a way. But we are seeing this, you know, owner of distributor versus owner of brand sort of tussle playing out and eventually I, I see that the owner of distribution or has, you know, a higher, higher power is at least my observation.
So how, how do you, you know.
Abhinav Kumar
I didn’t, I didn’t get this last part. Owner of distribution and owner of brand.
Rupesh Tatiya
That you are owner of brand.
Abhinav Kumar
Right.
Rupesh Tatiya
You’re owner of Tommy Hilfiger or different, different brands. And then owner of distribution is let’s say Amazon or Flipkart or Dmart or whoever. Right, Owner of distribution. Eventually I am seeing that the owner of distribution has a lot more power is my observation. So how do you make your brand far more compelling so that the user, user forces sort of owner of distributor to you know, pick your brand or promote your brand. Right. So this is one slightly longer question and then you can give the margin across 3, 3 of the trades channels.
Abhinav Kumar
See margin across all channels. I’ll answer earlier. Right. So E Commerce of course is you know, there the margin realization is slightly better followed by you know, the you know, offline versus online. Let’s Actually look at it offline versus online because offline the matrix pretty much remains the same whether it is Coco or a 4, 4 or LFR or whatever. Now how you recognize the revenue and all of that makes a lot of difference. But nutshell level offline all behave very similarly. E Commerce delivers you a better margin and but the difference today in terms of the contribution margin would be to the tune of about you know, 5%.
That’s the, that’s the difference in the play.
Rupesh Tatiya
To be clear, you’re saying at contribution margin level e commerce is 5% higher margin than that.
Abhinav Kumar
Yes.
Rupesh Tatiya
Okay. Okay.
Abhinav Kumar
Yeah. Now answering your, the other question of you know, whether a brand owner and the whole power tussle, I think power tussle, right. And it’s how you win that power tussle. Whether you win it by a strong brand, whether you win it will it buy a strong product proposition. I believe that it’s all part of the ecosystem. Right. Tomorrow you know, a distributor would need a brand and a brand would need a distributor. So I don’t think that whole argument holds sort of true if you are dependent only on one distributor. Yes, but we are well spread across Myntra, Amazon, Flipkart, your Tata, Click, Nica, we available everywhere and you know, we, even though whatever the new players and everybody is doing, we still remain, you know, as a matter of fact in our category we still remain one of the, the best brands over there and one of the largest players over there.
So be very, very strongly poised with, with our E Commerce. So I don’t see that as a worry point at all.
Rupesh Tatiya
Okay. Okay. And then sir, my final question is, I mean weddings I think is such a large of spending into all these handbags, luggage and all of that. And how, how, I mean if you can give some sense of you know, your strategy around how to capture that spend.
Abhinav Kumar
So we, you know wedding is a very, very integral part of our business and it’s, it’s season on season. Right. So if you visit our stores or if you, you, if you see we’ll have wedding offers, wedding edits and all that already happening. So not sure exactly how would you.
Rupesh Tatiya
Maybe if you can share one or two anecdotes or, or maybe you can point out to some state where in, in wedding market you are you know, like really strong. You’re like a market leader in, in some state, maybe Madhya Pradesh or market leader for weddings, something like that sort to, to get a feeling of how, how we are capturing the wedding related spending.
Abhinav Kumar
Okay. So I’m actually still not sure how to exactly answer that. Rupesh. We don’t work with, if you’re asking that. Are we working with wedding planners?
Rupesh Tatiya
No, no, no, that is not what I’m asking. I mean how, how in, in let’s say when a family is thinking of spending on a wedding, how does our brand air? What, what are you doing to make our brand more compelling when, when people are looking to spend for weddings?
Abhinav Kumar
Of course you would want to, you.
Rupesh Tatiya
Know, when I think in, in VIPs case, I know in for example Bihar and Hindi Heartland VIP I think is a very strong brand and you, you kind of go and buy like 5, 10 bags to, to you know, give when your daughter is getting married. That is, that is kind of. So how, how are you, you know, looking to enter that market?
Abhinav Kumar
See, we are at a different price point. Rupees, right. So while a VIP set you will get for a four and a half thousand rupees. Starting to upwards to say a six, seven thousand, eight thousand rupees for a set of three pieces. Right. While ours would be 25,000 to 30,000 rupees percent. Right. So they’re different again as their consumer classes. They are wedding classes also. Right. So we have people walking into our store and, and buying the, the latest, you know, so we have a collection known as Jazz, right. Which is, which is a th.
Which is a monogram, sort of a luggage. And the set of three costs upwards of 50,000 over there. Right. And it has a particular brown color which is, which is very similar to what do you see in the luxury brands like Louis Vuitton or you know, those kind of brands. And we have people and that we had launched it thinking that you know, this will, this should do well in wedding. And it is actually, you know, in the, in the entire north region, Punjab. In fact we’ve done pretty well even in Gujarat for example with Jazz as a collection.
So you know, when once you have to buy, once a family has to buy a wedding luggage they will obviously go into the market, look at according to their budgets and everything what they can buy. And we are definitely part of that whole set, you know, so we are there in the consumer funnel for sure.
Rupesh Tatiya
Okay. Okay, thank you. Thank you for answering all my questions. Nice, nice chatting with you.
Abhinav Kumar
Thanks.
operator
Thank you. We’ll take the last questions from the line of nicer Parek.
Naysar Parikh
Yeah. Hi. Sorry, I’m going to one more question. Yeah, and we discussed last time also. But I, I still want to understand, you know, if you look at something like a safari, even at the scale of maybe 400 plus crores a quarter. Right. They’re still doing whatever 10 growth maybe. Obviously the margins are affected but they’re still going out and capturing volume. Right. What is stopping us from doing the same thing? Or you know, why are we not able to do that in a 60 crore scale while we are growing? I mean, you know, like you said, LFS we are declining seven and a half percent.
EBOs we are flat.
Abhinav Kumar
So. Otherwise large format, if you’ll see, we would have done more than I think 12 kind of a growth. Last format we are at a 12 kind of a growth. Ebos we are. Just a second. I just actually give you the exact percentages. So if I look at. Yeah, so platformat we have a. We are at a 13 growth from last year. EBOS we are about a 7% from this
Naysar Parikh
volume. You are saying
Abhinav Kumar
value.
Naysar Parikh
Okay.
Abhinav Kumar
Yeah.
Naysar Parikh
Okay. But I mean I’m just saying overall, I, I don’t know how that math then adds on. But I’m just saying that overall if you look at it, if I exclude the, you know, institution and government, we are practically flat to down.
Abhinav Kumar
Right.
Naysar Parikh
On a retail basis. So that’s what I’m saying. That and Safari at that scale is growing 10%. So I’m saying that, you know, are we being right now cautious? Are we, do we need to think differently? Are we not at a particular price point where we should enter? Because it is almost two years and a flat. You know, our top line is in that 60, 65 cr, 70, cr maybe range. And we are there despite the new brands we’ve launched in two years, despite entering the channel, you know, the canteen stores, our top lines is not cross 65, 70 crores whereas Safari at that scale is, you know, growing 10%.
Abhinav Kumar
See, I wouldn’t want to compare myself with Safari, right. I think that’s a wrong comparison. Safari is in the mass market, right? Mass market. The volume growth and, and the value growth whatever should not be compared to comparable to a premium market player. Right. And to get into that mass category, A, we don’t have the brand for it. Number one, neither I can take Tommy Hilfiger to that kind of a price level nor we can take a Benetton to that kind of a price level. Secondly, you know, Safari is playing on its own production. It is playing more as a commodity, right? You have a large scale of production.
You have, you, you know, your production is now getting optimized because you’re throwing up large volumes and whatever optimization in production that you’re being able to do. You are passing all of that to the end consumer. Right. That’s not how a brand behaves. That’s typically a commoditized sort of a behavior. So.
Naysar Parikh
Right. So what you had mentioned, I think last time also that once you get your production and everything, which hopefully now should happen starting this year.
Abhinav Kumar
Yeah.
Naysar Parikh
So in that case, you know, should we expect that you will also come up with. And you mentioned this last time. So what is the plan on maybe pushing your private brand or a mass market brand and utilizing and leveraging your, you know, production? Because at the end, right. We have to look at whatever play we do. And you are also trying to add brands across the spectrum, not just luxury at Tommy. Right. So we are also looking to do a mid premium or a premium to luxury kind of a play and not just stay in the luxury segment. And eventually we have to get growth and roce. Right. We can’t just be saying we are going to be a luxury play and not get roce. So my question is, so, you know, with the manufacturing now coming in, what is the strategy to, you know, bring in some new brand and kind of adapting ourselves to the realities of the market rather than waiting for maybe one year, two year that the luxury market will improve?
Abhinav Kumar
For sure. See, I have mentioned this even in the past that once the. The manufacturing play starts to happen, you will see a lot of things changing. Right. But the fact of the matter remains that the manufacturing has yet not kicked in. Let it kick in. Right. And taking decisions only on the basis of next quarter what I’m gonna deliver. I don’t want to spoil the entire future. Right. So it will happen. It will happen with its own sort of new course of time. We are committed to growing and I 100 agree with you that our eyes should be on.
On growth, on ROC and all of that. In spite of having a tough year, I think we’ve been able to still perform decently well. Yes. I, you know, I think safari. Not heard it personally, but I’ve heard that, you know, they’ll sell a bucket and a luggage together at the same price. I don’t know. To play that game. Pretty simple. In terms of brands that we want to add, we are adding more brands and I think, you know, these are very, very strong brands which are gonna give us a much better footing in, in the, in the market.
Right. So growth, you will see that coming back in this year that I can promise. You know, but whether we go the safari route, whether we do the. The private label route from our manufacturing or not give it some time, you know, let the plant first become functional.
Naysar Parikh
Okay, okay. Fair, fair. Okay. I, I think if in the next one or two quarters, if you could, and that would be very helpful, you know, help to lay out once the plant is operational. What is your strategy? Especially you know, to say that how do we get back to that 20, 25% growth given that we are on a small base and despite whatever the market, you know, across different segments is doing. But then, you know, how do we adapt to some realities versus saying that we’ll hope that the market should improve on the luxury side this year? I think that would help if you could lay down some strategy which we are proactively taking to say that, okay, we think the mass market is working right now and these are the steps we are taking to kind of enter into that market.
Because we are not a single brand. We are a portfolio of brands. And so we can create or add brands across different price points depending on where we see the market is going, going or something like that. I, I think that would be helpful and will also give us an idea of how we should think about the next couple of years.
Abhinav Kumar
So this year we’re gonna be, this year is going to be a very, very crucial year and you’ll see a lot of these strategies panning out. You’ll see new product launches even in Tommy as a brand getting into. We’ll be bringing our first PP luggage. We’ve not done a PP luggage in Tommy till now, so we’ll be doing that. We are strengthening Benetton, we are strengthening the, the entire digital space. So plus we’re looking at adding a couple of brands further this year. So this year is going to be a very, very crucial year actually.
And I wouldn’t say that we’ll have a mass, mass play whether we are able to do a mass, mass play in this year. But mass premium is something that, you know, this year it’s a part of our strategy that we’ll be getting into the mass premium sort of segment and we are very, very hopeful that we should be able to see a lot of traction happening over there. And yes, as, as I, as he said, our target this year is to grow at a 20% plus revenue.
Naysar Parikh
Thank you so much. That is very helpful. Appreciate you answering all the questions. Thank you.
Abhinav Kumar
Thanks. Thanks. Thanks.
operator
Thank you. Sir, we have one more question from the line of Ritesh Sharks. From chat you can unmute on us. Hello. Hello.
Ritesh Shah
Hi. I’m audible.
Abhinav Kumar
Yes. Yes. Hi. Hi.
Ritesh Shah
Hi Abhinav. Thanks. Thanks for the Opportunity. My first question is what do you make of MOP for your firm and MOP as a practice in the marketplace?
Abhinav Kumar
Sorry, what?
Ritesh Shah
Minimum operating price.
Abhinav Kumar
So every brand and every product has a different mop. So we of course give that MOP to all our channel partners and in fact last year that’s the reason I was saying that you know, last year we actually consolidated even on the E Commerce there were, there were particular SKUs or particular articles which were sort of very, very high volume but you know the MOP guidelines and all that would not be properly being adhered to and hence we had to sort of in certain cases pull the plug on, on that ASIN or in certain cases control the overall supplies over there.
Right. So that we were able to check on it and happy to say that all of this is, is now in place. So you know it’s, it’s. This year was the year of consolidation and we’ve been successfully, we’ve been able to do that across channels and hence this year, now the coming year I we are targeting a robust growth across all the E common platforms. I hope I’ve been able to answer your question.
Ritesh Shah
Yep. So that’s what that was pertaining to the company and specific at the industry level, how do you see this particular variable is used by various players in the marketplace?
Abhinav Kumar
I think, I think you know, in terms of the industry, I don’t know, it’ll be very difficult for me to comment on how well are they able to sort of map the mop because I, I have seen you know, luggages being sold at 960 rupees from certain brands. So I don’t think they, they were able to exercise the MOP very well. If, if I’m getting the question right or you can correct me if I’m, I think you’re asking the, the MOP on E Com platforms that all, all brands try to operate with. Right?
Ritesh Shah
Yeah. Also in GT basically because basically SKUs are not same though they are similar and to, to avoid killing of the GT channel I think companies have resorted to mop even in the traditional channels only few companies have done it only probably for a select SKUs. Now do you think is that the way forward, a more disciplined approach or is it not such something which will sustain in the marketplace?
Abhinav Kumar
See the difference is offline again as a, you know, in the distribution channel. And when, when I say distribution I’m not talking about large format because see whether it is large format, if it is a, if it is a counter which you can control or which you are manning, right? Whether it could be your own store or whether it could be a department store where it’s your sales rep standing and selling the merchandise. Of course the price control is with you, right? It’s just the dealer and distribution network which we call as you know, traditional trade DND over there.
Know you, you pass on a margin to the, to the retailer and now the retailer is, you know, they also have to compete with ecom players and all of that. So go. They do a varied sort of a discounting and I don’t think anybody, any brand has been sort of able to control, control that. But I still feel that that is not brand damaging, right? Because you know it’s, it’s traditional trade, it’s India. We are still a very traditional trade heavy country rather than a modern trade heavy country. You know, thus percent is found. That’s, you know, that’s been our, you know, sort of, it is embedded in the culture, you know, know you, it’s not about the, the discount of you know, general parlance.
So it’s, it comes from that cultural, this thing. But that’s not brand damaging for you. So I don’t see why you would be doing a sort of mop or whatever over there. I’ve already discounted, you know, you, you announcing a 60 or if you’re giving a 60 discount to the dealer, you’re saying that, you know, the consumer discount is 60% and then your margin and then you’re this business. If you’re playing that strategy then you know, you can’t complain about it. But when it comes to online versus offline there is a definite change in the intake margins because of the layering that you have in, in physical retail, right.
So you’ll have a distributor, you’ll have a master distributor, then you have a, you know, a stockist, then a distributor, then a dealer. And because there are so many layers, obviously there is a margin slippage at every layer. Correct. So hence your net margin shell out in, you know, in the offline is a tad higher again when it comes to EBOs or a franchisee store Today rentals in India are pretty high. So the rent to sale ratio is not, not that great. We are one of the lower ones in when it comes to rent to sale ratio across in the world.
So because of that again the margin play is higher whether it is in terms of costs or whatever. Whereas if you come to E commerce, you know, it’s, there is a reason why you say sell D2C right? So either it is if you’re using these marketplaces, you’re giving them a fee, you’re giving them whatever some bit of margin which is still lower and then you are directly shipping it to the end consumer. Right. So and hence the the margin slippage is lower and and in order to create a parity same product launch Karunga and Agar Meri targeted contribution these person contribution I will have to price that product higher in offline while I’ll be able to do that at a lower consumer price in E commerce that’s the reality of it.
So same price offline margin may hit Lena and hence a better strategy is to sort of sort of segregate both the lines and you still have your wider range available to the end consumer because at the end of the day end consumer should not suffer. But volume product. I hope I’ve been able to.
Ritesh Shah
Yeah sure. Just last one question. It’s. It’s in relation to one of the prior questions. If you had to pivot to a product offering with a median price point significantly lower. I think to what I read from what you indicated is it’s not something that we aspire to be or we would like to be on the premium side of things. But the thing is over here the market might not be growing at the same rate as that of the bottom or mid tier of the pyramid and the competitive intensity also over there could be significantly higher.
So it looks jazzy to be at the top end of the pyramid but fundamentally we are fighting against far more forces as compared to somewhere in the mid or at the bottom end of the pyramid. How would you reflect on that?
Abhinav Kumar
So it’s not that the top end of the pyramid is not sort of moving. Yes, I completely hear you that the belly of the market is, is at the bottom of the pyramid. But you know it’s a very different ball game to create than him. We have licensed brands paying royalties on those brands. Right. So to play that price game it’s you have two or three deterrence, right. One big deterrent is okay if your brand is already positioned in a premium sort of a segment the brand owners also will not allow you to take the take the pricing down.
Number two, you have your royalty constraints. Number three, you did not have your own manufacturing. So there is a margin slippers to a third party manufacturing. Now with all of this constraint, how will you play that?
Ritesh Shah
So it is more because of our constraints that we would not want to pivot. Because if you look at it from the other side say if I am your ebo, my economics honestly Goes for a toss because of the constraints what the company has then in that aspect, how will my throughput.
Abhinav Kumar
In fact, on the contrary, EBO of So, for example, let’s talk about. If you’re talking about Safari, EBO Safari today a lot of franchises of safari are coming to us because they’re bleeding to death. Right. How much of volume growth will you be able to do for an EBO? Your core radius is 2km. So every year, what kind of a volume growth will you be able to do? Is the population doubling every year of that community of the two kilometer radius? No. So you will have to go at a higher asp, Right. To drive a value growth that is not happening in the EVO.
So those EBOs are actually coming to us. Be it selecting and discriminating. There is a particular street where you have a VIP store, you have a safari store, and then we have a bag line store, same building. You know, this is a dealer convert. We are doing thrice the sales that these guys are doing. So you’re not comparing apples to apples. If I tell you two apple plus two guava, does it become four apple or four guava or four fruits? And I’ve said this earlier also that we are not a luggage company. We are a fashion lifestyle company.
We are an accessory company. Right. Whether you grow at a 20% or 15% even at that base and you let your EBITDA margin slip by 6%, 8%, let’s see in the long run how it might be a good strategy. But we are not in that bracket. So if you say, if you go to a shopper shop and say that, you know, Dmart is growing like this, but you guys are not. They’re both different.
Ritesh Shah
Yep. Thank you. Thank you so much. I’ve been off for your answers. Probably I’ll come over and see you in person someday. Yep. Thank you.
Abhinav Kumar
Thanks.
operator
Thanks. That is the last question. A.B. would you like to give any closing comments or do we end the call?
Abhinav Kumar
No, I would just say that I want to give a closing comment and I want to say that, see, it’s been a tough year for the overall industry. Right. And I would still say that in, you know, all the, all the, the investments that we’ve done in the background, we’ve been working very, very hard. The team has been working extremely hard in putting the pipeline. Right, Right. But a few things take time and we should give it that time. We’ll be pretty soon enough. We’ve, you know, from. I think we’ve delivered more than we committed in the year before this I think we for three straight up years we delivered more than we committed this year in the beginning itself and said that the outlook is not very strong.
I’ve been very candid, very open, very transparent and I’ve said this that we are making a lot of investments in the background and we pretty soon we’ll be back. But I’ll not be perturbed by you know, one quarter, one year going here there not been able to do, you know, a 20 kind of a growth or whatever. We are a healthy company, we are profitable company. We are very, very well poised in the market. We have all the right ticks in place. So it’s just a matter of time where we’ll be on the highway again, you know.
So this year itself I think you should be able to showcase a lot more strength that you would have seen in the last year. So yeah would end up on that. Looking forward to a good year. Looking forward to adding more brands. Very, very good, relevant brands in this year and doing a good business.
operator
Sure. Thanks, thanks, thank you to all the participants for joining on the call and thank you to the management. This brings us to the end of today’s call. Thank you.
Abhinav Kumar
Thanks, thanks, thanks.
operator
Thank you everyone.