Mrs. Bectors Food Specialities Limited

Anoop Bector

MANAGING DIRECTOR,

Manu Talwar

CHIEF EXECUTIVE

Ishaan Bector

WHOLE-TIME DIRECTOR,

Suvir Bector

WHOLE-TIME DIRECTOR,

Parveen Kumar Goel

WHOLE-TIME

33%

ayed due to COVID-19 pandemic. Coming to our Q1 FY '23 performance, we witnessed revenue growth of 33% with strong growth momentum across both the biscuits and the bakery segment. I'm pleased to share

INR 301 crore

Now I will discuss the financial performance. The consolidated revenues for the quarter stood at INR 301 crore versus INR 226 crore in Q1 FY '23. Thus, registering a growth of 32.9% on a year-on-year basis.

INR 226 crore

he financial performance. The consolidated revenues for the quarter stood at INR 301 crore versus INR 226 crore in Q1 FY '23. Thus, registering a growth of 32.9% on a year-on-year basis. Biscuits On the bis

32.9%

he quarter stood at INR 301 crore versus INR 226 crore in Q1 FY '23. Thus, registering a growth of 32.9% on a year-on-year basis. Biscuits On the biscuit side, our Biscuits segment reported a revenue

24%

-on-year basis. Biscuits On the biscuit side, our Biscuits segment reported a revenue growth of 24%, which stood at INR 178 crore in Q1 FY '23 as compared to INR 144 crore in Q1 FY '22. This segment

INR 178 crore

cuits On the biscuit side, our Biscuits segment reported a revenue growth of 24%, which stood at INR 178 crore in Q1 FY '23 as compared to INR 144 crore in Q1 FY '22. This segment has grown by 26% over Q1 FY '

INR 144 crore

segment reported a revenue growth of 24%, which stood at INR 178 crore in Q1 FY '23 as compared to INR 144 crore in Q1 FY '22. This segment has grown by 26% over Q1 FY '21. Our domestic Biscuit segment and expor

26%

t INR 178 crore in Q1 FY '23 as compared to INR 144 crore in Q1 FY '22. This segment has grown by 26% over Q1 FY '21. Our domestic Biscuit segment and export witnessed higher double-digit growth in Q1

INR 107 crore

ercy Panthaki: Manu Talwar: Bakery In the Bakery segment, the bakery segment revenue stood at INR 107 crore against INR 69 crore in Q1 FY '23 thus registering a growth 56% compared to Q1 FY '22, including r

INR 69 crore

Talwar: Bakery In the Bakery segment, the bakery segment revenue stood at INR 107 crore against INR 69 crore in Q1 FY '23 thus registering a growth 56% compared to Q1 FY '22, including retail bakery and inst

56%

segment revenue stood at INR 107 crore against INR 69 crore in Q1 FY '23 thus registering a growth 56% compared to Q1 FY '22, including retail bakery and institutional segment. Bakery segment has grown

114%

pared to Q1 FY '22, including retail bakery and institutional segment. Bakery segment has grown by 114% as compared to Q1 FY '21 both retail and institutional bakery have grown by higher double-digit in

“Project got delayed due to COVID-19 pandemic.”

“This coupled with price hikes is expected to have a positive effect on our EBITDA margins going forward.”

“Technology will play a critical role going forward and as a result, Mrs.”

“Sir, could you give us some idea on the domestic biscuits business, what is the growth on a Y-o-Y as well as on a three-year CAGR basis here?”

“Yes, on a three-year basis that is versus 1Q '20 would the CAGR growth over three years also be double-digit volume growth?”

“If you see the bakery business has grown better than the biscuit business and our bakery business definitely on the bread side, our English Oven is doing great in the market, has a better EBITDA margin so that also reflect, but surely going forward, the numbers should be better as we are looking at subduing our prices some price increases happened, which happened in the middle of the quarter, we did not get the complete price increases in the first quarter also.”

“So we would -- we should look at going forward, we are looking at better than now the gross margin coming over to the company.”

“So we see a very healthy forecast for the QSR business going forward.”

“So wanted to check is, would you expect a sequential kind of ramping up of this business from here on as things are opening up and with the kind of inquiries that you are getting from the new customer.”

“So if you look at on the bakery side, I think on a long term -- for the long term, we have -- sorry Medium term, we have always said that we are targeting strong growth in double-digit in terms of, let's say, 20% for the bakery side and we sort of continue to hold firm on that as we see a lot of opportunity both on English Oven and the institutional side on the English Oven side, we are seeing great response of our brand, and this is not only in one market, right.”

Anoop Bector

16

Manu Talwar

6

Moderator

5

Sonal Minhas

4

Percy Panthaki

3

Harsh Yogesh Shah

3

Ishaan Bector

2

Dhwanil Desai

2

Rushikesh Bhise

2

Amit Purohit

1

Anoop Bector

Ladies and gentlemen, good day, and welcome to the Q1 FY23 Earnings Conference Call of Mrs. Bectors Food Specialties Limited. 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 the conference call please signal an operator by pressing ‘*’ then ‘0’ on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anoop Bector. Thank you, and over to you, sir. Thank you. Thank you so much. Good afternoon, everyone. I hope that all of you and your families are safe and healthy. On behalf of Mrs. Bectors Food Specialities Limited, I extend a very warm welcome to all participants on Q1 FY '23 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; Suvir Bector, Whole-Time Director; Mr. Parveen Kumar

Manu Talwar

Bakery In the Bakery segment, the bakery segment revenue stood at INR 107 crore against INR 69 crore in Q1 FY '23 thus registering a growth 56% compared to Q1 FY '22, including retail bakery and institutional segment. Bakery segment has grown by 114% as compared to Q1 FY '21 both retail and institutional bakery have grown by higher double-digit in Q1 FY '23 as compared to the same period last year. The company continues to focus on increasing distribution and premiumization of the products. On the EBITDA side, the EBITDA stood at INR 31 crore, saw a growth of 30 bps point on quarter-to-quarter basis. Our EBITDA margin for Q1 FY '23 was 10.4% as compared to 10.1% in Q4 FY22. PAT stood at INR 13 crore saw a growth of 20 bps quarter-on-quarter basis, our PAT margins for Q1 FY '23 was 4.2% as compared to 4% in Q4 '22. With this, I would request to open the floor for questions and answers. Thank you so much. The first question is from the line of Percy Panthaki from IIFL. And before we move

Manu Talwar

Yes, on a three-year basis that is versus 1Q '20 would the CAGR growth over three years also be double-digit volume growth? We will just get back on this. We just quickly get this number available, we will just update you during the call itself.

Anoop Bector

So normally Percy, what we are doing is on the volume basis, because we are always looking at premiumization. Volume numbers for our company become quite irrelevant, we focus more on the value proposition because if you start counting volumes low price products will get a better. So I think from Mrs. Bectors that we should always look at value proposition than volume contribution.

Percy Panthaki

Fair enough, sir. My second question is on the margins that is the gross margin as well as the EBITDA margin. So firstly on gross margin, it is roughly flat Y-o-Y and there has been Mrs. Bectors Food Specialties Limited August 10, 2022

Anoop Bector

fair amount of input cost inflation. So just surprised as to how you are able to keep the gross margins largely unchanged. And secondly, on the other expenses line there is a very big inflation, some 67% Y-o-Y growth in the expenses. So can you let us know what is the reason for that? So the first thing is on the gross margin side. So as you said we are very close to gross margin of same percent, which was in the same quarter last year and versus last quarter of the '21-22 financial year our gross margin is lesser by 1%. And I think that across the industry, we have seen quarter one continue to have a very high pressure on the material prices. Right. So our improvement which we did over the quarter one over '21-22 is we had done some improvement in our margins over the first six, seven, eight months of last financial year, but then we started getting hit across the industry, everybody started getting hit with inflation post November onwards. And that's the reason that in the Q4 '22, ou