Electronics Mart India Limited (NSE: EMIL) Q3 2025 Earnings Call dated Feb. 10, 2025
Corporate Participants:
Karan Bajaj — Chief Executive Officer
Premchand Devarakonda — Chief Financial Officer
Analysts:
Manoj Gori — Analyst
Yash Darak — Analyst
Tanay Shah — Analyst
Unidentified Participant
Dhruv Modi — Analyst
Prateek Poddar — Analyst
Ankit Kedia — Analyst
Mehul Desai — Analyst
Shrinarayan Mishra — Analyst
Rajiv Bharati — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Electronics Smart India Limited Q3 FY ’25 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on-date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference, please signal for an operator by pressing star followed by zero on your touchstone telephones. Please note that this conference call is being recorded.
I now hand the conference over to Mr Karan Bajaj, CEO of Electronic India Limited. Thank you, and over to you, sir.
Karan Bajaj — Chief Executive Officer
Thank you very much. Good evening and a very warm welcome to everyone present on the call. Along with me, I have Mr Devrakonda, our Chief Financial Officer. We have uploaded our results and investor presentation for the quarter and nine months ended FY ’25 on the stock exchange and company’s website. Hope everyone has had a chance to go through the same. In nine months FY ’25, revenue recorded was at INR5 to INR46 crores, reflecting a year-on-year growth of around 10%. EBITDA stood at INR337 crores with EBITDA margins at 6.4% and pre-INDS margins at 4.7%, respectively.
The challenging macroeconomic environment driven by persistent inflammation pressure, subdued discretionary demand and slowed down in real-estate market in urban pockets. Large appliance continue to dominate as the largest revenue contributor according to — accounting for 45% of the revenue in the nine months FY ’25. Mobile and small appliances contributed 42% and 13% respectively. The store network expanded significantly during this period with 14 new stores opened in-quarter three. In Telangana, two stores were added, 10 stores were opened in Andhra Pradesh and two in the national capital region. Gross store opening in Q4 are expected to be between 10 to 12 stores, taking the total count beyond the 200 store milestone at the pan-India level.
By December 24, the total store count rose from 177 stores as of September ’24 to 191 stores comprising 178 multi-brand stores and 13 exclusive brand outlets, spanning 78 cities across four states. In the NCR region, the total number of stores reached 26. The company has outperformed its full-year guidance in terms of store addition by adding 31 stores during the nine months ended period. As of December ’24, inventory days stood at 46 days. The company continues to prioritize inventory optimization, enhancing cash-flow conversion, further fortifying the balance sheet position. India’s economic outlook remains optimistic with the projected growth of 10.3% to 10.5% in the upcoming fiscal year, up from 9.7%.
The anticipated growth is supported by increased governance capital spending and a rebound in-demand driven by. Further, the union budget of 2025 has introduced significant personal income tax relief by lifting the taxable income limit. With an estimated INR1 lakh crore being distributed to the middle-class, this move is expected to enhance disposable income, direct boosting consumer spending, particularly in the consumer durable sector. With greater purchasing power, households are likely to increase their spending to purchase or upgrade their homes appliances and electronics, driving overall demand growth, benefiting both manufacturers and retailers in the consumer durable industry.
EMI’s competitive strategy focuses on developing a comprehensive product portfolio and forging strong partnership to capitalize on the regional leader demand. By offering a wide array of high-quality products, EMIL is positioned to meet the diverse need of consumers, ensuring customer satisfaction and loyalty. The company’s collaboration with renowned brands enhances its credibility and appeal allowing to capture large market-share as demand continues to rebound. To conclude, we have actively expanded our store portfolio over the last two to three years.
However, as the store matures and achieve higher throughput, we expect to see a stronger recovery in the unit economics. As revenue growth stabilizes, it will lead to improved margins on the account of operating leverage. We remain cautiously optimistic on-demand recovery, mainly through a strong summer season coming forward.
With this, I request Mr Devarkonda, our CFO to update you on the financial performance. Thank you all.
Premchand Devarakonda — Chief Financial Officer
Thank you, sir. Good evening and warm welcome to all the participants. Let me begin with the Q3 FY ’25 financial overview. Our revenues for the quarter stood at INR1885 crores as against INR1775 crores in Q3 FY ’24, a growth of 6% year-on-year. EBITDA for Q3 FY ’23 — sorry, FY ’25 stood at INR99 crores as against INR115 crores, a degrowth of 14% year-on-year. EBITDA margin for Q3 FY ’25 stood at 5.2%. Pre-IndAS EBITDA for Q3 FY ’25 stood at INR67 crores, which works out to 3.6%. PAT for Q3 FY ’25 stood at INR32 crores as against INR46 crores. SSG for Q3 FY ’25 was 2.8% negative, mainly due to slowdown in regimes, excluding Hyderabad region, all other regions have decent stability. Now moving on to nine months of FY ’25 financials.
Our revenues for nine months FY ’25 stood at INR5246 crores as against INR4761 crores in nine months FY ’24, a growth of 10% year-on-year. EBITDA for nine months FY ’25 stood at INR337 crores as against INR342 crores, a growth — a degrowth of 2% year-on-year. EBITDA margin for nine months FY ’25 stood at 6.4%. Pre-Indest EBITDA for nine months FY ’25 stood at INR245 crores with a margin of 4.5%. PAT for nine months FY ’25 stood at INR129 crores as against INR143 crores. For nine months FY ’25, stood at 3.8%. ROCE and ROE on an annualized basis for nine months FY ’25 stood at 60.4% and 11.2% respectively. The working capital day as on 31st December 2024 stood at 52 days.
The gross debt and net-debt to equity stood at 0.4 times and our net-debt to EBITDA stood at INR0.38. Cash-flow from operations stood at INR453 crores. With this, now I open the floor for question-and-answers. Thank you all and all.
Questions and Answers:
Operator
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone who wishes to ask a question may enter star and one on their touchstone telephones. If you wish to remove yourself from the question queue, you may enter star and two. Participants are requested to use only handsets while asking a question. Ladies and gentlemen we will wait for a moment while the question queue assembles to ask a question please enter star and run the first question is from the line of Manoj Gori from Capital. Please go-ahead. MR. Manoj, your line is unmuted. You may go-ahead and ask your question.
Manoj Gori
Yeah. Yeah. Am I audible? Yes yes. Yeah. Thanks for the opportunity. Sir, my first question is on the sales side. So when I look at the overall brands performance, whether we talk about large appliances who are largely into refrigerators and washing machine with the categories which have been relatively been under pressure. Plus when I look at some of the ECD categories of the — of the companies which have reported their numbers. So both in 2Q and 3Q when I look at the sales performance, it seems to be a bit on the higher side as compared to us. So even if we look at Whirlpool or IFP, they have reported double-digit kind of growth during Q3, despite lot of sales would have done — have been done during September month as the channel would have obviously stocked up for the festive season. So just want to understand where-is the disconnect because when I look at our performance, that definitely seems to be a bit muted when I look at the brands performance.
Karan Bajaj
Hi, Manoji. So Manoji, absolutely right. So if you look at the clustered division that we operate today in, whereas our matured stores are all — majority of them are in the Hyderabad cluster, which is, you know, at a flat or negative growth by 1% or 2% for us, especially where you know, the larger appliances has been a stronghold for us for a very long-time, except ACs because AC, you’ve seen a very good growth coming from almost 40-odd percent and that is both value and a volume growth, whereas if you look at the breakup, when we look at a breakup of refrigators and washing machine, unfortunately, we could not see a higher or double-digit volume growth in these clusters, whereas our newer clusters like Telangana market, Andhra Pradesh and Delhi, NCR have outperformed and done really good. But unfortunately, what happens is that these clusters are really small on the total overall contribution that they have on the total balance sheet. So is our major — so this was a problem with us with the last quarter as well.
Hyderabad does a good performance untilless it is — until the time it is a bigger cluster for us, there’s always going to be a much lesser growth we will see for us, especially in the refrigerator washing machine category, whereas the volume growth is around 2% or 3% only. Whereas if you see mobile phones or if you see air-conditioners, kitchen appliances where the growth is much higher, then you will see an in-line performance across geographies and that would help us grow better. But saying that, we keep an eye on an everyday market-share across categories and competition very closely to make sure that nothing is going wrong with us in Hyderabad because that’s the biggest cluster for us. And that is on the positive for us where we’ve not lost even 0.5% of market-share in across categories.
So that is a good positive sign for us. And there are a lot of other reasons for the market to be a little slower in this region where we operate in Hyderabad, but we are quite optimistic that for the summer coming up, it is gearing up quite well for us. And right now the weather is also on our side where it is supporting us that it’s become a little hotter during the day-in Hyderabad. So we are quite optimistic going-forward for this cluster also to outperform and deliver us better.
And to add-up to your question, one more thing, Manoji, I would like to give out is that out-of-the 170 plus stores that we operate, around 75 80 stores today are the stores which have not reached the maturity level. So in the drastic period of last 20 or 18 months, you might have seen a lot of store expansions that happened. So till the time these stores mature enough, that is where we’ll see the actual true colors of the store performing and giving us a higher-growth. And these are all-in the newer clusters in Delhi, NCR, AP and Telangana, whereas in Hyderabad, we’ve hardly opened two new stores. So there is not our new count that are added up in the existing market in this region. So that is why you would see the market getting a little slower, not supporting us the way we wanted the growth to be, but we are quite optimistic and quite happy with how it is shaping up now.
Manoj Gori
Correct, sir. Sir, two sub-part on this side. One, if we look at the Hyderabad business, obviously, we have a very strong presence over there. Like are we confident that we are not losing any market-share into this market and probably these are the markets which are facing some issues at this moment.
Karan Bajaj
Absolutely. As I told you, so that is what we as a homework we do every day across team and across categories. And if you deep-dive into the volume growth that is there in the market today versus what we are delivering and at the same time, the new categories that they’re doing very well for like built-in audio, kitchen appliances, the other categories has actually shaped up really well in the last quarter onwards where we started focusing on the other products to be started selling better for us and we would see a good growth. AC is an exception. AC will see a 40% growth is because the penetration was lower, all the brands are very aggressive. And unfortunately, for the last few years, you might have even seen discretionary growth in pricing as well or the ASP is also going up, especially in the larger brands, which unfortunately this year is not that great. We’re not seeing the support of price increase coming up where the inflation going up, where we would get a higher-growth rate in terms of value that has not been supporting us, whereas the volume growth has been in the single-digit for the larger appliances, especially televisions at 5%, 6%, washing machine both at 2%, 3%. So you would not see a major jump-in value contribution from those categories as well.
Manoj Gori
Correct. So our market-share remains intact in Hyderabad. Sir, secondly, in Delhi. In Delhi, if you look at even in the 3rd-quarter, our sales growth was roughly around 9%. So that’s on the SSG side. Again, if I look at, yes, in AP Telangana, we did saw some challenges. So did we see similar kind of challenges even in Delhi NCR because even there if you look at the SSG seems to be a bit sluggish than what we would have been expecting.
Karan Bajaj
So see that number that has been given is majorly given for the stores which have been matured over 12 months. So if I actually see what is in-line, so that is — that number would be upward to 20% for us. For — or if I give you an exact number, that would be around 22.5% for the SAG for the stores which have been operating for 12 months. Stores which are over above that is around 8% to 9%. So you would see that decrease, I mean, you see the change there, but overall performance of Delhi NCR is up by almost 50% if you compare the quarter-to-quarter number. And for the first-nine months, it’s up by 60 plus percent. So we’re quite happy with the performance there and that is what we’re expecting.
Definitely, as it is a newer market, the more we fetch out-of-the market, the better it is for us and more sooner it becomes matured and stabilizes for us in the coming times because a lot of stores that have opened up are not even 12 months old. So we’re quite optimistic about that cluster as well and is going as we decided that we’ll touch a certain throughput for the first set of eight stores that we opened up in ’22 August. So those are in-line. So majorly the that you would see is for those set of eight stores that we had opened initially and then after that other stores, whereas the stores that we opened in the last 24 months are up by 22%.
Manoj Gori
That’s correct, sir. Sir, lastly, if I may ask one more question. So obviously, today when we look at roughly 60% 65% of the revenue comes from Hyderabad market and we do understand these are matured markets, the stores are very matured and accordingly, there will be negative drag on the overall SSG performance.
Karan Bajaj
Correct.
Manoj Gori
Can I see this contribution changing, probably new stores getting — adding up in the SSG calculation next year and how do you see this 60% 65% moving to roughly around 50% 55% and by when should we expect that? So there are two questions. One, what would be the new percentage — new-store additions in the FSG for next year? And second, it would be probably by when should we expect Hyderabad’s contribution to come down to 50% 55%.,
Karan Bajaj
For the next year, so like for this last quarter itself, see, right now for the first-nine months of this year, we open around 31 32 stores and another 10 to 12 stores are in the pipeline that will open up. We’ve already opened up few stores in Jan and Feb and few more stores opening up in March as well, especially in the Delhi cluster. So this year, we would end-up FY ’25 closing would end-up an addition of around approximately 40 stores, whereas for the next year, FY ’26 also, we have 35 stores that are already getting ready for us. So in the next two to 3/4 coming two to 3/4, we’ll end-up opening another 25 odd stores in FY ’25, whereas FY ’25 we should be closing the addition by around another 35 to 40 stores.
So that we’ve already shortlisted in the existing clusters. I’m not even adding a new cluster to this. So to take the count up to almost 225 to 230 stores in the next financial year, that is the idea for the company for the addition of stores, which will majorly be in the existing clusters in NCR, Delhi and AP Telangana. So that is the plan. And as I told you earlier, so almost out-of-the 200 odd stores that will end-up by Q4, there will be 80 odd stores, which will still be not matured or still undermatured in the times that we would take it to get matured. So of almost say 24 to 36 months, it takes around a store to get matured. So that is the number of store counts. Around 80 odd stores will be till yet to touch its maturity levels in the coming times.
Manoj Gori
Sure, sir. Very helpful. I have some more questions. We’ll get back-in the queue. Wish you all the besti.
Karan Bajaj
Thank you.
Operator
Thank you. Participants, if you have any questions at this time, you may enter star and one on your touchstone telephones. The next question is from the line of Yash Tarak from RSPN Ventures. Please go-ahead.
Yash Darak
Hey, am I audible?
Karan Bajaj
Yes, sir.
Yash Darak
So yeah, thank you for the opportunity. So first is — first question is with regards to accounting of discounts. If you can explain what leads to reduction in gross margin in the month of December even historically and how our discounts accounted in the books
Karan Bajaj
Sir can you repeat your question because you were not that clear
Yash Darak
Am I audible?
Karan Bajaj
Yes, sir.
Yash Darak
Yeah. So my question was with regards to accounting of discounts. Historically also the gross margin reduces in the month of December. If you can explain how you account discounts and what leads to reduction in gross margin in the month of December.
Premchand Devarakonda
Sure. Sir, whatever the sales promotion activities or cashback offers may roll-out during the festive season, so that will registered against the revenues. As a result — as a result, the gross — I mean net sales realization will come down. So that will obviously reduces the gross margin.
Yash Darak
Okay. But then what is the sales promotion number in the other expenses, if you see, there is a line-item on a sales promotion. And what that include?
Premchand Devarakonda
This promotion is the — normally we also participate in the dealer buy-down charges. I mean that is interest to be born by the dealer is charged accounted under the head since.
Yash Darak
I’m sure you did not get it sir.
Premchand Devarakonda
There are two things, sir. The dealer is nothing but the interest to be born by the dealer. So that is shown under the high sales promotion, whereas cashback will be knocked off against the sales revenue.
Yash Darak
Interest yeah,
Premchand Devarakonda
These are two different things.
Yash Darak
And if you could give me the gross debt, I think the debt was supposed to be reduced by the financial year end, but then amount of interest has increased quite a bit. So what has led to that increase? And if you give me the amount of gross debt?
Karan Bajaj
So sir, to answer your question, the interest would even contribute from the one the adjustment that we do, the interest in depreciation would be a little higher because we keep on adding up stores. So the rental adjustment on the lease liabilities added up in interest and depreciation after EBITDA rather than the expense out on rental income because that is the method that we follow. But in terms of the actual debt, if you want, I can give you a breakdown on that as well. Give me a second. So I’m going to open the same. Down. No, no, down.
Yeah. So sir, if you actually see the term loans that are there versus the borrowing that is — so there is a decrease in the term-loan working capital requirement and there is an uncertain working capital loan. So the three different heads that we operate in, whereas the working capital has gone up significantly is mainly because we started purchasing for the Diwali season and then eventually that will come down if you compare it to the March numbers versus 31st March numbers and 31st December numbers. So there will be a significant decrease there. If you look at last quarter versus this quarter also, there is a significant decrease there, whereas the term-loan for buying properties has gone up a little bit because we end-up buying a lot of properties and a lot of registrations due for us, which we completed in-quarter three. That was all the advantages that we had given out in the previous quarters as well. So the term-loan would have gone up a little bit, but whereas if you see the working capital loan and the unsecured working capital loan, both have reduced drastically.
Yash Darak
And can you please give me the amount?
Karan Bajaj
Yes, sir. So from the secured working capital loan, which was at INR429 crores previously has come down to INR322 crores and the unsecured working capital loan has reduced to INR19.82 crores. Sorry, INR1.9 crores.
Yash Darak
So, yes, the total debt is around INR33 to INR30 — sorry, around INR325 crores.
Karan Bajaj
Like after the term-loan we our term automatically working capital capex term-loan has increased, term-loan is now up to has gone up to all the properties are put together is around INR200 crores. So total — total borrowing, if you see on the 31st December, it would be around INR530 crores.
Yash Darak
Okay. Okay. Thank you, sir. With regards to guidance, do we still maintain the annual guidance which was earlier given? I think it was around 15% or do we still maintain it or are we supposed to reiterate or revise the guidance?
Karan Bajaj
That should be in-line with the number so the growth is around 10.5%, 10.6% to be precise for the first-nine months and then we’re looking at a decent growth coming in the quarter-four. So in-line with what we were expecting. So that should be there. But the bottom-line revision was already discussed in the previous quarters as well because the expense — gross margins got diluted by 0.75% and the expenses up by almost 5.6%, 0.7%. So we’re expecting the bottom-line to take a little impact in the previous quarters than the previous year and it will be in-line with what we were expecting it to be. So we don’t see a drastic change there, but — so we’re quite optimistic in terms of what is in future for us, especially looking at the performance in Jan and Feb and then the other clusters that we’re operating, especially Delhi, Telangan up-market and the new stores also that we opened up are performing quite well for us. So we are in-line. There are times where a company would face a situation like this, but we are quite comfortable and we are quite optimistic on what is up in-store for us.
Yash Darak
Okay, sir. Thank you. Got it. Only with regards to the first question, the interest auvention, which is something I’m not really clear about. Can I get back to you often.
Karan Bajaj
So if you compare the quarter three FY ’24 number because we stood at around INR48.3 crore has increased to INR51.5 crores in the FY ’25. So this is doing the dealer bydown because most of our sales happen through NBFC like Bharash IDFC,, LDFC. So what happens is that when a customer walks in, especially during Diwali period, if the price becomes very competitive and usually no dealer charges the dealer buydown. So there are two major aspects when financing a case is one is the manufacturer buydown and other one is a dealer buydown. So manufacturer like Samsung LG Apple would bear their side of interest, whereas a dealer also is charge the bet. So the customer gets an absolute 0% interest-free EMI. So usually a lot of dealers would embed that pricing in the cost itself, whereas we don’t do that. So any mode of payment on our store would have the actual discounted price available for the customer, whereas if he opts for a financing option to NBFC, then there is a dealer buy down charge, which we take it under our hit as a cost to us. So that is where that is something directly proportion to the sell-out that we do through NBFCs, just like the credit card charges.
Yash Darak
Okay. Okay. Got it, sir. Thank you. Thank you so much. Thank you.
Karan Bajaj
Thank you, sir.
Operator
Thank you. Participants with questions may enter a star and one on the handsets. The next question is from the line of Taner Shah from DAM Capital. Please go-ahead.
Tanay Shah
Yeah. Hi, thank you for the opportunity. Just wanted to understand, has there been any improvement in-demand across the product categories, which we operate in? And given that winters have not been so harsh, have we kind of started seeing some sort of stocking for the summer-led products like the RACs and all the other smaller appliances as well. So just wanted to understand on that aspect. And the second question would be in terms of water heaters what we do, right? So how has the demand been in the previous quarter and if you could just kind of give some flavor on that as well?
Karan Bajaj
Sure. So definitely, as I told you, like the summer has settled little earlier in the region. So we would see a little higher-growth coming in air-conditioner and air cooler for us. Usually we do start-off by say, and it has already started up right now. So we have been pre-poned in 5, 15, 20 days. So that is an advantage that we’re looking at as we talk right now. So the demand looks good, especially mobile phones that were little sluggish for the last few quarters, especially after the S25 launch, we saw a good sell-out during the first week of February. But obviously, whenever new model launches is there for a week 10 days. So not attribute that to the whole quarter, but we saw good demand coming in there as well. So the premium phone is still doing good for us.
So there is not a slowdown there. The appliances, the kitchen appliances overall have started doing very well. And then water heaters and the room heaters both did perform really well, especially in the North region during the last quarter, whereas water heaters in Hyderabad are at a single-digit growth, whereas newer clusters again across the country because of summer year, you would see a little slowdown in the going quarters for this water heater and room meter kind of category. But saying that now it has become more like a 365-day product, if there’s a new apartment or a villa coming up, usually people put in these product categories, whereas real-estate has been a little slower year in this region for the last few months. So we would definitely see that kind of an impact.
But once everything stabilizes when the realization starts picking-up and the new-home buyers are moving in, not only room meters, but a lot of other — or no water heaters, but a lot of other categories also see definite improvement going-forward in this region that we so
Tanay Shah
If I got that right, you’re trying to say that we’ve preponed our stocking for RACs and air coolers much before like around two to three weeks and demand is supposedly is going to be good. And at the same time, we’re saying that water heaters did well in the Northern market. Is that right?
Karan Bajaj
Yes. Absolutely. And, what happens is that we already irrespective of the season preponing or postponing, we usually start stocking up as early as January. So we were all ready for RAC business and air cooler business anyway. But now we started stocking up a little more depending on the sellout that we’ve been doing on a daily basis right now?
Tanay Shah
Understood. And another thing I wanted to know was just sort of a different kind of a question at what percentage of our overall sales would be consumer finance, like what would it be under 5%
Karan Bajaj
65%
Tanay Shah
Okay. Got that. Okay. Thank you. Thank you so much. Thanks.
Karan Bajaj
Thank you.
Operator
Thank you. To ask a question, you may enter star and one. The next question is from the line of Shah from Paris Investments. Please go-ahead.
Unidentified Participant
Hi, thanks for the opportunity. As you mentioned to previous participant, we are in-line to achieve our revenue guidance of 15%. So in terms of bottom-line, can we achieve our previous year’s PAT?
Karan Bajaj
Sir, it will be too early for me to comment on that. But yes, definitely, obviously, if you compare to the previous quarters that we’ve delivered, there has been a decline. So I can’t deny that fact that there was a decline in the PAT levels, but we’re trying to improve them. But obviously, you know, we, we won’t be able to surpass with a very big growth number in terms of the PAT margins this year. So that will be also in-line with more or less what you’ve delivered last year. But we’re confident that, that would happen. But I can’t promise you that it will surpass those levels and grow much — all of that because we’ve already passed 3/4 in this year.
Unidentified Participant
Okay. And in terms of guidance for FY ’26, what can we expect in terms of revenue and EBITDA we can reach our earlier guidance?
Karan Bajaj
Sir, next year things see right now it will be too early to comment on next year again, but with the new-store additions that have happened and the stores are about to get matured, there’s a lot of stores are yet to get matured and the new-store that will be opening up next year, I think a 15% Y-on-Y growth should be quite comfortable for us to achieve next year as well.
Unidentified Participant
And in terms of EBITDA margins,
Karan Bajaj
It should be in-line,
Unidentified Participant
Sir. In-line of this current quarter or the previous quarters?
Karan Bajaj
The same number that you would do on a regular basis, the percentage-wise, it should be 9% to 8%, 15% more or less, yeah.
Unidentified Participant
No, I’m talking about EBITDA margins around 7% to 8%.
Karan Bajaj
Yeah. EBITDA margins are at pre-NDS levels are at 7%, sir. Sorry, level are 7%, which we look at 1.2%, 1.3% lower post adjustment of rentals there. So I think that should be the number that we are looking at, around 7%, 6.8% to 7% comfortably.
Unidentified Participant
Okay. Okay. And sir, my final question, sir, in terms of debt, where can we see by end of this year? Net-debt?
Karan Bajaj
Sir, debt levels again by the end of this year would again be in-line only what you’ve seen on 31st March is because purchase. So a lot of advances go out, a lot of inventory is carried. So the debt levels will be majorly for working capital only for the inventory. And once the cycle will go down to summer end, so you would see the decrease in-quarter one numbers. Because we exit the season by June, so the inventories in tooling products reduces drastically, sir.
Unidentified Participant
Okay, okay. So by March-end, we can see around INR500 crores of net-debt?
Karan Bajaj
Lesser than that, sir. And then there’ll be two cycles no, sir, because after summer, it will get Diwali over here. So you don’t the advances they come on the stocks with. So that is — that is where you will see an increase in working capital for just two quarters. And then reduce the way it is reduced on 31st December, it is largely reduced from what it was in previous quarter.
Unidentified Participant
Okay. Okay. That’s it from my side. Thank you and all the best for the future quarters. Thank you, sir.
Karan Bajaj
Thank you.
Operator
Thank you. Participants with questions may enter star followed by one on the handsets. The next question is from the line of Dhruv Modi from DSM Securities. Please go-ahead.
Dhruv Modi
Hello, am I audible?
Operator
Yes, sir. Yes,
Dhruv Modi
Yeah. So I have few questions. Like first question is, which brands and specific categories witnessed like sluggishness during quarter three of FY ’25
Karan Bajaj
Sir, sir, category is majorly that you would see. So there was not a decline in volume, so I would not attribute to it as a decline in volume growth, whereas the volume growth was, say, a single-digit growth across televisions, washing machines, the larger appliance category. But sir, unfortunately, what has happened, the price and decrease in those categories. In fact, for the premium products in television, the price reduced a little bit. So you will not see a major — I would not say a major de-grow there because of volume, but in terms of value, but categories that outperformed really well were air-conditioners, telephone — mobile phone, other division, small appliances did very well. So these categories can’t contributed to the growth coming in. But other path televisions, yeah, air conditions — washing machine and other contributely in-line with what the other categories did, then overall larger prices would have seen a much better number.
Dhruv Modi
Okay. Okay, got it. And the other question is like why has our employee cost increased by 29% on year-on-year basis?
Karan Bajaj
Okay. So the employee cost majorly for the new clusters that are there, because the teams across AP, Telangana, Andra and Delhi have also been increased. So you would see a little higher expense going up there compared to the previous quarters because the team expanded. Now we’ve got a lot more people in these clusters, especially Andhra also divided to a newer cluster because the number of stores there are increasing. There are 15 stores that are in pipeline for the coming year.
So definitely, we need to increase the team there as well. So the costs are all under control in terms of what expenses overall we are looking at NB, manpower cost, marketing costs or any other cost. Costs which are variable in terms of nature like sales promotion or finance costs are — that is directly like the credit card charges or NBFC charges, which are directly proportion to the revenue that we generate on those businesses. But apart from that, all other expenses are already under control in terms of what we had expected it to be. So nothing is in red where we feel that it has in gone over our expectation, but building a team takes a little time and especially for the newer clusters and all. So that is the major reason for the cost of employees going up.
Dhruv Modi
Okay. Okay. And the last question I have is like what is our store opening guidance for FY ’26?
Karan Bajaj
Sir, FY ’26, sir, another, I’ll give you the Q4 number also Q4 number will add-up another 10 stores this year-by the end and then another 35 stores are in the pipeline for the next year, sir, out of which you know we might start opening up stores by the first-quarter itself. So 35 stores have already been signed-up for the next financial year.
Dhruv Modi
Okay. Okay. Thank you. Thank you very much and all the best. Thank you.
Operator
Thank you. The next question is from the line of Prateek Podar from Bandan AMC. Please go-ahead.
Prateek Poddar
Sorry, Karan, just one small question. The 35 stores which will open next year, what’s the split between Delhi, Telangan, up-country and AP?
Karan Bajaj
So sir, around six stores in the Delhi NCR region and the rest of them are in the South region sir and how much is the
Prateek Poddar
Split of the 29 between, let’s say, AP and
Karan Bajaj
Hyderabad would be three stores 15 stores in 15 stores in the Handrab country market and the rest of them are in Telangana country market, sir. Hyderabad, you said was three right?
Prateek Poddar
Yeah. So around 11 stores in Telangana, up-country.
Karan Bajaj
Yes, sir.
Prateek Poddar
Okay. Okay. And what is the split this year out-of-the 40 stores?
Karan Bajaj
Sorry, just before that, you said gross stores you’ll add 10, 12, visit, does that mean that you’ll be cutting — I mean closing some of the stores or this is the next store at for quarter-four?
Prateek Poddar
There is no, no 10 stores will add-up in the next — in this quarter, March quarter-four that’s cross you said. So I just wanted to confirm gross or net?
Karan Bajaj
No, net-net-net, not gross. Gross totally we opened around 32 stores this first-nine months,
Prateek Poddar
Got it. Fair, fair.
Karan Bajaj
And maybe not only. We were time either talk. We are good doing good to.
Prateek Poddar
Surely. Sir, just the 40 stores which you add, maybe can you just help me with the breakup between again, same NCR, Hyderabad,
Karan Bajaj
So till now what we’ve opened up is around six stores in Delhi, five stores in Hyderabad Telangana up-country market would be seven stores and 14 odd stores in Andhra Prade. This is what we opened up this year. In the nine months Jan we’ve already opened up two stores between Jan and last 45 days, we already opened up two stores in Delhi, which we have good 10 stores are, additional. Got it. So that means, Delhi may totally, but even Pant store or anyway, which Janakuri will open up this week.
So Janakpuri already the soft launch is done. So because of the graph there, I mean because of the pollution being higher there, the construction was top for the last few months. That is why same thing what happened last year where we opened six stores on the 30th of March last year as well-understood. So this will be a similar number this year as well. We will end-up opening up the majority of the stores by this week, next week-in the last month of this year. So that is the idea for Delhi India. And then two more stores opening up in-country market and as we talk. So the total store explores this year out of 40 would be around 40 stores. We will take the total store above 200 stores for the Group. And next year, again, 35 stores what we’ve already signed-up for FY ’26 where the handover of the property or the construction is under our way, where we’ll start opening up by the first-quarter of next year.
Prateek Poddar
Okay. Sorry, just going back, 40 stores, 10 stores are in NCR, how much would be out of this 14 AP and Telangana, how much is AP? I mean ex Hyderabad, I’m say.
Karan Bajaj
Ex Hyderabad would be around 15.
Prateek Poddar
So basically this year you have not opened any store in Hyderabad. That’s a fair understanding.
Karan Bajaj
Yes.
Prateek Poddar
Okay. And what’s the store count of Hyderabad? Last question.
Karan Bajaj
So Hyderabad store count today stands at 69 stores. That includes all EBOs put together.
Prateek Poddar
That’s fair. That’s fair. Okay. Thank you. This is very helpful, Yakar. Best wishes for the begin.
Karan Bajaj
Thank you.
Operator
Thank you. Participants, if you have any questions at this time, you may enter star followed by one on your handsets. The next question is from the line of Ankit Kedia from PhillipCapital. Please go-ahead.
Ankit Kedia
Sir, two questions from my side. How you given the store-level breakup across regions. If I look at profitability, so next year, what are you modeling in terms of margins for NCR region? Given the nine months, they are pretty much flat today. So you know if the growth trajectory is similar to what you have done this year, will we be able to do 6%, 7% margins for the first 10, 12 stores which were there in NCR.
Karan Bajaj
Yeah. So Ankit, now those stores definitely, yes. So if you look at store-wise EBITDA also as profitability, gross margin levels, those stores will be at that count. But if you look at the new stores, that will definitely drag down the overall number for NCR. But the matured stores will be all-in line, probably not 6%, 7% the way it is back home in Hyderabad or AP and, it will be down by 1% or 2% because the expenses there initially would be a little higher, say, the cost of manpower, rental marketing and all-in terms of the revenue that we generate per store because the productivity per store is much lower compared to the existing market. So you would look at those numbers being a little high and the gross margins or the EBITDA numbers at the store-level would be down by 1% or 2% compared to the existing market. But saying that overall number in Delhi, which we have guided that you will touch a certain throughput. It is on par with that and we’re quite optimistic on that region going-forward. The new big stores that are opening up, six of them are all the big clusters like,, Peter Pura that we opened up recently. So all our bigger cluster stores. And going-forward, we feel that you know, Delhi should be shaping up quite well for us in FY ’26 as well.
Ankit Kedia
Sure. And if I have to look at new state entry on next year, are we planning any, say, getting into Lucknow side of the market or it will still be purely NCR next year?
Karan Bajaj
Yeah. So sir, definitely the existing clusters need more stores. That is why the addition of 35 40 stores in the coming year would definitely be there. But saying that, we even have to look at a balancing act between the existing clusters and newer clusters that we would approach. So there are newer clusters like Oriska, Western UP, probably Lucknow, a part of Haryana expansion that we’re doing up from and and Diwaldi in those places. So definitely the new market that we’re looking into, but I’m not sure that how soon we’ll be able to start those operations in those areas because more than that, we want to fortify our existing clusters and Delhi is a very big market today. Delhi, we would be ending up at 30 32 stores by next year. So we want by opening of next financial year. So we want to be more stronger in that region. So if we demand for us to open more stores in Delhi, NCR or territory of Western UP, we’ll start that immediately. So right now, we’ll end-up the year first and concentrate on increasing the productivity in the existing stores and growing in the existing market and then take a step forward in the newer clusters.
Ankit Kedia
Sir, my last question is on commission and incentives. Given that your growth this year has been a little muted around just double-digit. Do you think brands will give you the similar incentive and commission what you were getting before, given that in South market or predominantly Hyderabad, the core market we have in actually declined?
Karan Bajaj
Yeah. So that is in-line. So that would not change per se because, see, you’re not looking at a degrowth by 50% 70%, 100%. You’re looking at a big number change there, talking about two-digits here and there. So brands don’t take you for a right for such a product or such a growth or a degrowth because see the growth is coming in the newer market. So overall contribution that we give out to the brands in-line with what our contracts what we promised. So that doesn’t change per se. But if you keep on de-growing quarter-on-quarter with a much higher number or to stop doing a brand or stop catering to their product range or anything of that sort of a major decision like that, then that will impact your margin, not the smaller changes here and there because they want to understand, right, they understand the market, how it is behaving and it is not a temporary relation that you create with the manufacturers. That is why we deal with the bigger brands where our are much stronger than a quarter.
Ankit Kedia
Fair points, sir. And the last question is on the mobile handset sales. You know, we have seen disproportionate increase in mobile handsets, which comes at a lower-margin. Are you comfortable at this 43% 44% and obviously nine months the number is lower or it’s just that the demand in mobile handset continues to be so strong that the margin trajectory will be forced to be lower because of that?
Karan Bajaj
Sir, I can understand your question well. You mean to say that the margins in mobile are going to be lower than other categories? That’s what you mean to say?
Ankit Kedia
They are lower. We know that, but it’s a — do you have a conscious choice to keep a mobile revenue mix at a certain percentage because it’s impacting your margins.
Karan Bajaj
So sir, that is beyond our control. So usually, I mean like the healthier position would be like any category which makes more money sells better, right? So that is an ideal situation for any retailer, but you can’t demand what sells on the floor. So if there is a good demand for us on mobile front, we definitely would like to cater to that. And it is not only a short-term product margin that you look at. Mobile on a whole is a bigger category, a much bigger ocean than what it looks like. So why don’t we cater to that audience as well?
So there is nothing stops us from catering to that audience irrespective of the margin profile between large appliances and mobile phones. So we’ll be glad to grow in any of the categories that come our way and mobile phone is a very big market to grow in. And then eventually a customer walk your store, let it be audio built-in, kitchen appliance with small appliance in any category because you can’t shy away from selling it because the cycle of a customer is not necessarily only for one-product category that keep on coming to your store, right? So you’re looking at area of products. So you got to — as a retailer focus everything and make sure the customer gets a one-stop solution for everything that he wants.
Ankit Kedia
Sure. That’s helpful, sir. Thank you so much,.
Karan Bajaj
Thank you.
Operator
Thank you. Participants with questions may enter star followed by one on the touchstone telephones. The next question is from the line of Rohan Gupta from SQ Securities. Please go-ahead.
Unidentified Participant
Yeah. Hi, sir. Thank you for the opportunity. Most of the questions are being answered. My only data-related question is, when do we expect the Hyderabad cluster to normalize?
Karan Bajaj
Sir, Hyderabad, SSHG because of stores being all matured and the productivity costs are very-high. So obviously if this needs to get positive, does it not necessary that Hyderabad will become like a 5%, 7% kind of an FAG. So even if it comes down to 2%, 3% kind of a level, it is good enough for us. This is in-line which we see that it’s going to happen going-forward and we are quite optimistic on that. So there is no worry on that. Definitely, yes, that is being the largest cluster, the whole balance sheet turns around if that cluster doesn’t perform well, but looking at the big days like 25th January that went passed by us right now or the coming times now, I think it looks positive.
Unidentified Participant
Okay, that is helpful.
Karan Bajaj
Thank you.
Operator
Thank you. Thank you. The next question is from the line of Mehul Desai from JM Financial. Please go-ahead.
Mehul Desai
I hope you had allude first-call addition.
Operator
We are not able to hear you very clearly.
Mehul Desai
Can you hear me now?
Operator
Yes, it seems better. Thank you.
Mehul Desai
Yeah. Just on-store additions, I missed that part. Can you just reiterate your total store additions that you are looking at in FY ’25 on exit basis and on FY ’26 also? And also can you split in FY ’25, whatever store addition — I mean stores you end-up, how much would be in core South market and in NCR region?
Karan Bajaj
Yeah. Okay. So sir, the addition of stores was around 32 this — for the first 3/4 of this year or the first-nine months, out of which six stores were in Delhi NCR, around 14 stores in the Andhra market and, including Hyderabad, were around 12 stores. So that was the breakup of these 32 odd stores that we opened up this year. And then another 10 stores will add-up in this last quarter, of March, which will take the store count of new addition in FY ’25 to around 40 to 43 stores. So that is the total number out of which Delhi NCR this whole year would end-up around 32 stores more or less. And the addition for the next year would be around the 35 stores which you’ve already signed-up. Definitely as once we have more stores coming up because we have a whole year for us, so they will keep on adding up more stores in the existing cluster. And out-of-the 35 stores, again, you would see around five to six stores coming up in the Delhi NCR region and then the rest of the stores equally split between and.
Mehul Desai
Okay. So next in FY ’26, you said 35 — only five to six stores are in Delhi, NCR, you said, right?
Karan Bajaj
And that is what we signed-up now. But definitely, yes, because we are already searching for new stores in the as well. So as we progress, because we have almost four quarters in that whole year left with us, right? So as we keep on progressing, we’ll add-up stores and Delhi is going to be the major market that we’ll be looking into, but it’s not easy to find a property in Delhi and Shia, right? So because the major markets have already been covered and it takes a little more longer time to secure a property up there compared to down-south because downsouth it is more like a newer market that we are opening stores in Tier-3, 4 town. So it’s much easier to get a property at your price or your rental cost for longer lease whereas compared to Delhi NCR. So right now at 32 plus 67 stores getting ready, so we would look at Delhi NCR shaping up at least 50 stores by FY ’27, that is the plan.
Mehul Desai
Okay. And in this FY ’25, how many store additions were done in Hyderabad? So I mean when you are saying just 40 to 43 stores will get added overall, how many stores would have been added in Hyderabad market?
Karan Bajaj
Sir, exclusive brand outlets, multi-brand outlets, all formats put together on five stores is what we added up in Hyderabad City, sir
Mehul Desai
In nine months
Karan Bajaj
. Yeah.
Mehul Desai
And any plans to add any more in Q4?
Karan Bajaj
Yeah, sir, Q4 may ache to ING or Bandra and are three stores that are getting ready, especially these are all the periphery markets of Hyderabad city, which are like 30 40 kilometers away from the city center where now population increase, so we are planning to open stores in those geographies also.
Mehul Desai
Okay. So broadly from this 40 to 43 stores, we are saying 78 would be in Hyderabad in FY ’24.
Karan Bajaj
No, around five or FY ’24.
Mehul Desai
Okay. No, no. I’m talking about FY ’25,
Karan Bajaj
You said in FY ’25 plus another two years, around seven stores, correct, seven stores.
Mehul Desai
Okay. And lastly, can you give some light on how Q4 demand trends have shaped up so-far. Is there an acceleration in revenue growth versus what you have seen in Q3? I mean, are we in double-digits in Jan and Feb so-far o
Karan Bajaj
R so that will be too early for me to comment on that, but I can tell you one thing that summer is set-in a little early, so it is looking great for us as the season to start-off with. So nothing disappointing right now. But having said that, it is only the Hyderabad city that has become a little warmer during the day, whereas other clusters for us, especially north and other clusters of country is not — the weather has not changed drastically. So we do not see a great jump-in numbers right now, but that revenue — daily revenue that we look at what was a little sluggish for the last few quarters has been a little bit more on the positive side, I would say that.
Mehul Desai
Okay. Got it. That’s all from my side. Thank you.
Karan Bajaj
Thank you. Thank you, Manil.
Operator
Thank you. The next question is from the line of Sheenarayan Mishra from Baroda Pipass. Please go-ahead.
Shrinarayan Mishra
Thank you for the opportunity. Am I audible?
Karan Bajaj
Yes, sir.
Shrinarayan Mishra
So we are already halfway through the quarter and I wanted to know the level of discounts and interceptance which you’re giving, is it similar to 4Q or has it improved?
Karan Bajaj
So that — the discount structure more or less remains the same. There is not much of a difference there. So that would remain the same. So — but in terms of the productivity that we see across categories, that has been positive. So what was a little sluggish for the last few quarters, I would just like to comment on that. That has seen a positive sign there. So I would not say that jumped drastically, but yes, it is much better than what was happening in the previous quarters.
Shrinarayan Mishra
So the gross margins, we should expect for 4Q to be not that great.
Karan Bajaj
Sorry, sorry, I didn’t get your question.
Shrinarayan Mishra
Gross margins, gross margins for 4Q, will it be impacted because of business promotion and discounts.
Karan Bajaj
Not really, so that is in-line. So that is always in-line — that is accounted for. So gross margins are always accounted for the sales promotion and the cost of credit card or NBFC that will be there. So there is not much of a change there and that is added the — so the overall value might look higher or lower depending on the revenue that we generate because directly proportion of the revenues that we generate. But in terms of percentage, it is in-line with what we have been doing in the previous quarters as well.
Shrinarayan Mishra
Okay. And much of these will be in Southwester, right? North, we won’t be giving much of the discount.
Karan Bajaj
So the discount sector across the country more or remains the same. So depending on what product category or what is the demand in the market for that particular season is what is discounted or increased or decreased. But across the country, it remains the same. So not much of a difference there. And definitely, yes, because South Cluster is the largest cluster. So whatever small change positive or negative you see in the South cluster would impact the whole balance sheet because the contribution from the North is hardly negligible.
Shrinarayan Mishra
Okay, okay. Okay. And lastly, second question. So do you see some behavioral — I mean, are the NBFCs willing to land now or they are still on the backseat and we see pressure in lending?
Karan Bajaj
So sir, actually, if you see the lending in our industry has always been very matured compared to a lot of other lending — assets lending classes that they have across the industry, whereas here the civil scores have to be higher, the documentation is much more stringent, though it is a net value is much smaller than a lot of other loans that they disburse. But we’ve never seen a direct impact on lending per se. And then because we have almost four to five major NBFCs that we play around with. So the only thing that you would see is that, you know earlier, I think that would impact the minority of the approvals that come by way, but the majority of them should not have a problem because we definitely have a huge cluster base in Hyderabad, but whereas in Telangana market or Andhra Punty market, you will see a little impact due to the credit scores or the credit approval rate being a little different there.
Shrinarayan Mishra
Okay. Okay. Okay. That answers my question. Thanks.
Operator
Thank you. The next question is from the line of Rajiv from Nuvama. Please go-ahead.
Rajiv Bharati
Yeah. Good afternoon, sir. Thanks for the opportunity. Sir, with regard to your Hyderabad market, can you — just can you specify the number you clocked in Hyderabad and also the Indas EBITDA?
Karan Bajaj
Sorry, the EBITDA number for Hyderabad City?
Rajiv Bharati
Yeah. Yeah. And the revenue number also for the quarter.
Karan Bajaj
Okay. Okay. So the revenue number for the quarter stood at — so the EBITDA number — I’ll give the EBITDA numbers right open front of me, the EBITDA margin, go down. I’ll just do it. Go down. Yeah. So sir, the revenue number from Hyderabad City was INR1,079 crores for FY ’23 Q3 versus INR1,095 crores last year. And Telagan arbitry market was INR272 crores. Was INR247 crores and Delhi NCR was around INR128 crores.
Rajiv Bharati
Okay. And for the last quarter. Yeah. Can you specify the EBITDA three for Hyderabad?
Karan Bajaj
So this is EBITDA pre-NDS or else second, I’ll tell you that number as well. So the EBITDA number is per second. Yeah. So the EBITDA number would be around 7%, 7.4% for the cluster down here and Delhi would be around 0.15%, 0.2% and that kind of a number.
Rajiv Bharati
And this 7.4% is — I mean, is there an expansion on Y-o-Y basis or not
Karan Bajaj
So Hyderabad, if you again break that down into Hyderabad, you would see a little decline there to be frank, and whereas Telangana country market in would be on the higher side compared to the last quarter, last year, sorry. The highest EBITDA that we would generate would be in the Telangana country market, which would be around 8%, 8.2% approximately, whereas it was a little lower in the Andhra and then the lowest in the Hyderabad market.
Rajiv Bharati
So let’s say year back this against the 7.4% number you,
Karan Bajaj
It would be up by 0.2, 0.3 basis.
Rajiv Bharati
In Hyderabad, it will be down by 0.2%, is it?
Karan Bajaj
Yes. Yes, yes. Yeah.
Rajiv Bharati
And just one question was asked regarding this incentive income. So last year for the — on a full-year basis, you clocked INR250 crores incentive income, right? So what is the number, for example, for the nine months and how is it — how has it grown on a nine months?
Karan Bajaj
Nine months you would see a little lower number this year is because from the last couple of years, incentive income now, most of them, so incentive is basically your sell and sell-out support, your marketing support or other heads that you get around 13 heads that you would receive this money in. So that number from last — say last year it would be — for the first-nine months, it would be INR199 crore has reduced by, say, INR5 or INR6 crores because that number has now been embedded in the invoice itself.
So a lot of companies like discounts or wherever they can. They are trying to embed that in the invoice itself rather than the overall sell-out support that to give out earlier. So though the margins overall number remains the same, but the accountability part of it, which was supposed to come in the incentive now has been embedded in the invoice itself.
Rajiv Bharati
Yeah, but then the percentage margin should increase, right?
Karan Bajaj
Technically, it should, but it’s different than INR5 crores, so it’s not much of a difference there.
Rajiv Bharati
Okay.
Karan Bajaj
So here the and different.
Rajiv Bharati
Great, great. Okay. That’s all from my side. Thanks a lot.
Karan Bajaj
Thank you, sir.
Operator
Thank you. The next question is from the line of Deep Shah from Equirus Securities. Please go-ahead.
Unidentified Participant
Hi, sir. Thanks for the opportunity. Sir, just wanted some clarification. So you mentioned that you have maintained 15% top-line guidance for FY ’25. So it means that you will be growing by roughly 25-odd in the 4th-quarter. Am I right or am I missing something over here?
Karan Bajaj
It should be — so you’re absolutely right. So we are optimistic on that number. But see, end-of-the day, it all matters depends on the summer setting up a little early or the summer supporting. So if March 2nd, we just start pouring in Hyderabad, I can’t have the control over it. But to what it is going on right now, we are looking at a trajectory of at least 21% 22% right now of growth coming in with that category at least. So that is the number that we’re looking at for February coming forward. So I think we are quite optimistic on that. And then depending on how the summer, it becomes a little hotter during March, second week, third week for starts pouring, that is when you know, we’ll have to look into that number because summer product category majorly drives through the weather as well. So — but right now things look good. So definitely, it has to be on a higher average than what we’ve done in the quarter-four than last year, so that we achieve that overall number of 15% Y-o-Y.
Unidentified Participant
Okay. And secondly, sir, you mentioned about 10 o to 12 odd stores in 4th-quarter, store opening in 4th-quarter and roughly 35 stores in FY ’26. So all the stores will be MBO or should we expect any EBOs also opening up?
Karan Bajaj
All MBOs, all MBOs.
Unidentified Participant
Okay, sir. Got it. Thank you.
Karan Bajaj
Yeah. Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question. I now hand the floor over to the management for closing comments.
Karan Bajaj
Thank you everyone for joining the call and I hope that you were able to answer all your questions. And for any other further queries, you may get-in touch with Mr from SDA and we’ll be happy to address all your queries. Thank you once again.
Operator
Thank you very much. On behalf of Electronics Smart India Limited, that concludes this conference call. Thank you all for joining us and you may now disconnect your lines. Thank you.