Kewal Kiran Clothing Limited (NSE:KKCL) Q4 FY23 Earnings Concall dated Apr. 28, 2023.
Corporate Participants:
Hemant Jain — Joint Managing Director
Pankaj Jain — President
Analysts:
Varun Singh — ICICI Securities — Analyst
Kapil Jagasia — Nuvama Wealth — Analyst
Pritesh Chheda — Lucky Investment Managers — Analyst
Shrinjana Mittal — RatnaTraya Capital — Analyst
Deepak Lalwani — Unifi Capital — Analyst
Nitin Gosar — BOI AXA Mutual Fund — Analyst
Himanshu Upadhyay — O3 Capital — Analyst
Siddharth Purohit — InvesQ Investment Advisors — Analyst
Yogesh Bhatia — Sequel Investments — Analyst
Shreya Baheti — Anand Rathi — Analyst
Prerna Jhunjhunwala — Elara Capital — Analyst
Pavan Kumar — RatnaTraya Capital Partners — Analyst
Akshay Kothari — Envision Capital — Analyst
Ankit Babel — Subhkam Ventures — Analyst
Yash Bajaj — Lucky Investment Managers — Analyst
Chinmay Shah — — Analyst
Marshal — — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Kewal Kiran Clothing Limited Q4 and FY ’23 Results Conference Call. Before we begin, a brief disclaimer. The presentation and the results which Kewal Kiran Clothing Limited has uploaded on the stock exchange and their website, including the discussion during this call contains or may contain forward-looking statements concerning Kewal Kiran Clothing Limited business prospects and profitability, which are subject to several risks and uncertainties, and the actual results could materially differ from those in such forward-looking statements. [Operator Instructions]
I now hand the conference over to Mr. Hemant Jain, Joint Managing Director. Thank you, and over to you, Mr. Jain.
Hemant Jain — Joint Managing Director
Good morning. On behalf of Kewal Kiran Clothing Limited, I welcome everyone to the Q4 and FY ’23 Earnings Conference Call of the company. Joining me on this call is Mr. Pankaj Jain and Marathon Capital, our Investor Relations adviser. I hope everyone had an opportunity to look at our results. The presentation and visuals release have been uploaded on the stock exchange and our company’s website.
Our company scaled new peaks in sales, both in the terms of value and volume, backed with impressive EBITDA and PAT in FY 2023. Continuing our practice of consistent dividend payout, the Board of Directors have declared the second interim dividend at 30% for the financial years 2022, ’23. The consistent growth in our performance reflects the power of the company’s brand to connect with consumers in providing the unparalleled fashion experience.
Today, from being denim-focused brand, we have evolved as a leading lifestyle brand. Our continued focus on growing our presence and visibility through increasing our brand-focused EBOs coupled with expanding our product portfolio and aggressive marketing coverage are the key contributor for this robust performance. The company added net 97 EBOs in FY ’23 and 15 EBOs in Q4 FY ’23 across the region, taking the tally to 453 EBOs as at March 31, 2023, from 356 as on March 31, 2022. Additionally, 49 stores are under development. For enhancing brand visibility and aspirational value, we undertook aggressive marketing campaign, including our outdoor advertising to event in sponsorship to sports sponsorship as well as advertisement across multiplex and theaters.
We entered into a strategic partnership with BCCI as an official partner for the Indian cricket team. Additionally, we were the title sponsor for the India versus Bangladesh Cricket Test Series and also carried our aggressive in-stadium brand advertisement during the India versus South Africa series. All of this, we believe, has helped the brand killer to reach out to the millions of cricket fans across gender and that are spread across the country and overseas.
The company brands today reflect the attitude of today’s youth, the killer instinct to achieve high on Integriti, bold as LawmanPg3 and friendly as relaxed as Easies. Driven by the power brand and combined with the high level of governance and physical prudence, the company has formally established itself as a credible long-term player in world of branded fashion wear. We are very confident in our ability to further build on the progress made so far and continue to drive a strong overall growth.
Now coming to the financial performance highlights. Standalone performance highlights for FY ’23. Revenue from operations for FY ’23 grew by 28.3% to INR779.5 crores as compared to INR607.6 crores in FY ’22. Gross profit grew by 32.8% to INR330.6 crores in FY ’23 as compared to INR248.9 crores in FY ’22. Gross margin for FY ’23 stood at 42.4% as compared to 41% in FY ’22. EBITDA for FY ’23 grew by 51.9% to INR151.9 crores as compared to INR100 crores in FY ’22. EBITDA margin for FY ’23 stood at 19.5% as compared to 16.5% in FY ’22. PBT for FY ’23 grew by 49.1% to INR157.1 crores as compared to INR105.3 crore in FY ’22. PBT margin for FY ’23 stood at 19.6% as compared to 16.9% in FY ’22. PAT for FY ’23 grew by 46.1% to INR119.3 crores as compared to INR81.7 crores in FY ’22. PAT margin for FY ’23 stood at 14.9% as compared to 13.1% in FY ’22.
Now, stand-alone performance highlights for Q4 FY ’23. Revenue from operations for Q4 FY ’23 grew by 17.6% to INR199.5 crores as compared to INR169.6 crores in Q4 FY ’22. Gross profit grew by 22.8% to INR89.2 crores in Q4 FY ’23 as compared to INR72.6 crores in Q4 FY ’22. Gross margin for Q4 FY ’23 stood at 44.7% as compared to 42.8% in Q4 FY ’22. EBITDA for Q4 FY ’23 grew by 21.3% to INR39 crores as compared to INR32.2 crores in Q4 FY ’22. EBITDA margin for Q4 FY ’23 stood at 19.6% as compared to 19% in Q4 FY ’22. PBT for Q4 FY ’23 grew by 29.2% to INR42.4 crores as compared to INR32.8 crores in Q4 FY ’22. PBT margin for Q4 FY ’23 stood at 20.5% as compared to 19% in Q4 FY ’22. PAT for Q4 FY ’23 grew by 27.4% to INR31.6 crores as compared to INR24.8 crores in Q4 FY ’22. PAT margin for Q4 FY ’23 stood at 15.3% as compared to 14.3% in Q4 FY ’22.
We may now begin the question-and-answer session.
Questions and Answers:
Operator
[Operator Instructions] The first question is from the line of Varun from ICICI Securities.
Varun Singh — ICICI Securities — Analyst
First of all, congratulations on good set of numbers. So my first question is on revenue from retail channel. So if I look at year-on-year growth. So the growth looks muted that is roughly 3%, 4% decline. And also, if I look at the EBO retail expansion year-on-year, that number looks quite impressive at 27% growth. So how should we reconcile these 2 numbers? Also does this not reflect softness in same-store sales growth for our EBO stores?
Pankaj Jain — President
So the question — just to clarify, your question is, okay, the number of stores have increased by close to around 28% scenario, and the revenue growth on the retail side has — on the total side has been at 17%. Is that what you’re going to ask?
Varun Singh — ICICI Securities — Analyst
Sir, revenue growth for retail channel like we have given breakup of revenue from retail and non-retail in our investor presentation. So if I kind of look at only the retail channel revenue growth. So that number is — looks relatively muted.
Pankaj Jain — President
The numbers for the — annualized number, okay, as retail for FY ’23, was around INR [Indecipherable] crores where in FY ’22, it was around INR253 crores. That reflects the total business structure on the revenue aspect also. If the revenue has increased by the same percentage, so as retail.
Varun Singh — ICICI Securities — Analyst
Sir, for the current quarter number, I mean — for example, our revenue contribution from retail channel is 46.9% or roughly 47% and for same quarter last year, it was 55.4%.
Pankaj Jain — President
That’s a percentage structure. Absolute business.
Varun Singh — ICICI Securities — Analyst
That’s a percentage?
Pankaj Jain — President
Yes. Percentage structure of the total business, the absolute number has increased, so the retail numbers for the quarter — okay, quarter 4 is around INR75 crores and it was INR75 crores last year as compared to current year, which is INR104.9 crores. That’s close to — equivalent to the revenue number, the growth of the revenue number, right?
Varun Singh — ICICI Securities — Analyst
Okay. So sir, I just wanted one clarification that in the PPT, we say, 47% is revenue contribution from retail channel. So this 47% number, which is…
Pankaj Jain — President
Retail is combination. So generally, okay, retail is a combination of EBO stores as well as…
Varun Singh — ICICI Securities — Analyst
I’ll ask on that. Yes, yes. No, I understand that. So sir, in that case, our revenue contribution from large format stores would be much higher? What should be that composition?
Pankaj Jain — President
No. Okay. I’m saying the retail number is at INR104.9 crores in the current quarter as compared to INR75 crores of the last quarter, which reflects the growth, which is above the scenario of the current quarter.
Varun Singh — ICICI Securities — Analyst
Okay. So when you say retail, it is only for EBO channel, correct?
Pankaj Jain — President
No. When I say retail, it’s a combination of retail and LFS.
Varun Singh — ICICI Securities — Analyst
Okay. Okay. Understood. Understood. Okay, sir. And sir, my second question is if we look at revenue from jeans, so that has kind of roughly also stayed muted and as a consequence of that, average selling price, our revenue outperformance was driven by volume growth. So how should we look at revenue from jeans to be growing in future given that it contributes roughly 50% to our total revenues?
Pankaj Jain — President
Hello?
Operator
Yes, sir, you are audible, go ahead.
Pankaj Jain — President
Yes. I’m audible, right? [Indecipherable], but the base of jeans was okay anyway at a higher level. So jeans has grown, but the other categories, including the shirts, trousers, t-shirts have outgrown the jeans category.
Operator
The next question is from the line of Kapil Jagasia from Nuvama Wealth.
Kapil Jagasia — Nuvama Wealth — Analyst
First of all, congratulations on great set of numbers. Sir, my first question is on gross margins. I just wanted to understand the reasons for increasing gross margins, as I believe winterwear season would have been higher in this quarter and this winterwear is kind of a lower gross margin product as compared to the company average?
Pankaj Jain — President
So the gross margins for the current quarter, when you said that winterwear is included in the current quarter. Winterwear is generally forms the part of the third quarter. In case of any provision or work — markdowns, which have to be done, that has been taken as a part of this quarter. And the cost of goods — okay, gross profit, you will see that there has been a marginal increase, 2 reasons for that. One is that, okay, the operations — okay, there has been a reduction in — with the cotton price in the current quarter. So that has added to that value.
Kapil Jagasia — Nuvama Wealth — Analyst
Okay. And how your accessories segment grew this quarter? How is that as compared to company average? Is that a higher-margin gross margin? Or the margins are lower over there?
Pankaj Jain — President
Accessories is a trading business structure. So margins are lower as compared to the garment average.
Kapil Jagasia — Nuvama Wealth — Analyst
Okay. So how has accessories grown for you this quarter?
Pankaj Jain — President
On the accessories business, it has grown.
Kapil Jagasia — Nuvama Wealth — Analyst
On a higher level.
Pankaj Jain — President
Yes.
Kapil Jagasia — Nuvama Wealth — Analyst
Okay. Sir, my next question is regarding your product portfolio now with increase in this winterwear and accessories going forward, would we be seeing lower operating margins and return ratios for you in the future? Because — or probably we will be attending the lower end of the targets of probably 18% mentioned by you earlier on the margins? How that would be?
Pankaj Jain — President
We see that okay for next 2 years perspective, we’ll be able to maintain the current EBITDA structure.
Kapil Jagasia — Nuvama Wealth — Analyst
Okay. And the return ratios would be for you going forward?
Pankaj Jain — President
Return ratios? What return ratios?
Kapil Jagasia — Nuvama Wealth — Analyst
The return on capital employed?
Pankaj Jain — President
More or less similar.
Kapil Jagasia — Nuvama Wealth — Analyst
Okay. And sir, how much was the ad spends for you this quarter? And what would be the same in terms of FY ’24?
Pankaj Jain — President
So the spend for the current quarter was around 8.2% as compared to 5.4% of last quarter.
Kapil Jagasia — Nuvama Wealth — Analyst
Okay. And then the percentage for FY ’24 would be?
Pankaj Jain — President
No, it was similar to what was for last year. So last year, it was around 5.5%, this year, we have been able to close it at 5.7%.
Kapil Jagasia — Nuvama Wealth — Analyst
No, sir, I’m asking for the coming year, FY ’24.
Pankaj Jain — President
It will be at similar margins only.
Kapil Jagasia — Nuvama Wealth — Analyst
5.5%?
Pankaj Jain — President
5.76%. We generally say it’s generally around 5% to 7%.
Operator
Next question is from the line of Pritesh Chheda from Lucky Investment Managers.
Pritesh Chheda — Lucky Investment Managers — Analyst
Yes, sir, congrats on a good numbers. My first question is on the FY ’23 number, so that’s the full year number. What kind of growth would have come from your existing setup? Comes from the new additions in terms of stores that we have done, some dollar at the overall annual number level would be helpful. My second question is we have added substantial stores last year and just a year before that. Any closures, any learning which needs to be implemented in the next round of store additions that we’re going through?
Pankaj Jain — President
Pritesh, okay, learning is there on, on the phase perspective. Retail allows you to learn on everyday basis. When you were looking at the comparison structure. So accessories has been around 7% growth. On a like-to-like format from FY ’21, okay, from FY ’21, ’22 to ’22, ’23 okay, all like-to-like stores on a 9-month basis. I have excluded the first 3 — first quarter business because first quarter was very subdued in the ’21, ’22.
Pritesh Chheda — Lucky Investment Managers — Analyst
Understood, sir. And on the store expansion side, any closures that we have gone through in the last round of stores that we have opened?
Pankaj Jain — President
There will be some closure perspective happening. But okay, this is the net figure which we are giving right now.
Pritesh Chheda — Lucky Investment Managers — Analyst
What kind of store expansion is lined up in FY ’24?
Pankaj Jain — President
I just said that okay, close to around when Hemant bhai was going through it, 49 stores are under development.
Pritesh Chheda — Lucky Investment Managers — Analyst
And will we add the same 80, 90 stores that we added in ’23?
Pankaj Jain — President
Close to 90 to 100 stores, yes.
Pritesh Chheda — Lucky Investment Managers — Analyst
Okay. And how easy is to get or how easy or difficult is to get a location. And in the last 5, 7 years, there have been so many closures of these denim brands. So is it fairly easier to find a store or find a franchisee for creating the source?
Pankaj Jain — President
Most of the stores have been on a franchisee module itself, okay? So when there is success ratio, it’s easier to get — okay, to convince the other franchisees.
Pritesh Chheda — Lucky Investment Managers — Analyst
Okay. And my last question is, we grew substantially this year. The same metrics lines are happening next year because we have a 90-store addition again. Will the growth rate — revenue growth rate be continuously in FY ’24 as well on a higher side?
Pankaj Jain — President
Our estimate still remains at 18% to 20% on the revenue growth and similar on the EBITDA margins also.
Pritesh Chheda — Lucky Investment Managers — Analyst
And any difficulty or needs that you are seeing on the working capital side for doing this business?
Pankaj Jain — President
No. We improved our working capital.
Operator
The next question is from the line of Shrinjana Mittal from RatnaTraya Capital.
Shrinjana Mittal — RatnaTraya Capital — Analyst
Yes. Firstly, congrats on great set of numbers for the year. Just one question from my side. On the gross margin side, partly gross margins, like you mentioned that because of cotton prices, it has increased. And what I’m trying to understand is, is it also because of the product mix that’s changing? So for us, winterwear and accessories are a little lower on the gross margin side. EBITDA margin is roughly the same, but other categories also between jeans and shorts also, is there a — this will impact shirts or higher gross margin. Is that the case?
Pankaj Jain — President
The base categories, which is jeans, shirt, t-shirt, trouser operate on the same levels. Winterwear is low, since it’s a trading business, it operates on a lower level.
Shrinjana Mittal — RatnaTraya Capital — Analyst
Okay. Okay. Understood. So all the gross margin benefit that we got this quarter, that’s been majorly because of cotton prices, is it?
Pankaj Jain — President
It’s because of the mix percentage also as well as the cotton prices.
Operator
The next question is from the line of Deepak Lalwani from Unifi Capital.
Deepak Lalwani — Unifi Capital — Analyst
Congrats on a very good set of numbers. So the first question is on the jeans category. We have seen a 5% degrowth in the second half. So how should we be reading into this? Is there — because we hear slowdown — at the top of slowdown with other retail companies. So do we see any sort of slowdown in the non-retail channel, specifically online or MBOs. If you can throw some light on that?
Hemant Jain — Joint Managing Director
When we are giving a number, so retail and non-retail — on the EBITDA margin, they almost contribute similar. That’s one aspect. Secondly, yes, okay, the non-retail channel for us has been growing at a slower speed as compared to a retail scenario.
Deepak Lalwani — Unifi Capital — Analyst
Okay. So is there any demand slowdown which you see because even other companies are talking about the same as a discretionary sector itself is seeing some slowdown. So if you can throw some light, if our demand is impacted in Tier 2, Tier 3 or urban, if you can just give a sense on that?
Hemant Jain — Joint Managing Director
Market sentiment is low. That is right [Foreign Speech] because my product range and my price is so reasonable. [Foreign Speech] because our strategies, our product mix and our prices are supporting us to grow on the pace. [Foreign Speech]. And see, anyway, we have to find a way, [Foreign Speech]. Market sentiment is slow [Foreign Speech] But yes, [Foreign Speech] because of complete strategic [Foreign Speech].
Deepak Lalwani — Unifi Capital — Analyst
Right. Okay, sir. That was useful. And sir, this cotton benefit, the lower cotton prices, the benefit which you’ve gotten, will we be passing it on to the customers in lower ASPs going forward? Or should we maintain this sort of gross profit margin?
Hemant Jain — Joint Managing Director
[Foreign Speech]
Pankaj Jain — President
To add what Hemant bhai said, okay, even if there has been a marginal impact on the gross margins and even if it comes ahead also, that the same will be passed on in the marketing aspect and will be spent on marketing.
Deepak Lalwani — Unifi Capital — Analyst
Right. Right. Got it, sir. And sir, you’ve done great work on new product categories. So if you can just give us a sense as to how the accessories category is shaping up for you? Because this is your first year of launching it. So how is the demand for that?
Hemant Jain — Joint Managing Director
Demand is good. [Foreign Speech] you need minimum 3 seasons. [Foreign Speech] because the first reason is the learning for us. [Foreign Speech]. And it is very small category. [Foreign Speech]
Deepak Lalwani — Unifi Capital — Analyst
Right. Okay, sir. And sir, lastly, we have cash of about INR300 crores on the balance sheet, and we’ll be generating a good amount of cash next year as well. So any sense on how we’ll be using it in terms of capex or any M&A activity? Or should we assume this dividend payout policy, dividend payout to continue?
Hemant Jain — Joint Managing Director
Capex, INR30 crores to INR35 crores [Foreign Speech]. And the cash [Indecipherable] we are also looking for the organic growth [Foreign Speech]. So that cash will utilize. [Indecipherable] we are thinking about growth of business [Foreign Speech]. So we have to depend on internal accrual. We don’t want to borrow the funds.
Deepak Lalwani — Unifi Capital — Analyst
Got it. Historically, we have been maintaining 50% dividend [Indecipherable].
Operator
Sorry to interrupt you, your voice is not coming clear.
Deepak Lalwani — Unifi Capital — Analyst
Is it clear now?
Operator
Yes.
Deepak Lalwani — Unifi Capital — Analyst
Yes. Sir, historically, we have maintained 50% dividend payout. This year, it was slightly on the lower side. So if you can give us a sense as to if this will be the new range? Or will it be considering to take it up? Or should we — or are we looking at other avenues like a buyback or something to increase the payouts next year?
Hemant Jain — Joint Managing Director
The company intends to convert cash to capitalize upon various growth opportunities, both organic and inorganic, which would add its plan to continue to focus on growth in the years to come. It’s [Foreign Speech] We want to grow our business by utilizing opportunities. So we are looking for that. And for that we have decreased the dividend payout a little. It’s a strategic decision, [Foreign Speech]. So that’s why we hold the cash in the bank.
Pankaj Jain — President
To add to what he said, okay, there is going to be a capex investment this year, okay, because we are already operating on almost 100% efficiency on the production line. That’s one. Secondly, we are exploring the idea of inorganic growth also. That’s why we are reserving that cash with us.
Deepak Lalwani — Unifi Capital — Analyst
Okay. And you mentioned that there is scope for working capital improvement from 135 days today. So any number which you would want to share on that, how much improvement in terms of working capital, can you do?
Pankaj Jain — President
I said that, okay, the working capital has improved during this year, okay? What I’m saying is, okay, on the balance sheet, it was close to around 135-odd days. I presume for the next year, it’s going to stay somewhere between 120 to 130 odd days.
Deepak Lalwani — Unifi Capital — Analyst
Got it, Pankaj. That answered all my questions. Continue the good work. All the best.
Operator
The next question is from the line of Nitin Gosar from BOI AXA Mutual Fund.
Nitin Gosar — BOI AXA Mutual Fund — Analyst
A couple of questions. I wanted to understand what has been your observation in terms of growth between 2 regions like Metro Tier 1 versus Tier 2, Tier 3?
Hemant Jain — Joint Managing Director
[Foreign Speech]. So we are not looking Metro grow in Tier 2, Tier 3. But yes, [Foreign Speech] Growth percentage in Tier 2, Tier 3 is great.
Pankaj Jain — President
Nitin, just to answer to what you asked. I said, okay, we generally don’t follow a metro and non-metro centric bifurcation. We follow a zone-wise bifurcation and all the zones have grown this year.
Nitin Gosar — BOI AXA Mutual Fund — Analyst
Okay. And any region specific, like Northeast, Southwest [Foreign Speech]
Pankaj Jain — President
Okay. And we have grown in all the regions. On the absolute number, we have grown in all the regions.
Nitin Gosar — BOI AXA Mutual Fund — Analyst
Got it. And second one is related to overall FY ’23 [Foreign Speech] we would have done a better work versus the peer set, even the national as well as peer set.
Pankaj Jain — President
Sorry, I didn’t get the question.
Nitin Gosar — BOI AXA Mutual Fund — Analyst
If we see the numbers of FY ’23, it seems that Kewal Kiran would have done better versus national as well as peer set which are at local level in terms of growth and the business development work. If we want to understand it specifically, from local players point of view, say, what has been your observation? Post-COVID, have they been able to come back [Foreign Speech]?
Hemant Jain — Joint Managing Director
[Foreign Speech] we have an in-house production, so we converted them within no time, we got that one benefit. [Foreign Speech]
Nitin Gosar — BOI AXA Mutual Fund — Analyst
Got it. [Foreign Speech], we would have seen more and more EBOs — sorry, more and more MBOs giving us some kind of sales place?
Hemant Jain — Joint Managing Director
[Foreign Speech]
Nitin Gosar — BOI AXA Mutual Fund — Analyst
Got it. Got it. And sir, in large-format stores, is there a way to understand [Foreign Speech]?. Are we present in all stores or part of the stores, number of stores?
Hemant Jain — Joint Managing Director
We are working with almost everyone till now.
Nitin Gosar — BOI AXA Mutual Fund — Analyst
[Foreign Speech]. Let’s say, for example, if the client that you are working with has a 100 stores, are we present in all 100 stores? Or are we in between and there is scope for?
Hemant Jain — Joint Managing Director
We choose the stores [Foreign Speech] because there is a cost incurred [Foreign Speech]. Store choice is ours, then we will work with them. We want to work in every store. It’s our choice.
Nitin Gosar — BOI AXA Mutual Fund — Analyst
And internally, if one were to see outlook. So this retail growth, going forward, it will continue to be led by large format stores or EBOs and large format stores will participate equally from now?
Hemant Jain — Joint Managing Director
[Foreign Speech]. It’s a mix.
Nitin Gosar — BOI AXA Mutual Fund — Analyst
Mix so far was largely in favor of large format stores?
Hemant Jain — Joint Managing Director
[Foreign Speech] We are going to open 80 to 100 stores. We will get growth from there too.
Nitin Gosar — BOI AXA Mutual Fund — Analyst
Okay. Got it. Right. Fair point, sir. And last question, jeans contribution which has come down to almost like 51% for full year?
Hemant Jain — Joint Managing Director
[Foreign Speech]. Jeans is also growing in terms of absolute number. If you see, numbers have grown. [Foreign Speech]
Nitin Gosar — BOI AXA Mutual Fund — Analyst
Fair point. In fact, the question was, the shirt as a category, how are we trying to position ourselves? It seems we have done good job there. [Foreign Speech] but we have been able to capture some kind of market share, mind share from the MBOs and EBOs.
Hemant Jain — Joint Managing Director
Initially, we were denim-focused brand. Now today is the brand is all about the lifestyle. You cannot depend on one type of product. You have to establish in all the categories. [Foreign Speech] Now we do not want to focus on only one category. We say now brand is all about the lifestyle. You have to focus on each and every category. [Foreign Speech]
Nitin Gosar — BOI AXA Mutual Fund — Analyst
So internally, within team, from an organization point of view is very much clear that all the segments have to now contribute. The earlier idea of jeans driven organization has changed now.
Hemant Jain — Joint Managing Director
That got completely changed.
Pankaj Jain — President
Just to add, on a contribution level, on percentages, jeans, shirt, t-shirt contribute almost similar.
Nitin Gosar — BOI AXA Mutual Fund — Analyst
Okay. contribution basis. No, it’s a fair point. I was just trying to understand, [Foreign Speech] all the promoters have done a good execution, but on the ground level too, is it same understanding of our team members, as an organization now are a lifestyle organization and not jeans driven organization.
Pankaj Jain — President
Saying, okay, the company is now capitalizing on the brand aspect, okay? When you start operating on a retail aspect, you were also looking at increasing the basket side of the product, okay? And that’s why new, new categories are adding up, and that has also started contributing.
Operator
Next question is from the line of Himanshu Upadhyay from O3 Capital.
Himanshu Upadhyay — O3 Capital — Analyst
Congrats on good set of numbers. And it seems we are on track to reach that INR1,000 crores expiration we have laid out historically. Can you give an idea of how have the brands done in this year? So is the growth still driven by Killer or Lawman, Easies and Integriti are also starting to contribute. So some idea on how the brands have been doing would be helpful. And what are we doing on…
Pankaj Jain — President
Focus has always been on the Killer brand followed by Integriti and both have grown. So that has not been a problem.
Himanshu Upadhyay — O3 Capital — Analyst
So will Killer be still 60% of revenue and 15% type of through Lawman?
Pankaj Jain — President
No, no. So Killer contributes the highest, which is more than 60%, and it still contribute ad also. The first focus would be brand Killer.
Himanshu Upadhyay — O3 Capital — Analyst
Yes. So I’m seeing the revenue contribution from Killer remains more than 60%.
Pankaj Jain — President
It is.
Himanshu Upadhyay — O3 Capital — Analyst
And Lawman would be nearing 15%, which has been historical.
Pankaj Jain — President
Those are brand-wise numbers, okay. But I’m just saying that Killer still contributes more than 60% of the business.
Himanshu Upadhyay — O3 Capital — Analyst
Okay. Okay. And what was the advertisement expense related with BCCI and title sponsorship for the things? And have all these been expenses is flowed through P&L or something got capitalized in FY ’23?
Pankaj Jain — President
I’m saying, okay, I’m going to do the exact numbers. First, okay, the selling and distribution expenses for the entire year has been close to around 5.7% as compared to 5.5% of last year. Okay. Not give exact numbers. And I’m sorry, I cannot give you exact numbers of what was the deal regarding the BCCI.
Himanshu Upadhyay — O3 Capital — Analyst
But it has been all expensed out in this year’s P&L. Nothing has got capitalized no?
Pankaj Jain — President
It has been expensed out in the current year.
Operator
Next question is from the line of Siddharth Purohit from InvesQ Investment Advisors.
Siddharth Purohit — InvesQ Investment Advisors — Analyst
Yes. Congrats for the good numbers. Need one clarification. Last year, we were doing a little aggressive store expansion. [Foreign Speech]
Hemant Jain — Joint Managing Director
We are planning to open 80 to 100 stores this year too. 49 are already in pipeline. [Foreign Speech]
We are working on that. We want to open 80 to 100 stores this year at any cost.
Siddharth Purohit — InvesQ Investment Advisors — Analyst
[Foreign Speech]
Hemant Jain — Joint Managing Director
[Foreign Speech]
Siddharth Purohit — InvesQ Investment Advisors — Analyst
[Foreign Speech] so price-led growth still possible here or it will be more or less relations [Foreign Speech] How one should look at it?
Pankaj Jain — President
The strategy has been that there is going to be a price hike, okay? But it also depends on how the competitors react to during this current season.
Siddharth Purohit — InvesQ Investment Advisors — Analyst
Right. So most of them are kind of thinking of some price cut. So how price hike will be?
Pankaj Jain — President
We haven’t got any clarity on the pricing aspect of other brands. Okay. When we get that, okay, depending on that, we’ll be defining our prices.
Hemant Jain — Joint Managing Director
[Foreign Speech] Last year, our EBITDA margin 18% to 20%. We will maintain this EBITDA margin of 18% to 20%.
Siddharth Purohit — InvesQ Investment Advisors — Analyst
Right. And Pankaj, one more data points. Like, we have introduced many categories this year. [Foreign Speech]
Pankaj Jain — President
If you see inventory days or debtor days scenario, total working capital has reduced from last year’s period. And I’m saying that it will fall down for next year also, okay? I will keep my working capital at 120 to 130-odd days.
Operator
[Operator Instructions] The next question is from the line of Yogesh Bhatia from Sequel Investments.
Yogesh Bhatia — Sequel Investments — Analyst
First of all, congratulations on very good set of numbers. Sir, I wanted to know, we have done a very solid volume growth in this year on a full year basis, almost 23%. What is our sense on the volume growth for the — on a full year basis for FY ’24? Do you think a similar level can be maintained? Or how do you see this? And if you can throw some light that is it mainly because of new store additions and since adding similar number of stores, is it right to assume that we can do a similar volume growth?
Hemant Jain — Joint Managing Director
[Foreign Speech] We are focusing on 18% to 20% growth this year too.
Yogesh Bhatia — Sequel Investments — Analyst
But the realization has not grown so much on a year-on-year basis.
Hemant Jain — Joint Managing Director
[Foreign Speech] 18 % to 20% EBITDA margin is a good margin. [Foreign Speech] It’s a trading business.
Pankaj Jain — President
Just to add, okay, the average realization is a composite number right? It can also change because of the composite mix, which has changed this year.
Yogesh Bhatia — Sequel Investments — Analyst
Right, sir. There are too many different products to just average it out like.
Pankaj Jain — President
Too many categories which have been added up, then there is accessories business in terms of — which has been also added up. So on that total mix, you are looking at that number.
Operator
The next question is from the line of Shreya Baheti from Anand Rathi.
Shreya Baheti — Anand Rathi — Analyst
Sir, I just wanted to ask like what drove the improvement in our debtors for FY ’23, if we compare it to last year? And why is the inventory comparatively higher than last year? Like, what is the reason for it?
Hemant Jain — Joint Managing Director
[Foreign Speech] It’s a seasonal business.
Pankaj Jain — President
Just to add, okay, I’m saying, I have been able to improve on the data cycle if the inventory has gone up marginally structured. So I’m trying to maintain my working capital in the same limit.
Operator
Next question is from the line of Prerna Jhunjhunwala from Elara Capital.
Prerna Jhunjhunwala — Elara Capital — Analyst
Congratulations, sir, for a very strong set of numbers. Sir, I wanted to understand I joined late, so sorry for that. But if this question has been asked earlier, but what will drive the 17% to 18% growth plus you are saying that margin will also be strong at about 18%, 19% range. So just wanted to understand how is the competition in the market that the margin will not have to be compromised to grow the business?
Pankaj Jain — President
Thank you for asking this question. And it was not asked earlier by any of them. So you’re not repeating your question. I’m saying that this entire year, we haven’t taken a price increment as what the price as my COGS had increased, okay? So I still had that vacuum to increase my prices. But it also depends on what my competitors does. If my competitors are reducing it, I’ll have to re-strategize myself. And when I’m saying that I’ll be able to maintain my margins. I’m saying that on my top line, I’ll be able to maintain my 18% to 20% growth and my EBITDA, I will be able to maintain 18% to 20% structure also.
Prerna Jhunjhunwala — Elara Capital — Analyst
Yes, I’m still not very clear, like, for example, if we’re doing denim shirts and all these categories, then there is a competition growth also, competition is also there in this market. So are we going to newer markets? Or are we opening into area stores that it’s not — it’s underserved? Or are we going to product categories which are not very well serviced in the areas that we are servicing. I mean what is going to drive this growth?
Pankaj Jain — President
It’s a mix of all 3, what you said. I’m strengthening my position in the stronger markets. I’m going to the markets where my position has been low also. I’m entering new markets also along with it, and I’m changing the mix also.
Prerna Jhunjhunwala — Elara Capital — Analyst
Okay. Understood. Second point, you’ve done a fantastic job on receivables where your business has increased, but receivables have actually remained same. So any change in the debtors policy that you — that has been implemented?
Pankaj Jain — President
There has been no change in the debtors policy.
Operator
The next question is from the line of Pavan Kumar from RatnaTraya Capital Partners.
Pavan Kumar — RatnaTraya Capital Partners — Analyst
Sir, congratulations on a good set of results. I mean, I wanted to understand more on the shirts part of the business in the sense, what has the — what steps have you taken that I mean, we seem to have developed almost a new category which earlier was very — I mean, though we had it but was not moving that far. So what are the efforts that have been taken to actually migrate ourselves from a denim brand to a lifestyle brand. And what are the other future — other steps that are expected to be taken in that direction?
Hemant Jain — Joint Managing Director
Today is the brand is all about the lifestyle [Foreign Speech] we are more focused on the jeans wear, denim wear only. [Foreign Speech] So you’re eating somebody’s shares with your strategies with your good product and good pricing. [Foreign Speech] today is a branding. [Foreign Speech] So whole concept has changed today. [Foreign Speech]
Pavan Kumar — RatnaTraya Capital Partners — Analyst
[Foreign Speech]
Hemant Jain — Joint Managing Director
[Foreign Speech] Suppose somebody is working in denim, whose expertise is the jeans only. He cannot make a good shirt. [Foreign Speech] that is a different kind of product. So we are going to hiring the people. And we have started all that and receiving of that benefit. If you see the business of last year, the contribution of shirt is very good [Foreign Speech]
Pavan Kumar — RatnaTraya Capital Partners — Analyst
[Foreign Speech]
Hemant Jain — Joint Managing Director
All stores. Retail is all about not only a product, [Foreign Speech].
Pavan Kumar — RatnaTraya Capital Partners — Analyst
Right. [Foreign Speech]
Hemant Jain — Joint Managing Director
[Foreign Speech] Right.
Pavan Kumar — RatnaTraya Capital Partners — Analyst
Right. Thank you. Congrats for a good set of results.
Operator
The next question is from the line of Akshay Kothari from Envision Capital.
Akshay Kothari — Envision Capital — Analyst
Sir, first of all, congratulations on a good set of numbers, and it was proud moment to see Killer on the Indian Jersey. My question is recently this Reliance is getting big into these brands and of late, I had been watching this IPL and there are brands like Buda Jeans, and so earlier this aspirational value, they were not focusing on. Now what is happening is online brands and these aspirational value, fast-fashion trends are also growing. So this is on one part of it. And secondly, big players like Zudio is also expanding on the retail side. So what sort of communication signals do we get from channel partners regarding competition?
Pankaj Jain — President
There is no direct competition with the Zudio or Reliance as a partner. In fact, Reliance is a channel partner with us, okay? And that business with them has been growing on a year-on-year basis. Okay. I want to understand what exactly are you trying to ask, is there any competition from their in-house brand?
Akshay Kothari — Envision Capital — Analyst
Yes. So what has actually happened or if you watch there are ads running on the Reliance Jio platform of some company called Buda Jeans. So it’s a hustle brand. Now what actually happens is they are targeting only a segment of people, but the price range is much lower. Now we are trying to create that aspirational value without owning that manufacturing setup or overhead costs, which actually go in our setup. So they are able to offer it. So once they start creating these aspirational value and there are other fast fashion brands also, I can name so. So how do you perceive this competition coming? Because in the end, they would be gaining some market share, right?
Pankaj Jain — President
So the market is growing on an overall basis. Some percentage of market share will be taken by them also. I don’t consider — I don’t feel that, okay, that’s an exact competition to Killer jeans right now.
Operator
The next question is from the line of Ankit Babel from Subhkam Ventures.
Ankit Babel — Subhkam Ventures — Analyst
Couple of questions. Sir, this 18% to 20% growth, which you are targeting, I believe this is a pure organic growth which you are targeting, right?
Pankaj Jain — President
Yes.
Ankit Babel — Subhkam Ventures — Analyst
Okay. And do you have visibility that this kind of organic growth can continue at least for next 3, 4 years?
Hemant Jain — Joint Managing Director
So, we are not seeing 3 to 4 years [Foreign Speech]. Yes, year-on-year, next 2 years, we will grow by this percentage [Foreign Speech], the whole position is changed [Foreign Speech]. But next 2 years, I am saying, yes, 18% to 20% of growth rate. And that is what we are planning on that.
Ankit Babel — Subhkam Ventures — Analyst
Okay. And sir, which are new categories you plan to enter in the next, say, 1 or 2 years?
Hemant Jain — Joint Managing Director
We are going — comes with the ladies categories and the kids category. Still they are under working. So next year, you will see that.
Ankit Babel — Subhkam Ventures — Analyst
So within those also, I mean, like would it be bottom stocks across athleisure, innerwear?
Hemant Jain — Joint Managing Director
When we say kids, kids means all the categories which include t-shirt, shirt, trousers. All categories.
Pankaj Jain — President
So I’m adding new genders so early, which is kids wear, ladies wear as a category, so it includes all categories.
Ankit Babel — Subhkam Ventures — Analyst
Okay. And sir, next question is any channel financing options you have explored to reduce your debtor days further?
Hemant Jain — Joint Managing Director
Not yet. We are exploring that idea, but not have come to any conclusion or any result.
Ankit Babel — Subhkam Ventures — Analyst
So what headwinds you are facing in that? I mean.
Hemant Jain — Joint Managing Director
Sorry?
Ankit Babel — Subhkam Ventures — Analyst
What kind of headwinds you are facing in that — I mean…
Hemant Jain — Joint Managing Director
I’m still comparing the different, different channels, financing options, okay, as compared to my CC limits on interest percentages.
Ankit Babel — Subhkam Ventures — Analyst
Okay. And sir, my last question is that you did allude to the fact that you people are looking at some inorganic opportunities as well. And at the same time, you also mentioned that whatever you do, you’ll do through internal accruals and you don’t plan to borrow. So considering your existing cash balance, which is around INR200 crores to INR250 crores and an additional, say, about INR50 crores, INR100 crores which you might generate in the coming year. So any consumer brand in that ticket size, I mean what is your belief? Is it available? Or you plan to look at only the regional brands or some small size, which is within this INR200 crores, INR300 crores value or you can even look at bigger, say, INR500 crores to INR1,000 crores acquisition?
Pankaj Jain — President
Where I’m saying this, on the internal accrual aspect, whatever the earnings comes will be invested first on the capex as well as the working capital. That’s to whatever scenario left over or of the treasury we are exploring the idea of getting into inorganic growth on a segment if it has any operational synergies. It’s too early to comment on that as of today.
Ankit Babel — Subhkam Ventures — Analyst
No, no, sir, you didn’t get my question. Sir, my question was, sir, INR200 crores to INR300 crores [Foreign Speech]. I mean, are you looking at such small size regional brands? Or you might look at even a larger ticket size acquisition is what I’m trying to understand.
Pankaj Jain — President
Look, to the extent — okay, I’m exploring the idea of a ticket size from INR50 crores to INR250 crores is not a problem to me. Okay. But it should have an operation synergy.
Ankit Babel — Subhkam Ventures — Analyst
Of course. Of course. I’m just trying to understand the ticket size, which you’re looking at.
Hemant Jain — Joint Managing Director
[Foreign Speech] so it’s not the benchmark. [Foreign Speech] money, what’s wrong in that. If everything is fair, business should be fair and make profits. [Foreign Speech]. So I’m not thinking about the [Foreign Speech]. It all depends on the opportunity. [Foreign Speech] If I get good opportunity, I will take that opportunity. We borrow only if it is required. [Foreign Speech]. I’m not strict on that. I am open for that.
Ankit Babel — Subhkam Ventures — Analyst
Okay. So sir, from product categories point of view, I believe, other than formals in the casual where you are present in almost all categories now and with athleisure, kids wear, ladies, which are the current gaps, you’ll be — you are, I mean, launching your own products. So you’ll be present in those areas also. So which other product categories you might look at for inorganic growth?
Hemant Jain — Joint Managing Director
It’s not necessary [Foreign Speech] Now I am planning in kids, I am planning in ladies, I am planning [Foreign Speech] buy that also. So it all depends. It’s too early to say anything. [Foreign Speech] I will go for my competitor brand with them also, what’s wrong in that. [Foreign Speech] I will look into those things.
Operator
Next question is from the line of Yash Bajaj from Lucky Investment Managers.
Yash Bajaj — Lucky Investment Managers — Analyst
Yes, sorry, all my questions were answered, those regarding inorganic growth, which was answered by the previous question.
Operator
Next question is from the line of Chinmay Shah, Individual Investor.
Chinmay Shah — — Analyst
Congratulations for the good set of numbers. Sir, my first question is like, how much time cycle it takes for Kewal Kiran from buying fabric and processing the fabric to finish jeans?
Hemant Jain — Joint Managing Director
It’s around 90 days. [Indecipherable] break to convert into the garment is around 60 to 90 days.
Chinmay Shah — — Analyst
Okay. And sir, second question is that how much time it takes for the raw cotton rates fluctuation to be effective in terms of fabric to Kewal Kiran?
Pankaj Jain — President
I didn’t understand the question.
Chinmay Shah — — Analyst
Suppose raw cotton prices are fluctuating, right? So sometimes if you see the past trend, for 6 months, the prices were going up and up and up. So at that time, while buying the fabric, how much time it takes to pass on — not to pass on actually, but effective to us like [Foreign Speech]
Hemant Jain — Joint Managing Director
[Foreign Speech] it’s like a contract. [Foreign Speech] the price is already seized. [Foreign Speech] Same day it is not impact to the business.
Chinmay Shah — — Analyst
[Foreign Speech]
Hemant Jain — Joint Managing Director
[Foreign Speech] production circle is 90 days [Foreign Speech] It will take 60 days to make the [Indecipherable].
Operator
Next question is from the line of Marshal, Individual Investor.
Marshal — — Analyst
My question is regarding [Foreign Speech] So my question is that in [Foreign Speech]
Hemant Jain — Joint Managing Director
Okay. First, to answer this question. Okay, [Foreign Speech], that is one. Secondly, none of the expenses have been capitalized for next year period. And thirdly, till I got the exact revenue, okay. I don’t — I’m not giving exact numbers what exactly the spend has happened.
Marshal — — Analyst
Okay. So at the [Foreign Speech].
Hemant Jain — Joint Managing Director
All payment has done. [Foreign Speech] And the payment is already made. There is not a single paisa is balance.
Marshal — — Analyst
[Foreign Speech]
Hemant Jain — Joint Managing Director
The perception and things are 2 different things, okay, I got a good deal structure, which I took it, got it, done it. done it. That’s it, deal is finished.
Operator
As there are no further questions, I will now hand the conference over to Mr. Hemant Jain for closing comments.
Hemant Jain — Joint Managing Director
Okay. Thank you very much, everybody. I would like to once again thank all of you for joining us on this call today. We hope we have been able to answer your queries. Please feel free to reach out to our IR team for any clarification or feedback. Thank you all.
Operator
[Operator Closing Remarks]