Dishman Carbogen Amcis Limited — Q3 FY26

Dishman Carbogen Amcis Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=d8VVO0a0fuE Published: 3 months ago

0:01 1 second Good afternoon ladies and gentlemen. I'm Katigan moderator for the conference call. Welcome to Dishman Carbon Answers 0:08 8 seconds Limited Q3 FY26 conference call. We have with us today from the management Mr. 0:14 14 seconds Hassel Dal global chief financial officer Mr. Paulo Armanino chief operating officer and Mr. Stephen Suchi Chief Executive Officer. 0:27 27 seconds As a reminder, all participants will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:36 36 seconds Should you need assistance during the conference call, please signal an operator by pressing star 10 on a touchstone telephone. Please note this 0:45 45 seconds conference is recorded. I would now like to hand over the floor to Mr. Steven Fui. Thank you and over to you all. 1:00 1 minute Hello everybody. This is Stephan Frier speaking. I'm the CEO of Carbage Answers. 1:06 1 minute, 6 seconds Um I'm happy to also welcome Harin Gal uh our global chief finance officer and 1:13 1 minute, 13 seconds Paulo Amanino our CEO at the Bishman uh facility here in Ahmedabad. Before we go 1:21 1 minute, 21 seconds and dive into the financial numbers, let's look at at the brief update on carbon and amsis business-wise 1:30 1 minute, 30 seconds starting with Sambles here. That's our French subsidiary dealing with drug product. Um then market shows increased 1:38 1 minute, 38 seconds interest in the product c uh drug product capabilities. We got more RFPs, more projects secured um over the past 1:47 1 minute, 47 seconds quarter and we also uh got interest in uh late phase projects, phase two and and so on. 1:57 1 minute, 57 seconds In J substance uh we passed successfully a mock FDA audit at the Bonafas site. This is one 2:05 2 minutes, 5 seconds of the four Swiss sites. Uh that's a preparation inspection for a PI inspection which will be executed sooner 2:14 2 minutes, 14 seconds or later by the FDA uh which is a great success also for this uh little site in Switzerland. 2:22 2 minutes, 22 seconds And among normal APIs also the ADC related molecules with higher uh 2:30 2 minutes, 30 seconds priority status status are uh in our pipeline specifically in oncology uh 2:37 2 minutes, 37 seconds which is uh great news as well. Um and we will report back as soon as we get 2:44 2 minutes, 44 seconds more um information from our customers uh that we can disclose those names. 2:55 2 minutes, 55 seconds What we also have is this uh co-investment expansion project we talked recently uh together with a 3:03 3 minutes, 3 seconds Japanese customer. Uh the project uh is on track. We are now at the detailed 3:09 3 minutes, 9 seconds engineering activities and planning so that we can start soon uh with the construction which has the preliminary 3:18 3 minutes, 18 seconds work has already started but then we go into the detailed uh construction um bigger uh capabilities in Switzerland in our AR and Nuland facility. 3:34 3 minutes, 34 seconds The last business unit we cover here is the specialtity. There we see a strong 3:40 3 minutes, 40 seconds VDA vitamin D and analogs uh sales. Uh this is the the branch and and part of 3:47 3 minutes, 47 seconds the portfolio with high margin. Um so this is uh very satisfying and we are happy about this. the cost reduction 3:56 3 minutes, 56 seconds programs we have initiated we continue um specifically on our cholesterol production that this get that this is 4:05 4 minutes, 5 seconds getting more profitable also we open new sources for our main 4:12 4 minutes, 12 seconds product or starting material in uh our vin and our facility specifically on the wool grease 4:22 4 minutes, 22 seconds coming to the sales activities This as you might remember in the past I always said be close to the market be close to 4:30 4 minutes, 30 seconds the customers. This is a slogan which is still valid and this we support by adding more salespeople. We have hired 4:40 4 minutes, 40 seconds additional salespeople in China and also in the US. 4:46 4 minutes, 46 seconds So the focus is on attraction of new development projects. uh this means early phase but also late phase projects 4:53 4 minutes, 53 seconds because these are feeding our um eventually our commercial pipeline. 5:00 5 minutes Some different initiatives have been started also to tackle big farmers where we are historically also present but we 5:09 5 minutes, 9 seconds want to expand this activities as well um because there is the majority of the the promising um uh blockbuster projects. 5:21 5 minutes, 21 seconds What we have also started over the past months is an initiative on specifically on early projects and there we branded 5:29 5 minutes, 29 seconds this initiative as sprint. The letters S P R I N T stand for smart and efficient, 5:39 5 minutes, 39 seconds proactive and agile, regulatory compliant, innovative science, no compromises on safety and trusted 5:47 5 minutes, 47 seconds partner. This activity brings us even closer and more attractive to our 5:55 5 minutes, 55 seconds clients um to be uh at the very beginning of the value chain on non-GMP 6:02 6 minutes, 2 seconds and early phase activities. Uh there we have started this branding and initiative also by modifying our cost 6:11 6 minutes, 11 seconds base and our working processes. So this is uh promising and we get the first uh 6:19 6 minutes, 19 seconds orders income uh these days and in the upcoming weeks. 6:26 6 minutes, 26 seconds We also reported back the tight collaboration between carbonis and dishman decal. Um this means that we 6:35 6 minutes, 35 seconds widen our portfolio uh in the sense that we can offer big quantities also out of 6:42 6 minutes, 42 seconds Switzerland that we are facing our customers in project management in the 6:49 6 minutes, 49 seconds sales activities so that we also can offer big volumes quantities namely that we do the development in carbagen and 6:58 6 minutes, 58 seconds the production the big production big volumes in India with fishman. 7:05 7 minutes, 5 seconds So there are already multiple big scale projects in collaboration but also specifically with customers in 7:12 7 minutes, 12 seconds discussion and customers are reacting positively to this and we are very confident that this will be a great success. 7:20 7 minutes, 20 seconds The ADC expansion we talked recently um is still under discussion and evaluation 7:27 7 minutes, 27 seconds and we are hoping to get some conclusion here very soon. 7:32 7 minutes, 32 seconds So all in all I perceive the position of Dishman carbage and AMS as very well. We 7:42 7 minutes, 42 seconds conquer and and add new business and we are looking very confidently into the future and very optimistic and positively. 7:54 7 minutes, 54 seconds With this I would like to end here. Uh I thank you for your interest in Dishman Carbage and MCS and I hand over to Harfield Bala. 8:07 8 minutes, 7 seconds Thank you very much Stephan and uh very good afternoon to to everybody. Uh regarding the financial results of the 8:15 8 minutes, 15 seconds quarter ending December 31, 2025. Uh I'm sure you would have had a chance to go through it. uh I'll take you through the 8:23 8 minutes, 23 seconds numbers uh for the quarter and for the 9 months ending December 31 2025. For the quarter ending December 31 uh 2025 8:32 8 minutes, 32 seconds received a revenue of about uh 720 crores as compared to 682 crores in the 8:39 8 minutes, 39 seconds comparable quarter of last year uh which is a growth of about 5 and a half%. uh we actually expected the the revenue to 8:48 8 minutes, 48 seconds be higher by about 20 odd crores in this particular quarter. However, there was a delay in the shipment of of certain 8:56 8 minutes, 56 seconds product uh which has now gone out in January and that the delay was largely on account of uh delay in supply of key 9:05 9 minutes, 5 seconds intermediate as well as because of the holiday season in Europe because of Christmas. However, not to be uh disappointed uh we do expect that the 9:14 9 minutes, 14 seconds the the revenues in the current quarter should be should be higher by that amount than as expected. 9:22 9 minutes, 22 seconds Uh the cost for the for the quarter ending December 3125 stood that close to about uh 20% 9:29 9 minutes, 29 seconds uh as compared to about uh 15% in the in the comparable quarter of last year. Uh 9:36 9 minutes, 36 seconds the increase in the COGS specifically in this quarter was largely on account of higher commercial supplies as compared 9:44 9 minutes, 44 seconds to what we had supplied in the first half of the year where the revenue was uh was predominantly coming from the 9:52 9 minutes, 52 seconds development side. Uh having said that in the current quarter we also had a good amount of development revenue largely 10:01 10 minutes, 1 second coming from the non late phase three molecules uh where obviously from an IBITA perspective the margins are lower 10:09 10 minutes, 9 seconds as compared to the phase 3 work that we do. Uh the employee expenses for the quarter stood at about 355 crores as 10:18 10 minutes, 18 seconds compared to 332 crores in the comparable quarter of last year. uh the 355 crores includes uh certain provisions that were 10:28 10 minutes, 28 seconds made uh on on account of certain sance packages that were getting paid out to certain employees uh at the at the end 10:36 10 minutes, 36 seconds of December plus uh certain social insurance cost provision that was baked into in this particular quarter. 10:44 10 minutes, 44 seconds The other expenses on account of the cost optimization efforts that we are undertaking across the group uh stood at 10:52 10 minutes, 52 seconds about 109 crores as compared to 111 crores in the comparable quarter of last year. Overall all of this translated 11:01 11 minutes, 1 second into a reported of about 113 crores uh which is a margin of about 15.7% 11:09 11 minutes, 9 seconds on the top line. uh the the depreciation and amotization was more or less in line 11:16 11 minutes, 16 seconds with uh what we reported in Q2 and Q1 of the current financial year at about 84 crores. The finance cost uh stood at 11:25 11 minutes, 25 seconds about 45.7 crores. Uh 11:44 11 minutes, 44 seconds Participants kindly stay connected while we connect the management back on the call. 12:06 12 minutes, 6 seconds Okay. Uh I'm sorry for that but I don't know why I got disconnected. Uh so I don't know where I stopped but I explained the depreciation and 12:13 12 minutes, 13 seconds amotization which was at about 84 crores more or less in line with the previous quarter. The finance cost stood at about 12:20 12 minutes, 20 seconds 45.7 crores. Uh in this finance cost of 45.7 crores there was a one-time expense 12:27 12 minutes, 27 seconds of about 11 crores that was booked in this quarter. This was on account of the new syndicated facilities that we 12:34 12 minutes, 34 seconds entered into uh with the with the consortium banks in Switzerland uh where there was a refinancing as well as a 12:44 12 minutes, 44 seconds provision for enhancement of the trans facilities and because of which we had booked that expenditure in this quarter. 12:52 12 minutes, 52 seconds Overall all of this translated into a profit before tax of -10 crores. uh the 12:58 12 minutes, 58 seconds tax stood at about uh 2.5 crores and the profit after tax stood at about -12.97 13:07 13 minutes, 7 seconds crores for the 9 months ending December 3125. 13:11 13 minutes, 11 seconds Uh as far as the revenues are concerned, we reported a growth in revenue of about 4.3%. 13:18 13 minutes, 18 seconds uh what we expect and we are very much on target to achieve that is that by the end of the financial year this growth 13:25 13 minutes, 25 seconds rate should be much higher than what it is reported for the first nine months um more or less in line with what we had 13:33 13 minutes, 33 seconds stated uh in the previous call. The cost uh stood at about 273 13:39 13 minutes, 39 seconds crores which is close to about uh 13 13 and a half% of the revenue. uh the cost 13:47 13 minutes, 47 seconds this year is much lesser as compared to what it was in the in the previous year largely on account of higher 13:55 13 minutes, 55 seconds contribution of the development revenue especially the late phase three molecules the employee expenses stood at 14:02 14 minutes, 2 seconds about 140 crores as compared to 968 crores which is a which is an increase by about 7 and a half%. 14:11 14 minutes, 11 seconds The other expenses stood at 363 crores as compared to 354 crores in the first 9 14:18 14 minutes, 18 seconds months of the last financial year which is an increase by about 2 and a.5%. 14:24 14 minutes, 24 seconds Overall for the first 9 months we stand at an IITA of about 402.68 14:30 14 minutes, 30 seconds crores as compared to 316 crores as reported as on uh for the first nine 14:36 14 minutes, 36 seconds months of December 31 uh 24. This uh this translates into an IITA margin of 14:44 14 minutes, 44 seconds 19.4% uh for the current year as compared to 15.9% in the first 9 months of last year 14:53 14 minutes, 53 seconds which is a growth of about 27.3% uh as reported in the first nine months of this year. The depreciation and 15:01 15 minutes, 1 second amotization uh for the first nine months stood at about 250 crores which is an increase as compared to the last year 15:08 15 minutes, 8 seconds largely on account of uh the operationalization of the manufacturing lines at our French facility and uh more 15:18 15 minutes, 18 seconds or less it will remain at the same run rate as we look into the future. The finance cost stood at about 130 crores 15:25 15 minutes, 25 seconds as compared to 117 crores. We are seeing the borrowing cost for us going down especially at the Swiss entity where now 15:33 15 minutes, 33 seconds the zeron which is the Swiss equivalent libar has has gone down to 0% and our effective interest cost is now between 3 15:43 15 minutes, 43 seconds three and a half%. However because of certain one-time finance cost expenditures that were booked uh the 15:50 15 minutes, 50 seconds finance cost looks higher. However, we should see that in the coming quarters this finance cost should come down. 15:57 15 minutes, 57 seconds All of this translated into a profit before tax of 58.76 crores and a profit after tax of 75.7 16:06 16 minutes, 6 seconds crores after accounting for the droax asset uh largely out of the French facility. So this is a a significant 16:14 16 minutes, 14 seconds improvement in the results for the first nine months of the financial year as compared to the first nine months of the previous financial year. going into the 16:23 16 minutes, 23 seconds segment wise breakup of the revenues and the margin. Uh the CDMO business uh keeps on doing well for us both on the 16:31 16 minutes, 31 seconds development as well as on the commercial manufacturing side. As I mentioned earlier this year we are seeing a huge amount of revenue coming from 16:39 16 minutes, 39 seconds development as compared to commercial and and uh we expect that it would be the same trend in the next financial 16:47 16 minutes, 47 seconds year as well. For the quarter we did a revenue of about 630 crores as compared 16:52 16 minutes, 52 seconds to 590 crores in this segment. Um as compared to the previous financial year quarter which represents a 6.7% growth. 17:03 17 minutes, 3 seconds Uh for the first 9 months uh the revenue stood at about 1,750 crores as compared to 1723 crores uh in 17:13 17 minutes, 13 seconds the first 9 months of the previous financial year. We expect that this uh revenue should grow in the in the Q4 of 17:21 17 minutes, 21 seconds the current financial year and would keep on showing a significant growth as we look into the future. The marketable 17:28 17 minutes, 28 seconds molecule segment uh did a revenue of about 90 crores in the quarter as compared to 92 crores. So more or less 17:35 17 minutes, 35 seconds flattish. Um for the first 9 months uh this figure stood at 330 crores as compared to 271 crores which represents 17:45 17 minutes, 45 seconds a 21 a.5% increase which is largely driven by our vitamin D analogs and cholesterol business. 17:54 17 minutes, 54 seconds From a margin perspective, we did close to about 17% margin on the CDMO side of the business which also includes u uh 18:03 18 minutes, 3 seconds trench facility as compared to 22% in the previous financial year uh where most of the revenues was driven by the 18:11 18 minutes, 11 seconds late phase molecules. In the first nine months of the year, we did an IITA of about 19.7% as compared to 17.2% 2% 18:21 18 minutes, 21 seconds which is an increase of about 250 pips as compared to the first 9 months of the previous year. The marketable molecule 18:28 18 minutes, 28 seconds segment did a 7.2% margin uh largely because there was more of the cholesterol sales that happened in this quarter as compared to the previous 18:37 18 minutes, 37 seconds quarter. Uh however if you see the first 9 months the margins stood at about 17 1.5% as compared to 8.3% 18:46 18 minutes, 46 seconds uh representing a 920 pips increase in the margins on the marketable molecule side. So as we look into the future for 18:54 18 minutes, 54 seconds this particular segment and more specifically cholesterol and vitamin D analogs we would keep on seeing the margin improvements uh where our target 19:02 19 minutes, 2 seconds is to first get to the 20% margin and then take it up to uh 25%. 19:10 19 minutes, 10 seconds Uh so this was some of the financial highlights for the for the quarter and the 9 months ending December 3125. 19:18 19 minutes, 18 seconds Uh with this I would like to hand over the the call to Paulo Armanino our chief operating officer for the ET operations and then we can open the floor for Q&A. 19:31 19 minutes, 31 seconds Uh thank you Arsh and good afternoon to all the shareholders. So I will be brief to now spend time to our investor 19:38 19 minutes, 38 seconds question. uh in the last quarter uh quarters I would say we continue our journey which is currently based on strengthening the relationship with 19:47 19 minutes, 47 seconds carbon analysis on CRA's business apart considating operation at both bubble and mara locations uh as I already mentioned 19:56 19 minutes, 56 seconds from 1 of September earlier already mentioned earlier 1st of September we are having a single point of contact for what concern the cargo carrying sales team Mr. 20:07 20 minutes, 7 seconds chief operating the chief business officer is now leading the dishman group sales teams ac across all the society 20:14 20 minutes, 14 seconds globally India, China, Switzerland, France, UK and Netherlands. Uh this of course is a great advantage for all of 20:22 20 minutes, 22 seconds us. Since it inception we already witnessed several progresses in the overall safety operation. We also 20:29 20 minutes, 29 seconds witnessed a significant improvement of the quality of the CR proposal receiver itself. We had several on visit uh on 20:38 20 minutes, 38 seconds site visit and even the G division with the Japanese customer was performed in November and more are planned for the future quarters. Uh the same structure 20:47 20 minutes, 47 seconds for both vehicle and cargo has been rearranged keeping for count also the operational teams in different country. 20:55 20 minutes, 55 seconds Dedicated technical groups uh with expertise in special technique were deployed to support and assess new proposal received by the same group. 21:05 21 minutes, 5 seconds Additionally uh the organization keep investing in expanding the market intelligence department globally. Uh we 21:13 21 minutes, 13 seconds already witnessed as the market intelligence is substantially supporting the sales activity and just recently we have added an important market 21:22 21 minutes, 22 seconds intelligence resource in India which is uh reporting to the consolidate dishon team in Switzerland. Uh needless to say 21:32 21 minutes, 32 seconds uh that market intelligence enhanced significantly the job of the sales department. Uh market intelligence department which is based out of super 21:40 21 minutes, 40 seconds is also reporting to our CBO practically clinging together market intelligence and sales groups. Uh in two weeks we are 21:49 21 minutes, 49 seconds having once again here in India our CBO and key people to discuss the business strategy for the upcoming quarters. 21:57 21 minutes, 57 seconds Grant's proposal wise we keep receiving several important projects from for Babla including the early importance unit and also including early phase 22:06 22 minutes, 6 seconds projects. We are also very pleased to see an increase in the proposal for Naroda CRS which we consider 22:14 22 minutes, 14 seconds strategically very important for the overall business. And the last note is about our soft formulation plant which 22:22 22 minutes, 22 seconds keep attracting the interest of very many different customer in India and abroad. We want to develop not only generic business but also use Dishman cars as a CBO for the new GR business. 22:35 22 minutes, 35 seconds As a state mentioned earlier uh we are very confident for the future of the company and of the overall Bishma group. 22:43 22 minutes, 43 seconds After said that I hand over the call back to Jim moderator. 22:51 22 minutes, 51 seconds Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. 22:57 22 minutes, 57 seconds If you have a question, please press star and one on a telephone keypad and wait for your turn to ask the question. 23:05 23 minutes, 5 seconds If you would like to withdraw a request, you may do so by pressing star and one again. 23:15 23 minutes, 15 seconds We'll wait for a moment while the question queue assembles. 23:23 23 minutes, 23 seconds The first question from the line of Smith Sha from JHP Securities. Please go ahead. 23:30 23 minutes, 30 seconds Yeah. Hi. Uh can you shed some light on one new molecule which we have commercialized this quarter like in terms of the molecule size if any and 23:39 23 minutes, 39 seconds from which facility are we supplying this? 23:45 23 minutes, 45 seconds Hi hi. Yeah. So this uh is uh for uh leukemia. uh we will not be able to 23:53 23 minutes, 53 seconds mention the name of the customer at this point and uh right now uh I mean it was developed at the Swiss site and uh it 24:02 24 minutes, 2 seconds would be supplied from the Swiss side right now. 24:06 24 minutes, 6 seconds The market opportunity yeah could be could be quite significant uh it could be uh possibly a blockbuster drug. 24:16 24 minutes, 16 seconds Okay. Okay. But do we have any plans to get the commercial batch to the Babla site? 24:23 24 minutes, 23 seconds Well, we would we we would have to discuss with the customers uh with the customer you know based upon the projections what they are giving year 24:32 24 minutes, 32 seconds over year and uh then at appropriate time you know we can think about tech transfer or something of that sort depending upon the volumes. 24:42 24 minutes, 42 seconds Okay. Okay. Got it. And uh can you tell us what would be the revenues in 9 month FI26 from the Babla site and after the 24:51 24 minutes, 51 seconds current quarter results do we still stick to our revenue guidance of 250 to 290 cr for FI26 from the Babla site? 25:01 25 minutes, 1 second Yeah. So for for the first 9 months uh the total revenue was about uh 150 odd 25:08 25 minutes, 8 seconds crores and uh we do expect that there should be higher revenues coming in Q4 25:14 25 minutes, 14 seconds as compared to Q3. Um but yeah I mean the the the bigger growth would largely be seen in financial year 27 but yeah it 25:24 25 minutes, 24 seconds should be closer to about uh 250 crores by the by the end of the financial year. 25:32 25 minutes, 32 seconds Okay, got it. And uh can you also shed some light on the integration that you've been talking about between Carbon 25:39 25 minutes, 39 seconds uh entity and Dishman NTD which is the Indian uh facilities. Uh more in terms of the numbers like how many clients 25:46 25 minutes, 46 seconds have already visited the facility? How many molecules do we expect to commercialize in FI27 which will lead to the ramp up and how much of these 25:55 25 minutes, 55 seconds molecules will be uh an NCE and uh yeah 26:02 26 minutes, 2 seconds sure uh Paulo you want to take that uh we are we are seeing we had several 26:12 26 minutes, 12 seconds visit in the last uh six months uh we are working uh uh very closely with the carbon and face people. So we just 26:20 26 minutes, 20 seconds started now phase two. So as I mentioned also when we started working also in the early phases not only in commercial. So 26:29 26 minutes, 29 seconds I would say in the last month we had four site clients already coming and we are seeing we already have coming other 26:36 26 minutes, 36 seconds client coming in the next in the next quarters. So it's just a a trend which keep growing. 26:47 26 minutes, 47 seconds Okay. Okay. Got it. And uh one last question after which I'll get back in the queue. What are the AIDA margins for development activities like phase two 26:56 26 minutes, 56 seconds and phase three and that of commercial molecules? Just a broad range would also help. 27:03 27 minutes, 3 seconds Well, a broad range would be in phase three is where we make our highest marches. Uh so you we're talking about upwards of 30%. uh the early phase would 27:12 27 minutes, 12 seconds be close to 12 to 15% and commercial you know if done in Switzerland uh would be close to about 25%. 27:21 27 minutes, 21 seconds Uh obviously the in India is where we are now focusing on doing more of the commercial work and uh in India if you 27:30 27 minutes, 30 seconds talk about the commercial work that would be close to about 35 to 40% at a minimum. 27:40 27 minutes, 40 seconds Okay. Okay. Got it. Thank you so much and best of luck. I'll get back in the queue. Thank you sir. 27:46 27 minutes, 46 seconds Thank you. Next question comes from the line of Yash Tana from I. TMS. Please go ahead. 27:55 27 minutes, 55 seconds Yeah. Uh hi team. Am I audible? Yes sir. 28:01 28 minutes, 1 second Yeah. So uh I have two questions I think. U so the first one is on India. 28:05 28 minutes, 5 seconds uh I think we've submitted uh we've been saying that you have submitted significant amount of RFPs to ramp up uh the India operations. uh so looking at 28:13 28 minutes, 13 seconds the current pipeline and the uh RFPs submitted what is the visibility that you have uh at least for the next one year and uh also maybe the next one two 28:23 28 minutes, 23 seconds years also let's say if you submit RFPs of 100 what is the conversion typically for you and uh also if you can share the amount of RFP submitted already. 28:36 28 minutes, 36 seconds Sure. So uh you know right now banking upon the strong relationship that carogen has with many of the customer we 28:45 28 minutes, 45 seconds have given out a lot of RFPs uh from the India side and uh in terms of value you 28:53 28 minutes, 53 seconds know this would be uh close to about uh 1 1200 crores uh worth of RFPs that have been given out uh we expect that at 29:01 29 minutes, 1 second least uh 30 35% of this should get converted into orders um and uh and and 29:10 29 minutes, 10 seconds that gives us the the confidence and and this is an ongoing thing. So there are more and more RFDs that are that are going out to the customers. So we do 29:18 29 minutes, 18 seconds expect a significant ramp up as far as the India assets are concerned because now that uh you know the capacity is 29:26 29 minutes, 26 seconds already created it is all about filling up these capacities with this new RFP. 29:32 29 minutes, 32 seconds So these are the ones uh which we have given out uh based upon the relationship uh or that caros and carries with the 29:40 29 minutes, 40 seconds customers plus certain new customers as well and uh then we already have the base load in India which should which we 29:48 29 minutes, 48 seconds expect should also continue. So overall we our first target is to get to uh 500 crores of revenue which should happen in 29:57 29 minutes, 57 seconds the next uh 12 to 18 months is what our expectation is and uh then the next target is to get to 800 crores of 30:05 30 minutes, 5 seconds revenue coming out of India sites so that we have a clear uh path as far as the next uh 3 to 5 years are concerned 30:13 30 minutes, 13 seconds uh where we want to take the India business to. 30:17 30 minutes, 17 seconds Got it. Got it. And this 30 to 35% uh just to follow up is uh has to be supplied in the next uh 12 to 18 months 30:25 30 minutes, 25 seconds is what you said the incremental RFPs well these are RFPs uh you know some of them have already gotten converted into 30:34 30 minutes, 34 seconds orders some of them are in the process of uh so you know once they get converted into orders you know you have 30:41 30 minutes, 41 seconds to give more or less say four to five months for the entire manufacturing process and then they get supplied. So, 30:48 30 minutes, 48 seconds so yes, I mean overall what we expect at what point these RFPs some of these RFPs will get converted into orders. Uh you 30:56 30 minutes, 56 seconds know, we would not have a control on that because much of it is also dependent on the customer. But uh you know we should get a fair amount of 31:04 31 minutes, 4 seconds visibility I would say in the next 6 months time. 31:08 31 minutes, 8 seconds All right. So got it. Uh my second question uh was related to a molecule uh that we supply. Uh so uh one of like uh 31:18 31 minutes, 18 seconds the partner uh of the molecule that you supply to has received uh you know additional indication approvals for 31:27 31 minutes, 27 seconds firstline uh metastatic breast cancer and also a breakthrough therapy designation 31:33 31 minutes, 33 seconds for uh postneogen therapy uh for breast cancer. So if you can explain each of 31:39 31 minutes, 39 seconds these uh like uh indications separately and the impact on our commercial volumes that we will have in the next few years 31:47 31 minutes, 47 seconds uh because in our understanding uh these additional indications expand the patient pool significantly. 31:55 31 minutes, 55 seconds Absolutely and uh based upon the uh the the projections that we have seen uh you know not just from the analyst but also 32:03 32 minutes, 3 seconds as quoted by the by the management of the of the customer you know the volume seemed to keep on increasing and that 32:12 32 minutes, 12 seconds was also one of the reason why we entered into a second round of co-investment earlier this year uh with 32:19 32 minutes, 19 seconds the customer. So uh yeah we do expect a significant ramp up as far as the the uh 32:26 32 minutes, 26 seconds the linker payload supplies from our site are concerned and uh uh you know the payload would keep on changing 32:34 32 minutes, 34 seconds depending upon uh the end product but uh as far as the linker is concerned it it it remains the same. So this is 32:42 32 minutes, 42 seconds something that we would keep on supplying to the customer uh into the future as well and we do expect that the volume should ramp up over the next uh 3 32:51 32 minutes, 51 seconds to 5 years time. But Stefan, maybe if you want to add something. 33:00 33 minutes Yeah, absolutely. Um I'm full agreement with with you, Harsh. Um the current um 33:06 33 minutes, 6 seconds capacity we have is is um based on the first forecast the client came to us with and as soon as he re the customer 33:15 33 minutes, 15 seconds realized that he got more indications where which were successfully um 33:22 33 minutes, 22 seconds tackled. uh he also came to us and asked for for bigger capacities and and as we 33:28 33 minutes, 28 seconds uh were that time currently uh limited in capacity. We agreed the joint v uh joint investment um and now we get the 33:37 33 minutes, 37 seconds second round. Again I can repeat that we are on track and we should be finished in about one and a half years. 33:47 33 minutes, 47 seconds Got it. Got it. That's helpful. And uh sir if you can share a few numbers uh around this uh uh molecule uh or uh this 33:57 33 minutes, 57 seconds therapy indication has and how much uh revenue are we currently doing and uh what is the expectation uh in the next uh let's say uh 3 to four years. 34:11 34 minutes, 11 seconds Well, for the last financial year, uh we supplied roughly about uh 22 million Swiss Franks worth of uh material to the 34:19 34 minutes, 19 seconds customer. Uh this year we expect it could be about uh 30 million and uh for the next year it could be closer to 34:28 34 minutes, 28 seconds about uh 40 million and then it would just keep on increasing. But you know just to take a fair estimate uh you know 34:36 34 minutes, 36 seconds you can assume close to about 1 to 1.1x as the revenue that can be generated on the second round of co-investment which 34:45 34 minutes, 45 seconds will be which is for 25 million Swiss Frank. So that should contribute close to about uh 30 million of incremental revenue. 34:55 34 minutes, 55 seconds Got it. Got it. And this 30 or 40 million that you're saying uh that wouldn't actually include the newer capacity because that is anyway coming after one and a half years. Am I right? 35:07 35 minutes, 7 seconds Absolutely. That's correct. 35:10 35 minutes, 10 seconds Got it. Got it. All right sir. I have more questions. I'll jump back in the queue. Thank you. 35:18 35 minutes, 18 seconds Thank you ladies and gentlemen. If you have a question please press star and one on your telephone keypad. 35:28 35 minutes, 28 seconds I repeat ladies and gentlemen if you have a question please press star and one on a telephone keypad. 35:38 35 minutes, 38 seconds Next question comes from the line of Ankit Gupta from Bamboo Capital. Please go ahead. 35:45 35 minutes, 45 seconds Uh thanks for the opportunities on the India business side. you know Paulo you and Hel if you can talk about we had 35:52 35 minutes, 52 seconds submitted some of the RFPs uh for which you know we were expecting uh approvals from the customer and this were expected 36:01 36 minutes, 1 second to be you know pretty big given our Indian operations and we were expecting the customer to you know come back with 36:08 36 minutes, 8 seconds the order in uh Jan this year so any updates on that and I'm talking about the you know uh uh like uh the customer 36:18 36 minutes, 18 seconds the Japanese customer, the the Swiss customer whom for whom we supplied for Japanese and the Chinese market and they 36:26 36 minutes, 26 seconds we were in discussions with some uh intermediate which was expected to be pretty big, 36:34 36 minutes, 34 seconds right? So uh so for one Japanese customer not not the same one that the that the entity is supplying to well it 36:42 36 minutes, 42 seconds is also supplying another uh intermediate to that particular Japanese customer for India uh you know we 36:49 36 minutes, 49 seconds already have uh have the the KSM that we are already supplying to that Japanese customer. uh what we have given out a 36:59 36 minutes, 59 seconds code for is the final API as well. uh for which and it is not just for the 37:06 37 minutes, 6 seconds Japanese market but we have also given that out for the for the Chinese uh customer as well and uh we expect uh so 37:17 37 minutes, 17 seconds you know the preliminary feedback was that they were okay with the with the price that we had given but the final confirmation that we should receive uh 37:26 37 minutes, 26 seconds should be most likely in April or in May. So that is the sense that we have received from the from the customer. 37:34 37 minutes, 34 seconds Sure. Sure. Sure. And on the Indian operation side know we this year has been uh uh pretty you know challenging 37:43 37 minutes, 43 seconds for us in terms of revenue and the margins because of the operating leverage have also declined significantly. given you know like 37:52 37 minutes, 52 seconds although you have spoken about the ramp up which will happen uh next year and so how like all this 1300 K RFP that we 38:02 38 minutes, 2 seconds have submitted and that we have bid for uh for the Indian operations uh for some of the big molecules if you can talk 38:09 38 minutes, 9 seconds about the timelines when we expect customers to get back to us if you can elaborate on that and uh how will that 38:17 38 minutes, 17 seconds impact our uh numbers for FI27 for the standalone business 38:24 38 minutes, 24 seconds right so in in terms of the timelines uh you know what I can say is that you know as I mentioned earlier you will have to 38:31 38 minutes, 31 seconds give it uh roughly about uh 6 months in order to get a you know from commitment from the customer having said that even 38:40 38 minutes, 40 seconds within this 6 months there would be I mean we are expecting uh some of the RFPs to get converted into orders uh but 38:48 38 minutes, 48 seconds uh you know within a period of 6 months we should get a very good visibility on conversion of many of these directives 38:55 38 minutes, 55 seconds into orders. Uh part of which will be supplied in the next financial year and then going into the future because in 39:02 39 minutes, 2 seconds our business you know these are mostly like long-term contracts that we enter into with the customer. So it is just this initial 39:10 39 minutes, 10 seconds uh I would say peing phase where we have to put in the extra efforts because once you know we have the customer on board uh more or less we remain their partners 39:19 39 minutes, 19 seconds throughout the life cycle of the molecule. 39:22 39 minutes, 22 seconds So but in that case if you're expecting majority of the RFPs to get finalized in the coming 6 months then you'll also do 39:31 39 minutes, 31 seconds you know uh trials and you know validation batches from an existing facility. So the significant delta for 39:38 39 minutes, 38 seconds this RFP should only come in FI28 and not FI27. Is that correct understanding? 39:45 39 minutes, 45 seconds Yeah. So so uh you know there would be a part impact that should come in FI27 but uh the major part of it should be in 39:53 39 minutes, 53 seconds FI28. So that's the reason you know what we are saying is that the first target is to get to the to the 500 cr which 40:02 40 minutes, 2 seconds should happen uh most likely by the end of the next financial year or it might spill over a little bit in the year 40:08 40 minutes, 8 seconds after that but uh the year after that it should be much higher than the than the 500 crores of revenue target because 40:16 40 minutes, 16 seconds many of these RFTs would have gotten converted into orers. 40:21 40 minutes, 21 seconds Sure. Yeah. Yeah. I I can add I can add one thing also. Uh certain amount of 40:27 40 minutes, 27 seconds yeah certain amount of RFP uh we are uh discussing in this moment with the customer are for commercial production 40:35 40 minutes, 35 seconds direct. So there are several RFP which are going from early phases and the validation but there are also a certain 40:43 40 minutes, 43 seconds amount of RFP which can go directly to commercial phase. So this could could contribute already significantly uh in 40:52 40 minutes, 52 seconds the the current financial year. So we are discussing also RSP which require commercial directly. 41:00 41 minutes So sure and uh you know uh on the ADC front if you can talk about you know there are other drugs of our uh major customer there which are in phase three. 41:12 41 minutes, 12 seconds So any you know uh visibility on that front and uh you know any uh commercial 41:19 41 minutes, 19 seconds orders or visibility that the client has given given to us for the suppliers. 41:27 41 minutes, 27 seconds Well, for uh for for the Japanese customers that we uh that that we currently have on the ADC side, uh yes, 41:35 41 minutes, 35 seconds I mean there are other indications. Uh somebody also asked uh earlier uh because you know some of the indications have have received the first line 41:44 41 minutes, 44 seconds treatment approval. Uh you know yesterday it was announced that the molecule has received priority approval 41:51 41 minutes, 51 seconds for another indication. So no I'm talking about new other molecules other molecules for this existing you know 41:59 41 minutes, 59 seconds other than that there are some other than this yeah we are working on other ADC molecules as well uh including one in phase three and then there are 42:07 42 minutes, 7 seconds other molecules in the earlier phases as well. So all of them are progressing right now quite well. At what point uh 42:15 42 minutes, 15 seconds you know even the phase three molecule goes commercial you know that is not yet known but we expect maybe in the next uh 42:22 42 minutes, 22 seconds 12 months uh 12 to 18 months it should get commercial so which should uh which should again be you know what we are 42:30 42 minutes, 30 seconds expecting or what the customer is expecting would be again a blockbuster truck. 42:34 42 minutes, 34 seconds Sure. So just last question from my side you know on the uh on the French subsidiary side if you can you know tell 42:42 42 minutes, 42 seconds us how much has been the revenue for the quarter for the uh 9 months and how how have been the losses here and how do you 42:51 42 minutes, 51 seconds expect the performance to improve going forward and there were some challenges on the raw material side from the customers end so have they been sorted 42:59 42 minutes, 59 seconds out and uh your view your outlook for next year on Sure. 43:05 43 minutes, 5 seconds So on the front subsequently you know as Stefan mentioned in his opening remarks you know we are seeing a lot of interest 43:12 43 minutes, 12 seconds for that particular site uh lot of uh orders that have already been booked and there are several in the pipeline. So 43:19 43 minutes, 19 seconds what we are expecting is that in the next financial year we should be breaking even in that particular facility 43:27 43 minutes, 27 seconds uh with uh with both the manufacturing lines. So that's uh that that's a visibility that we have right now for the current financial year. In the first 43:36 43 minutes, 36 seconds nine months uh we did a revenue of about uh 7 million euros and we should end the 43:43 43 minutes, 43 seconds year with close to about 9.5 to€10 million euros of revenue. Uh which is a bit lower than what we were expecting 43:51 43 minutes, 51 seconds but the the single most reason for this is because of the delay supplies of 43:57 43 minutes, 57 seconds certain drug substance. uh that was supposed to come from uh from the suppliers bank which is now going to 44:05 44 minutes, 5 seconds come only at the end of Q4 of the current financial year. So all of that revenue should come in the next financial year. But overall from a 44:14 44 minutes, 14 seconds business perspective you know after receipt of the ANSM approval you know we are seeing a huge amount of uh inquiries 44:24 44 minutes, 24 seconds lot of uh inquiries getting converted into orders. uh earlier the the customers who had apprehension coming to 44:32 44 minutes, 32 seconds this particular site you know we we are seeing a lot of activity happening over there. 44:37 44 minutes, 37 seconds Stephanie do you want to add something more? 44:40 44 minutes, 40 seconds Yes thank you. Um what I would like also to mention is this um the synergy effect what we have between drug substance and 44:48 44 minutes, 48 seconds drug product. So the the package what we can offer is is attractive to clients and due to this uh 44:56 44 minutes, 56 seconds presence of both um portfolio products elements drug substance and drug product we got an increased number of customers 45:06 45 minutes, 6 seconds being interested in the combination of both and since we have the collaboration agreement with uh the the the other 45:14 45 minutes, 14 seconds Swiss company Salonic which is working on antibodies uh we have given a certain dimension and and this is an increased 45:23 45 minutes, 23 seconds uh interest um uh on the market that we can offer uh the whole portfolio from 45:31 45 minutes, 31 seconds antibodies to the drug linker um phos and conjugation and then the drug product uh formulation. Um there we have 45:41 45 minutes, 41 seconds significant projects in the quotation phase. Of course again I cannot disclose but once uh this has been finished uh the 45:50 45 minutes, 50 seconds negotiation uh successfully hopefully uh then we can disclose also this and and tell a bit more details. 46:00 46 minutes So what what revenues do you expect for FI27 from the French sub3? 46:08 46 minutes, 8 seconds So that should be closer to about uh 18 million. 46:12 46 minutes, 12 seconds Okay. And that should help us at least breaking even at the level. Yes. Yes. Absolutely. Okay. Thank you, N. 46:20 46 minutes, 20 seconds Thank you. Thank you. 46:23 46 minutes, 23 seconds Thank you. The next question comes from the line of Wata Paravala. Please go ahead. 46:35 46 minutes, 35 seconds One is what is the size of order pipeline that we have a Japanese customer from the over next two years 46:43 46 minutes, 43 seconds and uh considering that they have multiple indications and multiple ADC molecules and uh as a dishman is going 46:52 46 minutes, 52 seconds to be a primary supplier for this payload and linker how you are going to plan the secure this supply pipeline. 47:02 47 minutes, 2 seconds Yeah. So, uh you know we as I mentioned earlier uh we have a fair visibility on the revenues coming from this particular 47:10 47 minutes, 10 seconds customer over the next uh at least for the next three years. uh and that is the reason you know why we are doing the co-investment along with the customer 47:19 47 minutes, 19 seconds and that should allow us to ramp up the revenue significantly once the supplies from the from the second co-investments 47:27 47 minutes, 27 seconds also start so uh so yes I mean we would be the primary suppliers of the of the 47:34 47 minutes, 34 seconds payload and the linker to the customer the customer I mean we don't do the conjugation uh right now uh because the 47:41 47 minutes, 41 seconds customer does it by by by itself health is what I'm understanding is. Uh but yeah, I mean we we haven't seen any any 47:51 47 minutes, 51 seconds uh negative news from the customer. Uh you know, everything looks very much on track including the establishment of the 47:59 47 minutes, 59 seconds of the new site in term uh sorry your second question in 48:06 48 minutes, 6 seconds terms of securing the uh the supply chain and so what 48:14 48 minutes, 14 seconds Sorry. So being that we are going to supply more than five to seven ADC molecules. Uh so how we are going to secure our supply pipeline? 48:25 48 minutes, 25 seconds Well our supply pipeline. So we also manufactured the the the key starting materials as well as the intermediates 48:33 48 minutes, 33 seconds for this uh final API or the linker and the payload that we supply to the customer except for one intermediate 48:41 48 minutes, 41 seconds which is currently sourced uh from another company. Apart from that if you see right now uh this particular 48:48 48 minutes, 48 seconds molecule is uh manufactured in Shanghai uh as far as the KSM is concerned KSM/in 48:56 48 minutes, 56 seconds intermediate also in Manchester in noand in Ara as well as in Bondor. So there 49:03 49 minutes, 3 seconds are multiple sites across the group that are involved in in manufacturing this uh payload and link for the customer. 49:15 49 minutes, 15 seconds And you know again the quantities are not huge you know here we're talking about small quantities but high value. 49:26 49 minutes, 26 seconds Yeah. Yep. So although my second question is I'm very sorry to interrupt you. Could you please join back with you? 49:33 49 minutes, 33 seconds Yep. 49:35 49 minutes, 35 seconds Thank you. Next question comes from the line of Gunit Singh from Counter Cyclical Investment PMS. Please go ahead. 49:43 49 minutes, 43 seconds Hi sir. Uh my first question would be regarding our current uh capacity and uh the utilization. So what is our capacity 49:51 49 minutes, 51 seconds utilization on a consolidated level and what is the maximum revenue potential from current capacity? 50:00 50 minutes Sure. So uh the capacity utilization varies across all of our sites. So for example the Swiss site is operating at 50:07 50 minutes, 7 seconds roughly about uh 75% capacity. Uh the the Frank site has just started operations last year. So that's at 50:16 50 minutes, 16 seconds roughly about 20%. Uh the Netherlands facility is at about uh 60%. Uh 50:24 50 minutes, 24 seconds Manchester at about uh 75%, Shangai at about 50%. 50:30 50 minutes, 30 seconds Um uh apart from that, India which is at about uh 20 to 25%. 50:37 50 minutes, 37 seconds So this is more or less the the utilization across all of our sites. So as far as the the the commercial manufacturing work is concerned. Uh we 50:46 50 minutes, 46 seconds do not have any capacity constraints right now so to say because we we try to utilize the India sites as much as 50:53 50 minutes, 53 seconds possible. Um as far as the development work is concerned, you know, we are trying to aim for more and more of the 51:00 51 minutes early phase development work and those are the efforts that uh Stephan also mentioned in his opening remarks uh in 51:08 51 minutes, 8 seconds order to get more of the early phase development work and uh we keep on ramping up the operations out of the 51:14 51 minutes, 14 seconds French facility. So that's the strategy plus in China we have uh now received the local FDA certification 51:22 51 minutes, 22 seconds uh based which we have also hired uh a new salesperson in China in order to target the pharmaceutical market in 51:31 51 minutes, 31 seconds China so that the Shangai facility can then start manufacturing and selling into the into the Chinese market. So 51:39 51 minutes, 39 seconds that will help us to ramp up the utilization out of the China side as well. 51:45 51 minutes, 45 seconds Go ahead sir. So basically in FY 2019 uh we were doing about uh 210 crores of 51:52 51 minutes, 52 seconds that and about 2,000 crores of revenues when our uh block of plant and uh uh uh 52:00 52 minutes building was about 2,000 cr and now it has almost doubled uh over the previous six years but our revenues have not even 52:09 52 minutes, 9 seconds increased at the rate of inflation and uh we are pack we haven't been able to 52:16 52 minutes, 16 seconds achieve uh the margins in the part we did in FY19. So I would like to understand uh the asset turn for the 52:23 52 minutes, 23 seconds additional uh say 2,000 cr over the previous six years have been even less than.3 52:30 52 minutes, 30 seconds so I mean was it misallocation of funds or uh is it so such that we added 52:37 52 minutes, 37 seconds capacity but uh there is no demand in the market or we are facing some problems uh in ramping up our 52:45 52 minutes, 45 seconds facilities. So what is the main reason or what is your take on this and u yeah that's I'll ask you 52:54 52 minutes, 54 seconds yeah yeah so there are like three or four factors so first of all the right way to look at our uh you know our 53:00 53 minutes assets would be after taking out uh the the the multi-year depreciation of the rupee against the foreign currency 53:09 53 minutes, 9 seconds because you know that all of our assets get restated at the closing exchange rate you know which actually blows up the overall all fixed asset base. So 53:18 53 minutes, 18 seconds right now you know there is almost an effect of almost uh 1,000 crores plus uh sitting as part of the gross plot just 53:25 53 minutes, 25 seconds on account of the foreign exchange fluctuation. That's number one. Number two is that you know there is a huge amount of uh goodwill which is also 53:34 53 minutes, 34 seconds sitting in the balance sheet which is a completely non-cash item which needs to be discounted in order to look at the 53:41 53 minutes, 41 seconds fixed assets objectively. Thirdly, the investments which have okay so uh 53:48 53 minutes, 48 seconds okay no I'm just uh mentioning all the factors as far as the overall block is concerned. Thirdly if you see the capacity additions which have been done 53:57 53 minutes, 57 seconds you know one is the French facility where the total investment was close to about uh 50 million euros so give or 54:04 54 minutes, 4 seconds take about 500 crores and second was in India which was uh close to about uh 300 odd crores. So these 800 crores of 54:13 54 minutes, 13 seconds addition which was done you know we had yet to realize the potential out of this investments which have been done because 54:20 54 minutes, 20 seconds the prime site commenced operations last year. We expected to ramp up and get to the break even level in the next 54:27 54 minutes, 27 seconds financial year. Number one, uh the India site obviously had issues because of the of the EDQM observations that came in 54:36 54 minutes, 36 seconds March of 2020 because of which the performance was subdued over the last four to five years and now uh you know 54:43 54 minutes, 43 seconds we are seeing a good amount of visibility as far as the ramp up of the India operations are concerned. So as we keep on increasing the utilization at 54:52 54 minutes, 52 seconds both these locations you know that will have a significant positive impact not just on the revenue but also on the on 54:59 54 minutes, 59 seconds the margin front and that is the reason uh you know our target is to get as quickly as possible to the 25 26% 55:07 55 minutes, 7 seconds consolidated margins that we were doing prior to uh March of 2020. So that's the first target to be achieved over the 55:15 55 minutes, 15 seconds next two years and then get to the 30% data margin mark by the end of 2030. So that is uh that is how uh you know the 55:24 55 minutes, 24 seconds ramp up in the revenues and the margins would happen. 55:28 55 minutes, 28 seconds Got it sir. So in terms of the ramp up I mean for FY27 do you have any visibility of ramping up? So if a consolidated 55:37 55 minutes, 37 seconds utilization is around say 60% or 50%. So I mean what uh what are the internal targets in terms of visibility for FY27 55:45 55 minutes, 45 seconds and for FY28 in terms of ramping up consolidated utilization. 55:52 55 minutes, 52 seconds Sure. So if you take a a two to three year view you know we would want the utilizations to increase significantly 56:00 56 minutes especially out of the French facility and uh the India size. So India should 56:05 56 minutes, 5 seconds be able to uh easily make it 2.5x of what it is doing today as far as the the 56:13 56 minutes, 13 seconds the production utilization production capacity utilization is concerned and uh as far as the French facility is 56:20 56 minutes, 20 seconds concerned it should be a similar kind of number that we would be targeting in the next three years time. uh the the 56:28 56 minutes, 28 seconds Shangai facility you know we have just started the activities of uh of of targeting the pharmaceutical market in 56:37 56 minutes, 37 seconds China. So you know that plus the incremental orders coming from the Swiss entity for some of the customers who 56:45 56 minutes, 45 seconds want to have a preference for China to get their uh intermediates manufacturer. 56:51 56 minutes, 51 seconds We do expect that the utilization should go up from the current 50% to around the 75%. 56:58 56 minutes, 58 seconds The Swiss entity what we are trying to do is to focus on getting more and more projects for development. So the target 57:06 57 minutes, 6 seconds is that in the next uh 5 years we should be able to double the development revenue from what it is right now and 57:13 57 minutes, 13 seconds that is the reason you know we are taking extra efforts in getting the customers right at the initial phase of 57:20 57 minutes, 20 seconds development. Um and and then we are also targeting customers to uh you know for the molecules which are already in phase 57:29 57 minutes, 29 seconds three to be added as a as a second supplier. So there are various efforts that are being taken in order to make sure that we are able to increase the 57:37 57 minutes, 37 seconds the development revenue out of the Swiss entity and uh increase the commercial revenue out of the India side. 57:47 57 minutes, 47 seconds All right sir got it. Thank you very much. Wish you all the best. Thank you. 57:53 57 minutes, 53 seconds Thank you. The next question comes from Harsh R Neoen Advisers. Please go ahead. 58:01 58 minutes, 1 second Hello. Yes sir. Uh in the previous phone call we have you have guided approximately 20% AITA for a 526 and 58:10 58 minutes, 10 seconds strong late phase ADC contribution. In Q3 margins dropped to 15% 58:17 58 minutes, 17 seconds and the company reported a loss. Can you clearly quantify how much of this margin miss was due to mixed timing versus any 58:24 58 minutes, 24 seconds structural cost increase and also does the 20% guidance still stand for FA26? 58:34 58 minutes, 34 seconds Sure. So uh yeah so the target for the full year still stands. So we could be ending up ending the year with uh 58:41 58 minutes, 41 seconds anywhere between 19.5 to 20%. So if you take the first 9 months we are already at about 19.4%. 4%. Uh so you we don't 58:51 58 minutes, 51 seconds deviate from uh you know what we had set out at the beginning of the year. 58:56 58 minutes, 56 seconds Obviously you know uh quarter over quarter in our business it is very difficult to maintain a unitary in the 59:03 59 minutes, 3 seconds margins all throughout each of the quarters because you know as we saw in the first half of the year there was a strong uh portion of the development 59:12 59 minutes, 12 seconds revenue most specifically the late phase molecule uh because of which you know the the cost was extremely low because 59:20 59 minutes, 20 seconds of which the margins were were uh at about 21 odd% But in the second half of the year, you 59:27 59 minutes, 27 seconds know, we do have a high amount of commercial supplies that would go out. 59:32 59 minutes, 32 seconds Uh, you know, where the margins are a bit lower than the phase three molecule. 59:36 59 minutes, 36 seconds But overall for the full year, uh, you know, as we had also said in the previous call, the composition of development is going to be higher than 59:45 59 minutes, 45 seconds commercial. And that is one of the key reasons why from the last year 17.3% 59:52 59 minutes, 52 seconds we should be ending the year with closer to 20% margin and I think we stick we stick to that even today uh uh as we see the full financial year of 26. 1:00:05 1 hour, 5 seconds Okay. And uh sir, one more question. Uh this was on the business side. Sir, over the uh over the past 8 to 10 years, the 1:00:14 1 hour, 14 seconds company has invested heavily in R&D talent specific capabilities and the uh plants and all yet the asset utilization 1:00:23 1 hour, 23 seconds and ROC remains weak. While when we uh compare our peers like Loris and Muland so at that point they were very small than us but they have compounded faster. 1:00:35 1 hour, 35 seconds From the from your perspective what has structurally structurally prevented us from converting these capabilities into 1:00:43 1 hour, 43 seconds scale and returns and what is fundamentally different now that gives you confidence that this might change? 1:00:53 1 hour, 53 seconds Absolutely. So, so basically you know if you see the uh I mean there were several factors similar to what I had explained 1:01:00 1 hour, 1 minute earlier but uh one of the key factors was that over the last four five years you know the India site was not 1:01:08 1 hour, 1 minute, 8 seconds performing because if you see uh financial year 2020 India was doing a revenue of close to about 550 crores 1:01:16 1 hour, 1 minute, 16 seconds with a margin of uh close to about 40% at an IBITA level. Now when that revenue came down you know that had an impact on 1:01:25 1 hour, 1 minute, 25 seconds the revenue but more uh more so on the on the operating margin that we were 1:01:31 1 hour, 1 minute, 31 seconds targeting to achieve uh in 2024 2025. So that that had an impact now that you 1:01:39 1 hour, 1 minute, 39 seconds know we have integrated the organization we are looking at at ramping up the revenues out of the India side. All of 1:01:47 1 hour, 1 minute, 47 seconds the regulatory hurdles are behind us, you know, not just from the EDQM, but we also had successful FDA inspection um you know, even from the Japanese PMDA. 1:01:57 1 hour, 1 minute, 57 seconds You know, all of the regulatory issues are now behind us. So now what the focus of the businesses is to get more and 1:02:04 1 hour, 2 minutes, 4 seconds more orders in order to fill up the India site because this is the site uh which is going to give us the highest 1:02:12 1 hour, 2 minutes, 12 seconds margins as far as the entire group is concerned. Plus the site has been upgraded significantly in order to make 1:02:19 1 hour, 2 minutes, 19 seconds sure that we are ready to to handle this kind of orders the new orders that come in not just for the the short term or 1:02:28 1 hour, 2 minutes, 28 seconds the medium-term but also for the long term. So that is the reason you know why we decided that if we have to make investments let's do it for one so that 1:02:37 1 hour, 2 minutes, 37 seconds we don't have to worry about this regulatory issues for the next uh 10 15 20 years. So that is that was the 1:02:43 1 hour, 2 minutes, 43 seconds philosophy. So that's number one. Uh number two, if if you look at it, uh at the Swiss entity, we always had a 1:02:52 1 hour, 2 minutes, 52 seconds constraint on the capacity in terms of manufacturing. So historically you know we have always been targeting the small 1:02:59 1 hour, 2 minutes, 59 seconds molecules the the niche molecules and that is also one of the reasons why oncology and uh technologies like ABC 1:03:08 1 hour, 3 minutes, 8 seconds highly potent compounds you know those have become a significant portion of our revenue which in a way is a good thing because you know our our people uh uh 1:03:18 1 hour, 3 minutes, 18 seconds you know they they're extremely talented the scientists that we have and that is the reason we have been able to crack this kind of complex Lex technologies 1:03:26 1 hour, 3 minutes, 26 seconds which people are talking about today which we had mastered 15 years back. So that's a great advantage to have. But on 1:03:33 1 hour, 3 minutes, 33 seconds the flip side the higher volume business is something that we had to let go because on one side you know we had the regulatory issues in India. the 1:03:41 1 hour, 3 minutes, 41 seconds integration between India and Switzerland had not actually played out in the manner that was expected by the previous management which is now 1:03:49 1 hour, 3 minutes, 49 seconds actually playing out you know that we have a singular business development organization a lot of synergies that we see on the operational side and that 1:03:58 1 hour, 3 minutes, 58 seconds gives us the confidence that now are the years you know where we should be able to reap the benefits of this closure integration so I think with these two 1:04:07 1 hour, 4 minutes, 7 seconds things uh coming into play and uh you know actually playing out for us over the next years. We should see a 1:04:15 1 hour, 4 minutes, 15 seconds significant amount of ramp up both in terms of revenues as well as margins. 1:04:19 1 hour, 4 minutes, 19 seconds And now you know we also have this additional capability of doing the forms and finish for our customers where we complete the entire loop of services 1:04:27 1 hour, 4 minutes, 27 seconds that we can offer to our customers right from development of API to manufacturing of the of the final product where 1:04:35 1 hour, 4 minutes, 35 seconds injectables is the delivery form which puts us in a very unique position as compared to many of our other peers. 1:04:51 1 hour, 4 minutes, 51 seconds Thank you. Next question comes from the line of Rammanu Chandra. Please go ahead. Hello. 1:04:57 1 hour, 4 minutes, 57 seconds Hello sir. Am I audible? 1:05:03 1 hour, 5 minutes, 3 seconds Yes. Not even uh so uh right now given we have branches at uh China, India and Europe. 1:05:12 1 hour, 5 minutes, 12 seconds What is the difference you see between manufacturing in India and China? 1:05:16 1 hour, 5 minutes, 16 seconds Means do you see any structural difference of manufacturing we do here and there? 1:05:24 1 hour, 5 minutes, 24 seconds Um structurally uh maybe Paulo Stephan from a manufacturing perspective if you want to if you want to answer maybe I 1:05:33 1 hour, 5 minutes, 33 seconds can simp what is the difference in manufacturing ecosystem of India and China 1:05:41 1 hour, 5 minutes, 41 seconds can start maybe I can start and and Paulo can jump in then um yes I would I would 1:05:50 1 hour, 5 minutes, 50 seconds differentiate I would not say what is the difference in manufacturing But what is the market expectation? This is more relevant from a from a 1:05:58 1 hour, 5 minutes, 58 seconds production capabilities. We are quite similar. Of course, Shanghai is is much smaller than than India. They have 1:06:07 1 hour, 6 minutes, 7 seconds bigger capacities um bigger site, bigger more people and so on so forth. But the important thing 1:06:14 1 hour, 6 minutes, 14 seconds is what are customers expecting and there is a diverse expectation. one uh part of the customer they say uh we want 1:06:21 1 hour, 6 minutes, 21 seconds to we want to go to Asia doesn't matter if it's China or India some people say um everything but China and some people 1:06:30 1 hour, 6 minutes, 30 seconds say everything but India so this is where our strength is that we can offer whatever the customer expects from a 1:06:38 1 hour, 6 minutes, 38 seconds quality perspective or from um scientific approach we are the same it's not a difference but maybe Paulo you can 1:06:47 1 hour, 6 minutes, 47 seconds uh share have your opinion from your perspective. 1:06:50 1 hour, 6 minutes, 50 seconds Yeah, I agree with you that you know there are many customer I I would say in the last period we see completely trend 1:06:59 1 hour, 6 minutes, 59 seconds that the customer tended to get out from China honestly because of this geopolitical situation. So we see uh definitely 1:07:08 1 hour, 7 minutes, 8 seconds customer that are very very keen to shift their manufacturing from China to to to India. uh India from my 1:07:15 1 hour, 7 minutes, 15 seconds perspective is a kind of idea scenario worldwide because especially in our case 1:07:21 1 hour, 7 minutes, 21 seconds we are having uh in large capacity and a great talent uh there is a great things 1:07:30 1 hour, 7 minutes, 30 seconds which in my opinion India is much much better than China which is the language because to write in English and to 1:07:38 1 hour, 7 minutes, 38 seconds communicate in English is definitely a big advantage with respect China but of As a step there are also customer which 1:07:46 1 hour, 7 minutes, 46 seconds want to go to China but geopolitically wise today we see customer very keen to come to India rather than stay to China. 1:07:57 1 hour, 7 minutes, 57 seconds Currently what is the preference of large farmer companies where do they want their materials to be sourced from India or China? 1:08:07 1 hour, 8 minutes, 7 seconds means on a market level generally what are companies preferring right now? 1:08:14 1 hour, 8 minutes, 14 seconds Well, as I said there we see everything also from big farmers. I mean big farmers they have a worldwide footprint 1:08:22 1 hour, 8 minutes, 22 seconds but they are they are concerned about this biosecure act al although carbon and amsis and fishal carbage and ams are 1:08:31 1 hour, 8 minutes, 31 seconds not falling under the biosecure act there are still some concerns and that's why uh big farmers have a trend to leave 1:08:41 1 hour, 8 minutes, 41 seconds China and place more work in India but again it's not one unique voice it's a 1:08:47 1 hour, 8 minutes, 47 seconds diverse thing because big farmers they have also their subsidiaries in China. 1:08:53 1 hour, 8 minutes, 53 seconds Uh so they are also in a political environment where they need to be uh cautious as well. 1:09:01 1 hour, 9 minutes, 1 second So do you see Dishman benefiting from the recent two that India had one with Europe and one with USA? 1:09:13 1 hour, 9 minutes, 13 seconds Uh sorry were you asking about uh trade deal? 1:09:17 1 hour, 9 minutes, 17 seconds Recently India as you have seen India has signed FDA with Europe and soon with USA also. Do you see India benefiting? 1:09:25 1 hour, 9 minutes, 25 seconds Do you see Dishman benefiting in any manner? Means can we bring back production to India? 1:09:33 1 hour, 9 minutes, 33 seconds Well yes I mean uh well right now we don't see any any even before this uh James you know we were not seeing any 1:09:41 1 hour, 9 minutes, 41 seconds impact any major impact of the tariffs uh because you know most of our shipments even though the customers are based in the US most of the shipments 1:09:50 1 hour, 9 minutes, 50 seconds were happening to the European region so from that perspective uh you know we don't see any any 1:09:58 1 hour, 9 minutes, 58 seconds positive or any negative impact because of this trade deal but yes I mean the idea is very clear is to get more and 1:10:05 1 hour, 10 minutes, 5 seconds more production into India um and also try to fill up the the Shankai site as as quickly as possible. 1:10:13 1 hour, 10 minutes, 13 seconds May maybe I may maybe I may may add on the pharmace on the pharmaceutical um 1:10:21 1 hour, 10 minutes, 21 seconds arena and and part I agree there is not much impact because they're exempted from the tariffs specifically in the US. 1:10:29 1 hour, 10 minutes, 29 seconds on the fine chemical part. Personally, I see a big chance because they're um they are falling on the tariff regimes. Uh 1:10:36 1 hour, 10 minutes, 36 seconds but if we have now a free trade agreement between Europe and India, there's absolutely the chance that we 1:10:43 1 hour, 10 minutes, 43 seconds can produce more in India and export it to Europe. Uh because then the tariffs are significantly reduced on the time 1:10:52 1 hour, 10 minutes, 52 seconds chemicals, not pharmaceutical time chemicals. That's it from me. Thank you sir. 1:11:02 1 hour, 11 minutes, 2 seconds Thank you. Next question comes from the line of Vivian Jooshi. Please go ahead. 1:11:09 1 hour, 11 minutes, 9 seconds Yeah. Am I audible sir? Yes. 1:11:15 1 hour, 11 minutes, 15 seconds Yeah question. We are a mature company and still we go from red to green quarter wise quarter. 1:11:26 1 hour, 11 minutes, 26 seconds variables which will see like consistent profitability or is it just like part of the business or there is a period where we can see like 1:11:34 1 hour, 11 minutes, 34 seconds consistent profitability I mean structurally can you just explain like are we still like in a growth phase or we in the investment phase or we are a 1:11:42 1 hour, 11 minutes, 42 seconds mature pharma company I'm just finding it really difficult to understand thanks a lot and all the best 1:11:52 1 hour, 11 minutes, 52 seconds uh uh sorry you were not that audible but I I'll just try to rephrase your question and you can correct me if that's uh right phrasing uh but your 1:12:01 1 hour, 12 minutes, 1 second question was because uh I mean why do we have this fluctuations in the margin as far as the quarterly results are concerned 1:12:11 1 hour, 12 minutes, 11 seconds yeah more it was like a like for a mature company should they be consistently profitable if not like what 1:12:19 1 hour, 12 minutes, 19 seconds are the triggers which will make us consistently profitable that's the main idea Well, I would say the the nature of our 1:12:27 1 hour, 12 minutes, 27 seconds business uh you know is such that it is it is very difficult to have a linearity in the margins every quarter because it 1:12:36 1 hour, 12 minutes, 36 seconds all depends upon whether I mean what what is the composition of revenue that is driving uh the margins in that particular quarter. So the so the right 1:12:44 1 hour, 12 minutes, 44 seconds way to look at our business would be more on a yearly basis if if uh if not on a two yearly basis but at least on a 1:12:52 1 hour, 12 minutes, 52 seconds yearly basis we would uh we would have a visibility on uh on what would what the revenue numbers could look like on what 1:13:00 1 hour, 13 minutes the margin numbers could look like for the full financial year. quarterly it might just depend upon uh what work has been done in that particular quarter 1:13:08 1 hour, 13 minutes, 8 seconds whether it is more of the midphase development versus earlyphase versus commercial on the CDMO side and on the 1:13:16 1 hour, 13 minutes, 16 seconds marketable molecules whether it's more of the vitamin D analogs or cholesterol because this is a completely B2B business so much of this is dependent 1:13:24 1 hour, 13 minutes, 24 seconds upon also when the customer wants the material to be supplied uh you know like we had in this last quarter where they 1:13:32 1 hour, 13 minutes, 32 seconds wanted it in January versus in December because of the holidays. So there are these factors which might influence uh the quarterly margins or the revenue. 1:13:42 1 hour, 13 minutes, 42 seconds But from a full year perspective uh I think more or less we should be in line with what we state at the beginning of the year. 1:13:54 1 hour, 13 minutes, 54 seconds Oh, you made it. 1:14:09 1 hour, 14 minutes, 9 seconds Thank you. Next question comes by the line of Asha. Please go ahead. 1:14:17 1 hour, 14 minutes, 17 seconds Uh yeah. Uh so my question is again on the U ADC uh drugs uh that we supply. So 1:14:24 1 hour, 14 minutes, 24 seconds u it's uh the molecule is uh you know a blockbuster product with uh you know significant sales uh end sales uh but 1:14:33 1 hour, 14 minutes, 33 seconds our revenue contribution uh is uh very minuscule uh if we compare it to the overall scheme of things uh even even 1:14:41 1 hour, 14 minutes, 41 seconds with uh the growing uh number that we alluded uh to my previous question u the share seems to be uh significantly 1:14:48 1 hour, 14 minutes, 48 seconds lower. So uh just try just trying to understand why our share of value is so limited despite the scale of the 1:14:55 1 hour, 14 minutes, 55 seconds molecule is it just uh uh because we don't do a antibbody and that is one of the biggest parts in the value chain and 1:15:04 1 hour, 15 minutes, 4 seconds uh uh uh you know related question to that is uh with our partnership with uh salonic uh for antibodies um can we 1:15:13 1 hour, 15 minutes, 13 seconds compete in this space and can we manufacture the complete ADC in house and uh because uh what what we understand is that the innovators 1:15:21 1 hour, 15 minutes, 21 seconds typically like to keep bio conjugation in house. Uh so just some thoughts on that. 1:15:28 1 hour, 15 minutes, 28 seconds Sure. So on the on the first question uh so if you see last year uh the customer did close to about I think about 4 1:15:36 1 hour, 15 minutes, 36 seconds billion of revenue um of from this particular molecule and right now there are two approved suppliers one is 1:15:45 1 hour, 15 minutes, 45 seconds ourselves and uh second is the Swiss based um CDMO company 1:15:52 1 hour, 15 minutes, 52 seconds suppliers of correct so uh so we being the primary supplier 1:15:59 1 hour, 15 minutes, 59 seconds I mean if you talk about the ADC you know that would be close to about say uh maybe 1.5% 1:16:08 1 hour, 16 minutes, 8 seconds at max of the of the final product price that the customer is realizing. So of the four billion you know if you take 1:16:15 1 hour, 16 minutes, 15 seconds 1.5% that's roughly about uh 60 million and uh then if you take out the 1:16:23 1 hour, 16 minutes, 23 seconds antibbody component which could be close to about 20 25 million u you know then 1:16:29 1 hour, 16 minutes, 29 seconds we left with say roughly about uh 35 odd million and of that roughly about 60% uh 1:16:36 1 hour, 16 minutes, 36 seconds is what is supplied by us and 40% by by the other CDM or company plus we also supply uh for the other indications 1:16:45 1 hour, 16 minutes, 45 seconds which are in the pipeline and that's how the entire revenue of 30 million is more or less made up of. So I would say as as 1:16:53 1 hour, 16 minutes, 53 seconds the revenues of the end customer keeps on growing you know this would be more or less the share that can be computed 1:17:01 1 hour, 17 minutes, 1 second as far as uh our contribution to the overall revenue is concerned because the kind of uh so you know the ADC as such 1:17:08 1 hour, 17 minutes, 8 seconds is not more than one and a half% at max of the final product. 1:17:13 1 hour, 17 minutes, 13 seconds So so the linker that you're talking about is not more than one and a half% of the end sales. the the linker and the payload. Linker and the payload. 1:17:21 1 hour, 17 minutes, 21 seconds The linker payload. Uh yeah, they're put together. 1:17:27 1 hour, 17 minutes, 27 seconds Got it. Got it. So that's helpful. Uh and sorry, what was the second question? 1:17:31 1 hour, 17 minutes, 31 seconds Uh so it was uh related to the tie up with Salonic. Uh we did uh the So now Yeah. 1:17:41 1 hour, 17 minutes, 41 seconds Yeah. So like the end to end. 1:17:45 1 hour, 17 minutes, 45 seconds No, no. I I got your question. So you know for with this partnership with Salonic we are able to offer the end-to-end solution to the customer uh 1:17:53 1 hour, 17 minutes, 53 seconds including the antibodies the conjugation the payload and the linker. So that is uh that is the benefit of having this 1:18:00 1 hour, 18 minutes partnership with Salonic where even the customers who would be approaching Salonic they could be potential customers for us as the suppliers of the 1:18:09 1 hour, 18 minutes, 9 seconds linker payload and the conjugation. So that is where uh you know we are seeing increasing amount of uh inquiries. We 1:18:17 1 hour, 18 minutes, 17 seconds have also given out uh RFPs to certain customers with this entire proposition and uh you know we see significant 1:18:24 1 hour, 18 minutes, 24 seconds benefits because now we are able to do the end to end for the customer including the form fill finish out of the French facility if the customer 1:18:32 1 hour, 18 minutes, 32 seconds desires that. But maybe Stephan if you want to add something on this partnership. 1:18:40 1 hour, 18 minutes, 40 seconds Um no exactly that's that's the reason why you went entered into this partnership. So it's twofold. A we can 1:18:47 1 hour, 18 minutes, 47 seconds um offer this end to end solution where it's a simplified process for for the customer. Uh but also secondly on a on a 1:18:55 1 hour, 18 minutes, 55 seconds sales and marketing front. Um there are customers dealing only with salonic in that specific case and we get into the 1:19:05 1 hour, 19 minutes, 5 seconds picture. So there are new customers for us uh because um so far the customer was kind of lost and now with us in the 1:19:13 1 hour, 19 minutes, 13 seconds picture he can come to us with the link of payload and the conigation request and of course on the other side for 1:19:20 1 hour, 19 minutes, 20 seconds salonic it's beneficial because we have some customers have no contact with antibbody developments so that's u the 1:19:28 1 hour, 19 minutes, 28 seconds reason why we say it's a win-win-win situation. 1:19:32 1 hour, 19 minutes, 32 seconds Have we already seen some interest from uh maybe small biotech customers or salonics customers uh for this uh end to end uh capability? 1:19:42 1 hour, 19 minutes, 42 seconds Yes, this is what I mentioned before or meant when I said there is an increased interest. They're mainly uh small 1:19:50 1 hour, 19 minutes, 50 seconds biotechs uh which develop their own antibbody with the support of salonic but at the same time they need somebody 1:19:58 1 hour, 19 minutes, 58 seconds to produce the link payload and this um we are this company. 1:20:05 1 hour, 20 minutes, 5 seconds Got it. So that's very interesting. Uh my final question is uh relating uh to the debt side. So what is the current debt on books and uh how are we thinking 1:20:15 1 hour, 20 minutes, 15 seconds uh uh on the debt front let's say uh for the next one to two years are we looking to pair it down and uh if you can give 1:20:22 1 hour, 20 minutes, 22 seconds some numbers around it so basically our uh net or you know a 1:20:31 1 hour, 20 minutes, 31 seconds large portion of our debt is denominated in Swiss Frank and that would be the right way to look at our debt number. So we are at close to about 150 odd million 1:20:40 1 hour, 20 minutes, 40 seconds Swiss Frank of uh net. Uh what we plan to do over the next uh year years uh 1:20:49 1 hour, 20 minutes, 49 seconds would be to uh pair down the the debt as far as the India side is concerned because you know that is the debt which 1:20:57 1 hour, 20 minutes, 57 seconds is coming at a at a higher cost as compared to the debt which we have at the Swiss entity. So the cost 1:21:03 1 hour, 21 minutes, 3 seconds differential is huge almost about uh 7% between the India debt and the Swiss debt. So ideally speaking uh we would 1:21:12 1 hour, 21 minutes, 12 seconds want to utilize the the the cheaper debt in Switzerland to pay off the debt in India but uh technically uh that is not 1:21:20 1 hour, 21 minutes, 20 seconds possible. So we are we are looking at apart from the operational cash flows the free cash flows that we generate to uh pay down the the rupee debt in India. 1:21:30 1 hour, 21 minutes, 30 seconds So that's that's the prime target of the free cash flow. 1:21:35 1 hour, 21 minutes, 35 seconds Sorry just to clarify how much is the India debt and uh by how much are we planning to pair it down? 1:21:42 1 hour, 21 minutes, 42 seconds So so India debt is uh today roughly about 750 crores. Uh so you know ideally 1:21:50 1 hour, 21 minutes, 50 seconds speaking we would uh want to make the India debt zero in the next two years time frame. 1:21:58 1 hour, 21 minutes, 58 seconds I would say uh with with the cash flow generations we should be able to do it over the next uh 3 years time. 1:22:07 1 hour, 22 minutes, 7 seconds Got it. And uh are we looking uh to raise any other source of funds uh for this or will this primarily be from internal approvals? 1:22:17 1 hour, 22 minutes, 17 seconds I I think the internal approvals would be the primary thing. Apart from that you know we might do a fund raise but uh 1:22:25 1 hour, 22 minutes, 25 seconds obviously at the right valuation um and taking into account the other factors as well but uh you know right now we are 1:22:32 1 hour, 22 minutes, 32 seconds just considering the the operational cashio. 1:22:36 1 hour, 22 minutes, 36 seconds All right so got it. Uh thanks and uh best of luck. Thank you. 1:22:43 1 hour, 22 minutes, 43 seconds Thank you. Due to time constraints that was the last question for the day. 1:22:49 1 hour, 22 minutes, 49 seconds Now I hand over the floor to Mr. Stephen Fredi for his closing comments. 1:22:54 1 hour, 22 minutes, 54 seconds Yeah, thank you very much. Um, thank you to everybody for your interest in Dishman carpage and AMSIS. As we could see from the discussion, the business is 1:23:02 1 hour, 23 minutes, 2 seconds quite lively and very diverse and we are very well positioned to serve the market and we are optimistic and positive to 1:23:11 1 hour, 23 minutes, 11 seconds tackle this and to bring uh great results in the future as well. So, thank you again and have a nice day. 1:23:23 1 hour, 23 minutes, 23 seconds Thank you. Thank you. 1:23:26 1 hour, 23 minutes, 26 seconds Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Busabas conference call service. May I 1:23:34 1 hour, 23 minutes, 34 seconds disconnect your lines now. Thank you and have a blessed evening.