Please note that this conference has been recorded. This call may contain some of the forward-looking statements which are completely based upon our beliefs, opinions, and expectations as of today. These statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties. I now hand the conference over to Mr. Anoop Bector, Managing Director. Thank you, Anup, to you, sir. Yeah. Good afternoon, everyone. On behalf of Mrs. Bectors Food Specialities Limited, I extend a very warm welcome to all participants on Q1 FY24 financial results discussion call. Today on this call, I have with me Mr. Manu Talwar, our Chief Executive Officer, Mr. Ishaan Bector, Whole-Time Director, Mr. Suvir Bector, Whole-Time Director, Mr. Parveen Kumar Goel, Whole-Time Director and CFO, and Orient Capital, our Investor Relationship Consultant. I hope everyone had an opportunity to go through our investor deck and press release that we have uploaded on the exchanges and on the company's website. It gives me immense pleasure to inform you that the company has managed to stay ahead of the curve by continuing to invest in its brand and ensuring strong execution of expansion plans across biscuits and bakery segments Domestic business growth has driven majorly by distribution, expansion in existing and new markets, complemented by marketing campaigns for consumer promotion for both biscuits and bakery businesses. We believe the growth of QSR chain and new customer acquisition would boost our institutional bakery business for coming quarters. We continue to build our manufacturing capacities to service our growth. We are commissioning the two lines in Rajpura in Q2, enhancing our production capacity, and shall be adding capacity on the bakery side in the National Capital Region by December. Our further investment in Indore, Madhya Pradesh, and Khopoli, Maharashtra for biscuits and bakery, respectively, is progressing as per plan to be commissioned in FY2024-25. During the quarter, the company has successfully navigated the challenges relating to high prices of some raw materials with a prudent raw material procurement, although volatility in prices of essential commodities like wheat, sugar, etc., still remains. The company has achieved significant growth in financial performance driven by strong growth across categories over the sequential quarter, and this is the testimony of our activities of building strong leadership teams, strengthening distribution reach, and marketing. We are confident Mrs. Bector's team would continue with the same level of passion and deliver robust growth led by strong execution across segments, accelerating distribution reach, enhanced marketing input, and entry into newer markets. Coming to our Q1 FY 2024 performance, it has been another strong quarter for us on the revenue side as well as on the margin front. Our revenues increased by 24.4% and EBITDA by 174% on YOY basis. Our focus on sales training programs for salespersons, improvement on technology side in order to track our costs, and get latest frontline reports about SKUs and inventories have helped us in a long way to reach where we are right now. Hello? This will also assist in preparing a roadmap for us to construct our future strategies. Now I will discuss the financial performance. The consolidated revenues for the current quarter stood at INR 374 crores versus INR 301 crores in Q1 FY23, thus registering a growth of 24.4% on a year-over-year basis. Biscuits: On the biscuits side, our biscuit segment reported a revenue growth of 25%, which stood at INR 223 crores in Q1 FY24 as compared to INR 170 crores in Q1 FY23. This segment has grown by 54% over Q1 FY22. Our domestic biscuit segment and exports witnessed higher double-digit growth in Q1 FY24 as compared to the same period last year. In the bakery segment: The bakery segment revenue for Q1 FY24 stood at INR 136 crores against INR 107 crores in Q1 FY23, thus registering a growth of 26% YOY basis, including retail bakery and institutional segments. Both retail and institutional bakery have grown by higher double digits in Q1 FY24 as compared to the same period last year. The company continues to focus on increasing distribution and premiumization of the products. Our EBITDA stood at INR 58 crores, resulting in growth of 85.2% and 20.1% from the corresponding quarter on a year-over-year basis and sequential basis, respectively. EBITDA margin for the quarter stood at 15.5%. That is a growth of 509 BPS points year-over-year basis and 155 BPS points on sequential basis. PAT stood at INR 35 crores, saw a growth of 174% year-over-year basis and 26% on a quarter-over-quarter basis. Our PAT margin for Q1 FY 2024 was 9.3%, registering a growth of 508 basis points and 132 basis points on a yearly and quarterly basis, respectively. The company continues to work on expanding its distribution network across India, followed by an increase in marketing of its products in order to penetrate and capture newer markets. This will assist our company to increase its footprints in North India as well as Western and South India, where the product is equally liked by our customers. As we look to the future, I am excited by the opportunities that lie ahead for the company. There is a strong pipeline of significant projects in both our businesses, and we have strong opportunities to grow demand and consumption. With this, I would request to open the floor for questions and answers. Thank you so much. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use hands up while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sameer Gupta from IIFL Securities. Please go ahead. Hi, sir. Good evening, and thanks for taking my question. First question, can you give your overall CapEx guidance for the next two years? And out of the INR 105 crore year mark for the Rajpura and Noida lines, how much have you already spent till FY23? That will be my first question. Our overall CapEx guidance for this and the next financial year is between INR 350-INR 400 crores, right? Our CapEx for the current financial year, which is 2023-24, should be approximately INR 225 odd crores, and the balance would happen in the financial year 2024-25. This is the broad breakup of the CapEx. Got it. This INR 105 crore on Rajpura and Noida that you have stated in the PPT, all of it will be in FY2024? Yes. Got it. Second question, sir. On the biscuits and bakery, you've recorded around 25%-26% growth in both the segments. Can you give a breakup of volume and value? So our overall as a company is largely led by volume. Value or the price-led growth is about 5% or 6% out of total 24%. So largely, it's a distribution-led, marketing-led, and the volume-led growth. Got it, sir. This 5%-6% price increase is similar across bakery and biscuits, is it? So this is a price, in fact, of this quarter versus the same quarter last year. So our price increase, in fact, is a little higher on the bakery side because we increased the prices last year in the month of May and June, but a little higher on the bakery side. But on our company, on an average, this is about 5%-6%. Got it, sir. I'll come back in the queue for any follow-ups. Thanks. Thank you. The next question is from the line of Amit Purohit from Elara Capital. Please go ahead. Yes, sir. Congratulations, and thank you for the opportunity. Sir, I just wanted to know your thoughts on the cross-margin side. You've done pretty well this quarter as well, and even the EBITDA margins have been strong despite marketing spends. So how do you think about it? I mean, we have talked about the 14%-15% kind of margin outlook. Added to that, there are some players talking about the regional players or unorganized guys getting aggressive. So I just wanted to know your feedback from the market. How are you seeing it, and how do we look at for FY24? So first thing, I think that both biscuits and bakery are fairly competitive industries, right? And the competitiveness in the industry is there to remain. Our whole effort and source of growth, as we have mentioned also, is distribution-led and marketing-led. So we have put a lot of effort last year also. When we spoke to you in all the four quarters last year, we clearly stated that on the biscuits side, we had a mission that from a direct reach of 160,000 outlets, we want to get to 320,000 direct reach outlets by March of 2024. So we are on that journey. In quarter one, we have reached 250,000 direct reach outlets. And as per NielsenIQ, we have crossed 600,000 marks of our overall reach of outlets. So similar is the journey also on the bakery side. The entire focus is on distribution expansion and improving the sales execution through digitization. Similar efforts are being done on the marketing side on the consumer demand creation. We took both on bakery and biscuits side marketing initiatives to drive our growth. So I would say that it's S&D and marketing-led inputs which are driving the growth. Coming to the EBITDA margin, if you ask, we have delivered a 15.5% EBITDA in this quarter. As we have been saying earlier, sir, our endeavor should be to stay in the range around 15% EBITDA and keep it consistent over the next few quarters, right? Last year, we were around 12.7% EBITDA. Last two quarters, if you're noting, we were touching 14%. Now we have crossed 15%, and our endeavor will be to continue consistently deliver around 15% EBITDA over the next few quarters. Sure. Just follow up on that. Have you taken any price reduction and grammage, and what would be this, especially on the biscuit side or bakery? So we haven't taken a price reduction, but we have been offering higher value to consumers, right? And that's what we had rolled out: consumer promotion or consumer offering of a higher grammage in Q1. And now, in the month of July also, we have rolled out a consumer promotion on Bourbon, which is just being launched. Okay. And raw material scenario remains stable, you would say? Pardon? Sorry. But raw material input cost scenario remains stable for you? I mean, basically, the wheat flour cost. Raw material commodity pricing. I would just request a move to a kitchen. Yeah. On the raw material front, definitely, there have been some pressures which are coming on the wheat front. But the company has done some forward contracts where they will be quite secure even going forward. So there will not be any major impact on account of wheat going forward, at least for the next two quarters. Okay. And sir, just my second question is on the management side. So we have done quite a bit of talent upscaling for your entire organization with a lot of recruitments. Are we done with that process, or are we still in the process of hiring talent in terms of whether it's marketing, IT, distribution side? So we have done with our leadership hiring now. So we approve with our leadership hiring in this quarter one of this financial year, whatever few positions were left up. So very well in place in terms of all the leadership positions. Okay. Okay. Thank you so much, sir. Thanks. Thank you. The next question is from the line of Harit Kapoor from Investec. Please go ahead. Yeah. Hi. Good evening. I just had a couple of questions. Firstly, on the distribution side, you've had 250,000 outlets and another probably 30% to go for this year. I just wanted to get your sense of how you're looking at the revenue trajectory. You've done 23%-24% this quarter. I think your expectation is to kind of hit the high-teens number. I was wondering whether there is a possible upside to that as well, given that you still have a large distribution execution to be done for this year itself. So on our distribution side, as we told earlier also that we want to double and reach 320,000 direct outlets by March 2024. In terms of growth, I think we've been consistently maintaining that we would be maintaining mid- to high-teens kind of growth, right, in the coming quarter also. That's what our aim and effort is to continue maintaining a mid- to high-teens kind of growth. The second thing was on pricing. So when does the pricing kind of come into the base? You currently have 5%-6%. Would that be, say, from Q3 onwards that the pricing starts to come in the base, and it would be largely volume-led growth from there on? This year, it seems to be largely volume-led, although last year also, we as a company were largely volume-led. But this year will be entirely distribution- and volume-led growth. We don't expect price increases or price correction like last year in this year. Got it. Got it. The third thing was on the CapEx side. So the units that you put up for in FY 2025, which part of FY 2025 will they be commissioned? You mentioned that you expect the commissioning in FY25. Would this be kind of back end of FY25 where you expect the Indore and Noida units to be and Khopoli units to be commissioned? I think Indore should come up in the second quarter, and Khopoli should come up in the third quarter of FY25. Got it. Got it. I'll come back with more questions. Thank you. Yeah. Thank you. The next question is from the line of Kaustubh Pawaskar from Sharekhan by BNP Paribas. Please go ahead. Yeah. Good afternoon, sir. Thanks for giving me the opportunity, and congrats for a good set of numbers. My question is on the international market, international business. How the business has performed, and what is your outlook about this part of the business? Second question is on the market share, whether we have gained any market share in any of our key markets. These are my two questions. So on the export side, we continue to do well and grow well. So export side also, this was again a consistent good quarter for us. We've grown well in this quarter. And your second part of question was on? Market share, whether we have. Market share. India market share. Yeah. On our market share side, right, in the same time last year, quarter one last year, in North India, we were 4% market share. And now, in the quarter one, we are at 4.6%. So same year as last year, we have gained 0.6% market share in the North region where we are currently in GRPA. And on the all-India level, we have moved from 1.19% in the same quarter last year to 1.43% now. So there has been a consistent market gain over the same period last year. Okay. Okay. This realization growth of 5%-6% you mentioned, is there any element of mixed improvement in this, or is it because of the price increases what you have taken last year? So yes, there is. And so as you are aware, that as a company, we continue to focus on premiumizing and our continuous focus on premium cream cookies continues to be there. So on a premiumization side, on a biscuit side, we have moved up by 5 percentage points, right? So our premium percentage on a biscuit side has touched 36%. There was a clear-cut movement of over 5% on premiumization. So mix has also improved. All the three premium categories are growing much faster than overall growth in biscuits, and which is leading to improvement in our premiumization and improvement in our mix. Okay. So you meant to say that Cremica's contribution has gone up from 31%-36% now. Is that right? Premium percentage. Premium. Premium. Premium. Okay. Okay. Premium. Okay. Okay. Okay. Thanks. Thanks. Thank you. The next question is from the line of Yagnik Pathak from Centrum Broking. Please go ahead. My question has been answered. Thank you. Thank you. The next question is from the line of Shashwat Jalan from Purnartha Investment Advisers. Please go ahead. Thank you. Firstly, congratulations on a great set of numbers. I just have two quick questions. One is on new products. Can you please share which ones are those, and what would be their share in revenue? And secondly is on distribution in newer geographies. So can you please share any comments on any difference in competitive landscape we are seeing for the new geographies compared to Punjab or Delhi and other neighboring states? Thank you. So firstly, on the NPD side, as we briefed you that we around quarter three of last financial year, we had launched Memento, a premium cream biscuit, and we had launched Rusk in the segment. So clearly, the Memento doing well in the market is reflecting in our market share. Our market share on a premium cream side has gone up from 1.4% in quarter four of financial year 2023 to 1.8% in quarter one of 2023-24. So that's kind of going well. And this was launched just about in quarter three of last financial year. On the Rusk side also, we launched in the quarter three of last financial year, and that's also building up very well and growing very well. Both the new products are doing fairly well and building up well. Hello. Thank you. Second question was on distribution side. So in new geographies, are we seeing any? Can you share any comments on the difference in competitive landscape from what we are experiencing in Punjab or Delhi? So on the competitive landscape, we were always strong on the upper north side, which was Punjab, HP, J&K, and Haryana, right? And we continue to grow even there fairly well. We have grown in mid-teens there. In the lower part of the north, which was UP, Rajasthan, Delhi, MP, and East Bihar, some part of Bihar, there we have obviously grown in high double digits, right? So the growth has been much larger there. And even the newer markets of south and west are moving well, where the majority of effort is going in terms of. What areas? I know that we are working on the distribution-led. If anything more you want to add, what are the future things you are more excited about here in this space? Three things. One is distribution and growing our penetration. Second is marketing inputs to create demand, right, plus the new products introduction. The last side of the triangle is improving our mix through premiumization. These are the three efforts which are being made, and we want to stay consistent on this in terms of driving, in terms of defining our revenue growth management, RGM. We will, as of now, stick to these three things to drive our RGM. Great. Thank you so much, sir. All the best. Thank you. A reminder to all participants to ask a question. You may press star and one. The next question is from the line of Diksha Iyer from Quest Investment Advisors. Please go ahead. Hello. Yes, ma'am. Your line is unmuted. Please go ahead with your question. Hello. Yes, we can hear you. Please proceed. Yeah. Thank you for giving me the opportunity. My question is, for the biscuit and the bread front, what kind of growth are we seeing from the newer market that we have entered? So the newer markets which we have entered are basically South and West for biscuits, as of now, and the North upcountry for the bakery side, English Oven. So obviously, the base of South and West is so small, so percentages are extremely high because we have never had any base. And in case of upcountry North, which is outside NCR, we are going in a high double digit. So are we going in high double digit even in Mumbai? So the newer territories of Mumbai and upcountry North, it's a growth of a high double digit. Okay. Thank you, sir. Thank you. The next question is from the line of Rushabh Doshi from Nirmiti Investment Advisors, LLP. Please go ahead. Yeah. Hi. Congrats on the great quarter. So my question was, on one of the products launched by Cremica Food Industries, which is run by Mr. Akshay Bector. So they have a product called Cremica French Fries, Peri Peri flavored. So my understanding was they would be focusing on the condiment side, and we can use the Cremica brand for the biscuit side, on the biscuit side. So on the other categories, can they launch more products? So that's my question. Can you repeat your question again? Yeah. So my question is regarding the company run by Mr. Akshay Bector. They've launched a product which is Cremica French Fries with the Cremica brand. So my understanding was that on the. No, I'll tell you. I understood your question. I don't know. They were in snacking business where they were making chips and these products. So in the snacking side, yes, they could use Cremica as a brand, but not for anything else. Other than their own business, what they were doing like condiments and snacks, yes. Okay. And also in future, if we want to enter the snacking category, so we'll have to build a new brand like English Oven, or we can leverage only the Cremica? When we create brands, we create them for the particular reason that English Oven was created. The reason was that we wanted to premiumize. So if our company tomorrow thinks of entering into a snacking business, we will create a relevant name. Cremica is not a relevant name for getting into a new segment which might not suit us, right? So effectively, our company can use Cremica for biscuits, and we have our brand on the English Oven. English Oven is used on anything today. We can use it on anything. We just launched our Rusk in our brand, English Oven, which is doing very well in the market. So in case there are products which are there will be a relevant brand which we will create for that. Okay. Thank you. The next question is from the line of Rishabh Sisodiya from Samiksha Capital. Please go ahead. Sorry, ma'am. What is it? Yes. Yeah. Hi, sir. Thank you for the opportunity and good set of numbers. First, slightly on the market opportunity. So in the north, let's say Punjab, Haryana, Delhi, how would you define your market size for biscuits, let's say? And if you could quantify that? You are referring to the industry size? Yes. Industry side, sir. No, no, sir. So if it's a biscuit industry size, north region contributes almost 23%-24% of the industry, right? So that's our industry, yes. Okay. Sir, on the gross margin, as you explained earlier, so just a clarification on that. So the majority of the improvement as to the numbers, or we can still see further gross margin expansion from year-on? No, as of now, I think that our whole effort should be to maintain our margin and consistently deliver both gross margin and the EBITDA margins, so around 50-odd%. So that would be our effort because we have moved up well in the if you look at last 4 to 5 quarters. So now the whole effort is to consistently deliver over our next few quarters around this. On the current capacities, so we have like you mentioned, is there any capacity for the next step? When you say they would be commercializing? Do you have enough capacity for the year? Sorry. Just to brief you, that capacity for Khopoli started around quarter three of financial year 2024/25, right? And we have two lines which are being commissioned now in July, August, in quarter two of this financial year, which is right now in Rajpura plant, which will add 2,000 tons of capacity. And again, on the bakery side, we will be adding capacity for our breads, English Oven side, in December of this financial year, so December of 2023, by December of 2023. So we have both these biscuit and bakery capacity getting added in this year also and also in next year where in quarter two, MP plant is scheduled to be commissioned, and the Khopoli in quarter three of next financial year. Okay. Thank you. The next question is from the line of Dhwanil Desai from Turtle Capital. Please go ahead. Hi. Good afternoon, everyone, and congratulations for a very good set of numbers. So my first question is, we are commissioning the MP plant in Q2 next year. So in terms of establishing the distribution network beyond the MBOs, what are we doing? Which are the states that we want to start out with? If you can talk a bit about that. We are expanding our distribution in MP, which is central part of India. As we said, we have already launched in south and west of India. We were in three cities, and we are launching in multiple new cities now. We will be present in states of Maharashtra, Karnataka, Telangana, and Andhra, right? We will be present in all of these four states in multiple cities. Over the next financial year, next to next financial year, we expect to make a much faster progress in this job. Okay. Any aspirational numbers about reach in terms of retail outlets or distribution points on those four, five states that you want to kind of capture the market? We are in the stage of putting a plan in place for the financial year of 2024/25 and 2025/26, especially from a new geography point of view. We can share in our next quarterly call with you more clear distribution targets for these new geographies. Okay. Great, sir. Great. As a second point was on the bakery side, I think a couple of quarters back, we were saying that our response to the retail bakery in the Mumbai and around area is very, very good. But this Khopoli plant still will take some time for us to commercialize. So if there's any shortage in terms of capacity, availability to serve demand, how are we bridging that gap? Some color on that would be helpful. Yeah. So, like mentioned, we still have some time for the Khopoli unit to come up. But we have been already for the past last quarter developed an outsourcing partner, and we have been outsourcing some of our production. So we are well planned for ramping up both outsource as well as our own production till the Khopoli plant comes up online. And we don't really foresee any shortages. Okay. Okay. Great. And any new development in terms of customer or product addition on the institutional bakery side? Have you heard something which is significant? Yeah. So like we had updated that Subway has become a very important partner to our QSR ecosystem. And we are seeing them putting a lot of trust on our organization as we see our volumes and our business scaling up. On the dessert side, on the frozen side, we are also working very strongly on products for the café businesses. In fact, we are going to be launching with some of our existing customers and cafés a variety of new products which are going to be very exciting. So yeah, I think these would be the two highlights. Okay. So when you say cafés, means putting up McCafé, Burger King, putting up cafés, those kind of things, right? Yeah, absolutely. And also you could have certain coffee chains, etc., which are also sort of coming into the coffee and bakery space. Okay. One last question. So when we are done with whatever current CapEx that we have planned, both MP, Khopoli, and Rajpura, and the NCR bakery, all put together, once they are in place, we should be able to do around INR 2,200-INR 2,300 crore top line. Is that the potential of the total CapEx available with us? Absolutely. So with these CapEx getting delivered in this and next financial year and commissioning our plant, we should have a revenue reachability of around INR 2,400 crore approximately. Okay. Okay. Great, sir. That's very useful. Thank you. All the best. Thank you. The next question is from the line of Amit Thawani from Care Portfolio Managers. Please go ahead. Hi. Thank you. Thank you for taking my question. My question is regarding actually, I don't know if it's already been covered in the conference call, but it's regarding the development in the Ukraine and Russia situation where they have kind of stopped exports of food from Ukraine. Have we seen an impact on the prices of wheat that we are procuring because of that? See, we currently work on partial long-term contracts. So we feel that we will not be majorly impacted because of the Ukraine war. But the Ukraine and Russia war does impact on everything, right? So there would be some impact which will come in. But on the wheat front, we feel we might be marginally affected but not majorly affected. Any quantification if you can give us? No, no. Listen, the Indian government is already talking about cutting down import duties. So you cannot predict a commodity. You cannot talk about a commodity because what is going to be happening, we don't know, right? So you can never predict a commodity. But I think there is going to be a pressure, but there will also, I mean, we have seen in the last years also, whenever there's been a pressure, the market has responded accordingly. But currently, we do not estimate in the coming quarters there is anything which is going to be majorly affected because most of our raw materials have been covered for us in this quarter at least. And let's see how it shapes out in the next quarters. Got it. When you said that our contracts are long-term, what is the period of our contracts? No, it depends upon, we really don't work on some system. But currently, since the markets have been erratic and we, I mean, wherever we feel markets can be erratic or the crop shortages are there, then we work on long-term contracts. So we could see wheat coming under shortage. So there were long-term contracts which have been brought in. And so on the raw materials side, we could see some pressure, but right now, we have not had a foresight of what will be the impact because currently, we are well secured on certain, on the biscuit side, on our QSR side. But it's very difficult to forecast, I'll tell you very frankly, because you never know when the Ukraine-Russia is going to start allowing wheat. The Indian government is already talking about wheat getting import-free. So the world prices of wheat have already fallen down substantially. We cannot foresee right now on this. Got it. Got it. Thank you. Thank you, sir. Thank you. Thank you. The next question is from the line of Bharat Giani from Moneycontrol. Please go ahead. Yes, sir. Thanks for the opportunity and congratulations for a great set of numbers. So to the earlier question, you were alluding that with all the new CapEx that you pointed out in this fiscal as well as in the upcoming fiscal with the Khopoli plant coming as well as the NP plant coming, you could reach a revenue rate of INR 2,400 crore. But that would be by what fiscal INR 2,400 crore would be reachable? Because obviously, in FY25, there would be some time lag as you enhance your distribution as well as there is a capacity ramp-up in the plants. So INR 2,400 crore revenue that you pointed out, that would be reachable by what fiscal year? That would be my first question. So that was an answer to the question that what will be the peak revenue potential after these capacities are added? And that's where I clarified that on a 100% capacity or 95% capacity of the new addition, we can reach up to INR 2,400 crores of revenue, right? Now, in terms of growth, as I clarified earlier also, as of now, we intend to deliver mid to high teens revenue growth over the next few quarters, right? And that itself, you also know, is much higher than the industry growth, which industry is reflecting on an overall basis, both for biscuit and bakery. So the whole endeavor is to deliver consistently mid to high teens of revenue growth by investing in distribution, by investing in marketing new products, and improving our mid-through premiumization. Right. Right. Sir, my next question would be, I mean, obviously, you have achieved a good margin in this quarter, and we have heard your commentary that you would keep the margins around this level for the next two to three quarters. But my margin question for you is from a slightly longer-term perspective, basically from FY25, FY26, that kind of level. So do you think that in your type of industry and given that the growth prospects that you have and given that there is obviously RMC, you cannot predict, as you earlier pointed out, that globally, it's very difficult to kind of put a forecast on the commodity? So this 15% kind of margin, do you see it is a peak margin that you have reached or on a long-term perspective, you can improve from year on? So that would be my last question. Thanks. So on a long-term basis, as we have always said, that we are an equally focused company which focuses on revenue growth and margin growth, right? And I think we've demonstrated that well over the past few quarters. So as of now, coming to over 15% EBITDA, our endeavor is to keep delivering consistently around 15% EBITDA alongside mid to high teens of revenue growth. Definitely, after we would have consistently delivered, we continue to work on margin improvement KPIs. And in long term, definitely, we feel there is kind of an opportunity to keep raising the margin bar. Okay, sir. Thanks and all the best. Thank you. The next question is from the line of Jhanvi Jain from Aequitas Investment Consultancy. Please go ahead. We lost the line for the participant. The next question is from the line of Rajit Agarwal, an individual investor. Please go ahead. Good evening, sir. Congratulations on a good set of results, and thanks for taking my questions. I have just a couple of questions. One is on the CapEx. Given that we are, I mean, our growth is as we had been projecting, and by FY25, you would hopefully be ramping up the utilization also, are there plans to or is there a thought beyond FY25 as to, I mean, some tentative plans on the CapEx beyond that? Not yet. We work continuously on our growth plans and also on our capacity plans. So as of now, we have four, particularly two now which we are implementing, commissioning this year and two for next year. And again, towards quarter three, quarter four of this financial year, when we will start planning for next two, three financial years, we'll put down those plans in place. So that's how the planning cycle rolls. So definitely, towards Q4 of this financial year, we will start getting visibility on what's up. Yeah. So Manu, I would like to add that in Madhya Pradesh, the infrastructure what we are putting is for actually four lines. So major investment is being done for four lines, but currently, two lines are getting installed. So we will always have capability to invest in two more lines without much of major investments. So that can be taken up whenever there is a need be going forward. Right. Right, sir. That's helpful. Second question is on the contract manufacturing piece. Can you share what percentage of our revenue comes from contract manufacturing? And the reason I'm asking is given the ramp-up in utilization of our own facilities for our own products, is there a thought to reduce contract manufacturing? I'm assuming contract manufacturing would be lower margin business. As of now. Is contract manufacturing as where we are doing contract manufacturing or what we are doing from outside? No, what you are doing for others. Yeah. We are only working with Mondelez in contract manufacturing. And that percentage of business, Manu, you can please tell them how it has been reducing as a percentage of the total business. So it has come down. Yeah. Yeah. That percentage is continuously coming down year-on-year. Now, we are around 4-odd%, 3.5, 4% of that because our key entire focus is on our growth of our own business. We are not as much focusing on expanding the contract manufacturing business. So that percentage year-on-year is on our reduction side. Right, sir. And if I may just squeeze in one last question. Yes, sir. Yeah. Okay. So on the margin front, I mean, my assumption was the company was looking at a range of 13%-14%. So it was a very good surprise to see it at 13.5%. Now, going forward, as the new capacities come on stream, there'll be certain overheads which will increase as soon as they are capitalized. So I mean, will there be a substantial impact on the margins because of those overheads in, let's say, Q2 and Q3? No. So in this month, we are commissioning, as in this quarter, 2 lines in Rajpura which are very well required to service our growth. And similarly, we are commissioning our NCR plant on the bakery side to service growth. We don't see an impact on margins on account of adding these 2 capacities. Rajpura is a brownfield expansion. In fact, it will help only in reducing costs, so not increasing costs. Right, sir. That's helpful, sir. Thanks a lot. Thank you. The next question is from the line of Naveen Bhutra from Shubh Labh Research. Please go ahead. Hey. First of all, congratulations for an excellent set of numbers, sir. My question is to Mr. Ishaan. And Manu said that helps. When we talk about the overall CapEx of the NPD to the current growth piece and next financial year, does that include our new subsidiary which was incorporated last quarter for BACK by English Oven? And if you can separate the CapEx and the overall plan. No, that CapEx is not included for the BACK because it's like I said, it's still on a trial stage. It's a very nascent stage right now. This CapEx that we're mentioning is mostly for the larger manufacturing facilities. Right. So if you can talk briefly about the BACK, it will be helpful for us all this year and the next year. Yeah. So currently, we have four stores. And the entire reasoning behind this business was to display our capabilities on the frozen side. And what we have seen is our range is so diverse today that we have a lot of solutions for cafés, etc. And it's also making us learn as to how a frozen business can be scalable, right? So what we are seeing in English Oven itself is month-on-month, our sales are improving as we are also improving our menu and focusing on R&D for newer products for our own cafés first. And as we see this business developing further, we can look at ramping up more stores. But currently, it is still at a very conceptual stage. Okay. Thank you, sir. Thank you very much. All the very best. Thank you. Thank you. The next question is from the line of Amit Purohit from Elara Capital. Please go ahead. Yeah. Thank you for the follow-up, sir. Basically, I just wanted to know in terms of total expanded capacity in tons, if it is possible to share by FY25, what would it be for biscuits and breads and pack that you give? Amit, thanks for the question. Amit, can I share with you separately? Can I mail it across? No problem. Yeah, yeah. We can do that. No problem. Thank you. Thank you. The next question is from the line of Himesh from Purnartha Investment Advisers. Please go ahead. Yeah. Hi. Could you help us know what will be the total capacity utilization maybe at the end of Q1 FY2024? Pardon? As a capacity utilization, as of now, for the biscuit side, we are around 95%. But as we said, we are just implementing two more lines. One line has got commissioned in July and is getting 600 in this month, which will enhance our capacity by 2,000 tons. On a bakery, we are around 70%-73% capacity utilization as of now on an overall basis. Okay. Sure. Just wanting to understand more detail on the distribution network for the bakery business apart from the northern region. Given the low shelf life of the product, just wanting to understand the entire supply chain management, if you could just help us understand that? Yeah. So for us, our supply chain is focused on opening distributors as well as having our own direct distribution to outlets where we find it viable and where we are wanting a focus directly from the company. We try to limit our geographical reach to around 300 km from any plant that we do. As we scale up pan-India, we could also be looking at another factory in the upper north, particularly could be at the Rajpura site where our biscuit is to serve the upper north market. Mumbai and Bangalore, like we said, are growing well, and Mumbai will be seeing a capacity expansion. So in terms of distribution addition, could you help us understand? I mean, more of the addition will be done on the southern part of—I mean, in the western and the southern part of India, or more distribution is required on the northern part as well? No, I think both territories. I think even in Delhi NCR, we have a lot of room to grow. What we see is an opportunity to, at the moment, still double our distribution numbers in Delhi NCR. In the rest of north, I think Punjab and upper north is actually a territory where we are absolutely not present. So a lot of distribution expansion gains are available there for us. And Mumbai, again, while we have been there for some time, we are continuing to see growth in double digits, and there's still a lot of room for distribution expansion there as well. So we'll be focusing both on the north and the west and south markets. Sure, sure. And in terms of QSR, any kind of client addition or more reach that is required? Yeah. So I think for us, the reach that is required, see, I mean, with QSR, there's two fronts of growth, right, with our existing partners with new store openings. And there, we see quite an aggressive and bullish nature in terms of new store opening plans that are there with our partners. On the second front is how we can diversify our product range and how we can add new customers. So like we had shared that as we got into the frozen food business, we were able to add Subway to our portfolio for frozen breads. And then on the frozen side, like I said, the cafés are also a big opportunity. So that part of the business will be more driven by these store additions currently and not from the client addition, right? Not from the? Client addition perspective. Yes, yes, by existing customers. Sure, sure. Yeah, that's it from my end. Thank you. Thank you. The next question is from the line of Jhanvi Jain from Aequitas Investment Consultancy. Please go ahead. Hi. Good afternoon. I'm audible? Yes. Yeah. Yeah. I'm sorry to interrupt. Ms. Jain, we are unable to hear you clearly. So could you come in network area, please? Hello. Am I audible now? Yes, you are. Could you proceed with the question? Yes. So my question was that, as you mentioned, Rajpura will add 2,000 tons of capacity, if I'm not wrong, by quarter two. Yes. Yes. If you could elaborate on the capacity addition in the Indore plant for biscuits and Khopoli and Bangalore expansion for bakery, if you can help us. So in the MP plant, again, as our MD briefed, we will be starting. We'll also be creating a larger infrastructure in terms of building space. But we will be initially starting with two lines of approximately 2,000-ton capacity there. The plan on addition on Khopoli, I would request Ishaan to brief on that. Yeah. So on Khopoli, we are expanding capacity both on our breads as well as buns. On the bun side, we will be adding an additional about 500,000 buns a day capacity. This will be additional. And on the bread side, we will be putting up an additional 120,000 breads capacity a day. In terms of pack, it will be for? In terms of? Pack. Sorry. I can't understand. In terms of? In terms of packs, bread packs. Packs. Yeah. So like I said, 120,000 bread packs a day. Okay. 120,000 for breads and 5,000 for buns? 500,000 individual buns. Okay. All right. The second question is regarding the distribution for North India. Like you said, it will be like you have hope for distribution for North India region. Do we have any strategic plan by when can that come through? This is for the bakery or the biscuits that you asked? Biscuits. Okay. Yeah. Expansion in North India, what's the plan? So as we briefed, by March 2024, we want to reach a direct outlet reach of 320,000, 320,000 outlets. So that's our plan, which has been fairly consistent from last year when we started this journey, when we were at 160,000, and we wanted to double our direct reach outlets to 320,000 over the two financial years. So that's our target as of now. We had reached around 216,000-217,000 in March 2023. In June 2023, we are around 250,000 outlets direct reach. And as per A.C. Nielsen, our overall reach of biscuits has crossed over 600,000 outlets. Okay. Thank you so much. Thank you. In the interest of time, this would be our last question. I now hand the conference over to Mr. Anup Bector for closing comments. Thank you, everyone, for joining us. I hope we have been able to answer all your queries. In case you require any further details, you may please contact us or Orient Capital, our investor relationship partner. Thank you so much. Thank you for joining. Thank you. In case of any further query, you may write to irfan.raeen@linkintime.co.in. On behalf of Mrs. Bector Food Specialties Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.