Good afternoon, directors, members, and auditors. I hope everyone can hear me clearly and see us also. Yeah, David, can you confirm please?
Yes, I can hear and see you clearly.
Thank you.
We can hear.
Good afternoon, directors, members, and auditors. I, Dhiraj Kumar Maggo, Company Secretary, Timex Group India Limited, welcome you all to the 37th Annual Meeting of the company. I will take few moments to explain the details for this meeting. As per Article 75 of the articles of association of the company, David Thomas Payne will chair the meeting. In accordance with all the applicable provisions of the Companies Act and the circulars issued by the Ministry of Corporate Affairs and Securities and Exchange Board of India, the companies are allowed to conduct the AGMs through VC or other audio-visual means, instead of having the physical presence of all the members. Accordingly, the company has scheduled this 37th AGM of the company through VC and other audio-visual means. The members who are attending this meeting through VC or AVM, they will be counted for the bubble of quorum for this meeting.
At present, I can see the quorum is present for this meeting. All the members are kept on mute by default to avoid any background noise and in order to ensure smooth and seamless conduct of the meeting. Once the question and answer session starts, the names of the shareholders shall be announced who have registered themselves as speakers to enable them to speak at the meeting. The speaker shareholders will thereafter be unmuted to speak. In order to give fair chance to all the speaker shareholders, I request all the speakers to conclude their speech within two minutes. The next shareholder waiting in the queue will be asked to join in and speak.
Once the connectivity improves and if the time permits, he will be called again to speak, after the other shareholder. The shareholders who have already sent their queries through email in advance will also be responded during the AGM upon consideration of the relevancy of their queries. Now I request the chairman to proceed with the meeting.
Thank you, Dhiraj. Good afternoon, ladies and gentlemen. I am delighted to welcome you all to the 37th Annual General Meeting of Timex Group India Limited, being held through audio-visual means. The requisite quorum is present at this AGM, and I declare the meeting to order. Let me first introduce my colleagues on the board who are joining us from various locations. Mr. Deepak Chhabra, Managing Director, along with Mr. Amit Jain, CFO, and Mr. Dhiraj Kumar Maggo, Company Secretary, join us from the company's office in Noida. Ms. Meeta Makhan, Independent Director and Chairperson, Audit Committee, joins us from her residence in Delhi. Mr. Sanjeev Kumar, Independent Director and Chairman, Nomination and Remuneration Committee, joins us from his residence in Ranchi. Ms. Dhanashree Bhat, Independent Director and Chairperson, Stakeholders Relationship Committee, could not join us due to her personal exigency.
Ms. Meeta Makhan has been authorized on her behalf to answer shareholders' queries. Mr. Marco Zambianchi, Non-Executive Director, could not join us due to his personal exigency. I would like to mention that Mr. Pramod Shukla, Partner, Deloitte Haskins & Sells, the statutory auditors of your company, is present in this meeting. I would also like to mention that Mr. Neelesh Jain, Secretarial Auditor of your company is also present. This meeting is duly constituted. All feasible efforts under the present circumstances have been made so as to enable you to participate and vote on the items being considered in this meeting. Dear members, I trust by now you've had the opportunity to review the notice of this meeting, directors report, and annual accounts for the year ended March 31st, 2025. With your permission, I shall take them as read.
I am pleased to share that for the financial year, 2024/2025 has been another strong year for the company. The revenue from operations grew by 28%, while profit before tax rose by 54% compared to the prior year. During the year, the business witnessed accelerated growth driven by the long-term strategic initiatives implemented over the past few years. This momentum was fueled by a focused strategy to expand Timex Group brands while leveraging the strong presence of our fashion brands, offering more aspirational domestic and international products, and enhancing engagement through compelling storytelling and dynamic marketing initiatives. We strengthened our presence across all channels and points of sale, improved the productivity of existing outlets, and benefited from the continued support and expertise of our parent company, which brings over 170 years of global experience in watch design, manufacturing, and sales.
The company pursued a balanced approach to maximize the potential of all sales channels simultaneously. The trade channel, encompassing distribution, dealers, showrooms, and key accounts, remained the largest contributor to revenue and played a significant role in our overall growth. Additionally, growth was supported by the expanding e-commerce channel, improved performance in the luxury segment with increasing premiumization, stronger contributions from Timex International products, enhanced retail presence, and the strong performance of fashion and luxury brands. Tactical marketing efforts also added momentum. Furthermore, the e-commerce and OEM channels continued to bolster profitability and support healthy cash flows. During the year under review, we remain committed to our strategic focus on analog watches as our core offering, with smart technology products driving additional growth. We are confident that our strong product portfolio, featuring popular brands across the value spectrum, will continue to strengthen our core analog business.
While the Timex brand remains our primary focus and main revenue driver, we anticipate significant growth at the entry level from our other brands, such as Helix and TMX. Additionally, our robust lineup of fashion and luxury brands, including GUESS, GC, Nautica, Furla, Ted Baker, Adidas Originals, Philipp Plein Sport, UNLTD, UCB, Versace, and Ferragamo will further boost our market share and offer consumers a wide variety of choices in these segments. During the year 2024-2025, we continued to drive momentum in the market through a series of high-impact product launches, consistent brand innovation, and strategic introduction of international lines tailored for the Indian consumer. These efforts have not only strengthened our product portfolio, but have also enabled us to enhance our pricing architecture with the introduction of offerings at higher price points, contributing to an uplift in the average selling price across categories.
At the core of our brand strategy is Timex, our founding brand, and a critical pillar of our analog watch segment. As the brand celebrates its remarkable 170-year legacy, we take great pride in its enduring heritage and iconic status in the global watchmaking industry. Timex's value proposition remains timeless, offering accessible, high-quality timepieces that combine craftsmanship, design, and affordability. Since its inception, Timex has consistently delivered on the promise of democratizing engineering excellence, and we continue to honor that commitment by ensuring our products reflect thoughtful design, durability, and value for the consumer. Timex transcends its role as a product. It is a cultural icon. More than a recognizable name, it stands as a symbol of enduring design, functionality, and American ingenuity. Since 1854, the brand has consistently challenged norms, reshaping the global watch industry through a series of groundbreaking innovations.
This pioneering spirit continues to guide our brand philosophy, driving product development, expanding market relevance, reinforcing our positioning as a trusted, heritage-driven name in watchmaking. This year, we introduced several compelling collections that have been well-received by both the market and consumers. These product launches reflect our strategic focus on expanding brand relevance across consumer segments by offering a broad spectrum of designs, from traditional to contemporary, across diverse price points. Each collection is underpinned by meticulous attention to detail, innovative features, and craftsmanship that reflects the highest standards of quality. The business was further strengthened by significant marketing investments aimed at building mass awareness around Timex and its new global positioning. Our association with India Beach Fashion Week was expanded this year, elevating our role from associate sponsor to lead sponsor as part of ongoing efforts to reinforce Timex's fashion-forward identity.
This was followed by a high-impact multimedia campaign and partnership with the TATA IPL team, Punjab Kings, where Timex served as the official timekeeper and featured prominently on the players' uniforms. Timex, official timekeeper of the Kings campaign, was widely promoted across multiple media platforms during the TATA IPL 2024 season, ensuring extensive brand visibility. Building on this momentum, we amplified our global brand campaign, Waste More Time, featuring Ananya Panday as the face of Timex. Her youthful energy and strong social media presence helped the campaign reach a broader audience. The Waste More Time theme was woven into IPL activities through creative player content, influencer collaborations, and playful brand integrations. The campaign was further supported through digital collaborations, expansive social media promotions, robust media coverage, print ads in national and regional dailies, fashion magazines, and premium outdoor advertising.
Influencer-driven content aligned with the campaign's ethos of joyful, intentional living, while exclusive partnerships with leading fashion media platforms helped extend its reach. We are committed to follow the best practices for good corporate governance and always strive to achieve an optimum level of shareholder involvement, board oversight, and management reporting within the proper governance principles. Finally, together with my colleagues on the board and the management of the company, I wish to convey our gratitude for the confidence you have placed on us over the last several years. I sincerely hope that with your continued support, we will be able to improve the company's performance to permit a prosperous return to all of our shareholders. I can assure you that we remain focused on that goal on your behalf. Thank you very much. After tabling the resolutions, registered speakers can express their views and ask questions.
Now, I will take up the formal items of business of this AGM. The first item of business relates to adoption of audited financial statements of the company for the financial year ended March 31st, 2025, together with the reports of the board of directors and the auditors thereon. The objective of this item is to comply with the requirements of the Companies Act. The second item of business relates to reappointment of Mr. Marco Zambianchi as Director of the company, who is liable to retire by rotation, and being eligible, has offered himself for reappointment. The objective of this resolution is to comply with the requirements of Section 152 of the Companies Act. This item has no financial implication on the company. The third item of business relates to payment of dividend on the preference shares of the company.
The objective of this resolution is to seek shareholders' approval for payment of dividend on two tranches of preferred shares as per the contractual coupon rate and discharge the company's liability. The dividend for current year, along with accumulated dividend on one tranche of preference shares for financial year 2018 to 2019 and 2019 to 2020, is proposed to be paid out of the current year's profits. The fourth item of business relates to appointment of N.K.J. & Associates Company Secretaries as the secretarial auditors of the company for a period of five years from the conclusion of this AGM. The objective of this resolution is to comply with the requirements of the Companies Act and SEBI Regulations, 2015. This item has no financial implication on the company.
Thank you, Chairman. The company had provided the remote e-voting facility to the shareholders to cast their votes on the items mentioned in the notice. Mr. Neelesh Jain, Company Secretary in Practice, has been appointed as a scrutinizer for conducting the voting process in a fair and transparent manner. He has also joined the meeting. Those of you who have not exercised their votes earlier may exercise their votes through the e-voting facility provided during the meeting. The scrutinizer will prepare a consolidated report of voting exercised through remote e-voting before and during the meeting and submit it to the Chairman or some other person authorized by him. The final result of the voting will be submitted to the BSE and uploaded on the company's website and also at the registered office of the company. The speakers are now invited to put forth their queries and suggestions.
We shall be happy to answer all your questions or provide clarifications after all the questions are asked. I once again request all the speaker shareholders to maintain two minutes time strictly as we have a lot of speaker shareholders registered today. Now, I request the moderator to unmute Mr. Surendra Kumar Arora. Okay. Mr. Manjeet Singh. Mr. V. Ravichandran.
Hello.
Yes. We can hear you. Please go ahead.
Am I audible?
Yes, please go ahead.
Good afternoon, Chairman, and all the other board members who are present, who are attending here and elsewhere. I am V. Ravichandran, joining the AGM from Chennai. My first point is on the. The company has not paid. I joined the AGM two years back. At the time, I was told company has got accumulated losses and all that.
Sorry, you were not audible before this. Can you repeat your questions?
One minute. Am I audible now?
Yeah, we can hear you now.
We can hear you now. You can start from the beginning.
Good afternoon, Chairman, and all the other board members who are attending the AGM, plus all the other shareholders. My first point is on the dividend. Two years back, when I asked about it, I was told there are accumulated losses, so it will take some more time to pay the dividend. This year, the annual report, I find a royalty payment of INR 20.9 crore. Last year it was nil, and suddenly this has come up. Parent is providing lots of support, I do not deny that. You should consider 25% minority shareholders also. They are also important. I do not know whether it is one time or every year this INR 20 crore is going to be paid. That I do not know. That you can please clarify. Second is on the cumulative payout to preference shares. That also if it can be postponed.
It could have been postponed. Some token dividend could have been paid. It is not that we are asking you 100% payment. At least INR 1, INR 2, some token dividend you could have started. I am a long-term shareholder. I am not just investing in companies for making money after one year or two years. I have been with the company for the last several years, and I am going to continue. For long-term investors, it is only the dividend and bonus which matter. Share price movements may not matter unless there is a cash flow requirement. Please consider this.
Sure. Thank you. Mr. Gagan Kumar. Not joined. Mr. Sarabjit Singh. Not joined. Mr. Ankur Chanda. Mr. Ankur Chanda. Mr. Ankur, can you hear me?
Hello, I am audible.
Please speak a little louder.
Hello, I am audible now?
Yes.
Good afternoon to everyone.
[Non-English content]
Okay, we'll go to the next one. Mr. Manoj Kumar Gupta.
Yes, sir. Hello, sir.
[Non-English content ]
I have joined this meeting from the city of Joy, Kolkata. Sir, thanks to you for a good presentation before question and answer session. Sir, but when the investors will get return? Last year, I had sent you one mail, but I have not got any response till now. In the one year, you have not sent a response of a shareholder mail. I had sent after the AGM one mail, but till date, I have not got the response. How you will improve in the country? In the 170 years journey of Timex, where you have got the major success, in which country? Can you explain? You have put a logo behind you, 170 years journey. Where you have got the huge success, in which country? Which brand is popular in India, in the 140 crore population?
Several brands are shown behind the MD and CEO. Which brand is popular in the country? Why people do not want to buy the Timex watch? Have you thought any time? When the investors will get dividend? Because you are getting the royalty and cumulative preference shares, investors are getting interest. When the small shareholders will get a dividend? There is no appreciation, no bonus, no debenture, no proper EPS. So when the investors will get A, B, C, D, E, F, sir? Kindly consider. How you will reduce the expenses? Your income is going up, then simultaneously your expenditure also going up. So when you will be in position to pay that dividend, sir? I cannot support this balance sheet. So how do you think about that to get the support and confidence of the investors?
Think about that your people are avoiding the small investors. I had sent one mail in your name as a chairman, but I have not got any response till now. With this, thank you.
Thank you, Mr. Gupta. Rahul Kumar Paliwal. Mr. Rahul, if you can hear me, please unmute yourself and speak.
Hello.
Yes. Please go ahead.
Hope I'm audible.
Yes. Please go ahead.
Okay. Congratulations to the team and the management for turning around this sleeping giant with the huge potential. That's the first congratulations with lot of hiccups in between the leadership changes, and we are here today. Congratulations that we are able to sustain the momentum. The same question I have about the sustainability. How you are assuring the sustainability in this momentum, the earnings, the drive, because India is not a country, it's a continent. You have a huge scope. Apart from export and maybe outsourcing from the parent, which are the few key areas which can be leveraged to really reward the shareholder and the ecology here? In the same perspective, I have a few questions. E-commerce strategy, given the reported challenge in the e-commerce channel, what is the specific reason for the lack of exclusive launches?
Is this a strategic choice, an execution issue, or a conflict with other business unit? My other question is on profitability and the royalty payment. How are the significant royalty payment calculated, and what is the long-term plan to either renegotiate this term or reduce their impact on the company's profitability? My another question is brand versus reality. How does the analog life brand narrative, which emphasizes authenticity, align with the absence of formal cybersecurity and data privacy framework? What steps are being taken to address this potential contradiction and protect customer data? My another question is on smartwatch market defiance. The company's smartwatch segment grew despite a challenging market. What specific consumer insight or product strategy lead this to this success? What is the tangible product roadmap for next one to two year to maintain this momentum?
My last question is about corporate governance and related party transaction. What quantitative measures and internal audit processes are in place to ensure the significant related party transaction, particularly with the parent company, are truly in the arm's length basis and in the best interest of the Timex Group India shareholder? These are the few questions, hope someone noted, and I wish best luck for the setup and the group and the leadership.
Thank you, Mr. Rahul. We have noted your questions. Miss Indu Joshi. Mr. Ankit Agarwal. Mr. Sharad Kumar Shah. Mr. Vipul Kumar Shah. Mr. Abhishek Jain.
Can you hear me, sir? Am I audible?
Please speak little louder. Yeah, Mr. Abhishek.
Congratulations to the management on the eve of annual general body meeting. Sir, trust all is well with you and your family. In this challenging situation, our company deserves much more respect than the current market cap. After completing more than a decade of successful operations, profitability and becoming one of the strongest brand in the respective segment. Sir, I would like to know, as of date, what are the steps being taken by the management to conduct con call, quarterly presentations, and meeting with global investors on a regular basis? What are the steps being taken by the management to improve the EPS, P/E ratio, and the return on equity? I would like to know from you, sir. What are the steps being taken by the management to reduce the other expenses, legal professional charges, and the audit fees?
Sir, myself and my team are running a legal firm in the name and style of Sarnots Associates. I would request the management kindly enter the firm in the panel member of the company, and we will be glad to extend our services. Sir, the company has done an outstanding performance during the year, but still management has not declared any dividend to the investor fraternity. So I would request the management to kindly declare some minimal dividend to the investor fraternity, and also with special dividend. We are really thankful to the management for the discount voucher being given to the shareholders. I would also request you to kindly give some complimentary voucher, fully redeemable to the shareholders who are attending the meeting in virtual conference today.
We have supported all the resolutions, sir, and kindly give us an opportunity to meet you and greet you, sir, whenever we come down to your city. Nothing much to ask, sir. I wish, sir, kindly try to consider hybrid AGMs in the years to come, sir. Most of the senior citizens are not able to join because of the digital challenges in this virtual platform. So if you can kindly consider hybrid AGMs in the years to come, we can have more number of shareholders joining in the meeting who can give the valuable points, suggestion and ideas that will be helpful for the management to empower in the coming future. Nothing much to ask, sir. I wish the company and the board of directors great success and prosperity in the coming future. Thank you for giving the opportunity, sir.
Hope to see you in the hybrid AGM. Thank you very much.
Thank you, Mr. Abhishek. Mr. K Bharath Raj.
Yeah. Very sorry, can you hear my audible?
Yes, please go ahead.
Very good evening, Mr. Chairman and entire board of directors. [inaudible] I am Bharath, attending from Hyderabad. Chairman sir, I support all the resolutions and Timex brand is growing. Yearly, the percentage of the sales is increasing, Chairman sir, and the brand is improved and I can see the Timex brand all over the stores. Wonderful, sir. You are taking the brand into the next level. I hope my brand sales will increase in this financial year, and we hope that my sales will come up. Chairman sir, once again, you are planning to introduce any cine actors or any sportsmen for our products, sir, for our Timex brand, so that our sales may increase. Please consider any sales promotion of the actor, South Indian or North Indian actor, to fast being of our product, sir. Chairman sir, I thank your gift voucher of 40%, sir. Wonderful, sir.
That is, Diwali and the coming seasons is a gift to our family members, sir. Once again, sir, I support all this here. My best wishes to you and coming years, once again, my sales and my company bounce back to the next level, sir. All the best, Chairman Ji, and God bless you all. Thank you. Bharath from Hyderabad, signing off.
Thank you, Mr. Bharath. Ms. Yashwi Kothari.
Hello, am I audible?
Yes, please go ahead.
Thank you for the opportunity, sir, and congratulations for the great set of numbers. I just have a couple of questions, like what is our current average selling price? How has the ASP trend been over the years, and at what levels do we see this trend to be in the next two, three years? What is the split in Timex brand between entry level and premium level? In the higher price points above INR 7.5K, we have established players like Casio, Fossil, Armani Exchange, Calvin Klein, Tommy Hilfiger, and many more with better brand recall. The overall analog market is currently INR 13,000-INR 15,000 crores. What will be the market of INR 7,500-INR 25,000 watch segment, INR 7,500, INR 25,000 And how fast that is growing? What will be our market share in this segment and how much do we target? And how are we competing against these players in this particular market segment?
Sure. Thank you. Ms. Anjana. Not there. Mr. Krishan Lal Chadha. Okay. Mr. Chetan Chadha. Mr. Vinod Motilal Agarwal.
Hello, can you hear me?
Yes, please.
Yes. Respected Chairman David Thomas Payne, MD Deepak Chhabra, and CFO Amit Jain, CS Dhiraj Kumar Maggo. Good evening in regards to everyone, sir. The total revenue is INR 540 crores against INR 422 crores. About 25% high in the PAT, was about 50% higher than the EPS at INR 2.62. But you have given no dividend, sir. I understand that we have got carried forward losses. How much is the carried forward losses, and by when can we expect the carried forward losses to be wiped out so that we come into the dividend list? Till we do not wipe out the carried forward losses, we cannot come into the dividend list. This is my basic query. We have got good brands. The share performance, people are saying that [Non-English content] Dividend is not the only criteria, sir.
The performance on the stock market of the share has been almost double or tripled within the last one and a half years, sir. 52-week low was INR 117, and today it is INR 280+ , sir. So the return that the share price has given is phenomenal, sir. Dividend [Non-English content] Then also we will get dividend.
Dividend not the only criteria that the shareholders should expect, sir. When they are getting more than 100%, 150% return within a year on the market capitalization, which is very good, sir. I sign off, sir. Vinod Agarwal compliment to you, sir. I also say that company secretary team should contact the registered speaker shareholders, sir, before the meeting so that no one is left out at the time of their name called out, sir. Thank you, sir. Signing off.
Vinod Agarwal.
Thank you, Mr. Vinod. Mr. Hardik Jain. Mr. Hardik Jain, you can unmute and speak.
Hello.
Yes, Mr. Hardik.
Yeah, thanks for the opportunity. I have sent a list of questions. Have you received it, or should I just ask the questions?
Yeah, we have received that, and we will be answering those questions. If you have anything else-
Okay. It will be very helpful if you can answer them line by line. Just one question I forgot, so wanted to ask it here. Whenever we record a sale in our P&L, is it a primary sale or a secondary sale? When we record in our P&L, when we sell to the franchisee or dealer distributor, at that time, we record it in our P&L, or it will be recorded when the product is sold to the ultimate end consumer. That is one question I forgot to write in those questions. Thank you for the opportunity and waiting for the answers. Thank you.
Thank you, Mr. Hardik. Ms. Ruchika Chopra. Ms. Ruchika Chopra, you can unmute yourself.
Hello.
Yes.
Am I audible, sir?
Yes, please go ahead.
Yeah. Hi, good afternoon. Respected chairman, sir, board members, and all other professionals who are present over here. This is Ruchika C. S., and I am from Vasundhara, Ghaziabad. First of all, sir, I went through annual report. It is beautifully interpreted and compiled by the secretary team. I have two small questions cum suggestions. I went through the part where it is mentioned we have vision and we are working on net emission, carbon emission. Being a wife of a chemical engineer, I was just going through the deal, and I got to know. I just want to know, what type of solar installation planning we are doing for our Baddi plant, and how much subsidy and how much incentives government is doing in supporting us to grow there. For the-
Sorry, Ms. Ruchika, we cannot hear you.
Am I audible, sir?
Yes. Now, yes.
Okay. Good afternoon, chairman, sir, all the board members. This is C. S. Ruchika, and I am from Vasundhara, Ghaziabad. First of all, I would appreciate all-
Sorry, we lost you again.
I have two question cum suggestions. Am I audible?
Ms. Ruchika, we heard you till you asked a question about solar installation in Baddi and any government support on that. You can continue after that.
Yeah. Actually, I had two questions. First of all, what is the vision and how we are-
Ms. Ruchika, you are again not audible. I think there is some issue at your end.
Yeah. Can I connect after some time? I think there is some signal issue.
Sure. I will take you again at the end.
Thank you.
Ms. Swecha Jain. Ms. Swecha. Aditya Mukin. Mr. Aditya, you can unmute and speak. Mr. Aditya, can you hear me? Hello. Mr. Aditya, you have to unmute yourself and then speak. I think there is an issue at his end. Let's go to the next. Mr. Hardik Cheda.
Am I audible now?
Yes, Mr. Hardik. Please go ahead.
First of all, thank you very much for hosting a conference call which you did after this quarter's numbers. I would like to request the management to host a conference call after each quarter's numbers, and the detail should be shared well ahead of the numbers so that more and more people can join the conference call. Secondly, I would like to know from the parent company, what is the roadmap for India? What kind of roadmap they have for growing the India business for next two to three years? Any special plans that they have over the next two to thre years to grow the Indian business? Thirdly, sir, with regards to margin, presently in the news it is going around that the 28% GST slab may go away.
So if that is the case, and if premium watches attract 18% instead of 28%, will that help aid our margins? Secondly, sir, in the con call you highlighted about making the GUESS brand in India and the margins going up. Can you elaborate a little further on that? That what are the margins going at, because when you start manufacturing the GUESS watches in India, what will be the margin picture like? In terms of jewelry business, sir, can you throw some light on the jewelry business? We have just started that, but what kind of aspirations do we have? What kind of revenue are we targeting in the jewelry business? That would be really helpful.
Lastly, sir, I would request you to please consider NSE listing, because we have close to INR 3,000 crore market cap and still we are not listed on the National Stock Exchange. So that is a very big hurdle in many of the investors not being able to invest in the company. So I would kindly request you to consider listing our shares on the National Stock Exchange, sir. Thank you, sir. That's it from my end. Thank you.
Thank you, Mr. Hardik. Mr. Honey Talreja. Mr. Bimal Kumar Agarwal.
Hello, can you hear me?
Yes, Mr. Bimal. Please go ahead.
Thank you. Good evening to you. Good night, good morning, and good afternoon to the other shareholder, other directors who have joined from different part of the world. As my question was already raised by the other speaker, I just want to know what is the accretion rate of our employee, and try to arrange a plant visit. Otherwise, since you have not declared any dividend, you can send some token of appreciation to the shareholder who have joined today as a gift, because you are not giving dividend from so many years. You can consider that for the shareholders. That is all from me. Thank you very much, and please consider-
Sure. Thank you. Mr. Bharat Prakash Hemdev.
Am I audible?
Yes, Mr. Bharat.
Thank you so much for giving me an opportunity to speak at the AGM. I am thankful to the board members for such an amazing year of performance last year. I have a few questions. I will just read out that.
Mr. Bharat, sorry to interrupt you. I have taken your questions on email.
Okay.
If you have anything else, you can take it.
I had one. I think those were my questions. That is it. I had also a request for listing on NSE, because that creates a good amount of visibility for the company, as said by my fellow speaker, shareholder.
Sure. Thank you. I am repeating the names who were not there earlier. Mr. Surendra Kumar Arora. Is he there? No. Mr. Manjeet Singh. Mr. Gagan Kumar. Mr. Sarabjit Singh. Miss Indu Joshi. Mr. Ankit Agarwal. Mr. Sharad Kumar Shah. Mr. Sharad Kumar.
Unmute me, sir.
Yeah. Please go ahead. We can hear you.
It is not getting unmuted.
We can hear you, Mr. Sharad. Please go ahead.
Yeah. Can you hear me, sir?
Yes. Please go ahead.
Sir, this particular annual report, I have not read because I have not received a hard copy. Please send me the hard copy of the report. Another thing what I observed, that last six months, the share price has clicked to very booming price. P/E ratio is around 64 times. What is the reason for happening this? That is not clear. Please do inform me. Another thing, sir. This year, the profit is much better than the previous year. What has happened is our, basically, profit is higher. If you see just last two years, our employment cost is higher than the profit. Another thing what I observed is our debt equity ratio has gone up. The reason is not known. When the company is in profit, why debt equity ratio goes high? That's all, sir.
Thank you very much for giving me opportunity.
Sure. Thank you, Mr. Sharad. Mr. Vipul Kumar Shah. Miss Anjana. Mr. Krishan Lal Chadha. Mr. Chetan Chadha. Ms. Ruchika Chopra. Mr. Swecha Jain. Mr. Ajay Kumar Jain. Mr. Honey Talreja. Sure. We have taken the questions from all the shareholders, and in couple of seconds, we'll start answering those.
Okay. Good evening everyone, and welcome to 37th AGM of your company. These are very exciting times for the company and for our shareholders. I would like to give you a lot of details about how the business is, what are our challenges, and how do we see it shaping up in the near future. We have also received lot of questions on the email. I will try to cover all of them. I'll start with our business performance over last year as well as quarter one of this financial year, and also cover about a horizon of about three years how the business has shaped up. Briefly, our revenue in a three-year period has doubled, and our profitability has become four times. Last year, our revenue growth has been 28%, wherein our profitability or PBT has grown at 54%.
Quarter four of last year, we saw a pretty significant growth at 46%, and we followed it up with quarter one 2025-2026 growth at 56%. On profitability, in quarter four, we had 39% PBT, but in quarter one 2025-2026, it really jumped to six times of last year, 512%, which is six times versus the same quarter last year. Our company has been doing really well, not just on the revenue, but also on the health, sustainability, and profitability of the company, which is visible wherein the revenue is growing at X, but your profitability is actually minimum growing at 2x or beyond. On other factors over the same period, our market cap three years back was about INR 500 crores.
As we speak today, our share price has hit INR 303, which largely means our market cap has grown to INR 3,000 crores, which is six times in three years. We are doing well. Market is accepting it in the positive way, and we are gaining market share. On the share which we have in our industry, in the last three years period, we have actually gained 5% market share from our competition, and it stands at about 19% as we speak. It was roughly about 13-13.5% three years back. And we continue taking more market share from our competition because our industry is growing at about 11%, 12%, while our growth over the last four, five quarters has been way beyond that. And if I see the last two quarters, it has been close to about 50%. So we are gaining more market share versus in the market overall.
On our distribution of channels in our revenue and the growth by channel as well as distribution by brand, there have been questions about how Timex is doing versus our license portfolio. There is also a question about what do we do in our OEM business. I'll try to cover all of them. For the year 2024/2025, our trade business, which includes key accounts, which are large format stores, which also includes 42 of our retail stores in two formats, which is Timex World as well as Just Watches. This part of the business is the biggest channel for us, which is 50%. And this channel in last financial year has grown by 26%. E-commerce contribute about 32% of our business. E-commerce in particular, has seen exponential growth over the last three years.
Our e-commerce used to contribute about 7% of our business, now it does about 32%. We continue the momentum, and it has grown at 31% in the reported financial year. OEM business, we largely do for some apparel brands, which are Madura's stable or Aditya Birla. Noteworthy of them are three of them, which is Allen Solly, Peter England, and Van Heusen. We make watches for them, not just make watches, not just produce them, but we start from designing and go up to after-sale service. This business contributes 16%. We do OEM for many other brands, but these three brands are the bigger ones. We do for Woodland, we do for Lavie, which is a ladies' handbag brand. This business is about 16%, and this is also growing at a very aggressive rate. Last year growth for OEM business was 43%.
We have other smaller businesses. We do sell. We are actually proud to sell our watches at army canteens, CSD canteens, about 500 of them. We also do a smaller part in institutional business. That contributes about 2%, and that has also grown at double digits. Overall, trade at 50%, e-commerce about one-third, 32%, OEM 16%, CSD as well as institutional business at 2%. All these channels have grown by high double digit, led largely by e-commerce at 31%, and the biggest channel, which is trade, growing at 26%. On the brands and the business unit, our own brand versus licensed portfolio versus OEM or largely Timex. We call it TBU, which is Timex Business Unit, which consists of three brands and mainly Timex itself. Other brand is TMX, which is entry price point watches, Helix, which is more for youth.
This unit contributes half of our business. About 50% of our business comes from these three brands, largely from Timex. This has grown at 27% in last reported financial year. Our licensed portfolio, which consists of about 15 brands, contributes 30% of our business, and that has also grown at 27% in the reported financial year. OEM, as I mentioned, is 16% contribution and the growth has been 43%. We have other brands, largely the smartwatches business, which is a smaller business for us. It is at 4% of our total contribution, but that business has also grown at 23% in the reported year. All channels, all brands, all business units growing at double digit in last financial year, few as high as 50% versus 23, 24. On the key brands, how is the distribution? Which are the key brands for us?
Actually, the four brands, which is Timex, not the Timex business unit, but Timex, not including Helix and TMX. So Timex, GUESS, Versace, and GC, which is Guess Collection. These four brands actually give us revenue of about 75%. This bucket of four brands has grown at 27% last year. There was also a question about what is the EBITDA margin for us and why it is not going up. I just wanted to share with our shareholders, three years back, our EBITDA margin used to be 4% in percentage, if I have to talk about. 2024/20 25, we have reported at 9.2%, which is about two and a half times of it. Quarter one of 2025/20 26, which we have reported last month, this has skyrocketed to 13.1%. I just wanted to assure you, our cost is not increasing the same ratio for sure.
Otherwise, this would not have been possible from 4% to 9.2% and 13.1% in quarter one, 2025/20 26. We are building a lot of efficiency, which I will cover separately on what we are doing on ensuring that the growth delivers higher EBITDA margin per se, and of course, in value terms it will be always higher. But even in the percentage terms, it keeps on improving, which has been the case for the last eight, nine quarters, and it has reached 13.1%. There have been questions about how is our regional salience, where do we sell more. Of course, we divide India into north, south, east, west. North and west, they are the biggest territories for us, contributing 32% each, followed by south, very closely followed by south, which is 28%.
East, which generally is a smaller market for all the brands, all the consumer brands contribute for us 8%. That's our salience. It hasn't changed big time in the last three years, except that west used to be a bit smaller. That has gained more share. It used to be about 28% and has become 32%, wherein south, growth in south has been a bit less and that's where south stands at 28% and west has moved to second. North always used to be the biggest market for us, but now north and west are equal. There was also a question about what is the volume salience, how many units or watches we sell, how is it divided between licensed portfolio and our own brands. We have sold 3.4 million watches last year. This has been a growth of about 20. In unit terms, it's 14% growth.
This also will answer the other question that how is the ASP moving? 28% of the growth which we have reported in FY 2024/2025 has equally come from both the factors. 14% more watches we have sold and 14% growth has come from premiumization and increase in ASPs, which is actually the trend currently, which I'll cover separately. Volume reflects that we are getting more market share. There are more people who are wearing our watches, and we are also getting into a consumer segment which is a bit more premium, and that's where the growth in our ASP is coming at about 14%. About our network, there was another question through mail. How do we distribute? How strong is our network? I'm proud to share that we have the second-largest distribution network in the country.
We cater to our consumers through about 6,000 point of sale. These 6,000 are divided like 5,000 are multi-brand outlets across the country. About 400 of them are large format like Shoppers Stop, Lifestyle, Centro, and many others. You have Pantaloons, Malabar Watches, a lot of them. About 500 we sell through NDE, which is CSD. We have 42 retail outlets across two brands. Almost equal. 22 stores we have in Just Watches, a company and the brand which we acquired about two years back. Timex Watch has about 20 of them. That's how our distribution is. During the year which we have reported, we have expanded our distribution big time. We have actually added about 500 points of sale. We have also entered a few more sub-channels within trade.
We are today selling at airports, so whether it's duty-free or duty paid, we are there at about eight airports, in totality, 12 point of sale. You will find us at arrival in duty-free, you will find us at departure in duty paid in all the major cities. We have also launched justwatches.com as well as helix.com, in addition to timex.com we had. The larger expansion which we have done and which we intend to continue for the next couple of years is tapping into regional departmental stores, which no other watch player or watch brand in India has done till now. The larger focus for all of us till now was to participate with national-level large format stores, as I said, Shoppers Stop, Lifestyle and Pantaloons sort. But we have started regional chain stores.
For example, every city has a larger departmental store, but they do not have multiple of them. They may have probably three, four of them, but they are the biggest and they are way bigger than national chains like Lifestyle shoppers, and we have already opened about 12 of them. These are the business development beyond our usual channels, which we have done during this period. On the ASP, there was a question on what is our average selling price. I will start from our most premium luxury brand, which is Versace.
Average selling price for Versace is INR 105,000. Range starts from INR 80,000, goes up to INR 400,000, but average selling price is INR 105,000. GUESS, the average selling price has moved from INR 13,500 to INR 15,000 in the reported year. Timex has seen the major shift, and I will cover how did we achieve it. Timex average selling price is INR 3,400.
Three years back, which I have been referring for a lot of other parameters, this used to be INR 1,800. From INR 1,800 to INR 3,400 is almost double. It is not that we have vacated any price point. It is more like we have stretched the price point. Today, we do sell Timex as high as INR 22,000 every day, and we have also sold Timex watches at INR 170,000 at least from our dot-coms. The larger increase in our average selling price in Timex has come because we have brought all our global franchise to India since last one and a half, two years. Those products are very premium products, and those are driving our average selling price up. While we are still not vacating the entry price point, which is INR 2,000, INR 2,500. We are stretching it to INR 15,000- INR 20,000. That is how our ASP is actually moving.
Dhiraj, what else was there if you can help me with?
Sure. Mr. Rahul had asked about lack of exclusive launches in e-com. Why?
I am not very sure why this thought is. In fact, e-commerce is divided into three parts. One is when we sell on the third-party portals and sell it to them. That is called 1P. Then we have another fulfillment model, which is called 3P, which means marketplaces. We do not sell it to them, but we list our products on those portals. Then we have our dot-coms. Actually, our dot-com gets all our exclusive launches. Anything which is launched anywhere in the world, any collaboration, any new product, exactly at the same time, it is launched in India through our dot-coms. We are actually doing that rather than not doing it. But for sure, we do not sell on third-party exclusive products. We do sell from our dot-coms because we want to have a controlled environment for those products.
Those are strategic collaborations or new launches where we want to have price control. We do it from our direct-to-consumer channels. Digitally, we do it from dot-com. We do it from timex.com. We do it from justwatches.com. Physically, we do it from our stores. We also do from few of our premium trade partners. That is already there, but we do not do exclusive launches, which are strategic in nature from a third party or first-party e-commerce.
The shareholders have asked about more clarity on royalty, how it is calculated, and is it one time or recurring?
Sure. In 38 years of our existence in India, we never applied royalty wherein we produce majority of products in Timex and Timex business unit, which is Helix, as well as TMX. In 2021, we also added OEM. From last year, from April 1st, 2024, we have applied 6% royalty for the products and the brands which we manufacture in India or we source in India. Which largely means it is our Timex business unit brands, Timex, TMX, and Helix, and our OEM brands. Rest all our license portfolio is imported from our parent companies itself, so there is no royalty applied. The rate of royalty is 6%, but it has a capping of 4.99%. Applicable from April 1st, 2024.
Is there any roadmap, product roadmap for next couple of years?
No, absolutely. There's a roadmap for product, there's a roadmap for brands. I'll probably cover product for all our licensed portfolio. Supply chains currently are handled by our parent company and our affiliates. Of course, there is always a newness by seasons. We largely work on two seasons, spring/summer and fall/winter, and we bring NPD basis the brand portfolio. For example, GUESS, which is more of a high-fashion brand. The newer products and the innovative products contribute to about 35% of our business. On licensed portfolio, there is a constant upgrade and product launches basis the latest trends, but that's being handled by our parent company and their affiliates. For the business where we actually manufacture here, of course, there is a complete calendar for the next two and a half years basis the global trends, the competition scenario, and the consumer trends. For example, automatics.
You have quartz movement and you have mechanical movements. Automatic used to be a bit lower in salience in our business, but the market is changing. People are preferring more of automatics. We are launching a lot of them over the next two and a half seasons from now. The other thing which we are currently working on is offering premium women watches, which largely means the price points which are more than INR 10,000. We are launching those in spring/summer 2026 under our franchise called Fria. Of course, for every brand, we do have a clear roadmap. But since watches have become fashion accessories, you cannot actually define roadmap beyond four seasons because the trends changes and then basis the trends, we keep on innovating on our product and our new product launches strategy. That's largely how we operate on our product offering.
On price point coverage, there is a strategic move which we have done. As I mentioned, for the longest period in our market, we used to sell Timex at a price point less than INR 5,000. Today, we have stretched this to about INR 20,000. We have about 33, one third of our offering, which is more than INR 5,000, while two third still remains INR 5,000 or less, because that still remains the biggest consumer segment considering the demographic of India. We are stretching the price point, offering more value-added products, bringing all our global launches to India at the same time. Of course, they fall under a premium segment, and we are expanding our consumer segment beyond what we had couple of years back. There was also a question about how much business comes at a particular price point and how much business comes at higher price point.
Yeah, watches category, as all categories, is also experiencing, for the last couple of years, premiumization. People are spending more. They are open to buy costlier products if those brands deliver value. If you see that, our price point has moved. As I mentioned, our offering is one third beyond INR 5,000, but our business currently is about 25% for a price point which is more than INR 5,000. The disparity between 33% offering giving 25%, of course, will bridge over a period of time because we are building that segment which was where we were lacking. Say about couple of years back, more than INR 5,000 used to contribute about 5% of our business. That has already moved to 25%, and we have very strong plans to take it to about 40%.
Sure. The efforts of the company for improving the brand recall.
Sure. I think I will put it other way around. There are three things when we talk about brand and the marketing and the branding piece. One is awareness, second is relevance, third is consideration. I am happy to share with you. Basis our survey, which we did about couple of years, I think 2023, awareness of Timex as a brand is amazingly high, which is 93%. If we interviewed 100 people and asked them did they know about Timex, 93 of them absolutely knew about it. But then we went to the next stage, which is mapping the relevance and consideration. Yeah, there it dropped. And then, of course, confusions about our association with our joint venture partner, which is Titan, Timex Titan. And then, of course, are we a global brand or are we a sub-brand of Titan? And then is it relevant for me?
These were the challenges. I am so happy to share with you. In fact, David covered a part of it. We realized that we have to improve relevance and consideration so that it gets into purchase funnel and convert into revenue, if not now, probably in couple of years from here. And that is where all our marketing activation has been for three things. One is youngification of the brand. Second is creating aspirational value and talking about our global presence and being an American icon, 170 years of legacy. And the third is how do we, as a part B of youngification, how do we improve our consideration in the youth? All our activation, whether it is Ananya Panday's endorsement, which we did for one and a half years. She is 22 years relevant across the country, very young, very stylish.
People look for her attire and get motivated. It showed in the selection of our celebrity endorsement. IPL, nothing connects Indians bigger than IPL. We have been part of IPL from last two years. We participated with the Gujarat Titans, followed it up with Punjab Kings. Then we have been part of lot of fashion events, whether it's India Beach Fashion Week and many of those fashion weeks which happen in various parts of the country. We have been trying to address all the three concerns so that the funnel moves from just awareness to relevance and consideration, and we have seen a huge movement in that. Although we haven't done a big survey to see how the relevance and consideration has moved, but our numbers, acceptance of a higher price point of youth visiting our point of sale probably tells us that it is working.
We have done a lot about the concerns which we came to know through the survey, and we have addressed many of them. But marketing or brand perception changes the journey. It doesn't happen in a year or say few quarters, but we are there, and we are improving our consideration relevance, and that's what is leading to our higher revenue and acceptance by new consumer segment, especially the youths.
There is a question about the production capacity and the utilization and how much we are selling from the manufactured goods and how much from the traded goods.
That's pretty interesting. We have a world-class plant at Baddi in Himachal Pradesh. That's about 40 kilometers from Chandigarh in north. For all of last year, or rather I should say the first three quarter of last year, our capacity for all this while until, say, December last year, capacity was 3 million. And we actually produced, we utilized it for 95%. We produced 2.85 million watches from our Baddi plant, which is like almost full utilization of our capacity. But since our business plans and aspirations are way higher, we invested in our plant in quarter one of this year. Quarter one, when I say, is the calendar quarter one, Jan to March quarter, we invested and we have increased the capacity of our Baddi plant to 450,000 watches per month, which means 5.4 million per year from 3 million, which was there till last year.
Today, I can actually produce about half a million watches every month, and that is also in line with our aspiration for the brand and for the company. Somebody had asked the benefits at Baddi. I think the benefits at Baddi are gone now. It was for the first 10 years or up to 2020, there used to be excise benefits. After excise, we used to get benefit for GST. Those benefits are gone, but that is a place where almost all the major consumer products are manufacturing. It is a good place to be in. We do have a very stable workforce. Somebody also had a question about attrition. You will be surprised. Attrition, even in our operators at Baddi, is less than 7%. Operators, generally, they move jobs for a very small increases.
There are operators, not official ranks, of course, their attrition is way lesser than that. Even the operators have been with us for a decade or more. About 50% of our workforce in our Baddi plant has been with us for a decade, 10 years or more. It is a pretty stable teams we have both in, rather everywhere, in our corporate office or in our CFA or in our repair and service centers, and especially at Baddi. In the same breath, I am also happy to share with you, your company was awarded in the last three months, two awards. One is Best Workplace. We were actually conferred Best Workplace award a couple of months back. We also got another award, which was Best Brands for Women.
That largely was not on what we are offering to women consumer, but it is more of what kind of environment we give to our women workforce and women colleagues. I am also happy to share about 90% of our workforce at our Baddi plant is women. That has been the case for a very long time. We have also rolled the same thing out in our repair and service centers, in our corporate office, bringing more inclusivity as well as a good ratio of men and women colleagues. We have really kept our colleagues happy. We have kept them motivated, which has led to attrition of less than 7%. Corporate attrition is not even 2%. I do not remember when the last employee left, at least in the last six months. We have a pretty stable workforce.
Two people sitting to my left and right put together a 25 year old. We have about 17 employees who have spent 25 years in the company. We are a good place to work. People are committed. People see a future here, and I am happy to share that with you.
Sure. There are questions on the retail format, Just Watches, and how we are planning to expand that format. Sure.
Retail is an important growth lever for us. If you see the market, our direct competition, about 40%-42% of business comes from retail formats. They have three of them. While we were more or less B2B business for the longest time, we realized consumer is changing. Our brand portfolio is becoming larger. You need exclusive retail presence to give the experience which you want to give, a curated experience to your consumer, and also to showcase all your brands and ever-evolving list of your brands. That's where we started ramping up our Timex World, but we also acquired Just Watches. As I mentioned, we have 22 stores now, and Timex World is 20. We are stabilizing our operation. We are stabilizing our franchising network. None of these formats we run ourself. They are franchisee-owned, franchisee-operated.
That's the best format to expand because you have multiple partners who can open stores day in, day out, versus corporate stores. We have the format right, we have the right commercial model, we have the right product mix, brand mix, and we are building more on it for the rest of this year. In the coming year, and when I say coming year, I mean January, not April, we'll start expanding both the formats. Our aspiration is that we should have about 300 stores across these two formats in the next two to three years.
Sure. There are some questions on the jewelry business that the company has launched recently and how it's expected to contribute to the revenue in the future.
Sure. Let me assure our shareholders, our focus remains on watches, and it's a huge market. Our share is still small. As I mentioned, 19%, there is a long way to go. You have to do multiple things if you really have to gain market share. Jewelry in India, costume jewelry in India is at a nascent stage. Premium costume jewelry, I should say, because India is obsessed with fine jewelry. The youth and the youngsters are actually investing in costume jewelry. This was our opportunity to be the first mover. Worldwide, watches are not sold in isolation. Worldwide, whether it's Americas or Europe, the watches are sold along the jewelry. They're called W&J stores, watches and jewelry stores. In India, that concept doesn't lie. We are the pioneer to really start that concept in India.
Also we had an opportunity with one of the biggest brands to bring jewelry into the country, which is GUESS. As a parent company, we already have a license for GUESS watches, which is doing amazingly well, which has become number three fashion brand in the country. GUESS jewelry was the natural first brand to introduce to own jewelry space. We are making inroads and being first mover. What business it can contribute? It's not going to be a very large business, at least in the next three, four years. I think the way it is moving up, say, in about five years, that can potentially become about 7%-8% of our total business. At this point in time, it is to establish it being a first mover and then keep on adding more brands in costume jewelry and largely change the landscape.
None of the watch retailers in the country keeps jewelry today. Say, if you go out to many of the point of sale in Mumbai, Delhi, and Bangalore, say, in about 15 days from now, you will see GUESS jewelry being placed. We are working with our retailers, trying to show them the opportunity and being part of our journey to establish jewelry as an extension of watches. That's where we are. Currently, it's a minuscule business. It doesn't contribute much. It is not planned also to be a large business in next year or year after, but it's like initiation and maybe about five years, it should contribute high single digit for our company.
Sure. There is a question on the GUESS margins increase due to local manufacturing.
Sure. Guess is the biggest brand which we have in license portfolio. That is where we are currently working with our global supply chains and move those supply chains partially to India. Largely, it is not about margins, I should say, it is also about many other things. If you look around macroeconomic factors, who was in which part of the world also creates a lot of uncertainty on global supply chains. Of course, relationship with China happens to be one of the bigger producer of watches for all our brands, and probably that is the case with us as well. It is more to de-risk our business, more the biggest brand which we have, partially. The top sellers in GUESS, we intend to make in India. One is, it de-risks our business from global turmoil, tariff turmoil, the wars, and other factors which are happening.
The other factor would be our speed to market would be way higher. Today, when you import, of course, you have to commit yourself six to eight months before the delivery comes. While we bring the supply chains to India, we can reduce this lead time to about 90 days. Of course, it will help us either offer the brand and the products at better prices to the consumer or add this to our margins. Our plan is to do both. We want to give a more aggressive price point to our consumer while we improve our margins as well. Any which way, GUESS margins are almost similar to Timex margins. Margins are not less as such, but that will further help us augment our margins. But the drive, the movement to India is for various factors.
Sure. Thank you. We had some suggestions from the shareholders regarding holding the regular phone calls and also considering the NSE listing. We have noted the suggestions, and we will consider internally and we will come back to the shareholders. Amit, there are some questions relating to finance. One was regarding recording of the revenue in the P&L of primary or secondary sale.
Yeah. The revenue is recognized as per the accepted accounting principles in India. The accounting policy has already been given in the annual report. As per the accounting policy, whenever the title and the control over the goods is transferred, the revenue is recognized. It depends on the relationship. If it is a consignment relationship, we are recognizing on the secondary sales. But if it is a principal-to-principal sale, then we are recognizing the primary sales.
Sure. GST reduction impact on watches.
Yeah. I think the London shareholder mentioned that the GST of 28% is applicable on watches, but this is incorrect information. The watches attract 18% GST. At this point, we do not see anything changing, but if it changes, then obviously we will take the relevant action.
Sure. The other question was on the dividend. Basically, the shareholders have noted that this year the company has written off all the accumulated losses from the balance sheet, and for the first time, the company is paying the dividend on the preference shares. We expect that with the profits in the coming years, the company would be able to redeem its liability of the accumulated dividend and the redemption of preference shares, and thereafter would have the distributable profits for payment of dividend to the equity shareholders also. Yeah, I think we have covered all the questions from the shareholders.
Yeah, couple of points. One was, I think, on the related party transactions. Somebody asked that.
Sure.
Yeah.
Basically, the company has a very well-designed institutional mechanism for the related party transactions. The company enters into agreement for all those kinds of transactions with the intra-affiliate or the other related parties. The company has very good auditor firms. Deloitte is the statutory auditor, and Grant Thornton is the internal auditors. Then we have the secretary auditors. All the auditors check all the related party transactions. There is a mechanism. These transactions go to the audit committee. The independent directors approve the related party transactions in advance, and the transactions are executed at arm's length basis based on the transfer pricing mechanism. There is a foolproof system which takes care of the pre and post activities for entering into related party transactions at all the levels, whether it is material or non-material.
One of the question was on the carbon emission and the solar plant.
That question was not complete.
Could not complete that question.
But I think we have a plan that in the recent future, we will be installing a solar panel in Baddi and we will be looking after the environmental compliances. One of the question was on the parent company support, that how parent company is supporting the expansion. Maybe you can share.
Sure. Yeah. I do not know if you could hear what Mr. Amit Jain said. This is on how parent company is supporting us. As you know, we have not been making money for the longest time in India, and that longest time is like 34, 35 years. And parent company has been actually supporting by various means and ways to keep us afloat while we were losing money all these years, and that commitment continues. Since somebody also asked how our accumulated losses are, we have wiped out all our accumulated losses about two quarters back. Now we are actually, I am happy to share that we are actually paying taxes now, corporate taxes. We are making money.
Overall, it is like the biggest support, if you ask, beyond the funding our losses for the longest time is that we get all the brands which our parent company signs for any other part of the world at the same time. And that also has led to the growth which we have seen. As I mentioned, our licensed portfolio contributes 30% of our business. And these are all 14, 15 brands which we have got the rights from our parent company at the same time when they have launched anywhere in the world, and that also has led to the growth which we are experiencing at this point.
Right. And last, what I noticed is somebody has asked over email that what is our three-year guidance? As a company, we never issue-
We don't give that
-any forward-looking statement and guidance, so we will not be able to comment.
Is there any other question?
Nothing.
Okay. I think we have answered all the questions. Especially our D-Rose, please feel free to drop us a mail and we'll swiftly come back to you with any query which you may have. But before I end, I wanted to share with you two exciting things, rather two and a half. One is we are launching Aston Martin from this October. So that's our newest brand which we are adding. It's a very, very premium brand globally. It's a British brand, and we have the license globally for the watches. And we are launching at the same time when we are launching anywhere else in the world, which is October this year, just about two months from now. Second is we have also signed up Bhumi Pednekar, if I'm pronouncing that right, as our brand ambassador for Versace.
We are going to start the campaign from next week onwards. As I said, two and a half. The third thing is we have also signed up our continued partnership with India Beach Fashion Week, which happens every year in Goa. This year it is happening in Goa again on 10th and 11th. We are the title sponsor. It is Timex presents India Beach Fashion Week sort of sponsorship we have done. These are smaller things which is happening as we speak. But we continue investing on brand, not only on Timex, but all other key brands, which is GUESS, Versace and GC. We continue creating more relevance and consideration for Timex. Thank you.
Thank you. So this concludes the transaction of business mentioned in the notice convening the 37th AGM of company. I now request the e-voting to take place. Please note that the e-voting can be done for another 15 minutes from the conclusion of this meeting. I thank all the board members for their participation in the meeting and request all of them to please leave the meeting at their convenience. Thank you, Chairman, for the smooth conduct of the meeting.