Alkem Laboratories Ltd — Q3 FY26

Alkem Laboratories Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=cjyWHMHpTqE Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Alcam Web Q3 FI26 results call hosted by Motilal Oswal Financial 0:09 9 seconds Services Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions 0:17 17 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:26 26 seconds your touch to phone. Please note that this conference is being recorded. Anahu conference over Manoani from Motil Oswal 0:36 36 seconds Financial Services Limited. Thank you and over to you sir. 0:40 40 seconds Thanks Iikra. Good evening and warm welcome for third quarter FI26 earnings call of Alchem Laboratories. From the 0:47 47 seconds management side we have Mr. Sep Singh managing director Dr. Vikas Gupta CEO 0:53 53 seconds Mr. Nitin Agarwal CFO Mr. Kustav Banerjee, CEO Alka Medette and Miss Purvi Sha, head of investor relations. 1:03 1 minute, 3 seconds Over to you, Purvi. 1:05 1 minute, 5 seconds Thank you, Tashad. Uh, good evening everyone. 1:09 1 minute, 9 seconds On behalf of Alen, we welcome you all to today's quarter 3 FI26 results call. 1:15 1 minute, 15 seconds Earlier today, we released a financial results press release and results presentation, all of which are available 1:23 1 minute, 23 seconds on our website and have also been filed with the stock exchanges. We hope you've had a chance to review them. 1:32 1 minute, 32 seconds Before we begin the call, please note that this call is being recorded and the audio transcript will be a made available on the exchanges and on our 1:41 1 minute, 41 seconds website shortly after the call concludes. 1:44 1 minute, 44 seconds Also, today's discussion may include certain forward-looking statements. So, this should be viewed in the context of the risk and the uncert uncertainties associated with our business. 1:56 1 minute, 56 seconds Since we have made an major acquisition announcement today for Alchem, we also 2:02 2 minutes, 2 seconds have our MD Mr. Sep Singh with us on the call who will throw some light on the same and all the questions pertaining to the met business will be answered by Mr. 2:15 2 minutes, 15 seconds Sep Singh along with Alchem CEO Mr. Costanji. 2:20 2 minutes, 20 seconds So with this I now hand over the call to Mr. Sep Singh. 2:23 2 minutes, 23 seconds Yeah thank you Puri. So guys uh it's great news that we have got into medical devices. I think after biotech this 2:32 2 minutes, 32 seconds could be one very valuable subsidiary that we will create in in the long term. 2:37 2 minutes, 37 seconds I would just like to share some facts about this market and then of course you know Vikas will talk about the business operations and then we can go through 2:45 2 minutes, 45 seconds Q&A. So largely met in India is a $10 billion market with significant headroom for growth and India is still an 2:53 2 minutes, 53 seconds underpenetrated market per capita is $7 for India. It's $50 for China and even Brazil is at $40. So we all know there's 3:02 3 minutes, 2 seconds large headroom left in India. There are technological advances leading to profileration of in use cases across disease areas and there's low competitive intensity. 3:13 3 minutes, 13 seconds historically smaller value pools, limited tech know-how and lack of atscale domestic players even yet 3:21 3 minutes, 21 seconds and let's not forget uh medtech can be like generic to you know version two and India can become a supplier globally to 3:29 3 minutes, 29 seconds to the to the best parts of the world to the most advanced countries in the time times to come. So shift towards 3:36 3 minutes, 36 seconds localized manufacturing and emergence of Indian players will happen and we are very sure of it. The two areas which you 3:43 3 minutes, 43 seconds want to focus is ortho and cardio and though we I spoke about India but uh play is is global 3:51 3 minutes, 51 seconds I believe in and alkimemetic both can be value accurative not just in valuation 3:58 3 minutes, 58 seconds but even on pure IITA margins in four five years both businesses will have aa margin of 25%. 4:06 4 minutes, 6 seconds And with this I'll pass it on to Vikas and I'm happy to take questions later on. Thank you. Thank you so much uh Mr. 4:12 4 minutes, 12 seconds Sil. Uh good evening everyone and thank you for joining us for Q3 FI26 earnings call. In Q3 we delivered a stable 4:20 4 minutes, 20 seconds performance in a dynamic operating environment supported by strong fundamentals in our domestic business and consistent execution across our 4:28 4 minutes, 28 seconds international businesses. We remain bullish on the growth opportunities in domestic as well as in the international businesses and are on track to deliver 4:36 4 minutes, 36 seconds our fullear guidance. We are seeing good revenue growth across our core markets uh core markets. So in domestic market 4:43 4 minutes, 43 seconds if we look at our YTD numbers you know we have grown at close to 10%. During uh Q3 of last year we undertook measured 4:52 4 minutes, 52 seconds adjustment to our distribution setup in certain areas which was aimed at strengthening the channel effectiveness and improving the service levels and 5:00 5 minutes supporting overall long-term growth. So we had realized certain sales in Q3 FY25 which led to a high base for that 5:08 5 minutes, 8 seconds quarter. So if we adjust the base effect there has been a still strong double-digit growth of domestic business 5:14 5 minutes, 14 seconds that continues even in Q3 of FI26. Our chronic business is seeing very strong growth trajectory uh both YTD as well as 5:23 5 minutes, 23 seconds quarter uh for this year. We also have carved out our Alchem wellness business as a separate entity which is seeing 5:30 5 minutes, 30 seconds certain headwinds. However, our prescription business is growing at a strong rate which is reflected in IQIA data as well. We continue to gain market 5:38 5 minutes, 38 seconds share across specialtities as reflected by the prescription research data as well. I will now present some of the key 5:45 5 minutes, 45 seconds highlights for Q3 FI26 financial performance. The total revenue is at 37,368 5:52 5 minutes, 52 seconds uh million rupees with a YI growth of 10.7%. 5:57 5 minutes, 57 seconds International sales were at 12,157 million with a YI growth of 26.6%. 6:03 6 minutes, 3 seconds While India sales uh like I mentioned uh you know is is looking at Y growth of 5.5% with 24,959 6:11 6 minutes, 11 seconds million. ITA margin of 22.2% and IITA stands at 8,280 million with a 6:19 6 minutes, 19 seconds 9% Y growth. R&D expenses for the quarter were 1390 million. uh which is 6:26 6 minutes, 26 seconds 3.7% of the total revenue from our operations. PBT was 7,812 6:33 6 minutes, 33 seconds million with a YI growth of 7%. And net profit at 6,360 million with a YI growth of 1.6%. 6:42 6 minutes, 42 seconds There is an exceptional item for the quarter which includes the impact of rupes 528 million on a preliminary [clears throat] basis related to the notification by the government of India 6:50 6 minutes, 50 seconds regarding the labor codes. According to IQIA data, we have outperformed IPM in six therapies which is anti-infective 6:59 6 minutes, 59 seconds which is our core we are growing 1.4x vitamins and minerals we are growing 2x 7:06 7 minutes, 6 seconds of the market pain at 1.4x anti-diabetic is 1.2x but if I adjust for the GLP1 it 7:13 7 minutes, 13 seconds is more than 2x you know of the market respiratory 1.2x and derma 1.8x 8x. So we we are seeing a very strong uh 7:21 7 minutes, 21 seconds trajectory both in IQV as well as internal uh business performance. We are encouraged by the opportunities ahead 7:29 7 minutes, 29 seconds supported by our expanding portfolio upcoming launches and investments in the new growth areas. We will continue to navigate the evolving operating 7:37 7 minutes, 37 seconds environment with agility. Thank you for your continued trust and support. I would now like to hand over the call to the moderator so that we can open the session for questions. 7:49 7 minutes, 49 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch to telephone. 7:59 7 minutes, 59 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 8:07 8 minutes, 7 seconds headsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 8:39 8 minutes, 39 seconds The first question is from the line of Damayanti Kerai from HSBC. Please go ahead. 8:46 8 minutes, 46 seconds Hi uh thank you for the opportunity. Uh my question is on medtech uh to sep. So Sundiv you clearly mentioned this could 8:54 8 minutes, 54 seconds be generic too uh in terms of growth opportunities which are available and uh from alchem perspective I just want to 9:02 9 minutes, 2 seconds understand what kind of scale you want to build over next 3 to 5 years uh and then what kind of investment or cost uh 9:11 9 minutes, 11 seconds will be required to build that scale for sure thank you so yes I do believe in that so in the next 3 to 5 years revenue 9:19 9 minutes, 19 seconds could be around 1,000 kores and a bit would be around say 20 22% 25% would take higher but since your 9:28 9 minutes, 28 seconds question was 2 to 5 years I've answered that and cost you can give more color to it please. Yeah. 9:35 9 minutes, 35 seconds Yeah. Go ahead. 9:37 9 minutes, 37 seconds Yeah. So if you look at uh from the business of ortho and cardio uh our ortho business is more like 9:46 9 minutes, 46 seconds organically you know growing and we just introduced and the tech transfer product that we did last year that is under 9:53 9 minutes, 53 seconds manufacturing and we expect to launch it uh in end of uh end of June next year if 10:00 10 minutes I give you a volume perspective we should be around 10% of the market by in next five years time And if you ask me 10:08 10 minutes, 8 seconds in terms of numbers that would be around 250,000 implants uh in five years cumulative numbers. So it will be a very 10:16 10 minutes, 16 seconds strong growth and we have already launched the product the Indian brand manufactured product in the uh second quarter of this year. And if you look at 10:25 10 minutes, 25 seconds the sequentially we are growing at a number uh which is which is uh which is 10:31 10 minutes, 31 seconds 50% quarteron quarter and uh you know and if I look at the you know overall 10:39 10 minutes, 39 seconds ITA I think which sep already mentioned and your question was on incremental cost. So I think more or less maybe it 10:47 10 minutes, 47 seconds will take two to 300 crores more of investment in the next 3 to four years. 10:51 10 minutes, 51 seconds significant investment I would say is is almost done. Yes. Thank you. 10:57 10 minutes, 57 seconds Sorry. So out of the 200 300 expected uh spend uh majority are already done. That's that's what you're saying. 11:05 11 minutes, 5 seconds Yeah. Yeah. Yeah. Yeah. 11:07 11 minutes, 7 seconds Okay. Uh just continue with that. Uh we understand see met is very different than swarma right. So what gives you so much of confidence that uh you can 11:15 11 minutes, 15 seconds really scale up big in just a matter of say 3 to 5 years. what could be the uh major challenges if you can just talk on 11:23 11 minutes, 23 seconds uh this issue. No. Yeah. So, Costa maybe you can go ahead but I'll just say this that of course it's different. 11:29 11 minutes, 29 seconds Therefore, we have a different team. We have a different company and that's why we acquired this company because those skill sets we don't have it. So, we are 11:37 11 minutes, 37 seconds very clear about it. We will run it independently and uh it is different but it falls under healthcare. Yeah. Costa please. 11:45 11 minutes, 45 seconds Yeah. So if you look at Meteor uh we are in the process of building the team and with the ortho we have already built the team and the people we have 11:53 11 minutes, 53 seconds brought in are from large global companies with significant experiences anything between 15 to 20 years and if 12:00 12 minutes you look at look through my background you will see that I have grown in the metric sector before joining X uh you 12:07 12 minutes, 7 seconds know ALEM and I was hired to build this portfolio. So I have spent around 26 years into tech and starting with large 12:15 12 minutes, 15 seconds three global companies metronic dabbert and then jimar biomet. So it has been and I have worked through uh 12:24 12 minutes, 24 seconds cardiology and orthopedic all through my 26 years before I came. 12:29 12 minutes, 29 seconds Sure. Uh thank you. I'll get back in the queue. All the best. Thank you. 12:36 12 minutes, 36 seconds Thank you. The next question is from the line of Taher Mukharji from Namura. Please go ahead. 12:44 12 minutes, 44 seconds Yeah. Hi, thanks for taking my question. 12:47 12 minutes, 47 seconds Uh if you can provide uh some more color on this acquisition or QE uh if you can give some history about the company 12:56 12 minutes, 56 seconds uh you know um the product segment uh geography any concentration risk and 13:03 13 minutes, 3 seconds then uh you know uh and beyond the profile if you can just talk us through the strategic rational for this 13:11 13 minutes, 11 seconds particular deal as to how this will uh sort of uh help in your long-term aspiration and then the financial metric 13:20 13 minutes, 20 seconds uh how does it make sense that it is uh you know what's the epida margin for the company um whether it will be earning 13:27 13 minutes, 27 seconds secretive or not if you can give color on that and any any break even timeline uh for for this activity 13:34 13 minutes, 34 seconds good questions actually uh from your side so let me start with the rational and what the company is about very 13:41 13 minutes, 41 seconds briefly this is a researchoriented company which has uh you solved one of the biggest metric problem 13:48 13 minutes, 48 seconds in the world which is being in high entry market barrier markets uh I mean entry barrier markets which is which 13:57 13 minutes, 57 seconds include United States and Western Europe as well as Japan and Australia and this segment is is a very niche 14:05 14 minutes, 5 seconds segment of cardiology so for us it's more like a platform so if you look at intervention cardiology 14:11 14 minutes, 11 seconds uh this is a a subsegment of that intervention Cardiology where the occluders which is basically treating 14:20 14 minutes, 20 seconds treating the the septal defects of the heart and the three primary areas uh is 14:28 14 minutes, 28 seconds definitely number one is is uh atrial septile defects number two is uh is the treatment of heart failure and number 14:37 14 minutes, 37 seconds three is you know prevention of stroke so that's a therapeutic area now why you know this is important to us this is the 14:45 14 minutes, 45 seconds in this particular segment they are the third largest company in the world and 14:51 14 minutes, 51 seconds given their revenue coming from western uh Europe and US uh to the tune of 85% 14:58 14 minutes, 58 seconds of their total revenue it's a very very strong portfolio which is waiting to be you know expanded across the globe and 15:08 15 minutes, 8 seconds in Europe this company is already holding a number two position apart from this this company has a very 15:15 15 minutes, 15 seconds strong R&D setup with their own own uh uh research lab, multiple research lab, 15:22 15 minutes, 22 seconds own clean room and own testing facility which is not very you know commonly seen any of the other companies that you come 15:29 15 minutes, 29 seconds across in the segment and as a result of this this company has a very strong product pipeline and one of this product 15:37 15 minutes, 37 seconds pipeline is another occluded which is leftial appendage where the revenue in the market I mean the global market size 15:44 15 minutes, 44 seconds than $1.4 billion and which is a oligopolistic market today. I would still say duopoly being shared by Abbert 15:52 15 minutes, 52 seconds and and and uh uh Boston scientific these are two companies which are leading this upr 15:59 15 minutes, 59 seconds segment and this is a product which is in the pipeline will be very soon getting approval. 16:04 16 minutes, 4 seconds Another important thing you need to recognize while they they have got into US in just in last one and a half years and within this one with one product 16:14 16 minutes, 14 seconds they have already achieved 5% market share. PFO is about to be launched and we are expecting a market share I mean 16:22 16 minutes, 22 seconds we are expecting a approval by 2027 that can significantly help us scale up in a high value market. Now coming to 16:31 16 minutes, 31 seconds your question on uh on AITA first this company is already AITA positive in in the per present year which is you know 16:40 16 minutes, 40 seconds financial year I sorry calendar year 2026 and our our estimate is to have 10% IITA 16:49 16 minutes, 49 seconds by FY27 which will take us to uh around 23 to 24% in 3 years time and our market 16:58 16 minutes, 58 seconds share if you see in Europe Europe already is 23%. And we expect to replicate the same experience in the 17:06 17 minutes, 6 seconds United States and given the company do not have significant presence in emerging markets. That's a huge opportunity for us to grow. 17:16 17 minutes, 16 seconds Okay. 17:17 17 minutes, 17 seconds So if you have more financial question you can ask I think to answer please go ahead. 17:23 17 minutes, 23 seconds No, I just Yeah, I just wanted to uh you know like you've got 55%. So um so who owns the 17:31 17 minutes, 31 seconds company and uh why not owning 100%? Is there a plan to own 100% at some point 17:37 17 minutes, 37 seconds in time? Uh so uh if you look at the shareholding there are around more than 150 shareholders currently in the 17:44 17 minutes, 44 seconds company and majority around 32% is held by the founder himself and [snorts] uh 17:51 17 minutes, 51 seconds so uh the reason why we are buying 55% because the balance shareholders they want to retain their shareholding and gain as part of the say value creation 18:00 18 minutes which we are going to do in next five years together. So the current management will also continue. The current promoters will also uh grow the 18:09 18 minutes, 9 seconds company along with us and uh maybe over years over say uh next four to five years they may look for an exit but as 18:16 18 minutes, 16 seconds on date there is no such plan and and they want to grow the company with us. 18:21 18 minutes, 21 seconds So that's the reason that we are buying 55% stake but yeah maybe after 3 4 years we can again look at uh buying the balance stake from them. 18:30 18 minutes, 30 seconds So 30 odd% for the promoter. The promoter is still uh owning that much stake. 18:35 18 minutes, 35 seconds Uh no, he will sell some part of it. Uh but uh definitely he will own significant stake after uh we take control. 18:45 18 minutes, 45 seconds Okay. Can you share like how much stake he would own after the transaction? 18:50 18 minutes, 50 seconds Uh so we will share once we sign the spa. That's still in the discussion process but yeah but we will acquire overall we will require 55 st% stake 18:58 18 minutes, 58 seconds that has been decided uh in terms of the promoter stake how much they will continue that exact number we'll come to know once the we reach to the signing of 19:06 19 minutes, 6 seconds uh spa stage and the promoter will continue as the CEO of the entity is that like already decided 19:13 19 minutes, 13 seconds uh yes so uh the plan is that the same management will continue and definitely we have taken a commitment from him to 19:21 19 minutes, 21 seconds continue at least for a uh and even for the other management say senior management staffs also uh the 19:28 19 minutes, 28 seconds commitment has been taken. So the plan is that this company will run as it is because of the strength we have bought uh this company their R&D and 19:37 19 minutes, 37 seconds manufacturing capabilities and uh as Kosov said that there are lot of opportunities to use the brand name of autitech and launch more number of 19:45 19 minutes, 45 seconds products in the structural heart and other uh similar say cardiovascular segment. Uh so definitely uh this is a 19:53 19 minutes, 53 seconds big big brand which we have bought and we want to retain uh the brand image as it is. 19:59 19 minutes, 59 seconds Okay. Thank you. Well done. 20:05 20 minutes, 5 seconds Thank you. The next question is from the line of Nha M from BHA. Please go ahead. 20:12 20 minutes, 12 seconds Yeah, thanks for taking my question. Uh sorry I missed the number for what is the incremental investment that we are planning um you know on growing the optitude uh assets. 20:23 20 minutes, 23 seconds Uh so the [clears throat] initial investment will be of around 1100 crores. uh but yeah over two years since we want to also accelate few of the R&D 20:32 20 minutes, 32 seconds projects as Kosov spoke that they have LA which is a great product in this segment and uh we want to definitely 20:39 20 minutes, 39 seconds accelate launch of LA in at least in Europe market over next 3 years. Uh so we will maybe invest 100 to 200 crores 20:48 20 minutes, 48 seconds more over next two years uh to fund their R&D program. But uh definitely for uh I think at operations at operations 20:56 20 minutes, 56 seconds level they will be cash flow positive and there I don't see any challenge from operating cash flow angle 21:03 21 minutes, 3 seconds and this 100 to 200 crores is largely R&D yeah mostly to fund or accelate their 21:09 21 minutes, 9 seconds R&D program I already a positive I I think there are some concerns on the PAT 21:16 21 minutes, 16 seconds uh numbers uh because they have a loan also in in their books of around 450 to 500 uh the loan is currently at 10%, but 21:25 21 minutes, 25 seconds yeah definitely we have plans to uh uh reduce the interest loan since Alcam has such say cash equity in the market. So 21:34 21 minutes, 34 seconds definitely uh the PAT will also improve improve once the loan is supported by a once the loan is supported by a corporate guarantee from us corporate guarantee from us 21:41 21 minutes, 41 seconds and uh there's a plan to you know launch and uh there's a plan to you know launch more uh I think the products that you more uh I think the products that you 21:46 21 minutes, 46 seconds mentioned in 27 in US and expand it in mentioned in 27 in US and expand it in 21:49 21 minutes, 49 seconds other markets that wouldn't require too other markets that wouldn't require too much investment or that would be over much investment or that would be over 21:52 21 minutes, 52 seconds and above this under 200 and above this under 200 21:53 21 minutes, 53 seconds no uh so uh as Koser spoke about PFO no uh so uh as Koser spoke about PFO 21:56 21 minutes, 56 seconds launch in US that will be June 27 so launch in US that will be June 27 so 21:59 21 minutes, 59 seconds most of the R&D spend or investment on 22:07 22 minutes, 7 seconds come and we will mostly launch that in June uh from June 27 onwards we will start marketing that product. 22:15 22 minutes, 15 seconds Okay. So what I'm trying to understand is this 200 cr number includes all marketing spend as well. 22:21 22 minutes, 21 seconds Yes. Yes. As we said that we are already uh uh say uh if you look at cash flow at the operating level we are already we 22:30 22 minutes, 30 seconds have positive cash flow. So we don't need to invest further in sales and marketing the current business can manage uh its own sales and marketing 22:38 22 minutes, 38 seconds expenses but for R&D program and to accelate the R&D program definitely there will be some amount of investment which we will do in the clinical trials and also the clinical program. 22:48 22 minutes, 48 seconds Thank you. 22:49 22 minutes, 49 seconds And [clears throat] what would be the uh payback period for the acquisition based on your initial assessment? 22:56 22 minutes, 56 seconds See as we said that this will be more of for us this will be a platform uh to access developed markets like Japan, US 23:04 23 minutes, 4 seconds and Western Europe and there is a uh plan to also launch more uh number of say products in cardiovascular using 23:13 23 minutes, 13 seconds this platform. uh but if you uh don't consider the uh additional portfolio which we are going to launch or you 23:21 23 minutes, 21 seconds don't consider LA which is a big opportunity the payback is around 10% uh 10 years uh on this asset but after 23:28 23 minutes, 28 seconds considering LA or say new set of product which can be launched under this platform the payback will significantly 23:35 23 minutes, 35 seconds be lower as uh as I said it is 10 years it can be significantly reduced but it's 23:41 23 minutes, 41 seconds very difficult to uh predict as okay and sorry my last question uh you know the additional uh cardio cardiology 23:50 23 minutes, 50 seconds assets that you're mentioning uh are we looking at more acquisitions asset acquisitions to add on to this portfolio is that the eventual idea other than 23:58 23 minutes, 58 seconds what's there in the pipeline for this the idea is not about acquisition see when we get a if you understand the 24:05 24 minutes, 5 seconds business uh and this uh this company is very well uh manufacturing a simple 24:12 24 minutes, 12 seconds scaffold kind of technologies which is based on nitronol. There are many adjacent technology to that which can be 24:20 24 minutes, 20 seconds very easily know manufactured by them doesn't require an inorganic acquisition but product can be developed and manufactured through the same 24:28 24 minutes, 28 seconds organization because they have already mastered one of the most difficult skill of delivery system and given that they 24:35 24 minutes, 35 seconds have already done it I feel that whatever investments and R&D Nin mentioned that should help us and suffice to introduce our newer products. 24:46 24 minutes, 46 seconds Understood. Okay. Thank you so much. 24:51 24 minutes, 51 seconds Thank you. The next question is from the line of Kunal Dhamesha from McQueen. Please go ahead. 24:58 24 minutes, 58 seconds Hi. The first question on the uh our domestic formulation business. Uh uh Dr. 25:05 25 minutes, 5 seconds Vikas alluded that we had some higher base last year same quarter. But if I can see uh last year same quarter also 25:13 25 minutes, 13 seconds we had kind of mid-s singledigit growth uh right and if I look at the two-year keer uh you know removing that whatever 25:21 25 minutes, 21 seconds restructuring we did we are still at mid-s singledigit uh growth right so what is uh happening in our domestic 25:28 25 minutes, 28 seconds formulation business uh you know that continues to grow at a lower level much lower than the IPM 25:36 25 minutes, 36 seconds level so I I would disagree here Because if you look at our YTD numbers, you know, I think we are close to 10%. And if I 25:44 25 minutes, 44 seconds split that out even further, you know, like I mentioned, you know, we have uh this year some headwinds in the generic business and we carved it out as a 25:52 25 minutes, 52 seconds special uh separate entity. So if you if you remove that, we are actually you know close to around 11% or 12%, you 26:01 26 minutes, 1 second know, in that range. Now in a market which is growing at around 7 and 1/2 to 8%. you know YTD numbers are looking at 26:08 26 minutes, 8 seconds around uh you know early early double digit uh kind of numbers. So in fact we are we are seeing very good traction 26:17 26 minutes, 17 seconds across segments you know within our domestic business and chronic you know which always has been a question that uh you know people have asked or whether you look at IQBR numbers whether you 26:26 26 minutes, 26 seconds look at our internal performance numbers I think it's the growth story is uh at its uh at its high you know we are we 26:33 26 minutes, 33 seconds have a high teams kind of growth uh that we are registering in our overall chronic segment so I think if you 26:40 26 minutes, 40 seconds on YTD basis on YTD basis we also have Android adding uh the inorganic growth 26:46 26 minutes, 46 seconds and Bombay also getting added right that's hardly you know if you ask me the number for YD for Android it's hardly 40 26:54 26 minutes, 54 seconds crores you know so that's not a very big number which is uh even otherwise you know if you look at our prescription 27:02 27 minutes, 2 seconds business is seeing a you know very strong growth and and you can see even it in IQVR so we have I think u we do 27:11 27 minutes, 11 seconds not have any challenges is in fact our growth is is is very good. We are very bullish on the same in fact now with uh 27:20 27 minutes, 20 seconds we all getting ready for uh semaglutide launch also which will be um we are also geared up for day one entry into semaglutide. 27:31 27 minutes, 31 seconds So and and uh you know in fact that would require addition of some people but even in other therapies you know looking at our growth trajectory you 27:40 27 minutes, 40 seconds know we are very bullish on our domestic market and we will add some more uh you know manpower to drive the growth further in the coming years as well. 27:50 27 minutes, 50 seconds Sure sir. uh the uh second one on the oklute tech business how is the gross margin profile of the business and when 27:58 27 minutes, 58 seconds we say that uh we'll improve the uh I beta margin from around uh 4% to more 28:05 28 minutes, 5 seconds like 25% over the next 3 to five years u is it more driven by uh operating leverage uh gross margin improvement and 28:15 28 minutes, 15 seconds uh uh does the company have manufacturing facility if yes where is it and uh you know what kind of utilization it is currently working. 28:25 28 minutes, 25 seconds Yeah. So first of all you know the growth the growth margin of the company is as of now close to 73%. 28:33 28 minutes, 33 seconds There are multiple things that will be driving our our uh margins going forward. Definitely one of them is 28:40 28 minutes, 40 seconds operating leverage and number two is there is lot of opport opportunities to optimize cost utilizing the the 28:49 28 minutes, 49 seconds significant uh back office that Alchem already has including the GCC and also you know one of the thing we need to 28:57 28 minutes, 57 seconds recognize that there are certain new products that will be introduced in very high ASP market. For example, when we 29:03 29 minutes, 3 seconds launch our PAO in in US, uh the ASPs is almost to the tune of $9,500 29:11 29 minutes, 11 seconds and number four that is going to drive the margin going forward. While we recognize the fact anything that is 29:18 29 minutes, 18 seconds labor oriented or that can help us build labor arbitrage or anything which is labor intensive process we will move to 29:24 29 minutes, 24 seconds India but we still want to retain the the you know organization's uh international you know DNA. uh so so we 29:33 29 minutes, 33 seconds will continue to make investment on optimization but uh ASP increased coverage operating leverage and 29:41 29 minutes, 41 seconds utilizing Alcam's uh strong back end uh to reduce operating cost and sir regarding the manufacturing 29:48 29 minutes, 48 seconds facility yeah the manufacturing facility as I said uh it will take time because it is also regulated 29:56 29 minutes, 56 seconds and already currently it is it is in Germany and and Turkey as well And uh this manufacturing facility will continue to 30:04 30 minutes, 4 seconds operate and uh eventually know we will see opportunities to utilize or optimize. 30:11 30 minutes, 11 seconds Sure sir. And lastly uh the 450 500 cr debt on the balance sheet which is at a high interest rate. So is there a plan 30:20 30 minutes, 20 seconds to kind of uh provide loan from the alchem balance sheet uh at a lower percentage point or you would refinance 30:27 30 minutes, 27 seconds from the market? Uh how should we think about it? Uh so uh we will not uh provide loan from Malcolm India but definitely we will get it refinanced 30:36 30 minutes, 36 seconds with help of corporate guarantee. The rate can be reduced from current 10% to 5 to 6% easily. Uh and this is a rate we 30:44 30 minutes, 44 seconds pay for our other fees also for working capital loans. Uh yes to answer your question it will not be from Alcam but it will be a refinancing. 30:54 30 minutes, 54 seconds Sure sir. Thank you and all the best. 31:02 31 minutes, 2 seconds Thank you. The next question is from the line of Nik Matu from HTSC Mutual Fund. Please go ahead. 31:10 31 minutes, 10 seconds Yeah. Hi, good evening. Um um sorry I wanted to understand the India numbers a bit better. Um so uh so there is a 31:19 31 minutes, 19 seconds divergence what you were suggesting between the primary sales and the secondary sales. Um so 1Q 2 were were 31:26 31 minutes, 26 seconds much better possibly uh on the secondary side and so on the primary side and this quarter u the primary is is worse off 31:34 31 minutes, 34 seconds than secondary. Um so any particular reason for this divergence between between the two and and and when do you see this anomaly getting corrected uh in the business? 31:44 31 minutes, 44 seconds So let let me clarify it once again. 31:47 31 minutes, 47 seconds There is no divergence or no anomaly in this number. 31:51 31 minutes, 51 seconds If you see it is just a cut off adjustment. You know when we had changed our distribution uh setup in last year 31:58 31 minutes, 58 seconds Q3 there were certain markets you know where we could realize you know the spill it is just the spillover impact 32:06 32 minutes, 6 seconds which which already got corrected you know in in Q3. So there is no divergence. It is looking at a like a 5% growth. But if you see YTD uh you know 32:15 32 minutes, 15 seconds this year numbers there is no divergence in primary and secondary and YTD numbers are are 10% uh you know kind of growth 32:23 32 minutes, 23 seconds which is which is overall domestic and as you know in our overall domestic there is a large component of the generic business as well. Now that 32:32 32 minutes, 32 seconds generic business this year has been more flattish. So if you you know look at only the uh you know core business the 32:41 32 minutes, 41 seconds branded generic business then you know the growth trajectory is is strong uh it is you know early uh double digit kind 32:50 32 minutes, 50 seconds of growth and we are also bullish of ending this whole year also at that number only. So just to clarify there is 32:58 32 minutes, 58 seconds no divergence in any primary or secondary. It is just because last year because of the cut off uh you know more of a base impact more of a base impact in the last year 33:07 33 minutes, 7 seconds Q3 because of which only this quarter is looking a little uh you know sluggish otherwise uh you know there is no I I 33:16 33 minutes, 16 seconds hope it is clear uh Nikl so you'll be back to a 10% growth level from 4Q is that the so we are already at YD also we are at 33:25 33 minutes, 25 seconds that number and Q4 also will be you know that number because that base was only for Q3 you know which got corrected Now after that it has been the same cut off 33:32 33 minutes, 32 seconds principle you know that we have followed. So even in Q4 you will see touchwood if everything goes well you know uh a similar just to add uh what uh 33:41 33 minutes, 41 seconds Dr. Gupta said if you look at billing to billing growth for the quarter it was 10% plus for the prescription business. 33:49 33 minutes, 49 seconds So it was just because of cut off adjustment that the reported growth looks lower but billing to billing uh if you look the uh if you compare the 33:57 33 minutes, 57 seconds growth it is 10% plus for quarter 3 also understood 34:03 34 minutes, 3 seconds and uh so slightly medium-term let's say FI27 FI28 u now this this generics 34:11 34 minutes, 11 seconds business um I don't know I mean if if you want to grow this business or not uh would it would it drag your overall growth in FI 2728 if if you No, no, it 34:20 34 minutes, 20 seconds no it won't. See, it's as I said, it's a large business for us and we would definitely want to grow it. Of course, uh because we had carved it out as a 34:27 34 minutes, 27 seconds separate entity, you know, uh whenever you do that, uh you know, uh we have seen that in the short term business goes through uh you know, certain 34:36 34 minutes, 36 seconds headwinds. Uh and in even in the in the market, you know, you know that it has become a highly competitive market. I 34:43 34 minutes, 43 seconds think we will be back to our high single digit to uh you know early double digit kind of growth even in generic business 34:51 34 minutes, 51 seconds from next year. So this year we have taken certain conscious calls also in the interest of keeping the margins 34:57 34 minutes, 57 seconds intact you know from that business. So we are very hopeful. So overall if I have to give you a domestic story picture then then we are very bullish uh 35:07 35 minutes, 7 seconds on this I have always maintained that we will continue to grow at 100 to 150 basis point more than the IPM growth. In the recent months we have seen even IPM 35:15 35 minutes, 15 seconds growth you know getting recovered. So and and similar trajectory you know we are seeing actually in the recent months in our overall uh domestic business as 35:23 35 minutes, 23 seconds well. So uh you know I think uh this kind of growth you know would persist and continue even in the coming year. 35:31 35 minutes, 31 seconds Got it. U and I wanted some I have a question on Ok as well. Before that just final question on on uh the core 35:37 35 minutes, 37 seconds business u so you are at 66% gross margin now if I look at 9 months somewhere around 65 66%. U so any 35:46 35 minutes, 46 seconds particular guidance on the gross margin going into FI 2728 especially in light of the MIP that has been announced for 35:55 35 minutes, 55 seconds uh PNG and its derivatives. um does that create some sort of a headwind? 36:01 36 minutes, 1 second So uh see of course you know MIP is a very recent event. We are just waiting and seeing you know how the market 36:09 36 minutes, 9 seconds pricing would unfold. If the India players you know increase their supply then clearly the cost impact you know would be lesser you know uh on our 36:19 36 minutes, 19 seconds balance sheet. But as of now the way it looks like it looks like overall you know close to say a 8200 crores impact 36:27 36 minutes, 27 seconds but some of this you know would get should get nullified uh by uh some of the market pricing because the because even our trade generic business you know 36:35 36 minutes, 35 seconds we have uh a big uh you know portfolio on that front. So we can pass it on you know to the customer. So we will try and 36:43 36 minutes, 43 seconds see you know how we minimize that impact and uh and then uh you know there would be certain other products as well you 36:51 36 minutes, 51 seconds know where we are working on improving our overall uh you know uh procurement so I think put together as of now we are 36:59 36 minutes, 59 seconds looking at say a similar guidance on the gross margin maybe a.5 to a percentage 37:06 37 minutes, 6 seconds basis points here there but we'll try and we will actually get to see it closer to how the market unfolds, you know, in in the coming quarters. 37:15 37 minutes, 15 seconds And how many months of inventory do you usually hold of of these derivatives? 37:18 37 minutes, 18 seconds Pengi understand we we have close to five four to five months of inventory. You know it with with regards to the number of days. 37:28 37 minutes, 28 seconds Got it. I have a set of question on tech as well. Now sep historically Alchem has been very conservative with regards to 37:36 37 minutes, 36 seconds capital allocation only. are seeing uh these acquisitions. Um what gives you confidence uh on these acquisitions 37:44 37 minutes, 44 seconds especially this one uh given your conservative nature and the company loss breaking it seems a bit departure from your past practices. 37:53 37 minutes, 53 seconds So, so you said many acquisitions. So, I think this is the first one. Not many. You can't count Bombay or that. Sorry, that was a small one. That's a sneeze. Don't even bring it up. 38:02 38 minutes, 2 seconds So, this is the first one. And and uh many times you all were kept asking that you all should acquire and acquire. So, maybe we listen to you all. Now, what 38:10 38 minutes, 10 seconds gives me confidence is what we answer in the first question. I think we believe on believe in people. We I think we have the best people in the medical devices. 38:20 38 minutes, 20 seconds We have acquired a company which I'm kind of repeating. So this is not a in-house uh development or in-house 38:27 38 minutes, 27 seconds management. This is an acquisition not only of company but of talent and uh yeah and cost you can add on that if you want anything. 38:36 38 minutes, 36 seconds No I think yeah so yeah yeah yeah so of the the current promoter and sorry to interrupt Mr. Maturin for follow-up questions. 38:48 38 minutes, 48 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address questions from all the 38:56 38 minutes, 56 seconds participants in the conference, kindly limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. The 39:04 39 minutes, 4 seconds next question is from the line of Chirat Bagley from DSP Mutual Fund. Please go ahead. 39:10 39 minutes, 10 seconds Yeah. So, thank you for the opportunity sir. uh in your uh you know when you think about the acquisition um in 3 39:17 39 minutes, 17 seconds years this incremental growth that is going to come uh if it's a lot this is going to come new products in similar 39:24 39 minutes, 24 seconds markets or uh similar products in uh newer markets if you can just flesh out some details here uh that would be 39:32 39 minutes, 32 seconds helpful. Um and the second one was that u uh uh 39:40 39 minutes, 40 seconds uh as in when you get comfortable with the share purchase agreement, we need a lot more color around the you know how the balance sheet looks like, what you 39:49 39 minutes, 49 seconds paid and what's the historic financials of this company look like and maybe some literature around what product approvals 39:55 39 minutes, 55 seconds they have etc. uh that would really help because this is a fairly large acquisition uh large capital allocation 40:03 40 minutes, 3 seconds uh but a lot more details uh required is the feedback that I just wanted to sort of 40:10 40 minutes, 10 seconds yeah so your uh I'll take the first question uh first that is your question on how are we going to grow right so 40:18 40 minutes, 18 seconds fundamentally there are three things that will drive our growth one is uh definitely newer products that will be introduced which are awaiting you know 40:26 40 minutes, 26 seconds regulator approval for example PFO in the United States this is a very large uh opportunity similarly increasing the 40:35 40 minutes, 35 seconds footprint in emerging markets that's the second large opportunity that we have with this uh product and uh you know 40:43 40 minutes, 43 seconds third thing is uh we will it's about going deep into markets uh where uh we just have little bit of presence where 40:51 40 minutes, 51 seconds we have low market share because west western Europe we already have a very have very high market share. Thereafter, 40:58 40 minutes, 58 seconds APAC and IMIA are the markets where we have the headroom to grow. So, multiple factor and US said uh the PFO launch and ready for penetration with ASD. 41:11 41 minutes, 11 seconds Did you flesh out any uh uh guidance on these numbers uh on on you know the next three kind of growth? 41:19 41 minutes, 19 seconds Yeah. So we have around you know 600 cr we are estimating in in the you know calendar year 26 and then uh 41:27 41 minutes, 27 seconds subsequently we will grow that number up to 780 crores uh in in yeah 14 41:34 41 minutes, 34 seconds approximately 14% caggr about for the next five years that is not counting your bolton not 41:42 41 minutes, 42 seconds counting it's a conservative number if I can say yeah correct and this 15 14 15% growth equally split across all the three 41:50 41 minutes, 50 seconds aspects that you talked about uh geographic expansion, newer markets and of course existing markets higher penetration almost equally is how we 41:59 41 minutes, 59 seconds should think about it. Uh it would be very difficult to say equally because in certain markets you will drive higher volume may not be at the very high ASP 42:07 42 minutes, 7 seconds and certain markets like US where you will have very high ASP may not be at the same volume. So it would be distributed but largely our estimate 42:14 42 minutes, 14 seconds says we'll grow at 14% CAGGR over the next 5 years. uh just to add on what Kosa said that this 14% kagger is 42:22 42 minutes, 22 seconds without any new product as we have la also in our product pipeline and also without adding any portfolio uh any 42:30 42 minutes, 30 seconds addition to the portfolio like we can add tavio or stren or other products also going forward so 14% kagger is only from the existing products a 42:39 42 minutes, 39 seconds conservative estimate I understand so the reason I'm deliberating on this point so much is that the execution hurdles across these three buckets 42:46 42 minutes, 46 seconds [clears throat] 42:47 42 minutes, 47 seconds is very very different right getting newer products in developed markets versus getting the developed product markets sold in India versus you know 42:55 42 minutes, 55 seconds all of these are very different execution models right so um and and and I get the point that you're bullish 43:03 43 minutes, 3 seconds about the business but when you think about this group uh we have to spend at least try and uh you know get some sense 43:10 43 minutes, 10 seconds on how you are uh thinking about these three verticals uh in terms of the uh contribution somehow 43:18 43 minutes, 18 seconds we we are we are already having a full-blown team with all we just acquiring 55% the team remains the management continues and we would like 43:26 43 minutes, 26 seconds to continue with the DNA of international company uners okay point um on the just 43:35 43 minutes, 35 seconds sorry to interrupt Mr. Bagley sorry to interrupt. Please rejoin the key for more questions. Yeah, thank you. 43:43 43 minutes, 43 seconds The next question is from the line of Bat Sali from Equest Securities Private Limited. Please go ahead. 43:51 43 minutes, 51 seconds Yeah. Hi, good evening. I just wanted to understand on Our uh so we are doing this acquisition from uh company's 43:58 43 minutes, 58 seconds perspective what do they expect what we we will be adding as a value to them overall? what we are going to add as a 44:07 44 minutes, 7 seconds value, right? 44:09 44 minutes, 9 seconds Yeah. So definitely number one is we are going to put muscles into the company by making investments. We are a strategic invest investor into it. Number two we 44:17 44 minutes, 17 seconds are going to add is in terms of the Alchem strength in building organization sector of the globe. And third is Alchem's you know large infrastructure and GCC to reduce the SGNA. 44:29 44 minutes, 29 seconds uh uh when we say uh to reduce SCNA what exactly we are doing there uh per se because we don't have a manufacturing facility so what exactly we are pursuing 44:38 44 minutes, 38 seconds there SCNA is outside manufacturing we are we are talking we are talking about cost of sales so cost of sales eventually we 44:45 44 minutes, 45 seconds will we will look at optimizing uh by moving some of the labor intensive activity but AGN I'm talking about is more on the on the expenses side admin 44:54 44 minutes, 54 seconds expenses side for the support function for the support function Right. Right. And when it comes to the 45:02 45 minutes, 2 seconds future acquisitions, are we uh geared up to even further invest into bettech any longer or the future investments going 45:10 45 minutes, 10 seconds to be in different area? If you could explain that. 45:12 45 minutes, 12 seconds No, I think so first I mean we will look at investments but uh as you know somebody said we have been conservative so we are very selective. So coming to 45:21 45 minutes, 21 seconds medtech I think more or less is done. We might look at something small but nothing significant for sure. I think a large part is done. Yes, we will look 45:29 45 minutes, 29 seconds into a core business as well obviously like pharmaceuticals at a reasonable valuation something is reasonable we'll look at it but we continue to be a 45:37 45 minutes, 37 seconds company which doesn't have acquisition as it main thing so don't look at it as we'll do some big ticket acquisitions 45:45 45 minutes, 45 seconds right and what will be the uh ROIC expectation if we go for for future acquisition in the former side 45:52 45 minutes, 52 seconds I think on a business which generates 20% is great return on equity And it actually threshold for us as well when we are investing. 46:03 46 minutes, 3 seconds Yeah. But you know there's theoretical if it's a great growth we can compromise the return on capital. It depends right. 46:09 46 minutes, 9 seconds I mean surely and Vicas uh if uh since you were mentioning about trade genics are you 46:17 46 minutes, 17 seconds giving any absolute number what was our trade genic business during this quarter? 46:23 46 minutes, 23 seconds So I think that we will uh you know we've not you know we've not called out 46:30 46 minutes, 30 seconds that but we know that you know our percentages in terms of our overall business I think you have you you know 46:37 46 minutes, 37 seconds you know how it has been I can say that it has been flattish you know for this year 46:44 46 minutes, 44 seconds you see you are saying bary right sorry yeah you are saying bary and on quarterly 46:52 46 minutes, 52 seconds basis for the quarter for the quarter it was flat for uh the YTD at YTD level it was lower single 47:00 47 minutes yeah lower single thanks a lot I will get back thank you question 47:09 47 minutes, 9 seconds thank you the next question is from the line of sep from Silves please go ahead 47:17 47 minutes, 17 seconds um thank you for the opportunity um could you please provide some insight writes about the dynama bios in the US. 47:24 47 minutes, 24 seconds I know this was recently submitted and as well as like what is the recent status in the Europe region and when will the XDA bison will be submitted? 47:34 47 minutes, 34 seconds No great. So I mean Denosmap we have both XGA and PRIA both number one part number one answer is that USB uh we 47:43 47 minutes, 43 seconds undergoing FDA inspection as as we speak and entry date uh would maybe it would be later on not during this year because 47:51 47 minutes, 51 seconds of litigation with Amjen even though there are many players Amjun still litigates on it so US entry is going to 47:57 47 minutes, 57 seconds be 26 end hopefully and Europe they'll be we'll be entering uh very very soon in the next couple of months. 48:08 48 minutes, 8 seconds Okay. Thank you. Thank you so much. 48:16 48 minutes, 16 seconds Thank you. Before we take the next question, a reminder to all the participants, if you wish to ask a question, please press star N1. 48:26 48 minutes, 26 seconds The next question is from the line of Gunal Damesha from McQuary. Please go ahead. Um hi uh thank you for the opportunity. 48:34 48 minutes, 34 seconds Uh uh Mr. Kosab the uh PDA occluded device which is currently under filing. 48:40 48 minutes, 40 seconds Uh so is it already filed or is it under clinical trial and we uh we are yet to file and uh June 27 is the approval 48:50 48 minutes, 50 seconds date? So June uh does it refer to calendar year 27? Yeah. So your question is PDA or PFO? 48:57 48 minutes, 57 seconds PDA is already an approved product. If you are talking about PFO the file not only filing even the clinical uh you 49:04 49 minutes, 4 seconds know trials are being conducted the results will be shared with with US FDA and we are expecting by mid of June uh 49:13 49 minutes, 13 seconds 2027 and when I say June 27 it's specific like it's about so that's a target action date we have 49:22 49 minutes, 22 seconds already received or it's a clinical trial is still going on is done it's the the data trial Please submit. 49:32 49 minutes, 32 seconds Okay. Okay. And uh you know on the uh on the some of the antibbody portfolio uh we have where Dr. Gupta alluded that we 49:40 49 minutes, 40 seconds can pass on some of the uh increases MIP related increases to customer. Uh but my understanding is lot of these products 49:49 49 minutes, 49 seconds are under NLEM right and the price increases are uh linked to the WPI index. 49:56 49 minutes, 56 seconds Yeah, let me clarify. I didn't mention on MRP. What I said is in the trade generic business, you know, where uh it 50:04 50 minutes, 4 seconds is sold at a say a higher discount, right, to MRP is where we can look at increasing the pricing. So that is where 50:14 50 minutes, 14 seconds you know I mentioned we can pass on some of the cost to the customer. But I don't know, you know, we will see how it uh how it goes and how it plays out in the market. 50:23 50 minutes, 23 seconds So sir of our anti-infective portfolio, how much is in the generic division and how much is in the prescription division? If you can share the broad uh 50:31 50 minutes, 31 seconds um you know percentages are large brands, you know we that's a branded generic market say Clavim uh say taximo 50:40 50 minutes, 40 seconds you know the the injectable range zone etc. So it it's a mix you know the break 50:47 50 minutes, 47 seconds up of the same we have not shared but we'll have to look at overall yeah if we to say the IKA numbers which you get is 50:55 50 minutes, 55 seconds only for the prescription that stand so for generic I think trade genic the IQ numbers they don't cover it 51:04 51 minutes, 4 seconds so you can make out IQ number what is our prescription uh size of factor my understanding is IQ do capture some 51:11 51 minutes, 11 seconds of the trade gener but we can take that often. 51:14 51 minutes, 14 seconds But some some doesn't make it representative. Yeah. Yeah. I agree on that. But but some gets captured. Yeah. 51:22 51 minutes, 22 seconds Yeah. That's good. Yes. Yeah. Thank you. 51:32 51 minutes, 32 seconds Thank you. A reminder to all the participants, if you wish to ask a question, please press star N1. 51:40 51 minutes, 40 seconds The next question is from the line of Cherat Dagli from DSP Mutual Fund. Please go ahead. 51:46 51 minutes, 46 seconds Yes, thank you for the followup. U the uh uh the trade generic business 9 month the margin on that given that we've been 51:55 51 minutes, 55 seconds slackish uh would the uh percentage margin on the trade generic business be better this year versus last year? 52:05 52 minutes, 5 seconds Sorry again. 52:08 52 minutes, 8 seconds So uh ch I think we mentioned that the growth was flat for the quarter and at YTD level the sales growth for trade 52:15 52 minutes, 15 seconds generic was uh in lower single digit. If you look at EITA as we have given or shared in previous calls also that the 52:23 52 minutes, 23 seconds AITA for generic business is a two or 3% lower than our corporate AITA but not very much uh if you it's not very 52:32 52 minutes, 32 seconds different from our corporate AIA varing from quarter to quarter but it's on the same line as corporate AITA. Understood. 52:39 52 minutes, 39 seconds And just the second one sir on the antibiotic business or basically the PNG uh you know volume wise would the 52:46 52 minutes, 46 seconds branded business be larger than the uh the train generic business just whatever is dependent on a little bit 52:55 52 minutes, 55 seconds I think uh you know we will have to do that calculation but it's it's it's more or less similar 53:03 53 minutes, 3 seconds because trade generation and effective is equally big as yeah so the impact will be almost similar because the volumes are higher in trade generate. 53:14 53 minutes, 14 seconds Understood. At least 100 cr is the total number sir. Um the part of that gets offset by 53:25 53 minutes, 25 seconds always higher as compared to prescription. So the impact will be more of understood. Yes. Thank you. 53:37 53 minutes, 37 seconds Thank you. Anyone who wishes to ask a question, please press star N1. 53:53 53 minutes, 53 seconds Ladies and gentlemen, we will take that as the last question for today. I now hand the conference over to the management for closing comments. 54:02 54 minutes, 2 seconds Thank you everyone for joining us today and for your thoughtful questions and active participation. Uh I'd like to uh 54:10 54 minutes, 10 seconds you know inform all the participants that we have organized an investor meet on the 18th of February that's Wednesday 54:17 54 minutes, 17 seconds to outline the strategic direction of the Alchemtt and the invite will be shortly shared on the exchanges with a 54:24 54 minutes, 24 seconds registration link. Uh so kindly register yourself and we wish to see you in person. uh we look forward uh we look 54:32 54 minutes, 32 seconds forward to engaging further with you there. Uh the venue is centragous so you'll have all the details on the registration form and uh please feel 54:40 54 minutes, 40 seconds free to connect with us in case if you need any further help and should you have any follow-up question you can reach out to us. Uh we appreciate your 54:47 54 minutes, 47 seconds continued interest and support. Have a pleasant evening and a happy weekend. Thank you. Thank you. Great sir. 54:57 54 minutes, 57 seconds Thank you very much on behalf of Motila Los Financial Services Limited. That concludes the sponsors. Thank you all for joining us today and you may now 55:06 55 minutes, 6 seconds disconnect your