Vedant Fashions Ltd (MANYAVAR) Q4 FY23 Earnings Concall Transcript

Vedant Fashions Ltd (NSE:MANYAVAR) Q4 FY23 Earnings Concall dated May. 02, 2023.

Corporate Participants:

Vedant Modi — Chief Marketing Officer

Rahul Muraka — Chief Financial Officer

Analysts:

Nihal Mahesh Jham — Nuvama Wealth — Analyst

Tejas Shah — Spark Capital — Analyst

Varun Singh — ICICI Securities — Analyst

Aliasgar Shakir — Motilal Oswal — Analyst

Sameer Gupta — India Infoline — Analyst

Priyanka Trivedi — Antique Stock Broking — Analyst

Prerna Jhunjhunwala — Elara Capital — Analyst

Archana Menon — Morgan Stanley — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Q4 FY 2023 Earnings Conference Call of Vedant Fashions Limited hosted by Nuvama Wealth Management. Reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] I now hand the conference over to Mr. Nihal Jham from Nuvama Wealth. Thank you and over to you.

Nihal Mahesh Jham — Nuvama Wealth — Analyst

Yes, thank you so much. On behalf of Nuvama Institutional Equities, I would like to welcome you all to the Q4 FY 2023 Earning Conference Call of Vedant Fashion Limited. From the management today, we have Mr. Vedant Modi, Chief Marketing Officer and Mr. Rahul Murarka, Chief Financial Officer. I would now like to hand over the call to Mr. Vedant Modi for his opening remarks, over to you Vedant.

Vedant Modi — Chief Marketing Officer

Thank you very much Nihal, good afternoon and namskar to all the participants. I am Vedant Modi the Chief Marketing Officer of the company, thank you for joining us today to discuss the Vedant Fashions Limited quarter four and financial year 2023 results. I’m joined by Mr. Rahul Murarka, the Chief Financial Officer of our company. I hope everyone got an opportunity to go through our financial results and invitation which have been uploaded on the stock exchange as well as the company’s website.

Let me take you through the fourth quarter and full-year performance. We are pleased to report that we have achieved strong growth in the financial year, our growth strategy is focused on expanding our retail outreach both domestically and internationally. We have expanded our international presence and we are not [Technical Issues] countries, USA UAE, Canada and the UK. In this quarter, we increased our exclusive brand outlet footprint, which is the dominant channel for the company. As of March 2023, VFL’s EBO area stands at 1.47 million square feet, spanning 649 stores in 257 cities and towns globally. The national EBO footprint tallies at 633 stores spread across 245 cities and towns.

In this quarter, we have opened net square feet area of around 75,000 square feet, which includes 7 EBO’s in India and two international EBOs. In financial year 2023, we expanded our retail footprint by 2.04 lakh square feet with 64 net EBOs opening. This expansion highlights the commitment to provide our consumers with the best possible shopping experience, thereby increasing our market-share with the largest sale of the consumers voice. In financial year 2023, our overall consumer sales growth stands at 26.3% over financial year 2022, as our triple SSSG growth has been 18.1% in financial year 2023 over financial year 2022.

In-quarter four, financial year 2023, our overall consumer sales grew by 21.2% over quarter four financial year 2022 and SSSG growth has been 14% over quarter-four of last year. In financial year 2023 our consumer sales growth stands at 47.1% when compared to pre COVID financial year of 2020. While the financial year 2023 SSSG growth has been 17.6% over the pre-COVID financial year of 2020. In the fourth quarter of the financial year 2023, our overall consumer sales growth stands at 45.8% compared to quarter four financial year 2020.

In-quarter four, financial year 2023, the SSSG growth has been 16.2% over the quarter four of financial year 2020. We continue to run our flagship campaign built around the theme Taiyaar Hokar Aaiye, the campaign features Ranveer Singh in a new avatar and was targeted to wedding centric audience. We ran the campaign across all channels and it was a 360 degree campaign. In addition to this, I would also like to highlight that we have launched Kiara Advani as the new face of the brand Mohey.

The campaign featuring around the theme Dulhan Wali Feeling and it picks the saga of a modern day bride and how weddings are a big day for them. This campaign beautifully encapsulates the theme strongly connects with all modern-day brides. We saw tremendous performance across the digital channels that we made this campaign.

With this, I will now hand it over to Mr. Rahul Murarka, to take you through the financial performance of our company. Thank you.

Rahul Muraka — Chief Financial Officer

Thank you Vedant. Namaskar and good afternoon everyone. I would like to highlight some key performance for the fourth quarter and financial year ended March 2023, based upon the consolidated financial statements. Starting from Q4 of FY 2023 performance update. The company has reported revenue from operation of INR342 crore in Q4 of FY 2023, delivering a growth of around 15.3% compared to Q4 of FY 2022. The company continues to report industry-leading gross margin of around 66% during Q4 of FY 2023. The EBITDA margins were around 50.2% and the EBITDA INR171 crores during Q4 of FY 2023 with a growth of around 17% compared to Q4 of FY 2022.

The reported best-in class PAT margin of 31.9% and the profit-after-tax stood at INR109 crores during Q4 of FY 2023 with a strong growth of 23% compared to Q4 of FY 2022. Our sale of customers was around INR483 crore Q4 of FY 2023 with a significant growth of 21.2%, over Q4 of FY2022 along with strong SSD growth of 14% in Q4 of FY 2023 over Q4 of FY 2022. Now, comparing our Q4 FY 2023 with Q4 of FY2020 whose figures have been considered based on [Indecipherable]. The revenue from operations significant grew by approx 31% and we witnessed very strong growth impact by approximately 53% compared to Q4 of FY 2020. Sale of our customers grew by 46% over Q4 of FY 2020 and we recorded SSG growth of 16.2% in Q4 of FY 2023 over Q4 of FY 2020.

Now, I would like to summarize FY 2023 full-year performance. The Company reported revenue from operation of INR1355crores during FY 2023, delivering a very strong growth of 30% compared to FY2022. The company continues to report industry-leading gross margin of 67.4% during FY 2023, which is an improvement of 0.5% compared to gross margin of 66.9% in FY 2022. The EBITDA margin was around 50% and the EBITDA stood at around INR678 crores during FY 2023 with a strong growth of around 30% compared to FY 2022.

The company reported best-in class PAT margin of around 31.7% and the profit after tax stood at INR429 crores during FY 2023 with a significant growth of around 36.3% compared to FY2022. Moreover the PAT generated during the year is approx 140% of net working capital deployed as of March 31, 2023. With optimization in working capital, we have been able to achieve industry-leading ROCE of approx 95.3% during FY 2023. The company had a track-record of generating significant cash driven by a healthy cash conversion ratio.

The company continues to generate high-cash conversion ratio of around 83% in FY 2023, this has been computed based upon operating cash-flow with PAT during the period. Moreover, the operating cash-flow generated during the year is 116% of net working capital deployed as on March 31, 2023. The company also witnessed improvement in net working capital days from 94 days in FY 2022 to 83 days in FY 2023 which is computed based upon internal MIA [Phonetic]. Sale of our customer was around INR1861 crores during FY 2023 with a significant growth of around 26.3% over FY 2022 along with a very strong growth of around 18.1% in SSG compared to FY 2022.

When comparing our performance figures of FY 2020 this internal management MIA [Phonetic], revenue from operations significantly grew by approx 40% and we witnessed very significant growth in PAT by approx 81% in FY 2023 over FY2020. Sale of our customers also significantly grew by approx 47% along with SSG growth of around 18% over FY 2020.

Thank you and namaskar everyone. We can now move to the Q&A session.

Questions and Answers:

Operator

Thank you very much. [Operator Instructions] We have our first question from the line of Tejas Shah from Spark Capital, please go-ahead.

Tejas Shah — Spark Capital — Analyst

Hi, thanks for the opportunity. Sir, first question pertains to largely kind of trying to reconcile your SSG numbers with the very traditional method of like store addition or square footage expansion with 16% and if I reduce the revenue growth from there, then SSG does not actually look, very high number. So how should we reconcile this number with what you have given?

Rahul Muraka — Chief Financial Officer

Hi Tejas. So basically as far as reconciliation is concerned, look the pure math would never work, because the square feet area which we add up on in a particular year is around the year, it’s not in the beginning of the year, so the revenue which also get generated is for a part of the year in that year when you open the store and the full year revenue comes in the next year only. So, if you’ll see the trend of store opening like in FY 2023, out of 2.04 lakh square feet which we opened in the entire financial year, 75,000, which is a big chunk will be opened in Q4 only.

So, around 60% 65% of area which we opened was in H2 compared to 40%, which we opened in H1, so obviously the revenue of those square feet additions that happened, the full revenue would come in, in the next year only. So, that is why the total — I mean, if you add up-on the square feet addition, such that — will never match with the overall revenue growth.

Vedant Modi — Chief Marketing Officer

So, if I I may add to that Tejas. If you look at it, our SSSG for financial year 2023 over 2022 was 18% while consumer sales growth was at 26.3%. Now, we’ve added about 16% to our overall net area and because that was throughout the year, if you just take half of that, which is 8% and add it to the 18% it almost adds up to your 26.3% which is a ballpark figure of how this whole derivative happens.

Tejas Shah — Spark Capital — Analyst

Perfect. Second, I see SG&A efficiency in last two-three years, it has been naive, in fact employee costs in particular we have again in this quarter also we have reduced it y-o-y and sequentially, both and then the same is Q4, the whole year as well. So, just wanted to know how should we think about the SG&A efficiency going-forward and where would you like to settle so that the business also doesn’t suffer, but profitability also improves or remains healthy?

Rahul Muraka — Chief Financial Officer

So as far as employee cost is concerned, Tejas one of the major reason why the employee cost decreased in our financial year is because of the restructuring of director realization. So total — I mean, if you see the director realization, the director realization has reduced from 2.1% of revenue to 1% revenue FY2023, because of the restructuring of the director realization as we explained in earlier calls. So that is one of the reasons why on an overall level you are seeing a decline or similar number of HR cost and not the growth.

Vedant Modi — Chief Marketing Officer

And just adding onto that whole piece, when we talk about the overall efficiency of a company, I think we’ve been able to demonstrate extremely high gross margins throughout the year and we’re comfortable in staying with 66% 70% gross margin is what we expect the long-term tend to be. While we talk about PAT margins while we delivered 31% plus in some quarters, we are comfortable in staying at 50% plus number and as you aware Tejas these are some of the numbers in terms of efficiency — are global benchmark now. So, we’ve been able to tremendous start, the idea is to maintain it as we move forward in the numbers just mentioned.

Tejas Shah — Spark Capital — Analyst

Very much clear. And the last one if I may, looking at the healthy cash-flow generation and a very capital efficient model that we have created, how do you want to allocate capital going-forward because that question is, keep on like — it will gain materiality as we go-forward. So how do you think about allocation of capital going-forward?

Rahul Muraka — Chief Financial Officer

So Tejas, the company is debt free, whatever cash we are able to generate on a particular financial year, 83% of PAT a significant number that is sufficient enough to run the business per se. And you have seen that we have also — believed in distributing the excess cash which we have to our shareholders. Like last-time also, we have declared dividend of INR5 per share, and this year also based upon the performance of the company, the Board of Directors have decided to propose INR9 per share as dividend.

So, unless we have any M&A which we are not sure when it will happen or it will happen in future, cash we will use for the business, for expansion of course to the extent required, and always our endeavour would be to give it back to the shareholders.

Operator

Thank you. We have our next question from the line of Varun Singh from ICICI Securities. Please go ahead. Mr. Varun Singh your line is unmuted, please go-ahead with your question.

Varun Singh — ICICI Securities — Analyst

Yeah. Sure. Thank you very much. My question — my first question is on the revenue growth, so if I look at the yearly revenue numbers and compare it with FY 2019 numbers, so we see that roughly 13% to 14% is the revenue CAGR which is coming up, so Vedant my question is, how do you look at this number, you think that we could have done much better and even going-forward how should we — looking at the revenue growth given this context?

Vedant Modi — Chief Marketing Officer

Thank you for the question Varun. So the number which we strongly follow when we look at, let’s say, three or four your calculus. So the number in our reference is currently the FY 2023 to FY2020 SSSG number which was at 17.6%, so that comes to 5.5% sort of a 3-year CAGR. Now, we may not be exuberant with that number we are not unhappy either, given the kind of environment we are operating in currently. However, the endeavor is to be at good single-digit SSSG number as we move forward.

Varun Singh — ICICI Securities — Analyst

Okay, and sir my second question is how do you see competition from for example Ethnics in the pockets where the stores would have opened up?

Vedant Modi — Chief Marketing Officer

Sure, so I won’t be able to comment on a single organized retailer, however in totality with all the organized retail competition that is opening up across the country, what we’ve also kind of spoken in our last call, is that everywhere we are seeing organized retail open up next to our stores. The performance of that store is actually better than the state average when it comes to SSSG. So this is a phenomena we’re witnessing across-the-board and in most of the stores, so that is really fantastic to see that the overall market is growing and it is most likely a faster shift from unorganized to organized, which is what we understand currently. And in addition to that, as we’ve mentioned that [Indecipherable] and industry are very large given the fragmented supply-chain, the very difficult understanding consumer preferences, as it varies every 50 kilometers and then the kind of brand mode we’ve created with Manyavar

So, very recent study that we conducted with one of the best market research revealed that Manyavar in its [Indecipherable] has a 98% of MS [Phonetic] while we have a 95% to 96% consideration. So now, again from a brand perspective, these are unheard of numbers in the fashion retail space. So, we are really confident about our brands and the kind of modes we have and as the internal numbers suggest, business is strong and we are continuously expanding.

Operator

Thank you. We’ll move on to the next question from the line of Aliasgar Shakir from Motilal Oswal. Please go ahead.

Aliasgar Shakir — Motilal Oswal — Analyst

Yes. Had a question on the performance of Mohey and Twamev, so we have the heavy-lifting over there and we have been seeing that confidence in the K4K [Phonetic] measurables that we have been tackling has also been doing well. I think you also now opened independent stores over there, so just wanted to get a sense of what is the feedback on the ground, what is the situation and those key measurables that we’ve been tracking in the flagship stores, how have they been doing in the independent stores. Do you see the confidence here to scale this up very quickly — a good period of time, maybe 30, 40 stores in a couple of years?

Vedant Modi — Chief Marketing Officer

Thank you for the question. So the independent stores, for Twamev our plan is to start going live by end-of-the of this month — so our flagship in Bangalore had its soft launch on Friday with Delhi and Hyderabad being followed very closely and also Pune. So Twamev is set for four flagship stores in the coming quarter or so while — when it comes to Mohey, again flagship stores are in the pipeline and they will start to open extremely soon so I can’t comment on how the performance has been on those independent stores yet because we are going to go-live with them extremely soon.

However, when it comes to the performance of Mohey and Twamev within the flagship outlets, we have seen tremendous growth and both the SSSG growth have been faster than the company average in the financial year and all the front-line data that we are getting, which is feedback on product, be it conversion rate, inventory turns that we’re able achieve with both of these banks, this continuously improved over the years, so we are very confident regarding the independent store concept as well. However, there will be new interesting things that we understand in terms of how do we market the brand separately, so we’re able to bring in footfalls to these stores, which would be an interesting space to kind of see over the next few quarters.

Aliasgar Shakir — Motilal Oswal — Analyst

Okay, so scalability from year will be dependent on how these stores perform or, we have a pipeline to already add 30, 40 stores cumulatively on these brands?

Vedant Modi — Chief Marketing Officer

So, take for example, we are expecting about 8 to 10 stores in Twamev and 10 to 15 stores in Mohey as the pilot and basically the results we gained from these pilots is when we take the decision on scalability of the model. However, we are very confident and what we’ve done with our business development strategy has divided the stores into different pockets of regions and at the same time also divided them into multiple business development strategies; for example trying out the high street where consumers walk versus trying out the high street by consumers enter with a car versus mall stores that is extremely famous in the city. So trying out every single permutation and combination to understand the model as well as we can in the first few quarters itself.

Aliasgar Shakir — Motilal Oswal — Analyst

Right. And we will be in 2024 right, FY2024 these store additions?

Vedant Modi — Chief Marketing Officer

Correct.

Aliasgar Shakir — Motilal Oswal — Analyst

Got it. Second question is on the digital transformation we spoke even last quarter which was likely to see a launch of Phase 1 in this quarter. So can you share any details about it, what are the areas we should see benefit — has the launch happened and things about there?

Vedant Modi — Chief Marketing Officer

Absolutely. Thank you for that question and the Phase 1 launch has already happened. So, if anyone of you are interested, you can just go to manyavar.com and see the Phase 1 come to life and we are seeing tremendous numbers on the back-end, however I don’t want to comment too much on it currently because it’s only two to three weeks of data where we’ve seen a significant rise in conversion rates, significant rise in average time spent on our website. So we are seeing the experience having grown phenomenally. What we are really interested in is the Phase 2 which kicks in two to three months from now, where we will start to connect the digital and the physical world, what that will kind of entail at that time is, let’s say what we’ve witnessed is a lot of grooms search the website before they end-up in the store. So what we’re trying to do is create a profile of that groom, which is what kind of sherwanis are they interested in, for example, do they like Brocade or which colors do they like, and then we’ll pass on this information to the store, when the person enters booking an appointment. So all of this is going to start come to live on our new platform in the coming two to three months.

Aliasgar Shakir — Motilal Oswal — Analyst

Understood. And the Phase 1, you mentioned will be on manyavar.com where you can, as a customer, build your profile and things like that?

Vedant Modi — Chief Marketing Officer

Absolutely. So Phase 1, is just the starting point where the new skin is live, a very fast website using all the global practices. So the [Indecipherable] sector which is Google — which Google offers you, we’ve seen tremendous scores there and our SEO is also improving after the launch of our first phase.

Operator

Thank you. We have our next question from the line of Sameer Gupta from India Infoline. Please go-ahead.

Sameer Gupta — India Infoline — Analyst

Hi sir, and thanks for taking my question. First question is that, if I look at the secondary sales growth performance on our second-half basis, just clubbing the previous quarter and this one, I see a Y-o-Y growth of only 7% and this is over a retail area addition of 16%, so growth has been kind of weak, if you include both 3Q and 4Q which takes in a whole wedding calendar. So how are you so confident of still achieving a high-single-digit SSS growth going-forward? What is going to drive this improvement in the near-term?

Vedant Modi — Chief Marketing Officer

Thank you for the question. We’ve discussed this before that overall, what we have witnessed in that last year, Q1 was heavily impacted that’s why weddings moved from Q1 to across the year which spilled over the dates throughout the financial year 2022, however, because financial 2023 did not have much of a COVID impact and typically the entire year was clean, that’s why weddings were happening normal in Q1, Q2 and Q3, Q4 also normalized. Typically what we see in a given financial year is we do 36% 37% of business in H1 while the remaining happens in H2. However, this year that figure move to 42% and 58%, so what we are expecting is those numbers will normalize — one year thing to happen this year.

Sameer Gupta — India Infoline — Analyst

That answers. Thank you. Second question is on the EBITDA margin, if I look at full-year EBITDA margin it is at 49.5% on a post-Ind AS basis, this would be around 41% on a pre-Ind AS basis, historically the highest. Are you comfortable with such high margin, first of all. Second is that going ahead with Mohey and Twamev plus pricing competition, how do you look at this margin? I mean is it safe to build some contraction at this point on such a high base?

Vedant Modi — Chief Marketing Officer

So again, commenting on the PAT margins while we’ve delivered more than 51%, we are comfortable in saying that 30% in the short-term as we move forward. Even with our lower brands, we’ve been building efficiency with scale, so that the margins are able to match-up with the company average margin when it comes to gross margin. So, that as the events scale-up they’re not eating away from our company’s margins. On the other hand, when it comes to my Manyavar, we have a very strong cost-efficiency in-built in that brand. So, we are able to produce anything almost 25% to 30% cheaper when it comes to other organized players in the market. Now, that gives us the bleeding room in terms of having very tight prices, yet being able to have the kind of margins that we have.

Rahul Muraka — Chief Financial Officer

And just to add upon, Vedant gave you reference of PAT because post Ind AS 116, your PAT has become more relevant than EBITDA. I mean, your question was on EBITDA so that’s why I was just clarifying that internally also we review, we feel that it is more relevant to compare on PAT level rather than EBITDA after the introduction of Ind AS.

Operator

Mr. Gupta?

Sameer Gupta — India Infoline — Analyst

Yeah, fair enough. So, I’m done with my questions. Thanks.

Operator

Thank you. We have our next question from the line of Priyanka Trivedi from Antique Stock Broking. Please go ahead.

Priyanka Trivedi — Antique Stock Broking — Analyst

Yes sir, thank you for the opportunity sir. Sir, my first question is, if you could give us a sense on how your international stores have been performing and what is the contribution to your revenue from these stores?

Vedant Modi — Chief Marketing Officer

So, while the contribution to our revenue would be very low, it would be the 1% to 2% range what we’ve witnessed over the last couple of years is very good traction when it comes to our international stores. We’ve grown at a 26% CAGR from pre COVID levels and the growth was extremely good during the COVID, however, as we moved out of COVID, what we’ve seen is the international buyers coming back to India as NRIs and shopping here, but the growth has slightly plateaued, but still the kind of CAGR, we witnessed we are very confident in expanding to much newer countries and much newer cities that we hadn’t explored in the international cities yet. So yeah, the path from here when it comes to countries we’ve already entered in such as the US and the UK, look very good to us.

Priyanka Trivedi — Antique Stock Broking — Analyst

Okay, got it. And sir, my second question would be, what would be the contribution of groom versus non-groom during the quarter?

Vedant Modi — Chief Marketing Officer

So again, during the quarter is something which we don’t give out as a number, which is groom versus non-groom but on a typical yearly basis about 45% to 50% of our business comes from grooms or brides.

Priyanka Trivedi — Antique Stock Broking — Analyst

Okay. Got it. That’s it. Thank you.

Operator

Thank you. We have our next question from the line of Prerna Jhunjhunwala from Elara Capital. Please go ahead.

Prerna Jhunjhunwala — Elara Capital — Analyst

Thank you for the opportunity. I would like to understand the channel mix as well. How do we see the contribution from the other channels like MBO and LFS and online channel as we’re investing into the digital platform, so how is that share moving?

Vedant Modi — Chief Marketing Officer

So, just breaking it down into two components, which is MBOs and LFS one and e-com being the other one. So, as a company, the dominant channel for us is EBOs and strategically we view it as a much more important channel compared to MBOs and LFS because we’re able to give consumers the kind of experience, the brand wants to give to them and kind of sizes of the stores that we’re opening now is truly able to continue to cater to their needs with a much higher average bill value that we’ve seen from any other format.

On the other hand, when we talk about online, online is a very strong channel for us when it comes to non-wedding sales such as festive buying for Diwali or even wedding attendees buying online, so that channel is continuously growing from a business perspective, however, as we were discussing earlier with the new digital experience going — we see omnichannel and digital experiences will become a very big component as we move forward into the future.

So that is where manyavar.com would really harp on to all of those sort of nuances and we’ve seen a 40% sort of CAGR in our online channel over the last three years, which is compared to [Indecipherable] so that has been good and with large-format stores in MBOs while we continue to expand, yet it’s relatively slow when it comes to the commitment we have towards EBOs.

Prerna Jhunjhunwala — Elara Capital — Analyst

Okay. And second thing, as we are growing our — we’re opening larger store format sizes, do we see same-store sales growth for the company increasing much higher than today, at least in the near-term?

Vedant Modi — Chief Marketing Officer

I mean, the size of the store does not play any role there as we’ve mentioned a high-single-digit good single-digit kind of SSSG is what we endeavor to achieve and that is what our targets are, with higher stores what we’re able to do is increase our average bill value and provide a much better experience to a consumers. And typically, we only open larger stores in areas where we see the potential to already exist.

Prerna Jhunjhunwala — Elara Capital — Analyst

Okay, so this quarter, this year when we have opened very large stores — is higher store and our average size is just a coincidence maybe it will normalize in the next few years?

Vedant Modi — Chief Marketing Officer

Strategically, we are opening larger stores, and that will be the strategy moving forward. So while this quarter may have been slightly abnormal in terms of the average — however, the typical average we’ve had of about 2400, 2500 square feet is also going to increase from here.

Operator

Thank you. We have our next question from the line of Archana Menon from Morgan Stanley. Please go ahead.

Archana Menon — Morgan Stanley — Analyst

Hi, thanks for the opportunity. My first question was to Vedant, you mentioned market-share gains in your opening remarks, so could you share some numbers around that? Where is the market share currently and where was it say, last year?

Vedant Modi — Chief Marketing Officer

Yeah, in terms of market-share, we don’t have exact numbers, right, in terms of what kind of market-share that we have. What I was kind of referring to is that with our expanding reach of stores and square footage, that is what we endeavor to do. So while there is no exact market research report that we’ve done over this year, I won’t be able to comment on that but if I refer back to financial year 2020 numbers, then at a men industry — men’s ethnic wear industry scale and size, we were doing about 8% to 10% business. While talking about organized, we were at about at 39% 40%.

Archana Menon — Morgan Stanley — Analyst

Okay, and your is that could have grown from there?

Vedant Modi — Chief Marketing Officer

Sorry. I couldn’t get you.

Archana Menon — Morgan Stanley — Analyst

Sorry, so that number from 35% should have increased in the last two years?

Vedant Modi — Chief Marketing Officer

That is our endeavor, however I won’t be able to comment on it..

Operator

We have our next question from the line of Rajesh Vora from Jainmay Venture Advisors. Please go ahead.

Vedant Modi — Chief Marketing Officer

[Technical Issues]… being able to use across our brands and Jaipur improves all of their efficiencies.

Operator

Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to management for closing comments. Over to you sir.

Vedant Modi — Chief Marketing Officer

Thank you very much to everyone for joining us for the quarter four earnings call, it’s always a pleasure interacting with all the analysts. It’s a very good learning for all of us. Thank you very much, hope to see you next quarter. Namaskar.

Rahul Muraka — Chief Financial Officer

Thank you and namaskar.

Operator

[Operator Closing Remarks]