Questions across 37 calls

Mihir Shah

Nomura

TATA CONSUMER PRODUCTS LIMITED

TATA CONSUMER PRODUCTS LIMITED CC-Jun25.pdf · 2025-07-23

Firstly, again, on the NourishCo side of t he business. In the 16% price cut that we are seeing, should one expect this price cut to continue for the remaining part of the 3 quarters? And will it have an impact? Or you're expecting volume growth of more than 20 -plus percent to make up for that price cut that we are seeing? Sunil D’Souza: So, Mihir, very simply put, I cannot predict how long competition will hold out. But as long as competition holds out at this price, I'm holding out. And I will, therefore, drive volume to make up for this gap. And as I said, we do expect saying for the next 3 quarters, we will grow upwards of 30%.

Okay. In the NourishCo business or the entire growth? Sunil D’Souza: In the NourishCo business and the growth -- overall growth businesses also.

TATA CONSUMER PRODUCTS LIMITED CC-Dec24.pdf · 2025-01-30

Congrats on a very strong performance. Sunil, if you can just thr ow some light on the divergent trend that you're seeing in your urban versus the peer set that we are seeing. Would it be a function of the categories that you are present in where there is a higher composition of unorganized players, and because of the price hikes have been limited versus them, that is leading to formalization? Would it be one key reason for you se eing better urban growth versus peers? Sunil D’Souza: So number one, my price hikes are not more or less than competition. It's almost l ike-for-like, right? Either I move first, competition moves later, competition moves, I move. We don't -- I don't think we're going to win the game by leaving money on the table or discounting, right? So I'm not a believer on that piece, A. B, I would say , a lot of work has gone into driving better distribution , A. You see the larger feet on street. I've got 30% more DSR s with a very focused set. There is a guy who's selling beverages plus Organic India. There's a guy who's selling salt plus Sampann, and there is a person who is selling Soulfull and Capital Food. So we have brought in focus on all those categories. I think that is working, number one. Number two, we've got auto replenishment systems, which means every single SKU is available. Number t hree, we've got the new DMS and SFA implemented at the front end, which means it is far more analytical, far more data - oriented. Number three, for -- and this is I'm going beyond urban, we have expanded our number of super stockists and therefore, we're c lose to 10,000 sub -distributors now, which operate primarily the below 50,000 pop strata. And yes, so that's about it. Like I said, if I don't count modern trade and e-commerce, I'm low single digits. If I count modern trade and e -commerce, I'm double digits, right? So I'm not sure I can comment on other players, but I can talk about my numbers.

Got it. On tea, kind of volume growth, I don't remember when are we seeing this kind of volume growth. Clearly, I don't -- do you think that th ese are the sustainable volume growth for the near term at least? And what is the level of pricing that you have taken along with the industry or tea specifically? Sunil D’Souza: So let me comment about pricing. We've probably taken 40% of the cost into pr icing so far. We've still got 60% to go, which is a gap as we enter this quarter, A. B, in terms of overall growth rates, I -- we've always guided saying mid- to longer term, we will see mid-single-digit beverage growth, and we stick by it. Now, it's also -- it could be a fact that we have put more focused A&P power. We have probably executed better. We've got a better pack -price strategy. So I wouldn't exactly want -- I have a detail on why we are growing 7% and others are not. All I can say that I do th ink we pull in every single lever to make sure -- if there is margin pressure, if not anything, we will make sure we are on a strong wicket when the margin pressure eases.

TATA CONSUMER PRODUCTS LIMITED CC-Sep24.pdf · 2024-10-18

So firstly, I wanted to check if you can throw some light on how the unorganized players are behaving with rising tea prices ? And the kind of quantum of pr ice increase you have taken, Essentially, I'm trying to understand is the down trading that was happening in tea will stop. And will volumes recover in the near term? Or we expect with the t ea price increases, volume to continue to see an impact?

Sir, one small quick question on quick-commerce. We are seeing that space growing aggressively. I wanted to check are you seeing large packs being sold of your products in quick-commerce? Or do you think they are just top up products or top -up orders that are getting sold. And if you can share any saliency of these large packs or are the saliency of large packs increasing? Anything on that? And one quick question on amortization, if you can share the number on amortization as well. That's all from me.

TATA CONSUMER PRODUCTS LIMITED CC-Dec23.pdf · 2024-02-08

Congrats on a good set of numbers. So my q uestion again is on the margin front. But just taking a step back, while if one -- the gross margin, when one looks at the gross margins, you are seeing better -than-expected improvement in gro ss margins. Can you share which business has led to this improve ment? Is it the softness in the tea cost? Or is it the improving profitability in the growth businesses that is driving this or maybe some other reason for that? Sunil D’Souza: So Mihir, let m e answer it in 3 or 4 different pieces, right? Overall, commodit y costs have been benign, whether it is in -- and when I say benign, tea costs are pricing cyclical. You have to remember that. So when I compare to the same quarter last year, it's largely benign. Salt costs are largely benign. More importantly, other in put costs and our gross margin, when we quote, is inclusive of variable freight, etcetera. So given our whole petroleum prices being flat, therefore, logistics costs being largely, I would say , flattish. That is where a contribution - - where our gross marg ins have improved. Both for tea and salt, gross margins are broadly in the bracket where we want it to be. On the growth businesses, obviously, as we gain scale, whether it is ready -to-drink, Sampann, Soulfull, as long as we continue to gain scale, levera ge, operating cost leverage, margins are continuing to improve. So it's a mix of various parameters that's driving up the overall gros s margin portfolio.

Okay. Sir, can you highlig ht what is the differential gap between the EBIT food margin and EBIT margins for beverages now currently as the major... Sunil D’Souza: Mihir, we look at the India business in totality as a food and beverage portfolio because we always make choices depending on where we can create the greatest value. So we segregate up to the gross margin level or margin after promotion, but -- promotion and advertising. But below that, it is all common cost of the India structure. Therefore, we don't break up the EBIT margins for India Food and India Beverage.

Britannia Industries Limited

Britannia Industries Limited CC-Mar25.pdf · 2025-05-12

So Britannia has constantly increasing its direct reach. Now as you highlighted that demand is expected to come back. What is the level of volume growth that you expect to be a reasonable level? And this is also keeping in mind that you will start cycling a higher volume growth base from 1Q onwards; So that's my question number one.

Got it, sir. So secondly, how should one think about pricing from here on? Key raw materials have started to correct quite a bit. So would it be fair to assume that there is no further price increase that one should expect from here? And secondly, do you foresee any competition from smaller players to start taking price cuts sooner than expected?

Britannia Industries Limited CC-Dec24.pdf · 2025-02-07

So firstly, on the volume front. So how should one think about the impact of volume with the 6.5% pricing that is likely to happen, can you help understand this volume trend that we are seeing, including the grammage reduction can sustain and the impact of the same?

Got it, sir. Sir, and one clarification on gross margins. Can one assume the peak of the input cost inflation in the margins is built into these quarter numbers? Or is there -- or were you consuming low-cost inventory and going forward, there may be some h igh-cost inventory that you'll have to consume and margins will continue to get impacted despite the price increases that you are taking?

Britannia Industries Limited CC-Sep24.pdf · 2024-11-12

Just wanted to check on the innovation and new launches. Over the past few quarters, the innovation new launches were doing significantly well growing at 2x on the growth rate. Can you talk a bit more on the saliency of that piece? How much is it contributing to our overall revenue now? And how -- has that momentum sustained or given the urban weakness that momentum has tapered off?

Sir, I missed the earlier comment in margins [inaudible 0:44:46].

Britannia Industries Limited CC-Jun24.pdf · 2024-08-05

Hi, sir. Congratulations on good volume performance. Thank you for taking my question. Sir, on the pickup on volumes, I wanted to check if there is any element of higher -- higher than usual in-home consumption that you are seeing due to extreme heat wave? And also with the price rollbacks that you have initiated, do you think these volumes can sustain an inch up further as we were thinking about, or these numbers can probably go down from here?

Perfect, sir. Got it. Sir, secondly, I wanted to check on the other expenses bit. It seems that the costs have gone up. Is this largely due to higher ad spends or are there any other elements to it? And historically, other expenses in 1Q are usually lower as an absolute basis versus the remaining part of the year, which indicates that if other expenses inch up for the remaining part of the year, then the margins can come under pressure. So how should one think about this line in the margins on operating level?

Grasim Industries Limited

Grasim Industries Limited CC-Dec24.pdf · 2025-02-11

So firstly, on Paints business, congrats, there seems to be a material step-up on sales in third quarter versus what we saw in the second quarter. Can you talk a bit on how much of this would be from sell-outs? And what would be the dealer reach now? Also, if you can share your geographical split, i.e., contribution from North, South, West, East? And lastly, traction from exclusive dealers or large dealers and from small dealers. That will be my first question.

Grasim Industries Limited CC-Sep24.pdf · 2024-11-15

Rakshit, first question actually is on the Paints division. If you can give any insights on which regions are doing well for you and contributing to higher sales given that you already have a Pan-India presence across depots. Are all regions receiving a full range of products? So that's the first question. A subpart to that is on the tinting machines, say, if a dealer has already 2 tinting machines, are they keeping yours as a third one? Or are you seeing any replacement happening there? Or are these completely new or small dealers who just have 1 tinting machine or no tinting machines? That's the first question.

Marico Limited

Marico Limited CC-Sep24.pdf · 2024-10-29

Pawan, one small clarification, first, on the operating margin contraction of 40 to 50 basis points that you called out. That was for the full year, right? Not for the second half.

No, that's clear. Firstly on Saffola, the import duty hike, that was on palm, soy and sunflower and not on rice bran. Does this help in improving your competitive pricing in any way? And when was the 15% price hike implemented and how should one think about volumes on the back of this 15% price hike?

Marico Limited CC-Mar24.pdf · 2024-05-06

A quick question on VAHO. If you can again try and help us understand whether the 7% decline was largely because of high basic volumes or is there a price correction that was taken? I am s orry if I am asking again, I missed out on that part. Is it a price cut in VAHO that we have implemented or its largely volumes have contracted meaningfully?

Thank you for that clarification because I was just wondering if it ’s pricing led then it’ll direct you for the remaining part of the FY25.

Marico Limited CC-Dec23.pdf · 2024-01-29

Since most of the long -term questions are already answered, I have a few near -term questions. One clarification actually on the primary stock correction in GT. It seems that there are more steps you are implementing. Can this continue to impact sales growth for the next few quarters as well? Or given the stock correction has really happened, it can lead to an improvement in volumes optically at least in the near term, in the fourth and the first quarter.

I wanted to really talk on how should one think about the Parachute and VAHO volumes in the near term given that they have a high base? Do you see enough strength in demand improving from BOP that can help VAHO to remain in the positive zone given the high base?

Hindustan Unilever Limited

Hindustan Unilever Limited CC-Sep24.pdf · 2024-10-23

Can you talk a bit on the quick-commerce channel? How is your market share in quick commerce versus general trade and modern trade that you have? Do you see this channel giving opportunity to new niche brands which are targeting the affluent consumer and can pressure premiumization trend for us and maybe lead to lower than market growth? And a part B to that is, given the strong growth in quick commerce that you're seeing in the market, does this trigger any recalibration in the GT - channel inventory? Have you already lowered it vis -a-vis the past orders or past trends? So that's question one.

Sir, the other question that I had asked on the -- do you see this channel giving opportunity to niche new brands which can ideally target the affluent consumer and pressure premiumization trend. Given the Nielsen numbers, and all the aggregators are not capturing the slowness, but there is some growth out there in the market. Do you see this can be a possibility.

Hindustan Unilever Limited CC-Dec23.pdf · 2024-01-19

My first question is on Gross Margins. I believe the focus is to get back to pre- COVID levels. When one would think a better mix and our net productivity improvement will drive better gross margins over the medium term. Is there, shall you share what levers can be used in the near term? Can pricing growth be exercise here anytime soon? Or is it still some time for pricing growth to come back?

Got it. That's clear, Ritesh. Secondly, we have materially stepped-up ad spend and investments in brands. However, when one looks at the volume growth trajectory, it has not shifted meaningfully and remains at low single digits versus when you look at the market growth, it seems to be growing at a high clip at high single digits. How should one think about ad spend in the near term? Is there a need for further increase in ad spends to drive volumes because they're still below the pre-COVID levels or the current level of ad spend is kind of optimum at this point of time and volumes will come back as the macros improve?

Hindustan Unilever Limited CC-May26.pdf ·

Thank you for taking my question. Congrats on a great set of numbers. Firstly, just one clarification. If this 8% to 10% cost inflation that you are witnessing, is there any low-cost inventory in that? And if one is to strip that out, what is the kind of cost inflation that you are seeing here?

Got it. No, I was asking basically in this 8% to 10%, do you also have certain low - cost inventory that you had bought earlier, and that is why the cost inflation seems to be lower versus the kind of prices that we see in our RM basket? So that was the question.

Avenue Supermarts Limited

Avenue Supermarts Limited CC-Jun24.pdf · 2024-07-30

Hi, Neville, thank you for taking my question. Firstly, on the bill cuts, they have been going up. Just wanted to check on the trend of the shopping basket size. Do you see it reducing and what is the impact of this on you? Does it increase your SKU mix? So that's one. So, part two of it is do you see consumer s experimenting more with brands and does that also require you to increase your SKUs and variety more?

Understood. Okay. Secondly, Neville, on revenue per square feet, it has come back to FY '20 levels. Can you throw some light on the average revenue per store in metros versus Tier 2, 3? And assuming you're driving more traffic because of the bill cuts being higher, what else is driving the revenue per square feet higher?