Cantabil Retail India Ltd (NSE: CANTABIL) Q3 2025 Earnings Call dated Feb. 11, 2025
Corporate Participants:
Vijay Bansal — Chairman & Managing Director
Shivendra Nigam — Chief Financial Officer
Unidentified Speaker
Deepak Bansal — Whole-Time Director
Analysts:
Aman Shah — Analyst
Rrajesh Sharrma — Analyst
Bhargav Buddhadev — Analyst
Unidentified Participant
Aditya Sen — Analyst
Varun Thakkar — Analyst
Pankaj Shah — Analyst
Madhur Rathi — Analyst
Lovish Soien — Analyst
Varun Gajaria — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Cantibal Retail India Limited Q3 and Nine Months FY ’25 Earnings Conference Call hosted by Marathon Capital. 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. Before we begin, there’s a brief disclaimer. The presentation which Cantipal Retail India 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 Cantibal Retail India Limited business prospects and profitability, which are subject to several risks and uncertainties and the actual results could materially differ from those in such forward-looking statements.
Should you need assistance during this conference call, please signal an operator by pressing 0 on your touchtone phone. Please note that this conference is being recorded. With this, I now hand the conference over to Mr Vijay Bansal, CMD, Cannibal Retail India Limited. Thank you, and over to you, sir.
Vijay Bansal — Chairman & Managing Director
Good evening, everyone. On behalf of Retail India Limited, I welcome everyone to the quarter three and Nine-Month FY ’25 earnings conference call of the company. Joining me on this call is Mr Deepak, Whole-Time Director; Mr Basant, Whole-Time Director; Mr Nigam, CFO; Ms Punam, CF; and, our Investor Relations Advisors. I hope everyone had an opportunity to look at our results. The presentation and results release have been uploaded on the stock exchanges and our company website.
We are pleased to report a historical quarterly performance for Q3 FY ’25, setting various benchmarks. The record of 17.7% achieved during the quarter reflects the robustness of our brand, the achievement of a historical high in quarterly revenue and PAT. Despite a challenging market environment is a testament of our customer-centric approach and its potential for sustained growth and market leadership. The government’s strategy to boost consumer demand through direct tax cuts, rate cuts by RBI is anticipated to produce desirable results and overhaul revival in consumer sentiment is expected to benefit companies in the retail sector. We are committed to capitalize on these emerging opportunities and solidifying our position as a leader in the fashion sector.
Let me conclude by reiterating our key focus area, improving SSG, increasing retail presence, improving efficiencies. I now hand over the call to Mr for giving update on the financial and operational performance for the quarter. Thank you. Thank you.
Shivendra Nigam — Chief Financial Officer
Thank you, sir, and a warm welcome to everyone. Coming to the financials, standalone performance highlights for Q3 FY ’25. Revenues from operations. For Q3, revenue for financial year Q3 FY ’25 grew by 28% to INR223 crore as compared to INR174.5 crores in Q3 FY ’24. EBITDA for Q3 FY ’25 grew by 28% to INR72.5 crores as compared to INR53.9 crores in Q3 FY ’24. EBITDA margin for Q3 FY ’25 stood at 32.5% as compared to 30.9% in Q3 FY ’24.
PAT for quarter three FY ’25 grew by 43% to INR34.4 crores as compared to INR24.1 crores in Q3 FY ’24. PAT margins for Q3 FY ’25 stood at 15.4% as compared to 13.8% in Q3 FY ’24. Standalone performance highlights for nine months FY ’25. Revenue from operations for nine months FY ’25 grew by 19% to INR502 crores as compared to INR421.3 crores in nine months FY ’24. EBITDA for nine months FY ’25 grew by 24% to INR146.4 crores as compared to INR117.9 crores in nine months FY ’24. EBITDA margin for Nine-Month FY ’25 stood at 23.2% as compared to 28% in nine months FY ’24.
PAT for nine months FY ’25 grew by 19% to INR52.3 crores as compared to INR43.9 crores in nine months FY ’24. PAT margin for nine months FY ’25 stood at 10.4% as compared to 10.4% in nine months FY ’24. On the expansion front, the company accelerated its store expansion strategy by opening 43 stores net during nine months FY ’24. The company operates as of 31st of December 576 retail exclusive outlets, out of which 443 stores are company-owned and 133 are franchisee Stored. The retail area around 7.4 lakh square feet as on 31st December 2024. We will now begin the question-and-answer session. Thank you.
Questions and Answers:
Operator
Thank you very much. We’ll now begin with the question-and-answer session. Anyone who wishes to ask a question may press R&1 on the touchton telephone. If you wish to remove yourself from the question queue, you may press RN2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants you may press to ask a question hello the first question is from the line of Amansu Sakeha from Ambit. Please go-ahead.
Aman Shah
Hi, thanks for taking my question.
Operator
Sir, it’s Arnaud Sake. So go-ahead.
Aman Shah
Hi, thanks for taking my question. So I just wanted to ask so are we still on-track to achieve the earlier growth forecast that we’ve forecasted FY ’25 or have there been any revisions to this?
Operator
Sir, your voice is not clear. Can you please be a little loud, please? Hello.
Aman Shah
Hi, can you — am. Am I audible now?
Operator
The question was not clear actually.
Aman Shah
Am I audible now?
Operator
Yeah, a little bit. Yeah.
Aman Shah
Yeah. So my question was that are we still on-track to achieve the growth guidance that we we’ve spoke about — spoken about in previous calls or have there been any revisions to this?
Vijay Bansal
Yes. What I understood is that overall there is any revision on the quarter — annual target, what the question is?
Aman Shah
Yes. Yes. That’s the question.
Vijay Bansal
So yes, there is no revision in the annual targets. So the outstanding number of Q3 reflects our point. And overall, the growth what we predicted earlier as far as last year concerned, about 18% to 20% that has been there. In terms of overall revenue targets.
Aman Shah
Okay, thank you. And so just one more question. So of the 20 new stores that we’ve opened this quarter, are some of these specifically ladies and kids stores or is it what is the mix of that are some men’s wear stores?
Vijay Bansal
So we have opened like two ladies and kids store in there. So in the total, we opened 26 stores, so six versity closures. So net open — net open store with 20 stores. So — but I’m thinking about the 26 stores we opened. So in these 26 stores, seven are the men’s stores, men’s on ladies are the 10 stores, ladies and kids are the two stores, six are the family stores and one is exclusive ladies.
Aman Shah
Okay. Thank you.
Operator
Thank you. Participants, you may press star and one to ask the question. Next question is from the line of Rajesh Sharma from Anand Rathi. Please go-ahead.
Rrajesh Sharrma
Hi, sir. Hi, good evening and congratulations on a good set of numbers.
Operator
Please.
Rrajesh Sharrma
Yeah. Am I audible now?
Operator
Are slightly better.
Rrajesh Sharrma
So I just have two questions. So for Q3, our EBITDA margins were 32.5% and for the nine months, we had a 29.2% margin, whereas 26.4% was there in FY ’24. Can you? And can we consider that we will be able to achieve our earlier EBITDA margins, which was within the range of 29% to 30 which we used to achieve in FY ’22 and around ’23?
Vijay Bansal
Yes. So absolutely. As we say, we are perfectly hopeful what the numbers have been achieved in FY ’23, that is 30% of the EBITDA margin. Last year slightly there, but very confidently probably this year, we will be near to that EBITDA margin, which will be 28% to 30%.
Rrajesh Sharrma
Okay. Okay. And how are we seeing the current-season, Q4 and the revenue guidance for the next two years?
Vijay Bansal
So our Q3 number for was 17% and our SSG for the 3/4 come to be now around 6.4% now and we hope to maintain the same kind of SSG in the Q4. So we will be closing the — this year with the around 5% to 6% SSG for the whole year. So demand-side is good in the Q4 also and we will be closing with the numbers we have expected.
Rrajesh Sharrma
Okay. And yeah, that’s all from my side. And sorry, last question. How many store additions are we considering this year in this Q4?
Vijay Bansal
So Q4 we are planning that new-store addition may be something like 28 29 stores. So in the whole year, we expect to be like doing 70 to 72 new stores, net-new stores.
Rrajesh Sharrma
Okay. Okay. Okay. Thank you, sir.
Vijay Bansal
Thank you.
Operator
Thank you. Next question is from the line of Bharagav from Ambit Asset Management. Please go-ahead.
Bhargav Buddhadev
Yeah, good evening, team and congratulations for a great set of numbers.
Vijay Bansal
Thank you,.
Bhargav Buddhadev
Yeah. Sir, my first question is that what is the inventory days as on December now?
Vijay Bansal
Which base?
Bhargav Buddhadev
Sorry, inventory days and inventory
Vijay Bansal
Yes, yes. So overall, my inventory as on the balance sheet date, FGA is INR250 crores to be the precise, 249 NCR because my — this inventory is slightly on a higher size due to winter. So overall inventory days as of now is approximately 120 days, but overall target is same. I’m very sure we are closing approximately 115 days by the end-of-the financial year. So December kind of put your excellent figure by December year.
Bhargav Buddhadev
Thanks okay.
Vijay Bansal
FG because the ticket size is high enough where all winter inventory of December has piled up. But overall, 115 days in the target and we are very sure we are closing approximately that number only.
Bhargav Buddhadev
And where do we expect to-end this in March due to inventory level
Vijay Bansal
Sorry, March?
Bhargav Buddhadev
March ’25 any guidance on the inventory, what is
Vijay Bansal
115 days past FG inventory? That’s the target. 7% of you say, 18% 20% growth case up say probably 249 FG as of now we are traveling, it would be reduced approximately INR15 crore to INR20 crores by the end-of-the financial year would be approximately 100 to 15 days of my overall annual target.
Bhargav Buddhadev
And is it possible to share what has been the operating cash-flow post working capital in nine months?
Vijay Bansal
And my operating cash-flow for the nine months
Bhargav Buddhadev
December ending.
Vijay Bansal
Operating cash-flow, free-cash flow, and not care — sorry, whatever is raising, sir. I’m okay with. But operating — we can take it separately,. However, my operating cash-flow for the nine months is still on a better than EBITDA, which is approximately 90 plus year from the operations only.
Bhargav Buddhadev
And this is post working capital, right?
Vijay Bansal
So after netting of the working capital, including India’s number, I’m giving you the numbers what we have been presented.
Bhargav Buddhadev
And in terms of number of stores doing more than INR1 crore, is it possible to share what is the number?
Vijay Bansal
Right now,, it’s not ready-made, but the earlier guidance was same. However, I can take it separately with your discussion.
Bhargav Buddhadev
So great, sir and super execution and all the way.
Vijay Bansal
Yeah. Thank you, sir. Thank you.
Operator
Thank you. All participants, you may press R&1 to ask a question. Next question is from the line of Zaveri from Crown Capital Partners. Please go-ahead.
Unidentified Participant
Hello. Evening, sir. Thank you so much for taking my questions. Congratulations on a great set of results, sir. Sir, just I was hoping that if you could give a guidance for how the next two years will pan-out for us, sir.
Vijay Bansal
So overall, same, we are targeting to have a same-store sales growth always been important. So we are very sure we are delivering the 5%, 6% what the earlier guidance is there. There is no change in the budget, no change in the guidance. Going-forward, same say 15%, 18%, 19% of the total growth with 6% to 7%, 5% approximately on the same-store sale growth. The same guidance our overall team is working on the same guidance.
Unidentified Participant
Okay. So, 18% 20% for like overall revenue for the upcoming two years.
Vijay Bansal
Yes, correct.
Unidentified Participant
Yeah. Yeah. Okay, okay. And in that we’ll be able to maintain our EBITDA margin, sir
Vijay Bansal
Should be better-off just as the earlier question is asked, we have set our benchmark at the highest for the FY ’23. So this year probably we are closing that and definitely we are going to maintain that margins.
Unidentified Participant
Okay, okay. That’s helpful, sir. And sir, just wanted to know currently like how do you see the industry currently panning out? Are there any lower demand or anything on-ground, you know anything you could see that’s changing or some shift is happening that would
Unidentified Participant
You know you could tell us, sir or how is the consumer sentiment on-the-ground?
Vijay Bansal
And consumer sentiments are good. In Q3 also, we noticed the consumer sentiments were upbound. So in Q4 also, we are hopeful that the numbers will be as per the guidance and as per the expectations. And the winter season also going — wedding season also going well, there are a number of weddings this quarter. And so numbers will be as per the expectations in Q4.
Unidentified Participant
Okay. Okay, fair enough, sir. That’s it from my side. Thank you so much. All the best.
Vijay Bansal
Thank you. Thank you, sir.
Operator
Thank you. Next question is from the line of Aditya Sin from RoboCapital. Please go-ahead.
Aditya Sen
Hi, thank you for the opportunity. Sir, how many stores are you planning to open in the next two years?
Vijay Bansal
So we are planning to open 75 new stores every year. So if we combine the two, yes, so we will be planning to open 150 new stores.
Aditya Sen
All right, got, sir. That was it. Thank you.
Operator
Thank you. Next question is from the line of Varun Thakar from Asset Management. Please go-ahead.
Varun Thakkar
Hi, am I audible?
Operator
Yes, you are.
Vijay Bansal
Yes, sir. Yes, sir.
Varun Thakkar
Yeah. Sir, I just had a question about the store economics. You have just opened about 26 new stores this quarter. Wanted to know what are the peak revenue numbers that you are looking to achieve from these stores and what is the usual payback period for such stores.
Vijay Bansal
Correct. So considering the investment what we are making in the new stores because earlier we also said we are now opening slightly bigger stores. So my — the number for the nine months for opening the store size is approximately INR700 plus 726, 1,700, sorry, INR1,700 plus. So if I keep it INR700 plus and my capex cost is coming approximately INR1,700 to INR1,800 per square feet. And at the same time, we have approximately INR22 to INR2,400 of the investment in my inventory.
So broadly, overall approximately INR4,500 approximately we are investing in opening one Cocoa store and considering the maturity of the stores because my second year approximately INR120 lakhs is my average revenue for the store, which in the bigger store is slightly more. So that has been coming in the second year you can say maturity. So on these basis of competition, approximately two to 2.5 years is a payback period, average payback period for their stores.
Varun Thakkar
Is it the same for the franchisee-owned stores?
Vijay Bansal
Franchisees old stores is not much opening now because companies sizes are bigger. So we are mostly opening the company-owned stores. So on-net basis, only two stores being opened in the franchisees. So franchisee viability slightly on a push — they are as per our calculation, getting the payback yet approximately three to 3.5 years?
Varun Thakkar
All right. All right. And just wanted a guidance about the overall operating margins. Do you think this high base is achievable or are we going to be looking at a 25% to 26% on a long-term basis.
Vijay Bansal
So as I just said, our benchmark has been set and we are targeting those number only. So going-forward, my gross margin is to be maintained. This quarter, if you have seen, we have delivered better gross margin by 1%. So when we are maintaining approximately 56% to 57% of the gross margin, we’ll come back to 28% to 30% of the EBITDA margin and 10% to 11% of the PAT margin. And these are the numbers, sustainable long-term numbers. It should be better-off, but for next few financial year, we are being targeting those numbers.
Varun Thakkar
All right. Thank you, sir. That’s it from my side. Thank you, sir.
Operator
Thank you. Participants, you may press R&1 to ask a question. Next question is from the line of Neen Shah, Individual Investor. Please go-ahead.
Unidentified Participant
Sir, good evening. Congratulations on — congratulations on good set of numbers. Just a follow-up question to an answer which you just gave. Any particular recalibration of strategy leading to this margin expansion on the gross margin front or EBITDA margin.
Vijay Bansal
So nothing like this. So there is — we are mostly at the company who is working on the basics and KPIs. So there is no change, though this one. So these are the margins slightly because the cost is fixed in nature. The more we are getting the better same-store sales growth, the EBITDA margin is definitely going to improve, which we are reflecting in our results as well. So overall guidance is says there is no much changes in the margins and the strategy as well.
Unidentified Participant
What I meant was also on the gross margin, as you rightly mentioned about 100 bps expansion, was it on account of any composition changes in merchandise or anything specifically or was it only this quarter or specifics?
Vijay Bansal
So if you have seen there is a slight percentage increase in our ASP, which is probably there is a slight correction on the prices. So basically those are the reasons, 60% to 61% only 1%. So broadly, these are the numbers is going to be maintained.
Unidentified Participant
And sorry at the cost of reputation, just reconfirming what is the new-store targets which you’re planning to open in FY ’26?
Vijay Bansal
And FY ’26, so this year, as of now we are opening approximately 75 stores, 70 to 75 stores this financial year. Going-forward, 70 to between 70 to 86 years is the target.
Unidentified Participant
And this all will be cocoa driven predominantly majority. Majority it would be cocoa-driven. And indicative of relative capex would be how much broadly?
Vijay Bansal
So as I just said, approximately 1,700 square feet is my area going-forward as well, which is having approximately INR1,700 to INR1,800 per square feet of the capex. So on this basis, if you say approximately INR20 in terms of store expansion capex is going-forward.
Unidentified Participant
Got it, sir. Thank you. Thank you so much and congrats on, sir.
Vijay Bansal
Thank you.
Operator
Thank you very much. Participants, you may press R&1 to ask a question. Next follow-up question is from the line of Rajesh Sharma from Man Rathi. Please go-ahead.
Rrajesh Sharrma
Hi, sir. So I have a couple of questions. So I wanted to ask, what would be your revenue category-wise men, women, kids and accessories.
Vijay Bansal
So by category revenue is 81%, ladies category is 12%, kits and accessory both are 4%.
Rrajesh Sharrma
Okay. And so in the South — South India, we have a — our presence is almost negligible. And do we have any further plans of increasing our footprint over there?
Vijay Bansal
Not in the near fusion, it’s not right in the next year, but next to next year we are — we are planning to go to South India.
Rrajesh Sharrma
Okay. And sir, regarding the new stores that we are opening, what would be the average store size?
Vijay Bansal
Average store size is 1,700 square feet plus.
Rrajesh Sharrma
Okay. And would be also looking at opening larger stores, more than 2,000 square feet, something like that?
Vijay Bansal
So we are opening the larger store also. So some stores are below 1,700 and some were above 1,700. So the stores which are above 1,700, naturally in the range of 2,000 to 2,500 square feet.
Rrajesh Sharrma
Okay. And sir, the last question. So how would be financing the opening of these new stores? Would there be any spike in our borrowings would be we have sufficient internal accruals for this?
Vijay Bansal
We have sufficient internal accruals, so we are not planning to take any debt for funding the expansion. It’s — it can be easily funded through the internal accruals.
Rrajesh Sharrma
Okay, sir. That’s all from my side. Thank you.
Vijay Bansal
Thank you, sir.
Operator
Thank you. Next question is from the line of Panaj from Nuvama Wealth. Please go-ahead,
Pankaj Shah
Yeah, sir. Thank you for the opportunity. Sir, you mentioned about opening the large-sized stores. So will all — would all the stores that you would be opening are large-size now or there would be smaller-sized stores there also.
Vijay Bansal
The smaller-sized stores are also there. So we average store size is 1,700 square feet. And every company average is 1,200, 76 square feet is company average, but the new-store average is 1,700 square feet which we are opening. So this is a mixed stores, the new stores which are coming, they are smaller in size also, but predominantly are bigger in size.
Pankaj Shah
Okay. Okay. And sir, a lot of value retail players have been growing very aggressively and posting very strong numbers. So like would you consider them as your competition or it’s a totally different category for you? What are your thoughts on this?
Vijay Bansal
It’s a totally different category because ASP of the value brand is around INR500 and we are working on the average selling price of INR1,100. So our ASP is almost double what those people are selling. So we consider into the mid-premium segment and the brands which have an ASP of INR500 are in the value segment. So customer profile, customer targeting is different.
Pankaj Shah
So sir, which — like who do you consider Your competition?
Vijay Bansal
Competition, if you consider the direct competition, then it’s like Peter England brand is there who has a very similar kind of the ASP.
Pankaj Shah
And sir, like would — do you track the data about how they are going or are you gaining any market-share? If you could like throw some light on this, how the competitors are growing and how we are growing?
Vijay Bansal
Market-share is what market-share is easily trackable in the FMCG industry, but in the garment industry, the market-share is not easily tracable because there is unorganized sector also. So it’s tough to say about the market-share.
Pankaj Shah
Okay, sir. Okay. Okay. That’s it from my side. Thank you. Thank you for the answers. And all the best for upcoming quarter.
Operator
Thank you. Next question is from the line of Madhur Rathi from Counter Investments. Please go-ahead.
Madhur Rathi
Sir, thank you for the opportunity. Sir, I wanted to understand Madur sir, you’re not audible. Is my audio better right now
Operator
Hello mother
Madhur Rathi
Yeah hello, hello
Operator
Yes go in.
Madhur Rathi
Yeah, sir, I wanted to understand do we have plans to open some new stores or some new brand and just are like 1,100, 1,200 the value kind of segment going-forward or are we planning to stick with for right now
Vijay Bansal
That the brand Canta will established in 2000, it is in 2025, which is brand Canta Bil it is going-forward only brand Cantor Bill. We are as just said, we are operating in a particular ASP. So there is no — we are not opening a new value kind of competition, nothing like that. It is only.
Madhur Rathi
Okay. So what I wanted to understand was right now our stores are performing very well, but like sooner or later you see some kind of brand in the clothing kind of segment where some of our competitors are faced it as well. So sir, I wanted to understand, going-forward, are we trying to at least protect ourselves as create something new, which will extend this — our brand presence and a competitive advantage going-forward. So I wanted to understand on that front.
Vijay Bansal
Yeah. Okay. So once again, so these as I just explained, there is a segment, right? So we are positioning ourselves as a mid-premium segment. There is a mid-segment, value segment as said, there is a segment of having INR400 to INR500 of ASP. Then there is another segment which are having INR2,2500 plus segment. Now the largest segment what we are serving is 1,200 ASP, which has been followed. So we are there. We have a 45 lakh plus of the customer database to whom we are serving. So this is quite the larger which we are serving. So we are in the same way, same operation, mix can be there in terms of current fashion, other factors. But overall, the ASP what we have been operating, that would have been there, right?
And as the competition side, as you just mentioned, this is difficult because is such a brand. Now any brand you for take, one may be very good in the formal, few brands is very good within the segment. Within one roof, hardly you will find in any brand who will be serving such much of a huge deep range in terms of whether it’s a formal, whether it’s a cash well. So we are operating in our segment and it’s a mid-premium segment where we are operating. And going-forward also, the same segment would be maintened.
Madhur Rathi
Okay, sir, so sorry, I wanted to understand on the mid-premium segment only. See, do we plan to like do some extension brands or something else for that front,
Vijay Bansal
No, we are not planning to acquire new brand. You will be going with our own brands.
Madhur Rathi
Okay, sir. Thank you so much and all the best.
Vijay Bansal
Thank you, sir.
Operator
Thank you. Next question is from the line of Lovesh from Banyan Capital Advisors. Please go-ahead.
Lovish Soien
Hi, thank you for the opportunity and congratulations on the great set of numbers. My first question is regarding the SSG that we have reported. What is the reason behind such a drastic improvement? Improvement because earlier we were lagging and now it’s a certain point and then we are also forecasting that it would settle down around at 5%, 6%. So what’s the reason behind why it’s increased drastically in 3Q?
Vijay Bansal
And the major reason is the wedding dates. There were large number of wedding dates this time as compared to the last year. And in summer, summer time also there were not much wedding. So there was the accumulation of the weddings in the Q3. And so there was a great uptick in the demand. So this is the major reason for the growth same-store sales growth. Simultaneously, we have made good changes in our new collection also. So new collection picked-up very well this time. And these two reasons combined made the good SSG.
Lovish Soien
Got it. But we expect SSG to come down. So why are we expecting this? Because if there is a certain improvement, so can it sustain at these high levels or will it come down to around 4%, 5%? So our yearly SSG now is 6.4%.
Vijay Bansal
So we expect the same kind of number between 5 to 64 the yearly figure.
Lovish Soien
Got it. Got it. My second question is that you mentioned that you closed six stores in 3Q. Now if I remember correctly, you had closed only four stores in FY ’24. So what’s the reason behind the increase in-store closures this quarter?
Vijay Bansal
Okay. So earlier when we are talking about four number that year also, it was eight closure, four were relocations and four were the closer. So out of this total number seven total till now, 12 stores approximately has been closed, seven was reclosure and six was the relocation and six was the closer. So net closure, if I’ll say for nine months is six of it.
Lovish Soien
Got it. Thank you.
Vijay Bansal
Yeah.
Operator
Thank you. Next question is from the line of from Inside Advisory. Please go-ahead.
Unidentified Participant
Good evening, sir. Congratulations on a very good set of number. I have couple of follow-up questions of from what my other have already asked. First is you mentioned that the men segment would be around 81% and balances ladies, kids and accessories. So there seems to be a huge opportunity to expand on ladies and kids and especially when kids beer segment and ladies beer segment, there are no credible brands available. So what is our strategy towards capitalizing on that gap and capture that market-share by giving a credible Canta Bill chicks section or a Canta Bill women section. Any strategy or any thoughts towards that? That was my first question.
Vijay Bansal
So right now we are opening around the store size of 1,700 square feet and the company’s average store size is 76 square feet. So larger stores have a collection of kids and ladies with them. And we are also opening ladies and kids exclusive stores. So we have right now around 50 ladies and new kids exclusive stores. So the ladies and kids exclusive store, we also plan to open around 15 to 18 stores every year. So definitely the contribution of the ladies and the kids category is going to increase in future because we are opening bigger stores, family stores and the ladies and kitches to see stores as well.
Unidentified Participant
So incrementally, we can assume that there would be a gradual shift, say, maybe 2%, 3% more towards kids and ladies year-on-year basis?
Vijay Bansal
Yeah, you are right.
Unidentified Participant
Okay. Second question was on inventory provisioning. So what is our policy towards low-moving inventory? Do we take routine quarterly provision how does it work?
Vijay Bansal
So sir we are having policy of provision a strong policy up to there are three kinds of category of their merchandise. Number-one, what we are keeping fresh store. So one and a half year is broadly one year and one and a half year because we are almost keeping two seasons as well at the store. So one and a half year is there in the store, one and a half year to three years and more than three years, right? Then we have a super factory outlet. So we are making 100% provisioning for superfactory outlet or any defective or something kind of material is there, clear policy, then anything above 3%, which is hardly 3%, 4%, 50% more than three years, we are making the provisioning. And 1.5 to 3 years we started making a provisioning of 10%. So up to 1.5 years, no provisioning, all sell 1.5 to 3 years, 10% provisioning, more than three years, 50% provisioning, super fatty outlet, 100% provisioning.
Unidentified Participant
Okay another question is on you know, considering, you know we come under the discounted model you know our stores are always there is a discount which is offered and alongside there is this end of season sale which this time around it started a little earlier. The announcement started a little early so it started from Q3 and Q3 and it’s currently going on. Plus
Unidentified Participant
We have competition from the likes of say V-Mart, V2, Bazaar, Sil Bazaar and all. So will it have an impact for quarter-four pressure considering the prices of the V2, and the value formats, we are not into the competition with them because our ASP is around INR1,100 and then their ASP is quite less compared to us.
Unidentified Speaker
And the EUSS period starts in December only and by January only a discount percentage tend to increase because we have this and we say publicly festivals that time. So discounting and bundle offers are the same what we were offering last year and this year also the same kind of offers are there. So that’s why gross margins are maintained and so similar things we plan to go in the next year as well.
Unidentified Participant
Okay. And my last question is more to do with manufacturing capacity of. Two questions to that. Are we planning to add more capacities? And secondly, because of the Bangladesh prices wherein the manufacturing of — has been impacted, especially garments. Do we see any opportunity in terms of export or that we have our own manufacturing facility? And similar question then are we planning to open up stores overseas, new neighboring countries.
Vijay Bansal
So as far as manufacturing is concerned, we have a state-of-the art manufacturing plant is in our, which has a capacity of producing 15 lakh garment, right? And through our own fabricator as like our own manufacturing, we are supplying 60% of our requirement through own factory as well as fabrication and balance 40% is obviously FOB side, right? So my existing factory of 15 lakhs can go up to 18 lakhs. So there is no plan of establishing another factory. However, through job work, these supplies is to be filled.
So overall going-forward also 60% of my supplies is to be maintained by factory as well as my fabricator and 40% FOB from Ludhiana and is to be there. So this is the plan as of now and going-forward to be maintained. As far as Bangladesh manufacturing is concerned, we have not been emphasizing much on this as of now. Our requirement is being done indigenous only. And yes, as far as expansion for we have two stores in Depal as well. So going-forward, any of the good opportunity we are going to explore.
Unidentified Participant
I — that’s it from my side. I’ll join back the queue and hope then the great show continues. Thank you.
Vijay Bansal
Thank you, sir.
Operator
Thank you. Thank you very much. Next question is from the line of Mittal from Ratnatra Capital. Please go-ahead.
Unidentified Participant
Hi, thank you for the opportunity and congratulations on the great set of numbers. I just had one question. So you mentioned that the wedding because of higher number of wedding dates also, the same-store sales growth was a little bit on the higher side. So I just wanted to understand what portion of our business gets impacted. I’m guessing it’s the suits are part of the segment, right? So as a percentage of sales, what would be that portion, which gets impacted due to higher writing dates?
Vijay Bansal
Okay. So suit, blazer and waste coat constitute 15% of the total sales, but that there is uptick in-demand in shirts also during the wedding season because that may only combo with the blazers and the suits and the waste coat. So every growth level, you can say 20% of the revenue is directly linked to the wedding beer.
Unidentified Participant
Understood. Yes, sir. Thank you so much. Thank you and all the best.
Vijay Bansal
Thank you. Thanks,. Thank you.
Operator
Thank you. Next question is from the line of Varun from Omkara Capital. Please go-ahead.
Varun Gajaria
Hi, hey, sir, thank you for the opportunity. Sir, just wanted to check you had — you gave the store split number, right. So I’m sorry if I didn’t get it right. We opened 20 stores in this quarter, right. So can you give me the split of what were means there and family stores?
Vijay Bansal
So out of this 20 — 20 is a net number out of 26 because three has been relocated and three has been closed, as I just said. So 26 bifurcation in men’s store was seven. Men’s and ladies was 12, 10, ladies and kids was exclusive two and the family stores were six, you can say. So this was the bifurcation.
Varun Gajaria
Okay. Okay. And how are we seeing this trending? In the last nine months, how have we done? First of all?
Vijay Bansal
Sorry, your question, can you please come back to the question again?
Varun Gajaria
In the nine months, we’ve opened 4 to 43 stores right so what has been the split there?
Vijay Bansal
But out of total stores open in nine months, right?
Varun Gajaria
Yeah, yeah.
Vijay Bansal
So you can ride 17 stores for the men’s stores, sir, 20 was the ladies and men’s stores. Okay, and the balance were ladies and kids. You can take ladies and kids’s stores are nine and the balance of the family stores.
Varun Gajaria
Okay, got it. All right. And we’ll see the split changing so going-forward?
Vijay Bansal
Same thing we told. So here overall we are opening the bigger stores, but where the good property is smaller like if you say Maharashtra, there is not a much bigger size available. The the store mainly we are opening and overall target is to maintain slightly on a bigger stores store, plus exclusive ladies and the stores.
Varun Gajaria
And when we mainly look relocate these stores, is there any cost — any kind of cost that we incur?
Vijay Bansal
Which one, sorry?
Varun Gajaria
Suppose we’ve relocated some stores, right? So is there a — is there a cost that we currently located to?
Vijay Bansal
Yes. What is the relocation mean? Since we are having nine years of lease periods, now we have 600 stores. So every month, couple of the stores to be renewed. So if we are getting any better opportunity in the nearby stores, we close that store and open the nearby. So that is being considered as a relocation.
Varun Gajaria
Okay. So that has accounted for
Vijay Bansal
The capex is required. Yeah, capex is required in the relocation stores as well mostly.
Varun Gajaria
Okay. So is that accounted for — is that accounted for when you say we’d be doing around INR40 crores INR45 crores of capex in the next two years?
Vijay Bansal
Sorry, come back capex in relocated stores?
Varun Gajaria
Yeah. Is that accounted for in the capex target that you have?
Vijay Bansal
Because my old stores has been closed and nearby we are relocating the store. It’s a new-store. It’s a new-store being treated. So everything is new.
Varun Gajaria
Okay. Okay, got it. Got it. So this is accounted for, right? That’s right.
Vijay Bansal
Everything capex inventory, everything is accounted for, yeah.
Varun Gajaria
Okay. Thanks.
Operator
Thank you. Next follow-up — sorry, participants, you may press start and one to answer the question. Next follow-up question is from the line of Lavesh from Capital Advisors. Please go-ahead.
Lovish Soien
Thank you for the follow-up. Just continuing on the SSSG topic. I mean, your peers in the apparel retail space have reported much lower numbers. So I mean, just wanted to understand what are we doing differently to report such high-performance
Vijay Bansal
So it’s majorly about the wedding bear season. So we had a good collection this time for the wedding bear category. And our store locations are also very prime, what we opened last year, we opened this year. So these new stores have contributed really well for the — like SSG that we opened last year. So — and as I told, combination of the new wedding dates and our new collection clicked very well. So that’s why we are able to achieve good SHG.
Lovish Soien
And just to confirm, what was the number that you mentioned that constitute the revenue as from the wedding season?
Vijay Bansal
So 15% of our revenue come from the sooth, blazer and the waste coat category, but shirts demand also used to increase because any person buying suit or the blazer have to buy shirt long music. So around 20% we think that wedding bear category contributes in the total series.
Lovish Soien
So this is for the full-fiscal year or for 3Q only?
Vijay Bansal
This is for the full-fiscal year.
Lovish Soien
And in 3Q, how much would it be, if you could just give a sense?
Vijay Bansal
Q3 it will be much higher, so if a specific number, you won’t be — we can email you.
Lovish Soien
Sure. Okay. And just one last thing. The stores that you mentioned that you had closed, were these men’s exclusive stores and then you relocated into ladies stores or family stores? Just give a sense of which stores were closed, which are the new stores that you relocated and
Vijay Bansal
This is a mix of like mix of stores. So family stores are to the much closer, family stores and closed may have majorly men’s or the men’s and lady stores have got closed.
Lovish Soien
And then those closes — store closers are now leading to more family stores. Is that right?
Vijay Bansal
Yeah, where we are closing, we try to open a bigger store in that locality. So Yeah, family stores are getting bigger in number.
Lovish Soien
Got it. Thank you.
Operator
Thank you. Okay, sir. Next question is from the line of Arpan from Inside Advisory. Please go-ahead.
Unidentified Participant
Hi, thanks for taking us in. Just wanted to understand what was the price hike taken during the year during the quarter or during the year
Vijay Bansal
So if you can see our average price hike for the nine months, my average ASP has been increased by 1.5% average ASP for the nine months, right, if we had given in the presentation as well. So this is the price. However, my Q3 was — ASP was slightly on a higher side. So overall 2% to 3% is a price impact this year. But on an average basis.
Unidentified Participant
Okay, okay, okay. And just a few bookkeeping numbers. What was the inventory debtors and creditors?
Vijay Bansal
So — if I talk about Alvan inventory debtor in creditor number and just coming to the inventory as I, a nine months.
Unidentified Participant
What was that — what was that as at 30th September? 30th December. 31st December.
Vijay Bansal
Yeah, 31st of December number. My overall FG inventory was 249. However, including my investment divid, it is 286 is my inventory number. However, my credit receivable is 24 crores and my creditor. My creditor side is INR63. These are the exact balance sheet numbers.
Unidentified Participant
Okay, okay, okay. Any scope you see in terms of reduction of inventory?
Vijay Bansal
Yes, as I just told, this is the highest revaluate because of my winter season. Overall, I’m expecting to come in down to 115 days, maybe plus-minus one or two days. So it should have been — come down from 249 to 230 in terms of FG. My debtors should be maintained at this level is not going to increase basically because of e-commerce realization and some B2B these numbers are then, otherwise my trade receivables are not much higher. And my creditor should be not much going to increase because mostly we are operating maximum as well additionally vendors who are paid on-time within 45 days. So it should reduce or to be maintained at this level.
Unidentified Participant
And last question, how much was the online sales for nine months?
Vijay Bansal
My online sales for the nine months is approximately 33. That is out of this. Yeah.
Unidentified Participant
Okay. Thank you.
Unidentified Speaker
Thank you.
Operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. Next question is from the line of Neil Shah, Individual Investor. Please. Please go-ahead.
Unidentified Participant
Sir, just a couple of follow-up questions. You mentioned about the performance in Q3 was predominantly on account of in-season. Just wanted to check how was the performance of the winterwear because you were saying winterwear inventory was also there contributing to higher inventory. So how was the overall sales performance on the winterwear category for Q3?
Vijay Bansal
So winter we performed well in the Q3 — Q3 and timing because there was a good onset of the winter. And as I mentioned, there was a great demand in the Q3, so winter we also picked-up very well in that time. So
Unidentified Participant
Okay. And a follow-up question to the capex question which I asked earlier. Obviously, INR40 crore INR45 crores you mentioned about the store capex. In-between, you also talking about some capex on the corporate front, which was the corporate office so where has that reached and what is the balanced capex on that front?
Vijay Bansal
And for my total CWIP as on-date, if we, total CWIP is approximately 35c, which has majority being captured by this my new warehousing come office, right? So for the — it is going to be finished by next six to eight months, which is required additional capex of 15, right? Overall project would be closed isn’t somewhere in-between June, July or maybe August. 15 CR more capex has been required. Land has already been capitalized in-balance sheet this is what the going-forward capex is required for my new plant — new project. So basically a 45 on the storefront plus 15 CR added. My storefront is required approximately 20.
Unidentified Participant
Okay. Okay, okay. Okay. And the targeted related thing is targeted ROE for the coming year then basically?
Vijay Bansal
So we are coming back to those numbers. So in terms of ROE, probably expecting 24% to 25% and ROCE should end-up with 36% 38%.
Unidentified Participant
Okay. Congratulations on the game, sir. Thank you so much.
Vijay Bansal
Thank you, sir. Thanks a lot, sir. Thank you.
Operator
Thank you very much. As there are no further questions, I will now hand the conference over to Mr Deepak for closing comments.
Deepak Bansal
I would like to once again thank you all 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 CFO or IR team for any clarification or feedback. Thank you all.
Operator
Thank you very much. On behalf of Cantibal Retail India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.
Unidentified Speaker
Thank you.
Operator
Thank you, sir