Q4 20/21

May 7, 2021

Ladies and gentlemen, good day, and welcome to the Q4 Results Investors Conference Call of Dabur India Limited. As a reminder, all participant lines will be in a listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Ms. Ghavan Adewaliya. Thank you, and over to you, ma'am. Thank you. Good afternoon, ladies and gentlemen. On behalf of the management of Dabar India Limited, I welcome you to this conference call pertaining to the results for the quarter and year ended thirty first March twenty twenty one. Present with me on this call are Mr. Mohit Palhotra, Chief Executive Officer, Dabar India Limited Mr. Ankush Jain, Chief Financial Officer Mr. Sharuk Khan, Executive Director, Operations Mr. Adesh Sharma, Executive Director, Sales and Mr. Ashok Jain, EVP, Finance and Company Secretary. Please note that due to the lockdown in Delhi and CR, many of us are working from our respective homes, so kindly excuse if there are any connectivity issues during the call. We will start with an overview of the company's performance by Mr. Mohit Palossa followed by a Q and A session. I now request Mr. Mohit Palossa to start his presentation. Thank you. Over to you, Mohit. Thank you, Gurgan, ma'am. Good afternoon, ladies and gentlemen. These are truly challenging times. I hope all of you and your families are safe and healthy. Just as our hearts go out to everyone affected by the and more devastating wave of COVID pandemic, we are also eternally grateful to the frontline medical professionals and nursing staff who are risking their lives every day to keep us safe. This is a time like no others in our life. The pandemic is now striking us closer at home, affecting our families, communities, organizations and even our perspective and way of life. At we are focused on how to best protect and support our families, employees, business partners, communities in the face of this unfolding crisis. I'm equally inspired by the deep commitment and superlative efforts of each and every member of the Dabo family who have gone above and beyond the call of duty to sustain our manufacturing and supply chain operations. Together, we have successfully converted the challenges into opportunities and have emerged as a more flexible, agile and fearless organization. As a result, we have reported one of our best performance in a very tough COVID year. In financial year 'twenty one, Dabur achieved consolidated revenue from operations of INR9562 crores, growing at 10% over the previous year. Our India FMCG business recorded a growth of 15% with volume going up by 12.4%. Profit after tax increased by 17.2% to INR $16.93 crores. We have crossed several milestones in the process. We have crossed INR10000 crore of gross sales for the time in history of Dabul. Our operating profit exceeded INR2000 crores. Our market capitalization touched INR 1,000,000,000,000 mark. One of our flagship power brands, Dabur Red, touched the INR 1,000 crore mark. We have added INR 500 crores to our health supplement portfolio, which includes iconic brands of Dabur Honey and Dabur Chawan Prash in a single year. Performance highlights. Let me now touch upon our quarterly performance. During the quarter ended thirty first March twenty twenty one, we have registered a growth of 25.3% in consolidated revenue from operations. Our stand alone business recorded a growth of 30%, backed by a robust volume growth of 25.4%. Consolidated operating profit increased by 25.6% ahead of top line, and profit after tax grew by 34.4%. Coming to category wise performance. Our health care portfolio recorded a growth of 23% in quarter four, driven by creative contextual marketing campaigns, localized sales activations and sustained investments behind our brands. Nabar Chavantras reported a strong performance despite it being off season, gaining market share of 170 basis points. Carbara Honey continued to do well and gained two thirty basis points in share in the Honey category. The Digestive portfolio posted a 20% growth on account of improvement in mobility and out of home consumption. OTC business posted a very strong robust growth of 34% on back of good performance of large sales, Shilajit and NPDs like HealthCrop, HealthJuces and other Ayurvedic products. The Ethical Ayurvedic business also performed exceedingly well, growing by around 40% on back of strong demand for immunity boosting products, contextual activation and visibility drive in the chemist channels. Within home and personal care space, oral care was a star performer, recording a stellar 42% growth. Dabur Red Paste continued its strong growth momentum with Misswark and Baboole franchise also recording a strong double digit growth. Our market share in the toothpaste category witnessed 120 basis points gain vis a vis last year. Recently launched NPD like Dabur Dans Rakshak and Dabur Herbal range of toothpaste continue to do well. Dabur Lal Dansmanjan also witnessed a growth of 23% during the quarter. The hair oil portfolio had a good quarter, reporting a growth of 25% on back of double digit growth in perfumed oil and coconut oil portfolio. Our market share in hair oil improved by 17 bps. We will continue the strategy of supporting our core brands with flanker brands and also launch variants to cater to varied consumer needs. The shampoo portfolio recorded a growth of 33%. Our market share in shampoos continued to see an uptick and increased by 70 basis points in the quarter to touch ever highest 6.5%. Home Care marked a turnaround during the quarter, growing by 24% with all brands reporting a smart recovery in demand. Despite the air freshener category continuing to report contraction during the quarter, odorless brand saw 20% growth. Odorools and Sanifresh also witnessed strong double digit growth. While Odorool registered a 90 basis points gain in market share, Odorools recorded a 130 basis points improvement in market share. Skin care portfolio witnessed a growth of 38%, driven by strong growth across portfolio. Voolabhari performed exceptionally well with a growth of more than 40%. There was a good revival in fem and oxy portfolio as well. Our food and beverage business improved significantly, reporting a growth of 28%. In the beverage business, both in home businesses and out of home consumption reported a strong performance. Our market share in J and S D category saw an increase of 80 basis points. In our pursuit to grow our food segment, we continue to expand our business under the homemade brand, which saw growth of 36% in the quarter. The new products launched under the food and beverage portfolio like Real Mango Drink, Real Frappe Milkshakes, Homemade Chutneys and Pickles range continue to see a very good traction in the market. Among the channels, e commerce continued to be outperformer with a growth of 2x. This channel now contributes around 5% to 6% of our sales. With the on digital and e commerce, which has increased considerably during the COVID crisis, we were able to build a closer connect with our customers, consumers among the rising preference for online purchases. Our recently launched e commerce innovation such as apple cider vinegar, BB Care range, pralivariate honeys performed very well. During quarter four, we noticed we introduced Vartika Select shampoo range with new ingredients like coconut oil, Moroccan argan and red onion seed. Innovations will continue to be a very strong driver of growth for the company, and we intend to continue to convert consumer insights into innovative and relevant products. Our international business recorded a growth of 21% in constant currency during the quarter. In terms of regions, Middle East, North Africa region posted a growth of 24%, Egypt grew by 22%, and Namaste business saw a growth of 12%. SARC business performed well with growth of 21% in Nepal and 47% in Bangladesh. International business also reported an increase in operating margins, aided by favorable country mix and cost saving initiatives. The year ahead. With the emergence of this more devastating COVID wave, the operating environment has become very challenging. While there is not a nationwide lockdown till now, unlike last year, the localized restrictions are leading to some last mile disruptions in supply chain. That said, we are better prepared as a team to handle the pandemic as compared to last year. We are also applying learnings from last year on streamlining the supply chain to ensure minimal disruption in supply. While this remains a developing situation, our factories continue to operate on relatively normal basis. Going forward, we anticipate that there may be an impact on discretionary product portfolio as people are staying home and outdoor activity is restricted. However, our health care portfolio, especially the immunity building Ayurvedic products, is already witnessing an uptick in the April and should make up for any loss in the discretionary product business. The wave has posed a greater humanitarian crisis. Safeguarding the health and safety of our employees remains our topmost priority. In the past few weeks, we have tied up with local hospitals and organized vaccination drives for our employees and their families. At the time when access to physical medical support is becoming increasingly difficult, we have been helping our employees and the immediate family members gain access to trained medical experts, doctor consultations online, COVID testing facilities and home isolation programs. We have converted our guesthouses into COVID isolation facilities equipped with oxygen concentrators, cylinders, nursing staff, ICU kits, etcetera. We are planning to set up an oxygen generation plant, work is in progress, and isolation facilities near our manufacturing units to help out our employees, not only just our employees, but also the community members. We have also extended a special insurance cover to our 3,200 frontline sales force who were not on our payrolls and to six fifty CNFA employees. I understand these are difficult times, and many of our friends and families are struggling with health issues and other concerns. But I'm confident that we will all emerge from this much stronger and much more resilient in the future. Please take care of yourselves and your loved ones. Stay safe and protected. I now open the Q and A and invite your questions. Thank you. Thank you very much. The question is from the line of Aditya Sohman from Goldman Sachs. Please go ahead. Hi, good evening, Mohit, and thanks for your comments. So the question is just in terms of seasonality that we're announcing in 4Q. So before, let's say, FY 'twenty, I mean, 3Q and 4Q were pretty similar in terms of revenues, maybe less than INR100 crores difference. But we are seeing last two years, the gap in 3Q and 4Q, especially in domestic FMCG, quite significant. Any reasons for this? Right. Aditya, if you actually see, our health care salience and contribution of business has actually significantly enhanced over the past couple of years. And our health care portfolio is more winter centric, especially the subpart of health supplements is pretty winter centric. Therefore, quarter three and quarter four assumes a higher resiliency quarter two, on account of buildup for the March and quarter three because of seasonal consumption happens in the business. As we enter quarter four, it's actually the HPC which becomes more salient, and there is a moderation or the tapering in the health care business, it starts on. So that's the way the business has been. But I think because health care saliency has gone up, that's why you see a little marked difference in the seasonality now. And moreover, what's happened in the last quarter of last year, we saw a little moderation or tapering off in the growth rates of our Honey and Chaban Crush business on account of it being off season. And there was a tailwind earlier in quarter two and quarter three. That's why the difference may be there in terms of CAGR that you must be seeing. That's right, Pat. And in terms of going forward, I mean, you indicated that in April, you've seen some acceleration towards the end on Health Supplements, but you also lap a very tough year. So would you expect to deliver, say, what sort of growth rates would you expect to deliver on sort of fairly high number for L7? See, Aditya, we were always targeting before this COVID wave actually hit us, we were always targeting to hit a double digit growth, and we were pretty well prepared with it. And but for this shouting of COVID second wave, now things have become little more dynamic and fluid, and one doesn't know where this will land up in. As far as April was concerned, I think we had the momentum of March, and it carried forward in the April. So we did not see any impact. But I think whatever lost ground that we may have on account of lockdowns and if this wave is limited to June and May, I think we should be covering it up in the balance part of the year. That said, we have a high base in quarter three, especially when we lap over the season. But I think we are pretty much prepared with a lot of innovations and price increases, etcetera, to ensure that our trajectory goes up. That said, we are hardly INR 8,000 crores, and we have competitors who are INR 45 crores, INR 46,000 crores. I think there's a huge headroom to grow. And especially in health care, which are low penetrated category, I think it's just not the base that we need to see. It's the opportunity ahead of us that we need to see if we have to really leapfrog in terms of growth. So I don't think there's any lack of opportunity out there. And as you know, in Foods business, we went to the drinks category, regeared the business from a market size of INR 1,800 crores to now INR 7,000 crores. We're getting into Foods business with a homemade brand. Foods category is essentially unbranded in the country. Huge opportunity to grow. Hair oil, as you know, is INR 10,000 crores, and we are hardly 15%, 16% Oral care, another INR 10,000 crores, we are only 16% market share. Home care, we are scratching the surface. Skin care, we're not doing not done much. So I think the opportunity is huge on account of diversified portfolio of Dabur. We are very small. So I have no doubt that we should have a good year provided the COVID situation improves a bit. Fair enough. And just lastly on this Health Supplement business. I mean, so this quarter, there was no impact because more consumers started getting out. Do you think the impact was just seasonality and weather changes? The impact was seasonality. The tapering off or the moderation in the healthcare peak growth that you saw in quarter three that came down on account of seasonality for sure. And honey as a category, because the competitive intensity became very high in quarter two and quarter three, the category actually shrunk. And because of shrinking of the category, we saw the growth rates mute a bit. But as the STRs go down and the consumption starts, the new wave of COVID, I think the category should come back again and with competition coming in, it should expand the pie going forward. I think it was pretty short term and that should come around. Thanks a lot, Mohit, and all the best for the year ahead. Thank you, Atuchat. Thanks. Thank you. The next question is from the line of Adnan Mitra from Credit Suisse. Please go ahead. Yeah. Hi, Mohit. My question was on the fourth quarter. If you look at the growth over the fourth quarter of FY 'nineteen, which is because last year there was a disrupted base. If you look at the two year CAGR of this quarter on the India business, it looks like a 4% growth CAGR at 4Q 'nineteen to 4Q 'twenty one. And while last two quarters, you were clearly doing double digits pretty comfortably. So I think the framework you had in mind was that there will be some slowdown in health supplements, you would make it up through, let's say, foods and some of the other out of home discretionary categories. So that equation doesn't seem to have worked in the sense that there is a sequential moderation in the two year CAGR. Is that something that worries you when you look at an FY 'twenty two lens of how you will deliver that double digit ambition? All right. Adam, yes, I think the primary sales is what you look at, in which you look at 4.8% CAGR as compared to the previous quarters, wherein we saw a double digit or 8% CAGR, which is happening. If I look at secondaries, secondaries are pretty much in line with what was there in quarter two and quarter three and quarter four also. What we did is we implemented CRS, which is continuous replenishment system in our sales system. If you look at our previous quarters, year before last quarter four, we used to do preseason loading because the season used to happen, consumption used to happen in quarter one and loading happened in quarter four of the previous year. Now this year, we did not do that kind of a loading on account of the CRS implementation and wherein we fixed the inventories at the stockist level. And we whatever secondaries happen is what primaries we take in. So there has been a little bit of correction in pipeline of sorts, which has happened in the business. That's why the delta of growth that you saw has got shaved off in the quarter four. And that's the way we want to see the business. So I'm not overtly worried because I think secondary sales is pretty much in line. Offtakes are pretty much in line. Market shares are growing across all categories, and we are growing ahead of category growth numbers. So there is no overt worry here. As far as the food business is concerned, that also come around the bend for us. Beverage business has grown by 37%. And if I take out the institutional business, this business will be growing at around 40% for us. Apart from beverages, the culinary business has grown by 36%. We already have a shortage of coconut water as we speak in the market, and we are wanting to augment capacity. It's not very easy. So I don't think it worries me quite a bit. But yes, the base is there, and I think we'll lap over the base, but that's a problem that we have. I hope I've answered your question, Radhub. No, that's very helpful, Mohit. If you could just a follow-up on that, any sense of how much could be the shaving off of primary versus secondary gap? And is it like a change which has happened once and now there is no incremental impact going ahead? Or is a process where there could be some impact even in the subsequent quarters where you need to further kind of reduce the pipeline? Not really. If you look at the pipeline, earlier, we had to have 25 of pipeline. That pipeline got corrected in the current year. We ended at around seventeen days of pipeline. So there has been six to seven days of correction in the pipeline on account of the preseason loading. We want it to be like that, Arnav, but one doesn't know how the season pans out to be. With this kind of uncertainty, one would definitely don't want to load. But what's happened is that because we know that now COVID situation is going to hit us, there are selective lockdowns. So we are increasing inventory levels of the trade as we speak. In the month of April, we have increased inventory levels so that SDRs should not drive the retail level, and we increase. So it's a pretty dynamic situation. But that said, we've already implemented the system, and it's very virtuous to implement the system so that you, by default, we don't increase only by design. If we want to increase the inventory, then we increase the inventory to safeguard the future businesses. So that's the way this is. But I don't think this is going to be the case going forward. This is one off implementation where we corrected these inventories by around six, seven days to maintain a better hygiene of the distributors. And because we got a better ROI, we've also been able to shave the margins of distributors selectively. Right. And just any quantification on how much could be the gap, primary, secondary for the 4Q itself, any kind of broad range? The difference I told you in terms of the number of days, that's the difference broadly. And I will not be in a position to quantify this difference, but the growth difference will be if you see a growth of around 4.8 and if secondary is in the range of roughly around INR8.4 crores, this should be different of around INR70 crores, INR75 crores of difference. That's ballpark I'm giving you a number. Got it, got it, got it. No, that's very helpful, Mohit. Thanks. That's it from my side and all the best. Thank you very much. Thank you. The next question is from the line of Abnish Roy from Edelweiss. Please go ahead. Yes, thanks for the opportunity. My question is on the standalone gross margin. So there's almost a two fifty bps compression. So I wanted to understand which part of the product portfolio you are taking price hike and which quarter you expect this kind of a gap to be reduced? Right. So Avnish rightly noted, so we have a compression in the domestic business because we've seen an unprecedented kind of inflation. And this inflation is in the tune of around 5% to 6% in the overall business and expanding across the entire product portfolio. of all, agri commodities. Agri commodities have gone up, and we have herbs and spices in agri commodities where there's been a huge inflation, whether it's amla, fruit or it's vegetable oils or it's the bucket is hydrocarbon linked, which is a fossil fuel linked packaging materials and raw materials, where we've seen huge spikes because petroleum rates are much higher as compared to last year. is specialty chemicals is also higher for us. So across the board, there's been inflation, and this is unprecedented. We've tried to pass on this inflation to the consumers by way of 3% price increase. The 3% price increase is not good enough for us to mitigate this entire impact of inflation. So going forward, we'll be taking round of price increases that may happen. And the follow through impact of previous price increases will come in the quarter one as we see it through the quarter. But there will be some margin pressure in the first quarter, that said. But we expect the commodity prices to cool off in the half of the year. And therefore, we should be able to compensate the margin loss in the first quarter of the second quarter in the half of the year. So that's what my take is. And another point is mitigation. We've also embarked on COOP optimization project. I've already alluded to in my previous calls. We got Samrithi project. This year, we have accrued a gain of around INR50 crores on account of cost savings in Samrithi. Next year, another INR100 crores is planned to come out of the Samrithi cost saving initiative as a company. So half of the mitigation will through price increases, and hopefully, half will come through cost saving. Related question is A and C spend. Last two quarters also, your A and C spend was quite high. And in the Q3 con call, you said that in Q4, likely, right, it will come down. It hasn't come down. In fact, 30% stand alone sales growth, 69% A and P cost growth. So what has led to that not panning out? Yes. So Amish, yes, we are committed to be increasing our demand related activities, and advertising is a very important part of building demand, not just for our power brands to gain market share. That's what we are committed to in terms of volume growth and also for new products. So that said, advertising is most important. But if you look at year on year trajectory of percentages spend on advertising, I think we are pretty low. If you look at quarter two and quarter three, our advertising spend was roughly around 8% or even higher of the total top line. But in the current quarter, which you just talked to, it's still point eight odd percent, which is higher than last year of 5.2%. But last year, we had cut back on advertising because of the lockdown situation, which we saw. So therefore, we are committed to be increasing our advertising spend. And the margin shrinkage that you saw is only in the quarter four. But if you look at the full year, our margins have remained the same, and that is what the guidance that we had given that we will maintain our margins. And anything excess coming in the P and L, we will invest behind the business. So for the full year, we have almost maintained the margins. The little delta shrinkage that you're seeing in the margin, which is only around double digit, I think it's around 10% or 15% dip in operating margin down in the overall business, that is on account of last year bonus reversal. Otherwise, our margins would have been at the absolute same levels. And any incremental profit has been deployed back into advertising. That said, going forward in the year, if the inflation cannot be mitigated by your price increase or by cost mitigation measures, then we may have to moderate some amount of advertising, but that will be our last priority. That said, we wouldn't want to do it, but push comes to shove, if at all we have to, then we'll have to regear or recalibrate our entire media strategy and focus on lesser channels etcetera. So that's my question is on Hair Oil. All the three companies which have bought Hair Oil, they are claiming market expansion. So I wanted to understand who is losing market share? And is there any slicing or dicing of data? How can all three companies see market share expansion? Sure. Now this is a difficult question that you've actually asked me. So I think a lot of smaller players and more expensive hair oils are the ones that are actually losing market shares this time. As far as Dabal is concerned, we've gained 70 basis points. And sequentially, we've been gaining our position We had lost market share, but that was in the first quarter of last year, which is the COVID quarter, which is where we had lost some shares. But this time, we've grown ahead of the market. Just to let you know, market is growing at around 2% or 3% volume growth, and we've registered a 24% volume growth there. Also, we are bound to increase market share. As per Nielsen also, we have increased our numbers, absolute numbers. Our volume growth are much, 9.3 as compared to 2% of the category in the hair oils. And across subsegments of hair oils, be it coconut oil, where our growth is around 40% plus. In perfumed aero oils, our business has grown by 20% -plus. So across the board, I can't comment upon other companies gaining share. Maybe smaller fringe players have lost, but we can perhaps get back to you after scanning the entire incident as to who's lost out there. Sure. Like you said, my last question on OTC and health portfolio. So in sanitizers, consumer behavior changed dramatically. So in Q4, when COVID was not much of an issue, at least for the two, two point five months, how was the repeat purchase you saw in Chavantras, Ami and your ethical portfolio of the L drop, LUTs? And did you see a big dip? And is the big dip now reversing? Right. So as I told you, the Healthcare portfolio was more winter centric for us as far as Chavanprash and Hani definitely. So there was a moderation from the peak levels of quarter three that we saw and that was bound to happen because off season and in season. There is difference between the two. The pace of businesses are different and the growth levels are different. But that said, we saw growth of 150% in Chavan Praj also and a double digit growth that we saw in Honey business also. And we've gained market share in Chavan Prash to an extent of 170 basis points. And in Honey, we've gained market share of two twenty basis points. So we strengthened and consolidated our position as far as both these markets are concerned. As far as Ayurvedic medicines are concerned, our ethical division, that continues to surge ahead because it was not related to COVID, and people had started moving out. And as far as the penetration of Ayurvedic health care has improved in the country since the phase of COVID situation. So we are in a good position, and we're launching a slew of NPDs to complete our portfolio in the Ayurvedic medicine business, launching value added products in our health supplement business. And in OTC business, we launched our Health Drops and our Health Juices and Single Herb and Polyherbal range. And all those ranges are actually doing extremely well for us. And because we didn't have a base, the growth was there. But some amount of seasonality, for sure, is there in this business. As far as And that point, yes, the wave of COVID is concerned, we are definitely seeing a tailwind again. If I have to separate April one fortnight and fortnight, we find that our Healthcare business has kind of really got a spot in the April on account of the COVID cases surging. But that said, portfolio but that said, the HPC portfolio would not suffer as much because there is no complete lockdown. People are still going out in the market and doing purchases unlike last year. So we are more confident in the current year of the portfolio doing well on account of HPC and food not being completely shut out to consumers because retail outlets were not there. Now retail outlets are there. People are delivering at home. They've got used to e commerce sales. So things should be much better as compared to last year, and we will be able to control them much better. The repeat purchase at the trade level is showing positive trend as far as our distribution billing software is concerned, even for healthcare. Now in the last month of the last quarter and even now. So we are seeing a positive trajectory now in the Healthcare business on account of COVID. Just one last follow-up there. In one of the earlier quarters, Health portfolio demand was so much that you are not able to meet. Currently, again, demand you said has gone up. But because of the restrictions in Kirana shops and other challenges, is there any stock out or loss of demand you are not able to meet in the current scenario, any significant stock out? Yes. There is a stock out in the Foods business. Our coconut water business is completely stock out now. We are not able to service the demand in our coconut water business. There are some variants in juices where we are facing stock out, amla, etcetera, we are facing them stock out situation. In some medicines, we are facing some stock out situation. That said, for the big power brands, we are not facing any stock out because we are pretty well prepared after last year. And as far as CapEx of the current year is concerned, we'll be investing $5.50 crores in next four to five years to set up a greenfield facility in Central India to cater to our South Region, East Region, West Region and also the North Region. And that preparation has already started. We've already taken a 50 acre land in near Indore to spruce up and augment our capacities and which essentially will be for the health care business, Chavanprash business and also our HPC business. So that is what we are doing long term to augment the capacity because penetrations of health care are going up in the country. In long term, we have to be prepared. In short term and medium term, we are not facing any shortage as of now in the key product categories, whether be it honey or wheat, Cauliflower or be it all our key power plants. Thanks a lot, Mohit, and all the best. That's all from me. Thank you, Abhish. Thank you so much. Yes. Thank you. The next question is from the line of Parsi Panthakti from IIFL. Please go ahead. Hi, good evening team. My question is on the margins. I understand you did speak about the inflation in input costs and your price increases, round you've taken, round you're contemplating, etcetera. And you've also spoken about your need of investing in A and P. So I just wanted to understand the interplay of all these elements at EBITDA margin level next year. Do you see a Y o Y compression for the full year FY 'twenty two versus the full year FY 'twenty one? Firstly, at no cost, we will let our margins shrink for the full year. We are completely committed. As I told you, the guardrail is margin protection. And we will use different media mixes or different advertising mix elements to ensure that the demand doesn't suffer, and we commit to high volume growth. So that we will do because it could be interplay of trade, consumer promotions, advertising, BPL, digital. So there's a lot of interplay, which is possible and different strategies can be adopted. But we will not allow our margins to shrink. And for that to happen, we by the way, want to take in Samridi, and there's a cost saving on Samridi, which is planned. And that's in international business also and in the India business is what we have a fearless approach to cost saving, and we are extremely committed to protecting our margins. Great. That's heartening to know. question, and sorry to belabor this point, everyone has asked this in some way or the other, and I'm going to ask it again. See, if I look at, again, your two year CAGR, as to remove two things. One is to remove the effect of the low base in Q4 FY twenty twenty. And secondly, it will remove the seasonal aspect of sort of sales being seasonal between Q3 and Q4. So if I look at the two year CAGR for 4Q FY 'twenty one for something like health supplements, it is only 3%. And but if I look at the same number in 3Q FY 'twenty one, so 3Q FY 'twenty one versus 3Q FY 'nineteen, that is twenty three percent. And as I said, 4Q FY 'twenty one versus 4Q FY 'nineteen, that has slowed down to three percent only. Similar numbers respectively, if I tell you for OTC and Ethical segment, it has slowed down from 16% to 4%. So I mean, our earlier sort of the assumptions or the sort of guardrails that we were working with is that the COVID tailwinds have resulted in a new normal level of sales growth. And after this, on this new normal, the future growth will sort of be a normal 8% to 10% kind of growth. But what we are seeing is that the two year CAGR, once the number of cases in Q4 has come down, the two year CAGR has gone down fairly materially. And here, you will not even have the CRS pipeline correction because Q1 will be a very, very off season for things like John Trash, etcetera. So there was any in any case, no question of higher number of inventory days here. So this fairly sharp reduction in the two year CAGR in these two health care related categories on the back of cases coming down, that really worries me that the initial assumption that this is a new normal level of sales. And on top of this, we will now have further normal sales growth. Is that assumption correct? No, I don't think so. You see, Bharti, you have to look at it practically in my view. I understand that you're saying there's been a slight moderation, which has actually happened. But on the inventory levels. If you look at health care and segment, your question on health supplement, there are three brands in health supplements we have. We have glucose as a brand here, which is very salient in our summer season, wherein we used to do summer loading. So there's a glucose, there is Chavanprash and there is Honey. We saw seen a growth of 150% on Chavanprash. Now this is segment wise. We've seen a growth of near double digit in terms of Honey. But in glucose is what we've seen a compression of around 16%, 17%, which is where we used to do pipeline filling and preseason loading. On account of that is the difference that you see because out of home consumption was impacted in quarter four also. Kids were not going to school, and glucose is very school kids' usage product. So that has somewhere impacted that business. And quarter four not being a season for these. So that is where that impact has been. And number three is that portfolio mix that a sales force plays with. When a sales force is going out to the market, you suddenly have the HPC range also firing now and you have to sell Dabur Amla also. At the end of the day, a sales guy has to sell around five to six SKUs in a retail outlet. So when he sells that, if he's got a 20%, 25% growth rate, so something takes a beating out there. I'm not saying which is not. And while we have four different verticals, so that also somewhere gets overshadowed because the rest of the vertical starts selling. Suddenly, juices become very salient, and you saw a 40% growth outside of institutions happening. So sales force, energy, bandwidth, time also goes away in the other part of the portfolio. And it's generally a habit of selling more HPC than HC in that. So that's the reason in my view could be and there's a pipeline issue and which is there. Just to add to that, Mohit, there's also some pipeline of juices, which we used to build. It's not only pipeline of health care, but in the fourth quarter, the juice loading used to happen, which didn't happen last year. And therefore and this year also, it was low. And therefore, the CAGR on that front also has come down. Understood. And Hair Care also, if I look at your 3Q FY 'twenty one two year CAGR, it's 7.3% and 4Q FY 'twenty one, it is 0.3%. So any reason for this two year CAGR dropping by 700 basis points? No, I don't think there's a reason. It's just the growth rates that is getting registered and market share gain. The category was flat. On top of that category, we have actually grown our market shares. And I must tell you that in the health care question that the STRs were very high in the trade because COVID was going down in the quarter the beginning of the quarter four. STRs were built up in Hani and Chamantras. So that also, in a way, takes time for the STRs to get released before the new filling actually happens, which also must have impacted the secondary. But I think it takes time for the business to build whatever is lost in the first quarter, which is what the case happened in quarter one, two and three on the discretionary portfolio. So I think building is up there. You instantly can't gain in one quarter, and we are seeing traction in aero is now building momentum. But for this COVID situation now come in otherwise, there was a momentum which is actually coming in. That's all from me. Thank you. It's not very mathematical the way we are seeing it. It is also the way the sales guy does the business out there. I understand, Mohit. And one quarter by itself doesn't really worry me. Anything can happen in one quarter. But I just wanted to understand whether this is sort of signaling something and we need to relook at our assumptions that whatever COVID related gains, they are a new normal or not. That is what I wanted to understand. So if you can basically just let me know what your confidence level is in terms of clocking a double digit growth in OTC Ethicals as well as Health Supplements for the full year of FY 'twenty two? No, no. So I don't think we'll be able to register at double digit in the Health Supplement business. I said we are targeting a double digit growth rate in the beginning when the COVID situation wasn't there, and we wanted to do double digit on bag. But health supplement on a higher base will not be double digit. Health supplement will be low single digit for us because the base is higher. But OTC will come in, and ethical business will definitely have a double digit growth. That I have no doubt in mind. But before the COVID situation developed, Hello? Moish, sir? Yeah. I think mister Moish, I have dropped. Hello? Hello? Yeah. Firstly, I request you to stay connected. Also participants, you are requested to stay connected while we reconnect. Ladies and gentlemen, thank you for patiently waiting. We have the line for the speaker connected. Sir, over to you. Yes. Thank you. Sorry, Parsi, I got disconnected. I don't know whether Gangit Madam carried forward the conversation or not. So I hope I've been able to yes, okay. Yes. Basically, what you're saying is that for Health Supplements, it will be low single digit growth. OTC articles should be double digit. And for the company as a whole, pre COVID, you were gunning for double digit, but now it is not so sure. Is my understanding correct? Yes, that's right. But with the wave of COVID, health supplement has got a tailwind once again. And while we were assuming that it will be low double digit, but things could turn anyway Because again, Chavanprash and Honey and all those products have started firing again. And there could be a little headwind on the discretionary portfolio, but a tailwind on the health care portfolio back again. But that comes on a higher base. But we are pretty confident. I think if it's the situation is going to improve in the month of June, then I think this problem of the first quarter should be compensated in the other quarters. If not, then we'll have to recalibrate our numbers going forward. But I am very hopeful that with the fiscal stimulus, etcetera, if at all the government announces, rural will continue to trend up and urban recovery will also be V shaped. And on back of all this, we should be able to do that very high volume growth and on top of that price increase, which would lead us to a double digit value growth. Right. Thanks a lot, Mohit, for the detailed answers and apologies for the probing, but I thought it was an important point. No, we always await your probing. So I think this is always expected and we love it when you ask us these questions. Thank you. Thank you, Mohit. Thank you, Bharshi. Thank you. If time permits, you may join the queue for follow-up. Thank you. The next question is from the line of Hitesh Kapadia from Anivate BMS. Please go ahead. Didesh, line is unmuted. You may please go ahead. Last six, seven years, if I look at, Mohit, we've seen the best data and inventory days. Are the current levels sustainable because of the CRS, which you talked about? Right. So I think it's not a question of inventory days. It's a question of return of investment of a stockist. And we need to give him an inventory, which he can quickly offload and have secondary. So CRS is a very seamless way of keeping the stock norm of SQ by SQ and then giving the ordering basis whatever secondary is happening in the market. We don't want to lower the stock case with the inventory, which we can't sell and which is very subjective and people based. We want to have a very system automated and digital way of inventory management. Secondly, that's why CRS has been implemented. And if the situation warrants, then we relax the inventory norms, which are there. CRS doesn't mean that we have a fixed inventory and that will perpetuate forever. And if we want, we can relax inventory norms in the system, like which is the case which is happening in the month of April. We know the shutdowns are going to be sequential, and therefore, we relax inventory norms, and we've extended credit lines. And we are increasing the inventory for our health care because we are anticipating lockdowns. On the food segment, given what has happened in the youth segment specifically over the last four, five years, is now food being targeted as a much broader player? Because what we've done over the last couple of quarters, homemade, couple of products are launched, basic, all things looking that direction. So is there a non food portfolio which we are looking at over the next two, three years at a much broader food and beverage play rather than just producers versus CRR strength and all? Right. If you've heard in my commentary, this time, we separated the business into food and beverage. And therefore, there's a special focus on food for scaling up the homemade brand. This year, we are committed to be making homemade we will breach the INR100 crore milestone, and that's a target that we've taken ourselves for homemade in the current year. We are nearly INR70 crore this year, and we want to make it up to around INR100 crore. In next four years' time, we want to breach it by to INR500 crore, and that's what we planned. A number of SKUs and product categories under the homemade brand. I think we would underleverage brand here, which is what we want to scale up and scale up to a level that it also becomes a power brand for us. So there will be a focus definitely on homemade, plus there is a tailwind which is supporting us for ready to cook and ready to eat now as people are not moving out. So there could be no better time than now to scale up this business. Also, we want to get into the sauces and the condiments segment. And also, you've seen that we've gone into spices segment, which is a very big segment. So we've ushered into the spices. So we are only taking two, three sub segments of foods and trying to make that play, which is not very competitive and where we have a right to win and it's in line with our healthcare initiatives of improving health to consumer. Therefore, spices is an area where we think we will have a right to win here. And lastly, just one data keeping question. On the user segment, you could give some number on the current reach of your real and real active in GT. And is there a lack of distribution available in rural for higher growth? Because all the actions we've taken over the last four to six quarters in terms of lower LUPs, the pet portal, the INR10 package seem to be heading in that direction. So if could share some numbers that we have put. There is a huge headroom, which we guys have got if I compare the distribution of juices with the distribution of our entire HPC vertical. And that is what we want to bridge by way of launching Drinks segment, which is INR 10 and INR 20 price point. And that headroom that's why we got into a category of INR 10 so that we can activate our entire infrastructure and semi urban infrastructure because at the moment, we are present in North and few metros, and distribution is restricted to that because of a price point of INR 110. So we've made now accessible price points, and we have entire infrastructure to ride on. So that's why product bundles and infrastructure have to go on side by side. As far as active is concerned, we are only available in something like around 70,000 outlets and real is available in 4.5 lakh outlets, whereas double is available in 60 lakh outlets. So there's a huge headroom available here for us to bridge the gap. Understood. That is helpful. Thank you. All the best. Thank you. Thank you. The next question is from the line of Abhi Mehta from Macquarie. Please go ahead. Hi, sir. So just two questions. One, which segment has seen the highest impact of the CRS implementations? Which segments have that been? So of all, it's juices, wherein we used to do preseason loading. Then there is glucose tea in our health supplements. Then there is a hair oil portfolio, wherein preseason loading happens for us because consumption of amla, which is almost considered like a cooling oil happens in acute summers, that one, plus Pudeen Hara, which is also seen as so these are the key segments where the maximum preseason loading used to happen. Okay, sir. And so the bit is essentially on the competitive situation. Is it now moving back to how it was in the phase, wherein consumer pull was relatively higher and marketing support was relatively lesser? Or is it different from there, if you could kind of give us some visibility over there? Yes. Competitive scenario actually varies from segment to segment in the business. As far as health care is concerned, I think the demand is going to outstrip the supply. So therefore, competitive situation will be very favorable to the company, where I think we have to augment capacities. Like I was telling you, we are putting up a plant in indoor and to augment capacity. So I think that will be the case, less competitive intensity, higher headroom to take price increases for us. And we grow the category as a leader, increasing penetrations and less need of advertising and less competitive. As far as Foods business is concerned, I think with on back of innovations, we'll be able to handle competition very well, and that's what we've done because we are hardly 1%, 2% market share in drinks. And if I look at the larger space of G and ST, we are only 10% market share, a huge headroom to grow there. So that's also relatively less competitive except for the juice segment. In HPC space, which is competitive, in oral care, we've got a very differentiated proposition. So I think we manage competition reasonably well, and that's why you've seen a growth of 45% in oral care. Here, all is pretty competitive because we've got a price player sitting there at a very low price who plays the game like a commodity, and therefore, competitive intensity is very high there, and it provides a limitation for us to take a price increase. So that is competitive. Shampoo space is, again, a virgin territory where you compete with multinationals, there's no pricing problem. And that's a good space for us. Home care is a fantastic space with low competitive intensity. Skin care is low competitive intensity. So barring hair oils, I think rest of the spaces are relatively low competitive intensity and powered to increase pricing and manage the business reasonably well. No, no, I meant it from a near term lens, essentially because that gives us the freedom. I mean, the competitive intensity would have come off that gives us the freedom to play with ad spends at least tactically to kind of look at margins. That is where I was coming from, not from a long term lens. That is what was the key question about. No, the health in healthcare, so the demand has gone up. So less need to advertise much healthcare as compared to what the need was when the market demand you have to create. So that's otherwise, the rest, we'll have to do what we were doing earlier. And sir, just following up on what was asked by the earlier participant, would it be fair to look at health supplements as a single digit, mid single digit, high single digit growth category as we go into the future? Or would you your thoughts on that? That's all from my side. No, from health supplement, because we'll be overlapping a high base, we will see a low single digit growth rate, and that's what we've targeted ourselves. On back of new product entry, we've gone into teas and we've gone into single herbs. So they will see a growth. But Chawanpraj and Hani on a very high base, we will see a little muted growth going forward. But FY 'twenty three onwards is what I was talking about, not necessarily just in FY 'twenty two. But would you kind of argue that this is more a double digit growth category I kind of when you look at from a medium term lens? Or would you still look at it from a single kind of high single digit growth categories where it always comes? No, no. I would see it as a double digit growth with the penetration levels going up in hair supplement and the kind of innovation that we are doing on supplements. We've introduced value added honeys, and we are introducing different variants of Chavan Plush. So I would bet on a double digit growth in medium term, I think, for this current year, which is a high base lap over. And the penetration levels are also low to an extent of 4%. So there's a huge headroom to grow. And in Honey also penetration levels around 20%, so huge headroom to grow. So these categories should grow at a double digit, if we are able to do a good work in terms of growing the categories. Okay, perfect sir. Thank you very much, sir. Thank you so much. Thank you. The next question is from the line of Prasad Deshma from Bank of America. Please go ahead. Thanks. A couple of questions. One is on It's on your audio, not clear, but could you use the handset, please? Sir. Hello? Prashad, we can hear you. Yes, yes. Mohit, couple of questions. One, in the Healthcare portfolio now, how much of the how much is the contribution from these products which were launched for post COVID recovery, mostly this Pulsi, Giloy and Ashwagandha? The total new product contribution overall to the business is in the range of around 5% for us. NPD, I think somebody asked the question, so I'm answering that question, is around 5%. In Healthcare, these NPDs that we've rolled out should be around 2% to 3% only. Okay. And you also mentioned stock outs in some of the products. Could you give an idea as to what kind of impact this would have had in Q4? So Q4, there was no stock out, Prasad. It was completely okay. It's only in the April onwards, both the wave of COVID has hit that we are facing stock out situations, but not in quarter four. There is no impact of any stock outs in quarter four. Got it. Thanks a lot. Thank you, sir. Yes. Thank you. The next question is from the line of Shereesh Badeshi from Centrum. Please go ahead. Yes. Hi, good evening, Mohit and Gagan and team. Thanks for the opportunity. Mohit, just quick observation. When I look at the annual number, our Healthcare portfolio used to be about 34% in FY 'twenty, which has moved to 39%. While when I look at the margin profile, the EBITDA has remained flat. I would tend to believe that Healthcare portfolio would have a higher gross margin and net margin. So somewhere, would you be able to help me understand what is it that we should be looking in FY 'twenty two as a contribution and margin profile? Right. So Shreej, while the healthcare portfolio has gone up, you will see there's upside in the advertising investment also in the business. So whatever upside on gross margin we got, we have invested back into advertising and also the saving initiatives that we've done, that has also been invested in advertising. In quarter four, you don't see that because of the huge inflation, which has actually hit us. But otherwise, we invested it behind advertising. So going forward, we will want to maintain our operating margins. And that's what our guidance was earlier also. Any upside we get on account of either price increase or savings or low advertising on that will be invested and to maintain the margins, yes. And also what's happened in quarter four is inflation of data in health care with Honey, Amla and Herbs going through the roof because of multiple players who entered and the demand has gone up for Amla and Herbs, etcetera. So would you be able to tell that FY 'twenty to Healthcare contribution will be in the range of about 39%, 40% or will come down? Our Healthcare contribution should be in the range of around 34%, 35%. It depends upon how our NPDs trend up and then the contributions will actually go up. But we expect the contributions to be in the range of 34%, 35% for Healthcare. The reason why I'm asking because I think about two quarters before, you have done that the company is working very closely with Ayush Ministry and you are looking forward some products getting listed and distribution will go up with the Ayush outlets. So any update on that, where it is at this point of time? We are still in the process of creating those products, but it depends upon the COVID situation, Suresh, like you said. If the COVID situation remains the way it is and the health pandemic continues, health care would definitely trend up as a business. That's what you saw in quarter two and quarter three. But that said, a lot of our innovations are happening in health care and foods also. So there's no reason that we see the resiliency there also going down. Okay. So the reason why I'm asking is that if I bake in a number, say, 5%, 6% volume growth, and you have already said that you've taken a weighted 3%, assume that 4%, will FY 'twenty to look like 14%, 15% growth? It's difficult to comment, as I told you in the beginning, for us to give guidance at the moment. So I don't know how this COVID situation will actually pan out to be. So it all depends upon that. But I told you we targeted ourselves to grow at a high single digit volume. And on top of that, price increase around 3% odd and therefore a double digit value growth. Do you think you are confident that you will maintain NPD at 5% for FY 'twenty two also? It depends upon how NPD fares actually, but last year was extremely contextual and favoring NPD, but we would want to peg it at around 4% to 5% for next year as well. Because now innovation has become an integral part of doing business for us. So therefore, all our brands are innovating and that's what, yes. Just last quick question on bookkeeping. What is the tax rate we can keep in FY 2020 to FY 2023? Sorry, I didn't quite get that. Tax rate for FY 'twenty two we should be considering? Ankush, do want to take that question? Yes. Thanks, Vikram. Yes, I think, of all, all our major factories except Swagepur have reached concern in terms of income tax exemptions time line. And hence, we would move out of net. So this year, closed at around 17.5%. And next year, we expect at a consolidated level, our tax rate would be around 21% to maximum 42% at a consolidated level. All right. Thank you. And thank you, Mohit, and all the best. That's it from me. Thank you very much. Thank you. Thank you. The next question is from the line of Aditya Konwar from JST. Please go ahead. Hi, sir. I had a similar question on the Foods business, and I believe you have answered it. Thank you. You. The next question is from the line of Krishna Santamorti from Motilal Oswal. Please go ahead. Yes. Hi, Mohit. While you illustrated in great detail on the domestic part of the business, could you also highlight what's the outlook on the international business, particularly with the base of 3% growth in FY 2021, Is the momentum that you've seen in the second half continuing? Right, Krishna. So our international business is in a good space. It's actually turned around for us. Like you saw in the current quarter, our major markets in the overall international business registered a growth of 21 constant currency in the last quarter, and we will expect to sustain the momentum going forward in subsequent quarters in the next fiscal year. And I would have no doubt in mind that we will grow at double digits in international business. MENA business has grown by 24 on back of complete recovery in MENA, COVID cases going down and vaccination happening. Our U. S. Business has rebound and growing at double digits with dollar denominated and doing well with a better profitability. Our Nepal business is doing well, registering a growth of 21%. And Bangladesh business trended up 46%, but there's a complete lockdown now in Bangladesh. So we are hit by the Bangladesh business in this month of April and May. Our Myanmar business, albeit very small, is impacted because of the situation in Myanmar. Egypt business has grown by around 21%. That's doing exceedingly well for us. So I think we are in a good space as far as international business is concerned with margin upsides also and cost cutting initiatives taken there. So I don't think there's any doubt that we shouldn't grow at double digits in international business. Also, what's the proportion of any India based manufacturing in the international business? If so, then is there any disruption to export given the ongoing pandemic? No. The percentage of India export is very minimal, extremely minimal to an extent of less than 1%, 2%. Entirely, it is manufactured abroad, the international product mix. And therefore, that doesn't have any sort of pushback. And finally, on direct reach, you were targeting to add about 200,000 outlets by the end of FY 'twenty one. Was it on target? And would you take a pause before expanding more? Yes. So in terms of directories, we targeted ourselves to achieve 1,300,000, and that's what we've achieved. And next year, going forward, we want to achieve a number of 1,400,000, and that's what we shall do. As far as rural coverage is concerned, we are committed to be building our infrastructure despite COVID situation. And we had targeted ourselves last year to reach up to 60,000 villages we did. Now we've set ourselves a milestone of 80,000 villages in next two years' time. That's what we should be doing. And we've created a separate vertical of e commerce and modern trade. So that's also doing well for us. Yeah. Thanks, sir. All the best. Thank you. Thank you. Thank you. The next question is from the line of Harit Kapoor from Investec. Please go ahead. Yeah. Hi, good evening. I just had two questions. Firstly, on the hygiene space. So the last time the wave hit, you were very proactive in terms of taking the opportunity to make some tactical innovations. Just wanted to understand this time around how you're looking at the opportunity? Yes. So hygiene business has actually plateaued, Harith, over the period of time. And as people stop going out and out of home consumption reduces, people have kind of stopped using sanitizing products. Now with the new wave of COVID, again, it will see a little inch up, but then there is a huge surplus capacity in the market, and people are cutting prices left, right, center. I don't think it's a very profitable category for us to sustain business here. So we did the business of around INR100 crores last year of sanitizers, but I think that's completely moderated and deeper down. And we are not it's almost running out of favor as far as consumer is concerned. So we are not very hopeful on the sanitizing business to be doing well except the soap business is got a tailwind and that's where we will focus, which is an ingrained set category. Okay. And just you spoke about innovation in your earlier questions that were asked. But I just wanted to understand, you had an amazing FY 'twenty one in terms of innovation, a ton of new launches. Do you see 'twenty two being a much more moderated year in terms of new products, given that you have this large base to continue investment in? And your investments overall also will be under pressure because of the inflation. So how do you see that? Yes. So it's been the year of so many NPDs getting launched. We don't want to create a complete lot of SKUs which people can't handle. So we want to build on the NPDs that we have created in last year. Just to give you, we want to scale up our Dantraksha franchise in oral care. We want to scale up our hair oil franchise, premium hair oils that we have built. We want to scale up the products in health care like juices and drops, and we consider them as NPDs going forward in next year also, and we want to scale up that business. So that's the way we are looking at it. That said, new opportunities for e commerce or in culinary, etcetera, we've already embarked on a program called RISE, and the thoughts come in there. They will be seeding in the 'twenty one for it to ramp up in subsequent years. It's a continuous process of building innovations and building them up subsequent years. Some of them will fall off, but that's okay. That's the part. Like drinks portfolio, we build. We will only grow the drinks portfolio. INR 10 price point we created, we will only build on that. But that said, new variants in real will still come up. We are looking at a category of fizz drinks in the current year. That's going to hit the market. So all that will continue. It's a continuous process of building the pipeline of new products, launching them, nurturing them, then again, going back. So the process will not stop. It's now a part of the DNA of the company to innovate. Got it. Very clear and wish you all the best for the next year. Thanks. Thank you. Thank you. The next question is from the line of Sanjay Singh from Pinebridge Investments. Please go ahead. Yes. Hi. Am I audible? Yes, please. Yes. Hi, Mohit and team. This is Sanjay from Pinebridge Investments. My question is ESG related. So as shareholders of Dabur, we are very confident that the company is doing a good job on the ESG front. But we feel that the disclosures have some scope for improvement. Just to give an example, we do not disclose the absolute level of GHG emissions, the greenhouse gas emissions. As you may be aware, the European Union has come up with SFDR regulations that puts down guidelines for ESG disclosures. Now I would honestly request the team to look into these regulations and see how we can comply with the same. As shareholders, we would be happy to engage with the management for the same. Right. So Sanjay, we as far as disclosures are concerned, we do the disclosures in the annual report. If you happen to read the annual report, you will have disclosures very clearly on carbon emission, on water. So all the disclosures are mentioned in the annual report. If you want, Gag and Matan can link up with you separately, and we can send you all the disclosures that we do. We are a public listed company, and we are doing all the disclosures in the annual report. An integrated report can be sent across to you as a shareholder. No, no. I'm aware, Mohit. It's just that if you go through and I can engage with you separately, there's this FFBR regulation, which has come, which has puts out some 18 points in very detail as what needs to be disclosed. And we have mapped point by point as to which company is disclosing what and not, whatnot. You may not be aware of all these regulations as of now. My honest request is just go through them. And if something and I've seen what is not disclosed yet. And if those needs to be disclosed, it is good for all of us. That's the thing. No, Birit, Sanjay. If you can that's a fantastic suggestion. If you are actually missing out on something, it will be great to have to engage with you. Dagyan Madam is also here. So I think we can engage with you offline. And if there are any gaps in disclosure, we'll definitely flag them. Yes, sure, Sanjay. We'll get in touch with you. And in fact, our ED operations is also on the line, Mr. Shahrukh Khan. And we have been trying to upgrade our disclosures definitely, and we're engaging with different institutions who are also helping us in this direction. So we love to engage with you on this. Yes. Thank you very much. Really appreciate this, Kazan. question, Mohit, is on the overall food front. When I look at step back from the quarter and look at last five years, our top line growth has been in mid single digits around 4%, 5%, which is slightly disappointing, but I understand we have gone through a lot as a country or as a even as a company. But the food part of it has been flat for almost five, six years now at around about INR 1,000 crores. I understand there's been a lot of initiatives around drinks, around extending the homemade brand into other categories. And this is a very underpenetrated category, the whole juice plant, at least, if not the drinks. What has been really struggling here? Why have we not been able to grow despite a very underpenetrated category? Yes. So I think we know the reasons, but I'll go over the reasons once again. of all, hit by COVID, I think the near term was COVID issue. People were reluctant to have cold beverages and therefore the entire inclination and pension was to have hot beverages, etcetera. That's a near term reason. The medium term reason was that the category was only declining. And the reason is we were only restricted in our presence to INR100 price point, which could not penetrate beyond the urban areas. And we never breached that high price point to get into INR 10 or INR 20 or more affordable price point. That's what we have been doing now. And now we are also getting into the food space. So I think we were limited by our effort, if you ask me, and our vision and the guardrails we set ourselves. We said that we'll not get into the drink segment and restrict ourselves to a INR 1,500 crore market, in which we are 70% or 60% market share. So if you fish in a pond, which is very limited fish, you can't complain about it. Now we are fishing in a pond, which is much larger, which is INR 7,000 crores. And if still we don't do well, then we'll have a reason to introspect. But I think we've got our strategy right now, and we've gone into market where the opportunity is big. And we are working towards that, and we are sharing all the plans with you guys. And if you have any other thought that you may want to share with us. And your drinks rollout is now national? What is national, sorry? Drinks is national now. Yes, drinks is national, yes. Okay, okay. Thank you very much and all the best for the future. Yes, thank you very much. Thank you. The next question is from the line of Abhishek Kundur from Antique Shop Broking. Please go ahead. Abhishek Kundur here. Hi, Mohit. Thanks for the opportunity. My question was on glucose and as well as hair oils loading that we were talking about, which didn't happen this year because of the new ERP system in place. But was it good to know that last year also the loading was affected, particularly in glucose and I mean, in all these products, which have a where the loading starts from Q4, were these products not affected last year as well? Last year, they were affected. That's why the base was lower because the lockdown happened on March 20, and therefore, was impacted last year as well. So that is when we it was impacted. And this year, we did not backfill it again. So had we backfilled it, that would have increased inventories by around seven days. So around INR140 odd crores, INR70 crores to INR100 crores would have been filled up. And then the growth would have looked optically larger. Just to add to that, Abhishek, that's why the CAGR is low because you're looking at two year CAGR, that is why because last year, the sales pace got eroded. And this year, we have grown on that, but not as much as to report a higher growth on FY 'nineteen number. Right. No, I really don't look at the two year CAGR because we are not in a business where there is pent up demand. So if someone has not consumed the midterm, we will I mean, we will not consume double of what we have not consumed. So obviously, there is a recovery across categories which happen, and there is no point in looking at that. I completely agree with that. I was just focusing on this. For the clarification. Thank you. Thank you. Next question is from the line of Aditya Sohma from Goldman Sachs. Please go ahead. Aditya, please unmute your line. Go ahead. Yes, yes, thanks. My questions have all been answered. Thank you. Thank you, Richard. Thank you so much. Thank you, ladies and gentlemen. Sorry, we'll take the next question from the line of Shait Pardeshi from Centrum. Please go ahead. Yes. Mohit, sorry, I come back again. Thanks for the opportunity. Quickly, we have a large rural portfolio. And what I wanted to pick up your thoughts, as you mentioned that last fifteen days was been challenging and things are really looking back to worse in the rural. And we also have a very large presence in the North, not per se in the South. But in your experience, where do you see the market is behaving, especially in rural part of the business because even rural is also one of the important piece to our business? Right. So, Ashish, overall, I think big picture, I don't think rural will be impacted so much because I very firmly and hopefully believe that government will announce a lot of fiscal stimulus the way they did last year. So MSP has not been reversed. That will not be reversed. So income will be good. Manriga outlay might go up, although the fiscal headroom is limited, but it may just go up. Then farm subsidies can be given to rural consumer because there's a big board bank for the government. And because of the COVID situation, government is on a back foot. So I think they should be giving in fiscal incentives. So rural, on back of all this, should continue on a recovery path. While COVID is happening in pockets and it is not spread out because the population, the way it is structured in rural, it's structured in social distancing. So it will not be as much as a pandemic the way it is in urban India. So may not be the case. Monsoon is predicted to be good. So income levels, overall, I think rural will trend up. And it's it had a V shaped recovery, now a little impact because of COVID, but it should be faring well. And urban recovery also was V shaped after COVID. But now again, has impacted urban more than rural. So I think and if urban recovery is V shaped, then both urban and rural will trend up. So I am pretty optimistic about the rural business in the country. And you're right, 45% to 47% of our business comes from rural. So and we've got rural salient brands, which will continue to keep growing. Wonderful. That was a good commentary. I think I really appreciate your thoughts. And thank you, Mohit, once again, and all the best to you and the team. Thank you, Siddhis. Thank you so much. Thank you. Ladies and gentlemen, that would be the last question for today. I now hand the conference over to Mr. Gagana Arumallia for closing comments. Thank you, and over to you, ma'am. Thank you, Aman. Dear friends, thank you for your participation in this conference call. The webcast recording and transcript of this call will be available on our website soon. Thank you and stay safe and healthy in these difficult times. Wish you all the best. Thank you very much. Thank you. Ladies and gentlemen, on behalf of Baburai and Dynamics, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.