Category
🗞
NewsTranscript
00:00Welcome back, you are watching the Small and Mid-Cap show.
00:11Well, BKG Foods also came out with its Q1 FY25 numbers yesterday and their net profit
00:17have jumped by 40% and margins have improved by 300 basis points.
00:21But to give us a color on how the quarter has gone by and what FY25 holds for the company,
00:26we are joined by Mr. Manoj Verma, Chief Operating Officer and Mr. Rishabh Jain, who is the Chief
00:32Financial Officer at BKG Foods International.
00:34Well, welcome to the show, gentlemen.
00:37Manoj, I'll start with you first.
00:41Margins at 16%.
00:42Do you expect to sustain the margins at the same levels going forward with the kind of
00:48growth that you're witnessing?
00:49I think that's what we have planned for, right, and going forward, so quarter on quarter,
00:56there will be maybe little up and down because of commodity prices, because of our investment,
01:03sometimes higher market and all.
01:05But yes, by and large, we would be able to sustain these numbers.
01:08You know, Rishabh, I want to understand that, you know, you guys had given a guidance for
01:15volume growth anywhere between 13 to 15%, and you've already achieved a volume growth
01:20for 16%.
01:21So, do you see some kind of revision in terms of your guidance for volume growth, I mean,
01:27with the kind of growth that you're already witnessing?
01:29So, we're seeing good demand coming up in first quarter, yeah, but it's the first quarter,
01:34right, that's fully coming on.
01:35So, our target is to be between 10 to 15% volume growth.
01:41This year, we're also seeing price increase.
01:42So, we're seeing pure commodity inflation coming in, few pulses or tomatoes or chana
01:47besan.
01:48So, we'll also see some price increase.
01:51So, that's what we are doing, but our overall target is to be around 15% volume.
01:57And Mr. Manoj, you know, your exports have remained within that range of 3%, you know,
02:03even in FY24 and even in Q1 FY25.
02:06Do you expect some kind of change in that mix?
02:09Because I believe that export will be more margin accretive.
02:14So, the two questions, one is you're asking on the share of business.
02:19So, this would broadly stay in the same line, because growth in domestic will also be as
02:24much.
02:25However, you know, over a period of time, you will see that, you know, if you move up
02:29say by 50 basis point or say 100 basis point kind of in terms of share of business.
02:34The second question you said on the margin part.
02:37So, the margins on the exports business and domestic business is more or less the same.
02:44And, you know, Rishabh, your volume versus value growth is, you know, your volume growth
02:50is at 16% and value growth at 15%.
02:53So, I want to understand that what is the kind of price hikes that you've taken in this
02:57quarter?
02:58And going forward, do you still plan to take price hikes in FY25 overall?
03:04So, in this quarter, like we are taking close to, we actually, we have withdrawn some promo
03:08offer and everything.
03:09So, overall, we're taking one and a half, 2% price hike in.
03:12And this year also, in next nine months, we see at least one and a half, 2% price increase.
03:18Got it.
03:19And, you know, Mr. Manoj, one last question to you.
03:21What is the kind of trends that you're observing in the snacking industry right now?
03:25You know, the entire FMCG space overall is seeing that the rural demand is picking up.
03:30But what is the kind of trends that the snacking industry is witnessing?
03:36So, snacking category, I think we've seen a very consistent growth with little bit of
03:42up and down kind of stuff, but very minimal.
03:45Quarter 1 has been good and it is a double digit growth for our category.
03:50And we presume and our belief is that going forward, this should sustain because this
03:55is a very mass category and the kind of the budget what government is presenting, where
04:00in, you know, so much of, you know, employment, you know, money getting introduced in rural.
04:06We believe that this would really, you know, increase offtake or the increased buying power
04:11of the consumers, which should help this category, you know, grow at the pace it is growing.
04:17Got it.
04:18Well, gentlemen, thank you so much for taking our time and giving us those insights at NDTV
04:22Profit.
04:23But with that, it's all that we have on the show for now.
04:25But before you go, remember, India Bulls Housing Finance Limited is now Samman Capital Limited.
04:31Jio Samman se and keep watching NDTV Profit for all your news and business stock related updates.