Fredun Pharmaceuticals Ltd — Q3 FY26

Fredun Pharmaceuticals Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=JDuiv3NzcGY Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Q3 and 9 months FI26 results conference call of Freedom Pharmaceutical Limited hosted by Kieran 0:10 10 seconds Advisers Private Limited. As a reminder, all participants line will be in listenon mode and there will be an opportunity for you to ask question 0:18 18 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:26 26 seconds your touchstone phone. Please note that this conference has been recorded. I now hand over the call to Miss Saki Mangiara from Kirin Advisor Private Limited. 0:36 36 seconds Thank you and over to you ma'am. 0:40 40 seconds Good day everybody. On behalf of Ker Advisor, I welcome you all to the Q3 and 9 months FY26 earnings conference caller 0:48 48 seconds Freeden Pharmaceuticals Limited. We have today with us Mr. Freden Mador managing director of the company along with members of the management team Mr. 0:57 57 seconds Rakkes Mr. Gagardan Mr. concern before handing over the call to freedom sir to address your questions let me briefly 1:05 1 minute, 5 seconds walk you through the company's performance for the quarter and 9 months India FY26 leading the Q3 FY26 total income stood 1:14 1 minute, 14 seconds at 160.92 K registering a strong growth of 57% yearonearida 1:22 1 minute, 22 seconds came in at 26.34 kores reflecting a robust growth of 99% year on 1:29 1 minute, 29 seconds IDIA margins improved to 16% expended by 384 basis point. Net profit for the 1:38 1 minute, 38 seconds quarter stood at 10.48 kados nearly doubling with a growth of 96% yearon year. Net profit margin improved to 7% while EPS stood at 22.19. 1:51 1 minute, 51 seconds For the 9 month period, total income reached 426 crores, marking a 48% yearon-year 1:59 1 minute, 59 seconds growth. IIDA stood at 65.66 kores up by 74% yearonear while Ibida margin 2:07 2 minutes, 7 seconds improving to 15% and expansion of 237 basis point. Net profit increased to 2:15 2 minutes, 15 seconds 26.98 crores delivering a strong 96% growth year on year. Net profit margin 2:22 2 minutes, 22 seconds improved to 6% and EPS stood at 57.13 rupees. Overall the company has 2:29 2 minutes, 29 seconds demonstrated strong revenue growth along with meaningful margin expansion and improved profitability during both the 2:36 2 minutes, 36 seconds quarter and 9 months period. With that brief overview, I would now like to hand over to feed and sir for taking your 2:45 2 minutes, 45 seconds questions. We can now open the floor for Q&A. 2:52 2 minutes, 52 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 3:00 3 minutes telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 3:07 3 minutes, 7 seconds requested to use answers while asking a question. Ladies and gentlemen, in order to ensure that the management is able to 3:14 3 minutes, 14 seconds address questions from all participants in this conference, please restrict your question to one per participant. Should 3:22 3 minutes, 22 seconds you have a follow-up question, please rejoin the queue and also please note do not ask repetitive questions. Ladies and 3:29 3 minutes, 29 seconds gentlemen, we will wait for a moment while the questions. 3:46 3 minutes, 46 seconds The first question is from the line of Abij from AJ Capital. Please proceed. 3:53 3 minutes, 53 seconds Hi, good afternoon. Am I audible? Yes. Yes. Are you audible? 4:01 4 minutes, 1 second Right. Perfect. Uh good afternoon to the good afternoon to Mr. President. Uh I had a two-part question. Uh the first 4:09 4 minutes, 9 seconds part of that question was that uh given the growth that you're seeing and obviously it is higher than what you had anticipated. uh do you see any immediate 4:17 4 minutes, 17 seconds requirements of funds? Obviously you've done a few IP and raised some funds but uh uh and I and you said that you know the working capital cycle improvement 4:26 4 minutes, 26 seconds will take some time so I'm sure that cash generation might be chock the block for the short term uh but in the next 12 4:34 4 minutes, 34 seconds to 18 months do you think that the funds at hand are sufficient for the kind of growth that uh fraun has seen or do you think that there will be another round 4:42 4 minutes, 42 seconds of fund raise that would be required okay uh That's both both part of your questions. Uh 4:50 4 minutes, 50 seconds yeah sorry and the second part is that uh given uh you know the growth that you're seeing and obviously uh the new parts of the business the nuclear and 4:58 4 minutes, 58 seconds the petare must be you know contributing handsomely to the growth. Uh I think that uh the next two to three years obviously the kind of guidance that you 5:06 5 minutes, 6 seconds have given seems to be a bit conservative. So can you just throw some light on that also? That's it. Thank you. 5:12 5 minutes, 12 seconds Sure. Sure. Uh so addressing your first question uh we uh 5:19 5 minutes, 19 seconds we are expanding quite rapidly. Uh we are right now also increasing our production capacities uh at our current 5:27 5 minutes, 27 seconds plants and we have also added new um partner facilities where we ourselves 5:34 5 minutes, 34 seconds manufacture across various locations. Uh so we have around 37 of those. Uh 5:41 5 minutes, 41 seconds currently the way we are anticipating that uh the new new brands which we have launched in the last 2 3 years are 5:48 5 minutes, 48 seconds suddenly taking a lot of traction. The growth that we have seen is because uh many of our products across various 5:55 5 minutes, 55 seconds brands that we have launched uh in various segments that we have launched have picked up quite well and are doing 6:03 6 minutes, 3 seconds very well in the pockets that we have uh we have launched them. So 6:09 6 minutes, 9 seconds yes uh we do not envision any sudden need of funds uh in the next uh 12 to 18 6:16 6 minutes, 16 seconds months. Uh business is dynamic uh we are growing. If there are a need of funds maybe after 18 months or 24 months or 13 6:25 6 minutes, 25 seconds months we might uh look into it. If we have uh if we have uh to raise funds uh 6:33 6 minutes, 33 seconds for a different division or something we might uh there is nothing on the table uh right now and there is no immediate 6:40 6 minutes, 40 seconds need for any funds for that. Um uh the second part of your question was uh if 6:48 6 minutes, 48 seconds if you can if you can uh yeah sir just wanted to understand that given the growth that we have seen in the company and obviously ah the conservative numbers if you have 6:56 6 minutes, 56 seconds seen my if you have seen my if you have seen my PSD guidances from 2016 onwards every single guidance has been conservative. 7:06 7 minutes, 6 seconds Um I uh if uh because I do not um you know believe in you know just giving a 7:13 7 minutes, 13 seconds number and then if I overachchieve the number I'm comfortable uh I don't want to be ever in a position where I'm 7:20 7 minutes, 20 seconds underachieving a number and uh we have to take into factor market situations. 7:26 7 minutes, 26 seconds We have to take into factor so many of the situations that uh that arise uh on a day-to-day basis. uh it's better to be 7:34 7 minutes, 34 seconds conservative. Our conservative numbers are also robust uh growth. Uh our investors, our partners uh the people 7:43 7 minutes, 43 seconds who believe in us uh need to be in sync with the journey. Uh and uh that is what 7:49 7 minutes, 49 seconds I want. Uh if we overachieve, yes, we might have a better guidance maybe uh next year or or the year later. Uh we are on track to achieving our guidances. 8:00 8 minutes We have taken buffers uh for any unforeseen circumstances that may arise but currently the trajectory on which uh 8:09 8 minutes, 9 seconds multiple of our divisions are going I think we are quite comfortable in overachieving those. 8:16 8 minutes, 16 seconds Perfect. Thank you sir. Thank you for thank you. The next question is from the 8:24 8 minutes, 24 seconds line of British from Lucky. Please proceed. 8:27 8 minutes, 27 seconds Yeah. Hello sir. Just one question in the 9 months what is the growth in the legacy business and the size of the 8:34 8 minutes, 34 seconds legacy business and what is the size of the new age business if you could just give that split for the 9 months. 8:45 8 minutes, 45 seconds Yes. So I I have explained uh this in previous things. I'll I'll again say the legacy business is pegged to grow at 8:54 8 minutes, 54 seconds somewhere around 12 to 18% on I was asking your performance in the 9 months what it has done. 9:05 9 minutes, 5 seconds Yes. Yes. I I I will I will address that. Uh we expect to grow at around uh 12 to 18% year on year for the next 5 to 6 years based on our registration. 9:16 9 minutes, 16 seconds So last year last last year last year our exports our direct exports uh were 9:23 9 minutes, 23 seconds about 118 to 120 crores. Our institutional sales was around 40 9:29 9 minutes, 29 seconds crores. Our uh third party business and uh our tolling business constituted for 9:36 9 minutes, 36 seconds about 100 crores. So on that basis this year we will on the 9 month basis proactively we have grown at around 15% to 20% on that. 9:48 9 minutes, 48 seconds Okay. Can you then tell us what is the size of the uh yeah ma'am can you please rejoin the queue? 9:58 9 minutes, 58 seconds Why hello hello. I'll answer the question. Hello hello hello. 10:05 10 minutes, 5 seconds Yeah yeah yeah. So I I am just I am just uh I just I just told you. So the institutional sales the export business 10:14 10 minutes, 14 seconds and the third party business on last year uh on on that about 110 crores 45 10:20 10 minutes, 20 seconds crores and 90 crores will grow at around 15 to 18% which it has grown. So that number will be somewhere around close to 10:29 10 minutes, 29 seconds that same number as well plus or minus a cr or two. 10:33 10 minutes, 33 seconds No problem. And how much is the size of the new business in the 9 months? How much portion of your revenue is now new business? 10:42 10 minutes, 42 seconds So the remaining the remaining remaining portion of that business is the new age business. So uh this year we are pegged 10:50 10 minutes, 50 seconds this year at at year end closing we are ped to do somewhere around uh 60 crores of our G business around 42 crores of 10:59 10 minutes, 59 seconds our pet care business uh around 26 crores of our uh nutritional business and that uh gives us a head uh runway to 11:08 11 minutes, 8 seconds reach around 600 crores and we are comfortable and uh around 550 570 to 580 crores and we will easily achieve those 11:17 11 minutes, 17 seconds numbers. So the remaining part is the new age business which includes mobility which includes which includes uh 11:24 11 minutes, 24 seconds cosmetics and can you update us on the for the biscuits line the pet biscuits line uh 11:32 11 minutes, 32 seconds what has it started and what revenue it is? 11:36 11 minutes, 36 seconds The pet basic line is doing phenomenally well. Uh uh the revenues and numbers uh right now we are adding more and more divisions right now within and products. 11:47 11 minutes, 47 seconds We started production uh in the second quarter uh of uh actually third quarter 11:54 11 minutes, 54 seconds of uh this year. So this quarter. So the numbers you will start showing in from this quarter and the next quarter onwards. 12:04 12 minutes, 4 seconds Okay. will start showing from next quarter. Sorry. 12:08 12 minutes, 8 seconds No, the numbers will start showing from this this Yeah, this quarter. The numbers will start showing from this quarter. 12:16 12 minutes, 16 seconds Okay. Thank you, sir. Bye. Thank you very much. Thank you. 12:24 12 minutes, 24 seconds Ladies and gentlemen, in order to ensure that management is able to address question from the participant in this conference, please restrict your 12:32 12 minutes, 32 seconds question one per participant. Should you have a follow-up question, please rejoin the queue and also please note do not 12:39 12 minutes, 39 seconds ask repetitive question. The next question is from the line of Syandep from Ureka Stock and Share Broking Services. Please proceed. 12:50 12 minutes, 50 seconds Uh hello. Yeah. Hi. Yes, you're audible, sir. 12:56 12 minutes, 56 seconds Hi, I'm Yes. 13:01 13 minutes, 1 second Uh sir I mean just first of all thank you for giving me the opportunity and congratulations for the good set of 13:08 13 minutes, 8 seconds numbers. I just have something question you have seen jump in finance cost as 13:15 13 minutes, 15 seconds well as other expenses. Can you throw some? 13:20 13 minutes, 20 seconds Yeah any any growing company and rapidly expanding company has uh always requires working capital. So uh certain things plus we had uh changed our banks also. 13:32 13 minutes, 32 seconds So and we have taken new uh machinery loans also. So those all add up to the 13:39 13 minutes, 39 seconds finance cost part of it. This will uh decline over the next uh two to three quarters because uh our fund raise money 13:48 13 minutes, 48 seconds has come in this quarter actually on the third quarter and uh we are going to sizerly use it for working capital as 13:54 13 minutes, 54 seconds planned and also uh we will uh have our own internal cash flows which are 14:00 14 minutes improving as you can see. So uh that's that's it's it's part of uh growing a company. 14:10 14 minutes, 10 seconds Oh yes sir I just want to uh know about margins right uh we have seen uh 14:17 14 minutes, 17 seconds improvement in go gross margin over the last two three years I just want to know 14:24 14 minutes, 24 seconds does this margin sustainable for uh next uh two to three years and what is your output on key cost over the next 14:34 14 minutes, 34 seconds yeah as any number grows uh you guys are in in in the number business any number grows the bigger it gets you cannot 14:41 14 minutes, 41 seconds sustain the same percentage growth. Uh on a smaller number you can sustain a percentage growth. On a larger number it is not possible to sustain a number. 14:50 14 minutes, 50 seconds It's not technically possible. Uh but uh because our numbers are small right now uh in the foreseeable future we are okay 14:58 14 minutes, 58 seconds to see it. There will be a sudden growth in the profits even further in the next two to uh two years because of the 15:09 15 minutes, 9 seconds operational efficiencies coming into our high margin business especially dermacitics especially uh our pet care especially our new line of businesses. 15:20 15 minutes, 20 seconds So uh you might in fact see a further jump in the profits uh coming in the next uh 6 to 7 quarters uh and then it 15:29 15 minutes, 29 seconds might uh have a gradual growth phase from there. So uh uh that's that that's about it. 15:38 15 minutes, 38 seconds Okay. Thank you. Thank you. 15:44 15 minutes, 44 seconds Before we take the next question, a reminder to all participants. Anyone who wishes to ask question may press star and one on their touchstone telephone. I 15:52 15 minutes, 52 seconds repeat participants who wish to ask question please press star and one on their touchstone phone. 15:59 15 minutes, 59 seconds The next question is from the line of digshit Jooshi from whitest stone financial advisor. Please proceed. 16:08 16 minutes, 8 seconds Hello. 16:22 16 minutes, 22 seconds So the participant has been disconnected. Can we move further? Yes, sure. 16:29 16 minutes, 29 seconds The next question is from the line of Gorab Shukla from Finn Investors. Please proceed. 16:36 16 minutes, 36 seconds Uh good afternoon sir and I am audible. 16:40 16 minutes, 40 seconds Yes good afternoon sir. Congratulation for good set of numbers and thank you for giving me 16:48 16 minutes, 48 seconds chance to ask question sir. One thing I want to ask uh that uh that that deal 16:56 16 minutes, 56 seconds has happened India and US and India and EU. 17:00 17 minutes What will be effect of this deal in this our company performance? 17:07 17 minutes, 7 seconds Uh there will be no effect. We don't sell any products to us and neither do we sell any products to Europe. Uh neither do we intend to sell any 17:15 17 minutes, 15 seconds products to uh US. uh the companies which are manufacturing in Europe uh who 17:22 17 minutes, 22 seconds are planning to sell to India will all will still be extremely uh non 17:30 17 minutes, 30 seconds competitive uh into certain of our products that we do. So uh overall the products don't bother us. We are 17:39 17 minutes, 39 seconds predominantly focused for the next decade to manufacture in India for India. So uh it does not affect our our 17:49 17 minutes, 49 seconds our our plans. It does not affect our numbers. Doesn't doesn't affect our uh profitability or our our sales at all. 18:00 18 minutes Okay sir. In last count call sir it is uh it is written that we have outlined 18:07 18 minutes, 7 seconds you have said that in FI29 our revenue will be fully driven by vintage generics and AI 3251 will be come from US 18:16 18 minutes, 16 seconds business that's why I I have is not US it's new age business new age not US 18:26 18 minutes, 26 seconds 51% of our business will come from new age business. Okay. 18:32 18 minutes, 32 seconds New age business is the brand US written is US. Okay. Thank you. 18:38 18 minutes, 38 seconds Uh maybe it might be a mistake. I uh I will I guess corrected not US business. 18:44 18 minutes, 44 seconds New age business in last transcript US is written. So I watched. Okay. Thank you sir. Okay. Okay. No no. 18:52 18 minutes, 52 seconds Thank you. 18:54 18 minutes, 54 seconds The next question is from the line of Kush from Care PMS. Please proceed. 18:59 18 minutes, 59 seconds Uh hi uh I wanted to understand uh about the seasonality in the business. So generally March quarter is heavy in 19:07 19 minutes, 7 seconds terms of revenues uh whereas margins are lower uh versus normal average. So what would be the reason for the sale? 19:17 19 minutes, 17 seconds See like like all sellers we are selling to uh importers, distributors, 19:24 19 minutes, 24 seconds wholesalers. So like how we have a sale target, they have a purchase target. So 19:31 19 minutes, 31 seconds if you see our numbers, if you see our business from 1995 onwards, our last quarter is always higher. It's it's a 19:39 19 minutes, 39 seconds part of the business that we are in. Uh and uh when you when you have a higher number, you have to give schemes, you 19:48 19 minutes, 48 seconds have to give discounts, uh month end schemes, year end closing schemes. uh each distribution each uh uh retail I 19:57 19 minutes, 57 seconds mean CNS and all those have targets that it 20:10 20 minutes, 10 seconds uh definitely uh people would want to buy more uh it allows our products to penetrate further into the market and it 20:19 20 minutes, 19 seconds allows uh uh our visibility of our products further. The idea of giving a products uh uh in in bulk and sometimes 20:29 20 minutes, 29 seconds giving a slight discount also on it uh allows that uh shelf pay products and the more our products stay on the shelf 20:38 20 minutes, 38 seconds someone else's products is not on that shelf and uh that allows us further growth uh as we go u as we go into a new 20:48 20 minutes, 48 seconds age business uh that seasonality will change uh because we are doing the pet 20:54 20 minutes, 54 seconds care ethical uh marketing and also OTC marketing. We are doing uh cosmetics OTC marketing and dermacitics ethical 21:03 21 minutes, 3 seconds marketing. We are also planning uh specialized ethical marketing we are 21:09 21 minutes, 9 seconds entering into hormones. So uh uh over the next months uh 5 to 6 years uh the 21:17 21 minutes, 17 seconds the the strong uh change in the last quarter will decline. 21:23 21 minutes, 23 seconds I think all quarters will be the same but uh the way our business goes the first quarter is always the weakest the last quarter is always the strongest. 21:33 21 minutes, 33 seconds Got it. Got it. And margins in last two three quarters have been improving. uh what would be the sustainable margin 21:40 21 minutes, 40 seconds that we feel for our current business uh say over the next 1 to 2 years 21:46 21 minutes, 46 seconds uh see anything anything over 5 6% is a great margin at the rate that we are 21:53 21 minutes, 53 seconds growing uh because our top line is growing our margins are also growing margin growth you will see a sudden uh increase after a few quarters once the 22:02 22 minutes, 2 seconds cost efficiencies of the new age brands start kicking in because they are intrinsically higher gross margin 22:08 22 minutes, 8 seconds products 50 60 70% gross margin products but right now we are in the um placement in some places we are in penetration 22:17 22 minutes, 17 seconds some places we are in repeat sales and uh diversifying our folio so oh cost efficiencies once they start hitting in 22:25 22 minutes, 25 seconds it will definitely hit our numbers uh so if you if you see the margins uh I I would say uh what we have right now we 22:35 22 minutes, 35 seconds should consider it as I I said earlier in the All I love being conservative. 22:41 22 minutes, 41 seconds So five six% you mentioned fat market. Yeah that's that's the power. Okay. Okay. 22:48 22 minutes, 48 seconds Yeah. Okay. And uh how do Yeah. Yeah. Please continue sir. 22:54 22 minutes, 54 seconds Yeah. Yeah. So that that that will improve over time as I've explained to you why. 22:58 22 minutes, 58 seconds Yeah. Sure. Sure. Sure. And uh uh so continuing on the answer uh how do you see the trajectory of uh new age 23:05 23 minutes, 5 seconds business from year onward say by FY 2728 how do you see the growth and where do you see the mix 23:14 23 minutes, 14 seconds uh I've said in multiple calls before uh by 2029 2030 uh 51% of the business 23:22 23 minutes, 22 seconds should be from the new age business that's what we are targeting uh we are growing uh because we have smaller numbers right now 20 25% growth in each 23:31 23 minutes, 31 seconds of the divisions uh year on year. Some divisions are growing even faster because they have a smaller base. So uh we are quite comfortable in uh what we 23:40 23 minutes, 40 seconds have. uh when you are launching a product across multiple states uh you cannot uh directly determine uh 5% 23:50 23 minutes, 50 seconds growth and 10% growth and 50% growth because there are a lot of uh uh uh uh challenges that take place uh in 23:58 23 minutes, 58 seconds launching the product. However, we have surmounted those challenges and we have still achieved uh a 20 25 uh% growth 24:06 24 minutes, 6 seconds year on year on the new brand since we've launched it since 2020. So, we are comfortable on that growth path. The vintage business will grow at between 12 to 18%. 24:17 24 minutes, 17 seconds Right. Okay. Got it. Thank you so much, sir. Thank you. 24:22 24 minutes, 22 seconds The next question is from the line of Digshit Doshi from Whiteststone Financial Advisors Private Limited. Please. 24:30 24 minutes, 30 seconds Uh yeah, thanks for the opportunity. So my first question is uh if you can give uh as of December, how much is our inventory, trade receivable and loan? 24:42 24 minutes, 42 seconds Yeah. So those numbers are already uh in in our balance sheet and our things which are declared. Uh inventories are on the same level as the quarter before. 24:53 24 minutes, 53 seconds Uh absolutely same level. and uh trade receivables have drastically uh reduced but they are again dynamic as uh we are 25:01 25 minutes, 1 second into local sales once it goes to the distributor level uh the orders are cyclic you don't you don't send uh we 25:09 25 minutes, 9 seconds are not D2C company so when when in in certain months you will have higher sales certain months you will have lower sales uh in in December I mean in in on 25:19 25 minutes, 19 seconds 31st March if we have to consider in Indian market and at least a 90-day credit period uh in in on on 31st March you will see a 25:27 25 minutes, 27 seconds slightly higher uh data sales. If you see uh on in the first quarter uh you will see lower data sales. Same thing 25:35 25 minutes, 35 seconds happened uh last calendar year also. So this financial year also last year our inventory our receivables were 177 25:43 25 minutes, 43 seconds crores. Uh but uh we received almost 380 crores of receivables till September uh 25:51 25 minutes, 51 seconds 2025. So uh again our receivables went down to around 80 80 85 crores uh even 25:58 25 minutes, 58 seconds after the turnover increasing by 50 to 60%. So uh this is not uh a farmer sales 26:06 26 minutes, 6 seconds is where you have bulk sales and uh you don't have a daily sales in the sense you don't sell everything daily uh on uh 26:14 26 minutes, 14 seconds you per day average it is uh for for 10 days you will have a lot of sales then for 2 three days because of the 26:22 26 minutes, 22 seconds production cycles because the in nature of business uh has this cyclic nature. 26:28 26 minutes, 28 seconds So uh and quarter uh sometimes production times are 2 months, sometimes they are 2 and a half months, sometimes 26:35 26 minutes, 35 seconds they are 1.5 months. So and quarters are sharp three months. So numbers will change quarter and quarter. But if a 26:43 26 minutes, 43 seconds sharp financial analyst will understand the nature of business and seeing the kind of receivables averaged over the 26:50 26 minutes, 50 seconds last two three quarters, they will understand that yes uh the receivables are quite robust and the creditor levels 26:57 26 minutes, 57 seconds are remaining the same and uh the data levels are same plus the inventory is identical to what it was uh last quarter. 27:07 27 minutes, 7 seconds Okay. So so more or less I sorry to turn up sir. No, no, I'm not asking the new question just confir reconfirming. So what you are saying 27:16 27 minutes, 16 seconds that uh the trade receivables uh uh uh and inventory are more or less at similar level of what it was reported in September. 27:24 27 minutes, 24 seconds Yes. Okay. Okay. I'll join back in the queue. Thank you. Thank you. 27:32 27 minutes, 32 seconds The next question is from the line of Lavnish from Blue Ocean Asset Management. Please proceed. Yeah. Hi Fedum. Can you hear me? 27:41 27 minutes, 41 seconds Yeah. Hi. Hi. How are you? 27:43 27 minutes, 43 seconds Very well, thank you. I just have uh one question and one suggestion. Uh my suggestion is that uh please uh you know 27:52 27 minutes, 52 seconds as part of your quarterly earnings uh uh release, please uh you know provide us a breakup of the legacy business and the 28:00 28 minutes the new age business and that's the metric that most investors are actively trying to figure out. Uh the second 28:08 28 minutes, 8 seconds question that I the question that I have is uh the legacy business uh with your current um sort of uh uh establishment 28:16 28 minutes, 16 seconds and cost. Uh what kind of growth can you can you um get in the in the new age business uh and when do you think sort 28:24 28 minutes, 24 seconds of the operating leverage will start to play out? 28:29 28 minutes, 29 seconds Yeah. uh as I said earlier the vintage business that's what I want to call it the legacy business called the vintage 28:36 28 minutes, 36 seconds business and uh that will be growing at around 12 to 18% year on year for the next 5 to 7 years the reason why it will 28:44 28 minutes, 44 seconds grow uh at this percent is because we have about 1 1300 to 1400 registrations in the pipeline 28:51 28 minutes, 51 seconds uh those registrations uh are going to keep on kicking in and they're going to come on new age uh I mean in the new age business the growth is about 20 to 25%. 29:02 29 minutes, 2 seconds uh uh operational uh efficiencies in certain parts certain divisions we cannot launch all states at the same 29:09 29 minutes, 9 seconds time we have to launch Maharashtra then after after say 3 months 6 months we launch say Karnataka then we launch Kerala we can't launch the whole India 29:18 29 minutes, 18 seconds at the same time now Maharashtra will start uh getting operationally leveraged 29:24 29 minutes, 24 seconds uh say within 9 months uh but now you have started Karnataka so you are again going to uh be 29:34 29 minutes, 34 seconds putting in uh funds and energy uh into that state. So considering that we are doing this off and on for the last 4 and 29:42 29 minutes, 42 seconds 1/2 years for multiple brands uh in the next uh five to six quarters you will see a good set of numbers and that is 29:49 29 minutes, 49 seconds what I told the other participants as well uh and and a few other uh I mean the same questions that were asked 29:56 29 minutes, 56 seconds earlier that yes between five to seven quarters you will see some kind of leverage uh coming in some kind of brands. 30:04 30 minutes, 4 seconds Sure. So the only only request I have is u uh you know going forward in your quarterly uh earnings release please try 30:12 30 minutes, 12 seconds and give the revenue break up between sort of vintage and the new edge business. So so that's that's the only suggestion. So we'll do that. 30:19 30 minutes, 19 seconds So it's a good suggestion we'll keep that in mind. Thanks appreciate it. Thank you. Thank you. 30:27 30 minutes, 27 seconds The next question is from the line of Ishika from Pin Ventures. Please proceed. 30:34 30 minutes, 34 seconds Yeah. Hi uh thank you for taking my question. I just wanted to know as the new age business scales and takes a larger share of revenue in the mix over 30:42 30 minutes, 42 seconds the next two to three years, how should we think about the manufacturing mix like specifically the CMO versus 30:49 30 minutes, 49 seconds in-house manufacturing? Will the new age business be more asset light or will it increasingly be manufactured internally? 30:58 30 minutes, 58 seconds Yeah, good question. uh uh there are certain products I mean of course one plant cannot manufacture every single 31:06 31 minutes, 6 seconds product uh we are into mobility uh mobility products we are into uh pet care we into herbal neutrautical 31:14 31 minutes, 14 seconds uh we are ourselves into pharmaceuticals we have 1700 products but at the same time we have other things 31:23 31 minutes, 23 seconds so uh there is a lot of uh uh varian in 31:29 31 minutes, 29 seconds kinds of product uh type. Uh now we in our plants in the cluster of three plants that we have and the fourth one 31:37 31 minutes, 37 seconds that uh we've just started we are making somewhere close to around 2,000 kind of 31:43 31 minutes, 43 seconds SKUs. uh but uh definitely uh say like in our mobility range we have walkers 31:50 31 minutes, 50 seconds and we have uh wheelchairs and we have so so we definitely not going to start a wheelchair uh plant and a walker plant 31:59 31 minutes, 59 seconds and uh at least anytime soon. So um of course the new things that we going to start is going to be asset light. It uh 32:08 32 minutes, 8 seconds suits our uh things also. We don't want to start manufacturing everything we sell. Uh we want to use someone else's 32:15 32 minutes, 15 seconds cost efficiencies which been achieved and use those to penetrate further into the markets that we already have. So uh 32:23 32 minutes, 23 seconds say four to 5 years from now uh uh more and more uh products will be manufactured not directly by us. 32:33 32 minutes, 33 seconds Okay, understood. Thank you so much. Thank you. 32:39 32 minutes, 39 seconds The next question is from the line of Tesl from Karnatak please. 32:47 32 minutes, 47 seconds Uh hi tradon congratulations for a great set of numbers again like I I wanted to understand more with regard to mobility 32:55 32 minutes, 55 seconds and beauty fred brand. Uh especially with regard to mobility like I see like you visit any chemist shop as there is a 33:02 33 minutes, 2 seconds pamper section there is a mobility section too for a company like us who who has always believed into penetration of distribution like at least one 33:10 33 minutes, 10 seconds product of freedom should be there in like every chemist shop. How how how is the mobility going for us and 3 4 years 33:19 33 minutes, 19 seconds down the line how big you see this mobility brand getting created because in mobility brand is just that product right? 33:27 33 minutes, 27 seconds Yes. Yes. So I mean uh you know people uh I'll just explain on the mobility front uh people right now relate to 33:35 33 minutes, 35 seconds mobility as knee brace, leg brace, uh back brace, right? uh but it it has more 33:42 33 minutes, 42 seconds than 800 products. Uh we have also launched a mobile brand which is our 33:49 33 minutes, 49 seconds brand our uh or author brand is called Braisonson. Uh our uh our uh our say BP 33:58 33 minutes, 58 seconds meters our our uh glucometers is called DGON. Uh and our nebulizers are called 34:05 34 minutes, 5 seconds Nebon. Uh we have also launched a physiootherapist uh it's uh uh product related brand 34:14 34 minutes, 14 seconds called mobilitics uh freedom mobilics which also comes under the freedom mobility umbrella. So 34:22 34 minutes, 22 seconds uh we are not only planning we want and we will ensure that our products are there in most of the retail outlets. We 34:31 34 minutes, 31 seconds are adding almost uh 30 40 uh retail outlets uh every week uh in the markets 34:39 34 minutes, 39 seconds that we are doing right now in consistently. Um the physiootherapy part of it are also 34:48 34 minutes, 48 seconds being launched in April where it will go to all the physiootherapist and uh those products will be specifically tailored 34:56 34 minutes, 56 seconds for the physiotherapist which the physiotherapist can further sell to their clients and also utilize themselves. So that will encompass the 35:05 35 minutes, 5 seconds entire range of uh the mobility segment and uh uh structure. Uh so we are doing 35:12 35 minutes, 12 seconds quite well uh we are doing quite well and uh step by step we are going to 35:20 35 minutes, 20 seconds launch these products. Uh uh it is growing almost at 25 to 30% year on 35:27 35 minutes, 27 seconds year. Uh this year we'll anticipate further growth also. I mean I'm talking about the coming year because we are 35:34 35 minutes, 34 seconds adding another four to five states. uh and that will kind of complete almost uh 35:40 35 minutes, 40 seconds 60% of India. Uh these are volutric products. So we cannot uh penetrate like 35:48 35 minutes, 48 seconds a pharma uh products where you can just put in 10 20,000 20,000 pat. This you have to put 35:56 35 minutes, 56 seconds in 100 chairs, you have to put in 300 chairs. You have to get the market demand for it. You see the products, they will feel it. they will have a tactile uh understanding of the product. 36:06 36 minutes, 6 seconds Then they will place further orders because these are volutric products. So penetration uh for any company in 36:14 36 minutes, 14 seconds mobilics is uh in mobility segment is is slow. But it is for us uh we have got uh 36:22 36 minutes, 22 seconds such a good response that uh we are now selling uh I think I think one of the 36:29 36 minutes, 29 seconds highest number of wheelchairs in the state in in Maharashtra at least we are we are selling practically mostly 36:38 36 minutes, 38 seconds in uh most of the places in Mumbai have our products and that will continue to go across states. 36:51 36 minutes, 51 seconds Sir the line for the participant has been disconnected. Can we move further? Yeah. Yeah. 36:57 36 minutes, 57 seconds The next question is from the line of Palhar from three Natra asset managers. Please proceed. 37:04 37 minutes, 4 seconds Hello. Thank you for giving me the opportunity and uh congrats on good set of number. Uh sir I just wanted to ask 37:12 37 minutes, 12 seconds you like do we see any kind of inventory write off in uh near future? 37:18 37 minutes, 18 seconds Inventory write off is not possible uh in our in the kind our write off of 37:26 37 minutes, 26 seconds inventory is like 1,000 rupees uh 1,400 rupees uh 7,000 rupees like that. 37:34 37 minutes, 34 seconds Sometimes if there is any damage uh big inventory generally in pharmaceuticals uh the innate inventory of the raw material is around uh for 3 to 5 years. 37:46 37 minutes, 46 seconds So there is no question of uh any uh pertinent write off uh at this point in stage or even in the coneseable future. 37:56 37 minutes, 56 seconds Okay. Okay. Thank you. Uh that's it from my side and all the best. Thank you. 38:04 38 minutes, 4 seconds Thank you ladies and gentlemen. That was the last question from the participant. I now hand over the conference to Miss Sagi 38:12 38 minutes, 12 seconds Punjiara from Kiran Advisers Private Limited for closing comments. Over to you ma'am. 38:20 38 minutes, 20 seconds Thank you everyone for joining the conference caller Freeden Pharmaceuticals Limited. If you have any queries you can write to us at research direct.com 38:29 38 minutes, 29 seconds and thank the conference call. Thank you John. Good day. Thank you. God bless. Thanks. 38:36 38 minutes, 36 seconds Thank you on behalf of Kin Advisers Private Limited. That concludes this conference. 38:42 38 minutes, 42 seconds Thank you for joining us and you may now disconnect your lines. Thank you.