Cantabil Retail India Limited (CANTABIL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Cantabil Retail India Limited Q3 and 9 Months FY '24 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. Before we begin, a brief disclaimer. The presentation which Cantabil Retail India Limited has uploaded on the stock exchange and their websites, including the discussions during this call contains or may contain certain forward-looking statements concerning Cantabil Retail India Limited business prospects and profitability, which are subject to several risks and uncertainties, and actual results could materially differ from those in such forward-looking statements. I now hand the conference over to Mr. Vijay Bansal, CMD from Cantabil Retail India Limited. Thank you, and over to you, sir.

Good evening, everyone. On behalf of Cantabil Retail India Limited, I welcome everyone to the Q3 and 9 months FY '24 earnings conference call of the company. Joining me on this call is Mr. Deepak Bansal, Whole Time Director; Mr. Shivendra Nigam, CFO; Mrs. Poonam Chahal, CS; and Marathon Capital, our Investor Relations Adviser. I hope everyone had an opportunity to look at our results. The presentation and results release have been uploaded on the stock exchange and our company website. We are pleased to announce an interim dividend at the rate of 20% per equity share. Our company has delivered good financial results with a revenue growth of 11% in 9-month FY '24, despite muted consumer demand. However, we have observed that despite the overall muted market conditions, our customers have up their spends leading to increase in average bill value. On the expansion front, the company accelerated its store expansion strategy by opening 66 stores during the first 9 months of the year. We remain focused on pursuing our long-term strategic agenda by further expanding our reach into newer markets and ensuring an elevated shopping experience to our customers. I'll now hand over the call to Mr. Shivendra Nigam for giving update on the financial performance of the quarter. Thank you.

Thank you, sir, and a very warm welcome to everyone. Coming to the financials. Stand-alone performance highlights for quarter 3 FY '24. Revenue from operations for quarter 3 FY '24 grew by 7% to INR 174 crores as compared to INR 163 crores in Q3 FY '23. EBITDA for quarter 3 FY '24 stood at INR 53.9 crores as compared to INR 55.9 crores in Q3 FY '23. EBITDA margin earned in Q3 FY '24 is 30.9% as compared to 34% in Q3 FY '23. Profit before tax for quarter 3 FY '24 stood at INR 30.9 crores as compared to INR 36 crores in Q3 FY '23. PBT margin for Q3 FY '24 stood at 17.7% as compared to 22.2% in Q3 FY '23. PAT margins for quarter 3 FY '24 stood at INR 24.1 crores as compared to INR 27 crores in Q3 FY '23 and PAT margin for quarter 3 FY '24 stood at 13.8% as compared to 16.5% in Q3 FY '23. Now coming to the standalone performance highlights for 9 months FY '24. Revenue from operations for 9 months FY '24 grew by 11%, that is INR 421 crores as compared to INR 380 crores in 9 months FY '23. EBITDA for 9 months FY '24 stood at INR 118 crores as compared to INR 123 crores in 9 months FY '23. EBITDA margin for 9 months FY '24 stood at 28% as compared to 32% in 9 months FY '23. Profit before tax for 9 months FY '24 stood at INR 55 crores as compared to INR 67.3 crores in 9 months FY '23. PBT margin for 9 months FY '24 stood at 13.1% as compared to 17.7% in 9 months FY '23. PAT margin for 9 months FY '24 stood at INR 43.9 crores as compared to INR 50.4 crores in 9 months FY '23. PAT margins for 9 months FY '24 stood at 10.4% as compared to 13.3% in 9 months FY '23. The company added 66 stores in 9 months FY '24. With this, the company operates 533 EBOs, out of which 379 are the company-owned stores and 134 are the franchisee based. The retail area is approximately 6.38 lakh square feet as on December 31, 2023. Now we may begin the question-and-answer session.

[Operator Instructions] Our first question is from the line of Jatin Chawla from RTL Investments.

My first question is, could you talk about what was the SSG in the quarter?

So SSG for us in the quarter is actually on a lower side, it is minus 4%. In terms of value, it is minus 4% and at the same time it's -- quantity is 0.9%, minus 0.9%. So because of the slight correction in prices, it is minus 4% SSG front for the quarter.

Got it. So, yes, I observed this in the numbers there that your ASPs are down Y-o-Y. So is it because of higher discounting or have you taken down MRP prices itself?

Yes. So basically, the main 4% down is on the basis of we have not passed that completely, that's not about the discount. It is the lower price, 4% is actually the lower selling price.

Okay. So the MRP itself has been reduced?

It has -- the MRP has been reduced because there was a correction in the raw material prices. So due to the correction in the raw material prices, we have reduced the MRP. So it means the correction in the raw material prices was passed on to the customers.

Got it. Yes. Yes. I noticed that despite this price correction, your gross margins actually are very strong.

Yes. Exactly.

The other thing I was thinking was that in this quarter, for you, winter tends to be the -- there are a lot of winter products that gets sold which have higher ASPs. Now product mix, same also should have been -- maybe would have been negative. So what is the impact of that?

The winter items haven't gone down much, but the -- regular items like the shirt and trouser, there is impact on that side. So if you see the quarter, October, November, December, there was a shift in the Diwali festival. Last year, Diwali was in October, this year Diwali came in November. So in October, the sales are down much because the volume was in November. And in November, there recovery was not that much which was expected due to Diwali. So that's why there is a 4% negative same-store sales growth. In December, we got the flat, there was no dip in the sales. So that's how the 3 months came to minus 4% in SSG.

Got it. Got it. And in your press release, you mentioned that now that the winter is good in 4Q, you are seeing some recovery in revenues. So should we expect a positive SSG in 4Q or given still weak demand environment, SSG will remain muted in 4Q as well?

There is still pressure on the demand side in the quarter 4 also. So we are -- we hope that it should get flat, but there is a muted demand in the market only in quarter 4 as well.

Understood. Understood. And last question from my side. You have added almost 60-plus stores in 9 months itself. So what's the target for store opening now for FY '24 and '25, if you could just talk about that?

We have the same targets. We plan to open 80 to 90 new stores in the next financial year. Though there has been a muted demand, but this hasn't impacted the sales expectation from the new stores. The sales expectation and the results we are getting from the new stores are as per the expectations. So we have kept our expansion plans intact for the next year.

Our next question is from the line of from Ankit from Subhkam Ventures.

A couple of questions from my side. Sir, what was the share of winter products in this quarter?

Share of the winter product?

Yes.

So basically, the overall volume what we have been sold this quarter is mainly were on the November and December. That is on the winter side. So approximately if I just core winter product, so that is the same thing which is coming in this quarter, particularly, approximately 60% in terms of value, which is coming from the winter category in fact.

Okay. And what was it last quarter, same year? I mean, Q3 of last year?

It is approximately percentage is the same one. 60-40 is happening in the quarter itself, in the quarter itself for the winter material, apart from like shirts and other categories. Exact number I can give you separately.

What I was trying to understand was that the slowdown is across, I mean it is not only on the winter product, right?

That's correct.

No, the slowdown is majorly in the shirt and trouser category. Winter category what we have seen is stable. Because in December, the trend may be a little bit because there was a late onset to winter, but in January, we have seen the winter category performing well because there was late onset of winter, so it was recovered by January only.

But in January, you would have to discount your products at a higher rate to clear the inventory, right?

But it is the same what we gave last year. So there is no increase in the discount compared to the last year in January.

But in spite of a good January, you still feel that your SSG could be negative in this quarter?

Yes, it is due to the regular items like shirt, trousers.

No, no, I'm asking, sir, that in spite of a good January month, you still feel that your fourth quarter SSSG might be negative.

Yes, its a muted one. The quarter 4 itself, the January numbers were also slightly on the muted side. So it would be either flat or slightly...

Okay. Then my second question is now considering the fact that there has been slowdown since 9 months, so your overall results have been subdued since last 9 months and you are still expanding your capacities, right? You are increasing your store count. Now is there a point wherein, you will first see that demand coming up and then you will expand your stores or in spite of the muted demand, you will continue with your expansion plans?

We have kept our expansion plans intact because our new stores are doing pretty well. The expectation from the new store is coming what we are expecting. The market is in the new towns are positive for us. So we have kept our plans intact. And as the new stores, which we are opening are not going into the like losses or there is not a breakeven problem in the new stores, now new stores also are getting into the profits and giving us the good sales.

Okay. And lastly, sir, now assuming that the market demand remains at -- the market conditions remains like this for a couple of more quarters because we are entering an election year and there could be some slowdown. So considering that thing in mind, is the company putting some efforts to improve its performance in terms of growth rate or you will purely depend on the market conditions to improve and then only you will show a good growth rate? I mean what are the extra efforts which the management is trying to put in, assuming that the market conditions remains the way it is for the next 2 quarters, at least?

The next quarter -- the next financial year will be an election time. So in election time, it is assumed that a lot of money comes into the market. And we expect demand to grow in the next quarter from the April onwards. And we have introduced some like staff incentive programs, and we have like working on the procurement and the designing side also to improve the sales. So these 2 measures we have introduced to get the same-store sales growth in a positive note in the next financial year.

Okay. So lastly, should we now assume a relatively lower margins on a structural basis for you? Or you feel that you will regain your erstwhile margins of 30%-plus in EBITDA or 13% at the bottom line? So what would be the sustainable margins, say, we should work with for next year?

So the same thing. Ankit, we also mentioned earlier, on a longer-term basis, all the plans from the management side is on a longer-term plan. So these are the volatilities in the market for the current scenario. So there is no change in the plan. In fact, in the EBITDA this year, obviously, the EBITDA margin, as we mentioned, 30%, we are very sure from next financial year onwards quarter-on-quarter basis this would be on the same numbers. This year, slightly on the lower side. But overall, on a longer basis, quarter-on-quarter basis, we are targeting the same number. And almost we are very hopeful to achieve those numbers.

Okay. And sorry, one last small question. You recently raised money via equity. So I mean, you were already debt-free and what our calculations suggest was that the internal accruals were enough for you to grow at, what, 20%, 25% growth rate. So what was the rationale of this money raising? And are you going to accelerate your expansion plans or what is the thought process?

So in this case, the FII which just been coming, so obviously, they want to be the part of impact, that's correct. We are the debt-free company and everything, expansion was the plan from the internal accrual only. But there are -- they wish to come as a part of the -- they want to put money in the company and want to be the part of the growth plan. So as such, that's -- obviously, that would be helpful in improving our margins as well. When the cash will be there available in the books, then we can have a better negotiation and we can improve on working on our gross margins. So that's the basic idea. There is no other change in the plan as far as that money which is coming in the concern as well, that will help in improving our margins and better negotiations as well.

So margins will improve, but your working capital will increase because of lower creditor days. Is it the right way to assume?

We can assume that. We can assume that. It would be giving you a better -- probably everything is just would be putting in the working capital, so our gross margin would be improved.

Our next question is from the line of Rrajesh Sharrma from Anand Rathi.

Sir, I have [Technical Difficulty].

Sir, the line from Rrajesh Sharrma has been disconnected. Our next question is from the line of Palash from Nuvama Wealth.

Sir, my first question is, when do you think that, you would be back to the positive SSSG territory?

Yes. In the next financial year, we are planning that we will be back in the positive SSG. This is due to the reasons that our main SSG is negative due to the fall in the ASP. So we have planned to like increase our margins and there will be increase in the ASP. So with the increase in the ASP, we hope that our SSG will be back to the normal.

Okay. And sir, you mentioned that your new stores are breaking even at a normal. So is it normal or there is some delay? Like your mature stores are showing negative SSSG, but newer stores are showing some delay or they are at the normalized historical level in terms of breakeven periods?

No, in terms of breakeven period, like what was earlier it is still there. And our new stores are doing well. Breakeven period is coming to be 1.5 years. So it is the same thing we are expecting and the same performance stores are giving.

Okay. And sir, margin guidance for this year, what would the level be?

So obviously, this year, margins in terms of gross margin we are maintaining. So EBITDA and PAT would be slightly on a lower side, slightly. But over on a longer-term basis, we are keeping the same targets.

Yes. So you're confident that you would be back on the normalized 30% [indiscernible] from next year onwards?

Yes. That was the plan for the company, and we are working on it. What the 30% EBITDA margin plus/minus always, I said 5% different thing, plus EBITDA margin keeping 28%, 30% in mind and 17%, 18% of the -- sorry, that's post-Ind AS 17%, 18% of the margin we are keeping. So that would be all the plan.

And sir, my last question is any update you could give on your footwear stores?

We have opened right now 4 footwear stores. So 2 more are in the pipeline. So initially, we have planned that we will be checking the market with the 5 to 6 new stores. So after these 6 stores get opened, we will decide how to go further about this category. And -- but footwear category, we have kept in the old store also. They're around 50 old stores, family stores where we have kept the footwear. And we are getting a decent response in those stores. So we are planning that in the new stores which are coming, we add menswear category and the footwear category both.

[Operator Instructions] Our next question is from the line of Shrinjana from RatnaTraya Capital.

I just had a small bookkeeping question. So [indiscernible] also calculate like gross margins after the factory labor expenses?

Yes, correct. Correct. Correct. Including all put together, from the face, if you see, it is factory labor added in this month. I'm giving you the gross margin, reducing those numbers.

Yes. I just wanted that number for this quarter, what could be that?

Yes, yes. For this quarter, we'll be able to deliver a gross margin of 59%, up to 9 months, I'm telling you, which is as compared, so there is no reduction in the gross margin, no downfall.

Okay. So for 9 months, it's 59% after the factory labor?

After factory labor, and all put together, yes.

Our next question is from the line of [ Nirav Jain ], an individual investor.

Sir, you had sometime back spoken about the focus on online sales as well. Just wanted to check in terms of proportion, where has that number reached? And do you see -- because of that particular portion of sales, do you see any impact on the margin because of online sales?

So, right, what I -- we told our earlier target, same are on track. Last year, we have been able to achieve 2.5% and this year, we promised approximately 5% to 6%. So this year, we'll be able to close approximately 6% of our total revenue on track. And yes, there is a slight reduction in the margin that was approximately 1%, which is because of the increase in e-commerce sales, so that has also been factored.

Okay. And sir, just a follow-up question to some of your earlier asked questions. I just wanted to check what is it that you're doing different in the new stores where you believe that the sales are happening positively compared to your age stores where you believe that there has been a decline in SSG growth? So there must be something new or better which you must be doing in new stores. Is that the case? Or its just that you're trying to capture new markets through the new stores and hence seeing positive results?

See in the new markets, we are this time doing slightly bigger store. Our new average store size in the last quarter is coming to be something like 1,700 square feet. And our average company store size is 1,200 square feet. So there is a good increase in the average store per site in the stores we opened in the last quarter. And by increasing the size of the stores, we have seen a positive impact in the sales also. Bigger stores are giving the bigger revenues. And definitely, the visibility has also improved much due to the bigger front in the -- bigger front of the bigger stores. So it's not just about capturing the market, it's a business sense also. If it's making a good business sense, then only we are going for the expansion. So -- it's a pure business decision to go for a good, bigger stores and the new expansion.

So will it be right to say that a PSF will go up probably, if I have to project it for the next one, forthcoming years, are you seeing uptick in the PSF as well because of this particular change in store size and all?

PSF generally tend to go down in the bigger stores. But the retail cost remain same in the bigger store, retail cost is not going up. So in the totality, our revenue is going up with the bigger stores. But yes, the per square feet sale is not going up with the bigger stores.

And sir, last question, in terms of the projected sales growth number of stores growing, what could be the mix of COCO versus FOFO store?

It is going to be the same, 75% COCO stores and 25% FOFO stores.

Our next question is from the line of Rrajesh Sharrma from Anand Rathi.

Sir, a couple of questions from my side. So first one would be, despite, improvement in the gross margin in Q3 as compared to previous year, the EBITDA has reduced significantly. Any specific reason for that?

In terms of reduction of EBITDA, right?

Yes, sir. Yes, sir.

Same thing. Same thing. So largely, there is a -- because 4% reduction is the same-store growth. So obviously, expenses are full. In fact, on an annual basis, slight increase in terms of existing manpower or rental, you can say. So that's the only thing, but everything is watchful. So overall, the reason for reduction is this. In terms of EBITDA as compared to last year, quarter-on-quarter is mainly expenses remain intact. However, the same-store sale growth is not being there.

Okay, sir. Got it. And sir, what would be the proportion of online sales and where we are present in that manner?

So online proportion this year, as of now, out of this 430 -- INR 421 crores of sales what we did, 27 was the exact number for the e-commerce. And overall annual basis, 6% approximately, we are closing for this financial year.

And are we making any profit on this?

Yes, yes, we're doing. It is not on that much of gross margin is there as compared to offline, but we are on a breakeven side on this particular segment as well.

Okay. And last question. And what is the current manufacturing capacity? And are we planning to add more capacities in next financial year?

So existing capacity for our factory is approximately 15 lakh pieces which we are enhancing. By the end of this financial, it should go approximately 18 to 20. But overall target for the company is on the manufacturing side, 2/3 of 60% from our manufacturing, including job workers, factory, plus job worker. Job worker are going to increase the moment our volume will increase. And the balance 1/3 or 40% would be from the FOB side for knitting materials, in all the knits and accessories. So that ratio broadly would be the same, going forward as well.

Our next question is from the line of Yash Bajaj from Lucky Investment Managers.

Sir, you mentioned that in 50 stores, there are -- we have introduced our footwear line and you said that there are positive responses from there. Sir, can you explain, I mean, how much of those 50 stores -- each store, how much footwear contributes to the overall sales, as of today?

It's very less right now because it's only about 2 months that we have introduced. So it's too early to say -- comment on the figures. So give us some time, by the end of this new quarter, by the March end, we will give you the healthy figures on the shoe side.

But overall, sell-through is there what we expected in footwear as well.

Okay. And how much time will we take to expand the entire footwear lineup to all our stores?

We are not planning to expand it to the all the stores because there is a limitation of the space in the old stores. So in the old stores, we have only put in the 50 stores. In the new stores, which we are taking in bigger size, we are putting the footwear. In almost 70% of the new stores, we are putting the footwear. So in the old stores, we are not planning to do it in all the stores.

Okay. Got it. And my last question is that the money we raised in the press, just wanted to understand the reasoning behind not investing in increasing the store -- the rate of growth in the store expansion or in the manufacturing capacity than getting more benefit in the procurement side of it when it comes to the material.

So as I explained earlier as well, the purpose was not to increase in number of stores because we are always been a believer of sustainable growth. So there's no point of making that store count double from 80 per year to 150 because the location finding is not -- so we are being there. And the money which has been there was the existing working capital, it's a plus for the company, that there is some cash there in the books, which we will be able to explore in terms of and improve our gross margin. So that's the basic idea behind this, not making the store count double.

And that benefit we would get for another year or something, how will that be then?

We are expecting this. We are expecting this. See, once the negotiation and other things. So probably that because the e-commerce share has been increasing. So however, maintaining the same gross margin is a challenge or 1% improvement would be there. So yes, at least we can expect couple of quarters would be there to get these results.

Our next question is from the line of Palash from Nuvama Wealth.

Sir, what would be the 9-month SSSG in volume terms?

Nine months SSG in volume terms is 0.5% negative.

Our next question is from the line of Pallavi Deshpande from Sameeksha Capital.

Just wanted to understand on the women section. I understand you want to increase our presence there. So what steps have you taken there in terms of -- you could put it in terms of capacity manufacturing or in terms of the women's store -- separate stand-alone women's stores any that we have opened?

Yes, today, we have around 33 exclusive women store, and we have around 11 to 12 more exclusive women's and ladies -- women's and kid's store in the pipeline. And in the women's, we are majorly doing it through the third-party fabricators and the FOB. In-house production of the women's is not there. And we are planning to go it forward also in the same format. The women's new merchandise will be only outsourced or will be fabricated through the third-party fabricators. But yes, women's category is doing well. The new stores which we have opened are giving us the good revenues. So that's why 11 stores more are in the pipeline for the ladies and kids.

So out of the total openings this year, how many were women's?

So it will be around 15 to 20 stores would be the women's stores this year, exclusive, ladies and kid's stores.

Right. And sir, second question was in terms of the -- what would be -- in the malls versus ratio of stores malls to The High Street. And are we seeing that the -- which store performs better, one in the mall or The High Street?

Yes, we were around 83% of our stores in The High Street and only 17% would be stores in the malls. So we are majorly High Street brand. So -- but yes, mall stores are also not doing well. We are not doing the stores in the C-class malls or the malls which are not performing well. So the performance in the mall majorly depends upon how is the mall doing. Like if mall is doing great then majorly the brands in that mall used to do well. And where we are present in the malls are majorly in the B category. We are not present in the very big malls, and we are not present in the very bad malls. So in the medium category of malls, we are there, and the sales in the malls are also good. It's quite decent.

And sir, the new openings would be more in malls or more on The High Street?

It will be more in The High Street.

Right, sir. And last, what will be the investment you are planning for in terms of the women's side for these stores, it would be the similar to other stores?

So investment in the women's store also come to be like INR 50 lakh per store. So -- means women's and kid's store size is lower than what the men's store and the family store are doing. So investment is less in that category. So it's come to be INR 50 lakh for the women's and kid's stores and it rounds come to INR 65 lakh will be men's and the family stores.

And the inventory term will be lower for these stores?

Approximately inventory days are the same for all the categories. There is not much difference in the category wise.

Our next question is from the line of Saloni from Val-Q Investment Advisory.

Am I audible?

Yes.

My question, sir, I see raw material expansion and job work charges to be quite fluctuating on quarter-on-quarter basis. sir, is this like even if we take it out percentage to sales, it's quite fluctuating. So can you just give me an idea about why is it so fluctuating?

So in our case, there is always when you're coming for the trading account, the trading account has to be the combination of own manufacturing as well as job working. So gross margin is important, what we have been maintaining. Some slightly up and there would be there in terms of job work. We did lesser job work charges is there because last year, already some inventory pressure was there, and we made slightly higher inventory last year. Cash flow was more used for the inventory last year. So this year, we corrected all the inventory. So overall, my gross margin is to be maintained, which is the part inclusive of job work charges as well as own manufacturing and FOB, so all put together, gross margin has been maintained.

[Operator Instructions] Our next question is from the line of [ Bijal Shah ] from [ RTL ] Investments.

My question is on your footwear business. So the footwear in whatever store you are introducing, is it also eligible for buy 2 get 5 scheme?

So come again. No, the bulk offer is not there on the footwear. In the footwear, we are giving a flat discount only because it's really tough for anyone to buy the 5 pieces. So the flat price offer is only suitable for the footwear, and we are keeping -- going with that.

Sir I'm asking that, let's say, I buy 4 pieces of clothes and 1 of footwear, can I club it that way or that is not possible?

No. Mixing is not there, mixing is not there.

Footwear category is not with the garment.

Margins are not same.

Because there are different margins in the footwear and the margins in the apparel category are different, so we -- so they cannot be mixed together.

Okay. Okay. And I mean how many stores do you plan to roll it out probably -- so all the new stores which are coming, would there be footwear on day 1? And older one you said 50 stores, but in the new stores, all of them will have it?

So in the old store, 50 stores we have identified where we have kept the footwear. So these were majorly the bigger stores, where there was the availability of the space. And the stores which were slightly smaller in size or there is a space constraint, we haven't kept the footwear. And 4 stores we have opened for the exclusive footwear category and the new stores, which are coming, around 70% of the stores will be carrying footwear.

Okay. Sir, the second question is on your women's offering. So sales per square foot in women's is similar to what you see in men's or it is very different?

Sales per square feet is lesser in the women's and kid's category. But it's improving year-on-year. We have seen this time an uplift, good growth in the women's category in the winter season. So we hope that's why we are going slow also in the women's EBOs. So -- but we hope that this category will give good revenues in the future, and it will be growing constantly year-on-year.

Besides sales per square foot, other things like -- I mean, the proportion of sold on discount and proportion of return, is that similar? Or how I mean -- how would you say broadly the economics of women's business, what is men's business? Do you expect to evolve, not today, but probably maybe in 2, 3 years when it stabilizes, how do you expect it to evolve?

Yes, the retail cost is on the higher side in the women's and kid's store right now than the men's stores. But what new stores we are opening are giving us good returns. Initially, there was some error also in our part because when we went to the ladies and kids category. But right now, we have also got the right strategy to expand in the ladies and the kid's category. So new locations, which we are identifying and the new stores, which are performing are better than what we opened initially. So we are expanding that -- expanding the ladies and kid's category, and we hope it -- business will improve further in this category.

Our next question is from the line of [ Jatin Chawla ] from [ RTL ] Investments.

If you could just talk about your absolute volumes this quarter?

Absolute volume we have done is around 13,88,000 pieces we have sold in this quarter.

Got it. And inventory at the end of the quarter and Y-o-Y, how is it kind of moved? Because I think you spoke you have corrected inventory compared to last year.

Correct. So inventory is also on a very decent size. Since December was the highest of the -- all the quarter in terms of inventory because of the high value of the winter product. So this year by INR 250 crores as of now, INR 250 crores is the inventory for the end of the 31st of the December, so which we have been expecting it being slightly lesser in terms of days for the end of the financial year.

And what was it last December, because last December also the same winter?

INR 238 crores was the last December, which is being this year for INR 250 crore because we have been increase the number of stores.

Right, right. And any difference in SSG trends that you observed in Tier 1 and Tier 2 towns versus Tier 3 and Tier 4 towns?

No. There is the same trend at most of the places, we haven't noticed much difference in the SSG trend with respect to the Tier 1, 2 and 3 towns. So it will be almost the same.

Our next question is from the line of [ Ashish Kumar ], an individual investor.

I have just 2 questions. As you told previous con-call that the revenue target of INR 1,000 crores in next few years, any change in guidance for the same?

So yes, our long-term target is same. So considering the current financial year slightly, and still we are hoping to achieve this target of INR 1,000 crores in the middle of -- FY '26 is slightly maybe extended a few more quarters. So middle of FY '27, we will be able to achieve those numbers. So there is no change in long-term strategies and plans.

Okay, sir. But the previous financial year '23 and financial '24 revenue approx are same, more than 25% growth like that.

Obviously, yes, '23, 20% what we have projected, not this because of SSG, this year is a problem, but we are very hopefully next year, this would be covered because last year, our base was slightly on a higher side. So over on a longer-term basis, yes, whenever we are giving any number, plus-minus 10% would be there. So couple of more quarters would have been there. So by mid of FY '27, the numbers -- we are targeting the same numbers.

Ladies and gentlemen, that was the last question for the day. I now hand the conference over to Mr. Deepak for closing comments.

I would like to, once again, thank you all for joining us on the call today. We hope we have been able to answer your queries. Please feel free to reach out to our CFO or IR team for any clarification or feedback. Thank you all.

Thank you. On behalf of Cantabil Retail India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.