Shoppers Stop Limited (NSE: SHOPERSTOP) Q4 2025 Earnings Call dated Apr. 30, 2025
Corporate Participants:
Unidentified Speaker
mamta Samat — Investor Relations
Kavindra Mishra — Customer Care Associate, Managing Director and Chief Executive Officer
Devang Parikh — Business Head of Intune
Analysts:
Unidentified Participant
Ankit — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q4FY25 earnings conference call of Shoppers Stop Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on a touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Mamta Samad from Dentsu Creators. Thank you. And over to you, Ms. Amit.
mamta Samat — Investor Relations
Good morning and thank you all for joining us on the ShopperStop Q4FY25 earnings conference call. Today we have with us the senior management represented by Mr. Kavinder Mishra, Customer Care Associate Managing Director and CEO Mr. Karunakaran Mohana Sundaram, Customer Care Associate Chief Financial Officer. We will begin the call with the opening remarks from the management after which we will have the forum open for the interactive Q and A session. I must remind you that the discussion in today’s earnings call may include certain forward looking statements and must be viewed therefore in conjunction with the risk that the company faces.
Please restrict your questions to the quarter performance and to strategic questions. Only housekeeping questions can be dealt with separately with the IRT. I would now request Mr. Kavindra Mishra for the opening remarks. Thank you. And over to you sir.
Kavindra Mishra — Customer Care Associate, Managing Director and Chief Executive Officer
Thank you Mamta and thank you Michelle. Hi, good morning everyone and hope you all are doing well. I have with me Karuna our cso, jp our FPNA lead and Rohit our IR lead with me. We will also have devang our intune lead at a later stage. The investor presentation is available on our corporate website and on stock exchange websites. I request you to go through the same if you’re not already done. Similar to last quarter, we have a few slides with immersive experiences on our different campaigns. I would like to begin by sharing our perspective on the operating environment during the quarter followed by our performance and the strategic objectives going forward.
The overall sentiment improved as we progressed. Despite the continuous advancement of end of season sale every year. I’m sure all you would have viewed the slides of H1 versus H2 performance of Shopperstock which we had kept at the beginning of the investor deck especially for shoppers. The secular trend of premarition remained resilient with premium products going ahead. This also indicates that consumer needs and aspirations to upgrade continue to evolve and the aspirations remain high. Let me cover this quarter’s performance with key KPI metrics. First Let me start with customer entry. There has been a steady progress in the customer entry in the last six months.
We had a margin decline of 4% in March as against 9% decline at the beginning of the year. As I speak in April we are witnessing customer entry at the same level as last year of April. Our ATV has been consistently increasing with 8% growth in quarter four. In the last two years our ATV has increased by 17% and with 8% CAGR. Similar to ATV our ASP has also increased by 4% and IPT by 4%. On the financial performance non GAAP sales increased by 4% with 3%. Like for like, our EBITDA had a marginal growth of 2%.
Our sales growth has been consistent in departmental stores and profitability trends are improving. Our new business intune had a tough January and February month due to the overall slowness in value fashion and that partly offset the profit. Otherwise we would have made this quarter on the GAAP accounts due to the large store opening particularly intune, we have additional depreciation and interest as per IAS 116 of rupees 15 crores. If you need any specific details, Karna can provide that post Mike Speech we had a marginal decline in beauty segment for the first time in last eight quarters.
This is primarily due to aggressive offers in the market on value and masteries products. We prefer full price sales with sustained profitability. We opened 21 stores which includes 15 intune stores, 5 departmental stores and 1 beauty store. For the full year we have opened 73 stores comprising of 51 intune, 9 department, 7 beauty and 5 hope stock stores. In summary, we invested rupees 52 crores for the quarter and rupees 160 crores for the full year in capex and rupees for 32 crores in deposits for the full year. For the full year we reported revenue of Rupees 5427 crores as an increase of 4% over last year.
Our Beauty reported sales of Rupees 907 crores is an increase of 2% and Private Brands reported sales of Rupees 639 crores declined by 7% versus FY24 though for Q4 it remained flat. For the full year we reported an EBITDA of rupees 183 crores, PBT of 18 crores and PAT of 23 crores. Our margins have increased in private brands helping us to achieve an overall increase in margins by 730bps in Q4 and 530bps for the full year. This is primarily due to increased minimumness, sharpness in positioning and better inventory control. In the last two quarters our departmental stores business has outperformed with improvements in customer entries and other KPIs.
I’m extremely glad to share that the largest format has managed to achieve growth in all parameters. I have been saying for last 2 3/4 that we are rationalizing costs at the like to like level. In departmental stores the costs are largely contained except marginal increase in rent. We have taken a conservative view of some of the expenses while creating tax provisions. However, both the tax audits and based on past assessments, we are sure that these expenses can be claimed as deduction and consequently we have one time favorable impact in creating deferred tax assets of rupees seven crores resulting in negative tax.
For this month I’ve covered the performance and KPIs. Let me now dwell on premarition and marketing campaigns which resulted in enormous success for FY25 especially in second half and I’m confident this will yield further improvement in overall revenue and other KPIs in FY26 too. Our first key driver for a momentous change in India’s consumer landscape is undergoing is a remarkable transformation driven by demographic changes, economic growth and evolving aspirations. The shift towards premarition reflects deep socio economic trends as consumers transition from prioritizing value for money to embasing quality, innovation and aspirational products. We at shoppers recognize this 18 months back and have constantly increased our penetration in our stores through offering to customers, changing the store image to our customers as one stop destination to purchase all the premium products from apparel to non apparel.
We approach promotion in following ways personalize campaigns that align with premium customers preferences and habits. Divers diversified the product range with new product lines in opportunity categories and improved customer journey to the premium seeking customer cross selling to increase the overall basket size and lastly adjust promotion strategies to align customer preferences. This has resulted in two significant changes for us on ASP and atb. As I spoke a few minutes back has increased significantly. I also request you to please go through the page number four and five of the Investor deck wherein we had listed the premium products listed in the last 24 months in ShopperStop.
I also want to add that there are two marketing campaigns which are extremely successful in FY25. First being India vested Shopper Stop a comprehensive initiative offering a wide range of wedding creative products and services. The campaign aims to be a one stop destination for all wedding rated shopping needs, catering to bridegrooms and guests. It includes a curated collection of wedding attire, beauty products, fragrances, gifts as well as personalized assistance through Wedding Concierge services. We enrolled 25,000 customers with an aggregate sale of rupees 106 crores in the last quarter and ATV of rupees 44,000. Gifts of love A Campaign is a selection of gifts suitable for various locations to express affection.
The campaign focuses on celebrating different types of love with a diverse range of products available online and in store including apparel, beauty, home decor and accessories. Other than this, we also collaborated with zeetv for a Shaati Mubarak show. The show, which airs on and TVNZ 5, features influencer couples and highlight shoppers stop as a go to destination for wedding shopping. The collection includes outfits and gifts and viewers are encouraged to visit shopper shop stores or online to explore the offerings. Let me talk about the capital allocation Overall for the year we had invested rupees 192 crores in fixed assets and deposits and another 126 crores in working capital primarily in our businesses of intune and beauty.
This has resulted in an increased borrowing of rupees 137 crore during the year. Increased borrowings are primarily to finance our new business Working Capital, Visa, Intune and Global ssbt. Besides a few brands which we have onboarded as shoppers. However, we are planning to reduce the working capital by rupees 100 crores and for FY26 our entire capex will be funded through internal accurate. We expect the borrowing to reduce significantly by the end of this fiscal. First Citizen Our first citizen contributed 82% with 12.3 million first customers. Our repeat customers are now 69% and it grew by 3.3% versus last year.
As you observe, the contribution from FCA customers have been consistently at 80% throughout the year. Our premium Black Card customers contributed 19% with a growth of 38%. We had the highest enrollments of First Citizen, Black Card and Silver Card during the quarter. We had several programs for our First Citizen members to engage them and have a unique customer experience. This with increased customer entry augurs well for future growth and the confidence of customers in shoppers. Personal Shoppers Our personal shoppers continue to contribute 24% of total sales with an increase of 48%. Our faith in investing in this program have yielded satisfactory results with the sales from personal shoppers exceeding thousand crores last fiscal.
As we on the journey of premarition of customer experience, we believe personal shoppers is an important asset to drive revenue and experience. Both department formats Let me talk about shopper stock. First I discussed the creation of our departmental store. Our Mallard store Post innovation has improved its productivity significantly. As I speak to you, we are engaging with number of international brands to have in our departmental stores to increase the premium quotient. Our department store for the quarter had a strong like for like growth of 3.5%. The investments made in marketing campaigns, renovations and contemporary brands continue to have positive Results such as 2/4 of Mid LFL profitable growth.
We are witnessing revival in departmental stores with increased customer entry and conversion due to our unique customer journey. A key pillar of profitable growth for FY25 and is expected to increase in FY26. As I said before, for the last two consecutive quarters this format has achieved all the KPIs beauty on a standalone basis, beauty revenue declined by 6% but at consolidated levels it has increased by 3%. At a consolidated level, our beauty sales fell at rupees 264 crores for the quarter and for the full year it was approximately 1,100 crores. We had several customer engagements, programs such as Beauty Carnival in Orbit, Mallard 10 Beauty Survey Events and beauty workshops.
In addition to that, we have increased our social media presence on YouTube, Instagram and all the relevant channels. Let me talk about Global Access Beauty, our 100% subsidiary started two years back has reported nearly 100% increase in sales this year with a sales of Rs 236 crores with EBITDA increasing by three times. We’ve added four boutique EBOs of Dawev including three for Armani and one Stouffer Prada. Besides POS counter with our retail partners, we’ve also partnered with Zepto to ensure that these products are available in shortest time and well as forever for wider distribution. Let me talk about Intune now.
We had a challenging Q4 for intune. We had high offers in general leading to lower margins. You are aware that this is the first full year of Intune and we’ll be able to do the course collection as we increase the sales. As I said before, during the quarter we opened 15 stores and plan to open another 12 stores. During this quarter. I reiterated that we are staying firm and will continue to invest in Intune. We believe that there are significant opportunities in Value Fashion as they are largely unorganized and untapped. We are fairly confident that fiscal 226 will be a stronger story.
We also and I think Devang will talk about it that how the business has grown and how the business has picked up in the last two months. Now we’ll talk about the outlook for the coming year. I firmly believe that our industry is expected to maintain the growth momentum in 25 driven by rising disposable income organization and a growing middle class. We’ll focus on premarition, focus on customer centric experiences and increasing adoption of technology, particularly artificial intelligence and automation. IMD has forecasted a good monsoon which augments growth momentum for industry. I believe from Q2 retail growth should gain further momentum.
We’ll focus on key strategic pillars such as brands, beauty and expansion. We are confident our beauty business will continue to grow and 100% subsidiary global essence Beauty will have another record year in FY26. We are planning to expand this fiscal by opening six to seven departmental stores and with market conditions improving close to 40 to 60 in tuned stores. At the operational level, we will also invest in marketing through our campaigns to drive both our short and long term strategic priorities. As our past results have been very encouraging, we are continuously rationalizing the costs and we are confident we will sustain this year as well. I will conclude with this now and take the questions from you. Thank you.
Questions and Answers:
operator
Thank you very much sir. We will now begin with a question and answer session. Anyone who wishes to ask questions may press star and on their touchstone phone. If you wish to withdraw yourself from the question queue you may press the answer. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question to assignments. The first question is from the line of Sameer Gupta from India Infoline. Please go ahead.
Unidentified Participant
Hi sir, Good morning and thanks for taking my question. Sir, I just wanted to understand on the margin bit now this year if I look at the other expenses line item it’s seen a 20% increase and this year has not been a very large year in terms of area expansion. So even if I look at overall area including INTUNE it’s up just 5%. So just wanted to understand what is the nature of these other expenses over the year and can we see a moderation going forward and some bit of color on that?
Unidentified Speaker
I think you are referring the gap numbers. I mean if you refer the non GAAP Numbers the increase is 10 percentage primarily coming on in new businesses. More than half of them is coming in tuned businesses. That’s the reason there’s an increase of expenses in their percentage. As Kavir said as the LFM level in the departmental store we are largely flat probably 1 2% increase and that is also coming from the Department of Stores can I just conclude the new businesses what we have.
Unidentified Participant
Got it sir. So just a follow up on that. So this year full year is around 3% even if I look at the non GAAP margin overall and I don’t include other income in this. So there could be some differences in our both calculations. But how do you see this going forward? Let’s say the NFL growth pickup which is contingent on overall demand. That doesn’t happen. Do you see further moderation in this number or we are good at this number at least maintaining this number even if it’s a soft year for us.
Unidentified Speaker
Sameer. It’s a very hypothetical question Sameer. We do expect a decent LFL growth this year as I said. I think again we said during the entire we have rationalized all the cost last year was a we had a good reduction in the cost and if something doesn’t come up to the expectations we will go back to the drawing board and then we will see what best we can do about that. But at the cost level we are almost flat which is last year.
Unidentified Speaker
And.
Unidentified Speaker
If you look at the first half versus second half performance.
Unidentified Speaker
Especially for.
Unidentified Speaker
The box we can really see a lot of momentum happening in terms of the like for like and the customer entry is also going in. So I think we are in a very good in the right way in which we should be.
Unidentified Participant
Got it. One last if I may squeeze in so intune I heard you have mentioned 40 to 60 store editions in FY26. Now when we started FY25 we had planned 75 plus stores. If I remember correctly we have ended up with some 50 stores. Going forward the guidance is around 40 to 60. So is it because I mean we are initial calibration we had assumed things which haven’t panned out. Are there logistical constraints in opening that many stores? Just understand wanting to understand.
Unidentified Speaker
Hi, thank you Sameer for the question. First of all, the FY25 closure was more an environment constraint. I think. You know we were all aware of the environmental limitations that were put on the NCR territory as far as construction was concerned. That set us back by 45 days which is why we ended at a few stores short of what our estimate was. Otherwise the pace continued consistently throughout the year going forward. Also the intention is now we’ve got a strong network of stores and we have our job cut out in terms of improving productivity of operating stores and incorporating our learnings on an ongoing basis.
So that’s what we are doing. While at a management level we stay committed to expanding in tune At a fast pace. I think Kavi mentioned 40 to 60 stores this year. And I think that number does not have a constraint of getting increased in the middle of the year as the outlook improves. So I think 40 to 60 is the bare minimum expectation that the management has put. There is no upper limit to how many stores we will open. I hope that addresses your concerns.
Unidentified Participant
It does, it does. Thank you so much. I’ll come back in the queue for follow ups.
operator
Thank you. We’ll take the next question from the line of Gaurav Choagani from GM Financial. Please go ahead.
Unidentified Participant
Hi sir. I hope I’m audible.
Kavindra Mishra
Yes, hi.
operator
You’re audible.
Kavindra Mishra
Yeah.
Unidentified Participant
Sir, my first question again, you know, is with regards to the margins. So by margins, I, if I put some question the other way around, hypothetically, you know, if we do achieve a mid single digit kind of SSSG for the coming year, that is FY26, what kind of a margins at least can we expect given you already work so much on cost and then the other environment also kind of picks up. So what kind of margins would you be targeting over the next couple of years?
Unidentified Speaker
We would be targeting slightly higher than mid level EBITDA margins. Again, I’m talking about non ebitda. Sorry.
Unidentified Participant
No, sure, sure, sir. And this would be largely driven by the leverage benefits, right?
Kavindra Mishra
Absolutely right. It would be primarily driven by the leverage benefits. You are spot on.
Unidentified Participant
Okay, okay, enter. My second question is with regards to Intunes, I mean I did hear in the opening remarks you mentioned that, you know, due to the higher discounting, the, the profitability in Intunes was impacted. But in general also would like to understand your perspective on the overall environment. Because if at the other value apparel retailer they have reported very strong SSD growth numbers, in fact their store editions have also remained strong over the last, the last quarter as well. So any differentiation that we see, what is the reason for the same year?
Kavindra Mishra
Thank you, Gaurav. I think, you know, if you look at the 70, 71 store network that Intune has, the majority of those stores are less than six months old. And when we try and break this down into stores which are more than a year old, more than six months old and less than six months old, there is a very clear trend line of improving productivity that we see. So I think the broader sense that you have of the value fashion retail, we are also seeing, it’s just that our network average age is a lot younger than what the mature brands have.
That is point number one. And point number two, I think pertaining to the outlook we are also equally confident of intune matching if not meeting the industry standards. I think we also echoed that in his initial comments.
Unidentified Participant
So you know, given that by next year good chunk of your stores will be completing a year and you know, given the overall momentum that we are seeing in the value fashion, there is a high expectation of at least high single digit to low double digit kind of an ssd. Would you echo with that sentiment or it would be any different for you?
Kavindra Mishra
So we would, I think, you know, that’s what we are seeing also I think, you know, as we age the LFL growth will become more and more relevant for us and we are seeing the trend of older stores becoming much better as they age. So I think I echo that sentiment wholeheartedly.
Unidentified Speaker
Okay.
Unidentified Participant
And just lastly again on intims, if you can throw out, you know what kind of revenue per square feet numbers you would be clocking in stores at least which are six years or six months or older.
Unidentified Speaker
So older stores gaurav are north of 10,000 SPS on an annualized run rate.
Unidentified Participant
Okay.
Unidentified Speaker
Okay.
Unidentified Participant
Thank you so much. That’s all for me.
operator
Thank you. We’ll take the next question from the line of Ankit K dia from Philip Capital. Please go ahead.
Ankit
Hi, my first question is on the departmental store opening. You know initially last year we guided for 12 to 15 store opening. We ended with nine stores and we closed nine stores. Now FY26 we are guiding six gross store opening and I’m assuming there will be two, three more store closures. So again we will be ending up at 3 or 4 store opening which is less than 4% of AVI addition. And on that, if you are talking of 4, 5% SSG growth, the growth in departmental stores will be single digit. Is that a good understanding? Despite premiumizing, you know footfalls are still weak and ATVs are increasing.
KPIs are doing better but the growth is going to be single digit in departmental store.
Kavindra Mishra
Yes, I think ankit see as we mentioned the KPIs are all looking good. My sense is that the customer entries have made a big U turn. So from where we were at the start of the year we have actually turned it completely around. And April as we speak would be 0% or little bit in positive in terms of number of opening of stores. We are guiding a fixed. We are always open to any opportunistic thing. But I think we just want to be very careful that the departmental store business for us is a profitable growth channel.
So while we are investing aggressively in beauty and intune the profit should be thrown by the departmental store. So I am not worried on that extent. Also what we are trying to do is and as we speak most of our bulk of our store purchases has already been done. So you will see the positive impact of that coming in the profitability as well. So I think the right way and if some great store comes in because we also, because departmental stores being departmental stores and big projects, we are also at times hampered by the availability of the right location, right mall.
So I think fundamentally because this piece is doing well, we are not limiting it but the visibility right now in terms of what we can open for sure.
Ankit
Is this just a follow up on that? If I look at west side, they open 40 stores which are average incremental store size of 30,000 square feet. So what is the difference between their stores and our store and why are they getting availability? Is the rental difference or we are looking only at malls and they are looking at high street locations and we are adverse for going to high street given that we want capital footfalls of the mall or is it a balance sheet strength where we don’t want to take, you know, debt and grow and only some internal and hence we are opening single digit stores.
Kavindra Mishra
I think it’s an amazing question ankit but 2, 3 parts of it once the nature of the product which they sell versus us is very different. The price point at which we, which we operate and buy the set is very different. So the catchments are very different, number one. Number two, we would prefer to open in the malls because I think that’s something where we get the captive footfalls and I think that’s a very positive for us. And third, I think most importantly, as I said, Shoppers is a profitable growth business and we will obviously look at the balance sheets and say that we want to grow through internal accruals and reduce our debt.
I think that’s a clear, clear plan which we have for this year and we would like to work on that.
Ankit
Sure. My next question is for Devan Devang. Within the half, you know, one and a half year operation we have closed some intune stores as well. What is the learning which we have in last one and a half years on these store closures which type of stores are working for us? You know, be it malls, high street, prior to metros and incrementally where is the addition coming? Because in 71 stores we already in 30 cities so we have a good knowledge of Pan India presence where we are. So where will we incrementally add new stores?
Devang Parikh
Thanks. Ankit. Ankit. The learnings, as you said, are very clear and deep. So I think what we’ve seen is one good part for us is north, west and south, all the three regions where we have a strong presence. We are equally doing well in each region. So it doesn’t come across as that a region is very good or very bad for us. That’s a good starting point. Secondly, we’ve seen that malls tend to be a lot better than high speed or standalone stores. For us the gestation period is lower. So I think we consciously tried to over index malls.
That’s the second point. The third point is on learnings around the store closure. So I think all the three store closures that we’ve had were predominantly catchments where organic walk inflow was very, very low. And even though internal efficiencies were significantly better than the average efficiencies that intune stores have, the cost benefit analysis of pumping in money to get bare minimum number of walk ins was just not making sense. So I think going forward also we will be ruthless about where we don’t see the light at the end of the tunnel in terms of organic flow of walk in.
We will take hard calls. So these were the overall learnings. I hope this addresses some of your questions.
Ankit
Sure.
Ankit
And just the last one, if I may, on inventory, how is the inventory in tune? Typically we are working on how many terms at the store level and you know, from a supply chain perspective, you know, from, you know, because some of the other retailers are, you know, having weekly drops, they turns out, you know, more than one a month. So just wanted to understand that on intune, how is that moving?
Devang Parikh
Yeah, so I think, you know, from the very beginning what we used as a guidance is a six week cover in the stores. And barring some blips on overall demand, up and down, that guidance still holds on as far as, you know, freshness. I mean as far as the movement of terms is concerned. I think we’ve also mentioned the deck that we started doing weekly fashion drops and I think that’s something that this format needs to do. And we are seeing a significant improvement in the initial throughput of new launches now that we’ve got the cadence of weekly fashion in.
So I think six weeks at a store level is the guidance. We are more or less there unless there’s a bad month where on virtue of a lower sale the COVID shoots up. But in absolute terms, this inventory at the store is pretty much what we intended for it to be from the beginning.
Ankit
Thank you thank you so much and all the best.
operator
Thank you. We’ll take the next question from the line of Varun Singh from Alpha Accurate Advisors. Please go ahead.
Unidentified Participant
Am I audible?
operator
Yes Mrs. Singh, please proceed as a.
Unidentified Participant
Thanks for the opportunity. So my question is on intune. I just wanted to understand, you know, maybe the similarities between our format and purely from the operations and supply chain perspective with regards to. With regards to how we are handling the inventory and even maybe the dead inventory or slow moving inventory. How. I mean what are the similarities between us and video? If you can highlight that. That’s my first question.
Devang Parikh
Thank you Varun. I think we are the first similarities regarding the broadly the same space of value fashion. So all aspects of the business which come on virtue of being in the value fashion space apply to us. Fast fashion, frequent drops, obsolescence on account of age, low margins, high volume, all of those factors are common. Right. On your question on how the net inventory is managed. So we do two end of season sales, one in Jan and one in July. So the intention is to pull that merchandise once it’s past its full size time, hold it in our warehouses and relaunch it in the USA cycles to liquidate as best as possible within the brand promises at the back.
Yeah, yeah, sure.
Unidentified Participant
So basically we are pulling out the inventory to back in the warehouse and then we would be getting all those to the stores and then would be discounting with that understanding.
Devang Parikh
Yes, cut sizes will get pulled back so that we can make space for new launches during the full price period. Exactly. That’s the correct understanding.
Unidentified Participant
All right, sure. And with regards to integral supply chain integration with our existing like shopper Stop store, will it be different for intune or will it be integrated for both departmental store and intune?
Devang Parikh
So we are using the same warehousing and logistics infrastructure that shopperstop as a company has and we are fully leveraging that. It is giving us a lot of benefit because there is an existing system in place and cadence is already in place when it comes to to the external part of the supply chain which is the supplier base and the inbound that is almost entirely unique from shop stock because the price point for the product is very different to the supplier base but internal infrastructure is 100%.
Unidentified Participant
And lastly on the 71 pound of ST that we have received like roughly 1 percentage of that the would be mall index stores compared to. And what would be that number for video?
Unidentified Speaker
Okay, will not compute.
Devang Parikh
I don’t think I would know the Zodia number But for us 60% is more than 40% is high street or standalone.
Unidentified Participant
Okay, sure sir. All right, enter. Like during on 15th of Jan25 we spoke about 11,000 rupees per square feet for a matured store in case of intune. And in this call we called out around 10,000 rupees revenue per square feet. But I think that 10 to 11,000 that number stays intact, right?
Devang Parikh
Yes, I said it’s upward of 10,000 and I think we mentioned that we had a month of poor demand which is what pulled the average down. But I think we are on the March and April, I mean month on month we are becoming better.
Unidentified Participant
Okay.
Unidentified Participant
And like from 10, 11,000 to 14, 15,000 that journey is quite possible, right?
Unidentified Participant
It is possible.
Unidentified Participant
How comfortable would be you’ll be.
Kavindra Mishra
Yeah, it is very much possible.
Devang Parikh
And the 11,000, the 10 to 11,000 is an average. We’ve already seen that journey happen in a part of a mature store network. So that is something that we’ve already seen seen and we know the route to taking the other stores also on that direction.
Unidentified Participant
All right sir, so thank you very much and wish you all the best.
Devang Parikh
Thank you.
Kavindra Mishra
Thank you.
operator
Thank you. A reminder to all the participants that you may please press star and one to ask questions. The next question is from the line of Jay Prakash, a retail investor. Please go ahead.
Unidentified Participant
Hello, can you hear me?
Kavindra Mishra
Yes, we can hear you. Go ahead.
Unidentified Participant
Good afternoon. Good morning sir.
Kavindra Mishra
Good morning.
Unidentified Participant
Compared to last year, year on year the profit has been almost down to more than 95%. Despite showing your top line growth or top line is fat, you have happened many in stores and department stores also. How would you expect the focus of the next six months?
Kavindra Mishra
Hey Pratash, thanks for your question. At the EBITDA level if you have seen it on the non GAAP numbers it’s down by 19 percentage. And we have also given H1 and H2 slide. At the beginning of the investor day. Kavi spoke in the last two quarters that hedge fund, I mean the quarter one and quarter two because of number of reasons we had elections overall the sentiments were low and that’s the reason the overall EBITDA had declined versus last year. But if you have seen in the second quarter our second half, I’m sorry, our EBITDA has increased by 16 percentage.
Even at the non cap level the PBT has increased by 10 percentage. So the sentiments are improving, the customer demand has been improving and we believe with this the this year we would have a decent growth on all the KPA’s that is sales, EBITDA and profit.
Unidentified Participant
Next six months. I mean next two quarters going to be uteron because again after festival seasonal comes in the October Only after seeing last year performance have you found any new strategies or anything that going to attract the customers new customers to visit your increase the footprints. Is there anything on your table?
Kavindra Mishra
Mr. Jayaprakash? So this is Kavi here. So we spoke about building the marketing campaign the India Method Shopper Stop Gifts of Lux. The idea is that create and we’ve been working on this for the last 18 months to create shopperstop as a destination which is for a specific kind of customer which you want to drive in. I think we have been seeing some very good results of this over the last six months or so. Even April looks good and strong. So my sense is that the action points in terms of driving traffic to the stores in terms of creating differentiation through different kind of brands and products and through our personal shopper we have been able to get higher KPIs getting delivered.
So I think we are in a good. We are in a very good space right now in the department in store business and we expect H1 to be far better than what was it last fiscal and H2 continues. So I think they’re quite confident.
Unidentified Participant
How about the borrowing? Sir, can you show some light on your borrowings in year on year basis borrowing?
Devang Parikh
Yeah, again with the. See if you have seen last year we have increased the working capital because of two new businesses plus some of the brands we had in our store stores because of premiumization this year we have taken a conscious call one to reduce the inventory and that should reduce our total overall total borrowings. And plus even the new stores we have taken six to seven stores. So that will be primarily funded from internal approvals. So to answer your question, we do expect our borrowings to come down significantly this year.
Unidentified Participant
The ongoing impact on your.
operator
Mr. J. Prakash, I’m sorry to interview Sir, I would request you to rejoin the queue for follow up questions. There are others waiting for that. Thank you sir. We’ll take the next question from the line of Pedra Shah from EV Park. Please go ahead.
Unidentified Participant
Hi.
Unidentified Participant
Thanks for the opportunity. So we are picking up from multiple sources in consumption basket especially in this case study that southern India and western India are kind of lagging behind especially the urban markets on the rival side. So any such regional nuances that you can share from your members.
Kavindra Mishra
Good morning Tejas. Yeah, so I think when we look at the region wise concentration of demand. So what we are seeing is that north, west and east continue to be strong. We do See some pockets of slowness in south, especially in the Andhra Telangana market. But otherwise Karnataka continues to be strong. We don’t have much of distribution in Tamil Nadu so we won’t be able to give you a detailed view of that. But my sense is that except the market which I just mentioned, demand continues to be strong and we are very happy that north actually has really picked up which was slow for the last two to three years.
And I think we can see some very good growth coming out from there. And so in east as well, west continues to be steady for us.
Unidentified Participant
Last question is on intune. So 60% of our intune density is actually in mall index. So mathematically if we do the math with 30, 35% range of gross margin which usually value retailers want to operate at most of them, not all. Most of them say that high street or very expensive high streeter malls are not designed for that kind of construct. Unless you hit that $15,000 per square feet. Sorry, 15,000 rupees per square feet kind of number. So just wanted to know with 10,000, 11,000 are those mall resident stores profitable or they are margin diluted for us?
Devang Parikh
Thank you for the question Tejas. Two things I think I also mentioned some time back that mall stores have done significantly better for us. So the number that we’ve quoted is the average across mall and high street stores for stores which are more than a year old within this mall stores are better than the high street stores. So that answers part of your question. Secondly, I think you know, if you see the selection of malls, selection of sites within the malls, I think you will appreciate that, you know, we’ve been very consciously frugal about, you know, making sure that there is affordability correlation in place.
Which is also one of the reasons why you know, we are now after 70, 75 stores. We are slowing down to make sure we continue getting the right properties. So I think mall stores not only are more profitable, not only are they generating more sales, they are also generating more profits for us. And that’s the direction that we see for an overall improvement in productivity. I hope that answers your question.
Unidentified Participant
Yes it does. Thanks and all the best for coming quarters.
Devang Parikh
Thank you.
operator
Thank you. The next question is from the line of Swati Madnani from Madhwani Wealth Solutions llp. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Sir, my question is on the duty side, is there any criteria for selecting the brand? So what is going to be the strategy going ahead?
Kavindra Mishra
Thanks. My understanding is that this is more for the distribution business which you are Asking us about is that.
Unidentified Participant
Yes, yes.
Kavindra Mishra
So I think in distribution we work across all levels. So we have the L’Oreal or the NID brands with us. So we have the exclusive partnership with Armani. We have something very amazing going with Prada and Valentino. But we also have, for example, we spoke about, we just launched Note. We, we have just launched Messi. So as a genuine distributor, we work across price points and categories to ensure that we are able to deliver the best of the distribution channels. Right. So in the sense that the distribution for Armani would be very different from that of Note and Messi.
But that way we are agnostic. I think wherever we field through our channels that there is a demand for the customer. As a distributor, we try to cover those things. I think there’s a specialist team which sits here and works on this. So whether it’s a marquee or prestige, we operate across both the segments.
Unidentified Participant
Okay, that answers my question.
Kavindra Mishra
Categories, we do makeup, we do skin and we do fragrances across categories.
Unidentified Participant
Actually my question on the criteria for selecting these brands.
Kavindra Mishra
The criteria is the brand equity, brand awareness, the kind of revenue they can generate for us Margins, I think which any distributor would do for any business. Right. The availability of the brand to be distributed widely is one of the key things for its reference for its target customer.
Unidentified Participant
Okay, and after covering majority of these brands then what is going to be your strategy? Sorry, let’s say on the SS beauty stores. So when you cover majority of these brands, what is going to be your strategy going ahead? Like is it going to be store expansions about.
Kavindra Mishra
So I’m not clear on your question. Swati, I thought your initial question was on the distribution.
Unidentified Participant
Yes, it was.
Unidentified Speaker
We have three large brands and we are increasing the brands because that’s the way the distribution business is conducted. Second one, if you’re saying what is the question on SS beauty stores, are you saying that these products would be available on accessibility stores? Are you asking that question?
Unidentified Participant
No, no, no.
Unidentified Participant
I’m just asking that. Let’s say when you cover majority of these brands, you know, premium branding set, then what is going to be your strategy after covering these.
Kavindra Mishra
Oh, okay. No, there are so many. I think there are lots of brands which it will take some time for us to onboard the new brand B, ensuring that we are able to distribute them to the right potential, which is there. I think the market size is something which is huge. And for the existing brands you build the depth in distribution and then for the, and then you keep on getting newer brands. I think the Journey just started. Swati. I can’t imagine that so early we are going to be in this. We will go to fluctuation point x1 also.
This business for us as a company generates very healthy roc. So we’ll continue to expand this business.
Unidentified Participant
Okay, thank you. Best of luck sir. Thank you.
operator
Thank you. The next question is from the line of Yash Bajaj from Lucky investment managers. Please go ahead.
Unidentified Participant
Yes, good morning and thanks for the opportunity. Am I audible?
Kavindra Mishra
Yes, yes you are audible.
Unidentified Participant
So I had a question regarding Intune. I just wanted to understand the pricing range of intune and I also wanted to understand in terms of any. Not currently because it’s a 11 and a half, 11 and a half year old concept but just trying to understand for the future. Any thoughts regarding the pricing strategy? How would you. If you would like to have any price hike, how would you go about it? That’s my first question.
Devang Parikh
Thank you Yash. Let me first address the first part of the question. So like a lot of other players in the value fashion space, we are our products average around 400 to 450 rupees. We start from as low as 149 and we end everything at 999. That’s the pricing structure that we followed from day one. We stuck to it and to our. The second part of the question as of now there is no strategic clarity of or intention of increasing prices. I think you know, we just started this journey and we will build more on this before we deviate from it if at all we do.
Unidentified Participant
Okay, got it. And just a follow up on that. So I mean like the previous participant was just talking about it being a 30, 35% gross margin kind of a concept. Again, is this how we are seeing it today or Intune as a concept has the wings to, you know, kind of go to a higher gross margin than the current one. I mean suppose three, four years down the line.
Devang Parikh
I think as a business matures the route has to be margin improvement. Of course I think the margin improvement will be on both counts. One, as our volumes increase we will start getting some supply leverage which will give us a better cost. You’ve seen this happen in the bigger older value fashion brands in the industry. And second is, you know, as we get closer and closer to what our customer wants in terms of prediction we will start getting better full price sell throughs. So you know, we’ve got improvement of full size, we’ve got cost benefit for our going from five 10 stores to 70 stores.
And I think that journey will Continue. So we should see improvement in the delivered margin to a few hundred basis points over the next two, three years.
Devang Parikh
For sure.
Devang Parikh
That’s the intention.
Unidentified Participant
Understood. And one last question is like you unmuted that the mall stores are doing better than the high street stores and the mix today is 60 40. Do you see this mix changing more towards the mall stores going forward or this mix is more or less going to be the same?
Devang Parikh
I think in the immediate future. I don’t see this mix changing dramatically. So it should be that same space in the immediate future.
Unidentified Participant
Okay. Okay. Got it. Yes. That’s all. Thank you so much. Thank you.
operator
Thank you. Participants, you may please press Star and one to ask questions at this time. The next question is from the line of Gaurav Choagani from GM Financials. Please go ahead.
Unidentified Participant
So just one clarification that I required. The end of the season sales that we drive, you know, in Q2 and Q4 are provisioning also taken stocks during provisioning is a regular function and taken every quarter.
Kavindra Mishra
You are spot on, Gaurav. Thanks for that question. On our own brands we take provision once a quarter and for, I mean other brands we take once in six months.
Kavindra Mishra
Sure.
Unidentified Participant
Thank you.
operator
Thank you. The next question is from the line of Rajiv Bharti from Nuvama. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity.
Kavindra Mishra
On intu I missed if you have the elephant number for the quarter.
Devang Parikh
Sorry. Intunus just started the business. I mean last year we had 22 stores and this year we have close to 75 stores. So at this expansion it would be bit difficult to to calculate the lfl. So we, I mean consciously we did not say any LFL for intune. Right now let’s have a. What do you call one, one full cycle of close to 70 to 80 stores and then we can measure that.
Devang Parikh
Sure.
Unidentified Participant
And the point is the three closures.
Devang Parikh
Which you had, what was the clocking at which you. Rajiv, getting into individual stores? SPSs may not be feasible. But I think I just mentioned a few minutes back, like all these three stores, we were significantly behind in terms of the organic flow of customer entry.
Kavindra Mishra
That we were expecting.
Devang Parikh
And therefore obviously the sales were far lower than what we were expecting which led us to close. We did not see the gap being bridged through our marketing efforts. You know, so significant underachievement is where I could put it without giving a.
Unidentified Participant
Specific number to you.
Kavindra Mishra
Thank you.
mamta Samat
Thanks, Rajit.
Devang Parikh
Thank you.
operator
Thank you. We will conclude the Q and A session now. Thank you members of the management, on behalf of Shopistop limited. Thank you for joining us. And you may now disconnect your lines. Thank you.