Granules India Ltd — Q4 FY26

Granules India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=JrcbtA1Bsis Published: 2 weeks ago

0:00 Ladies and gentlemen, good day and welcome to Granals India Limited Q4 and FI26 earning conference call hosted by MUFG. 0:10 10 seconds This conference call may contain forward-looking statement about the company which are based on the beliefs, opinions and expectation of the company 0:18 18 seconds as on date of this call. These statement are not the guarantee of future performance and involve risk and uncertainties that are difficult to 0:26 26 seconds predict. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask question after the presentation 0:34 34 seconds conclude. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:43 43 seconds note that this conference is being recorded. I now hand the conference over to Miss Prai Amre from MUFG. Thank you and over to you Prachi. 0:53 53 seconds Thank you Danish. On behalf of Granolds India Limited, I extend a warm welcome to all the participants on the Q4 FI26 1:00 1 minute financial results discussion call. Today on the call we have Dr. Krishna Prasad Chigurupati chairman and managing director, Miss Priyanka Chigurupati, 1:09 1 minute, 9 seconds Executive Director, Mr. MKkesh Surana, Chief Financial Officer, Dr. Pi Shri Nas, Chief Technology Officer and Mr. 1:17 1 minute, 17 seconds Sanjay Kumar, Chief Strategy Officer. 1:20 1 minute, 20 seconds Before we begin the call, I would like to give a short disclaimer. This call contains some of the forward-looking statements which are completely based on 1:27 1 minute, 27 seconds our expectations, beliefs and opinions as of today. These statements are not a guarantee of our future performance and involve unforeseen risks and 1:36 1 minute, 36 seconds uncertainties. With this, I would like to hand over the call to Krishna Prasad sir for his opening remarks. Over to you sir. Thank you. 1:43 1 minute, 43 seconds Thank you Prachi. 1:46 1 minute, 46 seconds A very good evening uh to all of you ladies and gentlemen and thank you very much for joining us today. I appreciate 1:53 1 minute, 53 seconds your continued interest in granules India and welcome you to our Q4 and fullear FI26 update. We have shared a 2:01 2 minutes, 1 second detailed presentation on our financials and operating performance and I trust you have had an opportunity to review it. 2:11 2 minutes, 11 seconds Q4 and full year FYI26 FY26 marked a year of deliberate reset and measurable progress for granules 2:20 2 minutes, 20 seconds India. Following a period of regulatory and operational correction, the organization stabilized performance, 2:29 2 minutes, 29 seconds strengthened execution, and made clear strategic choices to reposition the business for sustainable and valueled growth. 2:40 2 minutes, 40 seconds The year demanded discipline and focus while external cost pressures and regulatory remediation continue to weigh on operations. 2:50 2 minutes, 50 seconds granules delivered steady improvements across compliance, operations and portfolio quality. By the close of FI26, 3:00 3 minutes the company had materially strengthened its foundation and is better prepared for the next phase of growth. 3:08 3 minutes, 8 seconds Strategic and business progress. 3:11 3 minutes, 11 seconds FY26 was a defining year for the organization's operating platform. 3:18 3 minutes, 18 seconds The GPI facility in Virginia reached its targeted operating potential and demonstrated consistent performance 3:26 3 minutes, 26 seconds through the year. Capacity expansion and the ongoing development of a new distribution center further reinforces 3:35 3 minutes, 35 seconds the site's ability to support future growth and scale. 3:40 3 minutes, 40 seconds I am happy to share that as per IQIA GPI as a company had moved to 27th 3:49 3 minutes, 49 seconds position of all US generic companies in terms of sales value in FY26 as compared to 74th position in FY21. 4:02 4 minutes, 2 seconds It also stands at fourth position in the control substance space. 4:09 4 minutes, 9 seconds The acquisition of SEN represented a deliberate strategic expansion into the CDMO segment. 4:17 4 minutes, 17 seconds The business turned a bit positive within the third quarter post acquisition, validating the investment thesis and establishing peptides and 4:27 4 minutes, 27 seconds CDMO as a meaningful long-term growth engine for granules. 4:33 4 minutes, 33 seconds Equally important, FY26 saw continued and intentional evolution of the product portfolio. 4:42 4 minutes, 42 seconds The company accelerated its shift towards more complex and differentiated products. 4:49 4 minutes, 49 seconds The transition is already strengthening competitive positioning and opening pathways for higher value 4:57 4 minutes, 57 seconds opportunities including potential first to files. Financial and operational performance. 5:06 5 minutes, 6 seconds The fourth quarter concluded a year of stabilization and strengthening fundamentals. 5:13 5 minutes, 13 seconds Momentum improved sequentially through the year with Q4 reflecting operational stability across both finished dosage 5:21 5 minutes, 21 seconds businesses. Improved across both API and finished dosage businesses. improved compliance readiness and consistent execution against stated priorities. 5:34 5 minutes, 34 seconds Finished dosages remain the core business contri contributing 74% of revenue. 5:41 5 minutes, 41 seconds Europe delivered strong growth of 81% yearonear and now represents approximately 15% of total revenue. 5:51 5 minutes, 51 seconds Without SEN, Europe represented a 49% growth. 5:56 5 minutes, 56 seconds Most notably, Peptide CDMO emerged as a fourth revenue pillar, generating 6:04 6 minutes, 4 seconds 1,593 million in FY26 revenue and delivering a positive AITA in Q4. 6:12 6 minutes, 12 seconds These results were delivered despite elevated logistics call uh costs and ongoing remediation expenditure 6:20 6 minutes, 20 seconds underscoring the benefits of a diversifi diversified footprint, disciplined execution and improved business resilience. 6:31 6 minutes, 31 seconds Quality, regulatory and compliance. 6:35 6 minutes, 35 seconds Quality and compliance remained an uncompromised priorities throughout the year. 6:42 6 minutes, 42 seconds At Gagilapur, remediation activities progressed materially with cleaning validation completed across all PFI ms 6:51 6 minutes, 51 seconds and finished dosage blocks using dedicated equipment. 6:56 6 minutes, 56 seconds The postwarning letter engagement with the US FDA was completed in January with all action point responses submitted in 7:05 7 minutes, 5 seconds February and regular progress updates maintained thereafter. 7:11 7 minutes, 11 seconds During the year, regulatory inspections were successfully completed across key sites. The GLS facility at Genome Valley 7:20 7 minutes, 20 seconds received an IR with VI following the inspection. 7:25 7 minutes, 25 seconds The Chanteli uh GPI facility underwent a routine US FDA inspection in March March to April 7:34 7 minutes, 34 seconds 26 resulting in four procedural form 483 observations with no data integrity findings. Responses were submitted within the stipulated timeline. 7:47 7 minutes, 47 seconds The GCH facility in Virginia completed in its inspection with zero observations. 7:55 7 minutes, 55 seconds Beyond individual inspections, the organization continue to systematically strengthen its quality systems. 8:06 8 minutes, 6 seconds Investments in digital quality infrastructure including electronic log books, calibration 8:13 8 minutes, 13 seconds uh management, document control and MEES implementation are now materially enhancing compliance 8:21 8 minutes, 21 seconds rigor, traceability and operational effectiveness, safety, ESG and sustainability. 8:29 8 minutes, 29 seconds Safety remains non-negotiable across all operations. 8:32 8 minutes, 32 seconds The FI20 FI26 closed with a clear reduction in reportable injuries, visible progress towards a more proactive, accountable safety culture. 8:43 8 minutes, 43 seconds ESG performance continued to strengthen and gain external recognition during the year. Granules achieved the 8:52 8 minutes, 52 seconds ecois gold rating, received an A rating from CDP for climate change and recorded strong 8:59 8 minutes, 59 seconds scores across water security and forests. 9:03 9 minutes, 3 seconds The company's S&P corporate sustainability assessment score improved to 62 placing granules amongst the top 10% of the global peers. 9:16 9 minutes, 16 seconds The company further reinforced its commitment to responsible growth by becoming a signary to the UN women's empowerment principles. 9:27 9 minutes, 27 seconds Baglapur facility achieved zero waste to landfill platinum plus certification with similar programs progressing across other sites. 9:39 9 minutes, 39 seconds R&D filings and portfolio development. 9:43 9 minutes, 43 seconds R&D efforts were firmly aligned to portfolio depth, complexity, and future readiness. 9:50 9 minutes, 50 seconds During FI26, granules continued to advance filings and approvals across APIs 9:57 9 minutes, 57 seconds and finished dosages with a clear emphasis on complex generics. 10:03 10 minutes, 3 seconds During the year we filed a total of six US Indas, three EU doseiers, one Canadian dosiers and 15 filings across various regions. 10:14 10 minutes, 14 seconds We filed six US DMFs all to support integration of complex products and 10 other DMF across various regions. 10:25 10 minutes, 25 seconds Complex generics accounted for a meaningful share of total filings, reinforcing the long-term direction of the development pipeline and the 10:33 10 minutes, 33 seconds company's focus on sustainable value creation outlook. Granu enters FI27 10:42 10 minutes, 42 seconds with improved stability, clearer priorities, and greater organizational confidence. 10:49 10 minutes, 49 seconds The focus in the year ahead remains an ambiguous. 10:55 10 minutes, 55 seconds Achieving sustained US FDA readiness in Bagilapur, scaling commercial contributions from GLS, accelerating the 11:04 11 minutes, 4 seconds shift towards complex and differentiated products and maintaining disciplined capital allocation. 11:12 11 minutes, 12 seconds The company is also preparing for potential US product launches as approvals progress. including nine 11:20 11 minutes, 20 seconds applications awaiting clearance from Gagilapur site. 11:24 11 minutes, 24 seconds Ongoing product transfers across sites will further further strengthen continuity, resilience and risk mitigations while external uncertaintities remain. 11:36 11 minutes, 36 seconds Granules is materially positioned today than a year ago. 11:42 11 minutes, 42 seconds A strengthened operating platform, healthier balance sheet and sharper execution discipline. Execution 11:50 11 minutes, 50 seconds discipline provide a solid base for delivering long-term shareholder value. 11:56 11 minutes, 56 seconds Finally, FY26 was a year of recalibration and rebuilding. 12:02 12 minutes, 2 seconds The progress achieved was necessary, deliberate, and foundational. 12:09 12 minutes, 9 seconds granules now moves into its next phase with greater clarity, confidence and control. 12:17 12 minutes, 17 seconds Thank you very much and I pass this on to uh Sanjay for uh detailed explanation on the send chemicals peptide business. 12:29 12 minutes, 29 seconds Thank you chairman sir. Good afternoon everyone. Uh let me briefly update you on the progress of our peptide CMO platform aselis peptides and sand 12:37 12 minutes, 37 seconds chemicals. Q4 performance was in line with the direction we had indicated earlier. Revenues improved meaningfully 12:45 12 minutes, 45 seconds supported by planned pharmaceutical deliveries and robust cosmetic uptake during the quarter. The quarter also 12:53 12 minutes, 53 seconds marked a return to positive editor performance reflecting progress from transition into execution phase. We did 13:01 13 minutes, 1 second ensure certain additional operating expenses linked to an important customer program including higher manpower deployment and additional shifts. These 13:10 13 minutes, 10 seconds are largely associated with first campaign of such nature. During the quarter we also executed multiple 13:17 13 minutes, 17 seconds programs across R&D projects development of TFA free cosmetics and supplies and sample seeding initiative for 13:25 13 minutes, 25 seconds prospective pharmaceutical customers. On the organization front, we have moved to a leaner management structure at SAM 13:34 13 minutes, 34 seconds with a focus on execution and accountability and we have rolled out our long-term incentive for key executives at Zurich facility. We are 13:43 13 minutes, 43 seconds also progressing well on infrastructure upgrades at Zurich site and planning the next phase of peptide API capacity. On 13:50 13 minutes, 50 seconds the India side, our peptide COE at IIT Hyderabad is now fully active and working in a very close collaboration 13:58 13 minutes, 58 seconds with our Zurich R&D team on multiple live customers projects. The next stage in India journey will be a brownfield 14:06 14 minutes, 6 seconds manufacturing facility for peptide intermediate which is expected over the coming months followed by a peptide API 14:13 14 minutes, 13 seconds capacity in India at the appropriate stage. For FY27 though, our focus is to deliver a pat positive performance on an 14:22 14 minutes, 22 seconds annual basis while recognizing quartertoquarter variations inherent in a project-driven CDMO business like ours. Overall, we are highly excited by 14:31 14 minutes, 31 seconds the opportunity in the peptide CDMO space and by the fact that customer access, credibility, and technical heritage that send brings to our peptide playbook. 14:41 14 minutes, 41 seconds Uh with that I will now hand over uh the call back to MKkesh to take you through the financial performance. 14:48 14 minutes, 48 seconds Thank you CMD sir and Sanjay. Good evening everyone. I will now walk you through the financial performance for Q4 14:54 14 minutes, 54 seconds FI26 and the full year FI26. FI26 has been a landmark year for the group. This year we crossed a landmark number of 15:03 15 minutes, 3 seconds 50,000 million in revenue, posted six straight quarters of sequential growth, record gross margin and demonstrated 15:11 15 minutes, 11 seconds that the strategic priorities we placed 3 to four years ago including complex generics are now delivering the revenue 15:17 15 minutes, 17 seconds growth revenue for the years to at 53,656 million registering a 20% year-on-year 15:26 15 minutes, 26 seconds growth. growth was broad-based driven primarily by formulations in North America and Europe. Peptide CDMO business is a new revenue vertical 15:33 15 minutes, 33 seconds following the acquisition of S chemicals AG. This vertical added rups,593 million revenue contributing 3% of the 15:41 15 minutes, 41 seconds overall revenue. Revenue for the quarter was 14,76 million up 23% yearonear and 15:49 15 minutes, 49 seconds 6% sequentially marking our sixth consecutive quarter of sequential growth. The sales breakup as per business divisions and geographic 15:57 15 minutes, 57 seconds regions are presented in our investor presentation which is available on the website. Business diversification is improving the resilience and 16:05 16 minutes, 5 seconds sustainability of revenues. Gross margin FI26 gross margin expanded to 65% and improvement of 355 basis points year. 16:16 16 minutes, 16 seconds This expansion is on account of a sustained shift towards complex genres and higher contribution from value added 16:22 16 minutes, 22 seconds formulations. Q4 FI26 gross margin improved to 65.7% up 233 basis points yearonear and 186 16:32 16 minutes, 32 seconds basis points quarteron quarter with growth particularly from peptide CDMO converting into margin expansion gross 16:40 16 minutes, 40 seconds margin rose from 50% in FI22 to 65% over four years demonstrating our sustained strategic progress 16:48 16 minutes, 48 seconds and profitability for FI26 to 11,851 31 million up 25% 16:55 16 minutes, 55 seconds yearonear with margins expanding by 100 basis points to 22.1%. 17:01 17 minutes, 1 second This clearly demonstrates the structural improvement in earnings quality. This EITA in FI26 includes loss of 445 17:10 17 minutes, 10 seconds million in SLS the peptide CDMO platform acquired during the year. Q4 FI26 AITA 17:17 17 minutes, 17 seconds stood at 3,521 million growing 40% year-onear and 14% quarteron quarter with margins expanding to 23.9%. 17:28 17 minutes, 28 seconds Q4 FI26 marked the first quarter of positive AIA in our acquired peptide CDMO business which is an important 17:35 17 minutes, 35 seconds milestone. R&D R&D remains central to our long-term strategy. R&D expenses for FI26 was 2,853 million representing a 5.3% of sales. 17:48 17 minutes, 48 seconds Our focus area include C2HD, oncology, MUPS and other high barrier formulations. These investments are 17:57 17 minutes, 57 seconds laying the foundation for sustained differentiated growth. We will continue to invest in R&D in the coming quarters. 18:03 18 minutes, 3 seconds PBT and PAD FI26 PBT before exceptional items grew 26% yearonear and PAD grew by 18:11 18 minutes, 11 seconds 19% year on year rupees 55950 million post exceptional items. Q4 FI26 18:20 18 minutes, 20 seconds PBT before exceptional items grew 48% yearonear and 22% sequentially and PAT 18:26 18 minutes, 26 seconds grew by 33% yearonear to rupees 2016 million and 34% sequentially post 18:33 18 minutes, 33 seconds exceptional items net debt net debt reduced to 421 million from 7,61 million 18:40 18 minutes, 40 seconds in FI25 net debt to AITA improved to 0.34x from 0.75x the reduction in net debt was supported 18:48 18 minutes, 48 seconds by an additional equity infusion of rupes 6,656 million during FI26 in addition to growth in FI26. Working 18:57 18 minutes, 57 seconds capital net working capital percentage to sales remained at 33% to sales in line with FI25 with higher working 19:04 19 minutes, 4 seconds capital to support growth in FI26 cash flow from operations. FI26 cash flow from operation was 7,933 19:13 19 minutes, 13 seconds million compared to 8,666 million in FI25. Cash conversion was moderated due to planned working capital 19:22 19 minutes, 22 seconds buildup to support growth and new launches. Capex capex spent for Q4 FI26 19:28 19 minutes, 28 seconds was,000 million compared to,298 million in Q3 FI26. Full year FI26 capex was 5,547 19:37 19 minutes, 37 seconds million compared to 5,700 million in FI25. ROC ROC improved to 17.6% as 19:46 19 minutes, 46 seconds compared to 16.8% in Q3 FI26 and 16.6% in FI25. 19:52 19 minutes, 52 seconds With this I open the floor for questions. Thank you. 19:56 19 minutes, 56 seconds Thank you so much sir. Ladies and gentlemen, we'll begin with the question and answer session now. Anyone who wishes to ask a question may press star 20:04 20 minutes, 4 seconds and one from the touchstone on telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 20:12 20 minutes, 12 seconds requested to use handsets while asking a question. 20:16 20 minutes, 16 seconds Ladies and gentlemen, we'll wait for a moment while the question assembles. 20:26 20 minutes, 26 seconds Our first question come from the line of Harit Ahmed from AIDS Park. Please go ahead. 20:33 20 minutes, 33 seconds Good evening everyone. Uh thanks for the opportunity sir. Uh uh will you be able to comment on the pricing environment for 20:40 20 minutes, 40 seconds paracetamol and metformin currently? Uh has there been any uh increase following 20:47 20 minutes, 47 seconds the situation in West Asia and uh you're also looking at uh a 33% growth for the 20:55 20 minutes, 55 seconds API segment this quarter. So wondering if there were any benefits uh from an uh from a better pricing environment. 21:04 21 minutes, 4 seconds Uh interesting question Harit. Uh definitely there were no price increases we wish we had. Uh whereas raw material 21:13 21 minutes, 13 seconds prices are have gone up and are still going up. There's a small I mean there is a little bit of uncertainty but we are sure we should be getting price 21:21 21 minutes, 21 seconds increases uh to compensate for the raw material increases. So to answer your question to clarify the the growth in API was due to 21:31 21 minutes, 31 seconds new APIs that we have been launching and uh the APIs that we developed for our own integrated formulation development 21:39 21 minutes, 39 seconds we also sell outside and those have contributed mainly to the growth in APIs. 21:46 21 minutes, 46 seconds Okay, got it. Sir, and on as peptides, good to see the strong performance this quarter and and the Raiki one. Just 21:54 21 minutes, 54 seconds wondering uh how we should think about uh the coming quarters. Is this a sustainable level of performance that we 22:01 22 minutes, 1 second should extrapolate into the coming quarters? 22:05 22 minutes, 5 seconds I think let's hear from the horse's mouth. Sanjay, can you answer that? Sure. 22:11 22 minutes, 11 seconds driving the growth of uh SLS peptides and sand chemicals. That's for your clarification. Yeah, go ahead. 22:19 22 minutes, 19 seconds Yeah. So, Harit, our objective is very clear to move towards sustainable profitability from FY27 onwards. Uh 22:27 22 minutes, 27 seconds individual quarters may vary depending on customer milestone and shipment timing, but the platform is now far more executionled and operationally aligned 22:35 22 minutes, 35 seconds than before. So the direction of travel is formally towards annual AITA and product positivity. 22:44 22 minutes, 44 seconds Sanjay you can comment a bit on the business mix here pharmaceuticals versus other segments like cosmetics and within pharmaceuticals what exactly are we 22:52 22 minutes, 52 seconds supplying peptide building blocks or fragments or APIs some uh qualitative color will be helpful. 23:00 23 minutes Sure. Uh sure. So what you just mentioned already that our business is a 23:07 23 minutes, 7 seconds mix of pharmaceutical and cosmetics and both are important although the the opportunity space for peptides AP 23:15 23 minutes, 15 seconds pharmaceutical is quite uh good. Uh our customers uh vary multiple across I 23:22 23 minutes, 22 seconds would say three dimensions. One is the the big uh innovator the big farm itself and the second one is the virtual 23:30 23 minutes, 30 seconds biotech uh the startup biotech uh ecosystem that is looking for a very agile and responsive CDMO to work on 23:39 23 minutes, 39 seconds their earlier clinical program and the third is interestingly is uh we are all partners while we might be a competitor 23:47 23 minutes, 47 seconds in certain spaces. So there are uh different players across the value chain of peptides and a CDMO space and we also 23:56 23 minutes, 56 seconds work collaboratively with the other players in the peptides value stream. So that's on the pharmaceutical side. on 24:02 24 minutes, 2 seconds the cosmetic sides. Uh uh that's definitely a a strong pillar for us and we've seen some uh increased traction 24:11 24 minutes, 11 seconds starting last two quarters especially in the last quarters where our focus on developing and supplying TFA free 24:19 24 minutes, 19 seconds peptides has caught a good attention and a good traction with customers. So so we are working on multiple projects on 24:26 24 minutes, 26 seconds making the cosmetic peptide TFA free. uh so those two are the uh are the broad uh 24:33 24 minutes, 33 seconds I would say details on on the two sides uh uh since the base is quite low on both the businesses the growth 24:41 24 minutes, 41 seconds opportunity is quite immense so it's a complete blue ocean for us and and last one sir uh specifically on 24:49 24 minutes, 49 seconds granules C0 so uh we had set up a pilot plan for DCDA in visak uh and and uh so 24:57 24 minutes, 57 seconds if you can comment on uh the scale on on this front and uh you know what are our plans and you know what's the kind of 25:05 25 minutes, 5 seconds capex that we're looking at uh how has been the progress so these are some of the questions yeah 25:12 25 minutes, 12 seconds it was a it's it was and is still a dream project uh being the only DCDA manufacturer outside China and uh yes we 25:21 25 minutes, 21 seconds did stabilize our production but then what has happened during the process is uh the Chinese competition they started 25:28 25 minutes, 28 seconds Ed reducing prices drastically and we have been trying to do better than them or at least meet those prices and u we 25:37 25 minutes, 37 seconds have been still improving our process processes. So I think we are close to uh wrapping up the pilot stage and uh getting into commercialization. 25:48 25 minutes, 48 seconds I think another two months to two and a half months we should wrap up and then we should go ahead with ordering equipments for the uh commercial plant. 25:57 25 minutes, 57 seconds So the project should cost somewhere around 200 crores and uh we'll freeze the numbers shortly. 26:06 26 minutes, 6 seconds Got it sir. Thanks for taking my question. Thank you. 26:12 26 minutes, 12 seconds Our next question come from the line of Shashank Krishna Kumar from MK Global Financial Service. Please go ahead. 26:18 26 minutes, 18 seconds Hi. Uh thanks for taking my question. Uh my first one was on the gross margin expansion that we have seen uh Qoq. Um 26:27 26 minutes, 27 seconds um I think the sale of uh API this quarter was still higher. So just trying to understand um what has driven the uh 26:34 26 minutes, 34 seconds sharp GM expansion on a QQ basis and also wanted to plan understand how should we look at it uh or look at gross 26:41 26 minutes, 41 seconds margins going forward um given that input costs are sort of uh inching up though the mix improvement will also 26:49 26 minutes, 49 seconds sort of play out. Just want to get your thoughts on how we should look at GM for FI27. 26:55 26 minutes, 55 seconds Thanks Krishna. decide. So quarteronquarter sequential uh you know gross margin improvement is primarily 27:02 27 minutes, 2 seconds because of CDMO business which has significantly you know grown from 33 crores to 70 crores where the VA 27:09 27 minutes, 9 seconds percentage gross margin percentage significantly higher that has helped the margin expansion for the quarter. With respect to your second question, 27:18 27 minutes, 18 seconds chairman has elaborated you know and also uh you know current war situation, cost escalation situations. Uh it is 27:25 27 minutes, 25 seconds little uncertain in terms of giving margins clarity in terms of percentage but of course we are trying our best to 27:33 27 minutes, 33 seconds get the entire raw material cost escalations. 27:38 27 minutes, 38 seconds Got it. Uh sec just my second question on the capeex plan for FI 2728. uh if you could just uh sort of highlight how 27:46 27 minutes, 46 seconds you are looking at it in terms of the overall figure and as well as that which are the areas where we should see the incremental investment being deployed. 27:54 27 minutes, 54 seconds Uh if you could just uh share that. 27:58 27 minutes, 58 seconds So next year the capex will be broad-based uh you know there is a new API facility which we are doing. In 28:05 28 minutes, 5 seconds addition to that we are also investing on the IT side and we are also planning for uh you know as part of Chairman's 28:12 28 minutes, 12 seconds speech also it was covered uh the distribution center warehouse distribution center in USA. So it will be broad-based multiple capex projects in the coming year. 28:24 28 minutes, 24 seconds uh any figure which you could sort of share uh so we we are talking about in the similar range of 600 odd crores in the 28:33 28 minutes, 33 seconds upcoming year 200 cross will you'll pay for distribution 28:40 28 minutes, 40 seconds got it got it just uh last one if I may squeeze in uh so if if you can call out the remediation spend cumulative for FI26 and what is the kind of uh 28:49 28 minutes, 49 seconds remediation spend that we should expect probably uh from 1K onwards uh FI27 onwards it should be 28:57 28 minutes, 57 seconds substantially lower which has already uh come down Q3 Q4 expenses were very high in H1 29:05 29 minutes, 5 seconds cumulatively only the remediation expenses we have incurred uh you know close to uh 50 plus crores in the 29:12 29 minutes, 12 seconds current year got it thank you I'll jump back to 29:19 29 minutes, 19 seconds thank you our next question come from the line of Tusha Sir Manu Dhane from Otila Los please go ahead. 29:29 29 minutes, 29 seconds Yeah I'm audible. Yes sure. 29:33 29 minutes, 33 seconds So sir as far as uh as far as uh West Asia issue is concerned uh as far as freight cost will just to have 29:42 29 minutes, 42 seconds understanding correct the freight cost increase will get reflected immediately in the coming quarters. Uh but as far as 29:50 29 minutes, 50 seconds passing on of the increase in the raw material prices will that have a lead lag impact and secondly we would have certain inventory already which will take care for at least one two quarters. 30:01 30 minutes, 1 second if you could just you know help us with that trajectory. 30:04 30 minutes, 4 seconds You have to there are inventories and we can wait for a while. It's not going to overnight 30:13 30 minutes, 13 seconds price increases. It's going to take a while and that will take care of uh the current inventories will take care of that. But all said and done still 30:21 30 minutes, 21 seconds uncertain period but we are confident that o over the year we'll be fine. 30:26 30 minutes, 26 seconds quarter on quarter variations may be there and uh yeah we've got to get used to the uncertaintity and work towards improvement. 30:35 30 minutes, 35 seconds Got it. And as far as um the peptide or the sen chemicals business is concerned if you could just break down the revenue 30:42 30 minutes, 42 seconds into uh projects which are at R&D and do the commercial manufacturing. 30:50 30 minutes, 50 seconds Sanjay uh we rather not get into that exact split but uh I think for it's sufficient 30:59 30 minutes, 59 seconds that uh this is uh a project uh initiated uh pipeline uh so whatever is 31:08 31 minutes, 8 seconds at the commercial stage a result of our uh development in the past uh we do have 31:15 31 minutes, 15 seconds uh a lot of exciting projects underway uh but I will not like to at this point in time is split the revenue and and give the details along those lines. 31:27 31 minutes, 27 seconds So um broadly broadly just to understand that um the at least for FI 20 27 28 while the 31:37 31 minutes, 37 seconds investment is underway which is 200 K but prior to that how the scale up of business is expected to happen is it 31:44 31 minutes, 44 seconds like more projectsdriven increase or it's more commercial manufacturing increase 31:50 31 minutes, 50 seconds so so I understood the question uh so so let me just give you that we are working on some active projects which would have 31:59 31 minutes, 59 seconds a commercial uh supplies pipeline. Uh although at a development stages various clinical stages uh that we are seeing a 32:08 32 minutes, 8 seconds few interesting projects uh we we got uh at least one project graduated to a 32:15 32 minutes, 15 seconds stable commercial supply starting uh this financial year. Uh so we are working on few of those as well. Given 32:23 32 minutes, 23 seconds the business size is low uh currently low base effect it may be uh not prudent for me to call out those specifically 32:31 32 minutes, 31 seconds and club it together into but we do have a very interesting and uh program which could drive the future growth. 32:40 32 minutes, 40 seconds Sorry. And just lastly uh on the overall uh net debt for the company uh considering the projects uh in terms of 32:49 32 minutes, 49 seconds capital expenditure as well as working capital probably increase requirement maybe not be immediately but uh if if 32:56 32 minutes, 56 seconds the situation prolongs then what kind of net debt um you know we should sort of uh build for 27. 33:06 33 minutes, 6 seconds uh there can be a you know flattish net debt or a slight increase depending upon you know the timing of the capex and 33:14 33 minutes, 14 seconds increase in the growth in the current uncertain period because of the cost escalation the working capital investment is also going to be higher 33:21 33 minutes, 21 seconds side so you know there will be small increase in very small increase in the net 33:28 33 minutes, 28 seconds got it sir thanks thanks from this thank you our next question comes from the line of Sel Kapoor from Antifragile Thinking. 33:39 33 minutes, 39 seconds Please go ahead. 33:41 33 minutes, 41 seconds Yeah, thanks for the opportunity. Um, hi team, congratulations on an amazing execution despite the Gadilapur 33:48 33 minutes, 48 seconds constraints. Um, I have a few questions please. Um what proportion of granules current and 33:57 33 minutes, 57 seconds upcoming CDMO capacity is already tied to or tied to committed 34:03 34 minutes, 3 seconds or late stage um customer programs and what utilization level would you fall to 34:11 34 minutes, 11 seconds if let's say a hypothetical scenario your top two or top three projects um were to be delayed or cancelled. 34:21 34 minutes, 21 seconds Sanjay you want to go with that? Thank you Sil first of all. Yeah. Thank you. 34:28 34 minutes, 28 seconds Yeah. So Sil see we are in terms of utilization 34:35 34 minutes, 35 seconds our our capacity today is is not very large but we do not want we are not expanding unresponsibly. 34:43 34 minutes, 43 seconds uh our approach towards capex deployment is also always demand link and as the customer program progresses we are 34:51 34 minutes, 51 seconds investing and that's the promise with which we are approaching the customers having said that uh the utilization in 34:58 34 minutes, 58 seconds the Q4 was at a healthy level and at the same time we are building capacities that will come online uh towards the 35:06 35 minutes, 6 seconds second half of the year and our visibility if everything all is all right is is we will uh be quickly seeing 35:14 35 minutes, 14 seconds a full utilization to that. So their capacity that we're building in Zurich, the capacity that we will be building in India especially on the intermediate 35:22 35 minutes, 22 seconds side and we see a quick uh utilization turnaround within within the year itself uh on on those capacities. Uh but but 35:32 35 minutes, 32 seconds the larger point is we haven't built uh uh capacity ahead of time. We are doing it concurrently and we are doing it as 35:39 35 minutes, 39 seconds an optionality in a close uh I would say partnership with the customers and quite close disclosure where we have been open 35:48 35 minutes, 48 seconds to them and open with the willingness to invest in the future capex uh should they choose to and as and when their 35:55 35 minutes, 55 seconds program advances know that's helpful. So I think if I translate what you said Sanjay, it's not 36:02 36 minutes, 2 seconds an speculative it's tracking either a verbal commitment or tracking a latestage client program. So the capacities are not created for the heck of it. That's that's how I translate it. 36:14 36 minutes, 14 seconds And if you could also clarify what is the level of customer concentration I mean typically what happens at a low base and this has been the journey with 36:22 36 minutes, 22 seconds new labs labs all of them. Typically when your base is low you are really dependent on just one or two customers. 36:29 36 minutes, 29 seconds Um is are we also having that level of um high dependency or customer concentration or are we having a 36:37 36 minutes, 37 seconds broad-based um participation albeit um despite having a very low base today. 36:44 36 minutes, 44 seconds So Sil on part one your interpretation is correct on the capac on the capex investment and we are very transparent 36:52 36 minutes, 52 seconds with the uh with the uh customers and giving them the optionality to choose across the two components two continents 36:59 36 minutes, 59 seconds across the uh v various uh timeline during their journey. Number one. Uh 37:05 37 minutes, 5 seconds number two uh uh our customer base is not overly concentrated. We would definitely like uh customers with a big 37:14 37 minutes, 14 seconds share in our portfolio. But right now we are working on a multiple uh projects uh and and they are very well spread across 37:22 37 minutes, 22 seconds uh a double digit uh customers and they're all at in the initial stages uh 37:29 37 minutes, 29 seconds with a with a with a good uh pedigree across uh both the big pharmaceutical and startup biotech and interestingly 37:36 37 minutes, 36 seconds the cosmetic side as well. Uh having said that what differentiate us with the other CDMO apart from diversification is 37:45 37 minutes, 45 seconds the quality of the customer itself. Uh the quality of customers that we have uh 37:51 37 minutes, 51 seconds uh access to through the legacy of SEN is quite remarkable and this is the value that this acquisition has bring on 37:59 37 minutes, 59 seconds the table. Uh we got the proof of concept, we got the validation of access. what now lies ahead is our 38:06 38 minutes, 6 seconds ability to execute on these uh two continent model which is going well with the customers. 38:14 38 minutes, 14 seconds Sure. Sure. And thank you. And second question is for um Dr. Chiraupati if I may. Um sir if I if you had to pinpoint 38:24 38 minutes, 24 seconds the single biggest constraint to scaling the business over the next 2 three years 38:30 38 minutes, 30 seconds whether it's pricing pressure or customer concentration regulatory timelines or or execution I mean what 38:39 38 minutes, 39 seconds would that constraint be h and what specifically are you doing to um sort of 38:46 38 minutes, 46 seconds um make it a stronger and counter that potential constraint tips uh sil I think uh you have part of the 38:55 38 minutes, 55 seconds answer it's mainly regulatory time uh regulatory timelines and execution the quality of execution I think the uh 39:04 39 minutes, 4 seconds regulatory timelines also depends on how we execute the project and the quality of the filings I think we have almost got it right and we are fairly confident 39:13 39 minutes, 13 seconds that uh we should be able to uh reduce uh regulatory timelines 39:20 39 minutes, 20 seconds And of course you know other thing is the GDP remediation and FDA acceptance which where we are already ready and 39:28 39 minutes, 28 seconds waiting for the FDA to come in. We can't push them but we keep letting them know that we are ready. 39:36 39 minutes, 36 seconds Sure. So on that basis um Dr. Raupati assuming that we get the Gilapur back in action because we have got some 39:44 39 minutes, 44 seconds outstanding filings there. Um that should um and and assuming that the gross margins um stay where they are 39:53 39 minutes, 53 seconds despite an imminent threat that you know some input um solvents etc will get expensive. You may already be facing 40:00 40 minutes some packaging um cost escalation due to what's happening in the Middle East. But adjusting for all those broadly speaking 40:06 40 minutes, 6 seconds if we stay at 64 65% gross margin is it fair to expect a 24 25% dita margin um 40:13 40 minutes, 13 seconds going forward uh I think the raw material prices and 40:20 40 minutes, 20 seconds uh packing material prices freight prices have gone up so there's a lot of uncertainty in the market but hopefully you know we are sure that we'll get some 40:29 40 minutes, 29 seconds price increases so this uncertainty continues till we get the price increases and um uh gross margins while 40:37 40 minutes, 37 seconds we we were very confident of that some time ago. Now we are taking a step back and not committing to anything but we remain confident and positive. 40:48 40 minutes, 48 seconds Sure. That's helpful. Thank you so much. All the very best. 40:53 40 minutes, 53 seconds Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address all the question from the participant, we kindly request you 41:02 41 minutes, 2 seconds to please limit your question to two question per participant. If you have a follow-up question, please rejoin the queue. 41:10 41 minutes, 10 seconds Our next question comes from the line of Tarun Krishna from I thought PMS. Please go ahead. 41:18 41 minutes, 18 seconds Thank you for the opportunity. My question is on the large scale website that we're going to set up. uh in India. 41:25 41 minutes, 25 seconds Uh so we have indicated that we'll be manufacturing DLC there and we also have an option to manufacture the peptide drug conjugates and uh also nucleotides. 41:36 41 minutes, 36 seconds So when this site comes live uh which products will we exactly be manufacturing and uh will all these three products come at the same time? 41:46 41 minutes, 46 seconds Can you please give some light around that? Sanjay. 41:52 41 minutes, 52 seconds Yes sir. Uh I got a question for you and PB but I think you should go ahead. 41:58 41 minutes, 58 seconds Yeah sure and Dr. P please feel free to come in. uh uh first of all uh we are 42:05 42 minutes, 5 seconds doing a measured uh capex investment and the way uh it has been sequenced is 42:12 42 minutes, 12 seconds building a peptide API capacity at Zurich at certain uh uh scale followed 42:19 42 minutes, 19 seconds uh concurrently by investment in a brownfield manufacturing facility for 42:24 42 minutes, 24 seconds the intermediates in India and then once we uh complete this We are right now at 42:33 42 minutes, 33 seconds a planning stage of the India peptide API facility and that will be out by at least an year. Uh to begin with uh we 42:43 42 minutes, 43 seconds are looking at peptide drug conjugate as a market stage uh as as a uh as a market 42:50 42 minutes, 50 seconds segment and we are at a planning phase in assessment uh side of it. uh but our focus is completely the peptides 42:59 42 minutes, 59 seconds business as for the moment. This platform does give some optionality on the olig oligoucleide side in the future 43:07 43 minutes, 7 seconds but our current attention and the focus is completely on the peptides and it's the value chain and making sure that our 43:14 43 minutes, 14 seconds investments are sequentially well aligned and uh proportionally uh uh upgraded across the two locations 43:24 43 minutes, 24 seconds uh which is which is aligned with the customer's demand. Uh Dr. TV you want to add something to this? 43:31 43 minutes, 31 seconds You know you got it everything and uh at this point of time we are just focusing on peptides and then certainly we will 43:38 43 minutes, 38 seconds uh have a look at ADCs and then uh uh oliggonium but still we are it's at a selection uh phase they're in the 43:47 43 minutes, 47 seconds process of selecting portfolio. Yeah, understood. And exactly which uh product 43:56 43 minutes, 56 seconds will we be manufacturing from this and what would be the split for it or if there were multiple products from this. 44:06 44 minutes, 6 seconds So Pun your question is about uh what uh which one you're looking at India API manufacturing? 44:13 44 minutes, 13 seconds No it's about the large scale peptide manufacturing which we're setting up in India the intermediates. 44:21 44 minutes, 21 seconds So, so those are intermediates and and basic amino acid protected amino acid derivative that uh uh actually uh is 44:29 44 minutes, 29 seconds required uh for the peptide API manufacturing. So think of it as a backward integration and a common 44:37 44 minutes, 37 seconds element across multiple projects where it could be used internally for our own program and whereas it could also be 44:44 44 minutes, 44 seconds supplied uh from India uh to other players also to go into their uh uh peptide APS. 44:54 44 minutes, 54 seconds Uh understood. Uh that is it. Thank you. 45:00 45 minutes Thank you. Our next question come from the line of Krisha Kansara from Molecu Venture. Please go ahead. 45:10 45 minutes, 10 seconds Yeah. Hi. Um, so sir, I'm sorry if this is a repeat question. I had a weak connection, but I had a question on our 45:17 45 minutes, 17 seconds Gagilapur facility inspection. So, uh, you already mentioned that we submitted additional documentation with them uh, 45:26 45 minutes, 26 seconds after our meeting in January. Um so could you uh give us an update on when 45:33 45 minutes, 33 seconds is the reinspection expected and um so my question is because it's been more than a year since we received the 45:41 45 minutes, 41 seconds warning letter so uh I wanted to know your opinion your take on this why is it taking so long and how confident are we 45:49 45 minutes, 49 seconds to clear this followup uh USSB inspection and uh what is your estimate on the timeline? 45:57 45 minutes, 57 seconds Hi Krisha, this is Priyanka. I'll take your question. Uh you're right in saying that we have been corresponding with the FDA for the last uh well two years since 46:06 46 minutes, 6 seconds we got the original observations. After the warning letter, our updates continue. We had a meeting with the FDA 46:12 46 minutes, 12 seconds and we have continued to update the FDA with our progress. Um in our updates we 46:19 46 minutes, 19 seconds did mention that a lot of our activities like CMD mentioned would be closed by the end of March uh which we are on time 46:29 46 minutes, 29 seconds um for so we are in like CMD said we are ready for an audit um and it really depends on 46:39 46 minutes, 39 seconds when the FDA wants to come in at this point from our side we've notified to them that the activities are essentially complete but now I don't I think we can 46:47 46 minutes, 47 seconds estimate when they would walk in, but we're ready for an anytime audit. But that said, just um we are actually 46:56 46 minutes, 56 seconds confident in getting through with the FDA because we've had almost if you look at the investor presentation also we've 47:05 47 minutes, 5 seconds had a lot of uh audits in the last um year across several regulatory bodies 47:12 47 minutes, 12 seconds and many many customers and every well there's nothing critical that came out of them. So we're very positive about getting through 47:20 47 minutes, 20 seconds right but not even like a tentative timeline that you can give. 47:24 47 minutes, 24 seconds See last time we mentioned something we got comments now saying you skipped three times. I mean we can't read the FDA's mind right so it really depends on 47:32 47 minutes, 32 seconds when there has been no communication from the FDA but we are in touch with them. 47:38 47 minutes, 38 seconds Okay. And given that we recently received NVITA GMP certificate for Gagilapur facility um has this prepared 47:45 47 minutes, 45 seconds us in some way for the US FDA reinspection or is it not the case? How do we like I said it's not just the visa but 47:54 47 minutes, 54 seconds 108 customer audits and 13 regulatory audits happen in FY26 and we welcome these audits because like 48:01 48 minutes, 1 second you said it prepares us better to uh be audit ready when the FDA walks in. So 48:08 48 minutes, 8 seconds yeah like to answer your question Dundy's audit and these other audits all prepare us for that day. 48:16 48 minutes, 16 seconds Sure. So in summary it is like a wait and watch situation for us. Yes. 48:22 48 minutes, 22 seconds Sure. Thank you. 48:27 48 minutes, 27 seconds Thank you. Next question come from the line of read Jen from Nash. Please go ahead. Congratulations 48:35 48 minutes, 35 seconds on good set of numbers. Basically my first question is for lysexam fettoine you had 5% prescription share in cy25. 48:47 48 minutes, 47 seconds So what Kota did DEA assign you for CY 25 and can I know the same Kota for 48:54 48 minutes, 54 seconds current year 26 and current year 27 and is this Kota uh will support your uh 49:02 49 minutes, 2 seconds sales of the sales of this product specifically this product with list transfer mean I mean um we 49:10 49 minutes, 10 seconds obviously cannot share the kota details but we got everything that we wanted and I think we have demonstrated our ability 49:17 49 minutes, 17 seconds to um supply to the co our customers on time and in full which essentially is a 49:24 49 minutes, 24 seconds precursor to why you would get kota and even for fi 20 uh 7 we expect the kota 49:32 49 minutes, 32 seconds situation on this product to be as we budgeted for. 49:37 49 minutes, 37 seconds Okay. Sure. And my next question is uh you have said said that you plan to add one two new controlled substance 49:45 49 minutes, 45 seconds products annually for next two to three years. Can you name or give us uh the light on which products you expect to 49:53 49 minutes, 53 seconds launch in next coming two years and what is the addressable market size for them? 50:00 50 minutes I don't again I can't give you names of any products. I think it's best you wait and watch because uh the products 50:07 50 minutes, 7 seconds actually the product uh two of them are already in the public domain. So you can just uh research that two of them we've received tentative approvals for 50:16 50 minutes, 16 seconds already. So based on the next steps will be determined based on um an ongoing 50:23 50 minutes, 23 seconds litigation which I would not like to talk about um over a call but we also have one to two other products that 50:30 50 minutes, 30 seconds we'll be launching on the generic side of things and one or two products that we'll be launching um which are potential first files outside of the tentative approvals that we got. 50:42 50 minutes, 42 seconds And the last question is uh can you uh have you any current order book uh in sense project uh the CDMO sense project 50:52 50 minutes, 52 seconds is there any uh order book for that for uh that project. 50:57 50 minutes, 57 seconds Sanjay if you want to take this question please uh san uh we can't uh disclose those kind of information. Okay. Sure sir. 51:08 51 minutes, 8 seconds Thanks. 51:10 51 minutes, 10 seconds Thank you so much. Our next question come from the line of Ritwix from OneUp Finance. Please go ahead. 51:18 51 minutes, 18 seconds Hi. Uh good evening sir. Uh so couple of questions from my end. So firstly uh what are the plans of uh deploying the 51:26 51 minutes, 26 seconds money that we raised from the promoter and uh QIP uh few months ago? 51:33 51 minutes, 33 seconds Yeah, thanks for the question Retri. Uh we have clarified in our EGM as well as last earnings call. This is to 51:41 51 minutes, 41 seconds strengthen the balance sheet and also invest for organic as well as inorganic growth. Organic growth is capex as well 51:49 51 minutes, 49 seconds as working capital and R&D and inorganic you know if there are any good opportunities we continuously exploring. 51:55 51 minutes, 55 seconds Uh we you know that money is also available uh based on the balance sheet strength. 52:02 52 minutes, 2 seconds Uh the second question is uh that uh on sen chemicals uh how should we look at sen chemicals uh with a medium-term to 52:11 52 minutes, 11 seconds long-term view uh in 3 to four years uh you know what kind of uh growth and margins one can expect can the margins 52:20 52 minutes, 20 seconds at company level how how should we look at this business retreat we cannot comment on uh the 52:28 52 minutes, 28 seconds growth I mean uh percentages of growth growth uh but all I can tell you is that's a key pillar for our growth and 52:37 52 minutes, 37 seconds that is what will also drive uh a good percentage of the company's growth I can't go into specifics but it's very 52:44 52 minutes, 44 seconds very important for us we see a great future there sure and just one last question uh in the past we've mentioned that we are 52:52 52 minutes, 52 seconds looking to launch control substances outside the US market also uh can you throw some throw some light uh when do 52:59 52 minutes, 59 seconds we launch these products say maybe in EU and then RO how far are we uh and what kind of 53:06 53 minutes, 6 seconds infrastructure uh readiness we have uh for this so I'll just give you a little bit of 53:13 53 minutes, 13 seconds background uh amongst all the control substances or let's just say medication for ADHD primarily I don't want to say control 53:22 53 minutes, 22 seconds substances uh medication for ADHD there's two that are globally prevalent uh sorry glo globally relevant 53:30 53 minutes, 30 seconds in terms of size etc. So out of the two products one has already been tech transferred and we started filings 53:38 53 minutes, 38 seconds across the globe. So within um within the next couple of years one or two years we'll start seeing um not one or 53:46 53 minutes, 46 seconds two years actually two years we'll start seeing revenue from those products on the finished dosage side but APIs we should be uh seeing the numbers come in 53:54 53 minutes, 54 seconds a little bit sooner. Okay. So, finished doses uh EU can see sometime from FI29 and API maybe a year earlier. 54:04 54 minutes, 4 seconds Not just in EU, we've been filing in multiple countries. 54:08 54 minutes, 8 seconds Okay. Okay. Uh okay, sir. That's it from my side. Uh thank you and all the best. Thank you. 54:17 54 minutes, 17 seconds Thank you. Our next question comes from the line of Shria Chett from Ageless Capital. Please go ahead. Thank you for 54:24 54 minutes, 24 seconds taking my questions and congratulations for a good set of numbers. So uh my first question is regarding the uh statement that you say that control 54:33 54 minutes, 33 seconds substances you are now at the fourth position. So would it be possible to give out the number like total revenue of control substance and also in the 54:40 54 minutes, 40 seconds control substance based uh basically ADHD you have a very high potential drug which is lizex amin dicilelet or the generic fibon. So how is that going on? 54:51 54 minutes, 51 seconds because for the other uh generic companies also there had been some issues of product recalls. So if you could just comment on that. Thank you. 55:00 55 minutes Uh Sha we have a good history. I don't think uh product recalls and such is a great 55:08 55 minutes, 8 seconds uh constraint for us. Uh what was the other question you had? service. 55:15 55 minutes, 15 seconds So what is the current uh like the revenue we we cannot for by product we cannot go into details but list is a 55:23 55 minutes, 23 seconds good product for us but we also have equally good products in our portfolio and more are in the pipeline and uh 55:31 55 minutes, 31 seconds uh it's just not one product that's all I can tell you. I just want to mention I just want to mention Shrea because the prior participant had the same question 55:40 55 minutes, 40 seconds on Lith and um if you look at all our historical investor calls also and if you if you just I guess track the number 55:49 55 minutes, 49 seconds of approvals we've received you'll know that it's not just listex anomy like CMD just said there are other products and the name of the game is to make sure 55:56 55 minutes, 56 seconds that you're consistently growing in all the products to make to achieve this position in the EDHD/control space. 56:08 56 minutes, 8 seconds Got it. And would it be possible to give out the market shareh uh the current market share that you have uh captured? Okay. And any comments 56:17 56 minutes, 17 seconds on the pipelines both for both the control substance and the oncology drugs like in the next 3 to 5 years how big you see that opportunity? 56:24 56 minutes, 24 seconds See the market size is heavily I can uh I think in the investor presentation we said 41 billion is a TAM but that said 56:33 56 minutes, 33 seconds that is the combination of the brand and generics. All I'll say is that the quality of filings are significantly 56:40 56 minutes, 40 seconds improving. They're moving uh more and more towards complex products more in the controlled space and oncology space. 56:51 56 minutes, 51 seconds two big drivers for us and we have a first well we have a few first of files 56:58 56 minutes, 58 seconds targeted a lot of NC minus one targeted and we plan to be there on day one with 57:03 57 minutes, 3 seconds uh a very very good value proposition got it and would it be possible to uh guide on the working capital situation 57:12 57 minutes, 12 seconds uh maybe this year FI27 given the vulnerabilities going on this is of course uncertain uh period 57:19 57 minutes, 19 seconds yeah so the cost Escalations are currently there. Whether it will continue for few months, few quarters, we are not so sure. But considering that 57:28 57 minutes, 28 seconds we would uh you know uh would want to maintain our working capital to sales ratio of 33% range. 57:37 57 minutes, 37 seconds Got it. Thank you. That's it from my Thank you 57:46 57 minutes, 46 seconds ladies and gentlemen. As there are no further question from the participant, I would like to hand the conference over to the management for the closing remarks. Thank you and over to you team. 57:55 57 minutes, 55 seconds Uh once again, thank you very much ladies and gentlemen for joining us today and uh uh I just wish you all the 58:04 58 minutes, 4 seconds best for the rest of the week and have a great weekend after that. Thank you. 58:10 58 minutes, 10 seconds Thank you so much sir. Ladies and gentlemen, on behalf of MUFG that conclude this conference. Thank you for joining us and you may now listening to lines.