Mrs Bectors Food Specialities Limited — Q3 FY26

Mrs. Bectors Food Specialities Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=YeHL3nKOEZ4 Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Mrs. Bectar's Food Specialities Limited Q3 and 9M FY26 0:08 8 seconds earnings conference call. As a reminder, all participant lines will be in the listenonly mode and there will be an 0:16 16 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:24 24 seconds operator by pressing star with zero on your touchstone phone. Please note that this conference is being recorded. I now 0:33 33 seconds hand the conference over to Mr. Anubar, managing director and promoter. Thank you and over to you sir. 0:41 41 seconds Thank you so much and good evening everyone. On behalf of Mrs. Vector Food Specialties Limited, I extend a very 0:49 49 seconds warm welcome to all participants joining us for our quarter 3 results discussion call for the financial year 2026. 0:59 59 seconds Today I'm joined by Mr. Manutalwar, our chief executive officer and Mr. Pravin Kumar Goyel, wholetime director and 1:06 1 minute, 6 seconds chief financial officer. We also have with us our investor relations advisor from M MUFG in time. I hope everyone had 1:15 1 minute, 15 seconds an opportunity to review our investor deck and press release which which have been uploaded on the stock exchanges as 1:23 1 minute, 23 seconds well as our on our company website. The company reported revenue from operations of INR 533.3 1:32 1 minute, 32 seconds crores in the third quarter of FY26 reflecting a growth of 8.4% yearonear. 1:41 1 minute, 41 seconds The biscuits vertical delivered a resilient 5.7% year-on-year growth impacted by GST 2.0 transition as well 1:50 1 minute, 50 seconds as continued uncertainty due to punitive tariffs. The bakery vertical recorded a strong 13.2% year-on-year growth led by 2:00 2 minutes English oven brand. Abita percent came in at 12.9% which is 44 bps up over quarter 3 of the financial year 2025. 2:12 2 minutes, 12 seconds Amid a dynamic global trade environment, many Indiabased manufacturers with growth with growing international 2:19 2 minutes, 19 seconds linkages like us navigated a period of uncertainty in the recent times. The proposed trade agreement between India 2:28 2 minutes, 28 seconds and the United States marks a meaningful step forward in economic, strategic and 2:35 2 minutes, 35 seconds geopolitical terms, reinforcing India's position as a globally competitive manufacturing and sourcing hub. 2:44 2 minutes, 44 seconds We express our sincere gratitude to honorable Prime Minister Shri Narendra Modi for envying the same and for 2:52 2 minutes, 52 seconds progressive trade facilitations. My facilitation measures and tariff rationalization from 50% to 18%. 3:02 3 minutes, 2 seconds Which has strengthened confidence in the India's export ecosystem, enhanced the attractiveness of Indian food and SMCG 3:11 3 minutes, 11 seconds manufacturing for a long-term global partnerships and advanced the vision of Vixit Bharat. 3:19 3 minutes, 19 seconds This development will enable us in regaining momentum and strengthening our sports vertical. On the domestic front, 3:28 3 minutes, 28 seconds implementation of GST 2.0 reforms led to transitionary inventory impact. However, 3:35 3 minutes, 35 seconds the significant benefits to the consumer board for the category and we are already witnessing the consumption 3:42 3 minutes, 42 seconds picking up. Post GSC rationalization we passed on the full benefits to consumer 3:49 3 minutes, 49 seconds through MRP reductions and increased GES enhancing value for the consumer. 3:55 3 minutes, 55 seconds On the bakery front, English oven continues to be the key driver of performance supported by sustained momentum from our QSR partnerships. 4:05 4 minutes, 5 seconds English oven's strong trajectory is underpined by brand pull health first initiatives and distribution excellence. 4:14 4 minutes, 14 seconds I'm happy to share that I'm happy to share with you that we successfully commissioned our Kolkata plant in January making our foray into east. 4:25 4 minutes, 25 seconds Further we expanded the English oven brand into Hyderabad marketing a strategic entry into a cre region. We 4:33 4 minutes, 33 seconds are progressing towards commissioning of the Capoli plant targeted in the next few months which will further enhance our capacity and operational 4:42 4 minutes, 42 seconds flexibility. Together these initiatives are expected to strengthen our presence across key markets, improve supply chain 4:50 4 minutes, 50 seconds efficiencies and support sustained growth through deeper regional penetration. Our new products, our new 4:59 4 minutes, 59 seconds product development strategy remains anchored around building a strong health oriented portfolio with the full roll out of zero mega range and naturebaked 5:07 5 minutes, 7 seconds reinforcing our better for you positioning. The foray into ready to eat desserts under the frozen range 5:14 5 minutes, 14 seconds continues to scale up enabling English oven to participate beyond breakfast and snacking in a household. The ready to 5:22 5 minutes, 22 seconds eat pipeline rem remains robust with key launches planned over the coming quarters. On the biscuits front, we had 5:29 5 minutes, 29 seconds a successful Diwali season with the gifting portfolio realizing a 20% plus growth. Introduction and scaling up of 5:37 5 minutes, 37 seconds golden bites, fruit and nut and pista almond cookies. Pista cookies. The bakery cookie cookies complements our 5:44 5 minutes, 44 seconds strategy of premiumization in general trade along with quick commerce first products like zero ma coconut which 5:52 5 minutes, 52 seconds continues to do well. Rounding up the quarter, we had a very successful collaboration with Blinkit with Blinket 5:59 5 minutes, 59 seconds on Christmas where our flagship Danish butter cookie tins penetrated three lakh plus households and generated brand goodwill. 6:10 6 minutes, 10 seconds Before we move to our financial performance for the quarter, I am pleased to share that we have declared 6:16 6 minutes, 16 seconds an interim dividend of INR.6 per equity share. 6:23 6 minutes, 23 seconds Talking about the financial performance, our biscuit seg segment reported revenue growth of 6% which stood at INR 325 6:32 6 minutes, 32 seconds crores in Q3 FY26 as compared to INR 308 crores in Q3 FY25. 6:40 6 minutes, 40 seconds The segment has grown by 20 21% over Q3 FI24. 6:46 6 minutes, 46 seconds Our bakery segment revenue for Q3 FI26 stood at INR 198 crores against INR 175 6:55 6 minutes, 55 seconds crores in Q3 FY25 thus registering a growth of 13% on a year-on-year basis 7:02 7 minutes, 2 seconds including retail bakery and institutional segment. This segment grown by 36% over Q3 FY24. 7:11 7 minutes, 11 seconds The consolidated revenues for the current year stood at INR 533.3 crores versus INR 492.1 7:20 7 minutes, 20 seconds crores in Q3 FY25 thus registering a growth of 8.4% on a 7:26 7 minutes, 26 seconds year-on-year basis. Abita stood at INR 68.4 crores resulting in a growth of 11.4% 7:35 7 minutes, 35 seconds on a year-on-year basis. The AITA margins for the quarter stood at 12.8. 8%. 7:42 7 minutes, 42 seconds PAT stood at INR 38.1 crores for the quarter resulting in a growth of 10.1% 7:49 7 minutes, 49 seconds on a year-on-year basis and part margins for Q3 FY26 stood at 7.1%. 7:57 7 minutes, 57 seconds Moving to 9 months financials FY26. 8:01 8 minutes, 1 second The consolidated revenue for 9 months FY26 stood at INR 1,557.7 8:10 8 minutes, 10 seconds crores versus INR 1,427.8 crores in 9 months FY25 thus registering a growth of 9.1%. 8:23 8 minutes, 23 seconds Abita for 9 months FY26 stood at INR 195.9 crores. Abita margin for 9 months FY 26 stands at 12.6%. 8:36 8 minutes, 36 seconds PAT for 9 months FY 26 stood at INR 105.5 crores. In Q3 PAT is impacted on 8:45 8 minutes, 45 seconds account of provisioning owing to new labor code amendments. With this I request with this I request you to open the floor for questions and answers. 8:56 8 minutes, 56 seconds Thank you so much. 8:58 8 minutes, 58 seconds Thank you very much sir. We will now begin the question and answer session. 9:02 9 minutes, 2 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 9:08 9 minutes, 8 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 9:15 9 minutes, 15 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 9:28 9 minutes, 28 seconds The first question is from the line of Raa Maheshwari from Kamaya Wealth Management. Please go ahead. 9:36 9 minutes, 36 seconds Yeah. Uh hi, thanks for the opportunity. 9:39 9 minutes, 39 seconds Uh so, so my first first question is on the Copoli expansion. uh as we move closer towards commissioning this plant, 9:47 9 minutes, 47 seconds could you help us quantify the peak revenue potential from this particular facility at optimum utilization and you 9:56 9 minutes, 56 seconds know uh what is the timeline uh that you are assuming for that for reaching towards that optimum level? 10:05 10 minutes, 5 seconds So uh you know this plant is actually quite a large facility and has been um 10:13 10 minutes, 13 seconds you know the the infrastructure has been created for a much more than what we have but at the moment what I can guide 10:20 10 minutes, 20 seconds you is that the plant capacity for uh breads would be you know 10:28 10 minutes, 28 seconds around 1 lakh 32,000 breads a day and in case of dans we would be doing around um 10:36 10 minutes, 36 seconds oh around a million buns a day. So you know this was actually in the buns case it is going to be double than what we have in case of breads it's going to be 10:45 10 minutes, 45 seconds much larger because breads was a very small business and we were getting it done from outside. So these two factories are you know in the next few 10:54 10 minutes, 54 seconds years are going to be commendable and would give a very very good quality breads and we are looking at 11:03 11 minutes, 3 seconds good growth rumpers on the exact side how many years I'll take I don't have those numbers with me but whenever you 11:11 11 minutes, 11 seconds know I mean we have the next three years plans which uh you know we we can share it uh later but uh at the moment uh this is the best what I can tell you. 11:23 11 minutes, 23 seconds Okay sir. So uh could you help us with the asset turn on this capex if not uh revenue potential? 11:30 11 minutes, 30 seconds Yeah. So asset turnover on this uh asset is like I said the infrastructure has been created for a much bigger business. 11:39 11 minutes, 39 seconds Right. Right. 11:41 11 minutes, 41 seconds So asset turnover I think uh will be you know on the lower side will be Manu Manu 11:47 11 minutes, 47 seconds can you share this? Yeah. So you know uh as the facility has been built for a a 11:54 11 minutes, 54 seconds longer tenure and in bakery especially we need to invest in one go for the 5 seven years of capacity. So in next two 12:02 12 minutes, 2 seconds to three years time we should start hitting a asset turn of two two and a half for this plant. We take about 3 years to get to that asset. 12:12 12 minutes, 12 seconds Noted sir. And sir, my second question is on the export side uh which has been a strong performer for us and with this 12:20 12 minutes, 20 seconds uh you know trade deal likely coming into effect from Q1 onwards and the EU FDA also now concluded uh we are 12:28 12 minutes, 28 seconds expecting a favorable shift in the operating environment. So, so could you help us uh quantify what kind of uh you know financial enhancement we should 12:36 12 minutes, 36 seconds expect from these developments and like do you primarily see this as a volume driver or uh we can also see a 12:44 12 minutes, 44 seconds structural improvement in Eida margins you know so this has been relatively new 12:50 12 minutes, 50 seconds right I mean has just happened but yes this will relatively 12:57 12 minutes, 57 seconds you know improve uh any manufactur from India's ability to sell in the in in the 13:06 13 minutes, 6 seconds EU and America and we are very very hopeful of uh you know getting a big 13:15 13 minutes, 15 seconds benefit out of uh this opening from you know a 50% punitive tariff to a 18% 13:22 13 minutes, 22 seconds tariff. So hopefully you know we we would be able to you know have a lot of 13:29 13 minutes, 29 seconds value addition um in the in the business. 13:35 13 minutes, 35 seconds Okay sir and sir if you can uh list down some growth drivers for FI27. 13:44 13 minutes, 44 seconds So our growth driver for FI27, yes definitely export will be a better grow driver this year because of the whole 13:52 13 minutes, 52 seconds trade treaty and some other uncertaintity. 13:56 13 minutes, 56 seconds Uh although export has been growing at a over last four year has been growing on an average of high double digit uh in in 14:05 14 minutes, 5 seconds the last four years but this year has been a low on account of this you know tariffs and other things. So we expect 14:13 14 minutes, 13 seconds grow export to get back into a good growth engine for us to get into mid- teens to high teens kind of growth. 14:20 14 minutes, 20 seconds Similarly uh bakery English continue to expand as you would have heard in the uh 14:28 14 minutes, 28 seconds MD speech that we have opened up Kolkata and so we opened up our east region. We have also opened up another big city on 14:35 14 minutes, 35 seconds bakery in the southern region right and we continue to kind of expand another reg. So English oven should continue 14:43 14 minutes, 43 seconds this journey of growing and and our capoli plant which is getting commissioned in next few months time. So 14:51 14 minutes, 51 seconds so we have very aggressive plans for Bombay and Maharashtra in terms of growth. So Englishman will remain a high 14:58 14 minutes, 58 seconds growth engine for us with probably expecting another you know one or two cities further getting added during this 15:05 15 minutes, 5 seconds financial year coming financial year right. Domestic biscuit business again has seen a sequential improvement in 15:12 15 minutes, 12 seconds growth uh in this quarter over the last quarter and uh uh trends are uh looking 15:19 15 minutes, 19 seconds good. We are very clearly investing uh as we shared last time we investing in a 4 to 500 kilometers range from our both 15:27 15 minutes, 27 seconds Indor plant as well as from our Punjab plant and uh going deeper in our penetration coverage. So that also 15:35 15 minutes, 35 seconds should be both coming on a B2B business or bakery. Yes, B2B business on a bakery 15:41 15 minutes, 41 seconds side. QSR is still on a on a low burn, but we're very confident that uh that now there should be turnar around there. 15:51 15 minutes, 51 seconds But what we did over the last 2 three years, we added a frozen business and the frozen business has built into a 15:58 15 minutes, 58 seconds good business which has become almost 20% of our B2B bakery business and has a great growth potential and uh so we 16:06 16 minutes, 6 seconds expecting uh that again to leverage and to grow that [clears throat] part of the business. 16:13 16 minutes, 13 seconds And also uh as mentioned in the speech, we have started introducing uh some of 16:20 16 minutes, 20 seconds the frozen product in our in our uh in our retail. Uh these are some of the 16:27 16 minutes, 27 seconds pilots which we have done uh in the NCR and but we see that also should start stabilizing and and growing there. So 16:35 16 minutes, 35 seconds these are some of the few growth engines uh across the business areas which would help us grow well in the coming financial year. 16:44 16 minutes, 44 seconds Noted sir that helps sir and what is the B uh what is the percentage of B2B as compared to like on the total revenue 16:52 16 minutes, 52 seconds B2B uh bakery you're asking uh no so overall business in the bakery 17:00 17 minutes what is the percentage of B2B revenue you you talking of B2B bakery or you're 17:08 17 minutes, 8 seconds talking uh exports and B2B put together uh And talking about exports and uh 17:15 17 minutes, 15 seconds bakery put together sir exports and B2B bakery put together should be uh 17:23 17 minutes, 23 seconds should be closer to 45 46% 47% around that yeah 17:30 17 minutes, 30 seconds but what is the QSR as a as a B2B you know I think more relative would be the 17:36 17 minutes, 36 seconds Indian B2B which is our QSR business Another thing which I want to take 17:46 17 minutes, 46 seconds opportunity of highlighting here is that you see our Cremika brand biscuit 17:55 17 minutes, 55 seconds uh we have a large domestic business but Cremika brand is also very large business internationally. 18:03 18 minutes, 3 seconds We are selling Kremika brand over uh 50 countries. Kika brand has done also very well in this financial year. It is 18:12 18 minutes, 12 seconds contributing over 50% of our revenues internationally which is in our export division. 18:20 18 minutes, 20 seconds So so the Kremika brand you know from a your question uh point of view the Kremika brand is both uh there 18:29 18 minutes, 29 seconds internationally as well as domestic and it's a it's a fairly large business both in India as well as uh outside India. 18:37 18 minutes, 37 seconds Okay sir. Thank you so much sir. All the best. 18:42 18 minutes, 42 seconds Thank you very much. Ladies and gentlemen, to ensure management can answer questions from all the participants, please limit your questions to two per participant. 18:53 18 minutes, 53 seconds The next question is from the line of Sim Samanta from Otilal Oswal. Please go ahead. 19:01 19 minutes, 1 second Yeah, thank you for the opportunity sir. 19:03 19 minutes, 3 seconds So just wanted to check uh is it fair to assume that our export growth for this quarter lower double digit while the 19:11 19 minutes, 11 seconds domestic is flat to marginal on year on year. 19:16 19 minutes, 16 seconds So so our export has grown lower in this quarter. So our export growth was single 19:23 19 minutes, 23 seconds digit and our domestic growth was a high high single digit almost touching double digit. It was around that much but yes 19:31 19 minutes, 31 seconds export uh was the lowest expert at this point. 19:35 19 minutes, 35 seconds You have to say domestic is high single digit and majorly it will come from volume come from sorry volume this domestic district. 19:47 19 minutes, 47 seconds No. So there has been GST changes and all that which has obviously led to higher. So we have definitely grown in 19:54 19 minutes, 54 seconds volumes in this quarter but uh uh it's also the value growth. 20:03 20 minutes, 3 seconds So if you assume that high single digit in that case what will be the volume? Low single digit volume. 20:10 20 minutes, 10 seconds Uh let me get back to there have been I think there have been lot of changes you know because with the GST 20:16 20 minutes, 16 seconds 2.0 changes you know so I think at this point of time uh comparison might not be 20:23 20 minutes, 23 seconds uh right because we have been in the transition 20:28 20 minutes, 28 seconds [clears throat] 20:28 20 minutes, 28 seconds okay okay and so last uh on a margin how do you look right now because in Q3 last 20:36 20 minutes, 36 seconds quarter also we are targeting 14% plus uh so how do you look Q4 and FI27 you 20:44 20 minutes, 44 seconds see as I explained to you last time that for us uh the margin starting from quarter one of next 20:53 20 minutes, 53 seconds financial year in as I said that we can look at in the H1 of next financial year 21:00 21 minutes we should start getting to the 14% range okay and what about the gross gross so 21:08 21 minutes, 8 seconds any uh marginal improvement we can see from gross margin as well in e7 uh gross margin. So 21:18 21 minutes, 18 seconds in the gross in the gross margin you're asking right? Yeah. 21:24 21 minutes, 24 seconds Uh the gross margin I will be able to give more clarity in the next call. We are just in the process of concluding our AOP. So to exactly comment on the 21:33 21 minutes, 33 seconds gross margin side which will tough but yes you can you can expect some you know also some marginal improvement there. 21:43 21 minutes, 43 seconds Okay. Okay. And the last thing that uh in this quarter what is the bakery B2B growth? Uh sorry B2C growth English it is mid teams. 21:53 21 minutes, 53 seconds Uh yeah it's a high high teams growth. 21:59 21 minutes, 59 seconds High teams. Okay. Okay. Thank you. 22:04 22 minutes, 4 seconds Thank you. The next question is from the line of Ronak Sha from Aquarius Securities Private Limited. Please go ahead. 22:11 22 minutes, 11 seconds Yeah. Thanks for the opportunity sir. So my first question is regarding the domestic biscuits. So as the market leader has already highlighted that the 22:20 22 minutes, 20 seconds competition is very high. So so can you can we elaborate that considering the high competition from local plus or 22:28 22 minutes, 28 seconds larger national players the growth rate into the domestic biscuits will going to be into the high single to low double digit only in year. 22:40 22 minutes, 40 seconds You see domestic biscuit business has has been for a while a very highly competitive and intense business and in 22:49 22 minutes, 49 seconds a territory of north India uh definitely is a highly competitive business uh both with big player and local players right 22:58 22 minutes, 58 seconds we have seen a sequential improvement over the last quarter in this quarter in the growth and yes you're very right we 23:05 23 minutes, 5 seconds do expect in next you know two quarters to march towards a low teens kind of growth and that's what we are targeting to achieve in the next financial year. 23:19 23 minutes, 19 seconds Okay. Okay. So, so it is fair to assume that double digit growth will come from the second half of FY 27 into the biscuits biscuits especially. 23:30 23 minutes, 30 seconds No, we we should have you see as I said growth even in this quarter we had a high high single digit growth. 23:38 23 minutes, 38 seconds B we see sequentially with GST impact also uh the consumer GST impact also turning 23:45 23 minutes, 45 seconds positive quarter on quarter it should keep improving. 23:49 23 minutes, 49 seconds Okay, got it. So my second question is on bakery part. So though we have clocking around 13 to 14% sort of growth 23:56 23 minutes, 56 seconds but it sounds bit conservative considering the time plus the opportunity plus the activation in terms of the clean labor and all which we are 24:05 24 minutes, 5 seconds doing. So what has caused or slowed the growth rate and going forward by when we are we are again uh targeting a high 24:14 24 minutes, 14 seconds double digit or high team sort of growth rate in the B3 segment. 24:19 24 minutes, 19 seconds So I I just I think mentioned that in the English we have grown high teams 24:25 24 minutes, 25 seconds it's only the B2B business which had a had a lower growth that's why average is around 13 and a half 14% there. So 24:34 24 minutes, 34 seconds English woman continues to march at a good growth rate and shall continue to do that as well expand further. We are 24:42 24 minutes, 42 seconds very very firm on becoming a pan India strong brand over the next two years time and that's why we added two more 24:51 24 minutes, 51 seconds geographies in this uh this this quarter last quarter and and while we are building these 24:59 24 minutes, 59 seconds geographies and our our Bombay Maharashtra geography will see a huge expansion as uh we updated you the capi 25:07 25 minutes, 7 seconds plant will come up soon in next few months 9 and we we are also likely to add another few cities in this financial 25:15 25 minutes, 15 seconds year. So uh English over growth is robust and will continue to be robust. 25:22 25 minutes, 22 seconds Got it. And the last piece on the export part. So can you highlight some qualitative how we are diversifying 25:30 25 minutes, 30 seconds apart from the USA and from the profitability front considering the lower tariff now being into the system? 25:37 25 minutes, 37 seconds uh are we expecting a significant improvement into the US exports and the margin as well? 25:44 25 minutes, 44 seconds So yeah please please yeah I I'll go ahead see what is happening is Mrs. sector you know has 25:52 25 minutes, 52 seconds always invested and has built up a capability to exports export biscuits to not only you know every segment of 26:02 26 minutes, 2 seconds countries right so we are exporting to around 60 70 countries today and out of them US is one of them South America is 26:09 26 minutes, 9 seconds big for us Europe is going to be turning out to be good opportunity UK with the 26:15 26 minutes, 15 seconds new FDA Europe with new FDA US you know for the last 6 months from you know we 26:22 26 minutes, 22 seconds had seen um you know all projects coming on to hold so we feel you know Mrs. 26:28 26 minutes, 28 seconds sector is fully ready geared up you know to get the uh benefit of these 26:35 26 minutes, 35 seconds opportunities. So we will see you know good uh value not value biscuits but 26:43 26 minutes, 43 seconds premiumization from our perspective which you will deliver to these markets. 26:50 26 minutes, 50 seconds And I know I would request to you also you can brief them how we have upgraded our capability on on you know 26:57 26 minutes, 57 seconds distinctive biscuit category for Indian international market in so you know I mean today Mrs. Vector is one 27:06 27 minutes, 6 seconds of the largest suppliers of Danish cookie tins to to the US, right? And so 27:15 27 minutes, 15 seconds uh we we have built the indor plant was specifically built with the mind that you know we are going to be feeding the 27:23 27 minutes, 23 seconds US market. So you know so the for the last 6 months in the time indor plant had started we were actually you know we 27:31 27 minutes, 31 seconds we didn't want to use that capacity into India because that plant could make very specific good products so now things 27:38 27 minutes, 38 seconds will get activated we already have used this time last 6 months to prepare the products you know we uh so I think uh 27:46 27 minutes, 46 seconds the benefits will come in uh now very clearly to the company. 27:52 27 minutes, 52 seconds Okay. Okay. If uh if I if may permit for last one uh can you just highlight on the export incentive which has been 27:59 27 minutes, 59 seconds passed from the uh government uh are there any updates on that part? 28:05 28 minutes, 5 seconds Yeah. So you know that uh absolutely right. uh so there was definitely in the 28:12 28 minutes, 12 seconds last 6 months uh we from August onwards we have not been able to get those benefits and in fact if those benefits 28:20 28 minutes, 20 seconds had come in we our margins would have shown a very different uh sort of numbers right but uh what our company 28:29 28 minutes, 29 seconds has now done is we are going to be utilizing that we start importing uh raw materials which are duty-free because 28:37 28 minutes, 37 seconds for our exports we can import RM you know raw materials against advanced lessons. We are we are going to start 28:46 28 minutes, 46 seconds doing this slowly. I think in the next 6 months we should be geared up to recover uh the damages. 28:54 28 minutes, 54 seconds Okay. So in in terms of quantification can it be into the range of 20 to 30 bits of your margin uh that those incentives? 29:03 29 minutes, 3 seconds No, it is our impact on on our overall revenue would be almost close to 1%. 29:10 29 minutes, 10 seconds Yeah, close to that. 29:14 29 minutes, 14 seconds Understood. Understood. Thanks. Thanks, sir. Thank you so much. Thank you very much. 29:23 29 minutes, 23 seconds The next question is from the line of Harit Kapoor from Invest. Please go ahead. 29:31 29 minutes, 31 seconds [clears throat] 29:31 29 minutes, 31 seconds Hi, good evening. Uh so just had two or three questions. One was on uh uh you know the growth rates you know so uh you 29:38 29 minutes, 38 seconds you've spoken a lot about how you expect uh business to accelerate. Should should we assume that given that export uh you 29:46 29 minutes, 46 seconds know business starts to normalize hopefully early next year and even your capacity in bread comes [clears throat] 29:52 29 minutes, 52 seconds through only in in Q1. uh that uh these growth rates on the revenue side are are 30:00 30 minutes you know a Q1 FI27 onwards uh kind of a picture and Q4 also will be in a similar to you know slightly up and down band is 30:09 30 minutes, 9 seconds is that the right way to kind of think about uh near-term growth on the you're right yeah that's that's the right way to think yeah 30:18 30 minutes, 18 seconds got it that's what is going to happen is that [clears throat] from Q1 uh we should start seeing a improvement 30:26 30 minutes, 26 seconds in our growth rate and uh it should kind of build up. uh and looking at the situation now trade TV sign nothing much 30:35 30 minutes, 35 seconds going adverse largely uh we should be you know targeting to get for the next financial year close to mid- teens kind 30:43 30 minutes, 43 seconds of growth you know so all these deals are getting signed and US is getting signed in March 30:50 30 minutes, 50 seconds and you know so I think UK and Europe are also going to be signed probably in the second quarter or something so you 30:59 30 minutes, 59 seconds know this over the years I think the on the growth side uh things look uh into a much uh stronger wicket. 31:08 31 minutes, 8 seconds Got it. Got it. Uh the first half performance in bakery was about 17 odd% growth. Uh Q3 has been 13. 31:18 31 minutes, 18 seconds uh this uh the lower growth versus first half you would attribute it entirely to 31:26 31 minutes, 26 seconds B2B is it uh so not largely I would say largely is 31:33 31 minutes, 33 seconds B2B is a reason uh yes but in the uh Q1 out in the H1 our growths were higher 31:42 31 minutes, 42 seconds you see I I just give you brief uh we had a price increase in October or November of 24, right? 31:52 31 minutes, 52 seconds So H1 was cycling you know uh that advantage also but uh overall 32:00 32 minutes and but this quarter this quarter again our growths have been high teams in the bakery so if I kind of try and normalize that the growth hasn't pretty uh 32:08 32 minutes, 8 seconds consistent there with one or two% here and there but yes the H1 had advantage of uh cycling the 32:16 32 minutes, 16 seconds low price times right so you so you're saying that the the bakery business is more volume growth this time is what you're what you're 32:23 32 minutes, 23 seconds trying to uh uh in in yeah in Q3. Yeah. Okay. 32:29 32 minutes, 29 seconds Got it. Got it. And just a just as a comment I would I would recommend if you could you know also give I know your tonnages across are very different but 32:38 32 minutes, 38 seconds uh you know henceforth or whenever possible if you can also give a broad range of where the volume growths have 32:45 32 minutes, 45 seconds been uh uh either separately for biscuits and bakery or overall for the business because that helps us understand the pricing differential also 32:53 32 minutes, 53 seconds because in the B2B business we can't really pick it up from the market. So uh you know if possible if you can kind of 33:00 33 minutes do that math that'll be fantastic. Uh my my next question was on on the on the margin side. So look the export 33:08 33 minutes, 8 seconds incentive has has not been there this quarter. It was only there for one month in Q. It was only it was there for two months in Q2 but still we've seen a 33:17 33 minutes, 17 seconds sequential improvement in the gross margin. Right. I think an earlier participant also had a gross margin question. But from your perspective, is 33:24 33 minutes, 24 seconds this improvement is driven by mix because B2C has done better in both biscuits and in breads or is it also an 33:32 33 minutes, 32 seconds RM some RM benefits also kind of starting to flow through now? How would you interpret this sequential improvement in gross margin? 33:40 33 minutes, 40 seconds Uh let me first clarify on the RM margins. 33:45 33 minutes, 45 seconds Yeah, you know we had we have always believed in predictability, right? 33:50 33 minutes, 50 seconds Yes. So we are one of those companies who didn't get the benefits of lower prices. So so that's one thing because you know we did we we had done our 33:59 33 minutes, 59 seconds hedging till March. So you know so there are no benefits which have come in and from the raw material side but Manu can explain you the best the rest you know. 34:08 34 minutes, 8 seconds Yeah. Yeah. Yeah. 34:09 34 minutes, 9 seconds Yeah. So so I think Anup has covered that answer and uh it's largely the business business mix and efficiencies 34:17 34 minutes, 17 seconds right. So RGM revenue growth management and business mix and there's some bit of efficiency which has helped us to 34:23 34 minutes, 23 seconds improve that uh margin over last quarter last quarter. Yeah. Q2 or Q3. Yeah. 34:30 34 minutes, 30 seconds Got it. Got it. And and and last question uh uh was Anuj you know this uh uh export incentive thing and you 34:37 34 minutes, 37 seconds looking to import now uh does that completely offset whenever you start kind of offsetting this impact with your 34:45 34 minutes, 45 seconds import strategy? Does that completely offset the we have we in fact you know we had been 34:53 34 minutes, 53 seconds waiting that this because it was suspended it was not you know it was not it did not it was not finished or you 35:00 35 minutes know so it was only suspended so you know we kept believing that this will come back it was just a short-term thing correct 35:08 35 minutes, 8 seconds you know what incentives because we people have been a very high value drivers right I mean for us our Dennis Cookie tins are 35:17 35 minutes, 17 seconds very highly priced. So you know for as a percentage u you know what we used to 35:24 35 minutes, 24 seconds get uh I mean I think uh we'll not probably be able to recover 100% of what 35:30 35 minutes, 30 seconds we were getting but we will target to get towards that you know I mean but it is going to take us five 3 4 5 months 6 35:37 35 minutes, 37 seconds months because I have to create this complete uh import uh uh we have already targeted few raw materials which we have 35:45 35 minutes, 45 seconds already started we have started sending the POS But I think in the next four five months we'll be you know we will get out of it. 35:53 35 minutes, 53 seconds Understood. Understood. And and despite you saying that so it will take four or five months in your view but uh uh even 36:01 36 minutes, 1 second though it will take reach the optimization reach optimization right. 36:08 36 minutes, 8 seconds Yeah. Yeah. Not four five months to start. You've already started but it will reach four five months to optimize it. Right. 36:16 36 minutes, 16 seconds Perfect. Perfect. Perfect. I wish you all the best. Thank you. Yeah. Thank you. 36:21 36 minutes, 21 seconds Thank you very much. The next question is from line of Daritwora from Asiti Maha Institutional Equities. Please go ahead. 36:32 36 minutes, 32 seconds Am I audible? Yeah. Yeah. Yeah. So, thank you and good evening. 36:38 36 minutes, 38 seconds Thanks for the opportunity. uh I most of my uh questions have been answered but I had uh one part with respect to the 36:46 36 minutes, 46 seconds larger competitor has you know hinted at a strategy towards competing fiercely. 36:53 36 minutes, 53 seconds So do we have any kind of launch that we are either making or have you know in pipeline to compete with the players even the regional competition. 37:06 37 minutes, 6 seconds So you're talking of crima domestic biscuit business right? Yes. Yes. 37:13 37 minutes, 13 seconds Okay. So in a domestic biscuit business as I said that there are twoprong strategies which is there. One is obviously we explained you that how we 37:22 37 minutes, 22 seconds are going to penetrate deeper within the 400 kilometers of our Punjab and Indor plant right and drive the distribution 37:29 37 minutes, 29 seconds uh growth and expansion there. Second, you know, alongside that, while we are investing behind our brands and 37:38 37 minutes, 38 seconds varieties which are doing well like coconut, bourbon, digestive and all, we have also in the over the last 8 n 37:46 37 minutes, 46 seconds months if you look at we have launched series of uh uh premium products which 37:53 37 minutes, 53 seconds uh uh MD had mentioned in his speech also right which are uh premium cookies as well as some of the health varieties. 38:03 38 minutes, 3 seconds and and uh some in terms of premium like short and other products right so objective is to now the products which 38:12 38 minutes, 12 seconds we have launched over the last 9 months time we also invest behind to keep uh building those product you know so uh 38:20 38 minutes, 20 seconds objective behind that is that we are very clear now that what we will be launching is a differentiated product which we have done right and we've gone 38:29 38 minutes, 29 seconds to build this products over the years because you know getting into the again meto kind of product doesn't give you 38:36 38 minutes, 36 seconds that differentiated strength in a highly competitive business. So these are the uh two three large strategies which we 38:45 38 minutes, 45 seconds are on uh on on a you know execution mode now and these will be our sources 38:53 38 minutes, 53 seconds of growth for our RGM of domestic biscuits. All right. All right. 39:00 39 minutes And uh secondly just extrapolating this competition point to the bakery business as well. Uh on the cuc we have seen you 39:07 39 minutes, 7 seconds know uh some of the cubic companies as well coming out with their brands and some some of the smaller companies also you know launching their own brands in 39:16 39 minutes, 16 seconds the bakery side uh even the premium bakery side. So do have we have we seen some kind of impact of that competition? 39:25 39 minutes, 25 seconds No. Quickcom is also very competitive platform but you know we have been a early starter in 39:32 39 minutes, 32 seconds year 22 in quickcom as we continue to invest on this platform we're very confident of this platform kind of 39:40 39 minutes, 40 seconds growing you know uh uh in a changing uh consumer environment and that's what has happened. So we we have a stronger share 39:50 39 minutes, 50 seconds in quickcom business much ahead of our general trade share and we continue to grow very very aggressively there. So 39:57 39 minutes, 57 seconds quick in English woman is now contributing almost 33 34% of our our 40:05 40 minutes, 5 seconds revenues right and this is kind of improving every quarter in every year. 40:10 40 minutes, 10 seconds So if I remember right over the last one year itself it's we would have doubled 40:17 40 minutes, 17 seconds we have doubled our you know revenue contribution. 40:21 40 minutes, 21 seconds So a English woman is a high growth business. in this high growth business quick has you know contributing almost 40:29 40 minutes, 29 seconds 33 34% and this contribution has has literally doubled over the last 12 months right so it's it's a strong 40:38 40 minutes, 38 seconds journey we have a stronghold we investing behind it and we we remain ahead in this journey versus uh many 40:46 40 minutes, 46 seconds other players okay okay that's great to hear and and finally just uh also on the expose is uh 40:55 40 minutes, 55 seconds uh sorry the B2B part. So we have seen certain newer brands and players also 41:02 41 minutes, 2 seconds entering certain international brands also entering the Q the chain QSR space. 41:07 41 minutes, 7 seconds So do we or have we seen some client additions or new brand additions in our B2B portfolio or do we plan to add some? 41:16 41 minutes, 16 seconds I I would not know you know if you would tell us which brand you're talking about we can tell you we part of them or not. 41:24 41 minutes, 24 seconds uh any because we have Tim Hortons you know which is a cap coffee chain we supply to them so but we'll need to know 41:32 41 minutes, 32 seconds I mean you know we supply to most of the burger guys right so we hold a very strong position over there so I you'll need to tell us who's the person who's 41:41 41 minutes, 41 seconds come in you know so that probably we can know because otherwise you'll not come to know 41:47 41 minutes, 47 seconds all the new premium range uh is where we are present with a frozen range also 41:54 41 minutes, 54 seconds getting very strong. So we are offering them variety of products right and we are still in discussion on many of the 42:02 42 minutes, 2 seconds new products with these chains. So in terms of customer additions uh on our B2B battery side uh there has been a 42:10 42 minutes, 10 seconds robust uh performance uh especially led by the the frozen range of our products 42:18 42 minutes, 18 seconds because our share in a uh in a business in quickcom is already upward of 80 85% 42:26 42 minutes, 26 seconds right so all right got that thank you so much Thank you very much. 42:37 42 minutes, 37 seconds The next question is from the line of Chiag Sha from White Pine Investments Management. Please go ahead. 42:44 42 minutes, 44 seconds Yeah, thanks for the opportunity sir. Uh there's a question on this uh India US Paris. So 42:51 42 minutes, 51 seconds as as things are is it back to normal business or there is some added tailwind and if yes which countries generally we 43:00 43 minutes compete with which gives us some advantage. 43:05 43 minutes, 5 seconds you know we we when you know US trade uh uh tariff had happened so you know we 43:12 43 minutes, 12 seconds are covering most of the countries right but what we are seeing is uh you know in our journey in our trade fairs with our 43:22 43 minutes, 22 seconds people who are visiting we feel Europe is coming out strong so Europe would be 43:28 43 minutes, 28 seconds which was earlier uh not there was very limited for Indian food products other than ethnic is now getting into the mainstream. So 43:37 43 minutes, 37 seconds what what you have to understand about exports is that we have a very limited ethnic uh consumer. Our consumer is more 43:47 43 minutes, 47 seconds uh mom and pop stores is a general we compete with the the local competition with giving them the local product. So 43:55 43 minutes, 55 seconds you know that is the differential which is there with us. I think Europe is coming out uh extreme extremely well. We 44:04 44 minutes, 4 seconds also see America you know as they have started responding and uh you know coming back onto the old projects which 44:12 44 minutes, 12 seconds they had put on hold you know till the time these duties were not clarified. So I think uh there's a great opportunity 44:20 44 minutes, 20 seconds in uh South America in Europe in US as well. So UK is going to be very good for that. 44:26 44 minutes, 26 seconds So my question So my question was so it is back to normal business right before the entire tariff tantrum happened. We 44:34 44 minutes, 34 seconds are back to normal business or there is an added advantage that no no we have we have not uh we have not lost any business but new projects from 44:42 44 minutes, 42 seconds US stopped coming in which will now start coming in. But yes definitely we had to we had to part away with some 44:50 44 minutes, 50 seconds extra discounts or something you know small discounts not very big discounts. 44:55 44 minutes, 55 seconds So we did not we we did not lose business other than other than small few few yes yes few retailers yes we lost 45:03 45 minutes, 3 seconds but not I mean otherwise we would continue I mean you know and sir which country we would be competing uh for import if if they are 45:11 45 minutes, 11 seconds importing from A or B or C which are the other two countries India see India is very unique we we you 45:19 45 minutes, 19 seconds know China is not our competitor in these products so as I said We we make for the market you know we make we we 45:28 45 minutes, 28 seconds would product we make products for Walmart like most of the tins which are Danish cookie tins which were earlier 45:34 45 minutes, 34 seconds going from Europe are now going from uh Mrs. sector you know so similarly so you know I mean we do not we do not have 45:43 45 minutes, 43 seconds competitors from any other country as such you know that's what is it at the moment right 45:49 45 minutes, 49 seconds great this is helpful sir this is help thank you the next question is from the 45:58 45 minutes, 58 seconds line of Ajit Takur from Anandrati securities please go ahead hi um thanks for taking my question so 46:06 46 minutes, 6 seconds wanted to understand bit more on your strategy 2.0 which you had indicated will be rolled out possibly 46:14 46 minutes, 14 seconds uh you know in FI26 as in towards the 2026 uh so wanted to get a more sense in terms of is it kind of analyzed um you 46:22 46 minutes, 22 seconds know or and when can we expect that roll out to happen and if you can share some you know broader contours of that it would be helpful. 46:31 46 minutes, 31 seconds Yeah, I think I answered in one of the beginning question are sources of growth across the business area which I explained. So export obviously with this 46:40 46 minutes, 40 seconds tariff agreement happening and uh with new capability of some new products coming up in endor and one or more of 46:49 46 minutes, 49 seconds plant uh we should again see a resurgence of our export growth which has been there well over the past few 46:56 46 minutes, 56 seconds years but yeah this year was little right. Coming to the another biscuit winner domestic biscuit which on a 47:04 47 minutes, 4 seconds quarter and quarter has seen improvement in growth and and we are investing uh in our distribution coverage in 400 47:12 47 minutes, 12 seconds kilometers from both our Punjab and indor plant. We have launched series of premium uh products in the last 9 months 47:21 47 minutes, 21 seconds time. We will be again continue investing behind them to kind of build it and further strengthening our brand 47:28 47 minutes, 28 seconds marketing uh as we are carrying out a brand study of both uh Kremica and English. So uh make a go forward 47:37 47 minutes, 37 seconds strategy on both the brands which will you know further enhance the growth on the domestic biscuit side and take it to a low team kind of growth next year. 47:48 47 minutes, 48 seconds English woman as as I brief that it continues to be on a strong growth path which has been growing at kind of high 47:55 47 minutes, 55 seconds standard of growth and we launched in last few months in Kolkata region and Hyderabad further expanding our 48:04 48 minutes, 4 seconds geographies right and we our Bombay plant will come up in next few months 48:10 48 minutes, 10 seconds time which will help us uh good quality bun and bread supplies and we will strengthe our distribution not only in 48:19 48 minutes, 19 seconds Bombay in many parts of Maharashtra and that will become another large source of growth for English. So English continue 48:26 48 minutes, 26 seconds to grow in the existing new territory plus we're planning to add some more net territories in the coming financial 48:33 48 minutes, 33 seconds year. A B2B business as I had briefed that frozen business is showing a good traction which we built over last two 48:41 48 minutes, 41 seconds three years time and now we have enough on pipelines as a promising uh uh for good revenue growth in the next 48:49 48 minutes, 49 seconds financial year and and uh uh QSR also continue to expand in their invest in 48:56 48 minutes, 56 seconds their store expansion and there should be a turnaround. So these are the businesswide sources of growth uh and a 49:04 49 minutes, 4 seconds strategy what you call it for the next financial year. 49:09 49 minutes, 9 seconds Understood. Um also wanted to get bit more uh sense on the margin we have seen small bit of improvement and obviously 49:17 49 minutes, 17 seconds know given the fact that we will be utilizing uh the duty import duty incentives uh duty export incentives. So 49:26 49 minutes, 26 seconds in that context uh uh hopefully the margin should start you know improving further possibly from Q4 onwards. So 49:34 49 minutes, 34 seconds what will get a more sense in terms of know what kind of a improvement can we see in Q4 and then going forward? 49:41 49 minutes, 41 seconds So as I briefing the previous call that our target was to get to 14%. 49:46 49 minutes, 46 seconds We would have got to 14% but for the export incentive which kind of suddenly was put under suspension. 49:55 49 minutes, 55 seconds by the government right otherwise we would have been at 14% in this quarter 50:01 50 minutes, 1 second so now improving from here to getting to to in the 14% range is what we expect in 50:09 50 minutes, 9 seconds the x1 of the next financial year and that's the path we are progressing on 50:16 50 minutes, 16 seconds understood very helpful uh thanks thank you sir the next question is from 50:25 50 minutes, 25 seconds the line of Risha Maha from Green Edge Wealth. Please go ahead ma'am. 50:31 50 minutes, 31 seconds Um thank you. Um so you know the first question is on the bakery QSR. So uh fair to say it would have grown let's say in mid single digits for Q3. 50:44 50 minutes, 44 seconds Yes. Yes. 50:47 50 minutes, 47 seconds Okay. and and here again would it be fair to assume that you know since we are already so well penetrated on the bun side. So any incremental growth here 50:57 50 minutes, 57 seconds uh would largely be driven by new categories like frozen foods unless you know the macro demand for the QSR 51:04 51 minutes, 4 seconds improves which sees uh you know the growth from the bun side as well. Would would that be the right understanding? 51:11 51 minutes, 11 seconds Yeah, broadly yes. But yes, as we have started a Kolkata plant, so that will give us a fill up of the east region 51:18 51 minutes, 18 seconds business on the even on the bonsai, right? There are uh many new small customers also mushrooming where we had 51:27 51 minutes, 27 seconds a capacity constraint both in uh Bombay and Bangalore. So Bombay plant coming up will help us to service that that new 51:36 51 minutes, 36 seconds customers which we were as of now able not able to service them and add them to our portfolio. Similar is a challenge in 51:43 51 minutes, 43 seconds Bangalore uh and Bangalore also investing in a in a expanded new plant there in the coming financial year. So 51:52 51 minutes, 52 seconds that will help. So yes, so some bit of growth we we were not able to capture uh of new customers uh in both west and 52:01 52 minutes, 1 second south territory will get available with the uh uh with the capacity falling in place and the Kolkata region board 52:09 52 minutes, 9 seconds obviously is a geography new to us other than McDonald's is what will add to our business but broadly what you said is right. 52:18 52 minutes, 18 seconds So with that then you know FI27 onwards can we expect this to touch like a double digit or a high singledigit kind of a growth for the bakery QSRs. 52:29 52 minutes, 29 seconds Ah so bakery B2B business. Yes we will be targeting a uh uh no teens kind of growth in the coming financial year. 52:40 52 minutes, 40 seconds Right. And you know the export biscuit business. So while we've seen a low singledigit growth in uh Q3 uh if you could break it up into you know the US 52:49 52 minutes, 49 seconds and the non- US business. So uh as I understand the US business is almost 20% of our exports business. So how much 52:56 52 minutes, 56 seconds would have you know US business degen most of most of the territories have 53:08 53 minutes, 8 seconds grown. We don't share number to that granularity but broadly yes uh our challenge in was uh US which is kind of 53:17 53 minutes, 17 seconds now will be uh uh kind of will get get rectified right 53:27 53 minutes, 27 seconds so uh so okay so the non- US business would have registered a double digit kind of a growth or would we have seen 53:34 53 minutes, 34 seconds some slowdown there I I don't have I don't have ready number as of now so yeah and uh we normally 53:43 53 minutes, 43 seconds don't get into sharing such a granual number but directionally as I said would is true 53:50 53 minutes, 50 seconds and so the export business also with you know the US trade deal coming through right uh uh would that also be a low 53:58 53 minutes, 58 seconds double digit kind of a number that we are targeting for growth for FI27 uh yes Yes. 54:09 54 minutes, 9 seconds And you know now that the trade deal has been announced so are we already seeing like more inquiries from the US business or it's it's still status quo 54:18 54 minutes, 18 seconds you know we have started people have started talking to us right back so like I mean we had a deal you know which we 54:27 54 minutes, 27 seconds if the trade deal did not had not had happened we would have lost that deal because there are certain you know businesses which are like the Danish 54:34 54 minutes, 34 seconds cookie tins is you know we are approved supplier with them but uh if it was 50% we would not have got that they were not 54:42 54 minutes, 42 seconds going to come back to us or we would have had to discount heavily so which has which which has gone into our favor so already things have started happening 54:50 54 minutes, 50 seconds India is back into their mind which was even the buyer was confused as much as we were confused right it was very 54:58 54 minutes, 58 seconds difficult to create a supply chain so effectively I think in going forward 55:04 55 minutes, 4 seconds India is going to emerge as a big a player in sports and food products and 55:11 55 minutes, 11 seconds biscuits being one of them and America being a very large consumer will really you know give a benefit but those 55:19 55 minutes, 19 seconds companies will benefit who are prepared you know I like I mentioned earlier we manufacture for the market for the US 55:27 55 minutes, 27 seconds market we do not manufacture ethnic products right we we do ethnic wherever there's a need but but our main 55:36 55 minutes, 36 seconds competition happens if I do America if I selling a biscuits into America. I'm doing a cheese cream for them, a cracker for them. It's a product which they keep 55:45 55 minutes, 45 seconds eating. They they are they are consumers of that product. Right. So it's not that I'm giving them a zera biscuit or 55:53 55 minutes, 53 seconds something else. So we are sure that you know things will be much more productive. Right. 56:00 56 minutes Sure. Sure. And and it's too new. In fact, the agreement has right now we don't even know. I mean we know we going to have 18% tariff but 56:09 56 minutes, 9 seconds we don't know it might be different right it might be lower it might be something else because in the newspapers we read that certain food items are 56:17 56 minutes, 17 seconds being considered as zero now if that is the case we don't know right so I think end of March we'll have a clear clarity 56:24 56 minutes, 24 seconds on what is happening but yes things are moving in the right direction understood and just the last one on the domestic biscuits business so while you 56:33 56 minutes, 33 seconds all have you know articulated the future growth both levers for the domestic biscuit business. But I just wanted to you know kind of double click on you 56:40 56 minutes, 40 seconds know why the domestic biscuit business you know has been sluggish. So see the GST related disturbance is something that even you know the uh industry 56:49 56 minutes, 49 seconds leader has faced and if you look at our domestic biscuit uh business uh you know the growth versus let's say a Britannia 56:56 56 minutes, 56 seconds is you know hardly 200 bits higher while you know we are probably 1/8 their size right and so is it you know uh if I 57:04 57 minutes, 4 seconds exclude the GST part is it I mean what is it you know that has impacted our growth in the domestic biscuit business over the last one year so is it like a 57:12 57 minutes, 12 seconds lot of competition Were we constrained on capacities? Were there any execution gaps? If you could just kind of help me on that. 57:19 57 minutes, 19 seconds Let let me let me brief you right brief in the last actually. You see domestic biscuit business if you remember we had 57:28 57 minutes, 28 seconds a huge commodity spike in prices starting October November of 2014 right 57:36 57 minutes, 36 seconds palm oil and other things right and and and with a hyper competition is something which had put a very large 57:45 57 minutes, 45 seconds adverse pressure on our domestic biscuit profitability and margin right and uh uh 57:52 57 minutes, 52 seconds so it was very important for us to kind of first make sure that we 57:59 57 minutes, 59 seconds correct our margins there and get the business again to a good sustained level 58:06 58 minutes, 6 seconds and that's what took about you know close to 8 n months to get that into mode and then we started about a uh kind 58:15 58 minutes, 15 seconds of a getting into the again distribution expansion new products and other thing few months back which will kind of uh 58:24 58 minutes, 24 seconds uh which will now is getting back into the uh uh investing behind a high growth 58:32 58 minutes, 32 seconds investing on distribution brand board and we have seen a sequential improvement in in our growth over the last last quarter to this quarter and 58:40 58 minutes, 40 seconds that journey will continue. So our expectation is to get to into uh low teens kind of growth in the next coming financial year and we're confident we should be able to achieve that. Sure. 58:54 58 minutes, 54 seconds Thank you and all the best. 58:57 58 minutes, 57 seconds [clears throat] 58:58 58 minutes, 58 seconds Ladies and gentlemen, due to time constraint, that was the last question. 59:02 59 minutes, 2 seconds I would now hand the conference over to the management for the closing comments. 59:08 59 minutes, 8 seconds Uh thank you everyone for joining us. I hope we have been able to answer all your queries. In case you require any 59:15 59 minutes, 15 seconds further details, you may please contact us or MUFG in time. our investor relations partner. Thank you very much. 59:24 59 minutes, 24 seconds Bye. 59:26 59 minutes, 26 seconds Thank you once again, sir. On behalf of Mr. Mr. Mrs. Bectar's Food Specialties Limited, that concludes this conference. 59:34 59 minutes, 34 seconds Thank you for joining us. 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