Cantabil Retail India Ltd (NSE: CANTABIL) Q4 2025 Earnings Call dated May. 16, 2025
Corporate Participants:
Vijay Bansal — Chairman & Managing Director
Shivendra Nigam — Chief Financial Officer
Deepak Bansal — Cantabil Retail India Ltd.
Analysts:
Arnav Sakhuja — Analyst
Himanshu Bisani — Analyst
Ankit Babel — Analyst
Bhargav — Analyst
Tan Meh — Analyst
Shrinjana Mittal — Analyst
Rajesh Jain — Analyst
Yogesh Bhatia — Analyst
Naitik Mutha — Analyst
Yash Bajaj — Analyst
Arpan Rathore — Analyst
Presentation:
Operator
Please wait while you are joined to the conference. The conference is now being recorded Ladies and gentlemen, good day and welcome to the Cantibal Retail India Limited Q4 and FY ’25 Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touchstone phone. Please note that this conference is being recorded.
Before we begin, a brief disclaimer. This presentation, which Cantibal 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.
I now hand the conference over to Mr Vijay Bansal, CMG, Retail India Limited. Thank you, and over to you, sir.
Vijay Bansal — Chairman & Managing Director
Thank you morning, everyone. On behalf of Retail India Limited, I welcome everyone to the Q4 and FY ’25 earnings conference call of the company. Joining me on this call is Mr Deepak, Whole-Time Director; Mr Svendan Nigam, CFO; Ms Punam, CS; and Capital, our Investor Relations Advisor. I hope everyone had an opportunity to look at our results. The presentation and result release have been uploaded on the stock exchange and our company website.
FY ’25 has been a historic year in terms of performance. We are operating with 600 showrooms now and our company reported highest-ever revenue and PAT setting new benchmarks. The SSG for the year stood at 4%, the achievement of a historical high in revenue and profit-after-tax. Despite a challenging market environment, easy test to our customer-centering approach highlights the brand’s competitive advantage and its potential for sustainable growth. To further capitalize on the brand acceptance, we have outlined a vision to 2027 of achieving INR1,000 crore turnover by FY 2027.
I now hand over the call to Mr Nigam for giving update on the financial and operational performance. Thank you.
Shivendra Nigam — Chief Financial Officer
Thank you, sir, and a very warm welcome to everyone. Coming to the financial performance. Standalone performance highlights for FY ’25. Revenue from operations for FY ’25 grew by 17% to INR721 crores as compared to INR615.6 crore in FY ’25. Company reported its highest-ever yearly revenue during FY ’25. EBITDA for FY ’25 grew by 26% to INR205 crores as compared to INR162.7 crore in FY ’24. EBITDA margin for the company for FY ’25 stood at 28.4% as compared to 26.4% in FY ’24. PAT for the company for FY ’25 grew by 20% to 74.9cr as compared to 62 cr in FY ’24. PAT margin for FY ’24 stood at 10.4% as compared to 10.1% in FY ’24. Here also the company has achieved a higher revenue PAT during FY ’25.
Now I come to the standalone performance highlights for Q4 FY ’25. Revenue for operation for Q4 FY ’25 grew by 13% to INR219 crores as compared to INR194 crore in Q4 FY ’24. EBITDA for Q4 FY ’25 grew by 31% to INR58.6 crores as compared to INR44.8 crore in Q4 FY ’25. Our EBITDA margin stood for quarter-four FY ’25 stood at 26.8% as compared to 23.1% in Q4 FY ’24. PAT margin for quarter-four for the company FY ’25 grew by 23% to INR22.5 crores as compared to INR18.4 crore in Q4 FY ’24. PAT margin for company for quarter-four stood at 10.3% as compared to 9.4% in Q4 FY ’24.
With this, we may now begin the Q&A session. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star in one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star in two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Arnav from Ambit Assets Management. Please go-ahead.
Arnav Sakhuja
Hi, thank you for taking my question. So I see in your Vision 2027 that you mentioned you plan on increasing the stock count to 725. So are these stores mostly going to be concentrated — these new stores are going to be concentrated in Tier-2 and Tierc cities or more in metro cities?
Deepak Bansal
So right now, we have a like presence of 20% of the stores are in the Tier-1 towns, 40% Tier-2 and 40% in Tier-3 towns. So same kind of spread we are expecting in the next two years. And what would be the average size of these new stores that you are planning to open. So last year, our average size was 1,635 square feet. So it’s going to increase a little bit till 1,700 square feet per square for the new stores. And for the average score of company today stand at 1,300 square feet.
Arnav Sakhuja
And just one last question. So these are newer stores that you plan on opening, are these going to be more ladies, men stores or mixture of?
Deepak Bansal
So it will be a mix right now like we have 10% of our store ladies kids store, 20% are the family stores, 30% are the men’s and ladies stores and 40% are the men’s stores. These are — these are both classification of the stores. So in the same manner, we will be going be going-forward.
Arnav Sakhuja
Okay. Thanks answering my questions.
Shivendra Nigam
Thank you, sir.
Operator
Thank you very much. The next question is from the line of Himanshu Bisani. Please go-ahead.
Himanshu Bisani
Hello, sir. Thanks for the opportunity. Sir, I actually wanted to understand that our volume growth has been impressive of 15% over the year, but our average sales price has been more or less being constant. So are we selling more of our affordable item and what does that do to our margin? If you could throw some light on that?
Shivendra Nigam
So our US is increased by INR20 when compared to the last year. So we always mentioned that our USP is our average selling price because we are into the premium segment brand and we are not value brand and not coming to the premium segment brand. Because this space at ASP of INR1,060 is very less crowded. So we plan to be in this space only in the future also.
Himanshu Bisani
Yes, sir, I understand that. But just on that because our volume growth was higher than our average sales price. So just wanted to understand, is there the range because of the comparatively lower-price products?
Shivendra Nigam
So actually what I understood probably the question is not clear. Our volume is definitely high by 15% and my overall sales is high by. In terms of value is 17%, right? So it’s a mix. It’s a slight correction and overall going-in the same ratio also or any other clarification required?
Himanshu Bisani
No, sir. So we are more or less planning to be in the higher premium of a premium affordable kind of category only, right?
Shivendra Nigam
Yeah. So we are positioning ourselves as a mid-premium segment. So we are very balancedly poised in mid premium segment. And going-forward also in the same category, we are going to operate.
Himanshu Bisani
Understood, sir. Understood, sir. And sir, with that new target of INR1,000 crores by FY ’27, so that includes a CAGR of 17%, 18%. So this is what we have been doing that you know for last historical years as well. So we plan to be — this is a very realistic target of INR1,000 crores. So are we very confident of achieving that, right?
Shivendra Nigam
Right, correct. Absolutely. We are always in the believer of long-term sustainable business, you can check our history as well. So the same number we are going-forward. So all the planning is accordingly.
Himanshu Bisani
Understood, sir. Thank you. I’ll join back-in queue.
Shivendra Nigam
Thank you.
Operator
Thank you very much. The next question is from the line of Ankit from Ventures. Please go-ahead.
Ankit Babel
Yeah, good morning, sir, and congrats for a decent set of numbers. A couple of questions, sir. You — I mean, the question was in continuation of your vision statement of INR1,000 crores. So what kind of SSGs are you building in while estimating this INR1,000 crores revenue for the next two years, ’26 and ’27?
Shivendra Nigam
Okay. So out of this, we are having 5% to 6% target to have the same-store sales growth.
Ankit Babel
Okay. And you know the revenue per store, what are your assumptions for the new stores because what we have witnessed historically for your company and even other companies that any incremental store you open has a lower PSF compared to your older stores. So what kind of PSFs you are estimating for the new stores?
Shivendra Nigam
So if you see, we have covered some PSF this year. Last year our PSF was 800 and obviously when the earlier commentary, we also mentioned the moment we are opening the bigger store theoretically per square feet dimensions have been slightly changed. So this year we end-up approximately 785 is our PSF, right. But the average — you just mentioned the average sale per store that has been improved from last year 116 lakhs to this year approximately INR119 lakh, right? So going-forward, approximately INR800 per square feet sales we are looking at it and this absolute number of 119 or 120 is going to be increased.
Ankit Babel
So you opened, if I’m not wrong, some 66 stores last year. Okay. And how many stores you opened in FY ’24?
Shivendra Nigam
FY ’24 net numbers, FY ’24 was opened 84.
Ankit Babel
So on those 84 stores, what has been the per square feet sales or a per store-sales, whatever number you have compared to the company average, was it lower? Was it higher? Was it same?
Shivendra Nigam
So that we see, there is a maturity we had, obviously the first year the sales would not be full for those has been opened. But overall is going to — we achieved, as we said, two years we are taking to the maturity. So going to the exact number that is not readily available to me, that I can share with you separately for only those new stores.
Ankit Babel
Okay. And how is the performance of the 66 stores? I know it’s too early, but what are the initial numbers there?
Deepak Bansal
So it’s as per the expectations, what we have targeted. So there are no bad stores as such, we have to shut-down or something was below expectations, it’s as per the expectations.
Ankit Babel
Okay. And sir, how is the consumer sentiment now? Last six to 12 months, we have seen some slowdown, you know, in the consumer across the industry, but what we have been hearing was that this quarter is a very good wedding season. So how was your experience in April and May months so-far. Did you see some pickup in the demand?
Deepak Bansal
Yes, there is pickup in the demand and there is a positive sentiment and there is positive.
Ankit Babel
I mean it’s better than the Q4 and the Q3 run-rates?
Deepak Bansal
It’s better than the Q4, but yes, Q3 exceptionally did well. RFG was very-high. It’s below Q3, but better than Q4.
Ankit Babel
Okay. Okay. And what’s the outlook on the profitability side, say, in the next two years once you achieved INR1,000 crore revenue, will you sustain your margins at current level or you feel there will be an improvement or a decline whatever.
Shivendra Nigam
So if you have checked our margin, EBITDA margin this year from last year, we have improved, right? The sale has been improved as well as we improved from 25.5% we reached up to 28%. So as we earlier said on categorically, we mentioned earlier as well. We have taken a target to whenever reaching the INR1,000 crores. We have to maintain our gross margins approximately 55%, 56% and then the EBITDA margin in the range of 28% to 30% is going to be maintained. So that is there is no reshaping on the numbers, all the — all targets.
Ankit Babel
Okay. So this 28% now is the base for you and you’ll only improve from here on. So we should not be worried about a high base of 25%.
Shivendra Nigam
Not exactly. Not exactly. We are continuously improving ourselves. So all these are the committed numbers.
Ankit Babel
And this growth, whatever you are estimating, you believe is can be funded through internal accruals, right, and you don’t need any fundraising for that?
Shivendra Nigam
Not at all. We should — no, not at all. Absolutely from the internal accruals going-forward as well. We are the cash of company.
Ankit Babel
Okay. And sir, last question is on the inventory side. So what was the — what are the targets here? Is there a scope to reduce the inventory days or do you believe that the current working capital cycle will remain for the next two, three years?
Shivendra Nigam
So the business model what we have, so many times we explained. So this is what the target is. Our 120 days approximately always said in terms of energy, we are going to be maintained, right? Last year it was 150 due to some lesser winter, it is on a — slightly on 120 121 days. But we are never it is going below 110 days. So we are — long-term target is to maintain somewhere between 110 to 115 days and that is going to be.
Ankit Babel
Okay. So you will sustain it at the current levels.
Shivendra Nigam
Absolutely. The current level would be sustainable.
Ankit Babel
Okay. I think, yeah, that’s it from my side, sir.
Shivendra Nigam
Thank you. Thanks,. Thank you.
Operator
Thank you very much. Next question is from the line of Bhargav from Ambit Asset Management. Please go-ahead.
Bhargav
Yeah, good morning, team and congratulations on a good performance. Sir, my first question is, is it fair to say that the rent cost for the full-year will be closer to about INR80 odd crores?
Shivendra Nigam
Yes, sir. Jim it is at APR.
Bhargav
And the free-cash flow post rent and capex will be how much, sir for the full-year
Shivendra Nigam
For this financial year, right?
Bhargav
Yes, yes.
Shivendra Nigam
So if I’ll take about post my operational one. So if I take my post operation, if you are reducing my free-cash flow, if you have seen, post net operating cash flows is 148, but that does not include my rentals. So ATCR of rentals has to be included to be reduced from this 148 is net of inventory buying and everything. This is by net cash-flow post operating activities, including my inventory, buying and everything. Out of this 148 you need to reduce 80 which is coming in the financing cost by rentals.
Bhargav
So program, INR60 crores.
Shivendra Nigam
Yes, sir. Yes, JJ. Jay, full-year. Yeah.
Bhargav
Sir, if I look at your employee cost on a per square feet per month basis, it comes to about INR160 rupees. So is there a scope to reduce it or you believe this is the optimum level at which we will operate?
Shivendra Nigam
So, yes, employee cost, I voice is the employee cost per square feet, 25, can you please repeat?
Bhargav
Sir, your employee cost per square feet per month is about INR160 rupees, 160.
Shivendra Nigam
Hi, sir.
Bhargav
So is it possible to reduce it towards case option.
Shivendra Nigam
Yes, honestly, we are trying to increase the moment we’ll get our 5% to 6% of continuous sales, which we achieved this year, right, also. So slightly it’s going to be reduced, but we are not compromising anything in terms of front-end cost. So largely it would be around this only, 150, INR160 would have been there largely.
Bhargav
And out-of-the total employee cost, what will be the variable incentive in that
Shivendra Nigam
That I need to in terms of out of hunt because you talked in 160 square feet. I don’t have that readily figure right now available employee cost, but I can tell you over on my store employee cost versus my incentive proportion is approximately 6% to 7%, 7% to 8%, so you can take it accordingly.
Bhargav
Okay. And lastly, sir, we’ve seen a good increase in your family stores and ladies and kids stores. So how has been the response there?
Deepak Bansal
The response is good in the family stores. It’s as per our expectations and that’s why we are opening the bigger stores now.
Bhargav
Great. Thank you very much for answering my questions and all the very best.
Shivendra Nigam
Thank you.
Operator
Thank you thank you so much. The next question is from the line of Tan Meh, an Individual Investor. Please go-ahead.
Tan Meh
Most of my question is answered, sir.
Shivendra Nigam
Thanks,.
Operator
Thank you so much. The next question is from the line of Shinjana Mittal from Ratna Capital. Please go-ahead.
Shrinjana Mittal
Just give me a second. The gross margin has increased in this quarter. So is that a mix impact? Can you throw some light on that?
Shivendra Nigam
You voice was on-mute. So can you please repeat the question, please?
Shrinjana Mittal
Yeah. So I was saying that the gross margin has increased in this quarter. So is that a mix impact? Can you throw some light on that?
Shivendra Nigam
So basically gross margin has been increased by 2% to 2.5%, right? So majority it is a slight increase in the correction in the prices.
Shrinjana Mittal
Sorry, the gross margin has increased, so that would be a mix impact or lower discounting? That was my question.
Shivendra Nigam
Discounting, we have control to the level slight very slight portion of discounts, but there is a significant portion of correction in prices. For this 2%
Shrinjana Mittal
It’s on the COGS side by 2%.
Shivendra Nigam
Yes, COG side.
Shrinjana Mittal
Okay, okay, okay. Okay. Understood. And the second question was on SSB. This quarter, the SSB was negative 1%, right? And last quarter the SSB was 18%. So what — like what is — like what is driving the SSG for us and like what are your thoughts on like you are targeting 5% to 6% of SSG. But if we look for like last five, six quarters, the SSG that has been on the lower side, except like if I look — except the last quarter, so that your thought is no part.
Shivendra Nigam
So our overall target is to be taken on an annual basis. We are going to achieve on an annual basis quarter due to headwinds of other things as well. Like this quarter, we were going very well. But immediately certain post of the summer came early, right? So we have never seen a two-month gap in summer and holy. This time it was there. So these kind of exceptions would be there. But overall, our target is to keep the 5% to 6% on an annual basis and that will be achieved. Maybe few quarters maybe up-and-down, but overall annual target we are working and that is achievable.
Shrinjana Mittal
Understood. And what is like which factor plays a role here in the seasonality aspect? Is it like primarily the winding season or is it just general retail demand? Like — or is it like mix like what is your take on that?
Deepak Bansal
There are two factors majorly, the season and the wedding season. Season, I mean the winter season was very poor in the Q4. That’s why our SSG has gone down. So season has an impact and the wedding season wedding, the number of wedding dates has an impact on the sales growth and the same-store sales growth. So these are the two major factors. The rest are the fourth majority kind of conditions that is one we just seen in the overtime now?
Shrinjana Mittal
Understood. Understood. Okay. Just one last question. In this year, like were there any stores which are closed? If anything that the
Shivendra Nigam
Store closer, right, what you ask?
Shrinjana Mittal
In this year.
Shivendra Nigam
66 opening is our net number because we are having a huge number of stores now. There are 600. So obviously, now the leases for the stores are coming for — more frequent leases are coming for the renewals, right? 5% to 10% leases are coming for the renewal, right? So out of this 16 overall closer in terms of its stores was 18. Performance disclosure. Performance closure was 8 right and 10 was the relocations.
Shrinjana Mittal
10 ways out-of-the 18, 10 ways
Shivendra Nigam
Relocated and 108 was the closures. Yeah.
Shrinjana Mittal
And these eight stores, they were — they were like not profitable stores like with — and how — what was it? Like how old were these stores? Some can you give just on an average some light on that.
Deepak Bansal
So one which we closed down 80 stores. Okay. The one we closed on is generally the outdated kind of stores where the markets get outdated or the sales have dropped a lot in the recent past. So that kind of places we used to shut-down majorly. There are only very few stores which have like rental revenue ratio gets very poor, we have to shut-down. So there are some malls which get outdated. There are some markets which get outdated with the passage of time and we don’t renew the store there and we like close the store there.
Shrinjana Mittal
Understood. Thanks for taking my questions and all the best. Thank you.
Shivendra Nigam
Thanks, sir. Thank you.
Operator
Thank you very much. The next question is from the line of Rajesh Jain from Janan Research. Please go-ahead.
Rajesh Jain
Hello. Yeah. Thank you for the opportunity, sir, and congratulations for the good FY ’25 numbers. I have couple of questions. The first one is that despite good operating cash-flow generation by the company, the company has not declared any dividend, any specific reason. And the second one is in accessories, where the more categories would have been near-term focus areas. As company, do you have any plan for entering into accessories in women segments like beauty products and other things?
Shivendra Nigam
So two questions you asked. One first question, I’m replying for dividend. So we have a very clear dividend policy and up to 20% we are distributing. So one interim dividend has been already been declared and paid post the result of Q3 and the final would be decided probably in the AGM. So that is very clear policy, year-on-year, you can see.
Your next question regarding accessories.
Deepak Bansal
You are telling about the accessories and the cosmetics parts in the payment category. So right now, we have don’t have plan to go to the cosmetics or the duty products. So we will be only going with the accessories category we are already doing.
Rajesh Jain
Okay. Okay. Thank you very much and best of luck, sir.
Shivendra Nigam
Thank you. Thank you,. Thanks.
Operator
Thank you very much. The next question is from the line of Yogesh Bhatia from Sequent Investment. Please go-ahead.
Yogesh Bhatia
Yes, sir. Congratulations on good set of numbers. So I want to know, do we categorize our sales in the different segments that we have, kidswear, men’s wear, men wear?
Deepak Bansal
Yeah. So overall contribution like this, the 81% of the sales is coming from the men’s wear category, 11% is coming from the women’s wear category, 5% from accessories and 3% from the kids wear.
Yogesh Bhatia
Okay. So going-forward, when we are looking at this vision of INR1,000 crores, how will this shape up and is there a plan to get into individual stores for women or it is going to be a mixed store? What is the strategy on that?
Deepak Bansal
So right now we have like 10% are the ladies and kids exclusive stores. So we broadly we manage it around 10% to 12% only. And ladies contribution, the total sales will increase a bit like it’s 11%, it can go into 13% in a year or two.
Yogesh Bhatia
Okay. And do the margins remain the same in the same lines or you know, the margins are different in different categories.
Deepak Bansal
Margins are almost the same in every category.
Yogesh Bhatia
Margins are almost the same. Okay. Thank you, sir. That should be all.
Shivendra Nigam
Thanks, sir. Thank you.
Operator
Thank you very much. The next question is from the line of Naitik from NV Alpha Fund. Please go-ahead.
Naitik Mutha
Hi, sir. Thank you for taking my question. Sir, my first question is if you could give us some sense on what is our mature store-sales, you know PSF PSS.
Deepak Bansal
So right now our sales is like 785 per square feet.
Naitik Mutha
No, sir, that is at a — sorry, that is at a company-level. I wanted, you know the difference in mature stores and the newer stores. What PSF are the mature stores sitting at?
Deepak Bansal
Yeah. So right now, we don’t have a specific data last two last year because one more question came almost the same that what was the average sale of the stores opened in 2023 and ’24. So we can share you that specific data later on.
Naitik Mutha
But sir, generally what is the PSF for mature stores? That’s the only data I want.
Shivendra Nigam
So that’s the only way. Yes, INR800 is there, but like we have a 1.2 cR of average. But when I’m categorizing my stores for more than three years or more than six years. So there is a 10% to 15% is a difference, right? So few very old stores, our average is delivering 150 lakhs and few are delivering once CR is a new. On that business, 10% to 15% is a difference in terms of per square feet sale also for the matured store as well as older stores.
Naitik Mutha
Got it, sir. And sir, my second question is, you know, are we seeing the rental escalations or rental cost increasing for our newer stores and along with that, is our capex per store going to increase as we are opening the largest size stores now?
Shivendra Nigam
Yeah. So capex in terms of absolute cash-flow, yes, definitely going to increase because my per square feet capex of INR1,700 remains same for last two, three years. Last year it was approximately same this year also. But since we are opening the bigger stores, since we are opening the bigger stores, so definitely overall capex outflow for next financial year in terms of hikes as well as renewals are also there. So we have allocated 25 to 30 CRS. My capex will go in opening of the stores and renovation of new stores.
Deepak Bansal
But regarding the rentals, per square feet rentals are going down. So last year it was INR129 square feet. Last year it was INR122 and this year it has came down to INR120 square feet. So per square feet rental is going down due to the bigger store, because per rental cost per square feet is lesser the bigger stores.
Naitik Mutha
Right, right. Got it, sir. Sir, my next question is, you know, if I look at our SSG growth over the last three, four years, every year, it’s been very volatile. So I just wanted to ask what are the initiatives that we are taking to get consistent SSG growth.
Deepak Bansal
So we have majorly going for the staff motivation programs and staff motivation programs have really worked very well. And ISSG is volatile when there was a phase of COVID. If you remove the COVID phase, our SSG was like average SSG of last four years was 5% only if you remove the COVID phase. So SSG in the quarters you can say was a volatile, but when you take the complete year, SSG was stable.
Shivendra Nigam
So last year was the exception. We are the first time we have faced that because the market was really challenging. So we have did the better and only minus 4% last year. So overall — so if you see the historical data also, it is 5%, 6% constant there.
Naitik Mutha
All right, sir. Sir, my next question is we are targeting INR1,000 crores of sales. I just wanted to ask if we are prepared for it on the back-end in terms of manufacturing capabilities and the corporate for the corporate-level and warehouse that we would need. So are we prepared for that or we would have to spend some — some of the capex on these things also?
Shivendra Nigam
Yeah. So I’ll explain you my total capex plan, what is there for next financial year going-forward also. So we are absolutely ready for all these things because we are just looking at the INR1,000 crores is just done, right? So we don’t need much changes in our system or any of the backending. As far as capex is concerned, as you asked, so our warehousing corporate facility is going to be complete by end of — by this calendar year — end of this calendar as well. So there is an outflow of 13 crore to 14 remaining, which is going to be there. We are enhancing facility as well. One floor is being constructed there. That is required approximately eight to 10. And as I said, the 30 cr is required. The total capex requirement is INR50 crore to INR52 cR for this financial year, right, which completes all my requirement of INR1,000 crore, not we had more than double it from the INR1,000 crore.
Naitik Mutha
Got it, sir. Got it. That’s it from my side. Thank you.
Shivendra Nigam
Thank you, sir.
Operator
Thank you very much. The next question is from the line of Yash Bajaj from Lucky Investments. Please go-ahead.
Yash Bajaj
Yeah, hi. Good afternoon, sir, and congratulations on a good set of numbers. Sir, my first question — my first question was on the franchisee-led expansion. Last year, we had kind of has kept ourselves back from expanding from the franchisee route. Any thoughts regarding that in the current financial year considering the retail environment has become more favorable now?
Deepak Bansal
And the franchisee, only total company proportion is right now 20% of the franchisee stores and 80% are the COCO stores. But regarding the new stores, the ratio is further less. So in the last year, we opened 66 stores. 61 were the Coco stores and the five were the franchisee stores. So approximately around 10% worthy franchisee stores. So same kind of thing is going to be there in future.
Yash Bajaj
Okay, got it. And my second question is regarding the gross margin. You alluded that there was — because of better pricing, there was a gross margin improvement this quarter. But sir, I think, I mean the ASP has been flat or slightly lower on a year-on-year basis, both for the quarter and the financial year. So is there any other reason for the gross margin improvement? Because like you said that
Deepak Bansal
ASP has increased in the quarter also and in the year — yearly data also. So there is 1% increase in-quarter and 1% increase in the year for the ASP.
Yash Bajaj
But that would not let lead to a 200 basis-point improvement in gross margin, right? Is there a gross — raw-material — is there a raw-material deflation, anything around that?
Shivendra Nigam
So overall, if I say my gross margin improved probably by 2%, right? So there is a very slight percentages there in terms of controlling the discount, but mostly the correction and there is a very small amount of portion in the price in terms of controlling of the buying price as but largely it is driven by slight correction. By multiplying into the number of pieces what we sold, it is coming to those approximately those numbers only. 65 lakh pieces we sold at ASPU calculate, largely it is coming to near to that number.
Yash Bajaj
Okay. Thanks, sir. Okay, got it. And so how much did we spend this year-on advertising — advertisement and branding.
Shivendra Nigam
So 1.32%, sir is a total expenditure this year as compared to last year approximately 1.6%. So we are controlling it now
Yash Bajaj
Okay. Okay. Great. And last question, how much was our online sales this year?
Shivendra Nigam
So we closed this year 6.2% for as far as of total sales from online,
Yash Bajaj
6.2%. And how has that grown, sir?
Shivendra Nigam
44 crore INR45 crores is largely the number for online sales out of INR720.
Yash Bajaj
And what was the number for financial year ’24?
Shivendra Nigam
33.
Yash Bajaj
Okay.
Shivendra Nigam
INR44 crore crores this year as compared to online sale last year.
Yash Bajaj
Okay. Got it. That’s all from my side. Thank you and all the best.
Shivendra Nigam
Thank you. Thank you.
Operator
Thank you very much. Participants who wish to ask a question may press star in one at this time. The next question is from the line of Arpan from Inside Advisory. Please go-ahead.
Arpan Rathore
Good afternoon, sir. First of all, congratulations on a very good set of numbers and also outlining a vision statement so that everybody can track. Essentially, my first question is coming on vision itself. You have outlined that you will be reaching a INR1,000 crore top-line by FY ’27, which essentially translates into a revenue growth of 13% to 14%, which is lower than what you’re currently doing. Any specific reason why we are estimating a lower number?
Shivendra Nigam
So it is coming approximately 18% what we are tracking, 720 we closed this year. If you add-up 17% to 18% in next two financial year, so we are achieving INR1,000 crores. So this is not 13%, this is 17%, 18% approximately.
Arpan Rathore
Yeah, but still, which is a little lower than your current growth rate. So is it a conservative number for us or?
Shivendra Nigam
So this year also, sir, we closed at 17%. Last year also was main number except if you remove the COVID number. So these are the long-term sustainable number, what we have — maybe it will be a couple of percentage more, but as of the achievable numbers.
Arpan Rathore
Okay, okay. Also, in terms of volume, you have guided for a — so you have guided for an SSG higher single-digit SSP. In terms of volume, is there any number which we have thought through that we will be growing by such volumes?
Shivendra Nigam
So 50-50% always we said like this year 4% 2% of volume being driven. So going-forward, when I’m talking about 5% to 3%, 2% to 3% would be the volume and some correction would take it to 6%.
Arpan Rathore
Okay. My next question is on the gross margin. We’ve seen COGS reducing on just quarterly basis and on a yearly basis. I don’t want to go into the details of it, but what would be the sustainable gross margin going-forward.
Shivendra Nigam
Yeah. So when we are going-forward achieving INR1,000 crore numbers, some more portion of e-commerce will go which will dilute little bit of margin, but it will never go less — so always 55% to 56% is that target, it is going to be 55%, 56%, 57% approximately.
Arpan Rathore
My next question is on women category. You know, in terms of sales, you mentioned that it contributes around 18%. My question is more on a strategic perspective. We don’t see any credible brand. Don’t we see a scope to enter that territory and capitalize further on the brand image, which we already carry. Any thoughts on, you know, improving the women contribution in our overall.
Deepak Bansal
So right now, the contribution is 11%. And as I mentioned, we want to improve it to 13% and we are opening new ladies and exclusive stores also. So last year, 10% of the stores which were new opened were the exclusive ladies and kid stores. And in the men’s — in the family stores and the men’s and women’s stores also, there is a portion of women’s category. So definitely women’s a portion is going to increase in the coming years.
Arpan Rathore
Okay, great. So my last question is more on-balance sheet. The working capital has been — has been slight increase, though one or two days to 114 days. I wanted to understand what would be the targeted level or should we assume that 110 to 115 is the targeted range from a company perspective?
Shivendra Nigam
Absolutely, sir, you answered the question itself. So long-term target is we are 114. Last year also it was there in terms of working capital. So considering my business model, it would be approximately 110 days.
Arpan Rathore
Okay. And another question on margin — sorry, coming back to the margin question. So we have guided for a higher single-digit SSD growth. Do we see EBITDA margin improving on account of that or that 28% to 30% is the guided range or do we see a scope of improvement further from there?
Shivendra Nigam
Still we improved from last year to this year, if you say, we improved 2% approximately. So going-forward, 28% to 30% is a very reasonable number, which in the current tough market we are able to maintain. So going-forward, 28% to 30% is a target for EBITDA margin as well.
Arpan Rathore
Sure. Yeah, that’s it from my side. Congratulations once again.
Shivendra Nigam
Thank you, sir.
Operator
Thank you very much. As there are no further questions from the participants, I now hand the conference over to Mr Deepak Bansal for closing comments
Deepak Bansal
Would like to once again thank all of you for joining us on-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.
Shivendra Nigam
Thank you, everyone. Thanks.
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