Ladies and gentlemen, good day, and welcome to Zydus Wellness Q1 FY 2024 earnings conference call, hosted by ICICI Securities. 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 star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Bhuwania from ICICI Securities. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone. It's our pleasure at ICICI to host Q1 FY24 results conference call for Zydus Wellness Limited. From the management, we have today Dr. Sharvil Patel , Chairman of the company; Mr. T arun Arora , CEO; Mr. Ganesh Nayak , Director; and Mr. Umesh Parekh, CFO. I, I now hand over the call to the management for their opening remarks, after which we can open the Q&A. Thank you.
Good afternoon, welcome to the post results teleconference of Zydus Wellness Limited for quarter one, financial year 2023-2024. We have with us Dr. Sharvil Patel , Chairman, Mr. Ganesh Nayak , Director, and Mr. Umesh Parekh, CFO. On the outset, on the onset of the first quarter of the financial year 2023-2024, the business has started with a mixed bag. On a revenue front, while the net sales growth is about 1%, the portfolio without Glucon-D has witnessed closer to double-digit growth, supported by volume growth of 4.5%. Similarly, as explained in the last quarter, we continue to see improvement in gross margins for our non-milk-based portfolio in excess of 100 basis points over the same period last year. We are taking appropriate price increases to address the milk inflation in the coming quarters.
The country witnessed erratic weather patterns with unseasonal rains across various states. Sales of our key summer season brand, Glucon-D, which contributes significant proportion of overall sales in quarter one, is also impacted due to the same. Let me take you through the highlights of the consolidated financial performance of quarter one, financial year 2023-2024. During the first quarter of financial year 2023, 2024, our net sales grew by 0.9% to INR 6,992 million. Our total income from operations grew by 0.8% to INR 7,021 million. EBITDA degrew by 21.3% year-on-year to INR 1,165 million.
Other expenses grew by 13.6% on account of high cost of alternative fuel and statutory wage rate increase, which continued to impact our overall manufacturing cost. The company has incurred one-time expenditure of INR 142 million towards one-time settlement with workers, legal charges, and provision for inventory write-off. Savings on account of cessation of partially captured in our HR cost and remaining balancing the steep increase in wage costs and alternative fuel costs. Reported net profit was down by 19.4% year-on-year, at INR 1,104 million. Adjusting for exceptional items, the net profit 10.9% year-on-year, at INR 1,246 million.
With that, let me the highlights of the operations for the quarter, which will also cover the category growth, market share numbers as per MAT June 20 NielsenIQ and IQVIA. We continued our thrust on marketing initiatives to grow categories and increase market share of our brands during the quarter. To narrate a few, on the Glucon-D front, rains across various key states of country, coupled with cyclone Michaung during key summer season, has impacted category sales during . Further to boost trials for the new launches, we launched new campaigns for Glucon-D Sachets and Glucon-D Mango Blast, which are new offerings for the season. The glucose powder category has de-grown by 3%.
Glucon-D brand continues to maintain its number one position with a market share of 59.9%, which is a decrease of 57 basis points over the same period last year. On the Complan front, in response to competitive actions of aggressive LUPs and price reductions, we had revised the pack price architecture for. This was focused on reviving volume growth for the brand. Complan has registered a growth of number of household usage at MAT level, which is collaborated with growing volume optics for the brand. The health food drinks category has registered a percent at MAT level. Complan market share stood at 4.5%. On Sweetener brand, Sugar Free momentum in quarter one on a year-on-year basis. A new communication that focuses on motivating consumers towards embracing healthier lifestyle with small change, was launched in quarter two.
The thematic expression of Katrina's Fitness wali chai , a concept designed to demonstrate a small change of adopting to enhance daily routine. The brand continues to maintain its leadership with a market share of 96.2%. On the personal care front, the face scrub category has registered a growth of 6.5% at MAT level. Scrub continues to maintain its leadership position with a market share of 42.4%, which is an increase of 42 basis points over the same period last year. The peel off category has registered a de-growth of 3% at level. Everyuth peel off has maintained its number 1 position with a market share of 78.7%, 19 basis points over the same period last year. Nycil brand registered strong growth for the quarter, backed by support through media campaigns for talc and body mist.
The pretty category, powder category, has de-grown by 4.5% at MAT level. Nycil has maintained its number one position with a 5%, which is an increase of 117 basis points over the same period last year. The dairy and spreads category has delivered yet another strong set of numbers, thereby registering robust growth for the quarter. The company growth, which will further be accelerated by innovations in the coming quarters, with Bangladesh subsidiary becoming operational during the quarter, company aspires to strengthen its national presence. The company also plans to take forward its digital journey by implementing data analytics and business. Thank you. We will now start the Q&A session. Over to the coordinator for the Q&A.
Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question, may please press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. while asking a question. Ladies and gentlemen, we will wait for a moment. The first question is from the line of Abneesh Roy from Nuvama Institutional Equities. Please go ahead.
Yeah, thanks. I've got three questions. My first question is on the prickly heat powder category. Nycil are seeing good market share. Here my question is, closely competitor acquired a brand a few quarters back, on a combined basis, number one player. Against that, the market share gain is a good performance. Wanted to understand how the industry dynamics being different, and the 17 this is a good market share improvement. Is it also correlating with the growth you have seen in the past? Because many times we see market share gives a different trend, and actual performance could be a bit different.
Hello?
Hello. Yeah, thank, thanks, Abneesh. On Nycil, I think we, we have a very strong brand. It is a number one, including space, and we continue to drive the brand on fundamentals. We believe the of this brand is much more, and that's really what we focused ourselves. We continue to communicate to consumers the benefits which are unique to consumption, and continue to drive on execution on ground through distribution expansion. I think these have really been, and that's really what it is. I think the gain in the market share also reflects our internal performance as well.
No, my question was, now become on a combined basis, bigger than you. Is that impacting any way your ability to really maintaining the number one brand? On an overall basis, they are bigger, but you are still on a brand basis, you are still number one. Wanted to understand industry dynamics, anything.
I, I have not seen any changes. I think we are focused on gaining new consumers, and that's really where I see the advantage coming to us, able to continue to focus on gaining consumers, and that's what we are getting. I think from a competitive perspective, each of the brands are trying their best in terms of market share, but at on ground, I don't see any significant benefits.
These are not the wholesale... I mean, these are not brands. I mean, these are real brands. These are not replacement products, so I don't think you can combine 2, 2 brands and say, become number one. Each brand has its own capability and own customer set, so you don't replace just because you don't combine brands like that. Otherwise.
Right. My second question is on HFD. You mentioned the aggressive behavior by the large player last year, due to the overall pricing, for a change, there was the LUP being introduced by the market leader. From there on, the milk, which is the key raw material, has been. Now where do we stand in terms of price hike in the last one year in, in your HFD portfolio? What would be the plan going ahead? Because now it seems that milk prices are stabilizing. Do you still look at a price hike, given that now the raw material is stabilizing? What is the way forward? Because here again, you have lost market share. At a very small market share, you lost market share. Wanted to understand what is the way forward here.
I think there are three-... things that matter in this whole portfolio. I think the action by the leader is about 1.5, 2 years back, which helps to separate the market, possible intention to grow the market and go deeper. We had less than fair participation in certain segments, like sachets, et cetera, which we've corrected. It's still very small, but we have a better participation, and we also have a price point play through pouches, which we are participating in. Having said this, I think we are seeing good gains in terms of households acquisition, which is a critical benchmark for a brand, and that's why we mentioned 12% gain in households and the volume share shift, which we are seeing on the brand.
I think going forward, we are looking as the milk prices are stable, we are seeing a good buildup of the brand, and the market share loss that you may attribute is more about not participating in a certain price segment, which we have less than fair participation. On a stable level, I think some of the key states and key markets and key packs, we continue to hold the consumer base that we've held. I think there is a structural shift that was introduced, which we have addressed, and we should be able to build it forward, going forward. Milk prices stable is a good news. We are taking these calibrated price increases, which will help us recover the EBITDA, you know, margins that we have committed towards.
One last follow-up there. When you say 12%, increase or gain in number of household, but then when I see market share has, come down by 31 bits. The entire industry growth rate in HFD is not something which is very great in terms of volumes. What does the 12% gain in household mean when your market share is reduced? Where is the disconnect?
I think we, we for us, there are two or three things that matter. I think the patient, because these are relatively higher price categories. There was a point in time when this category was much smaller, and there were consumers who will, despite inflation, buy the same quantity. There is possible reduction in per household usage, but we continue to buy more, you know, get, sorry, acquire more consumers, and that's, I think, are very critical for us. We're also seeing a volume share gain, which I think will translate into value share gain, which that you are attributing us to, and that is-
Sorry to interrupt, sir. We have lost your audio.
Did you get what I said?
No, sir, we lost the audio from your line for the last few seconds.
Okay, did I ? I'll just repeat: I think we have, I think the critical part is that we have to gain new consumers, which we are. In a hyperinflation situation, there may have been a reduction in consumption, which is why there's a difference in the household and the value numbers. We have, of, in last few quarters, seen a volume market share recovery, and value will start also reflecting sooner or later as things get more normalized.
Thanks. That's all from my side. Thank you.
Thank you. The next question is on the line of Tejash Shah from Avendus Spark. Please go ahead.
Hi, sir. Thanks for the opportunity. First, question for you. I logged in a bit late, but what would be the volume and price mix breakup for the quarter? Hello? Hello.
Total, we'll have a - 6.2, - 6.2. If you were to reduce Glucon-D, which is an exceptional season for us, without that, we would have about 4.5% increase in volume growth.
Okay. Second question was on HFD address, extension of the previous participant's question also, that even leader in the category in this quarter. Now, with all the interventions and marketing efforts that leader would have made, along with obviously participants like you also in the category, and when we look at in perspective, very low penetration of the category, which was the base argument for somebody putting in money into this category, why this category has not responded at all in last 4, 5 years in terms of growth?
While this is a strategic question, I think there are two or three things that I can quickly talk for this want of time. One, I think there have been, nutrition now has two, three parts. One, there are segmented consumptions, and we have seen adult consumption going up, while the kids' consumption, people have alternatives, which could be in terms of cereals, which could be in terms of juice and other nutritional items. Daily food product also, consumers are more conscious of other nutrition. That's one. The other thing, factor that I think which has hurt brands like ours, which are a premium to others and have largely a main pack play, is significant inflation puts pressure on the marginal households, which impact the category. Those are factors which I'm seeing.
I think the second one is temporary in nature, where the inflation settles down. The structural one, we have to provide a better reason for consumers to continue to use this category versus other alternatives they will have for food and nutrition, or specifically on nutrition point. Which is why we are focused on building superior nutrition and clinical-based claims. B ut the larger thing...
I think also this whole, the lower price point architecture that got introduced, I think has, has a detrimental effect on the overall category. Maybe short term, it looked very good, but it has destroyed our pricing architecture.
Okay. In, in value terms, I can understand, but even on volume terms, you believe that it has kind of made the category less appealing to the consumers?
No, I think you have to give a right proposition, then it is still a relevant proposition to the consumer. I think with better claims on products, which we believe we'll be able to, which we have and which we'll be able to show, I think that is gonna matter as we move forward. Obviously, adjacencies in terms of age groups and other, I mean, extensions that one can look at in terms of growth. That is obviously gonna be also very critical as to how do we move forward from this. I think in the last quarter, Tarun said we have seen a good uptick in terms of volume, in certain states which are really critical for us. We hope we are on the path of recovery after this, last couple of four, five quarters.
Sure. Sure. Next question is on this WHO's assessment on which there is a lot of controversy around that aspartame is carcinogenic or not. You have also kind of, mentioned it in your PPT. Any early reaction from consumer, whether they are... Like, have you lost any consumer base because of this, speculation, or you believe that consumers have kind of taken it in stride, like most of the allegations which we have seen in the past also in some of the categories? Just wanted to understand early reaction of consumers that you would have picked up.
I think one is on the consumer reaction. I think we still have to wait but again, we have to wait and see what impact some of this has. I think one thing we have to understand is that of dissemination of information that has happened, that has come out of, from the WHO, not from WHO, how it has been reported. So I think we have to work very hard to make sure the perception about what has been written. Is the category that it falls in and the daily requirement to take that is allowed is significantly below any consumption level that exists today here. And, you know, in this category, there are, there's also which form part of the same category. So it's...
I think we have to do a lot of education, which is the effort that we have to put to the consumers in Also make sure that the right information is disseminated and not selective information. Whether we will have some, we have to wait and see. It's still a little too early to know whether what kind of an impact this would have.
Sure. Finally, almost after 2, 2.5 years, we are seeing some early signs of inflation, kind of cooling off. Let's assume hypothetically, as the year progresses, we have this tailwind, which we have seen right now continues. Would you have flexibility to let it flow to the margins? You believe that business in the current demand environment will require a lot of investment to kind of not allow that to happen in the near future?
I think Tarun can take it, but I think end of the day, we have to make sure that we improve our profitability. I think with this deflect commodities, other than may price increases, we have seen an improvement in our gross margin. Definitely, with the right product mix, if we are able to maintain, we should see that come down through into the operating leverage. Things have happened now. Obviously, it's a question of making sure that we have the right product mix that we are able to sell. There has been a lull in the market right now, so we have to wait and see how the next few months go on in terms of the demand generation. Otherwise, I think on the, we have sufficient, more than sufficiently covered our gaps.
Any, any guidance would you like you have given on many other parameters, maybe you want to see the margins now?
For sure, for sure. Like we've said, we, we believe that in the next 2 to 3 years, we should be looking at recovering back to 17%, 18% because we dropped down to 15%. We should be looking at 2 to 3 years back to 18% before we get down to beyond.
Okay.
Because we'll have to invest back also, so.
Understood. Understood. All the best for coming quarter.
Thank you.
Thank you. The next question is in the line from Counter Cyclical, PMS. Please go ahead.
Hello, good afternoon. Thank you for the opportunity. I have two questions. One is, can you start growing? With the increase in online and empty proportion, is the increase and working capital increased structurally, structurally? Thank you.
I, I think it's a good question, and that's the most to get the new growths. I think there are things that beyond our control, but we do believe that we have the right mix. That's why we've isolated the growth factors where on a seasonal part, which did pull us down. Otherwise, we do believe we have all the right mixes to get growth and which growth coming back. As far as to the other part?
Working capital.
Working, working capital. Yeah, sure. As we said earlier also, we hope to see the improvement in the working capital cycle by 10 to 14 days, as reported last year from whatever is reported last year.
Margins will not be. We are protecting our margins for across channel purposes, so that should not impact. I think we've also will impact our margins. I think we are reasonably protected on that.
It may impact working capital, which we are balancing, margins will be fair. Next question?
Madhur, are you done with the question?
Yeah.
Thank you. The next question is from the line of Alok Shah from Ambit Capital. Please go ahead.
Yeah, hi, everyone. Thanks for the opportunity. My first question is that while you mentioned the erratic weather impacting the sales of Glucon-D, and number two in this presentation has mentioned the same, was just wondering, why would that not impact the sales of Nycil also? Or was that impact quite small to quantify? Just wanted to get that information.
I think there are two factors that play out. One, I think Glucon-D has a, even a shorter cycle than, Nycil and the timing of that cycle, which is more April, May. Secondly, Nycil, because of prickly heat, has linkage to both, perspiration. Therefore, the humidity plays also to the advantage of Nycil. I think while the category-
Ladies and gentlemen, the line for the management has got disconnected. Please stay connected while we reconnect the management. Thank you for patiently holding. We now have the line for the management reconnected. Over to you, sir. Mr. Shah?
Yeah.
Are you able to hear us?
Yeah, I'm not able to hear you, sir.
Members of the management team?
Can you hear us?
Yes, sir, we are able to-
Yes, ma'am.
Proceed.
Okay. Alok, should I repeat or what we had before the call?
I got it. Because of the longer seasonality, because of the summer, plus the humidity-related issue, which helps Nycil. Got it. Got it. Second point was with respect to performance of Nutralite, which is doing fairly well. Just wanted to check, how was the performance within that of the new launches, your chocolate spread and mayo, et cetera, be doing? Would it have gained sizable share, or it's the base Nutralite which is still sort of growing at a faster rate?
What is doing well in Nutralite is the base for sure has continued to, to do well. The dairy portfolio has done well, the butter and ghee. Within the new launches, I think chocolate spread is much lower than our expectation, so we have to see what we want to do with it. We have covered a certain mass. I think there is potential to do more, for which we are doing some work, which will help us get right, as we build forward on that.
Got it. Perfect. My last bit was on the marketing spend. ATL plus BTL put together, now that the margins will potentially start to look much better, except for the DMH, you know, most of the commodities should be relatively benign. How are we thinking in terms of overall spends towards, you know, pushing the product as well as the communication to the consumer? Is there a scope to increase any spend over there, which can help in terms of the growth? That's just my question.
Look, it's a fair question, and we are titrating it, because we would want to balance and ensure as the gross margin goes up, we are able to spend on it. We are, we are doing a calibrated, quarter to quarter. Like we explained, our gross margins have gone up for the non-milk, but at the overall portfolio, once it starts going up, we will be more confident certain investments up. We are going up.
I think for the next 6 to 8 months, 6 months at least, I think Sugar Free and Everyuth will, will in terms of how do we spend for that to grow, because.
Yeah.
-those are important brands for us and have done well, so we need to make sure that we do the right investments in those. The others will be more measured in terms of how do we invest, depending on the off take and demand.
Got it. Just to confirm, you said Sugar Free and Everyuth. Did I pick up rightly?
Yes.
Yeah.
Yeah. Okay, perfect.
Thank you.
Thank you. Thank you. Good luck.
Thank you. The next question is from the line of Kinjal Mota from Banyan Tree Advisors Private Limited. Please go ahead.
Yes, thank you for the opportunity. I have a couple of questions. My first question is, in the context of skincare, particularly in the realm of facial care, the face wash market is witnessing growth. However, the market for peel scrub product does not seem to be experiencing similar growth trends. What are the challenges currently impacting the growth of peel off and scrub products in the market overall?
I think, I think peel off market has a linkage more to the occasions of consumption, which is largely festivities or wedding season, and therefore, happens in between. Otherwise, we've seen in last one year a good offtake. Similarly, scrubs has also been considerably in building our market share. The only thing is that Nielsen numbers that we quote are the best, just- I mean, the best estimates we have for the category. Our belief is that it will continue to grow and grow well. Also, some of the growth which Nielsen does not capture happen also online sales. Unfortunately, despite our request to Nielsen, we've not been able to capture it as a full picture of the category. We do see scrubs and peel off to be large potential opportunities for our category growth.
At least for us, yeah, till they have contributed well.
Yeah.
Okay, okay. Got it. My second question is, has the introduction of products like Sugarlite, which competes with, with your existing product, that is Sugar Free, resulted in any cannibalization?
No. Actually, Sugarlite is positioned more as a sugar, and therefore-
Yeah
We've not seen any level of cannibalization.
Okay. Okay. Until what duration will the tax benefit, which is currently arising out of MAT credit and accumulated losses, remain accessible?
It will be until March 2025.
March-
After March 2025, we will have a normalized rate. Yeah.
Okay. Okay, okay. That's all from my side. Thank you.
Thank you. The next question is from the line of Kaustubh Pawaskar from Sharekhan by BNP Paribas. Please go ahead.
Yeah, good evening, sir. Thanks for giving me the opportunity. My question is on the Sugar Free category as a whole. This quarter, again, we have seen mid-single-digit growth, and you have indicated that because of the issues related to aspartame, you have not seen any kind of an impact.
Sorry. Sorry. Sorry, Kaustubh, there is a lot of disturbance in the line.
Yes, Kaustubh,
Yeah.
Sir, there is a lot of background disturbance on your line, sir.
Just a second, ma'am. Is it okay? Is it better?
Yes, sir. Please proceed.
Yes.
Yeah. My question is on the Sugar Free category as a whole. This quarter also, we have seen mid-single-digit kind of a category, and you have alluded to the point that you are not seeing any impact of the, you know, issues related to aspartame. Just want to understand, you know, where are we losing? Because earlier we used to see that this category used to grow, you know, in good double digits, and we are the market leader, and we used to gain because of that. You know, what is the issue related to the category? Why we are seeing, you know, growth in, you know, single digits, and when can we expect, you know, growth to come back to double digit for Sugar Free?
Well, I will just take one question. The effect of what has happened, we have to still wait and see. As I said, it's too early to, for us to comment on what could be the impact of the current, use that was there. As I said, what we have to do is to make sure we give the right, correct information for the consumers to make the right choices. As I said, so we have to still wait and see whether the impact... because the impact takes longer, it doesn't happen so suddenly. So far, we are insulated. With regards to how to grow the category and talking about, maybe Tarun can...
Yeah. So overall, the consumers talk about top couple of reasons due to which visit, you know, which is the reason for lower adoption of this segment is, or this business. One is the relevance, because somehow a large portion of impressions or positioning has been that it is more suitable for diabetics, and therefore, we've had a large amount of effort, both for diabetics as well as non-diabetics to adopt. That's one effort that we make consistently. Second is, it's not related to just this episode of WHO, you know, announcing certain things. There has been a lot of negative publicity about this segment over the years on various online spaces, which creates a certain amount of concern on people, which holds people back sometimes.
We are addressing both these parts consistently. It has impacted and created headwinds for the segment, and I think we should be able to address. In particular, we've seen, when we look at our stevia-based product, is natural and is positioned so. We've seen a high double-digit growth and a much faster adoption. The challenge is, how do we make people shift even harder is something we are working on through. There is obviously the third element, which is price also, which comes through. We believe with the right positioning and the right continued effort, we should get, improve our adoption. There is the last piece which I could add, which we link to, leveraging this brand to get into other food spaces.
Some of the experiments we have done, pilots we have done on chocolates in online space, I think we still have work to do, and we'll also explore some of those things over the next 2 years. That's where we are in terms of our effort to grow this brand.
Got you. The related question to the same, as you said, that stevia is doing, good for you. In the presentation also, you mentioned that, you will be launching more products under the, sucralose and, stevia, you know, which is a subsection under . Is it, to create a right portfolio for you so that, you know, that which you can leverage and see a better growth, going ahead?
We want to focus yes, we are looking at launching more products under the Sugar Free, like I said, on everything. Drive consumers to overcome the perception challenge which may be existing with aspartame, but to focus more on Sucralose and Stevia. That's largely what we want to do, as I explained.
Okay, thank you. Thanks.
Thank you. A reminder to the participants, anyone wishing to ask a question, please press star and one. The next question is on the line of Ajay Thakur from Anand Rathi Securities. Please go ahead.
Hi, sir. Thanks for taking my question. Want to understand first on, on B, I understand that, you know, the category actually had faced the headwinds, but, can you just also throw some light in terms of, you know, color, how or which, you know, areas actually have gotten impacted? Because if I were to look at it, the, the category volume decline has only been 3%. And I believe, you know, our volume decline would be maybe slightly higher than that. Just trying to understand that, the kind of, you know, the, the possibility. Hello.
I think if I were to give you a sense of it, I think while we report quarter-to-quarter numbers, a substantial portion of our business gets done over two quarters, quarter four and quarter one. At quarter four plus quarter one, I think our growth rates are higher than the category growths. Though I can also tell you, regions which have done well are largely east and south, where the rain impact was relatively less and we have got a better response, and therefore, the season was more supportive. North and West are more impacted. At the overall level, we have done, internal growth rates are better than the-
I think this quarter was highly skewed, in terms of oversight. First half, if you look at it, we did better than the category.
Okay, understand. Secondly, I also wanted to understand a bit more on the, the, you know, growth momentum. To put it across, you know, we are still targeting around 18%, kind of steady 18% kind of EBITDA margin for, you know, FY 2024, possibly, and we are hoping for that. If I were to, look at, you know, the next two quarters, obviously we have much lower, margin because of the seasonality factor and our portfolio mix. Are you, you know, kind of hoping that we will be able to kind of, you know, at least reach within that kind of a limit?
or you believe it will be, you know, kind of different, you know, either the, barometer trends or given the fact that, you know, the mix or how the, the, you know, are, has been in Q1.
Our focus remains to move our gross margins and EBITDA margins for each quarter. Structurally, the next two quarters are lower because the fixed costs remain very similar around the year. The operating gross margin, gross margins and therefore, the EBITDA margins drop because of the mix and the fixed costs, and therefore, it works in that reverse way, that the leveraging of the operating leverage working in opposite directions. I would say, we are still focused to continue to get better growth over last year, over the next two quarters. obviously... That's how it will be. That's how it structurally is.
Understand. Sir, lastly, just to understand, we have been doing almost like a double-digit kind of a revenue growth, and we still have, you know, 5%-6%, I believe, in terms of the price pricing, you know, which is there. Currently, given the, you know, high base of Q1, can we still be looking at a double-digit kind of a revenue growth momentum, or just because of the Q1 kind of a mix, you believe, you know, we would be looking at something like a more like a high single-digit kind of a growth for the FY 2024?
I, I, I'm not sure of the forward-looking thing, but I think we still have a short period. We still have three quarters to go and a large quarter four also. I'm hopeful that we should be able to pull that through, but we'll have to play it as it goes.
Okay, thanks. Quite helpful, sir. Thank you.
Thank you.
Thank you.
The next question is from the line of Mayur Parkeria from Wealth Managers India Private Limited. Please go ahead.
Thank you for taking my question.
Sorry to interrupt, Mr. Parkeria , your audio is sounding very soft. Can you speak a bit louder?
Is it now okay?
Yes, sir. This is much better. Thank you.
Yeah. Sir, actually, this is not necessarily a, you know, question of it's a negative, but with just to understand, right? Because, the, at an overall company level, now, this is not at an individual segment level understanding, but at an overall company level, do you see we being able to structurally demonstrate a volume growth, which can be in the region of, you know, closer to double-digit or higher single digits or something like that? Do you see that in the current product segments, categories also, that we will have to do something different, firstly? Do you think that we will have to acquire certain product gaps, which you have mentioned in the presentation also in terms of bolt-on acquisitions?
The reason or, the background with which I'm coming is, you know, we have seasonality in the product baskets, and some of our products are very highly penetrated and the category itself is facing challenges in terms of the growth. How do you see at the overall company level from an, you know, overall investor level, this ability to deliver, you know, volume growth, which is structurally over the next three, four years, sir?
I think, we do not have a doubt in terms of the fact that we can deliver a consistent, over 3 to 4 years, double-digit growth. Last financial year was there. We've missed because of a season. Every 3 to 4 years, if we look at last 10 years' data also, we've seen, there is one odd seasons which go down, and there is a seasonality impact or some other, you know, disruptions. Double-digit growth is absolutely a doable thing, given our portfolio. Of course, other things, if we buy or if we launch, we'll add to it, but, we do believe the portfolio fits in into a double-digit growth. Can this double-digit growth be purely volume-led?
Intention, yes. There is a certain amount of inflation which is inherent to business and will, will, will always be part of that mix. Our focus is to grow our consumer base by re-recruiting new consumers. Therefore, we have, we, we have a single-minded focus on that. Inflation is just to work around as well as competitive perspective. Therefore, we're quite...
Sir, do you see this coming from, you know, any changes which we are assuming in terms of a certain product categories, which will add about Sugar Free some of the extensions? Or do you see that the current, when you answer this, is it based on the current product itself or some changes which you have inbuilt there, sir?
Really speaking, I think if I look at last 8 to 10 years, except for brands, where we've had some challenges and we are working on those, I think most of our brands have clearly demonstrated that, and we don't see a reason where brands over 3 to 4 years, Nycil, Everyuth, Nutralite, have any challenge in demonstrating over the next 3 to 4 years or in last couple of years, any double digit. Complan had a more structural at a in- industry level issue, which I think we'll figure out a way to come out of, and we'll launch extension and work around. Sugar Free has also, single-digit growth. We are working on how to pull that forward.
As an overall portfolio, I don't have a reason to believe, there is a challenge at a business level. Therefore, the new products will support our belief in that.
Sir, last one, very small question on the bookkeeping side. Will you be in a position to just give us a qualitative understanding, how much Everyuth would be at a category level, at the overall, annual sales business?
Already given at the overall level between Nycil and Everyuth, but individual breakups, we are not giving.
Oh, okay, sir. Thank you, sir.
Thank you. Ladies and gentlemen, that is the last question. I now hand the conference over to the management for their closing comments.
Thank you, very much, and see you in the next quarter. Thank you.
Thank you, members of the management team. Ladies and gentlemen, on behalf of ICICI Securities, that concludes this conference call. We thank you for joining us. You may now disconnect your lines. Thank you.