Renaissance Global (NSE:RGL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Renaissance Global Limited discussion on Q1 FY twenty seven earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Ms. Shweta from Centrum Broking. Thank you, and over to you. Thank you, Aranda. Good day, everyone, and thank you for joining us on the Renaissance Global q one f y twenty seven earnings conference call.

0:49 We have with us mister Sumit Shah, chairman and global CEO, miss Darshil Shah, managing director, and mister Jabesh Banderi, manager of corporate strategy. We would like to begin the call with a brief opening remarks from the management followed by a question and answer session. Now I would like to invite mister Sumith Shah to make his opening remarks. Over to you, sir. Thank you very much. Good afternoon, everyone, and thank you for joining us for Renaissance Global's q one f I twenty seven earnings call. I'm pleased to share that we have commenced f y twenty seven with strong business momentum supported by healthy revenue growth, improved profitability, and operating leverage.

1:35 During the quarter, our revenue grew by 30% year over year to 690 crores, while EBITDA increased by 22% to 50 crores. Profit after tax grew sharply at 288 percent year over year to 26 cores. This performance reflects disciplined execution across the business and reinforces our confidence in the strategic transformation of Renaissance Global from a traditional jewelry manufacturer into a global high margin branded jewelry platform. Our portfolio of three differentiated direct to consumer brands, Grande dossier, with clarity, and enchanted Disney fine jewelry provides us with a strong platform to participate in the large and attractive US luxury direct to consumer market.

2:28 Jean D'Auste continues to be an important growth driver with our... Within our branded portfolio, Positioned at the luxury end of the lab grown diamond jewelry market, we are scaling the brand through an integrated digital and physical retail strategy. Following the encouraging response to our New York store and the opening of our San Francisco store location in July 2026, we we currently operate three Jean Lucie retail stores, and during FY '27, we intend to add four more locations. We believe this measured retail expansion will deepen Jean Busset's presence across important luxury markets in The US, enhance customer engagement, and over time, increase the contribution of our higher direct to consumer margin to revenue, profitability, and earnings.

3:23 With clarity, our digital first fine jewelry brand also continues to demonstrate strong momentum. The brand is benefiting from its established online platform, expanding customer reach, and technology led operating model. Finally, our licensed brand, Enchanted Disney Fine Jewelry, is progressing well too, supported by a renewed strategic focus and healthy growth across key channels. Together, these three brands give us a differentiated value proposition across customer segments and provide multiple avenues for long term growth. Alongside the expansion of our branded portfolio, working capital optimization and cash flow are key priorities for us in FY twenty seven.

4:10 The initiatives currently underway are expected to deliver working capital improvements of approximately 250 crores in the current financial year and generate cash flow from operations of more than 300 crores during the year. We expect these measures to strengthen our balance sheet, improve capital efficiency, and drive meaningful improvement in our return ratios. Looking ahead, our strategic direction remains clear. We remain committed to achieving 1,000 crores of direct to consumer revenue by FY twenty nine with an operating margin of at least 15% from this segment. As a contribution from our higher margin branded business increases, we expect the benefit from structural operating leverage.

5:01 This should significantly expand our EBITDA and has a potential to drive multifold increase in the company's overall earnings over the coming years. We therefore enter the remainder of FY twenty seven with confidence. Our growing portfolio of global brands, disciplined retail expansion strategy, focus on profitability, and continued emphasis on cash flows and enhancement positions Renaissance Global well to deliver sustainable and profitable growth. Our objective remains to build a stronger, more valuable, and increasingly brand led global jewelry business while creating long term value for all our our stakeholders. With that, I'll now hand over the call to Darshan to discuss operational and financial performance in greater detail. Thank you.

5:51 Thank you, Sumit, and good afternoon, everyone. I will take you through the key financial and operational highlights for the fourth quarter of FY 'twenty seven. We have started the year on a strong note with healthy growth across the business, a sharp improvement in profitability and continued progress on working capital efficiency. Starting with revenue. Our revenue excluding bullion sale grew by 30% year on year to INR $6.90 crore compared with INR $5.30 crore in Q1 FY 'twenty six. Importantly, the underlying growth was broad based with healthy contributions from our brand and customer brand businesses. Coming specifically to our own brand, revenue increased by 29% year on year to reach INR 89 crores from INR 69 crores in the corresponding quarter last year.

6:47 The continued growth of our own brand is particularly encouraging as we progressively increase the contribution of our higher margin direct to consumer business to the overall portfolio. Moving to EBITDA. EBITDA increased by 22% year on year to reach 50 crores compared with 41 crores in Q1 FY twenty six. EBITDA from owned brands grew to 11.5% from 10% in Q1 FY twenty six. Profit after tax increased by approximately 280% year on year to reach 25.6 crores compared with 6.6 crores in Q1 FY 'twenty six.

7:34 While the previous year quarter has included a restructuring cost, the current quarter also demonstrates a meaningful improvement in the underlying profitability of the business. Profit before exceptional items grew by 40% year on year to 29.74, reflecting the strength of the operating performance. Another important area of progress during the quarter has been working capital management. Our working capital efficiency improved meaningfully during the quarter with working capital days reducing to two hundred and twenty days from two hundred and fifty three days in Q1 FY twenty six, representing an improvement of thirty three days year on year. This is an important milestone for us and reflects the initiatives we've been undertaking across inventory, receivables and overall capital efficiency.

8:24 As Sumit mentioned, working capital optimization and operational cash flow generation remain key priorities for FY 'twenty seven, and we expect further progress through the course of the year. Overall, Q1 FY 'twenty seven reflects a healthy start to the year with 30% revenue growth, strong growth in own brand and 47% growth in own brand EBITDA, a sharp increase in PAT and EPS and meaningful reduction in working capital days. We believe these trends provide a strong foundation as we continue to scale our branded and B2C businesses, while maintaining a disciplined focus on profitability, cash flow generation and return ratio. With that, we can now move on to the question and answer session. Thank you.

9:13 Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone phone. If you wish to remove yourself from the question queue, please press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ashok Shah from Columbia Investo family office. Please go ahead.

10:01 Thanks for taking my question. Sir, if first quarter was excellent, could we extrapolate any similar or still growth will come or more growth will come during the year? Yeah. Thank you for your question. So, you know, we've begun the year with very strong revenue and bottom line momentum. We expect to continue this momentum to continue through the course of the year. As previously communicated, you know, we plan to exit certain business verticals and lines which are below cost of capital to optimize inventory. So while revenue growth may not continue at this momentum, we expect bottom line to be equal to or greater than the current momentum that we've experienced after restructuring charges.

11:00 So but secondly, sir, about major business in export is to USA. Just so did we get any tariff refund or something like that? Not yet. You know, we are we are in the process of applying for tariff refunds, and, you know, we do expect to get some refunds for tariffs. I think we will have to obviously share some of those refunds with our customers as well. So, you know, we will... I think we should know more in the coming quarter. So what could be that amount? Approximate idea or or rough idea? We we don't have the data yet. We are still in the process of getting the application together and putting it through. So we'll be able to provide more details in the coming quarters.

11:47 Or if I ask, definitely, how much are... I was paid during this salary increase? So we're we're... We are not ready to share the numbers yet. I would request you to wait for one more quarter before we're able to share these numbers. Okay. Thank you. And best wishes for our current year of next three quarters. Thank you. Thank you. Thank you. The next question is from the line of Manpreet Arora from Arora Wealth Advisors. Please go ahead. Yeah. Thank you, and good afternoon. Sir, first question is on the, you know, the initiatives you talked about, reducing working capital by $2.50 crores. Now if you can, you know, drill down a bit more on the initiatives. I think you mentioned about existing initiatives optimizing and and to... If you can provide a little more details.

12:41 Yeah. Yeah. So I think the the the working capital initiatives are focused around around two two areas. One is inventory reduction and, you know, sort of receivables as well. You know, I think that over the last twenty four months, we've restructured the organization and reduced operating expenses by about 45 crores annually. With this reduction in manufacturing capacity, it will align with the lab grown diamond realities. We're now in a position to exit certain lines of businesses where, you know, consignment days are they are very high or receivable days are longer. So we made a strategic decision to exit certain customers, which would actually lead to meaningful reduction in working capital.

13:34 While doing that, we've we've sort of, you know, ensured that this should not have any impact on on our bottom line. These would be businesses where, you know, the cost of capital would be higher than the EBITDA generated. So these will be low quality businesses which we plan to exit, and I think that would largely result in working capital reductions during the course of FY '27. We expect to fully realize these benefits by the end of the current financial year. Okay. Great. Great. So just to understand you, right, we may not see a lot of revenue growth this year, but we'll probably see margin expansion and good better cash generation with you. Is that the right way? Yes.

14:23 Our our expectation is to... That bottom line should grow more than 30% for the year. Revenue growth may be muted because, you know, as as stated earlier, we are exiting certain unprofitable lines of businesses. And, you know, on an annualized basis, this will result in an approximately 3 to 400 crore reduction in revenue. The customers that we are exiting would would result in a 300 to 400 crore reduction in revenue. We don't expect this to have a meaningful impact to our bottom line. In fact, we're we're projecting greater than 30% growth for our bottom line for the current year. Right. So which segment will this reduction happen in terms of customer brand?... The customer brand.

15:11 Absolutely. Yes. The, you know, the licensed brands and the own brands are, you know, high margin businesses. The customer brand segments have, you know, certain certain areas where the working capital requirement is very high. So we've we've focused on these specific set of customers where, you know, we would like to reduce exposure and reduce working capital working capital involvement. And I think it's, you know, it's a good time to sort of exit these businesses because, you know, raw material prices have gone up. So the exit cost from inventory is also almost negligible or zero as, you know, the value of the inventory would have gone up due to the fact that the gold... That the price of gold has... And silver has gone up meaningfully.

15:58 Alright. So my next question... Thank you for that. So next question is on the license brand. Now, you know, we have seen that over FY twenty four, twenty five, twenty six, the revenues have come down and also our EBITDA. Similarly, on the margins, you know, on FY twenty twenty four, we were at 15.5%, then it came down to 14.5 now, 13 in f y twenty six. In in this quarter, we are now 10.9%. So what is really happening in the license branch vertical? Yeah. So on on the licensed brand segment, you know, we were operating a very wide portfolio of brands. And, you know, even within this portfolio, what we've done is we've rationalized some of the licenses, and the focus going forward is going to be primarily on the Disney relationship and the Disney license.

16:53 So there are obviously some exit costs here where we should already taken about a year or so ago. From this point, we expect the revenue to grow because of the focus on Disney, which was our license... Largest licensing partnership. We expect this, you know, business to grow from here, from this space, and also improve back in profitability back to the 14, 15% that we were seeing earlier. So I think there there has been a process of elimination of unprofitable licenses that we no longer sell. I think, you know, as as emphasized in my opening remarks, I think that, you know, while the company is growing growing at a healthy pace, I think the focus now is also on profitable growth and improving the bottom line margin.

17:41 So as a conscious decision, we decided to exit certain licenses and focus really on a few key licenses, which has resulted in muted growth. However, we're seeing strong momentum now, and the the the sales should pick up in the license brand segment going forward. Alright. Great. So so just to summarize that, you know, do we have licenses from Disney, Marvel, NFL, etcetera? And now that we are rationalizing that and primarily Disney will be the major license. Yeah. Yes. I mean, Disney Disney sort of encompasses multiple licenses, Star Wars Yeah. And Disney. But we're we're no longer sort of pursuing NFL and Netflix and Harry Potter and all those licenses. It's going to be primarily focused around, you know, the house of Disney and their brands.

18:39 Okay. Great. And, sir, if you can call out on our B two C brands, our own brand, you know, we had enough previous... All the presentation, had a lot of brands mentioned there, including, you know, with Clarity, Lily Lily, and then Hallmark, and then Renaissance. But some of these, I... If I go to... For example, if I go to Hallmark, everything's sold out, you know, Renaissance, most of that. So which are the most active brands that we are pursuing? It... Hallmark Hallmark is not an own brand. Hallmark was was a license... Is a licensing relationship, and, you know, it's one of the ones that we've we've rationalized.

19:26 Even within the own brands, we are focusing on two major brands, Jean Dusset and with Clarity, which comprise the bulk of our revenue. I mean, we still own, you know, Jewelry as well as Everyday Elegance, but they are much smaller. The two growth brands, I think, you know, part of the efficiency drive that we've really focused on is zero in on the brands that are meaningful. And, you know, as, again, highlighted in my opening remarks, the three brands that will be most meaningful will be Jean Lucie with Clarity and in the licensing segment Disney. And, you know, these three and the renewed strategic focus on these brands will allow us to expand profitability and, you know, grow profitability going forward. So the focus really will be on these three power brands, which comprise a bulk of our revenue in any case.

20:19 Okay. Sure. So... And on the next question on the round of say, investment, I think we have a 38.7% stake. Now in f y... In one of our earlier presentations, we have mentioned that in f y twenty four, you know, Jean Duce had 85 crores of revenue, while the the flagship store, Hollywood, I think, had 25 crores of revenue out of that. So so the assumption is the remaining was, you know, is other revenue coming from other Online. Online. Okay. E com. And now... So can... Is it possible to share the number of the revenue of the loan to sell revenue for FY '25 and '26?

21:10 How much? So for for FY '20 for FY '26, I think the brand after acquisition grew about 30%. And, you know, I think the... We've we've sort of clearly laid out in our presentation that each store as we add... Should add between twenty five and thirty five rows of sales. Currently, we have three operational stores. The last store opened in, you know, in San Francisco at the end of July, and there is four more expected to be opened during the course of the year. So, you know, as as the stores ramp up, so will the revenue increase. And there is a corresponding impact of increase in ecommerce sales as stores open because as awareness and visibility increases in a certain geographic area, so does the sales.

22:01 Okay. Okay. Okay. So there's 25 to 30 crores of store sales with the store level economics. Like, our share of title is 38. No. No. We we currently own 65% of John Dusse. We had initially made an investment to buy 38%, and we had an option to increase it to 65%, which we which we exercise. So currently, we're consolidating the entire... It's it's it's a, you know, sort of controlled subsidiary. The revenues are recognized in full, and, you know, the the share that we don't own is sort of passed to minority interest in the PNL. Thank you for the clarification. I was under the incorrect impression of the state.

22:50 And on the brand side, sir, the Disney brand, are we the exclusive licensee for you? Is that the sale? For jewelry. Yes. For fine jewelry. Okay. Thanks a lot for answering my questions. I'll go back in queue and all of this. Thank you. Thank you. The next question is from the line of from Capital. Please go ahead. Sure. Thanks for giving this opportunity. I just had a couple of questions. So first is around the consolidated margins that we have. So we've observed that there's a reduction in margins, gross profit margin, EBITDA margin. Is this an account of bullion sales?

23:35 And if yes, will this continue to move forward? Yes. So, yes, I think that, you know, in in the near future, the bullion sales will continue, you know, I think because of the tariff mitigation strategies, we're we're subcontracting some of our manufacturing in The US and and in The Middle East. So the bullion sales... I mean, once you exclude the bullion sales, you know, the margins once normalized, you know, have seen a little bit of a dip. I think some of this is obviously attributed to a little bit of exit cost as indicated in some of our businesses. So, you know, I think there may be a minor dip during the year, but our margins year over year are down from 7.7 to 7.2%.

24:24 And I think this would be comparable. And like for like, this reduction is on account of the strategic choices that we've made to exit exit certain businesses, which, you know, we've communicated earlier. Got it. Got it. And the second question is also related to that. So if I understand correctly, our strategy is to reduce the b to b business, that is our customer's business, and increase more towards b to c. Now this year, if we look at the 05/26, there was a increase, and then one quarter one, there's an increase of 34% ROI in this segment. So do we... Are we looking at reducing it from next quarter onwards or where do we see this degrowth would start from?

25:11 Yeah. I think the the the degrowth should start. So, you know, on a sequential basis, the revenue should go down in q two as well, and it will continue to sort of, you know, taper off in q three and q four. I think, sequentially, there will be there will there will be reduction in in the following quarter. But I think, you know, difficult to sort of time time the exit because, you know, the way we've chosen to exit some of these customers is since there is some amount of consignment involved is we're letting the inventory sell down. So difficult to time time it exactly, but I would say that the best way to think about it is that we... The the revenue run rate will be lower by 400 crores at the end of the current financial year.

25:58 You know, it will kind of go down sequentially during the course of the year. Got it. Got it. So thanks for this, and that's all from us. Thank you. Thank you. Reminder for all participants, please press star and 1 to ask a question. Participants who would like to ask a question, please press star and 1. The next question is from the line of from Forty Seven Alpha Capital. Please go ahead. Hello. Good afternoon. Am I am I audible? Yes. Go ahead. Yes. Yeah. Congratulations on good setup number. I have two or three questions. So can you tell tell me that what is the breaking figure of John the Fish stores, like, store wise?

26:48 Yeah. So I think, you know, currently, we've seen extremely strong momentum once we've opened the store. So, you know, obviously, you know, we inherited the the Los Angeles store, you know, when we made the acquisition. The New York store was opened in November of last year. And I think the the store sort of became profitable January onwards. So, you know, again, short history, the, you know, data set is quite limited. And currently, the way the San Francisco store is opened and the momentum that we're seeing, we expect the store to be profitable from month two or month three onwards. And, you know, currently, based on the unit economics, we see a payback of less than one year for the JV stores. So, you know, we're we're very optimistic and, you know, obviously, we're watching the numbers very carefully as we ramp up the store rollout of Jean Lucie meaningfully. But currently, as we see it, based on limited dataset, usually, the store is profitable in the second or the third month. And currently, as we see it, the payback period is less than one year, which is, you know, excellent numbers from our perspective and, you know, which is why, you know, the the entire company is kind of focused around the rollout of the Jean Lucie stores.

28:10 And any further acquisition for the brand... Branch, if you have any in mind? Yes. You know, we're we're currently, you know, constantly evaluating new brand acquisitions. You know, I think since it's a clear strategy for us to increase the branded space, you know, nothing to report yet. But, you know, we are we are clear... Clearly, you know, since the past, you know, six or seven years, we've done three acquisitions and all of our three major brands that our current focus is on has been added to the company via acquisition. So, you know, if something, you know, attractive comes along, we are open to to acquisitions, especially in the current year given the fact that we expect over 300 crores of cash flow from operations.

28:58 This allows us some financial flexibility to acquire new brands. So we're open. Nothing to report yet, but, you know, when there is something to report, we'll we'll definitely announce it. Okay. And one last question. And so as you said that you are expecting clear curve of operating cash flow, so how exactly are we targeting that 300 crores? Yeah. So I think that, you know, as as we spelled out in our in our presentation, we plan to reduce working capital by about 250 crores between reduction in inventory and reduction in in receivables. We've identified certain certain customers that, you know, are... Where where working capital involved is below the cost of capital, and we've strategically made a decision to improve the quality of the business and meaningfully exit certain customers and relationships where, you know, the margins are low and the working capital intensity is high. So the decisions have already been sort of set in motion, and we expect to realize these working capital benefits during the course of FY '27.

30:07 Okay. That's it from my 35 end question. I'll jump back to queue. Thank you very much. Thank you. The next question is from the line of Kushi Jen from Securities Limited Institutional. Please go ahead. Yeah. Hi. Thank you for the opportunity and congratulation on the start of the 05/27. Just a question on the finance cost side. So we see there have been a, like, a good improvement in the balance sheet, but the q one q one finance cost remain broadly flat on more on a basis. So assuming the targeted working capital of this is actually good, When should we start seeing a meaningful decline in the interest expense?

30:56 And what could be the reasonable, like, 05/27 finance cost expectation? Yeah. So I think that, you know, we we expect to obviously, you know, realize these working capital benefits through the course of this year. You know, I think so. It would be difficult to to pinpoint exactly, you know, the cash conversion to these. You know, what is sort of certain is that we definitely expect to realize these benefits by the end of the current financial year. I think you should structurally see a, you know, sort of improvement in operating cash flow during sequentially during the course of this year. So while we don't have exact numbers for, you know, finance costs quarter on quarter, but, you know, our our expectation is that we will end the year with meaningfully lower lower net debt as compared to what we did one year ago.

31:58 Okay. Perfect. Yeah. So on the With Clarity side, could you provide some more insight on With Clarity's profitability and revenue also? Yeah. So I think, you know, with Clarity, it's currently at a revenue run rate of about 220 odd crores. And, you know, it's growing at a healthy clip of about 20% also. You know, it's it's sort of a digital first brand, and, you know, the focus really is on growing this brand brand digitally. Currently, we are seeing, you know, 20% growth, and I think the profitability will be in line with sort of our segment average of about 12 to 13%. You know, I think that with our own brand segment, we expect this, you know, profitability to increase meaningfully over time as we get operating leverage because a lot of our fixed overhead has already been absorbed.

32:54 You know, the technology team, cataloging team, digital marketing team, there's a sort of, obviously, substantial team working on this. So, you know, as the current margins are, you know, 11 to 13% for this brand, We expect that to to scale as our operating cost of scale. Both with Clarity and John Boucher, you know, enjoy 60 to 65% gross margins. So I think, you know, as these gross margins flow through and, you know, growth occurs, we expect the profitability profitability to increase over time for our day to consumer segment. Perfect. Thank you so much for that, and all the best for the next quarter and the year. Thank you. Thank you.

33:41 The next question is from the line of Prateek Chaudhry from Samartha Investment Advisors LLC. Please go ahead. Congrats on a good set of numbers, sir. I have a few set of questions. First one, there's a pretty big forex loss sitting in your p and l for the quarter. It's almost about 13 crores. If you can, you know, share your thoughts on whether whether we can see a meaningful reduction in this number and going ahead and yeah. Darshan, do you wanna take that? Yeah. So I think the ForEx loss is clearly due to the sort of the depreciation in the currency.

34:28 And, you know, while we are hedged as far as our rupee expenditures are concerned, a large part of our sort of working capital is dollar denominated, which means that there's a natural hedge. So I think it's it's all just, you know, on the accounting front or an exchange loss going through both on the revenue as well as on the expense side. So I think as... I mean, hopefully, if the currency stabilizes around this level, we should see a meaningful reduction in the foreign exchange loss. Okay. And then going forward, you know, in in your presentation and remarks, you can maybe state EBITDA margins, net of these ForEx losses.

35:19 Sure. We we can explore that. We try to explore. Yeah. And and for the other income, around an 8 or a 9 crore number that was there for the quarter, were there any one offs or this is largely in the normal course of business, the other income we were in this quarter? No. There's nothing there's nothing exceptional to be reported there. I think it is just it is just a normal course of it. And any any inventory losses we suffered during the quarter because of the direction in the metal prices that we saw from q four end to q one end? No. No. There was no inventory loss on our end. And as far as the metal price fluctuations are concerned, we are hedged on that front as well as far as our long term commitment to our customers is concerned. So even on that front, there's no no major loss that goes to the balance sheet.

36:17 Yes. So I think while, you know, there there is... While there is no loss on the the metal front, you know, there there is a slight bit bit of margin dips due to exiting certain customer lines, you know, as we we attempt to, you know, reduce our inventory and receivable during the course of the year. You know, slight dip in margin can also be attributed to some of the exit costs as we're, you know, attempting to to reduce our inventory and receivable during the course of the year. So while there is no loss due to metal price increases, there is a little bit of working capital loss flowing through the p and l as we sort of reduce our working capital. Right.

37:03 And just final question on joint venture. What are your store expansion plans for FY '28? And, also, will you look to... Or is there an optionality to increase your shareholding above 65% in the next few years? Yeah. So I think, you know, currently, our business plan is to get to seven stores by the end of the current financial year. And then the plan would be to add six more stores in the following year. Currently, that's the plan for '27 and '28. And, you know, the the option to increase increase our share of Jean Dufry would exist if the company needed more investment. So, you know, it's something that we would obviously have to explore.

37:59 Currently, that's not something that has been discussed at the board level. So for... So maybe for your store expansion plan in FY '28, you might... I mean, that investment might become due, you know, or... So so is it possible that that is when these things could get discussed? Or... Yes. Yes. Yes. Okay. Okay. Think once we once... You know, we we did an initial investment of $6,500,000. And I think that, you know, as the fund utilization and retail earnings of this is discussed by the board, I mean, if there's additional need of funds, I mean, we would obviously be willing to to invest more and increase the stake. But again, you know, it's not something that has been discussed with the board of Jean Lucie and, you know, having sort of a third party investor, that's something we will discuss with the board of the company.

38:59 Great, sir. Great numbers, sir, and and all all the best for the future. Thank you. Thank you. Thank you. Reminder for all participants, please press star and 1 to ask a question. Participants who would like to ask a question may press star and 1. The next question is from the line of from Aurora Wealth Advisors, a follow-up question. Please go ahead. Yeah. Thank you for the follow-up. So you highlighted the goal of reaching thousand crores from d two c by FY twenty nine. Now just to understand how do we... So we have our own brands which are d two c, and then we have licensed brands which are b two b and b two c.

39:53 So when we say b b two c revenue, we're saying b two c from our own brand and b two c as licensed brands. Are these the two that we're clubbing together to pay a thousand crores from b two c? Yeah. So currently, our our direct to consumer revenues are forecast to be about 375 crores from our own brands and about 125 crores from the licensed brands. So the base today is around 500 crores for the current year. And our expectation because the licensing business has a direct to consumer as well as the b to b angle. So our plan is that the direct to consumer revenue, which would be around 500 crores this year for that number to be about...

40:42 Our our goal is to get to a thousand crores by FY twenty nine. Okay. Sir, I'm not... Going forward, you know, what... So the customer segment that we are present, like, is is on the luxury and accessible side, and we we want to grow primarily on the luxury side. Is is that how should we should see, or we are planning to target both the customer segment? And also, if you can, you know, talk a bit about the competitive dynamics of this space. So... Sorry. I I didn't really follow your question. If you could just elaborate on the first part of your question. Yeah. So going forward, we'll have focus be more on the luxury side of the customer segment.

41:31 You know, we only present across both luxury and accessible Okay. You know, daily... I think, you know, we're we're primarily in the fine jewelry space. You know, having said that, you know, we do sell a lot of silver jewelry as well. But, you know, primarily started with diamonds, lab diamonds, and gemstones. So I I don't think that we are we are seeing sort of a shift in the customer segments because, you know, there we are really targeting as, you know, sort of an OEM manufacturer for retailers and brands. And, you know, we we try to sort of create white space analysis for our customers and present something that fit their brand. For our own brands, you know, we we sort of have a three tiered approach. Right? The licensed brands have an average order value of around $400.

42:20 For with Clarity, it's about $3,000, and for Jean Lucie, it's $8,000. So the three brands that we have target very three different tiers of customer segments, and that's how we kind of have structured our licensed and own brands segment. On the customer brand segment, we operate through the value value spectrum from, you know, $50 all the way to $3,000. Okay. Thank you very much. Thank you. The next question is from the line of. Please go ahead. Your line has been unmuted. Please go ahead., your line has been unmuted. Please go ahead.

43:10 Ladies and gentlemen, the line for has dropped. So that was the last question for today. I now hand the conference over to the management for closing remarks. Over to you. Thank you, everyone, for participating in our conference call today. We thank you for joining us and your interest in Renaissance Global. Look forward to seeing you all on our next earnings call. Thank you. On behalf of Centrum Broking, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.