Emami Limited — Q2 FY26

Emami Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=4XbLPCv9dHI Published: 6 months ago

0:00 Ladies and gentlemen, good day and welcome to the Immi Limited Q2 FI26 earnings conference call hosted by IFL Capital Services Limited. 0:11 11 seconds As a reminder, all participant lines will be in the listenonly 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 the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:26 26 seconds note that this conference is being recorded. I now hand the conference over to Mr. Panchi Pari Pantiki from Capital 0:34 34 seconds Services Limited. Thank you and over to you sir. 0:38 38 seconds Uh hi everyone. Uh good evening. Uh it's our pleasure to hold the 2QFI26 0:45 45 seconds uh conference for uh Imami. On uh call with us we have Mr. Moan Goena full-time director and vice chairman. Mr. Vived 0:53 53 seconds CEO international business. Mr. Gul Batia, President Healthcare, Mr. Manish Gupta, President Sales, uh Mr. Girj Bagri, Chief Growth Officer, and Mr. 1:05 1 minute, 5 seconds Rajesh Sharma, President Finance and IR. I'll now hand over the call to Mr. 1:10 1 minute, 10 seconds Goinga who will take you through the results. Over to you, sir. Thank you. 1:17 1 minute, 17 seconds A very good afternoon ladies and gentlemen. Thank you for joining us today for the Immi Limited Q2 FY26 1:25 1 minute, 25 seconds earning call for the quarter and half year ended 30th September 25. 1:32 1 minute, 32 seconds This quarter we have seen a transformational policy development by the government of India to reduce GST rates across key FMCG categories. 1:42 1 minute, 42 seconds This is a landmark reform aimed at enhancing affordability, improving consumer purchasing power and ultimately 1:50 1 minute, 50 seconds stimulating broad-based consumption across both urban and rural India. 1:56 1 minute, 56 seconds For Imami, this reform is structurally positive as nearly 88% of our core domestic portfolio benefited from the 2:05 2 minutes, 5 seconds reduction in GST from 12% or 18% to now 5%. 2:11 2 minutes, 11 seconds taking our total 5% rate GST portfolio coverage to around 93%. 2:20 2 minutes, 20 seconds In keeping with our consumer first philosophy, we swiftly passed on the benefits of this rate cut, reinforcing 2:27 2 minutes, 27 seconds our commitment to valuedriven affordability and accessibility. 2:32 2 minutes, 32 seconds While this reform lays the foundation for long-term demand acceleration, its implementation caused temporary trade disruptions. In September, 2:41 2 minutes, 41 seconds trade channels and consumers deferred purchases in anticipation of lower MRPs while distributors forced on liquidating 2:50 2 minutes, 50 seconds higher cost inventory, resulting in a short-term moderation in sales. The timing of the GST rate change also 2:59 2 minutes, 59 seconds coincided with the peak winter pipeline buildup leading to a deferment in our winter portfolio loading. 3:07 3 minutes, 7 seconds Additionally, our summer portfolio faced the second challenging quarter due to heavy rains which significantly impacted 3:14 3 minutes, 14 seconds category demand particularly for talc and prickly heat powders. Given that we had recorded our highest ever sales in 3:23 3 minutes, 23 seconds the second quarter for talc and prickly hit powder category last year, the combination of a softer market and a 3:31 3 minutes, 31 seconds high base resulted in a steep yearon-year decline this quarter. As a 3:37 3 minutes, 37 seconds result, consolidated revenues at 799 crores declined by 10% this quarter led by a 15% decline in domestic business. 3:50 3 minutes, 50 seconds However, excluding the GST rate affected categories, some of our non-GST rate 3:58 3 minutes, 58 seconds impacted portfolio delivered encouraging growth with medical range up by 8%, 4:04 4 minutes, 4 seconds Jandu Cuff Syrup by 43%, Honey by 36% and Jandu Care growing by 17%. Our 4:14 4 minutes, 14 seconds strategic investment portfolios also rebounded with a 16% growth on a year-on-year basis and 36% on a 4:23 4 minutes, 23 seconds sequential basis, reflecting improved performance across key focus areas. Our strategy of purposeful innovation and 4:32 4 minutes, 32 seconds premiumization continues to gain traction. Last year we took a bold stop uh bold step by transforming fair and 4:39 4 minutes, 39 seconds handsome into smart and handsome positioning it as a complete men's grooming brand. This quarter we deepened that journey by launching 12 new products across different categories. 4:50 4 minutes, 50 seconds Our initial rollout across modern and e-commerce platform has been encouraging. 4:57 4 minutes, 57 seconds We also recently undertook the strategic relaunch of Kesh King as Kesh King gold based on deep consumer research which 5:05 5 minutes, 5 seconds revealed a shift in expectations. While our ayurvedic heritage continues to be our biggest strength, today consumers also seek the added assurance of science 5:14 5 minutes, 14 seconds and proof of efficacy. This insight inspired us to evolve king proposition to Ayurveda plus science to build on our 5:23 5 minutes, 23 seconds legacy while enhancing credibility and relevance among modern consumers. 5:29 5 minutes, 29 seconds Our international business delivered a steady 8% growth despite persistent macro and geopolitical headwinds. Our 5:38 5 minutes, 38 seconds approach remains one of strategic focus combining portfolio relevance, market specific innovation and lo localized 5:45 5 minutes, 45 seconds execution excellence to drive sustained value creation globally. 5:51 5 minutes, 51 seconds On the financial front, gross margins remain stable at 71% underscoring our cost discipline and 6:00 6 minutes input price stability. A bit for the quarter stood at 179 crores declining by 6:08 6 minutes, 8 seconds 29% and PAT at 148 crores declined by 30% 6:15 6 minutes, 15 seconds reflecting the temporary impact of lower top line. The board of directors also declared an interim dividend of 400% 6:24 6 minutes, 24 seconds amounting to rupees 4 per share for FI26. 6:29 6 minutes, 29 seconds Looking ahead, I am pleased to share that October has witnessed a healthy rebound in trade sentiments with the deferred winter loading being recovered, 6:38 6 minutes, 38 seconds placing us on a strong footing for the second half of the year. 6:43 6 minutes, 43 seconds We remain optimistic about a robust and profitable second half supported by a favorable winter season, the 6:50 6 minutes, 50 seconds normalization of the trade post GST reform, and the positive impact of our strategic interventions. 6:58 6 minutes, 58 seconds The continued expansion of organized channels combined with our operational agility and cost leadership further reinforces our confidence. Together, 7:07 7 minutes, 7 seconds these levers position us well to deliver sustained profitable growth in the second half stren while strengthening 7:14 7 minutes, 14 seconds the foundation for long-term value creation and market leadership. 7:19 7 minutes, 19 seconds With that, I would now like to open the floor for questions. 7:25 7 minutes, 25 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 7:33 7 minutes, 33 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 7:40 7 minutes, 40 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q ascendles. 8:01 8 minutes, 1 second Participants, you may please press star and one to ask a question. 8:05 8 minutes, 5 seconds The first question is from the line of Percy Pantiki from ISL Capital Services. Please go ahead. 8:11 8 minutes, 11 seconds Uh, hi sir. Uh, can you tell us a little more about the Navata relaunch apart from the uh, uh, name change? What else 8:21 8 minutes, 21 seconds have you changed uh, uh, in the marketing mix? Um, it is not Navati, it is Kesh King. 8:29 8 minutes, 29 seconds Sorry. Sorry. K. Yes. 8:31 8 minutes, 31 seconds Yeah. Yeah. So Kishking uh is a pure was a pure ayurvedic uh based product. Of 8:38 8 minutes, 38 seconds course we added uh science to ayurvea that was we enhanced the we upgraded the formulations 8:46 8 minutes, 46 seconds with uh uh some ingredients like grow biotin and plant omega 369 which are scientifically proven ingredients you 8:55 8 minutes, 55 seconds know to enhance the results. So it is a pure now uh Ayurveda and sciencebacked formulations. 9:04 9 minutes, 4 seconds So so that has uh benefited we launched it last month. I think uh it has been 9:11 9 minutes, 11 seconds well received in the market and of course it will be backed up by a huge advertising campaign. Uh so because of 9:19 9 minutes, 19 seconds the GST disruptions the uh launch got a little delayed but now we are uh absolutely on it. So the new 9:28 9 minutes, 28 seconds formulation will be part of the communication message. Absolutely 100%. 9:36 9 minutes, 36 seconds Got it. Got it. Yeah. Uh operator I think we can take uh questions from the queue. 9:43 9 minutes, 43 seconds Thank you very much. The next question is from the line of Natan Gupta from MK Global. Please go ahead. 9:51 9 minutes, 51 seconds Uh thanks for taking my question. First question is around this GST driven deto% 9:57 9 minutes, 57 seconds in Q2. So like I just wanted to gauge like uh is it fully can be fully recovered in Q3 or you expect uh it to take some time? 10:09 10 minutes, 9 seconds We are uh very confident that it will be recovered in Q3. 10:16 10 minutes, 16 seconds We have seen a bit of recovery in October itself. 10:20 10 minutes, 20 seconds Okay. because we could not load it in the last days of September which got loaded in October 10:27 10 minutes, 27 seconds and uh based on your initial comment around the Kings. So uh you have highlighted shift in expectations. So 10:35 10 minutes, 35 seconds like uh across multiple uh companies the reporting result like uh HL has highlighted then we are sort of driving 10:43 10 minutes, 43 seconds the growth in FMCG where they are looking to align the portfolio and given we have the higher salience of our portfolio in rural. Would you like to 10:51 10 minutes, 51 seconds offer any comment like how the consumption trend are shaping up in rural market? 10:58 10 minutes, 58 seconds Definitely Nithan I think u recently we have seen a good demand coming of uh from the rural side uh for all our 11:06 11 minutes, 6 seconds categories and as far as Kishking is concerned we are really focusing on the shampoo shashes particularly drive the 11:15 11 minutes, 15 seconds growth of the shashes. So that was part of the strategy and we are seeing uh 11:22 11 minutes, 22 seconds excellent results from that uh driving growth in rural markets for sashes in shampoo particularly. 11:31 11 minutes, 31 seconds Okay. Thank you. And with respect to smart and handsome so we are extending to multiple categories. So do we see the core face cream categories under 11:40 11 minutes, 40 seconds structural pressure? And additionally I just wanted to gauge like given we are positioning this brand in modern trade and e-commerce. So are we going to see any cannibalization risk for TMC? 11:53 11 minutes, 53 seconds Not really. These are absolutely at a different price points and u different categories altogether. It will not compete with the TMC. Uh definitely yes. 12:03 12 minutes, 3 seconds Uh there is a structural shift. Uh that's why such bold steps are being taken. uh face cream demand is not as 12:10 12 minutes, 10 seconds high as it used to be but with these new offerings I'm sure uh overall we are going to gain 12:21 12 minutes, 21 seconds sure this is helpful and lastly if you can throw some comment on your winter loading now and how you think the winter is shaping up. Thank you. 12:30 12 minutes, 30 seconds Winter has set in uh exceedingly well uh across particularly the northeastern and also the western central side. So the 12:39 12 minutes, 39 seconds loading has been of course more than expectation because we could not load in the month of September but uh October has been an excellent start and this 12:47 12 minutes, 47 seconds year we are expecting uh good winters so we are well prepared and geared for that. 12:57 12 minutes, 57 seconds Sure sir. Thank you. Thanks a lot. and all the very best. 13:02 13 minutes, 2 seconds Thank you participants to ask a question you may press star and one. The next question is from the line of Harit Kapoor from Invest. Please go ahead. 13:14 13 minutes, 14 seconds Yeah. Hi, good evening. Uh so uh my first question was on you know the H2. 13:19 13 minutes, 19 seconds So if you look at quarter three uh you have a couple of uh uh you know elements which affected you in quarter two almost 13:26 13 minutes, 26 seconds entirely coming back which is the minus4 on the VST impacted portfolio and another minus4 on the winter loading. 13:34 13 minutes, 34 seconds Just wanted to get your sense about uh you know do we see this kind of strong doubledigit growth number because of 13:41 13 minutes, 41 seconds some of these uh impacts in Q2 straight away uh or you know coming in Q3 itself that's the first question. 13:49 13 minutes, 49 seconds And just a uh um an addition to that is uh in this uh uh year minus 10 number 13:56 13 minutes, 56 seconds for the consolidated uh revenue uh how much would have been the volume decline. 14:02 14 minutes, 2 seconds So that's my first question. 14:06 14 minutes, 6 seconds So Arit definitely we see in the second quarter we lost significantly for our summer portfolio also which I mentioned this 14:15 14 minutes, 15 seconds was roughly around four four and a half%. Okay. Uh and uh almost 44.5% was 14:23 14 minutes, 23 seconds because of we could not load the winter products. Okay. That uh what we have lost in the summer of course can't be 14:29 14 minutes, 29 seconds made up in this quarters but uh the winter loading has as I said has uh we 14:36 14 minutes, 36 seconds have tried to do as much as possible in the month of October and uh distributors have received it quite well. So I am 14:45 14 minutes, 45 seconds very confident that uh the third quarter will definitely we will see a better results much better than uh what we have 14:54 14 minutes, 54 seconds seen in the past but I'm definitely expecting close to double digit uh but definitely high single digits is uh 100% on the cards. 15:05 15 minutes, 5 seconds Got it. Got it. Got it. And and on the volume growth what would be volume decline? What would be that number broadly? uh or if you can just tell me the pricing impact in the total revenue 15:13 15 minutes, 13 seconds either way total total volume decline in the domestic business was roughly around 16%. 15:20 15 minutes, 20 seconds Got it. 15:22 15 minutes, 22 seconds This was a this was Harita one of quarter. Okay. 15:26 15 minutes, 26 seconds Yes, of course. It should not uh it should not be because there are multiple reasons. I'm very sure we we're going to bounce back in the second half 15:34 15 minutes, 34 seconds other than the summer portfolio that everyone has lost. 15:38 15 minutes, 38 seconds Got it. Got it. Uh the second thing was on the strategic investments. So sorry I can't hear you. I can't hear you. 15:46 15 minutes, 46 seconds Yeah. Can you hear me now? Is this better? Yeah. Yeah. Yeah. 15:49 15 minutes, 49 seconds Yeah. Uh the second thing was on the strategic investments portfolio. Uh you it's been a strong growth uh recovery in 15:57 15 minutes, 57 seconds this portfolio. Just wanted to get a sense of quarteron quarter also. Have you seen uh this improvement? Is it driven by a little bit of a low base 16:05 16 minutes, 5 seconds also which would have uh you know benefited and if yes this uh on ground improvement I mean you know what's 16:12 16 minutes, 12 seconds really driven it I I remember at the last quarter you all were speaking about uh significant competitive intensity 16:18 16 minutes, 18 seconds discounting etc. Uh so uh if you can just break that down into you know what are the green shoots you are seeing there. 16:27 16 minutes, 27 seconds Gira is here uh Gira if you can throw the light on the strategic investments. 16:33 16 minutes, 33 seconds Yeah. Hi. Uh you know uh uh answering your first part of your question which is from a sequential basis. Uh I 16:42 16 minutes, 42 seconds sequentially we've seen the highest growth and the highest sales in the last six quarters and we see that momentum 16:51 16 minutes, 51 seconds accelerating in the upcoming quarter which is the quarter. So that is as far as uh you know the growth trajectory of 16:59 16 minutes, 59 seconds uh the strategic investments is concerned. Uh in the second half we expect the business to grow at even a 17:07 17 minutes, 7 seconds higher rate than the first half strong double digit. Uh on what's led to this growth? Uh fundamentally there are a 17:15 17 minutes, 15 seconds couple of things that led to this growth. One part is that we have uh increased our investments behind both 17:22 17 minutes, 22 seconds the brands which is Belair and DMC. So with new communication uh we have a new influencer flywheel 17:31 17 minutes, 31 seconds which is kind of taking effect at this point in time. Uh some of the channel gains uh which are notable as far as 17:39 17 minutes, 39 seconds this quarter are concerned is uh quick commerce, modern trade as well as our own uh D2C websites have delivered 17:48 17 minutes, 48 seconds strong growth. Uh the marketplaces have also delivered strong growth. it could have delivered even better but for the 17:56 17 minutes, 56 seconds GSC disruption uh which moan you mentioned especially in one of the large players who could not in you know take 18:04 18 minutes, 4 seconds stocks into their warehouses because their warehouses are totally choked. So all in all I think uh across uh product 18:12 18 minutes, 12 seconds categories and channels I think we have seen except for a couple of channels we are seeing very remarkable growth and we 18:20 18 minutes, 20 seconds expect this momentum to accelerate in the second quart in the second half. 18:27 18 minutes, 27 seconds Got it. And lastly uh you know from a uh you know low unit pack perspective where you probably would have taken gramage 18:35 18 minutes, 35 seconds increases rather than than price cuts is is that material part of the portfolio if yes how much uh and in which 18:43 18 minutes, 43 seconds categories would this be in this is across the category right in as 18:50 18 minutes, 50 seconds I said almost 90% of our portfolio there was a change in the GST rates so in every small SKU we have increased the 18:59 18 minutes, 59 seconds gramage and the contribution would about 20% or okay 20% 19:07 19 minutes, 7 seconds got I I'll come back for more questions thank you thank you thank you the next question is from the 19:16 19 minutes, 16 seconds line of Ara Mitra from Goldman Sachs please go ahead yeah hi Moanji uh you have mentioned about the winter loading getting 19:24 19 minutes, 24 seconds recovered in 3Q but what about the GST impacted portfolio where there was also detos also you feel likely to recover or 19:32 19 minutes, 32 seconds that may take some more time for the pipelines to come back there uh we have seen a good uh recovery in 19:41 19 minutes, 41 seconds October okay and uh even the first 10 days of November so if the trend continues like this I hopefully see to 19:50 19 minutes, 50 seconds get fully recovered in the Q3 if it flows on then uh I'm sure second of uh uh we are going to fully recover. 20:01 20 minutes, 1 second Got it. Got it. Uh Moj winter has started with a good note. I'm very happy with that. 20:09 20 minutes, 9 seconds So Moji my second question is actually related to that. So if you look at like you'll recover posing, you'll recover part of the pipeline. The winter's good 20:18 20 minutes, 18 seconds and you've also put in these initiatives on caseing. Um so should we not very confidently see double digit growth in third quarter? I'm just trying to 20:26 20 minutes, 26 seconds understand is there any other concern why uh you said that we could get to high single digit or but not surely into double digit just wanted to understand 20:34 20 minutes, 34 seconds how you're thinking of the overall growth in the third quarter and second half overall I'm just being a little conservative 20:42 20 minutes, 42 seconds uh because winter as I said has started with a very fine note but uh it's yet to we getting to the winter season okay but 20:50 20 minutes, 50 seconds uh you are right um I'm confident of double digits uh Not that I'm not uh if the winter goes on like this then 20:59 20 minutes, 59 seconds nothing can stop for double digit for sure. 21:03 21 minutes, 3 seconds Uh got it. And my last question was on the GST cut wherever you've seen a GST cut price reduction any category where you feel fundamentally it can help 21:12 21 minutes, 12 seconds growth improve uh uh in terms of unorganized organized or actual elasticity of demand. 21:20 21 minutes, 20 seconds I am sure it it should uh work across categories you know uh whether it is the bombs whether it is you know oils see in 21:29 21 minutes, 29 seconds in in overall we have seen almost in only in imami domestic business the reduction on MRP is roughly 260 crores 21:38 21 minutes, 38 seconds you know that benefit is going to go to the consumers you know so uh it should definitely help now where it helps how 21:46 21 minutes, 46 seconds much it helps is very difficult for me to say but uh things should start improving soon. 21:56 21 minutes, 56 seconds Got it. And my last question was on margins. Of course, this quarter you were impacted because of operating dele. 22:02 22 minutes, 2 seconds Now going ahead, if you could just help us understand on gross margins, how is the input cost scenario and uh how should we think of second half margins 22:10 22 minutes, 10 seconds year based on uh you know input costs as well as growth that you think you could deliver. 22:17 22 minutes, 17 seconds So input side there is absolutely no pressure. Uh it's well under control and uh margins are definitely going to 22:26 22 minutes, 26 seconds improve. As I said the Q2 is an uh you know we can write off it's not the best 22:33 22 minutes, 33 seconds uh uh Q2 to u you can remove that but I'm sure uh 22:41 22 minutes, 41 seconds there would be expansion in margin there would be a high growth in our beta margins and net margins in Q3 22:50 22 minutes, 50 seconds other than the summer we are going to recover everything in in this quarter Got it. Got it. Uh, thanks. That's it from my side. All the best. 23:03 23 minutes, 3 seconds Thank you. Participants who wishes to ask a question may please press star and one. The next question is from the line 23:10 23 minutes, 10 seconds of the sha from Ainda Spark institutional equities. Please go ahead. 23:16 23 minutes, 16 seconds Uh, hi. Hi Moj. Thanks for the opportunity. uh only I joined a bit late so apologies if uh this has been explained or answered before but uh any 23:25 23 minutes, 25 seconds distribution expansion or distribution reform uh if any uh are we are we undertaking as we speak. 23:33 23 minutes, 33 seconds Yeah Manish is going to answer. 23:37 23 minutes, 37 seconds Hi this is Manish here. So I think we have explained in the last few quarter calls as well that uh from a 23:44 23 minutes, 44 seconds distribution perspective the modern trade and ecom and QC channels continue to be the focus area 23:51 23 minutes, 51 seconds because that's where the behavioral shift in consumers is happening. We are already onto that bandwagon and as the results are also sharing from time to 24:00 24 minutes time we are experiencing nice steady growths in these channels. These are the channels where the young consumer shops today and we are very conscious of that 24:09 24 minutes, 9 seconds and significant investments both in terms of effort and people are continuously uh happening there on the 24:16 24 minutes, 16 seconds traditional channels. We are a strong system. We have a strong network. We continue to maintain our presence. I mean all our numbers in terms of 24:24 24 minutes, 24 seconds presence, distributions and all that stuff continue to hold very strongly and we continue to invest uh that on ground 24:32 24 minutes, 32 seconds our uh presence of the products is expanding uh in line with the category growths. 24:39 24 minutes, 39 seconds Got it. And what would be our current salency from quick commerce? 24:45 24 minutes, 45 seconds It's about 40% of the e-com and sorry then ecom will be how much and how much would be empty 24:53 24 minutes, 53 seconds about 11 each for the I'm talking about the domestic uh consumer business got it and second pertaining to 25:02 25 minutes, 2 seconds distribution uh we have always seen in past that uh we start winter uh on a good note but then uh volatility or 25:11 25 minutes, 11 seconds delayed winter has been a very regular feature of late. So are we ready to capture let's say if if winter has to be volatile or delayed are we ready to kind of capture it in fourth quarter as well? 25:23 25 minutes, 23 seconds Yeah. Yeah. See if you see last year we I think we had a fantastic winter. We are hoping and this year winter has set in by our own internal estimates the 25:33 25 minutes, 33 seconds winter in north for example is almost about 2 weeks earlier. So we should be capitalizing it. We as Mongji explained earlier we are already witnessing the 25:41 25 minutes, 41 seconds trade buoyancy around it and we are well prepared because uh even in Q4 these days winter extends a bit so it's not 25:48 25 minutes, 48 seconds about just Q3 it's also about playing well in Q4. 25:53 25 minutes, 53 seconds Got it. Got it. And last one uh Moji you spoke about the changes that we have done in caseing. Just wanted to know 26:00 26 minutes what consumer insights we would have got because uh of late if if if we see last five seven or 10 years also there was a 26:09 26 minutes, 9 seconds phase when Ayurveda was thick of things then we moved to naturals and then suddenly now off it is more efficacy 26:17 26 minutes, 17 seconds science-based products. So when I look at brand like case king uh my expectation as a consumer would be 26:24 26 minutes, 24 seconds around Ayurveda largely on naturals. So when we kind of move to science-based is it like kind of shifting the core of the 26:32 26 minutes, 32 seconds brand or is it like uh it's very much your survey or your insight say that it is very much acceptable for the brand's core as well. 26:41 26 minutes, 41 seconds uh this this was very important uh move because Keshking faced uh significantly challenge from the D2C brands uh particularly for airfall categories. 26:51 26 minutes, 51 seconds Okay. And most of the D2C brands are uh sciencebacked. So that is the need of the young consumers. Uh that is where 27:00 27 minutes the trend is going and consumers keep on trying these D2C brands as far as the hairful category is concerned. So after 27:07 27 minutes, 7 seconds doing all this research for the last 9 10 months we found that you know Ayurveda is of course there we are not uh getting away with Ayurveda but if you 27:16 27 minutes, 16 seconds back up with Ayurveda and science it will make a significantly difference in the long run. So that was the take call 27:23 27 minutes, 23 seconds we took and uh and marketers accepted it. I think uh even the packaging or the ingredient story advertising we are 27:31 27 minutes, 31 seconds going to start very soon. So I'm very confident that you know the all the 360 plan we have for Kishk 27:38 27 minutes, 38 seconds uh should work and even on the efficacy that is that has been proven let's say if as a consumer I will vouch for it and I'll 27:47 27 minutes, 47 seconds recommend to others as well every product is uh you know clinically tested every product any claims we make 27:55 27 minutes, 55 seconds is clinically proven okay very clear thanks and all the best for and got us. 28:04 28 minutes, 4 seconds Thank you. The next question is from the line of Kunal VA from BNP Pariba. Please go ahead. 28:10 28 minutes, 10 seconds Yeah, thanks. Uh I think you mentioned uh but can you clarify what proportion of portfolio have you increased gage or MLH and what proportion you have lowered 28:19 28 minutes, 19 seconds MRP 20% is increased gage and balance is all reduced MR. 28:28 28 minutes, 28 seconds Okay. And what is the consideres are all gram increase? Okay. So 20% comes from fes is it? 28:35 28 minutes, 35 seconds Faches. Yeah. Absolutely. Absolutely. Okay. 28:38 28 minutes, 38 seconds And in case of sachets uh you like say in response to like say higher emerge 28:47 28 minutes, 47 seconds would you or is there a risk that that numbers of units goes down a little bit? 28:54 28 minutes, 54 seconds Sorry kal I missed in between. Yeah. I mean like say now you will have more ml in the sache. So would the number of 29:01 29 minutes, 1 second units which you sell would that go down a bit or that should not have any impact? 29:07 29 minutes, 7 seconds I don't think that should have any impact. 29:10 29 minutes, 10 seconds Okay. So that all like that completely transfers into yeah navat and all are single use. So you know uh I don't think that will have any significant impact. Yeah. 29:22 29 minutes, 22 seconds Okay. And wherever you have lowered prices, what kind of elasticity do you expect? Uh how do how do consumers 29:28 29 minutes, 28 seconds respond to the lower prices in your view? 29:33 29 minutes, 33 seconds So still uh there are mixed bag in the marketplace. So old stock is already there. Some of the old stock is there which is of course now getting 29:41 29 minutes, 41 seconds liquidated. Once you know completely the new MRP stocks uh goes uh in the entire GT and the rural markets we will uh we 29:50 29 minutes, 50 seconds are very hopeful you know as I said man just in our portfolio domestic business you know the MRP reduction is almost 250 29:56 29 minutes, 56 seconds crores which is quite significant you know uh as far as consumers are concerned. So let us see we will have to 30:05 30 minutes, 5 seconds wait and watch you know where the consumer spends actually goes uh wherever they save money. uh but uh 30:14 30 minutes, 14 seconds just wait for one more quarter and see okay but in like say in next two three quarters or like say four quarters if you don't see the consumers responding 30:22 30 minutes, 22 seconds to lower prices in terms of higher volumes would you look at uh rolling back or like say at least uh take the 30:29 30 minutes, 29 seconds prices back higher slightly that we can't decide right now it's just we have just reduced our prices 30:37 30 minutes, 37 seconds understood understood and lastly your early thoughts on FY27 seven says I mean I understand second half should be strong but do you expect the benefits of 30:45 30 minutes, 45 seconds GST rate cut to continue going forward like any early thoughts on how FY27 should look like 30:52 30 minutes, 52 seconds yeah yeah 100% why as I said why the consumers would not spend more on our categories new consumers should definitely come in from unorganized you 31:01 31 minutes, 1 second know uh we have strengthened all our pillars uh of course we are going to start next year with a lower base of summer also because we lost 31:08 31 minutes, 8 seconds significantly in the summer portfolio So, so FYI 27 should definitely be much better than FYI 26. There's no doubt in it. 31:17 31 minutes, 17 seconds Okay. Okay. That's it for me. Thank you, sir. Thank you. 31:22 31 minutes, 22 seconds Thank you. Participants who wishes to ask a question may press star and one. 31:33 31 minutes, 33 seconds Anyone who wishes to ask a question may press star and one now. 31:47 31 minutes, 47 seconds Ladies and gentlemen to ask a question please press star and one. 31:56 31 minutes, 56 seconds Anything Vive you want to share on international business? There are no questions. Vive is here. Yeah just 32:03 32 minutes, 3 seconds hello good evening everyone. uh international business uh we had seen I think uh modest growth almost everywhere 32:11 32 minutes, 11 seconds certain markets scandreies are even higher than uh what we have recorded in the primary sale primary sale is around 8%. But certain markets have started 32:21 32 minutes, 21 seconds improving for us and uh we hope to have better improvements in coming quarters in most of the geographies and uh many 32:30 32 minutes, 30 seconds new NPDs are happening uh which should also see light of the day which will build the future portfolio in the international markets for us. 32:38 32 minutes, 38 seconds Uh Nepal did almost 100% despite the disturbances we had growth of more than 100%. 32:48 32 minutes, 48 seconds Thank you. The next question is from the line of Akasha from UTI Mutual Fund. Please go ahead. 32:54 32 minutes, 54 seconds Um um yeah, my question was uh on the international business uh specifically. 33:01 33 minutes, 1 second So uh sir, if you can uh broadly uh uh help us understand how the growth has 33:09 33 minutes, 9 seconds been in SARC, Mina region and CIS, a broad range would also help. 33:15 33 minutes, 15 seconds Mhm. Sarkc has done exceedingly well for us. Sarkc markets including Bangladesh. 33:20 33 minutes, 20 seconds We had delivered over 22% growth over there. So GCC and Mina markets have been 33:28 33 minutes, 28 seconds flattish for us. Uh primarily because of one major market Egypt where we couldn't do much but rest of the markets have 33:36 33 minutes, 36 seconds also shown decent growth in the marketplace. So you're facing issue in one or two markets Egypt and Bahin uh 33:44 33 minutes, 44 seconds which we try to address and things should be better soon in those markets. 33:53 33 minutes, 53 seconds So the entire growth in international market has been across markets mostly. 34:00 34 minutes Okay. Okay. Okay. Um sure. And uh 34:08 34 minutes, 8 seconds uh sorry uh and and just last bit on uh the domestic uh uh I mean uh smart and 34:15 34 minutes, 15 seconds handsome range basically uh with with this uh uh foray into new categories. 34:23 34 minutes, 23 seconds uh uh so broadly I mean uh how is the 34:27 34 minutes, 27 seconds initial uh feedback any uh any uh any uh 34:35 34 minutes, 35 seconds feedback or I mean any uh initial signs that you have uh received from the market 34:42 34 minutes, 42 seconds this is mostly on a test marketing stage right now we have just launched it in one platform to see what is the response 34:50 34 minutes, 50 seconds like and uh it's Just about last month we launched it in a platform. Let us see. Uh we'll have to wait. Uh uh we are 34:58 34 minutes, 58 seconds going to roll it out of course in other uh ecom sites and uh and MT. It is yet to be done but uh we are very optimistic. 35:10 35 minutes, 10 seconds Okay. Sure. Thank you. 35:13 35 minutes, 13 seconds Thank you. Participants to ask a question please press star and one. 35:22 35 minutes, 22 seconds Gul Gul ma'am Gul Raj is also here uh he's the CEO of the healthcare division Gul can you throw some light on the 35:30 35 minutes, 30 seconds healthcare so yes Mr. Thank you so uh I think as 35:38 35 minutes, 38 seconds Mr. So Moji mentioned at the start of the call that uh from an HD perspective we had good uh growth can't hear you very clearly. 35:49 35 minutes, 49 seconds Yeah. So uh so we uh is it better now sir? Yeah go ahead. Go ahead. 35:56 35 minutes, 56 seconds Yeah. So uh in the last quarter we had good growths coming in from the medical 36:04 36 minutes, 4 seconds business which is the uh business catering to the ayurdic doctors and other doctor segments. So we grew by 36:12 36 minutes, 12 seconds around 8% there. And then we also did well in some focus brands like cough syrups, honey and even our D2C site 36:20 36 minutes, 20 seconds Gendare had uh uh reasonably good growth considering the challenges faced across 36:27 36 minutes, 27 seconds businesses on the GST reductions etc. So so we are fairly boyish uh buoyant about uh bullish about how the current quarter 36:36 36 minutes, 36 seconds will go. We have taken initiatives to uh scale up our business in some of the focus categories which would be in the 36:45 36 minutes, 45 seconds chantra range. It would be continued focus on some of the uh growth driver 36:52 36 minutes, 52 seconds categories such as cough syrup such as uh supplements such as some of our D2C new launches and uh even in the OTC 37:01 37 minutes, 1 second business we would do a better performance in quarter 3. Um at the same 37:07 37 minutes, 7 seconds time across most of the categories uh we are looking at growing our market shares 37:14 37 minutes, 14 seconds uh compared to the other players across categories and we are taking many initiatives to even expand our coverage among doctors and among retailers. 37:28 37 minutes, 28 seconds Thank you. 37:31 37 minutes, 31 seconds Thank you. Participants to ask a question may press star and one. 37:58 37 minutes, 58 seconds Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments. 38:07 38 minutes, 7 seconds So, thank you everyone for joining us in our quarter 2 earnings call. Thank you. Thank you Percy for organizing this. 38:14 38 minutes, 14 seconds Thank you. Have a good day. Thank you so much. Thank you. 38:19 38 minutes, 19 seconds Thank you. On behalf of Capital Services Limited, that concludes this conference. 38:25 38 minutes, 25 seconds Thank you for joining us. And you may now disconnect the lines.