Thank you so much, Michel. Good morning, everyone, on behalf of Motilal Oswal.

I'm Naveen Trivedi. I would like to welcome you all to the Restaurant Brands Asia's 4Q FY '26 earnings conference call.

From the management today, we have Mr. Rajeev Varman, Whole-time Director and Group CEO; Mr.

Sumit Zaveri, Group CFO and Chief Business Officer; Mr. Kapil Grover, Group CMO; Mr.

Sandeep Dey, Brand President, Indonesia; and Mr. Gaurav Ajjan, Head of Corporate Development and IR.

I would now hand over the call to the management for the opening remarks. Over to you, Raj.

Thank you so much.

Thank you. Thank you very much, and thank you for joining the call again.

Really appreciate your time. One of the things that we want to announce that aren't about numbers is that we were certified as a Great Place to Work, which is a prestigious global credit that we received.

Congratulations to the entire RBA team here in India that we were able to achieve that. Now coming down to the business, see, we continue to build volumes, which is what I've been talking to you about for many quarters now, building volumes, specifically in the dining business.

We continue to drive more and more traffic. In fact, in the last 3 years, we have grown traffic in our dine-in business by 18%.

This is becoming the cornerstone of how we are going to move forward into the next few years with this kind of volume that we are creating inside of our restaurants. If you look at our fourth quarter, we ended the fourth quarter with a 6.3% SSSG growth, which is the highest that we have achieved in the last 12 quarters.

That momentum continues. We did this, obviously, to several of our verticals.

For the last 12 years, we've been driving value, the leadership in this industry in value. We maintain that.

We continue to drive more and more traffic through value. Our latest offering is 2 for 79 and 2 for 99 on the veg and chicken side.

That continues. On top of this value offering, we also started strengthening our core and as well as our premium offerings.

You might have seen our ad on the Korean kimchi that was aired digitally, and that has driven significant volumes at a very higher APC on the premium end of our menu. This combined effort of now for several years of delivering value and then now switching to not just delivering through value, which we consistently continue, but also now to add a layer of premium.

That this strategy of doing this together is where we ended up with the 6.3% SSSG growth. We continue to strengthen our digital platform.

I think everyone is aware that the entire industry is moving to that direction. 91% of all our orders are now digital, which gives us a significant control on not only the cash elements of our business, but also the consumer element of our business.

Both those continue to strengthen. 51% growth in monthly active users over the previous year when it comes to our CRM program.

This is very good. 51 might be on a very small base, but as we had told you, we've started this journey, and we will continue to stay stable with this journey.

On the profitability side, we have been talking to you about delivery profitability, where we continue to bring in a product mix combination that actually increases our throughput down at the EBITDA level on the delivery sales. That journey continues.

In addition to the traffic, we continue on the delivery business. That is continuing to make the delivery business profitable.

In fact, over the last year, 2% increase in that by lowering discounts and effecting our basically product mix that we sell on that channel. We also continue the rest of the P&L efficiency, whether it says utilities through our solar efforts, our efforts to have launched this new broiler, which uses half the utilities that the old broiler used.

This is almost done, I think, in the next couple of months. All restaurants in India will have the new broiler.

You will start seeing a cumulative effect of this moving forward into the next quarters as we kind of continue to save on utilities. We are also making a very strong effort on the solar area, and that is bringing our electric utility rates significantly down in the markets where we have been successful to do it.

This effort will continue, and we will continue to solidify on this. India, strong business, steady hands, disciplined approach and to move in the principles that we set forth years ago.

We have been true to those principles. We continue with a disciplined forward march that is bringing consistent operations and consistent delivery of our P&L.

Zaveri will walk you through all the numbers on the India business. Now just quickly on the Indonesia business.

While we onboard the new promoters in the next several weeks in line with our strategy in Indonesia, we remain consistent with what we have been sharing with you on how to approach that Indonesia business. Good news in Indonesia is the Burger King business has turned around.

It is moving in the right direction. We are now positive on EBITDA.

We're positive on the ADS. We're positive on our dine-in SSSG.

We have made some corrections on the delivery side in terms of our discounts and our offerings to increase the profitability of that business. Sumit will talk about that as well as we kind of go into this presentation.

A lot of work has been done on the Burger King side of the business to strengthen it in the long run, whether this remains as a part of our portfolio or not. I think the due diligence is to continue to stay true to making this business profitable for the business.

That effort continues. Done, Sandeep, and the entire team in Indonesia, because against all headwinds, they have actually really worked hard to get this to where it is.

We continue to also rationalize the G&A there. We are doing all this hand-in-hand to make sure that business is profitable.

On the Popeyes side, we have now 25 restaurants. We I think recently closed one, we're down to 24.

That business is struggling. There's reasons for it, because with a small portfolio like that, we have no ways to, unless there's a significant capital commitment there, to move that business from 25 to several hundred restaurants, the path becomes very, very difficult.

That business, we are going to align with the new promoters coming in. The sense over there is very simple that it has to be part of someone else's portfolio, not ours.

I think we would like to stay focused on the Burger King portfolio and build that portfolio and get it to a healthy margins. That's on the Indonesia business.

Overall, as we look at the 3-year journey that we have done, we have felt here in India, almost doubled the restaurant counts from where it was in FY '22. Revenues have grown almost 2.5%, 2 2.5x the revenues we saw in FY '22.

Gross margins have improved significantly, 3.2% gross margin improvement from where it used to be at 65%. EBITDAs have grown.

Restaurant level EBITDA has grown. Company level EBITDA has grown, both percentages as well as our company rupee EBITDA.

Gaurav will share the numbers with you as we go through this towards the end of the presentation. Now leaving it over to Sumit to walk you through the specifics of our India and Indonesia numbers.

Over to you, Sumit.

Thank you, Raj, and good morning to everybody. What we want to do today when we talk about our performance is not only really share what we've achieved for the quarter as well as for the year, but take you a little bit past into the journey over last 2 to 3 years that we've achieved, because that's something which which I feel is relevant for all to also look back.

As we start seeing the results of that entire journey to be reflected in our financial performance for the year as well as for the quarter. Raj mentioned clearly that, for us, getting more people into our restaurants is is the key.

Value has always been the mainstay of our strategy. It continues to be part of our strategy.

Currently, we're leading value with a very strong proposition of 2 for X. You will see that that will continue.

That will remain one of the mainstays of our strategy. Value will remain as one of the mainstay of our strategy as we as we go along, because that's something which will help us continue to drive traffic in our business.

As we build the traffic into our restaurants through value as a strategy, we also believe that we have a very, very strong positioning on taste as well, taste credentials as well. Hence, we need to effectively start strengthening the other layers to take the leadership on the taste side as well very, very clearly and strongly.

If you look at what we've done to our overall menu offering on the burger side over these years is we've strengthened the core side of the menu. We've introduced the entire Whopper Deluxe range, which sits right in the middle with a offering of around five products that sits very clearly.

Then introduced at the premium end the entire King's Collection, which sits at the top of the ladder on the burger side of the leadership. We've used this very, very effectively.

If you've seen through this entire year, now we've starting to establish that through a very strong LTO proposition. Korean was one of our lead offering last year, and we're continuing into that offering even even this year.

That is something which we've worked very strongly. We believe that we've got our entire menu now stacked very properly to address all customer segments that we have.

The second part that we've kind of worked on very hard is to make sure that we bridge any category gaps that exist in our menu. If you if you look at the kind of effort that we've put in enhancing the overall beverage portfolio by introducing cafe.

As we speak now, literally all our restaurants offers the the BK Cafe. There could be few restaurants because of the limitation of the location, we might not have cafe in those those stores.

We will work continue to work to see how do we do it. For the fact is that now the cafe offering is available in all our restaurants.

That was one big big gap that we had in our offering. Then we as we introduced and expanded cafe, we started believing that the LTO strategy which we follow on the burger side should also be followed on the beverage side in order to establish the category.

We started with co-branded desserts and beverages last year. Now we've also moved into bringing variations to the carbonated side of the beverage, which is what you could see in our restaurants.

On the menu side, before I go on to the next phase that we've also worked on, on the menu side, we could very clearly see that we've strengthened value. We've strengthened the entire burger ladder that we have, and now started to work on the taste leadership through the LTO route both on the cafe side, or the beverage side, I would say, not just cafe, but on the beverage side as well as on the burger side.

Now as we've completed, as we believe that we've kind of come to a very good stage as far as our menu offering is concerned, we parallely believe that it is also important that we start knowing our customers well, which is where parallely we did substantial investments over these last last few years and launched our own stack for BK App, self-ordering kiosks, and table ordering. This is now available across all our restaurants on the dine-in as well dine-in, delivery, takeaway side of the restaurants.

We will continue to build on this. Currently, 91% of our orders are digital orders on the dine-in side.

When we say digital, it is either through the BK App or through self-ordering kiosks. We will now go into the phase of how do we enhance the overall polar numbers in terms of knowing our customers as we as we as we go along.

As we kind of were working towards strengthening the menu, strengthening knowing the customers, we obviously also believed that it is important that we work hard on improving the overall middle of the P&L as well. Now in the middle of the P&L, there were there are broadly two elements I would really want to look at.

One is the gross margin part. Now we had, and we've spoken several times earlier as well, we have very tightly integrated our growth and gross margin when we when we define our our growth strategy as well.

We've always worked on a strong cluster strategy to develop our overall supply chain strategy as well. The results of that plus whatever that we've kind of been able to do on the delivery side, working very, very strongly with the aggregators as we build our overall delivery side of the business being becoming more and more profitable as we go along plus the cluster strategy of growth.

We've only seen our gross margin to improve by almost plus over 2% over last 4, 5 years. That started that that will continue to kind of grow going forward.

We ended the year on the gross margin at 69%. Happy to share that for the quarter, we were at 70%, which is the exit that we have as far as gross margin is concerned.

We've been able to kind of move the target to get to 70% almost by a year from what we'd spoken with you all earlier. We would take this journey forward.

We are not at the moment not talking about the next phase of targets. We'll we'll come back with you at at an appropriate time on that that as well.

Coupled with growth, we've also been able to simultaneously address gross margins, improving it by almost around close to over over 2.5% to 3% over these last 4, 5 4, 5 years. The culmination of this entire journey can be seen in SSSG, can be seen in gross margin improvements, can be seen restaurant EBITDA margins, and across the lines if if you look at it.

I would just put a mention of SSSG. We've been, over last few years, you would have observed that we've been in a very tight range of early single digits of 2% to 3% range over these years.

For the full year now, and and I would I would put it to the culmination of the entire effort that that the team has put in. We've ended the year at a 4% SSSG and starting to kind of show improvements in our SSSG growth over these last two quarters as well.

As you could see last this quarter that ended March, we were at 6%. A quarter before that, we were at 4.5%.

We kind of starting to see the results. Obviously, we're not sharing numbers for the for where we stand today, but we can at least share with you that the trend that we've seen in last quarter, we're seeing the strong trends to continue even in early part of this financial year financial year as well.

We've got to a total revenue of 2,271 crores for the full year with a restaurant EBITDA of 11.6%, literally doubling over last last 5 years. We were at around 5%.

We've gone to 11.6%. Similarly, on a company EBITDA level, we were at 2.5% in FY '23.

We've got to 5.8% in FY '26. That's a that have also grown more than twice of what what we have achieving.

We believe that, the entire effort that we've been putting being in those early single digits for last 2 years, but constantly building the base for the business. We've we believe that we are now starting to see early results of of of all the effort that that the team has has put in.

When I quickly go into Indonesia part of the business, and then I'll hand it over to Kapil. As Raj mentioned, we've we were we're working on bringing the Burger King side of the business back at the strength of dine-in business.

We've seen dine-in ADS now to continue to be on a month-on-month basis higher than what we've achieved in the previous year, except for one blip in September, but that was more led by some local events. Otherwise, we continue to be able to grow that.

We would Our way forward as far as Burger King is concerned is to push dine-in side of the business at the back of the burger and the Whopper leadership that we have. Our market study in Indonesia very clearly clearly states that we have we have leadership on the burger side in the minds of the customer.

We would certainly want to take that forward as far as dine-in is concerned. On the delivery side of the business, while ADS growth, we did see early success in ADS growth, but that was coming at a at lower margins and flow-throughs, which we feel is not the not the path that we should take and when we really put it on the long long side of the journey is concerned.

We course-corrected some of those in last quarter of the financial year, which is why you see reduction or lower delivery ADSs. We've been able to and worked that quarter for get the margins up.

Happy to share that we've gone back to the 6.2 to 6.4 range in in the current periods as in the current financial year without taking any adjustment or taking any hit on the margin corrections that we achieved in last quarter. We've we've been moving positively as far as Burger King is concerned.

Some parts or the changes that we've done was reflected in our results in Burger King. We did report positive store level EBITDA of 8 billion for the full year in FY '26.

Even quarter 4 was 4 was positive. If you can see a clear shift in gross margins that we achieved in quarter 4 at 59.2 is some of the reflection of the work that the team in Indonesia has been able to able to achieve.

As far as Popeyes is concerned, yes, it's a it's a it's a challenging business. It continues to be one of the big concern areas for us.

We we did lose more money than what we had lost earlier years. It stood at 25 billion.

That became So while we saw a big shift on BK, we really kind of lost the benefits of BK on the Popeyes side of the business. Yes, we need to find some answers on on our next steps as far as Popeyes is concerned.

Indonesia on a consolidated basis resultantly reported a negative store EBITDA of 17 billion and and a company EBITDA of 100 billion. If I was to kind of summarize before I hand it over to Kapil to take us through the marketing side of the business is very clearly, India is showing positive signs in even in the current scenario, and we feel encouraged about India business.

Burger King side of the business on Indonesia is also showing positive signs, and our area of concern on the Popeyes side still continues for us us to address. With that, I'll just hand it over to Kapil to take us through the marketing initiatives, and then we kind of take it forward.

Yeah. Thanks, Sumit.

Good morning, everyone. We've spoken about our journey on the burger innovation.

We continue to strengthen our core menu on the premium side, which kind of helps us balance our menu. On one hand, we have the value proposition of 2 for 79, 99, which has held us in very good stead over the last 3 years, helped us build dine-in traffic.

On the other end of the menu is the King's Collection, which is all-premium burgers with brioche buns and fabulous recipes. Then we've done these limited-time offerings driven by culturally relevant flavors like Korean, very popular in India.

It gave us fabulous response, great feedback on the product. We've also started to build the middle of the menu with new launch of the paneer, the fried chicken, and the molten cheese patties on the Whopper build, which helps us offer consumers new options on taste and proteins in the Whopper layer.

On the dessert side, co-branding with the Nestlé KitKat to offer consumers an elevated experience with the desserts, and also adding waffle cones to all our stores to offer customers a higher quality product on the softy, which is a favorite with the kids and families. That's with launches and products rolled out.

On value, I've always spoken about three dimensions. There is price point value, 2 for 79, 99.

There is a coupon value, which a lot of customers love downloading apps and getting exclusive deals. That continues to drive traffic into our dining stores.

The third dimension is the shareable value, where people come in groups. Friends come in, families come in and buy these meal bundles and also get great savings on these bundles.

The brand also continues to work on building strong relationship and engagement with the community. We continue to celebrate festivals with our community in a very elevated manner.

There are gifts associated with that festival that are given out with meals. Recently, we did a promotion around the cricket season, giving out Cosco cricket balls with every meal and fabulous response.

Our teams also get to participate in the events and festivals with thematic dress, decoration of the restaurant. It just elevates the experience for our employees as well as our guests.

The brand continues to strengthen the relationship with our audience, our consumers, Gen Zs and millennials, engaging content around new menu introductions, our story around trust and taste, the fact that our products do not have any artificial flavors and synthetic colors. It's a fact that matters a lot, especially to the Gen Z.

We talk about these things in a very fun, engaging manner on our social content. We continue to build brand love through various associations with movies, with Bollywood, where we are able to co-promote and launch these exclusive meals partnering with these events.

I'll hand it back to Gaurav for the financial summary.

Thanks, Kapil. I will skip ahead to slide number 25 for the summary of a 5-year journey as well as progress against the outlook we had given at the start of the year.

Our restaurant count is higher by more than 80% since FY '22. This year, we have opened a net of 68 stores, which is within our guidance range of opening 60 to 80 restaurants every year.

Revenues from FY '22 are 2.4x in FY '26. This has come on the back of the increased number of stores as well as positive SSSG in each of the 5 years.

Gross profit margins are also up 3.2% for the 5-year period, an average increase of 80 basis points every year. In fact, we have achieved our FY '29 guidance of 70% this year itself, as we end the year at 70.2% in Q4.

On top of the 3.2% GP improvement, we have added another 3.2% in the 5-year block to restaurant EBITDA margins, taking us to 11.6% for FY '26. Now as a result of the growth in top line and the more than doubling of restaurant EBITDA margins, our absolute restaurant EBITDA number is more than 5x of FY '22 at Rs 264 crores.

We have made significant strides at a corporate level as well. We swung from a loss of 14 crores in FY '22 to 132 crores EBITDA for this financial year.

As we enter our next phase of growth, we are all excited about the journey ahead. As you are all aware, we are set to be acquired by Inspira Global.

The transaction is nearing completion, and we will come to you with our revised outlook in Q1 once the deal is done. Thank you all for joining in.

I would request the moderator to please open up the floor for Q&A.

Sir. Hi.

Thanks for taking my question, and congratulations on a good performance. Raj, we have indicated healthy traction in the cafe ADS, which is sort of reflecting in better gross margins also.

However, when we see the annual ADS, it is about 116,000 versus 114,000 last year. I guess this is partly because we have opened new stores as well, right?

Can you give us some sense on how cafe ADS has played across mature stores, what is the incremental ADS that we have been able to sort of generate? Just some color will be helpful.

Yeah. Devanshu, thank you for your question.

We don't split that out and share publicly, but I'll give you a flavor of how we're heading. If you look at the cohort and if you look back at the restaurants that we converted to cafe in the initial period, those are way above the average and continue to grow.

See, we haven't except for one window last year, which is for a 4-week window, we have not put money behind cafe. There's reasons for that, because I think we are continuing to grow volumes on people coming in, because cafe volumes will increase if the people coming into our restaurants continue to come.

This is a very disciplined and long-term approach on cafe. It will continue to grow over time.

Our ambition is over the next 4, 5 years to get that volumes to come somewhere close to 25,000 25,000 rupees per restaurant per day. That's the goal, and we're kind of moving progressively in that direction.

Older restaurants are actually doing very fine and moving in that direction. You're absolutely right.

There are new restaurants with cafes with lower volumes that kind of pull back the numbers. This is a very, very long-term disciplined approach.

It's an alternative for people to build frequency. It's an alternative for people to build those dayparts between lunch and dinner and post-dinner, where someone wants to just get a snack and a coffee.

Also to build in the future a strong breakfast. I think Kapil spoke about bringing in the egg into our restaurants.

We have brought it selectively in certain markets. A coffee, a cafe menu along with the breakfast offering becomes very vital to that daypart as well.

While we will not split this, I can tell you that the cafe business is doing well. We are glad that we invested into this cafe business in time and in due time.

I think we're progressing very well with it, and we hope to share good numbers in the future. Like I said, our target is to get to about a 25,000 per restaurant per day ADS.

Sir, 45,000 or 25,000, sir? I just wanted to confirm.

25, Devanshu. 2-5.

2-5, right? Yeah.

Okay. Got it, Raj.

Sir, second, I wanted to understand on the cash flow front, right? This year, our performance has been pretty robust.

Congratulations to the team on that. In my opinion, basic calculations say that we have sort of utilized about 350 crore of cash in the operation side.

About 130 has gone to the international subsidiary, but still the India business is also sort of consumed about 200, 220 crore of balance sheet cash, right? How do you see that, because we started the year with about 500-odd crore of cash, but now we are at about 150-odd crore of cash, right?

Going ahead, how do you see this playing out for you over the next 2, 3 years?

Devanshu, hi. This is Sumit here, I'll kind of take this.

Yes, firstly, we still have cash on our balance sheet, around 190 crores as we speak as at March there. Secondly, you've seen that we've only been growing cash from operations, 99 crores to 132 crores this year.

We are working towards getting to be cash flow neutral over next 6 to 8 quarters. That is something which has always been our journey there.

With the cash that is available on balance sheet, we believe that we should be able to kind of take that journey. We feel that the goal that we had set ourselves to get to a free cash flow positive number, which funds for the growth that we have set ourselves for, which is around 60 to 80 restaurants on an annual basis, we should be able to get to that state.

Our sense is that anywhere between 4 to over next 4 to 6 quarters, we should be able to kind of start getting to that number. As you've seen also for the quarter, we generated 40 crores of cash for the quarter as well.

We believe that we are on track to be able to get to free cash flow over next 4 to 6 quarters.

Got it. FY '28 broadly should be a free cash flow positive year for you, right?

That's what I take away as a whole.

Devanshu, you're absolutely right. That's the target that we have, and that's what we are working towards as far as India part of the business is concerned.

Got it, Sumit. Thanks for taking my questions.

Thank you, Devanshu.

Hello.

Please proceed.

Am I audible?

Yeah.

Congratulations on the great performance in the India business. My question is on the Indonesia business.

If I see the current results, you have done a 120 crores of impairment for this quarter, and simultaneously, you have also infused about 20 crores in April '26 via preferential shares. What I want to understand is that could you help me understand the recoverable value assessment that led to this impairment?

Is this partial write-down, or is this the beginning of a full exit? More importantly, sir, I would also like to understand what is the new promoter group coming in?

What is the revised strategy roadmap for Indonesia? Are they going to continue, find some local JV partner, or will that be a structured exit?

What will be the timeline for Indonesia to become a cash flow breakeven at least at the operational level? That's my first question, sir.

Thank you.

Rushabh, I'll turn it over to Sumit for the impairment. We worked through those numbers with our auditors.

Really, see, as the new promoter comes in, I think we should provide them time to understand. I think we have a planned trip to Indonesia with them as well.

See, the management team has an aligned strategy that we want to move forward on. I think we would like to get inputs from our new promoters.

We would like to get their alignment in the way forward. Look, wherever we stand, the main focus should always be to improve that business.

While we are cash flow positive at the restaurant level already on the Burger King side, and I think we will do a significant progress on that this coming year, the Popeyes side of the business is what we need to address, and I've already outlined that on the onset of this call. We will do that in a very speedy fashion.

Giving you timelines is probably not something which would be responsible right now from my side, but you can be rest assured that it is a top priority for this team and the top priority for the promoter coming in as well. We will address that on a speedy basis.

Over to Sumit on the impairment of 120 and the 20 that we funded in preferential shares.

Thanks, Raj. Rushabh, yeah, we did the valuation of the business on discounted cash flow basis.

We did that on a consolidated basis for both the businesses. The results really kind of showed that we need to provide for as far as the carrying value of the business.

Obviously, this is no reflection of getting towards a staggered write-down or provision as far as Indonesia business is concerned. It's an evaluation that we did at the balance sheet date, and it warranted us to take that provision.

As far as business is concerned, obviously, we kind of looking at need to support that business and the liquidity required to support that business as a very clear independent effort or an independent view that we are kind of taking. We would obviously continue to support this business as we kind of remain invested in Indonesia to make sure that we are able to manage the operations of the business in Indonesia the way it should be run as far as that is concerned.

That will continue to be that. As we laid out earlier as well that our focus obviously is to make the Burger King side of the business to become further positive from where it stands so that at least that part of the business starts to support the overall G&A that we have in Indonesia.

We believe that from the current trends that we are seeing as far as Burger King is concerned, again here also we feel that it's at least another 4 quarters away for the Burger King side of the business to be able to start recovering for its own G&A. Popeyes

Sir, I get your point. What I'm trying to ask is that how much more funds are going to be infused in the Indonesia business?

That's point number one. Point number two is, is there any further impairment that we can expect in the Indonesia business?

Firstly, from the perspective of overall fund requirement, we kind of just putting up our overall plan, a long-term strategy plan for Indonesia. We will come back with you in terms of the detailed requirements as far as Indonesia is concerned.

As we stand based on the valuation that we've done, we've fully provided for what we believed is required to be provided as far as Indonesia is concerned. As I was explaining, it's not a step towards taking further impairment or it is the first write-down provision.

We believe that this is the requirement of the provision that we had as at the balance sheet. As we speak today, we believe that we've kind of fully provided for what was required to be provided on the balance sheet.

Right. Right, sir.

My only request to the management is we are already doing a stellar performance in the India business, and it is the Indonesia business which is driving down our performance. My request is to take a proper call on it.

I think it's almost 4.5, 5 years since we are running a loss-making business. Either we take a structural exit, or we actually do something and give us proper timelines.

That is my only request. The second question that I want to ask is on the new promoter that is coming in.

The Lenexis Foodworks also runs the brand of the Chinese Wok. Given that both are QSR businesses with shared infrastructure needs like supply chain, real estate, technology, has the board evaluated or does it intend to evaluate in any form or combination any brand licensing, operational merger, or a formal reverse merger of Lenexis into RBA entity, not today, but down the line, maybe down 3 years down the line, 5 years down the line?

If not, what is the firewall to prevent related party conflicts given that promoter controls both the businesses? How I, as a minority shareholder, can be assured that my interests will be protected?

Thank you, sir.

Thank you for your question. See, these are two separate businesses.

They are run completely separately. It's very premature to even comment on any of this right now.

They're not even onboarded. The deal is still to be closed.

There's no talk. There's no discussion.

There's no strategy. There's none of that.

They're very different businesses, and they're in their different life cycles as well. There's zero conversations right now of any of what you have asked.

I think we're just disciplined on what we have, and like you said, the focus for this team and the new promoters coming in will be predominantly to move ahead and do something with structural changes in the Indonesia business. That is where we are sitting, and that's the focus area for us right now.

Right, sir. Just one small point before I end my question.

When do we expect the new promoters coming in, and the process to be completed? When can we expect that to be completed?

We're just waiting for some approvals from the government coming in. I think once those are there, then we will speedily move forward.

I think it's a short this thing. We can't outline when those approvals will come in, but once they come in, we'll move fast ahead.

We're all prepared to close this very speedily.

Right, sir. Thank you so much.

Thank you so much, and all the best.

Thank you.

Hello, sir. Good morning.

Can you hear my voice?

Yes, Kaushal. Yeah.

On the open offer only, my question is the only approval that is pending is the CCI approval, right, Competition Commission of India, if I'm not wrong, because SEBI has given their final comments on the offer. That is question number one.

Question number two is how are you pivoting in this uncertain times of LNG crisis? Are you taking a move to induction cookers?

Are you pivoting to induction stoves? How are you tackling this LNG crisis is what I wanted to ask.

It's a great question. The entire industry is kind of working through that.

See, certain things we have done proactively, and some of them we have actually done way before even the crisis was on the air. This new broiler that we are installing is not a LPG or a PNG broiler.

It's actually an electric broiler. It consumes half the electricity and half the utility in rupees sense, and it's electric.

We've literally, I think, in the tail end of installing this, we've got one more round of installs that are coming in. Once those are all in, all our restaurants will have electric broiler.

We do flame grilling, our products are flame grilled, and that's the essence of the brand. Those will be in place.

We also have a significant amount of electrical broilers. Our engineering team is working feverishly to enhance that portfolio of electric fryers as well.

Then, all the efforts in terms of taking electricity cost down in future is also the solar project that we have in place to move forward. We have been thankfully lucky so far to have kept the restaurants open every single day and work.

I think we're getting a limited supplies, but we have also cut down on the total consumption significantly. I think with the reduction in what's available and the reduction that we have made in terms of our consumption, I think matches theirabouts, and we are able to kind of sustain that moving forward.

We have a very clear strategy to move this to electric forefront, and we are moving very speedily to do that.

On a ballpark number of 100% of what you cook, what percentage would be LNG, and what percent would be induction right now, and where you want to go? Can you give up in a percentage terms, a ballpark number so that you get an idea?

Yeah.

I don't think we have those numbers here to share with you. I can tell you that we have not closed any restaurants for a day or any tenure longer in this crisis period.

If you look at our grilled products, they will all be on electric very soon. Our vegetarian side, we are moving very speedily to install those electric fryers.

We've got a significant amount already done. PNG gas is available.

There's been no pull back on PNG. All restaurants with PNG are still doing well and continue to have no issues.

It's the LPG restaurants that have had a challenge. I think with all the stuff that we're doing, by the way, we're converting a lot of LPG into PNG as well.

In markets where PNG is available or where the steps have been taken to make that available, we're moving rapidly to get that done as well. We don't have any percentages to share with you today, but there's a lot of effort to make sure that what we have done in the last month, a little over a month of the crisis, we continue to do to keep the restaurants flowing.

I don't think there is any current danger to any of our businesses in terms of LPG. We're in good hands there.

I think that's probably the most for you. Yeah.

Just a question of

I think you made a CCI approval in March, so that's the only thing that's pending, right?

I already answered that. Yes, we are waiting for that answer as well.

Okay. Sir.

Thank you. Thank you so much.

Thank you.

Hi, team. Congrats on a great set of numbers despite the macro headwinds that we're seeing.

My question is mainly regarding the gross margin. We've seen excellent gross margin expansion year-on-year.

Could you give an indication as to how much of this has come from the product mix and the other part from sourcing efficiencies, et cetera?

Yeah. It's hand-in-hand, right?

We have done our target that was 2 years out in this year as we kind of exited the year over 70%. Of course, we'll share with you our new targets in the near future where we want to take this.

It's a disciplined effort. See, one of the most key things in this business is to stay disciplined on your strategy.

We have stayed disciplined on it. One of the elements of our strategy is to bring the food close to the restaurant, right?

That is helping in a big way our transportation and bringing additional suppliers also brings down cost. That is working very effectively, and a lot of our progress is based on that.

The cluster strategy that Sumit was talking about helps this food closer to the restaurant, because as we build restaurants in the clusters, we are able to support new suppliers in those areas. That's a constant effort, and it's a significant part of where you see this gross margin moving.

Product mix, Kapil spoke about building the premium layer and that comes at a higher APC and a higher, at least rupees gross margin. That effort continues.

A lot of ancillary items that we have introduced, as you can see, is the fizz drinks, the new cone, the waffle cone, these are very high gross margin as you can imagine. If we bring in the cost of bringing that extension on a product is very small towards what we can gain on the sales price.

Those are also kind of enhancing our gross margins as well. It's a combined effort.

We kind of moving in a combined way, and each element, each vertical of this element is contributing towards this progress.

Just a small follow-up. Since you had mentioned a lot of the ancillary products on the product mix, want to ask how the deluxe range that we had become more aggressive on in the last few quarters over last year say how much of that would be contributing to the incremental growth in terms of SSSG, if you could quantify that?

We don't share product mix numbers for competitive reasons. No one really does.

I can assure you that that's something that we're building on, and you will hear a lot from Kapil in the coming months on what he's going to do with that range. We don't specifically share those numbers for competitive reasons.

Yes. Thank you.

Thank you.

Yeah. Thank you very much.

Really appreciate everyone joining in. Thank you for your support, your time today.

Like I said, on the onset, a very, very strong business in India that continues to become stronger. We have a very very disciplined plan to take this to the next level.

Our efforts not only on bringing in consumers on the top line, but also our efforts in making sure that at current volumes that we produce more EBITDA at the restaurant level, those efforts continue. We have a continuing focused approach on Indonesia, and you will hear more as we align with the new promoters coming in, how we are going to do.

Hopefully, we can get some kind of a timeline picture to you. As you can appreciate that, while we all want to solve it very quickly, these things do take time, because it's not a market that has been friendly for the last few years.

The good news is that market has opened up. The local issues that were there have kind of subsided and gone away.

It is a tough market still, but I think the progress on the Burger King side itself speaks for itself. Sandeep and the team is stronger, and they have now got a good experience of 3 to 4 years behind their back.

They're actually making some very good, sharp decisions in making sure the business move forward. The focus over there will now be to make sure that the delivery volumes that are sitting at about a 6.1 million climb to about a 7, 7.5 million.

At that kind of volume and with the current dine-in BK sales, I think that's a massive improvement you will see in restaurant-level EBITDA. Hopefully, we will see towards not this current year, but the year following that we will probably be able to cover the G&A with the margins coming out of the restaurant.

A strong business in India, and stay tuned on the Indonesia. Thank you very much for joining in.

Appreciate it. Thank you.

Bye.