Dollar Industries Ltd
NSE:DOLLAR
| US |
|
Fubotv Inc
NYSE:FUBO
|
Media
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
C
|
C3.ai Inc
NYSE:AI
|
Technology
|
| US |
|
Uber Technologies Inc
NYSE:UBER
|
Road & Rail
|
| CN |
|
NIO Inc
NYSE:NIO
|
Automobiles
|
| US |
|
Fluor Corp
NYSE:FLR
|
Construction
|
| US |
|
Jacobs Engineering Group Inc
NYSE:J
|
Professional Services
|
| US |
|
TopBuild Corp
NYSE:BLD
|
Consumer products
|
| US |
|
Abbott Laboratories
NYSE:ABT
|
Health Care
|
| US |
|
Chevron Corp
NYSE:CVX
|
Energy
|
| US |
|
Occidental Petroleum Corp
NYSE:OXY
|
Energy
|
| US |
|
Matrix Service Co
NASDAQ:MTRX
|
Construction
|
| US |
|
Automatic Data Processing Inc
NASDAQ:ADP
|
Technology
|
| US |
|
Qualcomm Inc
NASDAQ:QCOM
|
Semiconductors
|
| US |
|
Ambarella Inc
NASDAQ:AMBA
|
Semiconductors
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
422.7
639.85
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Fubotv Inc
NYSE:FUBO
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
C
|
C3.ai Inc
NYSE:AI
|
US |
|
|
Uber Technologies Inc
NYSE:UBER
|
US |
|
|
NIO Inc
NYSE:NIO
|
CN |
|
|
Fluor Corp
NYSE:FLR
|
US |
|
|
Jacobs Engineering Group Inc
NYSE:J
|
US |
|
|
TopBuild Corp
NYSE:BLD
|
US |
|
|
Abbott Laboratories
NYSE:ABT
|
US |
|
|
Chevron Corp
NYSE:CVX
|
US |
|
|
Occidental Petroleum Corp
NYSE:OXY
|
US |
|
|
Matrix Service Co
NASDAQ:MTRX
|
US |
|
|
Automatic Data Processing Inc
NASDAQ:ADP
|
US |
|
|
Qualcomm Inc
NASDAQ:QCOM
|
US |
|
|
Ambarella Inc
NASDAQ:AMBA
|
US |
This alert will be permanently deleted.
Dollar Industries Ltd
Earnings Call Analysis
Summary
Q2-2024
In Q2 FY '24, the company saw top and bottom line growth with income rising 21% year-on-year to INR 413 crores and net profit surging 44% to INR 25 crores. Volume expanded by 40%, and gross margin improved by 189 basis points to 33%. Inventory management improved, leading to reduced tax conversion days. Brand ambassador impact and product launches stimulated a segment jump of 39% in revenue. Project Lakshya progressed, contributing 25% to domestic field growth and aiming for 65%-70% distributor participation by FY '25. E-commerce is targeted to reach 8% of sales by FY '26.
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to the Dollar Industries Q2 FY '24 Earnings Conference Call hosted by ICICI Securities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Varun Singh from ICICI Securities. Thank you, and over to you, sir.
Thank you, Sinah. Good evening, everyone. On behalf of ICT Securities. It's our pleasure to hold the management of Dollar Industries to disperse the second quarter earnings call. There will be an investor presentation from the management followed by Q&A. From the management side, we have Mr. Ankit Gupta, President Marketing; and Mr. Ajay Patodia, Chief Financial Officer. So request management to please take over the calls from here.
Thank you, Varun. Good afternoon and a very happy Diwali to you. Thank you for joining us today for the Dollar Industries Limited Q2 FY '24 Earnings Call. I'll take you through the business and operational highlights of the quarter gone by, while our CFO, Mr. Ajay Patodia will share the financial metrics.
We are happy to say that the company achieved strong top and bottom line growth in Q2 FY '24. Total income increased by 21% year-on-year and 26% quarter-on-quarter, reaching INR 413 crores in Q2 FY '24. While the total volume grew by around 40% year-on-year. Net profit for the quarter grew significantly by 44% year-on-year and 71% quarter on quarter-on-quarter to INR 25 crores. We are pleased to see that the company has emerged stronger from the challenges of FY '23. Raw material prices have stabilized and high cost inventory is no longer within the system. This is evident in the gross profit margin, which has increased by 189 basis points year-on-year to reach 33% in Q2 FY '24.
The tax conversion item in Q2 FY '24 improved to 147 days, down from 167 days in Q2 FY '23, largely attributed to a 14-day reduction in inventory. This reduction in inventory days can be primarily attributed to the removal of high-value inventory from the system. We anticipate a promising second half of FY '24, driven by sales, raw material prices and strong push toward premiumization, which will help us sustain and grow our margins. Our strategic decision to appoint Saif Ali Khan as the brand ambassador for Dollar always has yielded good results with economic segment revenue increasing by 39% year-on-year. Additionally, we have witnessed remarkable growth in volume in this segment, up by 52% year-on-year. response to our recently launched force made active and women's also product in the quarter gone by has been overall whelmingly positive. The growth in music portfolio is 18% year-on-year in value terms and 17% here year-on-year in volume terms. It goes a long way reiterating our focus on increasing the share of non-management force mix grew 50% year-on-year in both value and volume terms, which reinforces our commitment towards growth in higher-margin segments. The strong growth witnessed in [indiscernible] as well as for sites portfolio the confidence that the premium segment will continue to play a vital role in achieving 1% revenue and profitability growth in the future. In Q2 FY '24, our advertising expenses amounted to INR 32 crores, whereas in Q2 FY '23, it was INR 25 crores. Our annual target for advertising engine remains within the range of 6% to 6.5% of our top line.
Turning our attention to project Lakshya. In Q2 FY '24, we welcomed 22 new distributors into this initiative, increasing our total distributor count to 271 on or significant is from 229 distributors we had in FY '23. We are happy to report that project Lakshya's contribution to company's domestic field has grown from 19% in FY '23 to 25% in H1 FY '24. Presently, we have Lakshya distributors operating in 13 states and our expansion as we are ongoing with a target to bring around 65% to 70% distributors and the profit lecture by FY '25. In H1 FY '24, our modern trade and e-commerce sales accounted for approximately 3% to our total sales. Our goal is to raise this figure to around 8% by FY '26.
Our commitment to sustainability remains a core, and they are dedicated to implementing coin practices across our operations. This includes our focus on reducing our carbon footprint and promoting responsible manufacturing process. Driven by the success of project Lakshya's technological advancement to the product launches, try to work premiumization and the overall growth in the industry and the economy. We believe we are very poised for strong top and bottom line growth in the near future.
Thank you all. Now I would hand over the call to our CFO, sir, Mr. Ajay Patodia to talk about the financial metrics.
Thank you, Ankit ji Good afternoon, ladies and gentlemen. Many thanks for joining the earning call. I will give a brief overview of the financial numbers for the quarter before we open for question and answer. I hope everyone would have got a chance to look at the earning presentation and the press release by now. While Ankit ji has already covered the macro outlook, I will try to explain in more microphones, the financial performance of the quarter gone by.
Our revenue from operations rose by 21% year-on-year basis to INR 413 crores in quarter 2 FY '24 from [ INR 340 crores ] in quarter 2 FY '23. Gross profit reached INR 135 crores, is making a strong year-on-year growth of and quarter-on-quarter increase of around 27%. Gross profit margin for Q2 FY '24 stood at around 33% against 31% in Q2 FY '23. [indiscernible] ending by 89 basis points year-on-year. The year-on-year margin expansion is indicative of the stability in raw material prices, which all the significant challenge to the industry during FY '23. Operating EBITDA in Q2 FY '24 showed strong growth, increasing by 38% year-on-year, in INR 42 crores. the operating EBITDA margin for the quarter as expected by 121 basis points year-on-year to 10%. Profit capital tax for the quarter witnessed a [indiscernible] 44% year-on-year increase, reaching INR 25 crores with the PAT margin reaching 6%. Our commitment to strategic priorities and growth pillars remains unwavering as we focus on our long-term objective sustainable growth and profitability. We see a strong quarter and focus on premiumization we are confident in our ability to achieve our revenue and profit growth in the current financial year as well as in the near future.
Now moving on to brand-widening in quarter 2 FY '24. our mix segment Big Boss contributed around 36%. Our economic segment Dollar Always concluded at around 38%. Our premium segment Force NXT contributed around 4%. Our [indiscernible] segment Dollar Woman continued around 9%. And for our winter segment [indiscernible] contributed around 11%.
With this, we now open the floor for question and answer.
[Operator Instructions] We take our first question from the line of Rahul Jain from Credence Wealth.
Am I audible?
yes.
Congratulations on a wonderful set of numbers. So a couple of things, sir. One, on the volume you have mentioned in your presentation that we had about 40% volume growth in quarter 2. So just to understand the pricing and the volumes. So if you could share details about the average selling price of '23 and the average impact in the current half H1 and the volume growth overall in H1?
So in quarter 2, we did a volume growth of 40% with a value growth of overall revenue growth of 21%. If we compare the ASP of Q2 FY '23 versus Q2 FY '24, there has been an ASP decline of around 13%.
Sure. And so currently, as we speak, as on say, 30th September, the overall first 6 months average would be around 12%, 15% below the FY '23 price. Is that a fair assumption?
Yes, around about.
Okay. So sir, going ahead, in the previous call, you had given a guidance of revenue growth of about 11%, 12% and margins of around 11% to 12% on the EBITDA side. So 2 things. One, do we still believe that guidance is achievable considering that pricing pressures will continue in spite of a fantastic volume growth the pricing still lags behind. And typically, your second half, we need to grow around 18%, 20% to achieve that 11%, 12% guidance of revenue in terms of value?
Yes. So the thing is that if you look at the actual numbers, we did an overall revenue growth of 5.2%, right? And since the second half is always better than the first half because Q4 is really ready for our industry. Not in this particular fiscal year, we'll get else also in our Q4 because it is around eighth of April 2024. So Q4 is supposed to be much more stronger. And we are very hopeful and we are very optimistic about the fact that the guidance that we had given in the last call, we stick by it. Revenue should be somewhere around 12% to 13% kind of a growth and EBITDA would be somewhere around 11-odd percent approximately.
Sir, how are the bookings from the thermal sales going on? What is the expectation on thermal?
So in Q2, we did a performance as we saw the growth of -- we saw a growth of 15%. And we are very hopeful that the winter should be good this year. Unlike the last couple of years, which went by, it was not that great. And we are very hopeful about good winters.
Sure. And with regards to the pricing, one of our peers just mentioned that there was a price in October first week, but that has got reversed. So what is our take on this? And when do we expect some pricing movement on that side?
So see, everyone in the industry wanted to take a price hike given the kind of like everyone thought that the raw material prices have stabilized and everything. And it has been similar. We don't see any change right now. But since the yarn market is a bit soft right now, there's no change in the price. So we have to reverse the price line [indiscernible].
Sure. And do we expect -- how do we expect the pricing going ahead?
Currently, we don't see any major change happening in the prices.
Sure. And just one last question, sir, on the longer-term basis, you have given a guidance of INR 2,000 crores for FY '26 in terms of revenue. So that would be at the current prices -- product prices?
Sorry?
You have given a guidance of INR 2,000 crores of sales for FY '26. Is that guidance taking into account the current prices of the yarn and the products? Or are we assuming some price inflation in that revenue guidance?
See, every year, then there has been -- every year, we take some price hike to the tune of 5% to 6%. And taking cash into account, we are very hopeful that we'll be able to achieve INR 2,000 crores by FY '26.
Sure. And lastly, on the working capital longer term. So the Lakshya project in terms of additional distributors and also with regards to channel financing, we have been doing some work on both these things for the last about 1.5 years. It has been a bit slow in terms of execution, but it seems to be picking up. So in terms of our working capital on the data base, what is our expectation that how should we see the working capital more so on the debtor days going ahead in a next 2 quarters, next 6, 8 quarters, where do you see the debtor days coming down to?
In a couple of years, we are very hopeful that we'll be able to bring it down to somewhere around 70, 75 days.
I mean given the current situation and current execution, we are quite hopeful that we should be around 75 days in terms of debtor days?
Yes. So a couple of years back, if we would have seen our overall debtor days, it was somewhere around 120, 125 days. And we brought it down to 108 days currently. So it is nearly due to the Lakshya project and the dealer financing scheme that we are running. And we have around 300 distributors who are already enrolled into distributor financing scheme. So as soon as more and more distributors come into this particular program, we are very hopeful that we'll be able to reduce the debtor days [indiscernible].
Sure. Thank you so much. I wish you all the best, and happy Diwali to you and the entire team.
Happy Diwali to you too, thank you.
We take the next question from the line of Prerna Jhunjhunwala from Elara Capital.
Congratulations on a strong set of numbers. I wanted to understand the competitive intensity in the market for both mask and premium categories, whether it continues to remain high or it will become or what is your sense on competitive [indiscernible]?
See, our industry is based on base of organized sales as well as unorganized players. And at our particular level, our peer group, we , we are like 5 players at an almost similar level. So the competition has always been there, and it will be there. So the intensity is just as it was the last quarter. So it's not that the competition has reduced or the intensity of competition has reduced. It is that how our strategy works out in the market.
Okay. Okay. Understood. So if I want to understand the demand for ad measures, I understand Force NXT has grown by 50%, but can you give some color your athleisure space, how this is improving with time?
So athleisure, athleisure is doing good. Currently, it is contributing around 12% to 13% of our total sales. And it's not that -- like the growth has been good. So in Force NXT, majority of is if we talk about in terms of value. So Force NXT, athleisure is doing really very good.
Okay. And apart from...
It's to increase from INR 250 to INR 285.
Okay. You've taken price hike in sports well athleisure?
No. It's just the product mix, which has changed. So during winter, a lot of [indiscernible] the month in Force NXT. So all those sales taking into account in the second quarter, The ASP rose from INR 250 crores to INR 280 crores.
Okay, okay. And I was also going to a receivable as earlier participant also asked in the same is in the overtime, we saw a good reduction in receivable days. I wanted to understand why it has increased again to some extent, not all but yes, to some extent.
So in terms of number of days, Prerna, it has been the same. During COVID time, it was somewhere around 99 days, but currently, it is 108 days. So it's a matter of 9 days. And mostly, if you see, in absolute terms, if you see the overall debt that is outstanding on our balance sheet. It's almost the revenue that we did in Q2.
Okay, okay. And if I want to understand the winter wear demand, how is it likely to be in your opinion this year?
See, we are contemplating that it should be good. And given the forecast of the weather that we are seeing every time monitoring it. The team is very positive about it. And if the winter season is -- so in Q2, we did a 15% growth in our commerce and compared to last year Q2. And if the season goes well, Q3 should be really good for us.
Okay. Was there any large inventory last year? Or I mean, was it low on inventory last year? Just wanted to understand what happened last year as well. I mean [indiscernible]....
Yes. So there was some inventory which was there in the system, which will get cleaned up this particular fiscal.
Okay. Understood, sir. and all the best, and happy Diwali.
Happy Diwali to too, thank you.
[Operator Instructions] We take the next question from the line of Devanshu Bansal from Emkay Global.
Congratulations on a great set of numbers and best wishes for the upcoming festive. Sir, I wanted to check from premium in a way side, the players there are not seeing such level of volume growth. In fact, that segment has been under quite a bit of pressure. Sir, wanted to check, is the market seeing some down trading that is helping us deliver such strong volume growth. According to you, what are the drivers actually that are helping us?
So Devanshu, there is no downgrading which is happening. It is that see, we deal into basic products and a second stream, right? People can postpone the purchase but can't do the [indiscernible]. And If a person is adding the jockey, we won't downgrade the impact maybe a Big Boss or a person wearing Big Boss won't downgrade to the economic [indiscernible] manufacture. So I don't think on the basis of the feedback that we get from the market, it's not a downgrading that happening. It's just a postponement, some amount of postponement in the premium segment. But for -- luckily for us, Force NXT did really well in Q2. So we did a volume growth of somewhere around 50%.
Right, right. And when were these which are implied by this 40% volume growth and 20% revenue growth. Whenever these cuts taken by the players like you?
The price has started happening from the end of Q1 last fiscal. And we did a price [indiscernible] of this [indiscernible].
Okay. Okay. And was the quantum of the price hikes in all that you have taken between this period?
During getter was a if I do something around 18% to 20%.
I mean price cut that you have taken between Q1 and then Q1 FY '23 and Q4 FY '23.
So if you see our -- the Q1 of last fiscal was at its peak. And if you compare it with the Q1 of this fiscal, with respect to the [indiscernible], there has been a decline of somewhere around 15%.
15%. Okay, okay. And what is the kind of RM inflation you are seeing? Obviously, you mentioned that the raw material on the softer side. So is it like on a declining trend or there is some level of inflation that you are seeing on a Y-o-Y basis?
Currently, there has been no changes in the prices. But the yarn -- so the yarn manufacturers are bit trend because of the lower. So that's why we are saying that the raw material prices are on the software side. And -- but currently, we don't see any change happening in the yarn market as well.
The next question is from the line of Ankush Agrawal from Surge Capital.
Firstly sir, can you highlight the volume growth for Lakshya projects in Q2?
So on a half yearly basis, the volume growth was 32% vis-à-vis is in our non-Lakshya, overall at a company level, on a half yearly basis, we did a volume growth of somewhere around 19% to 20%.
Okay. So like in Q1, we did 13% and H1 is [ 13 ], right? Is the same number, right distributors that were there as of H1 last year and now?
Yes, yes, yes. On a like-to-like basis.
Yes. Secondly, sir, can you give an ASP later of what kind of we have between various categories like in man, women force and is around INR 250 to INR 280. So on similar lines to what would be the ASP for different categories of products?
So if we talk about Dollar Man, the ASP would be somewhere around INR 80. On our regular product economic into product Dollar Always would be somewhere around INR 50. [indiscernible] would be INR 110. And Force NXT is around INR 285, and socks, it is around INR 32.
Sorry?
So the Socks category that we make, it's around INR 35.
And sir, one thing over here. So I think we did this whole brand exercise of rather than going at individual brands, putting it in the categories of manned women junior always and all that. But if I look at our advertisement and branding now, even though we have like the analyst dollar men, but the major portion of the branding steel goes to be dollar man is there, but the major visibility is still big pause. So I'm trying to understand like the whole philosophy of going after category and not individual brands, that is still not reflecting in our brand, the S-Market in branding. So I wanted your thoughts on that.
So it has been done consciously -- see, we have been advertising big balls for quite a long time, like it has all around 20 years. So somewhere around 2003, 2004, we started advertising for big and people know bid posts, like it has all the tagline, right. So if you do a brand architecture, so you have to be sensible about wanting that the consumer does not get lost in a way. So when we did the survey, Dollars came out to be much more stronger. But at the same time, there were a set of consumers who knew Big Boss. So now we don't use Big Boss as a sub-brand. We use it as a collection. So ultimately, we have confined ourselves into 6 categories right now. we'll be using in our advertisement Dollar Man, Big Boss because now Big Boss now acts as a collection and Akshay Kumar has been retained for advertising into Dollar Man, Big Boss only.
Right. So like in the longer run, this would still stay relevant, right? So you're not trying to like fade away like won't be paid out like Big Boss, it would still be there.
Not in the near future, but we maybe 5, 7 years down the line, we may think of just taking Dollar Man instead of Dollar Man, Big Boss.
And lastly, sir, in on receivables. So I mean, if I look at sales last year H1, the Lakshya scheme was contributing around 16%, 17%. That has [indiscernible] 25%, 26%. But still, the receivables are still -- I mean, at similar levels are at higher levels. So we are not really seeing any kind of benefit at least quantitative in terms of results of Lakshya's distributors having a substantially lower receivable space. So I mean what will not help -- are we seeing much more higher receivables on the remaining distributors versus last year? Or what are you not adding up?
See, it's reducing your overall working capital sales is a process. It won't happen in a...
No. I am talking specifically about receivables because...
So yes. But as I've told you that 2 years back, the kind of receivable days we were into and reducing it to 108 days currently, the -- it was mostly quantitated by the Lakshya distributors and the DFS scheme that we have. And out of 300 DFS distributors and the distributors, we got enrolled in themselves into distributor financing schemes. Most of them are in Lakshya project only. So maybe that's why our major impact has not been seen right now. But yes, in a couple of years, you will see a drastic difference.
So what would be currently the average cable to say for Lakshya's distributor versus our normal distributors or broad range?
So average in luxury distributor is somewhere around 70 to 75 days, yes.
And would this number also for the...
Mr. Ankush, may we request you to join the question queue sir, we have several participants waiting. We take the next question from the line of Darshan from Crown Capital.
Am I audible?
Yes.
Yes.
So this one to note, sir, I think we've done very well this quarter master stance we can do even better going into the Q3 because we do the income coming back, which we are probably going to see after a few years. So can we maybe push our guidance a bit higher? That is what I was saying, are you being a bit conservative in the guidance of double-digit growth and [indiscernible] surpass? That's my first question. And the margin trajectory with more pain products we already reached on which right now for an there further improvement because of unused that's so higher margin product side. So just wanted a clarification on that icon better [indiscernible] to provide to us.
So we always believe in under promising and over achieving. So we won't be revising our overall guidance. It will be same as we told in the last call itself, revenue growth will stick to it. The revenue growth we are seeing around 12% to 14% and EBITDA would be somewhere around approximately 11% in circular [indiscernible].
Okay. Fair enough sir, but then in terms, is it possible that we will be able to over looking at the conditions or clearly the market in the North that are not conducive for that sort of group, sir?
Sorry, I didn't get your question.
So I lingerie we want to end the promise it over to now. But in a time we'd be a bit optimistic or [indiscernible] that may because we are having a good market condition which stabilizes or how much is...
It is the winter season is good, then we can assume that -- we can do a bit better, and we can be optimistic about the revenue.
So I just also wanted to know in terms of our margin simply currently we are counting [indiscernible] 11%. So year-on-year, how would we see growth maybe 1 percentage [indiscernible] increase going forward with our working capital as well as other premiumization efforts part or a fair assumption to make, sir?
Given the volatile nature of the raw materials that we have been facing for the past couple of years. So it would be very hard to actually comment on that right now. In a couple of years, we should reach a steady state where our EBITDA margins can be somewhere around 14% to 15% kind of level.
Okay. Okay. And sir, just one last question to you pricing for agitate had around [indiscernible] to better sense or was it leading to a decline of consumers to prices or to push demand we have to even take products to our results?
Your voice is a bit muffled, so it can be just a bit more clear on background noise also.
So I'm sorry. I'm sorry for that. I hope to -- I hope this is better.
Yes.
Yes. So just wanted to get a sense in terms of pricing that I think are consumers injecting prices because of inflation problem that they are facing or are we convince or to increase demand, we have to keep prices low. So how is it working out in terms of pricing scenario that you feel that, okay, our pricing change will be -- will be able to take hikes or ASPs will increase due to a product mix change only? So just wanted to get a sense on that.
So currently, we are not thinking of taking any kind of a high. There's might be a change in the product mix, which will lead to ASP growth. But at a consumer level, they don't -- it doesn't matter if you increase or degrees INR 1 or INR 2. But at a retail level, retailer technology or the channel partner psychology, and there are also a number of factors which played an important role. Our industry comprises of 50% unorganized market in land segment. And there are a lot of regional players in the [indiscernible] segment, intermedium also was stronger in their particular region. So there are 5 in the state to intense. So everyone has to be on the same page in order to increase the price in the market, right? Because if you increase the price and the rest of the players who have similar kind of products that you have it will really cause a problem in the market and channel partner sentiment could be merged through that. So we are not taking any time hike or it's not planned right now. But yes, product mix changes will definitely show some amount of ASP changes.
[Operator Instructions] We take the next question from the line of [ Henan Vesaria], an individual investor.
Am I audible?
Yes, sir.
My question is, what is the current take [indiscernible] actually in the on the presentation, we can see the currency we are in [indiscernible]. But what we are seeing in the future part....
Sir, your voice is sounding very muffled. If you are on a headset, I would request you to switch to the handset, please.
[indiscernible].
The line for the current questionnaire, [ Henan Vesaria ] is disconnected. We move on to the next question from the line of Rehan from Equitree Capital.
I had a question regarding such a great volume growth. If you could just brief or tell us on which segment you saw the most growth from? And if there's any -- so like if you see any reason for the same?
So we saw good growth in our premium segment Force NXT. It was to the tune of 50%.
Okay. Any reason for the same?
And we also saw good growth in our economic range of products to the tune of 42% in terms of value. and within 7% in terms of volume. So it's majorly attributed to the new PVC till that we came off with using Saif Ali Khan as the brand ambassador for economic range of products. And this was the first time also when we advertised for Force NXT in the cinema halls [indiscernible]. We made a new PVC for [indiscernible] with normal margins, not a lot ambit sale. But I think advertisement has impacted the sales growth and in a positive manner.
Okay. And second question would be any outlook you see women where segment also a high-margin business is, -- any percentage of revenue you think it could be potentially in the coming years? Like do you see it can grow significantly or any form of guidance on the same?
So in women segment, we have Dollar Woman Missy excluding -- it is also doing good. We saw a growth of around 18% in terms of value and 25% -- yes, and around 25% in terms of volume...
Year-on-year?
Year-on-year basis in the quarter 2. And so we are very hopeful that for the next 2 to 3 years, we'll see a good growth coming in from Force NXT and Missy. Apart from that, this particular quarter, we did in comers also, we saw a growth of around 25% in terms of volume and 15% in terms of value.
Okay. So these would be a higher margin thermals and woman wear?
These are the higher-margin product ranges that we have. Apart from that, the activewear range that we launched in Force NXT, we have leisure category. These are some of the product categories that we are very hopeful about in the near future. That will increase the overall at the company level.
The next question is from the line of [ Marshall], an individual investor.
Yes. My first question is that like what was the main reason -- so the reason you already explained regarding the increase of turnover in the like quarter gone by. So will we sustain this kind of INR 412 crores of turnover in the December quarter also? And keeping in mind that like in co-December quarter in 2022, our sales went to INR 285 crores.
So see, in the quarter, early depends upon how the winter goes. So it is very hard to tell whether how the quarter would look like. Since last year, the quarter was not good because of the poor winters and winter coming in very late. So all the purchases have been stopped by the channel partners. And this year, we are very hopeful and -- the best thing that we can do is look for a good better on winter season to a size. But we are very hopeful about our third quarter.
Okay. And my second question is regarding this -- the pricing of raw material, as you said, the rise automatically is softening as compared to Q2 also. So where do you see in terms of price of raw material currently vis-a-vis the diverse as of Q2? And did we take any price cut or price hike in our products since 1st of October?
So in Q2, we didn't take any price hike.
In Q3, I'm saying Q3.
In Q3, we are not taking any price changes or price cuts or price hikes. We are not taking anything.
And the price of raw material, how the events are currently faring compared to every stage of September '22.
So it is -- it is at a stable level currently from past 6 months, we have not seen any much change in the yarn prices. And if you compare versus Q2 this year, we saw overall EFT growth of 13%.
Okay. And the [indiscernible] important question you mentioned in the PPT that the export revenue will be 30 countries and 11%. So what innovation of the target turnover? So it means our export revenue will be INR 200 crore? Okay. sorry, INR 220 crores because our target turnover in INR 8,000 crores?
Yes. We really want to reach to that particular stage where our export increases by FY '26 -- we really want to reach 30 countries with our total revenue contribution being 11% to our total sales.
But sir, like from the list of the country, you mentioned, I can see that you are present everywhere in GCC. But the main country is where there is Saudi Arabia -- Saudi Arabia population is more than double of the entire 5 countries, but we are not for Saudi Arabia. We had the UAE population of 9 million, but the Saudi population is 36million.
Yes, we are trying to explore Saudi as well. Getting a good channel partner is a major task. So in exports, if you don't have a good channel partner who can partner with you and tender product or market our products and we don't, you won't get any success over there. So in Africa also, we have been trying from past couple of years. And now we are getting good partners, and we have started the African market. In fact, African market is also not that -- it's all great market with a lot of the consumption level is really very high. Plus in the kids segment, we'll be launching [indiscernible] and from newborn to 3 years, 4 years kind of a product range. And this case range does really trend in the Middle East end the African market, which has a huge scope. but the main thing is that U.S. and the Europe...
I'm sorry to interrupt, may we request you to join the question queue, sir.
Let me complete my question. Major economy of U.S. and Europe, where we're going to get well because semi price, that is still merging. So [indiscernible] to make an inroad in the U.S. and the European markets?
Sir, European market is really very different. In fact, body side that you think people have rev people in the Middle East or India, the pattern, the shape very different plus the climatic conditions also they use more of manmade fiber or ester or polycotton kind of a mix, and we deal in cotton kind of material. So it is really very different market which are completely different product ranges. So that you to have a very different set of product interest only in the European region. So that's why we are not considering Europe as of now. But in near future, after we cover all and the African space or the U.S., then we'll be able to move to the European region quite effectively.
[Operator Instructions] We take the next question from the line of Anik Mitra from Finnomics Solutions Pvt Ltd.
Am I audible, sir?
Yes, audible, sir.
And wish all of you are very happy Diwali ahead. My first question is, sir, you have referred regarding premiumization. So at this point of time, if I'm not wrong, your contribution of premium product is around 4%. Is my understanding correct?
No, sir, in remission, we mean the high evitable product. In premiumization category, we include costs our premium segment, plus thermal segment plus Dollar Women because all 3 category has a higher level of EBITDA. So what sort of EBITDA. Like in thermal, we had EBITDA of around 15% to 18%. And in Missy that it was a woman segment, it is around, say, 14% to 17%. And in premium segment, like Force NXT is around 18% to 20%. all the 3 categories are and our [indiscernible].
Okay. Sir, what is the road map? Like are you -- do you have a plan to increase the contribution of these products in the pie? Or how do you look at it?
Currently, like for can actually contribute around 4% or premium segment. So we aspire to increase to the 8% of our total confusion by FY '26. And like in our woman segment, it is around contribute around 12% to 13% overall contribution on our revenue. And we generally launch new products in segments like we're going to launch active year in months and when we already launched that leisure segment. So they get a good response. And we hope that we'll largely also launched [ lingerie ] in our Dollar Woman segment. So we get a from this indicate a good EBITDA margin and our total season products has increased. And next year, we're also going to launch kid segment under [indiscernible] category. And they also under the category of 15% to 18% margin, EBITDA margin level. So we expect that our total revising category increased by FY '26 to 33% from current year is 27%.
The next question is from the line of Jatinder Agarwal from Relax Capital.
I'm sorry if there from disturbance because I'm on the road. Two things. One, when I look at the project Lakshya, right? It's almost like 1/4 of our sales [indiscernible] and you still seem to give a guidance that it will be about 70% by FY '26. Is the benefits of project Lakshya are so visible, why is the strategy not being more aggressive? It's already like 6 years. I think 5 or 6 calls we are already into the project. And we have another guidance of 2 more years to reach 70%. Can you explain that?
So the thing is that -- the problem is the intent competition that we have from the peer groups. And in our particular industry, what happens is that having 5 pays off a similar level. And you can't actually afford to take a bit on your sales space. So this particular project this particular project requires a lot of feed work and it takes around 3 to 4 months to get a distributor stabilized under the project. Until then, the we see we see some amount of gap which happens in the market. And everyone is just looking to increase their [indiscernible] also. So that's why instead of having a dent in our overall revenue, we took a call to first penetrate into the gray area in life there and then move into the areas where the distributors are much more stronger and bigger insight in terms of sales, the revenue that they give us. So that's why it's taking a bit of time. But as such, what we are very focused about this particular project and make it [indiscernible].
Okay. And my second question is related to the EBOs, right? I'm not sure how many EBOs we had last year the same quarter. But are you also able to track what type of same-store sales growth is coming in some of these EBOs? I know the volumes are very small. The numbers itself are small, but is there any -- what type of -- basically, what type of feedback is -- are those EBOs giving back to you? If you could share some of your thoughts, that would be very helpful. Those are the 2 questions.
Yes. So the thing is that we started only EBOs somewhere there in 2021 -- and towards the end of 2021, October '21 was our first EBO, which opened in [indiscernible]. Currently, we are planning at 18 EBOs. The major learnings that we got -- in this particular fiscal during the first half because the EBOs were kept open until February or March of last fiscal. So for the measure of feedback of the major deluding also lesson that we learned about this particular retail program or on the EBOs is that you need to have a higher ASP products the product mix should be very different from what you've given to the general trade. So we are working upon and that's the reason why we have not opened any EBOs in the last 6 months' time. So majorly, we are working on that time to create a few products, which would be exclusive to our reviews. Currently, we have introduced those to 5 products that we have manufactured only for EBO, the polo T-shirt, but getting a good response last month only in test, and we're getting with response. It's just that we need to crack the particular product mix or kind of freshness or a newer hotel, which does not go in the general trade where there's no conflict because as you know that in our generate things don't sell on an MRP basis. And in EBOs, the consumer is always asking for the like approved promotions or some sort of discounting that they expect because it generated the [indiscernible], they don't sell the products on MRP basis. So that's the problem that we are facing. But we are -- as soon as we are able to fix that, and we will start opening more and more stores.
Any idea of how many stores we'll have by March end or over the next year?
[indiscernible] may we request you to join the question queue.
By March, and I think we should reach from '18, we should reach to somewhere around 28 to 30 stores.
The next question is from the line of Anushka Chitnis from Arihant Capital Markets.
And congratulations on a great result, sir. My question is also on the line of the EBOs and that I wanted to know what the revenue per store and the average transaction value in these reviews, if you can give us some idea?
Sorry, can you repeat your question?
Can you tell us about the revenue per store and the average transaction value in the EBOs.
Yes. So first of all, I would really -- I would appologize for my last statement that I made. And I would like to clarify that lup till March, the number of stores would be somewhere around 21 to 22 and not 28 to 30 stores. And regarding the average ticket size, the average ticket price is somewhere around INR 1,200 on an average. And on an average store sale is somewhere around INR 2 lakhs, INR 2.5 lakhs. And there are a couple of stores, which is about [indiscernible] as well. But on an average, it's somewhere around INR 2 lakhs.
We have the next question from the line of Karan Sanwal from Niveshaay Investment Advisory.
Am I audible?
Yes, sir.
Congrats on good set of numbers. How critical do we manufacture all the products that we sell or do we [indiscernible] as well?
Your voice is not a actually. Can you be...
So my question is, do we manufacture all the products that we sell or do we outsource a portion of it?
No. So we don't see this on [indiscernible] basis. It's just that all the intermediary processes are being outsourced to the job order. And of 25%, we have no manufacturing like whether it be scaling or meeting, processing, cutting and stitching. So cutting is mostly in-house, a few contractors outside the was only for so because I think it's a major process where we really need to focus and where the quality of the pattern [indiscernible].
And also, how are you planning to scale up? Are we planning to scale the no operations? Or were any CapEx plans that you have for your maybe 2, 3 years down the line?
So currently, we don't have any plans to expand our in-house manufacturing. It's on its agrobusiness only. And in our industry, it's very simple to add to workers and increase our overall production level.
The next question is from the line of Pallavi Deshpande from Sameeksha Capital.
I wanted to know what would be the share of outerwear to the total turnover?
It is [ around 18 ]%. , inner wear is 18% and outer wear is 19%.
And where do we see this going to in the next 2 years' time out of [indiscernible]?
So next 3 years' time, it would be somewhere around 25% because in terms of volume, what happens is in over sales in bulk. So the impacts are a [indiscernible] that's why to make a huge impact on the volume, it could be very difficult. That's why from 9% to 25%. But in terms of value in terms of the overall estate growth, you will see a difference.
So what is the share in value terms is what I wanted.
So in terms of value -- just a second, just give us a second. I think it should be somewhere around 20 -- and 21%, 22% kind of a thing. We don't have the figures adeno. So we'll get back to you, like after the call.
Thank you. Ladies and gentlemen, we take that as the last question for the day. I would now like to hand the conference over to the management for closing comments.
I take the opportunity to thank everyone for joining this call. I hope we have been able to address all your queries. For any further information, kindly get in touch with us. And thank you once again. Happy Diwali to everyone of you.
Thank you, sir. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.