Ladies and gentlemen, good day, and welcome to the Electronics Mart India Ltd. Q2 and H1 FY24 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve the risk and uncertainties that are difficult to predict. 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 0 on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Bajaj, CEO from Electronics Mart India Ltd. Thank you, and over to you, sir. Thank you. Good evening and a very warm welcome to everybody present on the call. Along with me, I have Mr. Premchand Devarakonda, Chief Financial Officer and Strategy Growth Advisor, our investor relationship advisor. We have uploaded our results and investor presentation for the quarter and six months on the stock exchange and company's website. Hope everyone had a chance to go through the same. To start with, the Indian consumer electronics market experienced notable growth and development in the first half of this year. In the dynamic landscape of consumer technology in India, the first half of 2023 has brought about a noteworthy shift. Even though there has been a minor 4% decrease in smartphone sales, their growth has risen by an impressive 12%. This implies that consumers are gravitating towards high-end devices. The Indian consumer market is undergoing a transformation driven by evolving consumer preferences and a growing appetite for innovative products. The growth highlights the resilience and adaptability of the Indian consumer market in the face of changing dynamics. The technical consumer goods market exhibited an 8% growth in value. Meanwhile, the consumer electronics sector saw a 13% surge in volume, demonstrating a strong market presence. Industry reports elicit growth across diverse product categories, emphasizing the prospects within the Indian consumer market. While online shopping provides convenience, it's worth noting that a substantial portion of buyers conduct online research but ultimately make their purchases offline. This indicates a blending of the lines between online tradition and traditional offline stores, reflecting an evolving consumer landscape. Currently, our company is associated with more than 100+ electronic brands with over 6,000+ SKUs and has a longstanding relationship of more than 15 years with a certain number of brands which operate in product categories such as large appliances, mobile phones, smart appliances, IT, and other categories. Coming to Q2 FY24, we have delivered strong growth of 7% revenue year-on-year and 14% year-on-year in H1 FY24. Our EBITDA for Q2 FY24 grew by 28%. For H1 FY24, it grew by 31%. Our EBITDA margins improved to 7.4% for Q2 FY24 and 7.5% for H1 FY24, even after opening of new stores across regions. In H1 FY24, we have opened a total of 14 stores, of which 13 are multi-brand outlets and one is an exclusive brand outlet. Currently, we have a total of 140 stores, 127 stores which are MBOs, and 13 stores which are EBOs. Out of 140 stores, 119 stores are leased, 11 are owned, and 11 are partly owned and partly leased. As of date, we are present in 52 cities across four states. Even after the absence of festive period in the later part of Q2 FY24, we have managed to have a good store sales growth of 8%+ in H1 FY24 and 2%+ in Q2 FY24. Current quarter Q3 FY24 is filled with festivities and looking forward for busiest business time ahead. We believe that our local market knowledge, supply chain efficiencies, and effective inventory management have enabled us to attain higher cost competitiveness and consistent profitability. Our customized product assortment and comprehensive product portfolio enables us to achieve better visibility, brand recognition, deeper market penetration, and increased customer base. To reiterate, our focus lies on providing best consumer experience, better product availability, and rural connectivity spreading the horizon of EMI in all directions. With this, I request Mr. Premchand Devarakonda, our CFO, to update you on the financial performance. Thank you all. Thank you, Karan, sir. Good evening and warm welcome to all the participants. Now, I would like to present the financial overview of our company. For the second quarter of financial year 2024, our total revenues to net took is INR 1,313.2 crore as against INR 1,227.7 crore, with a growth of 7% year-over-year. For H1 FY24, our revenues stood at INR 3,002.3 crore as against INR 2,636.2 crore, with a growth of 14% year-over-year. EBITDA for Q2 FY24 stood at INR 96.6 crore as against INR 75.4 crore, which has a growth of 28% year-over-year. For H1 FY24, EBITDA stood at INR 266.6 crore as against INR 172.4 crore, a growth of 31% year-over-year. EBITDA margins for Q2 FY24 stood at 7.4%, and for H1 FY24, it stood at 7.5%. PAT for Q2 FY24 stood at INR 37.4 crores as against INR 24.1 crores, with a growth of 55% year-on-year. For H1 FY24, PAT stood at INR 97.6 crores as against INR 64.8 crores, with a growth of 51% year-on-year. Our annualized ROC and ROE for H1 of FY24 stood at 22.1% and 15.2%, respectively. The working capital days stood at 59 days. The gross debt to equity at the end of the quarter stood at 0.3x, and the net debt to equity was 0.2x. Further, our net debt to EBITDA stood at 0.68x. Our cash flows from operations for H1 of FY24 stood at INR 280 crores post-index effect, which was INR 28 crores in the previous year first half. If you see pre-index cash flows from the operations for H1 FY24, it stood at INR 225 crores as against negative cash flow in the same period last year. For H1 FY24, same-store growth rate stood at 8.4%. For H1 FY24, around 44% of our retail sales came from large appliances, 42% from mobiles, and 14% from small appliances and IT. Around 99% of our revenues came from retail segments. With this, I open the floor for questions and answers. Thank you one and all. Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question may please press star one on your touch-tone telephone. If you wish to remove yourself from the question queue, you may press star two. Participants 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 Manish Poddar from Invesco Asset Management. Please go ahead. Hey, hi Karan. So just two questions. One is, can you help me with the mix for this quarter versus the base quarter? You said the product mix for this quarter? Yes. Yes. Product mix for this quarter versus the base quarter Q2 FY2025. The product mix of mobile phones was around 48%, large appliances was around 37%, and other categories like IT and small appliances all put together was around 15%. What was the same number in the base quarter? The base quarter, it would be one second. It was around 40% for one second. 49%. So yeah. So the 49%. Yeah. This quarter, for large appliances, it was 49%, and then 36% for mobiles, and 15% for others. For others. So Manish, just to add on to your listing, so last quarter, there was an INR 150 crore Dussehra Diwali sale that got started at the 24th of September last year, no? So that usually is a heavy quarter for the period, is heavier for large appliances and that category, televisions, washing machines, air conditioners, and all put together. So that is why you would see a mobile mix higher in Q2 this year versus last year. But what would have been? But the sales usually would be heavier on the appliances side. If I have to understand this gross margin bit, if I look at the gross margins YoY, you've got about a 130 basis points expansion. And if mobile sales has improved by 12%, and that is a lower margin business, what explains the improvement in gross margin? Yeah. This year, we got a lot of contribution, gross margin contribution from the sale of extended warranty. Okay. So how much was that sales, let's say, this quarter? Warranty. If you have to quantify that number, what would that be? In the first half year of the current year, it was INR 31.5 crore as against INR 18 crore in the last year. So where the gross margin reached was quite high. And second thing, we also earned. Ladies and gentlemen, the lines of the management have got disconnected. Please stay connected while we reconnect the management. Ladies and gentlemen, thank you for patiently holding. We now have the lines of the management reconnected. Over to you, sir. Yes, sir. I think you were mentioning about the guarantee. I mean, I will allow you that. I think it was a blend of improvement that we have done. So firstly, as you know, that definitely the mobile gross margins are the lowest, so the growth there was there. But the emphasis on other product categories where the margins were higher, plus the newer introduction of the brands together, like brands that we added like Panasonic, higher Blue Star, across categories. Then we got a very small amount coming in from the growth of IT as the market growing up during that quarter also. So it was a blend of everything that has emphasized us to enhance the margins. So extended warranty, other ancillary businesses, all put together. So I think that is why you would see an improvement in the gross margin there. The bigger question is how one should look at these margins going ahead is what I'm trying to understand because I thought generally quarter two margins are lower than quarter one if I look at the trend of the last few years. Yes. Yes. Very true. Very true. So historically, that is what has been happening. Usually, you would see a Q2 gross margin being lower than Q1 because Q1 is heavier on the higher margin products like ACs and air coolers and refrigerators. But now what has happened is that this is the extraction, this is the maximum extraction that you would see because new product categories got added. There were efficiencies across all categories. The margins have been improved. So all put together, this is a better number that was delivered during the quarter two result. Okay. One more if I can. Just on this inventory part, if I look at the balance sheet, the inventory, I understand year-end inventory has ACs generally. And if I look at, but I look at the absolute amount, INR 740 crore versus INR 773 crore at the year-end. Despite, let's say, us opening more stores, there's a shift in Diwali, the lower stocking of inventory, what should one read from that? So last year, as I told you, 24th September was Navratri's first day. So usually, we pick up our stock by 10th or 12th of September. So last year, we would see a higher stocking coming in for the Dussehra period starting early last year, no? So this year, we started. Comparing to March and June. But it was not as aggressive because maybe only for the phones because Apple got launched during the last week of September this year. So we picked up huge inventory on Apple. So that was one major thing where the inventory went up. But for larger appliances, it started as early as the first week of October. Okay. Okay. So you're saying this number will get bumped up in this quarter? Right. Yeah. Yeah. Right now, if I currently tell you, it has bumped up a little more higher to what the festival period it would be, no? So it has, again, come down post-Diwali-wala season because 12th November is Diwali, no? So we start stocking up by now. Okay. Got it. Got it. Great. Thank you. Thank you, sir. Thank you. The next question is from the line of Ankit Kedia from PhillipCapital. Please go ahead. Sir, if I look at your revenue first, thank you for giving us North and South Cluster revenue separately. Now, if I add both the revenues and take your net revenue reported number, the difference would be the other operating income, which is typically the commission income and the incentives which we get. I see there's an INR 20 crore decline in this number from INR 117 crores-INR 118 crores to INR 98 crores. Now, what is leading to this decline in the quarter? So sir, what has happened now is so these are incomes pertaining to the other incentives that we usually get from the brands. So what we started doing now is started emphasizing on the brands to give this discounting for us in the invoice itself. So that is why you would see a lot of the invoicing going up in the invoicing itself rather than getting attributed to the other income category. So over a period of time in the future also, you might see a decline in that number is because the income that we would receive earlier in the previous quarters would be post-invoicing. Now, we are trying to get that in the bill itself so that we enjoy that margin upfront. Sir, so if I, okay. Let me put it the other way. If I add this incentive in the South business because North is very small, and then if I look at ex-Delhi, then the growth is only 3% in the revenues, right? Partly could be due to the shift in festive. But what calls for only a 3% revenue growth except Delhi then in the total revenue? So sir, that absolute number would be around 7% if I look at that number. If I look at the Delhi contribution, the Delhi contribution was very minuscule in terms of the number. So because it was around INR 55 crore, so I would see a hardly growth of INR 20 crore-INR 22 crore coming in from that region, whereas the total overall number growth was around INR 100 crore in the absolute revenue sale, not the other income put together. And talking about the net product sale, so that was around INR 110 crore, out of which Delhi contributed around INR 25-odd crore, sir. The rest of the margins like Andhra group or us, upcountry Telangana group or us, definitely the most mature stores for us are in the Hyderabad city. So that is where the least growth has come in, around 4%. But if I look at the overall number, the majority of growth has come in from Andhra upcountry stores and Telangana upcountry stores. No, sir, initially, what you said is now the brands are giving incentive in the bill itself. So we will not see that in the operating income. We'll see it in the product income only, right? Now, if I assume this quarter also that INR 98 crore, I put that in the product income completely. And then if I look at ex-Delhi, then we are only 2.5% growth. So that number comes to around INR 1,260 crore. So sir, that number would not come up there, sir. That number would come in the quarter. I think Prem, sir, would explain that better to you. I'll give it over to Sir now. Hello? Yes, Prem, sir. Yes. Sir, I didn't get your question, right? Please, can you repeat that? Sir, from your revenue, if I remove INR 55 crore of Delhi, I get a INR 1,258 crore revenue. And in the base quarter, if I remove Delhi INR 26 crore, I get INR 1,202 crore. That is a growth of only 2.5% ex-Delhi revenue growth. What accounts for such a low growth ex-Delhi market? Okay. If I remove the Delhi from the revenue. Hi, sir. I'll give the background. I'm talking about the retail sale. We'll talk about. Sir, I'm talking of total revenue, sir. I'm not talking of retail sale, sir, because the difference in the incentive is very difficult for us to calculate, right? And most of the incentive, because Delhi is a very small percentage, I'm assuming that all the incentive is coming for South. And if there itself, we are not seeing growth. We are seeing decline. Then the absolute revenue growth is only 2.5% for us. Yes, sir. One second, Manish. One second. Sir, sorry, just noting down those numbers. Give us a second for that, please. Sure. Sir, can we go to another question? Manish, can we come back to you a little later? No worries. No worries. I'd appreciate that. Sir, my second question are other expenses. Other expenses broadly flat from INR 72 crores to INR 73 crores. What is happening in the Delhi market while on the EBITDA front, we have turned around Delhi? But in the base quarter, how much was the expense? And now, how should we look at this turnaround or margin expansion in the Delhi market, if you can highlight? That will help us in this conclusion. Sure, sir. So sir, I will give you a little breakdown on the major expense that we note down where there was a decrease or increase. So firstly, advertising and promotion because coming back to the same festive period last year, we started spending money on our outdoors, print, radio, and all. So there was a decline and definitely a decline in the Q2 versus Q2 revenue spent on the advertising, which has significantly gone down. And then sales promotion and directly proportionate, which are the costs that we bear with NBFCs, which are directly proportionate to the increase in sale or decrease in sale. So that was one major thing. The power and fuel has gone up by a little smaller number. And apart from that, the other expenses that we bear have all the other expenditures like maintenance and all, which would include housekeeping staff, security, which are directly proportionate to the stores which we launched during that period, which were not operational or operation. We still had to put in security and little manpower. So these stores directly, the cost for the maintenance and those things have gone up because of housekeeping, security, and little manpower that we deployed for those stores, sir. So that was a major thing. But the major savings came in during that quarter in the advertising front, in the marketing and advertising front, which we saved approximately around INR 5 crore, which would then come in, probably increase in this quarter because festive period started this quarter from 15th October. Sure. And sir, my last question is on the CapEx front and store opening front. How are we looking at next six months store opening? And what will be the remaining CapEx because we have done around INR 57 crore of CapEx in the first half? So for the remaining period, are we buying any more land? And how many stores are we looking to open? If you can just separate from MBO and EBO? Yes. So sir, the total IPO expense, the total IPO that we have raised initially last year out of it, INR 81.6 crores is left with us in the CapEx head for us to spend, out of which we will be spending around INR 30-odd crores by this financial year-end. So that is the plan because we already have stores that are in pipeline, around 15 stores that are in pipeline yet to open up in the next two quarters that we are operating in. Apart from that, there is no major land acquisition or building acquisition left apart from the one large part of the property that we were yet to pick up, which we had given an advance last year that we procured and finished the registration last month for it. Apart from that, everything is organic where it is on the lease model. That is the plan, sir. We'll be opening around 15-odd stores in the coming time, sir, in the next couple of quarters, this quarter and the next quarter, sir. So we have already opened 14 stores. You are saying another 15 stores will open. So we will end the year at around 29 store addition. INR 57 crore CapEx we have done, another INR 30-odd crores. So around total INR 90 crore CapEx for the full year is what we are guiding. Thank you, sir. Thank you. Cool, sir. Thank you so much, sir. I'll wait for the clarification on the revenue part. Yes, Ankit. Yes, Ankit. Yes, Ankit. Yes, Ankit. Thank you. Thank you, sir. Thank you. Ladies and gentlemen, in order to ask a question, you may please press star one. The next question is from the line of Krisha Kansara from Molecule Ventures. Please go ahead. Hi, sir. Am I audible? Yes, ma'am. Yeah. Sir, somebody asked you regarding the improvement in gross margins where you mentioned the numbers of warranty. So if you don't mind, could you please repeat that for me? Sir, last year, the same quarter, the base quarter, it was around INR 18 crores, which has gone up to INR 32 crores approximately, ma'am. For the quarter? Sorry, sir. For the Q1, ma'am. So the quarter, yeah. For the base quarter, it was INR 4.6 crores. Whereas in the current quarter, it is INR 18 crores. Okay. Okay. Got it, sir. And sir, my second question is regarding growth. So our SSSG in this quarter was close to 2%. So sir, are we facing any kind of growth challenges as such? And if yes, then so which factors were responsible for this drop in SSSG? Right. Ma'am, if I look at this SSG, this is predominantly for the stores which were operational during the last quarter as well as the last year. So if I look at the overall number, it was a little higher. But this pertains to the same quarter we were operating without the festival period. So the festival period actually starts off for major growth for us. And then the dull period with the Ashadham and Shraddha, so they actually came in the September month whereas last year we started, finished that, started Navratri on 24th. So the festival gap majorly makes a major difference, which was INR 177 crore, the absolute number that we did in the 10-day business during the first day of Dussehra, 10 days of Navratri during last year, which we didn't do because of the Navratri being on 15th of October. And before that, there was Shraddha in the northern region and the southern region where there is Ashadham in a similar way like Shraddha is in the north. So those things definitely would impact. And then overall, the sentiment during that period is a little lower. So people usually wait for the good days to start, the festival period to start because there are a lot more offers starting off during the festival period. So customers usually wait for the Dussehra-Diwali period, especially in South, Dussehra is a bigger festival, especially in Andhra. So that is why you would see that difference in quarter to quarter. But historically, if I look at October, November, December, where all the festivals, both the big festivals are in the same quarter, you would see a similar number and growth. So the SSG for us, we would look at the absolute value of the volume on the store economic category. We saw a good trajectory coming, especially for mobile phones and ACs. So that has been on a good higher growth side. So ACs are still growing by around 28%-30%. Same thing with mobile phones. So that is a good time. Whereas right now, being World Cup, so you would see a good growth coming in televisions as well. So televisions were a little slower last quarter, whereas this quarter, the television sales also have gone up, especially for high-end screens, contributing to the World Cup sales. Okay. Sir, sir, can we expect this number to normalize in Q3? Normalize in terms of the split, the product split? No, no. The same. SSG. SSSG. Yeah. Yeah, ma'am. So SSG, SSG definitely, you would definitely see an improvement because your overall number would grow. So you definitely see that growth coming from the existing stores also and from the stores which were operational a year older. Okay. Okay. Sir, just then you have given the margin breakup for our Delhi stores and our stores in South. Currently, the EBITDA in Delhi NCR is close to 0.4%. Sir, I just wanted to understand the roadmap or your thought process regarding these Delhi NCR stores. How are we planning to improve our economies of scale in Delhi stores? Right. So ma'am, Delhi as a market has been quite exciting for us personally to make sure that we deliver our numbers in that region. There was a lot of learning initially, a lot of teaching that we had to do because the southern market that we were operating or the brands that we were operating with had to change a little bit. So productivity has got a little change there. But the productivity that we are doing every day gives us the ultimate outlook for the future that Delhi is definitely going to deliver us a bigger number in the future. So in the pipeline, as we talk, we've got 13 multi-brand outlets and one exclusive brand outlet. Another 7-10 stores is what we have in the pipeline. We'll be opening one store right before Diwali. So the new store that we are opening are majorly in the larger areas which are more prominent or the top 10 locations for Delhi as a continued durable market, which are Janakpuri, Pitampura, Rohini, Lajpat Nagar, Sector 29, Gurgaon. So these are the prominent markets where our stores also would be visible. So eventually, they are just a year old. So we know that the track we are on with the growth that we are delivering for Delhi in the future, overall put together, we will see a higher growth coming in. And I think this number that we've delivered now, and this was through the bad summer season there because the summer was really bad in north, so we could not deliver the AC and cooler sales that we were expecting in the Q1, which are going to help us grow better. But Diwali is on track. I'm pretty sure that at least last summer didn't go well, but this summer is going to do well. We are on track. Once the new store open up, we're quite confident that these numbers will definitely improve. Okay. Okay, sir. And sir, just one last question. Can you give us the advertisement expense number for South and for Delhi? So Delhi, ma'am, the total number that we have spent on advertising for Q2 was INR 9.3 crore, out of which Delhi, we've spent around 1.1 crore, ma'am. So around INR 9.3 crore, out of which INR 2 crore, approximately INR 1.1 crore is spent in Delhi, the rest of INR 8 crore approximately spent in the existing market in AP and Telangana. Okay. Okay. Got it, sir. Thank you, sir. Thank you, ma'am. Thank you. Before we take the next question, we would like to remind participants that you may press star and want to ask a question. The next question is from the line of Dolly Chaudhary from Niveshaay Investment Advisors. Please go ahead. Hello? Am I audible? Yes, sir. Sir, thank you for the opportunity. I had a few questions. Just someone asked regarding land. We are currently holding INR 236 crore worth of land. I wanted to know, is there planning to buy any more stores? How can we see this figure going further? So ma'am, so nothing major that we have in pipeline, nor we have discussed anything. So the one pending building that we had, for which we had already paid in advance, was in Delhi, Lajpat Nagar, which we just bought out recently. Apart from this, nothing that we've signed for now, nor we have looked at property that we will be buying at least in the next I mean, this financial year, at least. Nothing major acquisition to buy land or building. Okay. Sir, I also wanted to know regarding our employee cost. As a percentage of revenue, it's quite low comparatively from our peers. So can you please throw some light on this? So, ma'am, there are two things in this. Sir, majorly, how we operate on the floor level is that we don't have our sales guys on the floor. It is only the managers and the cashier and the back-end staff, whereas the major sales team comes in from the respective branches. That is why you would see a major differentiation between us and the top five players. They have their own manpower. So that's why our manpower cost is a little lower, number one. Number two, ma'am, the second cost that you need to attribute is towards security and housekeeping, which comes under a different head. So, ma'am, that is our outsource, right? So for that reason, they don't come under our direct employee cost. But when we calculate internally, we look at that as an employee cost as well. But the absolute number would be a little higher then. Okay. Okay, sir. And regarding revenue guidance for Delhi region, so the margins have been quite low from there. So if we see the contribution and revenue increasing from Delhi region, so will it take a hit on EBITDA margins going further? Because the margins have been quite intact, but as in when the Delhi contribution increases, the margins can decrease. So how can we see that when? There will not be an absolute decline on the gross margins or the EBITDA margins to our favor. What will happen is once the productivity goes to an optimum level that we have decided for, you will see an enhancement and a growth coming. Instead, right now, what has happened in the last few quarters of the last financial year, we were actually bleeding or burning money there, right? So because we just started operations, we started spending money on rental, manpower, electricity, other expenses without looking at any revenue. So those things now are getting sorted. So in terms of the breakeven will be sooner. We'll spend across around INR 30 crore last year to operate in that region, which will come down. And that money also would be saved. So that will add up to our profits as well eventually. The margins will definitely get improved because the gross margins in both the regions remain the same. Once the productivity goes up, once we open up the newer stores, once we are more visible and the throughput increases, first off, we'll come back to normal seed levels. Initially, because this year, our contribution of Delhi would hardly be around INR 300 crore. That kind of a number will not impact the overall plan that we have for this year. Okay. And I wanted to know the company's approach regarding the Telangana region, specifically for Hyderabad. So we have around 50 stores there. So is the Hyderabad, and we have a majority of market share, but is the market so significant because no market cannibalization happening there? I wanted to know company's take on that if they're planning to open any new stores in Hyderabad also. So definitely, any region that we operate in, let it be Guntur, Vijayawada, or Hyderabad, the existing markets, wherever we see an opportunity, if the organic growth is there and the markets are growing, where the residential areas or the markets grow beyond where our stores are not available, we will definitely look into this market. And we are always open to expand in the existing markets as well. So we have any expansion opportunity or planning in Hyderabad region currently? Nothing right now. Probably towards Diwali now, though you have reminded me that I need to look at Hyderabad market as well. Definitely, after Diwali, we will look into that, ma'am. But I'm seeing nothing as of now in Hyderabad. So we have 50 stores there. So is the market such big in Hyderabad and no market cannibalization as? So if I give you a direct comparison, there are a few markets where say Vijay Sales, Reliance, or Croma are available where we don't have a store because we think the markets are quite small there in Hyderabad, which are the peripheries of Hyderabad city. So once we know that these markets are mature or developed, then definitely we would like to open a store there, ma'am. Okay. Sir, just one last question. In our current assets, we hold a significant portion for balances with government authorities. Can you say what that is about? Yes, sir. So ma'am, that pertains to GST majorly, ma'am. So the balance with government authorities, sir. Sir, sir, that is nothing but input credit, which we have to avoid. Input credit. Okay, sir. Thank you. That will be all. Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. The next question is from the line of Lakshmin arayanan from Tunga Investments. Please go ahead. Thank you. Sir, what is your sales mix between OE product sales and? You're not audible. Can you repeat? Sir, can you repeat? You're not audible. Can you repeat your question, please? Yeah. I want to know, what is the sales mix between OE sales, that is, original equipment sales, and non-original equipment sales? This includes warranty, installation, TV stands, and all the other things, right? Perhaps maybe which comes around. What is that mix? Sir, if you brought a number out of the INR 1,313 crore that we have done, that number would be around 4.5%, sir, for the other categories like fans, insurance, accessories, and other categories all put together in terms of revenue. Installation, services, all those things? Yes, sir. Okay. How does it grow? I mean, as a promotion, in the last five years, has it grown higher, or it's been stagnant? So sir, definitely, they've grown higher because these categories were not dealt with us earlier. So the categories like fine, built-in appliances, kitchen appliances, they are growing. But if you look at extended warranty, accessories business, the new category business that we have added in the last 14, 18 months, they definitely are turning around and growing. But they would be at a similar level. They will not grow over more than 1% of the total revenue or 2% of the total contribution to top line, sir. Got it. And what is the sales mix between cash and non-cash? And when I say cash, people actually paying on cash and people who are paying through cards and UPI and other things? That trend, the last 7, 8 quarters, has remained the same only. There's not much of a change there. It all remains the same only. Credit card, NBFC for us is quite prevalent. Credit card, yeah. That has remained there. Only cash anyway is very insignificant in the southern regions, sir. What proportion cash sales will be? The cash would be less than 10%, sir. Got it. How much would be EMI plus finance sales in this overall? 55%+, sir. 55%+. Okay. Okay. Thank you, sir. Thank you, sir. Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. The next question is from the line of Vihar from Richards Capital. Please go ahead. Hello. Sir, good evening. Good evening, Mr. Bajaj. Sir, I have one strategic question regarding our brands. Sir, ground level in Andhra and Telangana, we are famous as Bajaj Electronics as retail stores. But whereas the company is concerned, we are listed as Electronics Mart. So don't you feel that in the long run, there is a clash of brands between Bajaj Electronics and Electronics Mart? So I want your thought process to why not consolidate one brand to get the benefit in the next four, five years? Right, sir. So definitely, sir, we would look into that. So we had a different strategy for it. So once we are clear and confident that that strategy works for us because for a longer term, right now, we are just a year old. But for a long-term perspective, we had a different ideology for doing that different brand in that region. So in the future, if we feel that we need to change the name or have a single name across the country, then definitely, we will do that. But right now, it was working for us, and it is in line with what idea we had under the brand that we wanted to grow, sir. But sir, majority, we are known as in Hyderabad, in Telangana, as Bajaj Electronics. So it is simpler to check. Sir, sir, our advertising or other everything is localized. So we don't feel that the recognition of brand Bajaj or the recognition of brand Electronics Mart in Hyderabad or vice versa would impact us in terms of recognizing the brand because we had a different it's all localized that we're doing. So the customer base is very different. If it had been in the Andhra, Telangana market, which are two similar states, then probably we would have had an influence in telling customers that it's the same brand. But in operating two different geographies altogether, we don't consider the customer base to be similar, sir. But long-term perspective, as you said correctly, we would look at incorporating or merging it in a way where customers know at least that it's the same entity. Okay. Okay, sir. Sir, my next question is, what is our general lease rent per square foot? Generalized. General rent [crosstalk] Yeah. Hello? Sir, it is yeah, so it is differentiated between three clusters that we majorly operate in: upcountry market in AP and Telangana. One is Delhi and NCR, and one is Hyderabad region. So the Hyderabad region, we pay out around INR 75-INR 80 on an average. Whereas the tier two, tier three cities in AP and Telangana, it comes out around INR 40-INR 45. And Delhi and NCR comes around INR 120-INR 130, sir. Okay. And sir, who is our nearest competitor in Delhi? Sir, our nearest competitor in Delhi, sir, Delhi has a market in two things. Firstly, Vijay Sales and Reliance and Croma are the largest people there in terms of organized players. But Delhi, again, is one of the largest markets in the country for distribution mom-and-pop stores. So around 65% of the market share in Delhi NCR, across Delhi NCR, including the smaller satellites around it, are still run by the mom-and-pop and distribution channels. So they are equally quite strong in that region, sir. Whereas the south are more organized and more developed and larger players. Okay, sir. Thank you. Thank you. Thank you, sir. Thank you. Thank you. The next question is from the line of Ankit Kedia from PhillipCapital. Please go ahead. Sir, I see here the commentary of other distribution companies. We are seeing some pressure in demand. So are you seeing any differential demand for the month of October or early November in terms of, say, Hyderabad, upcountry, Andhra, or Delhi market? Any difference in demand are you witnessing? So, Ankit ji, yes, definitely, yes. Even that is what I also found out, that because the markets were a little slower in tier two clusters. But this is a part and parcel of the business. But actually, we are on target that we have taken for this season; we are on track for that, sir. So I don't need to—well, we don't need to worry on that thing. But definitely, yes, a few of the other regions that we were looking into didn't perform the way they were supposed to perform this festival period, so like what they were doing in the previous festival period last year and the year before that. Which regions would that be, sir, which are not performing well and which are doing better than your expectations? Sir, that is, sir, see, for me, the base in Delhi itself is so small that I can't comment whether it is performing good or not. But for me, I'm getting good growth in Delhi anyway. So that is a new market for us. We are growing. It's fine. So then I would not directly look into the market over there in terms of whether that is performing or not. But east is a little slower this time. So Kerala base is a little slower. But apart from that, all major regions are doing well, sir. Sure. Sir, if I remove your? Sure. Sure. Sir, if I look at the margins in the south, Andhra, a lot of your stores are new stores in Andhra less than two years. So if I have to remove Hyderabad as a city and then if I have to see the actual growth in Hyderabad, how would the margins be ex of Hyderabad for you in the south market because those are still growing and not mature stores out there? So, sir, see, if you look at the AP and the Telangana upcountry split, one advantage that today we hold there is that the product mix for mobile phone is a little lower than Hyderabad city. Automatically, the larger appliance or larger product category would have a higher gross margin. So the blended margin there would be a little higher, 0.2 basis higher than the Hyderabad city margin because of the product mix. Sir, but if I take your top 10 stores in Hyderabad, they would be doing INR 1,000 crore plus revenue. Those would be more ownership stores. Rental would be pretty much not there in those stores. Actually, I was looking at the broader number. But if you actually break down store-wise, then definitely, yes, Hyderabad, the EBITDA store level, EBITDA for these stores will be higher because their own stores and the productivity costs were the highest there. So the cost of expense in terms of manpower, electricity, everything would be in few point percentages. But if I look at the actual number for Andhra and Telangana stores directly compared to it, then you would look at a regular store EBITDA margin of 7, 7.5, 8% kind of a number, sir. So should I assume, right, that as these stores mature in Andhra, the margin expansion can happen, or do you think they've reached their peak margins at around INR 25 crore-INR 30 crore revenue mark, which they're currently at? So, sir, definitely, yes. So once we emphasize on the productivity per store, that will definitely help us increase our EBITDA at store level. But again, the tier two, tier three market have their limitations on how much we can extract out of a certain market because the market clusters are very small there and non-premium clusters. Sure. Sir, any update on the revenue question of mine, which we discussed previously? Yes, sir. Framework is ready. Framework is ready, sir. Yeah. Sir, last year, during the second quarter, we earned about 7.5% incentive income. So it's all it's 2.5% on the retail sales. So this quarter, we earned only 4.9% on the retail sales. So had we earned the same rate of return during the current quarter and without considering Delhi revenues, the growth in our revenues would have been 7.9%. Sure. Sir, so this drop in incentive, is it because of festive delay? Is it because of market share loss, or the brands have reduced incentive? And can we get back this incentive in quarter three? So can we see a disproportionate growth in incentive in quarter three? No, no, no, no. What happened this time, see, we have two types of incentive. One is on purchase. That is what we call it as sell-in. The other one is sellout commission or sellout incentive, which is calculated on the sales targets achieved by us. So what happened this time, most of the sellouts, we ask the brands to give it on the invoice itself without waiting till the product is sold. Thereby, we will save the cash outflow. So that is a shift from sellout, which is a separate line item in the P&L. So from sellout, it moved to COGS because whatever incentive we earn on purchases will be reduced from the cost of goods, sir. So this is a movement from one line to other line. So that is the reason why we—I mean, if you look at the top line—I mean, total revenue growth, it shows little lesser growth. Sir, I didn't understand, but I'll take it offline with you after the call, sir, to understand in more detail, sir. Thank you [crosstalk] Thank you. The next question is from the line of Gaurav Arora from Equirus Securities. Please go ahead. Hi. Yes, sir. Gaurav ji. Sir, my question is on competitors and sales between the different. Sorry to interrupt, Mr. Gaurav. We are unable to hear you clearly. Can you come a little more closer to the mic? Hello. Can you hear me? Much better, sir. Yes, sir. Better now. Okay. Sir, my question is on competitive intensity in the large appliances segment. So the demand seems to be pretty weak over there right now. So two questions regarding that. If I look at Q1 versus Q2 and so far in Q3, have you seen competitive intensity getting more intense or a letup in the same? And in case and how does that impact your margins? I mean, does higher competitive intensity within brands, does it benefit you? And to what extent does it do so? Right. So, Gaurav ji, very true. So, see, if I look at the H1 of this year, the demand for the cooling products went a little down, but AP kept on growing. AP was still growing and still growing. So AP is still up by 30% if I look at it. Refrigerator went a little down. Washing machine was a little sluggish last quarter. Television was a little sluggish. But again, I see a growth coming in during the World Cup and the festival period this year for the larger brand category, especially for television and high-end above 65 in OLEDs, 75 in that category. So if I look at the overall blended margin, so that decrease in 5% or 6% kind of a number or growth of 5% in fewer of the categories, plus or minus, has not impacted the overall margin level per se because most of the larger appliance category would remain in the similar gross margin level. But if I see a drastic product change, product mix change, then definitely, yes, we would look at half a percentage change in margins here and there. But the demand, as you said very correctly, was a little sluggish last quarter. And then the festive period starting this year would be on 15th of October with the first Navratri starting in the Q3. So now we are seeing the trends coming in. But as somebody else earlier on the call was already discussing, the market sentiment in few of the regions was a little slower. Like Onam didn't do that well in Kerala. Kerala is a little slower this year again. East market didn't perform the way it performed during the last Durga Puja or the summer this year. The Q1 was quite good for the East market this year. Whereas north, south, and west were struggling for summer this year. So a lot of external factors actually affect the product mix and especially the cooling for the categories. But festival period overall here in north and south looks good. And we are hoping that we sail through this with good numbers. Sure. Thank you, sir. Thank you, sir. Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star one. Is there any further questions? I now hand over to the management for the closing comments. I would like to thank you all for joining into the call. I hope that you were able to answer all your questions. For any other further queries, you may get in touch with us or HGAR, our investor relationship advisors. We will be happy to address all your queries. We wish you all a very happy Diwali and a happy festival season in advance. Thank you, everybody. Thank you, members of the management team. Ladies and gentlemen, on behalf of Electronics Mart India Limited, that concludes this conference call. We thank you for joining us. And if you may now disconnect your lines. Thank you.