Anlon Healthcare Ltd — Q3 FY26

Anlon Healthcare Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=b8uKM4p2zRQ Published: 2 months ago

0:03 3 seconds Ladies and gentlemen, good evening and welcome to Anon Healthcare Limited Q3 and 9M FY26 conference call hosted by 0:11 11 seconds Confidily partners. As a reminder, all the participants line will be in listenon only mode and there will be an opportunity for you to ask the questions 0:19 19 seconds after the presentation concludes. Please note that this conference is being recorded. Before we begin, I would like to point out that this conference may 0:28 28 seconds contain forward-looking statement about the company which are based upon the beliefs, opinion and expectation of the company as of the date of the call. This 0:36 36 seconds statement do not guarantee the future performance of the company and it may involve risk and uncertaintities that are difficult to predict. I would now 0:44 44 seconds like to hand over the floor to Mr. Path from Confide Partners. Thank you and over to you Path. 0:51 51 seconds Uh thanks. 0:53 53 seconds Thanks Abina. Good evening ladies and gentlemen. Good park here from confide partners. We represent the investor relations for Enlon Healthcare Limited. 1:05 1 minute, 5 seconds On behalf of confide lead partners I warmly welcome you all to Q3 9 fi26 earnings call of Enlon Healthcare 1:13 1 minute, 13 seconds Limited. The company is represented by Mr. Punit Kumar Rasara who is the chairman and managing director at Denlon 1:20 1 minute, 20 seconds Healthcare Limited. I would now like to hand over with a call to Mr. Puni G for his remarks. Thank you and over to you Punitri. 1:30 1 minute, 30 seconds Yeah, thank you. 1:32 1 minute, 32 seconds Yeah, good evening everyone uh and warm welcome to Enlon Healthcare Limited Q3 1:40 1 minute, 40 seconds and uh 9 month FI26 earning conference call. Thank you all for joining us today. Let me begin with our financial 1:48 1 minute, 48 seconds performance for Q3 FI26. The company reported total income of 35.78 cr 1:55 1 minute, 55 seconds compared to 9.38 crores in Q3 FI25 reflecting strong year-on-year growth 2:02 2 minutes, 2 seconds driven by higher API and intermediate volumes. IBITA stoods at 12.54 cr with margins at 35.06% 06% with PET came in 2:12 2 minutes, 12 seconds at 5.15 CR compared to a loss in the correspondence period last year supported by operating leverage and 2:20 2 minutes, 20 seconds improved product mix for the 9 months ended FI26 total income increased to 2:26 2 minutes, 26 seconds 121.32 cr from 71.49 cr in 9 month FI25 IITA rose to 32.56 cr with margins 2:36 2 minutes, 36 seconds improving to 26.84% 84% and PET grew significantly to 18.02 KR 2:43 2 minutes, 43 seconds demonstrating strong scale up in operations and continue demand across our core API and intermediate portfolio. 2:51 2 minutes, 51 seconds From a strategic standpoint, this period marks an important phase in Non's growth journey. We continue to strengthen our 2:59 2 minutes, 59 seconds position as a research-driven manufacturer of five purity pharmaceutical intermediate and API with the presence across 15 countries 3:07 3 minutes, 7 seconds supported by 21 DMF filing and growing regulated market focus. Operationally, our manufacturing platform remains 3:14 3 minutes, 14 seconds robust with our Rajcot facility operating at LT utilization levels and supported by strong R&D capabilities and 3:22 3 minutes, 22 seconds expanding molecule pipeline and increasing CDMO engagement. We are currently developing three molecules for two global innovator companies which 3:30 3 minutes, 30 seconds reinforce for our long-term strategy build scalable custom manufacturing platform. 3:36 3 minutes, 36 seconds During the year we also made significant progress on our inorganic growth strategy. The acquisition of epico organic has strengthened backward 3:44 3 minutes, 44 seconds integration and added substantial capacity while the proposed acquisition of bizotic life science will further escalate expansion and regulatory 3:51 3 minutes, 51 seconds readiness. With this initiative, our combined install capacity is expected to reach around 400 to 1600 metric ton 3:59 3 minutes, 59 seconds perom positioning us for the next phase scalable growth. Looking at our priorities, remain focused on expanding 4:07 4 minutes, 7 seconds presence in regulated market through additional DMF filing, launching of around seven new APIs in FY27 across 4:15 4 minutes, 15 seconds additional therapeutic categories, diversifying into industrial and fine chemicals, improving cost competitiveness through biquid 4:22 4 minutes, 22 seconds integration, scaling CDMO opportunity and global customer engagement. 4:27 4 minutes, 27 seconds Supported by this initiative, we remain confident in our ability to deliver appro 30% revenue CAGR over the next 4:35 4 minutes, 35 seconds three years along with sustainable margin performance and stronger global positioning. With this, I would like I 4:42 4 minutes, 42 seconds would now like to open the floor for question and answer. 4:50 4 minutes, 50 seconds Thank you. Participants are requested to raise their hand for the questions. 4:54 4 minutes, 54 seconds Also, one can request their questions in the question box. 5:08 5 minutes, 8 seconds We have Mr. Webha Mishra. Sir, you may unmute and introduce yourself. 5:16 5 minutes, 16 seconds Uh, hello sir. Uh, congratulations for the good set of numbers. Uh so my question is regarding uh the margin 5:24 5 minutes, 24 seconds profile and I think in Q3 we have uh clubed the margins around 35%. 5:30 5 minutes, 30 seconds So I just want to know that are these margins sustainable and uh uh what kind of margin profile can we expect going ahead in FY27 and 28. 5:40 5 minutes, 40 seconds So 35 what you are saying is the ITA right? Uh yeah yeah IATA margin. 5:45 5 minutes, 45 seconds Yeah. So that is sustainable as per our uh that even last discussion in last call also we clearly mentioned that 5:52 5 minutes, 52 seconds generally for the domestic market we are working at least with the minimum 35% EIA and for the reg market we are 6:01 6 minutes, 1 second planning to mean trying to keep the at least 50% OP beta so that margin will remain the same for the any of our 6:08 6 minutes, 8 seconds product for even next two three years and we know our customer as well as our product so we have whatever the chemistry and manufacturing advantage 6:16 6 minutes, 16 seconds with us. So that margin is sustainable for even next 2 three years also. So 35% is what are the sustainable ones? 6:23 6 minutes, 23 seconds 35 or above correct sir? Okay. Yeah. 6:27 6 minutes, 27 seconds Okay. And sir regarding the uh revenue potential like uh we have I think announced like two acquisitions one is 6:34 6 minutes, 34 seconds completed is going to be completed within 3 months. So uh is our you know uh revenue guidance for FY26 of 170 180 6:43 6 minutes, 43 seconds cr and for FY27 I think we discussed around 370 to 380 cr kind of uh number 6:49 6 minutes, 49 seconds in FY27. So are are those numbers uh intact? I mean we are yeah these number are intact and that 6:56 6 minutes, 56 seconds was the actual very much conservative number. So we are believing that uh result would be much better than 370 to 380 CR. 7:07 7 minutes, 7 seconds All right. All right. That's that's good to know sir. And so one last question regarding the CDMO segment. I think we were developing three molecules and uh those were I think in validation stage. 7:16 7 minutes, 16 seconds So what is the current status on those? 7:18 7 minutes, 18 seconds So out of that one molecule validation quantity is already dispatched within this month and regarding two molecules 7:25 7 minutes, 25 seconds it will be in somewhere around Q1 of next financial year. So around June July uh we'll get the validation for that. 7:34 7 minutes, 34 seconds All right. All right. That's it from my side and sir all the best for the future quarters. Thank you, Ibu. 7:43 7 minutes, 43 seconds You just a quick reminder to everyone, if you have a question, please raise your hand using the reactions tab. Also, one can request their questions in the question box. 7:55 7 minutes, 55 seconds Next, we have Mr. Paris Chira. Sir, you may unmute and introduce yourself. 8:06 8 minutes, 6 seconds Uh, hello. Yeah. Uh thank you for this opportunity. Hello Punid. Uh congratulations for a strong set of 8:13 8 minutes, 13 seconds results. First of all, uh sir just couple of queries my end. Uh you mentioned for the next two three years we are seeing about 30% kagger growth. 8:23 8 minutes, 23 seconds For 27 sir 370 380 looks possible. Yeah, I just thought you know probably some Yeah. 8:30 8 minutes, 30 seconds Yeah. Paras that is practically possible because what happened in our existing facility we are almost utilizing more 8:37 8 minutes, 37 seconds than 90%. You can say like it is completely utilized right now. So whatever the top line we are getting this year that may be the maximum limit 8:46 8 minutes, 46 seconds or maybe 15 20% we can increase. So we have the bottleneck in existing facility that's why the immediate decision to acquire the some factory where we can go 8:54 8 minutes, 54 seconds for the back order further uh growing opportunity. So APCO organics what we have procured right now that will uh for 9:02 9 minutes, 2 seconds that we have the confirm order book of at least 120 to 130 CR for next year. So 9:09 9 minutes, 9 seconds consolidated what we are trying to mean projecting that 370 to 380CR that is on very much conservative side and that will be achieved for sure. 9:21 9 minutes, 21 seconds Okay sir to now that it comes to capacity to uh have we completely acquired is the capacity operational s I 9:29 9 minutes, 29 seconds mean what is the position on that and epic organic is completely operational and it is utilized almost there also 80 9:38 9 minutes, 38 seconds 85% so we are planning for now after acquisition of two facilities uh companies planning for further organic 9:47 9 minutes, 47 seconds expansion in the existing facilities so that process is already going on. So mostly by end of the March we'll have 9:54 9 minutes, 54 seconds some update on that and we'll go for the further expansion in existing plant as well as we'll go for the some expansion in epico also. 10:03 10 minutes, 3 seconds Okay. So sir what just what is the total capacity between these three facilities now that would be around you can say like 1,400 to600 metric t perm. 10:15 10 minutes, 15 seconds Okay sir and green field expansion continues. Yeah, that is yeah greenfield. Yeah yeah yeah yeah that is what I'm telling you that is 10:23 10 minutes, 23 seconds already activity is already going on plan designing and everything. So once it will be finalized and will update to the exchange and all the shareholders. 10:32 10 minutes, 32 seconds So by end of March we are expecting some output on that and we are going for further green field expansion also and 10:39 10 minutes, 39 seconds for that we are just trying to evaluate the exact capacity what we have to build. So right now roughly we are planning that around 10:47 10 minutes, 47 seconds 800 to,000 metric ton will go for the green field new expansion. 10:54 10 minutes, 54 seconds But uh sir just for clarity the green field that I was talking about was initially for our you know under that enlon healthcare you looking at. Yes not 11:02 11 minutes, 2 seconds with epic one visotic. So are you saying green field for enlon itself or under EP 11:09 11 minutes, 9 seconds green field for enlon itself we have the adjoining land and we are going for expansion over there only in the same premises same campus 11:18 11 minutes, 18 seconds and at the same time epico and bzotic also we will try to see for organic expansion. 11:24 11 minutes, 24 seconds Yeah exactly bizotic we are not trying for organic expansion as of now but in epico we are going for organic expansion. 11:31 11 minutes, 31 seconds Understood. And sir between epigo and bizotic you said 80 almost 80% utilization as of now itself 11:39 11 minutes, 39 seconds in epigo it is almost 80% utilization bizotic we have the opportunity because right there there is a utilization of around 50 55%. 11:51 11 minutes, 51 seconds Understood. So 370 380 looks quite possible for okay. Okay sir just one important thing 11:58 11 minutes, 58 seconds from mind I mean basically another query on the working capital side sir now what is your target because of course you 12:05 12 minutes, 5 seconds know working capital receivable days are quite high for us. So sir uh what is our target for receivable days for FI27 end 12:15 12 minutes, 15 seconds you know and um I mean what is our target for the working capital days basically see receive I think the bottleneck will 12:23 12 minutes, 23 seconds come in see whatever the payment was due as per the our previous uh H1 result out of that we are almost cleared with 3540%. 12:35 12 minutes, 35 seconds So I think by in end of this financial year result our working capital days should be somewhere around 180 to 185 12:42 12 minutes, 42 seconds days from whatever currently 290 days a should be down to 180 185 but FI26 12:51 12 minutes, 51 seconds but next year it would be further improved. So more or less as per the standard it would be somewhere between 12:58 12 minutes, 58 seconds 150 to 160 days and that looks achievable sir. 13:02 13 minutes, 2 seconds Yeah. Yeah. Next because see we have made some several changes for the customer payment terms and all those thing. So in next financial year will definitely achieve between 150 160 days. 13:15 13 minutes, 15 seconds So which means we are saying our working capital will almost be half from from whatever exist and we are not going for any further 13:24 13 minutes, 24 seconds dilution as of now. So we are companies planning to start this organic expansion from own fund only and maybe required some bank debt only. 13:35 13 minutes, 35 seconds Aa and so generally what is our current order book? 13:40 13 minutes, 40 seconds uh for next year now right yeah I mean as of now it's a executable next year yeah 13:47 13 minutes, 47 seconds see generally what happened for 2 months it's almost one and a half months gone from this quarter 13:55 13 minutes, 55 seconds right so for remaining one and a half quarter you can say our order book is somewhere around 30 CR but for next year our 14:05 14 minutes, 5 seconds capacity is completely booked and we don't have any uh single reactor 14:08 14 minutes, 8 seconds [clears throat] 14:09 14 minutes, 9 seconds available for manufacturing but our order book in existing plant is almost for next year around 180 190 CR for APCO 14:18 14 minutes, 18 seconds we have the order book confirmed for 125 to 130 CR and for Bizotic as we have not acquired right now but uh that once it 14:28 14 minutes, 28 seconds will be acquisition is completed then we'll have some information on that 14:35 14 minutes, 35 seconds understood and 35% AITA margins are sort of reasonable. 14:44 14 minutes, 44 seconds Margin average IITA margin for our existing 14:51 14 minutes, 51 seconds product portfolio and end loan it is 35% is achievable and that will remain stable over next two three years also 14:59 14 minutes, 59 seconds but in case of APO there is little bit slighter lower somewhere around 30%. So it will impact to average out. So you 15:07 15 minutes, 7 seconds can say like 32 33% EIA will continuously maintain on that 15:16 15 minutes, 16 seconds and that is blended across all the three facilities. 15:20 15 minutes, 20 seconds Yeah. So consolidated that would be 15:29 15 minutes, 29 seconds okay. 32 33%. Okay. And sir just last mind if you have time uh when do you expect typically sir or at what revenue 15:37 15 minutes, 37 seconds rate do you expect positive operating cash flow? 15:43 15 minutes, 43 seconds I think next year we'll have the positive operating cash flow. 15:48 15 minutes, 48 seconds Next financial year we'll have the operating cash flow. 15:53 15 minutes, 53 seconds Yeah. Okay. We are expecting at least by H1 we'll have some positive but if 16:02 16 minutes, 2 seconds because there are some further planning is going on so for sure we'll have the by end of FI27 we have the 16:10 16 minutes, 10 seconds positive cash flow but we are trying to expedite and we planning that uh changes in some payment terms and all those 16:17 16 minutes, 17 seconds thing if it will work with the customer and customer will accept it then we are trying that by H1 we'll get the positive 16:25 16 minutes, 25 seconds to if not H1 at least H2 you're saying of F2 for sure it will be positive 16:33 16 minutes, 33 seconds okay sir okay thank you so much thank you just a quick reminder to 16:41 16 minutes, 41 seconds everyone if you have a question please raise your hand using the reactions tab also one can request their questions in the question box 16:51 16 minutes, 51 seconds next we have Mr. Bhavesh Patil sir you may unmute and introduce yourself. 16:59 16 minutes, 59 seconds Uh hi everyone very good evening. This is Bhavesh Patil here from Patil Investments. Uh so first of all many 17:06 17 minutes, 6 seconds congratulations on great set of numbers Punit Bay and entire management team and thank you for the opportunity. It is 17:14 17 minutes, 14 seconds absolutely wonderful to note the turnaround from loss to profit in Yi comparison and also great progress in the inorganic growth and acquisitions 17:23 17 minutes, 23 seconds Punit by you spoke about. Uh so it is great. My questions are as follow. Uh first question is can you please outline 17:31 17 minutes, 31 seconds your plan for completing the epico organic from 67.48% 48% to full or we are going to share the equity with with 17:39 17 minutes, 39 seconds the existing part and and the continuing of the question is with these acquisitions of Epico and Bizotech Enlon's consolidated capacity will be 17:49 17 minutes, 49 seconds 1,400 to,600 MP MTPA right from the current 400 MTPA which is what you're 17:56 17 minutes, 56 seconds seeing uh by March 2026. Uh this is really impressive and I want your confirmation uh on on this numbers please. 18:06 18 minutes, 6 seconds Yes B firstly thanks for your all these comments and everything. Uh your first question regarding the acquisition of APCO right? 18:16 18 minutes, 16 seconds Yeah. 18:17 18 minutes, 17 seconds So right now we are planning that maybe in next financial year we'll make the 18:24 18 minutes, 24 seconds APCO as a 100% subsidiary of en loan for the same for bizodic also we'll make the 100% subsidiary of en loan. 18:33 18 minutes, 33 seconds Perfect. This is this is very impressive and I hope you continue on this part. 18:37 18 minutes, 37 seconds Yeah, because see what actually the uh our planning was we are planning for merging it but if we'll go directly for 18:45 18 minutes, 45 seconds the merger then it will take almost one and a half year but once we'll make the 100% subsidiary then uh the process was escalated and we can clear it within 3 18:54 18 minutes, 54 seconds to four months. So that is the whole idea for making the subsidiary right now then we'll go for the 100% subsidiary then for the merger. 19:02 19 minutes, 2 seconds Wonderful. and and this plays in terms of our synergy for you know further acquisitions as well. So 19:08 19 minutes, 8 seconds yeah exactly. So we have we are see companies looking for some further uh acquisition 19:16 19 minutes, 16 seconds and evoluting for forward integration also or for other diversification in pharmaceutical range also like the new 19:24 19 minutes, 24 seconds chapter is right now opening in healthcare industry like for the peptide the specifically OMI and Monaro but peptide is not only for the GLP1 19:33 19 minutes, 33 seconds molecule along with that the cosmetic peptide is a very huge market over there so we are just evoluting for the peptide 19:41 19 minutes, 41 seconds manufacturing facility also. So that will also going to be the green field project maybe in future for us. So that is all evolution is going on. 19:51 19 minutes, 51 seconds Fantastic. Best wishes for that. The second question is uh what is the timeline you expect for the approvals of 19:58 19 minutes, 58 seconds the 21 drug master files that you have filed with global authorities. 20:02 20 minutes, 2 seconds Is it okay out of that? See basically it is not like the approval or something we have already filed it. Uh most of the drug master file is already approved. 20:14 20 minutes, 14 seconds Now the thing is that once after submission and approval of drug master file we have to supply the validation quantity to our customer. They will 20:23 20 minutes, 23 seconds prepare their dosier according to our DMF and from our material and they will get the approval from their respective regulatory agency. Then they will start 20:31 20 minutes, 31 seconds the commercial buy. So we are expecting in next financial year out of 21 at 20:38 20 minutes, 38 seconds least our six or seven the key molecule will be commercialized. 20:43 20 minutes, 43 seconds That's great to know. Thank you for that. Uh sec third question is more in terms of your vision which is impressive 20:51 20 minutes, 51 seconds which is to harness the strength of technology and research into becoming a leading global pharmaceutical company that delivers maximum consumer 21:00 21 minutes satisfaction. So basically I'm also looking ahead. So if you can expand your vision to usage of technology and 21:07 21 minutes, 7 seconds especially now with the world we are talking about AI ML that you foresee and especially with your strong background 21:14 21 minutes, 14 seconds of research uh want to see your vision for this pun 21:21 21 minutes, 21 seconds by honestly I'll tell you one thing see AI in healthcare for the chemical or pharmaceutical company that is mainly 21:30 21 minutes, 30 seconds used right now the pharmaceutical company are using for the development of for the new molecules or searching or 21:38 21 minutes, 38 seconds analyzing the molecules which can be the future drug but we are already working on some of 21:45 21 minutes, 45 seconds the our in-house IT team on the AI thing for using it uh to make the Indian patient for 21:54 21 minutes, 54 seconds our generic medicine or enlance medicine or where we can use the AI or some of the our software which we have already 22:02 22 minutes, 2 seconds developed in 2014 15 so that we want to restart again. uh in that we are trying 22:09 22 minutes, 9 seconds to uh install the AI by that we can make the distribution in all over the India for the medicine product the delivery 22:18 22 minutes, 18 seconds system the whole ecosystem with the chemist doctor pathology lab patient uh and we can try to evolute the 22:27 22 minutes, 27 seconds installation of the AI based agent in the patient's mobile or everyone's mobile that they can be your smart 22:35 22 minutes, 35 seconds doctor in your phone so we are already aligned with that vision what we have seen in 2014 15 but we were 10 years 22:42 22 minutes, 42 seconds ahead in at that time so we have stopped that project now we are trying to restart it and uh once there are some development then we'll give the 22:51 22 minutes, 51 seconds intimation to all the shareholders perfectial presentation on that and see what we 22:59 22 minutes, 59 seconds believe is in healthcare segment all the pharma company in India are almost at the same level see they may be stronger 23:08 23 minutes, 8 seconds in financial or resources but at the new technology what world is changing for biosimilar peptide AI so all the 23:17 23 minutes, 17 seconds companies are the same level so everyone is the having the equal opportunities so now let's see who can get this opportunity and where we can reach it 23:26 23 minutes, 26 seconds and we are trying our best to get it great thank you uh the the last question was more in terms of iita and pat margin 23:35 23 minutes, 35 seconds that you answered. So, thank you for that. Uh, I'll I'll definitely say one thing which is impressive plans for the 23:42 23 minutes, 42 seconds growth which you also confirmed. So, yeah, I'll first sorry to interrupt you. I'll add one more thing. Sure. 23:50 23 minutes, 50 seconds See, there is a product called Loxoprofane which is our key product for the Japan and all those market. 23:56 23 minutes, 56 seconds Loxoprofane is a second largest non-steroidal anti-inflammatory drugs in the world. 24:04 24 minutes, 4 seconds uh so we are trying to apply for the gel and uh spray form in CDSCO DCGI Indian 24:12 24 minutes, 12 seconds government to launch the formulation in India and we are expecting that we'll be 24:18 24 minutes, 18 seconds the competitive tool gel or we can be the better option in terms of safety and efficacy. 24:27 24 minutes, 27 seconds So that development is already we have started and maybe in uh next to next financial year we'll get the approval 24:34 24 minutes, 34 seconds from DCJ India for gel and spray form of lxoprofen. So that will be the replacement of droppen product which is getting sold in India. 24:45 24 minutes, 45 seconds Oh that is great. Thank you for that. 24:48 24 minutes, 48 seconds Backward integration of the loxopen we are one of the largest manufacturer and we are the only Indian manufacturer. So 24:56 24 minutes, 56 seconds we'll have the some kind of first more advantage with the monopoly with the new kind of safest NSID or pain management product in India. 25:06 25 minutes, 6 seconds Wonderful. So does this help in terms of the recent budget announcement for pharma government did something. 25:13 25 minutes, 13 seconds Yeah they they announced for the bioimilar product PLI scheme 10,000 cr for the bioimilar products. So that is 25:21 25 minutes, 21 seconds what peptide evaluation or some bioproduct evaluation what we are doing. 25:26 25 minutes, 26 seconds We'll apply for that and we'll be eligible for that. 25:30 25 minutes, 30 seconds Okay. Okay. Great. Uh thank you very much and appreciate uh your vision as well as the information you have given. 25:37 25 minutes, 37 seconds Best wishes to all of us. Thank you. Thank you. 25:47 25 minutes, 47 seconds Thank you. Just a quick reminder to everyone, if you have a question, please raise your hand using the reactions tab. 25:54 25 minutes, 54 seconds Also, one can request their questions in the question box. 25:59 25 minutes, 59 seconds Next, we have Mrs. Disha Ci. Ma'am, you may unmute and introduce yourself. 26:08 26 minutes, 8 seconds Yes, sir. Am I audible, sir? Yeah. Yeah. 26:11 26 minutes, 11 seconds Yeah. Thank you so much for this opportunity. Firstly, congratulations on a good set of numbers. So, just a couple of questions. You mentioned that you're 26:18 26 minutes, 18 seconds planning some green field expansion in both our uh existing facilities and in EPICO. So can you just quantify the the capacity that you're planning to add? 26:29 26 minutes, 29 seconds Uh in terms of quantity. Yeah. Yeah. 26:33 26 minutes, 33 seconds See right now whatever the organic expansion we are planning for the enlon that would be around uh 1200 to,300 26:42 26 minutes, 42 seconds metric ton perm. So that would be almost three times higher than what we are right now having right 26:50 26 minutes, 50 seconds and in epigo organics the organic expansion what we are planning that would be the more or less same size so that would be around 500 to 600 metric 26:59 26 minutes, 59 seconds ton perom okay okay and so for this current capacity that we have around 1,400 27:07 27 minutes, 7 seconds metric tons peranom what sort of peak revenue potential we see from here see if We will consider the current 27:15 27 minutes, 15 seconds existing order book and current product portfolio. So out of that uh we can go up to 700 to 800 CR. 27:26 27 minutes, 26 seconds And when are we planning? 27:28 27 minutes, 28 seconds Yeah. At so when are we planning to reach any timeline? 27:33 27 minutes, 33 seconds See whatever the projection we are having in hand or the visibility from our customer for product uh execution and uh confirmation. 27:42 27 minutes, 42 seconds So by 27 FI 2728 we are expecting at least by uh 650 to 700 CR we can achieve. 27:53 27 minutes, 53 seconds So by FI28 we can plan to reach 650 to 700. Is that right? Yes. 28:00 28 minutes Okay. And what sort of uh this capeex are we planning? How much have we incurred till now and what what is the target for this year and for next year? 28:08 28 minutes, 8 seconds See right now for the organic expansion greenfield project we are planning somewhere around 100 to 120 CR capex. 28:18 28 minutes, 18 seconds Okay. 28:21 28 minutes, 21 seconds And when when exactly do we uh uh see that this coming online the expansion coming online? 28:28 28 minutes, 28 seconds See we are uh trying from our end that uh execution will be started from 1st of the April 26 and we are trying to 28:37 28 minutes, 37 seconds complete the project at least by 31st March 2027 because we have the huge orders for some of the products for that 28:45 28 minutes, 45 seconds we need the capacity and we want we have to start it anyhow by 1st April 27 28:54 28 minutes, 54 seconds right so so then FI 28 we can then that will be huge Because we have so we planning to have spare capacity with all 29:03 29 minutes, 3 seconds this order book and everything right and post this acquisition or post this expansion what sort of peak revenue 29:11 29 minutes, 11 seconds will we see see on basis of that I told you that by 29:19 29 minutes, 19 seconds FY 2728 we can go up to not exactly peak revenue but 29:26 29 minutes, 26 seconds 750 50 700 to 750 CR we can reach easily because see what happen some of the 29:34 29 minutes, 34 seconds projects are already in pipeline. So maybe uh in H1 next year I can commit to you by peak revenue what can be the in 29:42 29 minutes, 42 seconds after all this expansion because see there are product mix over there. So which product we have to take 29:50 29 minutes, 50 seconds and what is the planning we are going for because there are several activities all together going on. So peak revenue 29:57 29 minutes, 57 seconds of 3 years it is very early for me to predict. 30:01 30 minutes, 1 second Okay. Okay. Fair enough. And so this year I think you mentioned we're targeting around 180 to 200 CR. 30:08 30 minutes, 8 seconds So for that for like to reach 180 I think we're targeting around 5960 sort of revenues in Q4. Yeah. 30:16 30 minutes, 16 seconds Out of which how much will this API contribute? 30:20 30 minutes, 20 seconds See 160 to 170 from Enlon and APIO is almost considering the this month's 30:28 30 minutes, 28 seconds revenue and next month's order 20 25 CR from APQ. So consolidated it would be somewhere around 190 to 200 CR. 30:38 30 minutes, 38 seconds Okay. Okay. That's very helpful sir. All the best. Thank you. Thank you. 30:45 30 minutes, 45 seconds Thank you. Just a quick reminder to everyone, if you have a question, please raise your hand using the reactions tab. 30:51 30 minutes, 51 seconds Also, one can request their questions in the question box. 31:02 31 minutes, 2 seconds Next, we have Mr. Par. Sir, you may unmute and introduce yourself. 31:09 31 minutes, 9 seconds Uh, thank you sir. So just trying to understand this 190 to 200 for FI26 and 37380 for FI27 31:17 31 minutes, 17 seconds right so EPO and all we have majority share only so this 37380 is basis they are 100% done over consolidation or to 31:26 31 minutes, 26 seconds the extent of our uh share no it's see uh total consolidated 31:33 31 minutes, 33 seconds no so this will be enlon share of so see if there is a 100% subsidy then there is no problem but as long As that is not 31:41 31 minutes, 41 seconds done 370 380 uh is consolidated for Enlon or will be you know or some 31:50 31 minutes, 50 seconds portion of that will be taken away by the minorities of EPO and Bot. No paras right now that will be the more than a 31:58 31 minutes, 58 seconds 51% state of end loan. So in balance sheet we have to consider the consolidated the total turnover because in within all 32:06 32 minutes, 6 seconds three company there is no internal transaction. So there is no any related party transaction or any sale purchase between any of the entity. 32:15 32 minutes, 15 seconds No no understood sir. So but what will happen is the turnover will be 370 380 but at the minority when after the profit you know level you'll have 32:24 32 minutes, 24 seconds minority you know interest in epico and bisotic who will take away so the profit to the shareholders of enlon will be 32:32 32 minutes, 32 seconds lower to that extent because it's not 100% owned both these correct so that 32:40 32 minutes, 40 seconds we have planned that before end of the next financial year we'll do it the 100% subsidiary 32:47 32 minutes, 47 seconds Aa so chances are quite high that 373 I take could yeah yeah yeah that is a complete chance of that 32:55 32 minutes, 55 seconds 100% okay for loan understood sir sir okay you mentioned 11 110 crores kex 33:02 33 minutes, 2 seconds funding for that will be mostly debt uh route or some sort of equity is being we are expecting that we will generate 33:09 33 minutes, 9 seconds the free cash flow during the next year so we are expecting at least 40 50 cr from our routine cash flow and we are 33:17 33 minutes, 17 seconds planning for 150 to 60 CR from the bank loan. 33:22 33 minutes, 22 seconds Understood sir. And what kind of peak debt to equity you're looking at sir? 33:27 33 minutes, 27 seconds Peak by the end of next year. Uh Parasway can you pardon? I miss you. 33:33 33 minutes, 33 seconds So okay so peak debt to equity. So you know for example if you have one rupee equity in the system you may you are 33:40 33 minutes, 40 seconds comfortable to go up to two times of that debt and so on. So for example as of 30th September our long-term short-term debt is about 60 crores roughly. 33:49 33 minutes, 49 seconds Yeah. 33:49 33 minutes, 49 seconds And our net worth is approximately let's say 200 cr. So only 25% debt. 33:54 33 minutes, 54 seconds So 0.25. 33:56 33 minutes, 56 seconds So in FI27 when you are going for this 100 crex etc. Some sort of debt also will be required. 34:04 34 minutes, 4 seconds Working capital also will be you know a part of that short-term debt. M to what? Short-term plus long-term debt 34:12 34 minutes, 12 seconds to equity or total debt which are asking for debt to equity ratio right? Huh? Yes. Yes. 34:19 34 minutes, 19 seconds Uh I think that would be somewhere around 0.5 to 0.55. 34:26 34 minutes, 26 seconds Aa so less than one month broadly. Yeah. 34:32 34 minutes, 32 seconds Understood sir. I think that is yeah quite reasonable. Yeah. 34:39 34 minutes, 39 seconds Fair enough. And then these expansions will contribute majorly in FI28. So for FI26, if my understanding is correct, 34:45 34 minutes, 45 seconds you said totally 190 to 200. One out of that 25 odd will come from EPCO. Yes. 34:52 34 minutes, 52 seconds But at 51% profit level for now. Yes. And 160 170 will come from our enl. Yes. 35:00 35 minutes Understood. Okay. Thank you, sir, sir. Yeah. Okay. 35:06 35 minutes, 6 seconds Thank you. Just a quick reminder to everyone, if you have a question, please raise your hand using the reactions tab. 35:12 35 minutes, 12 seconds Also, one can request their questions in the question box. 35:17 35 minutes, 17 seconds Next, we have Mr. Rudra Shraa. Sir, you may unmute and introduce yourself. 35:25 35 minutes, 25 seconds Thanks for the opportunity, sir. Uh, am I audible? Yes. Rashi. 35:31 35 minutes, 31 seconds Yeah, sir. Uh building on the last participant's uh question only uh 120 cr 35:38 35 minutes, 38 seconds field expansion we are doing and uh 4050 you said we can do from our own cash flows and 5060 we would need uh debt. 35:47 35 minutes, 47 seconds Yes. 35:48 35 minutes, 48 seconds But if you want to acquire the other two subsidiaries and take 100% control uh that would further require more funds. 35:57 35 minutes, 57 seconds So any estimates on how much would that requirement be? 36:03 36 minutes, 3 seconds See for that what we are planning maybe we are going for the option of share sweping to existing shareholder of that 36:11 36 minutes, 11 seconds both the entities to make the 100% subsidiary. 36:17 36 minutes, 17 seconds Okay. So that won't be a cash transaction. 36:19 36 minutes, 19 seconds Yes. So there will there will be no case crunch over there. 36:26 36 minutes, 26 seconds Understood sir. Understood. Answer. Uh coming to FI27 guidance of 370 380 crores. 36:33 36 minutes, 33 seconds I wanted to understand like where is this growth coming from? Is it mostly from our orders for loxoprofen 36:41 36 minutes, 41 seconds and kerofen or are we adding some new more molecules that is leading to this? 36:47 36 minutes, 47 seconds Rudra right now whatever the 170 180CR from enlon we are doing that is from our existing product or its intermediate and 36:55 36 minutes, 55 seconds loxoprofen and some of the other molecule what we are doing regularly there is no any additional new product over there and right now we are not 37:02 37 minutes, 2 seconds having any spare capacity in enlon for expansion for further manufacturing of the new product. So we are expecting 37:11 37 minutes, 11 seconds that 170 180 from the our existing product line uh around whatever the new 37:18 37 minutes, 18 seconds additional top line from the EPO is coming that is not from the our product. 37:22 37 minutes, 22 seconds Epico is having their own product range and which is already in contract with some of the buyer. So that business is already going on with the good margin 37:30 37 minutes, 30 seconds and good turnover. So we don't want to disturb it. So for our backward integration of the intermediate we are 37:37 37 minutes, 37 seconds trying to do the some uh job kind of or lease agreement with some of the manufacturer so that we can accommodate 37:45 37 minutes, 45 seconds the new product in our existing plant and loan until our green field expansion is completed. So that revenue we are 37:52 37 minutes, 52 seconds expecting that 170 180 from Enlon around 125 to 130 from the epico and after 37:59 37 minutes, 59 seconds acquisition of bizotic we are expecting between 75 to 80 cr from bizotic 38:10 38 minutes, 10 seconds understood sir and sir again this bizotic portfolio would be entirely different from an loans and epico portfolio 38:18 38 minutes, 18 seconds no bizotic is more or less similar or in line with the enlon that they the pharma API and intermediate facility both so 38:26 38 minutes, 26 seconds what we are planning is the domestic customer where we can target or regulatory requirement is not there that will shift to bizotic and we'll start 38:34 38 minutes, 34 seconds the selling the product from the bizotic due to capacity constraint in an loon 38:43 38 minutes, 43 seconds understood so through anon we'll be doing mostly our key products uh locken dex Keto and keto profile. 38:51 38 minutes, 51 seconds Yes. Is this understanding correct? Yes. Got it sir. Got it. 39:00 39 minutes Answer this uh number when you say we could potentially go to 800 crores. 39:05 39 minutes, 5 seconds So that would require more drug additions, right? Or would that be possible with only on the basis of the 39:13 39 minutes, 13 seconds two acquisitions that we planned and current? 39:16 39 minutes, 16 seconds No, no, no. We have the further product in our hand and that is already we are having the visibility for the commercialization by next financial 39:24 39 minutes, 24 seconds year. So on basis of the projection and customers soft commitment we are going for the further capex and or green field 39:32 39 minutes, 32 seconds expansion. Above on that we have the further capacity requirement for our existing product ketoen and loxoprofen also. 39:43 39 minutes, 43 seconds So that expansion will be used for the further development and validation of the new product and commercialization of 39:50 39 minutes, 50 seconds the product which is already uh filed and validated but it is not getting commercialized due to capacity constraint. 39:59 39 minutes, 59 seconds So we are planning to add six or seven new APIs in next financial year. 40:07 40 minutes, 7 seconds Understood sir. 40:09 40 minutes, 9 seconds Just a last uh question. Uh if I recall correctly uh you said that dai numbers will be reflected in our uh financials 40:18 40 minutes, 18 seconds from next year onwards. Is my understanding correct? Yes. 40:22 40 minutes, 22 seconds Yes. Got it sir. Got it. Got it. Thank you. Yeah. 40:33 40 minutes, 33 seconds Thank you. Just a quick reminder to everyone, if you have a question, please raise your hand using the reactions tab. 40:39 40 minutes, 39 seconds Also, one can request the questions in the question box. 40:45 40 minutes, 45 seconds Next, we have Mr. Weber Mishra. Sir, you may unmute and introduce yourself. 40:51 40 minutes, 51 seconds Uh hello sir. Uh most of the questions have been answered and I must appreciate your vision of you. It's really impressive. uh sir one small question is 40:59 40 minutes, 59 seconds left like uh the margins you uh told around about analon 35% plus and for uh 41:06 41 minutes, 6 seconds epico around 30% plus so for bisotic which is I think mostly will be used for backward integration kind of work so 41:15 41 minutes, 15 seconds what the similar margins like enlon is expected from bisotic yeah in biotic we can expect more or 41:24 41 minutes, 24 seconds less similar not the similar but between 30 to 35% ea will have in biotic. 41:32 41 minutes, 32 seconds Okay. Okay. Okay. Okay. Got it, sir. 41:34 41 minutes, 34 seconds That's it, sir. From my end. Thank you so much, sir. Yeah. 41:45 41 minutes, 45 seconds We believe there are no further questions from anyone. Would now hand over the call to Mr. Par for the Q&A box. 41:54 41 minutes, 54 seconds Actually, there are a few questions in the Q&A box. 42:05 42 minutes, 5 seconds If you could just take questions from them. 42:28 42 minutes, 28 seconds Okay, first question is from Mr. Chiak Jooshi. Can you share approximate export as a domestic mix? Will export to Europe 42:36 42 minutes, 36 seconds and USA benefit from tariff cut down? 43:19 43 minutes, 19 seconds sir, are you there? 43:21 43 minutes, 21 seconds Yeah. Yeah. I think I already re to in chat box. You won't 43:30 43 minutes, 30 seconds question answer books. I already re to him. Okay. Sir, next question is from Yesh. 43:40 43 minutes, 40 seconds What is the typical gestation period from molecule development to commercial revenue in your CDMO model? 43:47 43 minutes, 47 seconds Minimum 3 to four years. 43:51 43 minutes, 51 seconds Okay. Next question is from Ashish Takur. with focus on NSAID APIs like ibuprofen and loxoprofen. 44:00 44 minutes How concentrated is revenue in this therapeutic segment and what steps are being taken to diversify therapeutic exposure. 44:13 44 minutes, 13 seconds See our almost 30% 35% revenue is coming from loxoprofen and its intermediate uh 44:20 44 minutes, 20 seconds ketoen and it intermediate. Loxoprofen commercial quantities what we are expecting for FY27 44:28 44 minutes, 28 seconds that would be similar to 25 to 30%. 44:34 44 minutes, 34 seconds In the therapeutic diversification what we are planning that some of the product like tikagrill ranolarine 44:42 44 minutes, 42 seconds uh that we are doing for the going for the cardiac then toacetin for the arthritis and celodosine for 44:50 44 minutes, 50 seconds uncontrolled urination that is portfolio is already going on apart from there are some CKD chronic kidney disease alpha 44:57 44 minutes, 57 seconds keto analog and some of the neutrautical product contribution will come around 10 to 15%. 45:04 45 minutes, 4 seconds So that is a mix of the portfolio and so we can diversify it and we can derisk the our current product range. 45:13 45 minutes, 13 seconds Okay. So next question is from Garvita Jen. By when the green field expansion will be completed please clarify. 45:22 45 minutes, 22 seconds See we are trying our best to complete it within a one year. Generally uh in as per the industry standard people are 45:29 45 minutes, 29 seconds expecting around 18 to 20 months but we have already most of the regulatory approvals for that and statutory 45:38 45 minutes, 38 seconds approvals for that. So we have to just construct the production block remaining storage facility QC admin QA utility we 45:46 45 minutes, 46 seconds already have with us. So that will uh save over time. So we are expecting within one year we can operational now the new greenfield expansion. 46:13 46 minutes, 13 seconds Okay, next question is from Chantan Bagghani. Sir, I'm asking about the Q Q on Q revenue. 46:28 46 minutes, 28 seconds Okay, next question is from Sanjay Basak. How how much raw material are you importing from China? 46:34 46 minutes, 34 seconds See right now there is none of our KSM is from the China. Everything is indigenous and with the domestic supplier only. 46:44 46 minutes, 44 seconds Some of the basic chemicals like solvent or some of the inorganic reagents that is from the domestic supplier but we are 46:53 46 minutes, 53 seconds not importing directly anything from China. 47:12 47 minutes, 12 seconds sir, we have a follow-up question from Rudra Shrea. 47:20 47 minutes, 20 seconds Yeah, thank you sir for the opportunity again. Uh I wanted to ask what are the top three molecules in our epico and 47:29 47 minutes, 29 seconds bisotic portfolio. Could you name those molecules? 47:35 47 minutes, 35 seconds See in bisotic right now bisotic is doing our backward integration job work over there. But whatever the product we have planned there that is for our 47:43 47 minutes, 43 seconds backward means KSM like the keto nitral which is getting used for the ketorofen. 47:49 47 minutes, 49 seconds Then one of our key raw material for loxopen is BMPPA bromethile phenyl propionic acid that we have planned over 47:57 47 minutes, 57 seconds there and some of the APIs like artimer and refoxamine that we have planned over there. So after acquisition we have 48:04 48 minutes, 4 seconds already uh doing the mapping for the product over there but once acquisition will completed then we'll finalize our 48:12 48 minutes, 12 seconds this planning and uh inform to you in epico there are the products is getting 48:19 48 minutes, 19 seconds manufactured top three is the methile propile bromide then isop propile bromide and one of the KSM for 48:28 48 minutes, 28 seconds the pesticide industry with the bromination that is a top three molecules over there. 48:38 48 minutes, 38 seconds Understood, sir. And these molecules in epico, they are still doing 30% plus epida margins. Yeah. Yeah. Yeah. 48:47 48 minutes, 47 seconds Understood. And sir, are we selling these in the domestic markets or we have? 48:50 48 minutes, 50 seconds Yeah, we are selling all these product in the domestic export we have not explored yet because we don't have the spare capacity. So 48:58 48 minutes, 58 seconds we are just trying to explore the export opportunity for the intermediates of the APCO but for that we should have the 49:06 49 minutes, 6 seconds some spare capacity from our existing customers order. So that is already uh already under exploration. 49:16 49 minutes, 16 seconds Got it. And sir who would be the top three customers for this epico portfolio? Neoen Chemicals Limited and Juland. 49:28 49 minutes, 28 seconds Understood sir. Understood. 49:34 49 minutes, 34 seconds Yes sir. Thank you for taking my questions. Yeah. 49:38 49 minutes, 38 seconds Thank you sir. We have another follow-up question from Mr. Parasa. Sir, you may unmute yourself. 49:48 49 minutes, 48 seconds Uh thank you sir. So just one final thing on this Q3 revenue versus Q2 FI26 49:55 49 minutes, 55 seconds was lower. I could not understand why that was lower generally by see generally what happened in our 50:02 50 minutes, 2 seconds industry it's it can be compared with the H1 H2 because in quarter to quarter last quarter is almost vacation for the 50:10 50 minutes, 10 seconds overseas customers due to Christmas and all those thing so most of the statement is getting old for the December. 50:18 50 minutes, 18 seconds Understood. So typically you will compare H1 versus H2 rather than so yeah what happened again I'll tell you one more thing after this Q4 if 50:26 50 minutes, 26 seconds you'll consider the Q1 of the FI27 then it will be again the shrink from the Q4 of the FI26 so better way to compare 50:36 50 minutes, 36 seconds with the H1 and H2 understood so H1 H2 is a better comparison yeah thank you so 50:49 50 minutes, 49 seconds Thank you. As there are no further questions, we would now like the management to give the closing remarks. 50:59 50 minutes, 59 seconds Yeah, thank you everyone. Uh thank you for your support and all these queries and I will be happy to connect you again if you have some more queries even on 51:07 51 minutes, 7 seconds the personal call or email you can be in touch with the path. So uh he'll connect with me and whatever the question or any 51:16 51 minutes, 16 seconds further clarification you require then you can connect to us anytime and uh we'll have the great uh Q4 uh on the way 51:24 51 minutes, 24 seconds and we'll meet you again uh all uh once again uh after declaration of Q4 result. 51:35 51 minutes, 35 seconds Thank you for joining Anlon Healthcare Limited Q3 and 9M FI26 conference call hosted by conf partners. Participants 51:43 51 minutes, 43 seconds may sign