Thank you very much. We will now begin the question -and-answer session. The first question is from the line of Shivam Gupta from Trinetra Asset Managers. Please proceed.

Hello, good evening and thank you for the opportunity. I wanted to ask.

Sir, can you please speak a little louder?

Am I audible?

Yes.

What was your same -store sales growth in Q1? Also, the growth mainly volume -led or higher product prices also contributed meaningfully?

Can you repeat the second question?

Like, the growth was mainly volume-led or it was higher product prices?

Okay. So, our SSSG in this quarter was 18% and which continued since last three quarters. So, 18% was our SSSG. And, there was a volume growth as well as ASP growth.

Okay. And my second is like, can you give some colour on the product category, like how did AC, cooler, refrigerator, mobile and television perform?

AC contributed to around 42% of our entire sales. And other cooling products we don't give any figure for coolers etc etera as these are small categories. And refrigerator contributed 15% to sales.

And how much of the older AC inventory is still left? Can also it can benefit continue in

Q2?

Yes, of course. July has been slightly hot. So, it is continuing in quarter 2 also. And we are at a comfortable inventory level of AC.

Okay, sir. That's it from my side. Thank you.

Thank you.

Thank you. The next question is from the line of Yash from Edelweiss Public. Please proceed.

Hi team, thank you for taking my questions. I hope I am audible?

Yes, you're audible.

Yeah, so I have three questions. So my first question is like you already mentioned the summer was delayed this time. So what was the run rate we ended June with, the Y -o-Y growth for June? And if the summer was delayed, how was the month of July for us? Is the summer really good in July for us or not?

July, I just spoke, summer is good in July. And it has remained relatively hotter month. So it is a good one. What else you wanted to know?

Run rate of June which was like proper Y-o-Y, the summer hit in June for us. So what was the run rate growth for June month?

No, actually all three months equally contributed to our top line.

Got it, got it. And another question is from OEM perspective, there has been a lot of raw material pressure, so has there been any change in the incentives or contribution OEM provide in the EMI schemes or any thing else in our part of the region or everything stays intact?

I don't think there was any meaningful change in strategy. It was the same , just like any other Q1, and there was no policy shift.

Got it, got it. And one last question, like now it has been a lot of time for some of our UP stores, around 19-20 stores has been running for last two years or more than two years. So can you just provide some gist on what is the sales per store or EBITDA margin difference between the Bihar store and UP store that has been running for last two years?

Yes, I'm sorry, actually we do not give this figure in our earnings call. So I can only tell

you the share of UP as a state. So , it has gone up from 13% Y -o-Y to 16% overall sales, which is quite robust. And even comparing from quarter -on-quarter also, it has gone up from 14% to 16%.

Got it. Thank you. That's all from my end.

Thank you.

Thank you. The next question is from the line of Nakul Gupta from Shikherjee Advisors. Please proceed.

Congratulations, sir for great set of numbers. I just have one question, like what has been the rationale for entering West Bengal even when we are just entering Madhya Pradesh? Like, in the past we have entered one state per year or so, but now in FY27, we are heading into two states. So how do you see that?

Nakul, it was a very strategic shift. Actually, we had not planned, that is also very true recently, but due to sudden political changes we are expecting quite a lot of growth coming in Bengal. So this was the only reason that we have started to expand in peripheral such cities like Siliguri, Asansol, Durgapur, etc etera, which are on the borders of Bihar. And definitely we will be testing waters in Bengal, and then only we will decide how further we can penetrate into Bengal.

Oh, that's great. That's great. Another question is like what has been the reason for slow growth in store opening in this quarter and what is the full year guidance for FY28 as well, if you can provide that, that will be great.

We have been adding around 30 stores -- not less than 30 stores every year. And again, I have already told in the earnings call that we'll be definitely doing more than 30 stores this year also. And if we take FY28, we'll definitely try to even further increase that run rate.

Okay, sir. Thank you so much for that.

Thank you.

Good luck for the future.

Thank you. The next question is from the line of Rakshit Desai from IIFL Capital. Please proceed.

We have been maintaining gross margins on a YoY basis. Even last year, we were at more than 10%. We were at a 15.3% gross margin. This year, due to some price hikes, we are able to take leverage of 50 bps. So, going ahead, I'd say that we'll definitely be between 15% and 16%.

Got it. My second question was how much was the volume and ASP growth for the quarter?

Volume growth was 19% and 8% ASP growth.

Got it. Thank you.

Thank you. The next question is from the line of Vaidik Bhafna from Monarch Networth. Please proceed.

Sir, can you share the SSSG, I mean region wise, I mean from Bihar what was our SSSG growth versus in Jharkhand and UP?

I just told another participant, actually we do not divulge our SSSG state -wise or region- wise. Overall SSSG was 18% and which has been which has continued since last three quarters.

Okay. And sir, second question would be on the product category wise, which product category are we seeing drastic increase in price as we, if suppose we see laptops or we see mobile phones. So, are we seeing major price hikes being taken by the OEMs in th ese categories?

Yes, there has been price hikes by the OEM for laptops, mobile. So in fact, ASP has gone up by 20-25% for mobiles and laptop as well. And it has bee n lower for air conditioners around 5% to 6%.

Got it, sir. And sir, I just wanted a guidance on sustainable OPM going forward. This quarter we achieved a 10.4% OPM. So what do you think would be our sustainable OPM for this year where our major store expansion would take place now and going forward as well?

Actually Vaidik, margins are dependent on quarterly performance, so margins will vary quarter to quarter. And this remains our good quarter, best quarter. So margins are there. But we will be definitely achieving around 9% to 10% of margin.

I told you that we give our guidance in investor presentation also that we'll be definitely delivering between 8% to 10%. And anything better than that is always welcome.

Okay, sir. So that's it from my side. Thank you, sir.

Thank you. The next question is from the line of Bharat Shah from BCS Capital. Please proceed.

Sinha sahab, namaskar.

Namaskar.

I didn't really have a question to ask, but I wanted to convey my compliments. Over years that I have observed Aditya Vision, very careful and disciplined way the business is being managed, how you have expanded from one geography to three, and I'm glad to see that the hunger to grow continues unabated by entry into MP and West Bengal in the current year. All of these while we've seen much larger and national competitors stumbling in many, many ways. Aditya Vision remains at a smaller scale, but a very prudent, wise, and disciplined execution of the business opportunity while maintaining growth as well as the hygiene of the balance sheet and the capital efficiency. So, sincere compliments, Sinha sahab.

Thank you so much, Bharat Bhai. It means a lot coming from you.

Thank you.

Thank you. The next question is from the line of Vaibhav Gupta from Bowhead. Please proceed.

Hi sir, congrats on a great set of numbers, sir. Just wanted to understand which categories were seeing the highest growth rates, be it AC or refrigerators or washers or TV, laptop, mobile? I understand there was a big component of ASP growth in mobiles an d laptops. So, broadly if you could give color which categories are seeing fast growth and which are seeing somewhat slowdown?

In this quarter Q1 actually AC contributes the largest, of course. Contribution was around 42% of overall sales with a growth of around 35% over last year.

Understood. And sir, what about refrigerators, washing machines, TV?

They were quite flattish type. It was between 1 0-12% growth in a refrigerator , washing

machine and panel.

Panels also saw 10% kind of growth only?

Yes, yes.

Understood, sir. That's all for from my side for now. Thank you.

Thank you.

Thank you. The next question is from the line of Prabhat Awasthi from Alturas Investments. Please proceed. Are you there, Mr. Awasthi?

Hi. Am I audible?

Yes, yes.

Yes. So, firstly congratulations for the good set of numbers. My question is with respect to seasonality, sir. AVL experience strong quarterly seasonality driven by Q1 and then in Q2 it drops significantly. So, what does the management think? Do we think that is there any way to cater this seasonality or reduce this impact of seasonality? What is your thought on it, sir?

You will have to understand one thing, Prabhat, that major categories which we deal in, like cooling products, it consists lot many things. It consists room air conditioners, commercial air conditioner along with that, refrigerators, deep freezers, commercial refrigerators. So, definitely this category, can only be very big during summer. So, seasonality has been there always throughout India, wherever there is a climate like this. Wherever climate is not there, of course, you know, it won't be sold there. But as you know, more and more geographies are experiencing hot temperatures. So, this always works well for us. Maybe in time to come, it will spill over to Q2 also. Then what I just said that June was quite good, quite hot this year. So, July, month of July was quite hot this year. So, maybe we expect that gradually where we are shifting, we see that maybe entire H1 which will be catering to this cooling product.

Yes. Actually, I get it, sir. I was just looking at numbers and I saw that, like it drops 50%- 52% with that quantum like it was seasonality. I was just trying to understand that , do we think that is there any way that we can manage this seasonality or reduce the quantum of it?

Well, I don't think so, because you cannot refuse the business that comes in Q1. Rather,

the market is so competitive that we have to take all the advantage of the weather conditions.

Works. No worries. And second thing, sir, if you could help me to understand that what would be the like what is our EBITDA margin guidance for the longer period, like two, three years in the next three years, what you are thinking that how does our EBITDA margin look like?

We have already given the guidance that our EBITDA margin will be between 8% to 10%. And it will not be comparable quarter over quarter. But whatever I'm saying is your annual figure of 8% to 10%, however we have seen that we have been able to cling on to more than 9%.

Okay, okay. Get it, sir. Thank you.

Thank you.

The next question is from the line of Jitaksh Gupta from Tikri Investments. Please proceed.

Yes, am I audible, sir?

Yes, yes, go ahead.

Yes. Hi, sir. Thank you for the opportunity. I have two questions. So first are how many stores are we targeting in West Bengal? And what is the market size do you see in the entire West Bengal, and what will be a store size in West Bengal especially? Average store size?

Okay. That's all?

And the second question is bookkeeping question. So why did the depreciation go up on quarter-on-quarter basis because we only opened three stores, so just wanted to understand this?

Okay. We are planning, actually, we had taken this decision to open in Bengal because of certain redevelopments. And we are hoping to add 6 to 10 stores in this financial year. And our typically our store size will be between 4,000 to 6,000 square feet. And depreciation, I'm afraid , it includes amortization of rent also. So, you are taking out that factor. So, it has not gone up that much. And more actually, there are a lot of working progress going on, where we have to provide rent also.

Initially, it is work is in progress in Indore, Ujjain, Bhopal. And we are planning to open later on in Jabalpur, Gwalior, etcetera. So, you can safely take it as 6 to 10 stores will be opening in Madhya Pradesh.

So, will it be this financial year or?

This financial year.

Next year as well.

This financial year.

Okay, sir. Understood, sir. Thank you so much.

Thank you. The next question is from the line of Palaash from Investec. Please proceed.

Yes, hi, sir. Is my voice audible?

Yes. Please go ahead.

So, sir, we are entering new geographies. So, do we think our other expenses, mainly A&P spends, would increase significantly this year?

Of course, other expenses depend on, in fact, your volume also, sale also. So, more you sell, more freight is required, more credit card commission is required, more D BD's (Dealer Buy Down) are required. So, definitely it is related with the sale. So, operating expenses, I don't expect that it will go up significantly. But it will go up commensurate to the sales.

Okay, got it. And sir, second question is, what is your plan towards Chhattisgarh? How many stores are we looking to add in FY27?

Again, in Chhattisgarh also, we have already opened 3, work in progress is in around 4 -5 stores. So, let us keep it at 10 to 12 stores in Chhattisgarh.

10 to 12 stores this financial year?

Yes, I'm talking about this financial year.

Yes, UP we have not guided for that, what number you are saying, but definitely we have been improving, but we never in fact, give a guidance in such a way. We always say that we'll be opening more than 30 stores. And if we do it better, I'm sure you are goin g to be happy.

Yes, sir. Thank you, sir.

Okay.

Thank you. The next question is from the line of Devanshi Kamdar from Axis Capital. Please proceed.

Yes, hi. Am I audible?

Yes, yes. Very much, Devanshi.

Yes, so I just wanted to understand how is our Chhattisgarh EBITDA looking like? Are we on the path of break-even and what is the timeline for that? Since we entered last year.

It has been only for two months stores had been opened. So, I don't think it is good for me to comment on any EBITDA or anything. So, let's wait. But they are doing well.

Okay. And since we are planning our new entry in MP and West Bengal over the next 12 to 18 months, I assume, would that be EBITDA dilutive in any sort, would it still come within our 8% to 10% guidance?

No, no, we'll stick to this guidance, as I told you. And what we have experienced in past also, entering a new state doesn't dilute EBITDA for us.

Okay, understood. And if you could, just lastly, if you could talk more about our strategy for West Bengal and Madhya Pradesh, since these are new geographies for us.

Madhya Pradesh offers a very good potential, especially in the towns of town of Indore, Ujjain, Bhopal is another very good city. If you go through north of Madhya Pradesh, Gwalior is very good market. This side, towards eastern, you will come to Jabalpur, that is also very good, even Katni, Itarsi, these are the big cities. These they will also offer us a good opportunity. So, overall, I think it is going to do well.

We don't measure it for any quarter-by-quarter, Devanshi.

Right, right. Okay, sir.

Okay, thank you.

Yes.

Thank you. Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand the conference over to the management for closing comments. Over to you.

Thank you very much for participating in Aditya Vision's Q1 Earnings Conference Call. Be safe and healthy, All the best.

Thank you. On behalf of Axis Capital, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.