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Edited Transcript of V2RETAIL.NSE earnings conference call or presentation 30-Jul-19 5:30am GMT

Q1 2020 V2 Retail Ltd Earnings Call

Aug 22, 2019 (Thomson StreetEvents) -- Edited Transcript of V2 Retail Ltd earnings conference call or presentation Tuesday, July 30, 2019 at 5:30:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Ram Chandra Agarwal

V2 Retail Limited - Chairman & MD

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Conference Call Participants

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* Chintan Desai;Param Capital;Sr. Equity Research Analyst

* Niraj Mansingka;Goldman Sachs Asset Management

* Rajiv Bharati

IndiaNivesh Securities Limited, Research Division - Senior Research Analyst

* Varun Singh

IDBI Capital Markets & Securities Ltd., Research Division - Research Analyst

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Presentation

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Operator [1]

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Ladies and gentlemen, good day and welcome to the V2 Retail Q1 FY '20 Earnings Conference Call hosted by IndiaNivesh Securities Limited.

(Operator Instructions) Please note that this conference is being recorded.

I now hand the conference over to Mr. Rajiv Bharati from IndiaNivesh Securities. Thank you.

And over to you, sir.

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Rajiv Bharati, IndiaNivesh Securities Limited, Research Division - Senior Research Analyst [2]

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Thank you, Evan. Good morning, everyone. On behalf of IndiaNivesh Institutional Equities, I would like to welcome everybody on the Q1 FY '20 Earnings Conference Call of V2 Retail.

We have with us Mr. Ram Chandra Agarwal, Chairman and Managing Director of the company. We will request Mr. Agarwal to briefly discuss the quarterly performance and future outlook of the company, and then we can start the Q&A session.

Over to you, sir.

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [3]

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Good morning, everybody.

(foreign language) result (foreign language) result (foreign language) highlight (foreign language) a macro-level (foreign language) customers (foreign language) sentiment (foreign language) segment (foreign language) consumption low (foreign language) impact (foreign language) value retail (foreign language) sentiment (foreign language) competitor (foreign language) mostly (foreign language) customer (foreign language) merchandise (foreign language) 60%, 70% location (foreign language) we are #1 over there in terms of private sale, profitable EBITDA and all the retail parameters.

(foreign language) INR 31 crores (foreign language) INR 271 crores (foreign language) INR 240 crores (foreign language) inventory INR 31 crores (foreign language) due (foreign Language inventory (foreign language) last year (foreign language) square feet (foreign language) achieve (foreign language) sales front (foreign language) per square feet sales SSG (foreign language) problem (foreign language) macro-level (foreign language) customers sentiment (foreign language) competition (foreign language) esteem (foreign language) competition (foreign language) cash flow (foreign language) problem (foreign language) survival of the price strategy (foreign language) normal (foreign language) measures (foreign language) competition (foreign language) quarter (foreign language) result (foreign language) particular (foreign language) question (foreign language)

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Questions and Answers

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Operator [1]

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We will now begin with the question-and-answer session. (Operator Instructions) (foreign language)

The first question is from the line of [Ramesh Jain] from [SC Capital].

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Unidentified Analyst, [2]

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Yes, sir. I have got 2 questions out of that, 2 only. My first question is already answered by you, regarding that consumer sentiment at all. My second question will be, sir, that about especially company cash position available at present level. And is there any plan for the company to give our shareholders the buyback or something like this? Because there is the -- just -- the passively that the share price has come down, sir.

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [3]

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(foreign language) buyback (foreign language) plan (foreign language) company (foreign language) cash flow positive (foreign language) at the end of the year (foreign language) income tax (foreign language) EBITDA (foreign language) EBITDA (foreign language) total sale (foreign language) cash flow add (foreign language) positive (foreign language) cash flow (foreign language) same-location (foreign language) present (foreign language) same state (foreign language) present (foreign language) decision (foreign language) according to customer sentiment, feedback (foreign language) cash flow (foreign language)

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Operator [4]

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(Operator Instructions) (foreign language) The next question is from the line of [Ram Prakash], who's an Individual Investor. Ram Prakash, do you want to go ahead with your question. There seems to be no response from the line of Ram Prakash . We'll move to the next question.

The next question is from the line of Chintan Desai from Param Capital.

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Chintan Desai;Param Capital;Sr. Equity Research Analyst, [5]

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Sir, what would be our SSG for the quarter?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [6]

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SSG (foreign language) minus 7% (foreign language)

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Chintan Desai;Param Capital;Sr. Equity Research Analyst, [7]

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Okay. And a couple of questions. On the measures (foreign language) measures (foreign language) to counter the competition. Can you highlight some of the measures (foreign language) what is our plan? And secondly, on the store opening, we have already opened to -- many stores, so going ahead for this year, what is our store opening guidance?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [8]

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(foreign language) specific guidance (foreign language) mix up (foreign language) location (foreign language) business (foreign language) growth (foreign language) cash flow (foreign language) customer sentiment (foreign language)

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Chintan Desai;Param Capital;Sr. Equity Research Analyst, [9]

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Okay. Okay. And sir, about measures (foreign language) plan (foreign language) to counter competition.

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [10]

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Business measures (foreign language) different merchandising (foreign language) cost cutting (foreign language) combo offer (foreign language) supply chain (foreign language) operational efficiency (foreign language) electricity costs (foreign language) measure (foreign language) results (foreign language)

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Operator [11]

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The next question is from the line of [Ram Prakash], who's an Individual Investor.

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Unidentified Participant, [12]

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Hello. Can you hear me?

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Operator [13]

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Yes, sir. We can hear you.

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Unidentified Participant, [14]

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Okay. Yes. So last time, I was on mute. So I apologize for that. (foreign language) this quarter with -- revenues are not on effect. Having said that, economic performance cannot suddenly reduce. Last quarter -- last -- before that -- with the economic situation there, clearly a bit more enabled. So is there any specific reason why revenues are down only for this quarter? That is the first question. And just one more question I want to ask is considering that the future. What is the -- I mean the ideal growth target we can achieve for the company considering the demand which we can expect in the Indian economic environment in the future, not the current. And a couple of concerns, I'll talk with you.

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [15]

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(foreign language) question (foreign language) competitors (foreign language) value segment (foreign language) same model (foreign language) private equity (foreign language) location (foreign language) present (foreign language) competition (foreign language) intensity (foreign language) high (foreign language) macroeconomic picture (foreign language) gloomy (foreign language) demand side (foreign language) competition (foreign language) sales (foreign language) pressure (foreign language) temporary (foreign language) use (foreign language) competition (foreign language) location (foreign language) competition (foreign language) competition (foreign language) result (foreign language)

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Operator [16]

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The next question is from the line of [Soumya Kacholia] from [Lucky Investment Managers].

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Unidentified Analyst, [17]

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Sir, what will be our retail area in billion square feet this quarter?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [18]

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It is [INR 8.78 lakhs] in square feet.

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Unidentified Analyst, [19]

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And what would be our store addition this quarter?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [20]

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0.

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Unidentified Analyst, [21]

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0. And the closed down?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [22]

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We have opened one store in Jorhat and we have closed in Bongal.

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Unidentified Analyst, [23]

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Okay. And our ASP?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [24]

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[INR 262 crores]

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Operator [25]

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The next question is from the line of Niraj Mansingka from Goldman Sachs Asset Management.

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Niraj Mansingka;Goldman Sachs Asset Management, [26]

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Sir, we have not put out the presentation this time?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [27]

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(foreign language) coming time (foreign language)

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Unidentified Company Representative, [28]

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(foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [29]

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(foreign language)

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Niraj Mansingka;Goldman Sachs Asset Management, [30]

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Okay. Okay. The other thing is in terms of, can you give me more color about the gross -- the first inventory, like you have gone to 107 days, but your targets had been much lower than that. We are applying (foreign language) when do we see that inventory days to go down further from here?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [31]

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(foreign language) con call (foreign language) winter (foreign language) inventory last year, 2018, (foreign language) 107 days (foreign language) optimum inventory (foreign language) 85, 90 days (foreign language) winter inventory (foreign language) level (foreign language) quarter (foreign language) improvement (foreign language) inventory (foreign language)

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Niraj Mansingka;Goldman Sachs Asset Management, [32]

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Okay. Okay. And if you -- can you tell, how much debt do you still carry? Because last time (foreign language) debt increase (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [33]

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Debt (foreign language) internal debt (foreign language) privately mentioned companies (foreign language)

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Niraj Mansingka;Goldman Sachs Asset Management, [34]

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Okay. So -- but for...

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [35]

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(foreign language) internal debt 0 (foreign language)

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Niraj Mansingka;Goldman Sachs Asset Management, [36]

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(foreign language) but from an -- investors like us, it is an external debt, right?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [37]

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Yes.

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Niraj Mansingka;Goldman Sachs Asset Management, [38]

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Okay. And any idea or any thoughts on when do you want to get that out of from here, from the balance sheet of V2 Retail?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [39]

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(foreign language) quarter (foreign language)

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Niraj Mansingka;Goldman Sachs Asset Management, [40]

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Okay. (foreign language) Okay. And any thoughts on (foreign language) gross margin reduction (foreign language) because I think you might have done a lot of end-of-season sale. How do you see this gross margin for your -- for next few quarters?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [41]

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Gross margin (foreign language) maintained (foreign language) long-term view (foreign language) gross margin maintained (foreign language)

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Niraj Mansingka;Goldman Sachs Asset Management, [42]

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Okay. (foreign language) last year, Q3 FY '18 (foreign language) Q1 FY '19, (foreign language) 33.5%. Q3 FY '19, (foreign language) 35% (foreign language) it has been seasonality (foreign language) every Q3...

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [43]

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(foreign language) question (foreign language) major (foreign language) competition (foreign language) intensity (foreign language) competition scheme (foreign language) generalized scheme (foreign language) free (foreign language) free (foreign language) competition (foreign language) scheme (foreign language) margin (foreign language) first day (foreign language) discount (foreign language) factor (foreign language) control (foreign language) gap (foreign language)

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Niraj Mansingka;Goldman Sachs Asset Management, [44]

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(foreign language) outlook (foreign language) what -- (foreign language) outlook (foreign language) for gross margin? Because generally Q3 or Q1 (foreign language) gross margin (foreign language) Q1 (foreign language) end low (foreign language). So I wanted your comment on that.

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [45]

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(foreign language) quarter (foreign language) outlook (foreign language) sales (foreign language) Puja (foreign language) quarter (foreign language) Puja Diwali (foreign language) consumer sentiment fully (foreign language) normal (foreign language) normal (foreign language) margin (foreign language).

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Niraj Mansingka;Goldman Sachs Asset Management, [46]

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Okay. And sir, we could -- scope (foreign language) operating costs (foreign language) or it is optimized?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [47]

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(foreign language) only optimized (foreign language) industry minimum (foreign language) cost (foreign language) per square feet (foreign language) actual cost (foreign language) area (foreign language) actual costs proportion (foreign language) area (foreign language)

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Niraj Mansingka;Goldman Sachs Asset Management, [48]

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Okay. Sir, any thoughts on news talking about that, the 25, 30 stores (foreign language) but (foreign language) discussions (foreign language) like (foreign language) clarity (foreign language) are you...

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [49]

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(foreign language) clarity (foreign language) sentiment (foreign language) perform (foreign language) per square feet sale (foreign language) invest (foreign language) priority (foreign language) offers (foreign language)

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Niraj Mansingka;Goldman Sachs Asset Management, [50]

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Okay. The other thing is last question, how you're trying to get more customers buying more products from you, like (foreign language) initiatives (foreign language) to get more like...

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [51]

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(foreign language) initiative (foreign language) result (foreign language) It is combination of many things (foreign language) shipment planning, cost (foreign language) overall costing (foreign language) product cost (foreign language) focused (foreign language) last con call (foreign language) focus (foreign language) product company (foreign language) product costing, product quality and product variety best (foreign language) focus (foreign language) variety (foreign language) best (foreign language) quality best (foreign language) product costing (foreign language) focus (foreign language) product cost (foreign language) focus (foreign language)

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Niraj Mansingka;Goldman Sachs Asset Management, [52]

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(foreign language) level (foreign language) contracting (foreign language) what is the percentage of revenue from those products?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [53]

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(foreign language) contract manufacturing (foreign language) vendors (foreign language)

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Niraj Mansingka;Goldman Sachs Asset Management, [54]

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So basically around 30% is on your control. It's a quality control.

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [55]

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Yes, yes.

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Niraj Mansingka;Goldman Sachs Asset Management, [56]

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Okay. Okay. Any targets (foreign language) in the same period?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [57]

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(foreign language) sign (foreign language) ultimately (foreign language) product (foreign language) product (foreign language) margin (foreign language) product cost (foreign language) focused private label (foreign language).

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Niraj Mansingka;Goldman Sachs Asset Management, [58]

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And there by -- any target, internal target (foreign language) discount (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [59]

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(foreign language) quarter (foreign language)

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Niraj Mansingka;Goldman Sachs Asset Management, [60]

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You mean 2, 3 quarters, you can go from a 30% to 75%, 80%?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [61]

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(foreign language) focus (foreign language) volume (foreign language) consolidation (foreign language) vendors (foreign language) vendor (foreign language) vendor (foreign language) planed order (foreign language) private label (foreign language)

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Operator [62]

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The next question is from the line of Varun Singh from IDBI Capital.

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Varun Singh, IDBI Capital Markets & Securities Ltd., Research Division - Research Analyst [63]

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Sir, I just wanted to understand how are the stores that you have opened in South and in Northeast. How are they performing?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [64]

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South (foreign language) taste (foreign language) different (foreign language) market different (foreign language) performance (foreign language) local taste (foreign language) accommodate (foreign language)

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Varun Singh, IDBI Capital Markets & Securities Ltd., Research Division - Research Analyst [65]

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Okay. And have you also penetrated into northeastern part of India?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [66]

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(foreign language) focus (foreign language) Guwahati, Patna, Varanasi, (foreign language) Bhubaneswar (foreign language) focus (foreign language) state (foreign language) present (foreign language) and we are doing good.

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Varun Singh, IDBI Capital Markets & Securities Ltd., Research Division - Research Analyst [67]

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But, currently, which geography or which location do you think is facing the most of the burnout? And consequently like...

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [68]

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It is a mix of location and I think -- and mix of -- you can say it is mixed reaction.

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Varun Singh, IDBI Capital Markets & Securities Ltd., Research Division - Research Analyst [69]

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Okay. And sir, the new stores that we are saying, 25, 30 stores target for FY '20. So any -- so like as you said that you will be opening in locations where you see store performing quite good. (foreign language) sir (foreign language) is there any color that you need will you focus only in North and East India and not much in South and Northeast India? Anything on that front?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [70]

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Yes, it should be Bihar and UP and Northeast.

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Varun Singh, IDBI Capital Markets & Securities Ltd., Research Division - Research Analyst [71]

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Okay, sir, understood. Market (foreign language) target (foreign language) I mean, if you would like to share?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [72]

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(foreign language) target (foreign language) let's see, (foreign language) market sentiment (foreign language)

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Varun Singh, IDBI Capital Markets & Securities Ltd., Research Division - Research Analyst [73]

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And sir, like you highlighted in an earlier call also, difference between the product that you are making through your own and the one that you are making by using vendors. (foreign language) gross margin (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [74]

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(foreign language) depend (foreign language) vendor (foreign language) consolidate (foreign language) order (foreign language) production cost (foreign language) margin (foreign language) again (foreign language) expect (foreign language) overall (foreign language)

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Varun Singh, IDBI Capital Markets & Securities Ltd., Research Division - Research Analyst [75]

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Understood, sir. (foreign language) if we are making 100% through our own (foreign language) gross margin (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [76]

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(foreign language) margin (foreign language)

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Varun Singh, IDBI Capital Markets & Securities Ltd., Research Division - Research Analyst [77]

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(foreign language) I understood, sir. And sir, lastly, which competition you think is creating the -- most of the difficulty for us?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [78]

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competition (foreign language) Tata (foreign language) landmark group (foreign language) launch (foreign language) Reliance (foreign language) express (foreign language) launch (foreign language) organized players (foreign language) value segment (foreign language) online (foreign language) penetration (foreign language) online presence (foreign language) site almost ready (foreign language) online (foreign language) omnichannel (foreign language) response (foreign language) omnichannel (foreign language) model (foreign language) competition (foreign language)

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Operator [79]

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(Operator Instructions) The next question is from the line of [Ram Prakash], who's an Individual Investor.

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Unidentified Participant, [80]

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Yes. (foreign language) time. One question I want to ask is that, in a span of 6 months, both the CEO and the CFO have resigned. So what could be the impact on the company or in managing it? And what is the future governance structure you may hire? So are you going to plan to hire somebody let's say, from outside. Or do you have some other plans?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [81]

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CFO (foreign language) financial (foreign language) CFO (foreign language) control and (foreign language) CFO (foreign language) join (foreign language)

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Unidentified Participant, [82]

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Okay. So governance structure (foreign language) CEO (foreign language) discussion (foreign language) internally (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [83]

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Akash (foreign language) CEO (foreign language)

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Operator [84]

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The next question is from the line of [Sameer Sachin Mukherjee] from [Centrum].

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Unidentified Analyst, [85]

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Some questions I had on the -- sir, you mentioned that you have around 8.78 lakh of square feet of retail area at the end of Q1 FY '20. If I refer to FY '19 presentation, it was around 9.06 lakhs, almost 30,000 square feet close down I feel -- am I missing something here?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [86]

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(foreign language) 8 stores (foreign language) rationalize (foreign language) Goa (foreign language) store, Jammu (foreign language) store (foreign language) size (foreign language)

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Unidentified Analyst, [87]

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Okay. (foreign language) store (foreign language) stores (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [88]

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(foreign language) square feet (foreign language) square feet (foreign language) Goa (foreign language) square feet (foreign language)

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Unidentified Company Representative, [89]

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Okay. Okay. On the SSG front. So you mentioned that minus 7% we have kind of loss this year, minus 7% on the base of minus 2% last year same quarter. Any specific, why this minus -- negative as a reason for that?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [90]

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(foreign language) customer sentiment or competition (foreign language) maintained (foreign language) company (foreign language) competition (foreign language) customer sentiment (foreign language)

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Unidentified Analyst, [91]

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Sir, (foreign language) SSG calculation (foreign language) loss validated (foreign language) quarter (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [92]

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(foreign language) calculation (foreign language) last year 45 (foreign language) growth (foreign language) growth (foreign language)

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Unidentified Analyst, [93]

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(foreign language) store?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [94]

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(foreign language) stores (foreign language)

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Unidentified Analyst, [95]

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Okay. And sales per square feet (foreign language) quarter (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [96]

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[767]

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Unidentified Analyst, [97]

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[767] Okay. But, if we look at the seasonally Q1 and Q3 the best quarter you have. And sir, we got around more than INR 900 for the last 3, 4 quarters, in Q1 and Q3 I'm telling. Q1 (foreign language) last year (foreign language) INR 992 (foreign language) sales per square feet.

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [98]

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(foreign language)

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Unidentified Analyst, [99]

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Which is also attributed to consumer -- weak consumer sentiments?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [100]

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(foreign language) sale price (foreign language) fit out.

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Unidentified Analyst, [101]

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Okay. On the winter inventory that you're telling that got stuck. So there is no optional rhythm to liquidate on -- in this winter only right? (foreign language) you liquidate?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [102]

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(foreign language) winter (foreign language) November (foreign language) season (foreign language)

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Unidentified Analyst, [103]

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(foreign language) effect (foreign language) September (foreign language) end (foreign language) Q2 (foreign language) end (foreign language) balance sheet (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [104]

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Third quarter (foreign language) end (foreign language)

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Unidentified Analyst, [105]

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Third quarter (foreign language) end (foreign language). Okay.

Payable days (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [106]

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(foreign language)

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Unidentified Company Representative, [107]

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42.

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [108]

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42 days.

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Unidentified Analyst, [109]

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42 days. Okay. And (foreign language) rent per square feet?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [110]

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43.

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Unidentified Analyst, [111]

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43. Okay. (foreign language) restatement (foreign language) rent cut (foreign language) other expense (foreign language)

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Unidentified Company Representative, [112]

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12.5.

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [113]

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12.5.

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Unidentified Analyst, [114]

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Sorry...

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [115]

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12.5.

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Unidentified Analyst, [116]

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Okay. Okay.

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [117]

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(foreign language) comparison (foreign language) result (foreign language) comparison (foreign language) difference (foreign language)

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Unidentified Analyst, [118]

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(foreign language) other expenses (foreign language) then that is only for rent, right?

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Unidentified Company Representative, [119]

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Correct. Correct.

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [120]

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(foreign language)

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Unidentified Analyst, [121]

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Okay. And (foreign language) balance sheet size almost double (foreign language) right? (foreign language) restatement (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [122]

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(foreign language)

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Operator [123]

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(Operator Instructions) The next question is from the line of [Mohan Senggani] from [ITI Capital].

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Unidentified Analyst, [124]

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My question was, even though the consumer sentiment was weak and then I think it is competitive intensity, do we see a consolidation in the sector in value retailing overall?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [125]

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(foreign language) problem (foreign language) time (foreign language) right time (foreign language) recover (foreign language) debt (foreign language) equity (foreign language) rate (foreign language) valuation (foreign language) consolidation (foreign language) valuation (foreign language)

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Unidentified Analyst, [126]

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(foreign language) right value (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [127]

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Right value (foreign language) losses (foreign language) locations (foreign language) sales (foreign language)

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Unidentified Analyst, [128]

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Got it, sir. Sir, and do you see third quarter (foreign language) inventory -- do see demand pickup by third quarter? Or this quarter is worked out almost, right?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [129]

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(foreign language) demand (foreign language) festival season (foreign language) demand pickup (foreign language)

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Operator [130]

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Next question is from [Paramjit Singh], who's an Individual Investor.

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Unidentified Participant, [131]

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Yes, sir, I have 2 questions. First is conservatively considering the consumer sentiment, what is the annual sales you foresee at this point of time for yourself? And second question is (foreign language) inorganic growth (foreign language) plan (foreign language) you have some cash and balance sheet. I mean, are you planning to do something inorganically also?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [132]

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(foreign language) conservative (foreign language) expect (foreign language) last year (foreign language) EBITDA margin (foreign language) last year (foreign language) maintain (foreign language) inorganic growth (foreign language) point (foreign language) valuation (foreign language) valuation (foreign language) time (foreign language) survive (foreign language) debt (foreign language) equity (foreign language) time (foreign language) decision (foreign language) valuation (foreign language) reasonable valuation (foreign language)

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Unidentified Participant, [133]

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But are you eyeing something, as in some maybe...

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [134]

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(foreign language) strategy (foreign language)

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Operator [135]

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(Operator Instructions) The next question is from the line of Rajiv Bharati from IndiaNivesh Securities.

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Rajiv Bharati, IndiaNivesh Securities Limited, Research Division - Senior Research Analyst [136]

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Sir, in terms of the employee costs. This quarter, you have INR 15.6 crore employee costs. And last time, you mentioned that you have removed some employees who were carrying ESOPs and were abandoned. So the INR 15.6 crore is the stated number. And does this include this year's appraisal stuff as well? Or this number is going to go up?

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [137]

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(foreign language) mix (foreign language) ESOP (foreign language) impact (foreign language) total number of employees (foreign language) aggressive approach (foreign language) conservative approach (foreign language) cost control (foreign language) mix of both (foreign language)

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Rajiv Bharati, IndiaNivesh Securities Limited, Research Division - Senior Research Analyst [138]

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Okay. And sir, in terms of competition (foreign language) area (foreign language) area (foreign language) operate (foreign language) close (foreign language) let's say, at the same rate at which they have opened. And that gives also the discount at which they sell their inventory will increase the pain period for some more time. And that it will pressurize the SSG the growth...

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [139]

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(foreign language) impact (foreign language) Guwahati one (foreign language) competition (foreign language) sale dip (foreign language) desperate (foreign language) Guwahati one (foreign language) sale (foreign language) impact (foreign language) almost (foreign language) competition (foreign language) customer consumption rate (foreign language)

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Rajiv Bharati, IndiaNivesh Securities Limited, Research Division - Senior Research Analyst [140]

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Sir, (foreign language) time (foreign language) inventory, liquidate (foreign language) impact (foreign language) in the sense, what I am implying is (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [141]

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(foreign language) impact

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Rajiv Bharati, IndiaNivesh Securities Limited, Research Division - Senior Research Analyst [142]

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Okay. And sir, would you be looking at, let's say, a very (foreign language) locations (foreign language) is there a competitor which you think is an ideal-size (foreign language) store (foreign language) and you'll absorb them if it's available? Are you looking at...

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [143]

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(foreign language) time exit (foreign language) plan (foreign language) entrepreneur (foreign language) temporary desperation (foreign language) desperate (foreign language) Vishal Mega Mart (foreign language) time (foreign language) time (foreign language) decision (foreign language) exit (foreign language) time (foreign language) time (foreign language) exit (foreign language) survive (foreign language) last (foreign language) problem (foreign language)

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Rajiv Bharati, IndiaNivesh Securities Limited, Research Division - Senior Research Analyst [144]

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Sir, this is across the board. (foreign language) geography (foreign language) means UP (foreign language)

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [145]

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(foreign language) segment (foreign language) value segment (foreign language)

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Operator [146]

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Thank you very much. That was the last question. I would now like to hand the conference back to the management team for closing comments.

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Ram Chandra Agarwal, V2 Retail Limited - Chairman & MD [147]

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Closing comments (foreign language) rumor (foreign language) company (foreign language) personally (foreign language) request (foreign language) company (foreign language) safe hands (foreign language) company (foreign language) team (foreign language) company (foreign language) temporarily (foreign language) long-term (foreign language) expect (foreign language) con call (foreign language) long term (foreign language) company top 3 retailer (foreign language) value segment (foreign language) fundamental (foreign language) processes (foreign language) strike (foreign language) V2 Retail (foreign language) prove (foreign language) times (foreign language) Yes (foreign language) strength (foreign language) as a company, as a team.

Thank you very much.

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Operator [148]

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Sure. Thank you very much.

On behalf of IndiaNivesh Securities, that concludes the conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.