Advanced Enzyme Technologies Limited — Q3 FY26

Advanced Enzyme Technologies Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=yeRRmDf7AwA Published: 3 months ago

0:00 Good evening ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to Advanced Enzyme Technologies Limited Q3 and 9month FI26 0:09 9 seconds earnings conference call. As a reminder, all participants will be in listen only mode and there'll be an opportunity for you to ask questions after the 0:18 18 seconds presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on a touchstone 0:26 26 seconds telephone. Please note this conference is being recorded. I would now like to hand over the floor to Mr. Onak Shariff, 0:34 34 seconds manager investor relations. Thank you and over to you sir. Thank you Akash. 0:39 39 seconds Good evening everyone. Welcome to advanced enzyme technologies Q3 and 9 months FI26 earnings conference call. We 0:47 47 seconds sincerely hope you all have gone through our financials and all the disclosures which uh has been posted in the investor relation section of our website. 0:58 58 seconds Today we have with us Mr. Prasantrai chairperson, Mr. Mukun Kabra full-time director and Mr. Bini Raa group CFO. 1:10 1 minute, 10 seconds Today the management will discuss the performance and business highlights update on strategies and respond to any questions that you may have. As usual 1:19 1 minute, 19 seconds for the ease of discussion, we will look at the consolidated financial funding. 1:24 1 minute, 24 seconds Now I would like to draw your attention to the fact that some of the information shared during the call particularly regarding our plans 1:33 1 minute, 33 seconds strategies and the future outlook may contain forward-looking statements. 1:38 1 minute, 38 seconds These statements involve inherent interest and uncertaintities and are based on current expectation forecast and the assumptions. 1:47 1 minute, 47 seconds The actual results may differ materially from those expressed or implied in these statements influenced by a range of 1:55 1 minute, 55 seconds factors including but not limited to economic conditions, change in government policy, regulatory 2:02 2 minutes, 2 seconds developments and other unforeseen circumstances. 2:06 2 minutes, 6 seconds Recipients are cautioned not to place undue reliance on these forwardl lookinging statements as they are not guarantees for future performance and 2:16 2 minutes, 16 seconds should not be viewed as substitute for independent judgment. The company undertakes no obligation to update or 2:23 2 minutes, 23 seconds revise any such statements whether as a result of new information, future events or otherwise. Now so without any further 2:32 2 minutes, 32 seconds ado we shall commence this call. Over to you Muk. Thank you Ronut. Good evening everyone. I really appreciate you all 2:40 2 minutes, 40 seconds for taking out your valuable time and I extend a heartiest welcome to everyone joining us today on the conference call 2:48 2 minutes, 48 seconds for the quarter and 9 months ended 31st December 2025. The global markets are experiencing considerable disruption due 2:56 2 minutes, 56 seconds to the imposition of US tariffs leading to the shift in market dynamics. As the tariff situation continues to evolve, we are well positioned to evaluate its 3:04 3 minutes, 4 seconds impact given the significance of the Americas as a key export market for us. Concurrently, we remain optimistic. 3:12 3 minutes, 12 seconds Based on the available news, reciprocal tariff is reduced from 25% to 18% and the additional penal levy of 25% that 3:21 3 minutes, 21 seconds had been imposed on India for buying Russian oil has also been dropped. The overall performance for the period was 3:27 3 minutes, 27 seconds mixed. While several of our businesses delivered healthy growth, others remained flat. Despite ongoing global 3:35 3 minutes, 35 seconds uncertainties, our focus on operational excellence help us maintain steady momentum towards the fullear guidance. 3:43 3 minutes, 43 seconds Our top line for the quarter stood at 1,719 million reflecting a 2% yearon-year 3:51 3 minutes, 51 seconds growth and decline of 7% compared to the previous quarter. On year-to- date basis, revenue grew by 15%. 4:01 4 minutes, 1 second EVA came in came in at rupees 494 million which is 11% down year on year 4:08 4 minutes, 8 seconds and 18% lower quarteron quarter. While on YTD basis it grew by 11%. 4:16 4 minutes, 16 seconds Evita margin for the quarter stood at 29% and 31% and for the 9 month of 4:22 4 minutes, 22 seconds financial year 26 it stood at 31% as compared to 32% in 9 month of financial 4:28 4 minutes, 28 seconds year 25. Moving on to the profitability, our profit after tax reached rupees 432 4:37 4 minutes, 37 seconds million resisting a 11% growth year on year and 3% decline quarter on quarter. 4:44 4 minutes, 44 seconds On YTD basis, it grew by 20%. The PAT margin at 25% for the quarter and 24% 4:53 4 minutes, 53 seconds for the year to date. Now I will take you through our segment wise revenue performance for the third quarter of 4:59 4 minutes, 59 seconds financial year 26 and compare it both yearon year and sequentially with quarter 3 financial year 25 and quarter 2 financial year 26. 5:11 5 minutes, 11 seconds Let's begin with human healthcare. Our largest segment revenue for quarter 3 financial year 26 stood at rupees 962 5:19 5 minutes, 19 seconds million making a 6% yearon-year decline and 21% on sequential basis while growth 5:27 5 minutes, 27 seconds of 12% is observed in 9 months year-to- date basis. 5:34 5 minutes, 34 seconds This degrowth is on account of lower sales in the pharma API and nutrition business across both domestic and 5:41 5 minutes, 41 seconds international markets. Human healthcare contributed 56% over total revenue in the current quarter. 5:49 5 minutes, 49 seconds Next we have animal healthcare revenue rose to 241 million delivering a 22% increase year on year 25% on sequential 5:58 5 minutes, 58 seconds basis and 26% on year-to-ate basis. 6:03 6 minutes, 3 seconds Annual healthcare accounts for 14% of the total revenue in the current quarter. Turning to bop processing, this 6:11 6 minutes, 11 seconds segment recorded 13% year-on-year growth during the quarter. 41% sequential growth and 15% year-to- date growth. 6:21 6 minutes, 21 seconds This growth is primarily on account of robust performance of our food business. 6:26 6 minutes, 26 seconds The food business grew by 16% on yearon-year basis, 51% on quarteron-quarter basis, and 19% on 6:34 6 minutes, 34 seconds year-to- date basis. The non-food business degonar basis. It grew by 3% on quarteronquarter 6:44 6 minutes, 44 seconds basis while there is marginal increase of 1% on year-to-ate basis. 6:51 6 minutes, 51 seconds Lastly, the specialized manufacturing segment remained flat on year-on-year basis while it deg. 7:04 7 minutes, 4 seconds This segment represents 9% of our overall revenue in the current quarter. 7:10 7 minutes, 10 seconds The quarter presented its share of headwinds. Nevertheless, we remain steadfast in our strategy and confident in the 7:20 7 minutes, 20 seconds opportunities ahead. We anticipate that our strong growth trajectory will persist across all business segments in 7:28 7 minutes, 28 seconds the foreseeable future. Moving forward, our primary priority is to enhance resilience throughout our operations, 7:36 7 minutes, 36 seconds thereby ensuring effective adaptation to the dynamic market conditions and emerging challenges. With this, I will 7:44 7 minutes, 44 seconds now hand over the call to Raaja Gi. He will walk you through the financial and key subsidiary numbers. Over to you, Ra. 7:55 7 minutes, 55 seconds Thank you very much, Mun. 7:57 7 minutes, 57 seconds Good evening everyone. I hope you all are in good health and doing well. On the company's consolidated financial for 8:07 8 minutes, 7 seconds third quarter and year to date 9 months of fiscal year 2026. 8:14 8 minutes, 14 seconds Uh first I would like to give comparison on yearon-year basis. This is Q3 FI26. 8:21 8 minutes, 21 seconds revenue is increased by 28 million from 1,691 million to 1,719 million a 2% increase. 8:34 8 minutes, 34 seconds IITA is uh lower by about 11%. 8:39 8 minutes, 39 seconds At uh 29% as compared to 33% in the corresponding quarter of last year. So 8:47 8 minutes, 47 seconds this is 494 million as compared to 553 million. Profit before tax has increased by 10%. 8:58 8 minutes, 58 seconds From 530 million to 583 million. This is about 34% of our revenue. Profit after 9:07 9 minutes, 7 seconds tax is increased by 43 million from 389 million to 432 million. This is about 9:15 9 minutes, 15 seconds 25% of our revenue as compared to 23% in the corresponding quarter of last year. 9:24 9 minutes, 24 seconds On Q1 Q basis, sequential basis, uh revenue is uh down by about 7% 9:31 9 minutes, 31 seconds from 1,845 million to 1,719 billion. IA is decreased by 107 million 9:42 9 minutes, 42 seconds from 601 million to 494 million about 29% of our revenue as compared to 33% in the last quarter. 9:53 9 minutes, 53 seconds Profit before tax is decreased by about 13 million from 595 million to 583 million. 10:02 10 minutes, 2 seconds profit after tax is decreased by about 15 million from 447 million to 432 million. This is about 25% of other revenue as mentioned up here. 10:15 10 minutes, 15 seconds For 9 months of uh FI26 versus uh 9 months of FY 25, our revenue is increased by about 15%. 10:28 10 minutes, 28 seconds from 4,697 million to 5,424 10:34 10 minutes, 34 seconds million. This is about 15% growth. IA is increased by 10:40 10 minutes, 40 seconds 170 million 11% increase from 1,488 million to 1,658 10:48 10 minutes, 48 seconds million. This is about 31% of our revenue as compared to 32% in the last year. Profit before tax is increased by 10:58 10 minutes, 58 seconds about 20% from 1,439 million to 1,727 11:05 11 minutes, 5 seconds million. Profit after tax is increased by about 212 million from 1,72 million 11:14 11 minutes, 14 seconds to 1,284 million. This is about 24% of our revenue as compared to 23% in last year 9 months. 11:26 11 minutes, 26 seconds Uh regarding our subsidiary numbers uh this biotech quarterly numbers is top top line of 11:34 11 minutes, 34 seconds wines 159 million with IIDA of 7 million and PAT of 11:41 11 minutes, 41 seconds -4 million as compared to 172 million of topline and 22 million of 11:49 11 minutes, 49 seconds IATA and 7 million of PAT in the corresponding last year Q3. 3 for 9 11:56 11 minutes, 56 seconds months JC Biotech topline is 5.56 as compared to 488 resisting 14% increase 12:04 12 minutes, 4 seconds is 77 million as compared to 66 million 17% increase and pet is 27 million as 12:10 12 minutes, 10 seconds compared to 19 million 39% increase uh revenue stood at 87 million and debit 12:19 12 minutes, 19 seconds of 22 million and PA of 15 million for Q3 of this year as compared to 64 12:27 12 minutes, 27 seconds million 12 million and 4 million respectively of IBIT of revenue IITA and PAT. So 9 months uh EVO's revenue stood 12:37 12 minutes, 37 seconds at 231 million as compared to 160 million resisting a 44% of increase and ITA is increased 12:46 12 minutes, 46 seconds from -8 million to 53 million in 9 months and PA is 36 million as compared to 30 million. 13:00 13 minutes uh our uh healthcare bifurcation 13:07 13 minutes, 7 seconds our India sales stood at 481 million as compared to 460 million in uh corresponding quarter of last year. 13:16 13 minutes, 16 seconds International sales stood at 482 million as compared to 559. 13:24 13 minutes, 24 seconds Our B2C sales stood at uh 91 million as compared to 103 million in the Q3 of the last year. 13:38 13 minutes, 38 seconds Scitec top line stood at 159 million and 13:44 13 minutes, 44 seconds debit of 28 million P of 7 million as compared to 154 million of uh stop line 13:54 13 minutes, 54 seconds and 30 million of IITA and 20 million of profit. So 9 months is 489 million as compared to 386 million. 14:04 14 minutes, 4 seconds IA is 65 million as compared to 66 million. FAT is 15 million as compared to 32 million for 9 months. 14:12 14 minutes, 12 seconds Our largest product which is anti-inflammatory enzyme this is about uh 21% of our revenue as compared to 20% last year. 14:24 14 minutes, 24 seconds For 9 months it is 22% as compared to 19% last year. So 10 customer is about 14:31 14 minutes, 31 seconds uh 26% for this quarter as compared to 26% in Q3 of last year and for 9 months 14:40 14 minutes, 40 seconds it is 23% as compared to 36% last year. 14:48 14 minutes, 48 seconds B2 C sales number stood at uh 104 million 14:56 14 minutes, 56 seconds as compared to 123 million in the last year quarter corresponding quarter 15:08 15 minutes, 8 seconds R&D expenditure on standalone basis for Q3 revenue is 77 million and capex is 3 million so total is about 80 million. 15:19 15 minutes, 19 seconds This is comparable to the earlier quarters. Total 246 million we have spent so far in 9 months. 15:30 15 minutes, 30 seconds R&D expenditure as a percentage of our revenue on consolidated basis it is about 4.7% as compared to 4.9%. 15:42 15 minutes, 42 seconds Here this is without considering the intercomp eliminations and on consolidated basis RFB spent 15:49 15 minutes, 49 seconds after considering the elimination it is about 3.2% 15:55 15 minutes, 55 seconds as compared to 3.3% in Q3 of FI25 for 9 months it is 3.2% 2% as compared 16:03 16 minutes, 3 seconds to 3.7% in 9 months of last year. 16:09 16 minutes, 9 seconds That was from my side. Now we shall open the floor for question and answer session. 16:16 16 minutes, 16 seconds Thank you sir. 16:19 16 minutes, 19 seconds Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on a telephone keypad and wait for 16:27 16 minutes, 27 seconds your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. 16:35 16 minutes, 35 seconds Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. 16:42 16 minutes, 42 seconds Let us wait for a moment until the question queue assembles. 17:03 17 minutes, 3 seconds The first question comes from Mr. Oman Sha from Banyan Tree Advisor. Please go ahead sir. 17:10 17 minutes, 10 seconds Hi sir. Am I audible? Yes sir. Yeah. Hi. Thank you for the opportunity. 17:18 17 minutes, 18 seconds Uh sir, first question was if you could break down the human nutrition revenue between India and international. 17:26 17 minutes, 26 seconds Yes. So I'm giving you for 9 months number. Okay. Okay. 17:34 17 minutes, 34 seconds India is 1710 and international business 17:41 17 minutes, 41 seconds I'm talking in millions 1,710 millions for 9 months 17:47 17 minutes, 47 seconds and for international market 1,686 million so total is 3396 millions for 9 months. 17:56 17 minutes, 56 seconds Got it. 17:57 17 minutes, 57 seconds Got it. Got it. Uh sir and the second question was if you could speak about uh the decline in human nutrition segment. 18:05 18 minutes, 5 seconds You alluded to the fact that it was between both uh uh pharma pharma and neutrauticals and even the numbers 18:14 18 minutes, 14 seconds represent that uh so can you just help us understand uh especially in neutrutical business in US what led to the decline? 18:28 18 minutes, 28 seconds Mr. Shaanga. 18:34 18 minutes, 34 seconds Yeah. Go sir. Um you know what is going on in 18:43 18 minutes, 43 seconds the overall the market is very uncertain in US 18:51 18 minutes, 51 seconds and when there is a complete uncertaintity in nutritional market. 18:55 18 minutes, 55 seconds Everybody is paying a heavy duty no matter where the product is coming from in the nutritional market, human 19:03 19 minutes, 3 seconds nutrition market. And uh long-term strategies, short-term strategies are difficult to develop 19:12 19 minutes, 12 seconds during these kind of a certain markets. Uh second part is 19:21 19 minutes, 21 seconds the cost which is coming out from the China uh on all the raw materials 19:28 19 minutes, 28 seconds uh for packaging, shipping etc is going up and industry is 19:35 19 minutes, 35 seconds trying to pass on that cost a little bit at a time and you can see that there is a slowing down 19:45 19 minutes, 45 seconds not because only on the nutritional side also but the market wise 19:52 19 minutes, 52 seconds uh it is affecting cost of consumers very very heavily in the food segment in farmer segment everywhere. Uh so the 20:01 20 minutes, 1 second overall uh there is a tremendous uncertainty in the marketplace and in that particular place people try to hold on to placing any new orders. 20:15 20 minutes, 15 seconds Does that make sense? 20:19 20 minutes, 19 seconds Yeah, got it sir. Very useful. Uh sir and second question was what is the competitive intensity in our largest product in India? Is it normalizing 20:28 20 minutes, 28 seconds compared to last year or or is it still quite uh high you can see the numbers and if you see 20:36 20 minutes, 36 seconds the numbers probably we are growing right so I don't see there is any problem competencies or any other area into that particular 20:45 20 minutes, 45 seconds Got it sir got it uh sir and last question was at the end of the last year you had mentioned that uh uh we want to 20:53 20 minutes, 53 seconds have a business in intermediates also uh it's been I the uh it's been uh then 9 months of this year have been done. Uh any headway in this business? 21:04 21 minutes, 4 seconds We are still working on that. Uh and probably when the right time will come, we'll come out of it. 21:09 21 minutes, 9 seconds Okay. And going well. Okay. 21:16 21 minutes, 16 seconds Hopefully the market conditions uh will help us uh establish the foothold. Okay. Great sir. Thank you so much sir. 21:25 21 minutes, 25 seconds I'll get back in with you. Thank you. Thank you. 21:30 21 minutes, 30 seconds Thank you sir. The next question comes from Mr. Sajul Kapoor from Antifile thinking. Please go ahead. 21:37 21 minutes, 37 seconds Yeah. Hi. Thank you. Um my questions are not about this quarter or 9 months but slightly medium to long-term. Um so the 21:45 21 minutes, 45 seconds first one is um how are you monitoring potential disruptive technologies or new entrance in the enzyme space and what 21:54 21 minutes, 54 seconds steps are you taking to ensure advanced enzyme is not you know kind of blindsided by them. 22:03 22 minutes, 3 seconds Very very interesting question and uh thank you for asking that. Listen, there is a uh 22:12 22 minutes, 12 seconds technologies which are coming in or the new uh entrance coming into the marketplace. 22:19 22 minutes, 19 seconds U there are certain segments in the human uh nutrition where people are more 22:25 22 minutes, 25 seconds concerned with and we are addressing that through our lot of research of new products, new uh new areas. 22:36 22 minutes, 36 seconds uh it takes little time to develop these new enzymes per se because it has to go through lot of regulatory approvals etc. 22:46 22 minutes, 46 seconds But we are already if you will see that we are very much very much on top of it 22:54 22 minutes, 54 seconds uh publishing our papers. Uh we are also uh trying to get technologically 23:03 23 minutes, 3 seconds back technical backgrounds and uh support systems because people nowadays don't like just an ingredient per se. 23:12 23 minutes, 12 seconds they want uh research data supporting it and which true also with the peer review 23:19 23 minutes, 19 seconds uh papers and that's how we are trying to attack that market to make sure that 23:27 23 minutes, 27 seconds we keep our uh lead in you know continuously into this market. 23:36 23 minutes, 36 seconds No, that's helpful. And thank you. And yeah, yes, that's helpful. That's helpful. Um, 23:45 23 minutes, 45 seconds and yes, I agree. It takes time to to commercialize the new discovery taking all, you know, it's a timeconuming. 23:52 23 minutes, 52 seconds Nothing works over overnight in this industry. So, I completely appreciate that. And my my second question is um how do you decide when to you know 24:01 24 minutes, 1 second invest in incremental improvements um to existing products versus pionering entirely new enzyme solutions that might 24:10 24 minutes, 10 seconds initially serve only a smaller or a less profitable markets but you know that may potentially lead into longerterm 24:18 24 minutes, 18 seconds opportunities. So basically the question is um how do you decide when to um sort of you know become more cost and 24:26 24 minutes, 26 seconds efficient because of competitive pressures or or and otherwise in your existing products versus what R&D dollar 24:34 24 minutes, 34 seconds or how to invest um that incremental money into something novel um discovering it and then commercializing it. What is the sort of mindset? 24:45 24 minutes, 45 seconds Mindset is basically you go to the marketplace where you have a better profit margins to begin with and then 24:52 24 minutes, 52 seconds expand into the markets where there are there is margin pressure but uh the volume gives us a cost competitive 25:00 25 minutes advantage into our manufacturers because of the do you have se 25:08 25 minutes, 8 seconds Yeah. Yeah. And do you keep separate teams for um you know novel innovation something which is um getting discovered 25:15 25 minutes, 15 seconds or and versus you know incremental improvements or are these the same teams? 25:23 25 minutes, 23 seconds No the the teams you had to you had to separate them and get most of the efficiencies cost efficiencies because 25:29 25 minutes, 29 seconds nowadays travel is very expensive as you know. Okay. Um besides AI is coming into 25:37 25 minutes, 37 seconds picture. So um lot of people are self-educated per se you know quote 25:44 25 minutes, 44 seconds unquote. So it is always uh very interesting market dynamics where people 25:51 25 minutes, 51 seconds uh throw the questions uh from AI wanted to know all the all the answers kind of thing and this is a technical field a 26:00 26 minutes little bit so you have to explain it um uh in the marketplace uh to to 26:08 26 minutes, 8 seconds to make them understand why it is different. It is not the same thing. 26:14 26 minutes, 14 seconds No, sure. My question was is it a single R&D center? Uh because we've got multiple R&D centers. So, how do we position them for new innovation versus improvement? 26:24 26 minutes, 24 seconds No, the the there is single single R&D centers. You R&D centers are single but they are subdivided into different departments. 26:32 26 minutes, 32 seconds Uh functional device. Uh okay. So there are different people taking care of different areas. 26:42 26 minutes, 42 seconds Understood. Understood. Okay, that's helpful. Thank you so much for all the responses. Thank you and all the very best. 26:48 26 minutes, 48 seconds You're welcome. Thank you. 26:51 26 minutes, 51 seconds Thank you so much, sir. The next question comes from Mr. Shri Gatani from LG Securities. Please go ahead. 26:59 26 minutes, 59 seconds Hi, good afternoon. Uh uh I I had just had one question. So from my understanding the uh sales in uh the EVO 27:08 27 minutes, 8 seconds subsidiary uh just go to Europe uh would that be the right understanding? 27:14 27 minutes, 14 seconds Uh can you Yes, it is it is the right understanding. Yes. 27:20 27 minutes, 20 seconds Okay. So, so uh so based on that, so if I look at you know X of uh the EOS uh 27:27 27 minutes, 27 seconds pretty much our sales have dropped uh you know I'm just looking at the last quarter like we were doing around four crores. If I just subtract the Europe 27:36 27 minutes, 36 seconds sales my you know uh from the EOC sales from the Europe sales. So besides the EVOC we've pretty much not done anything 27:44 27 minutes, 44 seconds in this quarter. So could you comment on you know what happened like why we've lost uh you know sales over there uh in Europe. 27:54 27 minutes, 54 seconds So I think quarterly comparison as we have already been mentioning is not possible you know in our case 28:02 28 minutes, 2 seconds people don't buy quarter to quarter month. 28:04 28 minutes, 4 seconds Yeah. It all depends on you know customers their own like you know procurement schedules. 28:09 28 minutes, 9 seconds Okay. Okay. because I see like you know pretty much we averaging like last four quarters we're doing like four crores and now it's less than 1 cr like 90 28:17 28 minutes, 17 seconds lakhs uh besides the sales so anyway we can't talk 28:26 28 minutes, 26 seconds no we will speak out I will give you exact number I don't know how you are subjected okay I will take that offline that 28:35 28 minutes, 35 seconds that's okay thank that's all from my end thank We will talk. 28:42 28 minutes, 42 seconds Thank you sir. 28:44 28 minutes, 44 seconds The next question comes from Mr. Rohan from Blue River Capital. Please go ahead. Am I audible? 28:52 28 minutes, 52 seconds Yes. Roj I'm sorry little bit louder. I would 29:00 29 minutes request you to speak a little louder because your voice is so fable. Yeah. Am I audible now? Is it better? Better sir. 29:09 29 minutes, 9 seconds Yeah, I was talking about the US sales. 29:12 29 minutes, 12 seconds There's been some weakness in the US sales of reset. I think in one of the earlier calls you had alluded to the fact that uh this is relating to the tariffs. Now given the current you know 29:21 29 minutes, 21 seconds favorable kind of trade deal that we have uh it was announced a couple of days back uh what is the outlook for the sales in the US uh given it is the 29:28 29 minutes, 28 seconds largest market uh both in terms of uh I mean recovering sales and then from here on going henceforth forward if you can 29:36 29 minutes, 36 seconds help us with uh how you plan to go ahead there with regards to new products new customers new segments anything on that 29:42 29 minutes, 42 seconds please well tariff is the tariff 18% 25% or 29:50 29 minutes, 50 seconds 50%. Do you think anybody's willing to pay you 50% higher prices in the retail marketplace? It's impossible. You know, 29:59 29 minutes, 59 seconds you will lose lot of entire sale of your entire sale. So uh it's a various strategies which we have to 30:08 30 minutes, 8 seconds that we don't lose customers uh at the same time uh impact on the on 30:18 30 minutes, 18 seconds the margins are not heavily affected. Uh 30:24 30 minutes, 24 seconds so most of the things if you if you will if you will see that US companies will pass on 30:33 30 minutes, 33 seconds some of the cost increases to the customers during this 2026. 30:39 30 minutes, 39 seconds There is a competition also which you have to keep in mind whether competitors are ready to increase the prices or not. 30:46 30 minutes, 46 seconds Uh and you have to be competitive in the marketplace uh where others what others 30:53 30 minutes, 53 seconds are doing. So there are several factors comes into picture. Um this is uh this 31:00 31 minutes is something only thing it makes sense right now is yesterday's news will help 31:06 31 minutes, 6 seconds us little bit better in in in sense of how to uh normalize and be 31:17 31 minutes, 17 seconds reasonable. Um so we need to our customers 31:26 31 minutes, 26 seconds weak for us actually if you look at our numbers for FI25 those are also weak and now after that FI26 as you said tariff 31:34 31 minutes, 34 seconds is understandable but I mean going forward after the fact that you know the tariff has come down to 18% now what how 31:42 31 minutes, 42 seconds do you see us as a market going ahead for us yeah that it it will not have much of 31:49 31 minutes, 49 seconds difference for the market sale. Uh we will see how the how the market is overall market is taking the tariff 31:57 31 minutes, 57 seconds whether it is 15 20% 18% you know they will they will reflect in the marketplace and overall economy 32:06 32 minutes, 6 seconds of the US. So if the US economy remains strong with the employment market will 32:12 32 minutes, 12 seconds be good u and uh we see reasonably it should grow. 32:21 32 minutes, 21 seconds Okay. Okay. And and do do you think any efforts are needed with respect to setting up a local base or getting uh personal and sales and marketing 32:28 32 minutes, 28 seconds personnel there you know to uh further push for uh better growth there. 32:35 32 minutes, 35 seconds We always are looking for a better growth, right? 32:42 32 minutes, 42 seconds Hence the little bit of push back on that sir. 32:46 32 minutes, 46 seconds Sorry, it it has not been really reflecting in the numbers and hence uh as investor I think uh there was a slight bit of push 32:54 32 minutes, 54 seconds back on this uh matter. Uh but I think going ahead things will be better as you said. directly said 33:01 33 minutes, 1 second no no it will it it is we see a much better outlook I mean we what we are looking at is a lot more inquiries lot 33:10 33 minutes, 10 seconds more interest uh that will reflect in next years 33:18 33 minutes, 18 seconds okay because I mean given us has such a large impact on our margins if sales from there were to go down as they have 33:25 33 minutes, 25 seconds been in the past it would again affect our margins going high so I I think uh given all of this uh it it holds a 33:32 33 minutes, 32 seconds pretty much uh high importance uh especially this large market for us. Absolutely. Absolutely. 33:40 33 minutes, 40 seconds We are very mindful of that. All right. Thank you sir. 33:49 33 minutes, 49 seconds Thank you so much sir. Ladies and gentlemen, if you have any questions please press star and one on a telephone keypad. 33:55 33 minutes, 55 seconds I repeat if you have any questions please press star and one on a telephone keypad. The next question comes from Mr. Abishek Nalun from central broking. 34:03 34 minutes, 3 seconds Please go ahead. Yeah. Hi uh thanks for the opportunity. 34:07 34 minutes, 7 seconds Couple of questions from my side. Uh first on the upcoming um R&D uh center that was supposed to come in Nashik I 34:14 34 minutes, 14 seconds think somewhere during this particular year. uh uh is it possible to share I mean what area you will be targeting uh 34:22 34 minutes, 22 seconds to begin with because it was mentioned that it will be a far bigger uh setup as compared to what we have right now. So any particular area and where you'll see 34:31 34 minutes, 31 seconds the benefits coming in maybe not uh immediately but over next couple of years uh from that perspective 34:40 34 minutes, 40 seconds to begin with we'll be targeting mostly on the uh on the strain development protein and uh on the uh uh on the 34:50 34 minutes, 50 seconds fermentation side that will be the first phase. 34:57 34 minutes, 57 seconds Sure. But uh I mean uh the reason why I'm asking this question is we have uh Seratio Pepidase as our largest product but uh you know you get this question a 35:06 35 minutes, 6 seconds lot that which product can become like a next ceropidase for us. So something similar can happen out of this R&D effort that you are uh you know intending to do. 35:16 35 minutes, 16 seconds Yes, Abishek G we are working to do on uh there are like many other products which we are working out there and probably like uh the the space will fasten up once this this becomes live. 35:30 35 minutes, 30 seconds Okay. Uh and this will be largely targeted again to for the exports only right abroad. Uh uh and sorry the timing of this uh um uh commissioning of this 35:39 35 minutes, 39 seconds facility is when sorry I missed out uh that on that part somewhere around the uh end of the second quarter of this uh coming year. 35:49 35 minutes, 49 seconds End of second quarter. Perfect. Uh and uh next question on capeex I mean um we have maintained the uh capacity 35:57 35 minutes, 57 seconds utilization at around 55 60%. I'm sure that uh considering since we have not done a large capeex u over last few 36:05 36 minutes, 5 seconds years I mean uh the capeex uh the capacity utilization must have inched up. Um any plans of uh capeex be green 36:12 36 minutes, 12 seconds field or brownfield expansion in next one or two years. 36:17 36 minutes, 17 seconds Uh as we all always mentioned whenever we feel like it will be necessary we'll do it. Uh, of course like the cost will 36:24 36 minutes, 24 seconds be very low maybe I guess like uh in the financial year 28 29 probably sorry 26 36:31 36 minutes, 31 seconds 27 27 2 Yeah 28 29 mostly uh and the cost will be about 50 cr uh at that point. 36:40 36 minutes, 40 seconds Okay. So not nothing on this particular year right? 36:44 36 minutes, 44 seconds Not this year except for the R&D capex whatever we will need for the R&D center. 36:51 36 minutes, 51 seconds Okay. uh and the S ratio capacity because uh this quarter was maybe uh kind of muted but in 9 months the growth 36:58 36 minutes, 58 seconds has been very uh strong uh so how are we placed in terms of capacity utilization for say ratio 50 days so the GC biotech 37:06 37 minutes, 6 seconds plus our capacity is sufficient for let's say a couple of more years or I think like our capacities are good 37:14 37 minutes, 14 seconds enough as of now we are well placed sure Sure, sure. 37:22 37 minutes, 22 seconds Done sir. That's it from my side. Thank you and all the best. Thank you. Thank you. 37:28 37 minutes, 28 seconds Thank you sir. The next question comes from Mr. Ketan Chadan in regional minister. Please go ahead. 37:35 37 minutes, 35 seconds Hi. Uh thank you for the opportunity. uh my very respect for the uh EU region um you know u in the last few years if I 37:43 37 minutes, 43 seconds take from 2021 uh onwards you know we've had approvals wherein initially we had some four product approvals and now we 37:50 37 minutes, 50 seconds are standing at nine product approvals uh for the EU region but in these years from 21 to 25 uh our revenue has not 37:58 37 minutes, 58 seconds increased significantly it's about 32 33 crores in in that zone so could you tell us like you know what are selling 38:07 38 minutes, 7 seconds essentially in European Union and why in spite of having so many uh know product approvals our regulars are not growing in that region. 38:17 38 minutes, 17 seconds So our major target is a food segment in the European region and that is what we are doing it. Uh if you ask me like if 38:24 38 minutes, 24 seconds you don't have these regulations probably our sales would have been zero uh because you can't sell without this uh product being registered. So assuming 38:33 38 minutes, 33 seconds that since it get registered you will have a significant revenue is not true. 38:39 38 minutes, 39 seconds Uh we are doing our best. We are trying to expand the market wherever it is possible and I guess like we are still 38:48 38 minutes, 48 seconds growing. This year also we grew into the European area. It's not like what we grew or something of that. 38:57 38 minutes, 57 seconds No sorry I mean I was referring to uh from you know um financial 2021 till 2025 uh not just this uh 9 months or 39:05 39 minutes, 5 seconds last one year or so uh I was talking about the uh the last uh four odd years four five years because if you see the 39:14 39 minutes, 14 seconds 32 we had it so I think in Europe 39:23 39 minutes, 23 seconds we have slightly the business model of our Europe, European company. So they were having some uh contract research, 39:32 39 minutes, 32 seconds external contract research, then internal for us and then you know some product sale. So because of that realignment also I think now the product 39:40 39 minutes, 40 seconds sale was slightly down in couple of years and now like you know we are looking into that aspect and seeing that 39:49 39 minutes, 49 seconds some kind of you know revenue we are going to get from that product sale business as well which has been developed in India and then you know Europe company will take care of that. 40:01 40 minutes, 1 second So that process is on. Yes. And slightly the numbers as you rightly said is kind of you know is out of a range bound so far. 40:12 40 minutes, 12 seconds Okay. Okay. Appreciate that response. Uh the other question that I have is uh I believe you know the one uh novel ingredient application that we have in 40:20 40 minutes, 20 seconds uh Europe is again related to uh terra uh terio 50 days. Now once we have that 40:27 40 minutes, 27 seconds approval and you know assuming that probably it takes maybe a couple of years for us to kind of ramp up uh the 40:35 40 minutes, 35 seconds sale of this novel ingredient in the European region. Um is it likely that uh Sarah uh this product will continue to 40:43 40 minutes, 43 seconds be the top uh revenue generator for us? 40:48 40 minutes, 48 seconds Well, listen if you know very well uh you're aware most of the issues 40:56 40 minutes, 56 seconds healthcare issues are inflammatory influ inflammatory related right and uh 41:05 41 minutes, 5 seconds we we we have to uh make sure that it is awareness is there people find that it 41:13 41 minutes, 13 seconds products are working very well for them and it's a marketing efforts, product establishment, 41:22 41 minutes, 22 seconds brand establishment, etc. But we are sure that it will grow. 41:32 41 minutes, 32 seconds Okay. Okay. Thank you so much. Um yeah, that that's all. Thank you so much. Wish you all the best. 41:40 41 minutes, 40 seconds Thank you. 41:41 41 minutes, 41 seconds Thank you so much, sir. The next question comes from Mr. Rani Prohibit from Securities Investment Management Private Limited. Please go ahead. 41:49 41 minutes, 49 seconds Yeah. Hi, thanks for taking my question. 41:51 41 minutes, 51 seconds Um, so a couple of things. One is I think you know we've over the last few years um there has been a lot of discussion on um uh US uh business and 42:00 42 minutes their business. Um but outside of these two the other geographies have actually done relatively uh better and we see sustained growth from these geographies. 42:10 42 minutes, 10 seconds So can you just spend some time and uh help us understand what are the areas uh which are helping us with this growth or 42:18 42 minutes, 18 seconds uh and also whether these are um you know sustainable uh numbers and whether we can build upon this over a period of 42:25 42 minutes, 25 seconds time u you know so if you would just share some insights on this that was question number one and uh second question was we had created a 100% own 42:34 42 minutes, 34 seconds subsidiary to transfer our B2C business and we had uh some thoughts on you know how to kind of um get into or expand our B2C business uh significantly in India. 42:46 42 minutes, 46 seconds So if you could just share some update on that. 42:51 42 minutes, 51 seconds So uh when we talk about it like uh we did like lot of registration in Asia and other countries and uh if you look into 43:01 43 minutes, 1 second the rest of the world and Asia those are the two markets which are giving us some results. the work which we did in the last two three four years uh they are 43:09 43 minutes, 9 seconds yielding some results right now and we can see that there are certain growth in the Asia as well as in the rest of the 43:15 43 minutes, 15 seconds world areas. Uh uh coming to the your next question on the 43:22 43 minutes, 22 seconds on neutra uh we did like separated this entirety and now the team is there which is a focus team which is working onto 43:29 43 minutes, 29 seconds this area particularly uh as of now like the way we see it like this year it will 43:36 43 minutes, 36 seconds be a small sale some around 1 1.5 cr at the end of the year uh but we are constantly focusing on that the team is 43:45 43 minutes, 45 seconds young and dynamic and we will see the results in coming two three years. 43:49 43 minutes, 49 seconds So do we have a significant product pipeline which uh which we can kind of you know which you could probably share 43:57 43 minutes, 57 seconds uh with investors as to what kind of products are we looking at? Um and historically the welf website if you want to we do 44:06 44 minutes, 6 seconds have a 10 uh somewhere around basket of 10 12 products out there uh and you can look at those products at the welfare 44:15 44 minutes, 15 seconds brand you can go and take a look at it and not only take a look at the brand I suggest you buy some and try it yourself. 44:26 44 minutes, 26 seconds Yes. Yes. will will will do most certainly sir and I think you know I think you had mentioned in the past that we don't we historically have been a B2B 44:34 44 minutes, 34 seconds company and not necessarily B2C company so any you know ideas because B2C is a very very different animal altogether 44:42 44 minutes, 42 seconds right in terms of marketing ad spend getting so so is there any like plan to kind of do some JV with some other 44:50 44 minutes, 50 seconds company or do it ourselves or because if the products are there and if they're good and we are doing it for other people for you know white labeling point 44:58 44 minutes, 58 seconds of view uh there there could be an opportunity for us to kind of scale that business you are thank you for you know 45:07 45 minutes, 7 seconds suggesting and uh confirming what we think in the same manner so with both of 45:14 45 minutes, 14 seconds them are thinking alike on that matter we will do all of that uh whatever you said is uh grow our brands uh align with 45:24 45 minutes, 24 seconds few others uh B to C company people uh and integrate and expand that is a 45:32 45 minutes, 32 seconds totally different business than B2B. So we have to think in the different way and uh we will we will take all the 45:42 45 minutes, 42 seconds expertise necessary in that particular market. That's why we are separating the company and the neutral. 45:50 45 minutes, 50 seconds Okay. And so you know in the past we have kind of briefly touched upon industrial enzymes but if you could kind of spare some time and help us 45:57 45 minutes, 57 seconds understand in the sense what areas in industrial enzymes do we actually do and or we intend to kind of you know add to our portfolio because that seems to be a 46:06 46 minutes, 6 seconds very interesting space where you know given all the uh you know investments that are happening in India uh either 46:14 46 minutes, 14 seconds from green ammonia point of view or rare earth minerals point of view or whole variety of you know other things that are getting manufactured and each time 46:22 46 minutes, 22 seconds we kind of read some sort of uh literature what we come across is there are a lot of industrial enzymes which get used. Um is there anything that we 46:30 46 minutes, 30 seconds do in any of these spaces or intend to get into any of these spaces? Just a broad brush idea if you could give. 46:37 46 minutes, 37 seconds Yeah, we are intended to get into those spaces uh and the growing marketplace. 46:43 46 minutes, 43 seconds uh our new R&D center uh will really help us into that because ultimately in 46:49 46 minutes, 49 seconds all industrial segment uh there is a performance which really counts right 46:56 46 minutes, 56 seconds there and then and there. So uh you know they don't wait this it's a 47:03 47 minutes, 3 seconds two areas which we have to show immediately of a performance and cost effectiveness and it requires a lot of 47:11 47 minutes, 11 seconds work u uh and uh proving proving that our our enzymes are better than what 47:20 47 minutes, 20 seconds they are using or not using at this point in time. 47:25 47 minutes, 25 seconds Do we have products or No, we have products. The the thing is 47:31 47 minutes, 31 seconds you need lot of R&D also for to support this. 47:37 47 minutes, 37 seconds Okay. And that is what our new center will give us uh space and area to develop new new applications. 47:48 47 minutes, 48 seconds All right. All right. I'll get back in the queue. Thank you. 47:52 47 minutes, 52 seconds Thank you, Mr. Awesome. The next is a follow-up question from Somanga from Bang Advisor PMS. Please go ahead sir. 48:01 48 minutes, 1 second Uh hi sir. Uh thank you for taking my questions again. Uh sir uh uh since Wasim G is also on the call just wanted 48:08 48 minutes, 8 seconds to hear uh from him in terms of over next 2 three years uh in which areas of enzymes does he see the most opportunity 48:17 48 minutes, 17 seconds and will advanced enzymes be able to take part in it? 48:23 48 minutes, 23 seconds Um um uh thank you for calling. U 48:31 48 minutes, 31 seconds see we have to stick with lot of these areas which we are already servicing but we will also expand it to few other 48:38 48 minutes, 38 seconds market areas in the same market. See there are two ge geographical marketplace and different application marketplace. 48:46 48 minutes, 46 seconds Okay. And still our health care will be always a top u top area for us. Uh but 48:53 48 minutes, 53 seconds we are also going into bio u biochemical processing uh and various other areas where the 49:03 49 minutes, 3 seconds margins are not necessarily uh very high but at the same time 49:11 49 minutes, 11 seconds opportunities are enormous. So we are looking at both different areas where we can expand and utilize our capacities 49:20 49 minutes, 20 seconds very efficiently at the same time grow our marketplace and 49:28 49 minutes, 28 seconds that's where the whole concentration of the management is at this time. Great sir. Great sir. Thank you so much. 49:37 49 minutes, 37 seconds And sir, now with the new uh now in the budget, the buybacks have become uh better in terms of the tax uh tax 49:45 49 minutes, 45 seconds implications. Uh so would uh really uh suggest if the like now where the stock price are if we can consider a buyback 49:53 49 minutes, 53 seconds of equity shares that also helps in increasing the promoter holding that also helps long-term shareholders uh increase the stake without any friction. 50:02 50 minutes, 2 seconds Uh so just if that's something you could consider uh and uh last thing was uh if I heard it right there was a loss in JC Bot is that the right understanding? 50:14 50 minutes, 14 seconds That is right this quarter. Yes. 50:16 50 minutes, 16 seconds This quarter. Yes. But you don't look at it quarter and quarter. 50:19 50 minutes, 19 seconds Okay. Okay. Was it an operational loss or a one-time loss? Because uh the it was a bit margin positive but 50:26 50 minutes, 26 seconds some major uh uh what you can call it like a repair and not repair stores and uh 50:35 50 minutes, 35 seconds stores and spare consumption for this quarter uh which comes annually sometimes. 50:41 50 minutes, 41 seconds Okay. Is it one time or does it happen once every year? 50:45 50 minutes, 45 seconds Once in a year. once in a year or twice in a uh in in a two years once or some that kind of thing and uh this quarter 50:52 50 minutes, 52 seconds like again there was some lower sale uh but again it's don't look at it quarter and quarter 51:00 51 minutes okay great thank you so much sir thank you sir the next question comes from Mr. Subam Sahel from SML please go ahead sir. 51:11 51 minutes, 11 seconds Hello I'm audible. Yes yes yes sir. 51:15 51 minutes, 15 seconds Yeah I just have one question. So in the earlier response you mentioned that uh going forward you seeing a much better outlook and a lot more inquiries and 51:23 51 minutes, 23 seconds interest. Could you just specify uh in like which uh like which segment are we seeing all of these inquiries coming in? 51:32 51 minutes, 32 seconds No we are only in the two places no enzymes and probiotics. 51:36 51 minutes, 36 seconds So most of it is for example our marketplace is a very different and 51:43 51 minutes, 43 seconds dynamic marketplace you know in US uh you are talking about US market right 51:52 51 minutes, 52 seconds so in general uh you specify that we're seeing a better outlook going forward so are inquiries more of yeah 52:00 52 minutes yeah more of yeah more inquiries into US marketplaces Okay. So, you meant it to be the US market, right? 52:11 52 minutes, 11 seconds Correct. You are correct. Okay. 52:17 52 minutes, 17 seconds He was more to the US market but uh uh but there are always inquiries in Indian market as well or this area, right? 52:26 52 minutes, 26 seconds Yeah. Yeah. Overall, it is a big big. 52:31 52 minutes, 31 seconds Okay. Got it. Uh thank you. And um this next question was on the specialized manufacturing uh segment. So uh we saw 52:39 52 minutes, 39 seconds good uh growth in the last four to five uh quarters and this quarter was relatively flat. So uh like just going 52:47 52 minutes, 47 seconds forward how do we see uh this segment uh turning out? Again don't look at a quarteron quarter. 52:54 52 minutes, 54 seconds There are always sometimes like the payment issues or other issues and sometimes like the sale reversals are there. So don't look at it quarter and 53:03 53 minutes, 3 seconds quarter uh look at it just 9 months and it's good and I think it's continued to grow. 53:09 53 minutes, 9 seconds Yes. So but going forward are we adding new products in this segment? Uh I mean as we had acquired this earlier so like 53:17 53 minutes, 17 seconds how is it going on? Can we just get some color on it like are we adding new products are we getting traction? 53:25 53 minutes, 25 seconds So this is basically in you know affervescent based technology company. So they do work for various clients. 53:33 53 minutes, 33 seconds So they are doing for say neutrautical segment and of course you know for animal uh I mean you know division also we are 53:41 53 minutes, 41 seconds doing a lot of work for you know overseas company as well as now we are expanding our footprint in India. So the 53:48 53 minutes, 48 seconds basically it is like a tablets or sh this is information based. 53:54 53 minutes, 54 seconds We we are now looking into like you know now how do we market this product into whether we can go for uh you know even 54:02 54 minutes, 2 seconds in textile segment can we have some product like that which can be used you know even disinfectants can be used and 54:09 54 minutes, 9 seconds cosmetic also there is a scope so we are working on various things but yes I mean you know it is a process which is taking 54:17 54 minutes, 17 seconds you know its own time and we are working with a couple of good uh good clients or uh companies on different uh areas in this particular company. 54:29 54 minutes, 29 seconds Okay. Just one clarification. So currently as you mentioned so this uh business is not yet present in we don't have a lot of clients in India as of 54:38 54 minutes, 38 seconds right. So is it morely more of concentrated in US or like uh it's spread out geographically? 54:45 54 minutes, 45 seconds No it's a combination of both and there are a lot of different projects which are going on with different companies in India as well as in abroad. Okay. 54:54 54 minutes, 54 seconds Okay, got it. Thank you. 54:58 54 minutes, 58 seconds Thank you so much, sir. The next question comes from Mr. Rohit from Progressive uh Shares. Please go ahead. 55:05 55 minutes, 5 seconds Uh I think two questions and two parts to them. Uh the first one being on the US subsidiary. Uh so by when do you anticipate that uh the volume will start 55:14 55 minutes, 14 seconds picking up from there. uh because as you mentioned the inquiries have already started flowing and uh we also see that world nutrition INC versus uh advanced supplementary that case is also solved. 55:25 55 minutes, 25 seconds Uh so so by when do you expect that higher sales uh or uh because because if if I read well the margins tend to increase if sales are higher from us. 55:42 55 minutes, 42 seconds It's a good question. Um I think it should it should reflect things trending into this year. Okay. 55:52 55 minutes, 52 seconds And and sir on the s on the R&D side uh on the R&D side uh there were some uh uh products which 55:59 55 minutes, 59 seconds were uh just about to be launched in March. So are we on track for that or uh will we see some delay or maybe spill over into June or September? 56:11 56 minutes, 11 seconds Do we have a specific on the product which you're talking about? Uh no sir, it was not it was mentioned in the previous phone call. Uh but then 56:19 56 minutes, 19 seconds there were no specific as such but it was said that it will be launched in March probably. 56:25 56 minutes, 25 seconds It's a constant process Ro uh so I don't know which product we are referring to at this point of time. 56:31 56 minutes, 31 seconds We have several products in the in the pipelines. 56:34 56 minutes, 34 seconds So it's again depends on the market. Once you go into the market you come back you again do the some kind of thing if it 56:42 56 minutes, 42 seconds requires if it is good it is good so it's constant process. 56:46 56 minutes, 46 seconds Mhm. Okay. Uh in a very very u in short listen there 56:53 56 minutes, 53 seconds is not like simple thing to concentrate on one product. We have multiple projects and pipeline which we are 57:00 57 minutes working on and um let me tell you that not every quarter we are going to review 57:08 57 minutes, 8 seconds and say what happens on that that particular one but several products are there and there are some products get 57:15 57 minutes, 15 seconds heat very quickly. Some products take little longer time. Some will have delays because you have to go into pilot 57:22 57 minutes, 22 seconds scale. Then uh people are just not going to jump on it. they go slow process sometimes somebody is very fast depends 57:30 57 minutes, 30 seconds on the market pool. Uh so believe me that all of these are under continuous 57:37 57 minutes, 37 seconds uh review and push is very big and trying to uh get some products which are 57:45 57 minutes, 45 seconds heat get bigger hit so that our revenue generations can be there ASAP. 57:52 57 minutes, 52 seconds Mhm. Okay. Uh sir the union uh budget uh uh it uh it was speaking quite a lot about uh Philip Kuri uh toll 58:00 58 minutes manufacturing uh while the FM was also trying to attract some global businesses and some investments thereof uh while she also mentioned about some impetus 58:08 58 minutes, 8 seconds for bioparma shaky or maybe biologic mediums. Uh do you think that these developments can get some volumes as well as value for us? The chances is 58:18 58 minutes, 18 seconds very high provided if we get some kind of a relief from this government regulations and bureaucratic messes. You 58:26 58 minutes, 26 seconds know government talks very very big and they are respective but you as we all know there is so many rules and 58:35 58 minutes, 35 seconds regulations uh but lot of lot of companies are greatly interested and we are we are 58:43 58 minutes, 43 seconds very much interested in working with them. Mhm. 58:58 58 minutes, 58 seconds And there are like lot of things which were coming with like new institutes and other things what what I understand but we need to go through the fine lines and understand it more deeply. 59:08 59 minutes, 8 seconds Mhm. cuz cuz uh cuz Kabra in one of the phone calls recently we mentioned that we were working on some uh contract manufacturing and some developments 59:16 59 minutes, 16 seconds thereof and even if you look slightly into the fine uh print uh they are giving some tax benefits uh which rati 59:24 59 minutes, 24 seconds just mentioned about uh so it's any developments is the only thing that I'm asking 59:32 59 minutes, 32 seconds we still need to evaluate the impact of it on the budget and other things right so We we we are working on some of the 59:40 59 minutes, 40 seconds areas but uh let's see and we still need to understand the budget honestly. 59:47 59 minutes, 47 seconds Okay Gabra that makes that makes a lot of sense. Thank you. Thank you for answering my question. Thanks a lot. Thank you. 59:53 59 minutes, 53 seconds Thank you so much. Next we have a follow-up question from Mr. Rohan from Blue River Capital. Please go ahead 1:00:03 1 hour, 3 seconds for um Mr. Rati. Uh thank you for being on the call today sir. uh from a three to five year perspective so you say 1:00:10 1 hour, 10 seconds medium to long-term perspective where do you see our company uh progressing towards you know and what do you think is really needed to get get there I mean 1:00:19 1 hour, 19 seconds R&D obviously is a huge and strong pillar for us but apart from R&D I think uh from what else do you think is 1:00:26 1 hour, 26 seconds required for us to take that take us uh to that position there in 3 to 5 years well u as we said before also same thing 1:00:35 1 hour, 35 seconds I don't think we are changing our tune anywhere we'll grow 13 to 15% double digit more than double digit growth 1:00:43 1 hour, 43 seconds overall uh on a continuous basis on 3 to 5 years there are lot of hurdles will come in the places uh and there will be 1:00:52 1 hour, 52 seconds some some sailings but overall we're very comfortable with our thinking 1:00:59 1 hour, 59 seconds and uh and accordingly sometimes we can hit a very big way the growth may increase rapidly 1:01:07 1 hour, 1 minute, 7 seconds uh but overall we are 13 to 15% is very comfortable for us 1:01:15 1 hour, 1 minute, 15 seconds because of my historical perspective last couple of years have been slightly weak this year 9 months obviously to give credit where you due we've done well but as I said the last few years 1:01:24 1 hour, 1 minute, 24 seconds last two three four years odd have been weak so given that context asking uh do we require any changes any particular functions per say be it sales uh 1:01:33 1 hour, 1 minute, 33 seconds marketing uh manufacturing operations Anywhere else? Does anything have to change? And if yes, what would that be? 1:01:43 1 hour, 1 minute, 43 seconds Now we are we are we are addressing to those that is what you are looking at uh 1:01:51 1 hour, 1 minute, 51 seconds overall 9 year 9 months performance also and we we'll see that uh we'll continue 1:01:57 1 hour, 1 minute, 57 seconds to meet your expectations. Uh the only thing what uh I would like to add out here the ride will be roller coaster. It 1:02:06 1 hour, 2 minutes, 6 seconds will not be the straightforward graph of like this. Some years we will grow faster and some years we might grow little slower. 1:02:15 1 hour, 2 minutes, 15 seconds That is understandable sir. And and a small uh bookkeeping question. 1:02:22 1 hour, 2 minutes, 22 seconds So on margins uh what was earlier communicated was that the tariffs would have a 200 bit odd uh impact on margins. 1:02:29 1 hour, 2 minutes, 29 seconds Now with tariffs kind of moderating uh after margin trend going out from here 1:02:36 1 hour, 2 minutes, 36 seconds almost 9 month is gone so I think another 3 months we have to see the impact but it is most likely instead of 2% on iida I think it will be around 1% 1:02:45 1 hour, 2 minutes, 45 seconds or so yeah but it's a it's a worst case scenario we are also trying to pass on as like we sir has mentioned some of the 1:02:52 1 hour, 2 minutes, 52 seconds uh some of the cost to the customers in US so we will see what will be the last impact but this is the worst case scenario. 1:03:02 1 hour, 3 minutes, 2 seconds Understood. Thanks a lot and wishing you all the very best. Thank you. 1:03:07 1 hour, 3 minutes, 7 seconds Thank you so much sir. Yeah. The next question comes from S Chandrai Jagan Nadan an individual investor. Please go ahead sir. 1:03:15 1 hour, 3 minutes, 15 seconds Hello sir. The previous part is uh talking to you about the buyback which you did not answer. 1:03:22 1 hour, 3 minutes, 22 seconds You also feel that the current market cap of your company kind is at a lower level. Maybe you can think of there is any view on that. 1:03:32 1 hour, 3 minutes, 32 seconds Sorry, sorry your question is not clear. Can you please repeat? 1:03:35 1 hour, 3 minutes, 35 seconds No, I'm talking about the buyback even there is a previous participant also asked you about that you did not answer. 1:03:42 1 hour, 3 minutes, 42 seconds uh since the valuation is so attractive maybe do you have any plans and the taxation of the buyback also in the recent budget become little attractive? 1:03:53 1 hour, 3 minutes, 53 seconds Now we appreciate uh your question and your you know uh guidance but you know there are many things which you know very well this is the you know 1:04:01 1 hour, 4 minutes, 1 second prerogative of the board right so it cannot be answered as such. 1:04:10 1 hour, 4 minutes, 10 seconds So thank you sir. Thank you sir sir. 1:04:16 1 hour, 4 minutes, 16 seconds We have one final question uh which is a follow-up question from Mr. Ketan Chandan Indigister. Please go ahead sir. 1:04:23 1 hour, 4 minutes, 23 seconds Thank you for the opportunity again sir. 1:04:25 1 hour, 4 minutes, 25 seconds My question is with regards to uh slide number 25 of your presentation. Um there is one uh segment within human nutrition 1:04:34 1 hour, 4 minutes, 34 seconds uh bioathysis and if I see the revenues in FI24 and FI25 um you know we've kind of gone down from 1:04:42 1 hour, 4 minutes, 42 seconds $3.3 million to $2.1 million. Now my my question is with respect to the biocatalysis uh could you explain like you know what 1:04:50 1 hour, 4 minutes, 50 seconds are we doing right now and maybe in the next uh 3 to four years or 5 years uh where do we go ourselves going ahead in 1:04:58 1 hour, 4 minutes, 58 seconds that uh in this segment of biocatalysis biocatalysis 1:05:12 1 hour, 5 minutes, 12 seconds what are we doing in bioatistics That is the question down. 1:05:25 1 hour, 5 minutes, 25 seconds uh we are working on the biogist areas like that's what I can say a lot of lot of things are there on the pipeline there might be something here and there 1:05:34 1 hour, 5 minutes, 34 seconds you know we still need to understand that but the growth prospects are very good into this area keeping 1:05:41 1 hour, 5 minutes, 41 seconds okay because even in uh some of the previous uh calls you mentioned uh that you know uh there are some products under trial with um uh with some 1:05:50 1 hour, 5 minutes, 50 seconds customers So is there any update uh know uh of those trials of those products or if there is some kind of a uh outlook in 1:05:58 1 hour, 5 minutes, 58 seconds terms of timeline that you know how long uh you know uh there will be some outcome of those trials be it one year 1:06:05 1 hour, 6 minutes, 5 seconds two year something like that maybe I would like to say that like probably we will wait till the first quarter of the next financial year. 1:06:18 1 hour, 6 minutes, 18 seconds Okay. Okay. Thank you so much. Wish you all the best. Thank you. 1:06:22 1 hour, 6 minutes, 22 seconds I think Syrias Gatani has asked one question. Syas probably you were uh you know reducing the evokes number directly 1:06:31 1 hour, 6 minutes, 31 seconds from the European uh top line you know European numbers whatever we have shared with you. So I mean it is you know the number which we have shared is net of 1:06:39 1 hour, 6 minutes, 39 seconds our intercomp transaction. So you have to look from that angle. So our Europe I think revenue number was about 96 1:06:48 1 hour, 6 minutes, 48 seconds million during this quarter as compared to 105 in Q3 of last year and 116 for Q2 of this year. 1:07:03 1 hour, 7 minutes, 3 seconds Thank you sir. 1:07:05 1 hour, 7 minutes, 5 seconds There are no further questions. Now I hand over the floor to Mr. Onakarov for closing comments. 1:07:12 1 hour, 7 minutes, 12 seconds Thank you everyone for taking your valuable time for attending our uh earnings conference call. We will keep you all posted for any further update. I 1:07:20 1 hour, 7 minutes, 20 seconds request you all to kindly send in your questions that may remain unanswered. An audio recording and the transcript of 1:07:28 1 hour, 7 minutes, 28 seconds this call will be uploaded on our website and on stock exchanges in due course. Looking forward to host you all in the next quarter. Till then stay healthy, stay safe. 1:07:38 1 hour, 7 minutes, 38 seconds Thank you everyone. Bye-bye. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Dusabas 1:07:46 1 hour, 7 minutes, 46 seconds conference call services. You may disconnect your lines now. Thank you and have a pleasant evening.