Ladies and gentlemen, good day and welcome to the Campus Activewear Limited Q4 and FY2025 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Before we proceed on this call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors. It must be viewed in conjunction with our businesses that could cause future results, performance, or achievement to differ significantly from what is expressed or implied by such forward-looking statements. The Campus Activewear Management Team is represented by Mr. Nikhil Aggarwal, Whole Time Director and CEO, and Mr. Sanjay Chhabra, the CFO. I now hand the conference over to Mr. Nikhil Aggarwal, Whole Time Director and CEO, for his opening remarks. Thank you, and over to you, sir. Thanks. Good evening, everyone. Thank you all for joining us today for our Quarter four and FY2025 earnings call. FY2025 has been a year of meaningful progress and strong execution for the company. Despite a challenging macro environment, we stayed focused on our strategic priorities and delivered a healthy 10% year-over-year revenue growth, reaching to INR 1,593 crore. This growth was led by higher volumes, reflecting the success of our efforts in expanding distribution, accelerating online sales, launching fresh and relevant styles, and running a high-impact digital marketing campaign. We also made significant strides in strengthening our brand presence. Our expansion into premium large-format stores helped us reach more consumers in tier-one cities and metro markets, reinforcing our position in modern retail. Geographically, we continue to build on our stronghold in the north, central, and west regions, while also expanding into southern India with encouraging traction. Our enhanced online visibility supported this growth. We further enriched our family brand proposition by launching over 250 new styles for men, women, and children, offering vibrant designs at attractive price points. This has helped us cater to the evolving lifestyle needs of Indian families across multiple occasions. Our sneaker portfolio saw an impressive growth of 150% versus FY2024, reaffirming our commitment to deliver stylish, high-quality footwear that remains accessible. We also expanded our retail footprint with 30 new stores, taking our total EBO count to 296 across India. On an annualized basis, our gross margin improved by 20 basis points to 52.3%, driven by procurement and production efficiencies. Our EBITDA margin rose by 120 basis points to 16.1%, driven by disciplined cost control and improvement in working capital management. Notably, our net working capital base improved from 92 in FY 2024 to 71 in FY 2025, reflecting our focus on operational efficiency. In Quarter four FY 2025, we also launched the second phase of our Move Your Way campaign with Vikran Nethi. The campaign resonated strongly with genuine audiences, celebrating individuality and self-expression, and further strengthening our brand connect. We also commenced the commercial production from our Haridwar 2 facility for manufacturing high-quality uppers for sneakers during March 2025. Your company will be benefited from this additional capacity for the full year during FY 2026. In parallel, we have gone live with SAP on April 4, 2025, to streamline operations, enhance inventory control, and improve planning and forecasting, laying the foundation for scalable and agile growth. As we look ahead, we are energized by the opportunities in front of us. With a strong balance sheet, a growing brand, and a clear strategic roadmap, we remain committed to deliver long-term value through innovation, agility, and a deep understanding of our consumer set. Thank you, and now I hand over our call to our CFO, Mr. Sanjay Chhabra, to take you through more details on the Q4 and FY 2025 performance. Thank you, Nikhil. Good evening, everyone, and thank you for joining us for the Q4 and FY2025 earnings call for Campus Activewear. I will first take you through the Q4 performance. Our operational revenue grew by around 11.5% year-on-year to INR 406 crore in Q4, driven by higher distribution, which has registered a growth of 9.6%, and also the online channel, which has grown 15.2%. The company sold approximately 6.2 million pairs during Q4, up 7.8% year-on-year. The average selling price also improved from INR 658 from INR 636 last year. Our gross margin was 52.3% versus 50.2% during the same period in last year, driven by higher ASP in distribution and also the online channel. The revenue mix between men and women and children categories stood at 81:19 versus 80:20 last year, same quarter. Our EBITDA for Q4 was INR 76.7 crore. The EBITDA margin expanded by 60 basis points year-on-year to 18.7%, owing to lower SG&A. Last year, numbers included one-off provisions for inventory and receivables. PAT grew by 7.3% year-on-year to INR 35 crore during Q4 2025, and PAT margin stood at 8.5% versus 8.9% last year. A slight depletion in PAT margin is primarily due to higher depreciation, owing to impairment of our DIP lines. I now move on to the full year performance. Our operational revenue grew by around 10% year-on-year to INR 1,593 crore in FY 2025, driven by higher distribution, which registered 9% growth, and online channel, which grew by 11.7%. The company sold approximately 24.9 million pairs in FY 2025, up around 12.3% year-on-year. The average selling price stood at INR 639 per pair versus INR 652 last year, a drop of around 2%. This is primarily driven by a mix of open footwear, which went up from 14.2% to 15.2%, and higher sale of accessories, and also to some extent due to lower realization, driven by our liquidation of non-BIS inventory. Our gross margins were at 52.3%, an improvement of 20 basis points from last year, driven by procurement and production efficiencies. The revenue mix between men and women continued to remain flat, 80:20. Our EBITDA for FY2025 was at INR 258.2 crore. The EBITDA margin expanded by 120 basis points year-on-year to 16.1% in FY2025, owing to lower SG&A. Once again, the last year numbers included one-off provisions for inventory and receivables, and hence the SG&A was higher last year. The current year SG&A numbers are more normalized. PAT grew by around 36% year-on-year to INR 121.2 crore, and PAT margins expanded by 130 basis points to 7.5%. Our balance sheet continues to demonstrate strength and robust return ratios, such as ROSI and ROI of 22.3% and 17.2%, respectively, as on 31 March 2025, and we continue to be a debt-free company. With that summary, I would now conclude my remarks and open the floor to the moderator for Q&A session. 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 touch-tone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use hands as well 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 Gaurav Jogani from JM Financial. Please go ahead. Thank you for the opportunity, sir, and congratulations on strong revenue growth on that. My first question is with regards to if you look at the premiumization in your entire segment, last year, if you look at it, products below INR 1,000 contributed to around 27%, this year it's 22%. I mean, despite this premiumization increase, we are seeing an ASP decline. Does this contribution only reflect the footwear contribution and does not include the accessories which could dilute the ASP? Yeah, Gaurav, two things are driving this ASP decline. As I mentioned, that in the first quarter in the full year, our mix of open footwear was quite high. That was a conscious call that we saw this as an opportunity and increased our sale of open footwear. That is diluting the ASP to some extent. Of course, the accessory sales, like again, in Q2, we introduced our socks in the distribution market, which was not there earlier. Accessory sale is at an average ASP of INR 140. That, again, has an impact to some extent on the overall ASP of the organization. Sure. But sir, I'm just assuming that the open footwear will also be INR 1,000 and below. So ideally, that should have led to higher contribution of the products INR 1,050 and below, sorry. But that has actually increased. The contribution of the premium products has increased. So just wanted to tally that. Gaurav, a right wave or right yardstick to measure this would be that are we able to maintain our margins? If you see margins, despite higher mix of open footwear, despite accessories mix, despite liquidation of non-BIS inventories, our margins on a full-year basis have reflected an improvement of 20 basis points. We have certain margin thresholds on which we work, and whatever is the mix, I mean, we do not dilute the margins. I think that is a right way to approach it. Sure, thank you. Sir, my second question is with regards to the online volume. If you look at the online volume this year, it is around 7.4 million, and last year it was 7. I million mean, roughly it has increased only by 6% to 7%. Is it a conscious call taken by the company to drive more the distribution and the other parts of the business? I mean, is this a conscious effort taken? Hi, Gaurav. No, the effort is actually across all channels, right? We operate every channel strategically in a way that it should have a meaningful contribution to the overall top line. There is no conscious effort in terms of this specific number for online, but this is as per the demand, and of course, there was a higher proportion of outright sales this year in the online business versus marketplace. Some of the ASP increase can also be attributed to that. This is part of the demand, and there is no strategic or conscious effort to maintain this number in terms of volume. Okay, so maybe the. Yeah. Gaurav, just to add, I mean, each channel is playing its own role. I would say that distribution is for mass market. If I talk about the revenue numbers, both the distribution and distribution has shown a growth of 9.6%, and online has shown a growth of 11.7%. It is fairly balanced. Each channel is playing its own role. Online, of course, we reach out to the consumers directly through the marketplace business, which is higher in ASP, and hence we are able to sell more of premium products, whereas in the distribution, it is more of mass market products. Sure. That is I was going to ask, maybe the premium products on the online channel this year would have increased better, and hence, despite the lower volume, the contribution is largely the same, and the growth is better. Yeah, that's right, yes. Sir, lastly, on this Haridwar facility, I mean, this Haridwar facility, because it has commenced in March month, would the depreciation start hitting from next year for this particular facility? If yes, how much should be built in in the overall? Gaurav, yeah, the depreciation is there for one month in this financial year. Next year, it will be for 12 months. It's an investment of around INR 21 crore will be amortized over a period of 15 years. Sure, sir. Thank you, and that's all. Thank you. We take the next question from the line of Alisagar Shakir from Motilal Oswal Mutual Fund. Please go ahead. Yeah, hi, Nikhil, hi. Thank you, sir. Thanks so much for the opportunity, and congratulations for the double-digit payment. First question is on the demand scenario. If you can just talk about how is the current demand and the competitive scenario, both online and offline. Also, last quarter, you had mentioned that the BIS cleanup will be over by March. What is the industry scenario, and have we cleaned up the BIS inventory? Just a last related question to that is on the sneakers. If you could just share what is the growth and mix of sneaker in this quarter. Hi, Ali. Let me take BIS first. On the non-BIS side, while we have made significant progress, it has been slightly slower than we anticipated. We were expecting to liquidate a big portion of it by March end, and it has been slightly slower than that, but it is all under control, and basically we are expecting in line with 20-40 basis points of a margin hit in respect of the non-BIS inventory in the coming year, and nothing more than that. That is on the non-BIS side. On the demand scenario, we expect this year we have seen northeast and west doing fairly well. South and central have sort of been flattish. We've seen pockets of growth basically across these three areas, and metros and tier ones in quarter four, I would say, the saliency has slightly dropped versus the rural and tier two and tier three counters, so versus year on year. There has been some dip, I think, in terms of consumer demand in metros and tier ones. Apart from that, we definitely see a much more positive momentum overall, right, and which has also given us some tailwind. Going forward as well, we hope that this tailwind and positive momentum continues. We do not see any roadblocks or any headwinds at this moment, but I think more than that, a lot of the internal initiatives that we have taken in terms of channel expansion across all the three channels and our supply chain and the backend improvement measures that we have taken, SAP implementation along with new warehouse, we have sort of consolidated our warehousing in the backend. A lot of those efficiencies should sort of kick into this new financial year going forward. On the sneaker side, Ali, we have seen some very good traction, and we hope we will continue to, given the lower pace, we will continue to expand at a similar pace even this year. This is definitely also contributing to the higher ASP. The volume contribution is roughly about 8.5% for this year, and it should definitely go up in FY 2026 given the new plant is also online now. Some bit of higher contribution of ASP with respect to sneaker should come in. Over to you, Ali. Sorry, hi, good to see you. The sneaker last quarter was some 120% growth. Was that a similar trend in this quarter? It's actually for the whole year. So the whole year, we have grown at 150%, roughly. And the contributions of sneakers, we've closed at about 8.5% on an annual basis. Got it. If your question is on the margin front, you have earlier indicated that you would want to maintain between 17-19% margin. Now that we have closed this year with somewhere close to about 15.5% margin, should we see that trajectory improving? By then, will we see coming into that range of 17-18% margin? A related question on the cost here, we have seen a couple of line items seeing big jumps. If you can just explain, for example, other expenses year-over-year, and the depreciation interest has seen big jumps. If you could just explain why that has happened this quarter. Yeah, Ali, just to add here, the EBITDA margins have improved to around 16.1% if you look at it full year. If you're looking at other expense, on a full-year basis, I think it has gone up from INR 4.40 billion to INR 4.62 billion. That was usually on a quarterly basis. This quarter, other expenses and depreciation interest have gone up. Okay, so other. Or significantly on YOY. The other expense has gone up from INR 900 million to around INR 1,080 million, which is a large chunk of this. Around INR 100 million is the higher ANP spend, both on the digital media front and on the sales promotion side. Out of this INR 180 million, INR 100 million is purely the marketing piece, and then remaining is driven by the volume. The volume growth, this line also includes the freight and the conversion cost. That also is a subset of increase of INR 180 million, right? On the depreciation front, from INR 190 million to INR 220 million, I explained that it has a one-off impairment hit of our DIP lines, which we have impaired. Out of five lines, we have dropped or uninstalled three lines because it is a very outdated technology, and the school shoes have moved more into the EVA category from the DIP. INR 2 crore hit on depreciation is sitting there. Got it. Similar on the interest also or anything? I am so sorry to interrupt. May we request that you rejoin the queue for follow-up questions? There are several other participants waiting. Sure. Thank you. We take the next question from the line of Umang Mehta from Kotak Securities. Please go ahead. Hi, thanks for the opportunity and congratulations on a good set of numbers. My question was on open footwear. Would it be possible to share what was the contribution in terms of revenues and volumes this year? I ask this mainly basically trying to understand that as we go ahead, do you think that sneakers and other parts of your portfolio will be able to ensure that double-digit momentum continues, given that obviously the season has not been in favor? That was the first question. As I mentioned, the open footwear mix increased from 14.2% last year to 15.2% this year. That's the kind of contribution it has on our business. As we don't expect, of course, there's a seasonality to this. Of course, quarter one will also have a higher portion of open footwear categories. We don't anticipate any sort of drop in the category. Understood. Understood. The second one was on your full-year margin. On an annual basis, would it be possible to quantify the hit you have taken in terms of BIS, basically inventory? I'm asking this mainly just to understand that if it was not there, where would your margins have ended? It seems like your aspiration of 17 is not too far away from where you are already. You see, there will not be anything called direct impact of BIS. I would rather put it as a normal liquidation of slow-moving and non-moving inventory. In this year, since BIS kicked in, we had a timeline to chase, and hence there was an urgency to liquidate certain stocks. As we mentioned in the beginning, it had an impact of anywhere between 20-40 basis points on our margin. That is the number which is sitting there in the current year, and in the next year also, it can likely be in the same range, is how I would put it. Makes sense. Okay, understood. Basically, last year, 20-40, and similar is expected to be at 26. Understood. Sure. Thank you so much, and all the best. Thank you. Ladies and gentlemen, to ask a question, please press star and one. I repeat, participants who wish to ask questions, may please press star and one at this time. We take the next question from the line of Shraddha Kapadia from Smith. Please go ahead. Hello, am I audible? Yes, Shraddha. Thank you so much for giving the opportunity and congratulations on the good set of numbers. Also, basically, my question is somewhat similar to the contribution which the previous participant asked. This is majorly with regards to the men versus women. If you could help with the revenue as well as the volume mix. The strategy mix for men and women, Shraddha, is pretty much similar to last year. It is 81%, or rather 80%, has been the contribution for the entire year for men, and about 13.5% for women, and kids would be 6.7%. That is pretty much in line with how FY 2024 was, while the aspiration is there to certainly grow this category slightly higher. We have premiumized in the women category, so the ASP for the women category has gone up for us. This year, we expect women's share to definitely go up from this mark. Okay, sir. Thank you so much for the detailed explanation. Also, have we taken any price hikes in the current quarter, and do we plan to in the future? Yes, we have taken actually just on the open category side, on the open footwear versus last year quarter four, we've taken a price hike, which has definitely helped us maintain the margin profile as well overall. I mean, going forward, we generally do take a price hike at the end of the season. Now there is going to be a higher contribution of our NPD products, which anyways would be priced accordingly. Therefore, given the seasonality, as we're moving into the season now in quarter two and quarter three, we will be not taking any more price hikes for the time being. We are pretty much there in terms of the pricing that the company requires. Okay, sir. Okay, sir. If I may just squeeze in one more question. This is majorly with regards to the BIS. Is there any decline in the competition, especially from China, which we have observed? Yes. I mean, the imports have certainly dried up. The overall volume has dropped from China. We do see some impact of that, but honestly, to quantify that is still kind of early. There has been some inventory from non-BIS, which is still being liquidated by a lot of the companies into the market. As the government did extend the BIS timeline for the liquidation to July 2026, companies have sort of taken that leverage and taken their time. It is obviously a finite quantity. There is no new fresh incoming non-BIS materials or goods anymore. Chinese, in fact, we definitely see from channel checks that there is a much smaller volume into the market. Thank you, sir. Thank you, sir. Thank you so much for answering my questions. All the best for future. Thank you, Shraddha. Thank you. We take the next question from the line of Neeraj Man Singa from White Pine Investment Management. Please go ahead. I just have a very question to the previous participant. How do you see the market evolving after the inventory of BIS goes down? Considering that you have your own manufacturing in-house, how do you see the competitive scenario evolving, and hopefully the volume growth within India, China North Coast, BIS implementation, full implementation of BIS? Sure. Actually, last two years, or rather last three years, we've seen the industry not growing in footwear. That's been the trend for the last two-three years, mainly due to the subdued demand on the consumer side. We do expect that finally, due to the non-BIS liquidation and actually the BIS implementation, we expect that the industry should start growing. It's a big tailwind for everybody, especially the organized players. We are fully geared up for it. With respect to the assortment of products that we are providing this year, this 250 new styles is very well received into the market. There are certainly a lot of tailwinds. We just need to execute it right and get it correct. Can you put some numbers on what is the share you expect? Because what I thought was it was a large tailwind for manufacturers, companies who can manufacture products on their own, and it will give an edge to them in pushing the products. Can you give some numbers on how the companies who manufacture in India can benefit and how much the market share is right now for them and how much it can be, some color on numbers? Difficult to quantify numbers, but basically, you need to understand that there is a finite, very limited manufacturing capacity for the category that we are in, sports shoes, across India. It is very measurable, the overall capacity. If you just do a bottoms-up of all the players in the market, organized and unorganized, you'll end up with a number which is very much quantifiable. It is a very finite quantity. Clearly, with the depletion of the imported goods into the market, we do expect there should be a benefit to all the organized and unorganized players, especially the organized players because they are in the picture. Do you expect those imported good prices of Chinese as well to go up in the market, and hence your product will be competitive? Is that the scenario you're seeing now? Come again, sorry. Do you expect the prices of all the imported footwear to go up, and hence your products will be competitive on the market? Is that the main outcome, or is it the availability itself of the imported goods will go down? No, not really. I mean, we have always been very competitive with respect to the MNC brands, mainly due to the pricing power that we have. Our biggest USP is actually the value proposition that Campus as a brand provides, right, to the end consumer. That is very much intact, and that will continue to happen. We do not see that actually, there is no real competition in that aspect with the MNC brand because they all primarily start at INR 3,000-INR 4,000, rather INR 4,000 MRP and above, with a decent pair of shoes. It is actually a different market that we are both catering to. Okay. Thank you. I'll come back to the question. Thank you. Thank you. Participants who wish to ask questions may please press star and one at this time. To ask a question, please press star and one now. We take the next question from the line of Akshant from Fidelity. Please go ahead. Hi, team. Congratulations on the double-digit growth. Two questions. Akshant, sir, I'm so sorry to interrupt, but there's a lot of disturbance from your end. Okay. Is this better? No, sir. I'm good. I'm making good. Okay. Okay. Sorry. Two questions. One was around the broader demand environment, particularly when it comes to footwear industry. Generally, how are you seeing? Because you've seen broader consumption categories have some headwinds. You seem to have done very well. We're just trying to disaggregate if this is the market improving or market share improving. That was question one. Question two was around UP markets. A couple of years back, we had discussed that market being under stress, particularly around the NBO channel. As two years have passed now from that, generally, how has that market behaved? Those two questions from my side. Thank you. Yeah, no, great question, Akshant. So actually, I think from a quarter four perspective, Akshant, we have certainly gained market share. I do not think the market has really moved the needle that much, while it certainly improved versus quarter four last year. On a double-digit growth, we are quite confident that we have gained market share. Because the demand scenario has, I mean, improved, but not that much, which is also evident from our PSET number. I mean, there is some struggle in the market with respect to demand. Also. On your second question, Akshant, on UP market, I would say that overall, if you see the composition of our growth, it is both mixed, I mean, online and distribution. Distribution, of course, through better execution across the board, we have seen growth in, I would say, six to seven markets across India. UP being a dominant market, yes, the answer would be yes. We are seeing the traction back. There was a growth. Thank you, guys. Thank you. Thank you, Akshant. We take the next question from the line of Prerna Zunjwala from Elara Capital. Please go ahead. Thank you for the opportunity. Congratulations on strong set of numbers. Just wanted to understand what is driving this growth in volume. Is it the number of distributors or presence expansion that you're doing, or is it just online channel expansion? What is driving expansion on online channel for you as well? I mean, that will be my first question. It is actually a mix of certain initiatives, many initiatives rather that we have taken on the front end. I am particularly proud of the front-end team. It is a lot of the execution that has happened at ground level in terms of placement, in terms of expansion of the outlets, the right set of distributors in the right place. It is a lot of execution at ground level, which has panned out and given us this growth finally into the distribution on an annualized basis. It has taken us almost two years. We have been flattish, actually, on distribution. We have not grown for the past year before this and the year before that. It is a good welcome back for the channel. We expect this momentum to continue. We will continue to add counters and distributors in the right geography wherever it is required. It's a lot of consolidation efforts. It's the addition of distributors and the retailers, and of course, the right product also being delivered on time and in quantity to the respective outlets. Yeah, basically, distribution is an execution play. Online, again, is more tactical, I mean, in nature. While the focus is there on marketplace, we've also grown on outright this year quite well. Marketplace will continue to remain a focus. This year, we expect growth to come in in a similar fashion from online as well. Okay. I see that the retail account has increased from around 20,000 to 26,000 in this year, 20,000 by 26,000 today. But number of distributors have actually come down. Could you help us understand how many distributors have been added over the last two years? Prerna, it's a very dynamic field, I would say. We continuously evaluate the performance of our distributors, how they are in terms of expanding our reach. Accordingly, we do certain churns. The distributor count remains in the range of 300-350. Yes, we have consolidated certain geographies, and hence the number of distributors has come down. The measurable output KPI is how good we are expanding our reach. By end of this quarter, I mean, Q4, our reach was at around 23,000 odd outlets versus 19,600 outlets last year. The number you are seeing is our active outlet count, which is around 26,800. That's the number of outlets which build once in a year. We also follow a different KPI, which is bare minimum 12 players build on a monthly basis. That is reach. We track both these KPIs, irrespective of how many distributors we have on board. Okay. How much can we expand further? How many outlets can we reach in the next two to three years' time frame? That will help us understand the growth part in the distribution channel that you are targeting at. The overall universe is actually quite large. It is about 40,000-45,000. We are just at 26,000. What we have done, the strategy for us is to first, obviously, get to all the most relevant counters for us as a brand and the category. That is how we are doing that. Along with that, we expect at least an addition of, let's say, 1,500 counters year on year. Along with that, an increase in the wall share for each outlet. That will lead to basically the growth in the distribution channel. Okay. Understood. Prerna, I'm so sorry to interrupt. May I request that you rejoin the queue for follow-up questions? There are several other participants waiting. Thank you. Thank you. We take the next question from the line of Manasri Shah from ICICI Prudential Asset Management. Please go ahead. Yeah. Hi, team. Congratulations on a good set of numbers. I have two questions. First, just if we look at the commentary of other peers as well as other retailers, etc., in the online channel, especially marketplaces, it seems that there is some sort of a slowdown. Have you witnessed some similar trends on the marketplaces or maybe higher discounting, etc.? Just wanted to understand on that front. I would say, again, it's a dynamic field, Manasri. We have been able to get a fair share on both online marketplace and the outright business. We are doing a relevant marketing spend to create visibility, create awareness. That's leading to traction and throughput. We are able to get the desired or rather, our team, sales team, is able to meet their set of numbers, what we are targeting at the beginning of the year. Okay. Okay. On the second question, it's actually around working capital. Impressive work done on reducing inventory, etc. Is there more scope? That's number one. Number two, if you look at your secondary sales growth versus primary, is it mirroring your primary sales growth in the distribution channel? Okay. First things first, on the working capital side, I think we have done a fair amount of work in the last one year. We have reached to a level which is, I would say, the most desirable level. At the same time, we have no plans to cut it down further, which could eventually translate into a sales loss. From here on, you may see a bit of higher inventory levels. Of course, we need to build before the season. The level which you are seeing here, I think that's the optimum level, 95-90 days. Yeah. On your second question, sorry, can you please come again? Your secondary versus primary sales growth. Yeah. I mean, we do have a tracker on the distributor. We have the DLS system, and we see that the inventory levels with the distributors are fairly what they were at the end of FY2024. We maintain around 100-110 days of inventory. It continues to be same. A fair reflection of that is it's primarily working on a replenishment model, which means that whatever we are able to sell secondary, we are replenishing through primaries. Okay. Okay. Great here. Thank you. All the best. Thank you. We take the next question from the line of Gaurav Jogani from JM Financial. Please go ahead. Thank you for taking my question again, sir. Just on the increase on the interest rates, this quarter, around the number has increased despite our debt being now zero. Just wanted to understand the reason for the change. Yeah. Yeah. Good question, Gaurav. Interest line now is a reflection of only the ROU assets. So whatever leasehold premises we have in terms of EBOs and warehouses, we create an ROU, right to use, and a depreciation is charged on those assets, and an interest component is there. Both in the depreciation and interest line component goes. That is what is sitting in the interest line. This quarter, you see a higher interest, which is purely due to increase of two assets. We took a warehouse in Kulana for our online business, G Warehouse. Also, we have taken this Haridwar 2 facility for the sneakers. That is on a leasehold premise. Also, we took a raw material warehouse. We have added three leasehold assets in this quarter. Sure, sir. Thanks. Thank you. Thank you. Participants who wish to ask questions, please press star and one at this time. I repeat, to ask a question, please press star and one now. Next question is from the line of Alisagar Shakir from Motilal Oswal Mutual Fund. Please go ahead. Yeah. So just to complete the question on margin, where I was just asking about your aspiration of 17-19% margin, how should we see the next two years panning out for you? I mean, the aspiration certainly is intact. As you can see, we are trending towards the guided margin. The initiatives we've taken are sort of panning out in that direction. At this moment, we don't see any headwinds with respect to margin. We have built into, for example, the NPD portfolio and the new launches. Margin is primarily driven firstly from the product side. As long as we maintain that and control that and the overhead and the cost also under control, it's a fairly predictable number. We just need to factor in the non-BIS component, what we just called out. The rest is sort of taken care of. Good morning. What kind of margin improvement should we expect in the next two years? Two years, I don't know. It's a very dynamic environment. I think if we can predict one year, that's a big achievement. Over a year's time, for sure, we should fall within the range of what we've guided. Good. Next year, we should be able to achieve the 17%-19% margin guidance range. Understood. We continue to expand. Yes. Sure, sir. Thank you. That's it for me. Thank you. I would like to remind participants that they may press star and one to ask a question. I repeat, to ask a question, please press star and one on your touchstone phone at this time. We take the next question from the line of Priyank Sheda from Vellum Capital. Please go ahead. Thank you. Finally, I guess this chance has been waiting for the last 45 minutes. Anyways, my question again on the strategy front for me, too. After all the rectification that we have undertaken, we always had a target and aspiration to deliver double-digit volume growth, which we delivered this year. When it comes to the total revenue growth, which is mid-teens, kind of a revenue growth which we aspire, mid-teens, EBITDA margins which we aspire, I feel that directionally things are improving amid the tough market conditions. Leave aside the market conditions, why should we see these things playing out in terms of revenue growth, growing at mid-teens, EBITDA margins coming out in mid-teens? That is my first question. Hi, Priyank. I think you've answered your own question. It's been a fairly tough macro this year. I think given the adversities that, and it's very evident from the peers' numbers, right, that are coming out. It's been a very subdued environment. I think we've done fairly well with respect to execution this year. That has primarily led to the volume growth. ASP growth, of course, is a function of, of course, the planning and the environment at that point, right? Given that in quarter four, we have certainly grown our ASP by 3-3.3%. It's a good indicator that we're sort of getting back on track with respect to ASP. Of course, volume has grown in double digits, like you said, finally. It's a lot of execution more than, I would say, macros sort of supporting at this point. Of course, with macros improving, that should add on to the entire base. Got it. What I was alluding to was the margins is something which is internal to the company. We should see that happening in the coming quarters, directionally, every quarter sequentially, right? I think margin is a bit of a seasonality play also. You need to understand, I think in our line of business, margin should be seen on an annualized basis, honestly, and not quarter on quarter. Got it. Because there is an element of open categories, some accessories. Sure. It's a very seasonal business, as you know already. We should evaluate margins on that aspect. Perfect. Perfect. Got it. Point taken. My second question is on the two aspects of other expenses, which is one is advertisement cost. Now, for the full-year HPC cost, which is INR 135 crore, and we spent top dollars among all the peers in the footwear category. And that has grown at 25%, while the revenues have not gone and grown at that commensurative rate. When it comes to last three years' cumulative expense that we do on the media and advertisement spend, which is INR 350 crore, even for last three years, this has not added to much of the sales, right? So can you explain the thought process behind spending such a high amount on the advertisements? Would we see this capping out at certain limits, certain levels, so that we first test the sales throughput rather than growing the spend at a very faster pace? Let me complete on the other question on the same aspect, which one is, of course, on the advertisement. The second is on the non-BIS inventory. We always thought that while we have been hearing your commentary, till the year end, we thought that much of the liquidations would be done and would have been done. Despite that, why do we guide that the cost of this slow-moving inventory would remain same as it was in FY 2025? While the sales will improve, the sales will grow. The impact should actually come down significantly. That is my two questions. Sure. Sure. Let me take up the AMP first. No, you're actually quite right. AMP, you need to see it from two lenses. One is brand building, and the other is performance marketing, right? We have definitely disproportionately spent on marketing versus the peers over the last three years. That is in line with our aspiration to continue to build the brand. That is exactly what we have done. That is reflecting, actually, we do these brand surveys every year post our season end, post quarter three. In January every year, we do a very detailed and vast survey of the brand resonance, the top-of-mind scores, NPS scores, and so on. We have seen a significant uptick in the brand awareness levels and the TOM scores. Clearly, the marketing has definitely made the brand much more accessible and stronger across all geographies in the country. That is obviously a big boost also to sales. At the same time, given that this year we have spent about INR 135 crore, which is about 8.4% of the revenue, I would say that we do not foresee this going down at this point. Maybe in FY 2026, we will continue to maintain this number at 8.4-8.5%, basically a percent increase from what we spent in FY 2024. This should be funded from the ASP increase also. We do not see any margin hit with respect to the increase in the brand building initiatives. I hope that answers your question on the AMP. Yes, it does. On the non-BS inventory. Yeah. Priyank, on the non-BIS thing, we have liquidated a substantial part of the non-BIS inventory during the last financial year. We are still left with a very small tail. If you see FY2024 results, wherein we had to take some provisions both on inventory and receivables. I mean, as a matter of practice, we do not want to get guided by some regulations like non-BIS, but we want to have a firm liquidation plan for any of our slow-moving and non-moving inventory beyond a certain period, let's say, greater than one year or greater than nine months. Hence, as a guiding principle, we are now sort of allocating 20-40 basis points for this liquidation budget. That is how we intend to move. This strategy has played well. I mean, a reflection of that is very much visible in lower inventory levels now we have as a part of working capital hygiene. Irrespective of BIS, non-BIS being there or not, we would continue to focus on liquidating slow-moving inventory as a matter of routine and hence take this cost as a part of doing business. Got it. And just one last quick question on. Mr. Sheda, I'm so sorry to interrupt. You have been asking for to dial the number, and then you are asking for the question. Please cut the phone. Just last question. Just last question on the can we get a revenue split on D2C online, which is a split of market? How much would have been the sales from marketplace, and how much would have been from B2B online? Just a rough ballpark number. Or maybe a growth will also be helpful. I think at an overall level, on the investor deck, you can get a revenue split. It is still 52% distribution, 38% online, and 10% retail. That's the kind of split. Yeah. I was asking within online, how much would have been from B2B online and how much would have been from marketplace? It would be predominantly marketplace. We can take this offline. I mean, I won't have the revenue available. No problem. Thank you. Thank you. We take the next question from the line of Umang Mehta from Kotak Securities. Please go ahead. Hi. Thanks for the follow-up. Just on the, I mean, related question to previous one. Given that outright sales would have done better this year, as mentioned by Nikhil, would your performance marketing spends, would they have gone down? Because last year, if I recall, they were—correct me if I'm wrong—but they were as high as INR 60 crore. Just wanted to check on that one. No. Eventually, a consumer has to reach out to that platform and buy my product. It needs to have certain ratings, and hence I need to continue to spend on the performance marketing irrespective of the channel it is. I mean, whether it's at your play, marketplace, or it is through outright business. I need to generate that demand. Hence, there would continue to be a performance marketing spend. Understood. And then the second one was on LFS. So we've seen a decent 50%+ YOY increase in the stores, I mean, the banners you are in. Any revenue growth you can share for that particular channel? Is it very high this year? Since it is a very small base, the numbers would look high. Yeah, we have added Lifestyle, and we have added Reliance Footprint. There has been certain one of the Reliance format of fashion factory has degrown. It is a combined mixed bag, but net-net we have grown in that LFS per se. Okay. Sure. Thank you so much. Thank you. That was the last question for today's con call. On behalf of Campus Activewear Limited, that concludes this conference. Thank you for joining us. In case of any further queries, please reach out to Campus Activewear's investor relations team at ird@campuschoose.com. You may now disconnect your lines.