Ladies and gentlemen, good day and welcome to Vaibhav Global Limited Q2 FY 2027 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Deepali from Arihant Capital Markets Limited. Thank you, and over to you, ma'am. Please proceed. Thank you. Good evening, everyone, and thank you for joining us on Vaibhav Global Limited earnings conference call for the Q2 and H1 FY 2027. We have with us Mr. Sunil Agrawal, managing director, Mr. Nitin Panwad, Group CFO, and Mr. Vivek Jain, Head of Investor Relations. We will begin the call with the opening remarks by Mr. Sunil Agrawal on the business operations, key initiatives, and broad outlook, followed by discussion on the financial performance by Mr. Nitin Panwad. After which the management will open the forum for the Q&A session. Before we get started, I would like to point out that some statements made or discussed on today's call may be forward-looking in nature and must be viewed in conjunction with the risks and uncertainties that we face. A detailed statement and explanation of this risk is included in the earnings presentation, which has been uploaded and shared with you all earlier. The company does not undertake to update its forward-looking statements publicly. I would now like to invite Mr. Sunil Agrawal to make his opening remarks. Over to you, sir. Thank you, Deepali. Good evening, everyone, and thank you for joining Vaibhav Global Limited's Q2 and H1 FY 2027 earnings conference call. I hope you have had the opportunity to review our results and investor presentation. Q2 was a quarter of transition and an important one. During the quarter, we completed 2 of the major operational projects. The migration of all our retail websites to Shopify Enterprise and the consolidation of our U.K. four different sites into single headquarters. Those are now behind us. They came at a near-term cost, which I will quantify, but they leave us with a simpler and more scalable business as we enter the seemingly important second half. What the new platform unlocks. I want to spend a moment explaining why we made the move to Shopify, as the cost of these transitions are visible in current quarter, while the benefits will build over coming quarters. This was a conscious and considered strategic decision, keeping our long-term commitments and business objectives in mind. First, we now operate one platform across all our six retail brands. A feature built once can be deployed in every market, so we can move faster and at lower cost. Second, we have a unified view of our customers across TV and digital, built on first-party data, which supports better personalization, higher repeat purchase, and greater customer lifetime value. Third, the platform integrates natively with modern marketing technology and AI tools, which are scaling our advertising creatives, product descriptions, and SEO content. Fourth, we expect a lower long-term technology cost than our earlier legacy platform. Finally, we can launch new brands, categories, and geographies far more quickly. Let me be specific about that cost. When we spoke in August, we flagged some initial disruption as we moved off our legacy platform. The stabilization took longer than we had planned and affected traffic and conversions across all the four business units where we made this transition. Based on our internal assessment, the revenue impact in the quarter was approximately $2.8 million or around 2.8 percentage point of growth. This is also why digital's share of B2C revenue moved down by around three percentage points compared with Q1. At the same time, in the U.K., we consolidated four warehouses and two studios into a single site. This temporarily took some inventory offline and had a modest impact on sales. What gives me confidence is how the underlying model performed in the tougher consumer environment. Retail volumes grew approximately 2%, driven by strong demand for our lower price point items. Customers are clearly seeking value, and because we design, source, and manufacture much of what we sell, we can meet the demand and still expand gross margin, which rose by close to 197 basis points this quarter. Revenue for the quarter grew 7% to INR 938.4 crore, with reported growth supported by weaker rupee. Gross margin expanded by approximately 197 basis points to 65.5%. EBITDA was INR 76.2 crore, down 13.6%, with a margin of 8.1% compared to 10% in Q2 last year. Our EBITDA could have been 2% higher, whereas the same was not accounted due to reduction of 100 basis point related to Shopify and U.K. warehouse migration, and 30 basis point related to lower forex gain than last year, and remaining due to higher volume growth resulting in higher shipping costs. For the first half, revenue grew 9.7% to INR 1,855.4 crore. EBITDA rose 9.5% to INR 178.2 crore. The decline in quarterly profitability is mainly related to operating leverage in the U.S. and U.K. due to transition. We see these pressures as transitional. Sustainability and community impact remain embedded in our business model. VGL's ICRA combined ESG rating further improved to 75 from 72 two years ago, rated strong. Through our Your Purchase Feeds program, more than 190 million meals have been distributed to date, and we now serve approximately 56,000 meals every school day, up from 55,000 a year ago. We remain committed to our long-term ambition of one million meals per school day by FY 2040. The board has declared a second interim dividend of INR 1.5 per equity share, following the first interim dividend of INR 1.5 per share in Q1 FY 2027. Our capital allocation approach continues to balance investment in growth, shareholder returns, and balance sheet strength. Outlook. On guidance, we want to be transparent and prudent. We are taking into account the migration impact in Q2, the U.K. consolidation, a weaker U.K. consumer, and the upcoming U.S. midterm election. We now expect revenue growth of 7%-9% in FY 2027, compared with our earlier guidance of 9%-11%. While the ongoing platform transition has impacted near-term growth, we believe the investments and structural improvements underway will strengthen our digital business and create a more scalable foundation for sustainable growth. Looking ahead, we remain confident in our ability to return to 9%-11% revenue growth in FY 2028, supported by our new digital-first platforms, enhanced marketing capabilities, and greater operational efficiency. The transition to Shopify is a strategic step towards achieving this objective, positioning us to accelerate digital growth and drive sustainable, profitable growth over the medium term. We expect FY 2027 EBITDA margin to be broadly in line with FY 2026, compared with our earlier expectation of 50 basis points- 100 basis point of expansion. We believe this is the right call, and it does not change our medium-term view. A unified digital platform, proprietary brands, lab-grown diamonds, and our vertically integrated operating model positions us for stronger customer engagement, better quality of growth, and improved profitability. With that, I will hand over to Nitin to take you through financial performance in more detail. Over to you, Nitin. Thank you, Sunil, and good afternoon, everyone. I will take you through the financial and operating performance for the second quarter and first half of FY 2027. Revenue from operation grew 7% year-over-year to INR 938 crore. Retail revenue grew 5.3% to INR 867.5 crore, and B2B revenue grew 32% to INR 70.9 crore. Currency was significant tailwind. The rupee weakened approximately 9% against the U.S. dollar, resulting overall 1% degrowth in terms of constant currency basis. In U.S., revenue grew 4.3% to INR 500 crore in rupee terms and declined 4.1% in constant currency. The shift towards value is clearest here. Unit rose 4.8%, while the average selling price was 8.4% lower as consumer moved to lower price point. Digital share was 44% of revenue, and EBITDA margin was 5.7%, reflecting sales deleverage of our investment in connected TV, OTT, ads-based advertising to extend our reach beyond linear TV. Our vertical integrated supply chain continues to help us mitigate the impact of tariff. For the first half, U.S. EBITDA grew 24.9% to INR 86.6 crore, with margin up 102 basis points to 8.4%. The U.K. had a most challenging quarter. Revenue grew 2.3% to INR 257.2 crore in rupee terms, but declined 7% in constant currency. Three factors were at play in the platform migration. Temporary product unavailability during the warehouse consolidation and a noticeably weaker consumer sentiment. U.K. inflation rose to 3.5% in September, driven by a higher fuel cost. Non-food retail sales were almost flat, and in October, consumer confidence recorded its sharpest monthly fall since 2020. As households held back ahead of autumn budget, discretionary category such as our feel dispersed. Over time, the India U.K. FTA offer further upside through lower duties, sourcing flexibility and margin improvement. Europe, excluding U.K., delivered its strongest underlying growth. Revenue rose 18.3% to INR110 crore and 8% in constant currency terms, led by 11.5% in units growth. Shop LC Germany grew 5.8% and Mindful Souls grew 12.7% year-over-year. The first half loss narrowed to INR0.7 crore from INR6.6 crore of a year back, and the Germany remain on track to continue positively to the group profitability in FY 2027. Our B2B business delivered another strong quarter with revenue up 32.4% to INR70.9 crore. Digital revenue was INR367 crore, up by 5.6% year-over-year into rupees terms and declined 4.2% in constant currency because of the Shopify migration. With the transition complete, we expect digital to return to its earlier growth trajectory, and we continue to work towards our target of digital share at 50% of B2C revenue by Q4 FY 2027. Lifestyle products contributed approximately 40% of B2C revenue, and we continue to work towards a medium-term objective of 50% share. Budget Pay accounted approximately 35% of retail revenue. It remains an important affordability tool, supporting conversion and accessibility, particularly for higher value purchases. In-house brands contributed 57% of B2C revenue and a lab-grown diamond share rose to 12% of total retail revenue from about 10% a year back. Strengthening our differentiation and pricing tool. Under our 4R framework, we reach more than 127 million households with approximately 687,000 unique customers on trailing 12-month basis and 360,000 new customers acquired over trailing 12 months. 38% retention and an average of 23 pieces per customer buying per year. The group's gross margin improved by approximately 197 basis points to 65.5%, from 63.5% in Q2 FY 2026, supported by vertical integration, in-house brands and growing share of lab-grown diamonds. The first half gross margin was 65.5% compared to 63.6% in H1 FY 2026. EBITDA was INR76.1 crore with a margin of 8.1%, lower by 193 basis points year-over-year despite the gross margin expansion. The movement reflect the retail sales deleverage during the platform transition. The first half revenue increased 9.7% to INR1,855 crore. EBITDA increased 9.5% to INR178 crore, with a margin of 9.6%. Profit after tax increased 10.1% to INR98.1 crore, with a growth of 15% year-over-year. Moving to our balance sheet. As of September 30th, 2026, our net cash stood at INR186 crore compared to INR279 crore of March 2026. This reduction is mainly related to seasonal inventory buildup and CapEx related to U.K. warehouse migration of INR36 crore. The ROCE stood at 22% and ROE at 18%. As Sunil mentioned, the board has declared the second interim dividend of INR1.5 per equity share. Our capital allocation remained disciplined with priority given to digital growth, proprietary brands, lab-grown diamond, Germany's progress towards profitability and profit-led operating performance, operating improvement. To conclude, Q2 was a quarter which we absorbed the cost of necessary changes. We complete our platform migration and U.K. consolidation, expanded gross margin by 197 basis point, grew volume in difficult consumer environment, delivered strong B2B growth and continued to strong constant currency growth in Europe. With the heavy lifting done, our focus through the second half is seamless customer experience in digital platform, customer acquisition, increased repeat and efficiency improvement in U.K. operations. Thank you. We can now open the floor for questions. Thank you. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Kaushik Kanjwal from HIA Association. Please go ahead. Thanks for the opportunity. Firstly, I just wanted to ask, Sunil, what are the top priorities for us in coming festive season? Also, can you also throw some light on FY 2028, how we can leverage, maybe AI and get more revenue through that? Please, on these two, can you just share? Yeah, thank you for your question, Kaushik. So first question is, what are the priorities in the festive season? So for us, the festive season is the Christmas period right ahead of us, and even the quarter four is winter months, so people stay indoors and buy product from us. So the coming six months are better. H2 is usually quite better than H1 for us. And the priority for us is to ensure that the investment we made Deepali, can you hear me? Sir, we can hear you clearly. Hello. Yes. Mr. Kaushik, can we- Kaushik Ji, can you- Hello. Can you hear me, Mr. Kaushik? Mr. Kaushik, can you hear me? Yeah. Yeah. So- Highest priority for us is to leverage the new platform that we launched in Shopify and scale our digital presence across all the geographies we are in. The second thing is, make the product appropriate for the current consumer sentiment. We are very agile in getting what consumer needs and bring that product back to them. Your next question was next year. What are our leverages to get next year revenue and performance as per our guidance? We believe that the digital will be the main growth driver for us. For television, there is some attrition in the television homes, and that is the main reason we made this investment into digital to address the consumer through the platform where they are more residing. They are residing on Facebook, on Instagram, on other social media, and we can address them and reach them with Shopify's help to those mediums and acquire them cost effectively. Scale the digital business and constantly bring innovative products to the customer based on what their current needs are. Okay, sure. One more, Sunil Ji, I wanted to be very blunt and honest with you. Firstly, as being a shareholder, what is in store for Vaibhav Global? Because if you see the highs, it has made high three years back, and the stock is down 80%. Our performance is also barely growth rates are 10%, which is okay, which is understandable. There are some geopolitics, et cetera. But then I see couple of quarters back, shareholders have been asking you about the buyback. Still, we are distributing dividends. I mean, INR 7 we are distributing, and the stock is falling like 50 basis points, 100 basis points each and every year. There is no point of that. As a listed company, I want also how the board members provide value, because board members are there to create a shareholder value. When we talk about buybacks, we said that we wanted to first have a cash, but then we keep distributing as a dividend. I see there is a gap of creating a shareholder value. I am really being honest. Please, I want you to look into this matter. If we are not finding good avenues of growth, then we should do a buyback so that we can reduce number of equity shares. That might uplift the shareholders who are there with you for the last many years. That is very disheartening to see that we are distributing cash and not doing a buyback. Any thoughts on that, sir? Mr. Kaushik, thank you for the feedback. Your point taken. We discussed this feedback with the board as well. Board has decided to continue our tradition of the dividend-paying company. The dividend is relatively modest, so it is not a very large dividend. We want to build up some cash for future acquisitions or future strategic moves. After we have built the cash, we will definitely deploy any additional cash for buyback. Point well taken. Thank you. Still it is INR 100 crore of dividend we are distributing each and every year, which I think many companies in the list that are doing buybacks. So that is where they are creating a value. I do not think so that dividend-paying company is a tagline that we want to have. Rather than creating a shareholder value while doing a right buyback should be the thought of the board members also. Please take a look on this, sir. Thank you. All the best. I will be looking forward for future quarters also. Thank you. Thank you. Thank you, sir. The next question is from Chidananda Mohanty from Sameeksha Capital. Please go ahead. So hello, am I audible? Yes, sir. Yeah. First question from my end is that if the management can quantify the revenue lost during the quarter due to Shopify migration. Revenue lost. Yeah. As I stated in my comments, it was $2.8 million or approximately 2.8% of growth. Okay. The next question is: what is the reason behind the INR 63 crore of CapEx that we are doing? Let me take that question, sir. The main part of this CapEx related to the U.K. warehouse migration. In commentary, it was mentioned that four different premises and two studios migrated in a single premises to improve the efficiencies and order clubbing, which will result a benefit in coming years. That was necessary change and easy to operate in a single premises, so that we have invested around INR 36 crore over there. The other investment is related to normal tech improvement and Shopify migration. Okay, so I have one last question. In this quarter, the working capital has shown some significant rise. Any specific reason behind it? Yeah. The major reason is the inventory buildup. We have roughly around INR 100 crore inventory buildup compared to the last year's same time. Mainly related to the readiness of festive season and the uncertain environment across the world. So some readiness that we have in terms of inventory for upcoming festive season time. Normally we see that inventory we build in that time, and we expecting by Q3 and Q4 it will moderate that, and the inventory number will inline with our previous number of days inventory, which is roughly around 200 days- 220 days. Okay, understood. Thank you for your time. Thank you, sir. The next question is from Himanshu Padhey from [inaudible]. Please go ahead. Yeah, hi. My first question was, a few quarters back, we stated that precious metal, gold, silver and all those, platinum, were nearly 70% of the metal what we consume. Okay? In last two, three quarters, we have seen the price of precious metals has started coming off. What would be our strategy from here on? Will we be able to maintain some amount of higher prices, what we used to charge earlier because of metal? Or do you think you will need to transfer to remain competitive in the market and drive sales growth, or some thoughts on that will be helpful. That was also one of the reasons we stated that some consumer sentiment being difficult and hence the situation was, or the lower growth rate was there last year. Some thoughts on that will be helpful. Yeah, thank you for your question, Himanshu Ji. From precious metal point of view, we are pretty agile in what customer wants at a certain given time. In spite of precious metal going up, platinum, gold, silver going up substantially over last couple of years, we have been able to expand our gross margin year-over-year from 62% to around 64%, 65% currently. Our model allows that agility for us to address the current environments. I do not see any impact of metal prices on our margins going forward. In fact, we can continue to strive to maintain around 64%, 65% going forward. But with fall in prices, won't you expect the margins to improve further on or do you think you will need to transfer the pricing to the customer? You never know where the metals will go. It's so difficult. If the metal prices further fall down, we may need to stay competitive in the market and we'll see the opportunity. If we get the opportunity to expand the margin further, we will. But we will respond to the market in real-time while trying to keep our growth trajectory in line of our guidance. I have a question, general on strategy and your market sizing and everything. What we understand through various transcripts and meetings, we have a great design team, good understanding of fashion trends. We are continuously launching large number of SKUs, flexible and agile supply chain, and good control of costs. Generally, our gross margins are better than our competitors. We have been in U.S. for nearly 20 years now. But still our market share is very low. The opportunity size, we are 2% type of thing in that market. What should be the focus areas? Do we have a pull for the product in the market, or you think we have not reached that Stage 2 of where there is a pull for the product in the market, and hence getting newer customer will continue to remain or will be a challenge? Some thoughts on that will be helpful. It is a fair question. The U.S. market is quite large, but it is highly competitive, actually the most competitive market in the world. So in that market, to be able to gain market share consistently over 20 years while expanding our gross margin, I think it is quite an achievement. Now, when we look at the number of 2%- 3% or 4% kind of market share, it looks easy for us to expand that market share going forward. We are constantly evolving our business to take the benefit of the opportunity in front of us. The customer acquisition cost on the certain channels are to be taken into account. We want to acquire a customer that can become profitable for us within six months. We do not want to over-invest into acquiring a new customer so that we get hit by the profitability within the quarter or within next two quarters. So keeping all things in mind, the gross margin, the ROIC, the EBITDA, we invest into acquiring customers, but our market growth has been steady over last 20 years. And one more thing. Our products have both fashion and discretionary element, and then each cohort with which we deal with. How large or what percentage of market share can we aspire for looking at all these things over next five, 10- 15 years in that particular market, which is the largest market? So how do you think about your aspiration for the business and market share in that particular market? And what is viable number also? Yeah. So age cohort we have is 40-year+, largely Caucasian females. We do have certain number of other ethnicity as well as our customer, but largely it is white Caucasian females. And that demographic is increasing in size in U.S., U.K., and Germany. The people are aging, and that demographic also has more discretionary income and time on their hand. So we want to stay focused on that demographic because it is growing and becoming more and more affluent. So from the market size point of view, that is increasing and is attractive for us. Now, we believe that the customer transition is happening from television over to digital media. Digital could be OTT and social media or other digital platform that we reach through search medium like Bing, Google, or social media like Meta, Instagram, TikTok or AppLovin. AppLovin is the mobile app platforms, mobile gaming platforms. We are reaching the customer from those platforms in a cost-effective way. Transitioning is happening, and we are navigating that transitioning, and that's a major reason we made this investment in Shopify, because we want to be digital-first company, not a legacy TV company going forward. We made this investment, and we're confident these investments will come in very useful in coming quarters and years. Just to give a context, over last decades in business, we made multiple transitions from pure gemstone to jewelry B2B, to brick-and-mortar retail to TV retail, and multiple product category from jewelry to multiple product category. Now we are making this transition from TV legacy to digital company. The transition is happening while we are giving the gross margin growth, strong ROIC north of 20%, and revenue and margin growth. We are continuing to do and we are confident of being able to deliver as we have given the guidance to. One last thing from my side. This lab-grown diamond has been quite a success for us, and it is now nearly 13%-14% of revenue. How big is the opportunity for us on LGD? Is it a sustainable fashion trend, or how are you thinking about it? Eventually, can it be a 20% type of 25% of business? Has it eaten into other precious stones, or it is a new segment itself which is sustainably growing? Some thoughts on that will be helpful. Yeah. Good question. It is around 12% in Q2. It was 12% of our revenue was LGD. As I mentioned earlier, we are highly agile, and whatever the consumer is pulling or has a demand for, we are addressing that. We'll continue to drive this as long as it continues. What ratio it will reach, I do not know. Because making prediction for the trend is difficult thing, but we have multiple product categories, colored gemstone, natural diamonds, plain metal jewelries, lifestyle products. We constantly measure of the products demand by way of gross contribution per minute of the air time or per square inch of screen space on our digital platforms. Then our measurement practice is vast and we look at the spend, either on ad spend. Those measurements dictate what product categories will be shown on air or on screen. Now, to your second question, what was the category that this displaced? This lab-grown displaced the natural diamond to a large extent. Now, will the natural come back? We are testing that constantly, and we are seeing some indication of natural coming back. We recently bought some closeout deal in natural loose diamond and converted them to jewelry, and that received good response. We will continue to test and explore. But I will be unable to give guidance on where the lab-grown can go. Okay. Thank you. I will join back for further query. Yeah. Thank you, sir. Thank you very much. Ladies and gentlemen, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from Mr. Gopinath Reddy from PNR Investments. Please go ahead, sir. Sir, when it comes to transition, migration into this new platform, Shopify, is it smoothly done or do we have any hiccups anymore? How is it, sir? Yeah, it is largely done. The optimization, since we got into a new platform with the ecosystem of hundreds and thousands of apps to reach out, engage customer better, to reach out to customer better. We continue to explore more and more apps coming into the platform that will help our business. But from the negative point of view, the customer experience point of view, that is behind us. Now, to utilize the new apps is ahead of us. Okay. Sir, when it comes to change, migrate, I mean, we are shifting, given the environment, we are shifting from TV more towards web. But when it comes to TV, we had a definite competitive advantage. Is there a diluting of that competitive advantage that we had when it comes to shifting towards web? Because we have to shift, that is agreed, but are we able to retain the competitive advantage that we had in TV in the web business? Yeah, good question, Mr. Gopinath. The TV advantage for us was the vertical business model and the storytelling ability. The storytelling ability means to be able to show the product from mine to manufacturing, the designing, manufacturing, and bringing that to consumer. That advantage stays with us. Whether we are broadcasting that signal through a traditional cable system or through OTT platform or through social media live streaming or even going on the website PVP, we can tell that story to them. And having the leverage of being vertical model right from sourcing the gemstones or sourcing the fabric, having that converted into dresses through our partners or manufacturing the jewelry in our own factory, that advantage will be there whatever the platform. As I mentioned earlier, we have migrated over the course of our career. We have made multiple transitions in the business and come out stronger with every transition. Even this transition, to me, is exciting because TV, we couldn't really gain new and new customer because we are making one wide broadcast to all audience. In digital, we can tailor our message individually to the customer, especially with the help of AI tools. We can message individually and address each customer's needs through what they need. And the TAM is also very large to reach out to the customers. Advantage of having a new product coming in, being vertical at low cost, and reaching the customer at individual level, I'm quite excited with the opportunity we have in the current environment. Okay. Sir, lastly, these TV customers who are sticking to us from a long time, are those customers are also migrating to web, or the web customers are different from those guys who are our legacy customers from a long time? Yeah, good question. Some of them we are able to migrate from cable over to web. Some of them we are able to get. For example, people who were spending well with us, we send them free Roku devices or free Fire TV Stick for them to log in and watch us. Some of them do, but many of them don't. But the new demographics, the same demographic, but on the new platform that we are able to reach through social media, through search, through gaming apps, through AppLovin platforms, through OTT medium. Those are very large TAM. Our opportunity is to get them in a cost-effective way so that the profitability of the customer acquisition can be covered within six months. In our long-term view, that we want to be able to cover the cost within a quarter, within three months. We are not there yet, but as we are utilizing new tools of the platform, we should be able to get there in near future. Exactly, I do not know the date, but our aim is to get to within a quarter, make the customer profitable. Okay. So to some extent- Lastly, are we- Some of them we reach, some of them, but large part is a new customer from the platforms. Okay, understood, sir. Lastly, given the web business, are we looking at India as an opportune place to try or not, sir? Yes, sir. Down the road. First, we want to get Germany to robust profitability, then before we get into new country. But definitely India is on the cards. Thank you, sir. That is it from my side. Thank you. Thank you, sir. The next question is from Mr. Dilip Kumar Sahu, retail investor. Please go ahead. Am I audible? Yes, sir. Hi, Sunil. The question is regarding the geography. Why is the interruption or platform change is constant, but it looks like U.K. has behaved very differently than U.S. and Germany. Germany seems to be least affected. Why is this difference in performance in these three, even though the interruption is common? Yeah. So U.K. had two disruptions. One is the Shopify migration, other is the warehouse consolidation. We had four warehouses, and then we moved into one warehouse in last quarter, and that transition is still continuing. It is not fully there. We moved everything to one warehouse now. There is a very large space. So two studio in the same building and the four warehouse consolidated into one. So that is second and third thing is the U.K. economy has had more headwinds than other economies, because U.S. economy had a tremendous AI investment. So the GDP growth in U.S. is higher than U.K. or Germany. And in U.K., the cost of living crisis has been more than other geographies. So U.K. is facing three headwinds in the last quarter, especially. So that is why the U.K. seems challenged. Germany is relatively new business for us, and the customer base is larger than U.K. We are capturing those demand there as well as the customer base. Okay. But in U.K., we see Ideal World is even versus the core business specifically declining. Right? Yeah. As I mentioned, Ideal World also was part of transition of the Shopify as well as the headquarter transition. So that is the reason. And Ideal World also faces the U.K. economic environment headwinds as QVC does. Okay, sure. The second question to you is regarding the whole [inaudible], the growth coming back through digital, right? Since less than 50% of our business is digital, for us to grow at 9%, 10% or even 7%, digital has to grow at 17%, 18%, because at least in U.K. and U.S., the core TV business is de-growing at 1% or -2% or something like that. So what gives us the confidence that we will, because in a constant currency term, digital for last two, three years hasn't really touched 20% ever. What are the things you are doing in digital in U.K. and U.S. to move the growth to 20%+, which is minimum required for us to reach 10% constant currency growth? Yeah, fair comment, Mr. Dilip. Our digital platforms gives us ability to, first of all, test new products very quickly. With the legacy platform, we didn't have that so much of ability to be agile. Constantly testing new products and then scaling the successful products to personalized AI creatives and reaching out to the audience in a cost-effective way. I have confidence that digital growth will be substantial in coming quarters in all six brands that we have right now. We have two brands in U.K., we have one brand in Germany, and two brands in U.S., and one, Rachel Galley, in U.K. as well. So three brands in U.K., two brands in Europe, one brand in U.S. All six brands, we expect the new platform to help us accelerate. We made the numbers in detail, and that's the reason we have confidence to be able to achieve 9%-11% growth in next financial year. Yeah. You have a benchmark in industry, like another competitor our size is growing at 20%, and this is a possibility, right? I don't think we will be unique in growing at a much faster because the market is not growing at that rate, right? Market is 2%, 3%. Yeah. When you look at a company like Revolve, R-E-V-O-L-V, revolve.com, they are a lifestyle brand in U.S. They are a publicly listed company. They are growing double digit. They are already $1.2 billion into digital only. They are growing double digit. There are multiple unlisted companies that I am closely friends with, and they are part of masterminds. We look at those companies that are growing rapidly in the digital space. D2C space is growing, and as you can see the numbers from Amazon also, at their size, they are able to grow double digit on e-com space. Sure. All this peer review gives me confidence that we should be able to get there. Sure. One last question is- Thank you, sir. Mr. Dilip Kumar Sahu, please come again in the queue. We have participants waiting. Sure. Okay. Ladies and gentlemen, please limit your questions to two per participant. The next question is from Mr. Lakshminarayan from Tunga Investments. Please go ahead. Thank you. Two questions. We had given a guidance, and then we had to change the guidance, which means that a lot of things are not in our control. My question is that, why to even give a guidance? Because it is stressful for you, it is stressful for the investors also. That is my first question. Second is that, how does U.S. midterm would actually impact your sales? Because that's the point you made when you said that you want to recalibrate your guidance and one of the factors is the U.S. midterm. Overall, just want to understand, as a company, as management, what is in your control and what is outside your control, in terms of continuously excelling in what you do, which is expanding your products, expanding your geography, et cetera. Because companies exist in an environment, I just want to understand how you think about it, what is in your control and what is outside your control, and this would actually feed back into the guidance part. Just want to get your perspective on these things. Thank you. Yeah. Thank you, Mr. Lakshminarayan. First of all, your point about giving the guidance versus not giving the guidance. I believe that shareholders are very important stakeholders, and they should have a visibility in our thinking at any given point of time. We share with what we see at a certain given point of time, and we openly share that without any varnishing, without any padding. When we had the visibility of, say, 9%-11%, when we had till last quarter, we gave that guidance. When we feel that even though currently we are 9%, but we are still giving a guidance of 7%-9% because we believe that the exchange benefits that we had earlier two quarters, we may not have that much in coming quarters. Also the economic condition as they stand in U.K., U.S., Germany, we have to take that into confidence. Your second question was about the U.S. midterm elections. Till last quarter, we were not seeing them as possibility of contentiousness there. At this time, we see some possibility of contentiousness there, which might take eyeballs away from our programming. Therefore, we included that as one of the factors influencing our guidance. It is not a major factor. Major factor has been the Shopify transition and to a lower extent, the warehouse consolidation in U.K. Also to some extent, the economic environment in U.K. especially, that is contributing to our guidance. Whenever we see, I believe that we should be sharing that, and I hope that is okay for majority of the shareholders for us to share our viewpoint at any given point of time, honestly and openly. Yeah. I think, I agree. How you think about the business, what is in your control and what is outside your control, and how you think the business is getting more predictable, or is it actually getting less predictable for the management as you draw up your budget for your strategy upfront? Yeah. Sorry, you had already asked that question and I forgot to address that. Yeah, it's a good question. We believe that, creating a platform for supply chain and to reach out the customer is in our control. Giving the customer experience that they deserve or better than our competitor is in our control. Bringing the product, what they need at this point of time is in our control. Seeing the trend, what the customer might get interested in is in our control. What is not in our control can be the economic environment or the political environment or, say, the metal prices or the inflationary environment. That is not in our control. We take both into account when giving a guidance. What we feel confident to, what our growth drivers will be, and what we see headwind or tailwind from the outside environment. The tailwind could have been the Forex gain that we had; that was a tailwind. The headwind could be political environment or the economic environment in Western world. So that is a headwind. We take that into account. I don't know if I addressed your question. Yes, sir. Thank you so much. Thank you, sir. Yeah. The next question is from Mr. Yugash Mejia from ithought Financial Consulting. Please go ahead. Yeah, thank you for the opportunity, sir. Sir, I wanted to understand, when we look at this INR 5,000-INR 5,500 crore target by FY 2030, how would the geographic mix look like when we reach that number? Yeah. For that number, we have not taken into account a new geography, not at this time. Possibly, maybe an acquisition opportunity to a small extent. We have taken some potential e-commerce acquisition opportunity. Once we have all the six brands for us very robustly growing into e-commerce space. Largely organic, but some potentially inorganic as well. We have not taken India launch into this target yet. Okay. But majority of the contribution would still be from U.S. and U.K. Is that the correct understanding? U.S., U.K., Germany, all the six brands that we have currently. They are the brand that will give us this growth. Potentially maybe one acquisition into digital space. We do not know the geography of that potential acquisition. That also is part of the thought process. Understood. Sir, what would be the effective tax rate going forward on a sustainable basis? I have seen for a few quarters we have got some deferred tax benefits. On a sustainable basis, yeah. Sustainable basis, let me take that question. We have a significant amount of losses in Germany, which will be set off in coming period, which will get the benefit and also the FTC credit amendment. Yeah, so sustainable basis, it is 18%-20% range in midterm, like in three years. Okay. Sir, when should we expect these losses to get absorbed? Will it be over in FY 2028, or will it extend beyond that as well? It extends beyond that. Understood. Thank you so much. Thank you, sir. The next question is from Mr. Madhusudan Reddy as an individual investor. Please go ahead. Good evening, sir. Thanks for the opportunity. Sir, again, I am coming to the point of your plans for expansion to other geographies, particularly to India, sir. Now that U.S. and Europe are facing economic and political headwinds, and they are projected to continue to face the same as the time goes on. I think it is time for you to look East, look India, bite the bullet. That is my thinking, sir. Your views on this, sir. Mr. Madhusudan, thank you for your observation and your comment. Definitely India is in our view, and we may launch in India in coming years. But first, as I mentioned earlier, our goal is to bring Germany to robust profitability, and then we want to take up new country. Because anywhere you go new, you will have initial losses, and we want our other brands, existing six brands, to continue to have robust growth so they can support new entry for us. Okay, sir. Thank you, sir. I'll look at it. Thank you, sir. The next question is from Mr. Himanshu Padhey from [inaudible]. Please go ahead. Mr. Himanshu, please go ahead. Hello, am I audible? Hello. Yes, sir, you're audible. Yes, you are. Hello? Hello. Yes, Mr. Himanshu, you are audible. Please go ahead. My one question was, what drives the retention and repeat purchase? Can you give what percentage of our clients would be more than 10 years old with us, who have been among the, let us say, the top average clients for more than 10 years? Good. Maybe Nitin can pull out the number. I do not have the number. It will be very few who are clients for more than 10 years. There are certain clients who have been buying multiple pieces every month, every quarter, and have been buying from us for a long time. Some customers have bought more than $1 million from us and continue to buy. The percentage of the clients will be very small, but the value by such clients will be quite valuable for us. Retention and repeat. Your question was how do we drive retention and repeat. Is that correct? Yeah. What drives retention? We have a lot of mechanisms for this. First of all, the retention emails, texts, social media reach out, the retention reach out, or through Google and Criteo. We do reach out to these customers and try to retain them. Then we have those mechanisms in place for additional discount or free credit to their account or a free gift to really valuable customers. That drives the retention. For repeat, we constantly bring new products to our audience, whether online or on TV. The new product drives the repeat. We, on an average, we launch 100 new products every day. The customer sees it as a treasure hunt and come to our website again and again to see what new came and then buy again, or see or watch us on after hours on TV and constantly buy products from us. We recently had a customer day in Austin, where a lot of customers came, and I was able to talk to some of them. Many of them said they got 20 trays full of jewelry, some said five trays full of jewelry. They bought a lot of pieces with them to show off to their fellow participants what they like, what they buy. It becomes kind of a hobby, a passion for them to collect the pieces. We have different internal brands. Some get attracted to a certain brand, others get affinity with different brands, and they collect those branded pieces. All the new items that we launch in the brands, they pick up those. Repeat comes with a lot of new product launch. The other aspect of repeat is exceptional customer service. We have a concept called unreasonable hospitality at VGL Group, and we measure our customer service agents and businesses, what their unreasonable hospitality moments were. How many moments they had during the week, during the month, during the quarter, and how they deal with the customer. That results in high net promoter score. Each business is valued or assessed based on what their net promoter score is. That ensures customer happiness and customer retention and repeat. There are combination of initiatives that helps retention and repeat on both sides. Okay. Nitin, if you can address the question about the older customers. Do you have the data? We will share with you. Right now, we don't have, but we will share with you separately. Would it be the case that top 20% would be 80% of the revenue for us? I mean, just how would the revenue concentration be? Because some of the clients are very large when you are saying $1 million+ type of clients. Just some- Yeah thoughts on that. Yeah. In traditional retail, 20:80, and we have seen also similar ratio. A lot of TV customer is still very big customer with us, so very close to that ratio, 20:80, we also have. Okay. One last thing. The in-house brands currently contribute around 50% of the sales. At any point of time, would we like to take it to third party for distribution? Because we used to have a B2B, which was a larger business, which was an impressive business for us. Do the current in-house brands have that pull that they can support a distribution network also, or we won't like to go through that path? If not, then what would be the reason for that? Yeah, very good question and good observation. Now, we want to take that, the in-house brands to third-party distribution. But for that, the pre-requirement is the customer pull for the brand. So those retailers, for example, Target or Walmart or Macy's, they want to see where we are with the social search for the brand, TikTok search or Google search, and we are not there yet with our in-house brands. At certain point of time when we believe that we are there, we will definitely approach for the distribution. That serves two purposes. One is that increases visibility for our brand, and then we'll get the customer. When the customer search for the brand, then our offering will pop up on the search platforms, either AI search or Google search. The second is the extra revenue and gross margin availability. When we own the brand, the gross margin on B2B will be quite substantially more than OEM gross margin that we currently get in our B2B business currently. Okay. Thank you from my side. Thank you, sir. Thank you so much. Ladies and gentlemen, due to time constraint, we would not be able to take any further participants. I now hand the conference over to Sunil, sir, for closing comment. Over to you, sir. Thank you very much, Atheya. Thank you, everyone, for your participation and for engaging discussion and insightful questions. Should you have any further question, please feel free to reach out to Mr. Vivek Jain at Vaibhav Global or Mr. Sumedh from EY Investor Relation team, and we will be happy to assist you. As we approach this festive season, we wish you and your family happiness, good health, and prosperity. Thank you once again for your continued interest and the support of Vaibhav Global. We look forward to connecting with you again, and have a wonderful day. Thank you. On behalf of Arihant Capital and Vaibhav Global Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.