Ladies and gentlemen, good day, and welcome to the Mrs. Bectors Food Specialities Limited Q1 FY 2027 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anoop Bector, Managing Director and Promoter. Thank you, and over to you, sir. Thank you so much, and good evening, everyone. On behalf of Mrs. Bectors Food Specialities Limited, I extend a very warm welcome to all participants on our Q1 financial year 2027 earnings call. Joining me on the call today are Mr. Manu Talwar, our Chief Executive Officer, Mr. Shyam Bector, Whole-time Director, Mr. Suvir Bector, Whole-time Director, and Mr. Praveen Kumar Goel, Whole-time Director. I would also like to take a moment to welcome Mr. Anshul Rastogi, who joins us as our Chief Financial Officer. He brings with him extensive experience in finance leadership roles at multinational consumer companies. We also have with us our investor relations advisors from MUFG Intime. I hope everyone has had an opportunity to review our investor deck and press release, which have been uploaded on the stock exchanges as well as on our company website. FY 2026 was the year in which we crossed the INR 2,000 crore revenue mark. Q1 of the financial year 2027 is, in many ways, the first test of whether the foundations we've built over the last few years can carry us at a faster pace. We are pleased with how the quarter has turned out. The company reported revenue from operations of INR 548.7 crores, a growth of 16% year-on-year, and 12.9% over the preceding quarter. Importantly, the growth was accompanied by margin expansion. EBITDA at INR 72.1 crores grew 23.8% year-on-year, with the EBITDA margin at 13.1%, an improvement of 80 basis points over Q1 of financial year 2026. On a 24-month view, revenue is up 25%, delivering both growth and margin in a quarter that carried the full weight of inflation and the West Asia disruption is, we believe, the more meaningful takeaway of this performance. On the demand side, consumption trends have held up better than we had feared at the time of our last call. Domestic demand remained healthy across both retail and institutional channels, and our export order book strengthened materially despite vessel availability yet to normalize fully after the disruption in this quarter. Barring a further escalation in the West Asia conflict or a sharper turn in food inflation, we remain optimistic on both businesses, underpinned by stable consumption, a continued focus on premiumization, and a sustained investment in brand building. Our biscuit business reported a revenue of INR 325 crore, registering a growth of 15.7% year-on-year and 19% growth compared to Q1 FY 2025. Our bakery business continued its strong growth momentum, delivering revenues of INR 215 crore, up 17.5% year-on-year, and 40% higher than Q1 FY 2025. The launch of Nature Bake reflects our commitment to addressing emerging consumer trends around healthy and clean label proposition. With our focused efforts, Nature Bake has crossed a monthly revenue rate of INR 1 crore. Our innovation pipeline continues to strengthen the portfolio with premium value-added offerings that enhance consumer engagement, improve mix, and support long-term profitable growth. On the marketing front, we stepped up our brand investments in a deliberate way, and this will continue to be an area of committed investment as we build long-term brand equity for Cremica and English Oven. Quick commerce continues to be of strategic significance for us and grew at 58% year-on-year. Our Kolkata bakery unit, commissioned in Q4 of FY 2026, is now servicing east markets, and the market has responded encouragingly. Khopoli plant in Maharashtra was commissioned in March 2026, and facility is stabilizing well and is expected to scale towards full capacities over coming quarters, strengthening our west footprint. Mumbai remains a high-focus market for English Oven, where we intend to lead with a high-quality premium product offering. On the international business, Q1 marked a decisive recovery, even as the shipping environment remained difficult. Vessel availability has not yet normalized, and freight and logistic costs have risen further. Despite this, our export business delivered healthy high double-digit growth. Importantly, the U.S. market is back on a growth trajectory for us, and we have backed this recovery with new product launches, including Peanut Butter, where we are confident of a strong ramp-up in the quarters ahead. The company has steadily strengthened its international business through disciplined, calibrated expansion in the last few years, with a focused approach on markets that offer structural profitability and high growth potential, and this quarter is a validation of that approach. Before I turn to numbers, let me spend a moment on the operating environment. India's growth story remains resilient, but the benign inflation of the early part of the last year has clearly reversed. Headline consumer inflation has climbed steadily through the year to around 4.4% in June 2026, and the input cost inflation has been defining feature of the quarter for us. The West Asia conflict has been an important contributor, though not the only one, and the pressure reached us on three fronts: inflation in raw material and packaging material, escalation in fuel cost, and the consequent impact of the minimum wage hike. Against this, the mitigation measures we had initiated on a war footing, calibrated price increases, and our institutionalized cost optimization mindset under Project Impact. In other words, the quarter's inflation was very substantially neutralized, leaving only a marginal residual impact. This is the discipline we intend to carry through the balance of the year, and we expect recovery to progressively exceed the impact as the prices increase, annualize, and the Project Impact interventions mature. Financial performance. Moving to our financial performance for the quarter, the consolidated revenues for the current quarter stood at INR 548.7 crores, versus INR 473 crores in Q1 FY 2026, thus registering a growth of 16% on a year-on-year basis and 12.9% on a sequential basis. Gross profit for the quarter stood at INR 258.9 crores, growth of 20%, with gross margin at 47.2% against 45.6% in Q1 FY 2026, reflecting the benefit of price action and cost optimization. EBITDA stood at INR 72.1 crores, registering a growth of 23.8%. The EBITDA margin for the quarter stood at 13.1%, an expansion of 80 basis points on Q1 FY 2026. PAT stood at INR 38.8 crores for the quarter, registering at 25.5% on a year-on-year basis. PAT margins for Q1 FY 2027 stood at 7.1%. With this, I request you to open the floor for question and answer. Thank you so much. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets 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 Siddhesh Deshmukh from IIFL Capital. Please go ahead. Hi, sir. This is Percy Panthaki here. I just wanted to understand what is the domestic biscuit sales growth for this quarter please. Hello, am I audible? Yes, you're audible. Hello? Hello, can you hear me? Yes. I just wanted to know the domestic biscuit sales growth for the quarter. It has been high single digits. Okay. Is it largely volume-driven, or is there any pricing element in the domestic biscuits? No, it is pricing and volume both in this. Understood. Secondly, just wanted to talk about the overall margins for the company. What is the likely margin that you're looking at for this year, given where the commodity prices are currently? How are you thinking about what it would be in the next couple of years, given whatever your cost-saving plans or scale leverage, et cetera? Let me brief a little bit in detail on this to you. First thing, just obviously as the managing director's speech also said, there has been an inflationary trend on account of war, on account of commodity prices going up, on account of fuel. That impact. We have been trying to take proactive actions, both on the pricing side and the cost side, to cover it as much as possible. Q1, we have been able to cover up to the maximum extent. Q2, again, the impact seems to be rather larger on account of commodity price increase. We have already initiated actions. Q2 could be a quarter where we will be able to cover most of it, not entirely, but Q3, again, we will be fully covered. On the margin side, if you would have noticed that we have been improving quarter-on-quarter for the past two, three quarters. We have done in this quarter. Our target still remains that by Q4 of this financial year, we get to our 14% EBITDA target. That's a journey plan we have, in spite of the fact that we have quite a fair amount of inflationary trend on account of commodity prices and the fuel impact, as well as the minimum wage impact. The pricing action and cost. Project Impact also, which we started about two years back, that's running well, and we expect this year to deliver almost close to 0.4%-0.5% coming out of our Project Impact. I hope this takes care of your query. Yes. Understood, sir. On the exports part, just wanted to understand this quarter, was there any kind of pipeline refill which has happened because the growth would have sort of got affected earlier. Therefore, would it be fair to say that we should not extrapolate this quarter's export growth going ahead? Hi, Percy. Yeah. Hi, Percy. What I would say is that we had a couple of projects that had slowed down during the U.S. tariffs, but they are now back on track. Like our MD also mentioned that we've launched peanut butter cracker as a variety. We've successfully added another SKU with the biggest retailer in the U.S., like Walmart. All right? That is a consistent business that we aim to grow. Our objective is that we're going to keep adding SKUs with the existing partners and keep adding new ones. What we're anticipating is that the growth momentum is always going to be there. We are already engaging with clients who we've been talking to since a year back, and their projects have started converting now. The growth momentum will always be there for exports, right? It's not only for the U.S., all the other territories as well. Sorry, I lost your voice. What do you think? Yeah, I'm saying there is nothing sort of exceptional this quarter in terms of restocking from the earlier sort of slowdown that we've seen. This quarter growth is all sort of something which is pertaining to this quarter's demand only. Is that the case, or is there some restocking which has happened this quarter? No. There's no restocking as such. This is all the growth that's pertaining to this quarter, and some new innovations that we've launched have started clicking with retailers. There's no restocking as a thing that's happening with us. Okay. Because March month would have been affected for exports, right? You would not have been able to export because of the geopolitical tensions in March. Those shipments would have spilt into this quarter, which would have propped up this quarter's exports growth, or that's not the case? June, like again, the MD mentioned, because of the geopolitical crisis, we had shipments on delay for the June month as well. Right? Okay. It all sort of balances out towards the end- Understood. where we didn't see any refilling or restocking as an impact from March to June right now. Okay. For the rest of the year also, like a high teens growth for the company overall, which we have done this quarter, that same kind of growth can continue because there's no one-off as such this quarter. That understanding is correct? No, Percy, our full year projection continues that we are targeting to hit around mid-teens kind of growth. There is a seasonality also which makes a difference. We still stick to our projections of mid-teens kind of growth. Mid-teens. Understood. Okay, sir. Thank you so much. Thank you. The next question is from the line of Harit Kapoor from Investec. Please go ahead. Yeah. Hi, good evening. Just a few things from my end. First was, again, on the margins. If you look at the sequential improvement, not only in your EBITDA, but in your gross margin also, there has been an improvement here from about 46 odd%-47 odd%. What do you attribute that to, given the fact that inflationary trends have only accelerated from Q4 to Q1? I know you did speak about mitigation, but there has actually been an acceleration. Is this Q1 specifically a product category mix, a differential also that plays out? That's the first. The second question was on the OpEx side of things. This quarter, you have seen a bump up in the other expenses. Would you attribute that largely to, say, the freight cost challenges as well as the marketing initiatives, the brand investments that you have done? Would these be the two key factors driving up that OpEx growth? These are my two questions. Yeah, Harit, good evening. Yes, on the gross margin, primarily the impact is on account of improvement in both sides, biscuit, bakery, but there is also a role of business mix. There's a slight improvement in the bakery business mix because of the higher growth, if you look at that. That has also added to that bit of margin improvement, which is reflecting there in gross margin. Yes, OpEx, you're absolutely right. It is on account of two items, which is freight and fuel. Freight on the onboard side and the large part is on the fuel, which basically is the plant consumption for the manufacturing. Second, yes, we have upped our marketing investments. Great. The freight cost is there. Yeah. Am I- Freight cost, yeah. Right. Got it. Second bit was on bread. You just mentioned product mix improvement, et cetera. The growth has also been quite strong this quarter. Is there a significant difference between how the retail business under English Oven and Nature Bake has done versus the institutional business? Because institutional also would have seen some pickup given what's happening on the QSR side. Just wanted to get a color, even if you can't give exact numbers on how that mix has shifted in the 17% growth. No. First is that overall bakery has done well, right? Yes. That's why you see the overall bakery growth percentage is higher than the overall biscuit growth. That was the mix I was referring to. Yes. Both English Oven and the QSR business have grown well. The good news is, Harit, that we're clearly seeing very positive trends after many quarters on the QSR business, and very confident these trends are here to continue now. Clearly, the industry is now back on an upswing. Got it. My last question was on bread. You added CapEx in Calcutta, and you said the off-takes have been quite encouraging. Would this be on retail as well as institutional, or the Calcutta foray is only in one of the two segments? I just want clarification on that. Those are my questions. No, Harit, it is both segments. Both have started moving well for us, both on the English Oven side as well as the QSR side, and we are in the process of build-up. What the speech of MD referred to that, we are delighted that strength of English Oven as a brand and the quality of the product is clearly reflecting in a very newer market of East through the consumers. Right? English Oven is very well accepted and appreciated on our bakery product side, and it's reflecting good trend. Yes, it is on both sides, English Oven as well as QSR. Great. Wish the team all the best. Thank you. Thank you. Thank you. The next question is from the line of Binay Shukla from PhillipCapital India. Please go ahead. Yeah, hi sir. Thank you for the opportunity. My question is on the EBITDA margin front. Could you please provide some sense of the EBITDA margin profile across all the four business segments? I'm not looking for the exact margin, but could you indicate whether our EBITDA margin for each segment is above or below the company average? Because in our view, the domestic biscuit margin is operating at a significantly lower side versus our company's average. Could you please just let us know if our understanding is broadly correct or is there any significant deviation over here? Yeah. As we have said earlier also, our bakery business EBITDA is above our company average, our biscuit business EBITDA is slightly below our company average. That's how the EBITDA margins of both the businesses stand out. Any idea, sir, what kind of margin you are making in domestic biscuits? We don't share that. We can separately discuss in the meeting, as of now, as a principle, we haven't shared that. Understood, sir. Secondly, on the domestic business, since we aspire to growing at 18% sort of growth for domestic business. Just wanted to know what structural initiative are you undertaking in the domestic biscuit business, specifically on ground execution front to achieve this target. Yeah. This is on the domestic business. There are three drivers to that. One, obviously, distribution, as we have briefed that this year, we have taken a target of adding 40,000 build outlet above INR 200 per outlet. That's almost increase in build outlets by 12, 13% over the previous year. Second is that we are focusing largely in a 400 km from our manufacturing in Punjab, that area is being invested and driven more. Third is that, as I said, that we are up the marketing investment, so we're investing behind the brand. While three of our lead variety brands, which are Coconut, which is becoming a clear-cut leader in the industry with a continued high growth. Then we have Bourbon, which continues to be in the second number in the industry, and Digestive is again, continues to be leading in the category. Over and above this, we are investing behind our premium creams and premium cookies to drive our premium contribution in the business. These two are being invested behind, both on the distribution as well as on the marketing side, to build that business over the next few quarters to come. Alongside, we'll be investing in some of the high premium products like Shortbread, which is growing on e-commerce continuously quarter-on-quarter in a very healthy rate, and similarly, Butter Cookies and some other varieties. This is how the levers of the-- or I can say these are the levers of revenue growth for the Cremica biscuits limited. Understood. Sir, we have opened a new plant in MP, on the other hand, Britannia and Parle remain very aggressive in Hindi speaking market, if I call it MP, UT, Gujarat, Rajasthan. What is our right to being in this market? Are we going to offer a tactical additional share input to the retailers? How we are going to attract the new distributors and new retailers? First thing, just to clarify that MP plant which has been opened, has been opened for both exports, because it's brought it closer to the port, plus we had a fiscal incentive supported by the government. We're manufacturing there largely export as of now. We have started investing in the central market, which is MP and some part of Maharashtra and Gujarat. This journey of investing in these markets is in the distribution side, largely on the distribution side as of now. We're very confident over the next few quarters, we should start seeing. There will not be any instant large results coming in out of that, but it will be continuous investment over the next few quarters. We can start seeing some good movement of Cremica brand in these territories. Okay. Sir, just looking for two data points. One is for domestic business. What is our current revenue contribution is coming from the non-upper north markets when we compare with three years ago? Second is, what kind of contribution is coming from the existing plant for export business? What is the second question? What kind of% contribution is coming from your existing customer in export market? Okay. Suvir will answer the second one. On the first one, we have now almost reached 50% our general trade business, 50% comes from Upper North, 50% comes from rest of India. Suvir, please if you can answer on the second. Yeah. More than 95% or 98% business would be the existing. The thing is that the existing customers, we are consistently and continuously adding newer SKUs to them in the form of innovation to grow their share in the market. I hope that answers the question. That 2%-3% is coming from the newer clients. What efforts you are taking to increase this share to near double digits over the next three to four years? The teams, we have a very wide team who are consistently traveling across the world, wherever the markets are. We are analyzing data. We are in touch with top-tier retailers as well as distributors to start engaging with our products, and hopefully, we'll start seeing conversions as well. This is a general trend that keeps on going because for a retailer to materialize, the conversion time is a bit longer. We are in active discussions with a lot. Understood, sir. Thank you so much. Thank you. Thank you. Ladies and gentlemen, in order for the management to answer all of your questions, please restrict your questions to two per participant. The next question is from the line of Amit Purohit from Elara Capital. Please go ahead. Yes, sir. Thank you for the opportunity and congrats on good margins. I wanted to know on the price increase that you would have taken, one, whenever the input inflation goes up, what was the input inflation? Does the price increase in the institutions bakery side of the business as well as export, is it an easy pass-through? What was the price increase in domestic bakery as well as domestic biscuits? If you could highlight that. State of impact on account of inflation has been around 1-odd% over the last year. 1%-2% approximately. The price increase which we have taken, where the partial impact would have come in Q1 and the balance will come into Q2, because price increase happened during the quarter. The price increase has been on overall as a company around 2%-3%. You can say, in the consumer side of the business, which is- Sure. English Oven and Cremica. About 2%. 2%-3% is the total price increase taken or it is in this quarter it is effective 2%-3%? No, no. Total price increase say taken so far is around 2%-2.5%. Okay. In the consumer business, which is English Oven and Cremica. This quarter has seen a partial impact of that because the price increase was taken during the quarter. Okay. Cost inflation was just 1%, right? On a YOY basis. About 1.5% approximately was the inflationary impact for this quarter. The next quarter is higher, the Q2 is much higher. You see the large part of inflationary impact started coming towards the end of this quarter. Sure. The more challenging quarter is Q2. Okay. just on the freight cost part, I understand we have now a facility in MP, which will cater to both the export as well as the domestic market. Would you be able to quantify the savings? Because earlier you were kind of transporting from the north to JNPT or the export ports. We will be definitely able to quantify the freight difference between Punjab versus- Yeah. of our export shipment. Amit, what I would request that we will definitely get back to you over the mail on this information. I won't have ready information as of now. Sure. Sir, just to get an idea, you indicated 14% margin. I could not understand that. That is you are saying by the end of the quarter it will be closer to 14%, or you were referring to 14% margin for the full year of FY 2027? No, what I was referring to, Amit, like we had delivered 13.1% EBITDA in this quarter. Although the inflation of commodity prices and packaging material has been pretty steep and the large impact is coming in Q2, our endeavor will be to keep improving. Endeavor is that in the Q4, we should get to 14% EBITDA. Right? Sure. Q4 target is to kind of achieve 14% EBITDA for that quarter. Got it. Sorry to interrupt. Mr. Amit, could you please rejoin the queue for any follow-up questions? Sure. Thanks. Thank you. Reminder for all participants, in order to ensure that the management is able to address all of your questions, please limit your questions to two per participant. The next question is from the line of Shirish Pardeshi from Motilal Oswal Financial Services Limited. Please go ahead. Hi, Anoop, sir, and Manu, sir. Good evening. Thank you for the opportunity. I have two questions. The first question in the export market, what is our contribution as on date in the U.S. and Europe separately, and what was that number one year before? So- Yeah. Please go ahead. No, Manu, dear, please. We are today touching close to 23%-25% in U.S. Right? It has built over the last three, four years. I won't have last one year number as of now ready with me, but yes, it has grown over last four years' time. No, Manu sir. In fact, I have the numbers. I think the contribution in last year Q1, it has actually doubled than our last quarter. Last quarter, 26. This quarter, 27, we've actually doubled. Okay. Manu sir, the reason why I was asking, last one year we have seen a lot of tariff issues in the U.S. Actually you're saying our business has doubled. I'm not sure. Doubled means at the percentage what we are doing. U.S. doesn't happen to be our biggest market. Okay. Yeah. From what we were doing, now what we are doing is double. Just one quick check on this. How the U.S. customers are now reacting, because I heard Suvir is talking about we are introducing new products and new segments. Is there any indication in the current context? Because you mentioned Walmart has also picked up some product. I'm just checking, what is the customers giving you feedback in terms of demand? Obviously, the tariff issue will get settled over a period of time. Customers are very optimistic from buying from India. The great part is that even when the tariffs were there, none of the customers stopped working with us on future capabilities and future projects. They've put an immense faith in our organization, looking at our capabilities and the technology that we have. Retailers are still coming down to India. They're visiting us, and a few retailers are co-creating products with us, which are as per the U.S. standard. From my point of view, all the major customers, distributors are very optimistic from buying from India. Okay, that's helpful. My second and last question, we heard in the morning the market leader has rejuvenated the efforts in terms of key states and other states in terms of advertising and in terms of sales restructuring also. In that context, how this competition is behaving in our key states like Upper North and maybe you can say Punjab and other places? Competition continues to be very intense on the biscuit side, and in Upper North especially. From a competition intensity point of view, competition continues to be intense in North India. I just wanted to check, Manu sir, is that require our expense also has to go up in line to maintain the share of voice? We did that. That's why I said, if you remember when I asked to Mr. Harit that our other expenses have gone up and our marketing investments have gone up. Yes, we have done that both on our trade promotion side as well as marketing side. That's really helpful. Thank you and all the best. Thank you. Thank you. The next question is from the line of Anshu from Monarch Networth. Please go ahead. Yeah. Hi, good evening. Yeah. My first question is, what is the geography-wide revenue contribution, and how do you expect this to evolve going forward? Our large part of revenues in general trade comes from North India only. We expect that contribution of North India should continue to, as of now, remain in there. For the next few quarters, I don't see any change. North India and especially the 400 kilometers from our Punjab plant will continue to be the high focus area for us for driving the growth. Thus, contribution of North India, which is about 85-odd%, will continue to be around that. I think we need to speak about the bakery side, because bakery we've invested heavily in. Sorry. In the English Oven side, again, as of now, revenue is about approximately 80% from North India. In the North India also now, I just like to highlight something. In the North India, about three, four years back, our almost 75%-80% of the revenue used to come from NCR, Delhi NCR. We started investing in the up country, which was Haryana, Rajasthan, UP. I'm glad to share that our continuous effort over the last three years to four years investing in the up country territory, our revenues have now become almost equal in the NCR as well as up country. Up country continues as a growth engine. Now in the North India w e are investing in Punjab. We're very confident that Punjab, being one of the very large bakery markets for North India, we should be able to see good gains there over the next few years to come. Now, coming to the West India. West India, our brand was always a preferred brand, a strong brand, but we were short on our capacities. Now we invested in a new plant in Khopoli, which is a state-of-the-art plant, which has been, as said in the speech, it has been commissioned in the March of the last quarter. It is in a stabilization state. We will be doing huge amount of investment on distribution in Bombay, Pune, and some other parts of Maharashtra. It will be a speedy growth for us over the next few years. We literally want to grow at a very high double digit, we will be growing at a very high double digit in the years to come in the western side of India. Next comes our investment in Bangalore. We have shortlisted the plant location, which is getting ready. We will be investing in Bangalore in the new lines, because there again, we were very short on capacity. The Karnataka market and from Bangalore to Chennai market will become a good source of growth. We launched in the last quarter in Hyderabad, which is also kind of moving well. As briefed in the speech also, Calcutta market, where we launched and we have started ramping up there on our English Oven brand as well as on the QSR business. Yes, we see over the next four years, there should be substantial buildup of our business, which is non-north on English Oven side. We have a clear cut aspiration to become a pan-India strong English Oven brand. We'll be walking in that direction, and that's why we're launching in new cities. We added more capacity, a new plant in Bombay. We will be adding in Bangalore, Calcutta started. Over the next few years, definitely we will be a pan-India, a very strong bakery brand in English Oven. Alongside what happened, which was again expressed by MD in the speech, we launch a clean label health brand called Nature Bake. Nature Bake has started ramping up very well. We've just touched a run rate of INR 1 crore revenue per month, we expect that also to ramp up in quarter after quarter and to become a very strong clean label bakery product brand over the next few years' time. I thought I'd just take the opportunity to brief into this. Okay, sir. Thank you. Helpful. Sir, from the export side, U.S. is our biggest market. Is the understanding correct? It is one of the largest markets, U.S., South America, and Africa would be our three largest territories. Okay. What would be the contribution coming from South Africa? I- Our regions. I meant Africa. The split would be somewhere around, all the three markets would be around 20, 25 odd%. But- No, three- U.S. of them, 23, 28. Okay. What would be the- Sorry to interrupt. Ms. Anshu, could you please fall back in the queue for any follow-up questions? This is my second question, ma'am. Can I continue with this? Please go ahead. Yeah. sir, what would be the volume and value growth for the overall and segment-wise? Sure, I'll just take it. The revenue growth and the volume growth has been, in this quarter, high double digit. The whole growth has been largely led by volumes in export. Okay. Thank you. Thank you. The next question is from the line of Deepak from Unifi Capital. Please go ahead. Hello, sir. Thank you for the opportunity. My first question was on the revenue side. Firstly, the B2B business, we've not done fairly well in the last two years. If you can touch upon the issue that we faced in the last two years, and what have you done recently in the current quarter or the past two quarters to correct it, that we're seeing a uptick in revenues. The second thing, sir, in B2C biscuits, a 9% growth on a fairly low base, is that a run rate that we should be working with for the full year, or you see an improvement, given your efforts on distribution, the growth rate to become better going forward? Sir, on the export side, although you had so many challenges, you've done a fairly good job. I just wanted to understand how the momentum is shaping up for the next few quarters. Yeah. Thanks. Yeah. The first question was on the revenue side, right? Yeah, the B2B bakery. Yeah, B2B business, basically B2B Bakery business is a QSR business, and we all know that QSR, across all the QSRs were on a lower growth trajectory. The good news was that all the QSRs were very bullish of investing in India, and they continue to invest in new stores and keep opening. It looks like the tide has turned and, in this quarter there has been a good double-digit growth in this B2B segment, and we're very confident this trend to continue in the coming quarters. That's on the revenue side. On the biscuit side, yes, our clear-cut aim for this full year is to deliver a low teens kind of growth. We are confident that on a four-quarter basis, on a full year basis, we should be able to deliver a low double-digit kind of growth on the biscuit side. On export side, I'll request to take on the momentum. On the momentum, what we're anticipating is a good growth within this quarter as well, and the future quarters where, like we've been seeing it in the past, we're anticipating a mid-teen growth coming in. Okay, sure. I'm assuming that the bakery business and the export business is order book linked, and hence we are confident of growing these two at a high growth rate. Is that assumption right? Sorry, come again. Sir, I'm assuming that the B2B business, both on the bakery side and the biscuit exports, are order book linked. The assumptions of growth that we spoke about are sanguine and could continue for the full year, right? No, just to clarify to you, in both these businesses, we don't have any long order book. We get orders on a month-to-month basis. It's not like projects and other thing where you get six month or nine months orders. There's nothing like that. It's a month-on-month order we get, and based on we deliver. We are talking based on the trends, we were confident based on the trend that these trends should be here to continue. Both are in a bakery business, we should deliver some low teens kind of growth and export we should deliver close to mid-teens kind of growth. Sure. Sir, my last question is on the margin profile. You have done well in this quarter, despite the raw material issue. You're calling out a sequential improvement in the next three quarters. You're also sounding out on the impact that you'll see in the Q2. I just wanted to understand how the sequential improvement is being forecasted for the company despite having a freight issue, despite having the need to do more marketing. There's a raw material inflation in terms of the crude packaging cost and general freight costs. Just wanted to understand, despite all these headwinds, how are we looking at sequential improvement in margins? Okay. As I said that Q2 impact on commodity prices is much sharper. We have taken action, and we are taking actions on the pricing as well as cost side, and I had earlier referred to the Project Impact also. There also the cost savings could kind of accelerate over the coming quarters. Based on that, we may not see a major improvement in the Q2, because the heavy impact coming and the actions which we have taken will compensate partially in the next quarter and fully in the Q3. Based on these projections and the actions taken by us, we're very confident that in the Q4 we want to get to, and we should get to delivering 14% in the Q4. Okay. You announced the Bangalore CapEx, how big could that CapEx be and any size that you could share? Also, sir, can you call out the CapEx amount that we invested for the Kolkata, Maharashtra, and the Indore plant, and what kind of asset turns and what kind of scoping in terms of revenue is possible from the recent CapEx that is done? Okay. In terms of CapEx, which we have invested or investing this year, on current price levels, can cover us up to approximately INR 3,400-3,500 crores. That is it. Okay. B, our Kolkata was a small investment, which plant was commissioned last year. It was a small investment, approximately, which I remember around INR 20 odd crores. C, you asked me how much is the total investment. One is a spillover of investment of last year into this year, capitalization is happening this year. There is a sum bit of new investment which is coming up in this year to build up our ramp up our capacities. Okay. If you could just share the amount for this year, the CapEx that was pending from last year, that is one, and the Bangalore one, how big are we planning the CapEx amount for the Bangalore facility? Bangalore CapEx is still under finalization. In terms of final ordering machines and all that. This year, our approximate investment should be, other than the spillover of last year, this should be close to INR 200 crores. Got it, sir. Sir, also one last question, because we are quite focused on- Sorry to interrupt. Sorry to interrupt, Mr. Deepak. Could you please fall back in the queue for any follow-up questions? Okay, sure. Thanks. Thank you. The next question is from the line of Yash Sonthalia from Edelweiss Public Alternatives. Please go ahead. Hi, team. Thank you for taking my question, and congratulations on good set of numbers. I have two questions. My first question is on very similar line for domestic biscuit business. What I want to understand is basically we always talk about growing in mid-teens volume for the business, but how internally we break this down between gaining market share and growing with the industry. What is our assumed industry growth when we are assuming mid-teens growth for the domestic biscuit volumes? Just come again, what are you asking? How do we break down between Basically, when we say mid-teens volume growth in the domestic biscuit, how we break it down between gaining market share and growing with the industry. Okay. First thing is that we are talking this year to deliver low teens growth, and over the four-year period till 2030, we want to deliver mid-teens kind of growth. That's the aim. In terms of growth, we're confident that because industry is growing at high single digit, and we are planning to achieve a low teens kind of growth, it should definitely reflect in an improvement in our market share in North India. Got it. Sir, my second question is, basically, we are talking about ending our EBITDA margin at 14% as end of this year. From a medium to long-term perspective, for whatever initiatives we are taking and the revenue mix changing for next two to three years, how we see all this translating into our EBITDA margin gains? Over a period of next three to four years, say by 2030 financial year, we want to hit EBITDA closer to 16%. That's the aim as of now. Somewhere between 15%-16%. You see, only thing which we need to keep in mind that, over the next four years' time, we're also targeting a very aggressive growth in the next four financial years, leaving aside this financial. We're targeting aggressive growth, and we want to hit a next milestone. Like we hit a milestone of INR 2,000 crores this year, we want to hit a next milestone of INR 4,000 crores. There's a fair amount of investment which will also go in expanding our distribution, in marketing, opening up new geographies there. Got it. Yes, on a long-term basis, that getting closer to 16% over next four years' time would be the aim. Got it, sir. Sir, just one last follow-up on the same. When we are saying we are seeing a huge aggressive growth for next three to four years, ideally, how should we see or how should we keep a tab on it from basically domestic biscuit perspective? What things should we track, distribution reach, or what you think will lead to this growth? You see, as I explained earlier, the driver will be three, the triangular approach. One is distribution, second is marketing investments or making Cremica brand stronger. Just to update, we are in the process of finalizing a brand study also. Third is driving the premium category, where we are investing now behind premium creams and premium cookies. These three are the levers which will be driver of revenue growth over the next few years to come. Got it. Thanks a lot, sir. Thank you. The next question is from the line of Naveen from ithoughtPMS. Reminder for all participants, please restrict your questions in order for the management to answer all of them. Thank you. Please go ahead, Mr. Naveen. Hi, sir. Am I audible? Yeah. Yeah. Congratulations on retail numbers. Just a couple of questions. Just regarding the excise duty situation that we had discussed over the past couple of quarters. We were getting some rebates, and they were taken off. What's the situation there? In general, as like an extension to that question, could you also discuss our key markets, what kind of excise duty situation we have currently going on? Sorry, just clarify your question once again. You're talking about regarding some of our export incentive or? Yes. My understanding is that we used to have some incentives that we don't anymore. Right. We were looking for ways to remedy that. As an extension to that question, I just wanted you to maybe give me a little more details on the key, so the U.S., EU, and Africa in general. What the duty structure there is like and how you're getting this incentive, or you used to get it. The incentives are still not happening. I mean, nothing on the incentive side. From the government yet. Repeat your second question, please. No, I just wanted to understand what kind of duties you're paying for each market. We don't pay duties. The duties are being paid by the importer, right? Currently with the FTA is happening, so New Zealand is a market for us. FTA has just happened there. U.K. is turning out to be a good market for us, so we're there now. We are looking at bigger gains. Wherever FTAs are happening. Otherwise, the importer has to pay the duties. We will actually not know exactly what duties each of the countries are paying. Got it. Yeah. One more thing that I just wanted to clarify is, a couple of calls back or even the last call, we discussed the CapEx cycle, right? We were supposed to be over with one big CapEx cycle and investments were supposed to moderate. Maybe, long term view, next five years. I understand that our current revenue potential with the capacity that we have and we are going to add is around INR 3,500 crore, right? We aspire to do, let's just say something around INR 4,000 crore by FY 2030. Considering the addition of some small capacity in the future, what should we expect the CapEx spend rate to be like? Where will the funding come from? Any clarity on that would be great. In terms of capacity, the capacity which I shared with you, with Decas, that's on the current prices, right? Secondly, it doesn't include Bangalore, right? That will get added to that. Okay. These two will be additional. Plus, as our business is growing, looks like there'll be definitely need to invest in some more capacities to grow in those respective territories, right? We are in the process of working out. In terms of adding cap and in terms of cash flow side, if you would have looked at our debt equity ratio is more than comfortable. We normally do a bridge between borrowing and investing our own money. Even in this year, the additional CapEx which we are planning to do in this particular year, it will be almost 60% coming out of our own funds and 40% would be borrowed funds. That we do a mix. As you can see, our debt equity ratio continues to be healthy and comfortable. Got it, sir. Thank you. Maybe just one bookkeeping question, if I can squeeze it in. Sorry to interrupt. Right. Could you please fall back in the queue for any follow-up? Sure. Thanks a lot. Yeah, thanks a lot. Sure. The next question is from the line of Bhavya Gandhi from Bajaj Alternate Investment Management Limited. Please go ahead. Sure. Hi, thanks for the opportunity. Just wanted to understand, what would be the contract manufacturing mix in the overall top line on full year basis? If you can provide some number. On the export side, what would be the mix? Our contract manufacturing, our focus has been growing our business. It's just about 1.5% now, right? As far as export contribution is concerned, export contribution now is kind of touching almost close to 35%. Okay. Sir, just your thoughts, instead of focusing on in-house manufacturing, wouldn't it make more sense to invest more on the brand side because Cremica and English Oven are known brands, increase the distribution, use the capital more efficiently on the branding side? Any thoughts on that side? First thing, should we invest more on brand? 100% we should. If you look at our trajectory over last four years, we have more than doubled our investment on brand and objective is to keep enhancing that, right? We on our consumer brand, approximately, if I remember the number, we now almost touching 4% on our consumer businesses of Cremica and English Oven, objective is to keep further strengthening and moving up. Coming to the manufacturing, yes, we do use some bit of contract manufacturing, not much. In future, should we be using a little more than what we are doing today? Maybe yes. I think that one very important thing to understand from us, right yesterday also I was in market, somewhere in up country or North India, where both English Oven and Cremica were there. One thing which creates a differentiation for us is quality of our products. The quality of our product is the biggest driver. Like I was giving you example of Calcutta. Calcutta, nobody knows our brand English Oven, right? We launched it. Consumers are trying it. Consumers are loving it. I did a Calcutta market 30 days back and same is the response on the quick commerce sites, right? Yes, we're very conscious of quality and the standard we deliver to our consumers because that's been the forte and that's a driver of growth for us. Should we leverage contract manufacturing more? Definitely, we are planning that. Got it. Fair enough, sir. Thank you so much. Thank you so much. That's it from my end. Thank you. Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand over to the management for closing remarks. Over to you. 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 MUFG Intime, our investor relation partners. Thank you so much. On behalf of Mrs. Bectors Food Specialities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.