Ladies and gentlemen, good day and Welcome to the Q3 9-Month FY25 Earnings Conference Call of Mrs. Bectors Food Specialities 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 at the end of today's presentation. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anoop Bector, Managing Director of Mrs. Bectors Food Specialities Limited. Thank you, and over to you, sir.
Thank you. Thank you. Good evening, everyone. On behalf of Mrs. Bectors Food Specialities Limited, I extend a very warm welcome to all participants on Q3 FY25 financial results discussion call. Today on this call, I have with me Mr. Manu Talwar, our Chief Executive Officer, Mr. Arnav Jain, Chief Financial Officer, Mr. Suvir Bector, Whole Time Director, and Mr. Parveen Kumar Goel, Whole Time Director. We also have Orient Capital with us on the call, who are our investor relations advisor. I hope everyone had a chance to review our investor deck and press release, which was uploaded on the exchanges and our company website. The company maintained its growth momentum in Q3 FY25, reporting a 14.8% year-on-year increase in revenue for the quarter. Both our businesses, Biscuits and Bakery, exhibited steady growth amidst a challenging environment.
Coming to the macroeconomic environment, while we witnessed slight uptick in the consumer sentiment driven by a buoyant festival season, as well as ever-improving rural demand, the urban demand continued to remain largely muted. On the input cost side, prices of key commodities such as palm oil, maida, and cocoa saw significant escalation and remained elevated in the current scenario. While we expect some moderation of the same moving forward, we have executed a mix of cost-saving as well as strategic pricing measures to mitigate the same. The full impact of these measures is likely to flow through by the end of Q4. Consequently, we anticipate fully absorbing and offsetting the impact by the first quarter of the financial year 2025-26.
We welcome the recent announcements in the union budget presented by the Honorable Finance Minister and firmly believe the proposals in direct tax code, like revision of tax slab, should boost disposable income and, in turn, help stimulate urban demand. This order went for both of our businesses. In line with evolving consumer trends, we have strengthened our product portfolio through product and packaging renovation across our crackers and cream range. We are pursuing a sub-brand strategy, aiming to establish these sub-brands as drivers of sustainable and profitable growth. During the festive season, we introduced a slew of offerings in the gifting segment and, for the first time, participated in the Christmas and New Year season with product offerings such as Danish Butter Cookies and Sugar Sprinkled Crackers.
On the bakery side, taking our health-focused campaign of "No Means No Forward," we executed a high-impact outdoor campaign with the proposition of "No Maida, No Palm Oil," and "No Added Colors" range to cater to the consumer's changing trends. On our product introductions, on new product introductions, we augmented our healthy snacking portfolio with the launch of bite-sized snacks under Non-Stop Mini Crackers. With the promise of baked, not fried under English Oven, we continue to lead the burger buns segment with the latest introduction of Bombay Burger Buns, promising a café-like burger experience at home. Our frozen portfolio under the bakery segment continues to scale up well. We are working with the leading chains on the development of new and innovative products. Our exports portfolio exhibited strong growth, and we continue to be a trusted partner to larger international chains.
We have an exciting product portfolio in the pipeline with the upcoming facility in Dhar, Madhya Pradesh. And over the next few quarters, we aim to participate in newer segments. On the domestic front, we are aggressively pursuing fast-growing quick commerce and aiming to strengthen our portfolio with new age offerings. Calibrated retail expansion and increasing throughput and high-volume outlets driven by technology remain cornerstones of our S&D strategy. With respect to the funds raised through the QIP, a portion of proceeds has been utilized for the repayment of borrowings, investment in subsidiaries, and financing the project costs for our upcoming plant in Dhar, Madhya Pradesh. The unutilized funds have been temporarily placed in bank deposits. We remain on track with our capital expenditure plans.
The commissioning of our new biscuits facility at Dhar, Madhya Pradesh, is scheduled for April 2025, while our state-of-the-art facility in Khopoli is expected to be operational by the second quarter of the next financial year. Additionally, our Kolkata plant is set to commence operations in the first quarter of the financial year 2026. These additions enhance our ability to serve diverse regions across the country and provide us with a competitive edge over other players. Before we move to our financial performance for the quarter, I am pleased to share that we have declared interim dividend of INR 3 per equity share. Starting with Biscuits, our biscuits segment reported a revenue growth of 15%, which stood at INR 308 crores in Q3 FY25, as compared to INR 268 crores in Q3 FY24. This segment has grown by 40% over Q3 FY23.
Our bakery segment revenue for Q3 FY25 stood at INR 175 crores, against INR 146 crores in Q3 FY24, thus registering a growth of 20% on year-on-year basis, including retail, bakery, and institutional segment. This segment has grown by 37% over Q3 FY23. The consolidated revenues for the current year stood at INR 492 crores versus INR 429 crores in Q3 FY24, thus registering a growth of 15% on a year-on-year basis. EBITDA stood at INR 61.4 crores, resulting in a growth of 0.4% on a year-on-year basis. The EBITDA margin for the quarter stood at 12.5%. PAT stood at INR 34.6 crores for the quarter, and PAT margins for Q3 FY25 stood at 7%. Moving to nine-month FY25 financial performance, the consolidated revenues for nine-month FY25 stood at INR 1,427.8 crores versus INR 1,217.6 crores in nine-month FY24, thus registering a growth of 17.3%.
EBITDA for nine-month FY25 stood at INR 195.9 crores versus INR 183.8 crores in nine-month FY24, thus registering a growth of 6.6% with EBITDA margin of 13.7%. PAT for nine-month FY25 stood at INR 109 crores, as compared to INR 106.7 crores with a PAT margin of 7.6%. With this, I request you to open the floor for questions and answers. Thank you so much.
Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Once again, I would remind participants to press star and one if you wish to ask a question. The first question is from the line of Disha Geria from Ashika Institutional Equities. Please go ahead.
Hello?
Yes, please go ahead.
Yeah, hi. So I have a few accounting-related questions. Like what I understand, that the increase in raw material costs might have impacted our processing, but there is around 20% increase in our other expenses. So is there a particular expense within it that has increased for us? And also, can you mention what is the added expenses as a percentage of revenue for us?
Good evening, Disha.
Good evening, sir.
So the other expenses which have gone up is largely on account of our exports, where the logistics costs are higher. So primarily it's on account of trade and promo, and that too on account of logistics costs. That's why this cost is higher, right? This cost increased a little higher, but what got mitigated by lesser expenses on power and fuel and somewhat of lesser expense on veg and processed products. So that's the reason for that to kind of go up there.
So, Manu, another thing I think you missed out is the Red Sea impact because of the Red Sea, there is the impact on.
Yeah, that's what I said, the Red Sea impact, which is largely on account of trade and poverty on the export side. And that impact has been there for the last almost nine, 10 months. So that's one of the large reasons why our other expenses are higher than the same quarter previous year.
Okay. And the advertising expenses?
Advertising expenses for our B2C businesses have been close to 3%. So we have two B2C businesses, which is Cremica Domestic Biscuits and English Oven. So they have been approximately close to 3% in this financial year. So. Okay.
Coming down to my second question, the palm oil, maida, all these raw materials have seen the pain of inflation in the last quarter. And going forward also, we are not yet sure whether it is going to decline or not. So, what do you think? What steps are you taking for our gross margin or our profitability to expand further?
So Disha, there has been a steep inflation primarily in the palm oil side and then also added by some in the Maida side. We have taken action on the two sides, right, and definitely for bakery and biscuit side of segment. What we have done is that we worked on both cost side to bring in more efficiency and also on the price side, either through the actual price increase and by Gramage. Just to be clear, on the bakery side, we have more or less taken the price increase to mitigate the cost increase, which is obviously lesser on the bakery side. We have done that action in this last quarter. Now, in case of the biscuit side, we started the action in the previous quarter on the correction of the prices.
And this action will spill over into the quarter four of the financial year. And we will be, in terms of realizing and covering our cost, we should be done by March of 2025. So this is a brief about that. And on a bakery side, as I said, we've covered the cost impact through the price increase and the cost efficiency. On the biscuit side, we started taking action on both cost efficiency side as well as the price correction side. And both these actions are in motion. They started in quarter three of this financial year. Quarter four, we continue in the quarter four, go to the end FY March period. And by March, we would reach a situation where we would have covered our impact of the raw material price increases.
So on the bakery side, there's no additional inflation impact that we are bearing. So 100% of it is passed on to the customers as of now, right? Correct?
Yes. So some, as I told you, some part of it got covered through the cost efficiency side. And yes, the balance has been covered through the price increase. And on our overall bakery segment wise, on our English Oven side, we have covered it through the price increase through passing on to the consumer.
Another thing is on the bakery side, being a shorter shelf life product, the price rises can happen much faster. We are having lesser raw materials in biscuits. There are more SKUs. We are carrying stocks. Market stocks are lying. So it takes a bit more time. So we already started the exercise. Like Manu has said, we will be able to execute this by the end of March.
All right. Sure. Thank you. That's it.
Thank you. The next question is from the line of Rishi Modi from Marcellus Investment Managers. Please go ahead.
Yeah. Hi, folks. Can you hear me?
Yes, sir.
Yeah. Yeah. So Manuji, I think Anoop mentioned in his opening remark, and you commented on the same, the cost initiatives that we have taken on the Opex front. How much of that would be structural cost reduction? And once the freight normalizes, where do we see this other Opex line as a percentage of revenue coming down to?
We had taken up a cost efficiency project in this financial year. This project was overweight. It was in the manufacturing side. It was on the supply chain side. It was on other areas too, right? Most of these projects are getting concluded by March. There's some of the projects which continue even in the next financial year. We are also further drilling down in our annual operating plan as of now what will be the further cost efficiency program, which would be there. In terms of saying that what would be the impact of these cost efficiency programs in terms of on the margin side, I would say that over the next 12 months' time, our target should be kind of have an impact of close to 0.5% on an annualized basis on our margins through these cost efficiency programs.
Okay, so 0.5% per year, you're talking about over the next several years. Is that correct?
Yeah. Over the next 12 months. Yeah. Over the next financial year.
Okay. On a normalized freight, if I look at your last year's freight cost, it would be around 8% of your revenue. But if this cost structure normalizes, if I'm looking at the freight cost, they have doubled YOY. I'm assuming 200 basis points savings would come from the freight cost normalizing and plus this 50 basis points. Is that correct? Or you're saying on the current cost base?
No, Rishi, what I am saying is that these are entirely efficiency-based programs. The Red Sea or the higher freight cost on account of exports, which is higher, that I am not expecting any immediate change there, right? We haven't seen that change over the last 12 months, so there is no indication that these things are going to change immediately. International, in terms of sea routes and scenario, is going to change immediately. We have no indication of that as of now. As and when it happens, we'll bring benefit to the logistic cost side on the export side, but I'm not considering any of those. We are not seeing any of those coming on an immediate basis. There's no need or indication on that account.
Okay. Got it. Got it. Second, I saw that your CapEx plans have been delayed by a quarter. Things which were supposed to come operational in Q4 have been shifted to Q1. Is that just a one-quarter delay? Or if you could just give some color on that.
Vishal, Capex side, we had scheduled our Indore Dhar plant coming up in Q4. So it can come anytime between 15 March to 15 April, right? And that's what we have mentioned that will come in April 15. So such a large project, you can understand, 30 to 40 days kind of spillover is something very, very normal kind of stuff there. In case of our Kolkata project, again, the Kolkata project was also scheduled around March-April of the financial year, which is likely to come up by first fortnight of May. So that's kind of another minor kind of delay there. In case of Khopoli Bakery, definitely we were looking at around quarter one, probably around quarter one end of 2025-26, which we now see as a quarter two of 2025-26. It's a fairly large product with imported machines and other stuff.
So there is a bit of a kind of a spillover there. And our Rajpura lines in this financial year came up well in time as planned. They were fully commissioned in the first two quarters of the financial year. So this is kind of a brief about our project. There were some improvement projects on the Maida side. They also kind of happened in time. And they also have been kind of implemented. So these are especially Indore and Khopoli are very, very large projects which are being done in totally greenfield plants. So yes. So there's a kind of a minor shift now, but no major shift there.
Got it. Got it. Finally, the price hikes. You said biscuits is where the channel filling thing happens where it takes time. So Q4, do we expect the margins to come back to the 47%-48% range, or Q1? Just trying to get an understanding on where the channel is accepting it.
We will see the full impact coming to us in the first quarter. But yes, by March, we would have taken all the actions to neutralize.
Okay. Got it. Got it. Thank you. That's it from my end.
Thank you. The next question is from the line of Harit Kapoor from Investec. Please go ahead.
Yeah. Good evening. So I just had two or three questions. One was on the pricing. So on biscuits and bakeries, could you just give a quantum range of price increases that you have had to or you are going to take? I just wanted to get a sense of what that quantum is.
So in terms of, Harit, in terms of price increase, which we are kind of taking, would anything range between approximately as of now, what looks like is 4%-5% kind of price increase as of now because it's a mix of price increase, it's a mix of bigger gramage, and some possible cost element. So if you're asking pure price increase, it should kind of range around that.
And as for in bread, how much is that kind of the quantum similar quantum in bread, Ratio?
Pardon? Sorry.
In bread as well, it's a similar quantum?
Oh, bread, yes. Bread, if I remember right, is around 3%-4% kind of range increase. We have taken the price increase is 3%-4% times range is more finely on the North India side. And it is much lesser on the West and the South side.
Got it. Got it. The second question was on biscuits. So there has been, while 15% revenue growth is still exceptional in this current context, the growth has been a bit slower compared to Q2. So if you can just elaborate a little bit on the moving parts of export and domestic. I know you don't give quantum growth in each of them, but what's happening in each of those markets, where the growth is a little bit slower, where it is a bit higher? Just some color on both the subsegments within biscuits.
So exports, I got kind of so export has been growing extremely well over the last two years of time, right? And export has obviously grown fairly aggressive over a two-year period, right?
As we all know, the domestic biscuit side, because of the hyper-competition starting somewhere in November of 2023, and then carrying on, which led to dipping of the price by the dipping of the pricing and offering extra gramage to the consumers by the leaders of the industry. Then we also had to follow up with our kind of action there. Domestic biscuit has been under kind of growth pressure starting from quarter three of last financial year and continues till now. Only the good signs which we are seeing now, at least in our part of the business, is that from quarter three of this financial year, we have seen for us the revenue growth, the volume growth has started looking up. We expect a similar trend to continue in the quarter four of the financial year. Yeah.
So export, which has been kind of growing very, very aggressively over the last two, two and a half years, obviously, we can't expect a similar growth to come in export because they are sitting at a very, very high base. And so that kind of growth, we expect to kind of mellow down but continue to grow well in mid-teens. But on a domestic side, which has been kind of on a flatish low growth side over the last four quarters, starting on quarter three of the last financial year, the last quarter, we started seeing a movement up. And we expect the same trend in this quarter. So that's a good part of the news.
Fantastic. Fantastic. One last point. The bulk of this new capacity comes in the first half of next year, almost everything. How do we think about the distribution expansion drive in that context? Do you wait for some of these things to happen over the next six months and then turbocharge it towards the second half of next year? What are the kind of numbers you are working with in biscuits and breads in terms of expansion on distribution?
We are in the process of making an annual operating plan. Harit gave you a flavor of that, that we had a constraint on our capacity in Bombay, Maharashtra, on the bakery side, English Oven side, especially. There we have started building our distribution. We started kind of expanding our distribution. There will be, even before the capacity comes, a lot of work happening over the next three quarters, including this quarter, right? From January to, you can say, January to September is the time when we will be working a lot on distribution and internal distribution expansion on that side. Similarly, on the South side, we have started working on our distribution expansion aggressively in terms of taking it forward and building the distribution there.
On the North India side, right, we have been constantly working and improving on our distribution, right side. And we are moving well on the North side. On the North side, we are able to add kind of number of routes also. If I look at, they have gone up by almost 7-8%. In terms of build-out rate, if I look at over the two-year period, they have also kind of jumped up by close to 20-odd%. So if I look at over the last one year, quarter three, 2025, or quarter four, 2025, we have a jump of more than 11% in outlets on the English Oven Bakery side. So there is, you see, as I always say, that and I will quote you one more number. Let me come on the biscuit side.
On the biscuit side, also, the quarter three last year, we stood at a build-out rate around 280,000, and our quarter three exit, we stood around 330,000, so a fair amount jump there also in terms of the build-out rate of last year, quarter three, and this year, quarter three, and that's happened. We had put a lot of focus in our distribution because when we revived our Cremica Preferred Outlet about three years back, there was a good amount of work which has happened there, and these are high-throughput outlets, high-store, well-merchandised, and they are giving us very, very good results, right? And so a lot of focus as a part of our strategy went in this financial year on a Cremica Preferred Outlet, and we have kind of grown over 22% of growth in the Cremica Preferred Outlet, and their contribution to sales has also increased.
Their premiumization of these outlets has touched almost 57-58% now. And also, while I'm talking about distribution, I must mention to you that our overall premiumization, which has improved very sharply over two years from 26-27%. And we were at quarter three last year at 37%. And now we sit over 40%. So fair amount of work also in terms of execution and premiumization has happened on the biscuit side. So I always say that distribution and selling excellence is something excellent we have built over the last few years, and we continue to invest behind it. And alongside also that something on the commercial side, we brought in control very well about two and a half, three years back in terms of NOD on stocks and distribution. And we continue to maintain that discipline, right?
So our NOD continues with number of days of outstanding in stock. They continue to be very well in control. So we were three years back when we started was very high. Then we brought it down to 27, 28 days. And the stock level continues to be in that range. So this is just a brief to you. And I thought for the benefit of the audience, let me cover all these items while you've asked this question.
That's excellent. Thank you very much for this. I'll come back to more questions. Wish you all the best. Thanks.
Thanks. Thanks.
Thank you. The next question is from the line of Amit Purohit from Elara. Please go ahead.
Yeah. So thank you for the opportunity. So just on the domestic business itself, you highlighted volume growth recovery. But is it fair to assume that, I mean, we would be, if not double-digit, high single-digit? Is that a right assumption for domestic business for the quarter? Mid to single digit?
Yeah, so we kind of started growing in single-digit volume, to be honest, and we are kind of confident that we will continue to build this trend over in this quarter and the next quarter, so I said that Amit, that good news is that after being very low of kind of flatish, once this intense hyper-competition started in quarter three of 2023, 2024, remaining on that kind of trend for four quarters, now going into this quarter three of 2024, 2025, we have started seeing the growth coming back, and especially in the general trade, we've seen a good growth, and again, within the general trade, the CPO outlet strategy is working well for us.
Sure. And so on the new launches which you highlighted on Non-Stop Mini, especially the packaging, is that a pack similar to something like a potato chips? And what is the price point at which it has been launched?
So it's in the cracker category. And we are, as management has always briefed that we are strengthening entire kind of renovating entire cracker and the cream category. And also introducing new products in that, as we move into the future, you will see that kind of coming in. So yes. So Non-Stop category expansion, product improvement, getting closer to the snacking category and offering those products to the consumer, right? So we can kind of build this category over the next few years.
Yeah, but I mean, just to understand this better, what I understand from a packaging perspective, this looks like a pouch. So is there a breakage issue more or just like in potato chips, there would be some bit of air to ensure that there is less of breakage and it's more crispy?
So, no, no. So, packaging is robust enough. We don't expect any major. We have done our logistics test, but we just launched about two months back. So, we haven't heard any kind of complaint about extra breakages and all that as of now. And there were robust kind of logistics tests were done to ensure that we have a good packaging to ensure the product reaches in consumer hands in a right condition.
But is this filled with air as well? Just like in chips, we have?
Yeah, yeah. There is nitrogen.
There is nitrogen.
Okay. Just to, I mean, just curious to understand from a distribution, we already have kind of what was the thought process in launching this product is what I wanted to understand.
We're launching which cracker products you're talking about?
Yeah. So Non-Stop Mini Crackers in pouches. The whole idea to understand is basically we already have a pretty high distribution cost. And what we understand is that whenever you launch products which have nitrogen, typically the distribution cost kind of increases further. So just wanted to know in terms of this kind of a packaging versus a normal biscuit kind of package, how does this help in terms of off-takes? Or is that a new consumer feedback that you would have got post this launch that would help us to understand the?
Amit, first thing is that you know that over the last two years, when we doubled our direct outlets. And also in doubling our direct outlets, we have kept a very strict definition for ourselves. We have kept a minimum billing of INR 200 to count that as a direct outlet. And that's the definition kept by the biggest player in the industry, right? So we kept a very strict definition. And as for the EC meeting, we are presenting over 700,000 outlets right now. So it is the right part of the strategy when you build a highway, right, to get as much traffic on the highway, correct? That's the reason to build a highway. And that's what our transport minister is also doing.
So now, as a part of the strategy, we're very clear that that entire cracker strategy, which is very adjacent to the entire Namkeens and all that, and it is what consumers would like to consume, we need to kind of strengthen that. And so this product is definitely in line of that to kind of strengthen the entire cracker category and build it. In terms of distribution cost, indeed, rather, as we keep adding more product and executing real well, our distribution cost, our throughput per salesman, right, will keep increasing. And the cost as a percentage to revenue will keep reducing. And that's the reason that we are now speeding up the launch of some new products, especially in the carrot cracker and other categories, to build more traffic on the highway of 700,000 and more, we are building it.
Sure. And so on the margin side, the second point was to understand your comments that probably by March you would be able to cover the cost inflation with the price increase. So if I look at this quarter also, our gross margins have not declined significantly. It's just down by 30 basis points. And if I look at when we look at from price increases, so maybe by Q1, one way to look at is that are you saying that normalized margins somewhere in the range of 14%-15% is a fair estimate to look at as we look for FY26 post? Or you think that the new capacities will come in and hence there could be kind of a margin profile slightly lower than this as you look to build utilization levels in those facilities?
So first thing, Amit, you are probably comparing our margins with respect to last year's same quarter. But if you look at last quarter, our margin is down almost kind of 2%, which is primarily led by the commodity prices, right? So what we are talking about, we need to work on these commodity prices to start getting closer to those kind of margins by March as a run rate of the mark. In terms of overall margins, yes, we expect in the by quarter one, we should be back in the range of 14%-15%, which has been our guidance and which has been what we haven't delivered. So yes, our endeavor definitely is that to get back by quarter one to that range of 14%-15% margins to be delivered.
And then build on the top of that, both in terms of investing in the business and improving our margins.
Sure. Thank you so much. Thanks.
Pleasure. Thanks.
Thank you. The next question is from the line of Samantha from Centrum Broking. Please go ahead.
Yeah. Hello. Can you hear me?
Yes, you are.
Yeah.
Please go ahead.
Yeah. So sir, a couple of questions from my side. As you have guided rightly again the margin guidance. So earlier we had a guidance of 14%-15%. But if I look at the numbers of nine months, it's 30.7% till now. So this year, it's probably so how it will be in Q4? It will be a sequential improvement from Q3? How do you look at it right now?
So, Samantha, we definitely, as you briefly about the action we have taken both in the cost and the pricing side, we definitely expect quarter four to be better than quarter three in terms of our margins. And we should get back to our margin range by quarter one of the next financial year.
Okay. Okay. Thank you. And second question is related to in the opening remarks, Amit, Anoop Bector has mentioned some other categories we are planning to launch or looking. What are the other categories we are looking? What are the other categories we are looking if you can elaborate?
So Anoop, you would like to answer that?
No, it was not other categories, but these are extensions of our businesses, right? Like rightfully, there was a question on this new different type of packaging what we are doing. So our strategy for Mrs. Bector's is very clear that we want to be innovative. We want to be different. We want to give consumer experiences. So those sort of things, whether it is on the health range or on the snacking range or on the taste front or a cream. So it's more about extension of categories what we are currently doing. So if it's bread, we will have different experiences in bread. If it is biscuits, we'll have to have different. Mrs. Bector's would definitely aim through its NPD to be a big differentiator in our categories here.
Got it.
I will add, just to brief, it's exactly in line with what Anoop said, but you would know that we made a very significant progress on the frozen food side over the last one and a half years' time, and we were primarily supplying in B2B segment, and it's kind of done extremely well on B2B segment, and we continue to add new products to that, so by quarter one of the coming financial year, we will start introducing some of those product lines in our B2C segment, which is English Oven, and start kind of building that, so finally, we will have a whole suite and savory range coming in there, so that will add, and yes, just to further add, we have a line of products both on the health side.
We have introduced, as Anoop has mentioned in his speech, so there is no palm, clean label, no Maida. A lot of products have been launched on the bakery side, on the health side. Similarly, we have some products lined up on the health side, on the biscuit side, which you will see coming in the next few months' time, along with some of the innovative products, which we would not like to share at this point of time. Let the surprise unveil when you buy it in the market.
Got it. So sir, if you can point some highlight on this institutional bakery business for this quarter, is it a high single-digit growth or mid-single-digit growth?
Come again. Sorry.
For the institutional bakery, so what kind of growth for this quarter we have seen? Is it a mid-single-digit, high single-digit?
It's a very good question, and good you asked me. All of us know that the QSR segment has been kind of on a slow run for the last few quarters. But as I was just briefing before this to you that we kind of invested on developing the entire frozen range. And that frozen range has given a very good fill-up to us. And it has been kind of growing quarter after quarter over the last six quarters, last four to six quarters. And we had a good B2B business in terms of revenue growth in the quarter three over the previous year, quarter three. So it was a very, very good, impressive run we had in quarter three, and which is continuing for last quarter, two quarters in terms of driving the B2B growth.
We want to start introducing this product, as I said, one after the other, and also on B2C on the zone side, which should also further give a momentum there.
Okay, and the last question from my side for international biscuits. So if I'm not wrong, our contribution is 50-50, like 50 for our own brands and 50 for private labels. So how do you look for next couple of years for this international business, like kind of growth, and how do we improve our own brand contribution in this particular segment?
I'll just say one line and hand it over to Suvir to do the fill-up, so our international business definitely, as I said earlier, has been growing much sharper and higher over the past two years, and thus the contribution obviously is better within the biscuit, is higher than 50% for exports, right, and over how we want to take it forward over the next few years, Suvir is the right person to kind of elaborate on that.
Yeah. Hi. So I think our strategy is basically that we want to position our brand all across the world. Our first step is that we've opened up an office in the Middle East. We have two people based out of Dubai, one person based out of Ghana who is looking after the West Africa. And their sole responsibility is on building a brand, looking into distribution, work alongside distributors and importers to strategically place our brand on the retailer shelves and the mom-and-pop shops all across the country, right? So we are now present in, because of the Middle East team, we are present in all of the six GCC countries and a lot of the countries within Africa with the Cremica brand.
So what now we are trying to do is any country that we enter, we always try to study what the local competition is, make similar products, and always try to position our brand at the forefront. So I think that's going to be the strategy going forward. Yes, like you said, right now, it's a 50-50 contribution between White Label and the Cremica brand. I think it will always year to year differ a bit because we are also investing a lot in relation with global retailers such as Walmart, H-E-B, Walgreens, CVS in the US. So we are always going to have. We are going to build the White Label business simultaneously alongside the branded. So it will always be a dual-focused approach on what we want to build on. I hope that answers your question.
Got it. Got it, sir. Thank you very much for.
Thank you. Participants who have a question may press star and one on the touch-tone phone. The next question is from the line of Rajat Agarwal from Nilgiri Investment Managers Private Limited . Please go ahead.
Hi. Good evening, sir. My question is related, just a follow-up from the previous participant's question related to the B2B business. While the revenue growth is noted, I just want to check, have the margins been impacted similarly in B2B business as well? Or have the margins improved? So between B2C and B2B, how have the margin movements been? And I'm talking about comparison from Q2 to Q3.
Normally, in the B2B businesses, we have a hedging policy where we give predictability to our buyers. So until there is a completely distressing situation, things remain in whatever annual business plan is, which has been discussed in the month of first quarter of the year, and it works towards the closure of that. So I think, Manu, you can detail it further.
I mean, you answered because we hedge every block of commodities for a year. And thus, we are kind of ring-fenced in case of pricing and the costing side. And we have an annual kind of based on the cost, we have an annual price revision every year around maybe April, May, depending on how the hedging happens, how the cost with our partners. So that's a process running well. So we are kind of fair on the margin investment.
So then you're saying B2C business would have suffered higher margin loss as compared to the overall margin reduction that we have seen. Will that understanding be correct?
That understanding will be perfectly correct. That, in the bakery side, also to add to that, Rajat, on the bakery side, because as Anoop was explaining, it's a short shelf life product, and the industry gets quick into the action of correcting the prices. So we also did the price correction, and we kind of covered much faster. We covered ourselves in quarter three in terms of margins on the bakery side.
Right. So that's very helpful. Sir, second question is related to the sequential decline in the turnover. We've been taking a lot of initiatives, be it in terms of increasing visibility through new advertisement initiatives or increasing our distribution or introducing new products. So in light of that, I mean, do you think this volume decline is a particular concern in this quarter or the turnover decline?
Our revenue growth on an underlying basis as a company is around 17%. This quarter, we are at 15%, right? Yes, I think that everybody is very well aware of the way the consumer industry has been under extreme pressure. Most of the results, which I have seen over the past few weeks, have been mid or low single-digit kind of growth. Our guidance has always been we will maintain on an annualized basis a growth of around. Second thing is that second quarter for us, as both on the domestic side and on the international side, is a peak quarter, right? It is a peak quarter because the international side is all about readiness, getting ready for the Christmas. So there is a large amount of shipments which go out for the international customer to get ready on the Christmas side.
And also on a domestic biscuit side, it's a peak quarter which we have. So yes, the consumer slowdown and the slowdown in the consumer trend is certainly a concern. And we do expect, and obviously, the actions taken by the Honorable Finance Minister and the government should come handy in terms of reviving these consumer trends over the next two quarters' time. But yes, that's a real situation. And that's the reason. But I would say that always see how we are performing versus the industry. And we continue to be over 2x versus the industry trends, right? And that's what they want to maintain. But you will have to look at us on an annualized basis. So we have maintained a clear-cut guidance on mid-teens on an annualized basis. And that, I think we are on the right path.
Great to hear, sir. Thank you. Thanks a lot.
Thank you. The next question is from the line of CA Arun Kumar Maroti from Shubh Labh Research. Please go ahead. I believe the line for the participant has dropped. We'll move on to the next question. The next question is from the line of Pawan Kumar Roy, an individual investor. Please go ahead.
Am I audible?
Yes, you're audible. Please go ahead.
My questions pertain to both bakery and the CSD section. I want to know what is your revenue in CSD and other institutions compared to the total revenue as a percentage. Similarly, in the QSR, what is the revenue in the QSR share there? And I want to know what is the growth you are seeing in both segments in future, and what are the margins in these segments? My first question.
For me, the first thing to share, we kind of don't share the channel-wise revenues or volumes in this call. But just to give you a brief glimpse on that, that Canteen Stores Department, we as a company are the leaders. The entire armed forces love our biscuits. And they kind of acknowledge that by buying our biscuits in the Canteen Stores Department. And we continue to kind of lead in that. So we have a healthy contribution, and we continue to, well, we continue to introduce new products every year in this segment to service our armed forces and other staff in the segment. Coming to QSR, in a bakery segment, QSR accounts for, we would say, close to one-third of the total revenue, right? That's what probably contribution is. And we continue to be the leaders in this segment on the QSR segment.
We continue to maintain our dominance. This dominance got further enhanced by us introducing frozen range over the last two years back, and that we're building that frozen range to continue to maintain our strength and continue our maintain and improve our share in this B2B and the QSR segment.
That's great. My next question is regarding this. How much is our market share in the total market in both bakery and the bread and buns sectors? Biscuit side.
Market share in case of bakery is not so well public, but we do conduct our retail audits. In our retail audits, we concern in the Delhi NCR region. We have improved our market share year after year, and we're getting closer to 20-odd% market share and a strong number two player in this area. We have expanded very well in the upcountry of North India also over the last two years, and which has started contributing well. We will be focusing in the coming financial year a lot on upper north, which is from the upside because that's another big part of the bakery consumption market where we started journey this year. A lot of focus will go on that.
And another flavor, and this was more about general trade I was talking about, but I would take this opportunity to brief you and other audience which are on the call that we took the lead in English Oven bakery on the quick commerce side. And the quick commerce side, over the past two years, we have built our huge strength. Rather, two years back, Blinkit gave us as a number one FMCG award, and we continue to lead in that segment, right? And today, quick commerce on a bakery side is contributing over 23-24% of our revenue. And we continue to build that category build. And we all know that quick commerce is a channel which is kind of growing and will grow multiple times in the coming years to come. On a biscuit side, our market share in North India is about 4.5%.
In the upper part of the north, especially Punjabi, we are touching around 14.5%. We continue to maintain our dominance in the upper part of the north and continue to hold the share while we are improving our share in a lower part of the north. This is briefly about our share both in the bakery and the biscuit sector. In case of what I call it is, in case of QSR, you very well know we are by far the market leaders. We have a lion's share there in terms of the QSR segments there.
Thank you. Thank you very much.
Thank you. In the interest of time, we will be taking a last question. The next question is from the line of CA Arun Kumar Maroti from Shubh Labh Research. Please go ahead.
Yeah. Thanks for the opportunity, sir. I have a couple of questions. My first question is with regard to the tie-ups we have with the Walmart and Lulu. So whether they have started to supply them or what is the status of that?
So we? Yeah, so we are already supplying to Walmart and Lulu both. We've been a partner with Walmart for the past two years, and we are continuing to build our relation with the Walmart team in a very strong manner, and we'll continue to hopefully add newer and newer SKUs and get into the everyday category with them as well within this year, and Lulu, we've been working with them since, I would say, the past five years or so, and we are still a very promising partner for them, and we are continuing to add newer categories and build our volumes with them.
Okay, sir. And on the Bakewalk side, if you can share some updates, sir, what is the current status?
So on the Bakewalk side, as we have said earlier, also Bakewalk, we had opened the four, you can say, outlets to start offering especially the frozen range to our consumers because that was our way of testing out the consumers, taking feedback from that, and before we start building our B2B business. And I think that feedback has been extremely helpful for us because this gave us a direct interaction with the consumer. And that's what has enabled us to grow this frozen part of the business in B2B very, very well over the last two years' time. And that is there. In terms of Bakewalk, how do we want to take it forward is something which we are evaluating now in what shape and manner we will evaluate.
I think in another three, four months, we will be clear whether we want to take it forward or we want to leave it at this stage. How do we expand? What will be the way forward for that? I think in the next investor call, surely, I think we should be able to update better on that. I think with the objective, we had opened these four stores, done the Bakewalk, has really helped us in terms of interacting with consumers and building our B2B business. Now, as we take it to B2C, we will be offering the similar products in the retail chains, right? So that's how this will interact. How should we take our stores forward is something we're working on right now. In the next investor call, we should be in a better position to update you.
Okay. Thanks, sir.
Do you have any further questions?
Yeah. Thanks. No, I have done with my question.
Thank you. That was the last question. I would now like to hand the conference over to Mr. Anoop Bector for closing comments. Please go ahead, sir.
Thank you, everyone, for joining us. I hope we have been able to answer all your queries. In case you require any further details, you may please contact us or Orient Capital, our investor relations partner. Thank you so much.
Thank you. On behalf of Mrs. Bectors Food Specialities Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.
Thank you.