Mrs. Bectors Food Specialities Ltd (NSE: BECTORFOOD) Q3 2025 Earnings Call dated Feb. 06, 2025
Corporate Participants:
Anoop Bector — Director
Manu Talwar — Chief Executive Officer
Unidentified Speaker
Suvir Bector — Whole Time Director
Analysts:
Unidentified Participant
Rishi Mody — Analyst
Harit Kapoor — Analyst
Amit Purohit — Analyst
Soham Samanta — Analyst
Rajit Aggarwal — Analyst
CA Arun Maroti — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 Nine Months FY ’25 Earnings Conference Call of Mrs Spectus Food Specialties Limited. [Operator Instructions] I now hand the conference over to Mr Anu, Managing Director of Mrs Food Specialties Limited. Thank you and over to you, sir.
Anoop Bector — Director
Thank you. Good evening, everyone. On behalf of Mrs Food Specialties Limited, I extend a very warm welcome to all participants on Q3 FY ’25 Financial results discussion call. Today on this call, I have with me Mr, our Chief Executive Officer; Mr Arnav Jain, Chief Financial Officer; Mr Suve, Whole-Time Director; and Mr Praveen Kumar Goyal, 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 FY ’25, 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, 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-savings as well as strategic pricing my years to mitigate the same. The full impact of these years is likely to flow-through by the end-of-quarter four. Consequently, we anticipate fully absorbing and offsetting the impact by the first-quarter of the financial year — 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 lab should boost disposable income and in-turn help stimulate urban demand. This augurs well 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 skew of offerings in the gifting segment and for the first time, participated in the Christmas and newer 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 meta, no palm oil and no added colors range to cater to the consumers changing trends.
On our product introductions, on new product introductions, we augmented our healthy snacking portfolio with the launch of white size snacks under non-stop mini crackers with the promise of baked not fried under — under English, we continue to lead the Burger segment with the latest introduction of Burger promising a cafe 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 in high-volume outlets driven by technology remains cornerstone 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 cost for our upcoming plant in Dhar, Madhya Pradesh. We unutilized funds have been temporarily placed in bank deposits. We remain on-track with our capital expenditure plans.
The commissioning of our new biscuit facility at Dhar Madhya Pradesh is scheduled for April 2025. While of — while our state-of-art facility in Kapoli 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 ’25-’26. These additions enhance our ability to serve diverse — 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 INR3 per equity share. Starting with biscuits. Our biscuit segment reported a revenue growth of 15%, which stood at INR308 crores in Q3 FY ’25 as compared to INR268 crores in Q3 FY ’24. This — this segment has grown by 40% over Q3 FY ’23.
Our bakery segment revenue for Q3 FY ’25 stood at INR175 crores against INR146 crores in Q3 FY ’24, 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 FY ’23. The consolidated revenues for the current year stood at INR492 crores versus INR429 crores in Q3 FY ’24, thus registering a growth of 15% on a year-on-year basis. EBITDA stood at INR61.4 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 INR34.6 crores for the quarter and PAT margins for Q3 FY ’25 stood at 7%.
Moving to nine months FY ’25 financial performance, the consolidated revenues for nine months FY ’25 stood at INR1,427.8 crores versus INR1,217.6 crores in Nine-Month FY ’24, thus registering a growth of 17.3%. EBITDA for nine months FY ’25 stood at INR195.9 crores versus INR183.8 crores in nine months FY ’24, thus registering a growth of 6.6% with EBITDA margin of 13.7%. PAT for nine months FY ’25 stood at INR109 crores as compared to INR106.7 crores with a PAT margin of 7.6%. With this, I request you to open the floor for question-and-answers. Thank you so much.
Questions and Answers:
Operator
Thank you. [Operator Instructions] The first question is from the line of Disha Ghiria from Ashika Institutional Equities. Please go-ahead.
Unidentified Participant
Hello. Yes, please go-ahead. Yeah, hi. So I have a few accounting-related questions like why I understand that the increase in raw-material cost might have impacted our gross profit, but there is around 20% increase in our other expenses. So is there a particular expense that within it that has increased for us? And also can you mention what is the ad expenses as a percentage of revenue for us?
Manu Talwar
Yeah. So good evening, sir. Good evening, sir. So this other expenses which had gone up is largely on account of our exports where the logistic costs are higher. So primarily is on account of freight and forward yield and that is on account of logistic cost. That’s why this cost is higher, right? So this cost increase is a little higher, but what got mitigated by lesser expenses on power and fuel and some bit of lesser expense on we can to start. So that’s the reason for gas go up there.
Anoop Bector
So another thing I think you missed out is the Red Sea impact because of the Red Sea, there has been an impact on.
Manu Talwar
Yeah, that’s what see impact, which is largely on account of freight and forwarding of the export side and that impact has been there for last almost nine, 10 months. So that’s the one of the — that’s one of the large reasons why our other expenses are higher than the same quarter previous year.
Unidentified Participant
Okay. And the advertisement expenses.
Manu Talwar
Advertising expenses for our B2C businesses has been close to 3%. So we have two B2C businesses, which is clinica, domestic biscuits and English. So they have been approximately close to 3% in this financial year.
Unidentified Participant
So, yeah. Coming down to my second question, see palm oil meta, all these raw materials have been — have seen the pain of inflation in the last quarter and going-forward also, there is — we are not yet sure whether it is going to decline or not. So what do you think will — what steps are you taking for our gross margin or our profitability to expand further
Manu Talwar
Vishab, we have — there has been a steep inflation primarily in the farm oil side and then also added bus, some in the metal side. So we have taken actions on the two sides, right, and differently for bakery and biscuit side of the 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. Just to 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 and we have done that action in this last quarter.
Now in case of the biscuit side, that 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 ’25. So this is a brief about that. And we — which 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 the last — this financial year. Quarter-four of — we continue on the quarter-four over the Jan period. And by March, we would reach a situation where we would have covered our impact of the raw-material price increases.
Unidentified Participant
So on the bakery side, there is no additional inflation impact that we are bearing. So 100% of it is passed on to the customers as of now, right?
Manu Talwar
Correct? Yes. So some area — as I told you, some part of — got covered through the cost-efficiency side. And yes, the balance has been covered through the price increase and on overall bakery segment-wise, on our English side, we have covered it through the price increase through passing onto the.
Anoop Bector
Yeah. Another thing is on the bakery side being a shorter shelf-ly 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.
Unidentified Speaker
Sure. Thank you. That’s it. Thank you.
Operator
The next question is from the line of Rishi Modi from Marcellus Investment Managers. Please go-ahead.
Rishi Mody
Yeah, hi, folks. Can you hear me?
Manu Talwar
Yes. Audible.
Rishi Mody
Yeah. So Manuji, I think you mentioned in your opening — Anup you 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 like once the freight normalizes, where do we see this other opex line as a percentage of revenue coming down.
Manu Talwar
So we had taken-up a cost-efficiency project in this financial year and this project was overweight. It was in the manufacturing side, it as on the supply-chain side. It was on other areas too, right? And these — most of these projects are getting concluded by March. There are some of the projects which continue even in the next financial year and we are also further lifting down in our annual operating plan over — 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 month side, our target should be kind of have an impact of close to 0.5% on an annualized basis on our — on our margins through this cost-efficiency programs.
Rishi Mody
Okay. So 0.5% per year you’re talking about like over the next several years. Is that correct?
Manu Talwar
Yeah. Over the next 12 months, yeah, over the next financial year.
Rishi Mody
Okay. And on a normalized freight, like if I look at your last year’s freight cost would be around 8% of your revenue, but if this cost structure normalizes, if I’m looking at the freight costs, they have doubled Y-o-Y. I’m assuming like 200 bps savings would come from the freight cost normalizing and plus this 50 bps. Is that correct? Or are you saying on the current cost base?
Manu Talwar
No, Rishi, what I am saying is that these are entirely efficiency based program, the Red Sea or the higher freight cost of — 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 for any — there is no indication that these things are going to change immediately international, you know, 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 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 or there is no indication on that now.
Rishi Mody
Okay. Got it, got it. Second, I saw that your capex plans have been delayed by a quarter like things which were supposed to come operational in Q4 have been shifted to-Q1. So is that like just a 1/4 delay or if you could just give some color on that?
Manu Talwar
You see our capex side, we had scheduled our Indor plant coming up in Q4. So it is still — it can come anytime between 15 March to 15 papers, right? And that’s what we have mentioned that will come in April, 15. So such a large project you can understand if 30 to 40 days kind of spillover is something very, very normal kind of stuff there. In case of from our Calcutta project, again, Calcutta project was also scheduled around April of — in March, April of the financial year, which is likely to come up by 1st of May. So that’s kind of another minor kind of delay there. In case of Kapoli battery, definitely, we were looking at around quarter one public around quarter one end of ’25, ’26, which we now see as a quarter two or ’25-’26. It’s a fairly large product with machines and other stuff. So that there is a bit of a kind of a spillover there. So — and our Raspura 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 a kind of a brief about our project. There were some improvement projects on the order side, they also kind of happened in time and they also have been kind of implemented. So these are especially in and are very, very large projects which are being done in totally greenfield plants. So yes, so there is a kind of a minor shift but no major shift there.
Rishi Mody
Got it, got it. Finally on the price hikes, you said biscuits is where the channel will — happens where it takes time. So Q4, do we expect the margins to come back to the 47% 48% range or Q1, like just trying to get an understanding on where the channel is accepting it?
Manu Talwar
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.
Rishi Mody
Okay, got it. Got it. Got it. Thank you. That’s it from my end.
Operator
Thank you. The next question is from the line of Harit Kapoor from Investec. Please go-ahead.
Harit Kapoor
Yeah, good evening. So I just had two or three questions. One was on the pricing. So on biscuits and bakeries, if you just give a constant 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.
Manu Talwar
So in terms of –, in terms of price increase which we are kind of taking would anything range between approximately as of now, what looks like is to 4% to 5% kind of price increase as of now because it’s a — it’s a mix of price increase, it’s a mix of de-ground is in some part of the cost element. So if you’re asking your price increase should kind of range around that.
Harit Kapoor
And sir, in, how much is that the quantum — similar quantum in said is — pardon, sorry.
Manu Talwar
In breads as well, it’s a similar quantum. Not bread, yes, bread, if I remember right is around 3% to 4% kind of increase. We have taken and the price increase is 3% to 4% I’m saying is more primarily on the North India side and it is much lesser on the West than the South side.
Harit Kapoor
Got it, correct. The second question is on. 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 sub-segments within biscuits.
Manu Talwar
So exports are kind of export has been growing extremely well over the last two years of time, right, and export has obviously grown as fairly aggressive for over a two-year period, right? And as we all know, the domestic biscuit side because of the hyper competition starting somewhere in November of ’23 and then carrying on, which led to dipping of the price by the dipping of the pricing and offering extra to the consumers by the leaders of industry and then we also had to follow with our kind of action there. So domestic biscuit has been under a kind of growth pressure. Starting from quarter three of last financial year and continue till now.
But only the good size 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 and 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, 2.5 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 narrow down, but continue to grow well in mid-teens. But on a domestic side, which has been kind of on a — on a — on a flattish 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 — that’s a good part of the news.
Harit Kapoor
Fantastic. Fantastic. And one last point so the bulk of this new capacity comes into the first — 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? And what are the kind of numbers you’re working with in biscuits and beds in terms of expansion on distribution?
Manu Talwar
So we are in the process of making an operating plan versus gave you a flavor of that, that we have a — we have a — we were running, we had a constraint on our capacities in Bombay, Maharashtra on the bakery side, English side, especially. And there we have started building our distribution. We started kind of expanding our distribution and there will be — even before the capacity comes, there will be a lot of work happening over the next 3/4, including this quarter, right, from Jan to even say Jan to September is a 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 contentiously are working and improving on our distribution, right-side and we have — we are moving well on a on non-side, non-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 outlet, if I look at over enough over the two-year period, they have also kind of jumped up by close to 20 odd percent. So — and if I look at over last one year, quarter three, 25 or quarter-four, 35, we have a jump of more than 11% in outlets on the English over baking 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 outlet — a build outlet count of around 280,000 and our quarter three exit, we stood around INR330,000. So fair amount of jump there also in terms of the build outlet 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 preferred outlet about three years back, there is a good amount of work that has happened there. And these are high-throughput outlet, our stores, well merchandised and they are giving us a very, very good results, right?
And so lot of focus as a part of our strategy went in this financial year now on a — on a preferred outlet and we have kind of grown over 2022% of growth in the cremit of outlet. And there you know, their contribution to sales has also increased. Their premiumization of these outlays are 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 a — is an 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 2.5 years, three years back-in terms of NOT on stocks and distributor and we continue to maintain that discipline, right? So our NOD continues. The 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 just 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.
Harit Kapoor
So that’s excellent. Thank you very much for this. I’ll come back more questions. Wish you all the best. Thanks.
Manu Talwar
Thanks.
Operator
Thank you. The next question is from the line of Amit Purohit from Elara. Please go-ahead.
Amit Purohit
Yeah, sir. Thank you for the opportunity. Sir, 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 the right assumption for domestic business for the quarter.
Manu Talwar
Yeah. So we kind of started growing in single-digit in volumes 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, the good news is that after being very low of kind of flattish once this intense hyper competition started in-quarter three of ’23, ’24, remaining on that kind of trend for four quarters now going to the this quarter three of ’24, ’25, we have started seeing the growth coming back. And especially in a general trend, general trade, we’ve seen a good growth and again within the general trade, the CPI outfit strategy is working well for us.
Amit Purohit
Sure. And sir, on the new launches, which you highlighted on non-stop mini, mini especially the packing is that pack similar to something like a potato chips or and what is the price point at which it has been launched?
Manu Talwar
How so it’s in the tracker category and we are as MDA kind of in a speech has brief always do that we are strengthening entire kind of a renovating entire cracker in the green 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 snapping category and offering those products to the consumer, right, so we can kind of build that category over the next few years?
Amit Purohit
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.
Manu Talwar
So no, no, so packaging is robust enough. We don’t expect any major — we have done our logistic test, but we just launched about two months back. So we haven’t heard any kind of complaint by its breakages and all that as of now and there were robust kind of logistic tests were done to ensure that we have a good packaging to ensure the product reaches and consumer hands in a bright condition.
Amit Purohit
But it is just filled with air as well just like in chips we have.
Manu Talwar
Yeah, yeah, there is nitrogen there.
Amit Purohit
Okay. Okay. Okay. Just I mean, just curious to understand from a distribution, we already have kind of a — what was the thought process in launching this product and is what I wanted to understand.
Manu Talwar
We launching with cracker products you talking about?
Amit Purohit
Yeah. So non-stop mini cracker and pouches. What — the whole idea to understand is basically we are 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 helps in terms of offtakes or is that a new customer — consumer feedback that you would have got post this launch, that would help us to understand.
Manu Talwar
So Amit, first thing is that you know that over the last two years when we doubled our direct outlets and also in doubling our territories out there, we have kept a very stiff definition for ourselves. We have kept a minimum of INR200 to count that as a build outline and that’s a definition set by the biggest player in the industry, right? So we kept a very stead definition. And as for the EC and we are presenting over 700,000 outlets right now. So it is the rightful 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 you know that entire cracker strategy, which is very adjacent to the — to the entire and all that and it is what consumer 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 increase rather as we keep adding more products and executing 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 cracker and other categories to build a more traffic on the highway of INR700,000 and more we are building it.
Amit Purohit
Sure. And sir, on the margin side, the second point, it was to understand your comments that probably by March-end, you would be able to cover-up with price increases cost inflation. So if I look at this quarter also, our gross margins have not declined significantly, it’s just down by 30 bps. And if I look at — when we look from price increases, so maybe by Q1, one way to look at this is that are you saying that normalized margins somewhere in the range of 14% to 15% is a fair estimate to look at as we look for FY ’26 post? Or do 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?
Manu Talwar
So first thing, Amit, you are probably comparing our margins with respect to lastly a 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 number. In terms of overall margins, yes, we expect in the — by quarter one, we should be back-in the range of 14%, which has been our guidance and which has been our — what we haven’t delivered. So yes, our endeavor definitely is that to get back by quarter one to that range of 14% to 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.
Amit Purohit
Sure. Thank you so much. Thanks. Thanks. Pleasure.
Operator
Thanks. Thank you. The next question is from the line of Samantha from Centrum Broking. Please go-ahead.
Soham Samanta
Yeah. Hello. Can you hear me?
Manu Talwar
Yes, you’re audible. Please go-ahead.
Soham Samanta
Yeah. So sir, a couple of questions from my side. As you’ve guided rightly again margin guidance. So earlier we had a guidance of 14 to 15, but if I look the numbers in nine months, it’s 13 and 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?
Manu Talwar
So, we definitely as we have — as we briefly about the actions 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 — should get back to our margin range again by quarter one of the next financial year.
Soham Samanta
Okay. Okay. Thank you. And second question is related to — in the opening remarks, Mr Anup 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.
Manu Talwar
Anu, you would like to answer that?
Anoop Bector
No, it is — it was not other categories, but these are extensions of our businesses, right? Like rightfully, there was a question on the — on this new different type of packaging what we are doing. So our strategy for Mrs Dector 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 breads, we will have different experiences in breads, if it is biscuits, there have to be different. We would be — Mrs Dector would definitely aim through its NPD to be a big differentiator in our categories here.
Manu Talwar
Got it. I will add further to this and just to brief, it’s exactly in-line what Anup said. But you would know that we made a very significant progress on the frozen food side over the last 1.5 years’ time and we were primarily supplying in B2B segment and it’s kind of done extremely well in B2B segment and we continue to add new products to that. So in the — by quarter one of the coming financial year, we will start introducing some of those product lines in our — in our B2C segment, which is English-own and start kind of building that. So finally, we will have a suite and savory range coming in there, so that will add. And yes, just to further add, we have line of products both on the health side, we have introduced, as Anukun has mentioned in his speech. So whether there is no pump, clean labor, no matter. So a lot of products have been launched on the bakery side, on the health side. And similarly, we have some products lined-up on the health side, on the biscuit side, which you will see it coming in the next few months side, 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.
Soham Samanta
Got it. And sir, if you can point some — how highlight on the institutional bakery business for this quarter, is it a high single-digit growth or mid-single-digit growth again.
Manu Talwar
Sorry.
Soham Samanta
The institutional bakery, so what kind of growth for this quarter we have seen? Is it a mid-single-digit, high-single-digit?
Manu Talwar
So it’s a very good question and good you ask me. And 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. So — 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 — 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 — in terms of driving the B2B growth. And we want to start introducing this product, as I said, one after the other and also on B2C in own side, we should also further give momentum there.
Soham Samanta
Okay. And sir, 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 levels. 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?
Manu Talwar
I’ll just say one-line and hand it over to Suvi to do the pillars. 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, is the right person to kind of elaborate on that.
Suvir Bector
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 a 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 shelf and the mom-and-pop shows 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 Kremika 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 brand. I think it will always year-to-year differ a bit because we are also investing a lot in our relation with global retailers such as Walmart, HEB, Walgreens, CVS in the US. So we are always going to have a — 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.
Soham Samanta
Got it. Got it, sir. Thank you very much for. Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Rajit Agarwal from Investment Managers Private Limited. Please go-ahead.
Rajit Aggarwal
Hi, good evening, sir. My question is related — just a follow-up from the previous participants’ question related to the B2B business. While the revenue growth is noted, I just wanted 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?
Anoop Bector
So I would say normally in the B2B businesses, we have a hedging policy where we give predictability to our buyers. So until unless there is a completely a distressing situation, things remain in what our annual business plan is. So 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. Mean that you answered because we hedge it, we block our commodities for a year and thus we are kind of ring sensed 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 happened, how the cost with our partners. So that’s a process running well. So we are kind of fair on the variable on the margin.
Rajit Aggarwal
So then we are saying is B2C business would have suffered higher-margin loss as compared to the overall margin reduction that we have seen. And will that understanding me correct?
Manu Talwar
That understanding will be perfectly correct. And that in the bakery side, also to add to that,, that on the bakery side, because as 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 and we covered ourselves in-quarter three in terms of margins on the basis side.
Rajit Aggarwal
Right, sir. 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?
Manu Talwar
So our revenue growth on a YTD basis as a company is around 17%. This quarter, we are at 15%, right? And I think that everybody is very well aware of the way the consumer industry has been under extreme pressure and most of the results, which I have seen over the past few weeks have been a mid to low-single digit kind of growth and we — our guidance has always been we will maintain on an annualized basis, a growth of around. Second thing is that second-quarter for usna as both on the domestic side and on the international side is a peak quarter, right?
It’s a peak quarter because the international side is all about readiness of the — getting ready for the Christmas and 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 — 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 we want to maintain. But you will have to look at — look at us on an annualized basis. So we have maintained a clear-cut guidance of mid-teens on an annualized basis and that I think we are on the right path.
Rajit Aggarwal
Great to hear, sir. Thank you. Thanks a lot.
Operator
Thank you. The next question is from the line of C. Arun Kumar from Shublab 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.
Unidentified Participant
Am I audible?
Manu Talwar
Yes, you’re audible. Please go-ahead.
Unidentified Participant
My questions pertain to both Makery and this is CSP section. I want to know what is your revenue in CSG and other distributions compared to the total revenue as percentage. Similarly in the QSR, what is the revenue in the QSR share is there? And I want to know what is the growth you are seeing in both segment in future and what are the margins in these segments? That’s my first question.
Manu Talwar
So 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 contained store 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 currentine so department and we continue to kind of lead-in that. So we have a healthy contribution and we continue to do well. The content new to introduce new products every year in this segment to you know, to service our and other staff in that segment. Coming to QSR, in a bakery segment that QSR accounts for, I would say, close to one-third of the total revenue, right? That’s what probably contribution is. And we continue to be the leader in this segment on the QSR segment and we continue to maintain our dominance and this dominance got further enhanced by us introducing frozen rains over the last year, two years back and that we building that frozen rain to continue to maintain our strength and continue our maintain and improve our share in this B2B and the QSR segment.
Unidentified Participant
That’s great. My next question is regarding this. How much is our market-share vis-a-vis — the total market in both bakery and the other beds and bum sectors.
Manu Talwar
So sector. So basic segment. So market-share in case of bakery is not so well public, but we do conduct our retail audits. And in our retail audits, which we concerned in the NCR region, which is Delhi region, NCR region, we have improved our market-share year-after year and we’re getting closer to 20-odd percent market-share and a strong number two-player in this area. We have expanded very well in the up-country of North India also over the last two years and which has started contributing well. And we will be focusing in the coming financial year a lot on Upper North, which is Punjab side because that’s another big — a big part of the bakery consumption market where we started journey this year. A lot of focus will go on that.
And another flavor, 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 have — we took the lead-in English-owned 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 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 is a channel which is kind of growing and will grow a multiple times in the coming years to come.
On a biscuit side, the — our market-share in North India is about 4.5% and in upper part of the North, especially Punjab, we are touching around 14.5%. We continue to maintain our dominance in upper part of the north and continue to hold the share while we are improving our share in a lower part of the north. So this is briefly about our — about our shares both in the base III and the segment. In case of a in case of a what I Call-IT is, in case of QSR, you very well know, we are by far the market-leader. We have a lion’s share there in terms of the QSR segments there.
Unidentified Participant
Thank you. Thank you very much.
Operator
Thank you. In the interest of time, we will be taking our last question. The next question is from the line of CA Arun Kumar from Sublab Research. Please go-ahead.
CA Arun Maroti
Yeah. Thanks for the opportunity, sir. I have couple of questions, sir. My first question is with regard to the tie-ups we have with the Walmart and Rulu. So whether we have started to supply them or what is the status of that, sir?
Suvir Bector
Yeah, so we are already supplying to Walmart and 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 here 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 new categories and build our volumes with them.
CA Arun Maroti
Okay, sir. And on the side, if you can share some updates on what is the status?
Manu Talwar
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 rents to our consumer 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 let — this gave us a direct interaction with the consumer and that’s what has — 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, how do we want to take it forward is something which we are evaluating now in what shape and manner we will evaluate.
And I think another three, four months, we will be clear whether we want to take it forward or we want to live it at this stage, how do we expand, what will be the waveform for that. So I think in the next investor call, surely, I think we should be able to update better on that. But I think with the objective we had opened these four stores, 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 in the retail chains, right? And so that’s how this will interact, how should we take our stores forward? It’s something we are working on that now and in the next investor call, we should be in a better position to operate it.
CA Arun Maroti
Okay. Thank you.
Operator
Do you have any further questions?
CA Arun Maroti
Yeah, thanks. I have done with my question.
Operator
Thank you. That was the last question. I would now like to hand the conference over to Mr Anu for closing comments. Please go-ahead, sir.
Anoop Bector
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.
Operator
[Operator Closing Remarks]