Kalyan Jewellers India Limited (NSE:KALYANKJIL) Q4 FY23 Earnings Concall dated May. 15, 2023.
Corporate Participants:
Ramesh Kalayanaraman — Executive Director
Sanjay Raghuraman — Chief Executive Officer
Abraham George — Head of Treasury and Investor Relations
Analysts:
Rahul Agarwal — Strategic Growth Advisors — Analyst
Shirish Pardeshi — Centrum Broking — Analyst
Nillai Shah — Moon Capital — Analyst
Gaurav Jogani — Axis Capital — Analyst
Anurag Dayal — HSBC — Analyst
Naresh Vaswani — Sameeksha Capital — Analyst
Ashish Kanodia — Citi — Analyst
Bhavin Shah — Sameeksha Capital Private Limited — Analyst
Aejas Lakhani — Unifi Capital — Analyst
Pallavi Deshpande — Sameeksha Capital — Analyst
Rajiv B — DAM Capital — Analyst
Hiten Boricha — Sequent Investments — Analyst
Pankaj Prabhakar — Affluent Assets — Analyst
Unidentified Participant — — Analyst
Soham Samanta — Centrum Broking — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 FY23 Earnings Conference Call of Kalyan Jewellers India Limited. 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 guarantees 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 and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Rahul Agarwal from Strategic Growth Advisors. Thank you, and over to you, sir.
Rahul Agarwal — Strategic Growth Advisors — Analyst
Thank you. Good evening, everyone. And thank you for joining us on the Kalyan Jewellers India Limited Q4 and FY23 earnings conference call. We have with us Mr. Ramesh Kalyanaraman, Executive Director; Mr. Sanjay Raghuraman, CEO; Mr. Swaminathan, CFO; Mr. Sanjay Mehrottra, Head of Strategy and Corporate Affairs; and Mr. Abraham George, Head of Investor Relations and Treasury. I hope everyone got an opportunity to go through our financial results and presentation which just got uploaded on the company’s website and stock exchanges. We will begin the call with opening remarks from management, following which we will have the forum open for a question-and-answer session.
Before we start, I would like to point out that some statements made in today’s call may be forward-looking in nature and a disclaimer to this effect has been included in the earnings presentation shared with you earlier.
I would now like to invite Mr. Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers India Limited to give his opening remarks. Thank you and over to you, sir.
Ramesh Kalayanaraman — Executive Director
Thank you. Good evening, everyone. FY 2023 was an excellent year for the company, recorded revenue of over INR14,000 crore, a growth in excess of 13 — 30% over FY 2022. PAT of INR432 crore. This is despite a one-time extraordinary pre-tax write-off of around INR33 crore, relating to divestment of certain non-core assets. Excluding the one-time extraordinary right-off the PAT for the year is INR457 crore, a growth in excess of 100% over FY 2022.
Last financial year has also been a remarkable one in the history of the company. While driving the day-to-day execution, we had developed and successfully rolled out a strategy and roadmap to further improve the cash flow profile of the business and build a robust return on capital profile. Primary area of focus under this strategy roadmap has been to expand showroom network predominantly through the more capital-efficient for co-model — franchise model.
During the last financial year, we launched 15 franchised showrooms in India as a part of our Phase IV expansion. The first half of this financial year should see launch of around 30 showrooms and remaining 22 showrooms during the second half of the year, totaling 52 showrooms for financial year 2024. We are continuing to receive many inbound franchisee inquiries for the non-South markets in India and have started engaging with prospective franchisee partners for the next set of expansion.
In addition, we also have started getting inquiries for health markets and we plan to launch the first set of pilot franchised showroom in South in this financial year. This will be over and above the 52 showrooms planned for the non-South markets. In addition to launching new showrooms through the franchised model, we also have initiated steps to convert some of the existing owned showrooms in South India to franchised showrooms and have made considerable progress in the same.
We are also drawn up plans to reduce invested capital in the Middle East and improve its return profile by converting some of the existing owned showrooms to franchised ones. And simultaneously, expanded the showroom network through the franchise model. There has been a slight delay in setting up the vertical largely due to the local regulatory compliances and we expect to launch the first franchised showroom shortly.
Another significant area of focus has been to undertake divestments of non-core assets and use the proceeds to reduce the capital employed in the business, thereby lightening the balance sheet. We have signed LOIs with the prospective buyers for some of the non-core assets and expect to complete the first set of divestments during the first half of this financial year.
All of these steps will enable us to witness significantly higher free-cash generation during FY 2024. Which in-part, we expect to reduce the existing non-GML working capital loans. This will reduce our leverage and this proportionately reduce our interest expense as we will be repaying the higher interest cost-bearing non-GML working capital loans. Another significant decision has been the announcement of the maiden dividend for the last financial year.
Yet another high-focus project which we are excited about this is to plan from our digital-first platform Candere into a truly omnichannel. We have drawn up an exciting network expansion plan of at least 30 showrooms during the current financial year, through a mix of owned and franchised showrooms.
Talking about the ongoing quarter, we had a fantastic start to the financial year and a very strong Akshaya Tritiya despite continuing volatility in gold prices. We are witnessing increasing momentum in consumer demand, especially around the wedding purchases during the current quarter. We are upbeat about the current season and have fully geared up the system to ensure that we have yet another memorable quarter.
With this, let me hand over to Sanjay to take you through the financials. Thank you.
Sanjay Raghuraman — Chief Executive Officer
Good afternoon, everybody. Thank you, Ramesh. I’m really very happy to be talking to you all after a solid performance in the just concluded financial year. I’ll share some details now, starting with the just concluded quarter. In this just concluded quarter, we reported a consolidated revenue of INR3,382 crores, an 18% growth over the same quarter in the previous year.
Consolidated EBITDA came in at INR257 crores versus INR218 crores in the corresponding quarter of the previous year. And consolidated profit-after-tax, PAT, was INR95 crores versus INR72 crores during the corresponding quarter of the previous years.
So I’ll now give you a breakup of the numbers between India and the Middle East, starting with India. Our India revenue for the quarter just concluded was INR2,805 crores versus INR2,399 crores when compared with the corresponding quarter of the previous year. Our India Q4 EBITDA was INR217 crores versus INR188 crores when compared with the corresponding quarter of the previous financial year. And our India profit-after-tax was INR91 crores compared to INR70 crores in the corresponding quarter of the previous year.
Moving now to talk about our Middle East business. Revenue for the quarter in the Middle East was about INR549 crores compared to INR425 crores in the corresponding quarter of the previous year. EBITDA in the Middle East came in at INR42 crores for the quarter versus [Technical Issues] in the same quarter of the previous year. The Middle East business posted a profit of INR6 crores for the quarter, compared to a profit of INR4 crores for the corresponding quarter of the previous year.
Talking now about our e-commerce wing Candere, the business posted a revenue of INR32 crores in the quarter versus INR39 crores in the corresponding quarter of the previous year. The quarter recorded a loss of INR1.9 crores in Candere versus a profit of INR2.7 crores in the corresponding quarter of the previous year. During this past quarter, we had no bullion sale and our gold coins sale to retail and corporate customers was about INR115 crores, approximately 4% of total revenue.
Moving on now to talk about full-year performance. On a consolidated level, our revenue came in at INR14,071 crores, a growth of 30% over the previous year. Consolidated EBITDA came in at INR1,114 crores versus INR815 crores over the previous year. Consolidated PAT for the year came in at INR457 crores before a one-time extraordinary write-off of INR33 crores versus a profit of INR224 crores during the previous year.
Moving on now to give you a breakup of these numbers between India and the Middle East starting with India. For this just concluded year, our India revenue came in at INR11,584 crores, a growth of 28% when compared to the previous year. Our India EBITDA for the year was INR933 crores versus INR692 crores when compared to the previous year. And our India PAT came in at INR415 crores compared to INR214 crores in the previous year, a growth of 94%.
Talking now about our Middle East business, our revenue in the Middle East came in at INR2,364 crores for the year recording a growth of 44% compared to the previous year. And Middle-East EBITDA came in at INR188 crores for the year versus INR123 crores in the previous year. The Middle East business posted a profit of INR50 crores for the year compared to INR11 crores for the previous year.
Talking lastly about our e-commerce wing Candere, the numbers for the year in revenue came in at INR157 crores versus INR141 crores in the previous year. And the loss for the year was INR7.8 crores versus INR1.6 crores in the previous year.
With this, I’m done with the summary of the financials and we now open the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question-and-answer session. [Operator Instructions] We have the first question from the line of Shirish Pardeshi from Centrum Broking. Please go ahead.
Shirish Pardeshi — Centrum Broking — Analyst
Yeah. Hi, Ramesh and team. Thanks for the opportunity. Good set of numbers. If you can touch upon, in the volatile gold price market, how this last 45, 50 days, because we also had the escalation of the festive season. So if you can provide some strength to your numbers?
Ramesh Kalayanaraman — Executive Director
Yes. So without telling you the number, I can only tell you what is happening on the ground for the first 45 days in Q1 versus the first 41 days — 45 days of Q1 of the last year. The growth rate has been extremely strong. It is much stronger than the Q4 growth.
Shirish Pardeshi — Centrum Broking — Analyst
I would push because there is one other real-estate player from TN has given the sales number and quantum for Akshaya Tritiya. So I’m not sure what is the hesitation, but anyway I’ll go with that. But just tell me how this growth panned out, maybe some qualitative understanding in — versus — South versus non-South.
Ramesh Kalayanaraman — Executive Director
So South and non-South are performing equally well in the first 45 days of Q1.
Shirish Pardeshi — Centrum Broking — Analyst
Okay. Okay. One follow-up here. On the quarter-four performance, when we see that South growth was 4% in the quarter [Phonetics] gone by and non-South growth was 38%, was it largely related to the FOCO addition or there is a qualitative growth in terms of the core studded portion, which is also contributing?
Ramesh Kalayanaraman — Executive Director
So both of them. Yes. Of course, all the — most of the new showrooms were added in non-South and that is why the non-South revenue has grown. And over and above that one thing is that Q4 has never been a very strong quarter for South, okay.
Actually, if you look at it a couple of years before suddenly after the COVID come back, the Q4 revenue had a very-high base and we could at least de-grew only by 6%, 7% in the last Q4, but even then Q4 base high for us, for South players, okay. And that is the reason why SSSG is a bit softer for South. And the non-South revenue growth, of course, the — these are stronger than South India. But over and above that this much percentage difference is because of the new-store additions which we have done.
Shirish Pardeshi — Centrum Broking — Analyst
Okay. Okay. Just one clarification on FOCO. As on date, we have 15 stores. And in the opening remark, you said that you will add 52 stores. As of date, it’s not 15, as of March 31, it’s 15. As of today, it is 22.
Ramesh Kalayanaraman — Executive Director
Okay. Okay.
Shirish Pardeshi — Centrum Broking — Analyst
No. What I wanted to clarify, in FY24, you have guided that 50 stores [Phonetics] and 20 stores which will come. So total 52 stores you’re expanding under FOCO model.
Ramesh Kalayanaraman — Executive Director
Yes. And all non-South.
Shirish Pardeshi — Centrum Broking — Analyst
All non-South. Correct, correct. But would you spend a minute or two saying that because you’ve been saying this FOCO opportunity in the Middle East also, which you have not said anything. So maybe if you can give some color.
Ramesh Kalayanaraman — Executive Director
Okay. So in Middle East, if we have signed an LOI for a franchise and we were supposed to open in the Q4 or at least early June. But there has been a delay in implementation there. And we still go with that LOI and we are, now I think all the technical issues there has been sold and I think, hopefully, it should be opened in Q1 or maximum of early Q2. So after that — after the pilot phase then Middle East expansion with franchise, etcetera, we will explore more.
Shirish Pardeshi — Centrum Broking — Analyst
But would you have any number in mind which we can build-in in our module for FY24?
Ramesh Kalayanaraman — Executive Director
FY24 better be safe, we don’t put a model for expansion — too much of expansion in the Middle East. And we will be keeping on updating you and better put it that way.
Shirish Pardeshi — Centrum Broking — Analyst
Okay, okay. My last question is on the gold metal loan. As of March ’23, would you be able to give us or quantify some more details, what is the quantum, what is it that we want to achieve and what is the [Indecipherable] at which we are expanding.
Abraham George — Head of Treasury and Investor Relations
Shirish, Abraham here.
Shirish Pardeshi — Centrum Broking — Analyst
Yes.
Abraham George — Head of Treasury and Investor Relations
The gold metal loan balance as on March ’23 is INR10,853 crores. This is consolidated. Of which, India is INR1,091 crores, and the remaining is Middle East. We have been able to increase this number from INR1,496 crores last year from — and so we’ve made meaningful increase in the Middle East and we have done about INR100 crores increase in India. And from here, we have probably another INR50 crores — INR75 crores headroom in India to increase beyond which we will need further sanctioning of limits sub-limits from the overall banking limits.
Shirish Pardeshi — Centrum Broking — Analyst
Abraham, thanks for that. But I’m just reading a little more in detail. You said that there is a divestment of non-core assets which is going to happen.
Abraham George — Head of Treasury and Investor Relations
Yes.
Shirish Pardeshi — Centrum Broking — Analyst
So directionally [Phonetics] that money should come in and our gold metal loan should come down by half. Is that assumption is right?
Abraham George — Head of Treasury and Investor Relations
No. So whatever debt repayment that we are planning for the financial year, we are planning for repayment of the higher-cost non-gold metal loan debt. And in parallel, we will also be trying to increase the gold metal loan limits within the bank. So in any case, gold metal loan will not come down from this level.
Shirish Pardeshi — Centrum Broking — Analyst
So what is the non-gold metal loan debt today?
Abraham George — Head of Treasury and Investor Relations
It is INR1,650 crores, around.
Shirish Pardeshi — Centrum Broking — Analyst
Okay. Okay, that’s helpful. I’ll come back to the queue. Thank you.
Abraham George — Head of Treasury and Investor Relations
Okay, thank you.
Operator
Thank you. The next question is from the line of Nillai Shah from Moon Capital. Please go ahead.
Nillai Shah — Moon Capital — Analyst
Thank you. Let me just dive a little bit deeper into this growth question.
Operator
Sorry to interrupt, Mr. Shah, your voice is muffled. Could you please use your handset to ask a question.
Nillai Shah — Moon Capital — Analyst
Yeah. Hello, is it better.
Operator
Thank you. Yes sir, please continue.
Nillai Shah — Moon Capital — Analyst
Yeah, okay. So I know you talked about the growth for fiscal ’24, 52 new franchisee stores to be added, plus the fact that it’s 23, 24 stores added this financial year or last financial year. Those stores will mature. So can you give some sort of indication of how the growth is ready to pan-out? And even companies like [Indecipherable] have been giving indication of what the growth is.
So I agree with Shirish, why there’s so much reluctance to give a broad range of growth guidance for fiscal ’24?
Ramesh Kalayanaraman — Executive Director
Yeah, so there is no what you call his [Phonetics] addition. I will tell you — I can give you a view on it, where as you rightly said 52 new showrooms, which we are going to open in the running financial year, that itself should take care of at least a mid teen — late teen revenue growth, okay?
Nillai Shah — Moon Capital — Analyst
Late teen store, franchisee stores. Okay, sir.
Ramesh Kalayanaraman — Executive Director
Yeah. And again in addition, SSSG of the showrooms is usually 5%, 6% of the existing showroom.
Nillai Shah — Moon Capital — Analyst
Right.
Ramesh Kalayanaraman — Executive Director
And the full-year revenue for the showrooms which we opened in the last — what we call last financial year, okay, that — full-year revenue should also come for the next financial year.
Nillai Shah — Moon Capital — Analyst
Got it, sir. So we are looking at 18 plus SSSG, plus the fact that the old stores mature and you’ll get the full impact of those revenues coming through for the full financial year in fiscal ’24. That is very clear. Thank you, sir.
Ramesh Kalayanaraman — Executive Director
Correct.
Nillai Shah — Moon Capital — Analyst
The other question is on margins. For the quarter you’ve reported over about 7.7% operating margins. This appears a little bit lower in context of what you’ve said in the past before the franchisee stores opened up, but really the impact of franchisee stores for this financial year is going to be fairly low given that there are only 14 — 15 stores as you close the financial year.
So 7.7% margins for this quarter given the South launch mix also has improved through the financial year. How should we think about margins going forward? Now I understand that there is only 52 of these franchisee stores opened up and last year you — last quarter, I think you spoke about 5% PBT margins, I think for these stores.
Ramesh Kalayanaraman — Executive Director
Yeah.
Nillai Shah — Moon Capital — Analyst
So how should we think about margins going-forward?
Ramesh Kalayanaraman — Executive Director
So I think — first of all, let us do a deep chicken [Phonetics] analysis on this. If we look at the gross margin, in Q4, it was — in India, it is like 15.6%, okay. And I — franchisee revenue according to you, what should be the percentage of franchisee revenue on the topline?
Nillai Shah — Moon Capital — Analyst
Normally. I would take it as — about 60% of your Kalyan store.
Ramesh Kalayanaraman — Executive Director
Yeah, per showroom, yeah. So 15 showrooms for franchisee with the first time revenue of the, what, nine showrooms which we opened in Q4. Okay. So the revenue, if you look at for — just for a conversation, if you keep it as 10% of the revenue come from franchise at 8%, the rest 90% actually have delivered the gross margin is becoming better okay. It is in the, what, 16%, 16.5% range. Again, it’s coming back to our old 16%, 16.5% margin on gross level.
So EBITDA, I think we should slowly start moving from EBITDA margins and gross margins to PBT margins, so that we are both on the right direction. Because as we said, the next year expense is completely going to be on FOCO model. Okay. And we might also start doing South franchisee. So if we go in this direction of trying to build an EBITDA margin, I think we will get lost somewhere because we will not be looking in the same direction. No.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management —
Ramesh Kalayanaraman — Executive Director
Nillai Shah, did I answer you?
Operator
I’m sorry, sir. The participant has left the queue.
Ramesh Kalayanaraman — Executive Director
Okay.
Operator
Maybe he will rejoin, I’ll take him back.
Ramesh Kalayanaraman — Executive Director
Yeah, sure.
Operator
Okay. [Operator Instructions] We have the next question from the line of Gaurav Jogani from Axis Capital. Please go ahead.
Gaurav Jogani — Axis Capital — Analyst
Thank you for the opportunity, sir. My first question is with regards to the CapEx number. If you see for the year to FY23, as per the cash flow, it comes to around INR187 crores on the consol basis and around INR160 odd crores on the standalone basis. Now, we understand that the CapEx for the store is around INR5 odd crores, INR6 odd crores for the stores that you have opened and I think we have opened owned stores of around 11 or 12 owned stores. So in that context, what is the remaining CapEx for?
Ramesh Kalayanaraman — Executive Director
CapEx will be what — INR80 crores, INR90 crores will be maintenance CapEx itself and rest will be for the new stores, which we opened. So the new stores which we opened also, the FOCO model — even in the FOCO model, we have done a model wherein except the first three showrooms, the fit out CapEx was done by Kalyan Jewellers. So that is the CapEx increase that you see.
Gaurav Jogani — Axis Capital — Analyst
Okay, okay. So sir, in future also —
Ramesh Kalayanaraman — Executive Director
Out of the 23 showrooms opened last year, 20 showrooms’ CapEx we have only added. Okay?
Gaurav Jogani — Axis Capital — Analyst
Okay.
Ramesh Kalayanaraman — Executive Director
And plus the INR90 crore maintenance CapEx. So that is how it should be looked.
Gaurav Jogani — Axis Capital — Analyst
So sir going ahead also like the FOCO store that will be open, will the capex be incurred by us? Or I mean, how should we build the capex going ahead given that we were thinking that this FOCO would be an asset-light model?
Ramesh Kalayanaraman — Executive Director
You are talking about the 52 showrooms of the [Speech Overlap]
Gaurav Jogani — Axis Capital — Analyst
Yes, yes, yes.
Ramesh Kalayanaraman — Executive Director
So these 52 has been signed as capex done by Kalyan, wherein the fixed asset will be done by Kalyan and that is the model which people are opting. So actually we have two models. One is that full capex meaning inventory plus fit out will be done by franchisee, that is model number one. Model number two is that inventory will be put by them and fit-out will be done by Kalyan. So preference for people is to put money on inventory rather than into fit-out and people opt for the option two. And the 52 which we have signed is for — meaning all the 52 has been signed for that.
Gaurav Jogani — Axis Capital — Analyst
So sir, one follow-up here. So in that case, does the margin profile changes with the partner there?
Ramesh Kalayanaraman — Executive Director
Can you tell me once more?
Gaurav Jogani — Axis Capital — Analyst
Yeah. So I think —
Ramesh Kalayanaraman — Executive Director
We have put a fee for AMC meaning — for the asset which we build for them. So there is an AMC in case it is on us, we charge them.
Gaurav Jogani — Axis Capital — Analyst
Okay. And sir, if you can share that number. So it will help us to build in the margins.
Ramesh Kalayanaraman — Executive Director
So we charge what — 1%, right, Sanjay?
Sanjay Raghuraman — Chief Executive Officer
Yeah. [Technical Issues]
Ramesh Kalayanaraman — Executive Director
Yeah. So it’s like 1% of the revenue which are for assets.
Gaurav Jogani — Axis Capital — Analyst
Okay, sure. So thanks for that. Sir, my next question is with regards to the interest costs. If you see the interest cost on a quarterly basis, it is kind of consistently going up. I understand that the interest rates have also move in the interim. So if you can help us out, how soon we are building the interest cost given that now you will also be reducing the debt during the same period. And some portion would also be shifted to the gold or metal loans which will be a lower interest cost a lot per loan. So how should we build the interest costs going ahead?
Ramesh Kalayanaraman — Executive Director
Yeah, so interest — the conversion to gold loan is not going to be predominantly majorly high for the running financial year because we have a headroom only what INR50 crore, INR75 crore more for us to increase our gold loan, okay. Debt reduction plan is, yes, it is there. It will start with the cash, which is going to come in from aircraft. And of course, there is going to be free cash flow for the company into the running year and there are going to be savings.
The savings is going to be disproportionately higher than the percentage of debt reduction, which we will do. So the plan for this financial year, debt reduction to be in the range of 15% on a gross level and interest reduction should be more than that because this going to be reduced — the non-GML is going to be reduced, all the 15%.
Gaurav Jogani — Axis Capital — Analyst
Okay, okay, okay. So sir, when you say gross, I mean that is the total loan of around INR3,000 odd crores. That’s [Indecipherable]
Ramesh Kalayanaraman — Executive Director
So 15% on a gross level. Yes, you are right.
Gaurav Jogani — Axis Capital — Analyst
Yeah. So that’s like INR3,400 odd crores, right?
Ramesh Kalayanaraman — Executive Director
[Indecipherable] North India.
Gaurav Jogani — Axis Capital — Analyst
India. Okay, okay, okay. Sure sir, I’ll come back in the queue, sir, for more.
Operator
Thank you. The next question is from the line of Anurag Dayal from HSBC. Please go ahead.
Anurag Dayal — HSBC — Analyst
Hi. Thank you, Ramesh and team for taking my question.
Ramesh Kalayanaraman — Executive Director
Hi.
Anurag Dayal — HSBC — Analyst
Hi. So I have just one basic question. Now you have around 22 odd franchisee stores opened across North India. And few of them are open for more than six months. So I mean, how has been your experience so far in terms of, how the store [Indecipherable] but the throughput you expected inventory turns or studded ratio, are there differences from your own stores? So some color on that would really help.
Sanjay Raghuraman — Chief Executive Officer
Hi, this is Sanjay here.
Anurag Dayal — HSBC — Analyst
Yeah, Sanjay.
Sanjay Raghuraman — Chief Executive Officer
So in terms of difference, there is no real difference to talk about except that some of these outlets, slightly smaller in size as compared to our regular outlets. Some of them are as good as big as our larger outlets. Just to give you a frame of reference, the outlet we opened in Agra this month — last month as big as any of our flagship outlets to similarly Gorakhpur. So essentially it’s a market-specific strategy. This has now been running for about nine months from the earliest outlet. And we’ve had good experience, our franchisee partners have also had a good experience. And I think the — studded ratios are in-line with what we have budgeted and modeled we have already got the same franchise partners who signed up for the initial outlets putting their hands up for multiple outlets which they have asked for other locations.
So in summary, I’d like to say that it’s been progressing the way we and wishes it to pan out.
Anurag Dayal — HSBC — Analyst
Great, sir. Thanks a lot. And just a small question. Basically, I can see that apart from your expansion in non-South, you’re looking for expansion to franchisee model in South than you are looking for expanding the Candere module as well as the Middle East. So I don’t understand how much of the management bandwidth, is it getting too stretched because already you have ambitious plan of opening 50-plus stores. So how you are managing this entire expansion plans. Do you have — certain leaders assigned to different region to look into this?
Sanjay Raghuraman — Chief Executive Officer
I think the only different thing that needs to be done is to get the model right at the start. We have kind of got that down to our satisfaction in the India context for the North as well as the South. And then those things are stable. The modeling phase in Candere is now in progress and I think we will sign a few partners in this quarter. To that extent, we will have some activity there, but it’s handled by a separate team. I don’t see any challenges there.
Same thing in the Middle East. We’ve got the model rolled out. The first couple of LOIs have been signed. There were some time lags in the franchisee partners getting their documentation and their incorporation of firms, etcetera, stabilized. That’s now done. So in this — first half of this financial year, the first franchisee outlet in the Middle East will come online as also for Candere, South India will also definitely happen.
Anurag Dayal — HSBC — Analyst
Thanks. Thanks a lot. And all the best for the year ahead. Thank you.
Sanjay Raghuraman — Chief Executive Officer
Thank you.
Operator
Thank you. The next question is from the line of Naresh Vaswani from Sameeksha Capital. Please go ahead.
Naresh Vaswani — Sameeksha Capital — Analyst
Yeah, thank you for the opportunity. Sir, my first question is on the margin. So if I look at full-year FY23 versus ’22 —
Operator
I’m sorry to interrupt. Sir, your audio is not clear. Sir, maybe you can use your handset.
Naresh Vaswani — Sameeksha Capital — Analyst
Is it proper?
Operator
Yes, sir. Please continue. Thank you.
Naresh Vaswani — Sameeksha Capital — Analyst
Yeah, so my first question is on the margin. So for FY23 EBITDA margins were 7.9%, which was flat compared to last year — full-year FY22. But if you see our studded ratio and also share has gone up meaningfully in this year. Now I understand that you mentioned that franchisee margins will be lower but again the contribution from those stores would be pretty low right now. So if you can throw some color around it.
And second next year for ’24, since all the stores will be on the FOCO model, what sort of EBITDA range will you guide us?
Ramesh Kalayanaraman — Executive Director
Yeah, so, we should slowly move out from the EBITDA calculation and go to PBT percentage. So otherwise it is very hard for us to give a guidance because franchisee model is scaling up in such a way that all the expenses doing — meaning — is being done by franchisee. Okay.
So EBITDA margin, if you look at this year, it has been in the range of what — 4.7%, 4.8% annually. I think we should focus on that and there should — you should see a growth in the PBT margins as a percentage to revenue.
Naresh Vaswani — Sameeksha Capital — Analyst
Okay, got it. And secondly, on the inventory days, so — if I compare from first half, it has gone up from 175 days to 182 days. I understand that in franchisee you’d be requiring very less inventory days hardly 10, 15 days. So again for FY24, where should we see the inventory days going, because I presume it would — it should go down substantially. So any guidance on that you should — if you want to share.
Ramesh Kalayanaraman — Executive Director
So you are talking about the inventory turn, right?
Naresh Vaswani — Sameeksha Capital — Analyst
Yes, correct.
Ramesh Kalayanaraman — Executive Director
Yeah, inventory turn, if you look at our inventory, the revenue went up by 30% and inventory went up by 20%, okay. So we are surely in a direction where the inventory turn is going up. And over and above that we should consider a few things, one is that, we opened 11 own showrooms in this financial year. And we again opened — we had to keep inventory for the five new showrooms which we opened in April, wherein franchisee building will happen only in April, but we would have stopped in March itself.
And in this financial year, Akshaya Tritiya came in April third week instead of — last year, it was in May. So we had stocked heavily in all our stores by March-end itself, that also comes as stock in March itself, okay. Over and above all that, we also renovated and actually upgraded 11 to 12 of our Tire one showrooms to gain [Phonetics] as well as to compete the leading players there. Okay.
And when your gold price increases, of course, we cannot increase the — we cannot keep the same volume, because then you will have to invest the same kind of money. For example, 15% there was increase in gold price in the last financial year. And if I keep the same volume in all my stores, I would have to keep 15% additional inventory increase there, which we have not done because we have worked in such a way that we have been maintaining the same volume at the stores, but some increase in inventory is also because of the gold price increase.
And growth of course is going to be predominantly franchisee driven. And going forward, inventory turn improvement should be there, and that’s what I want to tell you.
Naresh Vaswani — Sameeksha Capital — Analyst
Yeah, so just I’ll ask it another way. So for franchisee stores, what would be the inventory days on our books? If you can guide us some range like would it be more than 10, 15 days or?
Ramesh Kalayanaraman — Executive Director
It will be 15 days of — 15 days we will have to keep inventory on 15 days revenue.
Naresh Vaswani — Sameeksha Capital — Analyst
Okay, okay. Thank you. And one last question. Wanted to know your payout policy for — from here on iron-ore that for ’23 it is 12% of that but going ahead should we expect improvement from Europe?
Ramesh Kalayanaraman — Executive Director
So we will surely come up with the dividend policy very soon. But our intention for the next financial year meaning running financial year is to at least deploy 40% to 50% of our profits generated for repaying debt as well as rewarding investors.
Naresh Vaswani — Sameeksha Capital — Analyst
Okay. Okay, sir. Thank you.
Operator
Thank you. The next question is from the line of Ashish Kanodia from Citi. Please go ahead.
Ashish Kanodia — Citi — Analyst
Hi, thank you for the opportunity. So on the gold metal loan, you talked about reducing the gross borrowings at India level by maybe 15%. Which basically means maybe around INR300 crores worth of repayment of borrowings. So is it fair to say that at least the gold metal loan will go up by INR300 crores, because even if we assume that the sanction limit does not change, you will use that repayment of borrowings to increase the gold metal loan?
And second related question on that is for the sanction limit to increase, right, what are the drivers are? I mean, how can we increase that limit?
Ramesh Kalayanaraman — Executive Director
So first thing is that we will be repaying the debt and the debt repayment will be for the non-GMLs, okay. It does not mean that the GML as an amount will increase. It only means that the proportion of GML versus the other loan will surely increase because the repayment is going to be non-GML, okay.
And for your second question as to how we will increase the GML, it is all meaning, what we believe is that first of all, we are trying to bring in one or two new banks who can give us GML instead of our non-GML. And again, when we start to be paying — we will surely get into negotiation with banks to increase the GML limit instead of the non-GML. So it is a process.
So for a conservative approach better we don’t budget for any increase in GML as an amount except for what INR50 crore, INR75 crore. Because that’s the way we should do is what I feel. And debt reduction, of course, you can plan in such a way or we can budget in such a way that it comes to 15% of the gross amount in India. And all that will be non-GML.
Ashish Kanodia — Citi — Analyst
Let me ask the question this way, right, that if you look at the last three years right, gold metal loan has been around [indecipherable], right. No. I mean, once you repay the debt, your overall borrowing limit remains the same. So effectively if you want you can increase the gold metal loan. And given that GML is a natural hedge and it’s also very cost-effective because the borrowing cost on GML are basically attractive.
So I mean, from a strategy perspective — keeping aside modeling, but clearly from a strategy perspective, if — do you intend to increase that — this amount if you have the opportunity, just because if you’re repaying debt?
Ramesh Kalayanaraman — Executive Director
Yeah, it’s a separate set of discussion with banks on that behalf. Wherein as we speak, the things in our control full control of repayment of non-GML loans, okay. To increase the limit in GML, it is again a discussion with the banks, which we will have to do, which we will surely do but we don’t want to commit anything for this financial year because meaning — it’s not in our full control. Because banks also, see, that this much percentage of loans should be gold loan, this much not gold loan and there are banks in our consortium where they don’t have a gold metal loan product itself. So we are trying to bring in one or two new banks who have a gold loan vertical with them, etcetera.
So the interest saving will be higher than the reduction of 15% loan, because even if you reduce 15% loan, the interest will be proportionately much higher because we are going to reduce the non-GML quotient and not the GML quotient.
Ashish Kanodia — Citi — Analyst
Sure, sure. got it. And second question is just on the cash flow, right, with the incremental cash flow you’re generating in Middle-East. Because in the Middle East, you have the intention to do the franchisee stores as well. So first, from whatever profit that has been delivered in the Middle East, what’s the strategy there? Do you want to deploy stores — open more company owned stores in Middle East or been that be bought back into India?
And the second thing is, in terms of sale of non-core assets, while on aircraft you said that most probably it will happen in [indecipherable], but the second leg of non-core asset is sale of land. So if you can provide any color, any guidance in terms of when can we start expecting cash flows coming in from land sale, that would be very helpful. Thanks.
Ramesh Kalayanaraman — Executive Director
Yeah. So Middle East, as you know, our plan was to — in the last financial year itself, we wanted to try franchise. But we don’t want to block our expansion there. So we were, like in India also, for example, we have opened, for example, 11 showrooms, all 11 showrooms in the Q4 we wanted to open as franchise only. But at the end what happened, nine was franchise and two was own and both those two, we actually converted to franchise — we will convert to franchise very soon, because there was delay from there for getting their GST and things like that. So we jumped in and made it our own store and we will make it a franchise store in the future, very soon.
So same in the Middle East, our intention in the Middle East is to expand only by franchise, that is our intention. And conversion, we want to do in such a way that when we open three showrooms, one will be converted. So three franchise if we open, one will be owned store conversion and two will be new. That is what we want to do, because otherwise, franchisee will not be able to make money. Because the base revenue will not satisfy to take care of the operating cost there, the fixed operating cost, meaning the corporate overhead. So we will do that way in Middle East and then bring back the cash to India and that’s our intention in Middle East.
And cashflows from aircraft, we should expect, what, five to six months for the full cash to come in and that proceeds will also be used for repaying the non-GML debt.
Ashish Kanodia — Citi — Analyst
Sir, my second question was on the land that, I understand aircraft cash will come in by 1H ’24, any clarity in terms of when the second —
Operator
I’m sorry to interrupt. Sir, I would request you to kindly rejoin the queue for the follow-up.
Ramesh Kalayanaraman — Executive Director
Yeah, so [indecipherable] his earlier question, I will just answer wherein debt reduction plan, when we repay this INR300 crore, INR400 crore debt, we will start to negotiate with the banks to release certain collaterals and then we will divest that also and bring it back to the system. It’s a long-term process, don’t budget anything for this year. And it’s a process, meaning, it will take two-three years for us to do all this but we will start this year.
Ashish Kanodia — Citi — Analyst
Sure, very helpful. Thank you.
Operator
Thank you. The next question is from the line of Bhavin Shah from Sameeksha Capital Private Limited. Please go ahead.
Bhavin Shah — Sameeksha Capital Private Limited — Analyst
Yeah, thank you. Could you explain the differences in terms for gold metal loans that you get in India versus Middle East?
Abraham George — Head of Treasury and Investor Relations
Yeah. India, we get the gold metal loan at about 3.73%. In the Middle East, it’s slightly higher than that, it must be in the range of about 5%.
Bhavin Shah — Sameeksha Capital Private Limited — Analyst
What about quarter collateral?
Abraham George — Head of Treasury and Investor Relations
Collateral, it functions in a similar way, you have to keep margin and rest everything works in the similar way.
Bhavin Shah — Sameeksha Capital Private Limited — Analyst
No, but I thought in India, you had to provide some other collateral real estate or something which limited how much —
Abraham George — Head of Treasury and Investor Relations
You were asking for the other. Okay. So here in India, initially, when we have taken the line of credit from these banks, line-of-credit required 35% real-estate collateral or some other collateral that requirement is not there. But for gold metal loans, specifically, if you ask, whatever you have to keep. The margin that you have to keep it similar across India and Middle East.
Bhavin Shah — Sameeksha Capital Private Limited — Analyst
So in Middle East, you are saying, you don’t have any additional collateral that you [Phonetics]
Abraham George — Head of Treasury and Investor Relations
No, because those arrangements where Middle East — we entered Middle East in 2013 and 2014. By then, these structures were not because — our India structured this even older than that.
Bhavin Shah — Sameeksha Capital Private Limited — Analyst
And you mentioned that you were committed to some, I think, I’ve forgotten what you said 40% to 50% of profit used paying debt and dividend. But I think what investors will look for is a committed policy on payout whether it’s dividend or a buyback. So what do you want to spell it out and if not why not?
Abraham George — Head of Treasury and Investor Relations
Yeah. So we will surely give you clarity on — the Board is yet to come out with the dividend policy as such. But we will certainly update you very shortly on that.
Bhavin Shah — Sameeksha Capital Private Limited — Analyst
Okay, thank you.
Operator
Thank you. [Operator Instructions] We have the next question is from the line of Aejas Lakhani from Unifi Capital. Please go ahead.
Aejas Lakhani — Unifi Capital — Analyst
Yeah, hi, Ramesh. Congratulations on the numbers.
Ramesh Kalayanaraman — Executive Director
Hi, thank you.
Aejas Lakhani — Unifi Capital — Analyst
And congratulations on a phenomenal ’23 and wishing you the best ’24. If you could just spell out the franchisee model again, because my understanding and I could be wrong, was that the CapEx was likely to be borne by the franchisee? And you know from the gross margin, a certain percentage was shared by the franchisee, certain percentage was borne — came to you from the gross margin, then you had a certain OpEx line and you were expected to earn 4% to 5% on a PBT. So is that understanding correct? Could you just spell out that if it’s a 2,900 square-foot showroom, how will the unit economics work?
Ramesh Kalayanaraman — Executive Director
Yeah. So your understanding is perfectly okay. Wherein, there are two models. One model is that CapEx meaning fit out plus inventory will be invested by the franchisee partners. And there will be a margin share between franchisee partner and Kalyan Jewellers. And we take care of the operations, meaning the staff, etcetera, and we will end up in a situation where we make 5% PBT, that is the first model.
Second model is that, they invest only in inventory and the fit-out is done by us. If we do the fit-out, we take 1% of the revenue also, as asset, what we call, maintenance charge like AMC. But PBT of course, instead of 5% will become 6%, but EBITDA will — instead of 5% it’ll become 6%. But when you come to the — depreciation will come, so that will be almost the same. And there’ll be no impact in the PBT.
Aejas Lakhani — Unifi Capital — Analyst
Okay, so broadly under both the models, you will continue to — so you will continue to lead 4.5% to 5% under both of the models.
Ramesh Kalayanaraman — Executive Director
Exactly.
Aejas Lakhani — Unifi Capital — Analyst
Okay. But then tell me something, say. 2,500 square feet showroom, the CapEx costs will be much smaller, right. So why would the franchisees be willing to give up that 1% incremental for, I don’t know, let’s say, a INR3 crores CapEx for 2,500 square feet showroom, because roughly you do five crores for the larger hotels most the showrooms, which we opened our in the range of 3,400 square feet. When the CapEx will be in the range of 3.5 crores. Okay, okay, so the inventories. There will be roughly INR20 crores, INR22 crores in the model which we are doing now.
Ramesh Kalayanaraman — Executive Director
The lease agreement today is done by Kalyan Jewellers with the landlord and they are investing for the CapEx there. Okay. We don’t want to actually do the lease their name, because if there is any kind of misunderstanding with the franchise owner, we don’t want the property also to go because of the misunderstanding with the franchise partner.
So, for them there are two ways, one is that they are — they want to invest in metal instead of fit-out which gives them actually more comfort. Number two is that the leases in our name and when they have to do the fit-out in — what he call from their pocket that also — they wish to actually not do like that. So when we invest, we calculate AMC, incorporating the actual capex and cost-of-capital.
Aejas Lakhani — Unifi Capital — Analyst
Okay. So everything is routed through you. So even if a franchisee decides to —
Operator
Mr. Lakhani, I would request — kindly rejoin the queue.
Bhavin Shah — Sameeksha Capital Private Limited — Analyst
Sure.
Operator
Thank you, sir. Thank you. The next question is from the line of Pallavi Deshpande from Sameeksha Capital. Please go ahead.
Pallavi Deshpande — Sameeksha Capital — Analyst
Yes, sir. Congratulations on this good set of numbers. On the pre-tax ROIC, we’ve seen an improvement to 13%. Would you be willing to share some target, the two to three-year target on where you see the pre-tax ROIC?
Ramesh Kalayanaraman — Executive Director
So I don’t want to give you a target, but one thing what we should understand is that the return on capital is going to be anyway — going up because, we are going. FOCO model of expansion, wherein the investment is small and the returns are higher. So directionally, you should see a lot of improvement. And also, you will see a lot of reduction in capital employed because the divestment of certain non-core assets, etcetera and rewarding investors etcetera. And that should be the way we should look at.
So I don’t want to give you a target, but you can easily — meaning you should understand the way forward for the next two-three years, the returns are going to be anyway better.
Pallavi Deshpande — Sameeksha Capital — Analyst
Right. We saw good improvement this year. So hope we can do that. Second — and my second question was on the South side, you mentioned about converting some of them to the franchisee model. So would you be willing to put a number to how many stores you’d think convert in the South to franchisee?
Ramesh Kalayanaraman — Executive Director
So we don’t want to — because we have not tried a pilot. Okay. So post the pilot, then only we will setup a target for how much stores we should convert from South, non-South to South — own store to franchise. Okay. Inquiry is very strong, but we are capping ourself to the pilot to be completed and then we will give you or we will internally put a target of how much to convert etcetera.
Aejas Lakhani — Unifi Capital — Analyst
And the pilot will be completed in the first half of what?
Ramesh Kalayanaraman — Executive Director
Ideally, we should start the pilots conservatively by the H1.
Pallavi Deshpande — Sameeksha Capital — Analyst
All right. Thank you, sir.
Operator
Thank you, ma’am. The next question is from the line of Rajiv B from DAM Capital. Please go ahead.
Rajiv B — DAM Capital — Analyst
Yeah, good afternoon, sir. Thanks for the opportunity. Sir, this additional capex you did because of the change in franchisee, the second route which you’ve chosen, Is there a clause in which you sell it back later, let’s say as the stores starts delivering little better number?
Ramesh Kalayanaraman — Executive Director
No, no. I did not understand it.
Rajiv B — DAM Capital — Analyst
So instead of AMC, the 1% AMC, you basically recover the entire INR3 crores or some consideration and lighten up the balance sheet.
Ramesh Kalayanaraman — Executive Director
Yeah. We have not considered it right now, but yeah, we can consider it later. So — but as of now, nothing.
Rajiv B — DAM Capital — Analyst
And it is safe to assume that all the remaining 52 are the — remaining part of the 52 are also on the similar kind of arrangement —
Ramesh Kalayanaraman — Executive Director
50 or 52. The signed LOI is 52 with all this model.
Rajiv B — DAM Capital — Analyst
Sure. And that’s all. Thanks a lot.
Operator
Thank you. The next question is from the line of Hiten Boricha from Sequent Investments. Please go ahead.
Hiten Boricha — Sequent Investments — Analyst
Yeah, good evening, sir. Sir, I have only one question there. So can you quantify the amount, you told, we will be selling some non-core assets this year for debt reduction. But can you quantify the amount of how much is going to come from non-core? And after this selling, do we have any other non-core assets, which will be monetized later?
Ramesh Kalayanaraman — Executive Director
So once the — it’s the first round of non-core asset divestment, which will completely go for better traction. So — and now there is only chopper there, which is a INR30 crore book value. Otherwise, all the non-core asset is a task, wherein you’ll have to repay the debt and then negotiate with the bank, take it out and then resell etcetera, which meaning — it’s not as easy as what we are doing for the aircraft and Choppers.
So this is INR134 crores, the deal has been done, that was our first around and we will do it very shortly and the real estate, etcetera, we will start the process this year. And Chopper also, I don’t want to comment as of now, because first, let us complete these two aircraft and then commit on the third one.
Hiten Boricha — Sequent Investments — Analyst
So sir, what would be the total value of all the non-core assets? If you can give some ballpark number.
Ramesh Kalayanaraman — Executive Director
So around INR500 plus crores.
Hiten Boricha — Sequent Investments — Analyst
Okay, okay. Okay, understood, sir. This INR500 crore will be go into monetize later this year or maybe next year.
Ramesh Kalayanaraman — Executive Director
Yes. So INR500 plus aircraft, okay, to be clear.
Hiten Boricha — Sequent Investments — Analyst
Okay, okay. Okay, sir, thank you.
Ramesh Kalayanaraman — Executive Director
Thank you.
Operator
Thank you. The next question is from the line of Pankaj from Affluent Assets. Please go ahead.
Pankaj Prabhakar — Affluent Assets — Analyst
Thanks for taking my question.
Operator
Yes, sir.
Pankaj Prabhakar — Affluent Assets — Analyst
Well, congrats, sir, for delivering such a great numbers for the whole year.
Ramesh Kalayanaraman — Executive Director
Thank you.
Pankaj Prabhakar — Affluent Assets — Analyst
Just wanted to understand, now you — now that the FOCO, you have complete handle over to FOCO models and which you started with non-South market and want to expand the same model to both Middle East and South. So going forward, maybe this year ’24 or beyond, what are the levers of margin expansion? From — and where do we take this margin from, you can fetch any I mean EBITDA margins or PBT margins from EBITDA margins from 7.98% to what level can we go?
And secondly, I mean, same for the return ratios. Where do we see return ratios of maybe FY24 also? Do we see it from mid-teens to closer to higher teens or lower 20s?
Ramesh Kalayanaraman — Executive Director
Yeah. So here again, I will tell you we should surely come out of this EBITDA margin and go to PBT margin because then only both of us will go in the same direction, because if I knew for FOCO model, you know that model FOCO comes with the lesser gross margin and lesser EBITDA, okay? And owned store, even though your EBITDA margins will slowly go up that cannot negate or that cannot even go near the revenue growth which is going to come from the franchise. So there will be surely an EBITDA margin pressure and gross margin pressure for Kalyan Jewellers okay, because we are opting a FOCO model.
But when you ask me PBT margin, there should be surely a growth in the PBT margin as a percentage. And now we are at 4.7%, 4.8%, which should be closer to 5% by the end-of-the financial year. And way forward, it should again go up because operating leverage will also start coming in. So that should be the way we should look at it is what my limited request is.
Pankaj Prabhakar — Affluent Assets — Analyst
And what about the return ratios? Where do you see the return ratios?
Ramesh Kalayanaraman — Executive Director
ROCE, I don’t want to give a target, but you will see significant improvement because we have already crossed 17% pre-tax ROCE now. For medium term target is to take it well past 20%.
Pankaj Prabhakar — Affluent Assets — Analyst
For FY 24?
Ramesh Kalayanaraman — Executive Director
No, medium-term, meaning in a couple of years.
Hiten Boricha — Sequent Investments — Analyst
Okay. And one more clarification.
Operator
I’m sorry.
Hiten Boricha — Sequent Investments — Analyst
Just a clarification, just a clarification. In the last question, you mentioned that value of non-core assets which would be disposed as INR500 odd crores. So is this a book-value of the asset or the market value since it is land?
Ramesh Kalayanaraman — Executive Director
Market value, meaning INR500 crores is market value and plus the aircraft. Aircraft, the market value will be usually lesser than the book-value, meaning, that’s what we see — that’s what we saw now. But the other thing is, meaning the book value will be lesser and the market value will be higher. So just have blanket or which I mentioned this, what the banks are valued at.
Pankaj Prabhakar — Affluent Assets — Analyst
So that would be the book value, right? It would not be the market value or whenever you have valued it —
Ramesh Kalayanaraman — Executive Director
[Speech Overlap] the book value is the [indecipherable] value. Banks value at-the-market value — valuation, they do — the banks do valuation on the marketplace. So [Speech Overlap] would be INR200 crore.
Pankaj Prabhakar — Affluent Assets — Analyst
So it would not be revalued on daily basis, right? Or yearly basis?
Ramesh Kalayanaraman — Executive Director
Every year.
Pankaj Prabhakar — Affluent Assets — Analyst
Okay. Thank you. Thanks a lot, sir.
Ramesh Kalayanaraman — Executive Director
Yeah.
Operator
Thank you. The next question is from the line of Harshil [Phonetics] from DAM Advisors. Please go ahead.
Unidentified Participant — — Analyst
Hi, sir. Sir, what is our target of reduction of debt for the current year?
Ramesh Kalayanaraman — Executive Director
So it’s 15% on a gross level, that’s what our target is. 15% of the gross debt in India, we want to reduce. Maybe INR300 crore to INR400 crore.
Unidentified Participant — — Analyst
Okay, okay. Thank you.
Operator
Thank you. The next question is from the line of Soham Samanta from Centrum Broking. Please go ahead.
Soham Samanta — Centrum Broking — Analyst
Yeah. Hello, sir. Sir, what is your full-year grammage growth for FY23?
Ramesh Kalayanaraman — Executive Director
Volume? We don’t track it actually because customer comes with a particular budget.
Soham Samanta — Centrum Broking — Analyst
SSSG for the full year?
Ramesh Kalayanaraman — Executive Director
SSSG for the whole year?
Soham Samanta — Centrum Broking — Analyst
Yeah, yeah.
Ramesh Kalayanaraman — Executive Director
It’s around what upside of 5%.
Soham Samanta — Centrum Broking — Analyst
And the studded ratio is similar to Q4?
Ramesh Kalayanaraman — Executive Director
Studded ratio?
Soham Samanta — Centrum Broking — Analyst
Yeah, yeah.
Ramesh Kalayanaraman — Executive Director
You are talking about Q4, right? It’s —
Soham Samanta — Centrum Broking — Analyst
No. I’m talking about full-year studded ratio.
Ramesh Kalayanaraman — Executive Director
Full year studded ratio is around 25%. I’ll just check the number once more.
Soham Samanta — Centrum Broking — Analyst
Okay. And last one from my side is that, is there any further one-off?
Ramesh Kalayanaraman — Executive Director
No, nothing. No further one-off because aircraft — there is no further write-off at all because we have valued [Speech Overlap]
Soham Samanta — Centrum Broking — Analyst
That is no one-off, right?
Ramesh Kalayanaraman — Executive Director
No, no, no write-off.
Operator
Thank you. The next question is from the line of Gaurav Jogani from Axis Capital. Please go ahead.
Gaurav Jogani — Axis Capital — Analyst
Sir, just one clarification in terms of store opening in [indecipherable] 52 stores that you mentioned would only be in India, right? And we believe Candere will be over and above that.
Ramesh Kalayanaraman — Executive Director
52 mentioned is only non-South India, okay, over and above that South India Candere and Middle East [Technical Issues]
Operator
Sorry to interrupt, Mr. Jogani, we are not able to hear you clearly. There is a lot of disturbance in your background, and as well your audio is not clear, sir.
As the current participant has left the queue, we move onto the next question which is from the line of Pallavi Deshpande from Sameeksha Capital. Please go ahead.
Pallavi Deshpande — Sameeksha Capital — Analyst
Right, sir. In terms of the aircraft — two aircraft you said, just confirm that you have another INR300 crore worth of aircraft to the sold?
Ramesh Kalayanaraman — Executive Director
No, no, no. So the — now we have only one more aircraft remaining in the book, which is INR30 crore not INR300 crore.
Pallavi Deshpande — Sameeksha Capital — Analyst
Okay. Right. And sir, you mentioned the 17% ROCE. So that’s calculated excluding this land of INR500 crore or it’s total aircraft value of INR300 crores. Because our number was 13%.
Ramesh Kalayanaraman — Executive Director
No, that is excluding the gold metal loan.
Pallavi Deshpande — Sameeksha Capital — Analyst
Okay.
Ramesh Kalayanaraman — Executive Director
If you include gold metal loans, then it will be about 14%.
Pallavi Deshpande — Sameeksha Capital — Analyst
Okay, got it. Thank you so much, sir.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Ramesh Kalyanaraman for closing comments. Over to you, sir.
Ramesh Kalayanaraman — Executive Director
Thank you very much. Again, if you have any more queries, our team is always available because I understand that there are more people who wanted to ask questions. And due to the limitation of time, we are forced to end the call, but you are always welcome and Abraham and Sanjay are always available. Of course, if you want me, I can also join. Okay, thank you very much.
Operator
[Operator Closing Remarks]