Ladies and gentlemen, good day, and welcome to Relaxo Footwears Limited Q2 FY24 C onference Call, hosted by IDBI Capital Markets and Securities Limited. 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, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Archana Gude from IDBI Capital Markets and Securities Limited. Thank you, and over to you, ma'am. Thank you so much. Good evening, everyone. On behalf of IDBI Capital Markets and Securities Limited, I would like to welcome you all to the Q2 FY 2024 post results conference call of Relaxo Footwears Limited. From the Bangalore side, we have with us Mr. Ramesh Kumar Dua, Managing Director, Mr. Gaurav Dua, Full-time Director, Mr. Ritesh Dua, Executive Vice President, Finance, Mr. Sushil Batra, Chief Financial Officer, and Mr. Ankit Jain, Company Secretary. We begin the call with a brief discussion from the management, and then we can open the floor for Q&A. Thank you, and over to you, Sushil, sir. Thank you, Archana. Good evening, everyone, and thank you for joining us on our Q2 FY 2024 Earnings Call to discuss the financial and operational performance of the company. We have already uploaded the earnings press release and investor presentation on the stock exchange, as well as at our website, and hope you have had the opportunity to go through those. Before we begin the question and answer session, let me give some highlight on Q2 and H1 FY 2024 financial performance of the company, beginning with Q2. Revenue in Q2 FY 2024 was at INR 715 crore, up 7% from INR 670 crore in Q2 FY 2023. We witnessed strong demand during the quarter, which has led to a strong recovery in volume, driven by open footwear. EBITDA recorded a strong 54% Y-o-Y growth at INR 92 crore as against INR 59 crore in the corresponding quarter of last year. Softening of raw material prices and better operational efficiency due to economies of scale enabled us to enhance our EBITDA margin by 392 basis points in this quarter. EBITDA margin was at 12.8% in Q2 FY 2024, as against 8.9% in Q2 FY 2023. At almost double in this quarter at INR 44 crore, as against INR 22 crore in Q2 FY 2023. That margin stood at 6.2%, up 283 basis points from 3.3% in Q2 FY 2023. In H1 FY 2024, we recorded a revenue of INR 1,454 crore, with INR 1,337 crore in H1 FY 2023, an increase of 9% year-on-year basis. EBITDA was at INR 199 crore, from INR 146 crore in same period of last year, up by 37%. EBITDA margin was at 13.7%, as compared to 10.9% in H1 FY 2023, an expansion of 200... The company included CapEx INR 56 crore as on 31st September 2023. We remain a net debt-free company with positive cash from operations. We remain committed to provide quality product type for evolving customer need with focus on premium and innovative products. We continue to expand our strong distribution network with a special emphasis on new channel and e-commerce. Thank you. Now we can open the floor for questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset 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 Onkar Ghugardare from Shree Investments. Please go ahead. Good afternoon. My question is regarding... So last year, you were talking about the premiumization of product- I was asking about, in last year, you were talking about premiumization of the entire product category, but, since last year, you have taken price corrections. So exactly what kind of strategy you are looking at now? Higher number of pairs to be sold and with less, value or other, other way around? That's the first question. Ramesh Kumar Dua. You know, last year we did some price correction. Before that, we had lost some market share to competition. After price correction, we have regained our market share, so our volume growth. In In fact, it's more than 20%. As far as premiumization is concerned, focus is there in Sparx, in Bahamas, and already we are having a good traction of these premium articles. So that focus is, is there, and it will continue. But the loss of market share was due to a higher prices of your products, or was there any other reason for that? No, last year, because of higher, you know, we had a lot of old stock, what you call it, costly inventory in the system, because our industry operates on lot of import materials, and we have to have a supply chain of around six months of that material. So that is why it took some time to consume. Meanwhile, the market rate had fallen, but now we have our inventory in the system, now it is comfortable. So the second question is on the revenue of the company. So what kind of revenue you are expecting in the second half? We are expecting a double-digit growth in the second half. Just a last question on ROE and ROC, which has been falling from last 2, 3 years. What's your strategy on that front? Certainly, because our margins are under pressure, so once things will settle, so definitely ROE and ROI will be better because, then capacity utilization and, more earning will be there, so that percentage will improve with the performance. R egarding that, what kind of margins are sustainable? Now you have clarity on this. The rest are around 14% EBITDA. EBITDA, 14%? You are expecting this margin in the upcoming quarters or like, because the current margin is less than the margin which you are projecting? You're right. But you know, when the volume go up, our sale go up, then the H2 is going to be better than H1, so things will improve. Yeah. Due to operating leverage, you will gain the margin, right? Automatically, because of operating leverage, our EBITDA will improve. W hat's the capacity utilization you are working at currently, until at Q2, what was it and what do you expect to be? Currently, it is a 63% utilization. Oh, that is for Q2 you are talking, right? It's H1 we are talking about, it is around 63%. W hat kind of capacity utilization you see you will work with going forward? Generally, it remain around 65%. All right. Thank you. Thank you. The next question is from the line of Ali asgar Shakir from Motilal Oswal. Please go ahead. T hank you so much for the opportunity. You know, I had a question on your closed footwear. So we had a very good, you know, trade show, I think a couple of months back, where we had, you know, displayed the entire range of our, closed sportswear. So I just wanted to understand a couple of things. First is, you know, I mean, Q3 typically is your large quarter for sportswear. So how is the initial response? And, you know, I mean, what is the kind of demand and growth that we are seeing? Our contribution from sportswear, I think, correct me if I'm wrong, is somewhere about INR 250-300 crore. So, what kind of growth we expect? O ur competitor has had a significant size, and I think we've also had aspiration to grow significantly. So do you think this is a category which can be somewhere close to, like, INR 1,000 crore contributor to you in probably a few years? I'll stop here. Thank you. T his is Gaurav Dua, and you are right that this category has huge potential to grow. What you're saying, INR 1,000 crore, maybe in two, three years, we will definitely plan to grow to that level. Regarding the market situation, as you know, the market is still not picked up what we were expecting. We have done a lot of retail meets across India and distributor meets. The initial response, because of this Pitru Paksh and, you know, untimely rains, has not. Market has still not given a good feedback till now in terms of uptake in the market. It's too early. Diwali is in November, so we are expecting November should be better. Got it. So, I mean, our base would be very low. So of course, from that, you know, base, we should see a very good, you know, performance even in Q3. And just, follow up over there is that, you know, one feedback on the ground is that, the margins in the sportswear is not very compelling and therefore, you know, Relaxo sportswear is not, very well received by the, distributors and, you know, retailers. So have we made any changes over there or, and do you think, we have, addressed, you know, issues, at the distributor level? No. We have made no changes since last 4-5 years. Regarding distributors, they're always concerned about margin. That is their trade habit, you know? They need more margins. We're having the fixed margin, which we have not changed from last 5 years. Even in the sportswear? It's same, it's same. We have not changed. Got it. And, in Q3 from the last year's base, do you think this quarter will, I mean, you know, considering the kind of market weaknesses there, we should, expect, you know, things to only recover, you know, after a couple of quarters? You think Q3, you know, because of our low base, we can expect a strong growth from sportswear. So we are keeping our fingers crossed, and last seven months has not been so encouraging in terms of the uptake of this sports footwear, you know? The market is still little challenging. So we are just hoping for the best that this should now pick up. It's been seven months, like, you know, market is not responding. Right. Got it. Thank you. This is very helpful. Thank you. So take the next question. Reminder to the participants, please enter star and one to ask a question. The next question is from the line of Yash More from RV Investments. Please go ahead. Good evening, sir. My first question is regarding the market share. You said you have gained and lost market share, so what's your current market share? In volume, if you talk about at the company level, last year we see we lost around 20-35% in volume, drop was there in the open footwear, which caused Hawaii and Flite. That only we have regained it back. So there is a 27% in H1 growth in volume, you can see that. What share we lost last year, we have gained it back. What I'm asking is, what are our benefits with relation to FTA, with the U.K. FTA? W ith the free trade agreement with UK? Yes. Not much. These European markets or the U.K. market had been more in footwear. They could be more for leather footwear. But we are moving to non-leather footwear mostly. So that's why may not be impact on us or FTA. Okay, sir. Thank you. Thank you. The next question is from the line of Abhishek Getam from Alpha Invest. Please go ahead So my question was regarding premiumization strategy. So largely, our open footwear are sub 200 ASP. So what are our plans going out to, you know, bring whole portfolio level or footwear level to a higher ASP? I mean, sort of the whole company portfolio in the range of 500+ ASP. And you know, what strategy would we go for? I mean, Tier 1 or Tier 2, 3. So, if you remember, we have taken the last price cut of rationalized price in September. So since then, the prices were less. Now, if you see October, that the ASP has increased. And regarding the premiumization, we have brands, like in Flite, we have launched Urban Basic, which is again, INR 400+ MRP. And we are working on the portfolio of Sparx, which is more than INR 1,000-1,500 MRP. So we are continuously working on our portfolio to increase, make it, increase the ASP and improve on premiumization. Understood. So what, what part would be, you know, 500 plus ASP contributing to our revenues? 20%. It's roughly around 10%. 10%. And so how, where do we see this to achieve, in volume, in terms? I mean, do we see this to improve this 50% sort of in a longer term horizon, five years plus? o ur 80% as on date business comes from open footwear. Right. Company is focused on serving markets. 20% is coming from our other the closed footwear. That is why average comes out low. But our focus is there on premiumization, whether it is Bahamas, Flite or Sparx. So maybe 20% of that, that will ultimately build up premium. Right. Right. So down the line, like for 5 years down the line, we can expect it to 30%-35% sort of contribution. We have to see how the things what kind of traction we get from these categories. R Okay, sir. Thank you, sir. That's all. Thank you. The next question is on the line of Priyank Chheda from Vallum Capital. Please go ahead. Thanks for the opportunity. So Matt, there's an observation where your volumes have remained flat over the quarter since COVID at an average of 45-50 million pairs per quarter. And this has been the trend for the sector also. It's not only pertaining to Relaxo as such. Can you help us understand why the volumes haven't picked at a consumer level? What are the key factors, I mean, that's driving such a muted demand? See, there was an up and down since COVID, you know, the first wave, second wave, third wave, so things have not stabilized. And then the price increase was there in 2020 to 2023 because of war. So it's been like last 3, 4 years, the industry has been facing a lot of turmoils. Now, this year, we were expecting that the industry will grow, but last 6, 7 months are not that, there's no sign of, you know, huge uptake in the market because of, again, untimely rains, inflation pressure in rural India. So that's why the industry is struggling to grow to that level. So if I have to, again, summarize, the price increases that you saw in FY 2023 led to a poor demand in volumes, and then again in FY 2024, the volume pickup hasn't been seen yet. Y ou're right. T hat's why we are able to get that volume, back of 30% growth. Got it. So there has been a BIS standards that has been implemented in the footwear. If you can help us, what would be the implication for us as well as for the industry? How do you see this shaping up for the industry as well? YeaI t has, it is going to become mandatory from January, this January 2024. So whatever products we are making, specifications of that, government has number of times revised. Now we are working on that material specification, and we are, quite ready to, follow the government regulation from January. Does this mean, sir, that a lot of China footwear imports will get reduced? And if you can help us quantify how much would be China imports in footwear, which would not fall under this BIS standards? No. Even whatever goods will be coming to our country, everybody, everything has to be as per BIS standards. Nothing will come out of this. Got it. So would this mean that a lot of unorganized players who would not be able to cater these standards would lose out market share and in turn be beneficial for brands like you? We think so. So just a bookkeeping question on the Sparx brand sales, if you can help us on an annualized basis, what would be the Sparx brand sales? And yeah, that's the question. Around 37%-38%, 30%, between 35-40% share will goes through Sparx brand. And within that, what would be the closed and open sandals and sports shoes breakup, roughly? Overall, you know, 20% is our closed footwear, and 80% is our open footwear. And in Sparx it is 50/50, 50 is our closed footwear. All right. Thanks a lot, sir. Thank you for answering all the questions. Thank you. The next question is from the line of Manan Madlani from KamakKya Wealth Management. Please go ahead. Yeah, hi. Thanks for the opportunity, sir. So my question is around our raw material price. So, what kind of scenario are you seeing? At the moment, you know, for the last few months, prices have stabilized, by and large. So going forward, do we expect a gradual gross margin improvement from here onwards? U ltimately, always we have to be watchful of the market conditions, competition, how it is, so, and keep our prices competitive. We keep on watching this every quarter by quarter. When the volume grows, automatically our margin also grows along with it. At the moment, for the past six months or so, situation has been quite challenging. Sentiments are low, particularly from rural markets, mass segment. But with the volume growth, our margin will definitely improve further. Sir, we were doing some channel check, and we realized that there is some price difference across majorly all categories between our EBOs and our website. So what is the strategy behind that? N o. We have one price only, across all channels. We might have to check it again, because we were doing some channel checks, and there was some- One article, we have one price throughout India, across all channels. T hat's it from my side. Thank you so much. Thank you. The next question is from the line of Ankit Kedia from Phillip Capital. Please go ahead. Thank you. So my first question is regarding the price action, given that the underlying demand in mass segment, you know, is currently subdued, and given that the RM cost is on a declining or a stable trajectory, can we say that price action, you know, be it upwards or downwards, is now behind, and this price stability will come in the market? Or, in next two quarters, if the demand doesn't revive, we could take some price correction as well, to gain market share. So we are not going to take any more price correction because raw material prices has been stabilized. And, there is a, we don't see that there is increase in any raw material price. So our focus is on distribution expansion. Sure. And sir, on distribution expansion, you know, we are going for direct reach now. So if you can just give some color today where we are, and in next, you know, one year or two year, what is the target, what we are looking at? In India, we have a lot of wide spaces, you know, across the country. So, we are going to have a secondary focus, secondary distribution stage approach, rather than like a primary push. So there is a whole strategy working behind it, how to increase our footprints across India. Sir, can you elaborate on this strategy? It will help us understand the business better. Like, we have discussed earlier also, that there are 100,000 outlets, MBO outlets in India. Currently, we are at 65,000 outlets. Every year we are going to add more and more outlets to grow. Sure. So my second question is regarding EVA and PU. Are you seeing both these, you know, products seeing some pressure, or, you know, EVA is doing better than PU and PU is where, you know, there is some impact of demand? No, we are seeing both are growing equally. And I think both have good future. So it's not like one is growing, one is not growing. Sure. And sir, my last question is: you know, colored Hawaii versus non-colored Hawaii. You know, in colored Hawaii, we have seen more competition from Aqualite, Walkaroo and others. While in non-colored, we are pretty much the market leader. So anything, you know, we are doing on colored Hawaii to gain market share? As you know, we have a brand called Bahamas, which is in colored Hawaii. Right. We are growing well in that category. Last year, there was a struggle because of huge MRP. Now it has been cleared, the old stock has been cleared, and we are able to get the market share back. Sir, what will be Bahamas contribution? If you can give us growth, you know, between the brands, it would be helpful. Between what was the Sparx growth for the quarter, half year versus Bahamas and Flite? If I talk about volume, you know, in Hawaii and Bahamas both, it's upward of 20%, the volume growth we have done. Sir, so even the company volume growth is pretty much, you know, in the same trajectory. So where is the pressure coming from? Because at the company level, we have done 23% volume growth odd. Pressure is coming from, if, it's more of like a Sparx brand, you know, the closed footwear. Because season has just started. So last six months, it was, more of open footwear. Now the season has started for closed footwear. So let us see how this quarter and next quarter goes. Sir, with the new capacity coming in now on stream and with the new product, you know, the response being good, you know, where do you think, what changes, assuming the market stays where they are, what is in your hands to drive demand in the market from closed footwear perspective? Is it the competitive intensity is very strong? Will you add, do more promotional activities on the ground, spend more on brand ambassador, you know, to gain market share? Because assuming the market stays the way it is for next 6-9 months. So whatever you have said, all activities we are in the process of doing, be it, spend on BTL, ATL, driving more, launching more articles, doing NPD meets, distributor meets, retailer meets. So everything is like... Because if Q3 is a season for closed footwear, so all activities are aligned for to get the growth in this quarter and next. Sir, but for, you know, winter is just around the corner, so your primary push would have happened in the month of October. So if you can just share how it's been the October month's progress for closed footwear, it will just help us understand how the underlying growth is coming for the season. Since you have mentioned before that there is a lot of competition, you know, unorganized and organized have entered in this category. So we are facing, we are seeing, like, lot of discounts are being offered by unorganized and other players who have entered in the market. So it's not going to be too easy to, you know, win this market. So let us see, how this 2, 3 month goes. Understood. Understood. Thank you so much, sir. Thank you. The next question is from the line of Harsh from Marcellus. Please go ahead. Yeah, hello, sir. So I see that there has been some changes in the top management, and Mr. Shravan Kumar Singh ceased to be the KMP of the company. So just wanted to ask, like, does he continue to be an employer at Relaxo? What really happened, and have you identified a replacement for him? H e's in senior management list, so he has joined as a new product development head. Someone has just joined as a new product development head. He is with us. He has joined as a new product development head. He's part of senior management. Hello. Hi, this is Ankit, the Company Secretary. I just want to update that due to some internal change in role and responsibility, Mr. Shravan Kumar Singh has stepped down under the senior management category, but he will be continuing as NPD head of the company. This is the internal decision of the management. But he's, he's continuing as VP NPD. So just the role of VP NPD has been shifted from being a senior management role? He's not in the senior management list, but he's a part of company only. He's the head of the NPD. Got it. And sir, after taking the price cuts last year, we have seen that we have gained market share, especially in the Flite and Bahamas category. Do you reckon this market share gain story will continue in the ensuing quarter as well? Yes, definitely it will continue. And we'll gain market share, correct? With that extension, volume growth will keep on coming, right? I mean, in the next quarter as well, in spite of the industry being a bit tepid right now. See, whatever like I have mentioned before also, last price cut rationalization was in September, so this kind of volume will not be there. Now value growth will be there. So volume growth is 27% is I don't think so in next two quarters, 20%, maybe 15%. Not that much high, because the gap was in first six months. Thank you. That was very good, sir. Thank you. The next question is from the line of Akhil Parekh from Centrum Broking. Please go ahead. Hi, thank you for the opportunity. Sir, my first question is, what could be the possible reasons for the demand weakness, now, given that we have already taken price correction and it's almost two quarters now? So if you can highlight, like, the other reasons probably why the demand continues to be, weak in our end. So consumer sentiment has been sluggish in the mass segment, and that we are witnessing across the country. You know, in whole footwear category, we are seeing that the sentiments are not that great. So, that's why, you know, that if the industry does not grow, then there will be little challenge. And we are seeing this because of monsoon, inflation, you know? That rural market is definitely not responding. So that I understand, that the sluggishness is there in mass segment, but, unfortunately, none of the companies have been able to clarify, like, what are the clear reasons why we are seeing this pressure, given that the inflation has already started to recede. Yes, yes, but the demand at rural market should also be there, no? We are seeing that the walking of consumers are not that which was before. So, maybe the discretionary spend at a rural level is not there. Okay. You can assume that. But has that started to improve now, given the festival already started? Do you see that improvement now in the month of October? It's too early to comment upon it. We are waiting for this season, you know, this is important. November things improve. Maybe November, December things may improve. Secondly, can you please update on the DMS 2.0 implementation, which we have been talking about since last few quarters. I mean, how far we have reached in terms of implementation, and are we seeing any positive impact? Because one common feedback we were getting is, the wholesaler were undercutting on pricing basically. If you can just highlight something on DMS 2.0. So DMS 2.0, now, 50% of our distributors we have implemented this 2.0, and, our plan is in next three months we'll make it 100%. Regarding price cut, price cut, by distributor, it is, we have not seen that, but maybe it's not in the DMS that they can cut the price. DMS just to get the inventory and how we can do secondary with them and align our schemes accordingly. DMS is not implemented to control, the distributor discount to the retailers. Secondary, yes. Yeah, it is mainly to drive the secondary and have the control what, how things are going. Thank you. The next question is from the line of Onkar from Shree Investments. Please go ahead. I just wanted to know, what are the export percentages of the revenue currently? What kind of scope do you think you have and the margin profile over there? Yeah. This quarter also on H1, if you say, around we have around 2% contribution, and we expect to have this kind of percentage maintenance in future as well. Maybe little bit we can have more because the growth little better compared to other channels, so we will be able to get little better percentage as a contribution. Just wanted to know what are, what is the margin profile over there as compared to the domestic market? It is in line or same, like with domestic, we are earning in the same lines. We are earning margins in the exports as well. They are same, right? Yes. Maybe given the capacity utilization at 63%-64%, isn't it possible to push exports little bit, given the push of the government to the sector as well? We have, we have been doing that because whenever we have started the export, we have been doing in our own brand. So wherever we are putting our product in whichever markets and we are getting good traction, and we are able to get sustained growth because they were cool as well. What's the percentage of online sales currently? We are doing roughly around 12%, the contribution of online and new channels. And, how it has gone up or gone down since COVID? So, if you compare with the last year, it is same. As what I was talking earlier also, that industry is not doing... They're also feeling the pressure. So the growth rate is same. It's not that we are able to grow more. So however, we are adopting a cautious approach also in this e-commerce, because a very important channel for to drive future growth. T hank you. Thank you. The next question is from the line of Jasdeep Walia from Clockvine. Please go ahead. Hello. Sir, thanks for taking my question. So what has been the growth in the Sparx brand in the first half of FY 24? Hello. Sparx brand has not grown, it is just, because of competition intensity was there. Some of the segment, like SSG category, has grown, and now festival season is starting, but delayed also. Now November onward, we are optimistic that this will grow. First half sales are very flat, 0 growth year-over-year. nominal, maybe 3-4%. Got it, sir. And what are the plans to increase the number of PBOs in the second half of FY 2024? W e are having a little cautious approach. Things are... We are doing to improve the planogram, improve the consumer-friendliness, training the staff, and also trying to find out how to improve the efficiency in our retail outlets. Then we have a plan for expanding the network in retail outlets. Got it. Thanks, sir. That's all from my side. Thank you. The next question is from the line of Archana Gude from IDBI Capital Markets. Please go ahead. Hi, sir, just one question from my side. So what is your revenue on the geographic basis, and what are the efforts you are putting in to increase our market share result? If you see, we are doing 45% coming from North Zone, followed by East Zone of 22%, then West, 20%, and 15% is South. Sure. So, South market, there is a challenge of growth because the demand is subdued, specifically in South market. So that will be for both the categories, upper and clothes? Correct. Sure, sir. Thank you. Thank you. The next question is from the line of Sachee Trivedi from Trident Capital. Please go ahead. Hi. Thank you so much for taking my call. The question I have is that in a few, in a previous earnings call, you had indicated that Sparx revenue will go from INR 400 crore to around INR 1,000 crore over the next 2-3 years, which I think was around FY 2026. Is that still something on your, in your plans? And if yes, then how do you plan to execute towards this goal? You know, though this year has been a little challenging, but our focus, o ur prioritization is particularly in Sparx category, and particularly on shoes. And, and we are getting this year, we have increased a lot of new articles in Sparx, and we are getting a good traction. Based on our experience, we are focusing on this and likely to grow, but not remain it, this year. It is a year of stabilization and improvement and learning, and accordingly, then we'll open up our retail outlets also, we will, utilize e-commerce also. But things will grow accordingly. Your other expenses have gone up 24% year-on-year. I'm assuming this is sales and marketing information. Is this to help the Sparx brand, or is this for everything, all the product categories? All brands. All brands are being advertised. Marketing expense, brands are in all, all brands. Now, in terms of your distribution channels, you have the MBO, you have the EBO, and you have the online channel. Do you think you should be looking at a differential pricing across these three channels, given that the customer that comes to your e-commerce channel is very different from a customer that comes to your MBO channel? So, if you see, we, instead of having different pricing, we have different brand offerings. So, Sparx is more relevant for EBOs than online because it's more than 1,000 MRP. And for the mass market or MBO outlet, which has 100,000 outlets across India, for them, we have Hawaii, and we have Flite and Bahamas brand. So we have segmented brand according to the price rather than giving the different discounts. Got it. Then one question on your MBO market, you know, particularly in the rural segment. Should we think of it as a consumer discretionary spend, or is it actually an important spend? Because if somebody's chappal is broken, then they need to replace it. And then the question is: Why are they not buying a Relaxo brand to replace the chappal and going for something else? See, what we have seen is that, because of inflation, see, their visits have been little reduced. So that's why what we are seeing is that, the payments are not coming from the distributor and from the retailers. So because of inflation and their discretionary spend going down, so they're a little selective in buying. That is the trend from last six months, but we are hoping that this will improve because of festive season coming and stabilization of prices are there, raw material has been stabilized, so there should be an uptake in the demand. But that is assuming that this is a consumer discretionary spend, and I'm wondering if in the rural markets, this is actually a consumer staple item. So if you have seen, we have grown in volume, so we have definitely gained the market share there also. But, that Sparx is a category where we are seeing that the spends have... Because it's more of discretionary, there the buying has been low. That is discretionary, but your Relaxo brand, Bahamas and Flite, particularly where, you know, you are selling to the rural, and many times in the calls you have mentioned that that is where you are seeing a slowdown, and you are hoping the festive season will see an uptick. I'm challenging that part and asking if actually a Relaxo chappal is a consumer staple item for that market. No, we agree with that, but overall market share also have been growing, yeah? We are growing in that space, but the industry also has to grow. There should be huge demand from the, in the, from the consumer side, so all categories will grow. We are not facing any challenge in open footwear. A ll right. And how are you tracking the success of your different programs and initiatives that you have currently put in place? What is the numbers? What is the metrics that you track on a regular basis? Can you repeat your question, please? How are you tracking the progress of the various initiatives that you have put in place right now to get back, you know, some of that revenue growth? What metrics do you follow very closely? You know, through DMS, we are able to know how many retail outlets are being served. So month after month, we see category-wise, region-wise, so that is the parameter we see. The more retailers our distributor is able to serve, so that is, that means our reach is increasing. We keep on monitoring the reach of our SOs also, direct reach we talk about, that they are visiting 60,000 outlets. So that has been monitored every month. How productive the calls are, what are the orders they are taking, how it is... How they helped by secondary, how we are fulfilling the demand. So it's a monthly process. All right, thank you so much, and good luck to you. Thank you. A reminder to our participants, please press star and one to ask a question. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference back to the management for the closing comments. Thank you, and over to you. Thank you all for joining the call. This is all from our side. Looking forward to joining you again. Thank you very much. Thank you very much. Ladies and gentlemen, on behalf of IDBI Capital Markets & Securities Ltd., that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.