PNGS Gargi Fashion June 2025 concall transcript

"Thank you Sigil. Good afternoon everyone. This is Niha company secretary and compliance officer of PNGs Gagi fashion jewelry limited. A very warm welcome to all uh this earning call conference. Uh for discussion today we have here uh with us Mr. Amit Modok our director and Mr. Vishwas Hundra our chief financial officer. Welcome everyone. We wish to start by qualifying that during the call we may make some forward-looking statements. PNGs does not provide any specific revenue earnings guidance. Anything which is said during this call uh which may reflect our outlook for the future or which may be construed as a forward-looking statement must be reviewed in conjunction with the risk that the company faces. These statements are considering the business environment we see as of today and therefore there could be risk and uncertainties that could cause actual results to vary materially from what we are discussing on this call today. An audio link and transcript of this call will be shortly available on the investor section of our website that is www.garibypng.com. With this we are now ready to begin with the opening statement. and the performance of the company and post that we will be available for the question and answer section. I now request Mr. Amit Modak sir to take over. Over to you sir. Thank you."

"Very good evening to everyone. Uh we are meeting almost after every 6 months to take a stock of the situation and conversation and interaction within us. Uh first of all I would like to uh comment something on how FY25 passed and then we will go to the FY26 outlook and other matters. Uh we really happy that uh the question which was repeatedly asked by many investor in earlier meeting that uh by FYI 25 whether we will achieve that 100 cr magic figure of turnover or not. And yes we achieved that and really happy to share that your company turnover grew from 51.5 cr to 126.35 cr in 25 posting strong growth of 147% yi that also grown from 8.46 cr to 28.8 cr i margin excluding other income grew by 22% to 30% due to be better product mix and operating leverages. As you know that during Q first Q that is the first quarter of FI25 we had changed the accounting management and arrangement with PNGSL we can call them as our master franchisee the promoters who hold major stake in that company and beneficiary owner of both the companies are same for the SIS model and hence excluding the one-time inventory sales actual B2C sales was 82.44 cr means if we exclude that one time sale our growth was from 51.5 cr to 82.44 cr on the B2C sales basis because one time inventory sale is not a B2C it is a B2B from one organization to other organization and ultimately what is reach in the hands of the investor uh customer not investor customer is 82.44 cr rupees Well, that also uh reflect a 62% growth as compared to previous year on the number of store we added nine stores during the year and we have got 14 stores at end of FY25. Most of these nine added stores are added in the second half of the year and more precisely four stores were added in the last quarter. Not only that, last two stores were added in last 45 days. And last one store out of that was added just two days before the end of the year. That is a Lakshmi road store from smaller space to larger space. That smaller space shop is also working and larger space shop which is almost 1,000 square ft is also started working from 30th March 2025 that is just 2 days before the year end. During the year we had also spent 3.75 cr rupes on marketing. Most of these was spent in the second half and margin in seasonally weak Q4 were uh negatively impacted. Those were not negative negatively impacted means lower margins were shown in Q4 due to significant marketing spend of around 2 cr rupees in that single quarter. Past 3 years our B2 say revenue has grown from 28.67 cr to 82.49 cr. If we Compare 23, 24 and 25. It has gone up from 28.67 cr to 82.49 cr of 69.7% or we can say roughly around 7% substantially outpacing the industry average growth of 20 to 25%. We can assure you that would continue to beat the industry growth in the coming years also. Coming to FI 26, this year we are focusing on five key initiative to accelerate our growth in the coming years. We will be establishing footprint in various cities across India and we intend to open 10 to 15 stores in coming 12 months across India mainly in metros as a normal I always tell you what is not less than so here even though I am saying 10 to 15 store I can commit you it will be not less than 12 stores this year we have come to quick commerce that is a blinket this should increase visibility for Gagi products that blink blinket products are uh made available for less than 1,000 rupees value and uh that is mainly from our uh new range which is introduced as a utso for the uh fast fashion and affordable. We are also launching our app on iOS and play uh store shortly to facilitate easy purchasing of the gagi product. It will be the app which is not there. In addition to this, we are exploring the implementing things to increase our online sale through our website and the goal is to reach to the 10% of the sale uh of the respective year. Presently it is a 4.5% of the total sales. Earlier it was as low as 2%. So we have achieved substantial growth there. If we calculate 2% to 4% it is 100%. But yes, I'm not happy with that figure. I want to achieve minimum 10%. We will will be spending this year more on the advertisement marketing cost. In last two three consecutive meetings, everyone was asking why our marketing cost is low, why we are not spending on marketing cost. So yes, this year we are likely to spend around 7 cr on marketing cost because as it is we are expanding around not less than 12 store and those are mainly outside the Maharash state means minimum Out of 12, five to six stores will be out of Maharashtra and for there we need to spend more for creating our awareness about our brand. As compared to four CR we spent in FI25 it will be 7 cr and this will definitely impact on our bottom line margins also that also must be kept in the mind and if it results very well then it margins also will get maintained and our spend also will get uh absorbed in the higher uh earnings. Due to higher top line, we are already invested in human resource in various departments last year to facilitate growth of physical store because only opening new store will not serve the purpose if we do not have machinery to make sure that all these stores will contribute to top line and bottom line right from first year. Right now if we see 14 EVOs are there 31 SIS is there with PNG. So we have got 45 stores right now. We are adding not less than 12 stores. So by end of this year it will be 47 to 50 store. So we have created back end which is capable of handling at least 75 store in coming two years time and to handle that uh and cope up with that we have already made everything in line. So we are not worried about next two years growth as far as our backend system and its support is concerned. In conclusion, we are expecting organic growth to more than offset the imp effect of the one-time inventory sale done in FY25 and uh I can say that uh the top line as far as B2C is concerned uh it will show the same growth uh pace pace mean speed which is which will definitely beat the market speed which is normal market growth if say it is X it our growth will be something X plus something thank you for listening me and I am keeping uh making it open the dis and forum for question answer. Thank you for uh joining the meeting. Thank you for showing faith in us and we hope your faith will continue. Thank you."

"Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use answer while asking a question. Ladies and gentlemen, we will read for a moment while the question Q assembles. Participants who wish to ask a question may press star and one. Now the first question is from the line of Rajes Singla from RTG Capital. Please go ahead."

"Uh hello sir. Good evening sir. How are you sir? Good evening. Fine. Yeah. So, how many stores are we likely to add in first half of FI26 and second half of FI26? If you can share some something on that. As I said, it will be not less than 12. I'm thinking of 15 but it will not less than 12 in the full year and uh in this first half that is a H1 we are going to add minimum six to seven store and out of that four are sorry four No minimum five will be out of state means outside the Maharashtra."

"Great. So considering the fact that we we uh added like eight exclusive stores in second half of last year and adding uh another six seven stores in the first half of this year and we are also going ahead with the aggressive marketing uh and higher gold and silver prices and strong demand for fashion jewelry. Will it be fair to assume that growth in FY26 will be will more than offset the impact of one time inventory sale in FI25 as you mentioned earlier uh which means uh that we can expect FI26 PAT to be higher than FI25 PAT. See giving answer uh in a precise figure manner it is very difficult but whatever you are expecting that it should be higher in the top line as well as on the pack level basis. Yes. Uh I can say you will see same thing on the paper. Okay. So just a couple of more questions from my side. So assuming like 15 stores we add in FI26 and probably another 15 stores or 12 to 15 stores in FI27. Uh and the substantial marketing spend what we are doing in FI26 and 27. Uh it looks like we will again grow by around 40 50% in FI27. Is that a fair expectation like because we will be spending a good amount of money in in next couple of years?"

"Yes. Market is improving by uh 20 to 25% yi and uh we have progressed almost 62% in previous 3 years it will not be the same 62% but yes definitely it will be better than market and what you are expecting I don't feel that it is difficult to achieve because as I explained in my introductory speech itself I said that four stores are opened in uh Q4 And even one store which is open last which was only two days operating in last year and uh I can tell you uh very confidently that is the best performing store in out of all 14 store. So I'm uh thinking that the contribution from last year's store growth will get really reflected in current year's performance plus H1 store expansion of the current year will at least give us good uh numbers in uh H2 of the current year for the uh current year's first uh H1 6 to7 stores which we are adding and in current H1 we will get uh reflected that last year's newly added stores because first year generally it is a difficult to uh create a footprint but I can uh tell you that all are doing well and as I said the best of best was only for 2 days in previous year And that will be uh for full uh 365 days in current year."

"Great. Thank you sir. I will come back in the queue. So thank you. Thank you. Before we take the next question, I would like to remind participants that you may press star and one to ask a question. The next question is from the line of behold who is an individual investor. Please go ahead. Uh hello. Yes sir. Yes. Uh hi sir. Uh thanks for taking my question. Uh sorry to interrupt. Sorry to interrupt sir. Right now we can't hear you. Are you using your answer? Am I audible? Hming is there. Uh voice is not clear."

"Yes sir. So I would request you to change your answer. Yeah. Am I audible now? Ah now it is better. So so first question is that uh uh so you said that uh we will achieve the industry growth numbers. So if I have to uh uh ask now if we have achieved 88 crores of topline in the current year and approximately 37 38 crores of B2B so we to assume that we will achieve around uh 35 to 40% of the topline growth on 122 crores or on 80 crores on B2C growth. that is a one-time inventory sale. It is not going to happen every time. That inventory is getting replaced time to time as it is getting sold uh by the franchisee. So what you're saying is that uh look on a on an overall basis right uh the growth is likely to remain the numbers are likely to remain same 125 to 130 crores of the top line in FI26 versus 122 of the current year. I am repeatedly saying that I am commenting on B2C basis. So B2C basis I have given a separate sheet also in every my quarterly disclosure which is not statutoily required but I have given as a transparency for the organization and I'm committing that B2C growth will be there which will be passing the industry growth and so I 62% uh growth was there in the B2C sale otherwise it was 147% growth but I don't want to take that 147% as a credit I want to take credit for that 62% only because that is the ultimate customers have taken and bought that items and taken it to their houses"

"understood so are you saying that we will achieve the same growth of 62% listed on B2C what we achieved I I I I have not said same growth I said better than the industry but I will definitely it will be far better than industry 62% as a precise I cannot say because one becoming two is 100% two becoming 3 and a half is a 75%. And and and what is the industry growth right now? Industrial growth is between 20 to 25%. Got it. And then what is the reason for the drop in the gross margin in Q4 in Q4 I said human resource cost has gone up that marketing cost to be born in Q2 is 2 K rupees out of 3.75 cr in a full year marketing cost never gives you immediate return on same but I cannot expect something fantastic sale out of that"

"sir I'm asking about you on the gross margin the gross margin reduce uh from Q4 versus Q3. So was it a mixed issue in some uh kind of a sale or was it anything else? No. No. Uh during that period that silver cost has gone up but uh as we are working on the MRP basis the labels which are going in the uh shops are labeled earlier period uh rate based and subsequent purchases are little bit at higher price. You all know that silver prices started jumping in from January onward. So it is getting matched now again. So that kind of event may take place once in a quarter in a two or 3 years time because some quarter it may be that old levels are getting sold and replace levels are at higher input cost."

"Got it. And sir uh do we expect to uh maintain the model or improve from the current level minimum it will maintain but I am thinking that it will improve because of the scale of operation higher scale of operation will absorb certain cost which are there constant cost fixed cost and that will definitely give positive impact on our pack fact margin not pack margin I'll come back in the future thank you The next question is from the line of Shhat who is an individual investor. Please go ahead."

"Hello. Hello. Hello. Yes sir. There are just a couple of question uh the first one being uh that we have opened a couple of stores outside of Maharashtra. How do you see your product acceptance out of Maharashtra? How's the responses for now? See we have opened the store just 6 to 8 months back from now and as far as last FI is concerned it was just 3 to four months uh prior to the closure of the year. So uh getting exact feedback that whether these stores are doing well whether our brand is well accepted or not it takes at least 8 to 12 months time but yes I can tell you that these stores are doing sale some sale every day and some customers every day. That itself is a positive because we are moving uh all the line in the market and we are looking that many stores are not even selling a single item during the day for other brands and their stores are there but I can uh say that my every store is selling at least some sale because I cannot figure out precisely here that's why I am saying some sale and some sale is taking place and I I am confident that all these stores will do well and our USP is always there. We never close down any of our store. So we will make them uh viable, profitable and uh we will create a market for it. We are already started marketing in various places in various means and medias and mediums uh which are giving good uh means feedback especially Indor Gorga these are the two places which are outside the Mar state. And we are looking that some are every day some or other item is getting sold and amount every day there is a sale."

"Okay sir. And the same kind of question for the usab jewelry. How do you see the response from the market for it is just started marketing only on online. It is not offline in any of our offline store. It is not available. It is only for the online. Recently I think has been open for the pithura store and do you plan to plan such operations for other stores and say no pithura it might be that only uh kind of thing might have happened there something might be called by some customer and that's why to"

"okay okay that's it from my end thank you sir thank you the next follow-up question is from the line of Singla from BTG capital please go ahead. Uh thank you sir thank you for taking my question again uh regarding the marketing cost which you mentioned that there will be increase in marketing cost in FI26 and FI27. So can you say that these two years we will have a bit more one of exceptional marketing spend uh in these two years which will basically uh come down from FY28 depending upon like how the market perform and how we"

"no FY 28 it will continue but top line also will grow top line will grow but marketing first will not grow. So once we start pending it will not get all of sudden get the break and we'll come back to the 3 cr or 3 and a half cr that kind of thing. Great. It will continue but by that time topline also will increase and that increase topline increased margin will get absorbed the cost of this our additional marketing cost. Right. So so this marketing a continuous exercise that will be sure this marketing will be pan India basis because I think in this year you are saying we will be opening many stores in the metros outside Maharashtra. So can we expect that this marketing campaign will pan it will be area centric because nowadays you must be knowing uh observing that social media marketing like OTT platform uh that it may be a Sony max or Jio and all these things those are pinpoint based city based marketings are taking place and we are uh we are tied up with uh Jio entered one agreement also with Jio for spending and that initial uh spend we have started spending on that. Now Pithampura is there or the indoor is there where we are doing that pin code based marketing product based marketing age uh area wise marketing the various combinations are there available in this uh social media marketing and we are opting for that. So these areas will get covered whatever area we will go we can have that specific city, specific pin code, specific age group, that kind of marketing,"

"right? And currently, sir, how many stores do we have in your key cities like Pune and maybe other key cities in Maharashtra? And what kind of potential do you see in those those cities? In Maharashtra, I see at least many another 20 stores can get accommodated because there are many tire two cities and tire three cities where Pengui Sons is not there. But we are going to set up stores just like we have set up one store at Aurangabad, one store at Nagpur where Piangis is not there. Their plain gold jewelry is not there. But still we have set up our fashion jewelry store there. And Arangabad store is really doing well and Nagpur store is also catching the good uh interaction with the customers and good sale numbers are coming started coming from there also and it will grow in their generic way plus the marketing efforts which we are taking."

"Right. Right. And given that the marketing is is a quite a quite interesting thing which you are doing in in to establish ourel as a tang India brand. Uh so can we also expect the increase in number of franchise stores driven by this marketing spend more getting more visibility in uh in rest of India and uh are you seeing anything like we have already spent good money in last year. So are you seeing more inquiries for franchisee from Maharashtra or from of the part of India inquiries are coming uh right now in first half there are two stores which are going to open outside Maharashtra those are franchise stores only uh those are uh in north India and uh we are not offering any ROI based franchisee and that's why people who are interested in doing directly as a business if they want to enter they only can enter because on ROI basis I am not interested because I don't have got shortage of the fund for deploying store on my own or by the my master franchisee. So ROI based stores are getting developed or getting uh set by the people who have got shortage of the fund they are taking uh that on ROI basis and establishing franchises and so our franchise third party franchise speed may be less but that will be a serious franchisee who want to carry out the business rather than just deploying his fund. Right. Right. And so maybe the last question from my side would be like what kind of uh so we are already in the middle of June uh that is the first quarter of FI26. So what kind of demand environment you are seeing given the higher gold and silver prices. So are you seeing that uh the fashion jewelry getting benefited from uh the lower affordability in the gold jewelry segment?"

"Yes definitely it is getting better traction. I can say that uh Q1 figure will be better as compared to last year's Q1 figure as far as B2C is concerned. Don't take that one time inventory sale into consideration. But B2L growth you will see uh which will be a impressive growth and which will uh definitely spell out that there is a good demand for the affordable jewelry fast fashion jewelry. Great. Okay. Thank you sir. Thank you. Best of luck to you sir. Thank you. Yes. And I can here tell one more thing in connection with uh VTG group question that earlier we were having a combination of the sale which was uh depending on the PN varies sale earlier we were selling almost 82 to 85% uh through their channel now it has come down and at the end of last year it has come down to 77 to 78% that means we have achieved 10% sale on our own that is a brand store plus online sale also has gone up up to 4 and a half%. Then shopp store also has gone up to 6%. And overall we are depending not more than 75% on PNGSL because that was the always question from the investor side that whether we are depending only on PNGSL and their store there is a uh automatic footfall is there and that is giving us advantage. No, we are trying to minimize it or reduce it and in next 3 years time we want to achieve it at least to the 60% level on PNGSL and 40% level on our own. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Nicl from Perpetual Capital. Please go ahead."

"Yeah. Hi. Uh thank you for the opportunity. Um sir, you already answered one of my question which was I wanted to know the breakup of sales between franchisee sis and eo. Um I think I got it right. You have around 70 75% coming from franchisee, 10% from EO and rest from shop to shop and online. Um yes. Is it possible to know the working capital cycle and gross margins across these three models? No. Uh those are near nearby same margins are there because where that PO type of uh franchises are there which are PNGs franchises uh they are bearing the all other cost like HR and uh everyday equipment, rent, rentals and all these things and so even though uh I say I am giving them certain margins they are absorbing the cost in uh EVOS I'm bearing the cost of the rent uh electricity then other fixed expenses of the month plus HR cost. So uh margins are almost matching to each other. It is not a very much difference. I'm I think maybe franchisee you give some credit to the franchisee versus ebo right because there's only inventory as part of working capital"

"uh in shopper stop it is always on the realization basis whatever inventory we sell to them and whatever they sell out of that that sale realization they remit us almost all after every fortnite on MIS basis and for uh uh PNGs we are selling them outright and that is the credit period is not beyond 15 days to 20 days time. Okay. So is it um fair for me to assume that the trade receivables is uh probably for the uh PNG percentages and I'm assuming stop is and stop shopper shopper shops."

"Okay. Okay. Okay. Um so next question is on Is it possible to know the first five stores that you had? I mean I wanted to compare the five stores that you had in FI 24 growth in FI25. No no I don't get your question. So the five um own brand store that you had at the end of FI24 uh what kind of growth did those five stores see in FI25 the last year? 20%. Um and in general the own brand uh stores what is the steady state inventory levels in days uh that you see uh stabilizing for the stores maybe over 2 three years when the store matures. I am expecting three to three and a half times stock. Okay. Three to three and uh if very nice uh performing store is there it can have even a four time to five times stock term. Just like as I said that last store which I opened last year that store will definitely close with five times stock term. Okay. Okay. Uh one last question from me is um you may I mean you may have answered this in earlier calls. I have not attended those calls earlier but is it possible to know the economics of how much do you spend per store to set up a new store in terms of equipment and deposit and the in capital industry."

"No, it is a franchisees cost that fitment cost is a franchisees cost. Rent is generally paid by the franchisee. If it is a myself the rent depend on the location to location. Fitment is around 20 to 25 lakh rupees and other cost like uh hardware and other miscellaneous assets it is 2 to three lakh rupees and inventory wise generally 400 square ft² up to 400 square ft² if floor is there. Inventory requirement is around 30 lakh rupees level value. For the silver jewelry and for diamond jewelry it is around 50 lakh means now 50 lakhs rupees 50 k that is a 50 lakhs rupees and all I'm talking in the label price I'm not talking on the first basis."

"Okay. Okay. And what is the rational for starting um your business on blinket? I since you started books serve as a brand. Uh anything on what made you do that and what you expect uh from this this I have pushed only item around 1,000 rupees not beyond that. Okay. Okay. And how is the so far? It's a fast fashion and from blinket no one can buy 20,000 25,000 rupees item for 10 minutes delivery or 5 minutes delivery. It's all the gifting mainly the Okay. And how is the traction so far? I mean are you all getting what you"

"I just added that blinket in last uh 45 days it is just added. So I can comment it uh in the Q2 only not even Q1. Okay. Okay. No problem sir. All the rest um for the part. Thank you so much. Thank you. Thank you. Thank you. The next question is from the line of Akam Syia. from Vom Investments. Please go ahead. Hello. Yes, welcome. Uh, yeah. Congratulations on a good set of numbers. I had I have been following your company since the last two three quarters and in the past you have clearly mentioned that there is another company in the listed space called Pgardian uh that you are not related to them in any manner."

"No, not at all. Not at all. Yeah. Yeah. Right sir. So my question is that uh they are also entering into this uh lifestyle jewelry uh by the by the name of lifestyle if I'm not wrong. So my question is key do you see any consumer overlap between your brand and their brand since your name are quite similar and also s the businesses are also similar in a way uh so I just wanted to gauge that uh do you see any consumer overlap or like competitive uh advantage in that space that you have over them? They are in every segment where we are doing business not only in GI they are in diamonds they are in plain gold everywhere they are. So if I will keep always in mind that they are entering what will be the my status. So it will not be fair enough one thing. Secondly first more advantage will definitely to me because I have moved first in the past fashion jewelry and the uh store which you are referring that is a lifestyle that lifestyle store is mainly for the studed items and the cast casting jewelry of the plain gold. It is not the 9 to5 silver jewelry. There is one brand from their side which you have not mentioned. I will mention it is a silver style where they sell the fashion jewelry and that is similar to our GI fashion and we are selling diamond jewelry but it is affordable diamond jewelry and so that also comes under the uh precious fashion jewelry and that is with her. I don't have got study about their lifestyle store or their means uh whatever is getting sold there. What are the ticket size and all these things because I mainly concentrate on my own business."

"Right sir, thank you for the answer. Sir, second question is regarding your uh parent company. Uh sir, can you shed some light on like what can be the revenue or the market size they are catering to and how that if you could share that a bit of the information with us regarding which company and no they have their own they have got their own website you can click there there is a icon of the investor there is all balance sheet since 2017 till date even though it is not statutoily requirement for me I have kept all the balance sheets uh there quarterly results are also there you can uh take it from there because it is not good to comment anything on this call. It's a listed company for which I am addressing."

"Right sir and sir I have one more question. I saw that they were they also applied for IPO sometimes back but then 2018 yeah so there are no such plans in the coming future right for your parent company to come for an ICU in the near future. As I said it's very difficult to uh uh talk on this call. Okay sir. Okay. Okay. Thank you sir. Again congratulations for a good set from us. I'll get back in the Thank you. Thank you. Thank thank you. The next question is from the line of Nishan Johi from Equisense Advisor Private Limited. Please go ahead."

"Uh hello sir. Nishant here. Am I audible? Yes. Yes. Yes sir. Uh sir one query. Uh I think we plan to raise some funds of 15 kores. So either private placement or confidential issues. Now in what time frame it is planned and what could be the usage of those funds if you could share it because I think there is enough cash on the balance sheet as of now. Uh yes that cash balance is there on the balance sheet. It is out of the uh earlier preferential issue and uh that uh accumulated profits over a period that cash is lying on the balance sheet that will be mainly for the creating inventory for the forthcoming our expansions and all these things. This uh fund raise will be exclusively for the marketing cost purpose. It will be spent on next two years marketing cost which I have explained in connection with the RTG capital question that next two years they will be spending over and above our normal marketing cost around 5 cr rupees every year. So it will be in between somewhere 10 to 15 cr. Preferential issue will be there and it is presently planned for the promoter because they are saying that for marketing cost uh we are ready to contribute and uh it will be unquestionable subsequently that on marketing you are spend what is outcome and all these things because they are contributing it and that too with matching to the market price because savings formula is there so they cannot get exceptional discount or anything on that issue price. So issue price is al also not decided yet but entire process I'm expecting to complete before 31st August so one more question regarding to this uh as we see that uh company would be increasing the marketing and advertising expenses which in turn would increase the uh or in fact which could impact the profitability uh in how much time do you expect a next profitability jump or the result coming out of such expenses incurred in next one or two years."

"In VTG capital question, I already replied that even after spending that much on marketing cost, I'm expecting to maintain or improve the fact in absolute rupee. Okay. Okay. Okay. So, thank you. Thank you very much. No, thank you. The next question is from the line of Prashant Shivas who is an individual investor. Please go ahead. Uh yeah. So uh uh your voice is not my question. Your voice is not clear. Now is it clear now? Hello. Yes. Yeah. So my question uh actually was already answered. It was regarding the 15 k of uh funding. So yeah, I have no further question."

"Thank you. Thank you. The next question is from the line of Karthik Bart who is an individual investor. Please go ahead. Yeah. Uh thank you for the opportunity. Uh most of my questions have been answered. Uh you mentioned that you're targeting 10% contribution from online. Are we targeting this by the end of SI 26? Is that achievable? No no no exercise of minimum 2 and a half year. Okay. Because my also will keep on growing. So in percentage term if If I want to achieve that 10% it will take time. If I want to commit something in absolute term that my online sale will achieve 2 cr rupees or that kind of thing then I can commit you something. But on that percentage term it will be minimum 30 months period because from going from 4% to 10% in percentage time percentage wise also it is 125%."

"Okay. Okay. And I know more Even though I am spending on marketing, I'm not burning the cash. Cash burning kind of marketing will not be there. Abnormal discounting or putting it on others website and giving hefty discount and that kind of marketing will not be there. So online sale is depending on that once uh discount goes away that sale get down goes down drastically. I don't want to create that kind of sale."

"Got it. Got it sir. That's good to hear. Are you planning to go more aggressive in this online space in the coming year through stuff like digital marketing, search engine optimization etc. Same same thing cash burn. So I think many people ask hefty hefty commission they are asking and hefty discount they want to keep on their site and then only they are allowing so I need to burn my earnings then only I can go on other side. Okay. Okay. Okay. Got it. We are developing our own app on uh Google and iOS. Okay. Okay. Sure. I joined the call little late. You are alluding to senior management hiring during the last quarter's call. I think any other Yes. Last quarter we hired it and it is getting reflected in the higher HR cost. This year full year they will be working and they have started working and uh their outcome is all already on the paper. So we have already located substantial number of location for development in the H1 of current year. Uh as I said minimum not less than 12 shops will be open in current year. Out of that 6 to 8 will be in H1 and four to six will be in H2. And all all marketing and rigorous finding out the location, doing the surveys and all these things are done by these people. They are managing In the inventory we have increased the back end cost which will cope up to 60 to 70 shops. Right now we have got 47. Okay. Okay. Sure. So all put together we have about 80 stores currently. Uh we are likely to have about 120 right at the end of April."

"Yes. But that 80 includes that uh shopper stop count also. Right. Right. Right. Okay. Okay. Sure. Thank you so much. Thanks. Yeah, thank you. The next question is from the line of Rahul Kumar from Shifa family office. Please go ahead. Good evening sir. Am I audible? Yes. Yes. Yes sir. Yeah. Yeah. So thanks for the opportunity. My question is about uh do we segregate between diamond uh non-diamond sales? Yes. Yes. Very much. Okay. So a percent it is a last year if we want to compare margins. last year that uh threaded jewelry diamond threaded jewelry percentage was almost more than 45% in total sales."

"Okay. Any particular target going forward because of the sheer ticket size higher size of the diamond business provided the market recently introduced even a two lakh rupees necklaces also in GI. Oh fantastic. And that that has got good traction and interaction with the customer they are liking it and as uh we explained in earlier uh our call in last FY 24 that Valentine period we introduced one diamond necklace costing less than lak rupees near to one lakh rupees and we sold almost 80 pieces 80 plus pieces in that uh season. So higher ticket price is also getting sold in uh Gagi."

"So that is been absorbed that category has been absorbed. Sorry. thinking seriously about uh getting into that category in a normal way like uh but uh we are keeping it more uh pocket friendly rather than going in a high uh price high value and as it is margin wise inventorying carrying cost wise it is also not that attractive as it is attractive for the lower ticket sites. Got it. Got it. My other question is about uh for uh uh our investment fraternity uh So about business model like before uh getting uh conceptualizing this gagi business model uh have you studied any stable uh mature business model where the earnings were sustained uh business been expanded been run for decades and been scaled to many geographies like uh for example uh I think I came to know about Lisa in Australia. So can you give certain data points uh from that business model if you have stud or any other which you want to put on table for the the investment fraternity to understand because in India most the business are cash burning lesser history of uh you know success and so it's tough to compare uh uh peer- wise see uh from day one I am saying uh our model is not a cash burning model and we don't want to create anytime red figure in our P&L account we want to always in a uh black figure no brackets should be there for the profit and we have maintained that and uh if you see my balance sheet size on the issue rate it was a 27 cr and right now my pack is 28 cr so uh from that you must have understand what is the uh thought process about the PNGs as a family and it's a 190 year old legacy is there for us and that legacy itself is our brand ambassador and We have never shut down our any of our shop. We have never pulled down any of our name board. And uh same thing will happen with the PNGs fashion jewelry also. So uh I have not studied any model. Yes. Uh your question is there but I am I have not studied any kind that kind of model but I have studied that if I go slowly steadily but firmly with the thought process good thought process and good delivery of the business good execution of the business I will be successful."

"That's a great just to put it on table like Loisa has been into 35 uh nations presented nation across the world. So they have scaled it very well profitable sustainable. So uh as a long-term investor can we expect the same like like like are you basically our strategy is India strategy? Got it. Got it. Correct. In our plane gold company also we don't have any overseas. in GI also. Right now we are not looking to overseas because online uh presence or the app presence make you a global presence."

"Got it. Got it. And any string in place to avoid the seasonality of the uh traditional uh jewelry business model? Uh because more or less the placeholding or the mind uh uh holding of the of the consumer is more or related to jewelry when it comes to fashion jewelry because we have a jewelry in fashion jewelry world right so no I don't don't get your question so so we have a seasonality in in a business right and that seasonality"

"yeah but we are trying to avoid that seasonality in the business uh and trying to get uh away from the traditional jewelry seasonality model not uh See in India at least festivals are very important whether it's a fashion jewelry whether it's a traditional jewelry because during the festival season there is a more gifting affordable jewelry is used for the gifting also to sister brother or the colleagues friends. Mhm. And that time that sale takes some push or the Valentine day that fashion jewelry definitely will have more sale just like a plain gold jewelry there is a some seasonality to fashion jewelry also. It is not that because it's a fast fashion or the affordable it can get sold 365 days equally."

"Got it. Fantast. So in Q4 also we are getting some better uh figure as compared to Q1 and Q2. Thank you. The next question is from the line of Kiran who is an individual investor. Please go ahead. Hello Amit G. Yes good evening. Good evening. Uh just one question. Uh are we thinking of going mainboard? So now I think we have uh got couple of years and yes yes we are compl In every respect we have got more than sufficient paid up capital which is prescribed by the requirement. We have got network everything is there. Only thing it got postponed by one year because the rules has changed from 2 years to 3 years. We are completing 3 years in December 25 and we will start exam there on to shift from uh this theme platform to mainboard platform. Okay. Okay. That would be great because you know that would throw up on our uh shares for other smaller"

"and we are compliant in every respect. We are disclosing quarterly result with notes and everything. I'm I'm aware of that. So from that point of view don't have to do anything. Yeah. Exactly. Yes. Yes. Yeah. Okay. Good. Good. Good. Because that will throw up our shares open to many small investor who are interested to buy. Many of my friends also wanted to but uh but our ticket size makes them you know wait a little bit longer and they were asking me that when our company will come on mainboard so I thought let me check with you"

"it will definitely come on mainboard okay okay thank you that's all from my side thank you the next question is from the line of Ash Tony from family office please go ahead sir any strategy going only for metros rather than tire two tire three because you mentioned indoor uh there is lot of demand. So any reason strategy by in Indor we are already there. Yeah. So but you said you want to expand in metros but why not tier 2, tier three because of the income and other. No tier 2 we are already there and metros main expansion we are taking place because fast fashion jewelry is more popular in metros where that plain gold jewelry has got little traction because of the limitation of people moving from one place to other place and and social safety and all these things and corporate culture that culture is giving more attraction to the fashion jewelry. So we are first targeting the metros whenever it is outside Maharashtra within Maharashtra we are moving to tire two cities we have started Arurangabad and it is doing very well Nagpur it is doing very well Indor is also that way tire two city only even though it's a big city as far as classification it is a tire two city"

"and in terms of any new category New variety you are planning to launch this year either online only or in certain channels like you mentioned in blink of any other thing. We are trying for we are trying for 9 karat less than 2 g weight and that will be across offline or no it will be across offline because it's a gold 9 karat gold. Okay. Okay. And uh other thing is uh you mentioned uh your marketing. So how How are you checking the E marketing only top line? How are you measuring the uh RO on the marketing spend which you're planning? Like what's our internal metrics to measure that? Is it only top line or what how exactly are we planning to check our marketing?"

"I don't calculate ROI for the marketing because uh calculating ROI on marketing is like uh counting the birds in the sky. Uh no one can tell you what ROI will be there on the marketing. Once I spend it is going to be a spent amount. it cannot get recurred and how much sale will derive from that marketing it's only estimation there is nothing beyond that so I see that my marketing cost in relation to top line should not exceed 7 to 8% of the top line that's why I said in the current year I will uh spend abnormally over and above that 7 to 8% uh uh lock it may be 10 to 12% but calculating ROI uh being a finance person till that date I am not in position to uh really understand how ROI can be calculated for marketing it is very difficult because if I spend today 1 cr and say this 1 cr spend will result into 10 cr rupees sale it is some magical imagination"

"okay that's fine uh and the last question on the blinkage so you want to expand blinkets across India or again wherever you are located right now No, no. Wherever we are present there, we can provide them the uh inventory because delivering inventory to their that dark warehouses is also a task. So wherever we are there in nearby their area like now we are there Di Gorga we are thinking to expand in North India somewhere in Punjab Uttar Pradesh. So in that area we can think about the blinket starting blinket tire. in more aggressively because that uh moving the inventory is a very uh means uh task for"

"and is assume you launch uh your jewelry range and blink it across all the stores this year or it will go on the next year for all all the locations what you have no I don't get your question is it safe to assume you will launch uh your jewelry range and blink it across all locations where you are currently having the store in this we have already started talking with them. So we uh need to understand their requirement and the availability with us. Both things needs to be matched. Right now it is in Pune and Mumbai."

"Okay. Okay. Thanks and all the thank you. Thank you. As there are no further questions from the participants, I would now like to hand the conference over to Mr. Amit Model for closing comments. Thanks everyone for joining the call and making it a very meaningful call. Whatever we have discussed is a meaningful and value addition for both of us for you as well as me. I can understand what questions you have got and how I can make them good uh uh performing from my result and thanks once again to everyone who are joining and I promise you that we will meet in next uh H2 also. Thank you."

"Thank you on behalf of PNGs Gagi Fashion Jeweleries Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines."