Akums Drugs and Pharmaceuticals Limited — Q1 FY26

Akums Drugs and Pharmaceuticals Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=GFnK6X8DBWc Published: 8 months ago

0:00 Ladies and gentlemen, good day and welcome to the Atams Drugs and Pharmaceuticals Limited Q1 FI26 earnings 0:08 8 seconds conference call hosted by Ambbit Capital Private Limited. As a reminder, all participant lines will be in the 0:15 15 seconds listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the 0:23 23 seconds conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference has been recorded. I now 0:32 32 seconds hand the conference over to Mr. Prashant Ner from Ambid Capital Private Limited. Thank you and over to you sir. 0:42 42 seconds Uh thank you Anushka. Uh good afternoon everyone and welcome to the Q1 FY26 earnings call for Akums Drugs and 0:49 49 seconds Pharmaceuticals. Uh from the management uh we have with us today uh Mr. Sanjep Jen managing director, Mr. Sep Jen, 0:57 57 seconds managing director, Mr. Mr. Sumit Sud CFO, Mr. Tahil Maheshwari, head strategy and Mr. Ankit J who handles investor 1:05 1 minute, 5 seconds relations. I now hand over the call to Ankit to take it forward. Uh over to you Ankit. Thank you Prashad for the introduction. 1:13 1 minute, 13 seconds Good afternoon everyone. Welcome to AOM's Q1 FI26 learning calls. I'm Ankit. 1:18 1 minute, 18 seconds Let me draw your attention to the fact that on this call our discussion might include certain forward-looking statements which are predictions or projections of future events. Our 1:26 1 minute, 26 seconds business faces several risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied in such 1:33 1 minute, 33 seconds statements. At EAMS, we do not undertake any obligation to publicly update any forward-looking statements whether as a result of new confirmation, future 1:41 1 minute, 41 seconds events or otherwise. Having said that, I hope you have all gone through our investor presentation and financial results that we posted on Friday. I would now like to hand it over to our 1:49 1 minute, 49 seconds managing director, Mr. Fib Jan, to discuss our performance. Thank you. 1:54 1 minute, 54 seconds Thank you Anki G and welcome everyone to our Q1 FY26 earning call. This date marks just over one year since we began 2:03 2 minutes, 3 seconds our journey as a listed company. We continue to work towards strengthening the organization with a focus on long-term growth. 2:12 2 minutes, 12 seconds I will commence with a brief review of the industry environment before sharing perspective on the business. The first quarter of FY26 continued to see tapid 2:22 2 minutes, 22 seconds volume growth with industry volume growth of below.5% and IPM growth being driven largely by 2:29 2 minutes, 29 seconds price growth. The weakness seen in API pricing also continues. On an average the API prices have declined 10 to 12% 2:38 2 minutes, 38 seconds in the last 12 months. However, a comes continues to force ahead and maintain its leadership position in the domestic 2:47 2 minutes, 47 seconds CDMO industry despite the handwids and long-term growth uh perspectives remain intact in Q1. AOMS reported with growth in both revenues and profitability. 2:58 2 minutes, 58 seconds R&D remains the backbone of the company. 3:01 3 minutes, 1 second We achieved the milestone of commulative 1,000 DCGI approvals for this group uh in Q1 FY26. 3:08 3 minutes, 8 seconds During the quarter we received 27 DCGI approvals. This is significant improvements as compared to 31 approvals we received during the entire last year. 3:18 3 minutes, 18 seconds ECGI approvals are new formulations uh launches in India which helps to improve our product mix and offer better 3:26 3 minutes, 26 seconds margins. As the competition uh is limited during the year we received DCGI 3:32 3 minutes, 32 seconds approvals for uh trellogin tablet, relix 3:38 3 minutes, 38 seconds tablet, dapagly plus lengthin plus metformin tablets uh nefitifine cream 3:46 3 minutes, 46 seconds including others. We were also granted one patent this quarter for our niche formulation of tablet in tablet of 3:54 3 minutes, 54 seconds doxyamine and pyrooxin for management of nausea and vomiting during pregnancy. 4:00 4 minutes Additionally, we filed 24 new patent this quarter in our CDMO business. We further commercialized triple layer 4:07 4 minutes, 7 seconds tablet for the first time this quarter and novel formulation to improve patients compliance. 4:14 4 minutes, 14 seconds We continue to take steps to become a global CDMMO. We received approvals of our first European dosier approval for 4:23 4 minutes, 23 seconds river oxyen a USD 15 billion plus market globally. We also filed our first 4:29 4 minutes, 29 seconds doseier in Switzerland for depagin plus combination. We received the Envisa Brazil approval for the for our 4:37 4 minutes, 37 seconds injectable plant three and GMP Russia for our hormone plant four. The progress of our European contact continues to be 4:46 4 minutes, 46 seconds on track. This includes product development, scale up, plant upgradation. The European GMP audit for 4:52 4 minutes, 52 seconds the plant is extracted this quarter. We will begin commercial supplies from April 27. As informed during the last 5:01 5 minutes, 1 second call, AOMS has received 100 million euro as part of part consideration for the European contract this quarter. 5:08 5 minutes, 8 seconds Consequently, our cash surplus stands around at 1500 acre cr. The strong liquidity position provides a robust 5:16 5 minutes, 16 seconds foundation for AUMs to strategically scale up its business operations through both organic growth initiatives and 5:24 5 minutes, 24 seconds inorganic opportunities. Our recent capex on newer facilities have started to re to ramp up. We are gaining 5:32 5 minutes, 32 seconds traction on our dedicated panom facility as well as our second dedicated injectable facility. Our budy facility 5:40 5 minutes, 40 seconds will commence commercial supplies of liquid this quarter in H2. We will commercialize oncology product from this 5:47 5 minutes, 47 seconds site and Q1 next year we will start steroidal block. We strengthened our leadership team this quarter with 5:55 5 minutes, 55 seconds addition of senior executives in IT finance. We are also taking multiple digitalization uh initiatives across HR, 6:04 6 minutes, 4 seconds R&D, quality and other functions. Coming to quarter, while CDMMO volumes grew faster than the market, uh they were 6:12 6 minutes, 12 seconds modest at 1% driven by continued slowdown in the overall industry. 6:17 6 minutes, 17 seconds Overall CDMO revenues grew by 4% despite a 2.5% impact of lower API prices. The growth was led by better product mix, a 6:26 6 minutes, 26 seconds test amount of our strong R&D offerings, operating margins remaining healthy at 14.7%. 6:33 6 minutes, 33 seconds We continues to aggressively work on turning around our API business. The API losses reduced by 50% compared to Q1 6:42 6 minutes, 42 seconds last year. We are on track to file 3 C doier over the next 12 to 15 months. The CP filing for separoxy exit is on track. 6:51 6 minutes, 51 seconds validation has uh been completed for the CP filing. Sephiroxim exodus validation has also been completed for Brazil 7:00 7 minutes filing. During the quarter we mark our entry in the uh Nigerian market and civil foreign APIs 7:07 7 minutes, 7 seconds with Cphelos foreign API. Our domestic branded formulation despite the weaker growth in the quarter is expected to continue the healthy growth trend backed 7:16 7 minutes, 16 seconds by an attractive portfolio focused on chronic treatments across gynecology and cardio diabetics. We continue to invest 7:24 7 minutes, 24 seconds in enhancing field force productivity and expand reach to specialist in keeping with our growth aspirations in 7:32 7 minutes, 32 seconds the international rendered business. We continues to build capabilities across our focus market. We received 20 new 7:40 7 minutes, 40 seconds dosier approvals this quarter. This is a focus segment for this group. The consolidation in the trade generic 7:48 7 minutes, 48 seconds segment continues as we are going we are doing prudent efforts to bring down the losses. Let me turn attention to our 7:55 7 minutes, 55 seconds performance. Now we saw overall incoming growth at 2.5% during the quarter year 8:02 8 minutes, 2 seconds on year. Revenue growth in CDMO came in at 4% yearonear resulting in revenue of 8:10 8 minutes, 10 seconds 813 cr. Domestic branded formulation have shown 3.4% year-on-year growth to 8:16 8 minutes, 16 seconds rupees 107 cr. International branded formulation showed 3.8% year-on-year 8:23 8 minutes, 23 seconds growth to 23 cr. Total ABIT improved 19% yearonear while operating ABIT improved 4% driven 8:32 8 minutes, 32 seconds by better gross margins. Looking ahead, we remain focused on strengthening our CDMO leadership, scaling high value 8:39 8 minutes, 39 seconds capabilities and driving operational excellence backed by a strong pipeline and prudent cap uh capital allocation. 8:47 8 minutes, 47 seconds We are well positioned to deliver sustainable and profitable growth in the year ahead. With that I would like to 8:54 8 minutes, 54 seconds hand over to our CFO Mr. Sumit Sud for the discussion on financials. Uh Shiri Sumi Suji. Thank you Sundep G for the detailed uh explanation on the business. 9:06 9 minutes, 6 seconds Uh now good afternoon ladies and gentlemen. I'll take you through the financial performance of the company and the highlights for 30th June. Our total 9:15 9 minutes, 15 seconds income stood at,51 crores an increase of 2.4% 4% yearonear 9:22 9 minutes, 22 seconds which and a decrease of 2.1% quarter on quarter. During the quarter we rationalize our presence in the API and 9:30 9 minutes, 30 seconds train generic segment leading to a reduction in revenue in these segments. 9:35 9 minutes, 35 seconds The reported aida for the quarter was 156 crores an increase of 19% yearon-year and 40% quarteron quarter. 9:46 9 minutes, 46 seconds margin were stood at 14.8% expanding 28 basis points and from year-on-year 9:57 9 minutes, 57 seconds basis and 443 basis point on quarteronquarter basis. If you look at the AITA without the other income which 10:04 10 minutes, 4 seconds is on account of interest income that the company had on the amount Sundep G just mentioned which was our net 10:12 10 minutes, 12 seconds surplus. uh the AITA stood at 129 cr an increase of 4% 10:20 10 minutes, 20 seconds and a 37% growth which is on quarteronquarter basis. So the adjusted a bit margins were at 12.6%. 10:32 10 minutes, 32 seconds Overall the adjusted PAT stood at 65 cr and increase of 13% yearonear and an 10:39 10 minutes, 39 seconds increase of 48% quarter on quarter. I will now take you to the segment wise financial performance and if you 10:47 10 minutes, 47 seconds remember we' broken this up into five segments and that is where the CDMO the branded formulation exports trade 10:54 10 minutes, 54 seconds generic and API the CDMO revenue stood at 813 crores an increase of 4% 11:01 11 minutes, 1 second yearonear and a decrease of 3% quarter on quarter revenue remains modest due to 11:08 11 minutes, 8 seconds continued decline in API prices a bit for the quarter for the CDMO business was 119 cr a decrease of 1.4% 4% year on 11:17 11 minutes, 17 seconds year and 35% an increase of 35% quarteron quarter the 11:26 11 minutes, 26 seconds company was able to maintain the AITA margins of 14.7 uh% driven by improved product mix 11:34 11 minutes, 34 seconds domestic branded for formulation if we look at the details uh revenue stood at 107 crores an increase of 3.4% 4% 11:42 11 minutes, 42 seconds yearonear and 3.7% quarteron quarter. Aida for the 11:50 11 minutes, 50 seconds quarter was 16 crores an increase of 18% yearonear and a decrease of 29% 11:56 11 minutes, 56 seconds quarteron quarter. Overall aida margin for the year is expected to remain similar to last year at around 18%. 12:06 12 minutes, 6 seconds International branded formulation the revenue stood at 35 growth an increase of 2.4%. 4% year on year and a decrease 12:14 12 minutes, 14 seconds of 12%. Despite the weaker growth, we continue to expect high lean growth in 12:21 12 minutes, 21 seconds this segment for the full year. AITA for the quarter stood at 8 crores, an increase of 8% yearon year and a decrease of 8% quarteron quarter. 12:32 12 minutes, 32 seconds AITA margins remain healthy at 23%. 12:36 12 minutes, 36 seconds The revenue for the API business stood at 45 cr a decrease of 35% yearon year 12:43 12 minutes, 43 seconds and 10% quarter on quarter. As mentioned in the previous quarter we are keeping our focus on only the few molecules with 12:53 12 minutes, 53 seconds higher gross margins. EITA for the quarter stood at minus 6 crores compared to 12 crores which was in the last quarter. 13:06 13 minutes, 6 seconds We continue to work on cost optimization. 13:09 13 minutes, 9 seconds Trade generic revenue stood at 23 cr a decrease of 21% yearonear and an increase of 4% quarter on quarter. 13:18 13 minutes, 18 seconds As mentioned earlier our focus is on rationalizing the underperforming units while retaining the profit making once. 13:25 13 minutes, 25 seconds EITA for the quarter stood at 5 crores negative as we continue to take certain provisions in the segment. Our current 13:33 13 minutes, 33 seconds exposure on inventory and receivables is at 50 54 crores and our working capital investment is at 18 crores. 13:42 13 minutes, 42 seconds Our balance sheet is very healthy as you would have all seen. Uh we have a cash surplus of uh aspention of 1518 crores. 13:52 13 minutes, 52 seconds We had a uh positive free cash flow of 935 crores which was partly on account of the money we received from the EU contract. 14:03 14 minutes, 3 seconds Overall the uh business continues to remain strong supported by solid CMO 14:10 14 minutes, 10 seconds segment a promising pipeline and and as I mentioned the healthy financial position. From this from our side we 14:18 14 minutes, 18 seconds conclude the financial highlights for the quarter. We would request uh to open the forum for question and answer 14:27 14 minutes, 27 seconds session by the moderator. Thank you. 14:33 14 minutes, 33 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 14:40 14 minutes, 40 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 14:47 14 minutes, 47 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will 14:55 14 minutes, 55 seconds wait for a moment while the question cue assembles. 15:02 15 minutes, 2 seconds We take the first question from the line of Rahan Sayyad from three asset managers. Please proceed. 15:10 15 minutes, 10 seconds Uh good afternoon to the team and thank you for giving the opportunity. So I want just uh two clarification on a few 15:17 15 minutes, 17 seconds questions. Uh first on the EU afterwards, right? Uh am I audible right? 15:24 15 minutes, 24 seconds Okay. Yes. Your voice is not very clear. Uh now sir, my audible clear. 15:32 15 minutes, 32 seconds Yes. We would request you to speak slightly slowly so we can get you. 15:37 15 minutes, 37 seconds Sure. Sure. So you have mentioned receiving the first P2 approval for 15:43 15 minutes, 43 seconds rework X7 and filing a W combination in Swan. So could you share the specific 15:51 15 minutes, 51 seconds revenue potential from this launch over the next three years? How the commercialization looks beyond? 16:00 16 minutes Sure. So right. So should I go question by question or do you wish to shoot up the second one as 16:09 16 minutes, 9 seconds uh as a can I can I add my second question also? 16:14 16 minutes, 14 seconds Yeah. So my second question is on the R&D side on the R&Ds has a diver portfolio of radio dosage which two of 16:23 16 minutes, 23 seconds so which two or three technologies do you expect will see the strongest customer adoption in the next going forward? 16:32 16 minutes, 32 seconds So on the on the European doses so as we have a strong pipeline of over 4,000 molecules right uh formulations in India 16:41 16 minutes, 41 seconds we have started building a pipeline for the European market. So as we speak today we have over 15 products which are in various uh phases of pipeline right 16:50 16 minutes, 50 seconds the first one which was of river oxaban uh has got approval uh hopefully this calendar itself we should be able to 16:58 16 minutes, 58 seconds commence the commercial supplies of that order as well right um uh this is as you know we don't have still have a a field 17:05 17 minutes, 5 seconds force in Europe right so this is still based upon large companies or large distributors or players who participate into regional or national tenders to get 17:14 17 minutes, 14 seconds us the order right so I cannot really put down a uh a number of what will be the overall size but river oxaban which is alo is a is a large molecule globally 17:23 17 minutes, 23 seconds right uh so we expect it to continue dapagly again serves a large market in the diabetes segment and uh its 17:31 17 minutes, 31 seconds combination along with metformin is something we will file we have filed and we'll get approval soon similarly we have multiple products in tablets 17:40 17 minutes, 40 seconds hormones liquids which are under various phases this uh of development and we'll get five subsequently. So uh as you 17:47 17 minutes, 47 seconds would understand from our uh uh initiative that Europe across our own brands and across CDMO is a key focus 17:54 17 minutes, 54 seconds for the group over the next 5 years right. So that is that is there and apart from just apart from Europe uh we 18:02 18 minutes, 2 seconds have also received the N visa approval for Brazil uh as well as GMP approval from Russia. So these are the additional geographies we are targeting. 18:11 18 minutes, 11 seconds Okay. Right on the on the R&D technologies which you say. So so honestly this is on the molecule and not 18:19 18 minutes, 19 seconds necessarily on the technologies. So while we have technologies which are almost 20 25 technologies which we have inhouse which help us to get the product 18:28 18 minutes, 28 seconds faster to the market. So these are our platform technologies uh right um and help us build doses form. So for example uh this year we commercialized the 18:36 18 minutes, 36 seconds triple tablets triple layer tablets right. Uh so uh as as you would uh uh uh remember from our annual presentation of 18:45 18 minutes, 45 seconds FY25 we really uh portrayed that a niche formulation the share of a niche formulation is growing compared to the 18:53 18 minutes, 53 seconds simple uh dosage forms right so the whole idea of getting technologies and R&D is how can we increase the share into the niche dosage forms which helps 19:01 19 minutes, 1 second us attract customers retain customers and deliver a better margin profile right now. Oh, okay. Okay. So, thank you 19:11 19 minutes, 11 seconds for your clarification and good luck for your Thank you. 19:17 19 minutes, 17 seconds Thank you. Before we proceed with the next question, a reminder to the participants in order to ask a question, 19:24 19 minutes, 24 seconds please press star and one on their touchstone telephone. We take the next question from the line of Vive Agarwal from City Group. Please proceed. 19:35 19 minutes, 35 seconds Yeah, thanks for the question. uh first question is uh related to CDMO business right so the growth was again muted around 4 5% kind of thing so how to look 19:44 19 minutes, 44 seconds at uh fular growth in this particular segment and uh what are the trends uh as far as the API pricing is concerned on 19:51 19 minutes, 51 seconds the overall industry volumes are concerned actually you can highlight thank you sure uh big hi uh so two things I think 20:01 20 minutes, 1 second one is you're talking on the pricing of the API so API pricing continues to remain soft. So right so what we also 20:08 20 minutes, 8 seconds mentioned uh that what we did was we looked at our large buying APIs the top 200 or 80 and saw what really is the 20:15 20 minutes, 15 seconds trend and what we saw was a double digit decline in the last 12 months only on top of it add the decline which happened the year before right so that continues 20:24 20 minutes, 24 seconds to remain soft um on the full year uh guidance for this uh CDMO business right well still have 9 months to work hard on 20:32 20 minutes, 32 seconds this I think what the guidance which we initially uh gave gave was a mid to high singledigit growth in the top line in 20:39 20 minutes, 39 seconds the CDMO business. Right? what we observed in the Q1 was a 2 and a half% decline in our API pricing let's see 20:47 20 minutes, 47 seconds growth right so while uh the growth is still achievable I would rather say from mid to high we uh would target a mid 20:55 20 minutes, 55 seconds growth as of now mid single digit growth as of now understood thank you and uh we also seen a marginally dip as far as the margins 21:04 21 minutes, 4 seconds are concerned right 15.5 to around 14.7% so what has led to this so I think this is uh quarterly I Think 21:11 21 minutes, 11 seconds uh blip as we also mentioned earlier this business is uh really looked at at an annual level. So a 14 to 15% margin 21:18 21 minutes, 18 seconds is what we uh usually deliver in this business. That should uh be the uh zip code in which we operate. 21:26 21 minutes, 26 seconds Thank just one more question as far as the volumes are concerned uh next year we will see in India right launch of uh uh generic semoglutide by multiple 21:34 21 minutes, 34 seconds players. So how you are placed uh in this particular segment? Are you expecting any kind of uh volume pickup 21:42 21 minutes, 42 seconds next year on account of this uh product launch etc? You can throw some light. Sure. So, so one is on simaglutide. 21:50 21 minutes, 50 seconds Seemaglutide really is a value not a volumedriven product. Right. So, can simlutide really pull up the volumes in the market? Uh no. Right. Uh the volume 21:59 21 minutes, 59 seconds will still be driven by mass therapies on our in this segment. That is not really the core segment we are focusing on. 22:08 22 minutes, 8 seconds Thank you. Thank you sir. That's not my Thank you. 22:15 22 minutes, 15 seconds The next question is from the line of Madha from Fidelity. Please proceed. Uh hi good morning. Uh good afternoon. 22:24 22 minutes, 24 seconds My first question was on the uh CDMO business margins uh given that API prices you know have been coming down that obviously impacts the topline 22:32 22 minutes, 32 seconds growth for us which you're saying could be mixed single digit growth this year. 22:36 22 minutes, 36 seconds uh but if API prices are lower shouldn't the percent margins for us start moving higher just mathematically is that the right way to think about the margin 22:44 22 minutes, 44 seconds profile and uh yeah how that could play so mad so the so the margins that we get uh in this business are a cost plus on a 22:51 22 minutes, 51 seconds percent basis right so for example if on a certain doses form I make a 15% margin that 15% stays right so if the API 22:59 22 minutes, 59 seconds prices move from 100 to let's say 90 today my 15% would remain right but that's not how the maths work at the factory right we have fixed expenses 23:08 23 minutes, 8 seconds across power fuel manpower and so on right so the constant effort is how do we increase our product mix wherein 23:15 23 minutes, 15 seconds instead of 15% can I have a product which commands 18% uh of margins right uh so that my net margin uh improves and 23:23 23 minutes, 23 seconds secondly around the cost reduction and the optimization initiatives which are ongoing process uh across the group of 23:30 23 minutes, 30 seconds how do we sustain our margins M so sorry your guidance for 26 how much? 23:39 23 minutes, 39 seconds So as I said earlier replying to Vive was uh given the API prices what we saw in Q1 declined by almost 2 and a half% 23:48 23 minutes, 48 seconds and it still looks very soft as we speak in August they still continue to slide right so we are targeting growth 23:56 23 minutes, 56 seconds obviously growth should come uh but should be in single digits only 24:02 24 minutes, 2 seconds okay okay got it uh then the second question was on the export business um So in the presentation when you have 24:10 24 minutes, 10 seconds given international branded formulation of 35 cr uh that's basically the export CDMO business or the export CDMO 24:18 24 minutes, 18 seconds business is captured in the CDMO segment itself right where does our revenue capture today export so CDMO is anything we do in 24:25 24 minutes, 25 seconds India or exports so so the international branded is what we classify as a segment so branded is our brands 24:33 24 minutes, 33 seconds correct okay so what we're doing as a CDMO in Europe today that's part of the CDMO segment 24:41 24 minutes, 41 seconds correct we still have to recognize the revenue in that so we still as I said we still have to recognize we recently received the first approval of river of 24:49 24 minutes, 49 seconds yeah we still have to recognize revenues in it okay good and uh could you give some more sense around the uh business 24:57 24 minutes, 57 seconds potential in Europe and basically uh could you explain a little bit about the business model as well like are we sort 25:04 25 minutes, 4 seconds of going in with the large Indian generic companies who you know have presence in these countries and we sell via their front end or uh you know how 25:11 25 minutes, 11 seconds does it work and what's our competitive advantage in this market like do we have a lower cost structure versus you know many Indian large Indian generic 25:19 25 minutes, 19 seconds companies operate in Europe today uh so sort of do we have a lower cost structure or you know what's our sort of uh strength yeah 25:27 25 minutes, 27 seconds so what you have identified are three levers wherein we can play in the European market right so first is I still don't have a field on ground and 25:35 25 minutes, 35 seconds my core strength as a group always has remained manufacturing right so our first lever is it is CDMO what we'll do 25:42 25 minutes, 42 seconds uh as a group largely in the European market so right so that is one business model the second is focusing on products and molecules where there is limited 25:51 25 minutes, 51 seconds competitive intensity right so as we said uh we have received for riveroxaban right dapagloin which is a large molecule we have few products in 26:00 26 minutes pipeline across the hormonal range as well for which the UGMP is expected over the next 6 n months right So uh so 26:08 26 minutes, 8 seconds playing in markets where the competitive intensity is low that is our second uh uh theory behind it. And third is uh 26:17 26 minutes, 17 seconds tapping clients not just in India but outside as well right so uh one easy take out could be uh we tap Indian 26:25 26 minutes, 25 seconds customers right but with the quality of products the history of manufacturing services and we serve MNC's as well in India. So right uh so uh to your 26:34 26 minutes, 34 seconds question we are not just very um uh go getting on the Indian players as well. 26:39 26 minutes, 39 seconds We have our teams which regularly visit the European markets and we are open uh to any sort of collaboration whether with Indian or a European or an American player in in Europe. 26:51 26 minutes, 51 seconds Yeah, but uh do we have a stronger cost structure to supply because the molecules you mentioned like DAPA 26:58 26 minutes, 58 seconds giflosa there you know very large molecules I'm sure many generic companies would be targeting such opportunities in Europe. 27:04 27 minutes, 4 seconds So obviously so so so we uh uh this is all backed by a strong cost uh optimi a strong cost advantage uh that we drive. 27:17 27 minutes, 17 seconds Okay. And just last question if I can uh on generic semirotype which obviously could be more of an injectable kind of 27:24 27 minutes, 24 seconds place. So are you saying that when uh generic versions of this product get launched next year are we planning to be in this product at all or we will not 27:33 27 minutes, 33 seconds focus on this product? Just wanted to understand how we position this. Thank you. 27:37 27 minutes, 37 seconds Right. So no. So this uh is not a core segment for us. 27:43 27 minutes, 43 seconds Reason also I think Right. So the reason also I'll say because this is a question which comes again and again. I think there are two 27:49 27 minutes, 49 seconds reasons for it. U one is uh uh that most of the Indian formulation players are doing it in-house only. Right? So the 27:58 27 minutes, 58 seconds total addressable market for a CDMO gets squeezed down. Uh that that is one which limits my business case to set up a 28:07 28 minutes, 7 seconds cartridge facility maybe. Uh right. So uh so while uh we'll see how this market moves and grows if necessary we'll 28:15 28 minutes, 15 seconds probably do uh one or two years down the line uh and then decide how do we capture this market but as of today this 28:23 28 minutes, 23 seconds is not uh the priority one molecule for us okay and if I can just one more followup here in the uh domestic cmo business 28:31 28 minutes, 31 seconds which we have of like 3200 crores last year uh how much of this was anti-diabetes uh therapy for us uh you 28:38 28 minutes, 38 seconds know where we do the SGLT2 use GPP force uh kind of uh therapies. 28:42 28 minutes, 42 seconds So, so uh madam honestly so in our SAP we tag brands and not even molecules right so then it has to be tagged to 28:50 28 minutes, 50 seconds therapy. So while we don't do it what we did during our IPO times I can probably share that this completely reflects the IPM only. So whether it is anti 28:59 28 minutes, 59 seconds infective gyne cardio diabetes it is largely within the plusus 10% of a of a therapy which is there 29:08 29 minutes, 8 seconds answer okay yeah y thank you thank you before we proceed with the next question 29:16 29 minutes, 16 seconds a reminder to the participants in order to ask a question please press star and one the next question is from the line 29:24 29 minutes, 24 seconds of ah bman from vario Please proceed. 29:29 29 minutes, 29 seconds Yeah. Hi. Uh thanks for taking my question. Uh one is on the European filing. Uh Sah, if you can just explain how the MRP process works if you can the 29:38 29 minutes, 38 seconds mutual recognition process. How how does that work in in that geography? 29:44 29 minutes, 44 seconds I sorry uh can you please repeat? I did not fully understand your question. 29:50 29 minutes, 50 seconds So there is a MRP process there mutual recognition process where if you get approval from uh one member state then you can use that to apply to various 29:59 29 minutes, 59 seconds other member states. Uh yes it is. So uh understood now. So yes so that is there. So once you get it uh it is dependent on uh country to 30:08 30 minutes, 8 seconds country. So some countries you have to have uh a local uh QP release right. So that is where you need a local pharmacist to do it. Another uh 30:16 30 minutes, 16 seconds countries they accept it right. But it gets extremely swift and easy once you get approval from any of the countries which accept the EUGMP and the do right 30:25 30 minutes, 25 seconds including the non-EU states like Switzerland. So uh so once we receive approval everything uh falls in track. 30:31 30 minutes, 31 seconds So it's an additional for some countries it is 5,000€ 10,000 and so on. We just have to file the registration fees and it continues uh to that geography as 30:41 30 minutes, 41 seconds well. Is is there a timeline that the regulatory authorities say that within these many days I mean they are liable to get the approval? 30:50 30 minutes, 50 seconds Honestly I don't know this maybe and get back to you. 30:54 30 minutes, 54 seconds No worries. No worries. Second question is that when you are filing in Europe uh I just wanted to understand what model you're following. I mean are you uh like 31:03 31 minutes, 3 seconds filing your own dosas and then partnering with a distributor or you're partnering with a front-end pharma company and you know between these two models what is the basic difference? 31:11 31 minutes, 11 seconds Sure. Sure. So, uh if you remember two board meetings back, we got approval to 31:18 31 minutes, 18 seconds set up a subsidiary in Europe, right? We already uh in the UK market, which is post Brexit out of the European Union 31:26 31 minutes, 26 seconds and uh in Europe. So, we'll follow two models. One is where we do a co-development with uh uh with the 31:32 31 minutes, 32 seconds client, right? uh wherein uh the doier will be owned by uh the clients in 31:40 31 minutes, 40 seconds certain geographies and in rest of the geographies we will have the doseier and for some dozers the MA will be exclusively held by us. Uh the current 31:49 31 minutes, 49 seconds one which we received is with the partner model but uh gradually as we proceeded and we'll have a larger 31:56 31 minutes, 56 seconds portfolio. The MAS in the Europe will be held by us. We already have a company AOMS Healthcare UK registered wherein we 32:04 32 minutes, 4 seconds will leverage to register the MAS and then tap the local large companies, distributors, vendors to scale up the product. 32:13 32 minutes, 13 seconds Okay. So in the cases when the MA will be held by you, how will you market the product? Will will you like give it to 32:21 32 minutes, 21 seconds the distributor or like uh how do you plan to basically sell the product? So, so this is uh so there can be no one 32:28 32 minutes, 28 seconds answer to this honestly. So, depending on the country, depending on the product type, depending on how much is the private level of take maybe at a boos uh 32:37 32 minutes, 37 seconds or other pharmacy stores, this might differ. But uh the bottom line remains that we will have to maximize the uh uptake from that product. 32:48 32 minutes, 48 seconds Okay. Thank you. Thank you. I'm done. Yeah. 32:57 32 minutes, 57 seconds We take the next question from the line of Hersh Bharta from Bandan AMC. Please proceed. 33:05 33 minutes, 5 seconds Yeah. Uh thank you. Uh hope I'm Yes. 33:12 33 minutes, 12 seconds Yeah. Hi. This one uh on the European market uh just what you call clarification. uh I understand that 33:21 33 minutes, 21 seconds there will be a co-development model which you just mentioned as well as a few molecules going forward which will be for those years they should be on 33:29 33 minutes, 29 seconds their own name uh how would the pricing be decided because from what I could understand from your commentary was that 33:36 33 minutes, 36 seconds these will be tender based uh contracts uh which is why you're not giving out a guidance that's okay but the pricing 33:44 33 minutes, 44 seconds part will be linked to how the tenders uh pan to that extent or it will broadly be a cost plus model that we follow in 33:52 33 minutes, 52 seconds 3D market plus how would the margins uh for the European market. 33:58 33 minutes, 58 seconds So so as I said though this will be across private market as well as tender market. So some countries like Germany you have a strong tender uh system of 34:06 34 minutes, 6 seconds procurement. You have clinical commissioning groups in UK which procure regionally for counties and then you have rest of the markets wherein you 34:14 34 minutes, 14 seconds have a large private market. Right? So this will be a mix of whether it is uh which channel it really goes through. Uh the margins obviously will be better 34:22 34 minutes, 22 seconds than the domestic CDMO margins uh that we currently generate and um yeah that's 34:30 34 minutes, 30 seconds broadly around it. So as we and but this has to really show up as we build. So if I'm now talk uh maybe 3 to 5 years down 34:37 34 minutes, 37 seconds the line what we target uh is to have at least uh 10 dos years uh in the European market which we own and are sizable in nature. 34:51 34 minutes, 51 seconds So so depending on whether it is a private market or tender market your pricing strategy/cost plus model will keep on uh changing that would be the fair assumption. 35:03 35 minutes, 3 seconds So Europe what we have realized honestly uh is cost plus uh is a limited part of 35:10 35 minutes, 10 seconds the model model largely it is a fixed pricing whether it's a private market or a tender market right so 35:17 35 minutes, 17 seconds that's how the margins move if you really track other players as well introduction of a new player or APA pricing it usually does not impact the 35:26 35 minutes, 26 seconds output prices but usually impact the margins of the formulators right so that is largely how the model moves in a uh European market. 35:37 35 minutes, 37 seconds Okay. And just one last clarification, the bigger contract that he has uh which will start at least from CY 28 or C27 35:46 35 minutes, 46 seconds rather uh that is also on the fixed cost model. 35:53 35 minutes, 53 seconds Correct? So that's a fixed cost CDMO model where the market authorization is completely uh belonging to the client. 36:00 36 minutes So we don't own the doier as well. So that is a that is not the model we were talking earlier where we file it. That is a filing that will be done at the 36:07 36 minutes, 7 seconds clients for their established brand which is currently being done. We are just a manufacturing uh exclusive manufacturing partner out of India for that molecule and that will begin from March 27. 36:21 36 minutes, 21 seconds So thank you. 36:25 36 minutes, 25 seconds Thank you. We take the next question from the line of Vive Aaral from City Group. Please proceed. 36:33 36 minutes, 33 seconds Yeah, thanks for the opportunity again. 36:34 36 minutes, 34 seconds So in the domestic business, how to look what for the fullear growth given that uh we have seen a subdued growth in this particular quarter and and any 36:43 36 minutes, 43 seconds particular reason why uh your growth is just 3 4% uh in this particular quarter. Thank you. 36:48 36 minutes, 48 seconds So you mean domestic CDMO right? V yeah domestic branded formulations. 36:54 36 minutes, 54 seconds Domestic branded formulations. Okay. So domestic branded formulations should track the IPM growth V. So this was one quarter I think the 37:02 37 minutes, 2 seconds margins were better compared to last two months one. It was a it was just one of quarter. We see the growth coming back in due to the rest of the year. So we should be tracking the IPL. 37:13 37 minutes, 13 seconds But what has impacted you this quarter? 37:16 37 minutes, 16 seconds So uh nothing I think it's a usual reorganization u you you have certain uh period I think 37:26 37 minutes, 26 seconds not necessarily I can pin down to one reason honestly u it is growing but that should come if you also look at the price growth that 37:33 37 minutes, 33 seconds we took was uh roughly 1 one and a half% itself which was way larger uh the rest of the market which takes a five six%. 37:40 37 minutes, 40 seconds So everything is in place. I think for the rest of the year we should uh perform well. So no significant concerns or deviations from the guidance earlier on this business. 37:51 37 minutes, 51 seconds But given the small ways as well as uh I think the business makes largely in favor favor of certain chronic uh segments right uh don't you think that 38:00 38 minutes this business should grow ahead of the industry ahead of the IPM at least? 38:04 38 minutes, 4 seconds uh that's the endeavor uh Vive but uh we could not do it in this quarter and for the rest of the quarters we'll have to certainly perform better than the market 38:13 38 minutes, 13 seconds and hence track the IPM right so the endeavor is for the rest three quarters we grow faster than the IPM so that at least uh we are in line with the IPM as 38:21 38 minutes, 21 seconds we close the year thanks and just lastly on API and tread genre right uh so uh how long you see of 38:29 38 minutes, 29 seconds the business can just turn a bit positive Sure. 38:35 38 minutes, 35 seconds A uh I'll take trade genics first because that is the consolidation year for that business. Uh right. So we over 38:42 38 minutes, 42 seconds the last few years have uh experimented a few things but we still believe this is a business which has a peak capital potential which is lower than the CDMO 38:50 38 minutes, 50 seconds business and the global initiatives we are taking as well as the working in capital uh which is required to run this business is large. It is largely a 38:59 38 minutes, 59 seconds non-differiated business where price uh plays a major role in the uptake. Right? 39:04 39 minutes, 4 seconds So considering all these factors, we believe that this is not the right section for us to stay invested in and hence uh trade genics uh gradually we 39:13 39 minutes, 13 seconds are bringing it down. We might retain one uh or two business units within this but those should be profitable and no more breeding. Uh right. So that is on 39:22 39 minutes, 22 seconds trade genics this year. API business as you mentioned we have some global aspirations. We are filing the European 39:29 39 minutes, 29 seconds uh CPS. We are also doing work in Africa and Latan. Right. Uh the domestic cyclospin prices continues to be a 39:37 39 minutes, 37 seconds concern. Um this is driven by extensive uh price or margin erosion which players 39:45 39 minutes, 45 seconds are resorting to to gain in a market which has seen no volumes. Right? We also did assessment of how our yields 39:52 39 minutes, 52 seconds conversion norms are there and we are pretty much in line with the market. 39:55 39 minutes, 55 seconds Right? So two things uh which will drive this business is uh one global expansion and secondly uh how does the API prices 40:04 40 minutes, 4 seconds gradually move up that should be uh a positive point for this business. So as of now we are still 40:12 40 minutes, 12 seconds aggressive and invested in this business uh as we speak in FI26. 40:18 40 minutes, 18 seconds Yeah thanks that from my side. Thank you. 40:26 40 minutes, 26 seconds Ladies and gentlemen, in order to ask a question, please press star and one on your touchstone telephone. 40:42 40 minutes, 42 seconds A reminder again to the participants in order to ask a question you may press star in one. 40:51 40 minutes, 51 seconds We take the next question from the line of Madha from Fidelity. Please proceed. 40:57 40 minutes, 57 seconds Yeah, just one more followup. The uh the EU CDMO contract uh starts from April 2027. 41:04 41 minutes, 4 seconds So uh could you give some sense? It's basically FI 28. How much could be the annual revenue run rate uh from this contract for us and do we expect it to 41:12 41 minutes, 12 seconds sort of ramp up fully in the first year or it could take two three years before it fully ramp up? 41:18 41 minutes, 18 seconds Sure. M. So this is an established product. So there will be no ramp up uh phase. So we should do at least 300 crores annually from this contract. U 41:27 41 minutes, 27 seconds and uh yes April 27 is when we start commercial supplies. 41:35 41 minutes, 35 seconds Okay. Got it. Got it. Understood. 41:38 41 minutes, 38 seconds And the margins for this contact are similar to our existing CDM business margins or is it better than what we do 14 15%. 41:45 41 minutes, 45 seconds Similar margins. 41:49 41 minutes, 49 seconds And the uh the other European business which we are targeting where you know we've got one approval recently and filing some more uh how big can this 41:57 41 minutes, 57 seconds opportunity be for us in the next uh let's say two or three years time uh I mean I'm assuming it's close to sort of zero right now it's ramping up so any 42:05 42 minutes, 5 seconds aspirations in terms of revenue next two three years so I should say 5 years because European GMP approvals doer filings ramp uh 42:13 42 minutes, 13 seconds scaling up to other countries takes time so let's take a five year horizon uh so from exports how much should we 42:20 42 minutes, 20 seconds do? Uh so if I could break it down so 300 crores we'll get from this contract. 42:24 42 minutes, 24 seconds There are couple of other not of this value but there are a couple of other uh contracts that we are working towards. So those should give me some value. 42:31 42 minutes, 31 seconds There is already a 150 uh kes run rate of other exports business that I do in other geographies. So over the five 42:40 42 minutes, 40 seconds years time uh we should uh target maybe $100 million uh in exports. 42:48 42 minutes, 48 seconds Okay. 100 million exports or CGMO basically right. Yeah. 42:53 42 minutes, 53 seconds So I say exports because international branded is also supplied 100% from this. 42:57 42 minutes, 57 seconds So uh entirety of formulation exports from the group. 43:03 43 minutes, 3 seconds Okay. And that's that's already at like let's say 15 20 million update right like $15 million uh the unis right the 43:12 43 minutes, 12 seconds population expos so we currently are at 15 uh if over 5 years we should scale up to 100 43:20 43 minutes, 20 seconds okay and you know given we have balance sheet cash right now from the advance we've received and in the PP we did mention some of an organic opportunity 43:28 43 minutes, 28 seconds which we can pursue uh what could be the framework I mean what kind of acquisitions we can look at like what what fits the M&A framework for the company. Thank you. 43:37 43 minutes, 37 seconds Sure. So we drilled down on multiple things. I think what finally we have selected are two things which we will deploy our cash in organically. Uh one 43:46 43 minutes, 46 seconds is if we can acquire a dosage form capability we currently don't have. So there are still few doses forms which we don't have capabilities on and we are 43:55 43 minutes, 55 seconds targeting him. Secondly it if it could could give me access to other markets right. So I have strong R&D quality 44:03 44 minutes, 3 seconds manufacturing and things. So if I get any base wherein I can quickly come launch new products and expand to global 44:10 44 minutes, 10 seconds markets um that is another thing which you're looking at uh in the uh in the inorganic side of it 44:19 44 minutes, 19 seconds and we are open whether we do it within India or maybe outside India. 44:26 44 minutes, 26 seconds Got it. Okay. Thank you. 44:30 44 minutes, 30 seconds Thank you ladies and gentlemen. A reminder to the participants in order to ask a question 44:38 44 minutes, 38 seconds you may press star and one on your touchstone telephone. We take the next question from the line of Pranav Chavela from Ambit Capital Private Limited. 44:48 44 minutes, 48 seconds Please proceed. 44:51 44 minutes, 51 seconds Good afternoon everyone. Uh sir I had one question. So on uh GLP you highlighted you may not be part of it. 44:59 44 minutes, 59 seconds uh we not even targeting selfishness for what? 45:04 45 minutes, 4 seconds I believe we uh for GLP opportunity in India. 45:09 45 minutes, 9 seconds Uh you recent Yeah. 45:12 45 minutes, 12 seconds So I I said simaglotide is something we are not targeting. 45:18 45 minutes, 18 seconds Right. So that includes film finish as well. That includes fill finish as well. 45:23 45 minutes, 23 seconds Right. So we uh we have the required R&D in place. we are on it but how big we'll do which all doses forms we do still not 45:32 45 minutes, 32 seconds uh aggressive on that molecule given as I said most of the players are doing it in house uh and uh subsequently with so 45:40 45 minutes, 40 seconds many players entering the market uh the prices might drop substantially compared to the innovator price 45:48 45 minutes, 48 seconds okay uh so also can you share us uh share an update over our Jamu expansion 45:55 45 minutes, 55 seconds sure so Jamu As I said uh in earlier calls, we uh have to start the plant by 46:02 46 minutes, 2 seconds March of 2027. Um right. So we are tracking the timeline given our current capeex is already ongoing in Bhi plants 46:11 46 minutes, 11 seconds as well as the utilization scope of ramp up already exists in a Harida facility right so towards the end of this year 46:17 46 minutes, 17 seconds we'll start cex and over the next 12 13 months we'll do the capeex and subsequently March 27 we should be ready 46:24 46 minutes, 24 seconds to go live from that facility so and one last question from my end uh in the API business if I uh see the 46:33 46 minutes, 33 seconds numbers closely we are able we have been able to maintain our gross margins uh evita margins over there. Uh so 46:43 46 minutes, 43 seconds uh how do we read this because margins in business were almost 20% in the first quarter of last year and now we are 46:50 46 minutes, 50 seconds almost stabilizing near that early number right so so we did almost 44 45 crores 46:58 46 minutes, 58 seconds of aa loss in that business last year if I remember it correctly right what we initially indicated was we'll do a uh uh 47:07 47 minutes, 7 seconds an improvement of 20 odd kes in aa this Yeah, that was the target. Uh right. Uh so while it could have variability 47:15 47 minutes, 15 seconds quarter on quarter, I think uh we would still track this number and we are targeting that we should do uh as per the guidance in this business. 47:30 47 minutes, 30 seconds Perfect. Thank you so much. I can s Thank you. Before we proceed with the 47:39 47 minutes, 39 seconds next question, ladies and gentlemen, in order to ask a question, please press star and one on your touchstone telephone. The next question is from the line of Dr. Niha Karodia from Abacus. 47:52 47 minutes, 52 seconds Please proceed. 47:54 47 minutes, 54 seconds Uh yeah. Hi, good afternoon everyone and uh thanks for the opportunity. 47:58 47 minutes, 58 seconds I would request Miss Nihar to please come closer to your device while speaking. Am I audible now? 48:06 48 minutes, 6 seconds Yes. 48:06 48 minutes, 6 seconds Hello. Yeah. Yeah. So, uh good afternoon and uh my questions are basically around 48:14 48 minutes, 14 seconds uh two parts of our business CDMO and the domestic branded formulation which is uh 90% of our uh overall business. So 48:22 48 minutes, 22 seconds for CDMO just wanted to understand for the domestic piece that uh is this understanding correct that one has to look at the growth in the uh volume for 48:30 48 minutes, 30 seconds IPM and the other thing can be the API pricing scenario for us uh in in in that business. 48:37 48 minutes, 37 seconds Correct. So we do not get any benefits of the MRP. Right. So that is something which a marketing company governs. So for us which are two important things is 48:46 48 minutes, 46 seconds the volume growth in the uh overall sector as well as how the API prices move because since it's a cost plus it's a major component of my cost. 48:56 48 minutes, 56 seconds Understood. So when we say that we can grow in mid to high singledigit growth in this segment what is the assumption that we are taking for the volume growth 49:04 49 minutes, 4 seconds as well as the API are we expecting any improvement in the API pricing scenario. 49:10 49 minutes, 10 seconds So as of today as I see we have three levers right one is how my overall product mix improves how my pricing of 49:17 49 minutes, 17 seconds the uh my product uh improves and how the volume improves. pricing is dependent on the API prices the input 49:25 49 minutes, 25 seconds material right so we saw minus 2.5% decline so that is on a dec decline the volumes which we grew by 1% we expect 49:34 49 minutes, 34 seconds some uptake in the rest of the three quarters uh so that should drive few percent points up and product mix is something we are constantly working so 49:42 49 minutes, 42 seconds if you really look at two three quarters that has given us an upside of 2 to 3% so should continue and the product mix should contribute to the rest of the 49:50 49 minutes, 50 seconds singledigit growth We are communicating understood 2 to 3% kind of volume growth and 2 to 3% kind of benefit from the 49:59 49 minutes, 59 seconds pricing is is is that understanding correct from the product from the product uh from the product the pricing should remain flat 50:08 50 minutes, 8 seconds okay understood. uh and uh regarding the second part of the uh that uh domestic 50:16 50 minutes, 16 seconds branded formulation business. So as earlier participant had also asked I mean this business is quite sim small for us as of now. So on the low base uh 50:25 50 minutes, 25 seconds why our growth was uh uh only uh let's say 3% and just wanted to understand uh can it not be also pricing led uh and 50:34 50 minutes, 34 seconds are we focusing on any particular segment for the growth and secondly on the margin part so if I look at the margin if the margins are similar to the 50:42 50 minutes, 42 seconds CDM of business so uh intuitively one feels that probably in the domestic branded formulation business one can have a better margin in this business. 50:49 50 minutes, 49 seconds So how should how should one look at uh the margin for this particular segment going forward on a steady state basis. 50:56 50 minutes, 56 seconds So so you ask on margins and growth. So margins if you really look at the quarter one last year they were tracking around 12 to 13% which have improved to 51:04 51 minutes, 4 seconds 14 plus%. uh as we move ahead in this business uh the sales and the margin profiles increases because a lot of 51:12 51 minutes, 12 seconds fixed cost gets uh leveraged right so so Q2 Q3 performs well right so uh so uh as 51:20 51 minutes, 20 seconds we speak so which was there the CFO was also mentioning about in his opening remarks that the year should remain at 51:27 51 minutes, 27 seconds an 80 odd% AITA margins so uh so this is certainly better than the CDMO domestic margins that we currently generate 51:35 51 minutes, 35 seconds uh on the growth as I said to the earlier participant that this was one of potters wherein we did not take price 51:42 51 minutes, 42 seconds hikes as well as the primary was lower but we should catch up over the next 9 months in this business. 51:52 51 minutes, 52 seconds Understood. So in in the next 9 months uh we are expecting to be able to uh take some price. Is that understanding correct? 52:00 52 minutes So uh that will yet to be seen honestly how do we take price because uh that will be our SQSQ driven but uh as we 52:09 52 minutes, 9 seconds move closer to H2 we should be able to better understand how the growth dynamics work in that business. 52:16 52 minutes, 16 seconds Understood. But current environment how is it looking? Do we feel that that can be possible or it looks difficult and it will be more of again volume and new 52:25 52 minutes, 25 seconds launches. So, so price growth honestly is uh in our hands only uh which is uh 52:32 52 minutes, 32 seconds uh as per the government uh norms of how do we grow the DPCO portfolio for us is extremely limited. We largely have a non 52:39 52 minutes, 39 seconds DPCO price controlled uh chronic oriented portfolio right uh but as we scale up almost uh half of uh the sales 52:48 52 minutes, 48 seconds that we generate is uh from nonmetros which we also uh reflected in our Q4 presentation last year right so a lot of 52:55 52 minutes, 55 seconds things on doctor perception prescription uptake your target pool your current pricing in the market so do all those 53:02 53 minutes, 2 seconds things plain before we really make a decision to uh uh hike the prices right so that's the reason we still have to 53:10 53 minutes, 10 seconds see how do we uh do in Q2 before we take a conscious call on it understood so just to understand it 53:17 53 minutes, 17 seconds further so there is a uh likelihood that our margins if the group does not come can remain in the range of about 15 16% 53:26 53 minutes, 26 seconds it can be slightly lower than what we have guided and let's say if we are able to take the price high then uh we can uh 53:33 53 minutes, 33 seconds maybe deliver at the level that we we are uh expecting or rising. 53:38 53 minutes, 38 seconds I'll I'll just re uh realign it. So price hikes is a positive uh uh for this 53:45 53 minutes, 45 seconds business. The base the business should continue at an 18% debit margin. 53:51 53 minutes, 51 seconds Understood. Okay. Thanks so much. Thank you. 54:00 54 minutes The next question is from the line of J Modi from EIML. Please proceed. 54:07 54 minutes, 7 seconds Yeah. Uh, sorry to interrupt J. Sir, your audio is not clear. Can you please fix that? 54:37 54 minutes, 37 seconds J is out of the queue. I'll add him back to the queue. Just give me a moment, sir. 54:45 54 minutes, 45 seconds He has been disconnected. 54:50 54 minutes, 50 seconds So, as there are no further questions from the participants, I would now like to hand the conference over over to Mr. 54:57 54 minutes, 57 seconds Ankit Jane for closing comments. Over to you, sir. 55:01 55 minutes, 1 second Thank you everyone for attending the Cuban earnings call for a comes. Uh if you have any remaining questions you can reach out to the investor relations team. Thank you and have a good day. 55:13 55 minutes, 13 seconds Thank you. Thank you very much. 55:18 55 minutes, 18 seconds Thank you on behalf of Ambit Capital Private Limited. That concludes this conference. Thank you for joining us.