Amanta Healthcare Limited — Q3 FY26

Amanta Healthcare Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=UL3QuAV6_mA Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Amana Healthcare Limited Q3 and 9month FI26 earnings call hosted by Go India Advisor LLC. 0:13 13 seconds As a reminder, all participant lines will be in the listen only and there will be an opportunity for you to ask questions after the presentation 0:20 20 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:28 28 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Somia from Go India Advisor LLP. 0:37 37 seconds Thank you and over to you ma'am. 0:41 41 seconds Good day everyone and welcome to QT and 91 FI26 earnings conference call of Aanta Healthcare Limited. We have on call with us Mr. Bhavesh Patil chairman 0:50 50 seconds and managing director Mr. Paris Ma Chief Financial Officer we must remind you that discussion on today's call may include certain forward-looking 0:58 58 seconds statements and must be therefore viewed in conjunction with the risks pertaining to the business. I now request the management to take us through the same and provide some more insight on the 1:06 1 minute, 6 seconds quarter gone by. Post that we will open the floor for Q&A. Thank you and over to you sir. 1:14 1 minute, 14 seconds Uh namaskar and good afternoon to everyone and a warm welcome to Amanta Healthcare Limited's Ben earnings call. 1:21 1 minute, 21 seconds Thank you for joining us today and for taking the time to understand our business, our journey and our long-term vision. 1:29 1 minute, 29 seconds This is our first interaction with the investor community as a listed entity and we see this call as an important opportunity to introduce Amana 1:37 1 minute, 37 seconds Healthcare not just through numbers but through the fundamentals that define our business, our growth strategy and our capital discipline. 1:46 1 minute, 46 seconds Amanda Healthcare is one of India's leading manufacturers of uh two port IV fluid uh container system uh which is 1:55 1 minute, 55 seconds branded as Terry port and operates as a fully integrated style liquid manufacturing 2:02 2 minutes, 2 seconds uh operation spanning both large volume and small volume parentrols. Our product portfolio caters to six key therapeutic 2:10 2 minutes, 10 seconds segments including fluid therapy uh injectable formulations, diluents, opthalmics, respiratory care and eye and 2:20 2 minutes, 20 seconds wound irrigation products giving us a diversified yet focused presence within style pharmaceutical space. 2:28 2 minutes, 28 seconds A key differentiator for amantra is our ster port platform which we were the first in India to introduce built on 2:34 2 minutes, 34 seconds advanced ISBM technology. Steriport offers superior sterilization or I would say absolute sterilization 2:44 2 minutes, 44 seconds uh which reduces the risk associated with fungal or microbial contamination. 2:49 2 minutes, 49 seconds Over time, Sterport has evolved into an industry benchmark and is increasingly becoming the preferred choice for hospitals and healthcare institutions. 2:58 2 minutes, 58 seconds Today's terport contributes approximately 40% of our revenue and operates at high utilization level underlying both strong demand and customer acceptance. 3:08 3 minutes, 8 seconds Alongside LVP, our SVP business represents a high margin export focused growth engine. This segment contributes 3:16 3 minutes, 16 seconds nearly 20% of our revenue and operates at near peak utilization. Over the past few years, we have consciously moved up 3:23 3 minutes, 23 seconds the value chain from low valued elements to high value formulations such as eye drops and respiratory resules which has 3:31 3 minutes, 31 seconds materially improved realization and margin profile. 3:35 3 minutes, 35 seconds From a financial standpoint, Amana is at an important inflection point. We have transitioned from an investment phase to a structurally profitable growth phase. 3:46 3 minutes, 46 seconds While our quarter and 9 month performance shall be shared shortly by our CFO Shri Parasmeta. Allow me to share the numbers. 3:56 3 minutes, 56 seconds Over the medium-term, our performance reflects the impact of focused execution and discipline investments. Revenues 4:03 4 minutes, 3 seconds have grown at 12% CAGGR between year 21 and year 25 reaching uh 275 cr. ITA has 4:12 4 minutes, 12 seconds shown consistent improvement increasing from 56 cr in 23 to 61 cr in 25 while 4:20 4 minutes, 20 seconds PAT has seen a meaningful turnaround from a loss of 2 cr in FY23 to a profit of 11 cr in FY25. 4:28 4 minutes, 28 seconds This progression highlights the benefits of scale product mix improvement and 4:36 4 minutes, 36 seconds operating efficiencies coming through in our financials. Looking ahead, our growth strategy is anchored around capacity expansion, operating leverage 4:45 4 minutes, 45 seconds and cost efficiency. In LBP, we are doubling our stiport capacity from 6.6 cr bottles peranom to roughly 12 crores 4:53 4 minutes, 53 seconds per year uh supported by 90 cr investment to meet strong demand visibility. In SVP, we are 5:02 5 minutes, 2 seconds expanding capacity from capacity from 21 cr to 31 cr units per year. Further strengthening our position in high margin export market. 5:11 5 minutes, 11 seconds Parallelly we are investing in structural cost advantages. Our 10.8 megawatt captive solar power plant 5:20 5 minutes, 20 seconds expected to be commissioned by Q1 FY27 is projected to generate a cost saving of roughly rupees 9 cr leading to annual 5:28 5 minutes, 28 seconds imitable public cost savings enhancing operating leverage and sustainability. 5:34 5 minutes, 34 seconds These initiatives combined with improving scale are expected to meaningfully support margins over the medium-term. 5:42 5 minutes, 42 seconds We are equally focused on capital discipline and balance sheet improvement. Our return ratios have improved meaningfully and leverage has 5:49 5 minutes, 49 seconds been steadily reducing. IPO proceeds have been deployed largely towards capacity expansion ensuring that capital raised is directly aligned with 5:57 5 minutes, 57 seconds long-term value creation. In summary, Amanda Healthcare stands at the intersection of category leadership, 6:05 6 minutes, 5 seconds high margin products, visible capacity growth and improving return metrics. As healthcare demand continues to rise and 6:13 6 minutes, 13 seconds quality standards titan, we believe our differentiated platform positions us well for sustained growth and value creation. With that, I will now invite 6:22 6 minutes, 22 seconds Mr. Paris Meta to take you through the financial performance in detail after which we will be happy to take your questions. Thank you for your time and 6:30 6 minutes, 30 seconds continued interest in Amanda Healthcare Limited. Over to you Parasai. 6:34 6 minutes, 34 seconds Thank you. A warm welcome to everybody and a good good afternoon. 6:40 6 minutes, 40 seconds uh during the quarter and at December 2025 as well as 9 month period ended 6:47 6 minutes, 47 seconds same the company has delivered stable and improving financial performance that is reflecting disciplined execution 6:55 6 minutes, 55 seconds across operations as well as continued focus on the profitability for the quarter revenue stood at about 7:03 7 minutes, 3 seconds 75 cr registering 9.8% 8% year-on-year growth driven by steady demand and 7:10 7 minutes, 10 seconds volume led expansion for 9 month and at December 26 revenue has increased to 211 cr uh 4% plus yearon-year growth. 7:23 7 minutes, 23 seconds This underscores the resilience of our core portfolio as well as consistency of our operating model. 7:32 7 minutes, 32 seconds We would like to inform that operational discipline has continued to support margins. IITA for quarter 3 came in at 7:41 7 minutes, 41 seconds 15 cr with margins at about 21% while 9 month IITA has increased to 6.1% yearonear amounting to 45 cr. 7:53 7 minutes, 53 seconds Importantly, a bit margin for the 9mon period has improved 42 basis points to 21.3%. 8:02 8 minutes, 2 seconds This reflects effective C control, improved operating efficiency as well as better absorption of fixed overheads. 8:11 8 minutes, 11 seconds Profitability has trended meaningfully during G period. Net profit for the quarter 3 20 25 that is financial year 8:21 8 minutes, 21 seconds 2526 has rose to 5 cr which is up by 8.1% on 8:28 8 minutes, 28 seconds yearon-year basis while 9 month pet has grew about 51% 8:36 8 minutes, 36 seconds yearon-year to 9 cr. 8:40 8 minutes, 40 seconds This demonstrate the benefit of operating leverage as well as improvement in bottom line by way of 8:48 8 minutes, 48 seconds continuous improvement in revenue, business sustainability as well as the control over the cost. 8:55 8 minutes, 55 seconds Earning quality has also improved as reflected in margin expansion. Pet margin for the quarter has stood 6.2% 2% 9:04 9 minutes, 4 seconds as already informed while 9 month PET margin has expanded by 139 basis point year on year. This is supported by 9:13 9 minutes, 13 seconds margin normalization and improving scale efficiencies. 9:17 9 minutes, 17 seconds Would just like to draw the attention that the 9 month number includes exceptional item which is the IPO 9:25 9 minutes, 25 seconds expenses as company came out with the its made an IPO during the year in the month of September. So whatever 9:33 9 minutes, 33 seconds profitability we see on 9 month basis that includes exceptional item when we add back it gives a even more and better results. 9:44 9 minutes, 44 seconds Overall financial performance during the quarter as well as month period reinforces our confidence in the 9:51 9 minutes, 51 seconds business fundamentals as well as our capacity addition cost efficiency initiative and operating leverage 9:59 9 minutes, 59 seconds continue to play out. We as a company and management remain focused on sustaining margins, improving return 10:08 10 minutes, 8 seconds ratios, maintaining discipline balance sheet and improving all the ratios in the financial terms while supporting the 10:17 10 minutes, 17 seconds future growth by way of expansion for which we came came out with the IPO. The 10:22 10 minutes, 22 seconds IPO growth and the capex through IPO is going to be reflected in coming quarters. it is not yet started. So 10:32 10 minutes, 32 seconds whatever results we are looking at is on the same capacity what we had during the last year. So on the same capacity we 10:41 10 minutes, 41 seconds have a better revenue, better profitability, leverage benefit as well as we are ready to go further with the 10:48 10 minutes, 48 seconds expansion. With this I would like to thank you all for joining this call and if you have any further queries or 10:56 10 minutes, 56 seconds questions uh during Q&A session we can answer all your questions. We will aim 11:04 11 minutes, 4 seconds to have the transparent communication and continue advancing our objectives and creating value for our stakeholders. 11:11 11 minutes, 11 seconds Thank you once again and we now open the question and answer session. Thank you. 11:18 11 minutes, 18 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. 11:29 11 minutes, 29 seconds If you wish to remove yourself from the question queue, you may press star N2. 11:34 11 minutes, 34 seconds Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 12:03 12 minutes, 3 seconds The first question is from the line of Anik Mikum from ABN Capital. Please go ahead. 12:10 12 minutes, 10 seconds Hi, thank you for the opportunity sir and uh congratulations on successful IPO. Sir, my first question is uh can 12:20 12 minutes, 20 seconds you tell us a little bit about the current status of the capex and when we are expecting the youth facility to go live? 12:28 12 minutes, 28 seconds Uh so uh we had initiated this expansion way before the IPO was conceived. 12:37 12 minutes, 37 seconds uh the idea was to finish off the uh entire capeex in two phases 12:44 12 minutes, 44 seconds and uh but by that time uh the IPO was conceived and it materialized. So now we have combined both the phases into one. 12:53 12 minutes, 53 seconds So the work started in 2000 in 2024. 12:57 12 minutes, 57 seconds uh as on today uh while we are talking uh the manufacturing equipment and the utilities are being installed 13:06 13 minutes, 6 seconds the equipments are already placed and they are being being integrated by piping wiring and so on so forth. So uh 13:14 13 minutes, 14 seconds I am presuming that by 15th March all the machines would be placed connected 13:20 13 minutes, 20 seconds and we will be taking dry trials section wise. 13:26 13 minutes, 26 seconds Okay. uh so we are hoping to have you know bottle coming out of the system by end of March but we have to provide a 13:33 13 minutes, 33 seconds buffer of 10 days 15 days for any uh uh contingency. So we will definitely see commercialization in the month of April. 13:43 13 minutes, 43 seconds Okay, got it. So we will be able to ramp up also quite quickly sir in terms of uh you know plant and uh test runs and 13:51 13 minutes, 51 seconds stuff like that or does it take uh few quarters for testing? So no so the 13:59 13 minutes, 59 seconds process validation the product validation etc doesn't take time it takes 15 days to maybe 21 days but it 14:06 14 minutes, 6 seconds can happen concurrently as I said when when we take the dry trial the validation trials also happen parallelly but to uh I understand what your uh what 14:15 14 minutes, 15 seconds your question is let's say we uh commission the line then very from very first day we can run the line at full 14:22 14 minutes, 22 seconds capacity but we may not be able to achieve sales numbers corresp responding to that output. So initially we'll be 14:30 14 minutes, 30 seconds running the plant at full capacity but we will be accumulating some inventory for 3 to 5 months and then we reach an equilibrium where production equals 14:38 14 minutes, 38 seconds sales and gradually by 6 months to 9 months that window we'll be able to uh absorb excess inventory. So that's how 14:47 14 minutes, 47 seconds typically we have observed in the past also whenever we have done ramp up of this scale. So this year also by we will we will not reduce the production. We 14:55 14 minutes, 55 seconds don't mind holding inventory but production has to be at full capacity uh because that makes more financial sense but the inventory pileup will get 15:03 15 minutes, 3 seconds addressed by month of October or so. So in the year 26 27 we will see the benefit of full scale production and almost full scale liquidation. 15:13 15 minutes, 13 seconds Understood sir. And if you uh you know given this is obviously a reasonably large expansion for our company uh if 15:23 15 minutes, 23 seconds you uh if you sort of looked out uh at a full scale then what is the total potential revenue with this facility 15:31 15 minutes, 31 seconds that we can get to what whatever approximate you can indicate. So the incremental revenue would be in the range of 120 cr plus minus uh four 5% 15:39 15 minutes, 39 seconds here and there from port line alone. Yeah. 15:45 15 minutes, 45 seconds And uh by the way we are talking only about Sterport line. SVP line is likely to get commercialized by January 27. So 15:52 15 minutes, 52 seconds that would be additional revenue. At the moment we are only talking about Sterport. 15:56 15 minutes, 56 seconds Okay. So S combined both uh how much can it be? Roughly 150 cr. 16:02 16 minutes, 2 seconds Okay. 150. Got it sir. And sir lastly as we are planning about uh you know we have I think done the capex on our IPO 16:10 16 minutes, 10 seconds proceeds. So little bit about how you the management is thinking about the debt on the books uh how we are planning 16:17 16 minutes, 17 seconds to manage that and what is our thinking around that if you can highlight. So uh we had coined this idea that should we 16:27 16 minutes, 27 seconds uh raise more equity and repay debt. But uh the consensus and the common most uh obvious reaction was that you are 16:35 16 minutes, 35 seconds raising expensive capital to reduce the cheaper debt and cheaper debt was not prohibitively out of our uh limits or 16:43 16 minutes, 43 seconds ratios. So what we feel is that the existing revenue plus incremental revenue would suffice to repay the debt 16:51 16 minutes, 51 seconds at accelerated rate. For instance, in this year uh we have already repaid debt of around 28 or 30 cr and by the end of 17:00 17 minutes March we should be repaying 36 cr in this this accounting year. 17:05 17 minutes, 5 seconds Similarly broadly what will be our debt at the at March maybe because it's right here the debt debt buy will remain almost 17:14 17 minutes, 14 seconds same maybe it will reduce to only 5 cr in spite of paying 36 cr because we are raising 30 cr debt for solar project so 17:22 17 minutes, 22 seconds the debt number debt number doesn't change much but our cost efficiency improves because solar is likely to save you know give contribute around 9 cr per year in terms of cost saving. 17:33 17 minutes, 33 seconds Okay. Okay but sir to answer a question I'm sorry to answer question this 17:41 17 minutes, 41 seconds just last thing sir therefore over a two three hour period our thinking is to repay that because I feel in your presentation also you sort of guided 17:48 17 minutes, 48 seconds that uh indicated that capex will reduce next year also yes so uh once we have commission steady port line and once we complete our SVP 17:57 17 minutes, 57 seconds expansion which is through IPO proceeds the there will be enough growth drivers within the this asset group for instance 18:04 18 minutes, 4 seconds Friends I answered a question about ST port how fast we can ramp ramp up so steer port can we ramp up because it's addressed to India as a one non-l large 18:12 18 minutes, 12 seconds non-fragmented market but SVP ramp up to sizable level will take one to two years because that's addressed to different 18:21 18 minutes, 21 seconds markets they are regulated and there are different product offerings so SVP alone will be offering enough growth drivers 18:28 18 minutes, 28 seconds uh within our portfolio so uh it uh of course some capex in farmer capeex is 18:35 18 minutes, 35 seconds done. I mean you can't escape that uh situation but uh we will see uh uh as compared to cex the value creation would 18:44 18 minutes, 44 seconds be incrementally much much higher than the cex demand. 18:48 18 minutes, 48 seconds No no no understood understood uh wish you all the best and uh look forward to continue interaction. I'll go back to the Thank you very much. Thank you. 19:02 19 minutes, 2 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. 19:12 19 minutes, 12 seconds The next question is from the line of Fina Jane from Perpetuity Ventures. Please go ahead. 19:19 19 minutes, 19 seconds Hi sir. Um so I wanted to understand u a bit on the terot uh product like how is it different from the others in the 19:27 19 minutes, 27 seconds market and what gives us confidence about uh you know that the additional capacity uh demand is there in the market. 19:38 19 minutes, 38 seconds So, Sterport uh as a concept it was uh uh our creation sort of if I can claim so uh and we introduced this product in 19:47 19 minutes, 47 seconds 2015 16 and it has some unique features for example uh it has a two port system 19:56 19 minutes, 56 seconds one for ID set and second is for medication now there are other companies also who have similar offerings like B 20:02 20 minutes, 2 seconds Brown Osuka Fzenius Aculife they also have two port system but steady port again has a differentiation uh in the 20:10 20 minutes, 10 seconds sense of the primary packaging material that uses it that it using. So we use random cop polymer polyropylene 20:17 20 minutes, 17 seconds whereas all our competing two port system products are having polythylene. 20:22 20 minutes, 22 seconds So polythylene cannot be sterilized at more than 109° centigrade whereas uh our container can withstand 125° centigrade. 20:32 20 minutes, 32 seconds So globally anything below 121.1 is a compromise in terms of stability. So we 20:39 20 minutes, 39 seconds are the only company in this space to uh have this established claim that it is absolutely autoclaved and the results 20:48 20 minutes, 48 seconds are obvious. We must have sold more than 35 cr bottles so far. We have not got a single complaint of fungal contamination. 20:58 20 minutes, 58 seconds Not even one complaint. So this is something which gives comfort to the paramedics and medical fraternity and to us as operator also. Apart from this 21:07 21 minutes, 7 seconds stiport although it is thinner than polyethylene it is having five times more tensile strength. So the container 21:14 21 minutes, 14 seconds is not breached uh making solution sterile is the simplest of the process but maintaining the integrity of 21:22 21 minutes, 22 seconds solution in the sterile form is the challenge. Be it glass because in glass also you can have hairline crack. you can't see it but it's there and can lead 21:30 21 minutes, 30 seconds to fungal contamination. So container integrity is of supreme importance in this uh space and that's what teleport 21:37 21 minutes, 37 seconds is offering and I think that is the reason why it is a most preferred pack amongst intensivist oncologist high dependency units uh etc. 21:50 21 minutes, 50 seconds Got it. Uh sir uh secondly on our solar solar grant you mentioned that we'll have 9 crores of cost savings would be 21:58 21 minutes, 58 seconds on aa or PBT level but it would be uh yeah if it uh I think 22:07 22 minutes, 7 seconds 9 cr saving is gross saving minus operating cost but not uh but not 22:14 22 minutes, 14 seconds interest all the maintenance and running cost will be deducted and then what you save is 9 cr minus interest but normally for payback you don't count interest. 22:24 22 minutes, 24 seconds Correct. And so when would the solar plant be operational by uh so our target is to commission uh the 22:35 22 minutes, 35 seconds entire facility by March end but then you have to have regulatory approvals and they take some time. So we are 22:42 22 minutes, 42 seconds hoping that we should be operational by end of April. 22:47 22 minutes, 47 seconds Okay. So from May onwards we should be acrewing the benefit of this. 22:54 22 minutes, 54 seconds Okay. Understood. And on the uh debt part I see that the finance cost has has 23:01 23 minutes, 1 second been coming down uh despite us adding another 30% of debt which we sort of paid off as well. So uh could you help 23:09 23 minutes, 9 seconds us understand how our um interest cost has changed and um how it's been changed going forward as we keep on paying debt. 23:18 23 minutes, 18 seconds I think the interest cost is coming down because of repayment. Uh but main uh change is uh in the coupon rate but it 23:27 23 minutes, 27 seconds is still not getting captured adequately here. Uh most of the uh cost effective uh borrowing has been done from 23:35 23 minutes, 35 seconds September onwards. So it hardly gets captured here but in coming months we'll see a larger effect of that but 23:43 23 minutes, 43 seconds primarily because of repayment and reduction in coupon rate. Paras you want to add to this or no that's yeah that's about it. 23:52 23 minutes, 52 seconds So what would be the reduction in interest rate in the coupon rate which we have seen? Come again please. 23:59 23 minutes, 59 seconds What would be the reduction in coupon rate which we have seen? 24:03 24 minutes, 3 seconds I think it's varying from 250 bps to 400 bps. 24:08 24 minutes, 8 seconds We had preference instrument of uh from KKR time and that was to be redeemed in 28 but we have done uh uh earlier 24:16 24 minutes, 16 seconds redemption. So their reduction would be roughly 500 bps but there was roughly 11 cr but uh generally it is 250 to 400 bps points. 24:29 24 minutes, 29 seconds Um second we saw you me you also mentioned that on the SVP side we'll take one to two years to uh ramp up the 24:36 24 minutes, 36 seconds offerings. So does this mean that uh the 30 cror revenue will take one to two years to come in or you can do value 24:44 24 minutes, 44 seconds addition 30 crores and ramp it up further can you elaborate on that? 24:49 24 minutes, 49 seconds No what I meant was that serport is addressed to India which is a large market non-fragmented one. There are no regulatory barriers. So there the ramp 24:58 24 minutes, 58 seconds up can happen very fast but likewise SV unlike that SVP is primarily addressed 25:05 25 minutes, 5 seconds to international uh audience. So that's where we have to wait for approvals change variation filing etc. So 25:13 25 minutes, 13 seconds initially the capacity utilization would not be a challenge. We'll be making we running the plant at full capacity. 25:20 25 minutes, 20 seconds We'll make deliverance but the kind of uh ITA levels we have seen historically SV that year or exceeding that may take 25:28 25 minutes, 28 seconds two years. That's what we mean. I think that's what in the projection also in the past. 25:34 25 minutes, 34 seconds Understood. Um thank you sir. 25:39 25 minutes, 39 seconds Thank you. A reminder to all the participants that you may press star N1 to ask a question. 25:47 25 minutes, 47 seconds The next question is from the line of Daryati from DJT investments. Please go ahead. 25:54 25 minutes, 54 seconds Hi sir, congratulations on a successful IPO and on your med made on my first question is around ST report. Uh so 26:02 26 minutes, 2 seconds basically you're mentioning that uh the capacity increase through ST report is going to be roughly five cr units. 26:10 26 minutes, 10 seconds Yes. 26:13 26 minutes, 13 seconds Okay. Uh so I'm just referring to slide 12 in that FI25 number is 6.6 and the the 27 projected number is 10.6. So that 26:22 26 minutes, 22 seconds adds up to roughly 4 crore units. So am I missing something there. 26:27 26 minutes, 27 seconds Uh one second. Uh ster port capacity 6.6 and 10.6. six. 26:41 26 minutes, 41 seconds Yeah, this is totally to four. I think there's an error. Uh so it should be 11.6, right? 26:49 26 minutes, 49 seconds Okay. 26:49 26 minutes, 49 seconds Yeah, 11 11. Yeah, it's ano error. It should be roughly 11.6 to between 116 and 12. 26:56 26 minutes, 56 seconds Okay. Okay. So roughly 12 cr, right? Yeah. A little less than 12. Yes. 27:01 27 minutes, 1 second Okay. Okay. And given that you mentioned that both production and liquidation are are going to happen uh concurrently. So 27:08 27 minutes, 8 seconds can we assume that you know this entire 110 120 crores that you mentioned increment the revenue all of that will happen in FI27. 27:18 27 minutes, 18 seconds Yes. Yes. 27:20 27 minutes, 20 seconds Okay. Okay. Got it. And the steady state margin for sh will be roughly say 26 27%. 27:28 27 minutes, 28 seconds Uh so incremental capacity will produce much higher IITA levels uh but the because of ST port uh post commissioning 27:37 27 minutes, 37 seconds company's overall IITA will expand by 3 to 4%. 27:41 27 minutes, 41 seconds Okay. Okay. So the steady rea margin for the company would be roughly say 26 27% post the sell commission. Yes. 27:50 27 minutes, 50 seconds Okay. Okay. Perfect sir. Understood. 27:52 27 minutes, 52 seconds Thank you sir. Thank you and all the best. Thank you. Thank you very much. 27:58 27 minutes, 58 seconds Thank you. Anyone who wishes to ask a question, please press star N1. 28:05 28 minutes, 5 seconds The next question is from the line of Madur Ratti from Counter Cyclical Investment. Please go ahead. Sure. Thank you for the opportunity. 28:13 28 minutes, 13 seconds Sir, I wanted to understand who would be our closest competitors in both our segments and uh are our competitors also increasing their capacity? 28:25 28 minutes, 25 seconds So uh as I mentioned we were I will answer your question first ter first and then SVP. Uh we were the first ones to 28:34 28 minutes, 34 seconds adopt this ISBM technology and in terms of learning curve we are having uh uh some advantage over others. Uh so IV 28:44 28 minutes, 44 seconds fluid market uh uh like has is broadly informally categorized. So companies who are operating at national level they 28:53 28 minutes, 53 seconds command different respect and price in hospitals followed by regional and then local companies. So I will make our comparison only with national level 29:01 29 minutes, 1 second companies. So as I said apart from us we have Fenius, Odsuka, B Brown and Aculife 29:09 29 minutes, 9 seconds who are major uh companies offering a two port system but except for Amana all of them are offering two port system with polyethylene. 29:20 29 minutes, 20 seconds So there they cannot sterilize at more than 129° centigrade. So uh in high dependency injuries, critical care, 29:29 29 minutes, 29 seconds oncology uh then organ transplant uh steric port is the most preferred uh 29:36 29 minutes, 36 seconds container in that sense uh I mean system uh apart from uh stability 29:42 29 minutes, 42 seconds uh the polymer is different. So potent medications when they're given then we have to look at the compatibility of the 29:50 29 minutes, 50 seconds drug with the container. So for example 85% of the anti-cancer drugs if you give in polyphilline container the 29:58 29 minutes, 58 seconds discoloration which also means degradation starts within 90 minutes to 2 hours whereas in case of ster port it starts 30:06 30 minutes, 6 seconds after 28 to 45 hours. So and we have done this uh research in a collaboration 30:12 30 minutes, 12 seconds with a university. We mandated the engineering department and the pharmaceutical department of a university and we have all the protocols 30:21 30 minutes, 21 seconds all the studies videography photography everything to support our uh argument 30:27 30 minutes, 27 seconds and our uh merits. So that is uh where the community paramedics and medical 30:35 30 minutes, 35 seconds they derive the confidence from. So that's the reason it's a preferred container. So there are these five companies they are comparable in what we 30:43 30 minutes, 43 seconds do. B Brown has very little exposure in the market. They are confined only to 7 to eight cities. But I would say Osuka 30:50 30 minutes, 50 seconds is closest in terms of numbers and their presence across the country. Got it. Answer on the capacity addition. 30:59 30 minutes, 59 seconds Has any of these players added capacity or are going to add capacity in next one or two years? Uh not much action in two port system. 31:08 31 minutes, 8 seconds uh but uh many companies are converting their existing lines into two port system because uh uh when we launched 31:15 31 minutes, 15 seconds the product uh very few doctors were willing to patronize because the cost was high the price was high but uh then 31:24 31 minutes, 24 seconds lately what uh then somewhere in between around 19 2021 what we found was that this was used in encore intensive care 31:33 31 minutes, 33 seconds etc but now for in last one year or so what I'm seeing is even a Small nursing home uses group two port system. So the 31:40 31 minutes, 40 seconds acceptance has increased a lot. In uh IV fluid in general the demand is growing at around 8 to 10% year on year. So 31:49 31 minutes, 49 seconds every year we need additional 12 to 13 cr bottles of IV fluid. But the demand of two port system would be growing at a 31:57 31 minutes, 57 seconds faster pace because there's a conversion from uh uh conventional legacy product to two port system. So but pet is more 32:05 32 minutes, 5 seconds supply driven in a way because uh the capacity is hardly uh 15% of 15 20% of 32:11 32 minutes, 11 seconds the total demand. So uh we see good traction and we have always seen short 32:18 32 minutes, 18 seconds supply kind of situation in stort right. So you know uh if I were to compare the uh average life or expiry 32:26 32 minutes, 26 seconds period for our product versus our competitor product before it starts degrading what would that be? And sir a sub question would be what stocks are 32:35 32 minutes, 35 seconds competitors from like moving from the polyethylene packaging that they are doing to the packaging that we are doing is that the 32:43 32 minutes, 43 seconds trade knowhow or the technological barrier that we have because of that we can't enter into the similar packaging. 32:51 32 minutes, 51 seconds I would not claim that we have any uh techn technological knowhow which is not available to others. It's a question of 32:59 32 minutes, 59 seconds uh uh shaping the business model. But uh I will answer your question uh the science part of that uh question. The 33:07 33 minutes, 7 seconds degradation happens because of uh the nature of the primary packaging material. Every material has a tendency to breathe and has tendency to throw out 33:17 33 minutes, 17 seconds moisture. Plastic is more permeable than and more breathing material than glass. 33:22 33 minutes, 22 seconds So every plastic container will throw moisture and absorb oxygen. So with that there is oxidation process that goes on 33:32 33 minutes, 32 seconds inside the container and oxidation is one of the decay process. So uh uh in 33:39 33 minutes, 39 seconds our case in ter we use random colymer polyropylene and uh it is a DMF grade material. By 33:46 33 minutes, 46 seconds the way, uh there are very few companies in India who are using DMF grade primary packaging material. The companies which 33:55 33 minutes, 55 seconds I mentioned all the five companies Utsuka, Bbron, Fenius, Aculife, they do use DMF grade. But there are some 34:02 34 minutes, 2 seconds companies who don't use this. But even in DMF grade Pythine the you can't prevent the degradation because polyline is a low density and 34:11 34 minutes, 11 seconds very soft material. So it pours out moisture and absorbs oxygen which accelerates the degradation of the product and that's why in inhalation 34:19 34 minutes, 19 seconds solution uh you must have seen resules which are used in nebulizers. So we have to uh replace oxygen by of nitrogen so 34:28 34 minutes, 28 seconds that the solution inside doesn't get decayed and the whole thing is wrapped in aluminum foil to prevent further 34:35 34 minutes, 35 seconds oxidation. So the most of the farmer products in when they are dissolved in water they become very sensitive to oxidation process. 34:47 34 minutes, 47 seconds Got it. So just a final question you don't understand. Huh? 34:53 34 minutes, 53 seconds Sir uh the second question was the expiry life of our product versus our competitor's product. So uh if uh what 35:01 35 minutes, 1 second would that be? And uh sir uh if when we say that our product is so what from uh what I understand from your commentary 35:09 35 minutes, 9 seconds that product is much better in terms of expiry or the degradation like versus our competitors. Uh so how when can we 35:16 35 minutes, 16 seconds see this impact on our working capital cycle? 35:20 35 minutes, 20 seconds No expiry has no relevance to this BK cycle because uh expiry is something which you have to uh you claim based on 35:29 35 minutes, 29 seconds the stability. So our product stability in incubation uh can is suggestive that for how long 35:36 35 minutes, 36 seconds we can uh keep it valid and how for how long it what kind of shelf life it can have. So for example in polyphen also we 35:44 35 minutes, 44 seconds had five year expiry in stiport also we had five year expiry but we have reduced that to 3 years because you don't use uh you don't keep this product on check for 35:52 35 minutes, 52 seconds more than 6 months to one year. So there's no point in keeping five year expiry. So we all claim 3-ear expiry 35:59 35 minutes, 59 seconds only that is stability. What I'm referring to is compatibility. So if you have a normal saline uh IV fluid so as 36:09 36 minutes, 9 seconds long as it remains normal saline there is no change whether it's terport or conventional legacy product. But the moment you put injectable injectable 36:16 36 minutes, 16 seconds that injection reacts with the container and then the DK process starts. So I was referring to that part. 36:23 36 minutes, 23 seconds Got it. answer on the working capital cycle. Uh so Paras you want to address this? 36:30 36 minutes, 30 seconds Yeah. So working capital cycle uh will be slightly improving going forward. Uh we are controlling our inventory and 36:38 36 minutes, 38 seconds receivables. Uh it was a phase uh in which it was at a higher level uh during IPO and post IPO. But going forward you 36:47 36 minutes, 47 seconds will see the working capital cycle improving not by a very uh drastic number but uh over next few quarters uh 36:56 36 minutes, 56 seconds there will be continuous improvement in the working capital cycle. 37:01 37 minutes, 1 second So so currently around 30 Mr. for more questions. Thank you very much. 37:10 37 minutes, 10 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address questions from all the 37:18 37 minutes, 18 seconds participant in the conference, please limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. The 37:26 37 minutes, 26 seconds next question is from the line of sake Kapoor from Kapoor and Company. Please go ahead. 37:33 37 minutes, 33 seconds Yeah, namaskar sir. Uh thank you for the opportunity. Namaskar. 37:37 37 minutes, 37 seconds Yes sir. Sir uh firstly when we look at our uh accounts presentation just correct me here. Uh the uh the line item 37:47 37 minutes, 47 seconds paid up capital in the P&L is being mentioned at 343.36 37:54 37 minutes, 54 seconds and wherein when we look at our uh balance sheet part and account it is 38 uh.82 K. So can you correct me sir where 38:03 38 minutes, 3 seconds what what is I am missed where is the disconnect sir you want to address this? Yeah. 38:12 38 minutes, 12 seconds So when you see the profit and loss uh you see the weighted average capital because it has to be calculated for the 38:19 38 minutes, 19 seconds purpose of arriving at the earning per share. So this is as per accounting started. This is the year in which the 38:26 38 minutes, 26 seconds additional capital has been raised by way of IPO. So in profit and loss statement you will see the weighted average capital which is uh for the 38:36 38 minutes, 36 seconds purpose of uh EPS in balance sheet you will see the closing balance. So both figures are correct at their respective places. 38:44 38 minutes, 44 seconds Okay. So when will this uh get corrected to 39 sir when at at the time of full utilization of the capex when the number would be 38. 38:55 38 minutes, 55 seconds Okay sir. 38:56 38 minutes, 56 seconds So it has nothing to do with capex. It has to do with the financial year. So during the financial year March 25 the 39:04 39 minutes, 4 seconds additional capital is raised. So from April 26 onwards you will see the full value because then financial year 39:11 39 minutes, 11 seconds changes and your opening balance remains full. 39:17 39 minutes, 17 seconds Okay sir. Now sir uh uh I joined a bit late in the call. Can you conf understanding on the cost of fund? I 39:26 39 minutes, 26 seconds think so some arrangement with KKR was there that has resulted in higher cost of debt. So as on date uh our uh 39:34 39 minutes, 34 seconds September uh balance sheet if you look at the September balance sheet we have 39:40 39 minutes, 40 seconds our non-current uh this our liability at 123 cr the non-current liability that is 39:47 39 minutes, 47 seconds the long-term borrowing. So what portion of it still carries the higher uh cost uh of of of uh blended debt and what is 39:55 39 minutes, 55 seconds the current cost of fund for us for both long-term and working capital? 40:01 40 minutes, 1 second So the long long-term debt is about uh 95 cr as on today when we are having this call uh which is at the higher rate of about 11.5%. 40:12 40 minutes, 12 seconds and blended rate is uh about 10 and uh we have new working capital facilities at about 8 and a half%. So our blended 40:21 40 minutes, 21 seconds rate is just about 10 10.1 or so and in coming period it will be below 10. 40:30 40 minutes, 30 seconds Okay. And what is our current rating sir? 40:33 40 minutes, 33 seconds Our rating is tripleB uh crystal rating B. 40:38 40 minutes, 38 seconds Okay. And when it is due sir I think so we have done with the IPO but ma'am yes ma'am just there's a follow up I I definitely jo when when it is our rating 40:47 40 minutes, 47 seconds due sir yeah it was due in the current months only so recently it has been triple B 40:54 40 minutes, 54 seconds okay recently it has been I I'm joining the queue sir I have operational questions also sure no issue you can join me 41:01 41 minutes, 1 second yeah thank thank you ladies and gentlemen anyone Anyone who wishes to ask a question, please press 41:10 41 minutes, 10 seconds star N1. The next question is from the line of Neil and Punjabi from Perpetuity Ventures. Please go ahead. 41:19 41 minutes, 19 seconds Yeah, thanks for the opportunity and congratulations on the listing and a stable set of numbers sir. Uh my first 41:25 41 minutes, 25 seconds question is on uh Ster Port. So uh just for an understanding what is our current market share in the uh two port uh uh two port bottles currently. 41:38 41 minutes, 38 seconds So difficult to quantify the uh market share because uh there is no classification in uh any 41:47 41 minutes, 47 seconds uh neither in government classification nor any market research uh uh identifies 41:53 41 minutes, 53 seconds it separately. But I would my personal guess is that we have around 30 to 35% market share in two port system. 42:04 42 minutes, 4 seconds Got it. So so uh so since we were the first ones to start this um uh would we would we be the largest ones over here in in two portals? 42:15 42 minutes, 15 seconds Uh yes. Yes. Okay. 42:18 42 minutes, 18 seconds Because we are the only ones who are having dedicated capacity for two port system. other companies they on the same manufacturing line they make two port as 42:25 42 minutes, 25 seconds well as legacy product so it's very difficult to quantify how much they do but I would say amant is having the 42:33 42 minutes, 33 seconds largest market share in terms of both market share and price leadership uh followed by Otsuka then Fzenius and then 42:42 42 minutes, 42 seconds probably BR okay and my second question is on SVB so currently we are doing about 55 crores 42:50 42 minutes, 50 seconds of revenue for a 21 cr capacity and for the incremental 10 cr capacity we are guiding for a 30 cr incremental revenue. 43:00 43 minutes So are we moving up the value chain in SVPs? Could you please highlight your strategy around that? 43:08 43 minutes, 8 seconds So the new SVP line is primarily aimed for inhalation solution what we call resppules. Uh so our endeavor would be 43:17 43 minutes, 17 seconds to make only resppules on that line but uh we have sizable exports from uh in in 43:24 43 minutes, 24 seconds resppules and uh the conversion or the uh we have to file for variation the shape variation etc and the shape 43:33 43 minutes, 33 seconds variation approval can take anything from 6 months in some countries to one year one and a half years. So that is something which is very difficult to 43:40 43 minutes, 40 seconds predict but uh post uh conversion the entire line would be uh producing only inheritation solution that is one part 43:48 43 minutes, 48 seconds and other value driver in that from that line would be that right now we have only two products uh whereas three combinations are in the 43:58 43 minutes, 58 seconds development stage at the moment and they also will get uh developed uh by 27 44:06 44 minutes, 6 seconds March or so. So once they developed then our offering from SVP new line will also 44:11 44 minutes, 11 seconds increase. So primarily uh the SVP uh new line would be dedicated to 44:20 44 minutes, 20 seconds inhalation products and the offerings will also increase. Along with this we are also going to develop two more 44:27 44 minutes, 27 seconds product offerings. One would be nasle drops which is for for European market that doesn't take long time in terms of regulatory approvals. It's a OTC product 44:36 44 minutes, 36 seconds and the other one is preservative free single dose. Preservative free single dose is uh uh is for opthalmics. The 44:44 44 minutes, 44 seconds field volume is 0.25 ml 2.4 ml but that revenue will come after 2 years. Uh but 44:51 44 minutes, 51 seconds the product development activities we will start from uh July or this July onwards. So that would be very high 44:58 44 minutes, 58 seconds value. It will uh show a very good profit expansion, margin expansion also. 45:04 45 minutes, 4 seconds But we'll have gestation period of two years. Got it. Perfect. Thank you so much, sir. And all the best. 45:12 45 minutes, 12 seconds Thank you very much. 45:15 45 minutes, 15 seconds Thank you. A reminder to all the participants that you may press star N1 to ask the question. 45:22 45 minutes, 22 seconds The next question is from the line of Rahil S from Sappire Capital. Please go ahead. Hi sir. Good afternoon. Can you hear me? 45:32 45 minutes, 32 seconds Yes, I can. Good afternoon. 45:34 45 minutes, 34 seconds Yes sir sir. Why was uh epidemization slower in this quarter compared to in last quarter as well as year on year? 45:42 45 minutes, 42 seconds Uh can you repeat your voice was slightly huh? You hear me now? Uh yes. 45:50 45 minutes, 50 seconds Yeah. I was saying why were Eida margins uh lower in this quarter compared to last quarter and uh year on year basis? 46:00 46 minutes uh our evict margins are uh not lower it's almost in line it it's a 46:07 46 minutes, 7 seconds fractionally lower you will see in percentage to revenue terms it's uh almost there uh about half% uh but uh 46:16 46 minutes, 16 seconds the more leverage you see from profit before tax which is by way of finance cost so with additional saving in the 46:24 46 minutes, 24 seconds finance cost our profitability is improving it obviously has the major component of fixed overhead and with the 46:31 46 minutes, 31 seconds same scale of operation and same capacity there is pressure on the VADA but we are able to 46:39 46 minutes, 39 seconds cover that pressure mainly by your costsaving as well as uh our operational efficiency. So our slight impact is 46:47 46 minutes, 47 seconds still there on beta which going forward you will not see because uh we will have higher revenues and other thing is that 46:54 46 minutes, 54 seconds from June onwards we have started uh strengthening our middle management team in anticipation of the capacity that we are building up. So right now our 47:03 47 minutes, 3 seconds overheads and uh spending other than operation is more on product development and management bandwidth. So that is also getting absorbed in this quarter 47:11 47 minutes, 11 seconds and it will get absorbed in coming quarter also. 47:15 47 minutes, 15 seconds So what can one expect in quarter 4? Uh in terms of the uh revenue and the bidder margins like steady state I think 47:24 47 minutes, 24 seconds it will remain steady only there could be marginal improvement because generally our H2 is better than H1 and 47:30 47 minutes, 30 seconds Q4 is better than uh Q3. So but uh uh lot of uh products they go in export 47:38 47 minutes, 38 seconds market particularly uh in Africa and South Asia uh it is very difficult to predict their ordering pattern but it would be more or less in this range only 47:47 47 minutes, 47 seconds we will not see any sizable uh movement in terms of sales or ITA levels 47:53 47 minutes, 53 seconds that would be visible from Q1 uh next year on onwards. 47:59 47 minutes, 59 seconds Okay. Okay. So the 3 to 4% uh incremental uh rise in AIDA is only five not from quarter 4 itself. 48:07 48 minutes, 7 seconds Quarter four we may see margin improvement but difficult to quantify but the one you expect next year correct the three to correct. Correct. Yeah steady state situation. 48:16 48 minutes, 16 seconds Okay. And our revenue guidance for like year one year remains in that 20% range but you expect more with the new capacity uh post expansion. 48:27 48 minutes, 27 seconds Yes. Yes. Next year FI27 uh no next year I think 20 to 20% CG is 48:34 48 minutes, 34 seconds for next two years but next year we'll see sizable increase I think next year uh we'll see we are hoping to be in the 48:42 48 minutes, 42 seconds range of roughly 400 cr 400 cr okay it will see 33 roughly 33% increase in sales and uh the 48:50 48 minutes, 50 seconds corresponding numbers uh it may taper down in the following year to some extent uh but then SVP will uh contributed to that uh sales revenue. 49:01 49 minutes, 1 second Okay. Okay. I'll turn back to you sir. Thank you so much. All the best. Thank you. Thank you very much. Thanks. 49:08 49 minutes, 8 seconds Thank you. Ladies and gentlemen, if you wish to ask a question, please press star N1. The next question is from the 49:16 49 minutes, 16 seconds line of Pakit Kapoor from Kapoor and Company. Please go ahead. 49:20 49 minutes, 20 seconds Yes sir. Thank you. Uh so as you mentioned that our revenue will be uh inching towards the 400 cr that will be for March uh 27. 49:32 49 minutes, 32 seconds Yes please. And this is without SVP only port. 49:36 49 minutes, 36 seconds Okay. So uh you are telling something sir. 49:44 49 minutes, 44 seconds Yeah. So I said this uh 400 figure is only assuming that only stort I mean only stort increment of revenue has been 49:52 49 minutes, 52 seconds factored in SVP we intend to commission by January but we don't want to build that into revenue at the moment because that's still uh a year away. So if that 50:01 50 minutes, 1 second happens in January there will be some incremental contribution from deadline as well but right now we go by this conservative number of 400. 50:09 50 minutes, 9 seconds Okay. Right. So going again when when that will come into full stream what will be the additional revenue from the the product? 50:17 50 minutes, 17 seconds Uh uh so assuming we commission in the month of January uh it would be roughly 50:25 50 minutes, 25 seconds 6 cr or so roughly 6 to 7 cr in the first one in one quarter initially. 50:32 50 minutes, 32 seconds Okay. Okay. And then again the ramp up will always be due there also. 50:36 50 minutes, 36 seconds Yes. So that would be a plain vanilla product initially because uh the the line is meant for inhalation solution but we can't export inhalation solution 50:45 50 minutes, 45 seconds unless the product variations are filed and uh by the way we are uh number two from India uh in terms in resules uh 50:54 50 minutes, 54 seconds after CLA but I mean that's bad comparison because we are distant number two uh but once we have this line commissioned once our offering increases 51:02 51 minutes, 2 seconds then we will be closing the gap so we aspire to remain uh uh I mean the uh their family as far as resus expose are concerned. 51:13 51 minutes, 13 seconds Okay. 51:14 51 minutes, 14 seconds Just to take some more of the uh financial questions firstly. So at the peak what should be the uh asset 51:21 51 minutes, 21 seconds turnover for the company and uh post I think so uh this repayment of debt which has happened uh what what will be the 51:30 51 minutes, 30 seconds quarterly rate of the finance cost and how should the depreciation look like sir so there are three questions one second 51:38 51 minutes, 38 seconds let me write it down yeah yeah yeah please sir I'll repeat once again that at the peak asset turnover from the expanded capacity then 51:46 51 minutes, 46 seconds the finance cost I So uh as you have mentioned about uh we have already lowered the debt and now we are at 35 cr we'll be closing. 51:56 51 minutes, 56 seconds So what should be the run rate for the finance cost? Yeah finance cost and then with the commissioning how will the depreciation line item look like? 52:05 52 minutes, 5 seconds Uh depreciation you said yeah depreciation. Okay. 52:11 52 minutes, 11 seconds So asset turnover number I don't have handy with me but what I can tell you is that after the expansion of stiport and SVP uh we are hoping to have topline 52:20 52 minutes, 20 seconds plan of roughly 430 cr or so uh and uh our ITA should be in the range 52:28 52 minutes, 28 seconds of uh roughly 105 cr uh this is without SVP I presume yeah SVP incremental revenue will add 52:37 52 minutes, 37 seconds something more P beta but SVP I don't want to build into the story at the moment because it would be producing plain vanilla products for at least 52:45 52 minutes, 45 seconds first 6 months to one year. The value creation will be visible after that. Uh so uh that is one part. Second thing is 52:52 52 minutes, 52 seconds the power saving by of solar captive would be contributing sizably to roughly 9 cr and parally our debt reduction will 53:00 53 minutes be also happening. So we are hoping to repay around 35 to 35 to 40 cr uh every year. So I think all these things put 53:09 53 minutes, 9 seconds together so I think the curve the sales curve the ITA curve and the PAT curve all will have different slopes but I 53:18 53 minutes, 18 seconds don't have asset number handy with me par I want to calculate quickly one roughly one huh negative it has to be 53:27 53 minutes, 27 seconds more than more than one and one question for the uh one question for the MD also sir uh bav g s other 53:35 53 minutes, 35 seconds than this other than this business unlisted other than the work we are 53:43 53 minutes, 43 seconds doing or this is the soul activity this is the only thing we are doing okay but me being me in personal capacity I 53:51 53 minutes, 51 seconds have no other business okay sir and it is commendable that sir even at this size we are we have the 53:57 53 minutes, 57 seconds top-n auditor at Christ waterhouse uh doing our audit so a 400 500 top line yeah this is commendable uh to need. 54:08 54 minutes, 8 seconds No, thank you. But I think when we were having 35 cr turnover, we had deployed. Okay sir. 54:13 54 minutes, 13 seconds And that time we had P though we had taken small IFC ifi funding uh as a equity and then Tata came. So I think 54:21 54 minutes, 21 seconds whenever the P fund can uh normally do they insist to have this kind of big four but we've been having big four right from beginning. So uh that's about it. 54:30 54 minutes, 30 seconds Best practices are insured sir. That is that is what the most pointed. Yeah. Correct. Correct. Thank you very much for that. 54:39 54 minutes, 39 seconds Yeah. Yes sir. Sir, u um if I may add one thing only and have joined the queue. I'm still unable to get the the 54:47 54 minutes, 47 seconds debt number as on December since we have the Yeah. 54:52 54 minutes, 52 seconds Yeah. Parasi can you share the Yeah. So at the end of December uh our uh long-term debt is about 120 cr and 55:01 55 minutes, 1 second working capital is roughly 50 cr. So about 170 cr. 55:07 55 minutes, 7 seconds Okay. And this includes this is a this is net of the repayment that we have done and the solar loan to whatever 55:14 55 minutes, 14 seconds extent we have availed it is net of that. 55:17 55 minutes, 17 seconds Okay. So in the entire proceeds also has been done to repay KKR debt. That is what the premise has been. 55:25 55 minutes, 25 seconds No no no we KK is a long is a history that was KK was out in 2122. 55:32 55 minutes, 32 seconds Okay. So but they they had the some preference shares was there which was to be redeemed in 28 but it had a higher 55:39 55 minutes, 39 seconds coupon. So uh so we have prepaid or redeemed early uh in September. 55:47 55 minutes, 47 seconds Okay. So post that all the arrangement is we are still carrying 120 cr of long-term borrowing. Correct. Yeah. 55:56 55 minutes, 56 seconds Okay. And now we are intending to repay it through the incremental cash flow from the from the working only. 56:05 56 minutes, 5 seconds Yes. From the correct from existing years cash flow on a steady state number we have repaid 35 cr. Okay. 56:12 56 minutes, 12 seconds So incremental numbers we can 35 30 36 cr to be precise. So we have prepared around 28 and 8 would be no 32 we must 56:21 56 minutes, 21 seconds have paid. Yeah, 32 we have paid this year and four more would be paid before March. So roughly 36 is prepaid in uh 56:30 56 minutes, 30 seconds paid in this year and in coming years we will be accelerating that process. 56:36 56 minutes, 36 seconds Okay. And closing debt number sir can you give I join the two now uh closing number for the current 56:44 56 minutes, 44 seconds financial year and then the next year with the maturities being presumed to be paid out what should be the closing. 56:52 56 minutes, 52 seconds Yeah. Yeah. Current current financial year our debt will be about uh long-term debt will be about 135 cr because we 57:00 57 minutes will have solar debt adding to it and then uh about 50 cr. So again about 185 57:06 57 minutes, 6 seconds 190 cr next year it should reduce to 150 cr. 57:15 57 minutes, 15 seconds 150 only. 57:16 57 minutes, 16 seconds Yeah 150 only. What is this complete debt? Including working capital, right? Yeah. Including working capital. 57:26 57 minutes, 26 seconds Okay. I'll join the queue and thank you 57:33 57 minutes, 33 seconds ladies and gentlemen. We will take a last question from Madrati from Counter Cyclical Investment. Please go ahead. 57:41 57 minutes, 41 seconds Thank you for the opportunity once again. Sir, I wanted to understand regarding the capital cycle and how much do we expect it to reduce and sir what is the cash on our books currently. 57:52 57 minutes, 52 seconds So cash on our books generally remains about uh uh ranging from 10 to 20 cr because we already have working capital 58:01 58 minutes, 1 second facilities. So we do not keep any cash with us. We do have IPO proceeds about uh 55 60 cr lying with us in monitoring 58:10 58 minutes, 10 seconds account but that is year mark for the IPO expense that is the expansion. Once expansion is over then we will have very 58:19 58 minutes, 19 seconds insignificant cash. We generally keep about 10 cr cash other than the uh normal uh business requirement because 58:28 58 minutes, 28 seconds we already have the debt. So whenever cash is available we use it to repay the debt or to reduce the working capital usage. 58:38 58 minutes, 38 seconds Sir when I uh so so I'm considering that currently 30% of our revenue is stuck uh is uh is our working capital 58:47 58 minutes, 47 seconds requirement. So so when we say that we want to increase our revenue by 120 cr next year so 30 to 40 cr would be 58:54 58 minutes, 54 seconds required in working capital. Just I'm just trying to understand how do we reduce our debt from 190 K to 150 K when 59:03 59 minutes, 3 seconds we are only repaying 3540 K but incremental debt would be for working capital would be closer to 40 K. 59:11 59 minutes, 11 seconds So if you see the numbers currently our 30%, you are right that 30% is blocked in the working capital but that is at 59:19 59 minutes, 19 seconds the current level when we go after expansion our internal acral from profit will be enough to cover the additional 59:27 59 minutes, 27 seconds working capital requirement from expansion. So after expansion suppose we need additional 20 cr working capital or 59:34 59 minutes, 34 seconds say 25 cr working capital then our cash acral will be much more than that. 59:42 59 minutes, 42 seconds Got it. So we will not increase any debt. 59:46 59 minutes, 46 seconds Got it. So that was from my Thank you so much and all the rest. Thank you. 59:53 59 minutes, 53 seconds Thank you. I would now like to hand the conference over to the management for closing comments. 1:00:02 1 hour, 2 seconds So uh thank you everyone. Thanks for uh your time once again and uh uh we'll be 1:00:09 1 hour, 9 seconds happy to stay connected. If anybody has any questions, please route it through us or go India. And if anyone of you 1:00:17 1 hour, 17 seconds happen to travel, uh we'll be happy to take you to the factory and showcase the progress that we are making. And once again, thank you very much. 1:00:27 1 hour, 27 seconds Thank you very much. On behalf of Go India Advisers LLC, that concludes the conference. Thank you all for joining us today and you may now. 1:00:37 1 hour, 37 seconds All right. Thank you.