Speciality Restaurants (NSE:SPECIALITY) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Speciality Restaurants q one FY twenty seven earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to mister. Thank you, and over to you, sir. Yeah. Hi. Thank you, Huda. Hello, and good afternoon, everyone present on the call. I, on behalf of ICIC Securities, welcome you on the Speciality Restaurants Limited Q1 FY 'twenty seven Earnings Call.

0:53 I would like to thank the management to give this opportunity of hosting the call to us. From the management, we have with us Mr. Avik Chatterjee, full time director and CEO and Mr. Rajesh Kumar Mota, Executive Director of Finance and CFO. I now hand the call over to the management for their opening remarks and post which we'll open the floor for the Q and A. Thank you and over to you sir. Thank you, Mr. Asutosh. Thank you, Madam Buddha. On behalf of the management of Specialty Restaurants Limited, myself Rajesh Kumar Mohaka, CFO of the company, welcome all the participants to the investors call of the company after the approval of the results for Q1 FY twenty twenty seven by the Board of Directors and submission to the stock exchanges as per the LODR guidelines.

1:48 We had already submitted our investors presentation as well, which we hope may have been seen by ourselves. I would just like to bring three quarter highlights for your ready reference. One, this have been the company's twentieth profitable quarter, which means we are for last five years into profits. Second, the same store sales growth has been at 11.35% precise during the quarter one FY twenty twenty seven as compared to quarter one of FY twenty twenty six with like and like stores operating during both the quarters. Third, there have been improvement in gross margins by 1.2% to 71.1 from 69.9% previous year, primarily because of managing the portions, inefficiencies and continued negotiations with our vendors because of volumes.

2:53 This has been achieved despite the inflationary trend witnessed during the quarter of the current financial year. This concludes my opening remarks. I now welcome all the participants to the Q and A. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press 2. The first question is from the line of, an individual investor.

3:57 Sir, my question would be seeing a strong start to the quarter, how do you expect the balance of the year to pan out? Do you think we can cross that INR 600 crore top line with, I think 15 new stores opening like we spoke last time. Yes. Good evening, Mr. Jaki. Thank you for your support. If I may see the trend has been very positive as we have seen now in this particular quarter and we wish and we hope we are working hard towards maintaining this kind of numbers going forward as well.

4:46 And let's say for instance your question of primarily asking about the total revenues of INR600 crores, I would like to refrain, but yes, we are working hard to see good percentage growth going forward with Q3 of the financial year going to be the good quarter for us. And sir, how did we expand the margins despite the cost pressures? I believe I think first quarter was also slightly tough in terms of gas availability and input pressures, I mean, still we had a reasonable margin quarter. How is that possible? See, there have been I would say there are two parts to this question, sir, from an answer perspective. One, we generally get into rate contracts, etcetera, for the financial year or six months basis, number one. Number two, like gas crisis was all across.

5:49 Like in Mumbai, we had pipe gas, so we did not suffer much from a cylinder's availability point of view. But the biggest change what we witnessed was the management's proactive decision of converting from oil fired, gas fired ranges to induction processes, so which saved us from the crisis of availability of gas. So now we are operating on a hybrid mode, wherein we can immediately switch over to induction that is electricity based from the gas ranges, which we were having earlier. So this was one and as a result of that, when there is a crisis that becomes an opportunity, so we were worked on in case of any efficiencies, we improved upon all those with respect to correct portion size, etcetera, which led to benefits on raw material cost or neutralize the inflationary increase, sir.

6:50 Sir, and one question, if I may add is, see, if we see our investor presentation, our brands, we have a number of brands which are not very visible, and and I think it's it's a large number of brands now. How do you how do you wish to handle this going forward? Do you wish to rationalize the brands or maybe drop some of them? That is part one of the question. Part two of the question, as I have been asking you in the previous calls also, what what do you want to do with Sweet Benvolts, sir? Because that's a that's a, I mean, independent... It can become an independent kind of a vertical. So I would like you to throw some light on that also.

7:40 Sure. Thank you for that question. This is Abhiq Chatterjee, Hold Time Director and CEO of Speciality Restaurants. I would like to take that question off. So the company has been creating brands and has created brands over the past thirty five years. Luckily and thankfully because of the entire team's effort, we have been managed to have every store currently that operates in the company as profitable. Having said that, moving forward, we have done an analogy of what are the power brands and the brands to be focused on to power our growth. So we are going to be having three verticals in specialty restaurants that is the futuristic vertical.

8:26 One is we continue to have oriental as one vertical. Our second vertical is Italian with our new brand Siciliana that's been as a growth engine. And the third one is QSR, under which Sweet Bengal of course falls in and Walter's Burger as our Burger QSR growth model. So going forward, specialty restaurants to power the kind of numbers that we foresee is only going to be working on these three categories to power any form of growth. And your question on Suite Bengal, we have managed to get an added shelf life with new technology involved with our suite, modified packaging.

9:15 We're going through brand evolution and we will be in a lot of new markets in the times to come because of this great technological enhancement. So definitely growth of Sweet Bengal is on the card and we're going to be powering it by technology having the major foray and backing off. So would that mean that sir putting your all your brands under one of the three verticals broadly? Sorry, could you repeat that, please? Would it be would you be then restructuring your entire brand basket under these three broadheads?

10:05 Absolutely. So it's oriental, Italian and QSR and that's the focus of the company and going forward we will also be seeing a lot of the older brands going away from our portfolio because now is the time the company focuses on these power brands to have the growth that we intend to have in the times to come. And sir, would you mind throwing a little light on your in dine versus takeaway share of takeaway? So our delivery business has grown to 29% of the entire portfolio of revenue and the rest goes to dine in.

10:52 So we've had great growth on delivery business while dine in continues to grow for us. Thank you, sir. Fantastic. And best wishes for the year and the coming year, sir. Thank you. Thank you so much. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touch tone telephone. The next question is from the line of from ICICIALITY. Please proceed. Yeah. Hi. Thank you, sir. Thank you for the opportunity. So in continuation to the question asked by the last participant on this dine in mix.

11:39 So what I have seen in the presentation, the delivery mix has basically gone up over last year. And so just wanted to understand, is deliberate it strategy by the management or it is mainly to do with the changing consumer preference or maybe a combination of both, if you can touch upon this thing? Sure. While our dine in business has also seen marginal growth, the delivery business has seen consumption occasions increase. Plus the company has added new formats like Walters Burgers, which are and Sweet Bengals and Haka, which is our digital first brand.

12:25 So these are the ones that actually powered the delivery growth because we have seen that customers are ordering us or seeking our brands at more occasions, not just for dine in but also for delivery. Okay. So we are marketing, advertising in specific delivery segments, tactical discounting at times, recruitment of delivery personnel within the company to spearhead the team. And I think all of these things have powered the growth for delivery and we continue to see this rise in the times to come. Okay. So what I understood from your answer sir is that it's a deliberate call by the management to let the delivery channel grow faster and improve this year despite that it being a lower margin business?

13:26 Rajesh Madhav, this is Mr. Asutosh. See what Mr. Awik said was that the focus on dine in continues to be there it is because of dine in. See what happens is there is a baggage which is there from the brand perspective. People know Mainland China, people know Asia Kitchen. So the brand value plays a very important role, which is resulting into increased delivery despite our let's say if I may say so from what we gather from information from aggregators, our average order value is considered to be one of the highest as far as dine in brands and categories concerned. So it is not like that that we are not we are focusing on delivery. It is let's say for instance if I may use the word buy, buy the buy because of dine in the delivery has also grown. If you put a number into perspective, we were let's say we did a INR71 crores of business of dine in last year, which has increased to INR81 crores in absolute terms.

14:31 Okay. So my next question is, if you can just touch upon how has been the demand so far, like for Q2? Sir, just to put into perspective when you ask on demand, July has been extremely good month compared to earlier July for us and the trend for the first seven, ten days into August has been good. So we are seeing the tailwind which is available for both dine in and delivery. Okay, okay. Understood sir. Thank you sir. That's all from my side. Thank you.

15:17 Thank you. The next question is from the line of Sanjay Narayan from Wealthwise Capital. Please proceed. Good evening, sir, and thank you for the opportunity. Hello? Yeah. Hi. Yes. Yes. So I would thank Abid, sir, for clarifying and reiterating our our brand. Just one suggestion before going forward with my question. If our presentation also captures our ethos and our plans, that would be helpful because when we go through... When as analysts, when we go through the presentation, it becomes slightly difficult to understand our focus.

16:05 So since I've been tracking this company and been invested, so it's easier for me to understand the management's focus in the business and what is the driving trigger. That's just a suggestion. Regarding my questions, one of the question that keeps coming back to my mind, we have we have great regards for and his marketing capability and the wonders. He has been in the mark... On the marketing side apart from this core business also. So that always brings me to a question. We have we have seen Bengal for such a long time. So part of the confectionary businesses like Chitai Chitai has a as a hero product or has their hero product.

17:00 Do management give a thought what can be recalled for a particular product because after thirteen, fourteen years having so much of brand presence and so much of visibility in Mumbai and Pune specifically, Very rarely I come across with very, very strong product. We... On the sales, the sales numbers might be telling this is our strong product. But specifically specifically with our pay degree and our wholesale, that product never never gets communicated in any of our communicating channels. So part a, do we really have one distinguishable product or a hero product in Sweden, Bengal that can do a heavy lifting job for us? That's question one. And question two, related to it, what are we doing with it?

17:55 If we are doing. Sure. A very pertinent question. So actually, Sweden Bengal's most famous or hero product, as you said, is the Kheer Kodhuk, and that's already backed by data. What we do with it is that we promote it at every given occasion, and we always keep it on top of our shelf and top of the mind of the customer. Until date, the Kheer has been the most loved, the most talked about and the most differentiated product when you compete against any other sweet brands. So to answer that question, yes, Sweet Bengal has Kikodam as their most famous brand. And the second one right after that becomes the Misty Doi. The third one after that is the Saundesh.

18:42 So these are our pure Bengali categorized suites that are the most famous and most differentiated and brings people back again and again for these products. And could you just elaborate how we are are matching up this product with more visibility the way the bigger... The the other brands have become bigger, like, soon probably for that's synonymous. And Chitale Bakarwadi. Bakarwadi is synonym with Chitale or with because... Because he. Anything that really tinkled in our mind, like, sweet Bengal, probably, this product should be synonymous to sweet Bengal. Because with experience and we have, I feel that that should trickle down as a as a shareholder and as an analyst, I feel that should trickle down somewhere into it. So any thought on that in the boardroom or any discussion that...

19:42 Did we need to back these products with more visibility? We have any plans for that? Absolutely. So visibility is directly proportion to store expansion into newer markets. There are two forms of visibility as I would look at it. One is the visibility of a customer walking into an existing outlet. For that question, yes, our top three products are displayed first on the shelf. So hence there's a clear visibility for a person to buy it. Now visibility for a new market expansion, the problem with Sweet Bengal for slower growth that we were facing in the company that we had sweets which are perishable. So the shelf life becomes a big challenge for us to manufacture it from one expensive CapEx loaded facility and then transport it to various other locations.

20:38 And the shelf life was giving us a big challenge, but you'd be very, very happy to know that we have been able to crack a thirty day shelf life with our suites and the new modern technology and packaging that we've put in and we will be in many new markets. Hence visibility of our product and the revenue of our product will be grown from these new markets in the times to come. Thank you. I'll come back in queue. I have more questions to ask. Thank you. That's very promising. Thank you. The next question is from the line of Bignesh Ayat from Sequium Investment. Please proceed. Hi. Thank you for the opportunity. Wanted to actually understand I missed initial commentary.

21:27 Could you share what was... What is the same store sales growth number for quarter one? Thank you. If I may, the same store sales growth during quarter one of FY twenty twenty seven was precisely 11.35% for us. Okay. Got it, sir. And just wanted to understand how do you, you know, see this quarter to pan out, you know, considering mainly the fact that you will have, you know, around twenty, twenty five days of coming in and and how does that changes for us in terms of what the offerings are for us?

22:21 See, what happens is now with a large presence across the country, even in Southern India and with our presence in Northern India being low compared to how we are in Western And Eastern India, these kind of cyclicality, say, because of Shawan, etcetera, do not have a major impact on us. Okay. Because we do have, you know, a reasonable exposure in Mumbai as well. I mean, this contributes to our total revenue. So my question was more from that point of view. We fully appreciate it when we talk in terms of Mumbai, sir, it would be more in because of days, there would be a slight impact as far as Western India is concerned. But what happens is if there are pockets, like, let's say, for instance, there would be a substantial growth in the revenue of Sweet Bingo during those period.

23:19 Right. Happens because of our various brands and presence across cities and across regions. Got it. Got it, sir. That's all from my side. Thank you. Thank you. The next question is from the line of Harsh Kumar Jain, an individual investor. Please go ahead. Hello? Sir. Thank you for the opportunity. Congratulations on a good set of numbers. My first question is regarding, do we still see a corporate pressure on weekdays as in that the football is more skewed towards weekend as in Friday, Saturday, Sunday, and not towards the weekdays?

24:11 That is my first question. And second, is profitability becoming disproportionately dependent on just three day weekend window? Or is it the entire thing that is driving on this? Sure. So I'll take up your first question. The first question, the answer to that is that yes, we do have weekday tactical offers, discounts, set meals, corporate lunches, and it varies from brand to brand. On weekdays, we also have tactical discounts or offers or, say, combo meals for delivery. So yes, that does help us. And of course, in any food business, weekends being the most highest in demand.

25:01 We do see the best traction on weekends, but that does not mean that these days are any less. What we've been seeing is in some locations, and it's location driven, we've seen that even weekdays are sometimes better than weekends. So it depends on the kind of geography we're in. Are we in a corporate area where weekends are slow and weekdays are better? Or are we in a more residential area? It actually varies location to location. But overall, if you see, yes, our company's weekend sales are much higher than the weekdays. And in weekdays, and it's actually worldwide as well as an industry. And on weekdays, definitely, we do have tactical offers where required. Sir, if we could quantify this as in the previous conference, there was a mention that it is 40 five-fifty per institution.

25:55 So if we could quantify this for the latest trend in couple of years? See, it continues to be on the same numbers what you said so, sir. Okay. And my second question is regarding Bazaar issue. If I'm not wrong, it was Raj Raj Singh. During that time, we... The management told us that we will be waiting for a year to figure out how this concept evolved, and then there was no information in the coming phone call. So if you can just throw some light on this that would be helpful first. See, Desire Asia was created as a format on buffet for oriental and the company continues to be focusing on oriental cuisine as Mr. Avik mentioned earlier.

26:48 Now what has happened, it all depends upon the location. If we are into a mall, etcetera, we would continue to have Asia Kitchen, right. And it was more done from an oriental cuisine brand as a proof of concept and which has worked favorably for us, but it is a large space for which we require huge amount of manpower and see what happens is when you launch a brand, there is an incubation period. We are almost like in October, we would be two years now, but we are still profitable at that particular location. So the focus on expansion is more on Asia Kitchens Mainland China and wherever tactically we will get such kind of a location where buffet format would be there, we would have a bizarre issue.

27:38 And so just a quick follow-up on this. When you say your focus is on Mainland China and Asia Kitchen, the numbers don't pan out for this as in FY 'twenty two, we had net 31 stores for Mainland China, whereas in FY 'twenty six, it stands out at 35 or 36, if I'm not wrong. So sir, what is stopping us from adding new stores or new geographies, if you can help us with that? See, what has happened like, let's say, for instance, when we talk in terms of Mainland China, Asia Kitchen, there was a phase where we renovated our old Mainland channels, which had been in operation for nine, ten years, and we are continuing to do a renovation.

28:24 And this renovation has created a throughput, which is much higher than what we used to do when it was a older version of Mainland China. With Mr. Avi coming in and this renovation piece being taken over by him calling it internally we call it as Mainland China 2. This has given us a very progressive numbers for post renovation. So that has continued. Now with respect to, let's say, Mainland China, Asia Kitchen, there is a brand called Gong also, which is from an oriental cuisine perspective. So that is also forming part of the oriental cuisine. Maybe that it is christened as Gong, which we started in Pune. Now we are having Mumbai, Bandra. We are opening a Gong in Vasanthaput, Delhi as well. And there would be a second one in Pune as well.

29:18 So then can we say that we are more focusing on oriental rather than Mainland China because then it again creates a confusion for an analyst or an individual investor. So that would be really helpful for So I'll take up that question. When you look at the oriental category, in the past, we have expanded the brand Mainland China a lot. What we realized is, at that point, there was a fair brand fatigue and brand cannibalization that we faced. For example, if it's near five kilometer locations, we were eating into our own sales and revenue. Then after the pandemic, when we had to shut down 29 of our stores, sadly, we got a lot of time to think on strategy on how to keep dominating the oriental segment.

30:10 Hence, we came out with a strategy that the oriental segment of specialty restaurant needs to be on different price segments so that we can universally capture a way wider pie. Now let me name the Oriental brands for you. Right at the top is Gong, which is a INR 2,500 average price per person. Right under that is Mainland China, which is INR $12.50 per person. Then we have Asia Kitchen, which is fairly mainly in mall locations, it's INR $10.50 to INR 1,100 a person. Right under that is our delivery first brand, which is Hakka. That is a INR 600 per person delivery brand.

30:56 What this enables us to do is in city, we can take over the Asian segment by having different facials of our brand themselves without giving brand fatigue and cannibalization. This is our new oriental strategy. Okay. And just a last question from my side. Can you quantify as a percentage of revenue how much was liquor or wet lead for this purpose? We have 8% to 9% of our revenues from our existing stores which are food driven. Episode one is our restaurant where we have 40%.

31:45 Okay. And do we plan to increase this number to a particular target? I mean does the management have any viewpoint of view that they're targeting this number on a totality basis? Absolutely. So we've been working so every new format and renovation that we've done in Mainland China or Asia Kitchen, we have a very visible bar, which previously we did not have. So what we've seen is whenever we've renovated these restaurants and you have a visible physical bar with a bartender, bottle displays, bar offers, our liquor sale has phenomenally jumped up. So in the times to come, every single Mainland China that's going to be renovated will have this bar out of which at least five of them have already been done so.

32:32 And every Asia kitchen by Mainland China into malls are also going to have bars. In fact, we also have stressed on multiple contracts and liquor contracts with liquor companies and our partners. And liquor sale is going to be a big focus for us. In fact, in our restaurant Gong, we're at 38% of liquor sales, which is very, very good and very high. And Sicily, another one. Let's just sum it up, you mean you're planning to have add liquor to every Mainland China store or Asia Pacific store? And you're planning to increase that as a part of your revenue, if I'm if I'm not thinking it in a wrong way. Absolutely.

33:17 Okay. I have a follow-up question. I will just get back in the queue. Thank you so much. Thank you. Thank you. The next question is from the line of Himesh Sadra from Quest Investment. Please proceed. Hello. Yeah. Hi, sir. Hi. Good opportunity. Just wanted to get your understanding on the gross margin side. So given that, you know, we haven't seen inflation going up, just wanted to understand the risk if we can see any impact on the gross margin going forward? Sorry, if I may if I understood correctly, you are asking gross margins going forward?

34:07 Yes. I mean given that are seeing some uptick in the inflation, should that have a risk in terms of the gross margins? Historically, we have been able to maintain at the levels of our gross margins with plusminus 50 bps. But the whole idea is whenever there are huge amounts of pressure on raw material and gross margins, there have been utilization by taking a tactical few percentage price increase because in our as you yourself understand that because of the inflationary pressures not only on gross margins on other expenses as well when we talk in terms of staff costs, power light, fuel etcetera, even the licensing cost increases every year. So we need to balance to ensure that the margins are maintained.

35:02 Got it. So just wanted to clarify this quarter we haven't taken any price yet right till now across six zero? See here what had happened during this particular quarter from June 7 we used to levy service charge which have been withdrawn. We don't levy any kind of a service charge on our restaurants. So there was a so that particular impact there was we had taken some amount of price increase to neutralize that impact. Sure. Got it. I just wanted to understand the margin profile in terms of dine in and delivery because delivery in third quarter has been so is that also the reason why our EBITDA margin has also gone up? See, this is a combination effort. Let's say, for instance, we are wherever we are we as far as cloud kitchens are concerned, there are only 11 in our portfolio.

35:52 We have kitchens within kitchens primarily doing all the brand sales from our existing dine in restaurants. So this kind of an impact, yes, delivery gives you an added advantage. The moment there is a threshold revenue increase, the operating leverage triggers favorably for us. So it becomes beneficial despite direct variable cost on delivery. Sure. Got it. And if I understood correctly, we are planning to add 32 stores during this year. Just wanted a rough split across the client, are we adding more stores? And just want to understand what is... What are the factors that are driving this high store count? Because if I see in the history, we have been operating at around six twenty odd stores.

36:40 So what is the factor now that is driving this a high sold count? Sorry, I don't know where from you have weathered the number of 32. We are not working towards opening 32 stores in this financial year. We continue to maintain eight to 10 restaurants in a particular financial year added with few Walters, which are a smaller format in QSR category. Okay. So for how many stores are you planning for Walters? It would be eight... 10... Between 10 to 15. Because what has happened is that Walters is now on a growth path since already one year has passed, and we are working hard towards Walters to grow from a user category.

37:29 Sure. And just wanted to understand in terms of, do we kind of face any challenges in terms of adding more stores? Like, can we go beyond 50, 20 stores or there's a tab in terms of or probably the market that we are targeting the of the market of Monday. See as far as challenges are concerned, I would definitely say the biggest challenge is getting the trained manpower for restaurants because of we being into a dining space restaurants, maintaining service standards and consistency. So in my opinion, the biggest and the only constraint rest all can be managed with respect to locations, capital allocation, etcetera.

38:18 But staff getting trained staff is one of the challenge in skill etcetera to quadruple on the expansion of restaurants. Got it. Got it. Okay. And last question in terms of the occupancy of the existing stores. Could you just give us a broad number? What is the occupancy right now across our stores? And what can be the peak occupancy probably for some of the top four segments? See from an occupancy perspective, if I may, weekends businesses are very good like Mr. Amit did mention in one of our questions. But overall, let's say for instance, when you look at even overseas or the world restaurants, weekends are the only business where you cross your capacity utilization.

39:09 Weekends and weekdays are always a challenge where like we do offer discounts, etcetera. But yes, footfall becomes a challenge during weekends and it is location, brand, etcetera, which are very critical in this case. But when we look at installed capacity, etcetera, we don't look at the metric as far as what is the total capacity utilization per day for our restaurants. It is more on revenue driven and what how the chairs are getting filled during lunch and dinners of all on weekdays primarily. Sure, sure. Those are the questions from my side. Thank you. Thank you. Thank you. The next question is from the line of from Maximal Capital. Please proceed.

39:59 Yeah. Hi. So I hope I'm audible, and thanks for the opportunity. So my first question is partly answered, but just to confirm, the we are adding, you know, the CEO is mostly because it's a small format,. So the... That's why the number of additional feature is high. Is that correct? Absolutely correct. Okay. Okay, sir. And maybe a related question to that. I mean, in the medium term, which part of our portfolio we are prioritizing in terms of expansion? I mean, we have mixed up oriental and, you know, then we have Indian and different formats also. So what can we expect going forward? Which part of our portfolio will we prioritizing in terms of expansion?

40:47 This would be all three categories of the power growth, which is oriental, Italian and QSR. We're going to be giving it equal weightage and grow them all together because what happens is when we grow any of our oriental brands, all our other oriental brands are anyways live on delivery from that same very location. So even if we open a Mainland China unit, there will be Gong, Asia Kitchen, Haka and Mainland China's delivery going out from that unit. So either we're growing with physical stores and we're growing with delivery stores parallelly. Apart from that, Italian cuisine has become something which is a wonder for our company because back in the day, we were oriental heavy, but this Italian foray for us has given us a very good operational leverage inside malls.

41:43 Previously, we were making deals with malls for Asia Kitchen by Mainland China. Now we're doing simultaneously two deals together with Asia Kitchen and Italian. Hence, we are getting a better deal for the revenue and effort ratio. Over and above, we are also getting more leverage on manpower costs when we're doing two stores in the same spot, obviously resulting in higher revenue because of two units. Apart from this is Walters in Suite Bengal. Got it, sir. Understood. And sir, on the Oriental portfolio side, I mean, we had 11% of this quarter. So how did this oriental portfolio fare this quarter? And, I mean, I understood from your commentary earlier, it's mostly volume driven because, you know, it basically was a service related price side. But did the... Is the Oriental portfolio coming back on the growth path now?

42:44 And, you know, how... What is the outlook there? If I may, our oriental business is sub 50% of the revenues. So when we talk in terms of growth in overall revenue, sir, oriental is the biggest contributor. And as Mr. Shavik emphasized, the business continues to be our Oriental, and we will continue to grow from an Oriental perspective. Okay, sir. Thank you, sir, and all the best. Thank you. The next question is from the line of Sanjay Narayan Mahajan from Wealthwise Capital. Please proceed. Sir, thanks for the, again, opportunity.

43:39 Sorry. Sanjay, sir? Hello? Yes? Yes, sir. Continue. Continue. Yeah. So can you can you throw some light on specialty hospital and hospitality and what is happening at at that end? And how it could be value accretive for shareholder and the timelines and anything that you is taking some shape that you would like the investor to know about, the Durgapur team? Mister Sanjay, you mean to say hospitality would mean outdoor catering, specialty experiences.

44:24 Am I right? Sir, I I was... So the question was from the angle that we have demerged the land into specialty hospitals, which we are think... Thinking to monetize. That was what I got gathered from previous con calls. Am I right on that? And what is happening at that end? No. No. I I appreciate. See, what had happened, that was a plot of land which was available with specialty restaurants from a... Given by IDCO government of Odisha for creating a food and beverage complex. See, SPECIALITY Restaurants continues to be focused on restaurants. That was a plot which was given for food and beverage and which have been developed under a joint development and it would be restaurants, banquets and service apartments kind, which would be overall utilized later.

45:17 Okay. So in any shape or form, would it be contributing to Speciality Restaurants because what will be if we look at how we would be the best year in those customers or our company? We would be holding 34 around 34% of the demerged company post completion of the building. Any any work in ongoing? What's the stage of development over there? Sorry. I'm not able to hear you properly. What is the question? So any activity that has been... At what stage of activity we are there on specialty hospitals?

46:02 So is the DAP been signed? Is the construction on? So where do we sign? Have we identified a development partner? And what are the timelines to develop that? Mister Sanjay, just to correct yourself, it is not a Speciality Hospital. It would be Speciality Restaurants Limited. No. It is under Speciality Private Limited, the name of the company. Okay. The joint development is progressing, and we would be able to complete the development by this financial year end itself. Okay. That's very nice to know. Sir, if you can if I can squeeze one more question. The QSR segments to be very promising as per the private equity space and the interest shown by the other players in the market. So where do we stand as of numbers today on Walters? How many outlets do we have? Because I don't I didn't find it in our presentation, specific number.

47:06 I think we are opening four more in this quarter, quarters. But as of on this year, what is the number that we have with us? How many? We operate three principal stores and two cloud kitchens at this currently as on date. Okay. And the... You yourself have seen in the presentation, the one which are being opened, those are all physical stores, not on Cloud Kits. Okay. From a revenue perspective, very insignificant to the total as of now. If you would have seen the presentation, sir, it is 1.3% of the quarter revenues, which have been generated from Walters.

47:57 Okay. Any color you would like to throw on what is really happening in this specifically burger space? Because there is lot there seems to be a lot of interest in this space, and we also have zeroed on this as a brand in QSR. Anything that you would like to talk about or help us understand in numbers of the where the pug is moving, what's how big is the space and what are the growth rates, anything that you will like to help us understand? From the previous quarter, we have grown almost 300 odd percent with the addition of one new store only and also overall looking at the model, the central kitchen facility and also bringing our margins high and cost down.

48:50 What we see is also similar to you very promising segment in Waltersburger. In the times to come, we are going to be growing this very rigorously and we have in fact built a specialized team of QSR and five new stores coming up by the end of this year. And yes, as a segment and as a vertical, specialty restaurants will be heavily focused on Walters Burgers in the times and years to come as a QSR segment. You. The next question is from the line of, an individual investor.

49:35 Please proceed. Yes. Mr. Rajesh, last quarter, we had indicated that we have a cash of INR 162 crores on books. With the continuing expansion and 15 new points to be opened, what would you expect to close the year after whatever cash accrues, do you think we'll be able to close the year above this or this will go down significantly? Very correct question to ask Mr. Yaki. The way we have worked our cash flows, it looks like we will be able to maintain this number by the year end because the CapEx would be taken care of by the cash generation by the business in months to come.

50:23 Thank you, sir. Thank you, sir. Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir. On behalf of the management, we are extremely thankful for all the to all the participants who have spared their precious time and joined our investors call. Thank you so very much. I'd just like to add, the next phase of specialty restaurants will be as much about building scalable brands as it is about building restaurants. Our focus is simple, profitable, disciplined growth while making our brands relevant to the next generation of customers. Thank you so very much.

51:12 Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.