Marico Ltd — Q4 FY26

Marico Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=VZKobm6nsEQ Published: 8 days ago

0:02 2 seconds Ladies and gentlemen, good and welcome to the Marico Limiteds Q4 FI26 earnings 0:09 9 seconds conference call. We have with us today the senior management team of Merico Limited, Mrs. Aata Gupta, MT and CEO and 0:18 18 seconds Mr. Pavanagwal Group CFO and CEO international business. 0:24 24 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:34 34 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:44 44 seconds Before we get started, I would like to remind you that the Q&A session is only for the institutional investors and 0:51 51 seconds analyst. And therefore, if if there is anybody else who is not an institutional investor or analyst but would like to 0:59 59 seconds ask questions, please directly reach out to the American team. I now hand the conference over to 1:07 1 minute, 7 seconds Mr. Sata Gupta. Thank you and over to you, sir. 1:11 1 minute, 11 seconds Yeah. Hi everyone. Uh and good evening to all those who have joined the call. 1:16 1 minute, 16 seconds Uh with FY26 having concluded, I will begin with a brief overview of the operating environment after which I will 1:23 1 minute, 23 seconds take you through our performance and strategic priorities going forward. 1:28 1 minute, 28 seconds During the quarter, demand sentiment remained broadly stable, supported by benign inflation, improving rural sentiment, and favorable policy 1:36 1 minute, 36 seconds stimulus. These are further aided by the enhanced affordability following the GST rate rationalization implemented during 1:43 1 minute, 43 seconds the financial year. We are optimistic of a gradual improvement in consumption trends in the quarters ahead supported 1:50 1 minute, 50 seconds by these factors. However, the onsent onset and progression of monsoon as as well as the inflationary impact of the 1:58 1 minute, 58 seconds westian crisis will remain a key monitorable. I will now move to our performance. 2:06 2 minutes, 6 seconds FI26 marked a year of strong execution in a tough and operating environment. 2:12 2 minutes, 12 seconds Volume growth in India business, international business constant currency growth and consolidated revenue of 2:19 2 minutes, 19 seconds Marico reached multi-year highs. The India business continued improving volume growth trajectory during the quarter. oftakes remain robust with more 2:27 2 minutes, 27 seconds than 95% of the portfolio gaining or sustaining market share and over 90% maintaining or improving penetration on 2:34 2 minutes, 34 seconds a mad basis. Investments under project SEU are yielding visible results particularly in rural reach and 2:41 2 minutes, 41 seconds execution quality supporting the revival and sustained growth of general trade this year. In parallel, alternate channels, including organized retail, 2:50 2 minutes, 50 seconds e-commerce, and pickcommerce, continue to scale strongly, driving differential growth in urban and premium portfolios. 2:57 2 minutes, 57 seconds Delving deep into our key categories, Parachute continued to demonstrate strong resilience during the quarter and delivered low singledigit volume growth after adjusting for MLH adjustments. 3:08 3 minutes, 8 seconds With COPRA prices having corrected to about 35% from peak levels and expected to remain ragebound from here on, we 3:16 3 minutes, 16 seconds have passed on the benefits to consumers to some selective pricing actions. As pricing stabilizes, we expect the recovery in consumption with a pick up 3:25 3 minutes, 25 seconds in volume growth which will be evidently visible from Q1 FY27 itself. Our strengthened distribution and robust 3:33 3 minutes, 33 seconds backend and supply chain capabilities position us well as compared to the smaller players in current situation. 3:39 3 minutes, 39 seconds While the brand has continued to strengthen its leadership position during the year. Valuated hair oils delivered robust growth in this quarter 3:47 3 minutes, 47 seconds led by volume growth in the low 20s and meaningful market share gains. The portfolio grew 20% this year backed by 3:54 3 minutes, 54 seconds strong momentum in the mid and premium segments which is a nonshanti portfolio. 3:59 3 minutes, 59 seconds These high margin segments have delivered close to doubledigit volume growth on a two-year CAGGR basis. We 4:07 4 minutes, 7 seconds have also entered the ammon oil category under the hair and care franchise and had made and we have made considerable 4:14 4 minutes, 14 seconds indo inroads in modern trade already. We expect VAO to sustain its double-digit volume growth trajectory supported by a 4:22 4 minutes, 22 seconds focused innovation pipeline, improved availability following GST rationalization and distribution expansion under project stability. So 4:31 4 minutes, 31 seconds follow edible oils delivered steady performance in an elevated pricing environment. As we enter FY27, we expect stable growth while maintaining our 4:39 4 minutes, 39 seconds focus on the threshold levels of profitability. We will remain disciplined in passing on necessary input cost movements through calibrated 4:47 4 minutes, 47 seconds pricing actions while continuing to drive premiumization and pushing for higher growth in cold press oils, Safola 4:54 4 minutes, 54 seconds gold and total variance. Food transition to a mid-team growth on the back of double digit growth in core safola foods in Q4. The food's portfolio exited the 5:03 5 minutes, 3 seconds year at 1,000 plus cr in revenue. We now have a wholesome plain foods with our portfolio spanning from mainstream health and wellness with safola clean 5:12 5 minutes, 12 seconds label and modern breakfast and snacking with true elements premium gourmet snacking with 4700 BC and functional 5:19 5 minutes, 19 seconds nutrition with cosmics and clicks. You must note that this growth is being delivered alongside a significant improvement in profitability. Our focus 5:28 5 minutes, 28 seconds remains on building fewer, bigger and more profitable plays while driving category development through innovation and strong execution. In premier 5:36 5 minutes, 36 seconds personal care, we continue to scale with a clear focus on profitable growth. The portfolio comprising serums, male grooming and skincare exited the year at 5:44 5 minutes, 44 seconds an ARR of INR 350 plus crores. The digital first portfolio of premium personal care exited FY26 at 1100 crores 5:54 5 minutes, 54 seconds plus ARR. The scale up of this portfolio being accompanied by a structural improvement in profitability as we aim 6:01 6 minutes, 1 second to exit FI27 at a double-digit EITA margins and eventually teams AITA margins in FY30. 6:08 6 minutes, 8 seconds Beardo and clicks remain on accelerated growth trajectories improving profitability. Our digital transformation continues to accelerate 6:16 6 minutes, 16 seconds with 55% of Marore core spends advertising spends now directed towards digital media. Of course 100% of the 6:25 6 minutes, 25 seconds digital I mean it's 100% spends in the digital brands. Consequently the combined revenue share of foods and premium personal care including digital 6:34 6 minutes, 34 seconds first brands in the India business moved up to 23% this year despite the sharp pricing growth in the core portfolio. We 6:42 6 minutes, 42 seconds expect the share of these new businesses to expand to about 27% which was earlier target to reach 25% in FY27 and aspire 6:50 6 minutes, 50 seconds to move about onethird of our business by FY30. Moving to international business, we delivered robust growth this year supported by broad-based 6:58 6 minutes, 58 seconds performance across markets and portfolio diversification. Bangladesh maintained its strong momentum while Vietnam, South Africa and the 7:07 7 minutes, 7 seconds export markets continued scaling up as CER growth engines strengthened resilience of the portfolio. In Mina, performance in the Gulf region during 7:15 7 minutes, 15 seconds the quarter was impacted by nearsertter term supply side constraints in March while Egypt continued to deliver strong growth. We'll continue to monitor the 7:24 7 minutes, 24 seconds impact on sales in some markets of the Middle East which contributes as in the Middle East region to only 4% of our total turnover. But we see no immediate 7:31 7 minutes, 31 seconds major concern. We also making steady progress in premiumizing our portfolio across markets driven by expansion into beauty and personal care categories and 7:40 7 minutes, 40 seconds supported by innovation. This is expected to drive both differential growth and margin expansion over the medium term. 7:47 7 minutes, 47 seconds Sir, our ongoing diversification and premiumization effort across India 7:56 7 minutes, 56 seconds and international m business markets are already reshaping our growth construct in a meaningful way. By FY30, we expect 8:04 8 minutes, 4 seconds to have substantially transformed the portfolio resulting in lowering the share of commodity linked businesses from more than 70% to 50% over a decade. 8:17 8 minutes, 17 seconds To sum up, we have delivered our on our aspirations across key performance parameters while navigating a highly 8:24 8 minutes, 24 seconds volatile input cost environment and strengthen the underlying growth drivers of the business. More notably, we have de delivered double-digit profit growth 8:33 8 minutes, 33 seconds despite facing unprecedented inflation and key inputs. This performance reflects the resilience and pricing power of our core categories, profitable 8:42 8 minutes, 42 seconds scale up of our new businesses and the strength of our operating model anchored in supply chain agility, cost discipline and the result of ramping up of 8:49 8 minutes, 49 seconds investments in future ready capabilities. 8:53 8 minutes, 53 seconds Despite ongoing geopolitical tensions, we have maintained strong supply chain assurance through strategic positioning across raw materials, packaging 9:01 9 minutes, 1 second materials and finished goods and do not see foresee any material disruption in the near term. Further, we believe that 9:08 9 minutes, 8 seconds our supply chain and backend advantages will act as a competitive advantage over smaller players and drive superior 9:16 9 minutes, 16 seconds volume growth and market share gains from these players. During the next few quarters, we remain focused on consistently driving competitive top 9:23 9 minutes, 23 seconds quartile outcomes in the near term. We expect to sustain high singledigit volume growth in the India business in FY27. The international businesses 9:32 9 minutes, 32 seconds expect to maintain strong momentum and mid constant currency growth driven by broad-based performance across markets. 9:39 9 minutes, 39 seconds At a consolidated level, we aim to deliver double-digit revenue growth across 15,000 crores in revenues in high teen and high teen abita growth subject 9:47 9 minutes, 47 seconds to stable macros. On the cost front, we are witnessing divergence in input trends while copra prices have corrected meaningfully declining by approximately 9:56 9 minutes, 56 seconds 35% from peak levels. Vegetable oils and other crude linked inputs continue to exhibit an upward bias driven by ongoing 10:05 10 minutes, 5 seconds geopolitical tensions in the Middle East. While we benefit from tailwinds in COPRA, we will mitigate cost pressures through calibrated pricing actions and 10:13 10 minutes, 13 seconds cost management initiatives. So far, the weighted average input cost increase next year is therefore extremely marginally. We have already implemented 10:21 10 minutes, 21 seconds price hikes will neutralize the impact over the medium-term. Our strategy remains anchored in driving profitable growth through expansion of the total 10:28 10 minutes, 28 seconds addressable market. sharper portfolio choices, accelerated premiumization, and continued investments in digital media 10:35 10 minutes, 35 seconds analytics, automation, and AI capabilities. This calibrated yet ambitious approach to growth underpinned by strong execution capabilities and 10:44 10 minutes, 44 seconds disciplined capital allocation gives us the confidence in our ability to deliver consistent, sustainable and profitable growth over the medium term. We will aim 10:53 10 minutes, 53 seconds to maintain our current track record of top quartile volume growth in India and team's constant currency growth in international business. At a 11:01 11 minutes, 1 second consolidated level, we will aim to sustain doubledigit revenue growth to comfortably cross 20,000 crores in 11:09 11 minutes, 9 seconds revenues and aspire for mid- teeneta growth by FY30. Our growth trajectory reflects both ambition and execution. 11:17 11 minutes, 17 seconds Scaling from 10,000 crores to 15,000 crores in just two years and adding another 5,000 cr plus by FY30. With a 11:25 11 minutes, 25 seconds transformed portfolio as we continue to build fewer, bigger, bolder and faster plays, a resilient operating model and a 11:32 11 minutes, 32 seconds disciplined capital allocation, we believe we are well positioned to deliver this sustained profitable growth at scale as we path cross our journey 11:41 11 minutes, 41 seconds into 2030. With that I conclude my remarks. Thank you and we can now take some questions. 11:49 11 minutes, 49 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 11:57 11 minutes, 57 seconds star and then one on the touchstone telephone. 12:01 12 minutes, 1 second If you wish to remove yourself from the question queue, you may press star and then two. Participant, you are requested to use handsets while asking a question. 12:12 12 minutes, 12 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 12:20 12 minutes, 20 seconds A reminder to all the participants. You may press star and then one to ask a question. 12:30 12 minutes, 30 seconds We have the first question from the line of Abnish Roy from Noama Wealth. Please go ahead. Yeah, congrats. I have three questions. 12:38 12 minutes, 38 seconds Uh first is on international business. 12:40 12 minutes, 40 seconds uh two sub parts to it. Uh one is Bangladesh uh there is a sharp acceleration of sales growth to 35% 12:48 12 minutes, 48 seconds versus fullear growth of 25%. So any oneoff here uh was there some delayed pricing which is benefiting now or was 12:56 12 minutes, 56 seconds it a soft base and given now uh in FI27 entire year a democratically elected 13:03 13 minutes, 3 seconds government is there versus a very fragile government in most part of FI26 in Bangladesh. uh what will be the 13:10 13 minutes, 10 seconds outlook? Uh second uh sub part to the international piece is uh Mina obviously in March month was challenging for all 13:17 13 minutes, 17 seconds FMCG companies which were uh having business there. In April month uh are there alternate uh channels from which 13:25 13 minutes, 25 seconds maybe the business has seen some improvement. So if you could update on April, I understand March there was a sharp decline or maybe no business for most uh companies. How has April been? 13:37 13 minutes, 37 seconds So I think coming to Bangladesh uh we have been extremely steady. Now sometimes uh you know there are 13:45 13 minutes, 45 seconds quarterly uh this one and obviously there are some pricing which has been taken into account but I think overall as I said I think as long as we continue 13:53 13 minutes, 53 seconds to deliver you know obviously Bangladesh has been a critical component and has continue to remain resilient and 14:01 14 minutes, 1 second therefore annualize double digit growth we are happy. uh we believe that uh we have been resilient in Bangladesh and uh 14:10 14 minutes, 10 seconds continue to diversify and deliver consistent growth in Bangladesh and we 14:17 14 minutes, 17 seconds are uh actually we'll continue to invest behind brands diversify and uh we are 14:26 14 minutes, 26 seconds you know pretty confident about delivering this number uh coming to Mina March obviously There were issues on 14:34 14 minutes, 34 seconds shipment. There was some visibility. See there's a difference between impact on offtake and uh impact on the primary 14:43 14 minutes, 43 seconds sale because primary sale is a function of some of the shipment. There are alternative routes. We just don't feed Mina from uh India. Some of the stuff 14:51 14 minutes, 51 seconds goes to Egypt. There are alternative routes there. So therefore I think uh what I alluded to in the call is that 14:58 14 minutes, 58 seconds broadly the impact uh I mean is less and we will wait and see how the situation unfolds but I think uh in terms of 15:08 15 minutes, 8 seconds offtake we have no reason to have significant concern. 15:13 15 minutes, 13 seconds Understood. Uh my second question is on some of the recent acquisitions. uh so if you could give us some update on uh 15:20 15 minutes, 20 seconds uh 4700 BC and some of the other ones in India and uh say Vietnam etc. uh what is the initial uh scale up in distribution 15:28 15 minutes, 28 seconds any initial shocks because in M&A generally we see in India especially uh everything looks quite uh uh positive 15:36 15 minutes, 36 seconds initially but uh when actual business comes up in the first year there are few challenges either inventory buildup or 15:42 15 minutes, 42 seconds any other challenge. So any any uh learnings you can share in on any of the recent acquisition? So I think firstly 15:50 15 minutes, 50 seconds uh those challenges happen when there is a 100% sale happens you know uh we now 15:56 15 minutes, 56 seconds have a playbook of ensuring uh how the integration happen how we do the valuation what are the things we look 16:03 16 minutes, 3 seconds into I think it has been a positive start uh we are I think extremely privileged to have most and one of the 16:11 16 minutes, 11 seconds things we do is we we ensure that we partner with fantastic set of founders in all the cases the unique set of brands and therefore it we have had 16:20 16 minutes, 20 seconds positive starts no hiccups like and and I think the one big change that has happened now that we have a house of brands we are seeing the impact of 16:29 16 minutes, 29 seconds synergy at least in the back end which benefits long-term profitability long-term traction or even for example 16:38 16 minutes, 38 seconds if you know that you know like in a brand like a popcorn in 4700 we see a price point tag can be taken over by GT 16:46 16 minutes, 46 seconds we have actually started immediate synergies on modern trade. So it's it started off in a very very very well and 16:53 16 minutes, 53 seconds as I said that we don't acquire or buy stake in places where there is we believe that the business is 17:01 17 minutes, 1 second fundamentally weak or unit economics is not there and I think uh you I mean so so far our success rate on that front has been fairly okay. 17:11 17 minutes, 11 seconds Understood. The last quick question. Uh so I think you are one of the uh unique companies from a FI27 perspective. Uh where key raw material is deflationary. 17:22 17 minutes, 22 seconds I think for most other companies clearly there is a sharp inflation. But if I see your uh raw material construct out of 17:28 17 minutes, 28 seconds four three are quite inflationary. The big one is deflationary. So if you could tell us as a basket how things stand. I do understand things are volatile on 17:37 17 minutes, 37 seconds daily basis but some sense if you can give on as a basket how much is it up now. Second is uh you did say some uh 17:44 17 minutes, 44 seconds corrective action. So is there a uh MRP cut also or is it just uh select uh grammage intervention select promotions 17:53 17 minutes, 53 seconds being uh uh changed etc in in parachute and uh one final uh uh question here so 18:02 18 minutes, 2 seconds can you cross subsidize your inflationary part of the portfolio because the bulk of the portfolio copra is deflationary can you cross subsidize 18:08 18 minutes, 8 seconds your foods and personal care uh by this which can give you market share gains also So I think uh from a pricing perspective 18:17 18 minutes, 17 seconds what we've done is uh since we have seen that copra prices have come down approximately 35% from the peaks. We 18:24 18 minutes, 24 seconds have taken uh you know price cuts in uh non-p price point and small packs to the extent of about 10% or so. We haven't 18:32 18 minutes, 32 seconds really taken any call in terms of increasing the but as of now that's the call that we have taken. Now on your question of cross subsidizing we always 18:40 18 minutes, 40 seconds take a portfolio approach. Of course, we have to keep in mind in terms of what are the expectations from a uh profit delivery standpoint and of course we'll 18:48 18 minutes, 48 seconds keep calibrating uh those calls and take a portfolio approach in terms of when we take the calls on pricing etc. Now 18:56 18 minutes, 56 seconds coming to a margin for next state of course there are a lot of uh moving parts as you rightly said yes uh we have a tailwind in terms of copra prices 19:04 19 minutes, 4 seconds where we have uh you know some gains coming in as compared to from the high base of last year. uh but because the 19:12 19 minutes, 12 seconds crude where it is at this point in time and where it'll move we don't know but still if you look at our guidance what we've given is given is that if 19:19 19 minutes, 19 seconds situations were to normalize we would target to deliver about high teams ada growth which in fact is slightly higher than what we had guided in the previous 19:27 19 minutes, 27 seconds call uh but this definitely uh assumes that situation should normalize soon but if it doesn't really sort of then it's 19:35 19 minutes, 35 seconds difficult to sort of tell where exactly we will be and just to add I think uh to what Pavan said that see normally whenever there is 19:44 19 minutes, 44 seconds parachute deflation this is a I think we now are you know in terms of our overall proactiveness in managing deflation is 19:53 19 minutes, 53 seconds much better but having said that this is a unique year where we believe that given the supply chain constraints and 20:00 20 minutes the other challenges the smaller players will face I think this is advantageous for us so therefore instead of cross subsidizing there is itself we have a 20:09 20 minutes, 9 seconds you know we have a kind of a competitive advantage this year if this you know supply situation and all these constraints continue 20:17 20 minutes, 17 seconds and on the RM basket any sense uh some of the companies have said sorry to interrupt in between I would request you to kindly rejoin the queue again for more questions 20:25 20 minutes, 25 seconds no problem thanks thank you will take the next question 20:34 20 minutes, 34 seconds from the line of Mihir Sha from Namura please go ahead hi sir thank you for taking my question and congrats on a very good performance. 20:42 20 minutes, 42 seconds So thank you. 20:44 20 minutes, 44 seconds Wanted to just understand on your rational behind the upward revision on the EITA guidance. Uh as this is despite the new acquisitions which could have 20:53 20 minutes, 53 seconds some drag on the margins plus the inflation in crude derivatives that we are seeing currently is very sharp. Uh believe in 3Q as per highlighted uh you 21:01 21 minutes, 1 second know you had highlighted about mid- teens and groups and now it's been high teens. So what is uh driving the change in assumptions? Would appreciate you know some uh thoughts on those. 21:12 21 minutes, 12 seconds So I think two things I think uh firstly uh just to uh just to give a perspective two of the three acquisitions uh for 21:20 21 minutes, 20 seconds example Cosmix and uh Skinet are profitable. Uh as you know Skinch is in the mid20s, Cosmix is in the high teens. 21:32 21 minutes, 32 seconds uh so therefore actually these acquisitions and number two of course there's a significant as we talked about in clicks which is a large part of the 21:40 21 minutes, 40 seconds digital business with which is also experiencing an upward trajectory in operating margins okay so uh now coming 21:47 21 minutes, 47 seconds to I think uh this is now we have a firmer view of copra which is now going to be 21:55 21 minutes, 55 seconds rangebound for the rest of the year and we have a stress test version of what crude be of is very difficult to predict 22:03 22 minutes, 3 seconds but our current estimates suggest and obviously we have taken some pricing action in that part of the portfolio where there is an impact in input cost 22:11 22 minutes, 11 seconds which we have taken immediately when this in you know this issue happened in March so therefore and therefore we have 22:19 22 minutes, 19 seconds a firmer view of and therefore this is a best case effort with you given the current situation that this should be around mid- teens and obviously as I 22:27 22 minutes, 27 seconds said that there has been far better also visibility of what the digital business profitability improvement agenda is and 22:36 22 minutes, 36 seconds what we can achieve. And as I said the one more thing which we have done is as now now that we have a um what I call a 22:44 22 minutes, 44 seconds basket of brands or portfolio brands in digital and without synergies coming in I think uh we have been able to realize 22:51 22 minutes, 51 seconds better gains in in terms of you know input cost and procurement and other other cost drivers. Secondly, 23:00 23 minutes I believe that one of the significant competitive advantage or a capability which we have honed over the last four 23:07 23 minutes, 7 seconds years is ability to handle adversity and this started during co we faced Ukraine where there was input cost. We had our 23:15 23 minutes, 15 seconds own unique adversity in terms of 100% increase in copra prices. So we managed these situations far more proactively in 23:22 23 minutes, 22 seconds terms of supply chain assurance and other things. So I think a combination of all that where given the current situation there's a best case visibility 23:31 23 minutes, 31 seconds which suggests that we should be able to deliver a high team when I talked about in Jan obviously those we now have much more firmer data and visibility of that. 23:44 23 minutes, 44 seconds Got it. So thank you that's very clear. 23:46 23 minutes, 46 seconds Uh secondly uh on Safola both the volumes and pricing has seen some improvement on on 23:52 23 minutes, 52 seconds a sequential basis and demon actually in the press not highlighted that there were some pantry stocking up in the early part of March due to the waste 24:00 24 minutes Asia crisis. So wanted to check just one uh the level of pricing that would be required on Safola to maintain margins. 24:08 24 minutes, 8 seconds Uh two any pantry stocking up and and what can be the sustainable volume uh levels for Safola for FI27. 24:19 24 minutes, 19 seconds See I think as I said we have made it clear in Safola we are okay to have a low to mid single digit volume growth subject to a threshold level of margin. 24:27 24 minutes, 27 seconds So wherever there has been an input cost increase we'll pass it on and we have done already. Now coming to the other 24:34 24 minutes, 34 seconds important thing we are doing is uh we are focusing on safola gold total and cold press oils which is the high higher 24:42 24 minutes, 42 seconds margin portfolio and higher realization portfolio. So there is no change and obviously given the volatility there 24:50 24 minutes, 50 seconds could volume and value growth could fluctuate you know and quarter to quarter as long as an annualized that is 24:56 24 minutes, 56 seconds the you know kind of an aspiration understood and just one last clarification on WHO did I hear you 25:04 25 minutes, 4 seconds correctly when you said uh there was 20 plus% volume growth in WHO uh uh and wanted to understand is there any 25:12 25 minutes, 12 seconds NFCsizing or pricing should one expect during uh the uh uh you know first half of FI27 in Wahoo which could 25:20 25 minutes, 20 seconds there would be some pricing yes there would be some pricing yeah pricing so we already have taken about 6 to 7% 25:28 25 minutes, 28 seconds price increase uh in response to whatever increase we have seen in group derivatives uh so yeah so that's the price increase that we've taken 25:37 25 minutes, 37 seconds okay thank you so and with respect to volume growth what you asked for yes in quarter 4 it was 20% plus volume growth uh in in the ma portfolio. 25:47 25 minutes, 47 seconds Got it. Clear. Thanks. Thanks so much, J. Wishing you all the very best. Thank you. 25:54 25 minutes, 54 seconds Thank you. We will take the next question from the line of Abi Maha from Magui. Please go ahead. 26:01 26 minutes, 1 second Yeah. Hi. Uh just wanted to kind of understand you know you pointed about supply chain constraints that are 26:08 26 minutes, 8 seconds present by the smaller players and especially in you know parachute. Could you give us a sense on how is it where are we what are the kind of constraints 26:17 26 minutes, 17 seconds you're facing to better appreciate the competitive advantage that you are kind of alluding to see I think uh it could be as you know 26:25 26 minutes, 25 seconds all polymers packaging material it could be fuel in the factory now we don't have such constraints we have ensured to the best of our ability these things are 26:34 26 minutes, 34 seconds managed and also obviously ability to foresee that you know like for example any smart player would have brought 26:43 26 minutes, 43 seconds clean advance in March early March because this is this issue started off in you know February 27th. Obviously you 26:50 26 minutes, 50 seconds some people had a window of ensuring that you have that supply chain assurance which gives you both you know both the cost advantage and as well as 26:59 26 minutes, 59 seconds supply chain advantage. A smaller players's response times ability to foresee these would be you know you know 27:07 27 minutes, 7 seconds lower and therefore and also what happens when is high inflation they are working capital constraints they are not able to stock and have you know kind of 27:15 27 minutes, 15 seconds a position build up in these so that's the advantage and we have seen this during covid we have seen this highly inflationary times that always that uh 27:24 27 minutes, 24 seconds we so this is a good thing for us because normally in a deflationary en environment they become active. We believe we have 27:32 27 minutes, 32 seconds reasons to believe they're no longer active that much even if there's a deflation in copra because all the other things are neutralize that copra impact 27:40 27 minutes, 40 seconds for them. So solar the advantages that we saw which started in a probably towards the start of the conflict would 27:47 27 minutes, 47 seconds it be fair that you know that uh that competitive landscape is broadly the same it's not kind of changed materially 27:54 27 minutes, 54 seconds from there on despite you know government trying to reduce cooking price availability etc. So it's more it's something that you know should 28:02 28 minutes, 2 seconds sustain or could sustain for some time is a is a right read through uh is that how I so it depends it depends obviously as I 28:10 28 minutes, 10 seconds said that overall see the issue is as I said that today packaging material there's inflation and there is some kind 28:18 28 minutes, 18 seconds of a you know not I won't call it lack of availability but there is constrained availability now obviously a small 28:26 28 minutes, 26 seconds player uh ability to cope with that is lower and this is going to continue for some time. 28:33 28 minutes, 33 seconds Got it. So it's a mix of inflation plus availability which is why this time it's going to be which is what kind of gives us more confidence from a ex and hence 28:41 28 minutes, 41 seconds the upgrade to is is what you're essentially kind of setting. Uh that's right. 28:46 28 minutes, 46 seconds Got it. uh as the last bit I just wanted to kind of get a sense see uh on the foods portfolio uh we have now kind of 28:53 28 minutes, 53 seconds broadly come out of uh any uh when we kind of look at the growth momentum kind of going forward we are now it's fair to 29:01 29 minutes, 1 second expect profitability plus a 25% kind of plus growth momentum now is something that we can kind of achieve here or uh 29:09 29 minutes, 9 seconds is inflation a concern and hence their growth could take a hit in color over there or in in comments I think uh Let's take it as a 20% as a base case and then we will see. 29:19 29 minutes, 19 seconds Okay, perfect. Perfect sir. That's also my side. Thank you very much. Thank you. 29:26 29 minutes, 26 seconds Thank you. We will take the next question from the line of Harit Kapoor from Invest. Please go ahead. 29:35 29 minutes, 35 seconds Hi, good evening. Just uh uh two or three from me. uh you know one was in the gross margin side on the standalone entity uh you know given that 29:44 29 minutes, 44 seconds sequentially I know we normally see some sequential drops but given that there hasn't been a sharp improvement sequentially is is it fair to assume 29:52 29 minutes, 52 seconds that the low cost base completely starts playing out in quarter one only for copra is that the right way to think about it 30:00 30 minutes that will start playing out from quarter one uh but let's let me not you know get into quarter wise as to what could be the gross margin expans expansion and 30:08 30 minutes, 8 seconds rather I would want to paint a picture for the full year and I believe uh for full year about 300 to 400 basis points improvement over the exit of FI27 FI 26 is fairly possible. 30:20 30 minutes, 20 seconds Got it. Got it. And uh uh just one thing on you know your sense on on this consumption uptick which it which looks 30:28 30 minutes, 28 seconds like in quarter four right you know you've seen a lot of the companies actually deliver uh you know numbers which are ahead of third quarter uh you know trajectories. I mean what would be 30:37 30 minutes, 37 seconds your kind of you know prognosis thought process you know at least on a top down basis on you know what's kind of driving this uh uh you know at a sector level 30:45 30 minutes, 45 seconds would be would be great to hear your comments. 30:48 30 minutes, 48 seconds So if you look at the second half of the year I think two things would have happened. I would say that one of course some some of the parts of the sector 30:56 30 minutes, 56 seconds were lapping a slightly softer base but more than that rural had earlier recovered. We are we started seeing a recovery in urban uh as a combination of 31:05 31 minutes, 5 seconds obviously the GST rate rationalization and the affordability factor led to uh I think price increases I mean the price 31:13 31 minutes, 13 seconds drops which were taken. See also what has happened is that if most of the you know especially in food now that everything is 5%. That unbranded to 31:21 31 minutes, 21 seconds branded or unpackaged to packaged uh you know conversion is going to likely to get accelerated with that and we are also seeing in value added heralds for 31:30 31 minutes, 30 seconds example is a large category where there is some unbranded small players. So the gap is actually pretty small. Secondly I 31:37 31 minutes, 37 seconds think we continue to enjoy uh good period of very low inflation. uh low inflation helps in FMCG consumption. Uh 31:47 31 minutes, 47 seconds ultimately people are aspirational. They want to get into aspirational brands there as disposable income increases. 31:55 31 minutes, 55 seconds And even now as we speak I think the government has done a fantastic job of containing the kind of a you know shock which uh you know other countries a lot 32:04 32 minutes, 4 seconds of emerging markets uh have faced because of the current crisis. I think we have been insulated and therefore we 32:11 32 minutes, 11 seconds believe that uh we I mean the sector and especially the organized part of the sector because as I said that they are 32:19 32 minutes, 19 seconds in a they have a better coping ability in terms of you know handling these kind of adversity. It so it looks okay for 32:26 32 minutes, 26 seconds the sector and definitely looks okay for us because as far as we are concerned we are inflation neutralized to a large extent. 32:35 32 minutes, 35 seconds Great. Just one last bookkeeping was on the tax rate. Just any sense on on FI27 on at a consolidated level would be helpful. 32:45 32 minutes, 45 seconds Yeah, you could consider around 20% or so. Got it. That's it for me. Thank you. Wish you all the best. 32:52 32 minutes, 52 seconds Thank you. 32:55 32 minutes, 55 seconds Thank you. We will take the next question from the line of TJ Sha from Aendas Park Institutional Equities. Please go ahead. 33:03 33 minutes, 3 seconds Uh hi. Hi. Thanks for the opportunity. 33:05 33 minutes, 5 seconds I'm congrats on good set of numbers. Uh so there just one question uh see we have been navigating macro headwinds uh 33:13 33 minutes, 13 seconds well over the past few quarters in fact past few years uh and and while the government has kind of parallelly for 33:21 33 minutes, 21 seconds last one year or one and a half year is trying to revive consumption uh by by making a lot of interventions. So as we 33:28 33 minutes, 28 seconds look ahead next year uh our growth confidence is primarily driven by internal execution or are you beginning to see signs of sustainable consumption recovery at ground level as well? 33:40 33 minutes, 40 seconds I think uh as I said in the second half of the year the sector has started accelerating. Having said that at the end of the day we have to uh we have to 33:49 33 minutes, 49 seconds ensure that we continue to deliver top quartile performance. uh we believe that we have multiple vectors of growth 33:56 33 minutes, 56 seconds whether the recovery of the core safet has significantly given us a distribution reach advantage the zaho 34:04 34 minutes, 4 seconds turnaround the diversification strategy the stable businesses international and the significant profitable growth 34:12 34 minutes, 12 seconds trajectory of digital so I think multiple vectors are playing out and sometimes one or two are not playing might not play for example I mean we had 34:20 34 minutes, 20 seconds a short-term issue in Middle East but I If I have eight or nine 10 you know 8 to 10 vectors of growth and they are in a 34:29 34 minutes, 29 seconds symphony one or two strings not working even then we are pretty confident of delivering what we are seeking to achieve 34:38 34 minutes, 38 seconds and lastly uh the the government's effort fiscal effort also has been uh led by state governments also in in some 34:46 34 minutes, 46 seconds cases. So are you seeing any divergent growth trend in some of those states where let's say there is a lot of push 34:52 34 minutes, 52 seconds to put more money in hands of bottom end of the consumer or is it very secular as of now I think it's pretty secular 35:01 35 minutes, 1 second obviously it's also for us it has been a function of where we have got deeper gains because of s2 because as you know in some of the states our distribution 35:10 35 minutes, 10 seconds especially the direct distribution was not uh indexed uh you know underindexed and therefore we are seeing that 35:17 35 minutes, 17 seconds obviously because of our portfolio especially in food and premium personal care you know the metros but to us I 35:25 35 minutes, 25 seconds think one of the things which is unique to us we called it out first before others is that we need to get GT back on 35:32 35 minutes, 32 seconds right you know back on track we started investing behind setu invested to say that you know as a general trade 35:39 35 minutes, 39 seconds contribute so much to the country create so much employment I think and it's a source of competitive advantage for us because uh you know the entry barriers 35:48 35 minutes, 48 seconds has decreased in OT but it continues to be in GT. I think our systematic investment and we believe that we owe it into the entire general trade our 35:56 35 minutes, 56 seconds distribution partners and everything to increase in viability. So to us that is a big thing and therefore we believe independent of what happens in a state 36:05 36 minutes, 5 seconds consumption or anything this will help us to grow and consistently grow. 36:11 36 minutes, 11 seconds Very clear. Thanks and all the best for coming quarters. 36:17 36 minutes, 17 seconds Thank you. We will take the next question from the line of Arnav Mitra from Goldman Sachs. Please go ahead. 36:29 36 minutes, 29 seconds Yeah. Hi uh sorry uh my line was muted. 36:32 36 minutes, 32 seconds Uh so congratulations on a great year Shaw and Pavan. Um my first question was on foods. Uh so if I look at the 16% 36:40 36 minutes, 40 seconds growth uh I assume this includes the turnover past quarter turnover from the new acquisitions uh so if you could just 36:48 36 minutes, 48 seconds help me understand how the organic business has done relative to the last couple of quarters and are you seeing an improvement there and uh what are the 36:55 36 minutes, 55 seconds building blocks there for FI27 uh as you go ahead in the organic part of the food business. 37:01 37 minutes, 1 second So I think the first good news is that uh in the quarter the core Kafula foods uh has grown in double digits. Now why 37:09 37 minutes, 9 seconds overall food growth is still not looking all that good in this quarter is because uh T is two elements is lapping up the base quarter which was a high base and 37:18 37 minutes, 18 seconds secondly we also taken some SQL call over there for some of the low GC products uh to accelerate the path of profitability in true elements. Uh 37:26 37 minutes, 26 seconds however definitely expect team growth in crew elements in FY27 also. And thirdly also for PLX uh over the last three four 37:34 37 minutes, 34 seconds quarters P Flicks is now more pivoting or more to personal care and therefore the contribution of PLX in the food's growth is progressively coming down. So 37:41 37 minutes, 41 seconds these are the reasons as to why you know food's growth despite inclusion of 4700 and Cospix is at about 16 17% but as 37:49 37 minutes, 49 seconds Shabata alluded earlier in the call that we definitely believe going ahead it will be in the range of at least 20 25% if not more. 37:58 37 minutes, 58 seconds Got it. And it's not the entire quarter of cosmics and uh yeah just a it's a few days you know it's not entire this one it's a 38:07 38 minutes, 7 seconds it's around you know we started doing it in I think maybe 50 days or something. Yeah. 38:14 38 minutes, 14 seconds Got it. Got it. So in that sense uh like for next year when I think you spoke about 20% plus growth in foods uh you 38:21 38 minutes, 21 seconds should potentially be able to do lots more because the organic business also is recovering and you'll get a full year plus I assume there will be a ramp up uh 38:29 38 minutes, 29 seconds in that business. Uh so just wanted to check whether uh uh you think the food's growth can be higher because of the M&A also adding to that 20%. 38:40 38 minutes, 40 seconds It's not I think we took as a as a base case let's take it as 20 to 25 I think uh but we'll see I think in but as I 38:48 38 minutes, 48 seconds said that I don't think we have any concern as far as food is concerned at least immediately and you will see the results coming from quarter one that's 38:57 38 minutes, 57 seconds all I can say got my second question actually was I just wanted to go back to the Bangladesh performance because last two quarters 39:05 39 minutes, 5 seconds there has been a very strong acceleration from 22 29 and 35 high growth rate. Uh so just wanted to understand is the pricing cycle on 39:13 39 minutes, 13 seconds coconut oil there going different from India in the sense that is Bangladesh also likely to see a deflation now on pricing or the price trends there are 39:20 39 minutes, 20 seconds different and therefore the uh inflation net growth could continue uh in the coconut oil business. If you could just help understand a little bit on how this 39:29 39 minutes, 29 seconds last two quarters has accelerated and if we should uh think this will decelerate immediately or it's a gradual go back to that mid team kind of a growth that 39:37 39 minutes, 37 seconds we've historically had we shouldn't read uh too much into this quarterly swings u on a steady state 39:44 39 minutes, 44 seconds basis we expect definitely to deliver double digit growth in Bangladesh and specifically talking about the last couple of quarters I believe it's a combination of good performance of both 39:52 39 minutes, 52 seconds core and uh the newer portfolio comprising shampoo maybe etc. uh and I think it's also driven by a decent uh 39:59 39 minutes, 59 seconds volume growth. Uh so therefore going ahead I think from a guidance standpoint we would say that at least double digit growth is uh for sure is going to be 40:07 40 minutes, 7 seconds delivered and I think uh one other thing which we are being watchful is about as to uh you know what happens on the consumption side depending on the 40:15 40 minutes, 15 seconds inflation etc. But over there also I believe that the robust business foundation and strong mode that we've built over the years and the favorable 40:22 40 minutes, 22 seconds cost structure we believe that we are in a unique position to sort of whether any of these kind of things play out we would be in a position to sort of deliver healthy growth in this market. 40:34 40 minutes, 34 seconds Got it. Got it. Thanks so much. Uh that's it from my side. All of you. 40:40 40 minutes, 40 seconds Thank you. We will take the next question from the line of Vik Mahishwari from Jeff. Please go ahead. 40:48 40 minutes, 48 seconds Hi Sabatan Pawan. Uh great results. Uh two questions. The first question is uh you know and I understand the the you 40:56 40 minutes, 56 seconds know there is fair amount of volatility because of whatever is happening around us. But when I just look at uh you know your guidance of 15,000 crores F27 41:04 41 minutes, 4 seconds revenues and high teen IDA growth if I just you know calculate the margins the margins are actually lower than what you know what you would have done in like 41:12 41 minutes, 12 seconds four out of five years in the past whether FI25 24 is it so and this is despite the fact that copra is correcting your mix is getting better 41:21 41 minutes, 21 seconds some of the new initiatives have started to contribute uh the portfolio mix is getting better so is it just because of the uncertainty that you are you know 41:29 41 minutes, 29 seconds you have given this uh guidance as the base case or am I missing something would love to know that are you suggesting that we are not going 41:37 41 minutes, 37 seconds back to the peaks of the operating margin is that what your question is so your margins yeah not yeah so it's it's still you know way lower than what 41:46 41 minutes, 46 seconds where you know let's say the the last five six years margins highs were so I just want to understand what am I missing uh you know if there is 41:53 41 minutes, 53 seconds something dramatically different from let's say 21 23 24 uh 25 what am I missing ing them. 42:00 42 minutes One thing which has to be kept in mind ve is that you know peak margin was also a year where we had low inflation in all the commodities. Now in this year while 42:09 42 minutes, 9 seconds we would have uh you know copra tailwind but the wave and where the crude is at this point in time there could be hidden the crudeled derivatives. Now broadly 42:17 42 minutes, 17 seconds what we've said is you know uh in gross margin terms we expect about 350 to 400 bits expansion for fi27. 42:24 42 minutes, 24 seconds We would up the NP investment again from the current levels. I believe maybe 200 250 basis points can be increased in the N&P and balance 150 bips to about 200 42:33 42 minutes, 33 seconds bips uh base case in case of 150 bits it's a pretty margin expansion that we're looking at. Now operating margin percentage is also a function of you know where your revenue is because we 42:42 42 minutes, 42 seconds have had a significant revenue growth and therefore a denominator effect also plays out. So while we are delivering 17% in this year it's also because of significant denominator effect. So 42:50 42 minutes, 50 seconds therefore keeping in all this thing we are saying about 150 basis point forth expansion and therefore if you do the maths it will come out to about 18a growth uh from a guidance standpoint 42:58 42 minutes, 58 seconds that we've given right but just just to follow up and uh just to clear my understanding uh you 43:07 43 minutes, 7 seconds know in the past uh and as I said three out of five actually sorry my bad not four out of five but three out of five the margins were closer to let's say 20 43:15 43 minutes, 15 seconds uh this time around you know your other parts of the portfolio mix which is a high margin portfolio is also doing 43:21 43 minutes, 21 seconds better. So you know I don't want to so is there a possibility that the the the guidance is a bit more conservative 43:29 43 minutes, 29 seconds sitting today or it is just the volatility which is what is you know driving this kind of guidance I think we would be the only company who would be giving this kind of a guidance 43:37 43 minutes, 37 seconds in this kind of environment of it limit growth. So I don't think there is a conservatism which has been factored into it but we also need to be mindful in terms of the environment that we are 43:45 43 minutes, 45 seconds operating in and still we are saying that uh despite uh you know at 110 of crude and what derivatives uh the crude derivatives where it is trading at this 43:54 43 minutes, 54 seconds point in time we still sticking out our neck and saying that we would be delivering 150 bits of expansion operating margin will deliver highly in a bit but I think that's that's uh that's more than one can expect I guess. 44:05 44 minutes, 5 seconds No no no totally agree Paul no doubts about it and I think let let us stabilize also in the sense that let the 44:12 44 minutes, 12 seconds situation stabilize maybe after one or two quarters you will get a better visibility right now this is a base case 44:19 44 minutes, 19 seconds kind of a situation in terms of 150 bits expansion you know what he's talking about you know sure sure and I just want to clarify it 44:28 44 minutes, 28 seconds was just about the math rather than you know anything not to say that you know your your guidance and your disclosures 44:35 44 minutes, 35 seconds you know continue to be the top-notch uh I would say uh the second without making it very abstract and you know open-ended 44:42 44 minutes, 42 seconds thing but satan pan what will be the top you know one or two things that because your execution is good you know in the toughest of the commodity cycle you have 44:50 44 minutes, 50 seconds done very well u uh versus peers also you have done extremely well your new u you know uh uh product strategy uh G2C 44:58 44 minutes, 58 seconds whatever premiumization everything has been good what are the top one or two things that you worry about uh you know at this juncture for FI 27 and which we should also monitor for your business. 45:10 45 minutes, 10 seconds So I think if you look at it obviously the macro geopolitical this one fortunately of course our Middle East contribution is low the macro 45:18 45 minutes, 18 seconds geopolitical this one is important and obviously in FMCG and the kind of portfolio we have whenever there is you 45:26 45 minutes, 26 seconds know inflation it has an impact in terms of consumers either downtrading or out the macro factors I believe as far as 45:35 45 minutes, 35 seconds internal factors are concerned the way uh we are going about doing it. I don't think and we are on a momentum on that. 45:43 45 minutes, 43 seconds I don't see that as an issue but obviously we have to watch out for the macro factor because I if you see in 45:50 45 minutes, 50 seconds historically inflation is you know FMCG consumption's biggest enemy especially in the bottom of pyramid or in rural and 45:58 45 minutes, 58 seconds the last one is another monitorable is if it is a strong elino year in terms of elino effect impacting consumption 46:07 46 minutes, 7 seconds towards the back half of the year stretching into the quarter one of next year but all these factors are not mico 46:15 46 minutes, 15 seconds this one but I believe at at this stage uh I think in terms of the machine that is running we are okay you know we we 46:24 46 minutes, 24 seconds have internally right now there are more of the external factors and internal factors 46:31 46 minutes, 31 seconds got it very interesting thank you very much wish you and your team all the very best thank you thank you we will take the next question 46:40 46 minutes, 40 seconds from the line of Mihal Mahan from HSBC security. Please go ahead. 46:47 46 minutes, 47 seconds Yes sir. Good evening Sabat and Dan. I had two questions. Uh first was on the PCO part. Uh so what would be the relative price index at this point of 46:56 46 minutes, 56 seconds time after we've taken the price cards and given a firm view of copra that we already have what is the incremental pricing action we are thinking 47:05 47 minutes, 5 seconds as of now? I think we have taken that what Paban alluded to at uh around a 10 a 10%ish on the non-pric point tax. I 47:13 47 minutes, 13 seconds believe copra will be rangebound and if uh we could manage with this we'll manage. We'll see wait and see. And as I said that uh we are we seem to be in a 47:22 47 minutes, 22 seconds relatively advantageous position compared to the other deflationary cycles because of weaker competitive positioning because of all these supply chain issues. 47:34 47 minutes, 34 seconds Right? Right. But the 10% uh cut would still from a RPI perspective take a premium to the loose coconut oil. So is that something we we'll consider in 47:42 47 minutes, 42 seconds terms of readjusting or we are not looking at that as a metric? 47:47 47 minutes, 47 seconds So even uh last year when the co prices increased by more than 120 13%, we did not take as much price increase. We taken about 60% price increase. So from 47:55 47 minutes, 55 seconds a pricing RPI standpoint we are not significantly off and as I said in we've taken calls from certain non-pric stand points required and if the depending on 48:04 48 minutes, 4 seconds copra trajectory we might take certain calls but at this point in time the visibility is that we would want to stay with this and just to add I think uh this the the 48:12 48 minutes, 12 seconds price elasticity model has got challenged in the last year because we were asked as surprised because of the strong brand equity of parachute that we 48:20 48 minutes, 20 seconds were able to carry on a flat volume growthish you know in spite of 60% %. So therefore we have re there could be a 48:27 48 minutes, 27 seconds case of a reccalibration of our pricing model you know over the next couple of years. 48:33 48 minutes, 33 seconds Understood. Uh the second question was on flicks. If you could uh just share you know what was the ballpark a bit margin for this year given you've been alluding to you know looking at margins 48:42 48 minutes, 42 seconds and the brand uh did a break even last year. Uh the second part of the question was that uh uh when we bought the brand the hero 48:50 48 minutes, 50 seconds product was ACV and foods was a much larger contributor and given the trends we see at least in terms of weight loss what is it that has changed where the 48:59 48 minutes, 59 seconds focus is now shifted more to personal care where I would believe that this part of the portfolio still has a lot of scalability and should ideally be a much 49:06 49 minutes, 6 seconds higher contributor to growth. So yeah that was a question. 49:09 49 minutes, 9 seconds So I think uh clicks currently should be hitting around mid to high single digit kind of a thing. uh we hope very soon it 49:17 49 minutes, 17 seconds will get into double digits. uh yes we started with ACV uh I think what it pivoted towards and that is a function 49:25 49 minutes, 25 seconds of uh you know see plick stands for plant-based and hair and skin food and hair and skin food is what we pivoted if 49:34 49 minutes, 34 seconds you look at all the plicks play in personal care we believe that the personal care had higher profitability 49:41 49 minutes, 41 seconds uh it expanded time the brand could carry uh itself off but you will see uh similarly some of the launches even in a 49:49 49 minutes, 49 seconds neutraetical this month uh over the next next couple of months. I think secondly what we have focused on clicks is ensure 49:57 49 minutes, 57 seconds see we we have a we have a very strong D2C play and uh I think D2C is around what 45% of the business uh in clicks 50:06 50 minutes, 6 seconds and therefore we own the consumer uh we and it's a profitable CM to D2C play so 50:13 50 minutes, 13 seconds therefore it is important that we start cross-selling upselling as so therefore it could be an ACV consumer having a 50:21 50 minutes, 21 seconds hair growth serum and that's how the PLC has played. So the the overall portfolio has pivoted towards that. Having said 50:29 50 minutes, 29 seconds that, we will see action in the neutrical space. In fact, we have just launched an ACV uh canned drink. It is 50:37 50 minutes, 37 seconds available I think in one or two quick commerce players and we will as you know globally there has been a shift from carbonated soft drinks to healthy 50:45 50 minutes, 45 seconds drinks. Uh you know in especially developed markets we have just launched one we so you will see some of the plays in neutraeticals plays also. Now the 50:54 50 minutes, 54 seconds other thing is this that between PLX and Cosmix, Cosmix will be in the slightly more serious neutraetical and protein play. So they'll be in the vitamin 51:02 51 minutes, 2 seconds supplement. This one neutraetical play is a more fun brand you know. So it's a slightly more fun brand. So therefore we 51:09 51 minutes, 9 seconds will then straddle both the things together but going forward we believe the center of gravity of clicks will be more towards personal care which is far more profitable in the long term. 51:22 51 minutes, 22 seconds Got that. Uh thank you so much and I wish all the best. 51:27 51 minutes, 27 seconds Thank you. We will take the next question from the line of Sidesh Bishma from Capital. Please go ahead. 51:37 51 minutes, 37 seconds Oh hi this is Percy here from IFL. Uh Sata my first question is on uh uh am I audible? 51:45 51 minutes, 45 seconds Yes. 51:47 51 minutes, 47 seconds Yeah. Yeah. Sagata my first question is on um the uh uh construct of the overall 51:54 51 minutes, 54 seconds hair oil markets between Waho and Coconut. uh we have seen in the last few quarters very strong growth in Wahoo 52:02 52 minutes, 2 seconds across all companies not just uh uh Marico uh and uh uh do you think this has got 52:10 52 minutes, 10 seconds anything to do with the fact that uh uh copra uh uh price has I mean the coconut oil price has become very unaffordable 52:18 52 minutes, 18 seconds so there is a little bit of market share shift towards uh Waho and going ahead do you think that uh market share shift 52:26 52 minutes, 26 seconds could reverse a little bit where uh copra price is coming down and there could be a sort of little bit of market 52:34 52 minutes, 34 seconds share move towards copra away from wahoo. These are of course not very very large shifts but to some extent can it 52:42 52 minutes, 42 seconds bring down the waho growth and can it actually accelerate uh uh the copra growth and act as a buffer against the 52:49 52 minutes, 49 seconds general uh sort of slowdown we see during a deflationary cycle in volumes of copra. 52:57 52 minutes, 57 seconds See as you know that we repivoted our uh strategy on WHO. Uh what had happened is that there was a significant focus 53:04 53 minutes, 4 seconds between the two major players on price points back especially in Amla and Mastard and therefore we decided that and therefore also a lot of spend went 53:13 53 minutes, 13 seconds from ATL to BTL. uh couple of quarters we decided that we should as a leader you know one of the volume share leader 53:22 53 minutes, 22 seconds in the category we must behind uh we must invest behind category growth and therefore we and therefore in the mid and the premium segment which are high 53:31 53 minutes, 31 seconds much much more higher profitability consequent to that if you notice from Q2 our value growth started accelerating uh 53:39 53 minutes, 39 seconds obviously the GST reduction has helped because share from some of the smaller players is or some unbranded waho to 53:47 53 minutes, 47 seconds branded waho that has helped. I think that is the reason and we are extremely confident that we will be able to consistently deliver you know high you 53:55 53 minutes, 55 seconds know growth higher growths in vo including double digit consistent growth 54:02 54 minutes, 2 seconds right uh my starting point was that of course you have done uh goods uh actions on wow no denying that but across the 54:10 54 minutes, 10 seconds industry if I look because many players are listed we are seeing all the players reporting extremely strong uh growth on wow so it seems to more of a industry 54:19 54 minutes, 19 seconds phenomenon in addition to of course you doing maybe slightly better than than the industry but overall WHO industry not only in value terms but even volume 54:27 54 minutes, 27 seconds terms is growing way above uh what a long-term average uh would be so the question was in that context maybe I'll 54:36 54 minutes, 36 seconds take uh that further uh offline uh also just wanted to understand uh second 54:42 54 minutes, 42 seconds question on uh clicks uh it's had a huge ramp ramp up over the last uh uh few 54:50 54 minutes, 50 seconds years and I think it must be coming close to touching uh 10 1,000 cr kind of 54:57 54 minutes, 57 seconds a r so uh uh do we see any kind of uh slowdown just from the point of view of absolute size of the brand and what kind 55:06 55 minutes, 6 seconds of growth can we expect in clicks as a brand uh of course I'm saying food and personal care put together at the 55:13 55 minutes, 13 seconds overall brand level can it keep growing at a sort of fast skip or at some point of time uh there are some barriers that 55:22 55 minutes, 22 seconds we hit in terms of uh it needing some uh new channels of uh growth uh uh uh uh in 55:30 55 minutes, 30 seconds addition to uh sort of online uh what are your thoughts on these? So without getting into specifics, let me tell you 55:37 55 minutes, 37 seconds I think Pix has the added advantage of a far more broader TAM than some of the other you know brands because they 55:44 55 minutes, 44 seconds either play in BPC. This is one of the very few unique brands that play across uh two distinctive categories which is 55:51 55 minutes, 51 seconds neutraeticals as well as uh neutraetical wellness and personal care. coming to of course you are right I mean as it 55:59 55 minutes, 59 seconds reaches a certain number any you know thousand cr you can't be uh expecting that kind of a growth but I'll give you the philosophy broader philosophy of our 56:08 56 minutes, 8 seconds you know overall digital play we are here to build to last we are here to create a sustainable profitable consistent growth in the business so for 56:17 56 minutes, 17 seconds me any day I will you know work for a 20 25% growth with significant increase in 56:24 56 minutes, 24 seconds steady increase in profitability over a 60% growth without any increase in profitability and I think clicks is a 56:31 56 minutes, 31 seconds brand and beard also we have shown we can do both so obviously I think as long as the digital business continues to grow 20 25 30% and be consistent on the 56:41 56 minutes, 41 seconds journey to you know go into the team's uh you know profitability you know which we have talked about in 2030 we'll be happy. 56:51 56 minutes, 51 seconds Do we need uh unlock of new channels for uh 20 25% growth in the brand? 56:58 56 minutes, 58 seconds I think as I said we believe in maximizing full potential. Focus is a very important thing. I think food is something which we believe has a far 57:06 57 minutes, 6 seconds better omni channel potential versus BPC but we are open to it. I don't think there is any capability or resource 57:15 57 minutes, 15 seconds concerns to the growth but we want growth which is mindful as opposed to growth which is pray and pre 57:25 57 minutes, 25 seconds sure that's all from my side so thanks a lot and all the best thank you we will take the next question 57:34 57 minutes, 34 seconds from the line of Adita Sman from CLSA please go ahead hi uh good evening And thanks for the 57:41 57 minutes, 41 seconds opportunity. So two questions. Uh first on the sort of guidance of 15,000 crores. Uh now the growth is is 57:50 57 minutes, 50 seconds obviously lower than what you've delivered and is this largely a function of sort of deflation in copra prices. Uh or is there anything else that again uh 57:59 57 minutes, 59 seconds is is which is why the growth is more conservative than than what it delivered last year. 58:07 58 minutes, 7 seconds So I think uh delivering doubledigit revenue growth is not conservative in any category and any sector. I don't 58:15 58 minutes, 15 seconds know where you are coming from in terms of conservatism in this. See this year what happened is significant inflation that was built in uh what we have said 58:23 58 minutes, 23 seconds consistently that we are confident of delivering high singledigit uh growth in India a kind of a mid- teens kind of a 58:33 58 minutes, 33 seconds constant currency growth in the international business and uh subject to that that that leads to a kind of a you 58:42 58 minutes, 42 seconds know a growth which is again a double-digit revenue growth overall blended Right. Obviously as you know that we have taken some pricing 58:51 58 minutes, 51 seconds correction in parachute in the non this one packs with the extent of 10% that that is being incorporated into the revenue expectations. 59:01 59 minutes, 1 second No that's very clear. Uh thanks. I just wanted to check uh if if that parachute uh price cut because the guidance was 59:08 59 minutes, 8 seconds similar even earlier, right? So I mean I'm assuming that you've already factored in that there'll be a price cut for parachute. 59:16 59 minutes, 16 seconds Exactly. Thank you. Thank you. 59:23 59 minutes, 23 seconds Thank you very much ladies and gentlemen. We will take that as the last question for today. I now hand the conference back to the management for closing comments. 59:34 59 minutes, 34 seconds Thank you for listening onto the call. 59:35 59 minutes, 35 seconds Uh to conclude, we closed FI26 on a very strong note achieving multi-year highs on most of the key business parameters in India and transfer business. These 59:44 59 minutes, 44 seconds results underscore the strength of our brand's disciplined execution and strategic diversification and premiumization initiative across geographies and categories. In a 59:52 59 minutes, 52 seconds volatile environment, we believe that our ability to foresee and manage risk will continue to hold us in goodstead. 59:58 59 minutes, 58 seconds As some of you rightly mentioned that we are in a unique position in terms of RM cost which is great positive for us. In addition to this positive shift in digital businesses, growth trajectory 1:00:06 1 hour, 6 seconds and premium wo strong momentum in international business gives us confidence on the topline bottom line guidance that we gave. So we'll remain focused on sustaining the underlying 1:00:15 1 hour, 15 seconds volume growth momentum and improving the earning growth trajectory meaningfully in FY27 while continuing to make consistent investments in pursuit of our 1:00:23 1 hour, 23 seconds FY30 strategic aspirations. That's it from our side. If you have any further queries, please feel free to reach out to our IR team and they'll be happy to address. Thank you and have a great evening. 1:00:33 1 hour, 33 seconds Thank you members of the management. On behalf of MERO Limited, that concludes this conference. Thank you all for joining the test today and you may not disconnect your lines.