Entero Healthcare Solutions Limited — Q1 FY26

Entero Healthcare Solutions Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=G6_TZmfmFjM Published: 9 months ago

0:00 Ladies and gentlemen, good day and welcome to Q1 FI26 earnings conference call of Antaro Healthcare Solutions Limited hosted by Monarch Network 0:08 8 seconds Capital Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:17 17 seconds you need assistance during this conference call, please signal an operator by pressing start then zero on your touchstone phone. Please note that this conference is being recorded. 0:25 25 seconds Please note this conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. 0:33 33 seconds These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. I now hand the conference over to Mr. Rahul Dani from Monarch Network Capital. Thank you and over to you. 0:45 45 seconds Yeah, thank you. Hi, good evening everyone on a very warm welcome to Entro Healthcare Solutions Q1 FI26 call. Uh on the call today we have with us uh Mr. 0:55 55 seconds Prabhat Agarwal, managing director and CEO and we have Mr. Barak Krishna Koshik, group CF of the group CFO. I will hand over the call to the 1:03 1 minute, 3 seconds management for the opening remarks and then we'll move to Q&A. Thank you and over to you sir. Yeah, thank you. 1:12 1 minute, 12 seconds Good evening everyone and thank you for joining our earnings conference call to discuss the operational and financial performance for Q1 FY26. 1:21 1 minute, 21 seconds My name is Prabhhat and on this call I'm joined by Mr. Balak Koshik group CFO and 1:27 1 minute, 27 seconds SGA our investor relation advisers. I hope everyone had an opportunity to go through the financial results and 1:35 1 minute, 35 seconds investor presentation which has been uploaded on the stock exchange and also on our company's website. 1:43 1 minute, 43 seconds We have started the new financial year on a strong note with Q1 revenues growing 28% yearonear as against the IPM 1:51 1 minute, 51 seconds growth of 9%. 2 rups 1,44 crores. On like basis the revenue growth is 30 31%. 2:02 2 minutes, 2 seconds 3% growth is adjusted after change in revenue recognition for a certain contract on net margin basis. 2:10 2 minutes, 10 seconds More importantly, this growth is broad-based, supported both by organic expansion, contributing 2:16 2 minutes, 16 seconds 15% on like basis where we continue to deliver around 1.6 times the market growth rate and the rest through M&A executed in last financial year. 2:29 2 minutes, 29 seconds We have already announced more than 400 crores of acquisitions in the last quarter in the last conference call. 2:35 2 minutes, 35 seconds some of which have already closed in the current quarter and the balance also will be closed in the quarter 2 itself. 2:42 2 minutes, 42 seconds At the same time, there are more deals in pipeline which will be announced once the transaction documents are signed. 2:49 2 minutes, 49 seconds Acquisitions will remain an important lever for growth but our approach will continue to be disciplined and value effective. 2:59 2 minutes, 59 seconds Gross profit came in at rupees 140 crores up 40% yearonear with our gross margins improving by 83 basis points to 3:08 3 minutes, 8 seconds 9.9% versus last year and 17 basis points versus last quarter. This improvement 3:16 3 minutes, 16 seconds has been driven by higher value added services margin accative categories and procurement efficiencies. 3:22 3 minutes, 22 seconds Abita for the quarter was rupes 50 crores representing a growth of 66% yearonear with margins improving by 82 basis points versus last year to 3.6%. 3:35 3 minutes, 35 seconds Profit after tax increased 47% yearonear to rupees 30 crores. 3:42 3 minutes, 42 seconds In spite of higher gross margins versus last quarter thea margins declined from 3.7% 3:49 3 minutes, 49 seconds to 3.6% 6% versus the last quarter as the operating leverage impact was not felt in this quarter due to annual 3:57 3 minutes, 57 seconds salary and wage increases being implemented at the beginning of the year. Our revenue base increased by 5% 4:05 4 minutes, 5 seconds versus last quarter while operating cost increased by 9% over last quarter. 4:11 4 minutes, 11 seconds Now the fixed manpower costs have been fully baked in the quarterly operating cost numbers and as the revenue growth catches up in the rest of the year the 4:19 4 minutes, 19 seconds positive impact of operating leverage will start playing out. Even the IPM revenue grows significantly from quarter two onwards and after the raising 4:28 4 minutes, 28 seconds season. This is in line with our historical quality uh historical quarterly performance and even our 4:35 4 minutes, 35 seconds fullear guidelines of 4% plus aida margins had factored this in the projections. 4:42 4 minutes, 42 seconds Equally equally important is our continued focus on cash flows. We have moderated moderated our networking 4:49 4 minutes, 49 seconds capital uh from about 70 71 days about a year ago to around 66 days in last couple of quarters. 4:58 4 minutes, 58 seconds We have initiated multiple initiative to further optimize both inventory and receivables through ERPdriven controls 5:06 5 minutes, 6 seconds and data science based techniques and we are targeting another 10% reduction in working capital days by end of this financial year. 5:15 5 minutes, 15 seconds Our network and reach have strengthened further. We now serve over 71,000 retailies and more than 2,500 hospitals 5:23 5 minutes, 23 seconds across 469 districts in India. Supported by 102 warehouses strategically located across the country. Our product 5:31 5 minutes, 31 seconds portfolio has expanded to over 74,700 SKUs sourced from more than 2,600 healthcare product manufacturers. 5:41 5 minutes, 41 seconds This scale is not just about numbers. 5:44 5 minutes, 44 seconds It is about reach, vast product portfolio, service reliability and quality which helps us to continuously 5:51 5 minutes, 51 seconds gain confidence and wage share from our customers. More and more customers including even organized retailers find 5:58 5 minutes, 58 seconds our value proposition compelling and unique. At the same time, as we penetrate larger parts of India with 6:06 6 minutes, 6 seconds significant share in micro markets, we become in significantly more attractive for any healthcare product manufacturer 6:13 6 minutes, 13 seconds to collaborate or partner with us both for demand fulfillment and demand generation activities. 6:21 6 minutes, 21 seconds Our strategic playbook centered on discipline in organic growth, organic scale up in underserved markets and 6:28 6 minutes, 28 seconds deepening partnerships with healthcare brands continues to deliver and bring us closer to our long-term vision of 6:35 6 minutes, 35 seconds building India's most comprehensive, efficient and digitally integrated healthcare distribution platform. 6:42 6 minutes, 42 seconds We are executing on three clear growth pillars. First, organic expansion, deepening penetration in our existing markets, winning a larger wallet share 6:51 6 minutes, 51 seconds from existing customers and expanding our product range especially into higher margin categories like medical devices, diagnostics, surgical consumables, trade genics and specialtity pharma. 7:03 7 minutes, 3 seconds Second, discipline in organic growth. We are very selective with acquisitions now. We only acquire where there is a strong strategic fit. Whether it's a new 7:11 7 minutes, 11 seconds geography, a differentiated product segment or a capability that strengthens our value proposition. 7:18 7 minutes, 18 seconds Third, operational excellence. This means better procurement, technologydriven efficient warehousing 7:26 7 minutes, 26 seconds and delivery infrastructure and optimized operating cost and working capital management. 7:32 7 minutes, 32 seconds It is worth reiterating that the Indian farmer distribution market is still highly fragmented with organized players accounting for less than 10% of the market. 7:43 7 minutes, 43 seconds Our pan India technology-led and category neutral platform is difficult to replicate. This positions us uniquely 7:50 7 minutes, 50 seconds to capture outsiz share gains as the market consolidates. 7:56 7 minutes, 56 seconds Looking ahead, we are on track to deliver 30% revenue growth in FY26, including both organic and inorganic growth, surpassing 4% full year aida 8:06 8 minutes, 6 seconds margins and generating positive operating cash flows. Margin expansion will be driven by richer product mix, procurement gains, value added services, 8:14 8 minutes, 14 seconds and operating leverage from scale. We are targeting to achieve the working capital target of 60 days by end of this financial year. 8:22 8 minutes, 22 seconds In summary, quarter 1 FY26 has been a strong start to the year. We continue to deliver on the vast consolidation 8:29 8 minutes, 29 seconds opportunity in an extremely fragmented healthcare supply chain through organic expansion as well as disciplined M&A. We 8:37 8 minutes, 37 seconds continue to add customers, enhance product portfolio through collaboration with healthcare brands, diversify into new product categories such as medical 8:45 8 minutes, 45 seconds devices, diagnostic, trade generics, etc. to become a one-stop solution for our customers. 8:52 8 minutes, 52 seconds With this you know uh I I close my opening remarks and invite uh you know people to ask questions. 9:02 9 minutes, 2 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 the test telephone. If 9:09 9 minutes, 9 seconds you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. 9:25 9 minutes, 25 seconds The first question is from the line of Chintan Shed from G Capital. Please go ahead. 9:31 9 minutes, 31 seconds Hi, thank you team for the opportunity and uh uh uh Congressman improvement in gross margins and margins. A couple of 9:40 9 minutes, 40 seconds questions on on the growth part. uh you did mention that 31% is a like to like growth uh with 3% is related to um um uh 9:49 9 minutes, 49 seconds revenue recognition impact but if I look at uh uh organic growth of 15% and adjust and calculate the inorganic 9:57 9 minutes, 57 seconds contribution for the quarter it seems sequentially uh you know declining last quarter I think you mentioned around 200 10:05 10 minutes, 5 seconds to 225 cr was the contribution from the inorganic revenue uh what would be that number and is uh if if the number has 10:13 10 minutes, 13 seconds lowered down why why and that yeah Bala why would you respond to this break up into organic and inorganic 10:22 10 minutes, 22 seconds uh so Chintan this is Bala here hi Bala hi hi so the if you look at the growth uh 10:29 10 minutes, 29 seconds the 225 that you mentioned uh for last quarter uh that number was about 218 and 10:36 10 minutes, 36 seconds this quarter that's about 230 crores Okay. 10:41 10 minutes, 41 seconds So there is a growth when you when you look at organic inorganic for entities that were acquired during the quarter 1 of FI25 10:50 10 minutes, 50 seconds the portion that was there uh in the reported numbers will move into organic. 10:55 10 minutes, 55 seconds So if you look at like to life it's about 230 versus 218 of last year. Okay. 11:02 11 minutes, 2 seconds So there is a on the on those numbers as well. 11:06 11 minutes, 6 seconds Okay. Got it. And uh in terms of uh acquisition pipeline if you can uh you know uh we we still uh you know keeping 11:15 11 minutes, 15 seconds track on the 800 to,000 odd cr of uh revenue acquisition for the year or any 11:23 11 minutes, 23 seconds change uh on that number if you if you want to highlight. 11:29 11 minutes, 29 seconds Yeah. So you know if you look at the guidance that we gave on this year's of revenue of growth of 30%, that includes both organic and inorganic part right. 11:38 11 minutes, 38 seconds So right on the in organic part we had assumed around 500 crores of recognized revenue our books. So which is what we are on 11:46 11 minutes, 46 seconds track. We have already you know done 400 crores in quarter one we announced which will be you know start reflecting from quarter two onwards and there are 11:53 11 minutes, 53 seconds further more acquisitions in pipelines that will be you know completed. 11:58 11 minutes, 58 seconds Got it. I'll jump back in and thank you for the for the opportunity. Yeah, thank you. The next question is from the 12:06 12 minutes, 6 seconds line of Bara from Ambbit Asset Management. Please go ahead. 12:11 12 minutes, 11 seconds Yeah, good evening Tim and uh thank you for the opportunity. Uh sir, in your press release you mentioned that uh earlier the guidance was to do 12:20 12 minutes, 20 seconds acquisition by August but that has been pushed over to November. So if you can uh uh share some uh reasons uh for the sale that's my first question. 12:32 12 minutes, 32 seconds We are pushed to November. 12:33 12 minutes, 33 seconds So in the stock exchange because we given August 15 so just this going towards end of August we put it as 12:41 12 minutes, 41 seconds for the for the for the one that we announced the one that we announced the two so all all these acquisition that we have announced in uh in previous 12:49 12 minutes, 49 seconds conference call that will be completed during this quarter. 12:53 12 minutes, 53 seconds Two of them we have already completed you know one of them we are just waiting for D license to conclude. 13:00 13 minutes Okay. So what you hinting at is that in the second quarter couple of acquisitions will be announced. 13:07 13 minutes, 7 seconds Uh not not announced completed the one that we announced previously. 13:11 13 minutes, 11 seconds Yeah. So your revenue recognition will start happening. Yes. Yes. From quarter two. Yeah. 13:18 13 minutes, 18 seconds Okay. And what would be the size of them in terms of revenue from the second quarter? 13:24 13 minutes, 24 seconds It depends you know on the day when we are able to close as I told you couple of them we have already closed right. So some of them the revenue is flowing from 13:32 13 minutes, 32 seconds July beginning one of them is going to flow from July end. One of them you know we are just everything is complete. We are just waiting for the new drug 13:40 13 minutes, 40 seconds license in the new company. This you know the the drug license site is down for 10 days now you know. So we are not able to uh you know close that 13:48 13 minutes, 48 seconds transaction. The moment the license the site is opened you know within 3 4 days we should start we should close the transaction and you know the revenue 13:56 13 minutes, 56 seconds will start flowing in. So it's difficult to accurately predict some of this we are dependent on uh you know external factors but what I can tell you that all 14:04 14 minutes, 4 seconds four transactions will be definitely closed two of them has already closed balance two will also be closed. 14:12 14 minutes, 12 seconds Okay. Secondly sir uh is it fair to say that 1Q is seasonally the weakest 14:19 14 minutes, 19 seconds quarter for us and if we have done 66 days of working capital in 1 Q uh it is 14:27 14 minutes, 27 seconds fair to say that the working capital from here on only should improve given that the revenue growth uh in terms of 14:35 14 minutes, 35 seconds absolute also will be higher in the subsequent quarter. 14:40 14 minutes, 40 seconds Yes, because you know typically if you look at even the pharma industry how the revenues are split into four you know four quarters you will see that quarter 14:48 14 minutes, 48 seconds 2 is generally 8 to 10% higher than quarter 1. You know quarter 2 is the strongest quarter in the pharma industry right because of the rainy season which 14:56 14 minutes, 56 seconds you know because of which the spread of infectious diseases. So typically and historically also even in our numbers you will see that quarter two there's 15:04 15 minutes, 4 seconds generally 10 12% you know higher than quarter one. So on a on a high quarter bas on a high quarter numbers your NWC 15:13 15 minutes, 13 seconds in days goes down because the NWC doesn't increase in the same proportion. 15:17 15 minutes, 17 seconds So you are right you know uh these numbers will will improve in in quarters to come. 15:24 15 minutes, 24 seconds And lastly sir Amazon India has significantly expanded its reach in selling medicines. So now they are 15:32 15 minutes, 32 seconds servicing in almost all of their serviceable pin codes. So do we benefit out of this and how big can this 15:40 15 minutes, 40 seconds business become and related to that Zeppto has also launched pharmacy in August in four major metros. So if you 15:49 15 minutes, 49 seconds can combine both of these uh in the same answer that would be very helpful. 15:56 15 minutes, 56 seconds See I I you know quick commerce for into uh into uh pharma or healthcare I'm not too sure about you know how this is 16:04 16 minutes, 4 seconds going to scale up and how this is going to impact because there are a lot of challenges in uh in quick commerce on especially on the farmer category and 16:12 16 minutes, 12 seconds the challenges are basically three you know number one is the range because you know if the quick commerce value proposition is delivery in 10 minutes 16:22 16 minutes, 22 seconds only then there are few medicines that they can deliver in 10 minutes but if their value proposition is going to be you know fulfilling the prescription 16:29 16 minutes, 29 seconds then they won't be able to do that because you know the pharma the number of squs is just humongous right so you 16:36 16 minutes, 36 seconds know there are so many brands even we are carrying 75,000 squs the whole market is carrying more than 150,000 squs right so if you have value problems 16:44 16 minutes, 44 seconds you're going to be fulfilling the prescription and there are four five drugs written in the prescription it will be very difficult for them to fulfill all four five even the large 16:51 16 minutes, 51 seconds organized e-ies are not able to do it right so that will be number one challenge. Number two challenge will be on AOV, you know. So, you know, how to 17:00 17 minutes drive AOV on this because you know in 10 minutes as I said that whole range will not be available with you. So, your AOV 17:08 17 minutes, 8 seconds could be much much lower on a lower AOV you will burn a lot of money. Okay? 17:13 17 minutes, 13 seconds Because your delivery cost and other cost will be a very high proportion of your sales. Third is the prescription you know because the prescription if you 17:20 17 minutes, 20 seconds don't have a prescription then you know it you have to generate prescription through doctor calling that adds lot of cost to the system. So on a low a you 17:28 17 minutes, 28 seconds know prescription generation is required then that will eat up a lot of margins. 17:33 17 minutes, 33 seconds Thirdly fourthly you know in terms of if you want to go after because of this prescription addition your 10-minut thing may not work out. So it will take 17:41 17 minutes, 41 seconds much longer time for you to supply the medicines and but you won't be able to combine pharma delivery with other delivery because if you want to combine 17:50 17 minutes, 50 seconds both pharma will take more time because of prescription and because of that other things will also get delayed. So typically what is happening is they delivering pharma separately and other 17:59 17 minutes, 59 seconds separately from the same basket. So which adds significant additional cost because on the same order you will have two deliveries. So because of all these 18:07 18 minutes, 7 seconds challenges I'm not too sure you know how much you know pharma uh will be profitable for quickcom 18:15 18 minutes, 15 seconds companies but you know they are experimenting let's see how it works out and Amazon and Amazon Amazon has a better opportunity than 18:24 18 minutes, 24 seconds other people because Amazon is not on quickcommerce Amazon is trying to fulfill the whole prescription range right which is you don't find anywhere you find on Amazon so the value 18:33 18 minutes, 33 seconds proposition of Amazon is is selection Not the speed. Yes. 18:40 18 minutes, 40 seconds So are we participating in that opportunity? Yes, we supply to retailers. Yes. 18:47 18 minutes, 47 seconds Okay. Great. Great sir. Thank you very much and all the very best. Thank you. 18:53 18 minutes, 53 seconds Thank you. The next question is from the line of Ish Mohitar from So Research. Please go ahead. 18:59 18 minutes, 59 seconds Hi sir. Uh I had a question that for the full financial year do we maintain that we'll grow our top line by 30%. Because 19:07 19 minutes, 7 seconds sequentially our growth has been lower for the last three quarters in a row now. 19:12 19 minutes, 12 seconds Sorry what uh for the full financial year do we maintain a 30% plus stop growth because sequentially for the last three quarters our growth has been a bit slower. 19:23 19 minutes, 23 seconds So see if you look at last whole financial year FY 25 our growth rate was more than 30%. Right? So when we said that you know similar growth rate will 19:31 19 minutes, 31 seconds continue in this year right right onto basis our growth rate was 31%. 19:40 19 minutes, 40 seconds Right because uh I think beginning from the I think this quarter our base is pretty elevated when it comes to 19:48 19 minutes, 48 seconds basically topline comparison versus last year. 19:51 19 minutes, 51 seconds Yeah. So the you know the base of quarter 2 is higher and that's always has been you know if you look at many years you know for last few years always 20:00 20 minutes quarter two is much higher than quarter 1. So uh of course you know the our quarter two numbers have to be significantly better than quarter one to 20:07 20 minutes, 7 seconds even deliver that kind of a growth over a quarter two base. 20:12 20 minutes, 12 seconds Right. Right. And sir second question was that uh I think in first half of this financial year or for the full financial year I think last pawn call 20:21 20 minutes, 21 seconds you alluded to that in H2 you have seen positive cash flows. Do we expect a similar trend to continue at H1 we'll have positive cash flows or for the full financial year you'll maintain that 20:30 20 minutes, 30 seconds we'll see positive cash flows. We have said that you know for on a full year basis we will be positive cash flow 20:38 20 minutes, 38 seconds right and similarly for a bit margin also we have said that on a full year basis we will be 4% plus 20:46 20 minutes, 46 seconds right sure sir all the best for the coming thank you the next question is from the 20:54 20 minutes, 54 seconds line of sudaran padmanaban from ask wealth advisor please go ahead yeah thank you for taking my question. 21:03 21 minutes, 3 seconds So my question is you know if I want to understand a little bit more on the operations say in the last two quarters and even if I look at the first you know 21:10 21 minutes, 10 seconds fourth quarter which is the first quarter see the number of district covered had basically come down from 500 to 469 and similarly you know the number 21:19 21 minutes, 19 seconds of retailers the number of SKUs as well as the number of manufacturers. So I mean anything that uh you know you can 21:27 21 minutes, 27 seconds add in this or are we primarily looking to basically scale down you know and focus more on operational uh just one second I'm just trying to 21:35 21 minutes, 35 seconds pull out earlier quarters this thing 21:44 21 minutes, 44 seconds just give me a moment 21:51 21 minutes, 51 seconds [Applause] 21:55 21 minutes, 55 seconds Yeah. So you know if you look at if you sequentially also if you look at quarter my quarter four had 69,000 customers 22:02 22 minutes, 2 seconds quarter 1 has 71,000 customers right so it has not gone down. 22:10 22 minutes, 10 seconds Okay. Okay. So I mean I was referring to that SKUs and the number of district covered etc. That's the page number six versus page number six. 22:18 22 minutes, 18 seconds Yeah. So if you look at you know in quarter to quarter I mean uh comparing exactly with the same quarter last year 22:24 22 minutes, 24 seconds for district covered in FY26 was 469 last year it was 448. 22:31 22 minutes, 31 seconds Okay. So there is a seasonality is what you're saying. I mean even this data that you are providing I mean on a quarteron quarter 22:38 22 minutes, 38 seconds how I'm not able to understand how you figuring out seasonality which which data point so I am looking at the data point you 22:46 22 minutes, 46 seconds know where you know the number of SKUs handled you know in FI25 you know is basically 80,600 22:54 22 minutes, 54 seconds the number of retail you know retailers is 95,300 and when I'm coming to the first quarter it shows the retailers 23:01 23 minutes, 1 second comparing with full year with a quarter Okay, if you look at just quarterly numbers, you know, okay, because sometimes what happens is that 23:10 23 minutes, 10 seconds you know that same little may not have built in every quarter. 23:15 23 minutes, 15 seconds So it will get captured in the full year but it may not get captured in that particular quarter in which we are not building right. So you look at quarter 23:21 23 minutes, 21 seconds to quarter. So if I look at last year quarter 1 uh FY25 we have 60,000 customers 23:30 23 minutes, 30 seconds in uh in quarter one of this year we have 71,000 customers. That's the more like toike comparison. 23:37 23 minutes, 37 seconds Sure. Sure. Sure. And with respect to you know understanding the cost I think one clearly on a year-on-year basis and 23:44 23 minutes, 44 seconds I see there has been a stark improvement in the gross margin and for the reason that you had explained that there has been a salary hike. uh but is it fair to 23:53 23 minutes, 53 seconds understand going forward you're talking about you know uh over 30% growth the rate of change of the salary cost would 24:01 24 minutes, 1 second incrementally start coming down and incrementally that will start growing to your so that is probably something that we should expect today from the next 24:09 24 minutes, 9 seconds three quarters yes you know it's a simple math you know for example you know we had an operating cost of something like 89 crores in this 24:16 24 minutes, 16 seconds quarter right so all the salary increases have already been baked in quarter on okay and my growth is close 24:24 24 minutes, 24 seconds to 10 11% sorry 9% operating cost right my revenue growth target is 30% for the full year right but on a quarteron 24:33 24 minutes, 33 seconds quarter basis my revenue growth is only 5%. So this 5% will you know expand to 24:39 24 minutes, 39 seconds to 30%. But my entire cost increase has already been baked in quarter one. 24:46 24 minutes, 46 seconds Sure, sure. And if I just go through that probably you will exit your fourth quarters if I just extrapolate this by about four anywhere between four to four 24:54 24 minutes, 54 seconds and a half which is why for the full year you will basically I mean next three quarters has to be between that. 25:01 25 minutes, 1 second Sure. Sure. And you know with respect to you know the acquisition I think uh you know as you had you know talked earlier 25:08 25 minutes, 8 seconds that there is going to be part growth you know from you know your acquisition and partly from your you know existing business. Just to understand from a 25:16 25 minutes, 16 seconds longerterm perspective as the pace catches up you know what is your thought process with respect to you know the rate of change of acquisition that you know has been very healthy till now. 25:27 25 minutes, 27 seconds So rate of acquisition will go down in future you know in next 2 three years the rate of acquisition will go down because we will not need so many I mean 25:35 25 minutes, 35 seconds we would have penetrated uh a good part of India we would we would have expanded into various product segments. So the 25:42 25 minutes, 42 seconds need the or inorganic need will go down right. So today the inorganic is contributing almost 15 16%. On our 25:51 25 minutes, 51 seconds growth right so in future this 15 16% growth will taper down the organic growth will continue. 25:59 25 minutes, 59 seconds Perfect. But the cash flows will be more robust right because in that case your acquisition you know the capex that goes into it that will not be required. So to 26:07 26 minutes, 7 seconds that extent your cash generation ability will increase substantially. 26:10 26 minutes, 10 seconds Yes. The idea is that you know we should be uh you know cash flow positive on the operating cash flow. So whatever operating cash flows we generate you 26:19 26 minutes, 19 seconds know that would give us the ability to acquire more in future. 26:23 26 minutes, 23 seconds As of now we are using IPO funds to do that. 26:28 26 minutes, 28 seconds Perfect. And I mean uh just one final question before I join back. What would be the you know OCF say in the last u 26:36 26 minutes, 36 seconds you know second half of last year and first quarter of this year just some color on that it was positive last uh last 6 months 26:45 26 minutes, 45 seconds was good good positive but as I told you you know we are working on multiple projects on in uh you know on working capital reduction 26:53 26 minutes, 53 seconds and I believe you know among all the levers that's the lower hanging lever for us because you know we can at this scale we can definitely optimize much 27:01 27 minutes, 1 second more on working capital Today 66 days I'm you know earlier we had given a target of you know getting 10% reduction or 60 days in 2 years. Now we are saying 27:09 27 minutes, 9 seconds that by end of this financial year we should be able to reach there. 27:15 27 minutes, 15 seconds Sure sir. Sure sir. Thanks a lot. I join back with you. 27:20 27 minutes, 20 seconds Thank you. The next question is from the line of Sajal Kapoor from Antifragile Thinking. Please go ahead. 27:27 27 minutes, 27 seconds Yeah thanks for taking my questions. Um uh first question is has antos approach to uh integrating acquisitions 27:35 27 minutes, 35 seconds fundamentally evolved um between let's say 201819 uh versus last 12 months. 27:43 27 minutes, 43 seconds Yes definitely we have been learning from uh from our experience over last four five years. 27:52 27 minutes, 52 seconds Would you be able to share one or two examples of that learning please? 27:56 27 minutes, 56 seconds No. Now earlier you know we were you know taking a much slower approach in integrating now we are taking a more aggressive approach in integrating. So 28:04 28 minutes, 4 seconds you know from maybe we changed the the ERP systems or technology systems from day one earlier we were waiting a much longer time to you know change those 28:12 28 minutes, 12 seconds things because we wanted the existing sellers to we didn't want to disrupt the business so much and we wanted a slower integration. Now we are much uh much 28:21 28 minutes, 21 seconds ahead in in in that. Our selection criteria has changed quite a bit now versus earlier. Now we are not looking 28:28 28 minutes, 28 seconds at very small scale acquisitions. We are looking we are looking at you know the targets from multiple angles as compared to how we used to look at it in in the 28:37 28 minutes, 37 seconds first two years of our existence and that's why you see that most of the acquisition that we have done over last 12 months have all been margin operative. 28:49 28 minutes, 49 seconds Yeah, sure. And just to follow up, I mean, how do you motivate your team and maintain, you know, a a productive 28:56 28 minutes, 56 seconds company culture amid this rapid organic and inorganic expansion? 29:03 29 minutes, 3 seconds This team has been around for a long time. You know, most of the senior members of the of this team have been around for last six years. You know, uh 29:10 29 minutes, 10 seconds they know they have we have grown together as you know, as a team. uh there are various kind of you know 29:18 29 minutes, 18 seconds reward mechanisms in place including ESOPs and all that. So you know this is an exciting business where would you find so many businesses where we going 29:27 29 minutes, 27 seconds like 30% year on year with uh you know you know 10 acquisitions in a year being done. So it's a great learning experience also for a lot of people. 29:38 29 minutes, 38 seconds Sure it is. Yeah. And lastly um what is the investment roadmap for your proprietary technology platform over the 29:44 29 minutes, 44 seconds let's say next one to three years we have already built lot of technology you know to be honest we have we are one 29:52 29 minutes, 52 seconds of the few companies that have developed our own ERP systems you know which can be customized which can be integrated with Facebook can be integrated with WhatsApp which can be integrated with 30:00 30 minutes any other you know social media platform so all these you know ERP we have built our own apps customerf facing apps uh we 30:08 30 minutes, 8 seconds are also working on a health tech platform where you know we should be able to integrate directly with the retailer systems. So all these you know 30:16 30 minutes, 16 seconds tech investments have been made in the past you know we don't see much significant investments in tech going forward it's already in place it just 30:24 30 minutes, 24 seconds needs to be you know utilized more or capitalized more. 30:29 30 minutes, 29 seconds So, so, so, so that means that as we start monetizing the the tech, so investments have been made. It's all 30:37 30 minutes, 37 seconds upfront pain that we have already endured. So, the benefits uh should start flowing in incrementally as we go 30:44 30 minutes, 44 seconds um into this fiscal later off of this fiscal and maybe next one. 30:48 30 minutes, 48 seconds Yeah. For example, if I'm saying that you know I'm targeting 10% reduction in working capital days, tech will play a very strong role in that. And you know 30:57 30 minutes, 57 seconds without that test we wouldn't have been able to do it or we won't be able to do it. 31:03 31 minutes, 3 seconds Absolutely. Absolutely. That's very helpful. Thank you so much. All the very best. 31:09 31 minutes, 9 seconds Thank you. The next question is from the line of Ax Ma from 7 rivers holding. Please go ahead. 31:16 31 minutes, 16 seconds Hello sir. Am I audible? Yes. 31:20 31 minutes, 20 seconds So uh one question on the revenue part itself sir. You said that around 230 Kores of acquisition is what is included 31:28 31 minutes, 28 seconds in the current quarter you know how should we then look at the 15 that implies that you know around 7% growth 31:35 31 minutes, 35 seconds uh is the organic so how should we look at that and the 15% number uh I mean if you can just help me make sense of the revenue growth set 31:44 31 minutes, 44 seconds so I think you give different we said 180 crores is included in organic right 31:50 31 minutes, 50 seconds so uh a uh so So the way it is is so there were certain acquisitions that 31:57 31 minutes, 57 seconds were done in Q1 FI25 and certain revenue numbers were reported out of it into our financials 32:06 32 minutes, 6 seconds of Q1 FI25 and some of it which is the pre-acquisition revenue whatever was that value is goes into the inorganic 32:14 32 minutes, 14 seconds and whatever is excess over what we have already reported in the previous year goes into organic. So you will have to look at those numbers in a overall 32:23 32 minutes, 23 seconds basis. If you try to split between what went into organic inorganic that's probably why you are getting a different number in your calculation. 32:33 32 minutes, 33 seconds So uh this just to yeah just to confirm you mean to say that you know some part of the uh 32:40 32 minutes, 40 seconds acquisition revenue that has come in this quarter 1 uh some part of that was also there in quarter 1 FI25. 32:47 32 minutes, 47 seconds Exactly. Exactly. Yes. 32:50 32 minutes, 50 seconds Okay. Uh secondly, I wanted to ask if uh if we exclude the amount of annual increment that is given to the employees 32:58 32 minutes, 58 seconds this quarter, what would be the basis point impact on our margins? You know from 3.6 it would have been 20 basis points. 33:07 33 minutes, 7 seconds 20 basis points. Okay. Yeah. 33:11 33 minutes, 11 seconds and uh you know the acquisition that we've done last year in FI25 around 500 crores that we booked uh you know what 33:18 33 minutes, 18 seconds kind of growth that we'll see on these acquisitions you know in in this year uh similar age what we are talking about 33:27 33 minutes, 27 seconds you know 15% plus 15% plus for the year thirdly sir uh if 33:34 33 minutes, 34 seconds you can help us understand uh you know this this uh tax rate for this quarter was quite low at 17% said how should we look at this for the full year as well? 33:44 33 minutes, 44 seconds Uh so ashhat tax rates for the full year will also be in the similar range because we are taking some tax 33:52 33 minutes, 52 seconds efficiency measures uh which is actually helping us improve our uh uh the the tax. So the annual numbers will also be somewhat in the similar range of 17 18%. 34:05 34 minutes, 5 seconds Okay. And this employee cost number that we've gotten for the year 58 crores uh you know some some 2 three% quarteron 34:13 34 minutes, 13 seconds quarter upside on that is what we can take as the number for the full year right you can yeah so you know part of the manpower 34:21 34 minutes, 21 seconds cost is fixed you know a certain part is also variable which is mostly sales commission and all that you know so that 34:28 34 minutes, 28 seconds will change in proportion to sales but the rest of the cost will remain fixed okay but we can roughly take you know 34:36 34 minutes, 36 seconds multiply it by four and you know put some upside to that as the full year number. Yes. Yes. 34:45 34 minutes, 45 seconds Okay. 34:47 34 minutes, 47 seconds Uh and just one confirmation sir uh you said that we are targeting 500 crores of acquisition this year. Yes. 34:55 34 minutes, 55 seconds Oh thank you sir. I'll come back. 34:59 34 minutes, 59 seconds Thank you. The next question is from the line of prince from Pink wealth. Please go ahead. Hello. 35:07 35 minutes, 7 seconds Yeah. 35:08 35 minutes, 8 seconds Yeah. Hi sir. Thank you for taking my question. Uh so the first question is in this quarter uh there is no growth in our hospital customers. So if you can throw some light on it. 35:19 35 minutes, 19 seconds No I mean we already at almost uh what 3,000 plus hospital customers right? 35:29 35 minutes, 29 seconds 2,500 plus right? 35:33 35 minutes, 33 seconds Yeah. So uh so there were no addition in the hospital customers. It was similar to the last quarter. 35:39 35 minutes, 39 seconds I mean see at the end of the day you know u you know we are getting more wallet share from from the same 35:47 35 minutes, 47 seconds hospitals even you know lot of hospitals are getting consolidated also right so it's like you know uh you know they are 35:55 35 minutes, 55 seconds becoming part of one group so it's getting reported as you know one single customer. 36:01 36 minutes, 1 second Okay. Uh so if you can share the increase incremental wallet share from these hospitals as well as those uh you know distributors. 36:09 36 minutes, 9 seconds So we are not giving you know kind of revenue split between hospitals and uh and uh you know uh what do you call in 36:18 36 minutes, 18 seconds uh hospitals andarmacies right it's sometimes very difficult to get the data out also because lot of you know hospitals have opies IPDies sometimes 36:27 36 minutes, 27 seconds OPDies are outsourced to third party get counted as uh retail pharmacy while actually it should be counted as you 36:34 36 minutes, 34 seconds know you know pharmacy inside a hospital so you know the data classification is not very very you know accurate I would 36:41 36 minutes, 41 seconds say in hospitals right uh so no in terms of wallet share 36:49 36 minutes, 49 seconds incremental wallet share not the revenue split between the hospitals and retailers so how will you calculate the wallet share the wallet share you will 36:58 36 minutes, 58 seconds calculate by dividing the revenue by number of customers right and compare it over a period of time mhm 37:06 37 minutes, 6 seconds isn't it because what you going to get an aggregate wallet share or let's say average wallet share. You won't get hospital by wallet share. 37:14 37 minutes, 14 seconds So in some hospitals you might have 30% wallet share. In some hospital you might have 10% wallet share. So what you would get is an average wallet share. Not even 37:23 37 minutes, 23 seconds wallet share you will get because you will not know what is the total purchase of that hospital. You will only get a revenue per hospital. 37:31 37 minutes, 31 seconds Our understood. 37:32 37 minutes, 32 seconds Yeah. Uh and also in terms of acquisitions currently we have four in pipeline. So other than these four uh you know acquisitions pipeline what 37:41 37 minutes, 41 seconds opportunities do we see for merger and acquisitions. 37:44 37 minutes, 44 seconds So we are you know continue we are evaluating couple of more deals hopefully you know in next one month we should be announcing that the work is going on as we speak. 37:56 37 minutes, 56 seconds Okay and uh for this quarter uh you know EITA margin was 3.6% and uh we have 38:03 38 minutes, 3 seconds target for 26 like 4% plus. So uh apart from so yeah so apart from operating leverage 38:10 38 minutes, 10 seconds what uh procurement efficiency and yeah for like uh uh you know procurement efficiency as well as other metrics 38:17 38 minutes, 17 seconds product mix like uh they are how how they will contribute for this uh for this financial year. 38:24 38 minutes, 24 seconds So this year what we have said is 4% plus aa margin right and you know at today quarter one the gross margins are 38:32 38 minutes, 32 seconds at 9.9% right. So for the rest for the incremental aida large part of it will flow through operating leverage only because the all the costs are there 38:40 38 minutes, 40 seconds while you know revenue is only 5% baked in in the quarter one. So large part of it will come through uh operating 38:49 38 minutes, 49 seconds leverage itself whatever incremental we get on gross margin will be an additional uh over and above our targets. 38:57 38 minutes, 57 seconds Okay. So understood and u and just for the last part like what was the contribution from medical devices for this quarter medical device around 4 5%. 39:10 39 minutes, 10 seconds Okay 4 5%. Yeah. 39:12 39 minutes, 12 seconds So u and how how do you locate for the going forward for this year? 39:17 39 minutes, 17 seconds So we are more aggressive on medical devices now you know it's growing well it has a higher margin structure also couple of deals that we are evaluating 39:25 39 minutes, 25 seconds are in this space itself. So this share will grow. 39:30 39 minutes, 30 seconds Okay sir. Yeah. Thanks for answering all the questions. 39:34 39 minutes, 34 seconds Thank you. The next question is from the line of Shiv Kumar Prajapati from Ambbit Investment Advisors. Please go ahead. 39:41 39 minutes, 41 seconds Yeah. Uh hi sir. Uh thanks for taking my question. So my first question is uh I noticed that there are two steps step down subsidies in our you know list of 39:50 39 minutes, 50 seconds subsidies. So just want to understand why we are you know looking at this route and not subsidiary route. Second 39:57 39 minutes, 57 seconds one uh is like we have a we had very uh low x rate for this quarter. So uh what is the reason behind it? 40:07 40 minutes, 7 seconds Sorry I didn't get your question very well. Uh so sir in our list of subsidiaries we 40:14 40 minutes, 14 seconds have two step down subsidiaries. So uh usually to uh we we take uh uh uh like 40:21 40 minutes, 21 seconds we acquire the companies as a subsidiary and not route it through a step down subsidiary. So just want to understand uh uh what change does this uh makes us? 40:36 40 minutes, 36 seconds Yeah. So when you're referring to step down subsidiaries uh can you tell me which ones you are referring to as step down? 40:44 40 minutes, 44 seconds Okay. Uh just give me a minute. I'll just open I I think you're referring to CPD Pharma 40:50 40 minutes, 50 seconds and Chetna Pharma uh distributors if I'm not wrong. Uh because basically we are looking to merge a few entities to look 40:59 40 minutes, 59 seconds at it from a operational efficiency. We are doing an operational uh pilot on if we merge the entities how does it work 41:07 41 minutes, 7 seconds whether it helps us improve our overall operations and stuff. So there are two subsidiaries which we are merging with 41:14 41 minutes, 14 seconds one of our existing subsidiaries. So in this quarter the shares of those subsidiaries were sold from Entro to 41:21 41 minutes, 21 seconds another subsidiary of Entro and we will be merging those subsidiaries. That's the reason you're seeing a stepped down subsidiary currently. 41:29 41 minutes, 29 seconds Yes. Yes. We are in the process of that. 41:32 41 minutes, 32 seconds So so that is the reason you are seeing step down otherwise typically acquisition all our acquisitions happen as a direct subsidiary of enter. 41:42 41 minutes, 42 seconds Okay. Got it. So great. Answer my next question. The second question on the taxation, we are also working on certain 41:49 41 minutes, 49 seconds uh tax efficient way of funding our subsidiaries uh which will help us to 41:56 41 minutes, 56 seconds improve our uh overall effective tax rate. The reason being that we will be 42:03 42 minutes, 3 seconds able to utilize the earlier tax losses and set off our overall tax. That's that's the reason you're seeing a lower 42:10 42 minutes, 10 seconds effective tax rate. And uh we believe our tax rate for the full year will be in the same range. 42:18 42 minutes, 18 seconds Okay. So 16% like 16 18 16 17% is what it we expected to be for the full year as well for FI26. 42:27 42 minutes, 27 seconds All right sir. And for my next question is on the uh gross margin. I mean uh in from last quarter we have been existing 42:34 42 minutes, 34 seconds 3% of uh gross margin due to change in contract and uh uh uh uh just want to 42:41 42 minutes, 41 seconds confirm whether this is for a single client only and do we expect any such changes in coming uh coming uh period? 42:50 42 minutes, 50 seconds Uh this is for a single client only to answer your specific question and uh so 42:57 42 minutes, 57 seconds far we do not anticipate uh any uh any any other major impact as it stands today we don't anticipate any other uh 43:06 43 minutes, 6 seconds major impact of the same nature currently. 43:09 43 minutes, 9 seconds So how the how does this change you know uh helps the other entity or uh like uh 43:18 43 minutes, 18 seconds obviously it because of this change our uh consolidated growth rate you know uh looks like a bit uh down but how does 43:26 43 minutes, 26 seconds this change uh uh helps the other entity that we made the change in contract? 43:33 43 minutes, 33 seconds No it was not a you know change that was driven by us. It was more driven by the client right. So uh you know you know 43:41 43 minutes, 41 seconds there are various kind of services that you can provide either it's a full recogni revenue which will impact full revenue recognition or we say that we just provide you the services we'll 43:50 43 minutes, 50 seconds build you for the services and not you don't have to buy and sell from our books. So so this is what they wanted so this is 43:57 43 minutes, 57 seconds what we did and we don't see any other contract right now existing contract that can go through this route. Okay, 44:04 44 minutes, 4 seconds great sir. And so my last question is uh did we do any kind of assessment I mean benchmarking with the global distributors uh say cost acquisition uh 44:13 44 minutes, 13 seconds uh customer acquisition cost or you know cost to serve per order. If you if you would provide this uh data points that 44:20 44 minutes, 20 seconds would be helpful see all the if we compare you know with US the market is completely different. 44:27 44 minutes, 27 seconds If we compare with U you know Europe the market will be very different. Every country is very unique. India is I'm telling you in pharma itself is such a 44:34 44 minutes, 34 seconds unique country you know in which country you have like you know branded generic such a big proportion of of pharma 44:42 44 minutes, 42 seconds industry right either it's a you know most of the geography either it's research molecule or patented molecules 44:49 44 minutes, 49 seconds and then you have generics India has three category four category uh you know patented then branded generic then trade 44:57 44 minutes, 57 seconds generic and then generic generic no country has a structure like India you know no country has you know the 45:05 45 minutes, 5 seconds complexity of the geography that we have you know it's like from such a hu entire US has more not 45:12 45 minutes, 12 seconds more than 80 90,000 you know pharmacies we have more we have a customer base which is larger than the total you know 45:20 45 minutes, 20 seconds population of pharmacies in US so not be a good idea to benchmark with them we'll have to create our own 45:27 45 minutes, 27 seconds benchmarks and measure against our own benchmarks Understood sir. Thank you so much sir and best of luck. 45:36 45 minutes, 36 seconds Thank you. The next question is from the line of Eshmoura from Swy Research. Please go ahead. 45:42 45 minutes, 42 seconds Hi sir. Just a followup question. Are we seeing any uh like do we have any view on the market creation of weight loss 45:50 45 minutes, 50 seconds drugs in India and are we seeing any impact on our revenues also? 45:54 45 minutes, 54 seconds Uh ishmo we are not able to hear you clearly. Can you please repeat your question and be a little slow? Hi sir, am I audible better? 46:03 46 minutes, 3 seconds Yeah. 46:04 46 minutes, 4 seconds Yes, I I was asking are we seeing any market creation happening in the weight loss drugs in India and uh is our like do we see any positive impact from growth from there also? 46:15 46 minutes, 15 seconds Yeah. So you know there are two weight lo weight loss drugs launched you know recently which is one is Monaro and the second is Vikovi. So and we are 46:23 46 minutes, 23 seconds distributors for both these companies you know. In fact uh you know we are doing significant sales for uh for LI in 46:30 46 minutes, 30 seconds India right that's it and any idea on how the how do you see the market evolving in 46:38 46 minutes, 38 seconds India itself over the next couple of years I think next year in FI26 uh next calendar year you will have a lot of generic companies coming in semagloized 46:47 46 minutes, 47 seconds market right so that should expand the market significantly right that's it for my side thank 46:56 46 minutes, 56 seconds Thank you. The next question is from the line of Axhat Meta from Seven Rivers Holding. Please go ahead. 47:03 47 minutes, 3 seconds Uh yes sir. Just wanted to ask if you can share the cash uh balance on the books right now. 47:12 47 minutes, 12 seconds Uh yeah. So we have about 365 crores of uh uh cash on our books currently. You 47:20 47 minutes, 20 seconds will not see it all uh in one place. So it's it's it it will be in different line items because the way the investments are done we have about 365 crores. 47:31 47 minutes, 31 seconds Okay. Thank you. 47:35 47 minutes, 35 seconds Thank you. The next question is from the line of DVY from FCOM family office. Please go ahead. 47:42 47 minutes, 42 seconds Yeah. Hi sir. Thanks for taking my question and uh I'm new to the company so my apologies if there are some basic 47:49 47 minutes, 49 seconds questions on that. Uh so so firstly uh if you look at this quarter so our inorganic growth was around 13% compared 47:56 47 minutes, 56 seconds to 18% in the previous quarter. So what were the key factors driving this reduction sorry no our growth rate on organic 48:05 48 minutes, 5 seconds growth this year was this quarter is higher than the previous quarter. 48:09 48 minutes, 9 seconds Uh okay because in the PPT if you see uh the consolidated growth was around 28% and the uh enter organic growth was 15%. 48:17 48 minutes, 17 seconds So the balance would be in organic growth right? Inorganic. Yes. Correct. So that's 15 13%. 48:25 48 minutes, 25 seconds So so here uh uh the way I'll tell you uh here what is happening is you are looking at 28%. 48:35 48 minutes, 35 seconds The the like to like growth is 31%. And out of 31% 15% is organic and 16% is inorganic. 48:44 48 minutes, 44 seconds So after that 3%. 48:46 48 minutes, 46 seconds Yeah, after adjusting that 3% because you need to look at like to like. 48:51 48 minutes, 51 seconds If you look at slide number six of our investor presentation, you will see the break up between organic inorganic 49:00 49 minutes on slide six quarter and quarterly princip. 49:05 49 minutes, 5 seconds Yeah sir. So got your point. And uh secondly on the acquisition side so considering that our primary objective of acquiring smaller distributors is to 49:13 49 minutes, 13 seconds expand uh geographic presence and increase the number of SKOs's. So if we were to achieve the same organically uh 49:20 49 minutes, 20 seconds what would be the estimated time and uh capital investment required. 49:25 49 minutes, 25 seconds See the only thing in terms of time it could be anywhere. It could be two years, three years, right? uh or it could be even longer than that in terms 49:34 49 minutes, 34 seconds of the the the good question is you know it's it's buy versus build right so what is the extra that you are paying to buy 49:41 49 minutes, 41 seconds as compared to build okay and what we are paying in goodwill is the only amount which is which is you know paying 49:49 49 minutes, 49 seconds over and above what we are physically acquiring the assets because those assets even if we build organically we would have to put right so only the 49:57 49 minutes, 57 seconds premium over and above the net assets that you acquiring is what uh you know is your cost of buying versus building 50:04 50 minutes, 4 seconds it yourself right I think our total goodwill will be what in our balance sheet like less than 500 cr yeah yeah about 400 50:11 50 minutes, 11 seconds so let's say you know a revenue of 6,000 crores has been built with you know let's say 400 500 crores of uh of 50:20 50 minutes, 20 seconds goodwill premium that was paid so uh so as we are on the goodwill side so I just wanted to know uh so goodwill 50:28 50 minutes, 28 seconds right now as on FI20 25 with 16% of the total assets. So would it be prudent to write it off entirely uh given that this could potentially improve our uh return ratios? 50:39 50 minutes, 39 seconds Yeah. But then it's you know it's it's tested for impairment every year. 50:44 50 minutes, 44 seconds See under you need to test uh goodwill for impairment. Under the accounting standard there was the concept of 50:52 50 minutes, 52 seconds goodwill being amortized over a 5 to 10 year period. But under India under which we are covered the India standards 50:59 50 minutes, 59 seconds require that we test the goodwill for impairment at every financial period. So amortization right? 51:07 51 minutes, 7 seconds There's no amotization only if at all there is any impairment then that is taken uh into the books but otherwise it's only impairment uh only impairment 51:16 51 minutes, 16 seconds testing that needs to be done. No amortization. 51:19 51 minutes, 19 seconds And lastly sir uh there's a money control article dated 30th May 2025 which reports that uh you know servier uh which is a French drug maker which is 51:28 51 minutes, 28 seconds a French drug maker. So it terminated uh the exclusive distribution se agreement with antro after a intervened over 51:36 51 minutes, 36 seconds monopoly concerns. So could this be a similar thing going forward as well in uh our acquisitions? 51:43 51 minutes, 43 seconds No no let let me first clarify that article because we never gave any response to that article. First of all, Servier, we are exclusive partner for 51:51 51 minutes, 51 seconds them to promote certain of Servier brands in India like we are for Abbert or like we are for Ro, right? So that 51:59 51 minutes, 59 seconds contract was never terminated. What was the point of AIC was that you know why Entro is only supplying to all the 52:08 52 minutes, 8 seconds stockies. So what was agreed that okay ENTO uh sorry Servier CFS can also supply to the to the same stock you know 52:16 52 minutes, 16 seconds instead of Enter but marketing and promotion is still with us exclusively. 52:22 52 minutes, 22 seconds So sorry go ahead sir. 52:26 52 minutes, 26 seconds So that survey partnership has never been terminated in terms of marketing and promotion. 52:33 52 minutes, 33 seconds So, so right now uh we have three uh agreements right uh rush abort and serve for for pharma demand generation. Yes. 52:43 52 minutes, 43 seconds For farmer marketing. Yes. 52:45 52 minutes, 45 seconds For farmer marketing. Right. And the margin for this would be promotion margins are different than distribution margins. Promotion margins are higher but the cost is also there. 52:56 52 minutes, 56 seconds So we are putting around 150 people to promote and market abert and survey drugs. 53:04 53 minutes, 4 seconds Okay. And the incremental margin that we get here is uh like for example if we want to compare the margins here. So how 53:10 53 minutes, 10 seconds much business point upsided that margin is a confidential information between us and the company right? So it is difficult for us to disclose in a public forum. 53:20 53 minutes, 20 seconds Sure. Sure sir. Thanks. I got I get that point. Thanks. Thanks a lot. 53:27 53 minutes, 27 seconds Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to the management for closing comments. 53:37 53 minutes, 37 seconds Yeah, 53:38 53 minutes, 38 seconds [Applause] 53:42 53 minutes, 42 seconds I would like to thank everyone for joining this call. I hope we have been able to address all your queries. For any further information, kindly get in 53:50 53 minutes, 50 seconds touch with SGA, our investor relation advisors. Thank you once again and have a great day. 53:57 53 minutes, 57 seconds Thank you. On behalf of Monach Networks Capital Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.