Alembic Pharmaceuticals Limited — Q4 FY26

Alembic Pharmaceuticals Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=qK3X1wYfF4s Published: 1d ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q4 FY26 earnings conference call of Olympic Pharmaceuticals Limited. We have with us 0:10 10 seconds today Mr. Pranavin, managing director, Mr. G Krishna, CFO, 0:17 17 seconds Mr. Ajay Kumar Desai, Senior Vice President Finance and Miss Isha Lamba, general manager corporate development and investor relations. 0:28 28 seconds As a reminder, this conference call is only for analyst and institutional investors. 0:34 34 seconds All participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:42 42 seconds you need assistance during this conference call, please signal an operator by pressing star and then zero on your touchstone phone. 0:50 50 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. 0:56 56 seconds Pranavin, managing director. Thank you and over to you sir. Thank you and good evening everyone. 1:04 1 minute, 4 seconds Thank you for joining us at the Alamic Pharmaceuticals Q4 and FI26 investor call. I am joined with my man with Mr. 1:13 1 minute, 13 seconds Krishnan the CFO as well as members of the management team. I will begin with a brief perspective on the environment performance across our businesses and 1:20 1 minute, 20 seconds strategic actions and a directional view for FI27 and then Fish will take you through the financial performance for the quarter and the full year ahead. The 1:29 1 minute, 29 seconds external environment continues to remain dynamic across the markets. Pricing pressure, competitive intensity, regulatoration, [clears throat] 1:37 1 minute, 37 seconds supply chain volatility continue to shape the performance. In this backdrop, outcomes are being driven less by market tailwinds and more by 1:45 1 minute, 45 seconds execution, quality, portfolio choices, cost discipline and capital allocation. Our approach through 1:53 1 minute, 53 seconds the financial year has remained anchored on four clear priorities which is maintaining our gross margin, protecting 1:59 1 minute, 59 seconds the core business, improving operating leverage and investing selectively in future growth platforms while sharpening 2:07 2 minutes, 7 seconds operation excellence across all the businesses. So while FI26 in a strategic investments and quarters and some quarter specific impacts, the broader 2:16 2 minutes, 16 seconds direction remains clear. We are working to build a stronger and more execution-led platform for the medium-term. 2:22 2 minutes, 22 seconds Starting with India business, the business delivered 4% year-on-year growth. The quarter was supported by priceled growth and new launches. While 2:31 2 minutes, 31 seconds within the portfolio, specialty therapies and animal healthcare continued to perform relatively better. 2:38 2 minutes, 38 seconds Specialty growth was supported by gynecology, gastrology and opthalmology. 2:42 2 minutes, 42 seconds While animal healthcare grew strongly and remained an important growth driver. 2:48 2 minutes, 48 seconds Focus brands also continue to grow ahead of the broader portfolio which is important from a quality of growth standpoint. The indoor facility is fully 2:56 2 minutes, 56 seconds operational. Capacity utilization is improving and this gives us a better base for supply reliability, logistics, operating efficiency and future scaling. 3:06 3 minutes, 6 seconds We also continued the portfolio refresh with new product launches during the quarter and that should support better growth quality moving forward. For the 3:15 3 minutes, 15 seconds full year, India business delivered a growth of 5%. Operationally, the India business is on a firmer footing and we continue to strength continue to 3:22 3 minutes, 22 seconds strengthen the field operations and productivity metrics focused governance to drive performance. 3:29 3 minutes, 29 seconds The international the Q4 international business growth remained positive with US showing growth led by volumes and new 3:38 3 minutes, 38 seconds launches. The US market the XUS markets also continued doing well and it grew 20% for the year whilst the quarter was 3:45 3 minutes, 45 seconds muted but the full year it did it grew 20%. The quarterly performance of XUS is made mainly muted due to a higher base 3:52 3 minutes, 52 seconds and one-off variances. We're confident of continuing this growth in the ensuing quarters. 3:58 3 minutes, 58 seconds We continued to build the pipeline and launch platform during the quarter. We had six new launches in the US further and the filings and approvals and 4:06 4 minutes, 6 seconds progress on partnership led opportunities. Our new facilities are getting better utilized and for and we foresee much greater volumes coming out of these facilities in the current year. 4:16 4 minutes, 16 seconds The broader international business remains a key growth engine. 4:21 4 minutes, 21 seconds But the business will require sharper product selection, discipline launch, and tighter control. On a yearly basis, I think we're pretty happy with the 4:29 4 minutes, 29 seconds operational outcomes and the way the business has panned out, and I'm confident that moving forward this year will show some of these results. The API 4:36 4 minutes, 36 seconds business delivered a modest growth in Q4 driven primarily by volumes while pricing remained a headwind. This is consistent with the broader market 4:44 4 minutes, 44 seconds environment we have discussed in earlier calls as well. Our response continues to be on cost improvement portfolio choices and capturing opportunities where our 4:52 4 minutes, 52 seconds development and manufacturing strengths provide a better economic profile at a broader level. We are consciously moving towards a more execution 5:01 5 minutes, 1 second strategic model. This means higher focus on quality of portfolio and launches, better asset utilization, stronger cost and working capital discipline and selective investments and platforms. 5:13 5 minutes, 13 seconds One part of the strategic pivot is a US branded business approach. We view this as a calibrated strategic entry with a focused go-to market model and measured 5:22 5 minutes, 22 seconds investment. The objective is not rapid scale but to build a credible and sustainable PLA specialty platform over a period of time. While there are short 5:31 5 minutes, 31 seconds there may be a short-term impact on profitability which should get offset from improved operating leverage in the core business. 5:39 5 minutes, 39 seconds In terms of the FY27 directional outlook, we are planning a pragmatic view of the external environment. We are not assuming any major easing and 5:46 5 minutes, 46 seconds pricing pressure, competition or supply chain volatility. At this at the same time, we do see room for performance through internal levers. 5:55 5 minutes, 55 seconds On the international business, we expect product launches to be phased through the year with a few meaningful day one launches in the first couple of quarters 6:03 6 minutes, 3 seconds and better volumes from the existing portfolio. We also expect the US branded business to scale up. supported by selective product additions to 6:11 6 minutes, 11 seconds strengthen the franchise. New product additions, deeper collaborations and expansion into new territories across Europe and Asia will also support the ex 6:19 6 minutes, 19 seconds US markets. We expect the India business to improve in growth momentum clo and hope to be closer to market growth with a renewed approach to strengthen focus 6:28 6 minutes, 28 seconds brands. The international generic business are also likely to grow in a decent amount by low to mid team 6:36 6 minutes, 36 seconds range and the API business to grow in the high single or low double digit growth. This will translate it to an 6:43 6 minutes, 43 seconds over overall topline consolidated growth to be in the low double digit r double digit range. R&D investments are likely 6:51 6 minutes, 51 seconds to be around 750 to 800 crores as we calibrate our portfolio and structurally move towards higher value opportunities 6:58 6 minutes, 58 seconds focusing on NCUS1 first to file and day one molecules while being cautious on global geopolitics and related developments. The focus will be not only 7:06 7 minutes, 6 seconds on growth but on the quality of growth better capacity utilization focused cost savings working capital and investing in a differentiated product portfolio. With 7:15 7 minutes, 15 seconds that let me hand over to Krishna who will take you through the financial performance for the quarter and full year. Thank you Prana. Good evening everyone. 7:23 7 minutes, 23 seconds Let me take you through the financial performance for quarter 4 and then the full year of uh 2026 and give you some 7:31 7 minutes, 31 seconds flavor of FI27 as well. For the quarter revenue from operations stood at,848 7:37 7 minutes, 37 seconds crores up by 4% yearon year. The quarter reflected resilient performance in the top line supported by new launches in 7:45 7 minutes, 45 seconds the US uh volume led growth in API and animal health um partly offset by pricing pressure in certain segments. On 7:53 7 minutes, 53 seconds the operating front, Aida before R&D stood at 455 crores up by about 8% yearon year with core margins at almost 8:01 8 minutes, 1 second at 25% compared to 24% in the previous year same quarter. This reflects better business mix with slightly better gross 8:09 8 minutes, 9 seconds margins at 71%. But staying in the previously mentioned range of about 70 to 75%. The IIDA is after net operating 8:18 8 minutes, 18 seconds expenses of the US branded business which started operations in quarter 4. 8:22 8 minutes, 22 seconds Going forward we continue to expect the operating leverage improvement to offset the new uh offset the launchpace margin impact of the US branded business. 8:32 8 minutes, 32 seconds R&D spending for the quarter was at 209 crores compared with 151 crores in the same quarter last year representing 11% 8:39 8 minutes, 39 seconds of revenue versus 9% last year. The increase was driven by peptide related development activities that we did uh 8:46 8 minutes, 46 seconds during the quarter and higher filings in US and XUS markets compared to the previous year. Uh this we believe will 8:53 8 minutes, 53 seconds help us position for growth in the subsequent periods. At the profit level, reported profit after tax for the 9:00 9 minutes quarter stood at 203 crores. The quarter included an exceptional item of 24 crores as well as one time tax adjustments of 101 crores which is a 9:09 9 minutes, 9 seconds positive impact uh relating to MAT credit and tax regime related adjustments. From a balance sheet perspective, net working capital stood 9:18 9 minutes, 18 seconds at 2,000 almost close to 3,000 crores, an increase of about 50 crores versus the December levels, mainly driven by 9:24 9 minutes, 24 seconds receivables that are not in due gross debt was at 1361 crores, broadly in line with the December levels. For the full 9:32 9 minutes, 32 seconds year, revenue grew by about 10% yearonear supported by growth across businesses while absorbing a higher level of investment in R&D and strategic 9:40 9 minutes, 40 seconds growth initiatives. for FI26 AIDA before R&D and exceptional items uh stood at 9:46 9 minutes, 46 seconds 1846 crores representing 25% of revenue and a 20% year-on-year growth. This reflects growth in the business with 9:54 9 minutes, 54 seconds better operating leverage across facilities. AIDA after R&D was at 16% of revenue. Profit before tax and before 10:03 10 minutes, 3 seconds exceptional items grew at 10% broadly reflecting the revenue growth uh that we had during the year. reported profit after tax booed 16% to 675 crores. 10:14 10 minutes, 14 seconds Overall, FI26 was a year of steady core operating delivery alongside higher investment in the pipeline and future growth platforms. 10:23 10 minutes, 23 seconds While some of these investments have a near-term impact on reported profitability, they are very well aligned to improving medium-term growth 10:30 10 minutes, 30 seconds quality and strategic positioning. As Prenam mentioned earlier, our current view for FI27 is directional and based 10:37 10 minutes, 37 seconds on current visibility. At a consolidated level, we are targeting a low double-digit growth uh topline growth. 10:43 10 minutes, 43 seconds Alongside alongside the growth, our focus will remain on margin protection, working capital management and capital efficient execution. We expect margin 10:52 10 minutes, 52 seconds improvement from core business to give enough headroom to support the launch phase of US branded business. With the launch of PBI, we expect the branded 11:01 11 minutes, 1 second business franchise to scale up to a meaningful revenue profile in the next few quarters. We expect capital expenditure for the year to be in the 11:08 11 minutes, 8 seconds range of 300 to 350 crores uh primarily towards capacity debottlenecking and replacement capex. In summary, FI26 11:16 11 minutes, 16 seconds reinforced resilience while FI27 we believe is focused on maintaining the momentum and winning through execution. 11:22 11 minutes, 22 seconds With that, we can now open the floor for questions and answers. 11:27 11 minutes, 27 seconds Thank you very much. We will now begin with the question and answer session. 11:33 11 minutes, 33 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and two. 11:44 11 minutes, 44 seconds Participants are requested to use handsets while asking a question. 11:49 11 minutes, 49 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 11:53 11 minutes, 53 seconds Again to register for a question you may press star and then one now 12:12 12 minutes, 12 seconds participants you may press star and then one to ask a question. 12:17 12 minutes, 17 seconds Your first question comes from the line of Janvi Mishra from Green Portfolio Private Limited. Please go ahead. 12:25 12 minutes, 25 seconds Hi, good evening. 12:28 12 minutes, 28 seconds Uh ma'am, you're sounding a lot distant right now. If you're using a speaker phone or any external headset, may I request you to use a handset, please? 12:37 12 minutes, 37 seconds Yes. Hi, am I audible now? 12:40 12 minutes, 40 seconds This is much better. Yes, please go ahead. 12:41 12 minutes, 41 seconds Yeah. Yeah. Good evening everyone. Uh so actually I would like to ask about the F2 and F3 facilities that uh remain 12:49 12 minutes, 49 seconds underutilized pending FDRs like could you tell us roughly how much cost these facilities are adding to the P&L every 12:56 12 minutes, 56 seconds year without corresponding revenue and uh at what point whether through our own product approval or the contract 13:04 13 minutes, 4 seconds manufacturing deals that we have signed do these facilities start covering their own cost and uh what is our internal 13:11 13 minutes, 11 seconds timeline for that? So we don't give facility wise break up but I can just give you a flavor of what's happening. I think both F2 and F3 are working at a 13:20 13 minutes, 20 seconds much higher occupancy level than they used to. We're seeing more meaningful contribution from these. If you see F3 13:28 13 minutes, 28 seconds has multiple lines, right? And I think the opthalmic line is already cho block. 13:32 13 minutes, 32 seconds In fact, we're doing an expansion of the opthalmic line because it's already at full capacity in terms of the other two lines in F3. Those are also about 40 and 13:40 13 minutes, 40 seconds 60% capacity utilization for both. In terms of F2, the injectable line and the OSD are both working at a decent amount. 13:47 13 minutes, 47 seconds We have a few limited competition opportunities coming which is what is going to enable them and use these facilities. So I think the unabsorbed 13:55 13 minutes, 55 seconds lowheads of both these is not as much of an issue for us. uh they maybe it's too small a drag in the whole scheme of things but it's more important for us to 14:02 14 minutes, 2 seconds keep some headway in these uh facilities as we have some important day one launches coming from these facilities as well as we're seeing a lot of 14:10 14 minutes, 10 seconds opportunities for product launches in the next couple of quarters. 14:14 14 minutes, 14 seconds Okay sir. And sir of the contract manufacturing deals that are already signed for F2 F3 like are any of them expected to generate meaningful revenue 14:22 14 minutes, 22 seconds in 27 itself or like is it more of a FI28 story? 14:28 14 minutes, 28 seconds No, it's already started. I think some of the licensing and some of the contract manufacturing is in progress. 14:33 14 minutes, 33 seconds So we'll see part contribution from that in FI27 itself. Okay. Okay. Thank you so much. 14:43 14 minutes, 43 seconds Thank you. 14:45 14 minutes, 45 seconds Our next question comes from the line of Rahul Giwani from IFL. Please go ahead. 14:52 14 minutes, 52 seconds Yeah. Uh, hi sir. Thanks for taking my question. So, can you call out what kind of an impact you saw in the quarter from 15:00 15 minutes the investment into the US specialtity business? So, is there any drag sitting on the current quarters margins because 15:08 15 minutes, 8 seconds of PIA? and how do you see that uh going forward as well into F57? So that's my first question. 15:15 15 minutes, 15 seconds Yeah. Yeah. Thanks Rahul. Yeah. So there was a drag in the quarter due to the Olympic therapeutics uh business which is which is a sub that has launched the 15:23 15 minutes, 23 seconds pivia product. I just once I finish I'll let I'll give a direction and Krishna will give you further details. So there was a drag on the business because of 15:31 15 minutes, 31 seconds that. I think the product just got launched in February. So we had taken up some of the costs. I think I expect another quarter or two of drag the drag 15:39 15 minutes, 39 seconds coming. I think by the end of the year we should start seeing a decent contribution and we think the last couple of quarters last quarter is when we'll see it starting to turn around. 15:49 15 minutes, 49 seconds It's an interesting area. Only thing it's branded so it does take more time to get the doctor habits to change but we're quite confident. I think the initial trend is quite healthy. So I 15:57 15 minutes, 57 seconds think yeah there will be a drag for another quarter or two you know. 16:00 16 minutes Yeah. So on the specific drag I don't want to put a number to this then you know it becomes a continuous uh discussion on you know what's the 16:09 16 minutes, 9 seconds product level margins that we're going to disclose. So directionally if you see uh for the full year we have been able to maintain the margins for the quarter 16:16 16 minutes, 16 seconds there is a bit of drag uh coming in from uh the higher R&D spend as well. So uh I think from a purely from a modeling 16:24 16 minutes, 24 seconds point of view I would take about you know u 100 to 150 basis points of impact coming from PVIA uh from the branded 16:32 16 minutes, 32 seconds business in US and uh we believe that the margin trajectory for FI27 uh the core core eida margins that comes from 16:40 16 minutes, 40 seconds the generics formulations and API business should be uh should be more than sufficient to offset this impact. 16:49 16 minutes, 49 seconds Uh uh sure sir and sir on R&D uh this quarter we saw an increase you said that 16:56 16 minutes, 56 seconds uh uh the increase was on account of peptide development but can you talk about in terms of how do you measure the 17:05 17 minutes, 5 seconds the R&D productivity particularly for the US business and uh uh uh and and why I say so is because when we were 17:14 17 minutes, 14 seconds benefiting from certain opportunity in the US at that point in time annual R&D spend was around 650 crores which we had 17:23 17 minutes, 23 seconds moderated over last couple of years to let's say closer to 550 cr kind of an annual number. Now for next year as well 17:31 17 minutes, 31 seconds we are again guiding for a increase in R&D spend to 750 800 cr. So just in 17:38 17 minutes, 38 seconds terms of how do you measure productivity of uh this R&D investment because uh uh 17:45 17 minutes, 45 seconds the high R&D investments are in fact dragging your reported evida margin. 17:51 17 minutes, 51 seconds Yeah, [clears throat] Ra, good question actually. So, a few things. So, for sold the Q4 was little bit of an outlier at 11% of sales is a little higher than we would have liked to be. You're right. 18:00 18 minutes Historically, we have gone up to about 14 15% of uh revenue as R&D spend I think but we tapered it down last couple 18:08 18 minutes, 8 seconds of years. I think what we're doing is I think the quality of the filings that we're doing is also going up which has caused some higher spend but moving 18:16 18 minutes, 16 seconds forward for the year I don't expect it to be at 11%. it'll come back down to about 9% again and I think at an absolute amount we'll be at that 750 odd 18:25 18 minutes, 25 seconds crer is because we had few selective complex and peptide developments which were a 18:33 18 minutes, 33 seconds little more expensive that's what created a bump but I think u in terms of how we measure it I think we generally have an IR for each of our R&D projects 18:42 18 minutes, 42 seconds that's what we base our calculations on and what we think makes sense as it's getting more competitive development cost is also getting more expensive. So 18:51 18 minutes, 51 seconds the threshold IR has come down but we still see some opportunities and that's how we're measuring. We're measuring it by opportunity to opportunity. I think 18:59 18 minutes, 59 seconds the only way we can grow is if we do have products in the market and uh hence we will not go up to the 10 15% levels 19:06 19 minutes, 6 seconds but I think it's 8 to 9% of revenues where we'll be at. 19:11 19 minutes, 11 seconds Uh sure sir and and you said uh you me you measure R&D productivity through 19:17 19 minutes, 17 seconds through IR so let's say over by 20 to 23 or 24 the R&D spend which we would have 19:25 19 minutes, 25 seconds done at that point in time what kind of an IR would uh would those spend would 19:32 19 minutes, 32 seconds be generating as of now if you can uh share some numbers. Um sorry can you repeat? No. 19:40 19 minutes, 40 seconds So R it's tough to say because I think what's happening is a lot a lot of the filings that happened there especially from the new facilities let's say the 19:47 19 minutes, 47 seconds tiny and everything they're all late expiry. I think the whole point of the tin facility was that um you know it's we were locking in some of the day ones. 19:55 19 minutes, 55 seconds I think you'll see one of them one launch happening in the end of this quarter. So it's tough to put it all together. I think as I mentioned the returns came down compared to the returns that we were seeing pre2020. 20:07 20 minutes, 7 seconds the returns will that's one of the reasons why we tapered down some of the R&D costs as well. 20:13 20 minutes, 13 seconds Uh sure sir last question from my end before I join back the queue. You you talked about FI27 guidance from a topline growth perspective. Can you 20:21 20 minutes, 21 seconds provide some color in terms of AIDA margins as well given that we will have the drag of PVR this year while on the base business F2 F3 will see an 20:30 20 minutes, 30 seconds improving utilization by the end of the year. So you do you think you can improve margins over FI26 20:38 20 minutes, 38 seconds levels or we should be baking in flat margins versus it's a good question R. So I think what what's going to happen in my is uh the 20:46 20 minutes, 46 seconds way I see the business is that the pivia drag as I mentioned by the end of the year it will not be a drag anymore and uh for the rest of it will be covered up 20:54 20 minutes, 54 seconds by the core business and the business growth that we're seeing. I think we have a few interesting opportunities in the US. I expect the US business to grow 21:01 21 minutes, 1 second between 10 to 15% at least the RO will continue the growth at 15 plus% API will be closer to the 10% growth and India we 21:09 21 minutes, 9 seconds hope with some changes will get to market growth so with all this we'll have a high contribution in terms of capex also we don't have too much this 21:16 21 minutes, 16 seconds year so I think we will see a definitely see an improvement in the margins this year I expect as I mentioned at some point we will go back up to the 20% kind 21:25 21 minutes, 25 seconds of vibita margins over over a 2 three year period and I expect that this year is going to be good year that we will start seeing improvement in the margins as well. 21:33 21 minutes, 33 seconds Sure sir. Are we quantifying any number for FI27? 21:37 21 minutes, 37 seconds No no no I'm not giving any guidance. I think let's see how the first couple of quarters go and then we'll get an idea. Sure sir. Thank you. I will join that. 21:47 21 minutes, 47 seconds Thank you. Before we take the next question a reminder to all the participants. You may press star and then one to ask a question. Our next 21:56 21 minutes, 56 seconds question comes from the line of Tushar Manutan from Motila Rosal Financial Services. Please go ahead. So thanks for the opportunity sir. Uh sir 22:04 22 minutes, 4 seconds just on your US guidance of 10 to 15% is INR term right? So 5 6% depreciation is what is uh currency depreciation is what 22:13 22 minutes, 13 seconds is baked in. So effectively 7 8% growth in constant currency terms. Is that the way to think about? 22:19 22 minutes, 19 seconds Yeah I think I again it's not a guidance but just the way I see the business right now. we'll definitely have growth in the uh market. Yeah, that's one way 22:26 22 minutes, 26 seconds of looking at it. I'm saying yeah, in terms of INR terms, I mentioned 10 to 15%. 22:32 22 minutes, 32 seconds And so on peptide side like what kind of uh investment we are in terms of R&D and in terms of capex separately. 22:42 22 minutes, 42 seconds So capex is all done. I think we've already completed the capex for the peptides. Uh this was a filing that had to happen. So the batches and it's 22:49 22 minutes, 49 seconds important it's a big filing. So hence we had some cost related to that. Uh moving forward we will not have as many such costs I think as in when a product comes 22:57 22 minutes, 57 seconds into development but we this was an outlier because the batches were conducted and there was a NZ minus one filing. 23:03 23 minutes, 3 seconds So how many filings are we sort of thinking on peptides maybe over next 12 months? 23:09 23 minutes, 9 seconds Uh we've got a couple I think uh the portfolio is about five to six that we have. I think uh what two of them are filed already and the rest are going on. 23:20 23 minutes, 20 seconds And uh sorry for my ignorance but how much cex we have already done for the sites uh I think there was 50 23:30 23 minutes, 30 seconds I think we haven't given a disclosure because it's a part of our already ongoing existing API facility is that's why we've done the peptide API uh 23:37 23 minutes, 37 seconds investment in terms of the formulation it gets taken care of by a regular formulation capacity that we have 23:45 23 minutes, 45 seconds okay so this is not a dedicated capex for peptide indexes and no it is part of a facility and an ongoing facility where we've fine- tuned one block. 23:56 23 minutes, 56 seconds So on API side at a portfolio level have you seen um like sort of price increases given the the crude linked derivative 24:06 24 minutes, 6 seconds solvents have seen sharp increase in prices. So um so subsequently have you seen API prices moving up for us? 24:15 24 minutes, 15 seconds So API prices still to okay no good question. So I'll just give you a background I think just as you know as you said um I'll give you a 24:23 24 minutes, 23 seconds background about our API business. Our API business we generally it's a pretty high margin business and a pretty high um it's a quite a profitable business 24:30 24 minutes, 30 seconds for us because one of the reasons is we do sell APIs at a much higher price. I think we don't compete at the bottom level with the whether for lack of a 24:39 24 minutes, 39 seconds better whether Chinese or the are dropping prices I think so we do have premium prices on the markets that's one and our business values the compliance 24:47 24 minutes, 47 seconds and the supply chain resilience right uh so we have good prices on the API side in the market secondly I think in terms 24:54 24 minutes, 54 seconds of are we seeing increase and some solid yes we're seeing it have we pass it on no it's it's still not a materially a 25:01 25 minutes, 1 second big issue for us as you know we generally do carry a higher a bit of inventory and that's helped us out right now. I think we're okay. We're utilizing 25:08 25 minutes, 8 seconds the inventory. We do have higher prices so that's not as much of a concern for us at this stage. 25:15 25 minutes, 15 seconds Understood. So probably considering the current inventory is at least for at least next I think it's it's yeah it's not impact 25:23 25 minutes, 23 seconds any margin. It not impacting any margins for us. 25:29 25 minutes, 29 seconds Okay. And as far as branded uh business go so uh post launch of course it's too 25:36 25 minutes, 36 seconds short a time period but any uh sort of either in terms of increasing description or uh any color you would like to throw. 25:46 25 minutes, 46 seconds Yeah. So I don't have any uh yeah I don't have any data that I can share with all of you but I can just say it's just been only fair that we launched. So it's only been a couple of months and I 25:55 25 minutes, 55 seconds think this is where we're visiting the doctors. uh we've started off with a smaller field force uh reaching out to doctors only in high prescription 26:02 26 minutes, 2 seconds territory for UTI. So we're seeing a good trend. We're seeing a good feedback. I think it'll be a couple of be another quarter or two till we are 26:10 26 minutes, 10 seconds more comfortable giving out more metrics on this. 26:15 26 minutes, 15 seconds And lastly just on a broader question like uh in terms of capital allocation like the peptide is one area where we've done reasonable investment over last one 26:24 26 minutes, 24 seconds to two years. Now this branded business is there. So likewise in any other areas where the capital allocation would 26:30 26 minutes, 30 seconds happen in let's say over FI 2728 or these are the key areas to focus on now. 26:37 26 minutes, 37 seconds Yeah. So I think uh what's going to happen is in terms of uh capital allocation if you say in terms of capex we're broadly done with all our capex 26:45 26 minutes, 45 seconds even the branded business it doesn't entail any capex I think the only investment was in licensing of the product. So on the branded side we will 26:52 26 minutes, 52 seconds in license few more products. We're seeing some opportunities that we can build into Olympic therapeutics to grow the branded business. So that is one part. Second is the R&D investments will 27:00 27 minutes continue though in a measured manner to see where it happens and that's it. I think these are the two broad areas and complex products is where so basically 27:08 27 minutes, 8 seconds it'll be R&D and uh the branded business. 27:13 27 minutes, 13 seconds All right. Thanks. That's it from Thank you. 27:23 27 minutes, 23 seconds participants. If you wish to register for a question, please press star and then one now. 27:36 27 minutes, 36 seconds As there are no further questions from the participants, I now hand the conference over to Mr. J. Krishnan for closing comments. 27:44 27 minutes, 44 seconds Thank you for joining us on the quarter 4 in familiar uh uh conference call. Uh if you have got any follow-up questions 27:52 27 minutes, 52 seconds uh please reach out to the investor relations team. Thank you. Thank you. 28:00 28 minutes Ladies and gentlemen, on behalf of Olympic Pharmaceuticals Limited, we conclude this conference. Thank you everyone for joining us and you may not disconnect lines.