Ladies and gentlemen, good day, welcome to the Lux Industries Limited Q1 FY2023 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance in the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Udit Todi, Executive Director of Lux Industries. Thank you, over to you, sir. Good afternoon, thank you everyone for joining the earnings conference call for the quarter ended June 30, 2022. Along with me, I have our CFO, Mr. Saurabh Kumar Bhudolia, and SGA, our investor relations advisor. Mr. Saket could not join the call as he is traveling and the flight got delayed. I hope you have received our results and investor presentation by now. For those who have not, you can view them on our website. For the quarter ended June 30, 2022, the company has reported a robust revenue growth of 36% over the same period last year. This growth in revenue was largely fueled by improving traction of our power brands, particularly ONN and Lyra, coupled with its legacy brands, Cozi and Venus. For the quarter gone by, ONN has reported a net sale of INR 30 crore, which grew over 94% for the same period last year. When we talk about the womenswear brand, Lyra, which stood at about INR 97 crore in this quarter, which was a growth of about 136% over the same period last year. Brand Lyra contributes almost 17% of the top line, whereas ONN contributes about 5% of the top line. The company's latest offerings of lingerie product range under the brand Lyra, has been getting good response from the market, helping it to evolve from a legging-centric brand to a multi-product, multi-category womenswear brand. The company's increased penetration in the womenswear category is assisting Lux in creating brands across genders, along with increased sales and profitability. Additionally, we have seen gradual shift towards the online purchases, largely driven by millennials. This has enabled Lux to create new channels for engaging with the end users, and offer a range of more than 100 products under 15+ different brands, ensuring relevance across ages, genders, geographies, and seasons, leading to enhanced value of the brand. Being one of the biggest players in the branded innerwear industry, Lux has been proactive about changing the consumer preferences, and is responding by creating innovative and trendy product lines, and maintaining a healthy balance between offline and online channels. In this regard, company is expanding its e-commerce presence and has partnered with top e-commerce companies such as Amazon, Flipkart, Myntra, and AJIO, and is currently shipping more than 4,000 orders daily. Going forward, the company aims to generate about INR 100 crore of top line coming in from the online channel. Coming to marketing and advertising spend, which is one of the most important factors in developing the company's brand equity. The company has invested a sizable amount of approximately INR 836 crore in brand building over the last 6 years, while brand investment in Q1 FY23 stood at about INR 42 crore. This brand investment accounts for about 7.5% of its net sales, which is similar to what the company has been spending historically, barring the COVID period. In terms of supply chain, we have one of the largest distribution network. Thanks to the company's strong brand equity and goodwill, it has been able to preserve long-term partnerships with its distributors, dealers, and retailers. The company dominates the domestic innerwear market in terms of volume and is well established in the northern, eastern, and western parts of the country. More than 1,170 dealers were associated with the company as of June 30, with an attrition rate of even less than 1%. The company has established 11 depots and 19 warehouses located across 12 states to facilitate quicker and timely delivery across the country. The company targets to penetrate and tapped and under-tapped areas in South India, which is where its sales contribution is less than 4%. The company plans to further improve it and streamline its distribution network. Coming to company's CapEx plans. The company intends to invest another INR 50 crore in Ludhiana, along with other capital expenditure that are on track and progressing according to plans. A major chunk of it would go towards enhancing production and storage capacity. With improved mechanical equipment and a scientific approach in operations, the company aims for more flexibility in terms of capacity according to market demands. Before I hand off the call to Mr. Bhudolia, I would like to emphasize that the company is committed to maintain flexibility in the medium to long term, to manage the volatility in raw material prices, and deliver consistently competitive and cash accretive growth in the coming quarters. With this, I would now request Mr. Bhudolia to take you through the financial performance. Thank you, Udit Todi. The company has posted robust performance for the year ended June 30, 2022. Despite the industry experiencing multiple challenges, the company has reported a revenue of INR 572 crore, a significant growth of around 36% on YoY basis. The company has reported solid top-line growth, driven primarily by increased demand for branded products from Tier one, two, and three cities. ...The company's region-wise revenue contribution is as follows: North India, we are getting a contribution of around 35%, whereas in East India and West India, it's 21% and 25% respectively. Central India, well supported with 16% of the contribution, and South India is around less than 4%. Well, segmental split is two that follows, mid-premium is giving a contribution of around 52%, economy is 35%, and premium is around 13%. Sales of our economy segment, which includes brands like Lux Venus, Lux Karishma, increased with a rate of around 20%. The sales of our mid-premium segment, which includes brands like Lux Cozi, Lyra, and GenX, witnessed a whopping 52% increase in the top line. Our sales in the premium category, which includes brands like One8, ONN and Lux Premium, have seen a growth of 25%. Export sale for the quarter stands at around 6% of the total revenue. Growth in volumes for our economy brands stood at 8%, mid-premium segments saw a double-digit volume growth of around 27%, whereas premium segment reported a largely stable volume growth of around 1%. The company's overall ASP has grown by around 20% as compared to the same period last year. The company's EBITDA for the year declined approximately 14%, which stood at INR 78 crore as compared to INR 91 crore over the same period last year. EBITDA margin stands at 13.6% versus 21.6% over the same period last year. The decline in EBITDA margin was majorly attributable to high-cost inventory stocking in the previous quarter, and volatile prices of the raw materials, which impacted the gross margin. However, this was partially neutralized by the growth in overall volumes and the company's ability to pass on the raw material prices. PAT for the quarter stood at INR 50 crore as compared to INR 64 crore over the same period last year, while PAT margin for the quarter stand at around 9%. As on June 2022, the company's working capital cycle stood at 209 days, which is elevated due to stocking of raw material, which is elevated due to stocking of raw material and semi-finished inventory. However, the company expects to optimize its working capital cycle in the coming quarters and grow its revenues without further working capital deterioration, resulting into superior return on capital employed. Inventory days stood at 143 days, as compared to 131 days, same period last year. Cash and cash equivalent as on 30th of June 2022, stood at INR 110 crore. With this, we will now open the floor for question and answers. Thank you. 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 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 comes from the line of Mayank Makar from Mirae Asset Capital Markets. Please go ahead. Yeah. Hi, sir. Now, I wanted to understand what is the volume growth or degrowth in all the three segments, premium, mid-premium, and economy segment from quarter-to-quarter? Because this is given year-on-year basis in the presentation, so quarter-to-quarter is, can we have that? quarter to quarter. We have already given the numbers. This is YoY basis versus June 21 and June 22. Actually, point is that quarter to quarter, since then, two quarters we are seeing decline in sales. Just wanted to understand what is the volume effect in quarter-to-quarter basis? What, Mayank, we do not have the figures handy with us. Okay. We can, we'll, we'll circle back to this, this is something which we can provide with the IR team. We can just get in touch with them, we'll provide them with the data. We don't have it ready with us right now. Sure, sure, sure. Also now, another question is that can you give the inventory breakup into finished goods, raw material, and WIP? Almost 70% of the inventory is lying in the semi, is lying in the finished goods stage. 20% of the inventory is in the semi-finished stage, and 10% is lying in the raw material. Generally, as a practice now, we start our process from the yarn. We don't, we don't keep the inventory in the stage of the raw material. As soon as we are getting the yarn, we try to get it converted either in the semi-finished or we move it to the finished product. That as soon as the demand is getting propped up, immediately we should be ready with the finished goods to get the supply done. Okay. What is the raw material prices now vis-a-vis 30th June, like, the results are reported as on 30th June, but what are the raw material prices and the cotton prices now? The raw material prices, Mike, are now already, have already started to decline, so we can expect, you know, the raw material prices have already started to decline, so we can expect better gross margins going ahead. Okay. Okay, thank you. Thank you so much. Thank you. Next question comes from the line of Akash Mehta from Caps Investment. Please go ahead. Hello. sir, I had a couple of questions. One is, any plans to list the Lyra as a separate brand, as it is doing so well in the portfolio brand? See, this is something which is quite difficult to comment, but we don't have any plans for. We, we haven't even given it a thought as of now. Okay, not in the near term, as such. You can take that as a suggestion, but as of now, we haven't given it a thought. Okay. Secondly, on the working capital side, can you just throw some light on the working capital going forward, and when is it expected to come down? See, the way we are seeing that from Q2 onwards, the sales will pick up. Last year as the winter was not so good, so this year we are expecting the winter will be much better as compared to the last year same period. My working capital cycle should get stabilized towards the end of Q3. Within the third quarter, okay. Okay, I think that answers my question. I'll join with you again. Thank you. Before we take the next question, a reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Nikunj Somani from Fortune Capital. Please go ahead. Yeah. Yeah, sir. My first question is about that, how do you cater the women's segment? Because it is so, it is a big opportunity, and you should have more brands in this segment. What you have planned for this segment? Can you please come once again? I, I, I kind of understood. See, with the womenswear brand, Lyra, we are already making womenswear products, and it is positioned as a mid-premium brand. You know, most of the womenswear requirements are taken care of as a brand. We are quite big into leggings. We've also launched lingerie, so that encompasses the womenswear in our wear portfolio, and then we also have women's athleisure in it. More or less all the categories which come under the womenswear have been directly, indirectly tapped by the brand. Yeah. My second question is related to about the volumes in the premium segment, because it is not increasing. In the premium volumes, in the premium segment, can you give any guidance? Volumes in the premium segment, volumes in the premium segment, it's been more of a value growth rather than a volume growth. The volume was quite flattish for the quarter, but definitely, like, if you see in this quarter, my export contribution was 6%, whereas generally we are keeping a momentum of around upwards to 9%-10% in the export. I believe from the quarter two onwards, definitely there will be a high chances that we can see the volume growth in the premium segment. Yeah. Thank you. Thank you. Thank you. Before we take the next question, a reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Priyanka Gandhi from ACE Capital. Please go ahead. Hello, sir, I just have a couple of questions. Firstly being, can you throw some light on the steep decline on the EBITDA margins? Is this purely because of the high cost inventory, or is there something else to highlight here? See, if you look at our EBITDA margin, if you look at it, quarter-over-quarter, they have seen a decline of about 5.5%, and out of that, about 4.5% is on account of dip in gross margins. Majorly, whatever dip you're seeing in the EBITDA margins was on account of dip in gross margin, which was further in account, because, primarily because the increase in the raw material prices were not being able to pass on to the customer. We can only, we can only pass on the increase to, in raw material prices to a certain extent, but not completely. That is why the certain hit on gross margins were taken. As we have already mentioned that, the cotton raw material yarn prices have already started to come down. You know, we expect the gross margins to be better in the near future. By quarter two and quarter, end of quarter three, you'll see better margins coming in. All right, that answers my question. My second question is: Where do you see our share of premium wear in the coming years? See, premium wear as a category has been growing faster, for the company overall, which is a very healthy sign for us as well. The product mix is also, you know, it's also changing towards the premium wear segment. We believe that, the premium wear should grow, outgrow the overall company growth rate. All right. Thank you so much, sir. That's all from my end. Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Abhishek Singhal from Naredi Investments. Please go ahead. Good evening, sir. Good evening. In, in, Q4 call, you, you said the company kept, raw material stock, and continue increasing in cotton prices. Profit, we'll see in Q1 of FY 23. In Q1 FY 23, EBITDA margin, tax margin, and gross margin is overall down from Q4. What is the reason behind this? See, again, as we explained in the, as we just now explained, there was a increase in the raw material cost. To certain extent, we have passed on the cost to the customer. Beyond that, the company is absorbing that cost. Suddenly the raw material prices has started coming down. At this point of time, it would not be the right from the company perspective, that still we are charging the higher cost to the customer. If you see the raw material prices to the extent of around INR 350 of the yarn cost, we have managed to pass on to the customer. The raw material prices has gone up to INR 450. The difference between INR 350-INR 450, this is what the cost company is absorbing in its own P&L. And- This is what, once the gross margin is getting dipped, definitely all other bottom line ratios, you will see that there is a decline. Okay. The second question, by earning INR 2.94 crore from insider trading, do you know your market capitalization declined from INR 11,000 crore to INR 5,500 crore? What blunder you did company board penalized anyone director who involved in such activity, and to make Lux brand again to need at least a 5-year period? Do you know consequence of insider trading, and will you give detailed reply to all investors? I believe this is what we are not here to judge that actually this is an insider trading case or not. I believe the case is already being ruled by the SEBI. They are already doing the necessary investigation. We should protect our comments till the time we are getting the final order from the SEBI. Last time also, we have explained and we have already uploaded the replies and the confirmations, what we have received from the stock exchange in the NSE and BSE side. I'm just reiterating my statement that SEBI has already lifted restrictions on 14 entities in Lux Industries insider trading case. SEBI, by this confirmatory order dated May 27, 2022, has modified its earlier ex parte order and allowed all the entities, including Mr. Udit Todi, who is the director of Lux Industries Limited, to deal in all securities, except in the scrip of Lux. Pending conclusion of investigation, the order has now been modified after considering the facts and circumstances of the case. Yeah, sir, due to this consequence, our brand value is down from INR 11,000 crore to INR 5,500 crore. Yeah. I believe from the start till end, I mean, till now, there was no allegations on the company perspective. There was certain allegations on one of the director of the company, but for that also, the personal hearing has been gone on, and this is that only SEBI has given this kind of exemption, and they have lifted the restrictions. I believe we should wait for some more time. Let's get the final order out from the SEBI side, and then we should discuss and describe, decide the way forward. Okay. Thank you so much. Thank you. Next question comes from the line of Darshit Shah from Helios. Please go ahead. Yeah, thank you so much for the opportunity. Just one question from my side. Could you just throw some light on your distribution network? What are the dealers currently, and what was it three and five years ago? What is the current retail distribution network you as a company have versus three and five years ago, and where are we steering towards? Thank you so much. As of Q1 ended, FY23, we had about 1,170 odd distributors on board, and typically the company on an average adds about 20-25 distributors every year. If you go back three years or so, we would have had about 100 odd distributors, lesser than that we have right now. As far as the direction ahead is concerned, as we have already mentioned, we feel that the under-tapped market of South India is one of the areas where we believe that we want to expand our distribution network in. Okay. On the retail touchpoint? The retail touchpoint goes hand-in-hand with the distributor expansion. You know, it is directly proportional to the number of dealers, distributors that we have. Per distributor, how many retail touchpoints you would be having? Per distributor, we will be having about 250-300 distributor, 250-300 retailers. Okay. Sure, that's helpful. Thank you so much. Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Prerna Jhunjhunwala from Elara Capital. Please go ahead. Thank you, sir. I have missed the initial commentary. Sorry if the questions get repeated. I wanted to understand this inventory increase in the business. Now that prices of raw materials are, are higher, will you have to take a price decline or an inventory correction in your books going forward, to align your product prices with the raw material price correction that you expect? What can be that hit, if at all it will be there? Prerna, as I explained in my in the last question, that company has already passed on the cost to the extent of INR 350 on my raw material cost to the customer. Anyway, there was a dip in the margin in the current quarter, so almost the increase in the raw material cost has already been absorbed by in quarter one. Company always follows the policy, to carry the inventory at cost or NRV, which is, what- whichever is lower. Definitely, my sale price is much higher as compared to my cost price, so there is no question that we should carry any kind... We should take any kind of hit or provision as far as inventory is concerned. Okay. maybe my question is wrong. Just wanted to understand, you know, if you're selling at INR 100 today, absorbing that INR 350-INR 450 raw material price increase, if raw material prices decline to maybe INR 300 or INR 280, will you have to take a price correction in your inventory? Definitely, if that kind of fluctuation would be there, then company will definitely is going to take that kind of hit in the PNL. As you will see, my stock turn, my stock turn is around 4.5 plus, so I'm not carrying inventory more than three months, three, three and half four months, right? The inventory which I'm carrying now, definitely this inventory will get churn out by the end of next quarter. That's, that's a great news. Second, I wanted to understand the industry scenario, currently. How is the demand panning out? Because earlier, the organized versus unorganized in the time of pandemic times, the organized players were quite benefited. How is the competition coming in from unorganized segment today? Do they still remain out, as in, as seen in pandemic time, and how is the experience currently? See, overall, the shift which happened from the unorganized to the organized sector is a theme which has been playing continuously. Once the network, the channel, the customers move from the unorganized product to the organized product, they generally don't move back to the unorganized segment. With the raw material prices being so high, it always, you know, working capital is always an issue with the unorganized players. You know, with raw material prices high and the kind of industry scenario which is playing out right now, it is only helping the organized players even more. With regards to the market outlook, we believe that, okay, the market has been slightly sluggish off late, so but we are expecting that because, you know, the festive season is just about to start with Rakhi coming in, and this festive season goes all the way up to Diwali, after which the winter wear sale starts to happen. So, you know, from Rakhi until Diwali, until the winter season, we are expecting the market to bounce back. Okay. Sir, what kind of sales growth you are looking at in, in this year? Because it's a very challenging year, it is difficult to visualize growth like in a normal year. It will be a double-digit growth, but it would be very difficult from our side also to give you any kind of guidance at this point of time. I believe we should wait for some more time, and by the end of quarter two, we will get the right visibility to comment on the year-end numbers. Okay, understood, sir. Sir, two more questions from my side. One is EBOs. You have 12 EBOs today. What is the outlook on EBO openings? How has been your experience in terms of EBOs? Because you just started operating EBOs in, in last one, two years. Any learning experience that you would like to share? Yeah. How it is helping you? The learning experience has been great, and that was one of the main reasons why we had also opened up the EBOs, to get a deeper sense of the retail market. As far as the financial performance is concerned, it's kind of a mixed bag result. Some of the stores are doing really well, some of the stores are sluggish. Overall, it's a mixed bag kind of a response. Yeah, from the learnings point of view, it is a great learning curve, and the company, the organization as a whole, gets to learn a lot from, you know, the customer sentiments and what is the actual need of the customer at the grassroots level. These EBOs, are they your financial, investment, or they are largely marketing investment kind of thing, and, we should not see a very aggressive EBO? Is it a financial marketing touch point, and we should actually see aggressive EBO, EBO openings maybe after a year or two or something like that? It's more of a marketing strategy only, but anyway, largely, almost more than 70%, 80% of the EBOs are in FOFO model. We are trying... We are, we are tied up with so many franchisee owners who actually buys the material from me on a bought out, on a bought out basis, and in turn, they are doing the secondary sale. Okay, okay. Last is on Lyra. How is being the traction on the lingerie segment, which has been launched recently? Lingerie we are seeing. Anything you would like to share? Lingerie, we are seeing very good traction because as we said that, that is one category which we earlier on, you know, on a national level, you see very few advertisers advertising that category. In quarter one, we went quite bullish with our advertisements, and we'll be continuing to do that throughout the year. Once the category has started to see advertisements, it's good, you know, a good awareness regarding the brand has come in. Earlier, Lyra was perceived more so as a leggings brand/a bottoms wear brand, but with this new advertisement also, it has helped us to reposition our image as a complete womenswear brand. You know, overall, the positioning of the brand has improved, the traction in the lingerie segment has improved. overall, it has been quite good for the brand, and we can see that percolating down in the numbers as well. Sir, what is the range in the lingerie segment currently? You mean number of stores? Either number of stores, distributors, or, in terms of- About, we are working with about 170, 180 odd distributors as of now, because we wanted to go slow. Now that we have started to market the product, we are aggressively increasing our distributor reach as well. It is largely present in East or Pan India? It will be mostly Pan India. It will be mostly Pan India. Okay. Thank you so much, sir. All the best and all the best for this difficult, challenging year. Thank you. Thank you, Prerna. Thank you. Before we take the next question, reminder to all the participants that you may press star one to ask a question. Next question comes from the line of Anika Mittal from Invest Research. Please go ahead. Sir, if I'm not wrong, in Q4 FY21, you have sanctioned investment of INR 110 crore for expansion into existing and new geographies. From that quarter, in your all investor presentations, you are mentioning about total investment is approx INR 110 crore. Additional revenues for proposed expansions will be INR 400 crore. If we look at Q1 FY23 presentation, that very guidance is missing, and total investment amount is of INR 50 crore. Does it mean that have you incurred INR 60 crore payday or anything else? no, I believe, let me try to clarify you. last- Mm-hmm. -to last year, we have sanctioned an amount of around INR 110 crore for an expansion in Mm-hmm. Eastern India. The factory is almost done. It is, maybe it will be functional in another three to six months of the time, and then we can see the numbers will start coming in, in the books of account. This INR 50 crore of the approval for CapEx has been given for a new setup we are planning to have in the Ludhiana. Okay. This will be the new setup and new investment of the CapEx starting from this year. Okay. What will, what about the revenue guidance? Sorry, come again? What is about the revenue guidance that you have given in your investor presentation? Yeah. last time, the way we have, we are completely on track, that once my factory will be keep running, for this 100 Mm-hmm. INR 10 crore of the investment, company can easily see that over a, over a period of two-three years, we should be in a position to get a INR 400 crore of the additional business in the top line side. Okay, sir. Okay, sir. Thank you, sir. Thank you. Next question comes from the line of Amit Shah from Ace Securities. Please go ahead. Hello? Hello. Hello. Hi, sir, I have couple questions. Sir, firstly, how much ad spends are we planning this year? I mean, as we have reduced ad spends due to COVID, last couple years. Historically, we've maintained about 8% of top line as ad spend. During COVID, we had really gone down to about 4%, 4%, 4.5%, 5%. As we had already suggested during our previous concalls as well, that we'll be bouncing back to roughly about 8% going ahead. Because, you know, in the last two years, we've not spent much, so maybe this year we might exceed 8% or maybe it'll be borderline 8%-9%. Understood, sir. Sir, what is the strategy to in penetrating our southern region? Southern region, we are aggressively looking at increasing our distribution network in the South, which will in turn help us to convert it to sales. Okay, sir. Thank you. Thank you. Next question comes from the line of Divesh from BS Investments. Please go ahead. Yeah, hi, good afternoon. My question was, relatively, you know, if you were to look three, four years out, which is, you know, starting from 2018, 2019 onwards. We did a great job letting, you know, top line grow, high teens and margin expansion happened. Then we were about 10 and 21%+ last year, right? Mm-hmm. As you call out in your opening remarks as well, that the mix would tilt towards more premium things. If you were to sort of, you know, broadly talk about next three to four years from here, how do you see the growth quality, both in top lines and margin trajectory? As far as premium is concerned, currently, my revenue share from the premium segment is around 12%-13%. Gradually, the way we are seeing that over a period of another three-four years, the premium segment should reach to a number of around INR 500+ crore. Maybe, see, that point of time, the overall revenue will also go up, but still we are expecting that around 15 between 15%-20%, my premium segment contribution should come in. Got it. And if you could also, comment that last year we had about 21% plus type margins, how would it evolve over the next few years? Do you think this is, this is more sustainable range where we were last year? It should hold on, kind of, like, again, the way we are seeing the premium segment should give me a gross margin in the range of 40% plus. From the bottom line perspective, we need to factor so many other things that how we are going to strategize our advertisement cost and other overheads. Right. Right. And one more transitional element, if I were to look at QOQ, there is a sizable jump in the employee expense. Is it, is there a one-off in here, or this, this should be the new base? How should we read this? If you see the, on a, on a YoY basis, there is a increase in employee cost by around 100 basis points. Mainly because, as we said earlier also, that company is very much eager to invest in the people and in the IT. That is the reason we are filling up few of the key positions, and we have given a right salary hike also to the existing employees. That is the reason. This is one of the costs, and company is well-maintained to carry this level of the cost as far as employee is concerned. Sure, sounds good. One last more qualitative quick comment about, if you were to see, you know, we are probably, you know, the second largest in the organized segment, right? How do you see competitive intensity within organized sector? Do you see enough room for everybody to grow, or do you see, you know, that the market itself is expanding slow, so there would be a heightened competition within organized players? How do you see that playing out? See, within the organized players, we see, we feel that there is enough room to grow, provided that you have the right mindset and the right vision. Vision and approach and direction of the company should be proper, and then there is enough room for growth. And by vision and direction, I mean that you should be tapping the right categories at the right time, and all of that. Yeah, when we talk about the basic essentials, such as the men's vest and brief, that would be growing at almost industry average rate, give or take a percentage or two, because of the shift from the unorganized sector to the organized sector. When we talk about the company growth rate within the organized sector, in that case, you know, there are so many new categories which are opening up, which is basically, which is the outerwear play, which is the athleisure play, which is the women's wear play. You know, when you take all of these into account, it is mostly the organized players which are able to capture such kind of growth. When you look at a more macro picture, the organized, we believe that there is still at the company level, the organized sector should grow fairly well. All right. Sounds good. Thank you for the answers. Thank you. This was the last question. We have reached the end of question and answer session. I would now like to hand the conference over to the management for closing comments. I would take this opportunity to thank everyone for joining the call. I hope we've been able to address all your queries. For any further information, kindly get in touch with with us or Strategic Growth Advisors, our investor relations advisors. Thank you, all. Thank you. On behalf of Lux Industries Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.