Britannia Industries Ltd — Q4 FY26

Britannia Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=fexFjAuLzfc Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Britannia Industries Limited Q4 FI26 earnings conference 0:09 9 seconds call. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:28 28 seconds And now has the conference over to Mr. 0:29 29 seconds Aayusharwan, Investor relations, Britana Industries Limited. Thank you and over to Mr. Garwal. 0:39 39 seconds Good morning everyone. This is Aayush from the investor relations team. I welcome you all to the Britannia earnings call to discuss the financial 0:47 47 seconds results of quarter 4 for financial year 202526. 0:52 52 seconds Joining us today on this earnings call is our managing director and CEO Mr. Mr. 0:57 57 seconds Rakshit Targavee Executive Director and CFO Mr. N. Wenat Raman Chief Commercial Officer Sales and replenishment Mr. 1:05 1 minute, 5 seconds Vipin Kataria Chief Marketing Officer Mr. Punited Das Vice President Marketing Mr. Sat Gupta and Vice President Corporate Finance Mr. 1:16 1 minute, 16 seconds Amorti Jam. The analyst deck is uploaded on our website. 1:22 1 minute, 22 seconds Before I pass it on to Mr. Mr. Rakshit Hargo I would like to draw your attention to the safe harbor statement in the presentation. Over to Mr. Hargave with remarks on the performance. 1:34 1 minute, 34 seconds So good morning everybody. Uh uh so you know we will now go through the deck which we have shared with you 1:43 1 minute, 43 seconds and obviously this has the details for Q4 and now also because this is the end of the year you will also see the 1:51 1 minute, 51 seconds perspective for the full year. So let me begin with the business overview. 1:57 1 minute, 57 seconds Um if you take a look at the performance scorecard for fourth quarter 2526, uh if you take a look at the revenue 2:04 2 minutes, 4 seconds line, you will see that uh we had in the last quarter 4,686 crores. On a 12-month basis, this was a growth of 7.1%. 2:15 2 minutes, 15 seconds And on a twomonth rolling basis, it adds up to 16.7%. 2:21 2 minutes, 21 seconds If you take a look at the PAT line, uh quarter 4 by itself was 14.5% of 2:27 2 minutes, 27 seconds revenue. The 12 month growth is uh 21% and the 24-month growth is 26%. 2:37 2 minutes, 37 seconds If we go to the same scorecard but instead of only Q4, if we take a look at the full financial year 2526, 2:46 2 minutes, 46 seconds you will see that for the year uh at a revenue level, we clocked 18,858 2:53 2 minutes, 53 seconds crores which on a 12-month basis was a 7.5 growth over the previous year and on a 2-year basis was a 14% growth. 3:03 3 minutes, 3 seconds If you take a look at PAT, you will see that for the year uh at a PAT level, we were 13.4% of revenue. On a 12-month 3:12 3 minutes, 12 seconds basis, this was a 16.3% growth. And on a 24-month basis, this was an 18.4% growth. 3:22 3 minutes, 22 seconds We will quickly take you through the commodity price trend. So you will see that flour 3:30 3 minutes, 30 seconds uh has been on a bit of a receding trend. So we know that the wheat output 3:36 3 minutes, 36 seconds has been good. Uh so Q4 saw a dip in the last one month. We see an upswing in the 3:43 3 minutes, 43 seconds flour prices because of unseasonal rains, high heat and some quality issues in the arrivals. Uh but still flour is a we see it as a positive trend for us. 3:56 3 minutes, 56 seconds If you take a look at refined palm oil, you see that in the last quarter the prices have gone up. Obviously, this has 4:02 4 minutes, 2 seconds also got a correlation to fuel. Um, for us, we buy forward on palm oil. So, we 4:10 4 minutes, 10 seconds are actually quite well covered for another 5 months. 4:14 4 minutes, 14 seconds Sugar more or less behaving like as it is. Cocoa prices are down. Laminate prices while you see that they have come 4:22 4 minutes, 22 seconds down towards the end of Q4 but from March onwards laminate prices have actually gone up and they are still up 4:29 4 minutes, 29 seconds in April again this is because of uh the war impact in the Middle East uh where granules prices have gone up so we have 4:37 4 minutes, 37 seconds to see how that comes out but yes at the moment there is an inflation milk prices are behaving as they do behave during 4:44 4 minutes, 44 seconds this period uh they are on a rup usually they start coming down during winter we'll have to see how does that move 4:51 4 minutes, 51 seconds ahead because there is expectation of El Nino and higher warming and how does 4:58 4 minutes, 58 seconds that impact milk will be interesting for us to see. I would want to spend some time on the West Asia conflict. 5:06 5 minutes, 6 seconds So we have an international business where a significant portion of manufacturing 5:14 5 minutes, 14 seconds for those markets happens in Oman and Dubai. 5:18 5 minutes, 18 seconds uh our international business revenue and profitability was impacted during the last quarter owing to vessel unavailability and slowdown in demand in 5:27 5 minutes, 27 seconds those markets. We were unable to dispatch uh vessels as you know because the state of war was locked 5:35 5 minutes, 35 seconds also at the same time you know that there is significant increase in fuel costs and ocean freight rates. 5:43 5 minutes, 43 seconds If we see the impact of the west west Asia conflict in the Indian market. So when the war started we initially had 5:51 5 minutes, 51 seconds concerns because there was an issue of LPG shortage etc. But we have been able to manage the situation well. So there 5:59 5 minutes, 59 seconds has been no material disruption to production operations at our Indian manufacturing facilities on account of 6:06 6 minutes, 6 seconds these fuel supply constraints. So we've been able to manage all manufacturing as it should be. We have also made other 6:15 6 minutes, 15 seconds measures. We are anyway already working on alternate fuels and options. So the agility of the Britannia team came to 6:23 6 minutes, 23 seconds the four uh and hence actually apart from the fuel cost inflation which 6:29 6 minutes, 29 seconds cannot be helped uh actual manufacturing has been quite steady. 6:36 6 minutes, 36 seconds uh we obviously will need to take some mitigation measures for this and we have initiated the mitigating measures. So 6:43 6 minutes, 43 seconds there will be calibrated price increases starting from this quarter. 6:48 6 minutes, 48 seconds We are also optimizing our sourcing between India and international manufacturing facilities for key geographies to mitigate supply related 6:56 6 minutes, 56 seconds challenges expected to be fully operational by midmay. So like you know we have an export oriented unit in 7:04 7 minutes, 4 seconds Mundra. Now in the last few months because of tariffs we had moved all the manufacturing for North America to Oman. 7:14 7 minutes, 14 seconds But we have been able to move all that manufacturing gradually back to Mundra so that we will now be able to dispatch 7:21 7 minutes, 21 seconds towards North America. Uh because if we were manufacturing in Oman we would not be able to do that. So that agility has helped us. Obviously it goes without 7:30 7 minutes, 30 seconds saying that uh the cost optimization measures and efficiency initiatives which Britannia has done extremely well 7:39 7 minutes, 39 seconds in the past that continues and that has taken a new leaf because of the challenges in front of us in terms of 7:47 7 minutes, 47 seconds inflation. So the company is totally committed to continue on those CP measures to be able to deliver what it promises. 7:58 7 minutes, 58 seconds Let me focus on the strategic priorities as we had announced. So we continue to drive efficiencies in our sales and distribution and supply chain channels. 8:10 8 minutes, 10 seconds Uh we have very efficient networks in these and we will keep driving them to higher levels. 8:18 8 minutes, 18 seconds Our brand experiences and investments as you would see uh will be much more stronger. 8:27 8 minutes, 27 seconds I think investing more on brands and creating more experiential strategies is a way that we want to go and that is 8:34 8 minutes, 34 seconds going to reflect in what you are going to see also innovation adjacencies and future 8:42 8 minutes, 42 seconds platforms. There is intense work happening to be able to create a portfolio also for the future. 8:50 8 minutes, 50 seconds We are also like I said in the last call realigning the way we work in creating a 8:57 8 minutes, 57 seconds team for many indas. So the agility of the teams, the startup culture, their 9:04 9 minutes, 4 seconds ability to take quicker calls, customization for regional indas is a very big project which has been kicked on and you will see the output of that 9:13 9 minutes, 13 seconds coming in the next few quarters and obviously doing all this in a sustainable manner is something that we have done and we will continue. 9:23 9 minutes, 23 seconds I would want to share something on our e-commerce business which is actually growing exponentially. 9:31 9 minutes, 31 seconds So in the domestic business the salience of e-commerce has moved to 6% of overall 9:38 9 minutes, 38 seconds sales in 2526 from 4% of overall sales in 2425. 9:45 9 minutes, 45 seconds Now you have to take a look at this 6% number with a different lens. As you would imagine that for us 9:54 9 minutes, 54 seconds nearly 60 to 65% of biscuits sell at the 5 rupee and 10 rupee price point which 10:02 10 minutes, 2 seconds don't really have any major salience in e-commerce. So if you apply that filter, you will actually realize that our 10:10 10 minutes, 10 seconds e-commerce contribution is upwards of 12% which is a best-in-class. 10:15 10 minutes, 15 seconds Also if we look at the categories where we are firing on e-commerce while biscuit continues to do well, the newer 10:23 10 minutes, 23 seconds adjacency categories are growing in e-commerce at a rate which is 2.7 times. 10:30 10 minutes, 30 seconds Hence fueling the fastest growing channel through exclusive launches, premiumized offerings and customized D2C 10:39 10 minutes, 39 seconds offerings will be the order of the day and our investments on e-commerce will grow even further. Do you want to add something to this? 10:47 10 minutes, 47 seconds Thanks Sakshit. Hi Vipin Katar this side. So QCOM has been a bright spot. 10:52 10 minutes, 52 seconds We've been talking about uh e-commerce for the last few quarters and what we see is that we are building this momentum and acceleration for last few 11:01 11 minutes, 1 second quarters. So just to share few more points uh almost 70% of our business today is coming from the quick commerce 11:09 11 minutes, 9 seconds part of e-commerce and how we see this is further moving up to 85% because as you know Amazon is scaling up their quick call model as well as Flipkart. 11:20 11 minutes, 20 seconds Now the big upside of this is that there is a big change in the assortment while on the marketplace or e-commerce 11:27 11 minutes, 27 seconds platform we were very heavy on staples what's happening because of this change in QCOM is that we are able to 11:34 11 minutes, 34 seconds premiumize our assortment and we are able to sell much more indulgent categories and that's the impact which you see on the right hand side which is 11:43 11 minutes, 43 seconds adjacency is growing almost 3x. So going forward what we are doing is we are collaborating with platforms. We are 11:51 11 minutes, 51 seconds getting used to you know their playbook and therefore activating a lot of our brands through their their playbook by 12:00 12 minutes close collaboration. So I think going forward this 6% you will see uh moving up as well as the assortment towards 12:07 12 minutes, 7 seconds premium as well as uh impulse will keep growing direction. 12:13 12 minutes, 13 seconds Thank you Vin. So let me continue with uh uh the next slide which talks about key brands and products on air. So you 12:22 12 minutes, 22 seconds would notice that um in the last quarter uh we have been on air with uh the variant of our 50/50 brand which is 12:30 12 minutes, 30 seconds cheese dipped also a variant of Mari Gold which is the Dud Mari Gold which was launched across select markets and 12:38 12 minutes, 38 seconds also goodday butter. Um this was complemented along with multiple consumer engagement and brand 12:46 12 minutes, 46 seconds activations which cover Tiger Crunch Treat which is our wafer brand also Crosa and Jim Jam and as you would know 12:54 12 minutes, 54 seconds Crosa is a very exciting category doing very well for us. If you take a look at the adjacency business, uh if you take a 13:02 13 minutes, 2 seconds look at uh the cake fudget, uh this is really a Gen Z focused uh brand. Uh we 13:09 13 minutes, 9 seconds have promoted it significantly during Valentine's uh and we can see that uh there is significant growth in that and 13:16 13 minutes, 16 seconds it becomes an impulse kind of a you know confectionary kind of a purchase. So wafers continued growing healthy double 13:23 13 minutes, 23 seconds digit cake and rusk uh high prevalence in e-commerce driving growth at about 1.4 times of biscuits. We have success 13:32 13 minutes, 32 seconds successfully scaled up our brownie also very well accepted by consumers. 13:38 13 minutes, 38 seconds Dairy business also doubledigit growth and fueled by ghee which has done excellently for us in the last one year. 13:46 13 minutes, 46 seconds Also our innovations have gained traction. So the cheese dipped, the 50/50 cheese dipped and a variant of 13:54 13 minutes, 54 seconds that, the caramel dipped uh which we launched which has been heavily advertised on TV also during the Indian Premier League uh has already become the 14:02 14 minutes, 2 seconds second biggest the second biggest player in the sandwich cracker segment in three months of its launch and continues to grow month-on- month. 14:11 14 minutes, 11 seconds Also we have what we call these are signature brands treat little hearts and gym jams. uh they are actually outpacing 14:21 14 minutes, 21 seconds the overall company growth by about 3x and as we see and we continue to see growth in the coming quarter also and 14:28 14 minutes, 28 seconds obviously to leverage this uh the teams have innovation and varants planned to leverage this portfolio 14:38 14 minutes, 38 seconds like we talked about winning in many indas what you see on the chart is depiction of our internal regions how we 14:47 14 minutes, 47 seconds classify uh and what we have done we have made regional teams supported by marketing 14:54 14 minutes, 54 seconds supported by innovation supported by research and development uh to really tackle these markets at a much more 15:02 15 minutes, 2 seconds local level and we should be able to see the output of that as we continue during the course of the year 15:11 15 minutes, 11 seconds on ESG building a sustainable and profitable business has always been at the core of Britannia 15:18 15 minutes, 18 seconds So let me share the progress of KPIs on this over the last year. So we've had 7% reduction in specific water consumption. 15:28 15 minutes, 28 seconds Uh we've had a 1% increase in women factory workforce and actually very happy to say that many of our factories are actually majority managed by women. 15:39 15 minutes, 39 seconds Uh the Britannia Nutrition Foundation has had a 67% increase in the number of beneficiaries and this is a major cornerstone of our CSR program. 15:52 15 minutes, 52 seconds Also a 14% increase in renewable electricity share in our own plants. 16:00 16 minutes Also like we said the cost efficiency programs that we have implemented in the company continue. So just to give give 16:08 16 minutes, 8 seconds you a scale of what we have been able to achieve in 25 26 you will see that as 16:15 16 minutes, 15 seconds compared to 20134 in about 12 years we have increased the 16:23 16 minutes, 23 seconds discipline of C 10X as compared to 2021 you know it has 16:30 16 minutes, 30 seconds actually doubled so there is obviously a lot of focus and the focus areas 16:38 16 minutes, 38 seconds comprises alternate fuels, large efficiencies on buying, working on renewable energy, 16:45 16 minutes, 45 seconds uh wastage reduction, lot of optimization on logistics, and a lot of work on packaging and re-engineering 16:53 16 minutes, 53 seconds and like we said, we are also evaluating alternate energy sources as long-term solutions to mitigate fuel supply 17:01 17 minutes, 1 second disruptions so that as in India, we become much more self-sufficient. to be able to manage if any shocks like these come in the future. 17:12 17 minutes, 12 seconds If we take a look at the financial results and I will [snorts] take you through that. So 17:21 17 minutes, 21 seconds let's take a look at the revenue trends you will see that on a 12- month growth uh we clocked 17:31 17 minutes, 31 seconds 7% in the quarter. The quarter before was 9 4 and 10. On a 24-month basis, it 17:38 17 minutes, 38 seconds becomes 17 17 914. If you go backwards and you have the bar chart to show how 17:45 17 minutes, 45 seconds we have progressed in absolute revenue over the last four years and you can see that it is an incline moving towards the northeast. 17:56 17 minutes, 56 seconds Similarly, if I take you through the consolidated results, you will see that in Q4, we were at 4686 crores, which was a growth of 7.1% over Q4 last year. 18:09 18 minutes, 9 seconds Operating profit of 768, which was a 6% growth, PBT of 785, which was a 4.4% 18:17 18 minutes, 17 seconds growth, and PAT of 678, which was a 21.1% growth. Obviously this 21.1% 18:23 18 minutes, 23 seconds growth also comes as we have observed uh in the comments because of [clears throat] some income tax case closures. Hence we have had to release 18:33 18 minutes, 33 seconds them. If you take a look at profit from operations uh if we go quarter by quarter wise for 18:40 18 minutes, 40 seconds the year which has gone by. So you will see that we were at 16.4% 4% in the current quarter, 18.3 before that, 18.3 18:49 18 minutes, 49 seconds before that, and 14.9 in Q1. If you take a look at PBT, we see that our PBT margin has more or less remained at a 18:58 18 minutes, 58 seconds good constant line. We were 16.8% this quarter, 18.8 Q3, 18.6 Q2, and 15.5 Q1. 19:07 19 minutes, 7 seconds And PAT at 14.5 versus 13.9, 13.8, 8 11.5 PAT obviously 19:15 19 minutes, 15 seconds like we said is also a function of the income tax case which has been included here. If we take a look at the full year 19:24 19 minutes, 24 seconds on a consolidated basis so we clocked sales of 18,858 crores which was a growth of 7.5% over 19:33 19 minutes, 33 seconds last year operating profit of 3208 which was 11.6% growth over last year. PBT of 19:40 19 minutes, 40 seconds 3289 which was a 12.4% growth and PAT of 2533 which was a 16.3% growth over last year. 19:51 19 minutes, 51 seconds On other particulars on a ratio basis you will see that profit from operations 19:58 19 minutes, 58 seconds this year was 17% compared to 16.4% the year before that and 17.3% the year 20:05 20 minutes, 5 seconds before that. So this is all in a positive trend. PBT had 17.4% 20:11 20 minutes, 11 seconds 16.7% last year and 17.6% the year before that. So all this is at a very 20:18 20 minutes, 18 seconds high level of performance. Similarly PAT this year is 13.4% against 12.4% and 12.9% of the year 20:27 20 minutes, 27 seconds before that. Hence slightly on a higher side because of the reason that I told you earlier. Uh so with this I think the 20:36 20 minutes, 36 seconds presentation that we uploaded for you all is done and uh we will be subsequently happy to take some questions. 20:44 20 minutes, 44 seconds Thank you very much. We'll now begin with the question and answer session. 20:49 20 minutes, 49 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue you may press and two. 21:00 21 minutes Participants are requested to use handsets while asking the question. 21:05 21 minutes, 5 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 21:13 21 minutes, 13 seconds The first question is from the line of Mir Sha from Namora. Please go ahead. 21:18 21 minutes, 18 seconds Hi sir, thank you for taking my question. Uh so firstly just wanted to understand on the West Asia issue. um 21:26 21 minutes, 26 seconds what has led to the standalone growth being lower at 6 and a half% versus the 12% growth that we had witnessed in 21:33 21 minutes, 33 seconds November, December and 9% in Jan. Uh if if manufacturing was hit in Oman and uh 21:41 21 minutes, 41 seconds uh the other region then would that not be sitting in the uh console sales numbers? Uh so wanted to understand uh 21:49 21 minutes, 49 seconds what has led to the standalone sales numbers also being lower. Yeah. So [clears throat] thank you Mah. 21:55 21 minutes, 55 seconds So like we said we did not have manufacturing issues in West Asia. We manufactured but we were not able to dispatch. Uh but I think your answer is 22:03 22 minutes, 3 seconds on the standalone India business in terms of Yeah. So uh we have done a couple of things to manage West Asia 22:12 22 minutes, 12 seconds like we said we have moved our manufacturing to Mudra. uh so that we don't have to manufacture X Oman because 22:20 22 minutes, 20 seconds the sea roots that you have X Mudra are much more accessible to reach to various markets. So we've done that. Um I assume 22:29 22 minutes, 29 seconds your other question is on the domestic India business and in terms of what is the reason for the sales number that we 22:35 22 minutes, 35 seconds have shown. So we had like we said uh a reasonable 22:42 22 minutes, 42 seconds first two months in the quarter. Uh the west Asia impact hit us in March. But if 22:50 22 minutes, 50 seconds you take a look at an overall level see there is a certain challenge post GST transition and I would just like to 22:57 22 minutes, 57 seconds highlight to you what happened. You see close to 60 65% of the biscuits that we sell are at 5 rupees and 10 rupees and 23:04 23 minutes, 4 seconds the price transition on that because of some dual pricing in the market has caused some challenges in our rural 23:12 23 minutes, 12 seconds channels and in our wholesale channels because of some dual pricing existing. 23:18 23 minutes, 18 seconds So as a result of that we have seen some kind of a transaction slowdown in those channels. But with the pricing getting 23:24 23 minutes, 24 seconds normalized we can see that during this quarter they will get normalized and hence volumes in those channels will come back. 23:31 23 minutes, 31 seconds Yeah. So just to add to what Rhett is saying within Qatar on the side. So if we split up our business 75% of our 23:38 23 minutes, 38 seconds business is basically retailing or B2C and 25% is B2B or wholesale. Now our 23:45 23 minutes, 45 seconds retailing business which is basically you know urban as well as e-commerce modern trade out of home has done fairly 23:53 23 minutes, 53 seconds well but we have a gate gatekeeper effect in the B2B and wholesale which is impacted because of this entire GST 24:01 24 minutes, 1 second transition and the dual pricing and that's where we saw some uh pressure and you know that's you know normalized the 24:09 24 minutes, 9 seconds growth a bit but I think we stay at high single close to double digit growth in domestic and The consumer confidence in 24:16 24 minutes, 16 seconds the retail part of the business still remains very strong. Whereas the B2B or the wholesale part is where we have a bit of impact. 24:25 24 minutes, 25 seconds Yeah. And this B2B and wholesale and rural part is anyway going to normalize and it should get normalized in this quarter as we move on. 24:34 24 minutes, 34 seconds Understood. So actually the confidence of normalization is coming from the other competitor which had not moved to the five and 10 rupee packs. Uh so any 24:43 24 minutes, 43 seconds uh confirmation if you can share with us has Yes. So so the market is moving you see also what has happened is uh the uh west 24:52 24 minutes, 52 seconds Asia conflict uh has introduced inflation and hence people are anyway moving to the 5 and 10 rupee price point and hence the market should stabilize 25:00 25 minutes and like vipin said in the non-5 and 10 rupee segment we are growing in healthy double digits. So you see biscuits is a 25:07 25 minutes, 7 seconds unique category. I'm sure that you're also looking at the results of other companies. Uh the five and 10 rupee from 25:14 25 minutes, 14 seconds a consumer point of view from a price point doesn't really get impacted. Uh and hence you know that market behaves a 25:21 25 minutes, 21 seconds bit differently and is also highly dependent on how the trade reacts and how the trade stocks you. uh but the 25:28 25 minutes, 28 seconds rest of our portfolio is going in healthy double digits and we are very confident that in very short period of time uh these channels will also come back to normaly. 25:40 25 minutes, 40 seconds Understood. So the so the high single early double digit uh growth that you indicated was was not for March right it 25:48 25 minutes, 48 seconds was for it is for uh uh April I would assume yeah yeah it was for the first two months and then in March because of uh 25:56 25 minutes, 56 seconds our inability to supply from West Asia had it that uh low growth of that market 26:03 26 minutes, 3 seconds uh actually the business of from that part was actually negative for the whole quarter pulled us down. 26:09 26 minutes, 9 seconds Got it. So seems like you've addressed both the issues are kind of almost there. Uh any indication of how April 26:16 26 minutes, 16 seconds and May shaping up early days for May but April has shaping up from that growth point of view. So you know I would not want to give details but we 26:24 26 minutes, 24 seconds are quite confident that by the end of the quarter uh the market would quite likely stabilize on the domestic front 26:33 26 minutes, 33 seconds and like we said on the west Asia front we very way taken measures to ensure that the supply channels that we have 26:40 26 minutes, 40 seconds now are not dependent on uh the horos so we are quite confident that we will do better this quarter. 26:48 26 minutes, 48 seconds Understood. Uh secondly, I want to thank you may sorry to interrupt you. Uh we have a long queue. Can I request to come back for a followup please? Sure no problem. 26:56 26 minutes, 56 seconds Thank you. 26:59 26 minutes, 59 seconds Next question is from the line of Anish Roy from Noama. Please go ahead. 27:04 27 minutes, 4 seconds Yeah thanks. Uh my first question is on the pricing bit. Uh you did say that Parlay and other local players will now 27:10 27 minutes, 10 seconds soon racket uh the 5 rupee 4 and a half and 9 rupee. In fact, I see parlay still selling at 9 rupee on Amazon big 27:19 27 minutes, 19 seconds commerce as we speak. So maybe it is still work in progress. So specific question was what kind of pricing you will need if local players are vacating four and a half nine means you will also 27:28 27 minutes, 28 seconds need the price hike or maybe gramage cut. So if you could tell us uh what kind of grammage cut or price hike is 27:35 27 minutes, 35 seconds needed as of now have you taken some corrective action already because most other FMCG companies have already taken 3 to 5% price hike as we speak. So if 27:44 27 minutes, 44 seconds you could give that clarity because in your case wheat is deflationary and maybe cocoa etc deflationary but lot of other things are inflationary. So if you could give some sense of pricing. 27:56 27 minutes, 56 seconds Yeah. So like we said wheat uh is a bit deflationary but like we said fuel is highly inflationary, laminate is highly 28:04 28 minutes, 4 seconds inflationary. Uh so let me answer both the parts of your question. So we see that many of our other biscuit uh 28:14 28 minutes, 14 seconds colleagues are moving towards uh to the full price points and that is uh happening gradually as we see on the 28:22 28 minutes, 22 seconds other part. Yes, selectively we will have to take price increases and this includes both gramage adjustment and 28:30 28 minutes, 30 seconds some of the packs which are above 10 rupees some kind of a price increase. So both of them are factory. 28:37 28 minutes, 37 seconds Understood. Uh second and last question will be on local players. Uh other FMCG categories are telling us because of GST 28:45 28 minutes, 45 seconds rate being lowered to say 5% in most cases compliance has dramatically improved. So if you could tell us in biscuit this was a key benefit. Uh so X 28:54 28 minutes, 54 seconds of whatever 4 and a half 9 rupee coinage issue is there is there a compliance uh big improvement. Second is you said you 29:02 29 minutes, 2 seconds don't sell much of five and 10 on e-commerce. I do see parlay I have personally also ordered and right now also parlay 9 rupees available on Amazon 29:10 29 minutes, 10 seconds quickcommerce and some of the other quickcommerce. So are you a bit under indexed on five and 10 on fix commerce. 29:16 29 minutes, 16 seconds So is that something you would want to change? 29:19 29 minutes, 19 seconds No no no what I mean to say is compared to the other channels uh the five and 10 rupee sells lesser on e-commerce. 29:26 29 minutes, 26 seconds Obviously uh I don't think any of the channel partners will come back and say that Britannia did not supply or did not run programs on five and 10 rupee. Uh so 29:35 29 minutes, 35 seconds what I'm saying is the channel's contribution of e-commerce towards these lower price points is much lesser. Uh 29:42 29 minutes, 42 seconds from a compliance point of view, I think the 5% GST rate will anyway help in compliance and I don't see an issue 29:51 29 minutes, 51 seconds there. I think the uh so so the issue of uh 29:57 29 minutes, 57 seconds a compliance not improving or changing from the 18 to 5 rupee price point is not a question for us. So Anishh on on 30:07 30 minutes, 7 seconds the first point Romesh so see we do not proactively push five and 10 on the e-commerce business because the natural 30:16 30 minutes, 16 seconds disposition of a consumer is to buy premium and impulse and that's where you know we have this entire game of 30:23 30 minutes, 23 seconds upgrading the packs or upgrading the brands. So therefore we do not actively promote five and 10. The second point on 30:30 30 minutes, 30 seconds that is that it also leads to lot of channel conflict right and you know for us to thrive in this omni channel world 30:38 30 minutes, 38 seconds it's very very very critical that we have different assortment being focused for different channels just one clarification that is my last 30:47 30 minutes, 47 seconds question uh when you say you don't push what does it mean for example I can't see five and 10 rupee on pcommerce based on whatever I I have checked in you can 30:55 30 minutes, 55 seconds correct me uh not pushing means no discounting is that what you Okay. Because I don't see availability also. 31:01 31 minutes, 1 second Yeah. So basically uh you know it works on algo, right? So I can't see what you can see on your phone, right? But 31:09 31 minutes, 9 seconds basically the algo would you know uh be based on incentives and if there is a discount, right? Uh you will see them 31:17 31 minutes, 17 seconds you know right up on your screen. So we do not actively promote them and therefore it is only through you know search mechanism or if you have bought 31:25 31 minutes, 25 seconds it previously that it will be visible because there's no point actively promoting these packs. It's always better to put your money behind the premium packs. 31:35 31 minutes, 35 seconds Yeah. But if anybody wants to complete a basket and also wants to buy packs of 10 and five rupees of Britannia, they will be available. 31:42 31 minutes, 42 seconds Sure. Sure. Thank you. That's all from Thank you. Thank you. A request to all the participants. 31:49 31 minutes, 49 seconds Kindly limit yourself to two questions per participant and rejoin the queue for a follow-up question. The next question is from the line of Kunal Wara from BNP Pariba. Please go ahead. 32:00 32 minutes Yeah, thanks for the opportunity. So just to understand that dual pricing issue uh competition of selling pack was 4 and a half and 9 rupees. Uh so does it 32:10 32 minutes, 10 seconds like in retailers I believe are making higher margins on their packs versus your packs. So is that the main cause and like say because of that like you 32:18 32 minutes, 18 seconds could have lost some market share in the interim and is it fair to say that now that like say the prices have been 32:25 32 minutes, 25 seconds reinstated at 5 rupee and 10 rupee uh like say that situation normalizes and uh the benefit of GST rate cut which are 32:32 32 minutes, 32 seconds already visible in other categories will be visible for you only in FY27 just to get an understanding of this issue right now. 32:41 32 minutes, 41 seconds Okay. So Kunal you are asking two questions. So you see the the benefit of GST rate cut will be more visible in 32:49 32 minutes, 49 seconds packs which are of a higher uh pricing configuration because the consumer sees that okay something was 50 rupees is now 32:55 32 minutes, 55 seconds 44 rupees or as it has happened in other companies and categories where you have 50 70 100 150 rupee packs where the 33:03 33 minutes, 3 seconds difference is noticeable on a 5 rupee and 10 rupee biscuit you know it it is not visible so perceptibly because 33:11 33 minutes, 11 seconds usually what happens is that the consumer buys because it's selling at a particular price point. Okay. Now in 33:18 33 minutes, 18 seconds your first question in terms of uh some of the competition you know selling at 450 and 9 and some of the wholesalers 33:26 33 minutes, 26 seconds wanting to give more preference from a market share let me point out that the price realization is also for those 33:35 33 minutes, 35 seconds players 4 rupees 50 per say and 9 rupees versus 5 and 10. So from a value share point of view if you look at that I 33:43 33 minutes, 43 seconds don't think it would make much of a difference and our own workings on a value share says that the difference is not there but yes it could be from 33:52 33 minutes, 52 seconds transactions point of view some wholesalers and rural markets would probably want to stop that more because they see an opportunistic moment where they can make a higher margin. 34:04 34 minutes, 4 seconds Understood. And like does it mean that like say what was not visible in your case which is benefit of GST date cut in second half could be visible in FY27 34:12 34 minutes, 12 seconds like say maybe if you can share your views on how FY27 looks like in terms of both growth and margin. 34:17 34 minutes, 17 seconds See see in the medium to longer term the GST rate cut is obviously going to benefit the industry and Britannia being 34:25 34 minutes, 25 seconds a leader is also going to benefit that maybe even more. We know that uh uh the the brand strength that we have and the 34:34 34 minutes, 34 seconds portfolio that we have at across price points will have a positive impact because of this reduction in GST. Now as 34:41 34 minutes, 41 seconds far as the five and 10 rupee price points that you talked about with the pricing stabilization, we obviously 34:49 34 minutes, 49 seconds expect that the channels where we may have peeled uh you know felt a bit of pressure will come back to normaly and 34:57 34 minutes, 57 seconds our team is very confident that during the course of the quarter that movement has already begun and should stabilize. 35:04 35 minutes, 4 seconds We also know that the biscuit industry starts to have a sequential growth from June onwards when monsoon starts to hit 35:13 35 minutes, 13 seconds and when children start going back to school. So we expect those things to start rolling in along with uh this 35:20 35 minutes, 20 seconds price uh of uh the dual pricing going away has a very positive for us. 35:26 35 minutes, 26 seconds Yeah. And I think the true barometer is this B2C business which is 75% like I called out which is growing at a very 35:33 35 minutes, 33 seconds good healthy clip. So I think that gives us the confidence that as this GST transition and the dual pricing is 35:40 35 minutes, 40 seconds fading out even this B2B or 25% of our business will start moving up. 35:47 35 minutes, 47 seconds Thank you for I'll request you to come back for a follow-up question. 35:53 35 minutes, 53 seconds Thank you. Next question is from the line of AI Mata from Mcquaryy Capital. Please go ahead. 35:59 35 minutes, 59 seconds Yeah, hi Lee. Thanks for the opportunity. Uh you know given this kind of clarification that this fuel pricing 36:06 36 minutes, 6 seconds is likely transitionary and the fact that price hikes are also kind of being taken not just by the industry but by 36:13 36 minutes, 13 seconds you. Could you share your thoughts on whether you expect FI27 to result in a stronger sales group than 36:23 36 minutes, 23 seconds what we saw in FI26 because of the pricing component or how is basically just trying to appreciate or understand the domestic demand environment. 36:33 36 minutes, 33 seconds So you see if we take a look at the domestic demand environment uh we also have to see how does the year move ahead 36:41 36 minutes, 41 seconds as far as conditions which are not in our control. 36:47 36 minutes, 47 seconds Um so say for example you know whether it is monsoon or whether it is the coming of seasons you 36:55 36 minutes, 55 seconds know they will go on as they are. We are very confident that our portfolio, the strategy that we have in terms of 37:04 37 minutes, 4 seconds creating demand, the higher advertising spend and the marketing investment doing in the retail trade along with the 37:12 37 minutes, 12 seconds strategic levers that I showed you of our uh strategy on premiumization 37:19 37 minutes, 19 seconds on future platforms on the many indas that we have created. We are quite confident that we will be able to 37:27 37 minutes, 27 seconds generate demand and have a good year. Uh but obviously we have to execute that as the year goes on. But the team is extremely confident that we will be able 37:35 37 minutes, 35 seconds to manage the demand environment and come out on top. I just fine you a little bit more here. 37:42 37 minutes, 42 seconds But uh when you say you know a good growth basically what I'm trying to understand is the pricing something that you believe would have a higher impact 37:50 37 minutes, 50 seconds price elasticity or your belief on how it would pan out is what I was trying to garner that was the key bit and that's 37:58 37 minutes, 58 seconds where the question comes from not from a numbers perspective but just your thoughts on how you see pricing elastity 38:05 38 minutes, 5 seconds kind of panning out and in turn kind of flowing through growth rates for the industry and for us. 38:12 38 minutes, 12 seconds So to say for example if the players are having to take a price increase uh there has already been a price drop which has 38:19 38 minutes, 19 seconds happened because of GST. So I think the you are coming back to a situation which is somewhat equal to what was there 38:26 38 minutes, 26 seconds maybe six to seven months back and the demand situation at that time was quite good. So I don't think that pricing uh 38:34 38 minutes, 34 seconds either a bit upwards or either a bit downwards is going to have any major impact from an elasticity point of view. 38:40 38 minutes, 40 seconds This category is vibrant. There is a lot of action and we are confident that uh even with the small increase in price 38:48 38 minutes, 48 seconds which is being necessitated because of the conditions the demand situation will remain fairly strong. 38:55 38 minutes, 55 seconds Got it. Got it. And just a bookkeeping I mean what is the volume growth that we saw in the last quarter forecast? That's all from 39:02 39 minutes, 2 seconds so we had a volume growth of close to 5 and a half upwards. 39:09 39 minutes, 9 seconds Okay. Perfect. Thank you very much. Thank you. 39:13 39 minutes, 13 seconds Next question is from the line of Siddesh Deshmuk from Capital. Please go ahead. 39:20 39 minutes, 20 seconds Uh hi sir, this is Percy Pantaki here. 39:23 39 minutes, 23 seconds Uh I just wanted to again uh talk about uh the top line and the demand. Uh so two sub questions in that. One is you 39:31 39 minutes, 31 seconds mentioned that the uh dual pricing especially in wholesale etc has been the problem area. uh would you be able to 39:38 39 minutes, 38 seconds give us some kind of rough idea had that problem not been there uh how much I mean how much has that problem uh 39:46 39 minutes, 46 seconds dampened the sales growth by is it like a 200 bs 500 b 700 bips what the order of magnitude of that that's first part 39:54 39 minutes, 54 seconds of the question and the second part of the question is that the large food companies that have reported the other 40:02 40 minutes, 2 seconds snacking categories like uh chocolates and noodles uh they have sort of shown close to about 30% kind of sales growth 40:11 40 minutes, 11 seconds in that. So is it that uh the consumer behavior is shifting uh and uh the type 40:18 40 minutes, 18 seconds of snacks that they want to sort of consume there is a little bit of shift in the market share uh of uh snacking 40:26 40 minutes, 26 seconds activity between different categories because even if I assume that the biscuit category overall has grown a little faster than you have it would 40:35 40 minutes, 35 seconds still not be close to that 25 30% kind of mark that these other brands are growing Okay. So [clears throat] Percy uh thank 40:45 40 minutes, 45 seconds you. So you basically have two questions. 40:47 40 minutes, 47 seconds Uh so obviously if we take a look at the the wholesale and the rural channels where this dual pricing has had an 40:54 40 minutes, 54 seconds impact. So obviously it would have impacted our sales. Now it is hypothetical for us to say whether it 41:01 41 minutes, 1 second impacted by 200 or 300 or 400 basis point. But yes it did have an impact. 41:07 41 minutes, 7 seconds Now we also see transactions and we can see that there has been an impact on transactions. What we are very confident is that with this price stabilizing that 41:16 41 minutes, 16 seconds 200 300 400 whatever you are saying is that real number will come back to us. 41:21 41 minutes, 21 seconds Now obviously maybe if you can call out what is the kind of growth apart from this affected portfolio what is the growth in the rest 41:29 41 minutes, 29 seconds of the portfolio that also could give us some idea of what the growth is tracking. the rest of the portfolio which is not impacted. For example, if I 41:37 41 minutes, 37 seconds take at rest of general trade, if I take a look at key accounts where I'm I'm growing in healthy double digits. Okay. 41:44 41 minutes, 44 seconds If I take a look at modern trade, I'm growing even stronger. 41:48 41 minutes, 48 seconds Yeah. So, e-commerce is uh you know upwards of upwards of 50%. Modern trade is upwards of 15 16%. So 41:57 41 minutes, 57 seconds the you know where the consumer is interacting directly as he used to interact directly also in these channels before GST our growths are very healthy 42:06 42 minutes, 6 seconds which is why we are very confident that this is just a temporary blip. Now for me to put a number of 2% 3% 4% will be a bit challenging but whatever is that 42:15 42 minutes, 15 seconds loss or shortfall will get recovered. on your second question. Okay. 42:20 42 minutes, 20 seconds See, I I don't think snacking consumption shifts happen so dramatically that chocolates will start growing at 30% and biscuits will slow 42:28 42 minutes, 28 seconds down. Obviously, what has happened is that the price elasticity of sales uh for these categories, they have benefited more from the GST reduction. 42:39 42 minutes, 39 seconds So if GST reduction is showing a noticeable drop in price because many of these categories are independent of the 42:46 42 minutes, 46 seconds 5 rupee conundrum obviously growth will go up. We can also see for ourselves 42:53 42 minutes, 53 seconds where we have packs which are sell at higher price point where some price drops have happened are showing a higher transaction value and a higher traction. 43:03 43 minutes, 3 seconds So I don't think that the consumption shift over one quarter uh is anything to be read. I think it's a function that 43:10 43 minutes, 10 seconds the true benefit of GST as it was supposed to be is reflecting on those categories earlier and much faster. But 43:18 43 minutes, 18 seconds I don't think it has got to do anything with a biscuit category versus a different snacking category or a chocolate category. 43:26 43 minutes, 26 seconds Got it. May I be permitted to uh squeeze in one more question? 43:33 43 minutes, 33 seconds Well, from our side, you are welcome to the moderator. Just a quick quick one the the uh other expenses growth of 18% 43:43 43 minutes, 43 seconds on a topline growth of only 7%. What is driving that? 43:49 43 minutes, 49 seconds So you know like we said we are gradually also upping the investment in brand and uh advertising. Uh so one of 43:58 43 minutes, 58 seconds the reasons for that is that we have upped our advertising expenses from last quarter and we will be investing uh more vigorously in our brands. 44:09 44 minutes, 9 seconds Thank you Percy. I'll request to come back. Thank you so much. 44:13 44 minutes, 13 seconds Thank you. I request to all the participants. Kindly limit yourself to two questions per participant and rejoin for a follow-up question. 44:22 44 minutes, 22 seconds The next question is from line of Ana from Access Capital. Please go ahead. Yeah. Hi S thanks for the opportunity. 44:29 44 minutes, 29 seconds Uh just a couple of questions. So firstly on this uh the dual pricing on the Janford March DL. So this global pricing did it not have any impact in 44:38 44 minutes, 38 seconds Jan particularly only impact in March is it and and also I mean if you remove the west Asia impact completely let's 44:45 44 minutes, 45 seconds international business then would jam March the core India business that would be steady or that was just throughout 44:54 44 minutes, 54 seconds the months back uh no I think 45:00 45 minutes there's an echo from it no I Anand so sorry to interrupt. Anand can you mute your line please? 45:07 45 minutes, 7 seconds Yeah right. 45:10 45 minutes, 10 seconds No Anand I think you misread what we said. Uh the impact of the dual pricing has existed through January, February 45:16 45 minutes, 16 seconds and March. In March we have to add the specific challenge coming from West Asia. So that's how we read it. So, 45:26 45 minutes, 26 seconds so if I then state it so then just purely if I remove West Asia then the normalized growth would be 99% for Jan 45:33 45 minutes, 33 seconds Mark let's say for example I mean it would be a more smooth yes yes yes and that would be the impact of dual pricing so like in the earlier 45:42 45 minutes, 42 seconds question asked by Percy if hypothetically there is an impact of that dual pricing then if you add that 45:50 45 minutes, 50 seconds then that becomes a real growth okay this this clarifies a lot and and this lastly on the on the RM inflation we are seeing and the price you have 45:58 45 minutes, 58 seconds already taken if you can just see the color on that I didn't hear you on RM inflation so so 46:05 46 minutes, 5 seconds like we said the uh can you can you repeat your question no 46:12 46 minutes, 12 seconds I was just asking on a on a broad color you give color on the overall RMS but as a index level what kind of inflation you are seeing and what hikes you have 46:20 46 minutes, 20 seconds already taken so like we Wheat is uh is a positive for us. 46:28 46 minutes, 28 seconds Although like I said in the last one month because of rains and some poor quality of wheat arrivals the price has gone up but about one month back uh so 46:37 46 minutes, 37 seconds it was good but it is going upwards. So wheat is going upwards. Palm oil is also higher although we are covered but we 46:44 46 minutes, 44 seconds know that palm oil has a connection with fuel prices. Uh sugar is more or less normal. uh we told you you you're 46:52 46 minutes, 52 seconds talking about raw materials. So these are the three most important raw materials. 46:56 46 minutes, 56 seconds Fuel and fuel of course fuel is a challenge for everybody. So you know we use LPG, we use PNG and uh the inflation 47:04 47 minutes, 4 seconds on that is openly available in the market which is also what we are having to pay. What kind of price? 47:11 47 minutes, 11 seconds Sorry to interrupt you. Kindly come back for a followup question. 47:14 47 minutes, 14 seconds Yeah. This is just part of the question I just asked. 47:17 47 minutes, 17 seconds Sorry to interrupt you. I will please come requested to come back sir. Thank you. 47:24 47 minutes, 24 seconds Next question is from the man of Arnamitra from Goldman Sachs. Please go ahead. 47:29 47 minutes, 29 seconds Hi. Uh my my first question was actually on the GST in fact on price points. So Raj what we have seen in many other 47:36 47 minutes, 36 seconds foods categories is because of the mathematics of a five and 10 rupees pack when the GST goes down your net realization per pack obviously goes up 47:44 47 minutes, 44 seconds as a company. uh of course assuming transactions are same. So in my understanding in noodles, chocolate kind of categories there has been a 47:52 47 minutes, 52 seconds significant uplift in value growth because of that. Could the same logic not play out in biscuits also once this tax price issue is over or do you think 48:01 48 minutes, 1 second biscuits are a little different and therefore if you give higher grammar the transactions can actually drop in terms of the number of taxs? 48:09 48 minutes, 9 seconds [clears throat] 48:10 48 minutes, 10 seconds No. Also I think biscuits is also a bit impulsive and is also a bit bland purchase. So if you are giving 48:18 48 minutes, 18 seconds a bit more biscuit or a bit less biscuit I don't think from a consumer transaction point of view it has a 48:26 48 minutes, 26 seconds bigger impact because it's a part of routine shopping basket. People you know keep buying it regularly. So for the 48:34 48 minutes, 34 seconds biscuit category the GST change I think is very silent unless there is a dramatic shift where you have to reduce the gamage so much or something which 48:43 48 minutes, 43 seconds becomes noticeable to the consumer which is not the case here. 48:48 48 minutes, 48 seconds Got it. So my question actually was should you then not see a significant increase in uh value growth once the transition has happened because as a 48:57 48 minutes, 57 seconds company you would realize lot higher on a per pack basis given the lower GST and therefore should we not see a much faster acceleration in growth uh as the 49:07 49 minutes, 7 seconds things stabilize uh I'm not saying going back to normative levels but should it not be significantly above normative levels uh given this uh this dynamic 49:15 49 minutes, 15 seconds so so you see we are also positive that you know we will have a good realization but because of the issues in the market 49:23 49 minutes, 23 seconds in the last four or five months we have not been able to see in what way this trend will move but if it happens like that we are happy that you brought it to 49:32 49 minutes, 32 seconds the four uh got it uh and my second and last question was on margins so given the 49:39 49 minutes, 39 seconds cost pressures and also your initiatives on innovation and bi strategy is there any implication for IITA margins for fi 49:48 49 minutes, 48 seconds 27 seven could you have some impact as you invest in these and also face cost pressure or do you think you have enough uh uh you know costsaving efforts uh to mitigate uh uh these investments? 50:01 50 minutes, 1 second So you know um you know Britannia has a history of uh being very tight in its operations and very strong 50:08 50 minutes, 8 seconds cost-effective program measures which obviously have been put into four and obviously when we spend we will also be selective and try and put our marketing 50:17 50 minutes, 17 seconds mix model in such a manner that while we invest more we invest where our returns are better. I think there are some learnings that we have from the past and 50:25 50 minutes, 25 seconds we will apply that. So while yes the operating environment is tough the fuel inflation the laminate inflation is there for us but the team is confidently 50:34 50 minutes, 34 seconds that within a certain band we'll be able to manage it okay thanks that's it from my side all the way 50:43 50 minutes, 43 seconds thank you next question is from the line of Nihajam from HSBC please go ahead 50:51 50 minutes, 51 seconds yes sir Rashid good morning uh couple of questions the first was a clarification that Uh when you mentioned X of West 50:59 50 minutes, 59 seconds Asia is it that the door to the domestic operations was 9 cent or sorry to interrupt your voice is breaking can you come in a better 51:07 51 minutes, 7 seconds reception area please is it better now slightly hello 51:14 51 minutes, 14 seconds my first question was a clarification that uh could you clarify that when you mentioned the 9% number was that the 51:22 51 minutes, 22 seconds growth for the domestic operations uh for uh the Q4 quarter uh and you know the impact and the concern growth of 3% was because of the international impact of West Asia. 51:33 51 minutes, 33 seconds So like we said the domestic business was growing at more or less close to 99 9 and a half% which we have said and the 51:43 51 minutes, 43 seconds the small pressure that we had in the month of March was only because of West Asia and going back to you know the 51:49 51 minutes, 49 seconds questions two previous back uh to this domestic growth of 9 and a half% you have to add whatever basis points we 51:58 51 minutes, 58 seconds have lost potentially because of this dual pricing in these this particular channel. I hope that answers your question. 52:06 52 minutes, 6 seconds That does. The second was that obviously in your presentation you are reflecting the cost uh based on the current inventory that you're holding. Uh just 52:14 52 minutes, 14 seconds to understand based on the current inflation because obviously the spot prices are much higher than what raw material may be holding. What would be the ballpark inflation that we are facing right now? 52:25 52 minutes, 25 seconds So you see in terms of palm oil we are covered for the next five months and I think we have a favorable rate against 52:33 52 minutes, 33 seconds the market. Also on wheat we are one of the most proactive and aggressive buyers and we have a good reading of the 52:41 52 minutes, 41 seconds market. So also on wheat point of view the inventory that we have right now for the next I believe we are now already 52:49 52 minutes, 49 seconds covered for about five and a half six months is also at a price which is attractive even if you add the carrying and the inventory cost. So the inventory 52:58 52 minutes, 58 seconds that we are holding right now is a favorable one. 53:04 53 minutes, 4 seconds Thank you. The line for the participant drop we move on to the next participant. 53:09 53 minutes, 9 seconds Next question is from the line of Vive Meshwari from Jeffrey's India. Please go ahead. Hi Rakshit and team. Uh two questions. 53:18 53 minutes, 18 seconds My first question is again on the volume growth rate. So Rashid this volume growth number five and a half% is in terms of gramage right in terms of total grams or whatever kgs tons. 53:28 53 minutes, 28 seconds Yes. So if you look at you know price point packs 65% and you know the fact that GST rate was cut quite a bit that 53:37 53 minutes, 37 seconds itself would have given like more like 7 and a half 8%. So in terms of number of packs basically there would be a reasonable decline in this quarter. Is that fair? 53:46 53 minutes, 46 seconds So like we said uh a lot of the five and 10 rupee packs sell in the wholesale and the rural channels and we can see a 53:54 53 minutes, 54 seconds result uh of stress in number of transactions. So your observation obviously is correct which we are very 54:01 54 minutes, 1 second confident will get corrected as we go ahead in the next few months. 54:07 54 minutes, 7 seconds Okay. And is there anything on the competition side Rashid because there was an interview you know in the media from number two player which said double 54:15 54 minutes, 15 seconds digit volume growth and all. Do you see I mean if you have to so two parts one is uh on the competition side what are you seeing and second difficult choice 54:23 54 minutes, 23 seconds but if you have to make between uh let's say growth margins for you versus market share how will you how will you you know uh how will you design your strategy 54:32 54 minutes, 32 seconds from the next few months perspective if there is something like that. 54:37 54 minutes, 37 seconds So you see if uh uh the number two player has said that they are experiencing a double-digit uh growth 54:45 54 minutes, 45 seconds then obviously it could be that they have had a certain you know volume advantage in these particular channels 54:52 54 minutes, 52 seconds uh which could have happened. Uh our understanding is that that 25% for us is as close as 40% for them. So they would have got that advantage. 55:02 55 minutes, 2 seconds Yeah. And secondly, choice between market share and margin. I think we have to you know keep going stronger on 55:11 55 minutes, 11 seconds market share but like we said that we are also adept at managing margin. So it is a careful orchestra which we will play very nicely is all I can tell you. 55:20 55 minutes, 20 seconds You know we don't want to compromise one for the other. So we will be much more smarter in our allocation funds 55:27 55 minutes, 27 seconds marketing where it makes an impact. So you know there's a lot of work happening and uh we have growth ambitions but we 55:33 55 minutes, 33 seconds will also be able to manage the margin profile. 55:38 55 minutes, 38 seconds Got it. Got it. Thank you. Wish you all the best. Thank you. 55:43 55 minutes, 43 seconds Thank you. Next question is from Les Sha from Aventar. Please go ahead. 55:48 55 minutes, 48 seconds Uh hi Rakshit. Thank for the opportunity. uh on on the strategic pillar that you have called out and uh and then you partly answered the 55:56 55 minutes, 56 seconds question but uh the hallmark of Britannia for last 10 plus years was uh relentless focus on uh cost cost 56:04 56 minutes, 4 seconds efficiency and then that consequent was uh margin expansion. So uh the the the sense that I got from your comment so 56:12 56 minutes, 12 seconds far is that we have reached to a stage where we need to reinvest in in uh brands and and operations. So should we say that the band that we are currently 56:20 56 minutes, 20 seconds is is a very comfortable band and uh from here on nonlinearity that we saw past decade uh won't be at least in the near future. 56:29 56 minutes, 29 seconds So you know let me answer the question in this way. The relentless focus on cost and efficiency is now ingrained in 56:37 56 minutes, 37 seconds the DNA and even this year we have a very aggressive plan to do that. But we also realize that we have to create new 56:44 56 minutes, 44 seconds pillars for growth and this includes again investing in our brands cmization 56:52 56 minutes, 52 seconds creating new verticles for growth. Uh readressing India in the way we would want to address as many India. So all 57:00 57 minutes that will get added to the fact that we will be very sharp on our cost and the efficiency programs. So it's not but yes 57:09 57 minutes, 9 seconds like we said as we move ahead you will need to see new growth vectors for us as we also want to move towards a more complete foods company. 57:20 57 minutes, 20 seconds Perfect and and just the extent of the point that you may uh that's a part of the strategic pillar also that innovation adjacency and future 57:28 57 minutes, 28 seconds platforms. So should we interpret that Britannia will be adding more platforms or you believe that because this ambition has been there for a while uh 57:36 57 minutes, 36 seconds but scalability has has not come through. So all the adjacencies that you need are already on the table or you'll add more platforms uh in terms of expansion. 57:47 57 minutes, 47 seconds So we will be adding more platforms and you will hear about that because I think we have to broadbase ourselves and there are new opportunities and I think we 57:55 57 minutes, 55 seconds need to address those new opportunities in the way that Britannia would want to address them. So you would hear about them in the future. Plus I think we also 58:02 58 minutes, 2 seconds spoke about some of the signature brands that we have and those uh you know are certainly underleveraged and that's what we will also need to amplify along with 58:11 58 minutes, 11 seconds the new platform and and would you do you believe that this can be done organically or like many of your peers you will also go in organic way to bridge the gap. 58:24 58 minutes, 24 seconds Can you can you come again on that? No sir sir. Yeah, sorry. 58:29 58 minutes, 29 seconds No, so inorganic play is a part. See, we have not been we have not done that. Uh but there is active scanning and there 58:38 58 minutes, 38 seconds is a very serious intent. But like we said, what we want to acquire has to tick a few boxes for us. Number one, it 58:47 58 minutes, 47 seconds has to help us h do something new. It has to help address a consumer need which we are not addressing or it has to 58:56 58 minutes, 56 seconds get us some skill or technology or capability which we don't have. When it ticks some of these boxes we will be 59:04 59 minutes, 4 seconds ready and like we said we also have created a new platform on health. It also needs you know so that also would be an active consideration as we will expand this in the coming months. 59:17 59 minutes, 17 seconds Thank you Tis for all your questions. 59:20 59 minutes, 20 seconds Ladies and gentlemen, with this I now hand the conference over to Aayishagar for closing comments. 59:29 59 minutes, 29 seconds Thank you everyone for spending time with us on the call today. We look forward to interacting with you again in the future. Thank you and have a good Thank you. 59:37 59 minutes, 37 seconds Thank you. 59:40 59 minutes, 40 seconds Thank you very much. On behalf of Britan Industries Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.