Caplin Point Laboratories Limited — Q3 FY26

Caplin Point Laboratories Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=aWvM3m-hnyo Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Kaplan Point Laboratories Limited Q3 FY26 earnings conference call 0:08 8 seconds hosted by Dalit Capital Markets Private Limited. As a reminder, all participants line will be in the listenonly mode and there will be an opportunity for you to 0:17 17 seconds ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:26 26 seconds zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Candace Pereira from Dollar 0:34 34 seconds Capital Markets Private Limited. Thank you and over to you. 0:39 39 seconds Thank you. Good evening everyone. I Candace Pereira on behalf of Dolet Capital welcome you all to the Q3 FI26 0:49 49 seconds conference call for Kaplan Point Laboratories. 0:52 52 seconds Today from the management team we have with us Mr. CC Party Chairman, Mr. Vive 0:59 59 seconds Party, Vice Chairman, Dr. Sridar Ganeshan, a managing director, Mr. D. 1:05 1 minute, 5 seconds Murali Daran, CFO, and Mr. Satya Narayan M, Deputy CFO. I now hand over the call 1:12 1 minute, 12 seconds to the management for the opening remarks. Over to you, sir. 1:17 1 minute, 17 seconds Thank you, Candace. Uh thanks everyone for taking time out to attend uh our earnings call for Q3 FY uh uh 20 uh six actually FY27. 1:30 1 minute, 30 seconds So uh well please note that a copy of uh all our disclosures are available on the 1:38 1 minute, 38 seconds investor section of our website as well as on the stock exchanges. And um note that uh anything said on this call which 1:45 1 minute, 45 seconds reflects our outlook for the future uh which should be con construed as a forward-looking statement must be reviewed in conjunction with the risks 1:53 1 minute, 53 seconds that the company faces. The conference call is being recorded and that transcript along with the audio will be made available on the company's website 2:00 2 minutes as well as the exchanges. Also do note that uh the audio on conference call is copyright material 2:07 2 minutes, 7 seconds of cap point and cannot be copied, rebroadcasted or attributed in press media or social media without specific 2:15 2 minutes, 15 seconds written consent of the company. I would like to hand over the floor to our chairman for his open remarks please. 2:22 2 minutes, 22 seconds Thank you. Good evening and welcome all to our task. I think that most of you must have gone through our first release 2:31 2 minutes, 31 seconds but my colleagues will also highlight the salient features of our company. 2:36 2 minutes, 36 seconds Hence I would like to convey two major step that we have taken recently. 2:42 2 minutes, 42 seconds This I sincerely feel will be a game changer or blackbox for our company in future. Number one is our video SOP. It 2:51 2 minutes, 51 seconds is also a visual SOP acts as a visual hammer to replace the work use. Our 2:58 2 minutes, 58 seconds video SOP will convert invisible execution into inspectable evidence for compliance and also this will enhance 3:07 3 minutes, 7 seconds productivity in farmer manufacturing. Non-compliance is not training failure is an execution 3:17 3 minutes, 17 seconds visibility failure. Farmer factories run on SOPs which is a traditional test book 3:24 3 minutes, 24 seconds one compliance is demonstrated in seconds which leads to issues. Hence Kaplan converts current SOPs into visual 3:32 3 minutes, 32 seconds scripts that shows best practice actions in stepbystep details. We also include a 3:40 3 minutes, 40 seconds regional languages for our factory workers. We further have plans to use videos to celebrate the best performing operators as role models. 3:52 3 minutes, 52 seconds The remote control online monitoring of over 4:04 4 minutes, 4 seconds sorry to interrupt you but your voice is sounding a bit muffled. 4:15 4 minutes, 15 seconds Hello. 4:23 4 minutes, 23 seconds The line is breaking a little. Uh, channel, can I go ahead and repeat or uh Yeah, now it's better. Now it's better. 4:36 4 minutes, 36 seconds Hello. Yes. Now it's better, please. Yes. 4:43 4 minutes, 43 seconds I have to start. Okay. 4:54 4 minutes, 54 seconds Yeah. Continue please. 4:56 4 minutes, 56 seconds Hello. To repeat the whole thing. Uh where exactly you know you were not in a position to 5:04 5 minutes, 4 seconds No. No. Only only in the last uh 20 seconds. Only in the last 20 25 seconds. 5:08 5 minutes, 8 seconds Yeah. Let 5:21 5 minutes, 21 seconds Sorry to interrupt you, sir, but your voice is a bit muffled. Uh, shall I add you again? Is it? 5:30 5 minutes, 30 seconds Yeah. Is it possible to add a landline uh from there, Candace? Is that possible, please? 5:36 5 minutes, 36 seconds No. I'll call I'll call these guys and I will another uh in in the meantime I will uh uh complete 5:45 5 minutes, 45 seconds my uh discussion and then chairman can come back for his remarks. Yes. 5:51 5 minutes, 51 seconds Okay. Thank you uh chairman. So while we wait uh for the line to get cleared up, I'll provide a little color uh on the 5:59 5 minutes, 59 seconds latest developments especially when it comes to the regulators uh specifically Kaplan steriles uh and also cap steriles 6:08 6 minutes, 8 seconds USA. uh we've had another good quarter of growth um in the US entity uh US 6:15 6 minutes, 15 seconds focused entity rather and uh with the growth in both product revenue and also um uh profit share and milestone 6:22 6 minutes, 22 seconds revenues and it is a good mix of 7525 at the moment with product revenue bringing in 75% and milestone and profit share 6:30 6 minutes, 30 seconds bringing in about 25%. Um this trend has been very consistent in recent quarters and uh there were um a few questions 6:40 6 minutes, 40 seconds that were that were raised by investors themselves when uh we decided to uh take the you know the front end uh route and then launch our own label over there. 6:50 6 minutes, 50 seconds But this goes to show that uh this was a decision in hindsight was a was a good one. Um we have also been receiving 6:58 6 minutes, 58 seconds consistently good uh number of approvals from uh the US and the latest one was a uh a complex suspension injectable 7:06 7 minutes, 6 seconds product name alone that we got an approval within first cycle. Um quite glad to uh share that you know our 7:14 7 minutes, 14 seconds approval timelines are between 14 to 15 months on average compared to industry uh timelines of above 20 months. Uh 7:22 7 minutes, 22 seconds we've also had first cycle approvals for uh um im emulsion injections and emulsion opthalmic products as well. And 7:29 7 minutes, 29 seconds this is not only uh this not only goes to show the pros that we have in R&D and regulatory domain but uh both these 7:38 7 minutes, 38 seconds products that we have had recent approvals for have been launched in the market and has been consistently garnering u uh higher market share 7:45 7 minutes, 45 seconds quarter on quarter. So uh even from a uh productivity and execution standpoint we've been uh uh delivering. Um we also 7:54 7 minutes, 54 seconds have uh another 10 products pending review with FDA and uh we expect these products to come through within the next 8:01 8 minutes, 1 second uh few months. Um so uh we will be close to we'll be having close to around uh 65 8:09 8 minutes, 9 seconds uh AMDs approved uh under Kaplan's name within uh within a short period. Um so with all the new approvals coming 8:17 8 minutes, 17 seconds through obviously it looks like it's going to be a hectic uh next few months uh but in a good way. Um we have also 8:25 8 minutes, 25 seconds acquired around 14 AMDs from outside over the last few uh uh months and uh we 8:33 8 minutes, 33 seconds are actively working on bringing these to uh market sometime in the next year. 8:38 8 minutes, 38 seconds So not only 2026 but 2027 also looks uh uh like it's going to be um an exciting 8:46 8 minutes, 46 seconds year for captain steroids. Um because of all the activity that is happening uh with new products getting approved and launched and also some of the acquired 8:54 8 minutes, 54 seconds products being uh activated. We understood that our wild lines which are line one two and five are going to be uh 9:03 9 minutes, 3 seconds busy over the next few quarters. So strategically from uh um development pipeline what we have done is we've 9:11 9 minutes, 11 seconds started uh focusing more on line three and line six when it comes to scale up and uh submission batch products. Uh 9:19 9 minutes, 19 seconds line three is our octalmic uh line and line six is the latest one that we have uh activated which is a pre-fill syringe 9:26 9 minutes, 26 seconds and cartridge uh product line. Um in the next uh 12 months we expect to uh 9:33 9 minutes, 33 seconds complete at least uh 12 to 13 products uh in this range in the optalic and also prefiltering range. Uh that should come 9:41 9 minutes, 41 seconds uh up for approval sometime by end of next year which gives us good hope that 2028 also is going to be quite uh uh you 9:49 9 minutes, 49 seconds know full of activity when it comes to product launches and uh and and revenue. 9:54 9 minutes, 54 seconds Um in addition to this uh to ensure that we are investing consistently into unique capabilities in the sterile space 10:02 10 minutes, 2 seconds uh we are getting into uh uh the blow fill seal uh seal range of products uh when it uh so we've just placed an order 10:11 10 minutes, 11 seconds um uh with one of the best manufacturers in the world from Europe named Ramlad for this machine. is a state-of-the-art 10:18 10 minutes, 18 seconds completely integrated uh uh machine that is capable of manufacturing products at very high levels of compliance and uh 10:25 10 minutes, 25 seconds speed uh in the blue fill seal seal range. We have taken on around uh uh 14 products uh for development in this 10:33 10 minutes, 33 seconds space and we expect um the first products from this uh line to get approved sometime in uh late 27 uh 28 as 10:43 10 minutes, 43 seconds well. So um the last uh uh range that we are getting into is again in the sterile 10:50 10 minutes, 50 seconds space which is opthalmic uh ointments which is also uh sterile in nature. So once this is done, we will be catering 10:58 10 minutes, 58 seconds to pretty much the complete gamut of all sterile products from uh uh from Kaplan and uh to cater to this significant 11:06 11 minutes, 6 seconds pipeline of uh products that are being developed uh we are fasttracking our in our completion of phase three uh which 11:15 11 minutes, 15 seconds is internally what we call as uh Captain One Labs unit 2 which will uh be housing eventually eight uh product lines of 11:24 11 minutes, 24 seconds which we are going to start by early next year with at least five lines active. Out of the five lines, two are 11:31 11 minutes, 31 seconds already completed. Uh three more will be completed by September to October of uh this year. Um taking into account all of 11:40 11 minutes, 40 seconds this uh growth and development, we knew that you know compliance is something that we need to consistently innovate on 11:47 11 minutes, 47 seconds as well. So uh uh of course chairman will cover that uh in his remarks. But in the midst of this all, we've completed our EUGMP audit and also a 11:56 11 minutes, 56 seconds Saudi uh FDA audit with no critical observations and uh we're happy to inform that you know our uh con 12:04 12 minutes, 4 seconds consistent compliance record uh stretches out even further and it's going to get better. Um uh one word on 12:12 12 minutes, 12 seconds the US label as I said in the beginning uh we are very pleasantly surprised with uh the progress that we are making with 12:19 12 minutes, 19 seconds uh our US label. Uh we are nearly at $10 million in revenue uh since inception last year and um we have been able to do 12:29 12 minutes, 29 seconds this without uh you know slashing costs or we've just been u uh disciplined with uh the strategy of keeping the products 12:37 12 minutes, 37 seconds closest uh to the customer and the general shortages and supply chain efficiency that we are able to uh um uh 12:45 12 minutes, 45 seconds demonstrate is bringing these revenues in. Um uh this is how we have built our Latin American business which is by keeping products closer to the customer 12:54 12 minutes, 54 seconds and um and uh the same thing is continuing on uh in the US as well. Uh for captains and captains USA we expect 13:03 13 minutes, 3 seconds double digit high double digit uh uh revenue growth in the next years uh onwards as well. Uh couple of more 13:11 13 minutes, 11 seconds updates from uh our side is that our Visag API plant which is going to be by and large used for backward integration 13:19 13 minutes, 19 seconds of uh uh filing our own DMFS for our ADAS that are in the market has already 13:25 13 minutes, 25 seconds scaled up three critical u uh uh APIs and we are targeting at least two to 13:31 13 minutes, 31 seconds three more APIs to be scaled up on a monthly basis from this site and expect our first DMF filing from the site by 13:40 13 minutes, 40 seconds end of this year. Um, finally, our oncology injectable uh plant is also uh geared up for exhibit batches which will 13:49 13 minutes, 49 seconds be starting this month. Um, out of all the acquisitions of AMDs that we had done uh four of them oncology injectable 13:57 13 minutes, 57 seconds products as well and we also have an organic pipeline of 12 more products that we are working on. All of that will be uh scaled up for uh submission within 14:06 14 minutes, 6 seconds uh this year. We expect to have the first few products going for approval uh going for filing within the end of this 14:14 14 minutes, 14 seconds year. So um that's basically uh what covers the regulated market side of it. 14:20 14 minutes, 20 seconds Um I will we can check uh if chairman's line is better now it's fine now. Yeah. Yes. Please go ahead. Yes. Yes please. 14:29 14 minutes, 29 seconds Yeah. Good evening once again. Now let me focus on only on the two major steps that we have taken recently. Number one 14:36 14 minutes, 36 seconds is our video SOP is also known as a visual SOP. Acts as a visual hammer to 14:43 14 minutes, 43 seconds replace the verbal cues. Our video SOP will convert invisible execution into inspectable evidence for compliance. In 14:52 14 minutes, 52 seconds farmer manufacturing non-compliance is not a landing failure or a training failure. It's an execution visibility 15:00 15 minutes failure. Pharma factories run on SOPs which is a traditional textbased one. 15:07 15 minutes, 7 seconds Compliance is demonstrated in seconds which leads to issues. Hence Kaplan converts current SOPs into visual 15:15 15 minutes, 15 seconds scripts that shows best practice actions in step-by-step details. We also included regional languages for our 15:24 15 minutes, 24 seconds factory workers. We also have plans to use videos to celebrate the best performing operators as role models. 15:32 15 minutes, 32 seconds Remote control online monitoring tracking of who has done what in the night shifts. It will not only be 15:40 15 minutes, 40 seconds monitored by our own factories but also by our Latin American team where it is daytime. We make we make video viewing mandatory before operating the machine. 15:53 15 minutes, 53 seconds The other advantages of visual SOPs are as follows. Number one, it will help networking with many companies of our 16:02 16 minutes, 2 seconds size for outsourcing of product that we don't manufacture especially from China. 16:08 16 minutes, 8 seconds Number two, the CMOS will get the advantage to view the entire manufacturing of this production of our 16:15 16 minutes, 15 seconds facility online through the video SOP and it help them to it helps them to understand our practices and timelines 16:24 16 minutes, 24 seconds for the delivery. It will also help engineering department to replace the models of FAT, SAT, 16:33 16 minutes, 33 seconds IQ, OQ, PQ which is nothing but factory acceptance, test, site acceptance test, installation qualification, operational qualification, performing qualification. 16:46 16 minutes, 46 seconds The video will help actually the new employees to do the re-qualification, preemptive maintenance and predictive 16:53 16 minutes, 53 seconds maintenance. The guys who do this FAT, SAT, IQ, OQ and PQ, even if they leave 17:00 17 minutes the company, the new guys who enter a factory will use the videos and do the qualification and predictive maintenance. 17:09 17 minutes, 9 seconds We'll also add a government's architecture to our a video SOP in future and we have already filed patent 17:19 17 minutes, 19 seconds for this. In the next two years, we also have 14 to 15 injectable lines as you know well will be up and running and our 17:27 17 minutes, 27 seconds culture will not be in the words of our website but in our facilities. Our people will also follow four 17:35 17 minutes, 35 seconds non-negotiables which are integrity, quality, safety and productivity. 17:42 17 minutes, 42 seconds Now the number two, we recently recruited two S2 senior inspectors of Colombian invima as our executives 17:50 17 minutes, 50 seconds mainly for audit readiness in all our factories. They are doing the mark audit in line with the USFDA guidelines as the 17:59 17 minutes, 59 seconds guidelines of regulatory bodies are almost similar. Our Enco facility and CP1 are expecting the Invima audit in 18:08 18 minutes, 8 seconds April and these professionals will play a vital role in ensuring integrity and quality there is there too. They have 18:16 18 minutes, 16 seconds inspected many biosimilar facilities in China, South Korea and Russia and their contact with these companies will also 18:24 18 minutes, 24 seconds help us actually to find an opportunity for outsourcing. 18:28 18 minutes, 28 seconds We are known as asset light models. We are known for asset light models from China. Now we will go for an asset asset 18:36 18 minutes, 36 seconds light model for the specialtities in places like Korea and also Turkey and Russia too. Biogenetics 18:46 18 minutes, 46 seconds will definitely help us actually to improve our bottom line over a period of time. Hence the video SOP will act as a 18:54 18 minutes, 54 seconds tool for networking with the companies mainly in China and Korea. We also understand that to achieve a goals we 19:03 19 minutes, 3 seconds must change the current version of ourselves and it's not about doing more activities it's all about doing right activities. Hence the two right 19:12 19 minutes, 12 seconds activities are the one that I highlighted now. Thank you. Thank you very much. Thank you chairman. 19:21 19 minutes, 21 seconds Yes. Yes. Fully. 19:23 19 minutes, 23 seconds uh request uh request our CFO to uh uh throw some light on the numbers before we open up uh the floor for questions. 19:34 19 minutes, 34 seconds No, thank you. Thank you. Uh good evening everyone who's taken time off to take part in this call of Captain Point 19:42 19 minutes, 42 seconds Laboratories for the third quarter ending December 31st, 2025. 19:48 19 minutes, 48 seconds Results of the 9 months are really gratifying. The group has achieved good growth across all financial parameters 19:56 19 minutes, 56 seconds and we are happy to say that we have compared ourselves to the peer group ones which have been announced till date and we are in goodstead and we are 20:05 20 minutes, 5 seconds comparatively higher than many of them have reported in terms of profitability and growth. Now coming to the operating 20:12 20 minutes, 12 seconds revenue the revenue grew by 10.6% year on year and total income grew by 11.2% 2% year on year. 9 months revenue is 20:21 20 minutes, 21 seconds close to the entire year revenue of 2023 24 growth in other income of 16.47 47 20:28 20 minutes, 28 seconds crores has primarily come from deployment of incremental cash. As I told in the last meeting also we have a 20:36 20 minutes, 36 seconds mandate of investing at least 300 plus crores year on year. Traditionally more and above what we invested in in the past we kept the mandate is even more 20:44 20 minutes, 44 seconds stringent to invest about 400 plus cr into the instruments of financial instruments 20:51 20 minutes, 51 seconds is has grown only by 9% in spite of the increase in turnover the uh if you see 20:59 20 minutes, 59 seconds the last three years the cods as a percentage of revenue has come down from 43 to 39% which is significant 21:08 21 minutes, 8 seconds growth OPX grew only to 6% below the revenue growth and opex as a percentage of total 21:15 21 minutes, 15 seconds revenue exceeded 24.46% as against 23.67% for the corresponding period and you'll be glad to know the 21:23 21 minutes, 23 seconds come down 27% in 2023 24 to 26 24.46% report in the current year above factors 21:32 21 minutes, 32 seconds whatever I mentioned have resulted in a growth of 17% way above the revenue growth in the margin and it is at 38.5% 21:41 21 minutes, 41 seconds as against 36.5% in the last last year corresponding period capitalization of about 62 crores primarily in PSL has 21:50 21 minutes, 50 seconds absorbed additional depreciation of cr and again grew by about 17.58% from 500 plus 500 close to 589 crores stands at 35.2%. 22:02 22 minutes, 2 seconds And this is happy to say that this is higher than the entire year of 2024 which was 658 cr 22:10 22 minutes, 10 seconds then again is 471 cr higher than the fat of 461 cr achieved in year of 524 22:18 22 minutes, 18 seconds all the above policy factors have resulted in growth of 20.5% in fact stands at 28.3% 22:26 22 minutes, 26 seconds as against 26.3% in the last year it may be pertinent to note that we have been promising around 23% as the target they 22:34 22 minutes, 34 seconds are little about that and coming to the balance sheet network stands at 3338 crores as of December cash and cash 22:42 22 minutes, 42 seconds equivalent is on is at 1,381 crores as again 180 crores after investment of 22:50 22 minutes, 50 seconds about 180 crores in capital PWAP stands at 180 crores majorly accounted by one injection which is 22:59 22 minutes, 59 seconds under final stages of completion and the OS plant which we are setting up near our 23:07 23 minutes, 7 seconds facility in Pand as we have been saying the close to customer it's the winning 23:15 23 minutes, 15 seconds point for Kapling and it stands about 61% including the transit 55% are there in our var and 12% in transit reaching 23:24 23 minutes, 24 seconds anytime now receable stands at 121 days as against 118 days even though we've been promised using 120 as a benchmark 23:33 23 minutes, 33 seconds with slightly more because the last week of the last 10 days of December we couldn't get the emittance too because of Christmas vacation we are abroad but 23:42 23 minutes, 42 seconds that has been more than compensated by the more remittances in the month of January and we hope to get back to the 23:49 23 minutes, 49 seconds level by March or if not June the cash flow from operations standard 368 crores 23:56 23 minutes, 56 seconds as against 284 cr in the previous corresponding period and free cash flow as we said after 180 crores in capex 24:05 24 minutes, 5 seconds trans 9 month period ending uh December 25. Um I think these are the few points which I 24:14 24 minutes, 14 seconds thought brief you those results have been with you for for a while now and we'd be more than glad to take any questions over to Mr. Thank you. 24:24 24 minutes, 24 seconds Thank you uh Mr. So uh we can open up the floor for questions now please. 24:30 24 minutes, 30 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone 24:38 24 minutes, 38 seconds 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 24:47 24 minutes, 47 seconds question. Ladies and gentlemen, we will wait for the moment while the question queue assembles. 24:56 24 minutes, 56 seconds The first question is from the line of CA Gervid Goyel from Serene Alpha. Please go ahead. 25:04 25 minutes, 4 seconds Hello. Yes, please. 25:07 25 minutes, 7 seconds Good evening sir. First question is on onology KPI facility. Uh it is getting further delayed sir. Earlier uh we were 25:14 25 minutes, 14 seconds speaking about Q1 27 and this PP we are uh we have mentioned Q3 27. uh while I understand that we are uh we are doing 25:22 25 minutes, 22 seconds the capex via internal recruits and all uh but s these delays uh are now going beyond the normality uh I'm sure like an 25:29 25 minutes, 29 seconds efficient and experienced capital allocator like you uh this must be in your mind because uh ultimately we have to grow the business so for that we need 25:36 25 minutes, 36 seconds the assets at the right time so what is your view on it sir like uh why are these delays happening on a consistent basis so that's my first question 25:45 25 minutes, 45 seconds okay can I give you the answer to this one Okay, delay yes it happened but in 25:53 25 minutes, 53 seconds the current context what is important actually is not the delay is not totally denied actually it's not a denied 26:00 26 minutes opportunity today it is fully completed and that two when we get into the next level that is for the regulated 26:07 26 minutes, 7 seconds marketers this facility is ready for the USDA actually and you know we are also planning to go for 10 to 12 like 26:15 26 minutes, 15 seconds injectables 30 times in the form of filing and invite the USFD inspector for the audit. Hence what happens 26:24 26 minutes, 24 seconds the you are aware that you know sometimes uh the facility completion it takes its 26:31 26 minutes, 31 seconds own time. It may be because of various reasons. uh the reason one here I would like to say like this the ecosystem in 26:40 26 minutes, 40 seconds actually Tamil Nad has not been extraordinary like uh uh what do you call Hyderabad or 26:48 26 minutes, 48 seconds uh Bangalore or visa or Amedabad or Mumbai hence it also gets deleted that's 26:56 26 minutes, 56 seconds one reason at the same time as you rightly said the money is not borrowed there is nothing in the form of actually interest lost I won't say there's 27:05 27 minutes, 5 seconds Opportunity loss also because sometimes it is for the greater good which is difficult to understand what is not 27:12 27 minutes, 12 seconds obvious many a times actually it will create some tangible opportunities also. Yes please. 27:19 27 minutes, 19 seconds So one other point also one other point also is uh uh the API units are going to 27:26 27 minutes, 26 seconds be only for backward integration but remember that we are not really uh relying on our own API as the first source. this is going to be a second 27:34 27 minutes, 34 seconds source. So, uh even if the API units get delayed by a further two to three quarters also, which will not happen, 27:41 27 minutes, 41 seconds but even if they do happen, it's not going to be materially of any effect to the company because our R&D and our 27:48 27 minutes, 48 seconds filing continues to happen despite it being our own API or from external API. 27:54 27 minutes, 54 seconds Till this point, 100% of all the filings and approvals we received are from external API. So please remember that 28:00 28 minutes this uh uh you know thought process of getting into our own API is strengthening our uh uh supply chain but 28:08 28 minutes, 8 seconds uh by no means it uh is going to have any material impact immediately. Yeah. 28:15 28 minutes, 15 seconds When you say the ecosystem is not extraordinary like what kind of challenges are we facing can you further elaborate that talent whether it is in the form of 28:24 28 minutes, 24 seconds consultancy or in the form of some project heads actually people who come in know they don't stick to it see if 28:31 28 minutes, 31 seconds you want to give me an example see at one point of time you know ours is a turnaround story today we are the number one company in Tamil Nadu there are 28:39 28 minutes, 39 seconds companies which are know 10 12 years ahead of us in fact know they started the company much much earlier to us till 28:46 28 minutes, 46 seconds they not even reach 50% of our sales also and I don't want to mention the name of the company since you asked me I 28:53 28 minutes, 53 seconds have to answer that understood and uh secondly on the growth 29:00 29 minutes part uh first 9 months our sales are up by uh 10 to 11% uh whereas uh which is uh well below uh our last three year 29:09 29 minutes, 9 seconds average of 15% which which we used to use as a benchmark in the recent uh recent calls uh even if I CEO fixed assets uh these 29:17 29 minutes, 17 seconds have doubled in last 2 and a half to three years but our top line is up by only 40 50% against that so so why are 29:25 29 minutes, 25 seconds we slowing growing our top line I agree I agree that uh base has become high but I'm not asking for like we should grow 29:31 29 minutes, 31 seconds 30 35% on this higher base which I uh understand from the earlier phone call earlier interactions as well but not 29:38 29 minutes, 38 seconds even doing uh 20 25% despite having the strong kex and we we earlier speaking about entering into the new markets and 29:45 29 minutes, 45 seconds new uh products approvals that we are getting on the continuous basis. So I'm not able to understand why uh it is taking us like so much time to uh ramp 29:54 29 minutes, 54 seconds up on the assets or the KEX or the efforts that we have made over the last two to three years. 30:01 30 minutes, 1 second Can you answer please question? Yeah, see uh we've been very consistent with uh with our messaging that the next uh 30:09 30 minutes, 9 seconds 18 to 24 months is going to be a uh gestation and a consolidation phase for us, right? So there are multiple things 30:16 30 minutes, 16 seconds that we are working on. Number one, our entry into the larger markets of uh Mexico, Chile, Colombia. Number two, our 30:23 30 minutes, 23 seconds oncology business is still at a very nent stage. And number three, our US uh label and our USB B2B business is 30:31 30 minutes, 31 seconds getting consolidated right now. Now remember we are not in the domestic market where the minute you come up with a product you can directly go and then start making sales right we are all in 30:40 30 minutes, 40 seconds either emerging markets or regulated markets where things take at least 3 to four years for uh some amount of uh 30:47 30 minutes, 47 seconds gaining maturity you know so um we feel that 28th and beyond looks very exciting for the company on all fronts on all 30:54 30 minutes, 54 seconds these fronts that I was talking about which is larger markets of latam USPS and oncology etc. So we need to be a 31:01 31 minutes, 1 second little patient but during this time we've been able to consistently still grow at uh uh you know uh low double 31:09 31 minutes, 9 seconds digits and our US business which is gaining much more traction is showing growth of almost 25 30% also. So we are 31:17 31 minutes, 17 seconds also able to uh put away significant amount of uh uh you know cash into our reserves where we are building up a watch list where if there is even an 31:26 31 minutes, 26 seconds outsized uh you know inorganic opportunity that come through we will not be shy to do that as well. So I don't think we are slowing down by any 31:34 31 minutes, 34 seconds means. I would say that we are consolidating and uh and 2728 and beyond could be something that is uh uh very 31:43 31 minutes, 43 seconds interesting for us all to look forward to. 31:47 31 minutes, 47 seconds Got it sir. And regarding on the margins front uh is there any further scope of improvement in the margins? 31:54 31 minutes, 54 seconds I think we're at a path of 27 28%. I I'm not sure I I'm not sure if there are too many 32:03 32 minutes, 3 seconds peers within this range garbage. So, but I I think of this. Yeah. But regardless of that, I think once uh we start firing 32:12 32 minutes, 12 seconds on this on these newer initiatives that we take up, there is a potential for that to go up as well. I don't deny it. 32:18 32 minutes, 18 seconds But I think at 28% for us to stabilize this and maintain itself would be an excellent achievement. Yeah. Yes, 32:26 32 minutes, 26 seconds understood. So more more probably because margins are at peak and for next 18 months we are speaking about lower double digit sales growth. So bottom 32:35 32 minutes, 35 seconds line should be more or less in line with the uh sales growth only. Is that understanding correct? 32:40 32 minutes, 40 seconds The bottom line will remain uh where it is. I mean look there might be one or two uh percentage points up or down but 32:47 32 minutes, 47 seconds uh the 26 to 29% uh path is something where we are comfortable with and we expect that to continue. 32:56 32 minutes, 56 seconds Thank you very much sir and all the best for Thank you. Thank you. 33:01 33 minutes, 1 second Thank you. The next question is from the line of Ahmed Madha from Unifi Capital. Please go ahead. 33:08 33 minutes, 8 seconds Yeah, thanks for the opportunity. I have three questions. Uh firstly uh the the 33:14 33 minutes, 14 seconds bio we made for few AMDs on the oncology side. If you can give uh some sense uh 33:22 33 minutes, 22 seconds what amount we have paid uh for the ANDDS I think we got secondly what will 33:28 33 minutes, 28 seconds be the timelines uh do the site transfer and the commercialization take and from 33:35 33 minutes, 35 seconds the $473 million uh addressable market size what sort of potential market share uh Kapalene sterile can uh gain. 33:46 33 minutes, 46 seconds Okay. So, uh see some of this information is of confidential uh nature. So, I won't be able to go into 33:53 33 minutes, 53 seconds too much details of it. But, uh what I can uh uh give out is we are very very prudent in how we uh uh spend our cash 34:02 34 minutes, 2 seconds and that includes these acquisition uh targets also. The one clue I can give you is that uh we sort of try and make 34:10 34 minutes, 10 seconds it a point that any acquisition of an ANDA that we do is always equal to or lower than the cost of actually filing 34:17 34 minutes, 17 seconds that and itself. So you may draw your inferences from uh that and in addition to that um the timelines wise what 34:25 34 minutes, 25 seconds happens is we need to uh do the site transfer by way of what we call as a post approval supplement uh a PAS. Now 34:33 34 minutes, 33 seconds we need to run uh at least one batch of that product and then put that in stability for 3 months and then apply for the PAS which is 6 months. So all 34:40 34 minutes, 40 seconds put together uh we expect some of these products to come to market by uh early next year uh late this year or early 34:47 34 minutes, 47 seconds next year. And uh finally when it comes to the market share uh out of the 14 products there are two of them that are 34:54 34 minutes, 54 seconds fairly large in size but they're also extremely uh tricky because they need completely dedicated uh uh lines 35:02 35 minutes, 2 seconds dedicated units etc. We might not be doing that inhouse. We are very actively scoping out uh uh you know contract 35:09 35 minutes, 9 seconds manufacturing companies for that. uh we've narrowed it down to two uh both in Europe and uh we are in uh late stage 35:16 35 minutes, 16 seconds discussions to take transfer to their side. So um in general I think you can always expect the first couple of years 35:23 35 minutes, 23 seconds to have about uh singledigit market share as uh and then when we consolidate and then when we have larger portfolio u 35:31 35 minutes, 31 seconds uh you know of products to offer then that slowly starts inching up towards the double digits in terms of market share. 35:38 35 minutes, 38 seconds Sure. uh that's that's very helpful on the Mexico and Chile business. We have made lot of progress in terms of approvals, building the pipeline, 35:46 35 minutes, 46 seconds getting the uh getting the uh inspection and the plant everything ready. It can give some sense how far are we from 35:55 35 minutes, 55 seconds meaningful topline uh generation from those markets uh and what sort of progress we have made uh in 36:04 36 minutes, 4 seconds terms of commercialization and uh getting the top line ready. 36:09 36 minutes, 9 seconds Yeah, when it comes to uh again Mexico and Chile, I would uh still put the same timelines. Uh at about 18 to 24 months 36:17 36 minutes, 17 seconds is when we can start to see it uh firing on all cylinders. Of course, when it comes to both these markets, uh typically they are a little bit tender 36:26 36 minutes, 26 seconds heavy as well, right? Especially uh Chile. But there again, we are trying to get into the uh private market, which is what the base of our business in Latin 36:35 36 minutes, 35 seconds America is. We've been you know more than 80% of our revenues from LATAM come from the uh private market which is what 36:41 36 minutes, 41 seconds we are trying to uh do the same in um in in Mexico and Chile as well. Chile is a little bit further ahead compared to 36:49 36 minutes, 49 seconds Mexico because we've been in Chile for for some time now but mostly on tenders now we are getting into the private market and the same for uh uh Mexico in 36:57 36 minutes, 57 seconds the in 2026 as well. So I would still say that 18 months is a good timeline for us to see something meaningful on the top line to the parent company. 37:07 37 minutes, 7 seconds Sure. Uh lastly on the P&L uh if you look at the operating cost it has been very stable for last few quarters we 37:15 37 minutes, 15 seconds have made progress in the topline growth gradually. uh I'm just trying to I'm just curious to understand that despite 37:21 37 minutes, 21 seconds the new plants coming in uh the both the plants which got commercialized I think in the last 3 4 months I'm assuming and 37:30 37 minutes, 30 seconds uh topline growing gradually the cost has been broadly steady state uh would you like to help us understand what sort 37:38 37 minutes, 38 seconds of explains that I'm I'm not fully clear on the question 37:45 37 minutes, 45 seconds uh we also will be able I I'll put it different way. If I look at last year, uh the operating cost uh 37:54 37 minutes, 54 seconds which was apart from the employee cost was about 89 crores. Uh this quarter it is about 88 crores and we have grown 38:01 38 minutes, 1 second topline by 10%age. So broadly the cost are similar. We have grown top line by 10%age. While we have also 38:09 38 minutes, 9 seconds commercialized new plants which I'm assuming will have incremental costs coming in with employ hiring and uh 38:15 38 minutes, 15 seconds other uh other initial opics cost. So I'm just curious to understand what explains that the costs have not gone up 38:23 38 minutes, 23 seconds despite topline going up and new plants getting commercialized. 38:30 38 minutes, 30 seconds I think yeah yeah go ahead go ahead. Yeah. 38:36 38 minutes, 36 seconds Yes correct. So couple of years back when we were in the same meeting we were asked for this lower turnover and in return cost he has built the 38:44 38 minutes, 44 seconds infrastructure they built the as the employees have all been recruited for the enhanced capacity. So also as 38:52 38 minutes, 52 seconds mentioned by one of the previous speakers that most of the projects are in the final stages nothing has been put to operation yet. So the initially you 39:01 39 minutes, 1 second capitalize whatever the speed operative expenses are getting capitalized and then the once the products are put on 39:08 39 minutes, 8 seconds products are put on scheme under start commercial we'll see the impact on the um 39:15 39 minutes, 15 seconds topics and as we mentioned the past previously our the 39:22 39 minutes, 22 seconds most and about year back one or back we convert them into The credit 39:29 39 minutes, 29 seconds has also come down 39:37 39 minutes, 37 seconds in the past. Okay. It has now become Sorry to interrupt. 39:50 39 minutes, 50 seconds Uh sir, your voice is a bit muffled. 39:54 39 minutes, 54 seconds Am I audible now here? 39:59 39 minutes, 59 seconds Yeah, it's better now. Yeah, fine. So trying to say that the the 40:10 40 minutes, 10 seconds use students can line is a bit muffled and we can't hear you clearly. 40:23 40 minutes, 23 seconds H yeah you can try again let's see okay so as I was mentioning that the 40:31 40 minutes, 31 seconds infrastructure has been created has been created facilities are created for the enhanced capacity once these projects are put on commercial you will not see 40:39 40 minutes, 39 seconds any big spike in the expenditure as such so the that that one of the reasons why the uh even though the top line is 40:47 40 minutes, 47 seconds growing and operational efficiency is also improved as said the productivity has improved that is also giving a room for a 40:55 40 minutes, 55 seconds percentage as a percentage of revenue the effects is either lower or around the same level. 41:04 41 minutes, 4 seconds Sure. Got it. Thank you so much. 41:09 41 minutes, 9 seconds Thank you. The next question is from the line of Sinja Mittal from MS Capital. Please go ahead. 41:17 41 minutes, 17 seconds Hi. Uh thank you for the opportunity. 41:18 41 minutes, 18 seconds Just one quick question. Uh if Mr. Satya you can help me with a scaven sterile number that would be very helpful. Thank you. 41:28 41 minutes, 28 seconds Yeah sure thank you for the question. Uh for the quarter end December 2025 the bida for uh CSL consolidated is 31.09 crores. 41:39 41 minutes, 39 seconds Okay. Thanks Lord. Thank you. 41:43 41 minutes, 43 seconds Thank you. The next we have a follow-up question from the line of CAVID Goyel from Serene Alpha. Please go ahead. 41:51 41 minutes, 51 seconds Uh hi uh thanks for the followup. Uh sir uh is there any uh further material update on the inotenic acquisitions uh that we are evaluating right now? 42:02 42 minutes, 2 seconds Um nothing nothing to report at this point. Uh please. So if there is something material definitely we will uh 42:09 42 minutes, 9 seconds uh you know we will update as and when necessary but nothing is uh um at very late stages or anything like that at this point. 42:19 42 minutes, 19 seconds Okay. Thank you sir. Thanks. 42:21 42 minutes, 21 seconds Thank you. The next question is from the line of Richa from Equity Masters. Please go ahead. 42:30 42 minutes, 30 seconds Uh thank you for the opportunity sir. Am I audible? Yes. Yes. 42:35 42 minutes, 35 seconds Yeah sir. I wanted to understand like I'm new to the company in the last calls I've gathered that you know you had a thousand cr plan of which half was 42:43 42 minutes, 43 seconds nearing completion and you know other half was expected to happen over two to three years. Part of it is that word indication. If you could give some 42:52 42 minutes, 52 seconds clarity how much has already been incurred, what is the plan for next two years and what kind of asset turn you are expecting over this KX? 43:01 43 minutes, 1 second I request a CFO to take this please. 43:06 43 minutes, 6 seconds Uh could you please repeat the question madam? We were not very audible. 43:10 43 minutes, 10 seconds Yeah. The question is uh out of the thousand crores of capex expansion that we have taken up how much 43:16 43 minutes, 16 seconds how much has uh been spent already and what is expected to be spent in the next two years. Yeah. And the last is asset turn is it? 43:25 43 minutes, 25 seconds Yes. What kind of asset turn are we expecting because there's some backward integration element as well. So 43:32 43 minutes, 32 seconds yeah the we have okay can I can I go this go ahead. Thank you. 43:40 43 minutes, 40 seconds Yeah, please. Yeah. So the what we have capitalized thus far is about 153 crores and 121 crores is in WAP. This is adding 43:48 43 minutes, 48 seconds up to about 280 290 cr and what what we have further advanced about 43:55 43 minutes, 55 seconds 88 what Mr. We make talked about ordering certain four lines. We have advanced already about 88.54 crores. 44:02 44 minutes, 2 seconds About 100 crores 385 crores is already spent. The rest is to be spent in the next over the next uh 12 to 18 months. 44:12 44 minutes, 12 seconds Okay. And asset turns also if you could uh you know give some clarity. 44:17 44 minutes, 17 seconds No asset turns from when these projects get capitalized and start earning revenue. 44:23 44 minutes, 23 seconds Understand? I understand. over 3 to four years I was uh asking that you know because because half some of it is going into backward integration as well so it 44:30 44 minutes, 30 seconds might look very different from your historical turnover. So at maturity in 3 to four years what kind of asset terms do you expect over this capex 44:40 44 minutes, 40 seconds it will be difficult to predict as of now because our asset turnover doesn't directly it's a denominator numerator because as carbon also put it we are 44:48 44 minutes, 48 seconds into asset light model also see working with various CMO CDMOS and whatn not and then that will give me a top line where 44:55 44 minutes, 55 seconds without any contribution from the plants so we are mix and also we are investing heavily into R&D so which would not 45:03 45 minutes, 3 seconds directly give to the commercial operation. So our existing product are the the companies are mix of both asset model R&D heavy and then project based. 45:14 45 minutes, 14 seconds So it will not be lower than what we are today. Okay. 45:19 45 minutes, 19 seconds And also I think uh much of it will depend on the kind of product that we do and the market positioning for those products when they come to market etc. 45:27 45 minutes, 27 seconds So typically for a multi-product uh facility typically for a facility that focuses on I mean for a company that focuses on different kinds of markets 45:36 45 minutes, 36 seconds the asset style is something that is difficult to really pin down. I think it's more if I'm not wrong uh I think it's more applicable to an API industry rather than formulation. 45:46 45 minutes, 46 seconds Okay. Uh and uh so one more thing like u how should we look at the tax rates? Are they going to stay where they are or you 45:54 45 minutes, 54 seconds know in sharp Yeah, again request CFO to uh take this please. 46:00 46 minutes Yeah, tax place we have been telling that about we have some revenues and we are at about 20 21%age. We expect that 46:07 46 minutes, 7 seconds to be around that uh in the coming uh years as well. Okay, thank you so much. 46:16 46 minutes, 16 seconds Thank you. 46:17 46 minutes, 17 seconds Thank you. Anyone who wishes to ask a question may press star and one at this time. We have the next question from the line of Ketan, an individual investor. 46:28 46 minutes, 28 seconds Please go ahead. Yeah. Uh thank you for the opportunity. 46:32 46 minutes, 32 seconds Uh first of all, I'd like to uh place my uh appreciation for the chairman and this entire team for doing a fantastic job. Um uh I've been invested in this 46:40 46 minutes, 40 seconds company for the past um few years and I've seen that in a quarter or quarter you guys are delivering uh revenue growth, margins, cash, everything is 46:49 46 minutes, 49 seconds fantastic. Sometimes I feel it is too good to be a true a story but I mean it is what it is. So really uh my appreciation for the entire team. 46:59 46 minutes, 59 seconds Now uh uh coming coming to my uh query uh my my question is for the 9 months uh is it possible to provide uh the revenues for the Chile market? 47:13 47 minutes, 13 seconds Chile market what is happening there is as has been so told actually by Ve this is a market where I know it's all 47:22 47 minutes, 22 seconds tender heavy like 75 to 80% is tender and 20% is private market and very 47:30 47 minutes, 30 seconds recently we told our guys to actually focus on private market and the first month itself they done some $100,000 47:37 47 minutes, 37 seconds business although it's not huge it's really good actually for a market where you know people focus only on the 47:43 47 minutes, 43 seconds tender. So hopefully the revenues are there but the issue is this market being 47:51 47 minutes, 51 seconds a tender market and then you know the import duties are very high and the payments also from the government it 47:58 47 minutes, 58 seconds comes know little late compared to some of the company some of the countries starting from this month or next month 48:05 48 minutes, 5 seconds we are likely to do around $200 to $300,000 of remittance we we are likely to get it 48:12 48 minutes, 12 seconds from Chile that's what I've been by our people in Chile. Chile takes time but once we complete the OD we have 48:21 48 minutes, 21 seconds completed more of injectable injectable goes only into the institutions private market of course as you know well we 48:28 48 minutes, 28 seconds should sell more of and other products but of course no now only we are submitting some products for institution hopefully in the next one two years we 48:37 48 minutes, 37 seconds will do very well in okay please thank thank Thank you. 48:46 48 minutes, 46 seconds And the uh other query I have is on the US margins. Now uh when I look at your segmental uh figures um uh for the 9 48:54 48 minutes, 54 seconds months you know the figure is about 323 crores for the US market uh revenue and 49:01 49 minutes, 1 second uh the uh profit before tax is 34%. So I just wanted to know that right now the margins look about 10 or percent but um 49:10 49 minutes, 10 seconds going forward uh is this likely to inch up? I mean in terms of the margins uh the for the USA business is it likely to 49:18 49 minutes, 18 seconds go up in the next few quarters and few years. 49:22 49 minutes, 22 seconds Yeah. Coming to business I would like to say something afterwards is it will actually bring the host. 49:29 49 minutes, 29 seconds If you look at actually injectable facilities whether it is in China or US is always big boys game. In two years we 49:37 49 minutes, 37 seconds will be in a position to complete 14 15 lines exporting products to US which is of course you know it's not that easy 49:46 49 minutes, 46 seconds and we'll be one among the four maybe three or four from India and I've also seen companies which are very advanced 49:54 49 minutes, 54 seconds in China in the form of producing biosimilars and lot of biological products hardly one or two companies 50:00 50 minutes concentrate on US market. It is also true compared to other markets this is not that actually lucrative but why you 50:09 50 minutes, 9 seconds will have to get into this market because this is the biggest market in the world. If you can create many lines 50:15 50 minutes, 15 seconds like 14 lines then with the big boys. But what we will do 50:24 50 minutes, 24 seconds is we will have to increase the number of lines to be to tell you honestly that I hustled my way out of the person I 50:33 50 minutes, 33 seconds used to be. I used to be a person in charge of marketing. I didn't know anything about actually manufacturing. I had to play a different role for the 50:41 50 minutes, 41 seconds last three four years. And now I understood actually that we'll be in a position to handle even 13 14 lines also over a period of time once we get into 50:49 50 minutes, 49 seconds that state maybe you know which I spoke in the form of video SOP and other things I'm sure now one more in addition 50:57 50 minutes, 57 seconds to that we are also going for women empowerment most of the women in the rural areas they are totally deprived 51:04 51 minutes, 4 seconds actually and then the economic independence makes all the difference to them and the men in rural areas are 51:11 51 minutes, 11 seconds different from and the woman. So the woman on one side actually very disciplined. They come to work and they do their workout. So only thing we have 51:19 51 minutes, 19 seconds to teach them. We are trying to teach them through video SOPs. Once that happens as I'm 100% sure this market 51:27 51 minutes, 27 seconds especially the US market will start paying us in such a way it has happened to some of the big companies of India. 51:36 51 minutes, 36 seconds Yeah. Uh thanks and uh when it comes to margins uh K how we look at it is see out of this 320 cr of revenues from the 51:44 51 minutes, 44 seconds first nine months um is all from the existing products itself and some of these products are uh what others would 51:52 51 minutes, 52 seconds call a slightly commoditized kind of products you know so despite that we've been able to have a fairly decent ITA uh 52:00 52 minutes number fairly decent pack number but remember all of these acquisitions that uh we have done for the A&S all of this 52:07 52 minutes, 7 seconds uh R&D work that we do everything gets uh uh expensed out we don't capitalize anything so there is a bit of a drag 52:15 52 minutes, 15 seconds because of uh uh the plans that we have for the future um over a period of time especially when some of these newer 52:22 52 minutes, 22 seconds products etc come through you will start to see uh the the bottom line go up in fact even now I think we are comfortable 52:30 52 minutes, 30 seconds with where they are but this will definitely start to go up and 2028 and beyond as chair man said when we have 13 52:37 52 minutes, 37 seconds 14 15 lines uh your expenses start to cap out after a bit and every additional revenue that you have will be a direct 52:44 52 minutes, 44 seconds impact to uh the bottom line positively you know so we'll have to wait it out a little bit we are happy with where it is 52:51 52 minutes, 51 seconds today because we know that um this is in addition to all the drag that we've had in terms of the R&D and uh and and the 52:59 52 minutes, 59 seconds inorganic ones etc so it should only go up from here yeah Thank you. Thank you for the 53:06 53 minutes, 6 seconds responses and once again my my deep appreciation to the entire team at Katherine Point. Uh kudos to you all. 53:12 53 minutes, 12 seconds Keep up the good work. Thank you so much. 53:14 53 minutes, 14 seconds Thank you. Thank you so much. Thank you so much. Thank you. 53:17 53 minutes, 17 seconds Thank you. The next question is from the line of Sachin Casera from Swan Investment Managers. Please go ahead. 53:26 53 minutes, 26 seconds Good evening to the entire team at Kaplan Point. uh as mentioned by the previous participant uh congratulations to the team for the consistent 53:34 53 minutes, 34 seconds performance that we have delivered even in difficult times in the last few years. So uh that that's that's a great job by us. Uh just coming back in terms 53:43 53 minutes, 43 seconds of the uh current opportunity and the growth that we're talking of. So the presentation mentions that Chile will be am the top five markets uh in the next 2 53:52 53 minutes, 52 seconds three years. So can you just quantify give us some sense if not an absolute number? So when you say top five markets are we talking like 10 $15 million type 54:00 54 minutes of revenue some some sense on that when you say in the top five markets for us in the next two to three years 54:06 54 minutes, 6 seconds 10 to$15 million per year definitely it's possible maybe you know we will even actually go beyond that one that is 54:14 54 minutes, 14 seconds for sure if you look at one or two companies who are from India they have been doing a very good business in the form of 1 to 54:21 54 minutes, 21 seconds 1.5 million but again know they all have more of OSB in in the form of like 80 to 90 products whereas we have more of 54:29 54 minutes, 29 seconds injectables. You are aware that you know we manufacture injectables for the US US market and we are also focusing on OSD 54:37 54 minutes, 37 seconds now plus our uh oncology facilities also in the next two months we'll start the commercials we are planning we are also 54:45 54 minutes, 45 seconds doing some uh we think BBS studies for the oncology products which of course we'll submit for registration so we'll 54:53 54 minutes, 53 seconds definitely do well actually in Chile that is for sure it's a question of time before it happens and can you comment little bit about Mexico. We have mentioned about putting 55:02 55 minutes, 2 seconds up a facility also there. So what type of investments are you looking at the Mexico facility and that will be primarily for serving the markets of 55:09 55 minutes, 9 seconds Mexico or will that facility also serve markets other than Mexico? 55:14 55 minutes, 14 seconds Mexico there is an advantage for the local industry. They give 10 to 15% advantage to the local factories for the 55:21 55 minutes, 21 seconds supply of uh tender supply to tender business. That's one of the reason we are keeping this facility there. Second, 55:29 55 minutes, 29 seconds these are the products actually where the transportation cost also is quite high because iron mans and others we may 55:36 55 minutes, 36 seconds even go for low liquid or also there we'll be transporting water from one continent to the that continent 55:44 55 minutes, 44 seconds it's ideal to start a factory in this in this part of the world because the cost of production will not go high because 55:51 55 minutes, 51 seconds of the other factors which I mentioned now second we also get an advantage of supplying to the tenders with the 10 15% 55:59 55 minutes, 59 seconds additional margin and that we always believe in catering to the private market especially to the 56:07 56 minutes, 7 seconds bottom of the pyramid. I'm just waiting for the first inspection to be completed here from the US FDA. After that I'll go 56:14 56 minutes, 14 seconds there to you Mexico and see how exactly the market responds. the initial work I always used to do it after was uh the 56:23 56 minutes, 23 seconds vice chairman who is who happens to be my son used to take over I'm just waiting for that to happen 56:31 56 minutes, 31 seconds but any sense in terms of the type of investment we are looking in Mexico broad range in terms of the capex plan the investment may not be very high for 56:40 56 minutes, 40 seconds months and liquid or it will be in the region of 125 crores it will not be more than that and most of these products 56:47 56 minutes, 47 seconds there is nothing in the form of bioavailability or bio sorry bio and supply availability. So once we complete 56:55 56 minutes, 55 seconds the project we'll be in a position to get into the market immediately. 56:59 56 minutes, 59 seconds Sure. My next question is regarding GLPS. You have mentioned that we are developing our own GLPS and some of them we are doing some sort of a tie with the 57:08 57 minutes, 8 seconds Chinese companies. So next three to four is what is the type of opportunity do we see that can it be like a very meaningful contribution to overall 57:16 57 minutes, 16 seconds revenue and profits in the next are you mentioning about the next 3 four years 57:23 57 minutes, 23 seconds yes we will definitely do well in the next 3 to four years time the kind of investment which you make it is not an 57:32 57 minutes, 32 seconds investment which is very shallow like we are investing in hard assets the assets actually will definitely Please rectify 57:40 57 minutes, 40 seconds over a period of time already you know we have around 50 doses in our CSL and then the next three four years we'll 57:47 57 minutes, 47 seconds have 100 100 plus maybe 125 uh uh and in addition to that we will also go for global doses from that facility and then 57:56 57 minutes, 56 seconds you know we are also in the process of completing uh another facility you know I'm talking of the APIs both API that is 58:04 58 minutes, 4 seconds for captive consumption it will be a vertically integrated company like any other big company. The only difference is most of the big companies their ABA 58:13 58 minutes, 13 seconds volumes are quite high whereas ours is for the captive consumption. But these big companies also they slowly move actually from one area to the next area. 58:23 58 minutes, 23 seconds But the companies of our size they will not get into the space that we hardly few companies. If you look at the invitable companies, most of the 58:31 58 minutes, 31 seconds companies that you see in India either they are big or people who are into CMO business. We are not into CMO business. 58:39 58 minutes, 39 seconds We are like big people. These sorry big companies we are following the footstep of big companies for manufacturing as 58:46 58 minutes, 46 seconds well as know filing the ind filing the dosas also for ind. So we are sure to actually do very well not only in US but 58:55 58 minutes, 55 seconds also in Latin America and rest of the world too. 58:59 58 minutes, 59 seconds Sure. Thank you. But sir my question was more to do with GLPS we have mentioned in the Yeah. Yeah. So when it comes to GLP such 59:09 59 minutes, 9 seconds we are entering into the smaller markets in uh Latin America to begin with and we are doing something very unique which uh 59:17 59 minutes, 17 seconds we will we will uh reveal that as and when uh the right patents and everything are set up but uh at this point I would 59:24 59 minutes, 24 seconds say that it's it's a little bit of an unknown space you know because what happens is the GLPs have been very uh extensively used in the developed 59:33 59 minutes, 33 seconds markets. So in the uh developing markets we are just slowly starting to see some amount of uh uh usage and uh only now I 59:43 59 minutes, 43 seconds think this year uh all the patents and everything except US uh will expire. So we will start to see a little bit uh um 59:50 59 minutes, 50 seconds you know I think that there'll be a little bit more clarity on how these products going to get picked up. Of course in India uh one of them has picked up significantly more than uh the 59:59 59 minutes, 59 seconds other ones and uh the truth is it is moving in a in a different direction in our opinion but again this is a conversation that take a long time. I 1:00:08 1 hour, 8 seconds would say that we would be in the second wave uh of people that uh uh that start to commercialize it not in the first wave. 1:00:16 1 hour, 16 seconds Sure. 1:00:17 1 hour, 17 seconds To be honest with you that might actually work out better for companies like us to be in the second wave rather than the first wave. 1:00:23 1 hour, 23 seconds Sure. uh just one question on capex and also linked to that in terms of our overall insource production. So once we 1:00:31 1 hour, 31 seconds complete this capex of,000 crores u from what I understand right now we have a model whereby we partly manufacture in 1:00:38 1 hour, 38 seconds India and partly we get it outsourced from China. So do you see how do you see that mix uh uh changing is will it 1:00:46 1 hour, 46 seconds remain the way it is right now or in the next 3 years is there going to be a change in terms of the mix between what we produce in India versus what we get 1:00:53 1 hour, 53 seconds it source from China I would like to say a few words on that one if you look at China we will now be able to compete 1:01:01 1 hour, 1 minute, 1 second with them in safosparin and penicellin area and we have been sourcing products of penicellin and safosparine from China 1:01:08 1 hour, 1 minute, 8 seconds and we will continue to source from there if you look at Again bio similar they are much much advanced even GLP 1:01:16 1 hour, 1 minute, 16 seconds products the API at one point of time it was actually $500 some today it has come down to $80. So this is a market where 1:01:25 1 hour, 1 minute, 25 seconds we can chase the economies of scale and some areas we will not be in a position to actually compete with them. It's 1:01:32 1 hour, 1 minute, 32 seconds better to join somebody whom we can't compete with. That's one. Second, how the change will come maybe in five years 1:01:41 1 hour, 1 minute, 41 seconds from now. The most important thing one has to worry about it actually not this one. How the AI will impact the 1:01:47 1 hour, 1 minute, 47 seconds industry. If uh over can replace 100 to 200 people but manufacturing actually in 1:01:55 1 hour, 1 minute, 55 seconds US and the manufacturing in India will be one or the same [clears throat] probably the past twice because Indian 1:02:03 1 hour, 2 minutes, 3 seconds if you do it for India then of course know export mer that's the reason what we are doing now we are slowly you know 1:02:10 1 hour, 2 minutes, 10 seconds trying to also create some facilities in countries where they may allow actually robos without any hesitation so This is 1:02:18 1 hour, 2 minutes, 18 seconds one thing which is the most important one than any other things because we are also thinking of uh fill finish bioimilars. We're also thinking of 1:02:27 1 hour, 2 minutes, 27 seconds various areas where know India is positive India of course India products we are trying to do China products we 1:02:35 1 hour, 2 minutes, 35 seconds are following the asset like model fair to assume that 60 40 which is inhouse versus outsourcing probably 1:02:43 1 hour, 2 minutes, 43 seconds could become like 65 70% inhouse and 30% outsourcing because we are doing almost 1,000 crores capex so that should mean 1:02:51 1 hour, 2 minutes, 51 seconds that going ahead we are able to produce more inhouse than outsourcing. 1:02:55 1 hour, 2 minutes, 55 seconds You're right. You're right. It it'll happen. It'll happen. But again, what we will do is the outsourcing part from China will we don't want to reduce it. 1:03:04 1 hour, 3 minutes, 4 seconds The reason being we are outsourcing from big companies and then we are outsourcing again actually products which cannot be actually manufactured 1:03:12 1 hour, 3 minutes, 12 seconds that cheaper in India coming to a suppose for inland penis and even if you want to go for a biosimilar facility it 1:03:20 1 hour, 3 minutes, 20 seconds is better to test the waters in the form of full finish rather than going for a factory from the scratch. So we will 1:03:27 1 hour, 3 minutes, 27 seconds have some collaboration with the Chinese uh partners and continue to do the business in the form of asset like model. What you said is true the 6040 may even go actually 7030. 1:03:40 1 hour, 3 minutes, 40 seconds And just one last question once we complete this,000 crores capex uh are we going to look at another round of large capex or then for the next two three 1:03:48 1 hour, 3 minutes, 48 seconds years the capex intensity is going to come down. 1:03:51 1 hour, 3 minutes, 51 seconds It's it's see what will happen probably is know we have to think of actually meaningful inorganic growth after that. 1:03:59 1 hour, 3 minutes, 59 seconds This can be in the form of acquiring the products can be in the form of acquiring a distribution company which will help us in the private market. It can be in 1:04:08 1 hour, 4 minutes, 8 seconds the form of some occurring some companies where there will be a value addition for capping point but sure but not too much in terms of 1:04:16 1 hour, 4 minutes, 16 seconds manufacturing manufacturing int manufacturing capacity will go down right I don't think so it will come down it'll go down it will go down 1:04:24 1 hour, 4 minutes, 24 seconds great chairman uh thank you so much and all the best thank you so much 1:04:30 1 hour, 4 minutes, 30 seconds thank you ladies and gentlemen that was the last question I would now like to hand the conference over to the management for the closing comments. 1:04:41 1 hour, 4 minutes, 41 seconds Thank you everyone. Thanks for taking time out to join the call. It was excellent interacting with all of you as usual. We hope to stay in touch with uh each and every one of you. Thank you. 1:04:52 1 hour, 4 minutes, 52 seconds Thanks to all of you. Thank you so much. Thank you. 1:04:54 1 hour, 4 minutes, 54 seconds Thank you to Doat Capital and uh and and your team as well, please. Thank you. 1:05:00 1 hour, 5 minutes On behalf of Dollar Capital Markets Private Limited, that concludes this conference. Thank you for joining us.