Good day, ladies and gentlemen, and a very warm welcome to the Page Industries Limited Q1 FY 2023 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. Should you need assistance during the conference call, please signal an operator by pressing star followed by zero on your touchtone phone. Please note that this conference is being recorded. I'm now glad to hand the conference over to Mr. V.S. Ganesh, Managing Director of Page Industries Limited. Thank you, and over to you, sir.
Thank you. Thank you so much, and good evening, everyone. It's a pleasure to talk to you all once again. I'm happy to inform you that we have registered a robust revenue growth backed with record margins and earnings per share performance, which is aided by very good growth across all product categories. With intensified focus on distribution, modern trade, e-com, and even and also with our concentration on the B2C side of the business, along with our drive to increase the product strength, increase consumer engagement, and also have made substantial progress in the digitally-led marketplace. This has led to an amazing performance, which is a record in our history. Looking ahead, despite the volatile macroeconomic environment, we are very confident in our ability to further build on to the progress made so far and continue to drive a strong top and bottom-line growth.
This is possible by our incredible teams who come together to connect closer to the consumer than any time before. I'm delighted to inform you that our Q1 revenues grew by 21% quarter-on-quarter and 167% year-on-year. Volume grew by 26% quarter-on-quarter and 150% year-on-year. As of June end, we are present in 113,715 EBOs, 1,144 EBOs, and 3,026+ LFS. Our capacity expansion is continuing to grow. It is heartening to note that our supply chain is very much back on track despite witnessing major demand shifts. During the quarter, we faced a very high inflationary trend which impacted nearly all the costs, including the price of cotton, packaging, fuel, and the logistics.
However, company was able to partially reverse these trends and was able to hold on to the margins, which basically was due to the calibrated pricing action and of course backed by strong budget and expense control measures and optimum use of inventories. The mix of being aggressive to conquer the marketplace with financial conservatism has helped us to achieve the results which we achieved during the quarter. Our expansion plans are very much in line with the accelerated sales growth trends that we are seeing in the marketplace, and this is also supplemented by strengthening our relationship with our valued supply chain partners. We will continue to have our undivided attention on our growing categories, namely, Athleisure, women's business, and juniors. Similarly, our retail expansion will also have equal focus for Tier 3 and Tier 4 as we have for metros Tier 1 and Tier 2.
I'm also happy to inform that our Speedo business is back on track, and the revenue numbers are very much in line with our budget estimates. Let me take this opportunity to thank on your behalf the 28,000+ associates for giving us the best ever quarter in our history and congratulate them along with you for crossing the INR 200 crore mark for the quarter. This is again a record in Page history. I'm also joined by Mr. Gagan Sehgal, our COO, who will be more than happy to answer any questions that you may have in his domain. Thank you once again for joining, and I now would request our CFO, Mr. Chandrasekar, to give you further insights on our Q1 financial performance.
Yeah. Thank you very much, Mr. Ganesh. Good evening, everyone. Thanks for being on the call. I hope I'm audible and clear.
Yes. Yes.
The Q1 revenues were INR 13,413 million compared with the year on year, which was INR 5,015 million. Most of you would have seen the numbers on the earnings presentation. It was a growth of about 167% quarter on quarter. But it's also importantly a growth of 21%, 161% and 18% on the previous quarter. The EBITDA is INR 2,978 million. It compares with only INR 342 million year on year.
A growth of 771% and on the previous quarter, Q4, it was INR 2,671 million. Again, a growth of 11%. EBITDA margins are good, 22.2% compared with 6.8% year-on-year and 24% quarter-on-quarter. The PAT also INR 2,070 million compares with INR 109 million year-on-year, a growth of 1,791%. Quarter-on-quarter, which is Q4 of FY 2022, it was INR 1,905 million, a growth of 9%. PAT margins are 15.4% compared with only 2.2% year-on-year, and quarter-on-quarter was 17.1%. The gross margins were 39.4%, which compares with 34%.
The cash equivalents have also been good, INR 3,144 million, compared with INR 2,835 million in Q4. The net working capital has gone up to INR 7,312 million against INR 6,317 million in Q4. The inventory primarily has gone to INR 11,204 million. It compares with INR 9,749 million. Those of you who have been observing, we are gradually building up good inventory, good quality inventory over the quarters. I'm glad to report that. A good number, the best ever as MD was saying. Let's go to the Q&A session, please.
Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. 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 Tejas Shah from Spark Capital. Please go ahead.
Hi. Thanks for the opportunity and congrats on a very good set of numbers. Couple of questions. First on demand. Overall looks a very robust quarter, but if you have to slice and dice demand in terms of rural, urban and even Tier 2, Tier 3 centers versus urban, how the pricing absorption have been relatively in all the markets.
Mr. Shah, the traction was equal across metro, Tier 1, Tier 2, three, and four. As you know, we look at our own TG, that is a group which belongs to a particular income bracket. They just happen to be in the rural or Tier 3 or Tier 4 . There has been no letdown as far as demand is concerned. In fact, we are seeing a high level of premiumization happening, and we see many of our consumers moving away from more basic products to more premium products. We are taking a lot of action on the supply chain side to meet those growing demand. Actually, we are seeing that demand shift happening.
This is very interesting and very unique also in some form because most of the consumer companies from FMCG to even value retailers have struggled this quarter in Tier 2 and rural centers, and we seem to be doing very well there. Any further consumer insights, sir, that? Why what? You mentioned that there's a premiumization, but if a consumer is not able to premiumize, let's say in basic FMCG products with low price points, what is working for us? I'm asking for very sector level or category level insights, if you can share.
Mr. Shah, I can see two things. I think the growth is also thanks to the rapid retail expansion which we had the last few quarters. It's bearing fruits now, you know? So that is definitely there. And second is, I need to thank our product development team. They have come with some very exciting products which our loyal consumers have no choice but to upgrade themselves to, because they are so good at the price points at which we have placed those products. It is very, very difficult to say no to those products.
Sure. The consumer personally can vouch for that one. Moving on the second point, second question. If we see three-year CAGR, for a 17% earnings CAGR, EBITDA has also remained with the same CAGR only. Is it by choice that operating leverage doesn't show up in numbers because we reinvest or there was any one-off or any other pressure that didn't allow operating leverage to surface in this quarter?
Mr. Shah, in a way, I can say we regulate our EBITDA. We always maintain it at 21%, and we pass on the benefits to our consumers. By doing that, it has helped us to be a value for money brand, you know. We calibrate our MRP price increase to be in this zone.
Okay. Sir, last one. You mentioned just now that, in fact, even in your opening remarks, you mentioned that we are closer to the consumer like never before. If you can elaborate a bit on that one.
The retail expansion which has happened is tremendous. In fact, the kind of expansion which we have witnessed in the last one year is something we have done. It took four years in the past to achieve those kind of numbers. I can say the acceleration is 4x when it comes to the MBO expansion, and the EBOs have also grown. We have also strengthened our team on the ground. That has enabled much better engagement. There has been quite a lot of IT intervention which has helped us to connect much better. We also you know making sure that even with our partners, we have now joint business plans being worked out with them. The ARS is being worked out very closely with them.
The engagement levels have gone up with all these enablers in place. This has really helped us to feel the pulse of the market and be relevant in the market when it comes to the supplies.
Yeah, sure. Great, sir. Thanks, and all the best to the team for coming quarters.
It's a pleasure talking to you.
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Nihal Jham from Edelweiss. Please go ahead.
Yes, thank you so much, and good evening, and congratulations on the strong performance. Couple of questions from my side, sir. First, what is the kind of price hike we've taken this quarter post the 5% hike we've taken in December?
Nihal, good evening. Yes, you are right. We have taken around 3.5%-4.5% price hike, which was in line with the input cost pressures which the industry was facing.
Understood. Just, you know, looking at how cotton, which is our main product, has moved and despite the recent correction, there has been a much higher increase than maybe what this 3.5%-4% could have taken care of. Just to understand that, is there any change in terms of, you know, the mix of the raw materials we use or any of the other aspects you may want to highlight in terms of how we managed to, you know, take care of the inflation?
Yes. You know, we have not changed any mix because we are obsessed with quality, and we don't want to tweak that for cutting costs. That will be the last thing as a brand we'd be doing, because we have the utmost respect for our consumers, and we actually don't want to change the recipe with which they are comfortable with. I would rather thank the finance team and our execution teams for showing tremendous financial discipline. I will rather say the robust financial conservatism which we had has helped us. We can see that many of our costs are well under control. I should also thank K.C and team for this. Along with that is also the efficient use of inventory, which has helped us.
We have also been sweating our assets much better. As we told you in the last investor call, we are now working on shifts, and in fact, we increased our capacity by 46% by introducing shift operations. This has helped us to absorb the overheads much better because we have started sweating the assets much better than before. All these three things have helped us to continue to be value for money. Despite all these input pressures, we were able to contain the price hike to 3.5%-4.5%.
That was helpful, Mr. Ganesh. The second question was, I know, you know, we don't break our business between Athleisure and men's and women's anymore, but if you had to compare to pre-COVID quarter of Q1 versus now, is it possible just to give a sense of, you know, how these parts have moved? Would be interested in knowing how different your channel mix is, given that there has been a strong surge in the EBOs also that have opened over the last three years.
Yes, Nihal. You are right. You know, we don't give those breakups. Just to give you a perspective, the Athleisure has performed much better than what we thought. When you know, the back to office started, we thought the Athleisure traction will come down. To our surprise, it has grown. Every category has grown. Our Athleisure category has also grown. For our consumers, I think it was a discovery during the pandemic that we have amazing products at the right price. I think we were able to get more consumers into our base, and therefore, the trajectory continues to improve.
Sure. On the channel, say between EBOs and the general channel, how is that mix changed, say, versus pre-COVID?
The mix continues to be the same. Only area where I can see a good increase is in the e-com side, where the business has moved from 3% of our revenue to around 8.5%, compared to the previous years. You know, during pandemic it was around 9%-10%. Now it is around 8.5%. I think it will continue to be in that zone. Between the modern trade and the MBOs, the mix continues to be as before.
That is very helpful, Mr. Ganesh. I will come back in case we have more questions.
Thank you. Thank you, Nihal.
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Prerna Jhunjhunwala from Elara Capital. Please go ahead.
Hello. Thank you for the opportunity. I would like to understand the progress on Jockey Juniors. You had earlier mentioned that there are around 100 sales force which is deployed in Jockey Juniors. What is the progress in that segment today, and where is our penetration with respect to our targets?
Gagan, do you want to take that?
Yes. Thank you. Yes, Ms. Prerna, thanks for the question. We are seeing a very healthy growth in juniors, and in fact, we had merged our juniors business with the women innerwear business almost a year back. That is really helping us because the number of touch points and the number of MBOs in the women innerwear were definitely far more than juniors at that point of time. With both the teams getting merged, we have a larger workforce on the ground, and every single outlet which sells women innerwear, we are tapping them for juniors, which is giving us a very healthy growth. Because obviously, when a mother comes to buy for herself, she'll buy for the kid also.
Keeping that in mind, we are very satisfied against the target when it comes to our growth in juniors.
Okay. Sir, you used to talk about the penetration levels in men and women, so could you please highlight the same for kids as well? Where are we on men and women as well on penetration? Because we have expanded in rural also now, and that would have improved our penetration levels overall.
Yeah. As per the data that we have from BCG, you know, our penetration level in men and overall in innerwear is around anywhere between 18%-20% as of now. When it comes to athleisure and all, it is around 7%-8%. Juniors is also around that much as of now. We see a lot of scope in the future for us to grow, keeping in mind that we have the number of touch points that we have grown. While we are opening more and more MBOs, we are trying to tap the existing MBOs to sell the Juniors as range selling. That is what we are focusing on.
We definitely see a lot of scope for our future growth, in the years to come in the junior business.
Okay. Sir, my second question is on overall growth in EBO and MBO strategy. Now that you are focusing on beyond Tier 2, kind of geographical mix, where are we in terms of targets? I understand that you would have, you know, mapped the cities or the towns that you want to eventually be present in. What is the kind of, you know, where we have reached in terms of those targets? Just trying to understand the penetration in the Tier 3, Tier 4, five cities and the progress on the same.
Ma'am, in the last two years during pandemic, we have grown, you know, from 65,000 MBOs to around 115,000 MBOs right now. The strategy was obviously keeping in mind, you know, both metros as well as Tier 3 and Tier 4. Our growth in number of MBOs has been equal, almost equal, similar when it comes to Tier 3 and Tier 4 as well. The whole idea was to keep in mind, you know, to map those towns and cities where we see potential, where we see our consumers, but our reach definitely had to grow there.
Keeping that in mind, we had a sniper approach, and keeping in mind every city and every town, and also where we were represented by a certain, maybe MBO, but maybe it was only men Innerwear, and we needed to add more categories. We went ahead in a very scientific manner, and we are very satisfied with the growth that we have, you know, in the that we have grown in the last two years when it comes to the number of outlets. Having said that, we definitely have a game plan in mind for future as well, and we'll continue to grow, because we see opportunities staring at us even now. But at the same time, as we have grown the number of MBOs, we are also nurturing those MBOs for all categories, right?
There's a large chunk of, in fact, MBOs in this quarter one itself, where you know, almost 30,000+ outlets where we have done range selling, which are existing outlets, but we've added new range, which we call doors within doors. We have our plan completely chalked out in terms of where we want to be present and how we want to be present without disturbing the existing outlets, right? It is all done in a very, very planned manner with geotagging and all. Yes, if that answers your question.
Yeah, to some extent. Last question is on primary versus secondary sales because we are expanding our primary network as well. If you could give some color on secondary sales growth versus primary sales growth?
Ma'am, in the last, you know, this quarter as well as in the last, you know, two years also, we have seen that our primary and secondary sales are absolutely hand in hand, so there is no inventory built up when it comes, you know, at the distributor points or at the retail point. The primary and secondary are absolutely mirroring each other. We are very happy with that because the major focus is on secondary, especially with the ARS in mind and, you know, all the distributors, mostly being on ARS. The focus is on secondary, and what is sold to the retailer is what gets billed to the distributor through ARS. We are happy. We are very happy.
It's absolutely same growth when it comes to the secondary.
That's fantastic. ARS is implemented across categories now, or is it?
More or less, men in a way are almost 80%+ is on ARS and other categories also significant part of the business is on ARS.
Okay. Thank you so much, sir. That's helpful.
Thank you.
Thank you. The next question is from the line of Aniket Sethi from ICICI Securities. Please go ahead.
Hi, sir. Thanks for the opportunity and congrats for another great quarter. On the employee side, you know, there's also a comment in the press release. Can you discuss some of the areas you are now investing in? Is it, you know, something on the corporate side or some specific channels or segments you are increasing your investments? Will increasing your or rather the intent to increase your penetration in lower Tier cities also require some investments on the employee side, or you are more largely covered for it?
Mr. Sethi, yes, there is a proportionate increase in our sales force, you know, as we penetrate. You know, that also gives corresponding top line. It's based on the plan which we have. We have obviously increased the number of people on the ground in line with the expansion which we have had on the retail. The below the line marketing expenses are also being in line with the expansions which we are having. We do have a strong budget process in place so that we are ready with all the resources for us to meet this growing expansion, which is happening at a pretty rapid pace. We have robust systems and processes in place to manage this.
Understood. You know, please correct me if I'm wrong. You know, what I understand on the junior side, initially when you started, the initial pilots were having the junior assortment within the women outlet. After probably, the initial good amount of success, we decided to operate through different channels. Now we are kind of pivoting back to the earlier things. What are some of the learnings or what are some of the tweaks we are doing this time around?
No major tweak. Actually, Jockey Juniors is merged with women's, so that we get that efficiency right from distribution to ensuring that the relationship with the retail partners are in good hands. We can also have more resources to concentrate on these businesses. As you know, it's most of the time, eight out of 10 times, it's the lady of the house who buys for the children. That was the whole reason why we wanted to have this dovetailing, which has worked beautifully. It is showing results. Jockey Juniors actually. You know, as a brand, we are always cautiously aggressive, so we were testing the market and we were trying to feel the pulse of the consumer because we wanted to come with offerings which are relevant to our consumers.
We did decide to take our time on that. Now we have got very exciting products to offer to our consumers, and that is shown in a tremendous top-line growth in this category.
Understood, sir. The last bit I just want to understand in the last couple of years or at least let's say three, four years if we see the pace of new launches has kind of you know not just in Athleisure but anecdotally it feels that the pace of new launches has picked up really well and probably a lot of the premiumization is coming on that front. So what is the strategy out there? If you could also share let's say in terms of do you have some target number of SKUs you wanna operate? Or how do you manage the strategy of new launches and you know rationalizing the tail end of the SKUs?
Very good question, Mr. Sethi. You know, when you said we rapidly expanded or come out with enrichment of the categories, according to us, you know, I think we were a bit slow because of the pandemic. We didn't want to go all out. Actually, we were regulating it because the business environment was not all that conducive to come with new and new products. Even from a supply chain point of view, we didn't want to add complexity. It was so challenging for us at that time. I'm happy to hear despite that you feel that we have done a good job, which is very encouraging to hear. There is much more to come. It is something which is done with a lot of thought, so we don't enrich or add products to achieve some numbers.
We look at the need. We look at each category, the products which are there for the offering, the gaps which are there, and therefore what we need to do to fill those gaps in. It's a measured, studied intervention which we have, rather than just adding more and more styles and complexities to the business. That is what we have been doing. As you know, we have also added new and newer categories, which is also giving us scope. As I told you, Juniors is something where we have actually been coming with more products because we started off late.
Bras is one area where, you know, in the country itself, the, you know, it's in nascent stage, and we have this advantage of having the knowledge about the consumer and the technology, and we are leveraging that. These are spaces where there are huge product gaps which we are trying to fill, and there is much more we need to do.
Right. Got it. That's really helpful. If I can just squeeze, you know, one last question in. On the Tier 3, Tier 4 cities, probably what some of the other retail companies try to do is, let's say the brand penetration can happen using the LFS format and, you know, after that if the resonance is established, you expand through EBOs. Just want to understand where are we in that cycle? I mean, how well are our EBOs established or right now the LFS thing is done and we wanna expand more through our retail network. If you could just broadly discuss that.
Tier 3, Tier 4, as I told you before, you know, it is. We are not looking at a specific product category for those Tiers because, you know, the consumer, his aspirational and his desire for our products across categories and range remains the same, irrespective of being metro or Tier 3, Tier 4. We don't have curated product range for those markets, you know. When we look at even e-com, when we see the kind of basket sizes which we are having from these cities, it is as good as metro or Tier 1, Tier 2. You know, that kind of reinforces that we are going the right way. When it comes to EBOs, which you were talking about or modern trade, you know, the smart cities have room for it.
Obviously the EBO size and visual merchandising will be in line with the velocity of sales which we can achieve there, you know. We will be having the right format there when it comes to EBOs.
Understood. The takeaway probably right now the expansion is more MBOs and LFS side on the Tier 3, Tier 4 markets. Is that understanding right?
No, it is happening in both places, even the EBOs, because, you know, we exited March with 1,144 EBOs. I'm sorry.
EBOs. Yes.
I'm very sorry for that. 1,044 EBOs we exited in March. That means we need to have a presence in Tier 2 cities as well. It can't be just metros and Tier 1. We map it pin code wise, look at the possibilities, and we make sure our franchisee partners turns around within six months. Only if we are confident about that, we allow them to invest in the business.
Understood, sir. Got it. That's really helpful. Thank you and wish you all the very best.
Thank you.
Before we take the next question, we would like to remind participants that you may press star and one to ask a question. Participants are requested to limit their questions to two per participant. The next question is from the line of Madhu from Canara HSBC. Please go ahead.
Right. Yeah, hi, sir. Some of the direct to consumer D2C brands using the e-commerce channel. How do you see that impact maybe over a two- to three-year perspective? Because though they are still relatively new, they might have a target audience for that.
Of course, they do have a target audience and, you know, this is the emerging market and, you know, Jockey also has very young customer base and they will also be looking at that. Please believe that offense is the best defense. We are looking at ourselves as if we were only a D2C brand, how we could play and act differently if we are a D2C brand. We have a team which works with a top line and bottom line focus on D2C and, they work like a profit center and they come with interventions required. Make sure that they work independently so that they think like a D2C brand, like a startup company. This is what is happening. We don't.
Today we, our e-com team, everybody is merged with D2C, and that is what we have done. We are leaving no stone unturned as regards availability is concerned, visibility, the presentability when it comes to content and cataloging, the buying experience. We also done quite a lot of work as regards tech upgradation is concerned. Worked on also better product discoverability and operations also. In fact we have even dedicated warehouses to cater to this and they work how a D2C warehouse work. We don't combine them with our distribution warehouses. Quite a lot of work has happened including functioning. You know, we are very serious about it. You can say we have a brand within our brand when it comes to D2C and we consider this like a startup.
Okay. Just one more, sir. Just you said that, you know, you're using the shifts to increase the capacity. I mean, any regulatory issues there or so how much more, I mean, potential is there for improvement in utilization through the shifts?
Absolutely no regulatory issues. The labor, we follow the labor code. What we do is we make sure all operators are given transport. We have safety officers in every bus or security officers in every bus. You know, the working hours are respected. Shift work is allowed in the industry. In fact, many governments today there are regulations to even allow three shifts. We are not going to that extent. Theoretically, between you and me, we can actually double the capacity, but we are not looking at that because we may not kind of get the manpower. We are looking at around 1.4x, which we almost achieved, and we may stop there because going beyond that may be too much for us to manage.
This helped us during the pandemic because even while we were working at the full capacity, we were able to have the social distancing. With the manpower availability and potential, we may stop at 1.4x of what it used to be. Because we don't want to operate our business at long distance and cause inconvenience to our associates. We don't want them to travel long distance.
Okay, sir. Thanks and all the best.
Yes.
Thank you. The next question is from the line of Ankit Kedia from PhillipCapital. Please go ahead.
Sir, three questions from my side. First is on the EBOs. Sir, in last seven years, women dedicated EBOs, we are still sub 50, while Jockey Juniors in last two years, we have, you know, scaled it up to 70+. What is the challenge we are facing in women dedicated EBOs compared to Jockey Juniors?
Mr. Ankit, I don't see a challenge. It is more need-based. See, what happens is if there is a potential area where we already have a EBO, but the footprint, the square feet is not good enough, then that warrants exclusive women's EBO. That is where we do that. Otherwise, we always look at one destination for the family to shop, if they can come in where the men's, women's, they can all shop. Standalone women's EBOs is mostly because of some constraints which we might have had in pockets. As a strategy, we never are looking at a women-only EBO so far. You know, it is based on the location. Yeah. What we believe is in having a house of Jockey where the whole family can come in and have their shopping experience.
What is prompting us to open Jockey Juniors? You know, from a size perspective, from a SKU perspective, what is the minimum SKUs needed to put in the EBO from a Jockey Juniors? Because, you know, from kids you also need to refresh inventory. You don't expect the same kid to wear the same, you know, design year after year. Compared to men and women, it would be very different. From that, you know, what are we doing on the inventory side, and how big is the Jockey Juniors' EBO on an average?
If you are looking at the footprint, it is around 200 sq ft-300 sq ft is what we may need to do justice to the product assortment which we have today to do justice to the category. Ankit, were you talking about standalone Juniors EBOs, or I am a bit confused.
Yes, sir. Standalone, Juniors EBOs.
Standalone, juniors EBOs are usually adjacent to a, you know, Jockey EBO. It's attached to it, so that it again becomes a house of Jockey. It is not far away. Of course, if there is some space constraint, it may be one or two shops away, not much distance. That is how we always try to position ourselves.
Thomas.
This helps us to also give better awareness when you have standalone. That is where we have strategically located some of the stores, which helps us to have those signages. Visually it is one store adjacent to a house of Jockey, so that the awareness that Jockey offers juniors, that can be communicated, you know. It's usually the same franchisee, so that they see the profitability as a whole. You know, we don't have juniors exclusive franchisees.
Sure. Sir, my second question is regarding the, you know, royalty which we pay to the parent. What is the R&D now given the, you know, new product launches we have done, new category launches, like masks, handkerchiefs which had in last two years? You know, what are the other categories which the parent has where you feel the Indian market is not mature enough, currently, but in, you know, next two to three years you could bring them, to the Indian market?
I see there is further scope for enriching our existing categories, especially, you know, categories like Athleisure. I think this is something which has come up. The awareness among the consumers has come up recently, and there is much more offerings we can do. Activewear, you know. When we talk about Athleisure, we are talking about Activewear, Workleisure, casual Athleisure, Sleepwear and Loungewear. In the Innerwear side, again, premium products is something. Today, as I told you in the beginning, you know, our consumers seem to be preferring it and the premiumization is happening. That is one area where, you know, we can add value to the product categories. Bras is another area where, as I told you, there's a huge gap if you see what is being offered across the globe and what India has to offer.
This is one area where we are working very, very seriously. We know the gaps there, and we are one brand who can be best in bras in the nation, you know, and we are working towards that. Along with that, as you can see, our accessories are doing very well. You know, we have been there with socks for a long time. It has done well. Our towels, handkerchiefs, caps, they have shown so much traction. You know, almost all years the growth has beaten our plans, and there is much more room to grow in these categories.
Sure. Sir, my last question is on your capacity. You know, in your annual report you have alluded to multiple back-end capacity expansion plans for export, substitute for domestic manufacturing as well as, you know, for socks and others. You know, so now post this, and with the new Odisha plant coming in, do you think that for next two years the capacity expansion is done with? Or, you know, we still feel some need gap for capacity post the current expansion we have?
No, I think we need to plow back part of our generation back to the business to keep growing. The kind of growth we are planning is so accelerated that we need to plow back some of the money to expand our capacities. We do have those plans in place, because we are looking at ambitious accelerated growth in the coming years. We see the potential, and we are going to go all out in achieving those growth plans. We have a five-year plan in place, and our expansions are happening in line with it. As you know, expansions take time, finding land, building, and then recruitment and building capacities takes time. We should always be ahead of the curve, and that's what we are doing.
Sure, sir. Congratulations and all the best.
Thank you. Thank you so much, Ankit.
Thank you. The next question is from the line of Sameer Gupta from India Infoline. Please go ahead.
Hi, sir, congrats on a very good set of numbers. Three questions from my side. First of all, just a clarification. What I heard is the volume growth for this quarter at 150% YoY and 26% QoQ. However, the numbers I have, 150% breaking to a 40% QoQ. Just wanted to reconfirm that number.
K.C, you want to clarify that?
Hi, can you repeat the question?
Volume growth, I think you mentioned is 150% YOY and a 26% QOQ. If I do the math, I am basically getting a 40% QOQ on a 150% YOY. Basically 65 million is what I'm getting for the volume this quarter. Just wanted to.
63 billion is the volume for this quarter, and 25.2 million was the last year for Q1 volume.
That's right.
The Q4 volume was 50 million.
Oh, okay. Sorry.
Yeah.
I think that there was a mistake there. Sorry, sir. Sir, and your thoughts, sir. This is more of a strategy question that I have. We are already a INR 4,000 crore company in turnover, and this is largely a single brand company. Now, I understand that we have our moats, the Jockey brand has its own right to win in segments. I mean, there is a philosophy that, you know, one brand cannot stand for everything, for everybody. In this light, when do we seriously start looking at, you know, diversifying into other brands? We already have a great experience of distribution and running a franchise with Jockey. Speedo is very small and has its own challenges in scaling up. Your thoughts on this, sir.
Well, as Gagan told during the interim clarifications which he gave, we are in the teens when it comes to market penetration, the men's innerwear, and we are in single digits in other categories. Overall, if we look at it, maybe we are 12% in the market share. There is so much headroom for us to grow. If you see the product range, how it has moved over time, you know. Even if you look at the numbers from years back and today, it has transformed, and that's the speed at which it is happening. There is so much to do, and there is so much to grow. Along with that is the growth in the economy.
The economy, that market or the target group is also growing at 10.5% year-on-year. If we grow at 10.5% year-on-year, we are just maintaining the position, we are not penetrating further. The last thing we can do is to distract ourselves by trying to do too many things. We believe we should try and do what we are good at. There is scope for theoretically, you know, we can double the business in a year, theoretically, you know. It's execution which matters. When you're in that kind of a zone, I think we should be looking at where what is working well and, you know, because we also need to have that bandwidth to manage, and I think this is the best thing to do.
There is also more product or category adjacencies which we can continue to search. We have been discovering more and more. As the consumers' appetite for the products changes, you know, we will discover more and more categories there. As you can see what is happening in our accessories side, you know, what it was five years back and today if you see, it has completely changed. This will continue to be there. That is what, how we see it. Since we have a long way to go, you know, we are not trying to distract ourselves with other thoughts and be at it. Jockey as a brand loves to associate with us. They have so much trust. In fact, you know, they extended our license to 2040 even before. You know, it was for 2030.
Even before the expiry of that, they already extended it till 2040. That's the kind of confidence they have in us. We, you know, we work as a closely-knit team in that sense with full trust and relationship and partnership amongst Jockey International and us. I don't see anything stopping us. We also have quite a lot to do on the Speedo side. If at all we need to look at, we would rather focus on that, and it is showing so much traction of late. We'll continue to nurture that business.
Great, sir. That is a wonderful explanation. Just to point that probably we are the largest apparel brand in the country if you look at just the turnover. Anyways, I'll move on to the next question. Our CapEx plan, sir, I mean, any number that we can give on a guidance two-year, three-year timeframe?
Yeah. K.C., you want to give some?
Yeah. Thanks, V.S. We have an immediate plan of about INR 450 crores plus coming up in FY 2023, which includes investing in Odisha's expansion as well as in, you know, the digital technology roadmap for which we have S/4HANA coming up implementation and also several other initiatives for the front-end and back-end. Going forward, the CapEx could be a function of the capacity that we need. Hopefully, we will need more capacity. Typically it'll be in the region of INR 2,200 crores-INR 250 crores year-on-year at least.
Got it, sir. INR 450 crores for FY 2023. Okay.
Yeah. Sameer, just to further elaborate on what Mr. K.C. said, it's around INR 450 crore for this year. If you look at it historically, it has been INR 200 crore-INR 250 crore. If you see our expansion has been three-pronged. One is quite a lot on capacity building, which is in line with the business plan. Second has been on modernization. The third intervention has been on the IT side of it, where quite a lot of automation has been happening. We always have been finding a nice balance between all the three. We are just not adding machines. We are trying to make the whole system work much more efficiently through all the IT interventions, as Mr. Chandrasekar said.
Be it the Blue Yonder for the supply chain planning, the sales force, you know, they have in their palms all the information which they need, you know. All these interventions, assortment planning. We have been working quite a lot on all these fronts. With the growth, you know, you know, if this trajectory continues, we may have accelerated spends on these so that we can continue to grow at a faster pace.
Thank you, sir. That is a very detailed answer. I think I'm done with my questions. Come back in case I have any.
Thank you.
Thanks.
Thank you, Sameer.
Thank you. The next question is from the line of Bharat Kothari, an individual investor. Please go ahead.
Good evening, sir. Thanks for the opportunity and congrats and great set of numbers. I have a couple of questions. First one is how do you see the cotton price impact on going forward on our margin? This is the first question. Second one is if may I know if you have any idea why promoter is constantly selling our shares of our company even after so great performance? Might be there is some personal reason, but if you can give if it is anything related to like any hint or something like that will be great. If this is already 46%, if I remember correctly, when initially I'm holding it is more than 65% or something. Just trying to understand that part.
The third question, if I can squeeze, might be, what is your, let's say, five-year target of revenue and margin?
Yes. On the promoters' dilution, slight dilution, say, and that the promoters have full control over the affairs of the company. Of course, as you again rightly pointed out, most of the dilutions are need-based and based on their needs. If you overall look at it is really a slight dilution which has happened in the recent past. Mr. Bharat, what was your first question, actually?
Yeah, yeah. Sorry, I asked a few questions.
Cotton price.
Cotton price.
Yes. On the cotton price, actually, there were some corrections which happened in the recent past, but the last one week again we are seeing volatility, so it's a bit unpredictable. We always when we do a budget, we do a conservative budget, so we have taken care of it. We feel, you know, by October, November the prices may come down because of the new crops coming in and looking at the overall demand supply situation because there is a lot of stock available and, the demand is softening because everybody has built strategic stocks. We presume there will be a good correction by October, November. We continuously are keeping a close watch on this. As far as our business is concerned, we have taken care of all this volatility when we have done our budgeting.
When we recently had a price intervention, we kept all those dynamics in mind. There is nothing to worry for us unless there is some drastic changes happening in the marketplace.
Okay. Thank you so much, sir, for answering the question.
Thank you.
Thank you. That was the last question in queue. I now hand the conference over to Mr. Chandrashekar, CFO of Page Industries Limited, for closing comments.
Thank you very much. It was a very, educative, you know, conference call for me and, your support and all the questions have been very good. It's always a pleasure to get a new insight both from the market and investment community every time. We have continued to improve, not just in the business but also in the way we, get insight into several aspects of, how we are perceived. We really value the opinion of all of you. It's a pleasure to be with you once again, and we look forward to the further interaction in the next call. Thanks a lot. Have a very good day.
Thank you very much. Ladies and gentlemen, on behalf of Page Industries Limited, that concludes the call for today. Thank you for joining us, and you may now disconnect your lines.