Alivus Life Sciences Limited — Q4 FY26

Alivus Life Sciences Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=RlZvB13VaZo Published: 1d ago

0:00 Ladies and gentlemen, good day and welcome to the Q4 FI26 earnings conference call for Alivis Life Sciences 0:08 8 seconds Limited, formerly known as Glenmark Life Sciences Limited. As a reminder, all participant lines will be in the listen 0:15 15 seconds only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:29 29 seconds it at stone 4. Please note that this conference is being recorded. I now hand the conference over to Miss Shomi Ra. 0:38 38 seconds Thank you and over to you ma'am. 0:41 41 seconds Good morning everyone. I welcome you all to the earnings call of Alivas Life Sciences Limited for the quarter and financial year ended March 31st, 2026. 0:50 50 seconds From Alivas Life Sciences, we have with us Dr. Yasiri Raji, our MD and CEO, and Mr. Tushar Mitsri, our CFO. Our board 0:58 58 seconds has approved the results for the quarter ended March 31st, 2026. We have released it to the stock exchanges and updated the website. Please note that the 1:05 1 minute, 5 seconds recording and transcript of this call will be available on the website of the company. Now, I'd like to draw your attention to the fact that some of the information shared as part of this call, 1:14 1 minute, 14 seconds especially information with respect to our plans and strategies, may contain certain forward-looking statements and involve risks and uncertainties. These 1:21 1 minute, 21 seconds statements are based on current expectations, forecasts, and assumptions that are subject to risks and which could cause actual results to defer materially from these statements 1:30 1 minute, 30 seconds depending upon the economic conditions, government policies, and other incidental factors. Such statements should not be regarded by recipients as a substrate of their own judgment. The 1:38 1 minute, 38 seconds company undertakes no obligation to update or revise any forward-looking statements. Our actual results may differ materially from those expressed 1:45 1 minute, 45 seconds in or implied by these forward-looking statements. With that, I invite Dr. 1:49 1 minute, 49 seconds Yasir Raji to say a few words. Thank you and over to you, Dr. 1:52 1 minute, 52 seconds Shomi. Thank you. Uh good morning everyone and welcome to our Q4 and uh FYI26 learnings call. I am pleased to 2:01 2 minutes, 1 second share that this year marks an important milestone in the journey of Alias Life Sciences as we complete two full years 2:08 2 minutes, 8 seconds with Nirmma as our promoter. During this period, we transitioned and strengthened the foundation of our business as we position the company for its next phase 2:16 2 minutes, 16 seconds of sustainable growth. The partnership with Nirmma brought enhanced financial strength, long-term stability, and 2:24 2 minutes, 24 seconds greater flexibility to invest in future growth opportunities. Our focus on building a more diversified and resilient uh business model remained 2:32 2 minutes, 32 seconds while we have accelerated strengthening our product portfolio, expanding capabilities and steadily improving the overall quality of business. During this 2:42 2 minutes, 42 seconds period, we have faced some headwinds like uncertainties around tariffs and regulatory shifts. These factors 2:48 2 minutes, 48 seconds continue to disrupt supply chains um elevated logistics and energy costs and created uncertainty across global 2:57 2 minutes, 57 seconds markets making resilience and agility increasingly critical. 3:02 3 minutes, 2 seconds Despite these challenges, Alias has not only navigated this environment successfully, but has also meaningfully improved the quality of its business. 3:11 3 minutes, 11 seconds This is reflected in the strong and consistent performance of our nonGPL segment whose contribution to the overall business has steadily increased 3:19 3 minutes, 19 seconds over the years from 59% in FI22 to 71% in FY26 thereby reducing our dependence on the 3:27 3 minutes, 27 seconds GPL business. This growth reflects the increasing diversification of our portfolio and geographies supported by 3:34 3 minutes, 34 seconds robust demand across regulated markets and sustained momentum from new product launches. 3:40 3 minutes, 40 seconds We expect the contribution from the nonGPL business to continue to increase going forward. 3:47 3 minutes, 47 seconds We also witnessed a meaningful recovery in the CDMO business from Q3 of FI26 as existing projects gained traction and new pro newer projects scaled up. 3:58 3 minutes, 58 seconds Notably, the improvement in the quality of our business is reflected in our profitably profitability profile. We 4:06 4 minutes, 6 seconds continue to improve our EITA margins and remain among the industry leaders in profitability. To add more perspective, 4:15 4 minutes, 15 seconds between FI24 to FI26, our revenue kagger stood at 5.7% while EBA kagger during the same period was 15.8%. 4:25 4 minutes, 25 seconds In absolute terms, we approximately added 270 crores of incremental revenue 4:32 4 minutes, 32 seconds and 200 20 I'm sorry 270 crores of incremental revenue over the last two years and 220 crores on the AITA side taking our margins to 33.6%. 4:44 4 minutes, 44 seconds The highest in our history. What is particularly noteworthy is that this improvement was achieved despite the loss of PLI benefit. This was driven by 4:53 4 minutes, 53 seconds a favorable product mix, disciplined cost management, operational efficiencies, and an increasing focus on high value differentiated products. As a 5:02 5 minutes, 2 seconds result, we have consistently generated healthy cash flows, strengthened our balance sheet, and maintained a net debt-free position. Over the last two 5:11 5 minutes, 11 seconds years, we have demonstrated the resilience of our operating model and the strength of our diversified portfolio. This has reinforced our confidence on the strategic direction we 5:20 5 minutes, 20 seconds have taken. as this steadily translates into a stronger, higher quality and more sustainable business. Moving to our 5:27 5 minutes, 27 seconds fullear performance, our revenue for the year stood at 2552 cr registering a 6.9% 5:36 5 minutes, 36 seconds year-on-year growth with the and with the nonGPL business leading the momentum with 13% growth. This performance was 5:45 5 minutes, 45 seconds supported by strong execution across markets including Europe, Japan, LATAM, RO and India. Growth was further aided 5:53 5 minutes, 53 seconds by new product launches and the recovery in the CDMO business. We have added 11 new products during the year and the 6:01 6 minutes, 1 second current portfolio stands at 176 unique molecules. We have also added 49 new 6:09 6 minutes, 9 seconds customers during FI26, taking our total base of customers to above 900. 6:15 6 minutes, 15 seconds We deliver a bit margins of 33.6% expanding by 360 basis points highlighting the inherent strength and 6:22 6 minutes, 22 seconds operating efficiency of our business. On the capex front, Sholapur phase 1 is progressing as planned and is expected to be operational in Q2 of this year. 6:33 6 minutes, 33 seconds While construction of the R&D center of the new R&D center in Taloja in Navi Mumbai is also underway. 6:41 6 minutes, 41 seconds Our pipeline remains robust with over 611 DMF and C filings globally as on 6:50 6 minutes, 50 seconds March 31st 2026. The high potent API portfolio remains on the development path with 28 products in the pipeline. 7:00 7 minutes 12 of these products are validated. 7:03 7 minutes, 3 seconds Seven products are in advanced stages of development and the remaining nine products are progressing well through lab development stages. Given the 7:11 7 minutes, 11 seconds ongoing geopolitical conflicts and uncertainties around global demand, we continue to remain watchful of the external environment. 7:20 7 minutes, 20 seconds However, we remain confident in the strength of our business fundamentals and our ability to sustain EITA margins in the range of 30 to 32%. 7:31 7 minutes, 31 seconds Going forward with this, I now turn the floor to our CFO, Mr. Tushar Mistri, who will walk you through our financial performance for the quarter in depth. 7:40 7 minutes, 40 seconds Over to you, Tushar. 7:44 7 minutes, 44 seconds Thank you, Dr. Yaser. Good morning, everyone. Welcome to our Q4 and FI26 earnings call. 7:50 7 minutes, 50 seconds Adding to Dr. Yas's commentary, I would like to share a few insights on our performance over the last two years, particularly how our growth profile and 7:58 7 minutes, 58 seconds profitability have meaningfully improved. Our growth has become more broad-based and importantly our dependence on any single plant is 8:06 8 minutes, 6 seconds gradually reducing. To illustrate the these while our GPL revenues have remained relatively stable over the past two years, our nonGPL revenues have 8:14 8 minutes, 14 seconds grown at a kag of 7.5% during the same period. This shift in mix is also reflected in our profitability with 8:21 8 minutes, 21 seconds margins improving from 28% in FI24 to 34% in FI26. 8:27 8 minutes, 27 seconds This clearly demonstrates the new business we are adding is more profitable and value effective in nature. 8:33 8 minutes, 33 seconds With ongoing and continued investments in new technologies and products, we remain confident in our ability to sustain this margin trajectory moving forward. 8:42 8 minutes, 42 seconds Now I would like to highlight the key performance updates for the quarter and truly ended 31st March 2026. 8:48 8 minutes, 48 seconds For Q4 FI26 revenue from operations stood at 689 crores reflecting a growth of 6.11% yearon year. Gross profit for 8:57 8 minutes, 57 seconds the quarter was rupes 418 crores up 14% yearon year. Gross margin for the quarter stood at 60.7% up 420 basis 9:06 9 minutes, 6 seconds points yearon year driven by new launches product mix and operational efficiency. 9:11 9 minutes, 11 seconds Debit for the quarter was at rupes 237 crores up 13.8% yearonear. 9:18 9 minutes, 18 seconds Debita margin for the quarter was 34.4% up 230 basis points year on year. PAT for the quarter stood at 163 crores with pack margins at 23.6%. 9:30 9 minutes, 30 seconds For full year FI26 revenue from operations stood at 2552 crores, a growth of 6.9% yearon year. Gross profit 9:37 9 minutes, 37 seconds for FI26 was at 1,485 crores, up 13.7% yearonear. Gross margins for FI26 stood 9:44 9 minutes, 44 seconds at 58.2% up 350 basis points. Evida for FI26 was at 858 crores up 19.6% yearon 9:55 9 minutes, 55 seconds year. Evida margin was at 33.6% which was up by 366 basis points year on year. 10:02 10 minutes, 2 seconds PAT for FI26 stood at 565 crores with PAT margins at 22.1%. 10:08 10 minutes, 8 seconds Turning to the mix, CVS and CNS continue to lead the growth during the quarter with both therapist contributing 50% to the top line. In addition, we are 10:17 10 minutes, 17 seconds gaining traction in newer therapies like respiratory and anti which correctively contribute more than 10% of our revenues. Now, chronic therapies 10:25 10 minutes, 25 seconds continue to outgrow acute segment and contributed 67% to the top line in FI26. 10:31 10 minutes, 31 seconds R&D expenditure for Q4 FI26 was rupes 25 crores which was at 3.6% of our sales and for the full year financial 26 it 10:39 10 minutes, 39 seconds was rup 91 crores again 3.6% 6% of our sales. 10:45 10 minutes, 45 seconds Before I delve into cash flow details, I would like to first highlight a fundamental shift in how the company is utilizing its cash. As many of you are 10:53 10 minutes, 53 seconds aware, prior to FI24, while our operating engine was strong and consistently generated cash, a large part of that cash was upstream. 11:02 11 minutes, 2 seconds FI24 marked a clear inflection point. 11:04 11 minutes, 4 seconds Over last two years we have generated cash particials of above 9 984 crores of which we have invested in capex of 472 11:12 11 minutes, 12 seconds crores paid dividend of 61 crores and resulted in a watches of 451 crores. Let me now move to the current year's cash 11:21 11 minutes, 21 seconds flows. As of 31st March 2026 our cash and cash equivalent stood at 782 crores with capex for the years being 306 11:29 11 minutes, 29 seconds crores. Looking ahead to FI27, we plan to incur a capex of about 540 crores which includes carryover commitments 11:36 11 minutes, 36 seconds from FI26 as well as fresh capital investments. Importantly, this entire capex will be funded through internal approvals. These investments are focused 11:46 11 minutes, 46 seconds on building new capabilities at Shalapur, our green field project, as well as strengthening our R&D platform. 11:52 11 minutes, 52 seconds The capacity we are adding today will take us to 1,198 K from 1,198 KL at FI24 12:00 12 minutes to a planned 269K by FI28, positioning the company to try sustained growth well beyond FI28. With that, let us open the floor for Q&A. 12:32 12 minutes, 32 seconds So shall we open the floor for questions? Yes, we can start. 12:39 12 minutes, 39 seconds Thank you very much. We will now begin with the question and answer session. 12:43 12 minutes, 43 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove 12:51 12 minutes, 51 seconds yourself from the question cube, you may press star and two. Participants, you are requested to use handsets while 12:58 12 minutes, 58 seconds asking a question. Ladies and gentlemen, we will wait for a moment while the question stands. 13:09 13 minutes, 9 seconds A reminder to all you may press star and one to ask the question. 13:20 13 minutes, 20 seconds We will take the first question from the line of Ahmed Madha from Unifi Capital. Please go ahead. 13:27 13 minutes, 27 seconds Yeah, thanks for the opportunity and congratulations on the great execution you have delivered over last two years 13:33 13 minutes, 33 seconds posting in the ownership. Uh my first question is uh we had a fire incident at the H plant. Can you quantify was there 13:43 13 minutes, 43 seconds any impact of production and sales and is there any spillover we are expecting in Q1 and also was there any cost booked related to the same on PN? 13:58 13 minutes, 58 seconds So the fire at the hedge uh were impacted only the intermediate 14:05 14 minutes, 5 seconds side of the facility. The API the finished uh formula the finished area 14:12 14 minutes, 12 seconds was was uh kept was intact. So we didn't experience any great delays. Uh as a 14:20 14 minutes, 20 seconds result of that uh there is no significant spillover. There is some butth not very significant 14:28 14 minutes, 28 seconds u and we hope to be able to type that by uh in Q1 14:35 14 minutes, 35 seconds from an expense perspective. Yes. Uh we have booked a loss due to fire and or other expenses to the extent of 20 14:43 14 minutes, 43 seconds crores and that's why you see a jump in the other expenses line item. 14:49 14 minutes, 49 seconds Okay. So just to clarify on this out of 126 crores 20 kores is uh related to the 14:57 14 minutes, 57 seconds impact um and on the employee cost side is that jump organic uh or is there something else as well? 15:06 15 minutes, 6 seconds So on the employee cost side uh we have acured the uh performance bonuses since the performance for the company is uh good. 15:15 15 minutes, 15 seconds Uh there are certain performance bonuses which are payable to the employees and those have been accured uh in the last quarter. 15:22 15 minutes, 22 seconds Okay. Sure that uh helps. uh other question considering the lot of volatility we are seeing in uh global 15:31 15 minutes, 31 seconds metros there is obviously some uh forex impact we'll be seeing and I'm assuming it will be positive considering we are net 15:39 15 minutes, 39 seconds exporters uh can you quantify does that sort of helps us in a gross margins uh 15:46 15 minutes, 46 seconds is that sort of number baked in a gross margins uh if possible to quantify and give your thoughts around and I'm assuming there will be some impact 15:53 15 minutes, 53 seconds because of you on appreciation and uh according imports uh cost. So that's first and second uh was there any major 16:02 16 minutes, 2 seconds uh forex gain booked in other income in uh Q4 or in full FI26. 16:14 16 minutes, 14 seconds Okay. So uh yeah there is a element of forex gain uh for the year in the P&L. 16:21 16 minutes, 21 seconds Uh as you rightly mentioned that uh since we are net exporters uh any rupee depreciation definitely 16:28 16 minutes, 28 seconds helps us uh for the entire year on the P&L we have seen a net uh gain of about uh 31 cr on the P&L. 16:39 16 minutes, 39 seconds uh and uh for the quarter it is about uh your next question is on the other income side uh there is about 11 crores of gain that 16:48 16 minutes, 48 seconds we have booked for Q4 and about 20 crores for the full year that we have booked. Okay. Sure. And are we seeing 16:57 16 minutes, 57 seconds any challenges in terms of RM procurement, RM cost, uh pressure in terms of gross margin because of cost 17:04 17 minutes, 4 seconds inflation, any logistic issues uh on the business in general? I mean obviously will be facing challenge but something uh significant if you can call out. 17:16 17 minutes, 16 seconds So freight was impacted first starting from uh February 28th itself. 17:23 17 minutes, 23 seconds Okay. and uh more or less that has been passed on to customers. Um okay, as far as uh material costs go, 17:33 17 minutes, 33 seconds solvents were the first u materials that uh went up quite significantly. 17:41 17 minutes, 41 seconds The good thing is that solvents contribute about 12 13% to our overall uh cost. 17:48 17 minutes, 48 seconds So uh yeah there is an increase but again on the overall cost it's not going to have that big an impact. Of course we 17:57 17 minutes, 57 seconds are in touch with our customers to u you know give them that view and most customers are 18:06 18 minutes, 6 seconds agreeable to take on that added cost whether it relates to freight or relates to material costs. 18:15 18 minutes, 15 seconds So we don't expect an impact So that helps and in the industry 18:22 18 minutes, 22 seconds environment in general for pricing uh how would you evaluate a current environment uh is it sort of a steady I 18:32 18 minutes, 32 seconds mean apart from what has happened because of war but in general are you seeing any improvement in uh pricing 18:39 18 minutes, 39 seconds environment for uh your API business for our markets on our portfolio. The 18:48 18 minutes, 48 seconds pricing environment has been reasonably stable to begin with and uh the war should not have any effect on the pricing environment. 19:01 19 minutes, 1 second So last question from my side in terms of inorganic opportunities if you can uh give some uh thinking how you are uh 19:10 19 minutes, 10 seconds thinking about that piece uh what sort of what sort of profile of business you are looking for and are we any close to uh do something. 19:23 19 minutes, 23 seconds So we are actively looking okay and the direction is to uh basically enhance the 19:31 19 minutes, 31 seconds platform that we already have. So our goal is to extract more value from our 19:39 19 minutes, 39 seconds uh pretty large and uh uh diverse pipeline of APIs. So if we can sort of u 19:48 19 minutes, 48 seconds you know milk that pipeline much more through a lateral buildup of uh allied platforms 19:56 19 minutes, 56 seconds then um uh that's the direction we are looking into in terms of uh inorganic. 20:06 20 minutes, 6 seconds Sure. Uh thank you so much and all the best. Thank you. 20:12 20 minutes, 12 seconds Thank you. Before we take the next question, a reminder to all. You may press star and one to ask a question. We 20:21 20 minutes, 21 seconds will take the next question from the line of Krishna Saha from Quartm AMC. Please go ahead. 20:27 20 minutes, 27 seconds Yeah, good morning. Yeah, thank you. So question just um just trying to understand something about the 20:36 20 minutes, 36 seconds improvement of the margin. So the material cost has been flat. Uh but the what do you call contribution of CDM as a percentage of revenue has been flat 20:45 20 minutes, 45 seconds also. Is it largely because the lar Yeah. 20:49 20 minutes, 49 seconds You know yeah need to be a little more clear probably move closer to the mic not use the speaker phone. I don't know. 20:57 20 minutes, 57 seconds No I'm not using just yes just yes just 20:58 20 minutes, 58 seconds yes just yes just yes just yes just yes just yes just yes just yes. Can you hear me? Hello. Yes. Yes. Yes. Please continue. Hello. Hello. Yes, we can hear you. 21:07 21 minutes, 7 seconds Yeah. Yeah. Yeah. Just uh a couple of questions. Uh I'm looking at the on a Y basis, our material cost is practically 21:16 21 minutes, 16 seconds flat and our CDMO share of revenue has been also flat. Just understanding has the product mix from the CD been largely 21:25 21 minutes, 25 seconds superior in the past that is why we have an expansion in the EITA margin. 21:31 21 minutes, 31 seconds The CDMO definitely has better margins but u are CDMO businesses grown 18%. Why do we say it's flat? I don't know. 21:42 21 minutes, 42 seconds No, I mean sorry let me rephrase the question. The percentage of revenue is still flat at 6% 5 and a half and 6% compared to the last year also. So uh 21:51 21 minutes, 51 seconds contribution to the total revenue uh is still the same. So I'm just wondering is it largely because of the larger superior of the CTMO or within the CTMO that's what I'm trying to understand. 22:02 22 minutes, 2 seconds Okay. So margin you know improvement in margin has got like I would say three to four factors. Uh yes 22:09 22 minutes, 9 seconds operational efficiency has helped uh we have had uh better cost processes implemented. 22:19 22 minutes, 19 seconds Okay. CDMO has gone from 6% last year to 7% this year in terms and I mean FI25 it was 6%. It's down to 7% in FI26. 22:32 22 minutes, 32 seconds Yes. 22:32 22 minutes, 32 seconds Okay. And that certainly matters but we've also had some u good launches of a of generic API in the uh in multiple 22:42 22 minutes, 42 seconds markets. So all in all that is how we've achieved better margins and the backward integration on to of 22:51 22 minutes, 51 seconds all to the H solapur has that played out as of now? No, not yet. No, backward integration in a big way still has to, 23:01 23 minutes, 1 second you know, contribute. Uh there's some but not very significant because shapur is still not yet online and we don't have the capacity for backward 23:09 23 minutes, 9 seconds integration uh you know uh yet uh in the regular plans. So shapur should be up 23:17 23 minutes, 17 seconds and running u in Q2 and then we hope to uh you know implement uh those backward integration projects 23:25 23 minutes, 25 seconds that helps us in the margin I suppose I understand that correct yeah we hope to we hope to have some benefit from that 23:32 23 minutes, 32 seconds and s something about solar being reinspected or something are we going for any regulatory inspection over there it's going to be normal as 23:41 23 minutes, 41 seconds I think you're probably referring to an or because shapur is not yet commissioned and then it's no I know I mean in the future do we 23:49 23 minutes, 49 seconds look at uh implementing shapur for regulated markets because we only have shapur for the ro markets so I I was wondering do we go for the regulated 23:58 23 minutes, 58 seconds markets for scholarapur also yeah yeah that is the plan very much I see and last question from my when you 24:05 24 minutes, 5 seconds when we talk about um high potency API has been delegated the validation is when I understand when I hear that I 24:12 24 minutes, 12 seconds mean just to clarify you know I understand less of a subject. So I mean the innovator or the client has 24:19 24 minutes, 19 seconds validated with the object or the API or the molecule, right? 24:23 24 minutes, 23 seconds Yeah. Yeah. So the thing is that it's a it's a progression. So before we validate we've already sort of engaged 24:30 24 minutes, 30 seconds with the potential customer and then when they are ready to take exhibit batches is when is when we get valid we 24:37 24 minutes, 37 seconds validate the material in the in the plant so that larger quantities are also generated as a result. 24:44 24 minutes, 44 seconds Okay. So the validation they have started taking uh um small amounts validation amounts from us for the last for the 78 molecules which we have right 24:53 24 minutes, 53 seconds now and the high potency API that's what I can understand. 24:56 24 minutes, 56 seconds That's right and and high potency API will be a better margin than the rest of the business. Right. 25:04 25 minutes, 4 seconds uh let's see that that has to play out because most high potency APIs that we are working in have patent expireies uh 25:11 25 minutes, 11 seconds that are going to uh come in from uh the year 2028. 25:18 25 minutes, 18 seconds So it remains to be seen but yes uh typically these molecules do attract better margins. 25:27 25 minutes, 27 seconds I see okay better margins. Thanks plenty. Thank you. Thank you for your time. I'll get back in with you. Sure. Sure. 25:37 25 minutes, 37 seconds Thank you. We will take the next question from the line of Shmeta from ICIC. Please go ahead. 25:44 25 minutes, 44 seconds Uh hello sir. Thank you for the opportunity. Uh so building on to the questions of previous uh participant on 25:51 25 minutes, 51 seconds hypotent molecule contribution. I wanted to understand this year we had 12 molecules which were uh uh there and 25:59 25 minutes, 59 seconds last year if I see uh seem the size was seven molecules which were there uh submitted and uh accepted. So uh can you 26:07 26 minutes, 7 seconds help me understand what was the contribution of uh high potent molecules this year's portfolio with last year? 26:16 26 minutes, 16 seconds So, so see the only contribution that we get is from the sale of exhibit batch quantities because like I explained the 26:24 26 minutes, 24 seconds patent expireies are not going to happen until early 2028. 26:28 26 minutes, 28 seconds So until then our customers would not be able to launch and uh would not be able to buy API from us for those launches. 26:39 26 minutes, 39 seconds So the only sort of revenue that comes from the hypotent segment right now is the sale of exhibit badge quantities. 26:49 26 minutes, 49 seconds So it it'll be fair that it will not be the material contribution for us in revenue not very significant. No. 26:56 26 minutes, 56 seconds All right. Uh second question is uh said that uh uh growth how much would be the growth contribution from the 12 new 27:04 27 minutes, 4 seconds introductions which we had for this entire year? 27:08 27 minutes, 8 seconds uh and and what would be the price erosion in our base business if I exclude GTL and CDMO business? 27:15 27 minutes, 15 seconds See again these 12 molecules are new molecules. Their patent expireies are you know going to happen in the next 5 to seven years. 27:24 27 minutes, 24 seconds Uh I'm not asking about no no regular one. Okay. 27:31 27 minutes, 31 seconds You know because typically we don't go for already genericized uh APIs. Okay. 27:38 27 minutes, 38 seconds Okay. That's the idea. And you wanted to know the base business erosion. What what were you asking? 27:45 27 minutes, 45 seconds Price erosion in base business excluding GPL and CDMO. 27:51 27 minutes, 51 seconds Yeah. So on that the price erosion is about 5 and a half% is what we have seen on the nonGPL nonDMO. 27:58 27 minutes, 58 seconds Okay. All right. So uh uh if I if I exclude despite that we have uh grown 28:05 28 minutes, 5 seconds pretty well uh 13% kind of growth in the base business uh if I exclude GPL and uh CDN that that seems pretty healthy. Are 28:13 28 minutes, 13 seconds we are we expecting to continue that traction over there? 28:18 28 minutes, 18 seconds Yes, that is what we thank you. Thank you. 28:26 28 minutes, 26 seconds Thank you. We will take the next question from the line of Sunil Kotari from Unique PMS. Please go ahead. 28:34 28 minutes, 34 seconds Hi, thanks for opportunity sir. Uh congratulation for this transformative journey under this uh Nirmma and your 28:41 28 minutes, 41 seconds leadership the way we achieved our cash flow control then the way we are started 28:47 28 minutes, 47 seconds investing uh and the way we leverage the benefits of better operating margin. My question is sir first is yet another 28:57 28 minutes, 57 seconds scope which are the another area where you feel you have scope to improve further the margin or maybe maintaining this uh very respectable margin. 29:08 29 minutes, 8 seconds See this year is going to be a bit challenging because of the war. uh supply chains do have a little bit of constraint 29:17 29 minutes, 17 seconds but uh uh you know there is there is enough uh you know demand visibility is 29:24 29 minutes, 24 seconds pretty good. So uh we'll have to see how the whole margin thing shapes out but 29:32 29 minutes, 32 seconds shapes uh shapes up but the thing is we are still confident of maintaining between 30 and 32 uh you know uh percent. 29:42 29 minutes, 42 seconds Yeah. 29:42 29 minutes, 42 seconds So let's see how it goes. It's a bit you know it's a bit early to sort of give the whole year margin guidance of 29:49 29 minutes, 49 seconds sir I just wanted to understand which are the area where you see internally where you find the scope to improve the 29:57 29 minutes, 57 seconds margin without giving any numbers but you see any area where you feel internally you can do something which will help us to improve the margin. 30:06 30 minutes, 6 seconds So see backward integration is certainly one area where uh you know uh we see some scope uh for margin improvement and 30:15 30 minutes, 15 seconds once shapur comes online in the second half of the year uh we we will be uh you 30:22 30 minutes, 22 seconds know doing backward integration on a few key projects and that momentum will build up as we go along 30:30 30 minutes, 30 seconds and that's the yeah please sure and sir second question is during last year our objective and our basic 30:40 30 minutes, 40 seconds strategy is to we don't want to go for a very commoditized any activity or business and that's why we are very respectable very highly profitable and a 30:48 30 minutes, 48 seconds business only but looking at the cost structure the way we invest the way inflation is working if we don't grow in 30:58 30 minutes, 58 seconds a double digit then it becomes very challenging to give a better bottom line that is our understanding as A investor 31:06 31 minutes, 6 seconds what is your thought process for next 2 three year will be able to move from single digit lower single digit mid single digit to maybe little higher or mid uh double digit uh revenue growth. 31:19 31 minutes, 19 seconds See in the nonGPL business we are already growing at double digit. Yes. 31:24 31 minutes, 24 seconds So thing is that the GPL business is a bit wavy. So it remains to be seen but 31:30 31 minutes, 30 seconds we are not seeing it you know keeping uh you know staying in line with the nonGPL business. So that element will be there. 31:39 31 minutes, 39 seconds But what's also happening is that as the nonGPL business grows faster, the contribution of the GPL business is 31:47 31 minutes, 47 seconds going to be much less as we go forward. 31:51 31 minutes, 51 seconds And uh honestly, see I mean we've interacted with you right before as well. The thing is that the focus for us 31:58 31 minutes, 58 seconds is on you know having a good margin profile for the business and generating uh good profits which translate into 32:06 32 minutes, 6 seconds good cash generation. So maintaining a high quality business is a is a much bigger priority for Alias. Okay. And 32:15 32 minutes, 15 seconds growth will come. I'm not saying that growth will not come but uh growth will not be pursued at the cost of uh you 32:24 32 minutes, 24 seconds know uh margins because it creates a lot of u other challenges then 32:32 32 minutes, 32 seconds great sir lots of good wishes thanks a lot you thank you before we take the next 32:39 32 minutes, 39 seconds question a reminder to all you may press star and one to ask a 32:49 32 minutes, 49 seconds The next question is from the line of yogani from Omega Portfolio Advisor. Please go ahead. 32:55 32 minutes, 55 seconds Hello. Thank you for taking my question and I just wanted to congratulate the team on great results. I had a question 33:03 33 minutes, 3 seconds regarding the capacity utilization for the new um facility that will be coming up in Ankleshwar and Solapur. So as I 33:10 33 minutes, 10 seconds see in Q2 and Q3 we will have a bulk of our capeex coming live. So how much time would it take for it to get to an 33:17 33 minutes, 17 seconds optimal capacity utilization because like if it's coming in Q2 I don't believe that it would like be ramped up immediately. So could you just share 33:26 33 minutes, 26 seconds timelines in terms of capacity utilization we see in our new brown brownfield and green field facilities? 33:33 33 minutes, 33 seconds Yeah sure. So see capacity utilization in the brownfield uh will be pretty rapid in terms of 33:42 33 minutes, 42 seconds bringing it at the you know 80 90% level in a matter of two to three quarters because that's brownfield that's an 33:50 33 minutes, 50 seconds approved site inspected by FDA and other agencies. So that capacity will get taken up pretty quickly. As far as 33:59 33 minutes, 59 seconds Sholapur goes, we have done a fair amount of product mapping in Shapur. 34:06 34 minutes, 6 seconds So we expect that in when Sholur starts off, we should start off with a robust 34:13 34 minutes, 13 seconds 40 to 50% utilization and then uh you know probably take it up to 60 70% in 34:19 34 minutes, 19 seconds the following year. So see we have always been calibrated in terms of building out capacity. Okay, we've not 34:28 34 minutes, 28 seconds been uh too adventurous, right? And uh here it helps us because uh we can do it 34:35 34 minutes, 35 seconds uh you know in phases and that's why what we are doing at Shapur uh to start off is uh you know phase one where we 34:44 34 minutes, 44 seconds will have uh 370KL for the BI block and then 20KL for the uh API block. 34:56 34 minutes, 56 seconds Okay. So, capacity utilization should be uh like I said around 40 to 50% to start off with in brownfield will kick in pretty quickly 2 to three quarters. 35:10 35 minutes, 10 seconds So, uh as I understand FI28 because of the huge bulk of the capeex coming live would uh give us a huge revenue jump but again in FI28 and onwards. 35:21 35 minutes, 21 seconds Is that a good understanding? 35:24 35 minutes, 24 seconds It'll definitely give us a runway for new launches and volume growth. Okay. Uh 35:32 35 minutes, 32 seconds but mind you see the shapur capacity like I said the 370KL is for backward integration. Okay. So 35:41 35 minutes, 41 seconds that won't contribute directly to uh front uh you know front- end sales. 35:49 35 minutes, 49 seconds Okay. That capacity should not be factored into any kind of model you're building. 35:54 35 minutes, 54 seconds Okay, fair. I completely understand. And just wanted to understand given after the the green field and the brownfield expansion that have happened, do we have 36:02 36 minutes, 2 seconds further available land bank for expansion down the line or would the next phase again be green field? 36:10 36 minutes, 10 seconds Land bank where do we have land? 36:13 36 minutes, 13 seconds I'm sorry I could not hear you clearly. 36:18 36 minutes, 18 seconds No, I'm I'm just asking for some clarity in the question. I'm not sure I got the question right. Could you please repeat? 36:24 36 minutes, 24 seconds No. So um for our further uh capacity expansions beyond what is already planned, would we need to again go green 36:31 36 minutes, 31 seconds field or do we have land available in our existing uh plans to continue with the expansion? 36:39 36 minutes, 39 seconds Shapur is on 40 acres and uh we would comfortably be able to 36:46 36 minutes, 46 seconds add another 7 to 800 kil of capacity of API capacity in Shodapur. Right now we have only 120 36:54 36 minutes, 54 seconds right. So Shapur should give us a good runway once we hopefully get inspected soon and you know are through with that 37:03 37 minutes, 3 seconds then uh we can ramp up the shapur expansion and then that should give us a runway for at least 3 to four years 37:10 37 minutes, 10 seconds uh you know in shapur uh Ankleshwar has capacity we can ramp up there further but the thing is it's it's still 37:19 37 minutes, 19 seconds it's quite you know it contributes almost 65 70% of our revenue today so we I would like to go a little slow with Ankleshwar and the H is full. 37:30 37 minutes, 30 seconds Okay. Thank you for answering my questions. Sure. Sure. 37:38 37 minutes, 38 seconds Thank you. We will take the next question from the line of Magna Agarwal from Mount Templa. Please go ahead. 37:46 37 minutes, 46 seconds Um hi, good morning. Am I audible? Yes. Yes. Yes ma'am. Your article please proceed. Go ahead. 37:53 37 minutes, 53 seconds Hi, good morning. excited for the opportunity. I just wanted to understand the API system like how is the pricing and volumes going down 38:03 38 minutes, 3 seconds the pricing can you please repeat prices and volume moving in API I didn't 38:12 38 minutes, 12 seconds can you repeat that question uh is hello I'm asking that I wanted to understand what the pricing and the 38:19 38 minutes, 19 seconds volume in the API segment your voice is not clear. It is uh Can 38:27 38 minutes, 27 seconds you be a uh Hello. is it better now? 38:31 38 minutes, 31 seconds Yeah, it is a little better. Yeah, please. 38:33 38 minutes, 33 seconds Yeah, I'm sorry. Um sorry to interrupt in between right now. I would request you to please use the answer mode and speak. 38:41 38 minutes, 41 seconds Yeah, I just wanted to understand the API segment as a whole like what are the pricing and the volume chart improving and how do we see that going forward? 38:52 38 minutes, 52 seconds So uh see there's a there's a significant volume growth in all segments of our business. Uh with 39:01 39 minutes, 1 second respect to the pricing environment uh I answered to an earlier question that we have not faced any major challenges with 39:10 39 minutes, 10 seconds respect to pricing in most of our geographies. 39:13 39 minutes, 13 seconds uh because we have a a newer portfolio and so it's not that commoditized so we 39:20 39 minutes, 20 seconds don't get that much pressure on pricing although on the overall bucket we do see an erosion of around 4 and a half% 39:29 39 minutes, 29 seconds um you know on the uh you know because of the some some price reduction that we have to give on some of the products. 39:39 39 minutes, 39 seconds So that's the overall sort of situation with respect to our portfolio and the volume growth is pretty good and 39:48 39 minutes, 48 seconds uh we expect uh it will continue to be that way. Thank you. Thank you so much. 39:56 39 minutes, 56 seconds Thank you. 40:00 40 minutes Thank you. We will take the next question from the line of VP Rajes from Banyan Capital Advisor. Please go ahead. 40:09 40 minutes, 9 seconds Yeah. Hi, thanks for the opportunity. Uh most of my questions have been answered but just from the turn over uh how should one think about that because it 40:17 40 minutes, 17 seconds has sorry to interrupt between Rajes your voice is not audible. Could you please use the answer mode and speak now? 40:26 40 minutes, 26 seconds Yes please proceed. Hello. 40:28 40 minutes, 28 seconds Yeah. So I was just saying that uh most of my questions have been answered. Uh but just on the asset turnover do you 40:35 40 minutes, 35 seconds think it has stabilized at 2.2 to or do you foresee uh it going down further from here as uh other facilities ramp up? 40:45 40 minutes, 45 seconds So, so it would go down a little bit more because uh you know like we said shapur will be coming online soon and 40:53 40 minutes, 53 seconds some of the brownfield capacity will also be coming uh in but when you compare us to the industry we are still 41:01 41 minutes, 1 second I would say pretty much on top of the table there. 41:06 41 minutes, 6 seconds Okay. So let's say two is a probably a reasonable level that one can expect or could it go down further from that? 41:13 41 minutes, 13 seconds I mean it would temporarily go down below two as well, right? But uh would come back up once the utilization picks up like I explained earlier. 41:26 41 minutes, 26 seconds Sure. Yeah. Sure. Got it. Thank you. Sure. 41:32 41 minutes, 32 seconds Thank you. We will take the next question from the line of Alankar Garud from Kekch Institutional Equities. 41:40 41 minutes, 40 seconds Please go ahead. 41:41 41 minutes, 41 seconds Hi, good morning everyone. Uh sir, we have seen R&D spends increasing consistently over the past few years as 41:48 41 minutes, 48 seconds a percentage of sales. Um we have spoken about low chemistry earlier. You are also talking about high potent API ion 41:56 41 minutes, 56 seconds complexes uh as well as an evolving CDMO pipeline. Can you help us understand a bit more in detail as to where exactly 42:04 42 minutes, 4 seconds your focus lies as far as R&D is concerned and where do you see this R&D uh number as a percentage of sales 42:11 42 minutes, 11 seconds settling over the next two to three years? 42:16 42 minutes, 16 seconds Alanka the areas that you outlined are where we are focusing on R&D and that's really going to drive the growth. Okay. 42:23 42 minutes, 23 seconds As far as settling down, I don't think we'll cross 4%, right? we'll probably be at 4% 42:31 42 minutes, 31 seconds uh you know in the next year or two and then it should settle down I mean you know but then we've needed to fire off 42:39 42 minutes, 39 seconds on many cylinders here because the thing is that that's how the growth will come right uh you mentioned all the areas I don't need to repeat I mean you know you 42:47 42 minutes, 47 seconds talked about flowchemistry you talked about you know the CDMO side and uh you know we are looking seriously into 42:54 42 minutes, 54 seconds pellets and granules uh that's also an area that we've started started working on uh it's that whole lateral expansion 43:01 43 minutes, 1 second of the API. I mean we call it API plus right so u fair amount of investment uh 43:09 43 minutes, 9 seconds is going into that uh and then of course the the pipeline buildup also is geared more towards the more complex molecules. 43:19 43 minutes, 19 seconds So all in all you know put together yes it is uh our R&D spend is going up but 43:26 43 minutes, 26 seconds again it is going to pay off I mean you know much much more than what we are investing today. 43:34 43 minutes, 34 seconds Got it sir. Uh the second one is more of a clarification. Uh when you're speaking about pricing uh would it be fair to 43:42 43 minutes, 42 seconds understand that uh given our portfolio is slightly more uh niche more chronic 43:48 43 minutes, 48 seconds oriented non-commoditized as you said uh any benefit of price hikes is will be 43:56 43 minutes, 56 seconds limited compared to say uh any other company or any other portfolio uh which is much more commoditized than ours amidst this Middle East situation. 44:07 44 minutes, 7 seconds Yeah. So, I don't know if I said it, but I think I did, but most customers are pretty comfortable taking price rises 44:14 44 minutes, 14 seconds because they understand the situation, right? And uh rather than have a slowdown in supplies or not have 44:22 44 minutes, 22 seconds supplies, they've kind of given us the green flag that yeah, that's fine. You know, you go ahead, but uh you know, as long as it's going to be reasonable, we 44:31 44 minutes, 31 seconds are okay to you know, absorb that price increase. And there will be some uh the good thing for us is that the only area 44:39 44 minutes, 39 seconds where we see that increase is on the raw material side. Uh you know on the operations side our operations are going 44:46 44 minutes, 46 seconds to be stable because we moved away from gas. So we moved from gas to you know operating brick boilers. So there is no 44:55 44 minutes, 55 seconds impact on operational cost um you know because of gas shortages or because of uh hikes in price. And that way our uh 45:04 45 minutes, 4 seconds you know the operation cost is going to be stable going forward uh even in a war situation. Uh but yeah certain raw 45:13 45 minutes, 13 seconds materials uh have gone up and are likely to go up even further but uh we've got a 45:20 45 minutes, 20 seconds kind of uh you know green light from our customers that yeah they we can charge them more. It's going to be fine. 45:29 45 minutes, 29 seconds Understood. So basically more or less on the gross margin side, we should not really expect too much of an increase and on the other hand not too much of a drop as well. 45:40 45 minutes, 40 seconds Yeah, you're right. 45:42 45 minutes, 42 seconds Fair enough, sir. Uh that's it from my side. Thank you. Thank you. 45:48 45 minutes, 48 seconds Thank you. We will take the next question from the line of Pratik Kotari from Unique PMS. Please go ahead. 45:57 45 minutes, 57 seconds Yes, sir. Good morning, sir. Uh so just one on CDMO if you can talk about the base three projects if the run rate kind 46:05 46 minutes, 5 seconds of continues and the ramp up that you are expecting for fourth and fifth and also the new uh deals or pipeline that we had on the CDMO piece please. 46:16 46 minutes, 16 seconds So CDMO the fourth and fifth project have kicked in really nicely. uh there's there's some revival even on the uh you 46:25 46 minutes, 25 seconds know the earlier projects and so we expect uh that CDMO will continue this 46:32 46 minutes, 32 seconds momentum. Okay. Uh as far as new projects go we hope to close two new deals 46:39 46 minutes, 39 seconds uh you know in the second half early second half of this year. 46:48 46 minutes, 48 seconds Great. Thank you and all the best. Thank you. 46:54 46 minutes, 54 seconds Thank you. We will take the next question from the line of Deepak Delwani from Unifi Capital. Please go ahead. 47:06 47 minutes, 6 seconds Deeper, please proceed with the question. 47:09 47 minutes, 9 seconds Yeah. Uh a couple of questions. Uh firstly if I look at the new launches which 47:16 47 minutes, 16 seconds probably would have driven the gross margins if you can give some sense uh what uh percentage of revenue incrementally 47:25 47 minutes, 25 seconds has come from the new launches which happened in FI26 some that sort of a benchmark number or uh something you can 47:34 47 minutes, 34 seconds give uh I don't know whether we'll be able to do 47:41 47 minutes, 41 seconds I mean we do have a sense I mean you know we'll have to see but I can't 47:51 47 minutes, 51 seconds just to answer your question as Dr. also explained earlier new launches are not a very significant contributor to the topline revenue growth. Uh they are new 48:00 48 minutes launches and the ramp up will continue to happen on those products. It's not like they are contributing significantly to the growth. 48:11 48 minutes, 11 seconds Okay. Okay. Got it. And u if I look at the HP API pipeline building obviously 48:17 48 minutes, 17 seconds it has built up very well uh last uh couple of years that sort of contribution when you say will start 48:26 48 minutes, 26 seconds coming in uh will it be from the same encourages will start coming in from say FI28 or uh it will take uh some more time. 48:38 48 minutes, 38 seconds No, it'll start in FI28. No, because customers order material uh you know 48:46 48 minutes, 46 seconds uh at least 6 to 9 months before the launches happen. 48:52 48 minutes, 52 seconds Okay, sure. And do we have like any meaningful big launches uh coming in FI27 48:59 48 minutes, 59 seconds or uh will that take some more time? I'm just trying to gauge whether the gross margin and expansion which has happened will continue. 49:09 49 minutes, 9 seconds Yeah, we have launches. Okay, sure. Thank you so much. Thank you. 49:18 49 minutes, 18 seconds Thank you. We will take the next follow-up question from the line of Krishna Saha from Quantum ENC. Please go ahead. 49:28 49 minutes, 28 seconds Yeah, can you hear? 49:32 49 minutes, 32 seconds You're not audible. Krishna, could you please use your handset more? 49:35 49 minutes, 35 seconds Yes, I'm on the handset only. Can you hear me? Hello? Yes, now audible. Yes, please go ahead. 49:40 49 minutes, 40 seconds So, just on the financial question, um just just to understand we are closing cash balance is just 20 million rupee. 49:48 49 minutes, 48 seconds Uh mutual fund has increased by 3,000 or sorry 350 crores. Uh capital program has also increased. So like how do you like 49:57 49 minutes, 57 seconds uh are we comfortable on the cash position that's what I'm trying to understand right because we have 50:04 50 minutes, 4 seconds cash is about 784 uh crores including the investment in uh yeah yeah that's yeah that's what I said 50:12 50 minutes, 12 seconds and and your working capital has already been paid for halfway through I suppose because of the 540 crores KEX we have to do so we just very comfortable in the 50:21 50 minutes, 21 seconds cash position right yeah yeah absolutely yeah the entire will Internal Sophia. 50:26 50 minutes, 26 seconds Internal acral. Yeah. That's what my driving. Thank you. Thank you very much. 50:33 50 minutes, 33 seconds Thank you. We will take the next question from the line of Bhavna Israni from Ambbit Asset Management. Please go ahead. 50:41 50 minutes, 41 seconds Yeah. Hello. Hi sir. Good morning. Am I able? Yeah. 50:45 50 minutes, 45 seconds Yeah. Uh sir just wanted to check uh in the last call we said that the CDMO2 contracts will come in next six months like it was it was roughly June July but 50:53 50 minutes, 53 seconds now this time we are saying that it will come in the early second half of FY 27. 50:58 50 minutes, 58 seconds So we are expecting some delays in two CDMO contracts. 51:03 51 minutes, 3 seconds Not really expecting delays but then I I do want to you know moderate it a little bit. It may come in the first half also little late in the first half but just 51:12 51 minutes, 12 seconds to be on the safe side we are saying it'll happen on first you know early part of second half. Okay. Okay. Okay. Got it. Thank you sir. 51:20 51 minutes, 20 seconds Thank you. 51:24 51 minutes, 24 seconds Thank you. We will take the next question from the line of Netan Agarwal from Dan Capital. Please go ahead. 51:32 51 minutes, 32 seconds Dr. I think uh we alluded to that in the opening comments around the fact that you know how are we looking to you know how we looking how we looking at a business differently in terms of capital 51:40 51 minutes, 40 seconds allocation you know after the change over of of the management and the promoter ownership if you you know if if you can probably just take a couple of 51:48 51 minutes, 48 seconds minutes to sort of reflect on you know the journey since the time the ownership change happened uh to how the strategies and has the business have you know I 51:56 51 minutes, 56 seconds mean what have you been from a study perspective what have you been doing for the last uh you know three four years and now you know as you look forward from the base that you built out over 52:04 52 minutes, 4 seconds the last three four years since ownership change I mean how are things going to change uh is there any meaningful change uh you know the way looking approaching the business from 52:11 52 minutes, 11 seconds here on yeah I mean I'll I'll take a little time but yeah you'll explain that see what 52:20 52 minutes, 20 seconds was happening is in the earlier the pre-NAMA ownership right our focus was purely on portfolio and we had to you 52:29 52 minutes, 29 seconds know cherrypick the right kind of molecules do so that you know the growth uh came as a result of that there wasn't 52:37 52 minutes, 37 seconds much scope uh you know to go laterally okay so uh essentially the R&D 52:46 52 minutes, 46 seconds investment continued to be in picking the right molecules and taking them forward which is helping us now for for 52:52 52 minutes, 52 seconds sure and then the capex investment was again geared up to just ensure that whatever volume expansion happened you 53:01 53 minutes, 1 second know as a result of uh overall volume growth but also as a result of new product introduction as the patents 53:09 53 minutes, 9 seconds expired and the customers launched. So that was very limited. Now um I just 53:17 53 minutes, 17 seconds answered Anankar's question on you know why the R&D spend is going up and that is basically what has significantly 53:26 53 minutes, 26 seconds changed in terms of our thinking in terms of the various directions that we can get into uh and so it obviously 53:33 53 minutes, 33 seconds starts with R&D and we're looking at various various new areas uh to get into 53:41 53 minutes, 41 seconds of course we've done enough market um you know analysis to see whether you know all this will pan out. Okay. uh one 53:49 53 minutes, 49 seconds example that I can give you is the kind of work that we did in flow chemistry and very recently you know we've even uh 53:57 53 minutes, 57 seconds commercialized one flowchemistry product which is doing exceedingly well h and the confidence we have now in uh 54:05 54 minutes, 5 seconds employing flow chemistry uh has gone up multiffold uh because we've had commercial success on our very first project in flow chemistry using 54:14 54 minutes, 14 seconds flowchemistry uh you know and uh so the investment ment in flowchemistry in a more complex molecules in a lateral 54:23 54 minutes, 23 seconds growth uh you know of the current portfolio is the are the areas where we are investing and we are able to invest 54:30 54 minutes, 30 seconds uh you know relatively freely because uh the you know we are not just limited by a capacity buildup for a 54:40 54 minutes, 40 seconds future for the future portfolio. So I mean these are areas that uh we believe that will will drive growth in various 54:48 54 minutes, 48 seconds different directions and uh you know only time will tell of course but uh that work has begun in earnest 54:57 54 minutes, 57 seconds and and if I will sort of take that forward so when you look around you obviously when you look at India the Indian environment as well as probably some of the global ones I mean when you 55:06 55 minutes, 6 seconds look at your peer set what is it that we you know in your mind do differently versus the others which you rather what we do better than the others which sort of give us gives us this probability 55:14 55 minutes, 14 seconds metrics the way they play out and and a conf confidence in growth that we have. 55:20 55 minutes, 20 seconds I think the others are also doing well but they've chosen their path. I mean you know with respect to our own sort of 55:27 55 minutes, 27 seconds path or DNA that we've picked is we we want to you know have some element of 55:33 55 minutes, 33 seconds uniqueness or you know u higher entry barrier in whatever we are doing. Okay. 55:40 55 minutes, 40 seconds The the the thought process here is that you know at least gets a fair amount of differentiation going so that in the 55:49 55 minutes, 49 seconds longer term we can sustain uh you know our business uh much more profitably. 55:55 55 minutes, 55 seconds This is the whole point here. Uh see what happens is that you know this is a choice you make way before I mean we 56:03 56 minutes, 3 seconds made this choice you know 7 years ago when we became uh you know Glenmark life sciences and took that direction uh you 56:11 56 minutes, 11 seconds know so that directional uh you know sort of you know that that that we defined for 56:19 56 minutes, 19 seconds ourselves and then consistently stayed along that is what has helped us. 56:25 56 minutes, 25 seconds This is what I would say and look and the peers also there are people who are doing really well. I mean if you look at you know there are 56:33 56 minutes, 33 seconds companies that have done exceedingly well they've branched out uh you know pretty smartly into various areas. Of course some because of portfolio choices 56:41 56 minutes, 41 seconds and because of the overall competitive intensity in the market there are challenges right but still I would say 56:49 56 minutes, 49 seconds overall you know people are focusing on the direction that they set for themselves. 56:56 56 minutes, 56 seconds Thank you so much. Thank you. Thank you. 57:03 57 minutes, 3 seconds We will take the next question from the line of Ketan Archer, a retail investor. Please go ahead. 57:10 57 minutes, 10 seconds Yeah. Hi. Um thank you for the opportunity and uh congratulations on a on a very good uh result. Um Dr. uh 57:17 57 minutes, 17 seconds could you uh help me with uh what is the u revenue contribution from the geographies uh or at least you know the top two geographies uh uh be it US or 57:26 57 minutes, 26 seconds Europe or any other geography uh could you help with percentage revenues? 57:31 57 minutes, 31 seconds So see I mean we have we have mature geographies that are contributing quite 57:38 57 minutes, 38 seconds evenly. So if you look at India, Europe, uh you know, Latin America, uh you know, 57:45 57 minutes, 45 seconds these geographies and you know, these and even the US, right, they're contributing pretty significantly. The newest geography for us, you know, that 57:53 57 minutes, 53 seconds has come in in the last four to five years is Japan and so that's relatively small compared to the others, but that's also growing quite well. But we are 58:02 58 minutes, 2 seconds pretty evenly distributed uh across the geographies uh you know with respect to uh you know so because the product the 58:10 58 minutes, 10 seconds product selection that we've made and again this goes back to the you know answer I gave to uh Nan Agarwal from DAM 58:19 58 minutes, 19 seconds is that the selection of portfolio that we we made over the years uh has been 58:26 58 minutes, 26 seconds you know for all geographies. We've tried our best to you know make sure that we select those molecules accordingly. So the you know the the 58:35 58 minutes, 35 seconds overall growth in all the geographies has been pretty significant. And like I said even Japan which is a relatively 58:42 58 minutes, 42 seconds smaller geography has uh you know is beginning to shape up very nicely. 58:51 58 minutes, 51 seconds Okay. Okay. Thank you. And the other question I have is with respect to the contracts that we have with our customers. Now uh you know if you could 58:59 58 minutes, 59 seconds just help uh uh help me understand whether these contracts are like long-term in nature or they are kind of you know short-term uh like you know you 59:08 59 minutes, 8 seconds get uh um contracts for deliveries few months out something like that if you can just give a give give a flavor give 59:16 59 minutes, 16 seconds an understanding of how the contracting how the ordering from the customers work in our in our uh this thing and if there's a differentiation in terms of the older molecules versus the recently 59:24 59 minutes, 24 seconds launched molecules if you can throw some light on these aspects. 59:29 59 minutes, 29 seconds So in our business right in CDMMO we have contracts and these are longerterm 59:36 59 minutes, 36 seconds contracts but on the generic API side we have fewer contracts but even where we have them they are not that long term it 59:45 59 minutes, 45 seconds could be about it could be you know for a year or year you know two years at the most that's how and we prefer that really because the environment is very 59:53 59 minutes, 53 seconds dynamic and we can't get locked into you know very cumbersome kind of uh you know 1:00:00 1 hour uh clauses and you know get stuck. Now if you see this watch war situation we are asking for price increases. If you 1:00:07 1 hour, 7 seconds were contractually bound then uh you know we would have trouble right. So here it's much better that we you know 1:00:14 1 hour, 14 seconds work with the customers as and how things progress. So, and we don't see any downside to that either, you know. I mean, it's it's better really not to be too badly tied up in contracts. 1:00:30 1 hour, 30 seconds Thank you very much ladies and gentlemen. That was the last question for today and with that concludes the question and answer session. 1:00:40 1 hour, 40 seconds Thank you members of the management. On behalf of Alivis Life Sciences Limited, we conclude this conference. Thank you all for joining us and you may not disconnect your lines.