Acutaas Chemicals Limited — Q3 FY26

Acutaas Chemicals Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=PnI_FxTkies Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Aquitas Chemicals Limited Q3 FI26 earnings conference call hosted 0:10 10 seconds by JM Financial Institutional Securities Limited. 0:14 14 seconds As a reminder, all participant lines will be in the less knowly mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:24 24 seconds Should you need assistance during the conference call, please signal an operator by pressing start then zero on your touchstone phone. Please note that 0:33 33 seconds this conference is being recorded. I now hand the conference over to Mr. Krishnan Palwani from GM Financial. Thank you and over to you sir. 0:42 42 seconds Yeah, good evening everyone and thank you for joining us on Acutas Chemicals Q3 FI26 earnings conference call. Today 0:51 51 seconds we have with us Akitas chemicals management represented by Mr. Naresh Patil chairman and managing director Mr. 0:58 58 seconds Abhishek Patel uh vice president strategy and Mr. Bhavin Sha chief financial officer I would now like to 1:06 1 minute, 6 seconds invite Mr. Bhavin Sha to initiate the proceedings over to you sir. Thank you. Thank you Gishan. Good evening everyone. 1:15 1 minute, 15 seconds We are pleased to welcome you all to our earnings conference call to discuss Q3 FI26 financial. 1:24 1 minute, 24 seconds Please note that a copy of our disclosure is available on the investor section of our website as well as on the 1:31 1 minute, 31 seconds stock exchanges. Please do note that anything said on this call which reflects our outlook towards the future 1:39 1 minute, 39 seconds or which could be construed as forward-looking statement must be viewed in conjunction with the risk that the company faces. 1:46 1 minute, 46 seconds The conference call is being recorded and the transcript along with the audio of the same will be made available on the website of the company and 1:55 1 minute, 55 seconds exchanges. Please also note that the audio of the conference call is the copyright material of EQAS chemicals and 2:02 2 minutes, 2 seconds cannot be copied, rebroadcasted or attributed in press or media without specific and re written consent of the 2:10 2 minutes, 10 seconds company. Now I would like to hand over the floor to our chairman and managing director Mr. Naresh Patil for his opening statement. 2:18 2 minutes, 18 seconds Over to you sir. 2:21 2 minutes, 21 seconds Thank you Bing. Good evening everyone. I hope you are you are all doing well. 2:26 2 minutes, 26 seconds Wishing you and your family a very happy and prosperous new year. I will provide an overview of the strategic initiatives 2:34 2 minutes, 34 seconds we are undertaking before handing over to a visit for detailed business updates. 2:40 2 minutes, 40 seconds As you know is evolving into a diversified chemical company with multiple business vertical. 2:47 2 minutes, 47 seconds Allow me to walk you through each of them. Starting with our core business of pharmaceutical intermediate, our focus 2:54 2 minutes, 54 seconds remain on a sustaining the robust growth engine that we have built over the years. Additionally, we are actively 3:01 3 minutes, 1 second pursuing CMO and CDM opportunities to accelerate growth in this segment. We have developed a strong pipeline with four products already validated and we 3:10 3 minutes, 10 seconds expect some of these opportunities to begin contributing to our top line from FY27 onwards. Moving on, the battery 3:18 3 minutes, 18 seconds chemicals business. I'm delighted to share that we inaugurated a new block at our Jaga facility dedicated exclusively 3:25 3 minutes, 25 seconds to battery chemicals on 19th January 2026. While Q4 will primarily be a quarter of trial production, testing, 3:33 3 minutes, 33 seconds valuation and the com commencement of the commercial operations. We expect this business to ramp up significantly 3:39 3 minutes, 39 seconds from Q1 FY27. Our third important vertical is semiconductor chemicals where we are in in the early stage of 3:48 3 minutes, 48 seconds seeding business both in BFC and Indicare. Our South Korean joint venture to new customer 3:55 3 minutes, 55 seconds in South Korea, Japan and Taiwa. We are witnessing encouraging tractions from clients in both businesses. At BFC 4:02 4 minutes, 2 seconds engagement with our Japanese customer has been very promising in other than Harious products. At Indicam, we have 4:10 4 minutes, 10 seconds already initiated discussions with various clients regarding our products offerings. Overall, I believe that FY 4:17 4 minutes, 17 seconds 2028, these three business verticles will operate as independent self-sustaining growth engines, each contributing meaningfully to our overall 4:26 4 minutes, 26 seconds topline. Coming to our quarterly performance, I'm pleased to report that we continue our strong growth trajectory. Revenue from operation came 4:35 4 minutes, 35 seconds in just shy of rupees 400 cr this quarter which was a campaign by our highest ever margin leading to our 4:43 4 minutes, 43 seconds profit after tax for the quarter crossing the milestone of rupees 100 cr I will let bowing discuss financials in 4:51 4 minutes, 51 seconds detail later to conclude based on the strength of our current order book we are revising our revenue guidance upward 5:00 5 minutes from 25% to around 30% growth for FI2 With that I would like to hand over to 5:07 5 minutes, 7 seconds our vice president of strategies of Patel who will walk you through the detailed business update. Over to you officer. 5:15 5 minutes, 15 seconds Thank you Narbai. Good evening everyone. 5:19 5 minutes, 19 seconds Let me take the this opportunity to share further insight into our business performance for the quarter. Starting with advanced pharmaceutical 5:26 5 minutes, 26 seconds intermediate segment. This segment delivered a robust performance with revenue of 351.1 5:33 5 minutes, 33 seconds cr in Q3 FI26 reflecting a strong year on year growth of 46.8%. 5:41 5 minutes, 41 seconds The growth was primarily driven by our CDMO business complemented by steady contribution from our core advanced pharmaceutical 5:50 5 minutes, 50 seconds intermediate segment. Moving on to the spe speciality chemical segment. Revenue for this segment stood at 42.1 cr during 5:59 5 minutes, 59 seconds this quarter, resisting a strong year-on-year growth of 17.2%. 6:04 6 minutes, 4 seconds Our commodity chemical subsegment recorded consistent growth driven by high volume stable pricing which was supported by recovery in BFC business. 6:15 6 minutes, 15 seconds Now turning to the cap capital expenditure capex for 9 month period stood at 143 cr primary directed towards 6:23 6 minutes, 23 seconds Jagaria site for battery chemical project and pilot plant project at satin site. Let me provide some additional 6:31 6 minutes, 31 seconds updates on our key projects regarding electrolyte additive capex at Jagardia. 6:36 6 minutes, 36 seconds As Narish by mentioned first phase of electrolyte block is inaugurated on 19th January 2026. 6:43 6 minutes, 43 seconds The second phase of capex is currently ongoing and is expected to be completed within next six months. Pilot plant 6:50 6 minutes, 50 seconds capex is slightly delayed due to delay in equipment arrival. It is now expected to be completed by Q1 FI27. 6:58 6 minutes, 58 seconds Due to spillover of second phase of battery chemical capex as well as the pilot plant capex total capex for the 7:04 7 minutes, 4 seconds FI26 expected to be around 220 cr versus 250 cr which we guided in our previous 7:12 7 minutes, 12 seconds call. Apart from this, another major cash outlay during the year will be our investment in South Korea joint venture 7:20 7 minutes, 20 seconds Indicam. Till now we have invested close to 130 cr in this joint venture. The total investment we announced for this 7:29 7 minutes, 29 seconds one venture was around 200 cr. We have sufficient cash on hand as well as strong cash flow generation to fund this 7:37 7 minutes, 37 seconds cash outlay. Now coming back to the business updates starting with pharmaceutical intermediate segment for 7:44 7 minutes, 44 seconds X CDMO business we have a couple of new products that have already started ramping up and we believe they will 7:51 7 minutes, 51 seconds continue they will continue drive the growth for some of our top products we have been able to deliver higher single 7:58 7 minutes, 58 seconds growth higher singledigit growth now you might look at the numbers and observe that this business is not growing as 8:06 8 minutes, 6 seconds strongly as it used True. This is because we have carefully taken strategic decision to review our product portfolio and let go low margin product. 8:15 8 minutes, 15 seconds That's why you see uh that's why you see now quality growth is coming. Coming to CDMO business as nourished by mentioned 8:24 8 minutes, 24 seconds four products which have been validated in the current financial year should start contributing to the top line from 8:30 8 minutes, 30 seconds FI27. Additionally, we are expected to complete sampling and validation basis for some more products in coming 8:38 8 minutes, 38 seconds quarter. This shows our CDMO pipeline continue to grow strongly which will take us swiftly to our CDMO guidance of rupees 1,000 cr by FI28. 8:50 8 minutes, 50 seconds On battery chemical side, we already have order in hand with a good revenue visibility for FI27 for VC and FC. As 8:59 8 minutes, 59 seconds mentioned in earlier calls, we have added two more products to this business and these products are expected to start contributing to topline from mid FI27. 9:08 9 minutes, 8 seconds On semicut conductor business side, Nourish by covered most of the important update in this remarks. The only thing I 9:16 9 minutes, 16 seconds would like to add is the capex for the indicam JB is progressing as per the plan. Finally on the on a note of 9:24 9 minutes, 24 seconds corporate excellence we are proud to share that our founder and CMD Mr. 9:29 9 minutes, 29 seconds Narish Patel has been recognized amongst the IDFC first private and Harun India's top 200 self-made entrepreneurs for the millennia 2025. 9:40 9 minutes, 40 seconds This is pre prestigious ranking celebrates the visionary behind the most valuable companies founded in India 9:48 9 minutes, 48 seconds since 2000. our stakeholders. This recognized recognition is powerful val validation of the entrepreneurial grid 9:56 9 minutes, 56 seconds and the leadership that has shaped our company's trajectory. 10:01 10 minutes, 1 second As we continue to redefine our place in India's economic future, we remain committed to the same spirit of innovation and value creation that is 10:10 10 minutes, 10 seconds our awarded awarded honors. To conclude, as nourished by guided, we expect revenue from operation to grow by 30% 10:18 10 minutes, 18 seconds FI26. We also upgrade our AITA margin guidance from 28 to 30 uh to 30 2 to 35% 10:27 10 minutes, 27 seconds range for our full year. With that, I I will now hand over our floor to chief financial officer Bin Sha who will walk you through the the financial update. 10:38 10 minutes, 38 seconds Over to you, Bin. Thank you Aishek. 10:43 10 minutes, 43 seconds I would like to briefly highlight the key performance metrics for the quarter and 9 month of FI26 before we open the floor for questions. 10:53 10 minutes, 53 seconds Let me start with the quarterly performance. Revenue from operations for the quarter reach 393.2 2 cr 11:00 11 minutes representing 43% growth yi gross profit for the quarter was 224 cr reflecting a 11:07 11 minutes, 7 seconds 26.1% increase compared to the same period last year the gross margin expanded by 173 basis point yi to 57%. 11:18 11 minutes, 18 seconds Gross margin was driven by improved product mix. AITA for the quarter was 150.7 cr which represent more than 11:26 11 minutes, 26 seconds two-fold increase compared to the AITA of the same period last year. AITA margin were at 38.3% 11:33 11 minutes, 33 seconds up 1335 basis point YITA margin was driven by expansion in gross margin as well as operating leverage bet 11:43 11 minutes, 43 seconds for the year paid for the quarter was 106.2 2 cr up 133.7% yi pet margin for 11:50 11 minutes, 50 seconds the quarter were 27% which show an expansion of,049 basis point yi moving on the 9 month 11:59 11 minutes, 59 seconds fi26 performance revenue from operation for the 9 months were 9 months of the year reach 9006.6 12:08 12 minutes, 8 seconds cr representing 29.8% 8% increase year-over-year. Abita for the 9 month 26 12:14 12 minutes, 14 seconds was 296.9 cr which was 2x compared to the same period last year. P for 9 month 12:21 12 minutes, 21 seconds FI26 was at 222.1 cr which more than doubled compared to the same period last 12:28 12 minutes, 28 seconds year. Moving on to the balance sheet item net cash and cash equivalent were at 129.5 cr as on 31st December 2025. 12:38 12 minutes, 38 seconds Our working capital for the quarter improved to 111 days. This mainly on account of higher data days whereas inventory and creditors remain stable. 12:49 12 minutes, 49 seconds With that I request the moderator to open the floor for questions. Thank you. 12:58 12 minutes, 58 seconds Thank you. 12:59 12 minutes, 59 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. 13:10 13 minutes, 10 seconds If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 13:20 13 minutes, 20 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 13:39 13 minutes, 39 seconds The first question comes from the line of Ricken Sha with Boring AMC. Please go ahead. 13:47 13 minutes, 47 seconds Uh hi sir, congratulations on a blockbuster performance. So thanks. First I wanted to ask uh you 13:54 13 minutes, 54 seconds know the overall direction of the semiconductor chemicals both the verticals. So in the last call we have mentioned about some new product 14:02 14 minutes, 2 seconds launches and trial batches for Baba and also if you can shed in you know the same question shed some light on the uh 14:11 14 minutes, 11 seconds uh what do you say the guidance of the facility in Korea coming up 14:17 14 minutes, 17 seconds on Baba Fine Cam business side as we discussed last time also as our endeavor 14:24 14 minutes, 24 seconds is to promote our uh products acts of Harious business which we were not marketing earlier at the time of 14:32 14 minutes, 32 seconds acquisition that we have started marketing in a newer geography and that has shown a very good result and you can 14:38 14 minutes, 38 seconds see the fine cam business has started turning around in terms of revenue. I think the last quarter was more of a 14:46 14 minutes, 46 seconds kind of bottom line bottom point for us from where we have started uh positively from this quarter onwards and going forward we are expecting some more 14:55 14 minutes, 55 seconds traction coming uh uh in business it will be a slow process but we are already on that good part of part of 15:04 15 minutes, 4 seconds growth so it's a encouraging result for us for indicam side uh the capex has started almost four months back and it 15:14 15 minutes, 14 seconds is progressing well as per the plan. We have already invested 130 uh cr towards the capex and hopefully by end of this 15:22 15 minutes, 22 seconds calendar year we should be able we should be able to complete the capex and start the business. 15:29 15 minutes, 29 seconds Uh got it sir. All right. Uh so uh okay so last quarter also we had mentioned in nonCDMO business and you also mentioned 15:38 15 minutes, 38 seconds again a change in the product mix. uh also you mentioned there is some conversion to flow technology. So my 15:46 15 minutes, 46 seconds question is that uh you know some of the legacy molecules they could have been transferred to flow tech much much earlier. So what has essentially changed 15:54 15 minutes, 54 seconds and you know why has this you know uh increased this much right now just trying to reason with you know what is happening. 16:03 16 minutes, 3 seconds So when we talk about the changing to the flow, chemists and all those things that is not related to the CDMO business. CDMMO business is a completely 16:12 16 minutes, 12 seconds uh with closed uh connection with the customer. We cannot right away change to any of those CMCO 16:21 16 minutes, 21 seconds business only sir. Yeah, sorry. Huh? For for a at X CMO of business, this is a very standard process for us to look at 16:29 16 minutes, 29 seconds every product on a monthly and a quarterly basis if there is any threat related to margin or any any cost 16:37 16 minutes, 37 seconds pressure. We do the cost improvement, margin improvement measure for this. So this is how we keep on upgrading our 16:47 16 minutes, 47 seconds product um upgrading our uh working on our cost on a on a regular basis and 16:54 16 minutes, 54 seconds those are the permanent kind of things which get insur which is the margin improvement more of a margin improvement for this quarter is 17:04 17 minutes, 4 seconds again for the because of the product mix only you look if you look at at the gross or material margin level it is an 17:11 17 minutes, 11 seconds improvement of 1.2% 2%. Which is where you see the uh product mix shifting and rest of the margin is coming from the operational uh efficiency. 17:22 17 minutes, 22 seconds Got it sir. Uh so what utilization would we be in at inleshwar and uh along the same line so what are the plan for 17:31 17 minutes, 31 seconds incremental pharma intermediate capex post aneshwar is at peak capacity utilization. 17:38 17 minutes, 38 seconds At Angleshwar plant the utilization has been 40 40% for the quarter and slowly 17:45 17 minutes, 45 seconds because see once the plant gets ready which was completed last quarter only so it's a time for products to get 17:53 17 minutes, 53 seconds validated from the newer side and slowly so it will start ramping up from that side. So newer product which are coming 18:00 18 minutes into the basket from our product portfolio and R&D line that now we have started shift uh we have we are doing 18:08 18 minutes, 8 seconds with the anklesite as well as some of the existing uh product which we are slowly transferring to the newer site. 18:15 18 minutes, 15 seconds In terms of capex for this site it is still premature to announce anything but as we mentioned this largely covers our 18:23 18 minutes, 23 seconds growth requirement till FI 28. So before 1 and a half year we may come up with uh some uh capex one based on the market 18:32 18 minutes, 32 seconds condition and future growth requirement. 18:37 18 minutes, 37 seconds Got it. So so you mean 40% for block three or for the entire site for entire site covering now the all 18:47 18 minutes, 47 seconds block uh available time for availability of all block whatever time it was. 18:55 18 minutes, 55 seconds Got it. So and uh you have mentioned three new CDMO manufactur projects uh in H1 FY26 and you know you had also guided 19:04 19 minutes, 4 seconds that they will ramp up in H2 FY26. So how has been the movement of these uh 19:11 19 minutes, 11 seconds new CDMO projects X of you know are the core CDMO molecules X of uh first CDMMO which we are talking 19:21 19 minutes, 21 seconds about we have validated in total in four number of CD projects have already been 19:27 19 minutes, 27 seconds validated for which we are expecting uh meaningful these are already commercial products but meaningful revenue we are 19:35 19 minutes, 35 seconds expecting from uh next financial uh year onwards. Meanwhile, there are many other products which are going for validation on a continuous basis expected from in this quarter also. 19:46 19 minutes, 46 seconds Got it sir. And just the last question from my side uh in terms of sustainability of margins uh gross margins where you know what would uh be 19:56 19 minutes, 56 seconds your outlook for that for at least if you can't say for a few years then maybe for FI27. 20:04 20 minutes, 4 seconds uh actually we are not guiding uh uh uh uh for any of a margin but we can uh discuss at 11 time for FI27. 20:15 20 minutes, 15 seconds All right sir. Thank you so much. Good luck. Thanks. 20:23 20 minutes, 23 seconds Thank you. 20:25 20 minutes, 25 seconds The next question comes from the line of Sudashan Padmanavan with ASK. Please go ahead. Okay. 20:33 20 minutes, 33 seconds Yeah, thank you for taking my question. 20:35 20 minutes, 35 seconds Uh actually taking forward from the previous participant. I mean uh now two things. One is we know that the onology 20:43 20 minutes, 43 seconds product itself is doing well. Uh you know if you go by you know Orion's commentary this year and also there is a 20:50 20 minutes, 50 seconds lot of product life cycle extension happening. So if I look at three years and talking about you know the thousand 20:56 20 minutes, 56 seconds cr you know um target how is you know the contribution from noncology products going to be if you can give some color 21:05 21 minutes, 5 seconds on the dependency of oncology and how are the other products in the pipeline. 21:10 21 minutes, 10 seconds So as me as we mentioned we have already validated four more products and during my comment as mentioned this gives us 21:18 21 minutes, 18 seconds the confidence that we'll be able to cross thousand cr for the CDMO business by FY28. So apart from that early 21:27 21 minutes, 27 seconds already going uh oncology product we have a good very good uh pipeline of 3DMO products uh in our product market. 21:35 21 minutes, 35 seconds In fact that has been very encouraging seeing at the kind of growth we are seeing for all those product development happening at our end. 21:45 21 minutes, 45 seconds Sure. Uh and sir then coming to the electrolyte uh you know uh the business that is on the battery chemical side uh 21:52 21 minutes, 52 seconds you know now we are looking at vanel carbonate and you know fluoethylene carbonate couple of products but if I take two three years down the line uh 22:00 22 minutes you know are we looking to expand this basket I mean what is the strategy here uh in terms of going with the book of product 22:09 22 minutes, 9 seconds yes of course these has been two [clears throat] pioneer setting stepping stone kind of product for us through which we get into this business. But as 22:17 22 minutes, 17 seconds we discussed last quarter also we have already commercialized two more products in this space. Capex phase 2 is already 22:25 22 minutes, 25 seconds being announced which is already under implementation and expected to get completed by Q3 FY Q1 FY 27 and there 22:34 22 minutes, 34 seconds are uh additional further more products which are already uh under development and for and for which uh business 22:44 22 minutes, 44 seconds development is also going on for which we you can find our list of product at our website also. 22:53 22 minutes, 53 seconds So this will largely be towards the end right I mean the battery. Yes. 23:01 23 minutes, 1 second Okay. Okay. Sure. Thanks a lot. All the best for the future. 23:09 23 minutes, 9 seconds Thank you. The next question comes from the line of Krishnan Pwani with JM Financial. Please go ahead. 23:16 23 minutes, 16 seconds Yes. Hi sir. Uh congratulations once again on very strong results. Uh just a couple of questions from my side. First 23:25 23 minutes, 25 seconds um have you signed or are looking to sign uh any new CDMO contract for the four products that you have uh that have been validated and you mentioned? 23:36 23 minutes, 36 seconds Yes, of course. Uh those are already uh those are with the orig uh originators and the uh relevant contact will be signed as relevant time. 23:48 23 minutes, 48 seconds Okay. And would you be uh let's say u I know you will not be giving out the names of the uh products but would you 23:55 23 minutes, 55 seconds be let's say uh sign the contract or no 24:03 24 minutes, 3 seconds sorry I didn't get you uh uh as in when you sign the contract would you be announcing the same? We will we will update uh as and when some 24:12 24 minutes, 12 seconds material uh update is to be provided uh uh as per the regulatory requirement. 24:18 24 minutes, 18 seconds Sure. Sure sir. And uh just one clarification uh indicate uh you said 150 cr will be in F26 basically 370 24:27 24 minutes, 27 seconds crash outlook in FI26 correct? 220 the capex and 150 the investment. 24:36 24 minutes, 36 seconds We have uh we have invested 140 cr by this year with the completion of capex 24:42 24 minutes, 42 seconds electrolyte it should be 220 and uh uh indic 24:49 24 minutes, 49 seconds 130 cr uh uh for the full year. Okay. So basically that 350 to 370 cr is a cash outflow in f26. Correct? 24:59 24 minutes, 59 seconds Yes. And next round of capex there can next round of investment for indie cam part may come in this quarter also. 25:08 25 minutes, 8 seconds Okay. No good. Uh and uh did you mention the uh uh battery chemicals uh incremental capex uh for the new two new products that you have added? 25:19 25 minutes, 19 seconds What would be that is what uh the second page is. 25:26 25 minutes, 26 seconds Okay. Okay. and and and revenue contribution you said will begin in the mid of FI27 from these two new products. Yes. 25:33 25 minutes, 33 seconds Okay. And VCF is already begin I think Nar mentioned from 17th January or so. 25:39 25 minutes, 39 seconds No let me clarify on this on the 19th of January plant integration was done then 25:46 25 minutes, 46 seconds now we are in the process of uh uh for validation trial basis and then commercialization will happen probably by end of this quarter. 25:57 25 minutes, 57 seconds Understood. So basically 1KFI 27 is uh we can assume the contribution from VC. 26:03 26 minutes, 3 seconds Yes. As you Yes, you rightly said as you know that we have already ordered in place. So by quarter end we should be 26:11 26 minutes, 11 seconds able to hopefully uh start commercial supply. 26:14 26 minutes, 14 seconds Perfect. And last bit uh so which cost overheads uh let's say the contribute uh to reduction in other expenses this 26:22 26 minutes, 22 seconds quarter because other expenses uh declined quite a lot uh and uh this quarter. So just wanted to understand the reason there I mean it's only three reduction. Yeah. 26:33 26 minutes, 33 seconds So Chris uh it was uh largely on account of savings on energy cost. Uh then there are few consumable and requests item and 26:42 26 minutes, 42 seconds we have improved uh many of our internal processes. Uh and um so those has all uh 26:49 26 minutes, 49 seconds think has helped us to uh reduce on uh other overheads uh for this quarter. 26:56 26 minutes, 56 seconds Understood. And the the uh energy savings is from the solar plant that we had installed. Correct. Mly from that. 27:04 27 minutes, 4 seconds Yeah. Okay. Okay. Okay. Thank you so much for answering my question. and wish you all the best sir. Thank you. 27:13 27 minutes, 13 seconds Thank you. The next question comes from the line of Abijit Akila with Kotk Securities. Please go ahead. 27:23 27 minutes, 23 seconds Yeah. Uh good evening. Thank you so much for taking my questions. Um first on the battery chemicals piece, uh you know, if 27:30 27 minutes, 30 seconds you could please just uh remind me what the uh new capacity addition is from the two new products coming up. uh by one 27:38 27 minutes, 38 seconds one uh one H I guess and and what is the capex that's being invested into those? 27:44 27 minutes, 44 seconds So actually we have not uh given any announce any uh capacity number for this capex uh the capex plan is uh uh is 40 cr. 27:59 27 minutes, 59 seconds Okay. Okay. Got it. And uh with regard to Baba um you know given that the uh business has started to turn around is 28:06 28 minutes, 6 seconds there a revenue you know sort of guidance that we could uh you know look at for x26 as a whole. 28:15 28 minutes, 15 seconds So as of now we have not given any guidance on this obviously this is the uh season for budget also we may give the guidance at relevant time. 28:28 28 minutes, 28 seconds All right. And uh just uh one last one from my side with regard to the product concentration. Um you know it does seem 28:37 28 minutes, 37 seconds like maybe the top CDMO product is uh you know driving a lot of the growth uh for the company over the last year or so. Uh we have a lot of other growth 28:46 28 minutes, 46 seconds projects coming up in the next year to two years. So if we look out maybe three to five years you know what sort of 28:53 28 minutes, 53 seconds product concentration would you uh expect to see from the top product just over that time frame I mean how how significantly can we derisk ourselves from you know that concentration risk. 29:03 29 minutes, 3 seconds So as we already discussed we are working and uh as we mentioned four products are already validated and then 29:11 29 minutes, 11 seconds many more products in pipeline for CDMO business apart from the traditional uh business and then another good engine of 29:18 29 minutes, 18 seconds electrolyte and semiconductor is coming up. So obviously idea is to derisk uh product concentration going forward but 29:27 29 minutes, 27 seconds I will not able to give you any guidance on this the on the product mix for uh in next uh three year times. 29:38 29 minutes, 38 seconds Got it. No thank you. Thank you so much. 29:39 29 minutes, 39 seconds But generic side also the products like epic saban saban are already progressing well. So those are also kind of engine 29:48 29 minutes, 48 seconds uh for uh apart from this CDMO space. Okay, thank you so much. All the best. 29:59 29 minutes, 59 seconds Thank you. 30:01 30 minutes, 1 second The next question comes from the line of Pratik with Union Mutual funds. Please go ahead. Yeah, many congratulations 30:09 30 minutes, 9 seconds Abhishek by Narish B for great set of numbers. Couple of questions from my side on your encore CDMMO u how's 30:17 30 minutes, 17 seconds outlook looking uh in terms of new indication new geography uh additions what sort of outlook uh are you 30:25 30 minutes, 25 seconds envisaging uh based on your interaction with the customers uh for your encomo 30:33 30 minutes, 33 seconds for uh this business as you know it's a CDMO business we are completely driven by the whatever projection has been given by our end customers 30:42 30 minutes, 42 seconds So obviously uh as you read in the market and related to product and market expansion but we are giving the thousand 30:50 30 minutes, 50 seconds core guidance based on whatever the customer expectation uh is there for till FI28. 30:58 30 minutes, 58 seconds All right uh and in terms of this uh recent EU FDA uh 31:05 31 minutes, 5 seconds will we benefit in any ways? uh so for uh let's say for uh EU FDA deal 31:12 31 minutes, 12 seconds obviously it it will be a welcome uh deal for the not for only for us it's for whole uh uh industry so we are uh we 31:22 31 minutes, 22 seconds may also uh be the beneficiary of whole as industry cycle are any of our products uh under tariffs 31:31 31 minutes, 31 seconds or So it's a we are uh we are supplying on 31:41 31 minutes, 41 seconds a protocol CFS bas CF bas and it's a customer's requirement to uh get it 31:48 31 minutes, 48 seconds custom clear at their end but for us uh it it has not been any time matter of concern earlier also. 31:57 31 minutes, 57 seconds Got it. Yeah. Thanks a lot and wish you all the best. Thanks. 32:05 32 minutes, 5 seconds Thank you. The next question comes from the line of Rohit Bagaraj with 361 Capital. Please go ahead. 32:13 32 minutes, 13 seconds Uh thanks for the opportunity and congrats on very strong set of numbers. 32:18 32 minutes, 18 seconds The first question on CDMO front. uh so during the first nine months how many total uh commercial products that we are 32:27 32 minutes, 27 seconds servicing uh on the CDMO and what would be the mix between pharma and agro uh 32:34 32 minutes, 34 seconds and an allied question to that when we see fi28,000 crores what is the kind of 32:41 32 minutes, 41 seconds mix that we are looking at from the pharma and agro thank you no when we 32:49 32 minutes, 49 seconds when we talk about thousand core revenue it is for the CDMO business uh uh uh 32:55 32 minutes, 55 seconds only so it's not sorry when we talk about it's not about split between farmer and agro 33:05 33 minutes, 5 seconds uh I question so there is no there is no agro business in 33:11 33 minutes, 11 seconds CDMO all the CDMO is only from pharma you done 33:17 33 minutes, 17 seconds okay so all all CDMO No business is to pharma only. No uh agro business is 33:24 33 minutes, 24 seconds there and in terms of product mix or uh that we are not uh guiding uh or that we 33:32 33 minutes, 32 seconds are not disclosed uh uh anywhere because of the confidential confidentiality nature of the CDMO contracts. 33:39 33 minutes, 39 seconds Sure. Sure. I'll just rephrase the question. How many molecules are currently being commercialized and when we'll reach say 1 th00and cr what is the 33:49 33 minutes, 49 seconds number of molecules that will be commercialized and those will be serviced as on that we have already five 33:56 33 minutes, 56 seconds commercialized product as we mentioned and going forward obviously the number will be higher it is difficult to say the number of products which will be 34:04 34 minutes, 4 seconds contributing uh uh till uh at the end of FI28 sure uh that that's clear. Uh second on 34:13 34 minutes, 13 seconds the uh INDM venture uh when do we expect uh the commercialization of the facility 34:20 34 minutes, 20 seconds and probably the first year of operation uh and any visibility in terms of how the revenues are likely to be scaled up 34:28 34 minutes, 28 seconds and what kind of uh arrangement in terms of product offspect that what we are currently looking at. Thank you. for 34:36 34 minutes, 36 seconds indic project as I mentioned our plan should plan con capex should completed 34:43 34 minutes, 43 seconds by this calendar year uh year 2026 and next year on calendar on not we should 34:50 34 minutes, 50 seconds see uh revenue uh coming up uh in this business in terms of uh number or the 34:56 34 minutes, 56 seconds size or scale of this business largely you can expect that for this semiconductor business the asset will be 35:04 35 minutes, 4 seconds in the range of 1 is to one and with a uh high uh aida margin as compared to pharma business. 35:13 35 minutes, 13 seconds Sure. Just one clarification for the first 9 months what could be the CDM of contribution in our total revenues. 35:20 35 minutes, 20 seconds No, not that we are not uh I'm afraid I will not be able to uh give you this number. 35:27 35 minutes, 27 seconds No worries. No worries. Thanks a lot for answering all the questions and all the best sir. Thanks. 35:34 35 minutes, 34 seconds Thank you. The next question comes from the line of Jason S with IDBI Capital. Please go ahead. 35:43 35 minutes, 43 seconds Yeah, sir. Thank you so much for taking my question and uh really congratulations on a very strong set of numbers. So, first question just wanted 35:50 35 minutes, 50 seconds to understand I mean of course I understand that the CDMO piece is doing really well but around two quarters back you did give some color on how the CDMO 35:58 35 minutes, 58 seconds piece is doing and the nonCDMO piece is doing. So CDMO yes doing very well. Just wanted some color on the non CDMO business as well. How was it shaping up? 36:08 36 minutes, 8 seconds Non CMO as I mentioned during my commentary also the non CDMO pharma intermediate business is also growing in 36:15 36 minutes, 15 seconds a higher uh uh singledigit number. You may feel like it's a lower number but as I mentioned now we are more focusing 36:23 36 minutes, 23 seconds towards the quality growth as compared to uh the uh commodity uh intermediate 36:30 36 minutes, 30 seconds products. And in terms of uh uh growth for this business as I mentioned some of the uh generic products couple of 36:39 36 minutes, 39 seconds generic products are already doing well in this uh in this financial year in last quarter also and some of the new 36:46 36 minutes, 46 seconds products are expected to join uh in this business for uh coming quarter also. So these are the products which are driving growth for us in nonCDMO business also. 36:57 36 minutes, 57 seconds But because the pharma CDMMO business is growing exponentially, it has become the most uh highlighting point for uh for all of us. 37:08 37 minutes, 8 seconds Yes. Sure sir. Sure. And so just uh I mean you you usually do give the Aida margins for the segments. So sir just 37:15 37 minutes, 15 seconds for the API business and for the specialty chemicals what are the segmental AIDA margins sir for this quarter? 37:23 37 minutes, 23 seconds uh for the quarter EITA margin for pharma business is around 41%. And speciality is around 12%. 37:31 37 minutes, 31 seconds Okay. And sir related to that just wanted to understand I know additives hasn't started yet but uh you know it will start it will soon start. So just 37:39 37 minutes, 39 seconds wanted to understand initially what kind of margin are you baking in for this additives business and so first start 37:46 37 minutes, 46 seconds and then at optimum utilization is is a 20% margin safe to you know uh basically incorporate at at an optimum utilization 37:55 37 minutes, 55 seconds scale uh see we have not guided any uh any margin expectation for this business as 38:03 38 minutes, 3 seconds of now but uh I what I can share is the margin profile will be below the traditional pharma intermediate business 38:11 38 minutes, 11 seconds and above the uh existing uh parabin or commodity chemical uh business. Uh 38:18 38 minutes, 18 seconds obviously at uh at at the beginning uh the margin will be uh lower because of the operability or the scale of the 38:27 38 minutes, 27 seconds business but it will get better but as you know we have a good contract in hand so the scaleup should be much faster uh 38:35 38 minutes, 35 seconds uh to get the operational uh operating efficiencies. 38:41 38 minutes, 41 seconds Sure. Sure. Sure sir. And so just to clarify just if to uh you know the capex for the electrolyte editings was 177 38:49 38 minutes, 49 seconds crores when you mentioned it now you're adding 40 crores more to it. Is the understanding right? 38:54 38 minutes, 54 seconds Yes that's right. Okay that's good. So 177 and 40 crores you'll be adding more and again uh again another clarification 39:02 39 minutes, 2 seconds which I had is you said that the capeex is 220 crores for 26. So 220 crores plus your 130 crores going to indic that kind 39:11 39 minutes, 11 seconds of totally becomes 350. Is that that also understanding should be right? Correct. 39:16 39 minutes, 16 seconds No. So for uh full year uh so for 220 cr in full uh will not get completed by 39:23 39 minutes, 23 seconds March 26 but when it gets completed uh total uh for electrolyte total capex 39:29 39 minutes, 29 seconds will be 2 uh 20 and for uh at the full company level uh 39:38 39 minutes, 38 seconds the total capex uh total capex will be uh 220 cr including uh what including all the segments. 39:49 39 minutes, 49 seconds Okay. So even including the indicam uh investment it will be I am talking about capex. So it will be 39:56 39 minutes, 56 seconds by end of the year capex towards electrolyte will be in the range of 170 cr for this financial year 20 maybe 40:05 40 minutes, 5 seconds towards the pilot plant and remaining will be maintenance some portion of the uh solar capex totaling to 220 cr. 40:15 40 minutes, 15 seconds Okay. Okay. and 130 is over and above this. So indic is separate separate from this. That's what investment is over and 40:21 40 minutes, 21 seconds above this is 220 that overall going to be around 350 cr. 40:28 40 minutes, 28 seconds Yes. Yes. Yes. Sure. Sure. And sir just lastly wanted to understand sir uh you know I understand the BS and indic are basically focused on the semiconductor 40:36 40 minutes, 36 seconds space. Just sir if you could give us some understanding on some color on how complex how mar high margin will these 40:44 40 minutes, 44 seconds products be probably you are saying 28 by 28 you'll see meaningful revenue from these uh set of business as well so if 40:52 40 minutes, 52 seconds you could give us some color on how complex how margin high margin these products can be or what potential these products can contribute. So what I can 41:00 41 minutes share to you is you already know about the margin profile of uh BFC because it's already our existing business. You 41:08 41 minutes, 8 seconds you can refer our financial also and [clears throat] on top of that I can add that at indicam in South Korea we 41:16 41 minutes, 16 seconds are going for further value addition uh in this space. So these are these are what I can share to you on this. 41:27 41 minutes, 27 seconds Sure sir. Okay. Okay. Thanks. Thank Thank you so much for answering this. Thank you. 41:34 41 minutes, 34 seconds Thank you. The next question comes from the line of Sajel Kapoor with anti-fragile thinking. Please go ahead. 41:43 41 minutes, 43 seconds Yeah. Hi, thanks for the opportunity. Um fantastic work Acutas team uh moving um not just looking at this quarter I mean 41:51 41 minutes, 51 seconds moving gross margins from 40 45% to upwards of 55% now in just about 2 years 41:58 41 minutes, 58 seconds is a is a clear testament to your focus um on efficiency and smart execution. So well done on that. Um coming to my 42:06 42 minutes, 6 seconds questions um uh three years from now uh what would convince us that Acutas successfully um transitioned from a 42:15 42 minutes, 15 seconds diversified speciality chemicals company to a to a sort of scientifically differentiated electronics grade 42:22 42 minutes, 22 seconds chemicals platform and what would failure look like 3 years out. 42:28 42 minutes, 28 seconds So as our chairman Narisha already mentioned during his speech uh for him in next year he expect all his three 42:36 42 minutes, 36 seconds verticals uh uh standing not only standing on its own but they would be contributing meaningfully uh and 42:45 42 minutes, 45 seconds generating a good amount of uh uh profit uh in all those segment is what we would like to see in uh in next three years time. 42:57 42 minutes, 57 seconds Yeah. So, so in terms of some of the critical capabilities, I mean, be it talent, uh, purity control, you know, customer trust or capital, what what out 43:06 43 minutes, 6 seconds of these will be the hardest to scale and and how are you positioning um yourself just to, you know, protect the downside? 43:17 43 minutes, 17 seconds Okay. Uh uh Silj uh uh when we started this journey we designed uh when we 43:26 43 minutes, 26 seconds designed the plant and everything all the timelines and uh requirement of the project is defined and accordingly we 43:33 43 minutes, 33 seconds are having uh successfully installation of the uh plant as well as uh parallelly recruitment of the people talent and 43:41 43 minutes, 41 seconds also technology uh implementation everything is uh as per the program and timeline we are doing that so we don't 43:49 43 minutes, 49 seconds see any hurdle in this kind of techn technical people available or secondly thing is that whatever the processes are 43:57 43 minutes, 57 seconds there that is in-house design so we have a strong knowledge about our processes and wherever we don't know the strong 44:05 44 minutes, 5 seconds strongness then we do a JV kai like an indication but the knowledge is coming from our 44:12 44 minutes, 12 seconds partner so this how we are we solve our problem or any issues which is coming in that. So I hope this will help you to understand. 44:22 44 minutes, 22 seconds Yes, it does. Yeah. Thank you. And and lastly beyond absolute R&D headcount which I think is currently about 130 odd 44:31 44 minutes, 31 seconds scientists. Uh so beyond the absolute headcount um how has our effective scientific throughput changed over the 44:40 44 minutes, 40 seconds last sort of 12 to 18 months? I mean be it I mean you can measure it um in terms of projects per scientist time to 44:49 44 minutes, 49 seconds qualification or you know successful tech transfers to manufacturing. So I'm just trying to understand the rate of change and that has happened in the 44:57 44 minutes, 57 seconds organization above and beyond the the R&D headcount which we keep publishing over the last 12 to 18 months because a 45:04 45 minutes, 4 seconds lot of material change has happened on the gross margin as I said and and I've seen many chemical companies struggle 45:11 45 minutes, 11 seconds with the gross margin um you know 40% 35% in that range clearly we have broken 45:17 45 minutes, 17 seconds out so something must have um happened um beyond the absolute numbers right I mean so if you can just give us some 45:25 45 minutes, 25 seconds sort of a qualitative understanding thank you as when I started this journey in public 45:32 45 minutes, 32 seconds u um we always say that we are a company is a chemistrydriven company R&D driven company so our core strength is our R&D 45:40 45 minutes, 40 seconds and our team core people are very well uh knowledgeable about chemistry what chemistry we do we are very expertise in 45:49 45 minutes, 49 seconds that we have more than 680 molecules is developed in our R&D. So uh I uh that will help us to understand the 45:57 45 minutes, 57 seconds chemistry. uh USP of incremental margin is not only R&D but every all the sectors there are several parameters 46:06 46 minutes, 6 seconds which is contributing to make the margin improvement which is not only including the process improvement but also energy 46:15 46 minutes, 15 seconds uh technology uh personal efficiency these all uh utility everything is combinedly work on that and that's how 46:24 46 minutes, 24 seconds we we had improved our margin also the product mix layoff some products which are almost uh old age and no margins 46:32 46 minutes, 32 seconds remain in that. So these are all things which is cumulatively effort done by the team and accordingly we improve our margin. So the R&D point of view our run 46:41 46 minutes, 41 seconds rate of developing around molecules annually and which is we are doing very well. So and uh uh sooner or later we go 46:49 46 minutes, 49 seconds for the expansion of our R&D also as and when we require we will announce that as well right because I was coming to that um so 46:58 46 minutes, 58 seconds currently we are at 130 140 you expect that number to bump up um over the next 12 months um or so right? 47:07 47 minutes, 7 seconds Yeah. 47:09 47 minutes, 9 seconds Yeah. Okay. No understood. Thank you so much for answering all my questions and wish you guys um the very best. Thank you. 47:19 47 minutes, 19 seconds Thank you. 47:21 47 minutes, 21 seconds The next question comes from the line of Bat Sha, an individual investor. Please go ahead. 47:31 47 minutes, 31 seconds Uh 47:33 47 minutes, 33 seconds [clears throat] 47:35 47 minutes, 35 seconds uh Nareshi I didn't have any question but I just wanted to uh congratulate you 47:42 47 minutes, 42 seconds and the team uh from a small firm with pachy businesses to specialtity and 47:50 47 minutes, 50 seconds multiple products plus much more on the envel s uh from uh uh kind of commodity businesses in 47:59 47 minutes, 59 seconds API and intermediate to specialtity and developing CDMO uh semiconductor and battery chemical 48:09 48 minutes, 9 seconds specialtities. I think the firm has come a fantastic way and all of that in a relatively short period of time. So 48:16 48 minutes, 16 seconds hearty congratulations to you and the team. This is a dramatic performance. 48:23 48 minutes, 23 seconds Thank you. Thank you, Batai. All blessings of you and all investors. 48:28 48 minutes, 28 seconds Thank you. Please keep us vigilant and more vigilant to work on uh projects uh 48:35 48 minutes, 35 seconds uh that encourage us to perform more and more better way. Thank you for keeping trusting us. 48:41 48 minutes, 41 seconds No, no, thank you. And I've also seen uh that interaction with your team members 48:49 48 minutes, 49 seconds is never about numbers but about the business and how well for example Abhishe invariably deals with all 48:59 48 minutes, 59 seconds business related issues and how things are progressing. It is very heartening otherwise many of the discussions end up 49:07 49 minutes, 7 seconds being very mundane but uh this has been a refreshing exchange of views while talking to your team. 49:17 49 minutes, 17 seconds Thank you. Thank you Barat. Thank you Barai for admiring my team. 49:20 49 minutes, 20 seconds I'm really happy to hear this kind of acknowledgement from a very veteran uh 49:27 49 minutes, 27 seconds person like you from industry. Thank you. Thank you very much. Thank you. 49:34 49 minutes, 34 seconds Thank you. The next question comes from the line of Vignesh Ayar with Sequent Investments. Please go ahead. 49:42 49 minutes, 42 seconds Uh hello sir. Uh congratulation on excellent set of number. Uh so my first question is on the working capital part 49:49 49 minutes, 49 seconds of it. Uh wanted to understand uh uh what was our working capital days uh in 49:55 49 minutes, 55 seconds uh quarter 3 uh net working capital. If you could give us a split of the inventory receivable and payable at last. 50:04 50 minutes, 4 seconds So it is 111 days uh data stand at 100 days, inventory at 55 days and payable is at 44 days. 50:15 50 minutes, 15 seconds Okay. Uh I mean uh so what is uh the standard? I mean I think the inventory days are bit higher uh than usual. any 50:24 50 minutes, 24 seconds specific uh reason for that or would you see that the days uh you know go down uh 50:31 50 minutes, 31 seconds in quarter four uh uh so traditionally we said that uh 110 50:38 50 minutes, 38 seconds days are the standard for uh uh many quarters and uh what we try to always see that we should reduce and come come 50:46 50 minutes, 46 seconds it down to 100 days but 110 days is a very standard period and uh comfortable 50:52 50 minutes, 52 seconds for looking at our business uh 55 uh days of inventory I believe uh that is a a good benchmark in the industry also. 51:02 51 minutes, 2 seconds So 55 days is a comfortable standard for uh working with uh our kind of business. 51:08 51 minutes, 8 seconds In fact there is obviously there will be a many uh scope for improvement for inventory or working capital base and we 51:16 51 minutes, 16 seconds are working and we have in fact if you see uh we have not only gone beyond our uh growth for the revenue we have always 51:25 51 minutes, 25 seconds kept our eyes on the balance sheet item and a cash flow and if you see in last three year also we have always sequentially improved our working 51:33 51 minutes, 33 seconds capital uh days. Obviously there will be a uh room for the uh uh for the improvement of uh inventory days or data 51:41 51 minutes, 41 seconds days any time but uh uh we have always been a good cash flow generating company if you see uh last three years performance. 51:52 51 minutes, 52 seconds Oh definitely definitely uh sir uh that was my thank you. 52:02 52 minutes, 2 seconds The next question comes from the line of Vive Gotham with GS investments. Please go ahead. 52:08 52 minutes, 8 seconds Congratulations on a consistently good set of numbers. Sir, my question is about the opportunity size for our 52:15 52 minutes, 15 seconds different segments and number two is about the Chinese competition threat in any of the segments. Sir 52:25 52 minutes, 25 seconds for Chinese competition see we are into the business of chemical and intermediate. So we cannot ignore this Chinese competition and we have been 52:33 52 minutes, 33 seconds dealing with all those competition for almost more than a decade. 52:38 52 minutes, 38 seconds What I can say is that we are very good at a at at a chemistry that is our then 52:46 52 minutes, 46 seconds we do multiple chemistry for any of the product at a large scale uh which is a 52:53 52 minutes, 53 seconds key or USP for us as against any Chinese competition and that's the reason you can you can see that for majority of our 53:01 53 minutes, 1 second top product we are the leader uh covering more than 70 80% of the market 53:08 53 minutes, 8 seconds share. So it's a it's nothing or something which we are dealing uh day in day out. In terms of market 53:15 53 minutes, 15 seconds opportunities uh let's say for some of the products like uh anti-cancer which is already uh going well uh you can 53:24 53 minutes, 24 seconds defer the some of the presentation of our customer and end customers which can give you the insight about these things 53:31 53 minutes, 31 seconds and in terms of uh this product like uh electrolyte additive space wherein VC and EPC we have a very humble capacity 53:40 53 minutes, 40 seconds of 2,000 metric ton in terms of as against whatever uh uh uh as against the total VC and FC 53:48 53 minutes, 48 seconds market uh inter. So as of now we are very small as against the opportunity size uh 53:55 53 minutes, 55 seconds available both for the VC FC kind of uh electrolyte additive product as well as 54:02 54 minutes, 2 seconds the conductor space where we have only just started in this business. So 2,000 metric ton for VC and 2,000 for FC. It's 54:11 54 minutes, 11 seconds a very small uh uh size as of now as against the full opportunity size. 54:19 54 minutes, 19 seconds Lastly, how much is the exposure we are having for the US market and uh any impact of tariff and other things? 54:27 54 minutes, 27 seconds We have we have very small amount of direct export to uh the US market. largely it is from 54:35 54 minutes, 35 seconds our subsidiary called Baba Fine Cam only. Uh so we do not have u much of the impact uh for US tariff. 54:46 54 minutes, 46 seconds Thank you sir. Keep up the good work sir. 54:52 54 minutes, 52 seconds Thank you. The next question comes from the line of Akai with AK Investment. Please go ahead. 54:59 54 minutes, 59 seconds Hello. Uh thank you for giving me the opportunity and first of all uh um congratulations on very uh strong set of 55:07 55 minutes, 7 seconds number my uh all all my questions has been answered but my uh only question is that after FY26 can we grow sustainably 55:17 55 minutes, 17 seconds by 25 to 30% yearon year till next four to five years for consolidated business 55:24 55 minutes, 24 seconds sir we have uh we have been growing uh uh for more than 25% not For last two three years we have grown more than 25% 55:33 55 minutes, 33 seconds uh for more than decades and that is what we have already guided the market that for next 3 years also we would be growing more than 25% at revenue level. 55:45 55 minutes, 45 seconds Yeah that's right and very promising. Uh all the best for the future. Thank you so much. Thanks. 55:54 55 minutes, 54 seconds Thank you. The next question comes from the line of Jason Sones with IDBI Capital. Please go ahead. 56:02 56 minutes, 2 seconds Sir, thanks for taking my question again. Just a small question I had. I mean you have a 2,000 ton capacity of V 56:09 56 minutes, 9 seconds VC and FC both right now. I just wanted to know you also have a contracted 4,000 in total. Correct. Yes. 56:17 56 minutes, 17 seconds Yes. So sir uh with the contract in place any capacity utilization you are looking at going ahead I mean how much 56:25 56 minutes, 25 seconds would that uh with the contract in place how much of that capacity you know uh of the 4,000 it would take 56:34 56 minutes, 34 seconds so because of confidentiality of the of the agreement we will not be able to share the utilation otherwise people 56:41 56 minutes, 41 seconds will figure out the contact details so we are not disclosing it but mentioned we have good visibility in terms of uh 56:50 56 minutes, 50 seconds contract for FI27 and going forward also and uh uh we are expecting fast uh uh scaling up of this business. 57:01 57 minutes, 1 second Okay. Okay. And so just uh also you know with all that happening in China with the anti-involution and things and with 57:08 57 minutes, 8 seconds lithium prices, electrolyte prices and additive prices also going up you know with lithium carbonate and all. Do you 57:14 57 minutes, 14 seconds think I mean whatever you're seeing that goes very positively for the additive business going ahead. 57:22 57 minutes, 22 seconds for additive business as I mentioned we have already signed contract in place which is more of a fixed pricing 57:29 57 minutes, 29 seconds contract with uh variability if uh is there in terms of key raw material as 57:36 57 minutes, 36 seconds well as the uh as well as the currency pricing. So we believe in long-term supply or long-term relationship with 57:44 57 minutes, 44 seconds the customer and obviously we earn our margin based on the those uh already signed contracts. 57:53 57 minutes, 53 seconds Okay. Okay. So so this contract is in place probably for future contracts it would be beneficial. Correct. 58:01 58 minutes, 1 second So as I mentioned, we believe not on the short-term gaining of this market uh movement. We more driven by the long-term supply contract. 58:14 58 minutes, 14 seconds Okay. Sure. Sure. That's all from my sense. Thanks. Thanks for answering my question. 58:21 58 minutes, 21 seconds Thank you. The next question comes from the line of Chandra Rampurya with Arya Fin invest. Please go ahead. 58:30 58 minutes, 30 seconds Hello. Can you hear me please? Yes. Yes, sir. Please go ahead. 58:34 58 minutes, 34 seconds Yeah. Yeah. First of all, thank you Maris. Uh superb results and very well done. Uh and I have been following your 58:42 58 minutes, 42 seconds growth for for some time now and I'm really impressed. Uh a short while ago you mentioned in the context of the 58:49 58 minutes, 49 seconds anti-cancer CDMMO that the projections are uh from the customer are in place till 28. So just wanted to uh get the 58:58 58 minutes, 58 seconds clarification is it the projections are there till 28th or is the contract till 28th? 59:06 59 minutes, 6 seconds We never said that we have up to 28 we have some projection or something like that. We always say that we have a long-term supply contract for these anticipants. 59:19 59 minutes, 19 seconds Huh? Because uh uh short while ago you mentioned about uh the revenue guidance 28 and that is based on customer 59:28 59 minutes, 28 seconds projection. So that's why just this clarification. 59:30 59 minutes, 30 seconds No no so 28 we announced 1,000 cr CDMO business. So that CDMO business is not 59:38 59 minutes, 38 seconds only belongs to anti-cancer this is will community of several uh other CDMO as well and that will be we will be 59:46 59 minutes, 46 seconds complete by 2028 we reach to this milestone this is what I say but that milestone 1,000 K is not belongs to the 59:54 59 minutes, 54 seconds CDMO of anti-cancer but this is is a bundle of several CDMO business oh that that's fine it's all fine 1:00:03 1 hour, 3 seconds I hope this will clarify your doubt sure sure That's helpful. Thank you. 1:00:11 1 hour, 11 seconds Thank you ladies and gentlemen. Due to time constraint, this was the last question for today. I now hand the 1:00:18 1 hour, 18 seconds conference over to the management for closing comments. 1:00:23 1 hour, 23 seconds Thank you to the JM financial team for hosting our conference call. We appreciate everyone's questions and hope we have addressed most of your queries. 1:00:32 1 hour, 32 seconds If we missed any of your questions, please reach out to our investor relations team and we will get back to you promptly. Once again, thank you very much and have a good evening. 1:00:45 1 hour, 45 seconds Thank you on behalf of JM Financial. 1:00:48 1 hour, 48 seconds That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.