We hope to gradually regain our 14-15% margin
How do you rate the company’s Q3 performance? How do you think the current year will shape up?
The performance was good with our topline growing 23% and bottomline by 24%. Considering the environment we are in, with significant pressures on distribution, sales etc, it is decent. Our cash position is healthy and we invested around R140 crore for expansion. At 12% overall customer growth, the demand environment is healthy under the circumstances of slowdown. The same store growth of 10% is a result of slowdown in the segment and the consumer spending is also down. Same store growth reflects industry growth and it might have been less than our growth as we usually do better than the industry growth. Hopefully it will get better.
The market was not happy with the margins in your watch division. Please comment.
It is a tough phase for watches. 50% of the inputs are imported. The margins there depend on the currency fluctuations. With the rupee devaluation, we can’t do much. We have undertaken some price increases, we have not passed on the full costs to the consumers, but there is a limit to which we
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