Anthem Biosciences Limited — Q3 FY26

Anthem BioSciences Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=OnR4boxNz00 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Anthem Biosciences Q3 and FI26 earning conference call hosted by 0:08 8 seconds JM Financial Institutional Securities Limited. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to 0:17 17 seconds ask questions after the presentation conclude. Should you need assistance during the conference call, please signal an operator by pressing star then 0:25 25 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amed Charal from JM Financial 0:34 34 seconds Institutional Securities Limited. Thank you and over to you sir. 0:38 38 seconds Yeah, thank you Danish. Uh good afternoon and warm welcome to all the participants on 0:45 45 seconds on Anthem Biosciences uh 3Q FY26 earnings call hosted by JM Financial. 0:53 53 seconds Today on this call we have with us from the management Mr. Ajay Bharabaj managing director and chief executive officer and Mr. Gavir Beg chief 1:02 1 minute, 2 seconds financial officer. I will now hand over call to Mr. AJ Bharaj for his opening remarks. Thank you and over to you sir. 1:12 1 minute, 12 seconds Thank you. Uh namaskar um I'm this is Ajaraj uh CEO and founder of Anthem Biosciences. 1:22 1 minute, 22 seconds Um I would like to start by uh reporting that uh you know our consolidated revenue from operations for the 9 months 1:32 1 minute, 32 seconds ending on December 31st 2025 for this financial year that is was 1,513 1:40 1 minute, 40 seconds crores. the the CRDMO business out of which was 1260 crores and the 1:47 1 minute, 47 seconds specialtity ingredient delivered 500 254 crores. Um a very positive growth in 1:55 1 minute, 55 seconds IITa. Abita was stronger than ever at 671 cr which gave us aa margin of 41.5%. 2:06 2 minutes, 6 seconds Uh this does include an additional income other income of 105 crores uh which was on account of uh as uh which 2:16 2 minutes, 16 seconds was on account of forex gains uh road tap and financial and other non-operating income uh as a this is 2:26 2 minutes, 26 seconds when you compare to the previous year which was 72 crores this time it's grown to 105 crores now our PBT before 2:34 2 minutes, 34 seconds exceptional items was 572 crores. Uh we're very happy with this uh number and 2:42 2 minutes, 42 seconds uh the out of out of this year there was one one time exceptional item of 25.4 4CR 2:50 2 minutes, 50 seconds uh and it's largely because of the in November 21st 2025 the government notified uh four new labor codes and as 3:00 3 minutes a result of which we had to take an exceptional uh item uh exceptional of 24 3:06 3 minutes, 6 seconds 25.4 crores. Now PAT after tax was 402 crores with our PAT margins at 24.8%. 3:17 3 minutes, 17 seconds uh when you compare this with previous year uh this is after the exceptional item uh with previous year was 25.7%. 3:26 3 minutes, 26 seconds So in fact PAT has grown from 369 crores in the previous 9 months to this this 3:33 3 minutes, 33 seconds this 9 months to 402 crores. So our consolidated revenue from operations for the for the quarter now Q3 I'm going to 3:42 3 minutes, 42 seconds talk about was 423 crores the out of which 333 crores were CRDMO and 90 3:49 3 minutes, 49 seconds crores were specialty ingredients a bit for the quarter was 191 crores which is 3:54 3 minutes, 54 seconds 41.8% 8% uh and uh the this also includes as I've said that there is a 4:02 4 minutes, 2 seconds other income of 33.5 crores uh PBT before exceptional item was 156 4:10 4 minutes, 10 seconds crores and PAT that is profit after tax was 93 cr and pat margin was 20.3%. 4:19 4 minutes, 19 seconds So um the in in conclusion I would like to say 4:26 4 minutes, 26 seconds our 9-month FY26 performance has shown a steady progress in revenue terms and 4:33 4 minutes, 33 seconds with improving margin profile our AITA has grown at 23%. And PBT before 4:41 4 minutes, 41 seconds exceptional items has grown around by about 20%. Our quarterly revenue performance was lower than the Q3 of the 4:49 4 minutes, 49 seconds previous financial year and that was influenced largely by the higher base that we had that time. 4:57 4 minutes, 57 seconds Although the margin improvement utilize the revenue discrepancy, the underlying demand and then in conclusion our 5:05 5 minutes, 5 seconds underlying demand remains robust and our historically strongest quarter which is the fourth quarter is still ahead and we 5:14 5 minutes, 14 seconds are confident of delivering a strong finish to this financial year and this in nutshell has been Anthem's 5:21 5 minutes, 21 seconds performance for for the 9 months and the quarter that we just finished that is Q3. three. So I'll uh I'll uh leave it 5:32 5 minutes, 32 seconds to uh uh for any any I leave the floor for questions. Anybody has any questions, I'd be very happy to me and 5:39 5 minutes, 39 seconds along with me uh Mr. Gbe who's our CFO is also here. We'll be very happy to answer those. 5:46 5 minutes, 46 seconds Thank you so much sir. Ladies and gentlemen, we'll begin with a question and answer session. Anyone who wishes to ask a question may press star and one on 5:54 5 minutes, 54 seconds the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 6:04 6 minutes, 4 seconds Ladies and gentles, our first question come from the line of 6:12 6 minutes, 12 seconds Vive Agarwal from City Group. Please go ahead. 6:15 6 minutes, 15 seconds Yeah, thank you. Uh thanks for the opportunity. uh just want to understand uh your fullear guidance right so in the 9 months uh we have uh the top line was 6:25 6 minutes, 25 seconds uh in the low double digit and uh the full year guidance are somewhere around 20 20% plus so is it still holding that 6:33 6 minutes, 33 seconds guidance given that you also talked about that the 4Q is going to be strong so just some color on the full year guidance actually that will be helpful 6:41 6 minutes, 41 seconds sure Vive uh G will respond to that so Vive um with respect to our 9 month performance although revenue has grown 6:48 6 minutes, 48 seconds at about 11 to 12%. Uh we will have a strong finish to the year. Uh quarter 4 has traditionally been the highest 6:57 6 minutes, 57 seconds quarter for us because that's the nature of the CDM business and we should be looking at uh uh a good quarter four as 7:03 7 minutes, 3 seconds well. Um what we had mentioned was you know we would look at a revenue growth estimate of about 20% with IBITa margins 7:11 7 minutes, 11 seconds remaining constant margin profile remaining steady. We'll also look at uh a margin uh growth of 20% both on iita 7:18 7 minutes, 18 seconds and pack terms as well. Um what we are seeing right now is our margin has improved uh from last year numbers to 7:25 7 minutes, 25 seconds current year numbers and that has been on account of several factors which we had talked about in terms of backward integration material margins have 7:33 7 minutes, 33 seconds improved. We have kept our cost under control from an operating leverage point of view. will continue to grow on the margins uh and that will reflect in a a 7:41 7 minutes, 41 seconds bit of performance which will be upwards of 20% from a guidance point of view for the full year as well for FI26 as well 7:48 7 minutes, 48 seconds as packed margins upwards of 20%. uh in terms of revenue growth it will be in the uh mid- teens around 15 to 16% is 7:56 7 minutes, 56 seconds what we will we're anticipating to end the year with uh but our uh margin margin guidance of 20% plus on iT uh 8:05 8 minutes, 5 seconds remains intact and we will look at delivering more than the numbers that we have talked about on it 20% uh number for ibita and pat 8:14 8 minutes, 14 seconds thanks and uh given that we have seen a structural uh improve uh we have seen margin expansion right so 8:20 8 minutes, 20 seconds What how much is like uh likely to be structural right are we seeing some flow through in FI27 as well right because uh 8:30 8 minutes, 30 seconds it looks like that the growth margins have expanded meaningfully and the margins have expanded in EIA margin have expanded in this quarter the price sharp 8:37 8 minutes, 37 seconds increase in employee expenses etc right so is it fair to assume that in 27 and 28 for example the margins may trend 8:44 8 minutes, 44 seconds significantly higher than this year um see our aspiration is always to have the margin trend pointing north. Um and 8:54 8 minutes, 54 seconds if you look at our document as well what we had submitted to the uh to SEBI from when we are doing the IPO we had mentioned that for one of the 9:02 9 minutes, 2 seconds intermediates a lot of for one of the customer products a lot of intermediates was being outsourced and hence our China 9:10 9 minutes, 10 seconds um procurement had gone up had shot up in one particular year. uh what had happened over the course of this uh financial year is we have uh completely 9:19 9 minutes, 19 seconds discontinued that China supplies because now we are um we manufacture the intermediates inhouse by procuring the raw materials. So we are completely 9:27 9 minutes, 27 seconds backward integrated and hence uh that shift is seen in the material margin improvement. So structurally we want to 9:35 9 minutes, 35 seconds ensure that material margin continues to improve. there is on products as well. 9:39 9 minutes, 39 seconds We want to have yield improvement so that that could benefit us as well as our customers. So material margin we want to move trend north. Uh other 9:48 9 minutes, 48 seconds expenses as well as employee costs are more mostly less variable more fixed in nature. Uh so unless we are looking at a 9:55 9 minutes, 55 seconds significant expansion which we are keeping in mind that new getting added. 9:59 9 minutes, 59 seconds Uh but uh but this being fixed in nature there would be a lot of some operating leverage which should come in play. Um 10:06 10 minutes, 6 seconds having said so we are operating at a uh at a good level of from an aida margin point of view which is upwards of 40% and we would want to keep our margin 10:14 10 minutes, 14 seconds steady um though aspiration wise we want to grow but we would keep our margin steady understood and just last question uh if 10:23 10 minutes, 23 seconds I may ask on revenues right so you have talked about that uh uh some slowdown because of high base but uh is there any 10:32 10 minutes, 32 seconds disruption in kind of couple of or one or two products etc. and uh whether these products are expected to come back 10:39 10 minutes, 39 seconds maybe in the fourth year or next year if you if you can provide some dialogue. Thank you. 10:44 10 minutes, 44 seconds Yeah. Uh this is a business question for sure. uh a lot of our peers and this is a global phenomena because we've had a 10:52 10 minutes, 52 seconds very turbulent uh last n or a year or so um uh in terms of being uncertaintity in 11:00 11 minutes the in the marketplace and uncertaintity certainly with regard to funding as well as our customers future plans. So what 11:09 11 minutes, 9 seconds what big which many companies did have they have detoaled a little bit and they have rationalized their stocks to lower level of safety stocks. So that has one 11:18 11 minutes, 18 seconds reason why there's been a little slowdown otherwise we were very confident of delivering 20% growth in the top line as well. However that 11:25 11 minutes, 25 seconds situation will be uh in in our minds and what we hear from them uh is that that will be corrected in the subsequent 11:32 11 minutes, 32 seconds year. So we are very hopeful. We're very positive. Nothing has changed materially for us on the ground and we are we 11:40 11 minutes, 40 seconds continue to add more customers on the in the biotech space and also are 11:47 11 minutes, 47 seconds have added actually in this year uh some large pharma customers as well. The numbers are not significant yet but once 11:54 11 minutes, 54 seconds you add big pharma customers some of these numbers can become very significant. So we are very very positive about the uh FYI 27 and 28. 12:04 12 minutes, 4 seconds Uh that is great. So just uh you have added one large pharma customer this year, right? So it's just uh can you provide a more clarity like advanced 12:12 12 minutes, 12 seconds molecule or some uh for example molecules in the starting phase like phase one of phase two? 12:18 12 minutes, 18 seconds No, we've added more than one large customer. So there is some of it is development work. Some of it some of these products are in u have been 12:25 12 minutes, 25 seconds approved. So they are going into the market but as you know uh when a new product approval comes in it takes time 12:32 12 minutes, 32 seconds to build sales. So but what's good is that you know we are in in in in with the customer on supply of advanced intermediates and should the product 12:41 12 minutes, 41 seconds grow and that of course depends on the success in the marketplace but obviously big companies always have a better uh 12:48 12 minutes, 48 seconds possibility of achieving success uh we will grow with them. So uh you know our bet is on the fact that as our customers 12:57 12 minutes, 57 seconds grow we will we will ride on that to uh grow strongly. Uh at the same time we've actually as we said before we've added 13:05 13 minutes, 5 seconds four we've had four new approvals and four four new products in the last year uh in this year rather which have gone 13:12 13 minutes, 12 seconds to uh gone got approval. So we feel we are in a very good position to benefit from them subsequently. 13:20 13 minutes, 20 seconds Understood sir. Thank you. All the best. Thank you. Thank you, Vive. 13:26 13 minutes, 26 seconds Thank you so much, sir. Our next question come from the line of Shyen Mukharji from Namura. Please go ahead. 13:34 13 minutes, 34 seconds Yeah. Hi. Uh thanks for taking my question. Uh on next year, you know, you indicated uh things should get better. 13:41 13 minutes, 41 seconds So should we expect uh growth closer to what your trajectory has been around 20% in fiscal 27 on back of you know the 13:50 13 minutes, 50 seconds existing commercial product and the new launches that you had ramping up. 13:55 13 minutes, 55 seconds Yeah. Uh tough question to answer. I am very optimistic but can I give it I mean we're still we're not finished with this 14:03 14 minutes, 3 seconds year. uh when we are more uh into the next year early we'll have more visibility but obviously you know as I' 14:11 14 minutes, 11 seconds as we have said before and I'm that that has not changed our business tends to be lumpy it tends to be good in some 14:19 14 minutes, 19 seconds quarters not so good in other quarters but directionally we are uh looking you know northwards in terms of topline and 14:27 14 minutes, 27 seconds bottom line and we expect to maintain so if you're saying in the next 5 years will we have a CAGR are of what we've had in the last 5 years. I expect so. 14:37 14 minutes, 37 seconds But will it be immediately next year? I can't say till I'm a little bit into that year. It's a little bit still 14:44 14 minutes, 44 seconds distant from us. But you know uh it won't be for the want of trying. We uh we have been we've been very good in 14:52 14 minutes, 52 seconds terms of discipline in terms of execution and that has that hasn't changed. What has also not changed is our customers confidence in us and the 15:01 15 minutes, 1 second regulatory environment for us. If anything with the new announcement which is you know that India and US are friends again all over you know there is 15:08 15 minutes, 8 seconds nothing no tensions in the in trade that will also you know which had actually put a lot of unease in our customers 15:15 15 minutes, 15 seconds mind that also has posit and and then with the EU India trade deal we expect that things are now on even ke so that 15:23 15 minutes, 23 seconds that's always good for business and I'm very positive great uh just to you know get some color because there are a lot of moving parts 15:31 15 minutes, 31 seconds here uh So if I understand correctly you know the last few years you had you know quite a good ramp up in some of your commercial products. Now when you look 15:40 15 minutes, 40 seconds forward for the next couple of years uh which will be a bigger growth driver for Anthem would be the ramp up of your 15:48 15 minutes, 48 seconds recently commercialized product like the four that you had or the ones which are already in the market you could get more volumes market share how should we think 15:56 15 minutes, 56 seconds or you know you also talked about you know lateral contracts so I'm wondering can that those sort of start ramping up pretty quickly uh so these are the like 16:05 16 minutes, 5 seconds three drivers that I see if you can you know give some color as to what which one would be the most uh or if you can 16:12 16 minutes, 12 seconds rate the importance of these drivers for you at least in the short term. 16:19 16 minutes, 19 seconds Yeah. Uh again you you asking a very tough question. My simple answer will be all of the above. Uh we would love to 16:27 16 minutes, 27 seconds see all of them grow. uh we expect that the the commercial products which have still the ones that we are already supplying to which are our established 16:34 16 minutes, 34 seconds products they have still a lot of headroom to grow and uh you know there are many markets where major markets 16:41 16 minutes, 41 seconds where approvals are awaited so I I expect that you know there we'll have some very decent numbers um as you as 16:50 16 minutes, 50 seconds you rightly said some of these new products I expect that they will be a little slower to take off in the next year if you're looking at next year but 16:56 16 minutes, 56 seconds you know uh three or four years from now we we we could be like you know laughing all the way to the bank as they say because these would become major 17:05 17 minutes, 5 seconds products. There is a lot of effort from on our side to go laterally into companies and that is also yielding fruits. So this is a hard one to answer. 17:15 17 minutes, 15 seconds Um you know they've shown a lot of interest and if we hit a jackpot with one or two of them it'll be wonderful. 17:21 17 minutes, 21 seconds But you know can I predict it at this point? I don't have a crystal ball. Uh I'm afraid not. But if you say cumulatively all these three activities 17:30 17 minutes, 30 seconds that is what matters put together it will it will give us a stronger foundation and a stronger base and therefore we'll be more steady. So I'm 17:39 17 minutes, 39 seconds not worried and you've right rightly Shan you Shan you have pointed out the three uh you know corners on which we are edififices on which we're building 17:48 17 minutes, 48 seconds fourth being our specialtity ingredients also s the existing molecules the base is higher uh for the new molecules which 17:56 17 minutes, 56 seconds have just come gone commercial base is lower so from a base effect point of view if you look at it the percentage growth might be look might be slightly 18:04 18 minutes, 4 seconds higher for the newer molecules uh because just because the base is too small for them. Existing molecules even if we continue to grow at a decent rate 18:12 18 minutes, 12 seconds over there that will help us in that will compens that will the overall basket will then show a good growth um across both existing and new. 18:22 18 minutes, 22 seconds Understood. Just if I can ask one last question before I join back this material cost to sales you you explained you know it is the gross margin 18:30 18 minutes, 30 seconds improvement because of intermediate supplies now coming to India. Is the full impact already there in the numbers or you know how and how should we think 18:39 18 minutes, 39 seconds about this number in the quarters ahead please? Thanks. The the impact is there in the numbers. 18:45 18 minutes, 45 seconds Uh uh but uh see um that's with respect to a particular product in the CDMO revenue stream. Um so the material 18:53 18 minutes, 53 seconds margin is a component which is a weighted average across multiple products in CDMO as well as products in the specialtity ingredient side. Um but 19:01 19 minutes, 1 second uh but to answer your question um the full impact is there because we don't source the intermediate anymore from uh 19:09 19 minutes, 9 seconds China uh and it's we're completely now backward integrated with the filings everything taken care of. So um uh 19:16 19 minutes, 16 seconds outsourcing is nil right now. So the full impact is baked in and and so this this this level of 19:25 19 minutes, 25 seconds margin should sustain in your view gross margin. 19:29 19 minutes, 29 seconds Um yes should be you should be able to yeah thank you. Thank you. 19:39 19 minutes, 39 seconds Thank you. 19:41 19 minutes, 41 seconds Our next question come from the line of Bansi Desai from JP Morgan. Please go ahead. Yeah. Hi. Thanks for taking my question. 19:49 19 minutes, 49 seconds So my first question is on our pipeline. 19:52 19 minutes, 52 seconds If you can comment on how you know this has grown um you know particularly you know early phase phase one phase two we know phase three you know out of 10 20:00 20 minutes molecules four have been commercialized so probably you would have six in the phase three as of today if you can you know so if you can just update on that 20:08 20 minutes, 8 seconds and out of the early phase you know any any indication as to um you know how many of them are likely to move into 20:15 20 minutes, 15 seconds phase three in your view in in next one to two uh two years. 20:20 20 minutes, 20 seconds So bunchy with respect to early phase molecules we still have similar numbers about 130 to 140 numbers which are there 20:28 20 minutes, 28 seconds on the uh pipeline side. Um I think uh on the phase 2 uh programs it will be 20:37 20 minutes, 37 seconds about five or six of them which would be in the phase two side which we could expect to move towards phase three uh in the next couple of years um you know 18 20:46 20 minutes, 46 seconds to 30 months sort of a time frame. um sub subject to you know they clearing the development hurdles because in our uh business you know it's also subject 20:55 20 minutes, 55 seconds to the clinical trials risk um on the so the pipeline on early stage is still robust uh on the phase three side we 21:04 21 minutes, 4 seconds haven't added anymore um from what it was in quarter two of last year um four 21:12 21 minutes, 12 seconds molecules went commercial so still at uh six there was one particular molecule which had gone through FDA review. I think it 21:20 21 minutes, 20 seconds has come back to the company for additional work. Uh so we are waiting for an outcome of that uh to understand what is the status of the phase 3 21:29 21 minutes, 29 seconds molecule. But right uh as of now phase three numbers remains the same and we generally hear you know improvement in the biotech funding 21:37 21 minutes, 37 seconds environment you know in the recent months. Um also there has been lot of pent-up demand given the funding environment has been weak altogether in 21:44 21 minutes, 44 seconds the last two three years. So are we likely to see you know benefits of that you know trickling to us you know as we go ahead you know are we likely to see 21:53 21 minutes, 53 seconds more expansion of our pipeline on the face products especially yeah that's a very good observation Buni 22:01 22 minutes, 1 second because we have actually your you know your uh your estimation is absolutely correct we 22:09 22 minutes, 9 seconds are seeing an an improvement in environment lot many requests for RFQS have uh come in last one quarter and it 22:17 22 minutes, 17 seconds suddenly you know which uh it wasn't looking so healthy for a while now but it is turning around and that's what we 22:24 22 minutes, 24 seconds hear from our customers as well so which is always good news for us and if if the rest of the geopolitical scene settles 22:32 22 minutes, 32 seconds down of course that is something you and I can't control but if it happens and and and it all indications are that at 22:39 22 minutes, 39 seconds least on the trade side we are now not at loggerheads with uh major western partners is I think it will be really 22:47 22 minutes, 47 seconds good for us. So yeah, you're absolutely right. I think new things are going to happen and the rest is of course you know we have to uh we can just hope and 22:55 22 minutes, 55 seconds pray that uh the success of molecules in the marketplace gets better. So and that's something that again I have we 23:03 23 minutes, 3 seconds have no control on it but uh if if that happens again Anthem will be a direct beneficiary. 23:10 23 minutes, 10 seconds That's good to know and and maybe my second question uh therefore u you know uh uh on a rather you know semiutide API 23:18 23 minutes, 18 seconds you know given the product is going to go generic very soon you know uh we have spoken in the past about you know uh u 23:26 23 minutes, 26 seconds manufacturing API for uh domestic man generic players here once the product goes off patent so how should we think 23:33 23 minutes, 33 seconds about that opportunity we also at the same time hear China being extremely competitive I know you mentioned in the past that you are you are also going to 23:42 23 minutes, 42 seconds be competitive in terms of pricing but you know you know how do you see this whole opportunity playing out for us 23:49 23 minutes, 49 seconds well you know we as I as we have said repeatedly we are very much in the mix however many companies in India are also 23:57 23 minutes, 57 seconds taking a big bet on it but uh again uh I would say we are among the very few who are completely backward integrated that 24:05 24 minutes, 5 seconds is Anthem's mantra has always been that We as you saw you know improvement of margins this year we if we are uh 24:15 24 minutes, 15 seconds dependent on some for critical raw materials or a critical input from out sources outside of India or which are 24:22 24 minutes, 22 seconds not under our control we work quite aciduously to make sure that we reverse that situation. So even in the case of 24:30 24 minutes, 30 seconds semiglutide we are arguably the most backward integrated company in the country. So over the long term we 24:40 24 minutes, 40 seconds see a very good play in it. We are in in in conversations and you know in in advanced stage of supplying raw 24:48 24 minutes, 48 seconds materials for for different types of testing uh to many of the customers who many of our customers within India who 24:57 24 minutes, 57 seconds are playing in that space. So yeah it is very much a position for us that we have taken. 25:04 25 minutes, 4 seconds But I I just want to say for us peptide is more than just GLP1 semaglutide. We are working with innovators and we're working with many other small biotechs 25:13 25 minutes, 13 seconds because this is an area of very large interest. So Anthem has made a sizable investment in developing peptide chemistries and so we work with 25:22 25 minutes, 22 seconds innovators to ensure that we work on novel molecules as well. So GLP is a more immediate u opportunity. However, 25:32 25 minutes, 32 seconds as we can all imagine, you you yourself mentioned China will be very aggressive, but you know, uh we believe we'll be 25:39 25 minutes, 39 seconds able to to to face the competition. Uh but that's more immediate, but we also have a long-term plane peptides. 25:49 25 minutes, 49 seconds All right. Thank you so much. I'll join back with you. Thanks. Thanks, man. Thank you. 25:56 25 minutes, 56 seconds Our next question come from the line of Pamela from GM Financial. Please go ahead. Yeah. Thank you for giving opportunity. 26:03 26 minutes, 3 seconds So I have one question on the capacity utilization. Uh so is it possible for us to give uh utilization across unit 1 2 3 26:12 26 minutes, 12 seconds and uh are we fine uh with the capac the available capacity for the 20% growth expectation for next two years. 26:21 26 minutes, 21 seconds Yeah. On capacities we have no problems. 26:24 26 minutes, 24 seconds Uh you know we we've mentioned expansion units just now even in unit two. So uh Gar will give you the numbers the 26:31 26 minutes, 31 seconds details but yeah capacity wise we are good um and this is this would this can take care of the next couple of years. 26:39 26 minutes, 39 seconds Meanwhile our unit force will will also become available. So uh as as we have said repeatedly, we have to be uh bold 26:48 26 minutes, 48 seconds in planning expansion and also have a fair degree of per capacity to see that this business is now going to is 26:56 26 minutes, 56 seconds pointing in this direction and make those bets in advance. So capacity wise you're okay. Sorry G you want to elaborate? 27:03 27 minutes, 3 seconds Yeah I'll elaborate. Uh so uh if you uh on specifically on units per unit uh capacity utilizations that you have asked for see unit one is a small scale 27:12 27 minutes, 12 seconds facility 25 kil custom synthesis capacity and we're almost operating at about close to 75% occupancy over there. 27:20 27 minutes, 20 seconds um unit two um um where we have um 27:27 27 minutes, 27 seconds 376 kil capacity from a synthesis manufacturing point of view and in the in the last quarter we had just 27:35 27 minutes, 35 seconds commissioned our um the CP7 which is a new block which was about 76 kil so that block is yet to be utilized um leaving 27:44 27 minutes, 44 seconds that aside on 300 kil uh of capacity we are roughly about 75 35% utilized over 27:51 27 minutes, 51 seconds there. So we have rough close to about 20% incremental capacity to add up over 27:57 27 minutes, 57 seconds there. Neoanthem which is the third unit uh that's still underutilized uh because 28:04 28 minutes, 4 seconds that that also is in a very early stage from an uh uh capacity from a ramping up mode. So there we have 28:12 28 minutes, 12 seconds significant scope to add more uh utilization. So uh that's on the custom synthesis side. fermentation new anthem 28:19 28 minutes, 19 seconds is yet to be commissioned on unit on Anthem fermentation 140 kilo lit we 28:26 28 minutes, 26 seconds would be about 46 47% capacity utilized so have decent capacity to continue on 28:34 28 minutes, 34 seconds the growth path right and uh we do have scope for further downfield expansion in unit 2 unit 3 or uh uh this is it what we have 28:43 28 minutes, 43 seconds added so far unit one full Unit two full no scope of expansion we the the scope of expansion 28:52 28 minutes, 52 seconds which was there we added in uh in this financial year uh where we added 130 kil okay unit three after this initial uh 29:02 29 minutes, 2 seconds completion of this expansion which is the fermentation capacity what we have done is we have constructed um shells 29:10 29 minutes, 10 seconds which could be repurposed so the reason why we have constructed shells is it prevents any element of civil work and 29:17 29 minutes, 17 seconds hence any disruption which could happen onto the uh overall infrastructure in unit 3. So we have constructed three different shells which could be 29:25 29 minutes, 25 seconds repurposed and where we can quickly fit out on custom synthesis or fermentation or any other uh form of expansion which 29:34 29 minutes, 34 seconds you want to do. So there are three blocks which are empty blocks in unit 3 right and uh we have to expand over them. 29:42 29 minutes, 42 seconds Sure. And in unit four, have we finalized yet on the modalities which we would be uh making in uh the new unit or is it yet to be done? 29:53 29 minutes, 53 seconds So some of it is going to be small scale molecule expansion which we know we will need because uh a lot of the thrust in 30:00 30 minutes early development is in small scale molecules. So uh again going by past performance um 30:08 30 minutes, 8 seconds some of these molecules will start moving towards commercialization and we will need extra capacity. So that is going to happen. Then we are going to be 30:17 30 minutes, 17 seconds exp uh expanding more in peptides. We need we we believe uh not we believe we 30:24 30 minutes, 24 seconds need to add more fermentation because large scale fermentation because there is uh projects that are being discussed 30:31 30 minutes, 31 seconds with us on that. then oligos. So these are some of the novel uh you know and if some of the peptide projects look start 30:40 30 minutes, 40 seconds looking rosier then we will add more pept uh uh oncology that is high potent capacities as well. 30:50 30 minutes, 50 seconds Sure. Uh the last question I have is on the fermentation side. We have a good experience of working on the fermentation uh related technology. uh 30:59 30 minutes, 59 seconds but so far we have been limited to only pharma. Is there any thought process of going into non-farma uh fermentation uh 31:08 31 minutes, 8 seconds opportunities because some of our peers are also thinking on that? Yeah. Thank you sir. Yeah, if there is you're right, 31:16 31 minutes, 16 seconds there is if there's opportunity to do something which is non-farma and it will um you know uh give us the the right uh 31:27 31 minutes, 27 seconds IP protection for our clients and the right kind of product. Yes, we it for sure and we are having some of those 31:33 31 minutes, 33 seconds discussions. Um it is uh it is in some way it's not new to us. We do nutrition 31:40 31 minutes, 40 seconds based products anyway which are fermentation based and they are non-farma but we might even look at something 31:47 31 minutes, 47 seconds industrial if it is the right product mix and it has a great future and we have some discussions in with respect to 31:55 31 minutes, 55 seconds that as well. So yeah sure and uh last question I have on the speciality ingredients. What would be 32:02 32 minutes, 2 seconds the growth driver for specialtity ingredients for next two two to three years? One is the GLP one. Apart from this uh what all things would drive the 32:10 32 minutes, 10 seconds growth in speciality? Thank you and I will join back with you. Okay. 32:15 32 minutes, 15 seconds So uh on speciality ingredients there are three growth drivers. One obviously you've talked about on GLP1. The second 32:22 32 minutes, 22 seconds one is u um we we investing significantly on fermentation. The intent over there is a lot of probiotic 32:30 32 minutes, 30 seconds work what we do for our clients. um some significant amount of probiotic strains gets imported from outside outside of India and hence we have tied up with a 32:39 32 minutes, 39 seconds fairly large Indian customer where we are looking at uh um from an import substitution point of view we'll be supplying that probiotics to them uh 32:48 32 minutes, 48 seconds going forward for India market as well as for other customers as well with refer to this customer for India 32:56 32 minutes, 56 seconds market as well for RW markets and for other customers the probiotics part is will be a significant ificant growth story on the speciality ingredient side. 33:04 33 minutes, 4 seconds The third growth factor for specialtity ingredients is the biosimilar product. 33:08 33 minutes, 8 seconds We are working on the development of a biosimilar product for a particular US customer um which is an approved 33:14 33 minutes, 14 seconds biosimilar drug um they manufacture it um outside of India and we've been 33:22 33 minutes, 22 seconds working with them on the development of this bioimilar so that the manufacturing could shift to India and we can supply to them from India. So major growth 33:31 33 minutes, 31 seconds drivers are these three. Um existing products we still uh will continue to grow. We have um couple of products on 33:39 33 minutes, 39 seconds vitamin K27 Sachio 50 days. These are our flagship fermentation based products. We will continue to grow in those products. Probiotic strains 33:46 33 minutes, 46 seconds enzymes. Uh these are all organic growth. These are the new areas where new probiotics is not a new area specifically but it's a uh focus area 33:54 33 minutes, 54 seconds for us. And the new areas are the GLP1 and the biosimilars for us for speciality ingredients growth. 34:01 34 minutes, 1 second Sure. Thank you so much. 34:06 34 minutes, 6 seconds Thank you. Our next question come from the line of Nha Manpurya from Bank of America. Please go ahead. 34:13 34 minutes, 13 seconds Yeah, thanks for taking my question. Uh just uh as we think as we are starting work or doing work on unit 4 uh you mentioned that you know obviously 34:20 34 minutes, 20 seconds there's a fair bit of uh order that you're sort of building up but how should we think about creating capacity versus you know uh when getting into new 34:29 34 minutes, 29 seconds business particularly if I look at you know capeex across peers both in India, China uh and Europe on the CDMO side u 34:38 34 minutes, 38 seconds is that capacity investment essential for our you know to get new business that's my First question and second on 34:45 34 minutes, 45 seconds peptides um while you did mention that you know you want to get more on peptides what do you think differentiates Anthem from its on its 34:53 34 minutes, 53 seconds ability to get more business on peptides how how should we get more confidence around that? Thank you. 35:00 35 minutes Thank you Nha. Uh the first question is a very important and also a little bit of a philosophical question. How do we 35:08 35 minutes, 8 seconds decide what capacities to put? Listen um uh again for everybody who's on this call in our business first we have to 35:16 35 minutes, 16 seconds build it and then they will come uh we'll never our customers want to see that we have the capability as well as 35:25 35 minutes, 25 seconds the capacity a to to to handle the project then only they are interested in giving us the 35:31 35 minutes, 31 seconds project see we all admire uh uh China's scale but they built capacities and then they were able to fill it up with the 35:40 35 minutes, 40 seconds business from the world. So some of that without being sometimes I think you know we we we have to do it carefully and so 35:46 35 minutes, 46 seconds far we've done it we've managed our uh you know our capex versus our business fairly well and that's reflected in our 35:55 35 minutes, 55 seconds uh return on uh on our roies which are very strong. Um we have to build new capacities then only we can attract more 36:04 36 minutes, 4 seconds customers. So when we have to when do we start building these new capacities? We start building them in advance of when 36:11 36 minutes, 11 seconds you see that some of these projects that you are looking at which are in phase two now may advance to phase three and 36:19 36 minutes, 19 seconds phase three to commercial. So at that point you have to plan your capacities and that's why we are so bullish about 36:25 36 minutes, 25 seconds it. Second of course is u you know our uh our projects tend to be green field. 36:32 36 minutes, 32 seconds uh it's very hard for us to you know we we have looked around for uh acquiring a good asset but it's very hard to find 36:40 36 minutes, 40 seconds really good assets so we build green field a lot and to a standard that will pass muster with regulators as well as 36:48 36 minutes, 48 seconds our own internal standards as well as our customer standards and I think we are second to none when it comes to that and that's another reason why we have to 36:56 36 minutes, 56 seconds start building in advance uh the the question on that you asked on pep side. 37:03 37 minutes, 3 seconds Um well you know um we are without taking any names we are already 37:11 37 minutes, 11 seconds um uh making a few peptides commercially. uh most of all of them are in the generic space and we supply to 37:19 37 minutes, 19 seconds many uh to customers in India uh and and also in in in talks with customers overseas now and with GLP1 which our 37:29 37 minutes, 29 seconds partners all recognize that we have the ab ability to do it and that is the reason why uh innovator companies are 37:36 37 minutes, 36 seconds looking at Anthem to partner with us to develop new peptides if they didn't have confidence in our ability they will not come to us so peptide is something we 37:45 37 minutes, 45 seconds have I would say reached a fair degree of proficiency in making and uh developing and so we are in a good place 37:52 37 minutes, 52 seconds there uh I don't have any names to give you but trust me and believe me that we 37:59 37 minutes, 59 seconds are we are among the pioneers in peptide development in the country now I like I like to add something nha on this see uh peptides we started work 38:09 38 minutes, 9 seconds around 2012 134 around that time when we were doing lab scale work for most of of our customers. Uh we currently work with 38:17 38 minutes, 17 seconds innovator peptides. Close to about 8 n programs are there on innovative peptides which are under development. Um from lab scale um now we have expanded 38:27 38 minutes, 27 seconds into a full-blown 16 kil uh commercial scale manufacturing facility at neoanthem. It's a fantastic facility. 38:35 38 minutes, 35 seconds You should come visit and see us on the website facility. Um so we as a competitiveness to or a differentiator 38:42 38 minutes, 42 seconds to uh uh to customers we have ability of doing discovery development and commercial manufacturing on websites and 38:50 38 minutes, 50 seconds commercial and manufacturing at scale with the new facility which has just come up. So that gives a unique that gives a good proposition for customers 38:58 38 minutes, 58 seconds to keep the products more develop development or in a late scale project also to come to us because um you don't 39:06 39 minutes, 6 seconds then need to uh venture out somewhere else looking out for capacity to uh to tech transfer the project. So that's an 39:13 39 minutes, 13 seconds a differentiator for us. Um on the gener website GLP1 they did talk about we are completely backward integrated over there. uh we manufacture the 39:22 39 minutes, 22 seconds fermentation fragment as well as do the synthesis uh and only company in India to uh be completely backward integrated and hence be competitive uh from a cost 39:31 39 minutes, 31 seconds point of view to play to uh compete against the Chinese on some so that's the uniqueness or the competitiveness 39:40 39 minutes, 40 seconds when we target our Indian customers who are looking at tapping the RO markets as well as India markets in the GLP1 space 39:47 39 minutes, 47 seconds the generic semutide space side that's very helpful sir. Uh just a follow up on the first question. Uh so 39:54 39 minutes, 54 seconds unit 3 as we see you know it ramping up probably in uh 27 more so fiscal 28. 40:01 40 minutes, 1 second Would it be fair to assume that we get to that 1 1.4 1.5 asset turn probably in 3 years time. Would that be a fair assumption? 40:09 40 minutes, 9 seconds I would say that's a good assumption definitely we have to do it. All right. Thank you so much. 40:17 40 minutes, 17 seconds Thank you so much. Our next question come from the line of uh J Gandhi from Dalal in Bcha. Please go ahead. 40:24 40 minutes, 24 seconds Yeah. Hi sir. Thank you for the opportunity. So I just wanted to confirm on the four new molecules that have been approved in the past quarter. Have they 40:32 40 minutes, 32 seconds started contributing uh to our revenues and uh I mean when can we see a full ramp up of these molecules? 40:40 40 minutes, 40 seconds uh just they have contributed revenues uh for this 9 months uh because customers have taken smaller batches because they are just looking at 40:49 40 minutes, 49 seconds launching this product in the market. Uh but I think u the uh major impact uh we 40:55 40 minutes, 55 seconds will get to see only towards uh um end towards end of this calendar year when we get to know more orders from them. Uh 41:03 41 minutes, 3 seconds this is this is still at an early stage of commercial launch. So the product will uh if I have to see a full-blown impact maybe it might take couple of 41:11 41 minutes, 11 seconds years for these four commercial molecules to show good result as what are existing molecules have shown 41:18 41 minutes, 18 seconds and you know sorry go ahead go ahead no go ahead sir I was just going to add that these the 41:27 41 minutes, 27 seconds products which are small biotech uh they don't really take off right away because more often than not these 41:36 41 minutes, 36 seconds companies are already are parallelly negotiating to sell themselves to big pharma. So there is always a little lull now that they have an approved product. 41:46 41 minutes, 46 seconds Uh they are taking quantities to go for a launch but at the same time they're also working uh on mergers and 41:53 41 minutes, 53 seconds acquisitions as a result of which we very often find that only after big pharma steps in there is a possibility 42:01 42 minutes, 1 second of a quick ramp up. uh but you know this is not something again uh an event that we can we we know fully of uh and we are 42:11 42 minutes, 11 seconds we we can't control it also but this is another reason why sometime there is a lag between the product being commercially approved and giving you the 42:19 42 minutes, 19 seconds full benefit of full-blown commercial success so that time we have to wait right and sir are the is the end market 42:28 42 minutes, 28 seconds potential for these products lucrative enough for large farmers indication any indication I mean what what what size could they reach any any thing you 42:38 42 minutes, 38 seconds can are they expected to be blockbusters yeah some of them are and remember very 42:45 42 minutes, 45 seconds often the indication in which they get their first approval is usually a small orphan indication that is just to get 42:52 42 minutes, 52 seconds the product approved parallelly people start working immediately on other indications and that's what's happening with these molecules and that's the 43:00 43 minutes reason why they've taken more material for more clinical trials as well. So very often a small molecule indication 43:06 43 minutes, 6 seconds is is a is a entry point and after that is when the expansion takes place. So um many of these uh uh some of these 43:15 43 minutes, 15 seconds products are in that mode as well. You you know what our one one of our biggest products got one approval today it has 43:23 43 minutes, 23 seconds six or seven indications which are approved and that's what makes it a blockbuster. So this is happening parallelly. Um just to add just uh I 43:31 43 minutes, 31 seconds think in the last call I would have given some estimates of the peak market sales for these four customers for four products uh roughly peak market sales 43:39 43 minutes, 39 seconds roughly about $10 billion. Well I haven't checked any changes on the analyst estimates for these four uh pro 43:46 43 minutes, 46 seconds four uh uh end molecules in this course of the last two three months unless numbers would have changed significantly. But my sense is it's a 43:55 43 minutes, 55 seconds $10 billion estimates across the uh four molecules which are there which got commercial for us. 44:02 44 minutes, 2 seconds Okay. Perfect sir. Thank you so much. 44:06 44 minutes, 6 seconds Thank you. Our next question comes from the line of Karthik Ban from Baj Life Insurance. Please go ahead. 44:13 44 minutes, 13 seconds Uh thank you very much uh for the opportunity. I just wanted to understand uh this thousand core capex for the unit 44:21 44 minutes, 21 seconds 4 that we have planned for the in terms of two years. So where exactly are we what would be the uh education 44:28 44 minutes, 28 seconds milestones and bottlenecks to watch out for? 44:32 44 minutes, 32 seconds So um Karthik currently the civil work is going on um we are uh so what we are 44:41 44 minutes, 41 seconds doing is it's a 30 acre land parcel so we are looking at a phase one and a phase two. So we are looking at only uh half of the land parcel right now to 44:50 44 minutes, 50 seconds construct uh and the civil work is ongoing right now. Um so significant uh capacity uh sorry spends haven't 44:59 44 minutes, 59 seconds happened because construction takes time. Um I think towards uh in March 27 financial year we'll have major portion 45:07 45 minutes, 7 seconds of capex going out um for uh this,000 cr phase one expansion that we are doing. 45:13 45 minutes, 13 seconds uh it's still in an uh early stage u uh civil work mode right now on P on unit 4. 45:21 45 minutes, 21 seconds Uh okay. Uh and secondly um on the ADITA margin outlook or the growth that we have got how much uh is um contributed 45:30 45 minutes, 30 seconds by uh the constant currency uh as most of our projects are also outside India. 45:38 45 minutes, 38 seconds So um see if if you look at it uh what we have given out in the financial is um so speciality ingredients is pure play 45:47 45 minutes, 47 seconds uh India income because um 90% of the business is India and speciality gradients CDMMO is where uh we it's 45:55 45 minutes, 55 seconds completely export oriented and dollar denominated um whatever increment uh so we we as a policy don't hedge uh and 46:03 46 minutes, 3 seconds hence uh whatever appreciation from a currency. What we have seen is what we recognize as an FX income uh which we 46:11 46 minutes, 11 seconds have articulated as the other operating income in the opening statement that uh AJ had mentioned. Uh the other operating 46:19 46 minutes, 19 seconds income which is not factored in the revenue line item in the revenue from operations line item is about um uh 41 crores for 9 months and for this quarter it is about 6.4 crores. 46:31 46 minutes, 31 seconds Okay. And and lastly of the molecules in the early stages uh do we have any ADCs there? Like out of these 130 140 how many would be ADCs? 46:43 46 minutes, 43 seconds Um there's one uh so um in late stage there is one uh molecule which is uh in 46:50 46 minutes, 50 seconds phase three there is one molecule which is there ADC. Um on the early stage I would say we'll have about six to seven programs which are ongoing. 47:03 47 minutes, 3 seconds Okay, thank you very much. Thank you Karthik. Thank you. 47:09 47 minutes, 9 seconds Our next question comes from the line of Sanjay Kumar from Ith thoughts PMS. Please go ahead. Uh hi sir thanks for the opportunity. 47:18 47 minutes, 18 seconds First is just a follow up on simutite. 47:20 47 minutes, 20 seconds Are we focusing on the oral SEMA or the injectable version uh of SEMA and uh last quarter I think we had said that uh 47:29 47 minutes, 29 seconds process validation is underway. Uh so any timelines for filing DMF and have we signed any customers in India? 47:38 47 minutes, 38 seconds Uh see we are not in the f finish thing. 47:42 47 minutes, 42 seconds So we don't we focus on semaglutide as the active not the oral or uh injectable 47:49 47 minutes, 49 seconds and yes we have signed up with the uh bunch of customers in India. Uh are we 47:56 47 minutes, 56 seconds filing a DMF in the US yet? No. Uh but that is something which will be subsequent. uh because at the moment 48:03 48 minutes, 3 seconds most of our customers are f focused on launching it in ro and uh that is something which we are very very well 48:10 48 minutes, 10 seconds geared up for and yes we've done validation batches and all the rest of it so we haven't filed the DMF though we are in a position to do it 48:19 48 minutes, 19 seconds Mich hello 48:31 48 minutes, 31 seconds Okay. So I'm said though we haven't filed the DMF though all the documentation and DMC document needed for that is ready. Uh but we are working 48:39 48 minutes, 39 seconds with our customers to do that. Yes, we're working with major Indian companies in in this space. 48:45 48 minutes, 45 seconds No, I I understand it's the API but the customers who are who have signed it is will they be using it for oral or uh 48:53 48 minutes, 53 seconds injectable do we have any usability on that or uh many of them are trying to develop oral oral is a little hard but everybody will 49:01 49 minutes, 1 second use it for injectable right away but oral also has patents which are longer which go a little further but yeah uh I 49:09 49 minutes, 9 seconds know that there are a few people who are working on orals as well so oral will definitely be in the Okay. Okay. And second couple of 49:17 49 minutes, 17 seconds questions on biosimilars. We have repurposed a plant for uh biosimler. 49:22 49 minutes, 22 seconds What is the reactor scale uh or the capacity uh from this plant and uh the product that we have signed is it a n or a fusion protein? 49:34 49 minutes, 34 seconds Oh, it's a microbial uh bioimilar and uh it is uh our capacity is uh we have uh 49:42 49 minutes, 42 seconds sweet uh two trains one each of 200 liter fermentation and that can produce a lot of product uh because uh microbial 49:52 49 minutes, 52 seconds fermentations are usually one or two days only uh as opposed to CHO uh CHO 49:58 49 minutes, 58 seconds fermentation which can be weeks. So yeah, it is a large molecule based on 50:04 50 minutes, 4 seconds microbial uh uh microbial uh microbial bug. It's a it's a it's a micro. 50:15 50 minutes, 15 seconds Got it. Got it. And what is the current global market size for this uh bioimilar and what revenue can we expect in say 50:22 50 minutes, 22 seconds FI28 for this product? Oh, it's this product is a massive it's gone it's gone bio similar long time ago. Uh and you 50:32 50 minutes, 32 seconds know there's no there are other players in it but the the company that we are working with have a decent market share 50:40 50 minutes, 40 seconds in the US. So they already have uh got this product in the market which they currently make in the US. The idea for 50:47 50 minutes, 47 seconds them is to to stop that production and shift that production to us so that they can get all the advantages of Anthem's 50:54 50 minutes, 54 seconds technology as well as uh the lowcost uh uh you know input that we provide and uh 51:02 51 minutes, 2 seconds that they have they have a fairly decent business already. Uh remember this this particular area there are it's it's it's 51:09 51 minutes, 9 seconds been generic for a long time. There has been no replacement for it. There are other players who make this but in in this space though this is a very old 51:18 51 minutes, 18 seconds molecule it's the only one that is approved uh for this indication and no new replacements have come so it it has stood the test of time. 51:30 51 minutes, 30 seconds Okay. Okay. And and uh uh can you comment on the future pipeline for biosimilars? You said we this is a microbial but can we also do a CHO based 51:38 51 minutes, 38 seconds mamalian bioimilars where are we on the other yeah yeah Sanjay we are working on bunch 51:47 51 minutes, 47 seconds of projects there and those are also biosimilars again we we have chosen some products where there are no biosimilars 51:55 51 minutes, 55 seconds available even though the product has gone off patent and we are working with one of them is fairly advanced and we expect that that should go into the market in the next two Yes. 52:07 52 minutes, 7 seconds Okay. Then is this latest capacity enough for we'll have to build we'll have to build new capacity for that. That's that's 52:14 52 minutes, 14 seconds something which is going to be uh separate facility. Unit three has uh you know we've created as we said the 52:22 52 minutes, 22 seconds infrastructure already what we are putting in place and that's already past the design stage. We are now negotiating 52:29 52 minutes, 29 seconds with vendors to supply uh you know uh partly single use and partly uh fixed uh 52:37 52 minutes, 37 seconds fermentation for okay chose home. 52:41 52 minutes, 41 seconds Okay. Uh final question is again I can uh what will be the capex that will be needed to set up a a 16k pepide uh facility just trying to understand the replacement cost. 52:54 52 minutes, 54 seconds So uh see uh if you look at uh proportionate capeex including you know the other utilities which is set up as 53:03 53 minutes, 3 seconds part of the facilities then roughly will be about 200 odd crores. 53:09 53 minutes, 9 seconds Okay. Okay. Got it. and uh the stone and because that that will be you know you set up other utilities like ATP and 53:17 53 minutes, 17 seconds ancillary blocks etc which is common to the facility common to the plant right block other blocks are there so 53:24 53 minutes, 24 seconds you have to proportion that as well so from that point of it will be roughly about 200 crores which should be there okay and let's say we make 200 kg uh 53:33 53 minutes, 33 seconds output of peptides what kind of uh uh aita margin can we make in uh peptides be or other generic peptides. 53:45 53 minutes, 45 seconds Oh yeah, we'll be we are very confident that we'll be able to do the you know what we have the numbers we have done the numbers. I don't have them in front 53:53 53 minutes, 53 seconds of me but it it is eminently doable. Uh we so far have been laser focused I 54:00 54 minutes would say uh paranoid about margins and I don't see that going away. Trust me, we are in a very good place as far as 54:08 54 minutes, 8 seconds see the peptide for instance, you just take GLP-1. 54:11 54 minutes, 11 seconds Making the peptide is only half the story. There is a fermentation element. 54:16 54 minutes, 16 seconds So you have to be able to do fermentation effectively and at a price which at a cost all of you know P29 P29 54:23 54 minutes, 23 seconds from China is very very competitive and cheap. We will uh we find that still a very attractive proposition. We don't 54:31 54 minutes, 31 seconds see any worries there. So we are you take the whole uh manufacturer of say GLP one right the way right from 54:38 54 minutes, 38 seconds fermentation to the finished product uh we will be able to get the aas that we are uh we've been historically been used 54:46 54 minutes, 46 seconds to okay so even if let's say some API prices crash to say $100 per gram we 54:54 54 minutes, 54 seconds could still make 35% kind of uh uh aa margins in peptides oh absolutely 100 would be a nice price. 55:03 55 minutes, 3 seconds It's a dream. 55:04 55 minutes, 4 seconds Wow. Okay. That's would be your I think I I I tr I believe it will go lower than that but yeah 100 would be very nice. 55:13 55 minutes, 13 seconds Okay. Okay. Got it. I think that's it uh from my side. All the best and thank you. 55:19 55 minutes, 19 seconds Thanks. Thanks NJ. Thank you. Next question comes from the line of Vive Gotham from GS investment. Please go ahead. 55:27 55 minutes, 27 seconds Yes sir. So I just wanted to know about uh any DTalking we are facing in any molecule and so that is leading to some 55:36 55 minutes, 36 seconds sort of soft uh performance over last few quarters and the risk and uh the 55:43 55 minutes, 43 seconds situation might improve in the uh the coming quarters and uh second question was about what portion of our portfolio 55:51 55 minutes, 51 seconds will comprise of GLP1 drugs in FY28. Thank you. 55:58 55 minutes, 58 seconds Yeah. Uh you're right about talking. U there has been Hello. 56:08 56 minutes, 8 seconds Yeah. Yes sir. 56:10 56 minutes, 10 seconds Some problem with the line. Uh see there has been some uh definitely because of the general geopolitical tension that we 56:18 56 minutes, 18 seconds have seen in the last uh one year uh where you know we have been in loggerheads with major trading partner 56:26 56 minutes, 26 seconds United States. It has put a lot of anxiety in the mind of uh big pharma and as well as small biotech. So people are 56:35 56 minutes, 35 seconds being have been very wary about building up too much stock and you know carrying too much inventory. So they have been uh 56:43 56 minutes, 43 seconds little bit mindful of reducing the number of days of safety stock. So that has affected us otherwise we would have had been uh you know uh bumper growth 56:52 56 minutes, 52 seconds this quarter also. But again uh we are seeing signs of recovery that all the detocking that had to happen has 57:00 57 minutes happened and these results that we are reporting is subsequent to that. So we feel that going forward this will be a 57:08 57 minutes, 8 seconds uh it we we will be in a very good position uh as far as uh uh filling up 57:15 57 minutes, 15 seconds the the new requirement which will be posttocking. So that is one on the GLP uh we are again what percentage of 57:23 57 minutes, 23 seconds revenue I don't know hard to say but will it be a significant part of our uh turnover I would say yes. uh will it be 57:33 57 minutes, 33 seconds 20 30%, I don't think so. But it still will be a major contributor to our top line as well as the bottom line. 57:42 57 minutes, 42 seconds And sir uh this recent budget announcement of India was there some incentive for the biioarma companies and 57:49 57 minutes, 49 seconds uh the trade deals with being signed in US, EU, UK and other countries also. How does that play up sir? Thank you. 57:57 57 minutes, 57 seconds Yeah, the details of that Vive are yet unknown. So I don't really know uh how this will play out with the US and all that but yeah the government is 58:06 58 minutes, 6 seconds encouraging which is a good thing. The government sees biotech as an as a strategic uh sector of economy. Uh you 58:15 58 minutes, 15 seconds know it should have been recognized long ago but it's you know better late than never and I think that this will definitely have a very positive impact 58:23 58 minutes, 23 seconds on but you know they're offering incentives uh and PLI based things. I don't know I don't know the details will still come out but you know Anthem is 58:32 58 minutes, 32 seconds already regardless of what the government policy is we are going to be uh we are firmly entrenched in this we've been doing this for two decades 58:39 58 minutes, 39 seconds and before that you know I've been involved for four decades in this now so biotech is very close to us and we will 58:47 58 minutes, 47 seconds continue to so if if the if the winds become favorable from the side of the government then it's even more gives us 58:54 58 minutes, 54 seconds more tailwinds so I'm I'm just very bullish about this. I'm I'm super confident that uh biotech which we've 59:01 59 minutes, 1 second talked about for such a long time uh as a sector its time has come. Thank you sir. 59:09 59 minutes, 9 seconds Thank you. Thank you Vive. 59:11 59 minutes, 11 seconds Thank you ladies and gentlemen. Due to the time constraint that was the last question for today I would like to hand the conference over to the management 59:19 59 minutes, 19 seconds for the closing comments. Thank you and over to you team. 59:25 59 minutes, 25 seconds Um so thank you very much to JM and to all the people who were on the line. 59:29 59 minutes, 29 seconds Unfortunately uh only so much time and you know only that many questions. Um as we said uh we would communicate to us we 59:39 59 minutes, 39 seconds have tried to be as transparent as as um open about how we see the prospect of Anthem and where Anthem is headed. uh 59:48 59 minutes, 48 seconds and we really appreciate the support that we've got from the investors and the investment community and you will 59:55 59 minutes, 55 seconds see that uh regardless of what happens in the in the in you know going forward in the geopolitical situation Anthem 1:00:04 1 hour, 4 seconds will continue to invest continue to invest in technology and our edge which is something that we are laser focused 1:00:12 1 hour, 12 seconds on is doing the same things differently and doing different things that will not Again, that is our mantra and thank you very much for being on this call and I 1:00:21 1 hour, 21 seconds look forward to talking to you again at the end of the year. Thank you everyone. 1:00:26 1 hour, 26 seconds Thank you so much ladies and gentlemen on behalf of GM Financial Institutional Securities Limited that conclude this conference. 1:00:34 1 hour, 34 seconds Thank you for joining us and you may now disconnect your lines. Thank you.