Note that this conference is being recorded. I now hand the conference over to Mr. Dhruv Jain from Ambit Capital. Thank you, and over to you, sir. Thanks. Hello, everyone. Welcome to Q4 FY22 Earnings Call of TTK Prestige Limited. From the management side, today, we have with us Mr. T.T. Jagannathan, Chairman, Mr. Chandru Kalro, Managing Director, Mr. K. Shankaran, Whole Time Director, and Mr. R. Saranyan, Chief Financial Officer. Thank you, and over to you, sir, for your opening remarks. Good afternoon, and thank you for that. Just as to preface what the quarter looked like, it was our best ever Q4. That is one, and I think it was a great end to what we call a good year, our best ever year. We crossed INR 2,500 crores in revenues this year. We had a 16+% growth for the Q4 in terms of top line, and 24.5% for the full year. We are one of the few, if not the only company in our peer group, which has maintained margins in the face of such a huge volatility in input costs and the cost increases. Even though the Q4 had almost most of January washed out for Omicron, in terms of the offline retail, I think all our channels have done exceedingly well during the quarter, and we've reported excellent results. And, I now open the floor for any questions. Highest ever, EBITDA for the year in the last three years. The percentage EBITDA for the year that we've reported, in spite of all these challenges on input costs, is the highest ever in percentage terms. Can we open the floor for Q&A, sir? Yeah. 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 handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aniruddha from ICICI. Please go ahead. Sir, thanks for the opportunity. In terms of this quarter, we have seen there's some impact on the profitability, obviously, due to the steep inflation impact. So, how do you see the margins panning out in FY23? So let's see. You are right. I mean, the FY23 margins are do look a little bit stressed. I think, given that, the price increases that we've taken, we need to know that the cost increases are have peaked out. We don't know that yet. So, largely, if you see, we managed to pass on almost everything that we have. The, the different profitability that you see is next to nothing. Going forward, we believe that things should improve in the second half. Until then, things would be stressed. That's our feeling, but it's difficult to give a guidance. Okay. So, H1, there might be some impact, but H2, there will be either the benefit of some price hikes or by there might be some softening of inflation itself. So that's what... Yeah. Okay. And, sir, overall impact on volume growth because of the steep inflation, et cetera. So, how do you see the impact, at least in H1? So far, we are not seeing anything serious. Our sales are looking quite robust. We are, you know, Prestige as a brand constantly puts out new innovations, and the new product pipeline is working well, and we are getting a lot of new products into the market. Hopefully, the inflation-proof target audience will be addressed with these, new innovations, so we are hoping to keep the top line going. Okay. Okay, sure, sir. That's very helpful. Thank you. Thank you. Thank you. The next question is from the line of Paarth Gala from JM Financial. Please go ahead. Hi. Thank you for the opportunity, sir. So, first of all, if you can help in terms of the price hikes that have been taken in the cooker and cookware segment, in both FY or in the fourth quarter as well as full year 22. So for the full year, we would have taken around 5%-6%. In Q4, specifically, we did not take anything that you're seeing in the revenues. We have announced a new price, which was towards the end of March, I think 31st of March. So part of that you will see in the Q1 of this year. All right, sir. And moving on to appliances category, sir, again, if you can help with the, you know, cumulative price hike taken in the last 12 months? Around 8%-10%, weighted average. 8%-10%.... Okay, okay, understood, sir. And, sir, moving to the cooker- There might be a few outliers, there might be some which are not taken, so that's why I'm saying weighted average. Weighted average 8%-10%. Got it, sir. Yeah. Sir, on cooker, we've seen 26% growth in this quarter. So can you just, you know, throw some more color on what has driven this? Is this a sustainable growth rate going forward? So is there any, you know, impact of exports here? And has the domestic market also grown in a similar fashion? If you can just throw some color on this, it would be very helpful. I can only tell you that most of the growth has happened in domestic and not in exports. I don't think that kind of rate of growth is sustainable going forward, but then, since we have a huge product portfolio, something or the other. For example, in this quarter, cookware didn't grow as much. In some other quarter, cookware will grow. So I think it'll even out. We have always maintained that in a mature category like pressure cookers, a high single-digit growth is a good year for us. And this year has been exceptionally good because it's been a mid-teen growth in volume. Oh, okay. Okay. Thank you for that answer, sir. And lastly, on the EBITDA margins, so, you know, we've you know come out in the media and spoken about 18%-20% kind of a guidance in FY 2023. So this entails a 200 basis points margin expansion. Is that correct, sir? No, none of us has said that. Where did you hear that? Sir, it was flashing in a media interview this morning with us. This morning, I said between 17% and 18%. Between 18% and 19%. Okay. So if I look at FY22, we've done 16%. So can you just throw some light in terms of what would be driving this margin expansion? The margin for FY22 was 17.4%. Where did you get your numbers? Okay, so I was excluding the other income portion out of it. Yeah. Okay. Okay. So, sir, just a clarification, when we talk about EBITDA, we do include other income in it, right? You are right. Our EBITDA for the year, FY22, for the full year, standalone was 16.45%. And what was said in the morning was that there would be a slight reduction in that margin. Okay. Slight reduction. Okay, understood, sir. Yeah. All right. Thank you for the clarification. I'll just come back in with you for any more questions. Thank you so much. Thank you. Next question is from the line of Rushabh Sharedalal from Equirus. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity, and congratulations. The first question is on your sense on the level of penetration for cookers, cookware and kitchen appliances in India, and how big a market is this? If you can throw some light on the size of opportunity for TTK, that would be nice. Sorry, can you repeat that question? Sorry, I missed that question. Sorry, can you repeat? Sure. What I'm trying to ask is if you can let us know what what would be the level of penetration of cookers, cookware and kitchen appliances, and what would be the industry size for all the three, cookers, cookware and kitchen appliances in India, and how have they historically grown in the last five years? You have some thoughts on that? So pressure cookers, the urban penetration is in excess of 90%. Cookware is difficult to quantify and penetrate, because there are so many classes of cookware that are there, and therefore, it's difficult to say what that penetration is, and there is no known study to tell us that. Appliances, being one amorphous now name, each of these has large categories and has different levels of penetration. But to come back to the final question that you have as to what is the size of the opportunity, we believe that the kind of products that we have, the market size would be in the region of INR 16,000 crores-INR 18,000 crores. Our turnover, you are seeing as INR 2,500 crores. Okay. So that INR 16,000 crore-INR 18,000 crore includes pressure cooker, cookware, and appliances, all three of these, right? Or- Yes. Yes, yes. Okay, okay. And of the INR 16,000-INR 18,000 crore, what approximately would be the organized market share? Because, you know, it is a known fact that organized is gaining market share from the unorganized. So you have some thoughts on that? Depending on the category you are speaking, you are speaking between 35%-50%. Okay, so for pressure cookers. If you can just break it up for me for pressure cookers, cookware, and appliance. To do that, it is. There's so many categories. There is no formal research. We can only guess. Okay. Yeah. Just one more question, if I can squeeze in. You know, the cookware segment, it is, roughly 15%-20% of our revenue. Any plans on how this segment would be three years out? How much of it would it contribute to our top line? Because, you know, this is a segment where the replacement is pretty high as compared to others, so. You're right. I mean, cookware will grow faster than pressure cookers. That is a fact. And, at some point in value terms, it will probably be equal to pressure cookers in the next five years. That's for sure. Okay. Okay. I have a few questions. I'll come back in with you. Yes. Thank you. The next question is from the line of Bhavin Vithlani from SBI Mutual Fund. Please go ahead. ... Thank you for the opportunity. On the cooker and the cookware side, if you could just help us, what is the mix in terms of stainless steel, aluminum, and hard anodized? And what are the trends that you are seeing in the market? You know what? It is a little bit competition sensitive in terms of information, because of the way it is. But let me tell you that the stainless steel is growing faster than the aluminum. Sure. So the reason to ask was actually because we see a lot of volatility in the underlying commodity. If you could tell us, not in percentage, but directionally, whether stainless steel is larger than the aluminum or... That helps us directionally in understanding the raw material mix. So the aluminum is still dominant in terms of the metal used, in terms of tonnage used for us, though stainless steel is growing faster than aluminum. Okay, fair enough. What is the kind of, when you talked about INR 16,000-18,000 crore as a total addressable market, what would be, in your best estimate, market size for cooker, cookware, and pressure, and mixer grinders? Sure. If you're looking at cookware, it's a little difficult to give, because there are so many evolving segments. If you're looking at pressure cookers, on the other hand, my estimate would be about INR 2,500-3,000 crores on pressure cookers. Mixer grinders would be around INR 3,000-3,500 crores. Sure. So mixer grinder is a category where we see that, because this is largely South dominant, and you have very strong brand equity, but we don't see Prestige in the leadership. If you could just tell us the softer aspects in terms of the initiatives you would have been taking in terms of improving the product, technology, aesthetics, et cetera, and do you believe that you can attain the leadership position in this category? Yeah, I mean, that's a very good question. In mixer grinders, what we have been doing, we have moved from the sixth position to the third position in mixer grinders, right? We are very late entrants. Mixer grinders is an extremely appliance-centric, motor-driven product, and it has its own challenges. Over the last three-four years, what we've done is, done several improvements in our product through extensive consumer research. So what we've done is, in the last 24 months, launched, I think, close to 24 models, literally, in different colors, different aesthetics, different configurations, et cetera, et cetera. There's been a substantial push towards after-sale service. There's been a substantial push towards e-commerce. And what we are proud today to say is that while we are considered to be a south-centric brand, our mixer grinders sell across the country and across channels. We believe that we are on track to achieving the number two position very soon as we are going along. Then we will go after the number one. Sure. Just last question from my side. The Svachh brand that you have launched a couple of years ago, that seems to be gaining traction. So what—if you could just give us directionally, what would be the share of the Svachh on the cookers as a percentage and maybe the gas stoves that you launched, where you put up these pictures on the presentation? In pressure cookers, we are very happy to tell you that almost 85% of our pressure cooker sales today is in the Svachh platform. All of these cookers have the spillage control lid, which is what the Svachh platform is all about. Only 15% is left. In the Svachh gas stove, that's a very recent entrant. It's only been eight-nine months since we launched, and we are in the process of launching several new products within that same platform. As of now, it's about 15%-20% of our total gas stove sales. Sure. That's very helpful. Thank you so much for taking my questions. Thank you. The next question is from the line of Charanjit Singh from DSP Mutual Fund. Please go ahead. Hello. Yes, please proceed with me. Yeah. Yes, sir. So, just if you can highlight, you know, from a demand outlook perspective, in terms of various product categories, you know, from rural versus urban, are there any specific trends you are seeing or the demand, you know, momentum continues to remain at the similar level, what we saw in Q4? That's my first question. Market remains buoyant for the middle to upper middle range of products. The market is struggling for the entry-level categories. That is a trend that is true for both urban as well as rural markets. So sir, when you are saying struggling, so is it kind of a degrowth you are seeing or a very slow growth? If you will be able to qualify that. Low single-digit growth in the entry-level or lower middle-level products, and close to double-digit growth, if possible, in the upper, upper range of products. Okay. Right, sir. And so if you look at appliances as a category, if I look at just a three-year CAGR, so it has grown on a three-year CAGR, you know, before the pre-COVID by 3% CAGR. Pressure cookers, while it was a lower base, so it is showing a higher growth rate. But on the appliances side, because our quarterly spend rate is also now almost around INR 300 crores. So what's next, you know, in terms of growing these categories? While we talk about, you know, mixer grinder, such significant launch pipeline, any new product categories also which you are looking at here? Because now it's a significant sizable number, INR 300 crores quarterly number. Yeah. ... We are looking at lot of new products, not new categories. Okay. So can you elaborate more, sir, on sort of kind of products which you'll be looking at here? Well, within each of the major categories that we operate in, for example, mixer grinders, gas stoves, induction cooktops, kettles, pressure cookers, cookware, there are a lot of segments, sub-segments that we are launching in terms of products, and that is what we are doing. We are not launching any new categories, like built-in ovens, for example, or, dishwashers, for example. You know, those kind of products we are not intending to come into at this point in time. Okay, got it, sir. And, so from the distribution channel perspective, you had, you know, earlier also given us the breakup in terms of online, general trade, and, the other parts of the channel, MFI and all. Can you share that, you know, breakup and, any major trends there in terms of online coming down, you had highlighted earlier? How is the, you know, trend right now? I will not share the breakup with you, but I will share trends with you. The good thing that we are seeing is the moment the lockdowns were lifted, the offline retail started growing much better. This time, the offline sales growth have been quite nice and robust. Having said that, online also has been growing. However, the online has been disturbed because, as you know, in some platforms there has been a re shift on the way they are doing their e-com business, which has caused its own disturbance, which we think in the Q1 of this year, it will kind of stabilize and go forward. Going forward, we are seeing online growing, as will be offline channels. Got it, sir. Thanks a lot for taking my question. That's all from my side. Thank you. Thank you. The next question is from the line of Sameer Gupta from IIFL. Please go ahead. Hi, sir. Thanks for taking my question. I have just two. Just looking for data points. Can you help me with overall, on a portfolio level, weighted average price hikes that you have taken in FY21 and FY22? I don't have the numbers offhand on FY21, unfortunately, but I just said about the FY22 price hikes, which I said was between 6%-7% on pressure cookers and cookware, and on the appliances was between 8%-10% as a weighted average on the appliance portfolio. Cool, sir. That's, that's, that's helpful. And, sir, on the CapEx guidance, I mean, we have, we have hardly seen any CapEx in the last two-three years. And, at this year, at least, we have seen a very healthy volume growth based on the numbers of price hikes that you have shared. So what is the kind of CapEx that we can expect in the next two years? So first of all, let me correct that impression. We've had close to INR 55-60 crores, I don't remember the exact number, 50, 55 crores on CapEx in FY 2022, and I'm sure the number was not very different in FY 2021 either. And going forward, we are looking at between INR 50-75 crores, because there is also some capital work in progress as we speak, because not all projects are completed, given the kind of disturbances that we had last year. So there is between INR 75-80 crores. Coming to the capacity expansion, last year we have reduced close to 40% more in terms of the volume production that we've had on pressure cookers and cookware. We are hoping to take that forward this year by about 15%-20%, and also keep spare capacity by the end of this year with the new CapEx that we have for growth. Just a follow-up here: so at present, currently, what is our capacity utilization? Depends on what category you're talking about. So if you're talking about aluminum pressure cookers, we are at between 65% and 70%. We are looking at stainless steel, that's about 70%-75%. We still have enough capacity to grow, and we are still adding capacity substantially this year in each of these categories. Thanks, sir. That's all from me. Thank you. The next question is from the line of Hiren Kumar Desai, an individual investor. Please go ahead. Thank you, sir, for taking my question. One question is, sir, on a blended basis, what is the replacement period for our products, if you can? It's very, very difficult to answer that question. It's person-centric, it's category-centric, and it's what comes across as new. So, I mean, I'll just give you an example. I mean, how often do you change your mobile phone? You could change it every six months or every six years. Now, the average that we see in our pressure cookers, for example, is between four and 10 years. It's like that. Cookware is more fast replaceable, between every two years, three years, nonstick cookware is replaced. Stainless steel cookware is never replaced. Mixer grinders may be four-five years. Gas stoves again, between four-five years. So it's difficult to say because of the number of categories that we operate in. Okay, sir. Actually, the idea of the question is, like, what proportion of the sales is a sort of repeat versus potentially, new to branded, item, thing? Okay, so let me answer that. I wish you'd asked me that clearly, because- Okay. So if you look at, as I said, pressure cookers, the penetration levels are at 90% plus in rural India. So whoever is buying a pressure cooker is buying for three reasons, one of three reasons. Either he's buying one add-on pressure cooker, or he's buying a higher or lower capacity pressure cooker, or he's wanting to replace his existing pressure cooker. So these are the three reasons, but he is already a pressure cooker user. The same goes for many of our categories. If you are looking at our category of customer, at least, most of them are replacement customer or an upgrade customer. He's got a two burner, he's got a three burner. If he's buying a mixer grinder, he's got a lower wattage mixer grinder, he's buying a new mixer grinder. Most of our customers are either replacement buyer or add-on buyer. Okay. Okay, so that may be true of urban, as you're saying. Are we seeing traction in rural areas, where probably we are likely to have newer customers? Yes, we do, but it's difficult to quantify that. Okay, sir. Second question is, what is the long-term or at least medium-term, margin target that you would like to? Look, we've had an exceptionally good year. We've always said 14.5%-16% is the band in which we have operated. We've exceeded that by a mile. We would like to stay as high as we can. That is where we are, and we are way above our peer group in margins. All of these are facts. Okay. Sir, if I can sneak in one last question to get insight about... Sir, what causes some sort of a cycle or whatever you want to call it, in our category of products? Like, for example, if I look at FY 2018, the growth, sales growth was in single-digit%, while, let's say, FY 2022 has been very extremely good. So, I mean, will you be able to throw some light on what causes this sort of whatever? It could be a channel, it could be a channel that went up or down. It could be a particular kind of new product that we would have launched that might have actually triggered that growth. The category growth has been, in general, for the last three years, lower than our growth, so we have actually added market share. And the way we've added that market share is through a series of innovative product launches, through a series of innovative initiatives towards customer experience enhancement, et cetera, et cetera, and towards distribution. Okay. And one last question, sir. Out of the overall sales growth, broadly, again, I'm looking at medium term or little long-term thing, the breakup of volume and price portion in the overall sales growth. It is difficult, again, to say that, because the average sales realization that I have is a blend of channel mix, model mix, both. So if, if you, if I, if I tell you that I've increased the price by 6%, I can't take that 6% and say that my average realization exactly went up by that 6%, because it would depend on how the channel mix was or how the product mix was, et cetera, et cetera. Okay. But just in case you can, like, provide, let's say, a three-year or five-year sort of revolving number or something. I don't have that number off my head. Okay. Thank you, sir. That's, thank you. Thank you, sir. Thank you. The next question is from the line of Naman Bhansali from Perpetuity Ventures. Please go ahead. All my questions have been answered. Thank you. Thank you. Thank you. The next question is from the line of Amit, an individual investor. Please go ahead. Amit, your line is on talk mode. Kindly go ahead with your question, please. As there is no response from the current participant, we move to the next question from the line of Rushabh Sharedalal from Equirus. Please go ahead. Yeah, thanks for the opportunity again. And, you know, the management has guided, you know, for a commitment of, you know, roughly INR 5,000 crore of sales by FY 2025. Hello? Yeah, yeah. Go ahead. Go ahead. Am I audible? Yeah. Yes, please. Yes, yes, yes. So, you know, a couple of calls, a couple of quarters back in a call, you did mention that, you know, you aim to reach INR 5,000 crore sales by FY25. So if you can just let me know what kind of a mix would we see in when we reach such a kind of sales, or how much would be pressure cookers, how much would be cookware, and how much would be kitchen appliances? Okay, let's first talk about that INR 5,000 crore. The INR 5,000 crore that we said was broken down by saying that INR 1,000 crore will come from inorganic, and organic would be INR 4,000 crore. Within that INR 4,000 crore, we said around INR 500 crore, give or take, would be exports, and INR 3,500 crore, around, we would be domestic. Within that INR 3,500 crore, we said about 55%-60% will be appliances, and the rest will be pressure cookers and cookware.... I don't know if I have answered that question to your- Right. Right. No, no, that's, that's, that's very helpful. That's very helpful. And just a small question on the kitchen appliances segment. So, if you can just let me know, how many number of SKUs do we have in the kitchen appliances segment? And, which of these SKUs, you know, contribute most to this segment, and what sort of margins do we make? So first, let me tell you that we have close to 700 SKUs that are active at any point in time. Secondly, our pricing is such that it's a cost plus pricing. Largely, the margins on that category would apply to the margin on that particular SKU. So it's not as if one particular SKU gives me terrific margin, and something gives me terrible margin. It's not like that. Within that, there are certain promotions that I might run, certain gift sets that I might run, which have certain seasonality. But overall, the category margins are maintained, and the pricing is always a cost plus. Right. Right. Okay. Okay, and just a small question, if I can squeeze in. If you can share some numbers on what kind of market share does TTK have in all the three, so that is pressure cooker, cookware, and kitchen appliances. Whatever that you can share your thoughts on it, market share. So we've said this, our value share in pressure cookers, in the General Trade, which is where it is being tracked at this point in time, is about 32%. Our value share in cookware, non-stick cookware, for example, is upwards of 35%. In the appliances, it's difficult to give you a market share because there are so many different categories. Right. Right. Well, that's, that's really helpful. Thanks a lot. Thanks a lot, and all the best. Thank you. Thank you. The next question is from the line of Bharat Chhoda from ICICI Securities. Please go ahead. Yeah, thanks for the opportunity, sir. I had a question regarding our cleaning solutions. So this was a category which has been our fastest growing category, but this year, I think it had declined by around 13%. Any particular reason for the same, and what would the outlook going forward? Yeah. So, what has happened is, if you remember last year when we were talking about the cleaning solutions portfolio, there were one or two subcategories within that which had grown quite dramatically, thanks to the COVID. So that turned out to be a damp squib in the year FY22, and we had to make up for that with other products. Going forward, we are looking at between 25%-30% kind of growth as we go along. Okay. And sir, on exports front, what is our strategy? Are we expecting a similar kind of growth trajectory of around 30% to continue going ahead? Yes. Okay. And sir, we have taken price hike in April, so would you be able to quantify that and whether this will be enough for us to maintain our current margins? So as I said, the margins, we've taken a considered view on this. I believe that at some point in time, the commodity prices are likely to peak out. What is that particular point in time is, I think, very difficult for anyone to say. We've also taken into account what the consumer can pay, and so far, if you compare us with our peers, we've actually passed on price increases much earlier than the rest. The price increase that we have taken is probably taking into account the present pricing and that it has peaked out. I hope that it has indeed peaked out. If so, our margins will be around the same levels of where we are right now on an annualized basis. Okay, sir. Thanks for answering my questions. Thank you. Thank you. The next question is from the line of Gaurav Arora from Equirus PMS. Please go ahead. Hi, sir. Thanks for the opportunity. My first question is regarding the growth that we are seeing this year. So clearly, with the price and kind of price increases that we have taken, still we've achieved such a, you know, such a large volume growth. So just wanted to understand the drivers behind the same. I mean, would it be fair to say that work from home would have contributed to a large part of volume growth? Or, I mean, just wanted to understand your thoughts behind whatever demand drivers that you're seeing. You are absolutely right. I think work from home has been a driver, because the share of wallet to the kitchen has definitely gone up, because people haven't gone on holidays, people have not gone spent on uniforms for their children, people have been spending less on going out, et cetera, et cetera. So the kitchen has definitely got a larger share of wallet. The second thing is that the kind of new products that we have launched during this kind of period, in spite of all the challenges, has also helped us grow that we have been seeing. Sure. And so, going forward and currently also, are you seeing that, you know, some part of that demand kind of tapering down a little bit, because of, you know, things opening up and offices opening up gradually? Are you seeing any tapering of demand in the economy? There will be, in our opinion, but I think we will more than make it up, make up for it with our new products launches. We will more than make up for it with other initiatives that we are taking. So we are not worried about the share of wallet going down overall, as long as we can keep the customer interested in what we are selling. Sure. My second question is on the inorganic growth part that you mentioned. So, have you, I mean, thought about what exactly would you look for while, you know, looking at any particular target for an organic growth? Would it be in the same category? Would it be for market expansion? Any thoughts around that? We have stated that in the past, that we are not looking at in the same category, because it does not offer us any strategic value. We are looking at adjacent categories. We are looking at any distribution synergies that we might have or any other complementing nature of the acquisition that we have. We might even look at something abroad, if that gives us access to international markets. There are so many of these types of acquisitions that we are looking at beyond. Okay, sure, sir. Thank you, and all the best. Thank you. The next question is from the line of Bhavin Vithlani from SBI Mutual Fund. Please go ahead. Yeah, thanks for the opportunity again. Could you speak about the Ultrafresh acquisition, and the size of the business, and what's the kind of synergies that you could bring in, in terms of distribution channel or, the management bandwidth? And how and where do you see this business in the next three to four years? Very, very good question. First of all, the Ultrafresh business that we have invested into is currently very small. It's under INR 20 crores, for example, I mean, in that sense. But if you look at the overall addressable opportunity that we are looking at, it's a INR 2,500 crore opportunity. And Ultrafresh is positioned very well to take advantage of the present real estate boom, and also try and grow because of where they are today and what the potential is. Ultrafresh is possibly the only player in modular kitchen, which has an end-to-end capability, which is manufacture, design, and installation, and retail. They have over 100 studios. So that is where Ultrafresh is placed. The complementing nature of this investment is because we are in the rest of the kitchen appliance space. We also have close to 670+ own exclusive outlets. There is a whole lot of synergy that we can bring about between the two retail chains, and we are already doing that. We are looking at a fast-paced expansion of Ultrafresh studios and a fast-paced expansion of PXL through the Ultrafresh studio franchises as well. There are large unrepresented markets of Ultrafresh, given that they were so far not at scale, which we can bring for them. So that is why this is an extremely interesting investment and a high-growth investment in the next few years. Thank you. Just a follow-up on this. Does chimneys is also a subcategory part of the Ultrafresh, or that is separately that we are targeting? So Ultrafresh has the manufacturing of chimneys, which they will now make chimneys for Prestige, and because they don't have an after-sales service to service that, which Prestige has. So therefore, that we are a complementary nature, so they will sell Prestige appliances along with Ultrafresh modular kitchen. Sure. Thanks for the clarification. The second question is on the cooker and the cookware. What percentage of the sales is where we drive the business through the exchange model? Because we did keep on seeing that you launched some exchange scheme. And is this the exchange scheme, which is resulting in the repeat sales, is one of your key competitive advantage? Yes, it is. Actually, you are referring to the Anything for Anything exchange scheme. Every year during the first quarter, we launch this. It's an annual activity. But having said that, exchange happens right through the year. The difference in this exchange scheme is we exchange anything that you have in your kitchen for anything that you want to buy, which normally what happens is a like-for-like exchange that happens. If you have an old pressure cooker, you buy a new pressure cooker, so on and so forth. Here, you can bring in an old pressure cooker and buy a mixer grinder. So that is the difference in this scheme. It's of course a little bit higher exchange discount that operates during these three months. Clearly, it is a good exchange, I mean, business driver, because we address customers who typically already are owners of these categories, and we are trying to actually get them to replace their existing products with something that is better. That is the whole idea of this promotion. Is exchange a significant part of our sales? Not in that sense. Look, we do not take back any old scrap, right? So we don't know what is that percentage. But I can say that if you are looking at certain categories, they are very high on exchange. For example, gas stoves. Whether we are running a promotion or not, the customer is probably exchanging their old gas stove and buying a new one. You don't see any home with two gas stoves. Whereas in a pressure cooker, for example, it's very common for you to see a home with five pressure cookers. So depending on the category, the exchange component can be very high or low. Sure. The last question from my side, and when we look at the online pricing, so the premium of the Swatch brand is considerably higher, vis-à-vis, the non-Swatch, and also the pricing of Swatch is also at a considerable premium to, the RPS set. So, is our premium pricing, the percentage premium that Prestige always charges versus its RPS set, gone up, in the recent past? No, no, not really. Again, as I keep saying, our pricing is cost plus. So there is a higher cost that is there in the Swatch gas stove, which is offering a very much better consumer benefit. And, we are asking for the price to be paid for that. The customer obviously has a choice between that and the sta- the standard gas stove that we are to going to buy. And, as we see, we are at about 15%-20% of our gas, the gas stove portfolio already is Swatch. In fact, if you look at the three largest by volume SKUs within the gas stove portfolio, it is already Swatch. But the other non-Swatch gas stoves are also selling. You don't see these things move, lock, stock, and barrel overnight. There are a lot of new products also that we are launching within the Svachh platform, in gas stoves, in the next few months. Sure. Just a connected question on the pricing. I mean, it's a hypothetical question, but if at all, do we see a correction in the commodity prices? Going by your past experience, have we seen that the market actually takes corrective action on the pricing, or that's the period where we see expansion in the margins for the market as a whole? Sorry, I didn't understand that. Say that again, please. So, in a case where we see correction in the commodity prices, in that case, do we see that a company like yours and your peers, going by the past instance, they will see a reduction in the end prices, or the prices are maintained, and we see a short period where the margins expand? I don't think any of us, including our peers, would have taken a price increase decision on the basis of a spot price. There are a whole lot of considerations that we have. What is the opening inventory of raw materials that we have? What is the weighted average cost of that? What are we looking at in terms of the commodity price trend for the next six months, et cetera, et cetera? We believe that softening of commodity prices, if they happen, will come somewhere near the price that we have, say, we have thought is the weighted average for the year. We don't believe the time has come for us to say that there is a need to reduce price as of now. That is not yet there. We will cross that bridge, if it comes, when it comes. Sure. Has there been any instance in the past, let's say, 10, 20 years, where the industry has taken price cuts due to commodity corrections? There has been only one instance, not due to commodity, but due to the reduction in excise duty that has happened in the last, I think, 15 years back or so, sometime then. In this case, what we did was we just merely passed it on. That's it. Sure. Okay, fine. That, that, that's very helpful. Thank you so much for taking my questions. Thank you. The next question is from the line of Amit, an individual investor. Please go ahead. Hi. Thank you for taking my call. You know, I heard the interview this morning, and you mentioned that in Q1, we are 30% above June 2019, if I, if I'm, if I got that correct. So I was just wondering, are we talking about value, or are we talking about volume? I think he was talking about value. Okay. And secondly, can you tell us what the impact of the export duty on steel and stainless steel, how is that going to impact our cost structures, sir? It is a positive for us, because domestic prices of stainless steel will come down, because they will now not be able to export that much. Sorry. So how much can we expect our costs to go down by on an overall basis? Difficult to say. It It depends on how much inventory they are holding. They have already asked the government, for example, to allow them to export without the export duties for existing contracts. Then the secretary has said, "Let us get the application, and then we will come back." So it's difficult to say at this point in time. Fair enough, sir. Fair enough. Thank you. Thank you. Thank you. The next question is from the line of Punit Patni from Compound Everyday Capital. Please go ahead. Hi, sir. I have two questions. The first one being the vision of our company. In last Con Call, management guided that increase in Prestige exclusive stores would result in increased footfall. I think, that's the vision, that's the marketing strategy of ours? That is not the vision. The vision was to be, to make Prestige available in every Indian kitchen, if I remember right. We had also stated a mission of reaching INR 5,000 crore by FY25. We have talked about the PXL being a key part of that strategy to achieve that objective. Got it. Got it. So, sir, our main focus of the increased stores would be rural areas or, again, Tier One cities? It is wherever the customer is. We have always stated that if there is a customer, we would like to represent there. Now, if, if that is through a multi-brand outlet or through an exclusive outlet or through e-commerce or through anything else, I think that, that we have kept ourselves open. Got it. Got it. And so secondly, this is a suggestion. So actually, when I went for pressure cooker purchase, I found that the dealers weren't able to exactly explain the benefits of Swatch, as in how the Swatch pressure cooker is different than other pressure cookers, and so the premium. So if we are charging a premium, then customers should know that why is he paying extra buck for a pressure cooker? So if you could, you know, I mean, the dealers could be able to explain everything about the, because these products are technical, having technical features. So these are the basic products of Indian households. I mean, the ladies would be using this, but they should be, you know, be able to understand that why exactly this cooker are they buying or why exactly are they paying a premium for this? I take your suggestion, but let me assure you that there's nothing technical about it. All that we are saying is, when your pressure cooker whistles, if it's frothy, it kind of holds that froth in the lid instead of pouring it all over the gas stove. That's all we are saying. It's a huge customer benefit, helps them keep their customer, kitchen cleaner. If the dealer is not explaining it, there could be a whole lot of reasons for the dealer not to explain it, because we are the only people with such cookers, and if he says that only Prestige has this, maybe he will not be able to sell the rest of it. So he kind of keeps quiet. There could be other considerations. He might be getting more margins on the other, brands. You can never predict why a dealer is saying it or not saying it. It's not that he's not saying it because he doesn't know. That's my feeling. Svachh, an answer to premium, isn't it? I, yes, exactly. And between Svachh and non-Svachh, because of our stated policy of customer pricing, the premium actually is negligible in our pressure cookers. Got it. Got it. Makes sense, sir. That's about two questions. Thank you. Thank you. Thank you. The next question is from the line of Hiren Kumar Desai, an individual investor. Please go ahead. Thank you for, thank you for giving the opportunity one more time. Sir, the question is, our export business remains pretty small in comparison to all other businesses. Is it because of the nature of cookware and other equipment that are used in other countries, or we haven't put in marketing, distribution, et cetera, et cetera, to, to, like, to, to, to our, the advocacy efforts? See, our exports are largely white label exports. We are not doing any branded exports. The reason for that is we don't own the Prestige brand outside. Whatever Prestige exports are there, we do it under royalty payment to the brand owners of Prestige outside the country. Within the country, we own this brand. white label exports have a lower realization, a lower margin, because there's no marketing margin on these products. If in the past, we were short on capacity, so obviously we wanted to first feed the domestic market before we go for the export market. Now, we believe that exports do offer us an opportunity because of the China and the new geopolitical situation and the China Plus One happening with all buyers, and we believe that we are here to capture, capitalize on that. Having said that, even as per our vision statement, we have always stated that exports will be between, at best, between 8 and 10% of our overall revenues. If you take our previous export business as a proportion of the total business, it'll be more or less similar to our, our present business. More or less. More or More or less. Okay. Thank you, sir. Yeah. Thank you. As there are no further questions, I now hand the conference over to the management for their closing comments. Over to you, sir. Well, thank you very much for the inquiry. Thank you for the interest shown in the company. We've had a good year, as I said. We hope that we continue the good momentum as we go forward, and see you the next time. Thanks a lot. Thank you. Thank you. Ladies and gentlemen, on behalf of Ambit Capital, that concludes this conference. We thank you all for joining us, and you may now disconnect your lines.