Bikaji Foods International Limited (BIKAJI) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Bikaji Foods International Q1-FI27 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 10-0 on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ambes Diwali. Thank you, and over to you, Ambes. Thank you. Sorry to interrupt. Sorry to interrupt. Ambesh, your line is not coming out clear. Could you please arrange your handset?

Good afternoon, everyone, and thank you for joining the BKG Force International Q1FY-27 on its conference call. From the management team, we have with us Mr. Rishab Jain, CFO, and Mr. Manoj Bama, CEO. I will now request Mr. Rishab Jain to take us through the Q-opening remarks. After which, we will have the floor open for Q&A sessions. Thank you, and over to you, sir.

So, thank you very much. Thank you to all the investors. So, this quarter we've grown close to two and a half percent. This quarter is a studio of two hours where in first 45 days, there has been supply and production issues for two reasons largely. One, of course, our chairman is no more speaker. So, there are three, four days of plant impact across Japan, India. And number two, there were Bengali elections. So, there were a lot of movement of Bengali labor. But, both 45 days. We've seen great demand across all products range, be it ethnic snacks, special snacks. So, from primary length, we've grown at 12.5%, but what we see from secondary, so we've seen good secondary tertiary overall in past 45 days also. June, July, we've seen good growth in demand and overall this activity, we're entering into activity this month, being Rafi and next Diwali. So, we are getting very good response from our organized retailers, seeing good growth and maintaining 15% plus growth overall this year. That's what our target is. Now, from bottom line, what we've seen is that there are multiple pressures, be it edible oil due to this geopolitical issue, this rainfall, less rainfall, so it is also having some impact on... Few pulses, wheat, moor dal, and chana dal, all are rising, all have started increasing this year. But yeah, we have taken two price rise in the last four months, and we are trying to maintain and passing all the price to the consumer. We have taken one MRT increase in April, but still now we are not going to have an MRT increase. What we see that in Diwali will maintain this price, what we are doing, because at the same time, too, effectively, a lot of gift box and everything has been started, so that's what's number one. Coming to the challenge, this quarter, our EBITDA was close to 13.5%, which is last quarter. Last quarter, EBITDA was close to 12.2%, so there was a good increase in EBITDA margin compared to last quarter. From capacity length, largely, the new ASRS investment has gone live this month, so we have very close to one next project of transition in Bikane, where there's a lot of supply chain users that will be there going forward, where it will keep close additional 1.2, 1.3 lots of extra to use on supply chain. This will help in overall maintaining this. Minimum stock level at our key stock point.

As one of our growth driver, what we have identified is the increase in reach, so we continue to grow our direct coverage, and as we end this quarter, we are at 370,000 outlets plus as a direct peak, adding 17,000 outlets in quarter one. Talking about a marketing investment, in fact, if you look at them in this quarter, the gross margins are up, whereas EBITDA, it has split down, but that's primarily one of the key factors also is that we invested heavily in this quarter as well to build up our momentum for the festive season coming ahead of us. The Kankaj Tripathi campaign, we aired in this quarter in May, which was for UT. Then some launches of our Wakes and Snacks, new products, what we did, participation in our international exhibitions, as always what we do. Coming to the business, if we look at, so delivered an overall volume growth of 7.7% and a top line of value of 12.5% growth. Within this, the ethnic snacks have grown at 11.4%, racism snacks at 21.3%, streets at 4.4%. Papa was a bit challenging, you know, for the quarter, for the reasons that a little bit of early monsoons, because June also we saw that stuff, and what happens is that being hand-made, Papa, if there are, you know, the monsoon impacts our production per se.

Talking about business from the geography,

look at core states have grown close to 11%, focus states grown close to 19%, and other states have 5.6%. Exports is the only channel where we, for the first time, we have seen that almost platic or a negative growth of 2.2%, which primarily is on account of the US tariff differences, you know, which is happening. And more importantly, is the crude oil prices going up, which has taken up the rates 2 to 3, it's kind of a stuff. So, which is what it refers to certain shipments. That's where it is. Otherwise, we look at in terms of demand, export stays as much strong for us. The mix between family and impulse stock we look at. Family stock has grown at 11% while impulse at 10.5%.

The retail business performance that we talk about,

this has grown at 71.8% of YY, and our stores have increased from 15 to 28 over one year.

So, from the top-line growth perspective, over last quarter, our EBITDA has grown close to 13% and the top-line has grown close to 2%.

So, EBITDA has been improved compared to last quarter. So, that's all from the presentation. Thank you for inviting me and happy to answer all of you.

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 1 on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use hand press 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 Abneesh Roy from Noobama Institutional Equities. Please go ahead.

Yeah, thank you. My first question is on the retail business. So, if you could tell us next one year what will be the plan in terms of the retail expansion, and for the different formats, if you could give us some numbers in Q1 on the growth and the margins, and any learnings you have where some tweaking of the business model is needed in any of the formats.

So, from within, we are mainly focusing on THS as of now, and from THS, we are mainly focusing on THS as of now. They are doing, they will open close to 10 stores this year, and largely what we see that this business can become, can grow at 50-50% year on year for next 3-4 years. That's the plan we have as of now. And from 28 stores to plus 35 stores this year, and 50 stores in next two and a half years. That's the plan in DHS. And from Bikari stores perspective, we are opening two stores this year. We are also working on, basically, from KHF lens. Of course, they are retail, but they are mainly focusing on stretch. So, the very premium fleets and gifting, that's a big business for them. And that's where the first source we are targeting 700 store of business from THF. That's the store of land.

So, in terms of Q1, I think you have the only SMCB company which is highlighted I think on the Bengal election impact on the manpower. So, any long term risk mitigation you can do because frankly this is a solvable problem and no other company has highlighted. So, if you can tell us why only you have faced this issue.

So largely in Vikane, so you'll see your snacks is manufacturing across all plant in India. So snacks is grown at plus 20% this quarter. So we'll not have an issue. But in Vikane, largely there are major Bengali laborers which are there in Vikane. And mainly Bhujia, we manufacture only in Vikane, both Bhujia. So that's how we got impacted. But overall, what we are targeting that we're also seeing, we're also, and we'll learn from this and we're targeting this year that we'll manufacture Bhujia in two plants this year. I mean, try to manage the same quality wear, so that's what mainly the main issue was.

Sir, last question on any of the growth states, except those three states where you have a strong presence. If you could highlight where there has been slightly weaker performance and expectations, and which are the faster growing states, because yes, those states are growing faster than your three core states, but still I think the gap isn't too much, and in fact, one or two quarters, those three states are in time growing faster also. So, if you could tell us the partnership and what are the learnings and the research.

So, hi, this is Manoj. So, if you look at focus states have almost grown two ways to what core states have grown, so that's where it is. Within focus states, if you look at the states like UP, where we have made investment as well, has really paid us dividend back, and the fantastic growth we have got from there. And across all focus states, growth is strong, not that any of the state has underperformed for that reason. 4 states for the fact what nature biology spoke in quarter 1. Within quarter 1 also, if you look at the first half of quarter 1, in April, there we lost our chairman and, you know, the mark of respect before this, there was a shutdown. So, we could not make supplies, and ours is a very, very, you know, a simply tube supply, wherein, which essentially means that it's not any week high, any stuff. So, on a day-to-day basis, we do almost equal supplies throughout the month. So, any loss, no impact, that was one, on account of shipment, and also, the Bengali labor, Most of it is that stuff, and in April, until mid-May, because of the Bengal elections, MSIR, all those stuff, so we had no choice then to let them go, and they went, and that disrupted our supply. And which impacted more of Rajasthan, and you know, these states, the core one stuff. Focus was still managed, because we have our depots across, we had ships out there, and they continue to get those stuff. So those who are there, learning in terms of it, again, one is that we realize that any catastrophe, any such and such thing comes up, and because he gets now isolated or disconnected, so it would impact our overall business. And hence, we are decentralizing it. So, already started working on that this Bikaneri Bhutia, not only in Bikaneri, will produce outside Bikaneri as well. So, those were few learnings, which we will build in our plans and strategy going forward.

So, one quick last follow-up on the demand side and competition. So, if you could tell us on QuickCommerce, is there a very high competition? Because I am seeing that QuickCommerce is now launching their own private label. For example, CG has got the brand Noise and they have offerings across Max and many others and different teams. If you could generally comment on BigCommerce performance, is it meeting expectation? Of course, everyone is going very strongly. So that is not the right metric. The right metric is, is it going as per the plans and is your market share in BigCommerce higher than your family market share?

Yeah. So, I think the right method to look at how are we doing it is in terms of at what rate this category is going on that platform and within that, are we over-indexed or under-indexed? That would talk about gaining share or losing share on the platform. So, first, let me talk about play of this strategy on the QCOM platform. So, yes, it is exponentially growing, and so are we as well, if you look at in Ottawa, it's upwards of 100% in the QCOM value. Second thing, what you spoke about on the private level of their own brand, so this, any of the, you know, format, be it modern day, you know, Q-form, where you feel that the consumer or shopper portfolios are high, they tend to launch their own brand and show what 3G and others would have started doing that stuff. But it really does not work as much at the end of the day, you know, because the difference between a brand and their own private label brand is not as much at the end, consumer or the shopper stays back with the brand still. So that's what it is. Well, it's too early to make a statement at this point in time, but we are going faster or in line with what these channels are going for this category in this time.

Thank you very much.

The next question is from the line of Nitin from HTSU Securities. Please go ahead.

Hi, thanks for taking my question. My first question pertains to like what led to surging other operating costs. Like you have highlighted there were brand investment, but just wanted to have a more sense on like what are the component to for the surge in the other operating expenses. Plus also like if you can highlight how the spending going to be for the rest of the year.

So, from other operation expense perspective, so there are multiple things where it is due to this geopolitical issue with the call, total price is also increased in the last 4-5 months. So, close to 0.3-0.4 percent, at least 40 days when manufacturing costs have been increased. So, from ad cost perspective, in last quarter, we have not done significant ads. This quarter, we have done some sales promotion activity, some ads. So, this has given close to 40-50 base margin. That's two points where overall below cost margin is affected.

And how should we, like, build this, like, as the business plan is going ahead for the rest of the year?

Overall, our year target is close to 2%. That target will maintain this year. And from overall planning perspective.

Okay, thank you. And my second question pertains to like I have seen some of the product launches we are doing expanding the extrude range plus getting into non-farm oil offering. So just wanted to know what the how material is the segment and what are thoughts and what are plan aspirations.

So, I think this is being future ready and looking at the demand, what is coming up from the G&G or the new generation and that stuff. While the mark or the bottom of the pyramid will always be very, very heavy, this would be icing on the cake and we are ready in terms of to do that stuff. We have piloted it on the QCOM channel because that's where they are sold more, the new segment. But this would not be a substantial share of business for us going forward.

Sure, thank you. And my last question pertains to your package week. Like, how we think, like, the growth is going to be for this year. So, like, Q2 plus Q3 is the main season. So, like, for last two years, there is a 7% revenue fee area. And prior to that, we were growing at 15-20% for the combined two quarters. And so, like, from that length, like, given the capacity, how should we build a growth for this year amid the festive season?

So, I think what we are looking at is that when we speak on the two components to Facebook products, one is fleets, the other is our gift pack. So, what we look at is that now the fleets should grow at about 12 to 13% kind of a grow over last year, this quarter to quarter, three foot together. And the gifting would be even higher in this cup. So, some total gifting would be pretty good in this cup and say upwards of about 17-18% grow.

Okay, so this is really helpful. And going ahead, like, our aspiration will be growing in mid-team or like you want to sort of accelerate to high-team types of growth for the full year?

So we'll definitely look at for high-team, but mid-team, as we speak, you know, we see clarity on that stuff that, say, close to about 16 minus percent should be the growth what we should do. We should be delivering quarter on quarter.

Sure, sir. Thanks a lot and all the very best.

Thank you very much. The next question is from the line of Anand Shah from Access Capital. Please go ahead.

We have lost the line for the last participant.

We will be moving on the second row. The next question is from the line of Porsi Pataki from IIFL Securities. Please go ahead.

Hi, sir. Just wanted to know this production sort of outage that we had for four or five days. Did that really impact our team? Because this happened in April. You had two months to recover the production. It's not as if we are running at 100% capacity. So why should it impact our top-line growth?

So if you look at the progression of our billing, it is not like that everything is skewed towards last. It's not just about production in the month of April, it's more about dispatches. That dispatches were shut for three to four days.

Yeah, but I mean, there is a pipeline, right? There is a distributor. Yes, so what I was saying is, there is a distributor, wholesaler, retailer in the overall trade pipeline. You would have maybe, don't know how much, but at least a 15-day sort of stock. If you are stopping dispatch for 5 days, that trade pipeline falls to 10 days. Later on, when your production is online, would you not want to restore that pipeline back to 15 days?

So, exactly, that's what we said, that if we look at the, so there is a story of two halves, first 45 days and second 45 days. What we are presenting here is the control for 30 days. So, first 45 days was even higher, we made up in the rest of the, no, so, June was the ever highest kind of a delivery what we did, and July continues with that momentum. This is what exactly we are saying.

Understood, sir. What I just wanted to understand is, for the quarter as a whole, April, May, June quarter, has the production loss of five days impacted your sales for the quarter? That's all I wanted to know.

Yeah, so largely one thing, but I suppose this is lost, we have lost because there was also labor issue going on during that time. So it was not the case that we, in a normal scenario, I suppose, we will double over turnover day 7, day night shift, but that was not the case in 18th of May. We were able to understand the point of minimal production. So there were two activities going on apparently.

Okay, understood. Secondly, I just wanted to first congratulate you on the ramp-up of your subsidiaries. They are doing really well. But question on the standalone business. If I look at this quarter, okay, let's ignore this quarter because there was labor issue, production shortage, etc. But even if I look at last year, full year, the standalone business, which is the core bread and butter, snacks, sweets, poppers, etc., that has grown only at around 11%. So what is it that is preventing growth higher? Because earlier when we used to speak, 3-4 years earlier, the understanding was that the overall industry itself is growing at low double digit and then there is a share of organized gain from unorganized and then within organized also there are some fringe players and we will gain from that also. So, the growth expectation was like 15 to 17%, but it is coming closer to like 11% odd. So, just wanted to understand what is it that has changed versus that expectation in terms of the delivery. Yeah.

So, one is that if we look at, so, two years back, the category was going a double-digit curve. Whereas, if you look at the last two years, it's been a single-digit curve. And not just for the stacking category, overall, SMCG, as in SMCG, if you look at food sparring, two categories, stacking still was better off. That's what it was. Last year, also, if you look at the first curve, which is quarter 1, quarter 2, were the least quarters on account of the heavy rains and all those issues which came up. It was post-GST relief, what you said, there is a clear uptick thereafter. That's what is the time wherein, you know, the GST moved from 12% to 5% that relieved the inflation, What has gone up, you know, these benefits were passed back to the Kanjuka, and we saw the momentum moving up. It is not just for Bikaji, we would say that the overall category growth has also moved up in that term. For us, particularly these 45 days were the decreasing factor, and that also purely from a primary level. When we look at our secondary, when we look at our inventories, at our distributors, they have got depleted. And as you are asking that, you know, if you are shut for a few days and then you start, so the way you cut down on your inventories, similarly, building up inventory also takes up time. It is not an overnight factor that you do that stuff. So, therefore, this gives us comfort that, you know, the numbers speak louder than for what I can say. The way June came up, the way July obviously already in, the things are moving up, it's all positive, and mid-teams towards high-teams would be the number we'll be able to deliver.

Got it, got it. And just one question on the PLI. This is, I think, the last year where you will get the PLI of approximately 50 crore, and next year it will not be there. So, at the EBITDA level, this 50 crore will be a hit. So, will you be able to either partially or fully mitigate it through some measures?

So, from PLIN, currently, this year, it will be contributing close to 150 basis points in overall EBITDA. Right. So, what we're targeting, it will take 52.75 based on improvement will take in overpricing and gross margin. But it will take one and half two years to regain at the original market.

Got it. Got it, sir. Thank you. That's all from me. All the best.

Thank you. The next question is from the line of Shirish Pardeshi from Motilal, Oswal Financial Services Ltd. Please go ahead.

Manoj, Bishop, good afternoon. Thank you for the opportunity. Manoj, just a quick question of the D2C brands are penetrating much faster than they are reporting a very strong growth. In your conversation, can you share what kind of packaged food contribution on the top three platforms and what you've ever shared in that?

Hi, Jarek. So, see, the way they play is only on the QCOM platform. That's where they exist, right? If you look at overall contribution of this QCOM to overall category is low single digits. That's the overall, you know, the time where they're playing. Now, here, if you look at the top brands would contribute to about 50% of their category business and the balance 50 is from B2C and on the other small brands because this is where these newcomers make their bottom line and the branded stuff gets them the top line kind of first job. Now, if you talk about the market share interest, this is where, yes, they would have some reasonable and certain, you know, brands have better traction and vision their product range. Also, you will see that they will have one or two signature products kind of a term, which is doing pretty well on that stuff. This is how it is. But in terms of when we speak about these brands, so the bottom line of their sustainability comes up as a real question. It's a handful of brands that you could sustain in this environment.

So I was more curious to understand. Because even if I look at the BigCommerce basket, there are at least six, seven brands which has crossed almost 100 crore era. Now, are they selling on the price point and quantity, or are they selling on the ingredient and safety and healthy? I mean, I'm just trying to understand more curious, what is it that they are getting right?

So, Kirish, it's a mix of both, right? So, one is perception, narrative, that gets you, you know, try, and once you try, you like it, you retreat in that term. So, this is what, so it's a mix of both, one followed by another.

Okay. Rishabh, we have done some exchange filing on the Nepal project. Can you quickly tell me what is the update now where we think we will go ahead?

So, from Nepal length, we have done dairy, and we have done all the paperwork. Now, the plant construction is getting ready. So, both parties in this process will shrink over each. And by, I think, in the next eight to nine months, the plant will get started. And we will get local production from Nepal. That's the intention. So, this is on eastern side, or this is close to Guarapur? Nepal, it's near, it's between Birgand and Kathmandu.

Okay.

Okay.

My other question is on the upcoming season, and we see that THS is the growth driver which we have found. But I am more curious, I mean, when I look at the mass of the S-TWI stores. We are filing between 8 and 9 crore annual run rate for each store. So, when you are opening new stores, can you share some more math around the economy of scale or maybe some square feet and which are the localities and geographies you are responding?

So, from the Asia sense, we are largely focusing on type 2 cities of India. As of now, we are not getting the type 2 cities. There are a lot of other places. So, that's the focus, and normally we are targeting 60% of sales. We cannot say only USA is a retail store, where we usually focus on getting this thing right, premium speed, and that's contributing 60-70% of sales. That's the focus, and from bottom line, there is also... Every show is close to 25% plus 4-level EBITDA. So, currently, we are very conscious of the team, but overall, this research, in most 2-4 years, can become 15-16% of EBITDA, with 40-60% of EBITDA. That's the position that we are targeting in this research. Okay, that's confirmed.

My last question, in the last two quarters, there is something other, and we had GSB rationalization, inventory issues. In the context when we see the raw metal prices are inching up, can you share, Manoj, some thoughts on the demand, how it is panning out, and are we taking or have we taken any price increases in the last 30 days or are we going to take any price increases in the next 30 days?

So, Sherej, we have taken two price increase in last quarter, last 90 days as we look at price, so to assess for what inflation or what price increase we could anticipate or has happened. Talking in terms of demand, pretty good demand when we speak to these two comm channels, these two modern trade, and I'm talking these two, more because they are organized retail, and they also build their plans, their devalued plans, and all that stuff. So, very bullish plans they have that gives us quite a satisfaction and confidence in terms of the business growth service. Similarly, the commitment when we see the demand plans for next few months are very much positive. So this looks to be now the good times ahead. And my next statement is, we are not planning to take any price increase, because now we have all prices, all that stuff signed off with the large accounts as well, so we will not be doing that stuff, unless and until something, some catastrophic comes out.

Okay, just one quick follow-up, any good reason why our exports has declined?

So, I mean, the only reason I would say is that the Trump stuff, the policies, the tariffs was coming up a little bit of uncertainty, but that's still we were living with for quite a while now. I think the biggest one was the repercussions of this crude oil prices going up and the availability of these containers and all this stuff. Lycos have gone three times when they were booked and now in time of 18. So there is some delays happening. That's the only factor. Looking at demand, there's no issue with that stuff. It's the dispatcher's deployment.

Okay. Thank you, and all the best.

Thanks.

Thank you. The next question is from the line of Abhishek Matar from Systematics Group. Please go ahead.

Yeah, hi sir. Thank you for the opportunity. Sir, we have managed to expand gross margins in what was a difficult quarter. But we are now saying that we are seeing some inflation in pulses also in edible oils. But we will not take another price hike till the festive season. So putting this all together, what does it mean for the near term margins for the second quarter and also for the full year, what is our margin outlook now?

So, second quarter will be very high on street, which is high in gross margin, overall, and look on numbers also, second quarter will be heavy. So, there will be lot of efficiency, lot of, because there is big score, which will not increase as top-end grade. So, even if gross margin will increase, our EBITDA will improve on that plan.

And for the four years, sir?

So from courier length, we are targeting close to between 13.5% margin. That's the target we are taking.

Sorry, 13 to 13.5 is it?

Yeah, yeah.

Got it. And secondly, sir, just on the bakery segment, I know it's quite a small segment, but what would be the size now in terms of ARR for the bakery segment? And is it entirely comprised of exports or is there some domestic component now? I think I'm talking about only BKG Bakes, that's where our bakery business is.

So currently, so it will get started this season. It is not started full-size production. Trials are going on on the R&D and everything. So but yeah, this year we are not taking any big number in our business plan. Maybe next, by end of this year, there will be two quarters where we will start production. We will see it. But there will be two, three opportunities. One is export, one is our own e-com-e-com channel where we will supply. And one is Urika. So that's three channels where we are targeting. But yeah, overall, in next quarter, we'll see how this goes, and next year, we'll get some numbers in overall.

Got it, sir. Thanks, that's it for me. Thanks for all the best.

Thank you.

Thank you very much. Reminder for all participants, please press star and one to ask a question. Participants who wish to ask a question, please press star and one. The next question is from the line of Anand Shah from Access Capital. Please go ahead.

Yeah, hi, team. Just a few questions, right? I mean, one clarification, this margin guidance you gave, 13, 13.5, which is ex-PRI? This is including PRI. Including PRI. So, this is lower, you are saying? I mean, Q1 is a 30.5, right? I mean, you said your margin would remain sort of stable or so, and then your overall leverage is low.

In next two quarters, edge will be heavy. That's why you add. HADS will be here, right? Yeah, because next two quarters, because it will be the entry to FSUD, so FNs will be here, so overall, that's the target of the station.

Okay. Okay. That is one. And secondly, sir, I want to know on, I mean, your international overall expansion, I mean, you invested in Bigaji Foods, U.S. also, and then now in Nepal, and also subsequently. So, I mean, if you take a two-three-year picture, what kind of incremental are you looking at when you are looking from these devis or investments?

So, in Nepal, if you look at the even in current state also, we do business here, right? It is only when we do JV, we will produce locally. So, and that would save some money in terms of, you know, those import duties and would make us more competitive in that stuff. It will help grow faster. And so, in which to grow, that would be the capability for Nepal market. For U.S. when we talk about, it's an investment what we have made in the dividends what we will see over next few years. And what we believe is that the U.S. business should be about three times now in next few years kind of as we set our things in place. So, huge growth opportunity in exports.

Okay, but is there a number right now? I mean, that how much you are doing and in three years, how much this can become? I mean, from all these...

So, if you look at currently, it's about 3 to 4% business contribution. While overall business will also grow, but in 3 to 4 years' time, you will see that this business contribution would be about, close to about 5.56% to our overall business.

Okay, okay. Thank you. Thank you.

Thank you. The next question is from the line of Soham Samantha from Mutilal Usual Financial Services Limited. Please go ahead.

Yeah, thanks. Thanks for the opportunity. I just wanted to say, when can we expect these listings kind of growth in poor market? Is it from Q2 or maybe in H2? How do you expect? Sorry, can you please repeat? You are not audible. Can you hear me? Now I can hear you, yeah. So basically, I am asking from when we are expecting that Listfield's kind of growth will be back in our code market.

So, mid-team, see, core, you will see this quarter onwards it's still. That's where it will be. But core would be not growing as much because core growth would be in line with at what rate category is growing there. Because already we have a high market share. So, this will be in line. It is only the focus markets where we have a very, you know, we are a small share and there are growth would be disproportionately high. That's the reason. So, what we plan in our budget as well, what we look at, it is the core market between 13 to 13 percent.

Now, in terms of focus market, like UP is one of our drivers always. In this quarter, what was the growth in UP market?

It was about 37%.

37% growth in UP? Yeah, growth to 37%. Yeah. And how do you look this market for a full year? 50% plus will continue?

So, in our budget, 30% plus is the budget. Now, a little bit of, you know, here and there between quarters will happen, but here that I think at 11, upwards of 30% is up.

Got it. And whatever happened in export, I know it's a one-off. But going forward, can you expect, again, 20% or 30% of growth momentum will continue in export market?

See, export would be, the US is a very, very big share of business in our export market. With the rate charges, it is three times for what it was about four months back. Now, in such time, this settles down. We will see this no disruption. Now, this may get resolved in a quarter's time, as growth may take a couple of quarters, that's what we cannot anticipate at that point in time. But yes, in a long term, if you look at this, you will see that these kind of growth will come from your market.

Got it. And last thing from my side, like many were saying that first half, first 45 days, next 45 days. So, if you wake up 12.5% kind of growth, out of that, what was the last 45 days growth number?

So, if you look at the last 45 days growth would be around, say, 20% kind of growth.

Okay. Okay. That was good to hear. Thank you, sir. Thank you, sir.

Thank you. The next question is from the line of Vijay Zhang from Systematics Group. Please go ahead.

Thank you, sir. Thank you for the opportunity. Sir, my first question is on other operating income of 48 euros. So, how much is from the PRI in this class? Sorry? Your voice is not clear. Now, is it clear, sir? Yeah, please. Sir Sir, out of 14 crore of other operating income, how much is from the EFBI? Two and a half crore. Fifty crore. We can look in this year. Fifty crore. Fifty crore? Okay. Fifty. Yeah. Divide and equal in four quarters. Okay, and the second question, sir, may I know, our upward segment will decline by 6.5%, while in 1.226, it grew by 6%, and in 1.226, it grew by 14%.

So what happened this quarter to upward category, that's how I wanted to know. Papa, as I said, you know, most of

it is handmade, and highly dependent on, you know, the weather condition, monsoons, and all that stuff. So, those are the factors which impact Papa's growth. What we see now this time also a little disrupted of the disruption in the monsoons. When it rains, you know, it doesn't get dried, so therefore it becomes a production supply issue kind of work now. So we'll try and make up in this quarter, but again, it's not as big a business for us. So therefore, it does not impact our overall top line and bottom line. It's a six-person business contribution to our overall business.

Okay. Okay, sir. Thank you, sir. Yeah.

Thank you. The next question is from the line of Abhishev Matar from Systematics Group. Please go ahead.

Yeah, hi. So, thank you for the follow-up opportunity. Rishabhra, just coming back to that margin guidance of 13.5% that you spoke about. So, we have talked of maybe a 15% plus kind of a growth aspiration, and we have talked of maintaining ad spends at about 2% of sales this year, but we are also saying that A&P will be higher in the coming few quarters. Also, I think a while back on the media interview on CMBCR, management has mentioned an aspiration of 15% operating margin. These numbers don't seem to be tangled up together as you can just clarify on these.

No, so, 15% margin target is not for this year, it's a long-term target that we want to beat 15% next three years. That's the plan here. This year, we'll have 15.5 and at least 50 weeks on improvement every year on the year. That's the target we're taking on as well here. And the next two quarters, of course, this year, we've been impacted by multiple factors, but we see ease-off in next two quarters, and this will help us in overall getting margin back to a normal target.

All right, so maybe I'll take it off then. Thanks. Thank you.

Thank you very much. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.

Thank you, gentlemen, for taking time out and joining us for this call. It was nice interacting to each of you, and we tried to answer the questions which came up. We shall be happy to take any follow-up questions which come up, and our team will get back to you with your answers. Thank you very much, and happy season air. Bye.

On behalf of Bikaji Foods International Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.