Vedant Fashions Ltd (NSE: MANYAVAR) Q3 2025 Earnings Call dated Jan. 31, 2025
Corporate Participants:
Rahul Murarka — Chief Financial Officer
Vedant Modi — Chief Revenue Officer
Analysts:
Sameer Gupta — Analyst
Tejas Shah — Analyst
Gaurav Jogani — Analyst
Anand Shah — Analyst
Devanshu Bansal — Analyst
Rishi Mody — Analyst
Sheela Rathi — Analyst
Akhil Parekh — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 FY ’25 Earnings Conference Call of Fashions hosted by IIFL Securities 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 Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Samir Gupta from IIFL Securities Limited. Thank you, and over to you, sir.
Sameer Gupta — Analyst
Hi, good evening, everyone, and thanks for joining the 3rd-quarter conference call of Vidant Fashions. We have from the senior management, Mr Rahul Murarka, the CFO; and Mr Vidant Modi, the Chief Revenue Officer. Officer without taking more time, let me ask Mr Rahul jee to start the conference call. Over to you, sir.
Rahul Murarka — Chief Financial Officer
Thank you. Namaskar and good afternoon, everyone. I would like to start the conference with the key highlight performance matrices for the quarter and half year ended 31st December 2024. Starting from Q3 FY ’25 performance update, revenue from operation during the period was around INR511 crores with a growth of 7.8% over Q3 of FY ’24. The company continues to report industry-leading gross margin of 67.3% and healthy EBITDA margin of 47.4%. The company reported best-in-class PAT margin of around 30.9% and the profit-after-tax stood at around INR158 crores. Sale of our customer during the quarter was around INR709 crores with a growth of around 9% over Q3 of FY ’24. The company also achieved SSG growth of around 2.6% over Q3 FY ’24. During Q3, we witnessed strong recovery in Tier-2, Tier-3 cities.
Now coming to nine months FY ’25 performance update. The company reported revenue from operation of around INR1,019 crores with a growth of around 1.5%. Sale of our customer during the period was around INR1,372 crores with a growth of around 2.3%. The company continued to report industry-leading gross margin of around 67.5% and a healthy EBITDA margin of around 47%. The EBITDA during the period stood at around INR479 crore. The company also reported healthy PAT margin of 28.2% and the profit-after-tax stood at around INR287 crores. Our YTD performance got majorly impacted because of very exceptional Q1 being a non-wedding quarter, coupled up with challenging marketing market conditions. However, the company has been able to achieve healthy profitability metrics along with positive retail KPIs.
Thank you and. Now I would request Viral to please give it.
Vedant Modi — Chief Revenue Officer
Thank you and a good afternoon and warm welcome to all the participants In this quarter we expanded our retail footprint by adding approximately 50,000 square feet of net retail area. As of December 2024, Vedant Fashion’s EBO area stands at 1.75 million square feet spanning across 666 stores in 255 cities and towns globally.
The national EBO footprint tally is 650 stores spread across 243 cities and towns. We also added two exclusive Pwame VBOs in this quarter. Sales of our customers for the quarter ended 31st December 2024 was Rupees 7,088 Million which grew by approximately 9% over Q3FY24. We also recorded SSG growth of about 2.6% in the third quarter of FY25 as compared to the third quarter of FY24. We also received satisfying response for our new celebrationware offering Divas.
During this quarter we witnessed good recovery in tier 2 and tier 3 cities. During nine months FY25 sale of our customer was about 13722 million rupees which grew by approximately 2.3% over nine months of financial year 24. The subdued performance in nine months of FY25 was largely attributed to Q1 of FY25 being in one of exceptional quarter with extremely low and negligible wedding dates. Nationally. Even during the nine month period, all our retail KPIs were positive reflecting healthy business dynamics.
During the quarter, we strategically ramped up our marketing initiatives across multiple channels and across brands thereby further solidifying our brand positioning and appealing. As a customer centric brand, we are always focused on enriching the customer journey. In line with this, we partnered with India’s leading quick commerce platforms to deliver our Indianwear offerings instantly, thereby combining tradition with modern convenience. We also executed dedicated marketing campaigns on these platforms to build the category. Moreover, we also scaled up campaigns across all our brands to drive greater consideration. Our flagship brand campaign AAP Ka Band Rahe Hai Mandevar was successfully broadcasted across various platforms, thereby reinforcing brand recall of being synonymous to the wedding category.
Similarly, the enhanced focus on Mohey’s new campaign Jabab Tayar Hum Tayar gained widespread recognition thereby also reflecting in brand’s performance during the quarter. These campaigns resonated with both brides and grooms along with their bridal and groom squad, capturing the emotions and transformations they experience on this journey. We also leveraged brand building for Tuamev with new campaigns that embody the sense of being truly you.
Additionally, the introduction of new offerings for Divas, our latest celebration web brand combined with fresh campaigns has already led to increased visibility and acceptance. Collectively, these campaigns across our brands are paving the way for next phase in evolution and growth. As we look ahead, we are confident that we are structurally well positioned for continued growth.
With top tier inventory and designs, an excellent network of stores, world class auto replenishment systems along with a strong back end infrastructure. These factors will enable us to thrive as market conditions improve in the coming period.
With this, I would like to open the call for Q and A.
Questions and Answers:
Operator
Thank you very much ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Tejas Shah from Amendus Park Institutional Equities. Please go ahead.
Tejas Shah
Hi Vedant. Hi Raulji. Thanks for the opportunity. Vedant, despite festival wedding dealings that we would have thought initially, the quarter didn’t materialize as we would have anticipated. So between consumer behavior, macro pressure, competitive landscape and perhaps any internal execution gaps, how would you kind of segregate the headwinds here?
Vedant Modi
Thank you for this question. You know, I think we have been really retrospecting what we can do better and I think especially with the last couple of quarters, we didn’t leave any stones unturned when it came to this Q3 be it from the most aggressive marketing quarter for us in the history of the company or be it adding new collections according to regional taste and demands at varied price points.
So for example, we did different collections for Patna which required different taste. We added different products for our regions in AP and Telangana. So everything which we could have done as a company which we understood we need to do, I think we were really focused on try to implement the second part. You know, sort of being competition like we’ve been mentioning. We have about odd 400 stores where there is no competition next to it and we have about 250, 260 stores where there’s competition next to it. We don’t see change in performance in either of these sort of fleets. In fact, if you look at it from a longer term two year period, the 250 stores would have actually done slightly better off than the remaining sort of the stores that we have which don’t even have competition next to them. And given the moats of the brand, we don’t feel that competition per se has played a big role. But yes, we do feel at a macro level there are some headwinds where the middle class is definitely sort of not back at the level of consumption when it comes to a paddle as they used to be.
And so that definitely remains to be one of the strong cases. Even one thing which I would like to highlight that we operate across India. However, APN Telangana as a region is one of our strongest areas in terms of penetration and also the exposure we have to those two states. I think our performance in those two states particularly was pretty weak versus the rest of India doing pretty well in comparison to what was happening in those two states. So again those two states have been a little bit of a laggard compared to the rest of the country.
Tejas Shah
Any reason for that?
Vedant Modi
To be very honest with you, what we understand again there is some macro reason that is affecting the sales in AP Telangana. When we even try to cross check data of any other brand we see similar trends. However, versus other retailers our exposure definitely is much higher in those two states. So while there is no key answer that we are receiving, it seems to be something a little more macro which we are trying to, you know, sort of figure out and understand the strategy how we can get business back to a decent level.
Tejas Shah
Got it. Second, Veerant expansion plan or expansion so far has been tracking behind what we had initially kind of penciled in. And given the current SSG scenario, how are you managing franchise expectations? Are you fearing that after seeing two years of successive pressure on SSG there will be some disappointments from their side also on payback period? And there could be, even if we expand on gross basis, perhaps on net basis, we won’t see that kind of footprint expansion.
Vedant Modi
So I think, you know, sort of, I’ll take this in two parts when it comes to footprint expansion. Like we had mentioned in the previous two quarters as well this year we’ve sort of streamlined our overall store fleet and overall closures have been relatively higher compared to previous years. So at a gross level we will be doing a decent amount of opening close to about 171 80,000 square feet which is, you know, what we’ve been focusing on for the entire financial year.
So from a gross perspective, we are on track. And yes, I completely agree that there is a certain sense of slowness both overall for this year in terms of openings. And you know, the core reason for this is the rental inflation that we’ve seen. So we feel that any lease that we sign is a 9 to 12 year bet. And we want to ensure that all these stores that we open are correct stores and at the correct price. So instead of being aggressive at this moment, we definitely feel that these prices will stable with time. And once that moment arises, that’s when we want to be aggressive again in terms of openings. So that’s when it comes to the openings piece.
And the second when it comes to SSG and overall partners, I think majority of our partners have been associated with us for long term. So they understand the dynamics of this business. And a lot of our partners also operate different versions of retail. So they also understand what is happening in the different brands and markets. So I think given the kind of visibility that they have in the market, I think people are still decently happy with the kind of performance and payback they are getting. They might not be as high as they used to be, but they are still best in class when it comes to comparison with any other brand that offers this in the market. So I think that moat still exists and people are still very comfortable in expanding with us.
Tejas Shah
Understood. Last one, would there be any guidance you would have been in position to give guidance on expansion for next year?
Vedant Modi
Again, it’s a very tricky question. I think the goal from a next year perspective is to have good amount of opening. However, that really depends on how the rental market plays out. If things stable earlier than we anticipate, then we will definitely try to open more stores. However, if the rentals remain at similar levels, then it is difficult to comment on the scale at which we will be opening stores next year. However, from a longer term aspect, when things do stabilize, I think that’s from a long term perspective, definitely we should have stable store openings. So our pipeline for example, is still pretty strong. We know the locations where we want to open the stores is just signing them right now just feels not the right time. At a large level, however, there are still certain markets where the price that we’re getting is decent and we feel comfortable. So we will continue to open those stores.
Tejas Shah
Got it. Thanks and all the best for coming quarters.
Vedant Modi
Thank you very much.
Operator
Thank you. The next question is from the line of Gaurav Jogani from JM Financial. Please go ahead.
Gaurav Jogani
Thank you for Taking my question, my question is with regards to Mohi, you know, while you understand that the broader performance has been. If you can highlight how the brand Mohe has performed and where are we on this journey of, you know, taking Mohe ahead as a brand and a separate video for the same.
Vedant Modi
Thank you for your question. Overall, I think Mohi is one brand which we’ve been very happy with. In terms of its overall performance. It grew significantly in terms of Delta 2 company level averages. So the traction has been very positive. The newer categories that we’ve been focusing on, such as suits and skirt top lehengas along with sarees, have shown tremendous growth and opportunity to us. So I think Mohi has been a very exciting sort of figures for us in this quarter as well. With productivity levels now rising tremendously, we are very confident about this brand.
On top of all of these sort of points, I think the marketing campaign also worked, which we did this quarter, and we’ve seen pretty good footfalls coming from Mohi as well. So all in all, Mohi is doing pretty well. Great Delta. In terms of the company’s performance, what we feel is we will continue to open more and more Mohe doors, giving more emphasis to Mohe in each of the stores that we open. While the one flagship Mohi Evo we’ve opened has shown decent performance, we have two, three more stores in the pipeline. And while those open, we still feel that the total growth that the Manevar Mohe concept has been doing in itself is quite high.
Gaurav Jogani
Sure. So, for example, not the exact numbers, if you can give us some, some percentages, you know, so maybe Mohi was contributing, say to a Manevar more stores in 2025 SI, at least in terms of productivity, that is. So is it now 50, 50 at par? How is it any, any sense that you make that?
Vedant Modi
So rather, you know, Gaurav here, what happens is that typically I would say Mohe gets 25 to 30% of the retail area in one of our stores. Wherever we have Mohe earlier it used to achieve close to 70% of Mandavar’s productivity within that area. But now what we are witnessing with all the new stores and even the older stores, we have reached almost Manavar’s productivity. So if it has 25 to 30% area, then it’s also doing 25 to 30% of the business. That’s the case with majority of the stores. Now. Everything new which we are doing is mostly this and a lot of the older stores have also reached this mark.
So it’s closer to Many of it’s still not there, but it’s, it’s much closer to maneuver now in the same stores.
Gaurav Jogani
Sure. And Veer, my second and last question is with regards to the, you know, the competitive intensity that you said, you know, it’s largely remaining the same and even it seems from your comments that the competitors are also struggling. So would it be a fair understanding to say that, you know, the overall ethnic market also would have not grown at the same pace and the slowness of the market is what is actually impacting the growth for you and for the entire category and what can be done, you know, to revive the category growth from your end, you being a leader in the market?
Vedant Modi
This is a very interesting question. So I think, yes, qualitatively what we understand from the market is that, you know, while last couple of years there have been a lot of competition brands that have opened a lot of stores, there hasn’t been brands that have really excited us in terms of the kind of numbers that we’ve seen, what the competition is sort of bringing on the table. And at the same time, this year has been difficult across the market. The MBOs we speak to across retailers. So while there is definitely some sense of slowness, we also feel that this is also the case with overall mid premium discretionary spends. I think the problem or the macro headwind seems to be a little larger in nature rather than it being something limited to men’s ethnic or celebration wear industry.
Gaurav Jogani
If I infer it right, it is largely due to the macro situation that you’re alluding this to rather than, you know, any category issue as such. If I’m understanding it right.
Vedant Modi
Correct, you know, if I, if I talk to you more from a sense of what we see, every wedding that we see now compared to earlier, we feel that the consumption of Indian wear is definitely growing from a longer term or mid term perspective. So we feel that the category will absolutely grow from a mid to long term perspective as India becomes more aspirational, as we have more discretionary income to spend with the influence of Bollywood and the influence of overall wedding that we want to have, we definitely don’t see any challenges in terms of the increase in consumption of men’s celebration wear. However, the last couple of quarters, we definitely see some sense of slowness and majorly on account of overall discretionary slowdown.
Gaurav Jogani
So lastly, lastly, just, you know, one question here that, you know, given that you still have some scale and you have been able to expand in a profitable manner and that is what is keeping you Afloat, but there are competition, you know, who are running this business into deep losses. So. And you know, sustaining the business in such difficult times becomes all the more difficult. So do you see further consolidation from other players which possibly could play into your hands in the future?
Vedant Modi
It’s a very difficult question to answer because I think that would depend on their strategy. But yes, I mean, I think we definitely do see pain in a lot of players that operate in the market. But what they will do is something which I will be unable to answer.
Gaurav Jogani
Sure. Thank you for answering my question. That’s it.
Vedant Modi
Thank you.
Operator
Thank you. The next question is from the line of Sameer Gupta from IFL Securities Ltd. Please go ahead.
Sameer Gupta
Hi. And thanks for taking my question. Sir. Firstly again, dwelling a little bit deeper into this macro consumption thing. So sir, I mean weddings is a category where typically people will still spend. I mean they might spend lesser but you still expect them to spend. So just wanting to understand from you the reasons behind this subpar sssg. Like are people down trading towards lesser known brands, more regional brands, they are going back to unorganized or is it more like you’ve opened stores in the vicinity well, now there is a cannibalization impact. So just trying to understand this aspect, sir.
Vedant Modi
Thank you for your question. So you know, when, when I think about this. So from our product strategy perspective, what we’ve seen happening is very interesting. So in our premium markets we are seeing continuous growth in terms of ESPs by introduction of more premium products, while on the lower end of the market what we are seeing is that we are making more value products and seeing growth there. So at a company level, our ASP has grown by about 1% or 1 1/2 percent. But if you see from a market angle, this has been quite varied.
So we see both the premium end growing and the bottom end growing from our company’s perspective. So it’s the middle where, you know, we see that there has to be a little bit of growth coming back. So that’s the sort of, you know, overall trend which we are witnessing in the market with still single digit, sort of ESP growth, low single digit.
Sameer Gupta
So in the middle then.
Rahul Murarka
Yes. I mean, you were saying something.
Sameer Gupta
No, no, you let you finish first.
Vedant Modi
Yeah. So overall in terms of, you know, when we even talk about, let’s say down trading, we don’t think that’s happening because basket size is improving, average bill value is improving. But the trends are interesting to see how different markets are operating. And all in all, if you ask me, while the number of stores have opened a lot, which is something we’ve been mentioning from across different players. We still don’t feel that we have been losing share per se because when we compare our data to players in our vicinity versus our stores where there are no competition next to us, we don’t see much of a difference. Rather, the stores where there are players next to us have done slightly better off from a longer term perspective.
Sameer Gupta
So vedant, it still is a perplexing thing that middle the growth needs to come back. Where exactly is this growth going right now? Wedding, if you’re saying that you know, middle section, the weddings itself are you know, happening lesser now, which doesn’t seem, you know, logical, but it may be happening but otherwise they’re still buying merchandise from somewhere, right?
Vedant Modi
No, no, I absolutely, I’m not at all mentioning that middle the weddings are happening less. That’s not at all what I’m saying. I was just mentioning about how our product strategies trending out over the last quarter or so. But yes, you know, like I was mentioning, even from our company’s perspective, what we saw is let’s say in the last two quarters, if we take all our regions but exclude AP Telangana, then we’ve seen decent traction in both the quarters combined in all the other regions, the major pain that we’ve sort of felt has been in these two regions.
Sameer Gupta
Got it. I get this. So second question and you talked about this on the retail area growth, I understand right now rental inflation actually has been called out by a lot of companies. But let’s say you have guided on a medium term average of around 15% in retail retail area growth or mid teens. Do you like still see this happening, let’s say over a medium term despite rental illustration right now? Would you be comfortable in saying that?
Vedant Modi
Very difficult to answer for the next one to two years. But typically what happens and what we’ve seen over the last two decades is the moment this slowness starts again in terms of the retail rental numbers, then we again become very aggressive. So the endeavor is to come back at those numbers. But it also depends on how the rental numbers will move in the next couple of quarters. So once we see those numbers coming down, that’s when we will want to be aggressive again in our approach.
Sameer Gupta
And I didn’t get the answer to the question on store splitting. So basically if you have analyzed like stores where you know there are maneuver stores in the vicinity, is that cohort doing exceptionally on the lower side? Is there something that data is showing you?
Vedant Modi
No. So again there’s not anything like that per se. So typically this is something which we’ve always done. So historically also if one store does really well, then it has been a strategy of our company to open either another store right next to it or make that store larger in size. So this is a strategy that we’ve always taken and when we do this, yes, the SSG of the old store is impacted for the first year, but this is not something new which we’ve done. This is a strategy which we’ve been following for all the many years that we’ve been operating in the market. So I wouldn’t per se, you know, sort of put our SSG growth numbers to this particular point as much but rather to the more macro level environment pieces.
Sameer Gupta
Got it. Vedant, this is really helpful. Thanks Rahul. I’ll come back in the queue for any follow ups.
Rahul Murarka
Thank you.
Vedant Modi
Thank you.
Operator
Thank you. The next question is from the line of Anand Shah from Access Capital. Please go ahead.
Anand Shah
Yeah, thanks for taking my questions. So just a couple of questions again on that slowdown. I mean can you call out XCP Telangana, what was the growth or maybe whatever the salient. Your.
Vedant Modi
Sorry, can you please repeat that question? It was slightly less audible for us.
Anand Shah
Just one second. Yeah, you can hear me properly?
Vedant Modi
Yes, yes.
Anand Shah
Yeah. So I was asking basically, can you call out the growth that you saw X of AP Telangana overall at the company average or maybe what is the salience of AP Telangana and the overall business?
Vedant Modi
Yeah, so you know, broadly what we saw is about 10% growth in L2L when we see the last 2/4x of AP Telangana. So our SSG was about 10% in Q2 and Q3 combined. When we exclude AP Telangana.
Anand Shah
When you exclude AP Telangana. Okay, okay, got it. And I mean see, your reported SSG also would be similar, right? I mean If I take 2Q 3Q combined, wouldn’t it be? And it was 17 and 3 this quarter, right?
Vedant Modi
Yes, yes, that’s right.
Anand Shah
Okay, but then it was similar sssd. I mean if you exclude apical and also.
Vedant Modi
No, it is, it is. The delta is there. The Delta is about 2, 3% that we see.
Rahul Murarka
You’re talking about. This quarter we reported at the G of 2.6%. Okay.
Gaurav Jogani
Yeah.
Rahul Murarka
And exclude AP Telangana, then it is around 5%.
Anand Shah
Got it. So 2 to 3% SSSDEL. Done. Yeah, got it. Okay. And secondly, I mean can you share any, any data or insights on I mean, which part of the business more impacted. I mean your bridegroom business, which is the core wedding business and the Overall entourage that attends, you know the other part, which part is seeing more stress.
Vedant Modi
There wasn’t much, much of a change. So there was just maybe a 1% delta positive towards the non groom bride side overall from a nine month perspective. So not much of a change at all. And this is something which I think we’ve always been expecting, that the wedding attendee business will grow slightly faster than the groom bride business. So it’s broadly in line.
Anand Shah
Got it, got it. Now our second question is any insights you can throw on TAMEV as to how it is doing and what are the expansion plans. There any salience actually how much TAMEV contributes to the overall business?
Vedant Modi
TVAMEV’s contribution within the flagship stores has been continuously increasing, especially on the premiumization story in metro cities. So the traction has been very good. A lot of our growth has come from TVAME within the Mandevar Mohe stores and TAMEV Ebos on the other hand also continue to perform decently well. So currently we have about seven evos with two evos opening this quarter and we have few more evos in the pipeline with one super flagship store also that will be opening sometime in the second quarter of next year.
So this is the current plan for TAMEV overall and we’ve also, you know, sort of started infusing tvamev women within our Manyavar Mohe stores, which is also going to be a good lever for our women’s business, part of the larger fleet. So that is also something which is quite exciting for us.
Anand Shah
Okay, got it. So I mean when you say 25% of space is allocated to Mohi, I mean is it what, 5 to 10% for Homer now that you open these new stores that you do?
Vedant Modi
So very difficult to answer because to Amaz, we don’t give any particular area in the store. Rather let’s say if we have Tamev kurta, then they will be alongside Mandevar Kurta in the same shelf space. And the interesting part is, let’s say a store like Lower Parel, which contributes almost 25%, 30% of its business through TVAMEV, the inventory would only be close to 8, 9, 10% because the ASP is about 3x compared to the rest of the brands. Hence it doesn’t occupy as much area but does a lot more in business.
Anand Shah
Got it, got it. So I mean both, both Mohi and Kamev are tracking much stronger than the company average and expansion on both of them remains a big focus area in the medium term.
Vedant Modi
Absolutely, absolutely.
Anand Shah
Got it, got it. And lastly on Expansion, I mean the consolidation or the store closures that you are doing that is now completely done.
Vedant Modi
So again, like I mentioned, there was a large exercise that was done. There are a few more stores that we have to take a call on, but not to the level at which we were sort of going through before.
Anand Shah
Got it. Okay. Thanks a lot, Vedant. Thanks, Raghu. Thank you.
Vedant Modi
Thank you very much.
Operator
Thank you. The next question is from the line of Devanshu Bansal from MK Global. Please go ahead.
Devanshu Bansal
Yes, hi. Thanks for taking my question. Vedant. First is on rental inflation. So there has been weak demand environment which has been prolonged. Right. So typically such environment does see a good amount of store closures and we are also sort of a consolidation or consolidating our network. In such periods, rentals sort of tend to ease. So I just wanted to check the reason for these inflated dentals continuing. And are there still brands across categories continuing to open stores?
Vedant Modi
Yes, I think what we kind of witness is the rental prices are still hiked from our perspective. And you know, when we say that we’ve consolidated the kind of markets where we’ve, you know, sort of left our tier three markets majorly or very corner markets in a tier two or a tier one city. So the kind of markets we have left in terms of stores are markets where we can still easily find the store. The challenge lies in core markets where demand is already high, where the prices are becoming very difficult. So those are the kind of markets where the pain lies in terms of rental inflation. Yes, I think there are definitely people signing up stores and bases, our network of people we talk to in the retail industry, I think there’s definitely a lot of D2C to offline brands who are signing these stores at very high rental levels because their rental OC benchmarks also for the beginning are very different. So I think there are brands which are signing, but definitely I think people are more cautious than before and any long term retailer is definitely, you know, sort of going to take a step back at this.
Devanshu Bansal
Got it. And for Mohe Vedant, you mentioned that revenue productivity is now more or less similar to Maneval. I also wanted to check on the margin and working capital requirements for Mohe Vidavi moneyeval. So are they also sort of broadly similar or there is some difference between Mohey and Maneuver?
Vedant Modi
So Mohi’s gross margins are lower than the company’s average gross margins today. However, they’ve been trending pretty well for us. So we’ve been able to control our debt stock continuously while also improving on our overall merchandising mix, working capital will broadly be in line with maneuver. So working capital is pretty much similar. However, gross margins are slightly lower.
Devanshu Bansal
Understood. Last question from Mayan. You have indicated that tier 23 markets have done well for us, right? So excluding metros, similar to the number that you’ve shared, excluding telemarket. So what would be the growth trends in rest of the regions for us?
Vedant Modi
Broadly, I think, you know, tier two, tier three has a 5% delta over metros. So that’s the sort of improvement we’ve seen. But you know, the encouraging piece is that the trend was the other way around for many quarters up until Q1. So a reverse in trend was very, you know, sort of positive from our perspective.
Devanshu Bansal
Got it. Thank you, Vedant. Thanks for taking my questions.
Vedant Modi
Thank you very much.
Operator
Thank you. The next question is from the line of Rishi Modi from Marcellus Investment Managers. Please go ahead.
Rishi Mody
Hi, can you guys hear me?
Vedant Modi
Yes, Rishi, thank you.
Rishi Mody
Yeah, hi Vedant. So Vedant, firstly, just if you could give us an update on how say the January month is gone. Is it better how things improved or they still looking the way they have been in Q3?
Vedant Modi
I think broadly it’s what we’ve seen is only 30 days of which 15 days are always slower than normal period. So we’ve only seen about 15 days of January, but in the current 30 days it’s been similar to Q3. However, you know, I think we would like to see a little more before we give a proper commentary by the next earnings call or so.
Rishi Mody
Okay. All right. Second, just I’ve been noticing a trend in your. So your purchase of stock in trade, right, as a percentage of cogs, which is effectively in my understanding the pieces that you’re buying from a third party wholesaler in the last one year or last six quarters has gone up consistently. It’s now trending in the 70% range. Earlier it used to be in the 40% range. Now from what I understand, these pieces don’t have a lot of differentiation when like the commonality between say an unorganized player and your piece becomes higher. So the pricing then becomes the determinant rather than the design and quality of the product or the finish of the product. So firstly, like, is that the case or am I reading this wrong? Secondly, if that is the case…
Vedant Modi
I think that’s a good question. The range definitely is wrong. So it’s not 40 or 70%. I’ll let Rahulji get back with you on the data of that. However, you Know if I explain to you what we’re trying to do. Like I mentioned, we are being very aggressive in terms of our product strategy in order to ensure we can do whatever is possible from a market’s perspective. So be it creating more value products for places where we need value or be it premiumizing at the top end. Hence you see that this percent has risen, which is just an explanation to our more aggressive strategy towards having more variety in different areas and different parts of the country. And at the same time, you know, like I mentioned, Mohi is majorly purchased in trade and Mohi has seen very decent growth.
So that’s again another reason why this number has increased. Raoji, do you have any.
Rishi Mody
Mohe is what, 20, 25%, right. It’s not as if MOE has doubled in the last one year that as a percentage of your revenue that this sharp jump should occur. So like I’m looking at the Q3 versus Q3.
Rahul Murarka
Yeah, yeah, Rishi. So couple of things. One is as a percentage of COGS, you know, there is job charges, which is a major part of the expense which actually comes under other expense, which unfortunately the results which you see, you’re not able to view that amount now if you consider that amount and then when you compute the percentage. So I mean there’s no major variation as such in the mix per se, maybe few percentages, okay, but not major.
What we are discussing, because there’s a major component of job charges which happens to be a part of other expense and because, you know, considering the wedding season which is going on and all, so inventory levels have gone up. Okay. And the production has also gone up. So overall, you know, all the consumption, job charges, everything has gone up. And so the purchase of stock and trade has gone up accordingly. But yes, it has slightly increased in the proportion, but not to the extent as you were mentioning.
Vedant Modi
I’ll give you one broad example. We get back with the exact numbers to you. But broadly, if I’m right, then we would purchase close to about 20, 21% of our stock overall at a company level, that might be closer to 24, 25% now. So we’ll get back with the exact figures, but that’s broadly the change which is 400, 500 basis points from an overall angle, just being a little more aggressive from a variety angle.
Rishi Mody
Okay, so localization, the incremental localization is what you’re saying, you getting it from the wholesalers rather than investing in the design.
Vedant Modi
Also, just another part that you mentioned in your question, our vendors have an exclusivity deal with us. So any men’s product that we procure, we are guaranteed exclusivity on our products. So while that is not the case with most other players buying from the same vendor, if any product is purchased by us, we have exclusivity over that particular design.
Rishi Mody
Okay. All right. Third, I wanted to understand the marketing piece. Right? So we spend a decent chunk, we spend like 50 crores extra in this quote on in other expenses. Now I don’t know whether it’s entirely attributed to marketing or not, but assuming it’s largely attributed to marketing, so we’re not getting the ROI against it it seems. So where like what are your thoughts on what needs to be done on this front? Like earlier the strategy of hiring bigger stars, movies, ads and movies worked out very well, TVs, codings, all of that. Now we’ve changed the strategy to hiring lesser known stars, more digital. So like, just wanted your thoughts on what needs to improve here to bring the footfalls back.
Vedant Modi
Yeah, so I think firstly on the marketing spend perspective. So broadly, last year at a YTD level we were at 5.6%. This year we’re at about 5.8%. So at a YTD level spends have not actually changed that much.
Rishi Mody
Yeah. But widely doesn’t matter. Right. Because your Q4 this year is better, like more wedding dates than Q4 last year. So you’re gonna spend more or ideally you would have liked to spend more in Q3. Q4. Right. So…
Vedant Modi
Yeah, there might be a change but it won’t be significantly different to last year. Let’s say that could be a 40 to 60 basis point difference, maybe 70 point basis difference at a year level marketing percentage difference but not significantly different. So I think that’s the first piece. And coming to the strategy part of your question, we changed our overall approach towards marketing. We have a new partner on board, quite regarded as the best marketing agency in India. And what we are trying to do is bring back focus on the brand and the tagline. So the focus should shifts from let’s say a large celebrity to the tagline itself which is Aapka Banjay Mannevar. And I think one thing which we have understood over the last two decades is any brand marketing that you do is not for the quarter or the next quarter.
It plays a larger role in the many years that are to come. So I think judging how the spends bring results in one quarter is very difficult for most brands. So yes, I mean there should be some sort of a delta that great marketing can give us but in most cases, good marketing gives you Delta for the many years to come rather than just the quarter itself.
Rishi Mody
All right. Okay. I have maybe some more questions, but I’m not going to take up the time on the call. I’ll reach out to you later on. Thank you. Thank you for answering my questions and all the best for Q4.
Vedant Modi
Thank you very much.
Operator
Thank you. The next question is from the line of Naveen Bait from Nuvama Asset Management. Please go ahead. As there is no response, we’ll move to the next question which is from the line of Sheela Rathi from Morgan Stanley. Please go ahead.
Sheela Rathi
Yeah, thanks for taking my question. My question was again with respect to marketing. Now given that we are in midst of a very strong, I mean generally a strong wedding season, is there more we can do around marketing? I heard you, you know, your commentary around what all we have done. And I also understand we generally don’t do discounting, but is there a need for us to revive the demand momentum back, you know, to do some kind of activations or discounting in this quarter?
Vedant Modi
So I guess, you know, definitely I would say there is need to have great marketing. There is no doubt about that. But discounting as a topic we feel is against the core philosophy on which our company has been built, which is when anyone is celebrating, I don’t think it is easy to attract them with a discount in the first place. And the second place discount majorly is a mechanism of liquidating debt stock, which is something we majorly don’t have in our company. So I completely agree to your point that there is need of great marketing and very efficient spending as well, which is something which we are striving to do and continue to focus our overall methodology on. You would have seen that in this quarter. We did some interesting smaller campaigns with Zepto and Blinkit which both sort of saw some level of virality. We also did a very large digital campaign with both Manevar and Mohey achieving great visibility.
So I think we are definitely on our jobs in terms of great marketing. But discount is never going to most likely be a part of our marketing strategy. Another very interesting thing if I, you know, kind of talk about is marketplaces, which tend to be a highly discounted methodology of, you know, selling apparels. Even there with Divas, we were able to showcase pretty decent performance and all the marketplaces in our, you know, sort of quarterly meetings with them were in line that there is no need to discount even a brand like divaas. So when that is the confidence which we are seeing with our products on marketplaces. I think when it comes to ebo, which is our major channel, there definitely is no need to be thinking on lines of discounting per se.
Sheela Rathi
Understood. Vedant now because we just touched upon the marketplaces. Could you just remind us what is the share of the online piece for us now? And I mean how are we seeing the trends there versus for other categories?
Vedant Modi
It’s about 3 to 4% but our growth has been very strong in the online segment. We have been growing probably the fastest in that as a channel and overall about 70 odd percent growth is what we’ve seen in Q3 when it comes to online.
Sheela Rathi
Understood. So probably we will be focusing on this channel more aggressively going ahead at least for certain type of our offerings.
Vedant Modi
So actually if I’m being very honest with you, I think our focus has been very high for the last two to three years. But with a large focus on Divas and having the kind of product offering that really moves online has just given us the ability to scale things much faster. And even a very large focus on our in house tech through many has improved our conversion rates significantly which also improves our roas allowing us to spend more money and get better returns out of what we spend on performance marketing.
So mix of both Manevar and Divas led online growth I think will set us for a long term future. A lot of this online growth also came from our quick commerce channels as well.
Sheela Rathi
Interesting. Okay. Thank you very much.
Vedant Modi
Thank you.
Operator
Thank you. The next question is from the line of Tejas Shah from Evander Spark Institutional Equities. Please go ahead.
Tejas Shah
Hi follow up. Vedant and partly academic in nature this question but led by many media reports and other sources. Last quarter supposed to have a very loaded wedding season with some 4 or 5 million weddings depending upon which source you refer to. So just just to channelize our future effort in right direction, do you see any, any credibility or any right. We are forecasting significance of some of this wedding dates in terms of understanding whether it will culminate into demand or these are just vanity metric or vanity signs which we use for our reports and for general discussion. But it may or may not turn out to be converting into demand later.
Vedant Modi
I think majority of the research that you see online is very biased and if you go deeper and see the sample source it would be very small. So sometimes there are data on how much people spend during their weddings and you will find that the sample was 1500 People from Bangalore which is very biased and similar with the amount of weddings that will happen will be Based on a report with about a sample size of thousand to two thousand people. So I think we don’t per se take a lot of learnings from these reports. However, broadly at a macro level there will be 1 crore weddings in India. And the formula that you know, sort of I always see as an easy way of seeing it as one 40 crore population, 70 years of life expectancy divided by a couple which is two people. Get, get your number of one crore. So while there can be shift of wedding dates from one quarter to another, if we take two years as a whole, there will most likely be two 2 crore weddings that will happen in the country.
So I think from a two year perspective we are very clear. But how number of weddings move from one quarter to another, there is no clear data or understanding. Wedding dates are a great methodology of understanding approximately how many weddings will happen but not to a great, you know, sort of accuracy.
Tejas Shah
Sure. So if we, if we just refer to the last quarter, where did the disappointment come from? The number of weddings were overstated or the kind of spin that we thought will happen but did not come through?
Vedant Modi
No. So I think there was definitely not a big challenge with number of weddings especially in a quarter like this, October to December, the major, you know, sort of, at least from our perspective we saw great conversions, good asp, good sort of average basket size. Majority of our you know, sort of alpha growth which we should have seen was missing from a footfall perspective. Which is, which is I think where the main delta lied. And I think that is something which, which we are working towards and which is what we really need to bring back. And this is I think the case with most of the other mid premium retailers have faced.
Tejas Shah
Got it, got it. Thanks. That’s all from my side.
Vedant Modi
Thank you very much.
Operator
Thank you. The next question is from the line of Akhil Parekh from B&K Securities. Please go ahead.
Akhil Parekh
Hi. Thanks for the opportunity. My first question is on the demand in APN Telangana there is another listed player who happens to be Netflix where named Cysal. 60% of business comes from AP and Telangana. Right. But the commentary given by the company and numbers reported by the company are quite contradictory to what you are mentioning. Because they said categorically that there is no slowdown in bedding consumption. Their SSG growth has been 7% while top line growth is 16% plus. Could you please throw some light why? And also a supplementary question to it. Is it we are facing challenge more and more side in these two particular states or is it broad based weakness in both the Brands. That’s the first question.
Vedant Modi
Yeah. So I think, you know, this is a question which we also have sort of raised to our internal teams and we did see sort of these numbers, but majority of what we understand from this is brands which are closer to us in their offering, which are more men’s celebration wear brands. That is where the pain has sort of lied in that market. So it’s very difficult for me to compare to a company that has a very different offering. Hence it’s sort of a difficult question to answer. But we have, you know, sort of research going on in this space and once we have more answers, I think I’ll definitely be happy to discuss that with you.
Akhil Parekh
Okay. But would it be fair to say like has done reasonably better in these two states as well as you have highlighted for Pan India?
Vedant Modi
Yeah. So women’s, women’s performance would be slightly better. But in AP Telangana we actually don’t have a lot of Mohi penetration because it’s taken care by our brand neighbors. So majority of our women’s wear offering and women’s wear penetration is in the form of Nebas. So Mohit doesn’t actually have that much penetration in those markets.
Akhil Parekh
Fair enough. And second and last question on footballs and conversion rates, I don’t know if we maintain that those data points and how do you some legends and the football number look like maybe on a per store basis as of now versus say pre pandemic levels.
Vedant Modi
So broadly, you know, the data that we sort of understand is we do about 80, 75 to 80% conversion at a group level when it comes to our men’s business and about 60, 65% conversions now when it comes to our womenswear business. So these are in line and have been doing pretty well. And in terms of footfall, if you look at the quarter, our ASP growth was about a percent. So the remaining one and a half, 2% growth which came from an SSG perspective was all led by slightly higher footfalls.
Akhil Parekh
Okay, sure. This is helpful and thanks and best wishes for the coming quarters.
Vedant Modi
Thank you very much.
Operator
Thank you ladies and gentlemen. That was the last question for today.
I would now like to hand the conference over to the management for closing comments.
Vedant Modi
Thank you. It is always great interacting with all of you. We strive to do the best and really focus on all our internal KPIs and we have great plans of working very efficiently to, you know, sort of get good growth in the mid and long term. And thank you very much, looking forward to interacting again soon.
Rahul Murarka
Thank you.
Operator
Thank you. On behalf of IISL securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.