Gufic Biosciences Limited — Q2 FY26

Gufic BioSciences Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=GmZLVvhAUes Published: 6 months ago

0:00 [Music] 0:02 2 seconds Ladies and gentlemen, good day and welcome to the KUIC Biosciences Limited Q2 FI 202526 0:10 10 seconds investor conference call. As a reminder, all participant lines will be in the listen only mode and there will be an 0:18 18 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during the 0:25 25 seconds conference call, please signal an operator by pressing start then zero on your touchstone phone. Please note that 0:33 33 seconds this conference is being recorded. I now hand the conference over to Miss Shwetti. Thank you and over to you ma'am. 0:43 43 seconds Good afternoon everyone. I welcome you all to go biosenses limited earnings conference call for the second quarter 0:51 51 seconds of financial year 2526. We have with us today for the call Mr. Pranav Choki CEO 0:57 57 seconds and wholetime director, Mr. Dei Nandan Muma CFO and Mr. AD from investor relations team to give the highlights of 1:06 1 minute, 6 seconds the business and financial performance of the company and to take questions if any. Before we begin, I would like to 1:13 1 minute, 13 seconds say that some of the statements that will be made in today's discussion may include certain forward-looking statements which are projections or 1:22 1 minute, 22 seconds estimates about future events. This estimate reflects management current expectations about future performance of 1:30 1 minute, 30 seconds the company. This estimate involves a number of risk and uncertaintity that could cause our actual results to defer 1:38 1 minute, 38 seconds materially from what is expressed or implied. GOPIC does not undertake any obligation to public to publicly update 1:46 1 minute, 46 seconds any forwardl looking statement whether because of new confirmation future events or otherwise. I hope you have 1:54 1 minute, 54 seconds received the investor presentation that we have posted on our website. I will now hand over the call to Mr. AIC for 2:01 2 minutes, 1 second sharing the business highlights. Over to you Aik. 2:06 2 minutes, 6 seconds Thank you Cha and good evening everyone and thank you for joining. I'll provide a focused update on the direction on 2:14 2 minutes, 14 seconds what is changing inside the business units. I'll start with our hospital and platforms which include critical care 2:23 2 minutes, 23 seconds and spash. Our approach in critical care our approach remains hospital first and scienceled. We are concentrating 2:31 2 minutes, 31 seconds resources. We have protocols drug use such as sepsis resistant infection and 2:37 2 minutes, 37 seconds invasive fungal diseases. The intent is to win depth in the existing accounts. 2:44 2 minutes, 44 seconds Embed our therapies in care pathways and let molecule class compound share. 2:49 2 minutes, 49 seconds Portfolio additions are chosen to strengthen our AMR stewardship and reduce escalations for the use of 2:55 2 minutes, 55 seconds lifetime drugs. on Spar. Spar is being shaped as a platform for offering niche products to a wider segment of hospitals 3:04 3 minutes, 4 seconds and nursing homes. Uh where service reliability matters as much as the brand. Our medium-term focus areas are 3:12 3 minutes, 12 seconds contrast media uh parental nutrition and cardiac uh critical care. Uh in this division we are tightening our execution 3:21 3 minutes, 21 seconds lever which includes coverage distribution control and increases in hospital grade contracts. So when 3:28 3 minutes, 28 seconds contrast media and TPN go live we scale within our existing accounts and we don't have to go out looking for green field accounts. 3:37 3 minutes, 37 seconds Moving to our women's health platform which includes uh ferticare and venova. 3:43 3 minutes, 43 seconds Particular path is category creation and advanced fertility uh particularly in the reproductive immunology. The first 3:51 3 minutes, 51 seconds to market immune therapy for recurrent implantation failure is about solving a very difficult clinical problem uh and 4:00 4 minutes earning specialist trust uh trust there and adoption here will be steady and not spiky. Our brands uh on brands our 4:09 4 minutes, 9 seconds working guard rails have remained unchanged as we have indicated in the previous quarter. Uh pure graph is trending towards a 25 cr annual runway. 4:19 4 minutes, 19 seconds Supergraph uh is on a 2-year path over 15 cranes alpha is well headed towards the 10 cr 4:28 4 minutes, 28 seconds brand and setare is positioned to be the top choice in the antagonist class. The objective is a coherent basket that 4:36 4 minutes, 36 seconds captures more of the IVF journey and not to have a long tail of this SKUs. Now on Zenova, Zenova is a stable specialty 4:45 4 minutes, 45 seconds platform in women's health and we are building uh preference at the point of care and balancing the mix with 4:53 4 minutes, 53 seconds differentiated launches. The near-term job even here is execution uh quality which is consistent prescription depth 5:02 5 minutes, 2 seconds and very disciplined brand rollouts. Our growth here is durable rather than promotion driven. Now moving to our 5:09 5 minutes, 9 seconds toxin platform which has acid and neuroare on the acid front. We are extending from our toxin anchor into a 5:17 5 minutes, 17 seconds fuller aesthetic ecosystem which will include filler skin boosters and bio stimulators. uh we intend to do this without diluting our focus on toxins. 5:28 5 minutes, 28 seconds The logic is very simple here. A broader portfolio enlarges uh the clinician funnel and creates a progression path 5:36 5 minutes, 36 seconds into toxin over time. Uh we've advanced our in licensing uh for global quality fillers and bio stimulators. We building 5:45 5 minutes, 45 seconds a scalable practitioner training engine convert efficiently. 5:50 5 minutes, 50 seconds Now on the neuro front uh uh which is a therapeutic toxin the strategy is a long cycle but high lifetime value uh which 6:00 6 minutes is create new injectors widen indications where guidelines already support use and expand specialtity 6:07 6 minutes, 7 seconds coverage beyond neurology. Uh this is methodical market making which is covering training, evidence creation and 6:15 6 minutes, 15 seconds awareness building so that usage is repeatable and protocol driven. Uh now moving to our uh last uh uh platform 6:24 6 minutes, 24 seconds here which is a surgical uh platform uh where healthcare division operates. This particular division blends modern uh 6:32 6 minutes, 32 seconds evidence-based with muscularkeeletal care. Our flagship over here is Salaki and which is 6:40 6 minutes, 40 seconds positioned as a care pathway rather than a symptomatic cell. Uh Ryol continues to build relevance in the acute GI segment. 6:48 6 minutes, 48 seconds We are adding selectively here. We've added molecules such as monopro and and other molecules where science 6:56 6 minutes, 56 seconds and prescriber behavior are shifting in order to keep the portfolio focused and relevant to the market trends. So that 7:03 7 minutes, 3 seconds wraps up our domestic uh branded formulation business. I'll move to our international business. 7:10 7 minutes, 10 seconds Our international business continues to progress as planned with focus on strengthening our global partnering 7:17 7 minutes, 17 seconds model and expanding regulatory reach. Uh during the first half of the year, Buffett Island secured its first 7:24 7 minutes, 24 seconds marketing authorization in EU. Uh this gives us direct access to regulated markets, an important milestone that 7:31 7 minutes, 31 seconds establishes a platform for future filings. We also received 24 key product and facility approvals across regulated 7:39 7 minutes, 39 seconds and emerging markets including markets such as South Africa, Colombia, Portugal, Myanmar, Sri Lanka, Cambodia, 7:47 7 minutes, 47 seconds Ireland and Lithuania. Uh these approved enhance our footprint across clinical care, gastro and anti-infective 7:54 7 minutes, 54 seconds portfolios. Now on the broader opportunity which we had indicated in the last order the combined addressable 8:01 8 minutes, 1 second market for our priority molecules stand for about 800 million across identified countries. We are finalizing the 8:09 8 minutes, 9 seconds sequence and timeline for market entry based on local intelligence have begun and we have begun the filing of doers 8:16 8 minutes, 16 seconds across multiple geographies. The partnering model remains strong with a continued engagement from leading uh 8:24 8 minutes, 24 seconds global health organizations and regional partners. This is enabling us to scale our complex injectable portfolio 8:31 8 minutes, 31 seconds internationally in a disciplined and complianceled manner. Now on the last part uh I'll give you all a quick update 8:38 8 minutes, 38 seconds on the indoor facility as well. So the facility continues to progress as per plan. Over the past quarter, the focus 8:46 8 minutes, 46 seconds has remained on steady scale up. Tech transfers have now been completed for 40 products and an additional 27 under development and stability testing. 8:58 8 minutes, 58 seconds expanding the base of both localized and liquid indentible offerings. Vendor audits by uh more Indian pharma partners 9:05 9 minutes, 5 seconds continue and with multiple new audits scheduled to the second half of FI26. 9:11 9 minutes, 11 seconds Our global audit timelines remain unchanged with EU GMP and UK MH targeted 9:17 9 minutes, 17 seconds for latest by Q1 of uh FI27 and the US FDA milestone to follow plan triggered timelines thereafter. 9:26 9 minutes, 26 seconds Operationally the plant is on track to achieve its utilization and abida targets for FI26 and we maintain our 9:33 9 minutes, 33 seconds guidance of Indoor becoming margin it operators by FI27 onwards. Overall the project remains aligned with our road 9:41 9 minutes, 41 seconds map and is scaling in a discipline compliance first manner. Uh with that I hand over the call to uh Mr. CFO for the financial update. Thank you. 9:52 9 minutes, 52 seconds Thank you Aik. 9:54 9 minutes, 54 seconds I'm going to give the financial highlight of Q2 of 2526 9:59 9 minutes, 59 seconds versus Q1 of 2526 because Q Q2 of 242 25 versus Q2 of 25 26 is not comparable 10:09 10 minutes, 9 seconds because Q2 25 24 25 do not include the indoor plant because indoor plant was started from January 2026. 10:19 10 minutes, 19 seconds Likewise the half yearly result of H1 of 25 26 is not comparable with H1 of 2425. 10:27 10 minutes, 27 seconds Therefore I'm highlighting the result of Q2 of 25 26 versus the Q1 of 2526. The 10:35 10 minutes, 35 seconds total revenue for the Q2 is 230 K compared to Q1 of 2526 is 227 K. It beta 10:43 10 minutes, 43 seconds for the Q2 is 37.9 K compared to Q1 of 33.2 2 crores the beta margin has 10:50 10 minutes, 50 seconds improved to 16.45% compared to 14.63% in Q1 the profit before tax has been 10:58 10 minutes, 58 seconds increased to 20.5 crores compared to Q1 of 16.3%. 11:04 11 minutes, 4 seconds The fat margin has further improved to 89 8.9% compared to Q1 of 7.18%. 11:11 11 minutes, 11 seconds The profit before tax for Q2 is 14.9 cr compared to Q1 of 12.1. 11:18 11 minutes, 18 seconds Prime margin is further improved in Q2 6.47% versus Q1 of 5.32%. 11:25 11 minutes, 25 seconds Thank you very much. We can start the Q&A session. 11:32 11 minutes, 32 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 11:40 11 minutes, 40 seconds star and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you 11:47 11 minutes, 47 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will 11:56 11 minutes, 56 seconds wait for a moment while the question queue assembles. 12:14 12 minutes, 14 seconds The first question comes from the line of Nitan Gasad from Bank of India Mutual Fund. Please go ahead. 12:21 12 minutes, 21 seconds Uh hi. Hi team. Thanks for the opportunity. One thing which uh I think would want to point out in PPD that you 12:28 12 minutes, 28 seconds guys give out. I think uh somewhere we need to also start putting in numbers in terms of revenue share because that 12:36 12 minutes, 36 seconds graphical representation is not u you know giving us optically every quarter how things are shaping up. So if you 12:44 12 minutes, 44 seconds intend to disclose data I would say you know request you guys you know do put in efforts to also disclose the numerical 12:52 12 minutes, 52 seconds numbers so that life becomes easy for us to track your company. 12:57 12 minutes, 57 seconds Uh coming to the question sir uh would like to understand you know over last uh first half things have progressed on the 13:06 13 minutes, 6 seconds uh on the on the revenue part but when it comes to uh gross margin we have shown uh good improvement. Uh however 13:15 13 minutes, 15 seconds the uh employee expense and the other expenditure have been consistently going up. Could you help us understand you 13:22 13 minutes, 22 seconds know what has changed in last you know four quarters where the costs have been going up but on the sales mix part definitely things are influenced and the 13:31 13 minutes, 31 seconds gross margins have improved. So if you could you know reflect back what has happened in last four quarters and as we stand today uh would this be the uh true 13:39 13 minutes, 39 seconds uh desirable gross margin that our business can showcase with the current sales mix or there is any oneoff. 13:49 13 minutes, 49 seconds Yeah. So uh I think hi pranavir I'll take the question and I think sir I'll just ask request you to come in uh in terms of the margins going forward. So 13:58 13 minutes, 58 seconds just to understand sir about your question. So USA would you like just to give a break up of Indor and Navsari individually or would it be more 14:05 14 minutes, 5 seconds preferred for you in terms of the F4 SBU strategic business units only? Strategic business unit will help because eventually both the plant will start to 14:14 14 minutes, 14 seconds you know run at optimal levels right uh while our business strength relies on or or the uh inherent strength is between the different SBUs. 14:22 14 minutes, 22 seconds True. So I think you know if going forward if you can you know give a breakdown of how the SBUs have done on 14:29 14 minutes, 29 seconds numbers that will help our uh our situation because then we'll be able to closely monitor how things are progressing otherwise we will be you know 14:38 14 minutes, 38 seconds indicatively we'll be close but we'll still not be sure you know how things are progressing and I think you're right I think mostly we discuss it during the investor call but if it's in the form of a PowerPoint 14:47 14 minutes, 47 seconds representation it will really be help to track that on a Q2Q basis fine so uh we got that message. So I'll ask my team also to 14:55 14 minutes, 55 seconds work on that. Uh coming to your question specifically uh yes as uh you know we had mentioned in the earlier few times also about uh the indoor plant finally 15:04 15 minutes, 4 seconds contributing in terms of dellogging the backlog of orders that is one of the reasons where you see the revenue going up. Uh so I'll uh just tell you the 15:12 15 minutes, 12 seconds reasons for the revenue and the gross margins and I'll come to the employee cost specifically and also if you're not asked but the other expenses also would be part of the mind. So I would just 15:21 15 minutes, 21 seconds talk about that also in general just to give everyone a perspective. So uh the revenue would be because of the 15:27 15 minutes, 27 seconds declogging. October 2024 onwards is when the indoor plant uh commercially started raising invoices. I think December was 15:35 15 minutes, 35 seconds the month when the first invoice was raised and that's why you see the capitalization stop uh from Q4 on a 15:41 15 minutes, 41 seconds whole and others were there. Now in specifically regard to the margins increasing is because we also have u in 15:49 15 minutes, 49 seconds this first 6 months uh gone a little bit more higher in the international business and I think that is something which again answer your question if we 15:57 15 minutes, 57 seconds gave you that breakup of how the international business has uh you know little bit moved up as compared to the other sectors that would give you an understanding of how the margins would 16:06 16 minutes, 6 seconds go up and also would continue to go up in the next few uh quarters. also domestic business is also growing. uh 16:12 16 minutes, 12 seconds CMO was the business has little bit u I would say suffered uh in these uh 6 months because most of the capacity 16:20 16 minutes, 20 seconds which was available uh we are mostly focusing on exports and uh we have already requested most of our CMO partners to shift to indoor but this is 16:29 16 minutes, 29 seconds a long drawn process because of audits involved as well as also validation batches and three batch data they wait for at least 6 months to be and then 16:37 16 minutes, 37 seconds every company has their own I would say um you know requirements in terms of QA and then they transition to the new 16:44 16 minutes, 44 seconds facility. But we hope that the CMO business also would start picking up from Q3 onwards and we would see an wholesome you know uh I would say 16:53 16 minutes, 53 seconds revenue to be captured hopefully by Q4 or maximum by Q1 2027. 16:59 16 minutes, 59 seconds Uh coming to the employee cost uh as you know you must have seen the announcements in the last uh I would say three quarters in terms of getting Dr. 17:08 17 minutes, 8 seconds Dr. Rajiv Garal or we got Vit Vijay Gumar from Gala or Dr. Rajiv Aagaral from BSV or uh you know we had Dr. 17:16 17 minutes, 16 seconds Tekken Dr. Raj Shaker from uh international business uh he joined me back also in end of Q4 last year Q1 was 17:24 17 minutes, 24 seconds when he was full-fledged there this year and then also followed by Mr. Rajesh call who joined in uh Q2 this year. So 17:32 17 minutes, 32 seconds there have been some um in the in case of domestic business as well as international business some recruitments and additions done. I'm just 17:41 17 minutes, 41 seconds highlighting the top people and along them also the team has been structured by which uh we have got uh some additions coming in which will of course 17:49 17 minutes, 49 seconds uh we will already have started contribute but they you'll see the add-ons happening in the quarters to come in terms of the regulatory in terms 17:57 17 minutes, 57 seconds of the market penetration in terms of business intelligence and so on and so forth and uh also uh with uh the 18:04 18 minutes, 4 seconds regulatory department also being a little bit more expanded keeping in mind the demands of Indor so that's why there have been some you know products which 18:12 18 minutes, 12 seconds have been uh I would say validated for the Indian market where there are some phase 3es going on or maybe there are some validation batches and testing 18:20 18 minutes, 20 seconds going on or bicycle being done for certain products which we are going to launch in the next year as well as some uh clinical data being worked on on some 18:27 18 minutes, 27 seconds complex injectables and that's the reason other expenses also have little bit gone up in terms of R&D as well as those here and employee like I mentioned 18:35 18 minutes, 35 seconds because of these restructurings and addition of team members uh this is what has happening plus the area is also of course is one of the point uh but again 18:43 18 minutes, 43 seconds I'll hand it over to runtas maybe he can elaborate in a little more uh specific manner so please take it forward 18:51 18 minutes, 51 seconds basically if you see employee expensive has been gone because of the indoor plant we have to incur approximately 4 18:59 18 minutes, 59 seconds and a half crores per quarter salary and that is one of the reasons the employees expenses have been garnered that was very high because 9 cr is the extra 19:08 19 minutes, 8 seconds employee expenses result in the Q2 of current year compared to Q1 Q2 of last year. 19:15 19 minutes, 15 seconds Other than this, there is annual increment has been given to the employees. That is another one of the reason for increasing the employee expenses. The finance cost has been gone up because of the capitalization. 19:26 19 minutes, 26 seconds Previously the interest was capitalized in Q2 of the last year whereas the current quarter the interest has been charged to the P&L. Similarly the 19:35 19 minutes, 35 seconds depreciation has been increased because only because of the in indoor interest is also increased because of the indoor other expenses has been increased 19:43 19 minutes, 43 seconds because of the indoor also because there is a light electricity bill there is a convertion and there is a fuel expenses all these 19:51 19 minutes, 51 seconds expenses is also contributing because of the indoor because including interest depreciation 19:58 19 minutes, 58 seconds employee cost and other expenses around 18 crores per quarter we are incuring for indoor expenses. 20:07 20 minutes, 7 seconds Got it. This is very clear sir. This is very helpful. Uh apart from this uh just wanted to understand on the domestic part you know how this business is 20:15 20 minutes, 15 seconds scaling up. Uh because uh uh you don't have the past track record of how the how the uh cot numbers have shaped up. 20:24 20 minutes, 24 seconds So you know any head up you know how first half the domestic growth would have been and same for the international business. 20:32 20 minutes, 32 seconds Yeah. So uh international business of course is growing in uh you know almost by uh I think 32 to 33% that is also 20:41 20 minutes, 41 seconds reason because of some uh tenders from the UK market as well as some new markets also opened up like Canada and 20:48 20 minutes, 48 seconds South Africa and Brazil uh and in terms of the domestic market specifically uh the infertility division is really uh 20:56 20 minutes, 56 seconds taking steam with the pure graph and the imunosin alpha along with even super graphics was 21:04 21 minutes, 4 seconds launched. So the info division is one of the growth uh I would say players the uh critical care as well as parish I think uh are growing at around 8 to 10% but 21:13 21 minutes, 13 seconds that is in spite of and that is the value growth but the main issue would be of course uh the erosion of uh units I'm 21:20 21 minutes, 20 seconds sorry the units are growing much higher but the value is being eroded so you see a net of around four to 6% only coming there because there has been some 21:29 21 minutes, 29 seconds erosions in pricing so it's not the margins getting affected but the top line being affected because there's a overall all uh priced downwards trends of the API which has to be passed on to 21:37 21 minutes, 37 seconds the market. Uh but that's not that major. Uh I like I said because of the capacity priorities the CMO has definitely taken a dip uh in this first 21:46 21 minutes, 46 seconds 6 months. Uh but again coming back to the domestic market the healthcare business and Genova are in that 10 to 15% trajectory. Uh this uh fertare is a 21:55 21 minutes, 55 seconds little bit on a higher 18% and the domestic 40are I mean critical care and spurs would be around uh 5 to 6%. 22:04 22 minutes, 4 seconds Perfect. Very clear. I have more questions, but I'll join the queue and come back to you. All right. Thank you. 22:11 22 minutes, 11 seconds Actually, uh before we go to the next question, I forgot I just got a nudge from my colleague. We forgot to mention the bottle toxin uh part of the business and the botland toxin business is also 22:19 22 minutes, 19 seconds growing at around 22%. For uh both that is uh neuro as well as aesthetic. So that completes the domestic basket. So that's proceed to the next question. 22:30 22 minutes, 30 seconds Sorry, I just had to add that. 22:36 22 minutes, 36 seconds Thank you. The next question comes from the line of Bhavya Sonala from Samaza Capital. Please go ahead. 22:45 22 minutes, 45 seconds Yeah, thank you for the opportunity. Am I audible? Uh yes, you're audible. Yeah, please go ahead. 22:53 22 minutes, 53 seconds Yeah, just two questions. So you know last call you had uh kind of spoken about how we were in talks with some US 23:01 23 minutes, 1 second uh brand for invitation of Stan. Has there been any update on that? Are we still in talks? Uh yes. So uh like I think I that was around two quarters 23:09 23 minutes, 9 seconds ago. Last quarter already I also clarified that we had received an commercial offer which we found uh not worth pursuing in terms of the band 23:17 23 minutes, 17 seconds bandwidth which we had to employ in terms of uh setting up a separate entity only for the regulated markets. So uh 23:25 23 minutes, 25 seconds talks are still on but like I said for us the priority right now would be to completely scale up indoor because as you understand if tomorrow even if the 23:32 23 minutes, 32 seconds money comes in from someone else uh the entire bandwidth to create a new facility again would put us into some sort of a capital investment for the 23:40 23 minutes, 40 seconds next two years and you know my team would be engaged. So the priority right now as a conscious call between the CFO myself and the team that we have indoor 23:48 23 minutes, 48 seconds we have the dual chamber bag we have botlin toxin let's uh go for I would say focus on these three things which are 23:55 23 minutes, 55 seconds already available with us get the debt off the books uh go for a top line and increase the margins also there'll be a sort of a GLP1 contract manufacturing 24:03 24 minutes, 3 seconds opportunity also where we'll be putting in some money which is anyway ongoing since the last few months so let's focus on all this where our you know I would 24:11 24 minutes, 11 seconds say bandwidth is already there and we already have our hand in the field and then maybe after a year or after two years if that opportunity comes up we can explore it. 24:23 24 minutes, 23 seconds Understood. So the other opportunity is like GLP you spoke about that the timeline would be another few quarters to get some solid um kind of business 24:31 24 minutes, 31 seconds coming in. So the GLP is a GLP1 is a pure CMO models with HRO which is there and one more company but mostly with HRO 24:39 24 minutes, 39 seconds where we are going to take the brand for like as you are aware with Guad tied up with HRO for the front ending. Similarly 24:47 24 minutes, 47 seconds here we are purely looking at a CMO role for FEMA for the India and some other 24:54 24 minutes, 54 seconds markets also. So those I think from Q1 the patent goes off in March 2026. So we see that I think Q1 revenues should 25:01 25 minutes, 1 second capture that depending on the other marketers depend on the regulatory approval DCI approval that is and depending on how the market goes you 25:09 25 minutes, 9 seconds know so it's too preliminary to talk about uh GLP1 uh but like I said uh there is important bandwidth being utilized for that but 25:17 25 minutes, 17 seconds yes that should whatever comes upside would come in uh Q1 understood understood this just this the 25:24 25 minutes, 24 seconds last question I think you spoke about it but this time confirmed from the last quarter to this quarter you know the revenue uh increase has been quite 25:33 25 minutes, 33 seconds nominal. So is that of the result of one that you spoke about some API prices have taken a dip and the second that the 25:40 25 minutes, 40 seconds C CMO business has taken a hit because I'm assuming Endor would have scaled up quite a bit considering 40 molecules have already you know that transfer has 25:48 25 minutes, 48 seconds been done so is that those reasons or is it something else that is kind of making the revenue look very marginal in terms of last quarter? 25:57 25 minutes, 57 seconds So when you compare April to June to uh July to September uh if you see the additional revenue which whatever you 26:05 26 minutes, 5 seconds can see as compared to the last year is purely indoor related and because you know as you know we are almost out of capacity in Navsari. Now answering your 26:13 26 minutes, 13 seconds question specifically about Q1 versus Q2. So there's always a transition where you know some quarters you take a product like a tickop planet and some 26:21 26 minutes, 21 seconds quarter you take a product like a panther presole. So even though the capacity utilized in terms of units is increasing from Q2 to Q1 but of course 26:29 26 minutes, 29 seconds we had a you know more production of uh you know like a vancom acroyin and uh what do you call uh pantasel products 26:36 26 minutes, 36 seconds happening in Q2 whereas in Q1 we had orders more of TKO running at the top line were a little bit more higher. So 26:43 26 minutes, 43 seconds this averaging so as the batches get transferred they are campaign based production which is happening in indoor. 26:49 26 minutes, 49 seconds So you will see the cumulative effect coming in maybe Q4 where you'll have you know both the basket and product being stabilized because the advantage of 26:56 26 minutes, 56 seconds indoor is that once I take a batch of a TCO plan is 105,000 W or a TJ cycling which is almost 44,000 miles then the 27:03 27 minutes, 3 seconds repeat orders come after almost a quarter so you know with the existing clients what we have or even our domestic business the inventory build up 27:10 27 minutes, 10 seconds so the advantage of the large um I would say batch size in indoor helps us to you know keep the capacity free for any 27:17 27 minutes, 17 seconds opportunity business coming in. So Q1 was mostly where you had high pricing and high revenue molecules as a mix. So 27:25 27 minutes, 25 seconds even though the quantity increase in Q2, you had then low revenue products like a panthropol or vancomy or aithroycing being part of the tech transfer. As you 27:33 27 minutes, 33 seconds go more in the Q3, there'll be some fungi with a mixture of uh even uh I would say glutathione and doxycyc which 27:41 27 minutes, 41 seconds again are a mixture of medium and high-end products. But the volumes of fungus are less and the uh I mean the low no low transfer pricing models are 27:50 27 minutes, 50 seconds high. So that mixture will continue and you will see the benefit from Q4 like I said as a whole. 27:58 27 minutes, 58 seconds Okay. Thank you so much. I'll come back in. Thank you. 28:02 28 minutes, 2 seconds Thank you. The next question comes from the line of Adisha Pal from MSA Capital Partners. Please go ahead. 28:10 28 minutes, 10 seconds Hello. 28:12 28 minutes, 12 seconds Uh in audible yes please go ahead. Thank you so much for the opportunity. 28:18 28 minutes, 18 seconds Uh just lot of my questions have been answered. Uh just uh wanted to understand so now that a lot of our CMO 28:28 28 minutes, 28 seconds partners have have audited or are in the process of auditing our indoor plant. A large part of that revenue uh will move 28:36 28 minutes, 36 seconds to indoor. So there'll be a dual effect right? Napsai will start contributing a lot to exports and the CMO will move 28:43 28 minutes, 43 seconds from Indoor. So if you can just touch upon how Q3 uh the current Q3 looking 28:49 28 minutes, 49 seconds and the Q4 looking in terms of uh plant audits for my existing customers. 28:56 28 minutes, 56 seconds Yeah. So almost four of our clients have already gone full sleds to indoor except of course there are some residual products which always go depending on 29:03 29 minutes, 3 seconds the media field. the lipo lamp for tourism B and the depo injections are not shifted to indoor because there we 29:10 29 minutes, 10 seconds want to go for a one-time validation for international market and domestic market together. So uh we hope that uh around 29:18 29 minutes, 18 seconds three more clients would be on boarded around with along with the four clients also. I'm looking at purely domestic CMOS right now. Of course there are 29:26 29 minutes, 26 seconds small small individual clients which normally have one product or you know a couple of products at max which uh also are going to be added but the major like 29:34 29 minutes, 34 seconds said we had around um 12 to 14 major clients out of the 12 to 14 we can assume that 50% should be onboarded 29:42 29 minutes, 42 seconds there in by Q3 and uh also there will be a new product line in terms of the vials as well as the anthals which we are 29:50 29 minutes, 50 seconds looking at CMO beyond the existing product line insari so those also will start kicking in from Q4 and Q1 next 29:58 29 minutes, 58 seconds year. So that's why I mentioned that by Q4 you get a little bit of a holistic view and u uh again to say that uh the 30:04 30 minutes, 4 seconds erosion in prices do not contribute much uh in terms of the indoor project as such but uh uh that is mostly the 30:12 30 minutes, 12 seconds critical care and the say division which is normally an on that's an ongoing thing which happens year one year also. 30:19 30 minutes, 19 seconds So this is what I feel. I think Q3 you'll see three more and then by Q4 you'll see a little bit more of mixture of uh existing clients coming in plus new clients coming in for new product lines. 30:28 30 minutes, 28 seconds There's a bit of bit of color on. Q can I say Q3 and Q4 will be because uh I assume Q2 will be flat in terms of CMO 30:37 30 minutes, 37 seconds revenue but Q3 and Q4 could be a a large bump up in terms of revenue along with the with our existing scale up of our uh 30:46 30 minutes, 46 seconds domestic bank business as well as slight uptick in exports because of being cleared in is that is that is that the way to look 30:56 30 minutes, 56 seconds at it so I think large as compared to your definition management might be I'm just saying that on the lighter side but yeah definitely there will be an upside. Uh 31:04 31 minutes, 4 seconds how much will that be? Uh we are trying to fit in as many pending orders as possible. So I would hope that the you 31:12 31 minutes, 12 seconds know the Q QA clearances from the other clients come a little bit faster. So you know we can shift them. But you also have to understand that these uh uh 31:20 31 minutes, 20 seconds clients also actually building build up almost three months inventory from now before they shift because they also keep this transition risk in place before 31:28 31 minutes, 28 seconds they actually shift from site A to site B keeping in mind any issues or anything which comes in troubleshooting which is a normal protocol which happens. So I 31:35 31 minutes, 35 seconds still expect a decent uh I would I would say I would expect an upside in Q3. Uh but uh in Q4 I would definitely expect a 31:43 31 minutes, 43 seconds little bit uh I would say more decent or better upside. 31:52 31 minutes, 52 seconds Just one last question. So first of all uh congratulations on the GP1. Um the other thing is just wanted to understand 32:00 32 minutes your view in terms of uh bio signals or biologics because uh large part of those 32:08 32 minutes, 8 seconds molecules are localized. So are we planning to enter that value chain either through CMO or export? Are we 32:18 32 minutes, 18 seconds already in discussions? What is your view on that? 32:22 32 minutes, 22 seconds So biological has become uh I would say defined in many parameters like a monocal antibbody or a re combinant set 32:29 32 minutes, 29 seconds of products or for that matter even uh conjugates going on and there are other molecules also. So balin toxin also I 32:37 32 minutes, 37 seconds consider as a part of uh that thing which we already are into the vaccine thing is something which we already do but that will have its own time period 32:45 32 minutes, 45 seconds of whatever x five years. uh recommerant products in terms of uh in hormones you know beyond CG LMG SSH is what we 32:54 32 minutes, 54 seconds already working on uh and we are working on HCD also. So we have our own uh set of biological work happening in our 33:02 33 minutes, 2 seconds pipeline or maybe launch in terms of botlin toxin which would be more relevant to our uh therapeutic uh focus 33:09 33 minutes, 9 seconds but uh in terms of monoc antibodies I think we would uh not be going into because that's not our core competency 33:16 33 minutes, 16 seconds plus uh we all other companies already have a better lead than than us and we are too late or I mean very funny we first of all we don't have our basic uh 33:24 33 minutes, 24 seconds therapeutic prowess there and I think even if we want to get into there. You know, there are better people than us who are doing it and the pricing and the lead they have. I think it'll be not 33:33 33 minutes, 33 seconds economically viable for me to get into the monogram antibodies. So, this is my opinion. I may be wrong, but this is my opinion as of now. 33:42 33 minutes, 42 seconds I just wanted to understand this as it's it's it's very clear and thank you so much and wishing you and the team all the very best for the upcoming years. 33:51 33 minutes, 51 seconds Thank you. 33:53 33 minutes, 53 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. 34:02 34 minutes, 2 seconds The next question comes from the line of Shubhham from Tick Investments. Please go ahead. 34:08 34 minutes, 8 seconds Uh congratulations sir for a good set of number. So sir uh our revenue have grown by 6% quarteron quarter basis. So can I 34:16 34 minutes, 16 seconds assume that uh it is fully contributed by indoor division. So around uh in the last conference call you told that you 34:24 34 minutes, 24 seconds were utilizing around 18 to 20% of indoor uh total uh capacity. So it would 34:32 34 minutes, 32 seconds be around 24 to 25% this quarter right. So yeah uh I think RTA can give a 34:39 34 minutes, 39 seconds better percentage idea because he does this also on a monthly and a quarterly basis but yes you would be somehow right would he be right that 18% would have 34:48 34 minutes, 48 seconds evolved to 24 around any I'm sure that 22 to 23 was last last month so I'm sure it would be around 24 now. Yeah. 34:54 34 minutes, 54 seconds Yeah. Basically whatever the top line has come basically is only from India. 34:58 34 minutes, 58 seconds There is no change in the the revenue from this sorry because capacity has been fully utilized presently the 35:06 35 minutes, 6 seconds production capacity is around 25% but the sale will be around 23% during this quarter because certain certain material 35:14 35 minutes, 14 seconds line is the stock but the production was around 25% and sale is around 23%. 35:19 35 minutes, 19 seconds Yeah because something will be the validation which will keep it which will not be selling also. Absolutely. Yeah. 35:24 35 minutes, 24 seconds Okay. And uh sir uh there is a steep increase in our current tax effect. So can you give a a brief about it? 35:33 35 minutes, 33 seconds So can you repeat that again? 35:35 35 minutes, 35 seconds Yeah there is a basically what happened it is not increasing the depths. If you see the cash cash in hand it is 70 K 35:43 35 minutes, 43 seconds lying with the cash in hand because on 30th September the bank has requested that instead of you repaying our cash 35:50 35 minutes, 50 seconds replace you fully replace our cash and keep the balance in current account. 35:54 35 minutes, 54 seconds That is the reason if you remove the cash the 65 cr rupees which has been showing the cash in hand compared to last quarter last half then you will see the loan has also be cut down. 36:06 36 minutes, 6 seconds Okay. And sir uh are we expecting aida break break even in indor facility in this year? 36:14 36 minutes, 14 seconds Yeah in Q4 we are expecting the aida break is going to come. 36:19 36 minutes, 19 seconds Okay sir thanks for answering the question. Thank you. 36:25 36 minutes, 25 seconds Thank you. The next question comes from the line of Raja Kumar Vanatan from RK Investment. Please go ahead. 36:34 36 minutes, 34 seconds Yeah. Good evening. Thanks for the opportunity. Can you hear me? Yes sir please go ahead. 36:40 36 minutes, 40 seconds Yeah just a few questions. So uh the first one is on the uh the capex that we have in so far. I just wonder what is 36:47 36 minutes, 47 seconds the maximum asset time we can expect? I think we have about 500 cruise lot of traffic right I mean in terms of fix so 36:58 36 minutes, 58 seconds it's four numbers are good numbers to look at so if I understood your question correctly uh what is the total capex and 37:07 37 minutes, 7 seconds what sort of returns can we expect on that capex is that right the top can do yeah top line yeah top line yeah so you 37:15 37 minutes, 15 seconds want to take that yeah no problem the total capex for indoor including the interest capitalization everything is 37:23 37 minutes, 23 seconds around 350 355 crores and according to our estimate if the product means is is this top line is depending upon lot of 37:31 37 minutes, 31 seconds factor product means the result is depending upon international market as well as domestic market but we are expecting that the top line will be in 37:39 37 minutes, 39 seconds the range of 750 to 800 cr at 70 to 80% capacity utilization 37:47 37 minutes, 47 seconds okay so that times the number. Okay. Uh it says the next question is what is the output on the borrowing side? So uh 37:55 37 minutes, 55 seconds where do we see this number in the next two to three years? 38:00 38 minutes Basically we do not have any major capex plan in next two years and there will be revenue generation. Today our borrowing 38:08 38 minutes, 8 seconds including working capital as well as uh thumb loan is around between 350 360 cr 38:14 38 minutes, 14 seconds and for Hindor also whenever there is increasing in the working capital requirement because whenever there is a 38:21 38 minutes, 21 seconds topline increase you require to have a outselling datas as well as working capital requirement for inventory also. 38:28 38 minutes, 28 seconds So whatever the increasing in the top line will going to come that working capital requirement we will not going to borrow. So we feel that two years till 38:37 38 minutes, 37 seconds whatever additional working capital is required for India Quran we will able to generate from internal revenue and the re the loan should come down to from 350 to 300 after 2 years. 38:50 38 minutes, 50 seconds Okay. Thank you so much. 38:54 38 minutes, 54 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. 39:02 39 minutes, 2 seconds The next question comes from the line of Nitan Goar from Bank of India Mutual Point. Please go ahead. 39:09 39 minutes, 9 seconds Yeah, thanks again. So this would be more uh broader question. I wanted to understand uh over next 3 years if I had 39:16 39 minutes, 16 seconds to understand the packing order in which the business is going to shaper. I think from bandwidth perspective indoor utilization is the top priority. 39:25 39 minutes, 25 seconds uh but then uh within the business segment if you could you know help us understand uh you know where does uh 39:34 39 minutes, 34 seconds bottlene or woman healthcare or uh CMO business how how do they stack up on priorities 39:42 39 minutes, 42 seconds uh we understand the efforts that you're putting in through the uh PPT or press release that you give out uh but how 39:49 39 minutes, 49 seconds should we understand the gravity of those efforts in terms of how how you know what is the uh big picture looking 39:56 39 minutes, 56 seconds like like would hospital uh segment become the critical part of our cog or would healthcare will become a critical 40:03 40 minutes, 3 seconds part of a cog in 2028. If you could just help us put the you know broad jigs. 40:10 40 minutes, 10 seconds Yeah. So if you see the I divide the our entire business into purely injectables and injectables also if you see the 40:18 40 minutes, 18 seconds product lineup we have either a critical care or we have a so we have a life saving and we have a lifegiving. Let's put it that way. Portland toxin of 40:25 40 minutes, 25 seconds course becomes like the third anchor because that's sort of a separate thing. 40:29 40 minutes, 29 seconds So let me first focus on the life saving part. That's the critical care part of business where we have two divisions uh which is critical care. Of course it has 40:37 40 minutes, 37 seconds further divisions down but major parent division is critical care and the second parent division is parish uh where we because of the product baskets which we 40:46 40 minutes, 46 seconds are getting from Navsari and now in Indor we have gone for a little bit more of a focused approach. So you know the anti so in the critical care we have the 40:54 40 minutes, 54 seconds CX and microare and then we have the primma care in sparish we have a complete focus on dual chamber bags contrast medias as well as total 41:03 41 minutes, 3 seconds currentation. So we have clearly done that the entire manufacturing backward uh core competency of goofix should be focused in the market going forward by 41:12 41 minutes, 12 seconds which there are in pipeline we have also more products coming in all these uh I would say two divisions which we'll take it through. So this uh in spite of uh having no product approval in this year. 41:22 41 minutes, 22 seconds So if you saw in the last two years the force separately was the only launch of crowd prominence and then in DC we have almost now three four products coming in 41:30 41 minutes, 30 seconds in terms of a vacin and then rest are functioning. So every year if we hope to even launch one new product and increase 41:38 41 minutes, 38 seconds the penetration by I would say uh more hospitals we hope that uh in critical care with the erosion uh 8 to 10% should 41:45 41 minutes, 45 seconds be the way going forward. uh sparish would be a little bit of a different approach because there we are looking into contrast media total parental nutrition and dual chamber bag where 41:53 41 minutes, 53 seconds even after two years uh you know of launching the dual chamber bag we finally got the approval of the price increase in the month of September 2025 42:02 42 minutes, 2 seconds so meopen bag which we always wanted to have almost a 30% premium we finally got a 15% premium allowed by the government 42:09 42 minutes, 9 seconds so that is a big headwind for us that you know that that will help us to now launch the dual chamber in a much more relevant way because hospital also has 42:16 42 minutes, 16 seconds to look into the margins they also get uh a selling a while against a DCB also. 42:21 42 minutes, 21 seconds So these two uh spurish would go for a higher trajectory in terms of growth because B is also hardly 50 60 cr whereas critical care is around 200 cr. 42:29 42 minutes, 29 seconds So uh that is what is it infertility which is right now around combined with two segments of 40k and 40k life or we call it you know the 40 max. 42:40 42 minutes, 40 seconds These two would combine to cross you know close to 100 or more than 100 this year again and then go for uh after the 42:48 42 minutes, 48 seconds launch of the new gem uh that is super pure SSH we hope that that journey would be around 15 to 20% year-over-year. 42:55 42 minutes, 55 seconds Portland toxin is a very small base. So even though we grow by like I said 22 to 2% because or we grow by even uh a 43:02 43 minutes, 2 seconds little bit higher we hope that that requires a little bit more of brand building environmental and you know capacity I mean I would say category building and that I always talk about 43:11 43 minutes, 11 seconds the hockey stick I don't know when it'll come but our efforts are on to get the hockey stick going on because of the margins available in the product that we can really invest in the category 43:19 43 minutes, 19 seconds building part of it also the international business of course would be uh uh growing at a much higher percentage age and that is would come 43:28 43 minutes, 28 seconds once you know as India de de I indor declutters Navsari you'll see more and more bank orders being taken care of 43:34 43 minutes, 34 seconds from uh navsari and that is the time and we also have an audit coming up so we hope that by January to March our indoor 43:43 43 minutes, 43 seconds also would be EUGMP approved so then we can see some you know uh site attendance or tech transfers happening from not 43:51 43 minutes, 51 seconds tech transfer I would say some product transfer happening for the international market also from Q1, Q2, 2027 to indoor 43:58 43 minutes, 58 seconds which will again you know de de I would say declutter the capacities further. So international business uh overall which 44:06 44 minutes, 6 seconds is mostly injectables the same thing they are the same injectables what we sell in the India market there's no separate product basket so life saving the life giving and also the cockin 44:15 44 minutes, 15 seconds that's our focus in the international market also the approach is different in some countries we have a full force in some countries we do it via distributors in some countries we uh direct supply to 44:24 44 minutes, 24 seconds the MA holder and then they distribute so these are the three approaches which will continue but overall we hope that the the focus of a jump of 20% euro year 44:33 44 minutes, 33 seconds or 15 20% euro year should continue with all these things started you know once you start kicking in together 44:42 44 minutes, 42 seconds very clear and uh selves if you could help us understand SVX uh how much amount we are putting in as 44:50 44 minutes, 50 seconds uh NCR&D or any any budget any timeline that you have in mind how much you want to invest be this kind of products 44:58 44 minutes, 58 seconds products sellax yeah so was just a pure investment in terms of uh you know to 45:05 45 minutes, 5 seconds see how it goes. Uh it was it's a very interesting thing where we have taken India right and also the development 45:12 45 minutes, 12 seconds thing but I believe the company in South Australia still working on the pre-clinical and the cell line capitalization. So uh I would just say 45:20 45 minutes, 20 seconds it's not I think the total investment also would not be more than 100,000 150,000 right now and then followed by certain milestones where we have taken 45:28 45 minutes, 28 seconds some I think 6% stake in that company and uh hoping that you know once we get a breakthrough there uh we should get uh 45:35 45 minutes, 35 seconds the you know front end advantage in in India and also some other countries where we have exclusivity uh because I 45:42 45 minutes, 42 seconds feel uh in solid tumors uh there's nothing better than the iminooncology which was my thesis this topic also way back in US. So I really believe in what 45:51 45 minutes, 51 seconds they are doing. the combination of anti CD40 antibodies and interlucines are a solid uh science to take care of solid 46:00 46 minutes tumors specifically and uh I think in the next two three years we'll come to know whether uh you know the success is there or if they cannot take it through 46:08 46 minutes, 8 seconds I'm sure someone else will show interest and might just take them ahead take it over and it's it's for me it's like I'm more of a passenger there rather than uh 46:17 46 minutes, 17 seconds I would say a contributor yeah the vaccine and the toxin part is something as biological which I would like to because you were taking it forward. So 46:24 46 minutes, 24 seconds that's the reality of sellbacks as of now. 46:27 46 minutes, 27 seconds Got it. Very clear. And uh today's cross margin do they reflect the true picture or the potential that a company carries 46:34 46 minutes, 34 seconds over next three year or we we should also expect a change over here. 46:41 46 minutes, 41 seconds Yeah, I think I will answer on the gross margin. I understand that an operating level is available because of Hindor. 46:50 46 minutes, 50 seconds You're referring to the gross margin right sorry I think please go ahead sir I interrupted please go ahead sir if you see the past history of from last 46:59 46 minutes, 59 seconds two years the gross margin is between 18 to 19% and after margin yeah 18 to 19% 47:07 47 minutes, 7 seconds to 19% and after 2 3 years after 3 years after indoor I feel that the loss margin 47:14 47 minutes, 14 seconds should at least be at 20% it may touch 21% 21% After we increase our sale ratio 47:23 47 minutes, 23 seconds presently our sale ratio is around 20 20 25% to international market if it touch 35% then the gross margin may touch to 47:32 47 minutes, 32 seconds 212 yeah 47:41 47 minutes, 41 seconds got it got it perfect sir uh you're doing a good job and we want to back you up for that it might be a long journey Good. But yeah, good sir. Thank you sir. 47:51 47 minutes, 51 seconds Yes. Thank you. 47:54 47 minutes, 54 seconds Thank you. The next question comes from the line of Nita Sha from Kamayaka wealth management. Please go ahead. 48:02 48 minutes, 2 seconds Yeah. Hi sir. Am I audible? Yes. Go ahead. Mity G. 48:08 48 minutes, 8 seconds Uh so I personally want to thank you for the detailed uh you know question and answer that you do every uh con call. So 48:15 48 minutes, 15 seconds from my understanding I feel that you have a novel product in the Botox space. 48:20 48 minutes, 20 seconds Uh you know you have intellectual property and you mentioned that in the future you may have to uh do a capacity 48:26 48 minutes, 26 seconds expansion to cater to uh you know the uh proposal which you said that you will consider at a later point in time. So I 48:34 48 minutes, 34 seconds realized that there are a lot of segments uh which are already catering to. So why not you know focus more towards the Botox side of things 48:42 48 minutes, 42 seconds considering it's a novel product rather than you know trying to cater to so many different segments. So you know maybe throw some more light on that. 48:50 48 minutes, 50 seconds Yeah. So if I understand your question correctly if you see my our our legacy and our core competency is injectable life manufacturing and all these 48:58 48 minutes, 58 seconds lifegiving life saving and toxin uh we I call it stanox just because it's a trademark. I I avoid selling Botox but yes so all these are 49:06 49 minutes, 6 seconds part of the legacy of the same lifeline and the core competency of the company. 49:11 49 minutes, 11 seconds So if you see today also the scalability I'll first answer your toxin question first and why the focus is India and 49:18 49 minutes, 18 seconds then maybe the world. If you see in the entire world the total market would be anything around 5 to7 I mean 5.5 to 6 billion or with a projection of around 49:26 49 minutes, 26 seconds 78 in some reports it's around 7 to8 some reports it's 5.5 to6 there uh already there is a legacy of uh you know 49:35 49 minutes, 35 seconds botox allergen abi or galena for that matter in India the current infrastructure what we have created and what we can at least we can enter enter 49:44 49 minutes, 44 seconds or you know we can really focus on the Indian market that the total revenue of the toxin both in therapeutic as well as neurological segment is only 25 million 49:53 49 minutes, 53 seconds or even less than that sorry it was uh it was if is I correct it's around I think around 18 to 20 million that's the 49:59 49 minutes, 59 seconds only uh revenue of toxin in India if I compare the population of every other country and the actual u I would say 50:08 50 minutes, 8 seconds sales thing I think India is still the penetration and the lot of work has to be done and uh we feel that for me to 50:15 50 minutes, 15 seconds tomorrow to create uh another asset of 25 million In terms of even and very frankly we are not looking at taking any debt also to create that asset maybe 50:23 50 minutes, 23 seconds after one or two years. We're very clear that there would be a debt funded by a partner uh which is something in lines of what we got earlier as offer and 50:31 50 minutes, 31 seconds tomorrow the partner will get the rights of the front end in certain markets and certain markets would open to us also. 50:37 50 minutes, 37 seconds So that's the strategy which we're going to follow. But the important strategy is that you know when you come up with that sort of a setup you need an entire bandwidth of regulatory of quality of my 50:46 50 minutes, 46 seconds you know CEO Mr. Ranges also to need their hands on when the entire thing we we've seen what happened with u indoor also you know the entire band would get 50:54 50 minutes, 54 seconds sucked onto that and we feel that already we are sitting on quite uh decent I would say pillars or bases 51:02 51 minutes, 2 seconds which anchors which we can focus on and even in case of topin if we focus on the Indian market with the current setup which we have we should do that just to 51:09 51 minutes, 9 seconds cater that international business and international market where anyway competition is higher and there's a lot of a different mindset because you know once you get into the regulatory process 51:17 51 minutes, 17 seconds there you need a pharmarmaccoian you need something else there's a lot of other things also which get associated with a toxin business it's not as simple I feel even if in the next two years 51:26 51 minutes, 26 seconds again I'm saying uh if you focus on India get it to a 100 cr level uh business you know as a goofy asset but 51:33 51 minutes, 33 seconds already we have now only we have launched the product three years or four years ago four years in I think aesthetics and uh sorry three years in aesthetics and maybe two two and a half 51:42 51 minutes, 42 seconds years in uh neurology and we already are number two so we already have grossed the other players and you know reach to a revenue where we are number two after 51:49 51 minutes, 49 seconds a so we feel let's focus there uh of course focus on our critical care infertility for which we have this amazing infrastructure in indoor we have 51:57 51 minutes, 57 seconds a great pipeline coming up also and with a 15 20% headway coming up down the line once we are cash positive much more than what we are right now we already are 52:06 52 minutes, 6 seconds cash a little bit more cash positive and the debt has been repaid we can take a little bit more bolder steps in terms of the regulatory as well as the bandwidth 52:13 52 minutes, 13 seconds creation also and uh that's why I'm saying in this year also If you see a lot of bandwidth has been created by addition of these uh new I would say 52:20 52 minutes, 20 seconds leaders for our international business uh the act inferiority business our booking toxin business and even for spur 52:29 52 minutes, 29 seconds with Mr. Rajes call. So this structuring happen this year and we'll see the benefits in the next two to three years and then once we are ready and little 52:36 52 minutes, 36 seconds bit more mature there then of course we should look at a bandwidth edition also but for me as management also we should be very clear how many reviews how many MIS we need to take and any new division 52:45 52 minutes, 45 seconds coming up always takes more time of us so I feel we are okay for the next two years to go for that 15 20% 52:52 52 minutes, 52 seconds year and become uh a little bit comfortable more with debt and more cash flow and then I would more than happy to 53:00 53 minutes satisfy you also in terms of the international appetite of Portland toxin. Yeah. 53:03 53 minutes, 3 seconds Right. So there was I remember just a few like I would say a year or two ago we had discussed this where you know you had mentioned that there was a clear 53:10 53 minutes, 10 seconds price differential between uh the uh you know pricing of bottle and tops in here and abroad. That's why I just thought that you know capturing uh export market 53:20 53 minutes, 20 seconds share through a lower price differential would you know really benefit and it's like a very niche novel product which is why I was saying that maybe we could be 53:28 53 minutes, 28 seconds more so so it's not so when I when I meant it that time also I didn't mean the pricing part of it I mean the prize was there but in order to get that prize also like 53:36 53 minutes, 36 seconds today if you go to a Dubai or to a US or Europe when anyone is going for an aesthetic use of uh toxin they want to 53:43 53 minutes, 43 seconds do the best I mean for them you know small delta of price doesn't make a decision that I want. So they always say I if I'm paying so much for my I would 53:52 53 minutes, 52 seconds say cosmetic treatment which is anything around uh you know 50,000 to maybe five lakhs whatever I would prefer to have uh the best of the brands. So for us also 54:00 54 minutes to go it's not only the infrastructure which would be there. There will be a lot of clinical trials we need to be done a head-on data which has to be created countrywise you also have to go 54:08 54 minutes, 8 seconds for which anyway we are doing in India right now right now a lot of our revenue goes in creating all this data for the India market but that would have to be replicated on a much higher scale where 54:16 54 minutes, 16 seconds the cost is also much higher to enter for the regulatory process to go for the clinical data. So even the the entry point to all these uh countries for 54:25 54 minutes, 25 seconds getting that delta and pricing could require a very high upfront which I feel we should do after 2 years and of course and I think even in the last 30 years of 54:33 54 minutes, 33 seconds this molecule there have been only six to seven players of this toxic I'm sure the next two three years will not get a plethora of people coming in so we still 54:41 54 minutes, 41 seconds I feel we still have time that's a great point yes and last question from my side is uh 54:48 54 minutes, 48 seconds that you had mentioned regarding semlut side right that you would be contract manufacturing could you throw some more light on that what is the potential of this 54:56 54 minutes, 56 seconds uh very frankly I don't have that knowledge because we we are pure CMOS uh of uh hetro 55:03 55 minutes, 3 seconds and uh they have done the market analysis we have invested in the back end to support them so it'll be very preliminary of me to comment on this 55:11 55 minutes, 11 seconds because the front end strategy is completely handled by hetro of course we have the projections for next year and all that but like I said it's it's not something I control so I would refrain 55:20 55 minutes, 20 seconds from talking right now. I would rather let the lead company to take the initiative. I'm more than happy as a CMO partner backing them up. Got it. Got it. 55:28 55 minutes, 28 seconds Thank you sir for the detail answers. Wish you all the best. Thank you. 55:34 55 minutes, 34 seconds Thank you ladies and gentlemen. As there are no further questions from the participants, I would now like to hand the conference 55:42 55 minutes, 42 seconds over to Miss Shwetta Shetty for closing comments. 55:47 55 minutes, 47 seconds Thank you very much for joining us today. If you have any further questions, please feel free to reach out to our investor relations team and we 55:55 55 minutes, 55 seconds will be happy to address them separately. With that, we conclude today's call. Thank you. Take care.