Q1 2027 Metro Brands Ltd Earnings Call

August 5, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Metro Brands Q1 FY27 earnings conference call, hosted by Motilal Oswal Financial Securities. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day, welcome to the Metro Brands Q1 FY27 Earnings Conference Call hosted by Motilal Oswal Financial Securities. As a reminder, all participant lines will be in the listen-only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aditya Bansal from Motilal Oswal Financial Securities. Thank you, over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now end the conference and hand it over to Mr. Aditya Bansal from Motilal Oswal Financial Securities. Thank you, and over to you, sir.

Speaker #2: Thanks, Anirudh. Good afternoon, everyone. On behalf of Motilal Oswal, I welcome you to the Q1 FY27 earnings call of Metro Brands. Joining us today from the management, we have Mr. Rafiq Malik, Chairman.

Aditya Bansal: Thanks, Alaric. Good afternoon, everyone. On behalf of Motilal Oswal, I welcome you to the Q1 FY27 earnings call of Metro Brands. Joining us today from the management, we have Mr. Rafiq Malik, Chairman, Ms. Farah Malik Bhanji, Managing Director, Mr. Nissan Joseph, CEO, Mr. Kaushal Parekh, CFO, Mr. Mohit Dhanjal, COO, and Ms. Alisha Rafique Malik, President, Sports Division, Ecommerce and CRM. Without further delay, let me now hand over the call to the management for their opening remarks. Over to you, Nissan.

Speaker #2: Ms. Farah Malik Bhanji, Managing Director; Mr. Nishant Joseph, CEO; Mr. Kaushal Parik, CFO; Mr. Mohit Dhanjal, COO; and Ms. Alisha Rafiq Malik, President, Sports Division, E-commerce and CRM.

Speaker #2: Without further delay, let me now hand over the call to the management for their opening remarks. Over to you, Nishant.

Speaker #3: Thank you, Aditya. Good afternoon, everyone, and thank you for joining our earnings call. In Q1 FY27, we posted a 14% growth in our standalone business, along with 9% growth in EBITDA, leading to a 13% PAT.

Nissan Joseph: Thank you, Aditya. Good afternoon, everyone, and thank you for joining our earnings call. In Q1 FY27, we posted a 14% growth in our standalone business, along with a 9% growth in EBITDA, leading to a 13% PAT. As a recap of our sales performance through the quarter, April and May were soft due to the overhang of the US-India conflict and also a shift in marriage dates linked to the Ashad month. We were very pleased to see June recover extremely well for us to post a mid-teen double-digit gain for the quarter. Through the quarter, we saw very good sales performance come from Clarks and also from the marketing campaigns that we launched in Metro and Mochi. We continue to see consistent growth from our multiple e-com channels.

Speaker #3: As a recap of our sales performance through the quarter, April and May were soft due to the overhang of the US-Iran conflict and also the shift in marriage dates linked to the Adik Mas.

Speaker #3: However, we were very pleased to see June recover extremely well for us, allowing us to post a mid-teens double-digit gain for the quarter. Throughout the quarter, we saw very good sales performance come from Clarks, and also from the marketing campaigns that we launched in Metro and Mochi.

Nissan Joseph: We were very pleased to see June recover extremely well for us to post a mid-teen double-digit gain for the quarter. Through the quarter, we saw very good sales performance come from Clarks and also from the marketing campaigns that we launched in Metro and Mochi. We continue to see consistent growth from our multiple e-com channels.

Speaker #3: We continue to see consistent growth from our multiple e-commerce channels. While the total growth was only 9%, to give you some color, I would like to break it out by the three pillars of our digital business.

Nissan Joseph: While the total growth was only 9%, to give you some color, I would like to break it out by our three pillars of our digital business. Our B2C websites grew at almost 60% compared to last year. Our marketplace Omni business also grew by 60%. It was the SOR 3P business that pulled down the numbers to a 9% growth. This was due to a certain degree of lumpiness of sales that comes from these kind of seasonal orders, also a conscious decision on our part to reduce lower price points and our discounts on the 3P business. For the year, we are confident that our B2C business and our Omni business continuing to produce double-digit gains for the year. In the area of new stores, we opened 13 new stores and closed four stores for a net of nine stores.

Speaker #3: Our D2C websites grew at almost 60% compared to last year. Our marketplace omni-business also grew by 60%. It was the SOR 3P business that pulled down the numbers to a 9% growth.

Speaker #3: This was due to a certain degree of lumpiness of sales that comes from these kinds of seasonal orders, but also a conscious decision on our part to reduce lower price points and our discounts on the 3P business.

Nissan Joseph: This was due to a certain degree of lumpiness of sales that comes from these kind of seasonal orders, also a conscious decision on our part to reduce lower price points and our discounts on the 3P business. For the year, we are confident that our B2C business and our Omni business continuing to produce double-digit gains for the year. In the area of new stores, we opened 13 new stores and closed four stores for a net of nine stores.

Speaker #3: For the year, we are confident that our D2C business and our omni-business will continue to produce double-digit gains. In the area of new stores, we opened 13 new stores and closed 4 stores, for a net addition of 9 stores.

Speaker #3: While I know this is a much lower number than most other quarters, it is in no way reflective of our goal of continuing our growth.

Nissan Joseph: While I know this is a much lower number than most other quarters, it is in no way reflective of our goal of continuing our growth. Sometimes market economics change how stores open from quarter to quarter, we remain committed to continuing the growth that you've seen from us over the last few years. A few points to highlight before I hand it over to questions. The health of our business is indicated in a few areas. One is our gross margins, which continue to match our highest gross margin for the past five quarters, coming in at almost 60%. This was largely due to the quick action of the team to mitigate any input costs while also controlling inventory.

Speaker #3: Sometimes, market economics change how stores open from quarter to quarter, but we remain committed to continuing the growth that you've seen from us over the last few years.

Speaker #3: A few points to highlight before I hand it over to questions: The health of our business is indicated in a few areas. One is our gross margins, which continued to match our highest gross margin for the past five quarters, coming in at almost 60%.

Nissan Joseph: The health of our business is indicated in a few areas. One is our gross margins, which continue to match our highest gross margin for the past five quarters, coming in at almost 60%. This was largely due to the quick action of the team to mitigate any input costs while also controlling inventory.

Speaker #3: This was largely due to the quick action of the team to mitigate any input costs while also controlling inventory. Secondly, our revenue per square foot has stayed consistent year-on-year, despite opening many new stores, which, as you know, do not have the same productivity as our mature stores.

Nissan Joseph: Secondly, our revenue per square foot has stayed consistent year on year despite opening many new stores, which, as you know, do not have the same productivity as our mature stores. Last but not least, EBITDA margins continue to remain at 30%, which is what we always guided to. Our PAT margins were impacted by four items. Our increase in investment in brand-building marketing, a modest increase in occupancy costs, primarily driven by new format additions and the number of new stores we opened, lower treasury income against a high-performing number last year, and last, but most importantly, our investment in talent and tech in the organization as we continue to invest for the future. Also, as an update, our new distribution center of roughly 250,000 square feet, which launched in March, is now fully operational with all integrations complete.

Speaker #3: And last but not least, EBITDA margins continue to remain at 30%, which is what we've always guided to. Our PAT margins were impacted by four items.

Speaker #3: Our increase in investment in brand-building marketing, a modest increase in occupancy costs primarily driven by new format additions and the number of new stores we opened, lower treasury income against a high-performing number last year, and last but most importantly, our investment in talent and tech in the organization as we continued to invest for the future.

Nissan Joseph: Our increase in investment in brand-building marketing, a modest increase in occupancy costs, primarily driven by new format additions and the number of new stores we opened, lower treasury income against a high-performing number last year, and last, but most importantly, our investment in talent and tech in the organization as we continue to invest for the future. Also, as an update, our new distribution center of roughly 250,000 square feet, which launched in March, is now fully operational with all integrations complete.

Speaker #3: Also, as an update, our new distribution center of roughly 250,000 square feet, which launched in March, is now fully operational with all integrations complete.

Speaker #3: As a wrap-up to the opening remarks, I'm extremely pleased to see us drive business without compromising gross margins or productivity per square foot. Our gross margins and EBITDA continue to remain healthy, and we continue to guide to a 15% PAT for the full year.

Nissan Joseph: As a wrap-up to the opening remarks, I'm extremely pleased to see us drive business without compromising gross margins or productivity per square foot. Our gross margins and EBITDA continue to remain healthy, and we continue to guide to a 15% PAT for the full year. With that, I'd like to turn it back to the operator for questions.

Speaker #3: With that, I'd like to turn it back to the operator for questions.

Speaker #1: Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator: Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press * and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press * and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Bidisha Seth with Ambit Capital. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Vidisha Seth with Ambit Capital.

Speaker #1: Please go ahead.

Speaker #4: Hi. I hope I'm audible. My first question is: when we look at the numbers of consumer companies which have reported recently, the growth has largely held up without any material impact from macros, and even their wedding units are on the higher side.

Bidisha Seth: Hi, I hope I'm audible. My first question was, when we look at the numbers of consumer companies which have reported recently, the growth has largely held up without any material impact on macros or even their wedding skewness is on the higher side. Growth has not been as impacted. Can you elaborate a little on the muted growth seen in the months of April and May? Just as a follow-up to this or an extension to this, was there a material divergence in the growth seen in April and May versus June?

Videesha Sheth: Hi, I hope I'm audible. My first question was, when we look at the numbers of consumer companies which have reported recently, the growth has largely held up without any material impact on macros or even their wedding skewness is on the higher side. Growth has not been as impacted. Can you elaborate a little on the muted growth seen in the months of April and May? Just as a follow-up to this or an extension to this, was there a material divergence in the growth seen in April and May versus June?

Speaker #4: Now, growth has not been as impacted. So, can you elaborate a little on the muted growth seen in the months of April and May?

Speaker #4: And just as a follow-up to this, or as an extension to this, was there a material divergence in the growth seen in April and May versus June?

Speaker #3: Yeah, we definitely saw a shift in business, Vidisha. Between April and May, if you compare it to last year, there were significantly fewer wedding dates.

Nissan Joseph: Yeah, we definitely saw a shift in business, Bidisha, between April and May. If you compare it to last year, there was significantly lower wedding dates. In fact, if I recall correctly, the number was zero in April and May, and it rebounded in June. We did see that shift come through. Also, I think there was a distraction. I wouldn't call it an impact of business, but there was a distraction in consumer sentiment as that war prolonged through April and May, which I think a lot of people did not anticipate that to happen. Overall, we did see a little dampen April and May. However, June came back rebounding very well. Just to give you some more color on June, last year in June, we had significant monsoons throughout the country, which, as you know, helped our Crocs business tremendously.

Speaker #3: In fact, if I recall correctly, the number was zero in April and May, and it rebounded in June. So, we did see that shift come through.

Speaker #3: And also, I think there was a distraction. I wouldn't call it an impact on business, but there was a distraction in consumer sentiment as the war prolonged through April and May, which I think a lot of people did not anticipate happening.

Nissan Joseph: I wouldn't call it an impact of business, but there was a distraction in consumer sentiment as that war prolonged through April and May, which I think a lot of people did not anticipate that to happen. Overall, we did see a little dampen April and May. However, June came back rebounding very well. Just to give you some more color on June, last year in June, we had significant monsoons throughout the country, which, as you know, helped our Crocs business tremendously.

Speaker #3: But overall, we did see a little dampened April and May. However, June came back, rebounding very well. And just to give you some more color on June, last year in June we had significant monsoons throughout the country, which, as you know, helped our cross-business tremendously.

Speaker #3: We did not have that this year, so our cross-business, while it didn't do as well pre-monsoon, the rest of the business came back strongly enough to offset that, to come in within our normal range of right at about 15% in net growth.

Nissan Joseph: We did not have that this year, so our Crocs business, while it didn't do as well pre-monsoon, the rest of the business came back strongly enough to offset that to come in within our normal range of right at about 15% in net growth. There was some shift. The good news is, as the monsoons have come on, the Crocs business has performed to plan. It's not like there was anything wrong with Crocs, it's doing well, but it was just a shift from quarter to quarter.

Speaker #3: So, there was some shift. The good news is, as the monsoons have come on, the cross-business has performed to plan. So, it's not like there was anything wrong with cross.

Speaker #3: It's doing well, but it was just a shift from quarter to quarter.

Speaker #4: Sure. So, for growth going forward, do you expect the momentum that you've seen in June to hold up for the remaining quarters?

Bidisha Seth: Sure. Growth going forward, you expect the momentum that you've seen in June to hold up for the remaining quarters?

Videesha Sheth: Sure. Growth going forward, you expect the momentum that you've seen in June to hold up for the remaining quarters?

Speaker #3: Yeah. Of course, we guide to 15% for the year, give or take a couple of points, left or right of that. Late in Q2, we're probably going to see a little bit of shift happening into Q3, because Diwali is coming later this year.

Nissan Joseph: Yeah. Of course, we guide to 15% for the year, give or take a couple of points left or right of that. Late in Q2, we're probably gonna see a little bit of shift happening into Q3 because Diwali is coming later this year. The Diwali shopping season begins a few weeks before, which previous year had spilled into Q2 of last year. This year it's gonna not be there in Q2, but we're more than confident we'll make up for it when we get to Q3 and go forward. We don't expect to see a damp in Q2 by any means, but that would impact some of our growth.

Speaker #3: And the Diwali shopping season begins a few weeks before, which, in the previous year, had fallen into Q2 of last year. This year, it is not going to be there in Q2, but we're more than confident we'll make up for it when we get to Q3 and go forward.

Speaker #3: We don't expect to see a dampened Q2 by any means, but that would impact some of our growth.

Speaker #4: Right. So just in continuation to this, you would also mention that market conditions are improving, and you're seeing even the consumer sentiment improve further.

Bidisha Seth: Just in continuation to this, you also mentioned that market conditions are improving and you're seeing even the consumer sentiment improve further. If you could help us with any indicators or trends that's giving you this confidence.

Videesha Sheth: Just in continuation to this, you also mentioned that market conditions are improving and you're seeing even the consumer sentiment improve further. If you could help us with any indicators or trends that's giving you this confidence.

Speaker #4: So, if you could help us with any indicators or trends that are giving you this confidence.

Speaker #3: Yeah. We operate in multiple price points, right? We operate in multiple price points in India, and also cater to a multitude of customers that want footwear for different shopping needs.

Nissan Joseph: Yeah. We operate in multiple price points, right? We operate in multiple price points in multiple geographies in India, and also catering to multitudes of customers that want footwear for different shopping needs. We see them coming back with demands for the right reasons, for the right wedding occasion, across the price points and across geographies. We're not seeing it being driven by metro cities or just tier 3 cities. We're seeing it being driven across the board. We're not seeing it just come in one or two of our banners. We're seeing it across our banners. Of course, the wedding season goods did peak in June like we anticipated it to. Where demand should come, it is coming. Where demand didn't come, we knew why it wouldn't come. For example, I gave you monsoons.

Speaker #3: And we see them coming back with demand for the right reasons, for the right wearing occasions, across the price points and across geographies. So we're not seeing it being driven by metro cities or just Tier 3 cities.

Speaker #3: We're seeing it being driven across the board. We're not seeing it just come in one or two banners; we're seeing it across our banners.

Nissan Joseph: We're seeing it being driven across the board. We're not seeing it just come in one or two of our banners. We're seeing it across our banners. Of course, the wedding season goods did peak in June like we anticipated it to. Where demand should come, it is coming. Where demand didn't come, we knew why it wouldn't come. For example, I gave you monsoons. When monsoons did come, we saw demand come right back for that product. We're seeing demand in line with what we expect consumers to behave.

Speaker #3: Of course, the wedding season, goods did peak in June, like we anticipated it to. So where demand should come, it is coming. Where demand didn't come, we knew why it wouldn't come.

Speaker #3: For example, I gave you monsoons, right? But when monsoons did come, we saw demand come right back for that product. So we're seeing demand in line with what we expected.

Nissan Joseph: When monsoons did come, we saw demand come right back for that product. We're seeing demand in line with what we expect consumers to behave.

Speaker #3: Consumers to behave.

Speaker #4: Got it. And just one last question. This is pertaining to the e-commerce business. If you could maybe just help double-click on this SOR comment that you mentioned, that kind of dragged down the overall growth for this channel.

Bidisha Seth: Got it. Just last one question. This is pertaining to the e-commerce business. If you could maybe just help double-click on this SOR comment that you mentioned, that that kind of dragged down the overall growth for this channel. Should we look at this high single-digit or low double-digit kind of momentum for the next few quarters for the e-com space?

Videesha Sheth: Got it. Just last one question. This is pertaining to the e-commerce business. If you could maybe just help double-click on this SOR comment that you mentioned, that that kind of dragged down the overall growth for this channel. Should we look at this high single-digit or low double-digit kind of momentum for the next few quarters for the e-com space?

Speaker #4: And should we look at this as high single-digit or low double-digit kind of momentum for the next few quarters for the e-com space?

Speaker #3: So, what happens with the SOR business is you ship products, and then what doesn't sell is returned and swapped out. It's swapped out for new product, right?

Nissan Joseph: What happens with the SOR business is you ship products and then what doesn't sell is returned and swapped out for new product, right? That happens at a certain frequency, but not a regular frequency, right? It just depends on how things sold, how things didn't sell. What could happen, as an example here, is maybe this was the quarter that, let's say in Q1 we shipped out products, and in Q2 we received back the product, but we didn't ship out any additional product. That would dampen it. Our SOR business did grow, but it didn't grow at the same rate as the rest of them, as you can tell. We don't anticipate that to be significant going forward. We anticipate our e-com business to grow well into the double digits on an ongoing basis.

Speaker #3: So that happens at a certain frequency, but not a regular frequency, right? It just depends on how things sold, how things didn't sell. So what could happen, as an example here, is maybe this was the quarter that, let's say in Q1, we shipped out products, and in Q2, we received back the products, but we didn't ship out any additional products.

Speaker #3: That would dampen it. Our SOR business did grow, but it didn't grow at the same rate as the rest of them, as you can tell, right?

Nissan Joseph: Our SOR business did grow, but it didn't grow at the same rate as the rest of them, as you can tell. We don't anticipate that to be significant going forward. We anticipate our e-com business to grow well into the double digits on an ongoing basis.

Speaker #3: We don't anticipate that to be significant going forward. We anticipate our e-com business to grow well into the double digits on an ongoing basis.

Speaker #4: Noted. Sorry, just one more follow-up on this, if I may. You also talked about this conscious effort on reducing discounting, so that is a strategic call that you all have taken, which will sustain even going forward, right?

Bidisha Seth: Noted. Sorry, just one more follow-up on this, if I may. You also talked about this conscious effort on reducing discounting. That is a strategic call that you all have taken, which would sustain even going forward, right?

Videesha Sheth: Noted. Sorry, just one more follow-up on this, if I may. You also talked about this conscious effort on reducing discounting. That is a strategic call that you all have taken, which would sustain even going forward, right?

Nissan Joseph: We want to continue to lower our discounts on e-com. We're not going to do it at the risk of losing new customers that e-com is able to bring into our fold. It's something we're gonna have to manage. It wasn't the reason that the SOR business underperformed singularly. That was a small part of the reason, but I thought to share that color with you.

Speaker #3: We want to continue to lower our discounts on e-com. We're not going to do it at the risk of losing new customers that e-com is able to bring into our fold.

Speaker #3: So, it's something we're going to have to manage. But it wasn't the reason that the SOR business underperformed, singularly. That was a small part of the reason, but I thought to share that color with you.

Speaker #4: Sure. Got it. Thanks a lot. I'll get back to you.

Bidisha Seth: Sure. Got it. Thanks a lot. I'll get back in the queue.

Videesha Sheth: Sure. Got it. Thanks a lot. I'll get back in the queue.

Speaker #1: The next question comes from the line of Samir Gupta with IIFL Capital. Please go ahead.

Operator: The next question comes from the line of Sameer Gupta with IIFL Securities. Please go ahead.

Speaker #5: Good evening, sir, and thank you for taking my question. Firstly, sir, how should one look at margins for this year? Q1 has seen a contraction.

Sameer Gupta: Good evening, sir, and thanks for taking my question. Firstly, sir, how should one look at margins for this year? Q1 has seen a contraction. This is largely due to higher employee and other expenses. We have always maintained that large part of these are variable in nature. Secondly, by the look of things, it is likely to be an inflationary year by all means, and major cost pressures, at least on the RM side, are yet to hit the P&L. Would you say that while we are maintaining our 30% plus kind of a margin guidance, but it might be a little lower, there is a chance this year? There are developments that are playing out to that way.

Speaker #5: This is largely due to higher employee and other expenses. And we have always maintained that a large part of these are variable in nature. Secondly, by the look of things, it is likely to be an inflationary year by all means.

Sameer Gupta: Secondly, by the look of things, it is likely to be an inflationary year by all means, and major cost pressures, at least on the RM side, are yet to hit the P&L. Would you say that while we are maintaining our 30% plus kind of a margin guidance, but it might be a little lower, there is a chance this year? There are developments that are playing out to that way.

Speaker #5: And major cost pressures, at least on the RM side, are yet to hit the P&L. So, would you say that while we are maintaining our 30% plus kind of margin guidance, it might be a little lower? Is there a chance this year?

Speaker #5: There are developments that are playing out that way.

Speaker #3: So, Samir, broadly, we have guided gross margins in that range of around 55% to 57%. We are above that. We are confident of maintaining that range.

Nissan Joseph: Sameer, broadly, we have guided gross margins in that range of around 55% to 57%, we are above that.

Kaushal Parekh: Sameer, broadly, we have guided gross margins in that range of around 55% to 57%, we are above that. We should maintain. We are confident of maintaining that range. EBITDA in that 30-ish range. Our PAT has come around 13%. We have guided for somewhere close to 13% to 15%. We feel confident that by the end of the year, we should be around that range.

Kaushal Parekh: We should maintain. We are confident of maintaining that range. EBITDA in that 30-ish range. Our PAT has come around 13%. We have guided for somewhere close to 13% to 15%. We feel confident that by the end of the year, we should be around that range.

Speaker #3: EBITDA is in that 30-ish range. Our TAT has come around 13%. We have guided for somewhere close to 13 to 15 percent. We feel confident that by the end of the year, we should be around that range.

Speaker #5: Got it. Okay, the second question is related to margins. Minimum wage hikes in certain states—first, is this a relevant impact, given the scale and the kind of employees we employ?

Sameer Gupta: Got it. Okay. Second question is related to margins. Minimum wage hikes in certain states. One, is it a relevant impact given the scale and given the kind of employees we employ? Two, is the full impact, if there are any, is it there in Q1 or we are likely to see that from Q2 onwards?

Speaker #5: And two, is the full impact if there are any, is it there in 1Q or likely to see we are likely to see that from 2Q onwards?

Speaker #3: So obviously, wherever Samir there are changes in minimum wages, that gets implemented as soon as the notification is out. Over a period of time, if we see increase in minimum wages, which we are hearing, it may happen in few states.

Kaushal Parekh: Obviously, wherever, Samir, there are changes in minimum wages, that gets implemented as soon as the notification is out. Over a period of time, if we see an increase in minimum wages, which we are hearing it may happen in few states, obviously, we will have to adhere to it. Good thing is, at this point in time, the salary that we pay to our front end is generally above the minimum wages prevailing in those states. So we have some cushion, but over a period of time, obviously, we would want to make sure that our compensation is right there in the top-notch retailers bracket, so that we will try to continue. As and when the changes happen, the impact would come in.

Speaker #3: Obviously, we'll have to adhere to it. The good thing is, at this point in time, the salary that we pay to our front end is generally above the minimum wages prevailing in those states.

Speaker #3: So, we have some questions. But over a period of time, obviously, we would want to make sure that our compensation is right there in the top-notch retailer bracket, so that we'll try to continue.

Kaushal Parekh: So we have some cushion, but over a period of time, obviously, we would want to make sure that our compensation is right there in the top-notch retailers bracket, so that we will try to continue. As and when the changes happen, the impact would come in.

Speaker #3: But as and when the changes happen, the impact will come in.

Speaker #5: Got it. Last question, if I can squeeze it in. On fillers—so there was an expectation for EBO additions in this format by the end of FY26, but we are not seeing that.

Sameer Gupta: Got it. Last question, if I can squeeze in. On Fila. There was an expectation for EBO additions in this format by the end of FY2026, but we are not seeing that. Would you say, given wherever the BIS related developments are, and assuming that they remain where they are, is FY2027 still going to be a work in progress for Fila, or do you see something changing here?

Speaker #5: So would you say, given wherever the BIS-related developments are, and assuming that they remain where they are, is FY27 still going to be a work in progress for Fila, or do you see something changing here?

Speaker #3: So, we have opened three new EBOs already—brand new EBOs—and we closed one of the old ones that we had. If you recall, Samir, we had two that were ongoing from the acquisition that we did.

Nissan Joseph: We have opened three new EBOs already, brand new EBOs, and we closed one of the old ones that we had. If you recall, Samir, we had two that were ongoing from the acquisition that we did. We closed one of them, but we opened three new Fila stores. The stores are doing well. We would like to get them stable even more. As you know, these things take a little bit of time to incubate. Are we a little bit behind schedule? Yes. Are we on track to get back on schedule? Well, we are on track to get back on a growth path with Fila in the near future. It is still work in progress. It is not an easy thing to revive a brand that has been on discount for almost 18 months to 24 months.

Speaker #3: We closed one of them, but we opened three new Fila stores. The stores are doing well. We'd like to get them even more stable.

Speaker #3: And, as you know, these things take a little bit of time to incubate. Are we a little bit behind schedule? Yes. Are we on track to get back on schedule? Yes.

Nissan Joseph: As you know, these things take a little bit of time to incubate. Are we a little bit behind schedule? Yes. Are we on track to get back on schedule? Well, we are on track to get back on a growth path with Fila in the near future. It is still work in progress. It is not an easy thing to revive a brand that has been on discount for almost 18 months to 24 months. The three stores we've opened, they've also been opened geographically spread, so we can read how they do in different markets. We're pleased to see the results come through those stores.

Speaker #3: Well, we're on track to get back on a growth path with Fila in the near future. It's still a work in progress. It's not an easy thing to revive a brand that has been on discount for almost 18 to 24 months.

Speaker #3: But the three stores we've opened, they've also been geographically spread so we can read how they do in different markets. And we're pleased to see the results coming through from those stores.

Nissan Joseph: The three stores we've opened, they've also been opened geographically spread, so we can read how they do in different markets. We're pleased to see the results come through those stores.

Speaker #5: Any timeline for this pilot and strategy going forward? Second half of FY27 should see meaningful acceleration here? Anything on that?

Sameer Gupta: Any timeline for this pilot and strategy going forward? Like the second half of FY27 should see meaningful acceleration here? Anything like that?

Speaker #3: A good pilot should—you want to go through the seasons in a good pilot to ensure that you've seen it all. But I would say, towards the end of FY27, you should start seeing an acceleration.

Nissan Joseph: A good pilot, you want to go through the seasons in a good pilot to ensure that you've seen it all. I would say towards the end of FY27, you should start seeing an acceleration.

Speaker #5: Got it, sir. That's all from me. Thank you, and all the best.

Sameer Gupta: Got it, sir. That's all from me. Thanks, all the best.

Speaker #3: Thanks, Samir.

Nissan Joseph: Thanks, Sameer.

Speaker #1: The next question comes from the line of Rahul Agarwal with Ikigai Asset. Please go ahead.

Operator: The next question comes from the line of Rahul Agarwal with Ikigai Asset. Please go ahead.

Rahul Agarwal: Hi. Good afternoon, and thank you for the opportunity. Sir, just question on new store openings. On a broader level, of course, you commented that it is just a blip, more quarterly variation, maybe some cool off from the very large Q4 we saw. Whatever color on the pipeline and confidence you could give on how do you look at the full year in terms of new store openings, that will help. A sub question to that was on the MetroActiv and Walkway. If you just comment specifically on these two in terms of how does the new pipeline look like? Thank you.

Speaker #6: Hi, good evening, good afternoon, and thank you for the opportunity. Sir, just a question on new store openings, right? On a broader level, of course, you commented that it's just a blip—more of a quarterly variation, maybe some cool-off from the very large Q4 we saw.

Speaker #6: But whatever color you can provide on the pipeline and your confidence, how do you look at the full year in terms of new store openings?

Speaker #6: That will help. And a sub-question to that was, on the Metro Active and Walkway, if you could comment specifically on these two in terms of how does the new pipeline look?

Speaker #6: Thank you.

Speaker #3: All right, so thank you. Thank you, Raul. That's three questions, right, that we've got to take from you. The first question on the number of new stores opened—you're right, it's just a little bit of a blip.

Nissan Joseph: Thank you, Rahul. That's three questions we got to take from you. The first question on the number of new stores open. You are right, it is just a little bit of a blip, I think the reality in India is that demands far outstrip supply. As people want to expand stores and expand into markets. That's the reality we face. Given that reality, we are always going to have a lot of discipline in the types of stores we open from a financial perspective. We do not want to open stores for the sake of opening stores. We would rather not open stores than open profit-losing stores. That's number one. Sometimes those opportunities come in an ebb and tide, so to speak.

Speaker #3: But I think the reality in India is that demand far outstrips supply, right? As people want to expand stores and expand into markets, that's the reality we face.

Speaker #3: Given that reality, we're always going to have a lot of discipline in the types of stores we open from a financial perspective. We don't want to open stores for the sake of opening stores.

Nissan Joseph: Given that reality, we are always going to have a lot of discipline in the types of stores we open from a financial perspective. We do not want to open stores for the sake of opening stores. We would rather not open stores than open profit-losing stores. That's number one. Sometimes those opportunities come in an ebb and tide, so to speak.

Speaker #3: We'd rather not open stores than open profit-losing stores. So that's number one. And sometimes those opportunities come in an ebb and tide, so to speak.

Speaker #3: And when the tide comes in, as you can tell in the previous year, there were quarters that we opened quite a few stores, and those quarters we didn't open as many stores, right?

Nissan Joseph: When the tide comes in, as you can tell in the previous year, there were quarters that we opened quite a few stores, and there's quarters we didn't open as many stores. I think you'll see that pattern continue. As far as the rest of the year goes, I don't see any reason why we shouldn't be able to get to the usual triple-digit store openings. That's not the issue. The issue is we want to make sure we're opening the right stores. MetroActiv, to take that question on. We've opened three stores. A couple of them have done well. One of them hasn't. We know why, which is the good news. The bad news, it didn't do well. It's also been impacted a little bit by the BIS issues that we face at Foot Locker. However, those issues are being mitigated slowly.

Speaker #3: I think you'll see that pattern continue. As far as the rest of the year goes, I don't see any reason why we shouldn't be able to get to the usual triple digits of store openings.

Speaker #3: That's not the issue. The issue is we want to make sure we're opening the right stores. Metro Active, to take that question on, we've opened three stores.

Nissan Joseph: The issue is we want to make sure we're opening the right stores. MetroActiv, to take that question on. We've opened three stores. A couple of them have done well. One of them hasn't. We know why, which is the good news. The bad news, it didn't do well. It's also been impacted a little bit by the BIS issues that we face at Foot Locker. However, those issues are being mitigated slowly.

Speaker #3: A couple of them have done well. One of them hasn't. We know why, which is the good news. The bad news is it didn't do well.

Speaker #3: It's also been impacted a little bit by the BIS issues that we faced at Foot Locker. However, those issues are being mitigated slowly.

Speaker #3: I think you will start seeing us also test a different type of expansion strategy with Metroactive before you see that come to life fully, right?

Nissan Joseph: I think you would start seeing us also test a different type of expansion strategy with MetroActiv before you see that come to life fully. That's what's happening on that. Our Walkway stores, we had a base of roughly about 70 stores, and we opened over 30 stores, so there was a 50% growth rate. A lot of those stores are doing good. Some of them aren't. Again, like I said, the bad news is some of them aren't doing good, but the good news is we know why it's not doing good. As you grow formats, and you'll see that even with our FILA business. You open stores, you learn, you reiterate, you open stores, you learn, you reiterate. There's no one-size-fits-all model seldom that works across the country, especially when you're in an embryonic stage like us.

Speaker #3: So that's what's happening on that. Our Walkway stores—we had a base of roughly about 70 stores, and we opened over 30 stores, so there was a 50% growth rate.

Speaker #3: A lot of those stores are doing well. Some of them aren't. Again, like I said, the bad news is some of them aren't doing well, but the good news is we know why they're not doing well.

Nissan Joseph: Again, like I said, the bad news is some of them aren't doing good, but the good news is we know why it's not doing good. As you grow formats, and you'll see that even with our FILA business. You open stores, you learn, you reiterate, you open stores, you learn, you reiterate. There's no one-size-fits-all model seldom that works across the country, especially when you're in an embryonic stage like us.

Speaker #3: And as you grow formats, and you'll see that even with our Fila business—you open stores, you learn, you reiterate; you open stores, you learn, you iterate.

Speaker #3: There's no one-size-fits-all model that works across the country, especially when you're in an embryonic stage like us. So we continue to believe in the potential for the Walkway brand in India, given that it caters to a lower base in the pyramid.

Nissan Joseph: We continue to believe in the potential for the Walkway brand in India, given that it caters to a lower base in the pyramid, and it's just a matter of consistently working at that. We remain committed to Walkway being a growth driver for us.

Speaker #3: And it's just a matter of consistently working at that. So, we remain committed to Walkway being a growth driver for us.

Speaker #6: And on Metroactive?

Rahul Agarwal: On MetroActiv?

Speaker #3: I did mention Metroactive. That's where we have opened three stores. A couple of them have done well; one hasn't. And we also got impacted a little by the BIS.

Nissan Joseph: I did mention MetroActiv. That's where we have opened three stores. A couple of them have done well, one hasn't. We also got impacted a little by the BIS.

Speaker #6: Okay, got it, sir. Thank you so much, and best wishes.

Rahul Agarwal: Okay, got it, Nishit. Thank you so much, and best wishes.

Nissan Joseph: You're welcome.

Speaker #3: You're welcome.

Speaker #1: A reminder to all participants: You may press star and one to ask a question. The next question comes from the line of Omang Mehta with Kotak Securities.

Operator: A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Umang Mehta with Kotak Securities. Please go ahead.

Speaker #1: Please go ahead.

Umang Mehta: Hi, sir. Thank you for the opportunity. Sir, first question was on the quarter, the deconstruction that you did. It would imply that June grew more than 20%, is my assumption. Has that kind of momentum sustained in July? Any color you can share on the same?

Speaker #7: Hi, sir. Thank you for the opportunity. So, the first question was on the quarter—the deconstruction that you did. It would imply that June grew more than 20%. Is my assumption correct?

Speaker #7: Has that kind of momentum sustained in July? Any color you can share on the same?

Speaker #3: Yeah. Amang, you know we don't give forward-looking statements. Let me just leave it at this: We feel reassured by seeing the demand trends out there across the multiple geographies that we operate in, and the multiple banners that we operate in.

Nissan Joseph: Yeah. Umang, you know we don't give forward-looking statements. Let me just leave it at this. We feel reassured by seeing the demand trends out there across the multiple geographies that we operate in, the multiple banners that we operate in. The consumer is responding correctly. When we run promotional campaigns in our Mochi stores that we think should resonate with a certain customer cohort, it does. When it rains, the Crocs business goes crazy. All the behaviors that we see in a successful year are there for us, and that's the best I could tell you.

Speaker #3: The consumer is responding correctly. So, when we run promotional campaigns in our Metro Emoji stores that we think should resonate with a certain customer cohort, it does.

Speaker #3: When it rains, the Crocs business goes crazy. All the behaviors that we see in a successful year are there for us, and that's as best as I could tell you.

Speaker #7: Sure. So a related question was: if I look at the full year in terms of wedding dates, this year is materially lower than last year in terms of the calendar year.

Umang Mehta: Sure. Sir, a related question was, if I see the full year, right? In terms of wedding dates, this year is materially lower than last in terms of calendar year. Do you think this could be a headwind from a full-year growth perspective, or do you think that people would still want to dates are lower, but they still want to get it done, and it won't be a headwind by the year-end?

Speaker #7: Do you think this could be a headwind from a full-year growth perspective, or do you think that people would still want to—I mean, dates are lower, but they still want to get it done, and it won't be a headwind by year-end?

Nissan Joseph: I think there's a couple of factors that go behind the wedding dates. One of them is the dispersion of wedding dates inside a month, right? The more dispersed they are, the more weddings there are because people can have more weddings, they can get to more weddings. The more clustered they are, things tend to book up quite a bit. When I looked at it last, I did not see a concern for this year of a significant nature. What I did see was a shift in Diwali coming up. Again, these are things we have to plan for, right? I don't see that being as a major driver like it was specifically last year through, I believe, Q2. It was a significant hit because it was a vastly different number of weddings the previous year versus that year.

Speaker #3: I think there are a couple of factors that go behind the wedding dates. One of them is the dispersion of wedding dates within a month, right?

Speaker #3: So the more dispersed they are, the more weddings there are, because people can have more weddings—they can get to more weddings. The more clustered they are, things tend to book up quite a bit.

Speaker #3: When I looked at it last, I did not see a concern for this year—of a significant nature. But what I did see was a shift in Diwali coming up.

Nissan Joseph: When I looked at it last, I did not see a concern for this year of a significant nature. What I did see was a shift in Diwali coming up. Again, these are things we have to plan for, right? I don't see that being as a major driver like it was specifically last year through, I believe, Q2. It was a significant hit because it was a vastly different number of weddings the previous year versus that year. We don't see that for this coming year, Umang.

Speaker #3: Again, these are things we have to plan for, right? So I don't see that being a major driver like it was. Specifically, last year through, I believe, Q2, it was a significant hit because it was a vastly different number of weddings the previous year versus that year.

Speaker #3: But we don't see that for this coming year, Amang.

Nissan Joseph: We don't see that for this coming year, Umang.

Speaker #7: Got it, sir. And just one last question on BIS. So, if we look at footwear imports into India and in terms of approved BIS licensees, footwear imports were declining for the last three years.

Umang Mehta: Got it, sir. Just one last one on BIS. If you look at footwear imports into India, in terms of approved BIS licensees, footwear imports were declining for last three years. Suddenly this year, we started to see growth coming. Even in terms of approved licenses, we've seen an improvement over the last one year. Are you hearing anything from your suppliers that maybe this is kind of coming to a close now in terms of the disruption?

Speaker #7: Suddenly, this year we started to see growth coming, and even in terms of approved licenses, we've seen an improvement over the last one year.

Speaker #7: Are you hearing anything from your suppliers that maybe this is coming to a close now, in terms of the disruption?

Speaker #3: I think there are new developments every so often with the BIS process, so you're right. There are factories being approved, but we've also seen that they've been slow, if not put a stop, to certain renewals.

Nissan Joseph: I think there are new developments every so often with the BIS process. You're right, there are factories being approved. We've also seen that they've been slow, if not put a stop to certain renewals, with no visibility of when they'll continue renewing those licenses again. That puts a lot of operations on a little bit of a tizzy as to how to manage through this. It's not so much the regulations of BIS, it's the consistency and how it gets implemented that we have to deal with. We're not saying we agree or disagree with anything, there is some erraticness in whether factories get approved or not. There's very seldom, very little notice whether they're going to be or not. We have to duck and weave as we go through it.

Speaker #3: With no visibility of when they'll continue renewing those licenses again, that puts a lot of operations in a little bit of a tizzy as to how to manage through this.

Speaker #3: So it's not so much the regulations of BIS—it's the consistency and how it gets implemented that we have to deal with. We're not saying we agree or disagree with anything.

Nissan Joseph: It's not so much the regulations of BIS, it's the consistency and how it gets implemented that we have to deal with. We're not saying we agree or disagree with anything, there is some erraticness in whether factories get approved or not. There's very seldom, very little notice whether they're going to be or not. We have to duck and weave as we go through it. We're not out of the woods yet, specifically for high-end product in athletic.

Speaker #3: But there is some erraticness in whether factories get approved or not, and there's very seldom, very little notice whether they're going to be or not.

Speaker #3: So, we have to duck and weave as we go through it. But we're not out of the woods yet, specifically for high-end product in athletic.

Nissan Joseph: We're not out of the woods yet, specifically for high-end product in athletic.

Speaker #7: Understood. Thank you so much, and all the best.

Umang Mehta: Understood. Thank you so much, and all the best.

Speaker #3: Thanks, Amang.

Nissan Joseph: Thanks, Umang.

Speaker #1: The next question comes from the line of Saurabh Kundan with Goldman Sachs. Please go ahead.

Operator: The next question comes from the line of Saurabh Kundal with Goldman Sachs. Please go ahead.

Speaker #7: Yeah, thank you. My question is around Clarks and Nissan. In the NDOs where you have introduced Clarks products, have you seen an uptick in the sales that you get from those stores, or is it just replacing some earlier sales that used to happen?

Saurabh Kundal: Yeah, thank you. My question is around Clarks brand. In the MBOs where you have introduced Clarks products, have you seen an uptick in the sales that you get from those stores, or it just replaces some earlier sales that used to happen? What's the dynamic there? Second question is also related to Clarks. H2 of this year, I think you've mentioned that you will start opening MBOs. If you could give us some sort of a guidance on what could be the scale-up in the case of Clarks banner, assuming that it will be faster than the sports and athleisure brands that you have.

Saurabh Kundan: Yeah, thank you. My question is around Clarks brand. In the MBOs where you have introduced Clarks products, have you seen an uptick in the sales that you get from those stores, or it just replaces some earlier sales that used to happen? What's the dynamic there? Second question is also related to Clarks. H2 of this year, I think you've mentioned that you will start opening MBOs. If you could give us some sort of a guidance on what could be the scale-up in the case of Clarks banner, assuming that it will be faster than the sports and athleisure brands that you have.

Speaker #7: So what's the dynamic there? And the second question is also related to Clarks. In the second half of this year, I think you've mentioned that you will start opening NDOs.

Speaker #7: What kind of, I mean, if you could give us some sort of guidance on what could be the scale-up in the case of the Clarks banner?

Speaker #7: Assuming that it will be faster than the sports and athlete brands that you have.

Speaker #3: Yeah, Saurabh, thanks for the question. Just so you know, we launched Clarks Women's in late calendar last year, and it did extremely well. We launched it in about 200 of our MBO doors.

Nissan Joseph: Yeah. Saurabh, thanks for the question. Just so you know, we launched Clarks Women's in late calendar last year, and it did extremely well. We launched it in about 200 of our MBO doors. This spring, we have gone to about 350 doors. By the end of this year, we hope to take it to 700 of our doors, right? That gives you some color about the success of Crocs. I think what's specifically exciting about Clarks, I'm sorry. What's specifically exciting about it also, it's not cannibalistic, and we know this from our consumer data. We see the kind of consumers buying Clarks. We see new consumers coming into the fold. We see consumers that never bought that kind of a sandal from us buying one or that kind of a shoe from us. Early this year, we launched men's collection in our stores.

Speaker #3: This spring, we have gone to about 350 doors. By the end of this year, we hope to take it to 700 of our doors, right?

Speaker #3: So that gives you some color about the success of Crocs. I think what's specifically exciting about Clarks—I'm sorry, what's specifically exciting about it also—is it's not cannibalistic, and we know this from our consumer data.

Nissan Joseph: What's specifically exciting about it also, it's not cannibalistic, and we know this from our consumer data. We see the kind of consumers buying Clarks. We see new consumers coming into the fold. We see consumers that never bought that kind of a sandal from us buying one or that kind of a shoe from us. Early this year, we launched men's collection in our stores.

Speaker #3: We see the kind of consumers buying Clarks. We see new consumers coming into the fold. We see consumers that never bought that kind of sandal from us buying one, or that kind of shoe from us, right?

Speaker #3: Earlier this year, we launched our men's collection in our stores. Again, we launched it in not more than 100 of our doors. That has surprisingly done well.

Nissan Joseph: Again, we launched it in not more than 100 store of our doors. That has surprisingly done well. Like I mentioned for the women's range, very similarly, it's not cannibalistic to neither the Metro or the Da Vinchi nor the Mochi or the Fontini brand. It seems to attract a consumer that is a brand loyalist. We're happy to see that. We will be opening Clarks stores beginning Q3 of this year. Once we get that machine going, you can definitely see that open at a much faster pace than we've done anything except maybe Crocs 5 years ago. You know, with the Crocs stores, we took off on how many stores we opened within a short period of time. I think the runway for Clarks in India is probably somewhere in the 100 store up to 150 store range in the foreseeable future.

Speaker #3: And like I mentioned for the women's range, very similarly, it's not cannibalistic to either the Metro or the Da Vinci, nor the Mochi or the Fontini brands.

Speaker #3: It seems to track the consumer that is a brand loyalist, so we're happy to see that. We will be opening Clarks stores beginning Q3 of this year.

Speaker #3: And once we get that machine going, you can definitely see that open at a much faster pace than we've done anything, except maybe Clarks five years ago.

Nissan Joseph: Once we get that machine going, you can definitely see that open at a much faster pace than we've done anything except maybe Crocs 5 years ago. You know, with the Crocs stores, we took off on how many stores we opened within a short period of time. I think the runway for Clarks in India is probably somewhere in the 100 store up to 150 store range in the foreseeable future.

Speaker #3: As you know, with the Clarks stores, we took off in terms of how many stores we opened within a short period of time. I think the runway for Clarks in India is probably somewhere in the 100-store to 150-store range in the foreseeable future.

Speaker #3: Of course, that will continue to grow as India continues to economically get stronger, but also as rising aspirations come through. I was just trying to give you some color going forward.

Nissan Joseph: Of course, that will continue to grow as India continues to economically get stronger, but also have rising aspirations come through. I was just trying to give you some color going forward. The other reason we feel relatively strong about Clarks and the future of Clarks and their EBOs, Saurabh, is their production is all moved to India for us. They've opened up an entire production supply chain here that caters just to our markets, for our markets. They're able to be quite nimble with it as well, the way they structured it. Now that gives us even bigger confidence to go after investing in the business.

Speaker #3: The other reason we feel relatively strong about Clarks and the future of Clarks and the EBOs, Saurabh, is their production is all moved to India for us, right?

Speaker #3: They've opened up an entire production supply chain here that caters just to our markets—for our markets. They're able to be quite nimble with it as well, the way they've structured it.

Speaker #3: So now, that gives us even bigger confidence to go after investing in the business.

Manish Poddar: Okay. Thank you.

Saurabh Kundan: Okay. Thank you.

Speaker #7: Okay. Thank you.

Speaker #3: Thanks, Saurabh.

Nissan Joseph: Thanks, Saurabh.

Speaker #1: The next question comes from the line of Manish Bodhar with Invesco AMC. Please go ahead.

Operator: The next question comes from the line of Manish Poddar with Invesco AMC. Please go ahead.

Speaker #7: Hello?

Manish Poddar: Hello.

Speaker #3: Hi, Manish.

Nissan Joseph: Hi, Manish.

Speaker #7: Hey. Hi, Nisanjit. I have just one question. Given the entire context of how demand is going, how is the outlook looking for FY27?

Manish Poddar: Hey, Nipun. I have just one question. Given the entire context of how demand is going across, how is the outlook looking like for FY27? I understand you mentioned about the mid-teen aspiration, but I'm just trying to think of when I look at the sort of interventions you are trying to do in terms of multiple formats. There were BIS issues in the past. In my understanding, things at ground are improving at the margin. Shouldn't 20% growth be like the baseline? I'm just trying to think why are we still around that, let's say, 13, 14, 15, 16 ballpark that's where we are thinking of. Are things on ground getting worse? Just wanted to get sense from that perspective. Thanks.

Speaker #7: I understand you mentioned the mid-term aspiration, but I'm just trying to think—when I look at the sort of interventions you are trying to do in terms of multiple formats—there were BIS issues in the past.

Speaker #7: Shouldn't—now, in my understanding—things on the ground are improving at the margin. So, shouldn't 20% growth be the baseline? I'm just trying to think: why are we still around that, let's say, 13%, 14%, 15%, 16% ballpark—that's where we are thinking of? Are things on the ground getting worse?

Manish Poddar: In my understanding, things at ground are improving at the margin. Shouldn't 20% growth be like the baseline? I'm just trying to think why are we still around that, let's say, 13, 14, 15, 16 ballpark that's where we are thinking of. Are things on ground getting worse? Just wanted to get sense from that perspective. Thanks.

Speaker #7: Just wanted to get a sense from that perspective. Thanks.

Speaker #3: Manish, I do want to use this time to give a shout-out to the team. Over the last four quarters, we've outperformed all our peers in growth, right?

Nissan Joseph: Manish, I do want to use this time to give a shout-out to the team. Over the last four quarters, we've outperformed all our peers in growth. While you've come to take these 15% growths from Metro for granted, it definitely has been, I don't know what the numbers look like in the last quarter, but it has been for the four quarters prior to that, an outlier on the positive side. Now you want me to go outside the outlier box too, I take it, but I understand where you're coming from.

Speaker #3: So, while you've come to take this 15% growth from Metro for granted, it definitely has been— I don't know what the numbers look like in the last quarter, but it has been, for the four quarters prior to that, an outlier on the positive side.

Speaker #3: Now you want me to go outlier—outside the outlier box too. I take it. But I understand where you're coming from. Listen, Manish, it's not that we don't believe that 20% is possible.

Nissan Joseph: Listen, Manish, it's not that we don't believe that 20% is possible, and it's not that we operate like, Oh, we're not going to try for that 20%. Those are the kind of things that get you in trouble also, because if and when you're wrong, then you're hung with inventory, and you got to put it all on sale, and then you got to lose a lot of your brand share. We would rather have measured growth. There'll be quarters that blip up and do that 20. If you go after 20 and you only come in with 15, that's absolutely fatal to a business. You would rather go after 12 and come in at 15. You'd rather go after 15 than come in at 20, than go after 20 and come in at 15.

Speaker #3: And it's not that we operate like, "Oh, we're not going to try for that 20%." But those are the kind of things that get you in trouble also, because even when you're wrong, then you're hung with inventory, and you've got to put it all on sale, and then you've got to lose a lot of your brand share.

Speaker #3: We would rather have measured growth, right? And there'll be quarters that blip up and do that 20. But if you go after 20 and you only come in with 15, that's absolutely fatal to a business.

Nissan Joseph: We would rather have measured growth. There'll be quarters that blip up and do that 20. If you go after 20 and you only come in with 15, that's absolutely fatal to a business. You would rather go after 12 and come in at 15. You'd rather go after 15 than come in at 20, than go after 20 and come in at 15.

Speaker #3: You would rather go after 12 and come in at 15. You'd rather go after 15 and come in at 20, than go after 20 and come in at 15.

Speaker #3: So, when we guide to those numbers, I don't want you to think for a moment that that's what we aspire to, or that we're not constantly trying to figure out how to get there.

Nissan Joseph: When we guide to those numbers, I don't want you to think for a moment that's what we aspire to or that's what we're not constantly trying to figure out how to get to there. We also got to be prudent and responsible in how we run our business.

Speaker #3: But we also have to be prudent and responsible in how we run our business.

Speaker #7: Okay. Because the way I was looking at it, when you look at your two-year target, this quarter also—and even in the last four quarters—it's been 8%, 13%, 15%, and 12% this quarter.

Manish Poddar: Okay. Because the way I was looking at it, when you look at your two-year tracker this quarter also, and even in the last four quarters, it's been 8%, 13%, 15%, and 12% this quarter. I was just trying to think through, and I'm not taking away anything of this growth in this macro environment. I was more trying to understand, are things on ground improving at the margin or are things getting worse at the margin? That's what I was trying to get to in the overall context of things.

Speaker #7: So I was just trying to think through, and I'm not taking away anything from this growth in this macro environment. I was more trying to understand, let's say, are things on the ground improving at the margin, or are things getting worse at the margin?

Speaker #7: That's what I was trying to get to, in the overall context of things.

Speaker #3: Well, they're definitely improving. I think what we are most pleased about is the lumpiness of business that happened after COVID, right? So, yeah, the COVID bump up, then you had it go down, then you had it come back a little bit, then you had a very lumpy business trail.

Nissan Joseph: Well, they're definitely improving. I think what we are most pleased about is the lumpiness of business that happened after COVID. You had the COVID bump up, then you had it go down, then you had it come back a little bit. You had a very lumpy business trail. What we're seeing now is a very steady 3 quarters worth of double-digit growth. You never saw that from us in the 6 to 8 quarters before that. It's just stabilizing. It takes a little bit for everything to stabilize, but we feel pretty optimistic as we look to the future. Also with some of the investments we're making. It's not like we've been sitting on our thumbs through this time saying it's all lumpy business. We've been making significant investments. We've been trying a lot of new things. We're investing in marketing, as I keep saying.

Speaker #3: What we're seeing now is a very, very steady three quarters' worth of double-digit growth. You never saw that for much in the six to eight quarters before that, right?

Speaker #3: So, it's just stabilizing. It takes a little bit for everything to stabilize, but we feel pretty optimistic as we look to the future.

Speaker #3: And also, with some of the investments we're making, right, it's not like we've been sitting on our thumbs through this time saying it's all lumpy business.

Nissan Joseph: Also with some of the investments we're making. It's not like we've been sitting on our thumbs through this time saying it's all lumpy business. We've been making significant investments. We've been trying a lot of new things. We're investing in marketing, as I keep saying. All of these things, there are hits, there are misses, when there's a hit, you try to double down. When there's a miss, you try to course correct.

Speaker #3: We've been making significant investments. We've been trying a lot of new things. We're investing in marketing, as I keep saying. And in all of these things, there are hits and there are misses.

Nissan Joseph: All of these things, there are hits, there are misses, when there's a hit, you try to double down. When there's a miss, you try to course correct.

Speaker #3: And when there's a hit, you try to double down. When there's a miss, you try to course correct.

Speaker #7: Just one point, if I can ask more. Let's say, in terms of footfalls versus conversion—this matrix—let's say, two quarters back versus now, if you can probably qualitatively give us some idea on these two variables. How are they now versus, let's say, two quarters or four quarters back?

Manish Poddar: Just one point, if I can ask more. Nipun, in terms of footfalls versus conversion. This metric, let's say 2 quarters back versus now, if you can, let's say probably maybe qualitatively give us some idea on these two variables, how are they now versus, let's say, 2 quarters, 4 quarters back, just to get a sense of the buoyancy. Thanks.

Speaker #7: Just to get a sense of the currency. Thanks.

Speaker #3: Yeah. So, I think one of the drivers that we have helping our sales is our conversion numbers, right? Our conversions are going up, which means our total bills are also going up at the same time, showing that there's traffic.

Nissan Joseph: Yeah. I think one of the drivers that we have helping our sales is our conversion numbers. Our conversions are going up which means our total bills are also going up at the same time, showing that there's traffic. We also measure new customers coming into our doors to somewhat gauge the efficacy of our marketing initiatives. That is also looking good. What I'm getting at is when we pull levers and we expect certain results, those results are coming in line along what we expected. That hasn't always been the case in these last 10 quarters since COVID. That's why I feel optimistic about the business, Manish, but to now go and put a number against that, I don't think is how we operate.

Speaker #3: We also measure new customers coming in through our doors to somewhat gauge the efficacy of our marketing initiatives. That is also looking good. So, what I'm getting at is, when we pull levers and we expect certain results, those results are coming in line with what we expected.

Nissan Joseph: What I'm getting at is when we pull levers and we expect certain results, those results are coming in line along what we expected. That hasn't always been the case in these last 10 quarters since COVID. That's why I feel optimistic about the business, Manish, but to now go and put a number against that, I don't think is how we operate.

Speaker #3: And that hasn’t always been the case in these last 10 quarters since COVID, right? So that’s why I feel optimistic about the business, Manish.

Speaker #3: But to now go and put a number against that, I don't think is how we operate.

Speaker #7: Okay. No, no, no worries. Thank you so much.

Manish Poddar: Okay. No worries. Thank you so much.

Speaker #1: The next question comes from the line of Pradna Junjunwala with Elara Capital. Please go ahead.

Operator: The next question comes from the line of Prerna Jhunjhunwala with Elara Capital. Please go ahead.

Speaker #2: Thank you for the opportunity. I just wanted to understand the structure that you are now going to operate in, as I saw that you've appointed a Chief Business Officer for the athleisure or sports category.

Prerna Jhunjhunwala: Thank you for the opportunity. Just wanted to understand the structure that you are now going to operate, as I saw that you've appointed a Chief Business Officer for athleisure or sports category. Could you share some thoughts on how this appointment will make a difference in these businesses?

Speaker #2: Could you share some thoughts on how this appointment would make a difference in these businesses?

Speaker #3: Yeah. So, we operate with four verticals. We operate with the vertical of our core business, which is Metro and Mochi. We operate the value vertical, which is Walkway and Shoe Depot.

Nissan Joseph: Yeah, Prerna. We operate with four verticals. We operate with the vertical of our core business, which is Metro and Mochi. We operate the value vertical, which is Walkway and Shoe Depot. We operate the strategic brands, which is the Crocs, the Clarks, and the FitFlops of the world. We operate the Sports Division. We believe each of those verticals have a significant potential and runway for growth, a significant potential to contribute to profitable growth for us as we look to the future. Hence thought it was important that we get focused to those verticals, by adding some help. You're right, we did add a Chief Business Officer for our sports vertical. We did add a President for our Metro Mochi business. We have our Chief Operating Officer taking care of our value brands and our strategic brands.

Speaker #3: We operate the strategic brands, which are the Clarks and the FitFlops of the world. And then we operate the sports division. We believe each of those verticals has significant potential and runway for growth, and significant potential to contribute to profitable growth for us as we look to the future.

Speaker #3: And hence, we thought it was important that we get focused on those verticals by adding some help. You're right, we did add a Chief Business Officer for our sports vertical.

Nissan Joseph: Hence thought it was important that we get focused to those verticals, by adding some help. You're right, we did add a Chief Business Officer for our sports vertical. We did add a President for our Metro Mochi business. We have our Chief Operating Officer taking care of our value brands and our strategic brands.

Speaker #3: We did add a President for our Metro Mulchi business. We have our Chief Operating Officer taking care of our value brands and our strategic brands.

Speaker #3: That kind of focus, that kind of leadership, is needed by us to hit the aspirations that we have as a company. And again, it backs up to the fact that the runway for growth for each of those verticals is significant.

Nissan Joseph: That kind of focus, that kind of leadership is needed by us to hit the aspirations that we have as a company. Again, it backs up to the runway for growth for each of those verticals is significant. To do that, we need to make sure that we resource it adequately. That's why we've been doing it, and I hope I've given you some color on how they all fit.

Speaker #3: And to do that, we need to make sure that we resource it adequately. So, that's why we've been doing it, and I hope I've given you some color on how they all fit.

Speaker #2: Understood, sir. So regarding this sports category, how are you looking at it in totality—where should we be in the next three to five years versus today in terms of maybe number of stores or revenue, or could you share some color on growth that you foresee in this category as you've been trying to build it up?

Prerna Jhunjhunwala: Understood, sir. This sports category, how are you looking at in totality, where we should be in next three to five years versus today in terms of maybe number of stores or revenue or some color on growth that you could share with us in this category as you've been trying to build up this category?

Speaker #3: Sure. I think there's three there's two ways to grow that sports business. One is with the Fila brand, and one is with the retail brands of the two retail brands of Footlocker and Metroactive, right?

Nissan Joseph: Sure. I think there's two ways to grow that sports business. One is with the FILA brands, and one is with the two retail brands of Foot Locker and MetroActiv. We believe that the way that we are going to get involved with sports, drive sports, is through our roughly 700 Mochi stores. If they start contributing 10% to 15% of their sales from sports, that'll be a significant growth in our sports business. That's number 1. I think the runway for between a FILA EBO, a Foot Locker, and a MetroActiv is somewhere between three to 500 stores in the five to seven-year future. I think that's a number that we should be looking at. These are the numbers and the metrics and the North Star that we're gonna look to. I'm not saying that's my prediction, because we don't want to say any future-looking statements.

Speaker #3: We believe that the way we are going to get involved with sports, and drive sports, is through our roughly 700 Metro Multi stores. If they start contributing 10 to 15 percent of their sales from sports, that'll be a significant growth in our sports business.

Speaker #3: That's number one. I think the runway for between Fila, EBO, Foot Locker, and Metroactive is somewhere between 300 to 500 stores in the five- to seven-year future.

Nissan Joseph: I think the runway for between a FILA EBO, a Foot Locker, and a MetroActiv is somewhere between three to 500 stores in the five to seven-year future. I think that's a number that we should be looking at. These are the numbers and the metrics and the North Star that we're gonna look to. I'm not saying that's my prediction, because we don't want to say any future-looking statements. Those are definitely what we look to as we start building our businesses.

Speaker #3: And I think that's a number that we should be looking at. These are the numbers, the metrics, and the North Stars that we're going to look to.

Speaker #3: I'm not saying that's my prediction, because we don't want to make any forward-looking statements. But those are definitely what we look to as we start building our businesses.

Nissan Joseph: Those are definitely what we look to as we start building our businesses.

Speaker #2: Is there any color on Clarks? Also, if you could share in the same manner, that would be useful.

Prerna Jhunjhunwala: Is there any color on Clarks also you could share, like in the same manner that is useful?

Speaker #3: As I mentioned, Clarks has started off very well. We believe that the market today for Clarks is somewhere in the 150-store range. That's going to grow as we get to that point, and there'll be more opportunities out there.

Nissan Joseph: As I mentioned, Clarks has started off very well. We believe that the market today for Clarks is somewhere in the 150 store range. That's gonna grow as we get to that point and there'll be more opportunities out there. As you know, tier 2 cities grow and become tier 1 cities, and then it becomes a reasonable place to put a few Clarks stores in it. Similar brands to Clarks have about roughly 200 stores in the market today. I would say only 150, because I'm guessing not all of those 200 are profitable for the other brands too. As you know, we're very disciplined as to what we do, but that's the runway for Clarks from where we sit today.

Speaker #3: Because, as you know, tier two cities grow and become tier one cities. And then, it becomes a reasonable place to put a few Clarks stores in, right?

Speaker #3: So, similar brands to Clarks have about roughly 200 stores in the market today. But I would say only 150, because I'm guessing not all of those 200 are profitable for the other brands, too.

Nissan Joseph: Similar brands to Clarks have about roughly 200 stores in the market today. I would say only 150, because I'm guessing not all of those 200 are profitable for the other brands too. As you know, we're very disciplined as to what we do, but that's the runway for Clarks from where we sit today.

Speaker #3: So, as you know, we're very, very disciplined in what we do. But that's the runway for Clarks from where we sit today.

Speaker #2: Understood, sir. So, next question is on input cost inflation. Given the crude oil prices and other input cost inflation kicking in, and you mentioned you would like to maintain your margins, are you resorting to price hikes or mix improvement?

Prerna Jhunjhunwala: Understood, sir. Next question is on input cost inflation. Given the crude oil prices and other input cost inflation kicking in, and you mentioned you would like to maintain your margins, are you resorting to price hikes or mix improvement or what is your strategy to maintain the gross margins?

Speaker #2: Or what is the strategy to maintain the gross margins?

Speaker #3: Yes. We did see some potential for input spikes, but we've been able to mitigate that by a few forward buys and assuring people that we are going to buy some things and locking their production in as the costs started rising.

Nissan Joseph: No. We did see some potential for input spikes, but we've been able to mitigate that by future forward buying and assuring people that we are gonna buy some things and locking that production in as the cost started rising. We were able to lock in to some prices. We are seeing normal inflationary pricing of between 3% to 5%, but nothing that's coming from oil prices, which we know has fluctuated up and down. We're not seeing anything yet that's impacting our business. However, should there be an impact, we also buy forward enough, right? We're not buying for tomorrow today. Right now, we're buying for 4 or 5 months out. It gives it a little bit of runway to ease into that price as opposed to have it come overnight to us.

Speaker #3: So, we were able to lock into some prices. We are seeing normal inflationary pricing of between 3% to 5%, but nothing that's coming from oil prices, which we know have fluctuated up and down.

Speaker #3: But we're not seeing anything yet that is impacting our business. However, should there be an impact, we also buy forward enough, right? So we're not buying for tomorrow, today.

Nissan Joseph: We're not seeing anything yet that's impacting our business. However, should there be an impact, we also buy forward enough, right? We're not buying for tomorrow today. Right now, we're buying for 4 or 5 months out. It gives it a little bit of runway to ease into that price as opposed to have it come overnight to us.

Speaker #3: We're buying for four or five months out, so it gives us a little bit of runway to ease into that price as opposed to having it come overnight to us.

Speaker #2: Any price hike statements, sir, by you in the last quarter?

Prerna Jhunjhunwala: Any price hike taken, sir, by you in the last quarter?

Speaker #3: Nothing unusual, nothing more than our normal inflationary price hikes from time to time on certain products that hit it. But nothing that stood out for us.

Nissan Joseph: Nothing unusual. Nothing more than our normal inflationary price hikes from time to time on certain products that hit it, but nothing that stood out for us.

Speaker #2: Thank you so much, sir, and best wishes. This is helpful.

Prerna Jhunjhunwala: Thank you so much, sir. Investment. This is helpful.

Speaker #1: A reminder to all participants, you may press star and want to ask a question. The next question comes from the line of Ashutosh Jyoti Radhita with ICICI Securities.

Operator: A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Ashutosh Joytiraditya with ICICI Securities. Please go ahead.

Speaker #1: Please go ahead.

Speaker #4: Yeah. Hi. Thank you for the opportunity. I have three questions, sir. So, the first one is on the split of the FST—if you can provide a broad split, like how will the split be between the traffic growth, or maybe the higher ASPs that you are targeting, or more number of frequencies?

Ashutosh Joytiraditya: Yeah. Hi. Thank you for the opportunity. I have three questions, sir. First one is on the split of the SSG, if you can provide a broad split, like how will the split between the traffic growth or maybe the higher ASPs that you are targeting or more number of frequency, like any broad sense on that, what will be the focus area for driving the SSG?

Speaker #4: Any broad sense on that? What will be the focus area for driving the FSG?

Speaker #3: Oh, I'm sorry. For driving FSG. I think it's a combination of a few things, right? One of them is you improve your conversion. You improve traffic into the stores first and foremost.

Nissan Joseph: I'm sorry. For driving SSG. I think it's a combination of a few things, right? One of them is you improve your conversion, you improve traffic into the stores first and foremost, and that's where your marketing initiatives come in. The second one is you run a high rate of conversion, which is where our focus on our staff, our service, the quality of service that we offer, the quality of our stores that we offer, the displays that we offer, the product assortment that we offer comes into play. Last but not least, it's improving the size of the buckets, which also comes between selling different items to a consumer when they shop for one product with product adjacencies that is, but also some ASP increase, right? Those would be the three things that really drive SSG for us.

Speaker #3: And that's where in your marketing, you run a higher rate of conversion, which is where our focus is on our staff, our service, the quality of service that we offer, the quality of our stores that we offer, the displays that we offer, the product assortment that we offer.

Speaker #3: Comes into play. And last but not least, it's improving the size of the buckets, which also comes from selling different items to a consumer when they shop for one product, with product adjacencies, that is.

Nissan Joseph: Last but not least, it's improving the size of the buckets, which also comes between selling different items to a consumer when they shop for one product with product adjacencies that is, but also some ASP increase, right? Those would be the three things that really drive SSG for us.

Speaker #3: But also some ASP increase, right? So those would be the three things that really drive FSG for us. Of driving traffic into that store, it's a lot of it is retaining a customer.

Nissan Joseph: Of driving traffic into that store, a lot of it is retaining a customer. It's also making the customer that bought one time with you buy a second time, and it's also bringing in new customers, right? Ashutosh, it's multiple strategies that have to work in sync to make that happen. We have initiatives and leadership that drive all of those initiatives.

Speaker #3: It's also making the customer that bought one time with you buy a second time. And it's also bringing in new customers, right? So, Ashutosh, it's multiple strategies that have to work in sync to make that happen.

Speaker #3: And we have initiatives and leadership that drive all of those initiatives.

Speaker #4: Okay, okay. Yeah, thanks. Understood. And second question is on Walkway. So, as you know, it's dilutive on both the margin front and also the sales per square foot.

Ashutosh Joytiraditya: Okay. Clear picture. Understood. Second question is on Walkway. As we know that it's dilutive on both margin front and also the sales per square feet. My question is that how one should read its success in, say, like down the line, maybe three to five years? What will be the key parameters to judge its success?

Speaker #4: So my question is: how should one measure its success down the line, maybe three to five years? What will be the key parameters to judge its success?

Speaker #3: Thanks for the question, Ashutosh. We very well know that walkways margin will be lower than the reported margin say for Metro Mochi, Crocs, etc.

Kaushal Parekh: Thanks for the question, Ashutosh. We very well know that Walkway's margin will be lower than the reported margin, say for Metro, Mochi, Crocs, et cetera.

Speaker #3: However, for medium- to long-term thought processes, if this format can churn ROCs close to 25 to 30 percent, it would be a very good utilization of our treasury, which currently is, say, earning around 7 to 8 percent.

Ashutosh Joytiraditya: Right

Kaushal Parekh: medium to long term, our thought process is if this format can churn ROCs close to 25% to 30%, it would be a very good utilization of our treasury, which currently is, say, earning around 7% to 8%. Success parameter for us would be to hit those kind of ROCs on a consistent basis over medium to long term.

Speaker #3: So, the success parameter for us would be to hit those kinds of ROCs on a consistent basis over the medium to long term.

Speaker #4: Okay, okay. Understood. And one more question: Are there any key learnings you would like to highlight from this 2,000 square foot store, considering that management has shifted focus from the earlier, smaller stores?

Ashutosh Joytiraditya: Okay. Understood. One more question. Any key learnings which you would like to highlight from this 2,000 square feet store that the focus which the management has shifted to from the earlier smaller stores? Like, any key initial learning?

Speaker #4: Any key initial learning?

Speaker #3: I think the initial learning continues to be what is tried and true in retail. You have to have the right location. You have to have the right people.

Nissan Joseph: I think the initial learning continues to be what is tried and true in retail. You have to have the right location, you have to have the right people, you have to have the right product in these new stores. We find that if a market can sustain it, we need the 2,000 square feet, but opening a 2,000 square feet for the sake of it doesn't make any sense. We're continuing to play with it. I think initially we've had some success with it that we need to continue to build on it.

Speaker #3: You have to have the right product in these new stores. But we find that if a market can sustain it, we need the 2,000 square feet.

Speaker #3: But opening a 2,000 square foot store for the sake of it doesn't make any sense. So we're continuing to play with it. I think initially we've had some success with it that we need to continue to build on.

Speaker #4: Okay. And sir, just one last question. So I was just thinking, what would be the internal parameters that the management would be tracking? Suppose you want to basically increase the capital towards a particular brand.

Ashutosh Joytiraditya: Sir, just one last question. I was just thinking, what would be internal parameters which the management would be tracking? Suppose if you want to basically increase the capital towards a particular brand, what are some key parameters which the management basically looks at it?

Speaker #4: So, what are some key parameters that the management basically looks at?

Speaker #3: Okay. So, at the very top line, what I would look at first and foremost is: is this additive, or is this dilutive to us, right?

Nissan Joseph: Okay. At the very top line, what I would look at first and foremost is this additive or is this dilutionary to us, right? Does it dilute what we're already doing or does it bring in and catering to a new consumer that we're not catering to in one of our portfolio brands, right? How does it fit across our portfolio? Is it going to be cannibalistic if we grow it? That's the first question I have to ask. The second question you obviously have to ask is from a financial investment standpoint. How much of capital allocation do you want to give to that versus the other options that we have? As you know, all nine of our banners have huge runways for growth.

Speaker #3: Does it dilute what we're already doing, or is it bringing and catering to a new consumer that we're not catering to in one of our portfolio brands, right?

Speaker #3: So, how does it fit across our portfolio? Is it going to be cannibalistic if we grow it? That's the first question I have to ask.

Speaker #3: The second question you obviously have to ask is, from a financial investment standpoint, how much of your capital allocation do you want to give to that?

Nissan Joseph: The second question you obviously have to ask is from a financial investment standpoint. How much of capital allocation do you want to give to that versus the other options that we have? As you know, all nine of our banners have huge runways for growth.

Speaker #3: Versus the other options that we have. And as you know, all nine of our banners have huge runways for growth. So it's managing who gets what. And fortunately, we do have a lot of capital to invest, but that doesn't mean you should spend it.

Nissan Joseph: It's managing who gets what, and fortunately, we do have a lot of capital to invest, but that doesn't mean you should spend it. You got to spend it judiciously, right? That's the second thing we look at. I think a lot of it comes down to where's the opportunity from a consumer side. What's the consumer demanding? What's the consumer unmet need that we got to focus in on? That's the broad level of how we look at things. Then of course, at the granular level, we're looking at every single deal and every single opportunity that comes across our table and seeing does this make sense for that particular banner? Does this make sense for us as a company to have? All those questions have to come into play, and that's how we evaluate all opportunities as we go forward.

Speaker #3: You’ve got to spend it judiciously, right? So that's the second thing we look at. And I think a lot of it comes down to where the opportunity is from a consumer side.

Speaker #3: What's the consumer demanding? What's the consumer unmet need that we got to focus in on? So that's a broad level of how we look at things.

Speaker #3: And then, of course, at the granular level, we're looking at every single deal and every single opportunity that comes across our table and seeing: does this make sense for that particular banner?

Nissan Joseph: Then of course, at the granular level, we're looking at every single deal and every single opportunity that comes across our table and seeing does this make sense for that particular banner? Does this make sense for us as a company to have? All those questions have to come into play, and that's how we evaluate all opportunities as we go forward.

Speaker #3: Does this make sense for us as a company to have? All those questions have to come into play, and that's how we evaluate all opportunities as we go forward.

Speaker #3: The good news today, though, Ashutosh, is we are positioned where we have the right banners with us—the correct brands or banners, however you want to look at it.

Nissan Joseph: The good news today, though, Ashutosh, is we are positioned to where we have the right banners with us the correct brands or banners, however you want to look at it. We have the capital, we have the leadership to drive each of those banners to the potential that it has. Most excitingly, I think it covers almost every need most Indians would have when it comes to footwear. We feel good about where we're positioned. Now, it's just a matter of continuing to grow it with financial discipline.

Speaker #3: We have the capital. We have the leadership to drive each of those banners to the potential that it has. Most excitingly, I think it covers almost every need most Indians would have when it comes to footwear.

Speaker #3: So, we feel good about where we are positioned. Now it's just a matter of continuing to grow it, with financial discipline.

Speaker #4: Okay. Okay. Thank you, sir. Thank you. That's all from my side, yeah.

Ashutosh Joytiraditya: Okay. Thank you, sir. Thank you. That's all from my side.

Speaker #1: The next question comes from the line of Devanshu Bansal with MK Global Financial Services. Please go ahead.

Operator: The next question comes from the line of Devanshu Bansal with Emkay Global Financial Services. Please go ahead.

Speaker #5: Hi, sir. Good evening. Thanks for taking my question. Nissan, my question is on resilience of the business, right? So the committee that you have been sort of maintaining indicates that we have diversified our sales we've invested in top talent across business segments.

Devanshu Bansal: Hi, sir. Good evening. Thanks for taking my question. Nishant, my question is on resilience of the business. The commentary that you have been sort of maintaining indicates that we have diversified ourselves, we have invested in top talent across business segments, and we even have brands which can address for climatic variations. I really appreciate your team for return of double-digit growth in the business. But there is a 250 to 300 BPS fall in premium PAT margin. This drop is mainly coming from operating deleverage. The gross margin has actually improved. I wanted to check up on few initiatives, which can help to improve the predictability of PAT growth in the business. I wanted to take your views on that.

Speaker #5: And we even have brands which can exist for climatic variations, right? So I really appreciate your team for the return of double-digit growth in the business.

Devanshu Bansal: I really appreciate your team for return of double-digit growth in the business. But there is a 250 to 300 BPS fall in premium PAT margin. This drop is mainly coming from operating deleverage. The gross margin has actually improved. I wanted to check up on few initiatives, which can help to improve the predictability of PAT growth in the business. I wanted to take your views on that.

Speaker #5: But there is a 250 to 300 bps fall in premium stack margin, right? And this drop is mainly coming from operating deleverage. The gross margin has actually improved.

Speaker #5: So, I wanted to sort of check up on a few initiatives that can help improve the predictability of PAC growth in the business, right? So I wanted to take your views on that.

Speaker #3: Okay. So I think when we look at our PAC number, you talk about the delta of about 200 bps, right? A significant portion of it came from our investments in marketing, right?

Nissan Joseph: Okay. I think when we look at our PAT number, you talk about the delta of about 200 BPS, right? A significant portion of it came from my investments in marketing. I would say almost 100 BPS plus came from just increased marketing spend, not specifically for marketing for that quarter, but marketing for the brand at the top of the funnel. As you know, in marketing, the top of the funnel takes a while to filter down towards the bottom of the funnel, right? That's half of it. That's where that came from. The other one was treasury income. As you know, Devanshu, we carry a significant treasury. When the treasuries returned last year were in the teens, and this year they're not in the teens, That's not unusual to us. That's the market as it is. That impacted us.

Speaker #3: So I would say almost 100 basis points came from just increased marketing spend—not specifically for marketing for that quarter, but marketing for the brand at the top of the funnel.

Speaker #3: And as you know, in marketing, the top of the funnel takes a while to filter down towards the bottom of the funnel, right? So that's half of it—where that came from.

Nissan Joseph: As you know, in marketing, the top of the funnel takes a while to filter down towards the bottom of the funnel, right? That's half of it. That's where that came from. The other one was treasury income. As you know, Devanshu, we carry a significant treasury. When the treasuries returned last year were in the teens, and this year they're not in the teens, That's not unusual to us. That's the market as it is. That impacted us.

Speaker #3: The other one was our treasury income. And as you know, Devanshu, we carry a significant treasury, and when the treasury returned last year, we were in the teens.

Speaker #3: And this year, they're not in the teens, and that's not unusual to us. That's the market as it is. That impacted us. The third one was our new stores.

Nissan Joseph: The third one was our new stores. Last year, we opened 140 new stores. We closed 20, so that's roughly about 120 new stores. All those stores don't run at the same profit rate. They don't run at the same metrics. The gross margins run the same. The stock doesn't, the inventory turns too, and so does the profit margin, right? That's all diluted to us. You couple that with the fact that almost 40 of those 140 stores were Walkway stores that have a significantly lower PAT. All of that caused it, of course, the leadership talent I talked about. However, having said that, I'm confident that we can continue our growth without it being diluted in any way or shape or form, despite opening up formats like Walkway that don't come in at the same profit margin as the rest of the business.

Speaker #3: Last year, we opened 140 new stores and closed 20, so that's roughly about 120 new stores, right? All those stores do not run at the same profit rates.

Speaker #3: They don't run at the same metrics. Like, the gross margins run the same, but if the chart doesn't, then India tips you. And so does the profit margin, right?

Speaker #3: That's all diluted to us. You couple that with the fact that almost 40 of those 140 stores were walkway stores that have a significantly lower PAC, right?

Speaker #3: All of that causes it. And then, of course, the leadership talent—I'll talk about that. However, having said that, having said that, I'm confident that we can continue our growth without it being diluted in any way, shape, or form.

Nissan Joseph: All of that caused it, of course, the leadership talent I talked about. However, having said that, I'm confident that we can continue our growth without it being diluted in any way or shape or form, despite opening up formats like Walkway that don't come in at the same profit margin as the rest of the business. I'm confident that we'll continue to grow our business at that 15%+ profit range.

Speaker #3: Despite opening up formats like walkway that don't come in at the same profit margin as the rest of our business, I'm confident that we'll continue to grow our business at that 15-plus percent profit range.

Nissan Joseph: I'm confident that we'll continue to grow our business at that 15%+ profit range.

Speaker #4: No, so I get that, Nissan. So, the question here is that, obviously, 15% was a normalized expectation from your business, right? And then, if we are adding new avenues of growth, that should obviously inch up the top-line growth.

Devanshu Bansal: No. I get that, Nissan. Question here is that obviously 15% was a normalized expectation from your business. If we are adding new avenues of growth, that should obviously inch up the top-line growth. Maybe at a lower margin, but in absolute terms, the PAT growth should be there in the business. I just wanted to check as in when should we expect this kicking into higher kind of a PAT growth to return in your business?

Speaker #4: Maybe at a lower margin, but in absolute terms, the PAC growth should be there in the business, right? So, I just wanted to check, as in when should we expect this 15% to 18% kind of PAC growth to return in your business?

Speaker #3: Yeah, I think that's a very fair expectation, and that's something we would expect too. I think once the treasury normalizes, our marketing will normalize back again because we did over-invest in marketing last year too.

Nissan Joseph: Yeah, I think that's a very fair expectation, and that's something we would expect, too. I think, once the treasury will normalize, our marketing will normalize back again, because we did over-invest in marketing last year, too, so we will lap those numbers. The talent will start to pay off for itself. It's an investment because you expect the talent to start to deliver. Of course, the new stores will start getting better and better performing. I totally agree with you that we should be getting back at that level, and we will. Equally, I want to assure you, we have no concerns about getting back to that number, Devanshu.

Speaker #3: So, we will wrap those numbers. The talent will start to pay off for itself. It's an investment because you expect the talent to start to deliver.

Speaker #3: And then, of course, the new stores will start getting better and better at performing, right? So, I totally agree with you that we should be getting back to that level.

Speaker #3: And we will. We have no concern. Equally, I want to assure you, we have no concerns about getting back to that number, Devanshu.

Speaker #5: Okay. Devanshu, for the year, we expect our PAC to be in that range of 13% to 15%, as we have sort of guided even earlier.

Kaushal Parekh: Devanshu, from here, we expect our PAT to be in that range of 13% to 15%, as we have sort of guided even earlier.

Speaker #4: Got it. Question, sir. Second, I wanted to get some more understanding on this online business, right? So we were growing at almost 40% growth. Your committee suggested that Q1 was kind of a blip.

Devanshu Bansal: Got it, Kaushal. Sir, second was to get some more understanding on this online business. We were growing at almost 40% growth. Your commentary suggested that Q1 was kind of a blip. I wanted to check in rest of FY27, can we sort of get back to earlier levels of growth, or do you feel that now the base will catch up and now we should see normalized growth in this channel?

Speaker #4: I wanted to check—in the rest of FY27, can we sort of get back to earlier levels of growth? Or do you feel that now the base will catch up and we should see more normalized growth in this channel?

Speaker #3: Yeah, I think it's tough to keep the 40-50% growth going without starting the discount. That's the channel, Devanshu, that you could really explore if you decide to go the discount route, right?

Nissan Joseph: Yeah, I think it's tough to keep the 40% and 50% growth going without starting to discount. That's a channel, Devanshu, that you could really explode if you decide to go the discount route, right? We have no desire to do that. We have every desire to maintain our brand. We have every desire to continue to invest in the brand and not just drive the top-line revenue to get different sales. If you look at the 5-year CAGR for it's been at a 45%. Is that sustainable over the next 5, 10 years? Probably not. At the same time, we're not going to go down to single digits. I would say a very good 20% to 30% growth in e-commerce is what I would stand on. That I would consider healthy for our business. Much more than that, something's wrong with our business.

Speaker #3: So we have no desire to do that. We have every desire to maintain our brand. We have every desire to continue to invest in the brand, and not just drive the top-line revenue to get different sales, right?

Speaker #3: If you look at the five-year CAGR for it, it's been at 45%. Is that sustainable over the next 5 or 10 years? Probably not.

Nissan Joseph: If you look at the 5-year CAGR for it's been at a 45%. Is that sustainable over the next 5, 10 years? Probably not. At the same time, we're not going to go down to single digits. I would say a very good 20% to 30% growth in e-commerce is what I would stand on. That I would consider healthy for our business. Much more than that, something's wrong with our business. Much less than that, something did go wrong. I would definitely not look at e-commerce as an outlier left or right of that positive number.

Speaker #3: But at the same time, we're not going to go down to single digits now. I would say a very good 20% to 30% growth in e-com is what I would plan on.

Speaker #3: That I would consider healthy for our business. Much more than that, something’s wrong with our business. Much less than that, something did go wrong, right?

Nissan Joseph: Much less than that, something did go wrong. I would definitely not look at e-commerce as an outlier left or right of that positive number.

Speaker #3: So, I would definitely not look at e-commerce as an outlier, left or right, of that positive number.

Speaker #4: All right, so just one last question. Your realizations have inched up 6% versus last year. I just wanted to understand the ballpark components which have led to this increase.

Devanshu Bansal: Right. Just last one question. Your realizations have inched up 6% versus last year. I just wanted to understand ballpark components which have led to this increase. Maybe there are new premium formats you have launched. There'll be premiumization within existing format, plus some price hikes which you would have taken. If you could just ballpark help me understand what are the drivers of that.

Speaker #4: Maybe there are new premium formats you have launched. There’ll be premiumization within existing formats, plus some price tags which you would have taken. So if you could just ballpark, help me understand what are the drivers of that.

Speaker #5: Devanshu, primarily it is on account of mix. Obviously, newer, slightly premium formats—their contribution to sales has improved. So, obviously, that has led to improvement in ASP.

Kaushal Parekh: Devanshu, primarily it is on account of mix. Obviously, newer, slightly premium format, their contribution to sale has improved, obviously that has led to improvement in ASP. Q1 is a reasonably big quarter for Crocs. When you compare Q1 with full year, generally we see a slightly higher ASP growth. For the year, I think we should be close to 3% to 4% broadly.

Speaker #5: Q1 is a reasonably big quarter for crops. So, when you compare Q1 with the full year, generally, we see slightly higher ASP growth. But for the year, I think we should be close to 3 to 4 percent, broadly.

Speaker #4: Got it. Question. Thanks for taking the question.

Devanshu Bansal: Got it, Kaushal. Thanks for taking the questions.

Speaker #1: The next question comes from the line of Avinash Karunmanchi with Motilal Oswal Financial Services. Please go ahead.

Operator: The next question comes from the line of Avinash Karunamanche with Motilal Oswal Financial Services. Please go ahead.

Speaker #4: Good evening, sir. Thank you for taking my question. So my question is regarding the DIS. A couple of months back, there was a change in the QCO order from the DIS which allows the import of fifth-grade goods.

Avinash Karunamanche: Good evening, sir. Thank you for taking my question. My question is regarding the BIS. A couple of months back, there is a change in the QCO order from the BIS, which allows the import of tested goods. Is this any way helpful to ramp up the production on FILA? Earlier when we discussed because of the BIS bottlenecks, the lead time for FILA has increased from 6 to 9 months. Would it in any way reduce that lead time and ramp up the FILA launches?

Avinash Karumanchi: Good evening, sir. Thank you for taking my question. My question is regarding the BIS. A couple of months back, there is a change in the QCO order from the BIS, which allows the import of tested goods. Is this any way helpful to ramp up the production on FILA? Earlier when we discussed because of the BIS bottlenecks, the lead time for FILA has increased from 6 to 9 months. Would it in any way reduce that lead time and ramp up the FILA launches?

Speaker #4: So, is this in any way helpful to ramp up the product stock in Q1? Earlier, when we discussed, because of the BIS bottlenecks, the lead time for Q1 has increased from 6 to 9 months.

Speaker #4: So, would it in any way reduce that lead time and ramp up the Q1 launches?

Nissan Joseph: No, it doesn't have a significant impact to us, plus or minus. All of our imports continue to face the right amount of challenges and the right amount of solutions that we've come up with it, right? That hasn't impacted us. What really impacts us more is all the RGN countries are not getting renewals on their BIS, and that probably has more of an impact to us than anything else.

Speaker #3: No, it doesn’t have a significant impact to us, plus or minus. All of our imports continue to face the right amount of challenges on the one hand, and the right amount of solutions that we’ve come up with, right?

Speaker #3: So that hasn't impacted us. What really impacts us more is all the ASEAN countries are not getting renewals on their DIS, and that probably has more of an impact on us than anything else.

Speaker #4: No. Okay, got it. And the second thing is, in the recent EOSS, if I look at it, there's still a good amount of Q1 inventory which is being sold and having discounts.

Avinash Karunamanche: No. Okay. Got it. The second thing is, in the recent EOSS, if I look at it, there's still a good amount of FILA inventory which is being sold at nearly a discount. Is this the inventory that was bought earlier with the company, or is this inventory that was recently won? Hello?

Avinash Karumanchi: No. Okay. Got it. The second thing is, in the recent EOSS, if I look at it, there's still a good amount of FILA inventory which is being sold at nearly a discount. Is this the inventory that was bought earlier with the company, or is this inventory that was recently won? Hello?

Speaker #4: So, is this the inventory that was brought in earlier with the company, or is this inventory that was recently won? Hello?

Speaker #3: I'm sorry. I think it's a combination of things. It's the last bit of inventory that we acquired from the company before, and it's also in-season discounts.

Nissan Joseph: I'm sorry. I think it's a combination of things. It's the last bit of inventory that we acquired from the company before. It's also in-season discounts. The sports business, unlike the footwear, unlike our Mochi business, tends to have a 3-month life cycle on product. 3- to 4-month life cycle on product. It's not unusual to see products on sale. You look at any of the big brands, they have a sale running almost every 3 months in significant amounts. Their EOSS sales are very big and significant. We're not immune to that. Because all sports brands have to buy 9 months ahead of lead time, like you mentioned earlier on for FILA, all sports brands are that way. When we place an order with any of the sports brands, we are placing it almost 9 months out.

Speaker #3: The sports business, unlike the footwear, unlike our Metro Mochi business, tends to have a three-month life cycle on product, right? Three- to four-month life cycle on product.

Speaker #3: So it's not unusual to see products on sale. You look at any of the big brands—they have a sale running almost every three months, and significant amounts, right?

Speaker #3: The US is sales are very big and significant. We're not immune to that. So and because you have to buy all sports brands have to buy nine months ahead of lead time, like you mentioned earlier on for Q1, all sports brands are that way.

Nissan Joseph: We're not immune to that. Because all sports brands have to buy 9 months ahead of lead time, like you mentioned earlier on for FILA, all sports brands are that way. When we place an order with any of the sports brands, we are placing it almost 9 months out. When you're buying products out that far in advance, you're hedging a lot. You're going to have some on sale. That's okay. That's how the beast is built, and we're quite comfortable with that.

Speaker #3: When we place an order with any of the sports brands, we are placing it almost nine months out, right? So, when you're buying products out that far in advance, you're hedging a lot.

Nissan Joseph: When you're buying products out that far in advance, you're hedging a lot. You're going to have some on sale. That's okay. That's how the beast is built, and we're quite comfortable with that.

Speaker #3: So, you're going to have some amount on sale. But that's okay—that's how the beast is built, and we're quite comfortable with that.

Speaker #4: Okay. Okay. I mean, I'm asking this question because a good part of these products that are discounted are the ones that are manufactured in Haryana and these regions.

Avinash Karunamanche: Okay. I'm asking this question because a good part of these products that are discounted are the ones that are manufactured in Haryana, these regions.

Avinash Karumanchi: Okay. I'm asking this question because a good part of these products that are discounted are the ones that are manufactured in Haryana, these regions.

Speaker #3: Yeah, yeah. You would see in-season discounts. It's how it works. That's not an issue, right?

Nissan Joseph: Yeah. You would see in-season discounts. It's how it works. That's not an issue, right?

Speaker #4: No. Okay, okay. And one last small question: You mentioned that there is a 100% increase in the marketing investment. So, historically, this marketing has been in the range of 2.5 to 3.

Avinash Karunamanche: Okay. One last small question. You mentioned that there is a 100% increase in the marketing investment. Historically, this marketing has been in the range of 2.5% to 3%. Should we assume that now with the more focus on the formats, this number should be higher going forward?

Avinash Karumanchi: Okay. One last small question. You mentioned that there is a 100% increase in the marketing investment. Historically, this marketing has been in the range of 2.5% to 3%. Should we assume that now with the more focus on the formats, this number should be higher going forward?

Speaker #4: So should we assume that now, with more focus on the formats, this number should be higher going forward?

Speaker #3: No, it's not going to be higher than it was last year because we started investing in marketing starting last year, right? And then also, as sales increase, that percentage starts to come down again.

Nissan Joseph: No, it's not going to be higher than it was last year because we started investing in marketing starting last year. It's also as sales increase, that percentage starts to come down again. What we wanted to do was build the top of the funnel for our multiple brands that we have. Launching brands, whether it's Clarks, whether it's Foot Locker, whether it's FILA, always requires a significantly higher amount of marketing at the front end of it. You would know that from all the D2C brands that start up and all the startups that I'm sure you've seen. You have to spend much more in marketing on the front end. Once a brand gets velocity, it doesn't need as much. It's not a number that's going to keep growing and growing.

Speaker #3: What we wanted to do was build the top of the funnel for our multiple brands that we have. Also, launching brands—whether it’s Clarks, whether it’s Foot Locker, or whether it’s Q1—always requires a significantly higher amount of marketing at the front end, right?

Speaker #3: You would know that from all the details, with brands that start up—and all the startups that I'm sure you've seen—you have to spend much more on marketing on the front end.

Nissan Joseph: You would know that from all the D2C brands that start up and all the startups that I'm sure you've seen. You have to spend much more in marketing on the front end. Once a brand gets velocity, it doesn't need as much. It's not a number that's going to keep growing and growing.

Speaker #3: Once a brand gets velocity, it doesn't need as much. So it's not a number that's going to keep growing and growing.

Speaker #4: No? Okay, got it. That's it from my side.

Avinash Karunamanche: Okay. Got it, sir. That's it from my side.

Avinash Karumanchi: Okay. Got it, sir. That's it from my side.

Speaker #3: Thanks.

Nissan Joseph: Thanks.

Speaker #1: The next question comes from the line of Shraddha Kapadia with Smiths. Please go ahead.

Operator: The next question comes from the line of Shraddha Kapadia with SMIFS. Please go ahead.

Speaker #6: Hello, am I audible? Thank you for the opportunity. So, one question: the ₹3,000-plus segment currently contributes approximately 57% of our sales. Do you see further scope for premiumization over the next two to three years, or do you believe the mix is approaching a steady state?

Shraddha Kapadia: Hello, am I audible?

Nissan Joseph: Yes.

Nissan Joseph: Thank you for the opportunity. One question. That the INR 3,000 plus segment currently contributes approximately 57% of our sales. Do you see further scope for premiumization over next two to three years, or do you believe the mix is approaching a steady state?

Shraddha Kapadia: Thank you for the opportunity. One question. That the INR 3,000 plus segment currently contributes approximately 57% of our sales. Do you see further scope for premiumization over next two to three years, or do you believe the mix is approaching a steady state?

Speaker #3: No, we definitely see an opportunity for premiumization to continue, specifically in banners of our Metro, Mochi, and specifically in our Foot Locker banner, specifically with Q1.

Nissan Joseph: No, we definitely see an opportunity for premiumization continue, specifically in banners of our Mochi, specifically in our Foot Locker banners, specifically with FILA. When you look at all those banners, and now with Clarks as well and FitFlop, when you look at all those banners, they all run at a higher price point range. The only banners that we have that don't clock significantly in that range is Walkway. Even Crocs tends to be up in the higher premium. Just looking at the mix of things, we're definitely going to have that number continue to grow. If we started off a few years ago in the 40s, and as you rightly mentioned, Shraddha, it's almost at getting to 60 now, and that's going to continue. What we want to make sure is that you don't have price increases and you have customers fall off.

Speaker #3: So, when you look at all those banners, and now with Clarks as well and Foot Locker, when you look at all those banners, they all run at a higher price point range.

Speaker #3: The only banners that we have that don't come in very don't clock significantly in that range is Walkway, right? Even Crocs tends to be up in the higher premium.

Nissan Joseph: Even Crocs tends to be up in the higher premium. Just looking at the mix of things, we're definitely going to have that number continue to grow. If we started off a few years ago in the 40s, and as you rightly mentioned, Shraddha, it's almost at getting to 60 now, and that's going to continue. What we want to make sure is that you don't have price increases and you have customers fall off.

Speaker #3: So just looking at the mix of things, we're definitely going to have that number continue to grow. I mean, if we start off a few years ago in the 40s, and as you rightly mentioned, Shraddha, it's almost getting to 60 now.

Speaker #3: And that's going to continue. What we want to make sure is that you don't have price increases and then have customers fall off, right?

Speaker #3: So, we also closely track our volume growth in products to make sure that we're not losing market share.

Kaushal Parekh: We also closely track our volume growth in products to make sure that we're not losing market share. And Shraddha, we will also see some normalization in Q2 because after End of Season Sale, again, the number comes back close to the long-term average. Q1, Q3, generally this goes up. Q2, Q4, it again normalizes.

Speaker #4: And Shraddha, we will also see some normalization in Q2 because after the end-of-season sale, again, the number comes back close to the long-term average. So, Q1 and Q3, generally, this goes up.

Speaker #4: Q2, Q4, it again normalizes.

Speaker #6: Yeah, so thank you so much. That was quite helpful. Just one last question from my end. You have also highlighted inorganic opportunities as a strategic priority.

Shraddha Kapadia: Sure. Thank you, Somil. That was quite helpful. Just last one from my end. You have also highlighted inorganic opportunities as a strategic priority. Are you evaluating acquisitions primarily through IGO brands to enter the existing categories or are you also planning to enter any adjacent categories?

Speaker #6: So are you evaluating acquisition primarily to add new brands, strengthen the existing categories, or are you also planning to enter any adjacent categories?

Speaker #3: No, I think that's something we haven't said in a while. I think it's one of our original decks. You're right, Shraddha. You caught that.

Nissan Joseph: No, I think we haven't said that in a while. I think it's one of our original decks. You're right, Shraddha, you caught that. That was really one of our original decks that we sent out when we first went public, the first season of going public. We've kind of left it there because that has been a strategy in the past. From where we sit today, I feel confident that we have an adequate number of banners to drive business for the various consumer occasions in India. Having said that, though, it's not that we're sleeping at the wheel. We are aware that we want to be what the consumer wants. Tomorrow, the consumer wants something that we cannot serve, then of course, we'd be very keen on exploring how we can get that to India.

Speaker #3: But that was really one of our original decks that we sent out when we first went public, the first season of going public. And we've kind of left it there because that has been a strategy in the past.

Speaker #3: From where we sit today, I feel confident that we have an adequate number of banners to drive business for the various consumer occasions in India. Having said that, though, it's not that we're sleeping at the wheel.

Nissan Joseph: Having said that, though, it's not that we're sleeping at the wheel. We are aware that we want to be what the consumer wants. Tomorrow, the consumer wants something that we cannot serve, then of course, we'd be very keen on exploring how we can get that to India. Till that happens, we have a handful at the moment, full of opportunities and full of banners to grow.

Speaker #3: We are aware that we want to be what the consumer wants, right? So, tomorrow, if the consumer wants something that we cannot serve, then of course, we'd be very keen on exploring how we can get that to India, right?

Speaker #3: But till that happens, we have our hands full at the moment. We're full of opportunities and full of avenues to grow.

Nissan Joseph: Till that happens, we have a handful at the moment, full of opportunities and full of banners to grow.

Speaker #6: Yeah, okay. Thank you so much.

Shraddha Kapadia: Sure. Okay. Thank you, Somil.

Speaker #4: Ladies and gentlemen, that was

Operator: Ladies and gentlemen, that was the last question for today. On behalf of Motilal Oswal Financial Services, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.

Speaker #1: the last question for today. On behalf of Motila Loswell Financial Services, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.

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Q1 2027 Metro Brands Ltd Earnings Call

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