Advanced Enzyme Technologies Ltd — Q4 FY26

Advanced Enzyme Technologies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ShtBYsB9lmM Published: 1 day ago

0:02 2 seconds Your conference is being recorded. 0:05 5 seconds Good morning ladies and gentlemen. I'm Arkash, moderator for the conference call. Welcome to Advanced Enzyme 0:12 12 seconds Technologies Limited Q4 and FY26 earnings conference call. As a reminder, all participants will be in listen only 0:20 20 seconds mode and there'll be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, 0:29 29 seconds please signal an operator by pressing star then zero on your touchstone telephone. Please note this conference is being recorded. I would now like to hand over the floor to Mr. Roak Sharf. 0:40 40 seconds Thank you and over to you sir. Good morning everyone. 0:45 45 seconds Welcome to Advanced Enzyme Technologies the Q4 and FI26 earnings conference call. 0:51 51 seconds We hope you all have gone through our financials press release and PPT which has been posted in the investor relation section of our website. We have with us 1:01 1 minute, 1 second Mr. Basantraati chair person Mr. Munabra full-time director and Mr. Benabadra group CFO. Today the management will 1:10 1 minute, 10 seconds discuss the performance and business highlights updates on strategies and respond to any questions that you may have. As usual, for ease of discussion, 1:18 1 minute, 18 seconds we will look at the consolidated financials. 1:22 1 minute, 22 seconds Now, I would like to draw your attention to the fact that some of the information shared during this call, particularly regarding our plans, strategies, and 1:30 1 minute, 30 seconds future outlook may contain powerlifting statements. These statements involve inherent interests and uncertaintities 1:37 1 minute, 37 seconds and are based on current expectations, forecast, and assumptions. Actual results may differ more detail from those expressed or implied in these statements. 1:46 1 minute, 46 seconds influenced by a range of factors including but not limited to economic conditions, changes in government policies, regulatory developments and other unforeseen circumstances. 1:57 1 minute, 57 seconds Participants are cautioned not to place underlines on these forwardlooking statements as they are not guarantees for future performance and should not be 2:06 2 minutes, 6 seconds viewed as substitute for independent judgment. The company undertakes no obligation to update or revise any such 2:15 2 minutes, 15 seconds statements whether as a result of new information, future events or otherwise. 2:22 2 minutes, 22 seconds Now without any further ado, we shall commence this call. Over to you Vicker. 2:29 2 minutes, 29 seconds Thank you Ron. 2:31 2 minutes, 31 seconds Good morning everyone. Uh I know this is the first time we are changing the call time from 4 to 9. So thank you for 2:40 2 minutes, 40 seconds taking your time early in the morning uh during the working day. I sincerely appreciate you all taking your valuable 2:48 2 minutes, 48 seconds time. I extend my heartiest welcome to everyone joining us today on the conference call to discuss the financial 2:56 2 minutes, 56 seconds results for the quarter and fiscal year ended 31st March 2026. 3:03 3 minutes, 3 seconds The global economy has faced severe disruption as you all know in recent years due to a compounding mix of 3:10 3 minutes, 10 seconds conflicts, geopolitical tensions and inherently fragile supply chain. 3:16 3 minutes, 16 seconds Conflicts between nations have interrupted the steady flow of energy, food and crucial raw materials thereby 3:23 3 minutes, 23 seconds injecting substantial uncertaintity across international market. 3:28 3 minutes, 28 seconds Concurrently, supply chain disruption worsened by transportation bottleneck and stringent trade restrictions have 3:35 3 minutes, 35 seconds slowed down production cycles and delayed the delivery of essential goods worldwide. 3:42 3 minutes, 42 seconds These escalating changes challenges have s uh significantly contributed to rising inflation 3:50 3 minutes, 50 seconds as a business face higher manufacturing and shipping cost that are ultimately passed on to the consu consumers. 3:58 3 minutes, 58 seconds Consequently, the prices of everything necess necessities are soared globally, placing heavy financial pressure on 4:07 4 minutes, 7 seconds households and weakening purchase power in this uncertain glo global environment. 4:15 4 minutes, 15 seconds Despite these doubting global supply chain challenges, we have maintained a highly consistent supply track record. 4:23 4 minutes, 23 seconds However, we remain vigilant as increasing geopolitical disruption will escalate the process of input essentials 4:32 4 minutes, 32 seconds such as fuel, salt, solvent, packaging uh with with also logistics potentially 4:41 4 minutes, 41 seconds creating near-term margin pressures across the industry. Turning in our financial performance, I'm delighted to 4:48 4 minutes, 48 seconds announce that Advanced Enzyme has reported its highest ever quarterly and annual revenue for the fiscal year ended March 2026. 4:58 4 minutes, 58 seconds For the fourth quarter, we reported revenue from operation at 2, 5:05 5 minutes, 5 seconds 034 million, reflecting a robust yearon-year growth of 22% and sequential 5:12 5 minutes, 12 seconds growth of 18%. For the full year, our annual revenue stood at 7,458 5:21 5 minutes, 21 seconds million, representing a solid growth of 17%. 5:25 5 minutes, 25 seconds Our operating profitability also demonstrated excellent momentum. IBIDA for the quarter stood at 632 million, 5:34 5 minutes, 34 seconds registering a 39% year-on-year growth and 28% sequential growth on a fullear 5:40 5 minutes, 40 seconds basis. IBIDA grew by 18%. IBIDA margin for both the quarter and the year remains strong at 31%. 5:49 5 minutes, 49 seconds Profit of tax stood at 453 million for the quarter showcasing a staggering 5:56 5 minutes, 56 seconds growth of 69% on yearon-year basis and 5% sub subsequently. On the annual basis, PAD 6:05 6 minutes, 5 seconds grew by 30%. Conse consequently my pack margin stood at 22% for the quarter and 6:12 6 minutes, 12 seconds 23% for the full fiscal year as compared to 21% in FI25. 6:19 6 minutes, 19 seconds Our overall financial performance is firmly in line with the earlier guidance. All of our business divisions 6:25 6 minutes, 25 seconds delivered healthy growth and we are confident that this steady momentum will continue into the coming year. 6:34 6 minutes, 34 seconds Looking at the broader industry landscape, global pharmaceutical, neutrautical and biotechnology sectors are increasingly shifting towards wider 6:43 6 minutes, 43 seconds adoption of enzyme across various region. This macro trend is driving 6:50 6 minutes, 50 seconds substantial market demand for player like us who can offer integrated endto-end capabilities and customized 6:58 6 minutes, 58 seconds solutions across these platforms. Over the course of the year, we have taken several strategic steps to fortify our 7:06 7 minutes, 6 seconds mid to long-term market positioning. We have continued to invest in enhancing our R&D capabilities which will 7:14 7 minutes, 14 seconds accelerate our innovation pipeline while parallelly exploring expansion into newer high potential geographics. 7:24 7 minutes, 24 seconds On the regulatory and compliance front during this year we filed two food enzyme dosiers with the European food 7:32 7 minutes, 32 seconds safety authority FPS and three class doers with the US FDA. As mentioned in our previous interaction, our new R&D 7:41 7 minutes, 41 seconds center in Nasi is expected to become fully operational in the later half of this fiscal year significantly boosting our product development bandwidth. 7:54 7 minutes, 54 seconds Additionally, we are anticipating approval of our anti-inflammatory products that we filed two years back in 8:00 8 minutes European region during this year. Now, I will take your uh take you through our 8:07 8 minutes, 7 seconds seg segment wise revenue performance for the fourth quarter of FY 26 as well as full fiscal year 2026. 8:18 8 minutes, 18 seconds Let's begin with the human healthcare. 8:20 8 minutes, 20 seconds Our largest and most critical segment revenue for quarter 4 26 stood at rupees 8:29 8 minutes, 29 seconds 1 1,281 million making a 24% year-on-year growth 8:36 8 minutes, 36 seconds and 33% su sub sequential increase for the full year year-to- date basis we 8:44 8 minutes, 44 seconds observed a solid growth of 15%. This growth was primarily driven by higher cell volumes in pharma API biocatalysis 8:53 8 minutes, 53 seconds and nutritional business. Human healthcare continues to be our flagship division contributing 63% of our total 9:01 9 minutes, 1 second revenue. Annual healthcare revenue in this segment rose to 250 million 9:08 9 minutes, 8 seconds delivering a 19% increase year on year 2% uh sequential and 25% on year-to-ate 9:15 9 minutes, 15 seconds basis. Annual healthcare account for 13% of our total revenue. 9:22 9 minutes, 22 seconds Animal healthcare uh accounts for 13% of our total revenue. The growth is mainly driven by increased sales in Asia. 9:31 9 minutes, 31 seconds Turning to pro bioprocessing, this segment recorded 17% year-on-year growth during the quarter despite a 10% 9:40 9 minutes, 40 seconds sequential contraction, finishing the year with 16% year-to- date growth. The annual growth was predominantly fueled 9:49 9 minutes, 49 seconds by healthy performance of our food business, which grew by 20% yearonear and 19% on the year-to-ate basis. 9:58 9 minutes, 58 seconds Conversely, the non-food business contracted contracted by 1% yearonear and 7% sequentially, remaining flat on 10:07 10 minutes, 7 seconds the year-to- date basis. Lastly, the specialized manufacturing segment registers a 17% growth year on year and 10:15 10 minutes, 15 seconds a six 16% sequential growth. On year-to- date basis, it grows by impressive 23%. 10:24 10 minutes, 24 seconds This segment currently represent 9% of our overall revenue. 10:29 10 minutes, 29 seconds Our strategy strategic product mix within each business division and 10:36 10 minutes, 36 seconds operating leverage has continued to perform exceedingly well supporting our healthy overall margins. 10:46 10 minutes, 46 seconds We anticipate that our entire portfolio spanning human nutrition, animal nutrition, and biorocessing will perform 10:54 10 minutes, 54 seconds even better and grow stronger as we move right into the new fiscal year. That said, our business outlook remains 11:02 11 minutes, 2 seconds extremely steady. We'll continue to focus on optimize cap capacity allocation, improving supply chain 11:10 11 minutes, 10 seconds efficiencies, ramping up new product launches and expanding our operational footprints across both developed and 11:19 11 minutes, 19 seconds emerging market. With this, I will now hand over this call to Raaji. He will walk you through the financials and key 11:27 11 minutes, 27 seconds subsidiary numbers. Denny 11:36 11 minutes, 36 seconds Thank you very much sir. Good morning everyone. I hope you all are in good health and doing well on the company's 11:45 11 minutes, 45 seconds consolidated financials for the fourth quarter and year end of fiscal year 2026. 11:53 11 minutes, 53 seconds Yearon-year basis our revenue is increased by 362 million 22% 12:01 12 minutes, 1 second from 1,672 million to rupees 234 million. 12:09 12 minutes, 9 seconds Our eBIA increased by rupees 176 million a 39% of increase from rupees 456 12:19 12 minutes, 19 seconds million to rupees 632 million and it stood at 31%. 12:28 12 minutes, 28 seconds Profit before tax after exceptional item increased by 12:34 12 minutes, 34 seconds rupees 163 million. A 38% increase from rupees 430 million to rupees 598 million. 12:47 12 minutes, 47 seconds Pat increased by rupees 186 million from rupees 260 million to rupees 453 million. 12:59 12 minutes, 59 seconds So p is 22% of our revenue in this particular quarter. quarteron-quarter 13:06 13 minutes, 6 seconds basis. This is sequential revenue increased by rupees 315 million 13:14 13 minutes, 14 seconds 18% increase from rupees 1,719 million to rupees 2,34 million. IA 13:24 13 minutes, 24 seconds increased by rupees 138 million 28% increase from rupees 494 million to 13:32 13 minutes, 32 seconds rupees 632 million profit before tax after excessional item 13:38 13 minutes, 38 seconds increase by rupees 15 million from 583 million to 598 million. profit after tax 13:47 13 minutes, 47 seconds increase by rupees 21 million from rupees 432 million to rupees 532 million. 13:58 13 minutes, 58 seconds Financial year performance uh YD FI26 with FY25 14:06 14 minutes, 6 seconds annual basis our revenue increased by rupees 1,89 million 14:12 14 minutes, 12 seconds 17% increase from rupees 6,369 million to 7,458 14:21 14 minutes, 21 seconds million. Our IITA increased by rupees 347 million. This is 18% increase from 14:30 14 minutes, 30 seconds rupees 1,944 million to rupees 2,291 14:37 14 minutes, 37 seconds million and it is 31% of our revenue and I even FI 25 it was 31%. 14:47 14 minutes, 47 seconds Profit before tax increase by rupees 451 million. a 24% of increase from rupees 14:56 14 minutes, 56 seconds 1,874 million to rupees 2,325 15:03 15 minutes, 3 seconds million. So this is 31% as compared to 29%. 15:09 15 minutes, 9 seconds profit after tax increase by rupees 396 million, a 30% increase from rupees 15:18 15 minutes, 18 seconds 1,340 million to rupees 1,736 million. Our pad stood at 23% of our 15:28 15 minutes, 28 seconds revenue as compared to 21% in FY25. 15:35 15 minutes, 35 seconds This biotech uh revenue for last quarter Q4 was 172 million, IBIDA 15:45 15 minutes, 45 seconds 15 million, PA of 3 million as compared to 112 million of revenue, 4 million of 15:54 15 minutes, 54 seconds IBIDA and uh PAT was negative in that particular quarter 7 million. So the SCB 16:00 16 minutes on annual basis uh sties increased from 600 million to 728 million. ITA 16:07 16 minutes, 7 seconds increased from 70 million to 92 million and PG increased from 12 million to 29% 29 million. 16:17 16 minutes, 17 seconds EOS for the quarter stood at uh revenue stood at 88 million, IBIDA of 19 million 16:25 16 minutes, 25 seconds and P of 14 million as compared to revenue of 43 million and the negative 16:32 16 minutes, 32 seconds IBIDA of 4 million and P of uh negative P of 9 million in the uh quarter 4 of 16:41 16 minutes, 41 seconds FI25 on annual basis revenue of EOS stood at 16:47 16 minutes, 47 seconds 319 million as compared to 213 million a 50% increase and IITA is increased -12 16:55 16 minutes, 55 seconds to 72 million PAT is increased to 50 million as compared to 39 million 17:03 17 minutes, 3 seconds negative in FI25 site has performed uh excellent and uh 17:10 17 minutes, 10 seconds Q4 number stood at revenue 179 million of 38 million and pet of 29 million as 17:18 17 minutes, 18 seconds compared to revenue of 156 million and IID of 10 million and P of 5 million respectively. Annual basis scitec 17:27 17 minutes, 27 seconds topline stood at 668 million as compared to 542 million a 23% increase and ibida 17:36 17 minutes, 36 seconds stood at 104 million as compared to 76 million a 37% increase and p is 45 17:43 17 minutes, 43 seconds million as compared to 37 million so 22% of increase on annual basis our 17:52 17 minutes, 52 seconds top product which is anti-inflammatory enzyme sales stood at 23%. 17:59 17 minutes, 59 seconds And top 10 customer contributed 23% as compared to 22% in FY25. 18:06 18 minutes, 6 seconds B2C segment is about uh 0.9 million as compared to 119 million in FY20. 18:18 18 minutes, 18 seconds I'm sorry complete total number is uh 4 3 4.37 million for FI26 18:27 18 minutes, 27 seconds as compared to 4.46 million in FY25. 18:35 18 minutes, 35 seconds Our R&D expenditure total on standalone basis is 356 million in 18:43 18 minutes, 43 seconds FI26 as compared to 328 million in FI25. 18:49 18 minutes, 49 seconds On consolidated basis, our R&D spend is about uh 5.6% 18:56 18 minutes, 56 seconds during quarter 4 and 5.3% in the corresponding quarter of FY25. 19:05 19 minutes, 5 seconds So this is all from my side. We shall open the floor for question answer. 19:12 19 minutes, 12 seconds Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please 19:19 19 minutes, 19 seconds press star and one on your telephone keypad and wait for your turn to ask question. 19:25 19 minutes, 25 seconds If you would like to withdraw your request, you may do so by pressing star and one again. 19:32 19 minutes, 32 seconds Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. 19:39 19 minutes, 39 seconds The first question comes from the line of Mr. Abishek Daval from Central Broking. Please go ahead, sir. 19:47 19 minutes, 47 seconds Yeah. Hi, sir. Good morning. Uh, and thank uh congratulations on a good set of numbers. My first question is on um I mean uh you just explained uh the 19:56 19 minutes, 56 seconds segment details also. So this clearly reflects that the quarter is all about growth that we have witnessed in you know cereopeptidities the 20:04 20 minutes, 4 seconds anti-inflammationary enzyme but I'm just curious that while our uh sequential margin is also kind of installed it is 20:12 20 minutes, 12 seconds mainly because of the operating leverage maybe but why the gross margin has kind of moderated on a sequential basis especially when we see the Europe uh US 20:21 20 minutes, 21 seconds share is also more or less similar and our human nutrition which is like the highest margin segment is also So maintained or rather gained some share 20:29 20 minutes, 29 seconds in terms of revenue. So this first question on the gross magic 20:43 20 minutes, 43 seconds can you can you repeat can you what is exactly what you want to know about the gross margin abishek 20:51 20 minutes, 51 seconds I just wanted to know the movement that we have seen on sequential basis the gross margin while uh our human nutrition portfolio has done well we 20:58 20 minutes, 58 seconds have not lost share in terms of a US exposure also. So what could be the reason why our gross margin has moderated on Qoq basis this quarter? 21:10 21 minutes, 10 seconds So this is this is mainly what happens is because of the you know the variable cost and fixed cost issue right? If you 21:17 21 minutes, 17 seconds have incremental sale then definitely your gross margin are going to go up because your fixed expenses remains 21:24 21 minutes, 24 seconds fixed and you have that operating leverage. 21:30 21 minutes, 30 seconds At the same time obviously uh we try to improve the productivity and there are certain products which we could increase 21:37 21 minutes, 37 seconds the productivity as well in this quarter. Okay. And uh that's a continuous process with the R&D which comes up. So it's a combination of both 21:46 21 minutes, 46 seconds which helps us even though the cost are written on the higher side because of all of this inflations and other thing which is happening with the war. uh 21:55 21 minutes, 55 seconds still we could do it uh because of all the other factors because there is a constant improvement on the output side as well. 22:03 22 minutes, 3 seconds So sorry sir actually what I was trying to ask you is while our margin has increased I think if you see our gross margin number it has kind of dropped uh 22:12 22 minutes, 12 seconds compared to 3Q. Uh so if you if you ask that then competition right Pat 22:20 22 minutes, 20 seconds Pat Ro so last quarter there was some rock you can take last quarter we had some extraordinary items on the side 22:29 22 minutes, 29 seconds no I think can you again uh come back with your question please you were talking about no we we can we can take this offline uh 22:37 22 minutes, 37 seconds that's fine I was my my question was on gross margin I'll connect with you later on this uh so Yeah. 22:49 22 minutes, 49 seconds Yeah. So I'm saying uh on the ferio pepid side uh the uh increase that we have seen this could be a function of you know some market share gain in the 22:57 22 minutes, 57 seconds domestic market. So is it fair to assume that uh you know this quarterly run rate will continue going ahead. 23:06 23 minutes, 6 seconds I think will give you the answer. 23:09 23 minutes, 9 seconds Uh I won't comment on that. I wish there are always uh uh quarter and quarter of variability 23:17 23 minutes, 17 seconds uh particularly but I would say that we will retain most of it uh and it's not only like uh only like inflammatory 23:25 23 minutes, 25 seconds products but we are working on many other products as well and those are also contributing. Sure. Sure. 23:32 23 minutes, 32 seconds Uh and you mentioned about the EU approval for the same product. So uh possible to share I mean how big would be the EU market for this product? 23:43 23 minutes, 43 seconds So it's a novel novel uh which we uh submitted two years back and we expect 23:51 23 minutes, 51 seconds uh this year it should be approved. Uh if it gets approved then we will be the only person who can supply that product for next five years or 10 years. I need 23:59 23 minutes, 59 seconds to see exactly what is the time frame which we get and uh that should be really interesting for us. I won't be 24:06 24 minutes, 6 seconds able to give you the numbers but the interest can be very big. 24:11 24 minutes, 11 seconds Sure. I I'm not asking for any specific guidance but any aspiration number that you can talk about let's say five year down the line how do you see this 24:18 24 minutes, 18 seconds product growing whenever we'll get the approval I mean post that we cannot we cannot 24:28 24 minutes, 28 seconds I can't comment on the particular product but overall what we expect to grow is in the uh double digit and maybe 24:36 24 minutes, 36 seconds big double digit and that's like what we we are aiming for and that is where all the efforts are there we won't be able to say about a single product or two 24:44 24 minutes, 44 seconds product there are multiple things which we work absolutely absolutely my my next question is on the current environment 24:53 24 minutes, 53 seconds wherein we are seeing inflation and everything so I think you talked about fuel salt solvents packaging and logistics so just would like to know in 25:01 25 minutes, 1 second two uh branches as in in terms of raw material increase I I I guess we are relatively sorted because we procure 25:08 25 minutes, 8 seconds largely from uh India But when it comes to these items like fuel, salt, solvents, packaging, logistics. So have 25:17 25 minutes, 17 seconds how how is the pass through structure like uh in this quarter and do you expect some margin pressure because of the full effect uh getting flowed 25:24 25 minutes, 24 seconds through in one Q there is always pressure because if 25:31 25 minutes, 31 seconds you really look into the you want to take mama go ahead. 25:42 25 minutes, 42 seconds Hello Mixer, you want to take? 25:44 25 minutes, 44 seconds Yeah. No, no, I say there's always going to be margin pressure. No. Uh these are 25:51 25 minutes, 51 seconds all uh these are all uncertain times with what is going to happen tomorrow with u with u 26:01 26 minutes, 1 second your energy. you know it's a industry is very much based upon lot of energy and level so 26:08 26 minutes, 8 seconds yeah just I my only point was basically is there will be a a one quarter two quarter lag is is it possible to uh you know comment on that whether we passing 26:17 26 minutes, 17 seconds it on or partly passing it on to the customers now I will say it is difficult to pass on very competitive word global global 26:26 26 minutes, 26 seconds climate but um uh you know you you try to increase the productivity 26:34 26 minutes, 34 seconds efficient increase the efficiencies and try to reduce the cost. There are a lot of mitigating lot of things which you have to work and management is very 26:43 26 minutes, 43 seconds aware of it trying to compete in the global marketplace we had to be very efficient right uh my last question sir uh uh in 26:52 26 minutes, 52 seconds terms of guidance uh what do you expect in revenue and margins in FI27 and a specific color on US business in 27:00 27 minutes particular well margin and things as uh as as as I mentioned before is going to be steady. 27:09 27 minutes, 9 seconds Same same idea what we are talking about. Uh we wanted to keep this uh momentum uh and hopefully build upon it. 27:19 27 minutes, 19 seconds Okay. U as far as the US market is concerned. 27:26 27 minutes, 26 seconds Your second part of the question um there is enormous pressure of the inflammatory pressures here in the US 27:34 27 minutes, 34 seconds economy due to energy. Nobody knows what's going to happen in 15 days from 27:41 27 minutes, 41 seconds now or two months from now. But uh overall uh cost is d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d dramatically increasing 27:49 27 minutes, 49 seconds and as I mentioned before in my in my comments before uh the 27:55 27 minutes, 55 seconds the uh spending or what you call it um 28:02 28 minutes, 2 seconds people's um discretionary expenses is going to be a lot of pressure on that. 28:07 28 minutes, 7 seconds So we'll see how that how that plays out. Okay, this is going to be a very challenging year no matter what. Okay, 28:17 28 minutes, 17 seconds this is very helpful. Thank you and all the best. You're welcome. Thank you. Thank you so much, sir. 28:26 28 minutes, 26 seconds The next question comes on the line of Mr. Kunal Tani from Banyan Tree Advisor. Please go ahead. 28:33 28 minutes, 33 seconds Hi, thanks for the opportunity. Uh I had two questions. One was you know if you can throw some light on um you know 28:41 28 minutes, 41 seconds India business growth in terms of pricing and volume like was there an element of price increases because like three four quarters back we saw 28:49 28 minutes, 49 seconds significant price erosion in in in our largest product. Second question was to Mr. Rati about you know uh your thoughts 28:59 28 minutes, 59 seconds on buyback of shares. uh we've seen you know been buying from open market and there's a change in the taxation law in 29:06 29 minutes, 6 seconds India uh post which back becomes uh you know good for the retail investors uh any thoughts if you can share about you 29:13 29 minutes, 13 seconds know capital allocation because like we've also not you know announced in building this time around uh was curious to know how we are thinking about the 29:22 29 minutes, 22 seconds cash that we have on the balance sheet well I will try to answer your second 29:31 29 minutes, 31 seconds question first. Um you guys are more uh more professionals 29:41 29 minutes, 41 seconds know about the market and prices but uh 29:48 29 minutes, 48 seconds we we we will be looking at all the necessary options of what is in the best interest of the our shareholders and how 29:57 29 minutes, 57 seconds we increase the value of our shareholders. Okay. 30:03 30 minutes, 3 seconds Uh the the causing the pressure on the So so sir is it fair to assume that 30:11 30 minutes, 11 seconds buyback is also something that uh you is like the board is considering. 30:18 30 minutes, 18 seconds Yeah, it's a board's prerogative to look into various different uh areas and I'm sure that on right time board will take a decision. Okay. 30:29 30 minutes, 29 seconds Okay. 30:30 30 minutes, 30 seconds To see whatever they they feel is best interest of the company shareholders. 30:38 30 minutes, 38 seconds And regarding the uh your first part, Mukul can probably answer this. 30:46 30 minutes, 46 seconds Kunal, do you want to know uh is there is a margin pressure or what? 30:52 30 minutes, 52 seconds No, my question was on Sarah peptide like uh is the growth that we have seen in the Indian Indian business right is it entirely volumedriven or there was 31:01 31 minutes, 1 second some price increase that also we saw during this quarter because like you know four quarters back or three quarters back we you know when there was 31:09 31 minutes, 9 seconds competition in this segment we we would we had talked about you know pricing pressure is there's a reversal of that pricing pressure now coming soon leading 31:18 31 minutes, 18 seconds to this kind of you know it was purely a volume uh you of growth that we have seen. 31:24 31 minutes, 24 seconds So let's not look into the quarter and quarter basis. Uh I would say some quarters you will have a higher growth on the particular product. Some quarter 31:32 31 minutes, 32 seconds some other products will have it. Uh in terms of pricing the pricing is more or less constant. uh it's more to driven by 31:41 31 minutes, 41 seconds the volume but at the same time going forward we are looking how do we increase the cost and pass on some of the cost and which we are trying to do 31:49 31 minutes, 49 seconds from the uh from the new year sure fair got it and last question was you know we talked about the US market 31:58 31 minutes, 58 seconds you know that the possible slowdown will continue for FI2 given the you know geopolitical situation uh and then like 32:05 32 minutes, 5 seconds at the other end we've uh you know spoken about you our aspiration to do a double digit growth in FI27. 32:13 32 minutes, 13 seconds like if you can you know break down these counts into you know what are the markets that you believe will kind of support the growth or you know to make 32:21 32 minutes, 21 seconds sure that a flat or a negative US market uh you know for FI27 and still we we kind of do you know uh double digit 32:29 32 minutes, 29 seconds growth and like if that happens what is the rep like you know second order impact on the margins because US uh I 32:37 32 minutes, 37 seconds would assume is a higher margin business right uh so like if you can talk about these two aspects here. 32:48 32 minutes, 48 seconds So, uh going forward the next year we expect like little growth coming from the US and not like the negative growth. 32:55 32 minutes, 55 seconds uh uh we are working on many different fronts at the same time when we go into the Indian areas we are working on a different different avenues different 33:03 33 minutes, 3 seconds markets we are opening the last year we worked on many different areas and probably all the growth will come from 33:09 33 minutes, 9 seconds all the three segments uh including like uh human neutropical food and like animal field so we expect a healthy 33:18 33 minutes, 18 seconds growth this year from Indian Indian space as Sure. 33:26 33 minutes, 26 seconds And uh is it fair to assume that you would be able to hold on to the margins or uh you know uh as we've seen in FI26 33:34 33 minutes, 34 seconds or because of some pressures in cost pressures in US there could be an impact on margins. 33:40 33 minutes, 40 seconds Uh I wouldn't say that too much of impact 1% or 2% is always possible and that's a variability what we have and I wouldn't like to get into the 33:48 33 minutes, 48 seconds nittygritty of it. Maybe like Ra can explain uh but if you ask me more or less we will go with the same margins 33:55 33 minutes, 55 seconds and that's what our assumption is but Ra can give more focus on the margins exactly what are the numbers saying 34:03 34 minutes, 3 seconds okay perfect uh thank you so much thank you you're welcome 34:11 34 minutes, 11 seconds thank you so much sir the next question comes from the line of Mr. Rajas Jooshi from Chris Capital please go ahead. 34:17 34 minutes, 17 seconds Yeah, thank you for your question. Uh so my first question uh is on the US uh business. So if I look at the revenue 34:25 34 minutes, 25 seconds for this quarter, it is down some 11% in INR terms. Now given the depreciation of the INR uh in in dollar terms the 34:33 34 minutes, 33 seconds decline must have been a lot more sharper so to speak. So just wanted to get a sense on what exactly is happening there because I think now with the 34:40 34 minutes, 40 seconds tariffs behind as well we were expecting a you know recovery in this business that has somehow not you know shown up in the numbers. So just wanted to get a 34:49 34 minutes, 49 seconds sense of uh what exactly is going on and uh is it time for us to you know rethink our strategy in US and probably change the way we are working there. 35:03 35 minutes, 3 seconds uh risers the the market is changing in US quite a bit. Uh there is uh 35:13 35 minutes, 13 seconds there is more concentration on the deliverable 35:20 35 minutes, 20 seconds uh registration uh the studies etc. um on your strategy changing accordingly. 35:31 35 minutes, 31 seconds Uh so market is as I uh as we said before also very challenging. Uh but we 35:39 35 minutes, 39 seconds are making very good inroads with registration uh in the in the 35:47 35 minutes, 47 seconds u regulatory areas as well as in the market segments. Okay. So um 35:57 35 minutes, 57 seconds it is going to be um as I show I as I said before very challenging year but we 36:05 36 minutes, 5 seconds we are expecting to grow in US market also. Thank you for the answer. 36:14 36 minutes, 14 seconds My second question would be on our uh India you know India business. uh this quarter has seen a you know significant 36:21 36 minutes, 21 seconds increase in sales about 50% and beer has also been good for us in India. So Sarah obviously I think uh there was an 36:30 36 minutes, 30 seconds earlier mention of Sarah volumes going up but outside of Sarah any other products uh that you would like to call out or any other segment that you would 36:38 36 minutes, 38 seconds like to possibly call out that has done well for us in India both in this quarter and for the year as well uh even and and if you could please also call 36:46 36 minutes, 46 seconds out your biocatalysis revenue for Q4 and for the full year as well please. 36:58 36 minutes, 58 seconds So the revenue can tell you what exactly the revenue is but going forward we we do expect like a good growth to come 37:05 37 minutes, 5 seconds from the bioatist as well in Indian market. Uh I would like to mention that like not only like the pharma but this 37:14 37 minutes, 14 seconds year like we grew very well in the food area as well as in the animal feed area 37:20 37 minutes, 20 seconds and uh even our specialy business grow very well and we expect that this moment 37:27 37 minutes, 27 seconds to continue going forward as well. But if you want a specific bio catalyst numbers probably like Raji can give you. 37:35 37 minutes, 35 seconds Uh yeah but going forward we do expect a good growth coming from those areas as well. 37:42 37 minutes, 42 seconds Sir uh and I have getting this I think you wanted the numbers right? 37:50 37 minutes, 50 seconds Yes please. 37:52 37 minutes, 52 seconds 247 million and uh for the FI26. Yes. and last year it was 174 million. 38:02 38 minutes, 2 seconds Understood sir. Thanks a lot. Uh my next question would be on our R&D pipeline. 38:06 38 minutes, 6 seconds So outside of SEMA which you know sorry Sarah which uh you've already spoken about um the European filing any other 38:15 38 minutes, 15 seconds products that are there in the pipeline for us uh which which you know are gaining good traction or you know are expected to launch soon in the uh this 38:23 38 minutes, 23 seconds year or the year after that uh which you would like to highlight. 38:29 38 minutes, 29 seconds the this is a continuous process. We are working on many projects as we were talking coming this year probably like 38:36 38 minutes, 36 seconds in the second half our R&D uh new facilities should be operational and after that we should be able to work on 38:43 38 minutes, 43 seconds more different products uh and because of the competition of the nature I don't want to now go going forward specify the 38:52 38 minutes, 52 seconds individual products uh because uh that just creates the pressure of the products so going forward I will not be 38:59 38 minutes, 59 seconds like to mention the exact product but we are working on many different products that's what I would like to say 39:06 39 minutes, 6 seconds understood sir and I mean it seems like the company has turned around in uh you know FI26 after a difficult FI25 39:14 39 minutes, 14 seconds uh so I mean apart from the the revenue outlook which you said has the nature of our revenue in some sense also you know kind of become more long-term or 39:23 39 minutes, 23 seconds recurring than it was earlier is is the quality of revenue increased uh so to 39:31 39 minutes, 31 seconds Quality of revenue is extremely well and very stable. 39:36 39 minutes, 36 seconds Understood. Understood. Got it. And last question on uh capital allocation. I think one of the earlier participants also uh have pushed you on this. Uh so I 39:44 39 minutes, 44 seconds mean looking at a balance sheet, we were around 700 crores of cash. Uh and despite that we have canceled the uh interim dividend. So just wanted to get 39:52 39 minutes, 52 seconds some thoughts on your thought process uh regarding that. 39:59 39 minutes, 59 seconds that that's again I will say that these board decisions which board always evaluate from time to time on how to 40:09 40 minutes, 9 seconds enhance the shareholders value by different modes and methods uh as you 40:16 40 minutes, 16 seconds guys know very well. So we are always uh as a company uh company board members 40:23 40 minutes, 23 seconds are always looking to see how and where we can do uh how we can benefit this to the our shareholders. 40:32 40 minutes, 32 seconds answer and and so when I uh broader question on the fermentation space so to speak uh this would be my last question 40:39 40 minutes, 39 seconds uh you know there are couple of peers you know who actually uh have have now entered let's say emerging areas like 40:47 40 minutes, 47 seconds animal no sorry non non-meat based proteins uh which are also manufactured using fermentation itself uh and those 40:56 40 minutes, 56 seconds those segments also have you know good growth potential and healthy margin profile as well So just want to get a sense on how we are looking at some of 41:04 41 minutes, 4 seconds these adjacent areas and and are we considering these areas for future expansion as well. 41:11 41 minutes, 11 seconds Um it is a protein protein overall category is a growth category as you all know very well. Okay. uh non-meat 41:21 41 minutes, 21 seconds protein um is taking some traction as we understand it and we are continuously 41:27 41 minutes, 27 seconds working on various different areas to uh to see how we can we can take the 41:34 41 minutes, 34 seconds advantage of it you know uh in a whole segment not only meat protein area but 41:42 41 minutes, 42 seconds all entire protein area so to speak u but yes it is it is a very interesting 41:48 41 minutes, 48 seconds area And obviously we are we are always looking into all these growth areas. 41:57 41 minutes, 57 seconds All right. Thanks a lot sir and wishing you all the very best. Thank you. Thank you so much sis. 42:05 42 minutes, 5 seconds Thank you so much sir. The next question comes from the line of Mr. Nikolai from security investments manager. Please go ahead. 42:13 42 minutes, 13 seconds Hello. Uh good morning. Am I audible? 42:17 42 minutes, 17 seconds Yeah hello. Thank you. Yeah, good morning. 42:20 42 minutes, 20 seconds Uh, congrats on a good set of numbers for the quarter and the year as a whole. 42:25 42 minutes, 25 seconds Uh, now um my broader question is sir, if you look at our growth trajectory in the past uh since listing there have 42:34 42 minutes, 34 seconds been periods when we had very strong growth then there was a period when the growth would come down to single digit. 42:41 42 minutes, 41 seconds Uh this time it seems you are more confident on the sustainance. So what are the factors or what we have done differently from the past which you 42:50 42 minutes, 50 seconds which gives you confidence that this growth momentum can sustain and in a in single similar spirit if we look at it 42:59 42 minutes, 59 seconds in this time the growth even for the year has been more broad-based like human nutrition has grown animal 43:05 43 minutes, 5 seconds nutrition has grown so if you can just talk about what at a company level we have done differently or what changes we 43:13 43 minutes, 13 seconds have done over the last two years where we are seeing this broader growth versus segmental growth which used to happen earlier. 43:22 43 minutes, 22 seconds Sure. 43:24 43 minutes, 24 seconds Uh it's a very good question and thank you for asking that. Uh as you can see 43:30 43 minutes, 30 seconds the growth is broader and what what it was is um we have to focus on the areas 43:38 43 minutes, 38 seconds which we want to grow and initially also from the beginning we are telling that we have changed the focus on not running 43:46 43 minutes, 46 seconds after every single thing but focused on the areas which we are very good at and we want it to grow and it has to become 43:55 43 minutes, 55 seconds supplemented with lot of research and not necessarily just a commodity product 44:02 44 minutes, 2 seconds or me too products. So we we made a lot of changes in that particular segment. 44:08 44 minutes, 8 seconds Our outlook is more broad-based and long-term rather than the short-term margins. And what you see is that 44:17 44 minutes, 17 seconds results accumulative culminative efforts for for some years now that it is u it 44:25 44 minutes, 25 seconds is paying off uh this year uh in spite of lot of challenges in the global 44:32 44 minutes, 32 seconds marketplace. Okay. And our outlook is a global now. It is not a segmented 44:39 44 minutes, 39 seconds outlook only. We look at the entire region world is very fast. It's a it's 44:46 44 minutes, 46 seconds now coming to be a AI world in the f very shortly and as you can see it will need to be very rapid and very 44:55 44 minutes, 55 seconds broad-based and deeper rather than a commodity. So those are the ch kind of changes we are making. we made actually 45:04 45 minutes, 4 seconds and continue to make as as I mentioned that also in my uh opening remarks that 45:11 45 minutes, 11 seconds um within next 6 months this quarter this year fiscal year will be operational into our R&D center which is 45:20 45 minutes, 20 seconds one of the largest research space center in in our area so 45:26 45 minutes, 26 seconds far that I know of you know so we we are going for innovations s as our 45:32 45 minutes, 32 seconds PM says you know rather than uh just uh just service industry and 45:42 45 minutes, 42 seconds you know that is what you can see lot of registration lot of lot of papers um lot 45:49 45 minutes, 49 seconds of research and we are spending substantial and committed to spend substantial amount of our earnings into 45:58 45 minutes, 58 seconds the R&D sector does that make Does that give you answers to your question? 46:04 46 minutes, 4 seconds Yeah. Yes sir. Um it it gives a comprehensive view. I would I would just want to understand one more point because when we when we go for a more 46:12 46 minutes, 12 seconds comprehensive uh and in-depth uh uh entrance with the customer or entrenchment and more innovation. But 46:21 46 minutes, 21 seconds there are two aspects which probably can throw light. One is with our existing uh customers say which were present 3 years 46:30 46 minutes, 30 seconds back. Today what quantum of business we would have increased with them and secondly if we look at the growth beyond our top 10 customers how would that be? 46:43 46 minutes, 43 seconds Well, you will find that our top 10 customers will be very much evolving and expanding. Okay. And uh uh that is uh 46:53 46 minutes, 53 seconds because of what we have what I said it before and uh we are very keen on increasing our share of revenues from 47:02 47 minutes, 2 seconds the existing customers also which they have already established for so many years. So there is a lot of changes 47:10 47 minutes, 10 seconds globally happening right now as you are very well aware Nikl and uh obviously 47:17 47 minutes, 17 seconds lot of companies are looking at us also into the different different angle uh 47:24 47 minutes, 24 seconds different perspective. Uh so uh it is an exciting even though 47:31 47 minutes, 31 seconds challenging time and we feel very confident that this really with uh with the last a lot of work which we have 47:39 47 minutes, 39 seconds done in last several years is uh is taking a deep root into it. 47:46 47 minutes, 46 seconds Sure sir thanks. Just two questions. One is sir uh see today we are almost a 750 47:53 47 minutes, 53 seconds 800 cr kind of a topline company. When we today go to a new customer uh the 48:00 48 minutes kind of uh discussion which they are having with us versus when we were a smaller company say five or seven years 48:08 48 minutes, 8 seconds back. uh today with the kind of projects which we are getting are they more innovationdriven or is it more of a like 48:16 48 minutes, 16 seconds second supplier source kind of a replacement which we are doing. So how would you define the kind of work on the R&D we are doing? Is it more newer 48:25 48 minutes, 25 seconds products and the even the companies are open to give them to us or is there still still some skepticism? 48:33 48 minutes, 33 seconds Okay that's again yeah you're you're asking very good questions. Well, both again 48:41 48 minutes, 41 seconds again I will answer you both because uh new companies quite a few new companies 48:48 48 minutes, 48 seconds are approaching us old companies are uh or those companies which are established 48:55 48 minutes, 55 seconds uh are checking us out kind of thing you know. So uh 49:02 49 minutes, 2 seconds yes we are we are working on a both. One is we need to continue on getting uh the 49:09 49 minutes, 9 seconds revenues from the existing or these new sources which are just uh which are just cost driven. At the same time we have to 49:19 49 minutes, 19 seconds establish uh the new markets which without innovations which uh which is uh little 49:27 49 minutes, 27 seconds deeprooted. So the strategies are combination of both. 49:32 49 minutes, 32 seconds Okay. And last question see two or three years back if we go back to our call one of the idea which we had was that uh 49:40 49 minutes, 40 seconds this is a business which is driven by volumes and volumes will provide us operating leverage. Now even from and 49:50 49 minutes, 50 seconds I'm taking a base postco when we were at 530 K today we are at 750 KSE. 49:58 49 minutes, 58 seconds It seems we have like sacrificed some bit on the gross margin because gross margins have come down from 75 to 71 may 50:06 50 minutes, 6 seconds not be a sacrifice but the operating unit has not played out the way we had thought or we as investors had thought 50:15 50 minutes, 15 seconds that as volumes will come operating leverage will play out. So is there something wrong with our understanding of the business or is it a sacrifice 50:23 50 minutes, 23 seconds which we have said that we are okay doing business at 30% margins but let's focus on getting more customer traction. 50:31 50 minutes, 31 seconds So which what have we chosen between the two more customer tractions. 50:39 50 minutes, 39 seconds Sure. So which means our margins should remain in this level and operating leverage would probably provide it for more volume growth we would look at. 50:50 50 minutes, 50 seconds Yeah. Yes. Okay. Thanks a lot. I'll come back. Thank you. 50:57 50 minutes, 57 seconds Thank you so much sir. 51:00 51 minutes The next question comes from the line of Mr. Lakshmi Narana from uh Tuga Investments. Please go. 51:07 51 minutes, 7 seconds Yeah. Uh thank you. Hope I'm audible sir. Yes sir. Yes you are. Absolutely. 51:13 51 minutes, 13 seconds Two questions. I I noticed that Mr. Roda is moving on and uh you know he has been a big part of our management. Uh I just 51:22 51 minutes, 22 seconds wanted to understand you know how the organization is maintaining stability and uh uh you know how the organization 51:29 51 minutes, 29 seconds is actually moving forward and and whether any next person has actually taken lead in that area. 51:39 51 minutes, 39 seconds M I I cannot hear for your questions properly. Maybe you're little too. 51:45 51 minutes, 45 seconds Yeah. So I understand that Mr. Deeper L which who has been part of our uh uh team for a long time had decided to move 51:53 51 minutes, 53 seconds on and I just wanted to just understand uh you know how uh uh that role has been 52:00 52 minutes uh smoothly transitioned and uh uh and uh and and if if any other person has 52:07 52 minutes, 7 seconds been uh uh replaced uh I mean how he has been replaced also. 52:16 52 minutes, 16 seconds Well, in an organization of course when somebody leaves uh does uh such as Mr. 52:24 52 minutes, 24 seconds Florida who such who works for a long time uh with the company uh as a part and becomes a part of the company does 52:33 52 minutes, 33 seconds hurt uh overall but uh there is always there is always a you know management 52:42 52 minutes, 42 seconds second level management and third level management which take off take care of it. 52:49 52 minutes, 49 seconds Okay. Has anyone been appointed in his uh retained capacity of heading taxi role he was in? 52:57 52 minutes, 57 seconds Uh uh uh lashar what we did is like uh Mr. Dora was handling some part of Indian business and some part of like US 53:05 53 minutes, 5 seconds business. So we uh we managed with two different heads at this point of time who who are like equally capable and the 53:15 53 minutes, 15 seconds second lineup and that's how we are going right now. uh and I guess like uh we should be able to do good. We will not be having too much of difficulty going forward as well. 53:27 53 minutes, 27 seconds And and Mr. You're always urged us to think the company you know on a longer term not look at quarter not look at 53:34 53 minutes, 34 seconds year but if I just look at our US business from March 22nd to March 26n 53:42 53 minutes, 42 seconds uh I see that um there is a significant divergence from the performance uh which is down around 6% uh on uh on Indian 53:51 53 minutes, 51 seconds rupee while the currency has actually also uh depreciated by 22%. So um how does the management view this uh is it 54:00 54 minutes something which you anticipated or you're happy about or how do you like to measure uh uh or how do you like us to 54:07 54 minutes, 7 seconds look at your US business over a longer period not necessarily a year or two but a slightly longer 54:16 54 minutes, 16 seconds overall we always told you that it is a balanced business a global business it is uh exportdriven business as well as 54:24 54 minutes, 24 seconds local business So look uh you have to keep and look at it in the same way. 54:32 54 minutes, 32 seconds Nothing is changed you know one year uh as I said various things uh takes little 54:40 54 minutes, 40 seconds time to deep root and that is what we are doing right now you know globally 54:46 54 minutes, 46 seconds uh not only in the US market but global markets all over. So it is um it is just 54:55 54 minutes, 55 seconds uh like somebody said when one door closes second some other door opens. 55:02 55 minutes, 2 seconds uh just if I just engage on that further sir uh how how do you like us to look at the US business because that's a 55:10 55 minutes, 10 seconds business where uh it's very dear to you and uh you are putting all your efforts to expand that business and how do you 55:17 55 minutes, 17 seconds think you look at it I mean how do you think we should look at it and how you are looking at it over a longer period I'm not looking at a year but slightly longer 55:25 55 minutes, 25 seconds yeah it's a it's going to be a growth business as usual our business is a growth business and US business, you 55:33 55 minutes, 33 seconds should be looking at long-term steady growth business. Okay. 55:40 55 minutes, 40 seconds Got it. Got it. And and the third question is that uh from you know Sarah your business right I mean how much that 55:47 55 minutes, 47 seconds did contribute for the full year and what has been the yearon-year growth and as a follow up on that business uh I see 55:55 55 minutes, 55 seconds that uh uh the competition is little neuter if I'm if I can uh understand. So can you just uh tell me uh how are you 56:02 56 minutes, 2 seconds thinking about competitive intensity in the Sarasio business? So I think two parts of the question one is what has been the uh contribution of Saratio for 56:10 56 minutes, 10 seconds the full year and uh respect to the last year and and how is the competitive intensity because I understand that one of the competitors is is not selling the product. 56:23 56 minutes, 23 seconds Uh Benny, you want to answer on that one? Mun. Yeah. 56:30 56 minutes, 30 seconds So as Mukun was mentioning I think this is the last time we will be sharing this number uh this is like Sashuk I think we have on YTD growth about 45%. 56:43 56 minutes, 43 seconds And Q is about 54% growth. 56:49 56 minutes, 49 seconds So I think uh you will all appreciate because there is always you know kind of a lot of pressure this is uh created by 56:59 56 minutes, 59 seconds competitive and all that we 57:07 57 minutes, 7 seconds okay uh thank you so much thank you so much sir the next question comes from the line of Mr. Shyan Gatani from SG Securities. 57:18 57 minutes, 18 seconds Please go ahead. 57:20 57 minutes, 20 seconds Hi, good morning sir. I I had a couple of questions. Uh the first one is on the biocatalysis. Uh you know few calls ago 57:28 57 minutes, 28 seconds you had mentioned that there were some trials going on. Uh so just wanted to get a sense of the overall business and any updates on that. 57:42 57 minutes, 42 seconds muk sorry uh I was on mute uh at this point 57:53 57 minutes, 53 seconds of time I would like to say that we are working on few of the products trials are going well uh but won't be able to comment on the exact number right now 58:02 58 minutes, 2 seconds and next year what we are looking at it it's some moderate growth coming from this area got it so any estimate on like when 58:10 58 minutes, 10 seconds these would complete because they've been going on takes as far as I know like 6 to 9 months or there are there are not there are not 58:18 58 minutes, 18 seconds one or two products we are working on many different product uh in some of the products you get some challenges uh but 58:26 58 minutes, 26 seconds I would still say like to go and say that this year we expect some growth coming from this area whenever that will happen that will be the quarter we are 58:35 58 minutes, 35 seconds going to uh put it up as a different category or we would like like to comment on that as of now I would say that this year we expect some growth coming from this area. 58:46 58 minutes, 46 seconds Got it. Got it. That's it. 58:47 58 minutes, 47 seconds Um, keep in mind that this is a very uh th this is very again 58:56 58 minutes, 56 seconds challenging area would I I would say because uh it also depends lot on the government 59:04 59 minutes, 4 seconds government bodies regulations and uh global glo global u competition you know 59:13 59 minutes, 13 seconds so uh changes subprocesses. There are a lot of things lot of factors into this but 59:20 59 minutes, 20 seconds we still is irrespective because of the several different uh product lines and 59:27 59 minutes, 27 seconds trials going on we expect a as nukun says uh moderate growth in this continuous growth on this market. 59:38 59 minutes, 38 seconds Got it. That that's helpful. The second question was on the gross margin. I think uh you alluded there are some extraordinary item this quarter. If you 59:47 59 minutes, 47 seconds could just expand on that uh just trying to understand uh a little more. 59:55 59 minutes, 55 seconds No kaj margin is uh particularly driven by uh 1:00:04 1 hour, 4 seconds you know product mix which the company have and the group have. So over if you see the domestic sales is kind of a uh 1:00:13 1 hour, 13 seconds higher as comp as compared to total consolidated sales which you know in turn sometimes gives us the lesser margin but on an overall basis if you 1:00:21 1 hour, 21 seconds see on a year a portfolio basis the gross margin is kind of you know one percentage down because of product mix only 1:00:29 1 hour, 29 seconds but he's talking about extraordinary no he was asking about some extraordinary item uh I I guess like 1:00:37 1 hour, 37 seconds something was there in last quarter which is not here right now. 1:00:42 1 hour, 42 seconds Last quarter that was there in FI quarter three right? 1:00:47 1 hour, 47 seconds Quarter three we had some exceptional items that was I think one was related to 1:00:54 1 hour, 54 seconds reversal of uh some provision which we were carrying in our books for some litigation matter. So that that has come 1:01:02 1 hour, 1 minute, 2 seconds in our favor. So about I think 16 cr was the reversal and in addition to that we have provided for the uh you know the 1:01:12 1 hour, 1 minute, 12 seconds impact of the labor laws because uh we have in India you have seen that you know new labor laws have enacted so 1:01:20 1 hour, 1 minute, 20 seconds impact of those labor laws on our payroll cost. So that we have taken into account. So this is I think uh 1:01:28 1 hour, 1 minute, 28 seconds pertaining to uh quarter three of uh this year. Okay. 1:01:34 1 hour, 1 minute, 34 seconds So my last question pertains to the R&D center like uh we expected to operationalize in the second half of the 1:01:41 1 hour, 1 minute, 41 seconds year. So what kind of incremental expenses uh are we looking at in terms of percentage of R&D spends in terms of 1:01:50 1 hour, 1 minute, 50 seconds like you know percentage and you know rupees spend and also like what have we already started hiring for that like 1:01:57 1 hour, 1 minute, 57 seconds what is it going to be the capacity uh you know for for that how many people are we looking to hire over there 1:02:08 1 hour, 2 minutes, 8 seconds uh of course the expenses are going to go up But not like uh we will try to maintain between the whatever the 1:02:15 1 hour, 2 minutes, 15 seconds current percentage what we are going up uh because uh it also depends on the function of the sales. Uh in in terms of 1:02:24 1 hour, 2 minutes, 24 seconds persons some persons we already hired some persons we are planning to shift from our existing R&D center. Uh and 1:02:32 1 hour, 2 minutes, 32 seconds some people some persons we are in a process to hire. uh in terms of capacity the capacity in a given time it will 1:02:41 1 hour, 2 minutes, 41 seconds take some more time to really come to the fullest utilization but we intend to increase in the first phase by the three-fold of what current capacity what 1:02:50 1 hour, 2 minutes, 50 seconds we have okay it's in a it's a phase in phase manner you know expansion will be in a phase 1:02:59 1 hour, 2 minutes, 59 seconds out manner got it got it that's helpful so are we looking to close down the other army centers because you said we are moving people. 1:03:07 1 hour, 3 minutes, 7 seconds No, we will not those will those will continue those will continue but at the same time some people will move from here. Uh we will be going with lot of 1:03:16 1 hour, 3 minutes, 16 seconds modern machineries out there so that the people requirement will be lesser but we can get like more higher output out there. 1:03:25 1 hour, 3 minutes, 25 seconds In absolute term the re the R&D revenue expend expenditure is likely to go up by 50 million. 1:03:35 1 hour, 3 minutes, 35 seconds Okay. And capex is definitely this is going on. So that will be again additional I think 50 crores we will be 1:03:42 1 hour, 3 minutes, 42 seconds spending this year. So I think overall capex on R&D will be about 130 million 30 crores sorry 130 crores. 1:03:51 1 hour, 3 minutes, 51 seconds Got it. Got it. 1:03:52 1 hour, 3 minutes, 52 seconds We have already spent 50 we are going to spend during this year. 1:03:56 1 hour, 3 minutes, 56 seconds Got it. Okay. And what would be our uh current utilization? Are we looking to do any kind of capacity expansion? uh uh 1:04:04 1 hour, 4 minutes, 4 seconds in ter like I know we just do incremental uh and we find efficiencies but uh anything as we are increasing 1:04:11 1 hour, 4 minutes, 11 seconds sales uh are we going to need more capacities uh or are we okay with this 1:04:18 1 hour, 4 minutes, 18 seconds uh in the in the main company we'll be taking that call after September as of now we do have a preparation on the on 1:04:28 1 hour, 4 minutes, 28 seconds the ground so that whenever we want to go we can go very quickly rapidly the infrastructure buildup is done. Uh we 1:04:35 1 hour, 4 minutes, 35 seconds may look into the some capacity increment in the one of the subsidiary company this year. So those are the plans as of now. 1:04:46 1 hour, 4 minutes, 46 seconds Got it. That's that's very helpful. 1:04:48 1 hour, 4 minutes, 48 seconds That's all from my end. Thank you and good luck. Thank you. Thank you. 1:04:54 1 hour, 4 minutes, 54 seconds Thank you so much sir. The next question comes from the line of Mr. Rohit Ori from Progressive uh STS please go. 1:05:03 1 hour, 5 minutes, 3 seconds Uh hi team uh good to see the company evolve from a domestic enzyme manufacturer to an integrated uh 1:05:10 1 hour, 5 minutes, 10 seconds speciality biosolution platform. Uh I think uh this is where the alpha lies and uh many congrats on this uh one of the strongest quarter that you all have delivered. 1:05:21 1 hour, 5 minutes, 21 seconds Uh sir I have uh yes yes sir sir I have a few questions u uh while while you're becoming a a 1:05:29 1 hour, 5 minutes, 29 seconds global innovator in this uh biio manufacturing platform uh with certain modes that you have uh and we also see 1:05:36 1 hour, 5 minutes, 36 seconds this small uh CWIP or some sort of expansion that is happening uh if you can take us through that uh this uh uh 1:05:44 1 hour, 5 minutes, 44 seconds fermentation capacity that we have of around 500 uh uh uh uh 500 kind of a 1:05:52 1 hour, 5 minutes, 52 seconds metric cube sorry a meter cube capacity by when do you think that the next round of expansion should come through 1:06:00 1 hour, 6 minutes that's what I said like we might that's what I said like we might look some capacity expansion in the one of our subsidiary company and uh we will take 1:06:10 1 hour, 6 minutes, 10 seconds the call uh in the month of September when we should really increase so that's as of now currently stand uh we do have 1:06:18 1 hour, 6 minutes, 18 seconds infrastructure to increase the capacity increment by 50%. Right away. Okay. So, we'll take the call as we move forward in this year. 1:06:28 1 hour, 6 minutes, 28 seconds Uh Kabra, what would be the uh peak uh revenue that we get from this uh capacity currently? 1:06:35 1 hour, 6 minutes, 35 seconds It's very difficult to say because Rohit, it's like always the product mix, how it's moving, what are the different areas which are moving and as I was 1:06:44 1 hour, 6 minutes, 44 seconds saying like uh there is a constant improvement in the productivity. Uh so it's a it's a lot of blending games. Uh 1:06:51 1 hour, 6 minutes, 51 seconds even like I I mentioned earlier as well like uh this year we could increase some of the products uh output to maintain 1:06:59 1 hour, 6 minutes, 59 seconds the pressure on the pricing. So these are all the blended I mean like it's very difficult to say exact revenue. 1:07:07 1 hour, 7 minutes, 7 seconds Okay. Uh so on the working capital uh we see uh some stress over there uh in the inventory. Is it is it because of the 1:07:15 1 hour, 7 minutes, 15 seconds demand or uh is it some new client that you all are onboarding or maybe just talking because of the pricing in the industry? 1:07:23 1 hour, 7 minutes, 23 seconds It's not only the pricing but it's because of the uncertaintities of supply chain and other things and you never know what will happen tomorrow. So you 1:07:31 1 hour, 7 minutes, 31 seconds don't want to get stock out uh for the raw materials and other areas uh and you should be able to deliver because uh 1:07:40 1 hour, 7 minutes, 40 seconds it's a game of like your logistic delivery. So sometimes you need to build up the capacity build up the inventories 1:07:46 1 hour, 7 minutes, 46 seconds to manage all the changing global environments and on the receivable side uh is it 1:07:54 1 hour, 7 minutes, 54 seconds because of stronger sales or are we giving some higher credit to some of the clients or customers 1:08:00 1 hour, 8 minutes the things are more or less same uh but ra can put some more likes uh on the number I don't see like there is a much 1:08:08 1 hour, 8 minutes, 8 seconds of difference like on the strategy Okay. Uh so on the uh competitive 1:08:15 1 hour, 8 minutes, 15 seconds positioning uh while Rati G also mentioned that this year could be a little bit of a challenging on the international front. Uh how how do you 1:08:23 1 hour, 8 minutes, 23 seconds uh see or what what are the things that generally the customer looks at uh while they are trying to choose uh uh AL over 1:08:32 1 hour, 8 minutes, 32 seconds uh uh noon and or Hamilton. uh uh what are the uh cost advantages that we generally see and why would they prefer 1:08:42 1 hour, 8 minutes, 42 seconds uh us uh while we might compare with some of the European players or maybe some other players in China who could be 1:08:50 1 hour, 8 minutes, 50 seconds uh having better uh margins or maybe defensive margins as compared to us there's like uh the timing is always 1:08:58 1 hour, 8 minutes, 58 seconds challenging it's a very good question the time is always challenging and uh the challenging time always create 1:09:06 1 hour, 9 minutes, 6 seconds some opportunities. Uh I I always feel that the company like us gets more opportunity when the time is more challenging. Uh because that's the time 1:09:14 1 hour, 9 minutes, 14 seconds when every everyone is in like panic that's the only time the people start looking for the alternatives as well. If you are like comfortable pre you don't look into it. Yeah ma'am. 1:09:26 1 hour, 9 minutes, 26 seconds Good. And also one more thing you have to remember is that we are not a 1:09:32 1 hour, 9 minutes, 32 seconds company which is just uh came up in last few years. It has a tremendous track 1:09:38 1 hour, 9 minutes, 38 seconds record of last 30 40 years right. U so that all counts that is because 1:09:46 1 hour, 9 minutes, 46 seconds ultimately people should trust you deliver that you can deliver. 1:09:51 1 hour, 9 minutes, 51 seconds Okay makes sense Rat G. Uh my last two questions uh is uh uh if you can take us through what are the developments which 1:09:58 1 hour, 9 minutes, 58 seconds are happening with uh Staria uh which was recently having some uh corporate developments happening over there. 1:10:06 1 hour, 10 minutes, 6 seconds Well, the it has been just being established uh completely independently 1:10:15 1 hour, 10 minutes, 15 seconds and um I think this will be coming year will be the first year uh for the the SA 1:10:24 1 hour, 10 minutes, 24 seconds as this independent company. Uh the response is pretty good. 1:10:30 1 hour, 10 minutes, 30 seconds Anything on the numbers that you'd like to share on the top line? Yeah, there is nothing not a it is just a starting so 1:10:38 1 hour, 10 minutes, 38 seconds there is not much of a numbers game right now I would say that we are not like really looking for the numbers but it's more like a strategical fit as well 1:10:47 1 hour, 10 minutes, 47 seconds uh to expand the US market as well right so uh it's more like a strategy rather than the exactly number and we are not 1:10:55 1 hour, 10 minutes, 55 seconds really looking for a two big numbers to come up in the uh uh in just near terms 1:11:03 1 hour, 11 minutes, 3 seconds okay last And uh if if you have the number handy maybe an approximate number uh to the revenue which could be coming 1:11:10 1 hour, 11 minutes, 10 seconds from the products which are launched in the last 3 years or so. 1:11:17 1 hour, 11 minutes, 17 seconds Ah good questions we will have to calculate roy but yeah there will be some good as well. 1:11:24 1 hour, 11 minutes, 24 seconds Yeah because we don't like separate it out that way. Yeah, 1:11:29 1 hour, 11 minutes, 29 seconds it is it is not Yeah, it is not like um as you know we we have do a lot of 1:11:37 1 hour, 11 minutes, 37 seconds combination products lot of say very u proprietary products and it's not 1:11:44 1 hour, 11 minutes, 44 seconds possible at least sometimes to just say this is the this is more or this is less kind of thing. We have a broad range of 1:11:54 1 hour, 11 minutes, 54 seconds enzymes and uh they have their own function 1:12:00 1 hour, 12 minutes u and it is just create a very uh unique formulation for the industry 1:12:08 1 hour, 12 minutes, 8 seconds rat uh ballpark number maybe like uh 10% or maybe 15%. That is what I was looking at. Well, the growth you can see 1:12:16 1 hour, 12 minutes, 16 seconds whenever you you take out uh one individual product which you all know and rest of them is all like that you 1:12:25 1 hour, 12 minutes, 25 seconds know we are we are very much as a as a what's what you call it proprietary enzyme product kind of company. 1:12:36 1 hour, 12 minutes, 36 seconds Okay Rati G Kab thanks for answering my question. Thanks a lot. Oh pleasure. Thank you. Anytime. 1:12:44 1 hour, 12 minutes, 44 seconds Thank you so much sir. The next question comes from the line of Mr. Ashish Tavka from UTI. Yeah. Yeah. Thanks for the opportunity. 1:12:52 1 hour, 12 minutes, 52 seconds Any update on where we are in terms of uh the US tariffs discussion with the customers? Are they still on the back foot? Uh what was the scene there? 1:13:03 1 hour, 13 minutes, 3 seconds Uh Ashish, thank you for asking that question. uh you know there is every day 1:13:10 1 hour, 13 minutes, 10 seconds a new drama we initiated uh the customers are always uh asking when they 1:13:18 1 hour, 13 minutes, 18 seconds can get the refund back and we are asking the government when we can get the refund back and so on so forth so uh 1:13:27 1 hour, 13 minutes, 27 seconds let's play the tune and see what happens you know uh whether the congress in US congress acts on it or don't act on it 1:13:36 1 hour, 13 minutes, 36 seconds Uh but there is a lot of drama going on with the court uh and you know 1:13:43 1 hour, 13 minutes, 43 seconds politicians and the business. Uh it's it's a people more or less understood 1:13:51 1 hour, 13 minutes, 51 seconds that there is that is uh there is a reality of this and prices in the marketplace is going up. Inflation is 1:14:00 1 hour, 14 minutes really heating up here also in the US not only in energy but all the sector food sectors uh supplement the sector 1:14:08 1 hour, 14 minutes, 8 seconds supply all supply lines. Okay. Uh we just have a challenge how we can pass on this cost to the customers. 1:14:19 1 hour, 14 minutes, 19 seconds So as of now we are still absorbing uh 10 odd percentage cost right from the tariffs. 1:14:25 1 hour, 14 minutes, 25 seconds Yeah to a certain extent. Yes. and um it is a gradual process to pass it on um and to explain. 1:14:38 1 hour, 14 minutes, 38 seconds So that that's a process but you cannot just pass on everything to the customer and lose the market share. 1:14:47 1 hour, 14 minutes, 47 seconds But at 18% tarif we would not be very um uncompetitive right uh versus the competition. 1:14:57 1 hour, 14 minutes, 57 seconds No, it's a competitive market. It is uh you know when you get into ingredients and when their cost goes up the market 1:15:05 1 hour, 15 minutes, 5 seconds is very different you know how many times they have to um increase that to make their sales is and then that 1:15:13 1 hour, 15 minutes, 13 seconds becomes whether the consumer can afford it or not is another issue which they they have to face and what will impact 1:15:21 1 hour, 15 minutes, 21 seconds for them because it's a big market no so yeah Great. And I say lastly on this 1:15:29 1 hour, 15 minutes, 29 seconds chemistry is uh since we are also on the peptide enzymes and peptide design you know finding lot of relevance globally 1:15:38 1 hour, 15 minutes, 38 seconds um what are the opportunities that we are seeing in these chemistries and if you could help us highlight what are the new chemistries that you guys are targeting? 1:15:47 1 hour, 15 minutes, 47 seconds It's a very interesting opportunities. 1:15:49 1 hour, 15 minutes, 49 seconds We will try to explore it also. Uh since we are in a protein area uh and 1:15:58 1 hour, 15 minutes, 58 seconds enzymes, proteins go hand in hand and peptides are also part of it. So uh very 1:16:06 1 hour, 16 minutes, 6 seconds interesting areas and we are exploring exploring all various different possibilities. 1:16:14 1 hour, 16 minutes, 14 seconds Great. Uh thanks and all the best. Thank you. 1:16:19 1 hour, 16 minutes, 19 seconds Thank you so much sir. The next question comes from the line of Mr. Omana from Banyan Advisor. Please go ahead. 1:16:26 1 hour, 16 minutes, 26 seconds Uh hi sir. Congrats on the great performance. Am I audible? Yes. Yes sir. 1:16:33 1 hour, 16 minutes, 33 seconds Yeah. Great. Great. Uh sir I have two questions. Uh sir first was uh if you could give the break up between uh India and international business in the uh 1:16:42 1 hour, 16 minutes, 42 seconds India and international business uh in the UK segment. Okay. 1:16:50 1 hour, 16 minutes, 50 seconds This is a question. 1:16:53 1 hour, 16 minutes, 53 seconds Yeah. The break up of the India and international. Yes. Yes. 1:17:04 1 hour, 17 minutes, 4 seconds Roa Gaming. Yes. Yes, I'm giving the information. 1:17:12 1 hour, 17 minutes, 12 seconds Uh sir, meanwhile, the second question was uh if you can help me understand was there any one-time component in the uh 1:17:20 1 hour, 17 minutes, 20 seconds India revenues of Q4 by any sort of pre-booking or pre- buying by uh customers or something? domestically. 1:17:28 1 hour, 17 minutes, 28 seconds No, there is no that kind of revenue. It's not a one time revenue. 1:17:33 1 hour, 17 minutes, 33 seconds Okay. Sure, sir. Sure, sir. Uh and sir, uh one uh one last question uh was that uh with with our India R&D coming in, uh 1:17:42 1 hour, 17 minutes, 42 seconds would we be freeing up some capacity in Ebox to make it more customerf facing or would EBOX continue doing R&D for us? 1:17:52 1 hour, 17 minutes, 52 seconds Ewok will continue doing R&D which Yeah. 1:17:58 1 hour, 17 minutes, 58 seconds Okay. Okay. Sure sir. Sir 32% of our business has come from India. 1:18:07 1 hour, 18 minutes, 7 seconds I'm talking about human nutrition business and of our total revenue 32% 1:18:14 1 hour, 18 minutes, 14 seconds from India domestic market and 30% has come from international market. So total 1:18:21 1 hour, 18 minutes, 21 seconds is 63% contribution of human nutrition business in our total revenue for FI26. 1:18:28 1 hour, 18 minutes, 28 seconds It's a balance. Okay. Both. 1:18:31 1 hour, 18 minutes, 31 seconds Absolutely. Absolutely sir. So it's 32% and uh Yeah. Got it. Got it. 1:18:39 1 hour, 18 minutes, 39 seconds Yes. Yes. Yes. Got it. Thank you. Thank you so much, sir. Have a great Yeah. Thank you. Thank you so much. 1:18:46 1 hour, 18 minutes, 46 seconds Thank you so much, sir. The next question comes from the line of Mr. Kithan Shada and Industry please do. 1:18:54 1 hour, 18 minutes, 54 seconds Yeah. Um thank you so much for the opportunity and u sir congratulations on a good performance for the whole year. 1:18:59 1 hour, 18 minutes, 59 seconds Uh indeed a good uh uh growth that we have achieved. Sir my my first question is with respect to the patents the numbers that you publish uh every 1:19:08 1 hour, 19 minutes, 8 seconds quarter uh in your presentation I saw that the number has gone down from 17 to 15. Could you just throw some light on 1:19:15 1 hour, 19 minutes, 15 seconds that sir like why has the number of patients reduced? 1:19:23 1 hour, 19 minutes, 23 seconds So uh some of the patents like which were not giving the revenue or we thought that is not significant we have 1:19:31 1 hour, 19 minutes, 31 seconds cut down from the list. Uh but we filed two or three I need to see the exact numbers which we got granted this this 1:19:39 1 hour, 19 minutes, 39 seconds year as well. uh but few of the old patents which we thought are not like uh making uh 1:19:48 1 hour, 19 minutes, 48 seconds uh contributing to the revenue we are not focusing on them unders unders thank you so much for that 1:19:57 1 hour, 19 minutes, 57 seconds and my other question is sir um when I look at your uh segmental performance of course you know it's it's a very good 1:20:04 1 hour, 20 minutes, 4 seconds growth on all uh uh segments human nutrition animal nutrition so and so forth but when we look be geographic this thing and of course the US market 1:20:13 1 hour, 20 minutes, 13 seconds has been much discussed in the call earlier but my question is referred to a bit long-term going in the past even if 1:20:20 1 hour, 20 minutes, 20 seconds I see four or five years right from starting 2021 onwards our US business has not kind of you know grown 1:20:28 1 hour, 20 minutes, 28 seconds significantly so if you could help us understand what kind of business are we doing there and uh you've of course mentioned about the competitive 1:20:37 1 hour, 20 minutes, 37 seconds landscape being a bit tougher there so if you throw some more light on what kind of business it is and what kind of challenges that we face that would help 1:20:44 1 hour, 20 minutes, 44 seconds us understand the business the US business better. 1:20:49 1 hour, 20 minutes, 49 seconds Yeah, most of our US business is in neutrautical market. We do we do um 1:20:56 1 hour, 20 minutes, 56 seconds various different industrial segments in food area uh and so on. But most of the 1:21:03 1 hour, 21 minutes, 3 seconds business is in Indrautical market. Okay. and neutrautical market is under tremendous churn right now uh in 1:21:13 1 hour, 21 minutes, 13 seconds last few years uh changing the face of it and 1:21:20 1 hour, 21 minutes, 20 seconds changing the habits of the people. So as you can see last few years 1:21:27 1 hour, 21 minutes, 27 seconds uh now probiotics is one of the major market segment. 1:21:37 1 hour, 21 minutes, 37 seconds Yeah. US markets always are changing with the new habits and then rest of the 1:21:43 1 hour, 21 minutes, 43 seconds global catchup is there. Uh and this is always going to be like that but 1:21:51 1 hour, 21 minutes, 51 seconds market is growing in various different segments and we need to catch up that rising trend and that's what we're doing. 1:22:02 1 hour, 22 minutes, 2 seconds Right. Right. So my next question would also with respect to probiotics which you just uh touched upon if I look at the presentation uh you've given a 1:22:10 1 hour, 22 minutes, 10 seconds segmental uh revenue also for the probiotics which have significantly reduced from last year. So uh again like 1:22:17 1 hour, 22 minutes, 17 seconds you know the help us understand while we see probiotics as a growth segment for us and our revenue contribution in that 1:22:25 1 hour, 22 minutes, 25 seconds segment is a very small one and the addressable market uh is is a significant one. Uh 1:22:31 1 hour, 22 minutes, 31 seconds Kath uh Kanj what what 1:22:39 1 hour, 22 minutes, 39 seconds Kanj what happened there is like what we are reporting the revenues or the individ what we used to or what we are currently 1:22:48 1 hour, 22 minutes, 48 seconds as well like reporting the revenues are the individual which was like a kind of a uh what I would say is a commodity 1:22:56 1 hour, 22 minutes, 56 seconds market. Now the approach is changed and we are like making lot of different solutions using the probiotics which are not really reflecting into the exact 1:23:05 1 hour, 23 minutes, 5 seconds numbers because it is very difficult to segregate them because it's uh uh it's always being the not utilized as an 1:23:12 1 hour, 23 minutes, 12 seconds individual product. So the probiotics is like uh used very widely in a lot of like US formulations but the uh you won't be able to separate it out. 1:23:24 1 hour, 23 minutes, 24 seconds Exactly. Uh the numbers what you are looking at it is going down or going up is the individual probiotics what you are selling and those are like more like a commodity segments. 1:23:35 1 hour, 23 minutes, 35 seconds But I can assure you that our our probiotic business is very strong. 1:23:42 1 hour, 23 minutes, 42 seconds Sure. Sure. shortly and we thank you uh for asking all questions and uh wish you all the best. Thank you so much. Thank you. 1:23:51 1 hour, 23 minutes, 51 seconds Thank you so much sir. There are no more further questions sir. Now I hand over the floor to Mr. Onak Sharma for closing comments. 1:24:02 1 hour, 24 minutes, 2 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 updates. 1:24:11 1 hour, 24 minutes, 11 seconds I request you all to kindly send in your further questions that may remain unanswered. 1:24:17 1 hour, 24 minutes, 17 seconds The audio recording and the transcript of this call will be uploaded uploaded on our website in the due course. 1:24:23 1 hour, 24 minutes, 23 seconds Looking forward to host you all in the next quarter. Till then stay healthy, stay safe. Thank you. Thank you. Thank you. 1:24:30 1 hour, 24 minutes, 30 seconds Thank you everyone. Thank you everybody. 1:24:33 1 hour, 24 minutes, 33 seconds Thank you sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using dosabas conference call service. You may disconnect your lines now. Thank you and have a pleasant day.