Hester Biosciences Limited — Q3 FY26

Hester Biosciences Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=KX0E9KRq0Uk Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Hester Biosciences Q3 and 9 months FY26 earnings conference call 0:08 8 seconds hosted by ICICI Securities Limited. As a reminder, all participants line will be in listenonly mode and there will be an 0:16 16 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:24 24 seconds operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now 0:32 32 seconds hand the conference over to Miss Nisha Shetty from ICICI Securities Limited. Thank you and over to you. 0:40 40 seconds Thank you. Good afternoon everyone. On behalf of ICICI Securities, I welcome 0:46 46 seconds you all on Q3 and 9 month FI26 earnings conference call of Hester Biosciences Limited. and I thank the Hector 0:55 55 seconds Biosenses management team for giving us this opportunity to host this call. Today on this call we have with us Mr. 1:02 1 minute, 2 seconds Rajiv Gandhi CEO and managing director, Miss Priya Gandhi, exe executive director and Mr. Ashish Desai, Chief 1:12 1 minute, 12 seconds Financial Officer. I will now hand over the call to the Hester management team for their opening remarks. Thank you. 1:19 1 minute, 19 seconds Over to you. 1:21 1 minute, 21 seconds Uh good afternoon everybody. This is Rajiv Gandhi and we myself and our team we are as 1:29 1 minute, 29 seconds happy to interact with you on this quarterly call which we do it on a quartertoquarter basis. I now hand over 1:39 1 minute, 39 seconds uh the talk to Priya Gandhi executive director to take it further. Over to you Priya. 1:47 1 minute, 47 seconds Hi good afternoon everyone. This is Priya Gandhi executive director. Thank you for joining us to discuss our Q3 and 1:53 1 minute, 53 seconds 9 month FY26 results. As always, we appreciate your continued engagement and long-term support as we build Hester 2:00 2 minutes with clear focus on science, operational discipline, and sustained value creation. Speaking to you all each quarter gives us the opportunity to 2:08 2 minutes, 8 seconds reflect objectively on our progress and the learnings from the period gone by. 2:13 2 minutes, 13 seconds Q3 FI26 marked a phase of improved execution and capacity strengthening for HA particularly in our poultry 2:20 2 minutes, 20 seconds healthcare business even as parts of the animal healthcare portfolio continued to be impacted by timing related institutional delays about which I will 2:28 2 minutes, 28 seconds talk on a standalone basis the revenue grew by 12% in Q3 and the profitability 2:35 2 minutes, 35 seconds improved sharply with PAT up 140% yearonear driven by a favorable product mix operating and sustained cost 2:43 2 minutes, 43 seconds discipline. For the period of 9 months, revenue was down by 5% while profits increased 16%. Reflecting the operating 2:51 2 minutes, 51 seconds discipline and business resilience we've been building across the organization. 2:56 2 minutes, 56 seconds Coming on to the poultry healthcare division. The poultry healthcare division delivered a strong performance growing 32% in Q3 and 17% over 9 months 3:05 3 minutes, 5 seconds in this financial year. growth was supported by deeper market penetration, improved placement, stronger distribution coverage and sustained demand for our core vaccine portfolio. 3:17 3 minutes, 17 seconds Post the quarter end, uh we achieved an important regulatory milestone upon receiving both the marketing and manufacturing licenses of our H9N2 avian 3:26 3 minutes, 26 seconds influenza vaccine, a low patch AI vaccine. This further strengthens our poultry vaccine portfolio and positions us well for both domestic and export opportunities. 3:37 3 minutes, 37 seconds In India, the H9 into opportunity is largely driven by the private commercial poultry market where disease preparedness, productivity and biocurity 3:45 3 minutes, 45 seconds are key priorities. Export markets will see a mix of institutional and private demand depending on how each country 3:52 3 minutes, 52 seconds manages disease control. Manufacturing of H92 will be undertaken at our India plant only for now. With the anticipated 4:00 4 minutes launch of the H9N2 vaccine, uh we also introduced an integrated AV and influenza management approach and launched some health products in the 4:09 4 minutes, 9 seconds previous quarter conceptualized via technical teams. Rather than viewing AI AI purely through a vaccination lens, 4:16 4 minutes, 16 seconds this approach addresses the broad the broader onfarmm challenge uh addressing biocurity, bird immunity and 4:24 4 minutes, 24 seconds environmental management. This includes a range of solutions covering vaccination, probiotics, and farm hygiene. I won't get into the technical 4:31 4 minutes, 31 seconds specifics here, but the objective is straightforward to deliver more consistent outcomes for farmers and create a more holistic solution-led engagement model. 4:41 4 minutes, 41 seconds Beyond H9N2, we continue to um evaluate additional poultry pathogens and combinations across Newcastle disease, 4:49 4 minutes, 49 seconds burst disease, marri disease, a recombinant aven influenza platforms. 4:53 4 minutes, 53 seconds Our approach here remain disciplined. We prioritize only those opportunities where regulatory clarity, manufacturing 5:00 5 minutes scalability and commercial commercial viability align. I would like to clarify that this is not intended to highlight 5:07 5 minutes, 7 seconds any specific new R&D project but rather reflects on our ongoing focus on strengthening our biological portfolio 5:15 5 minutes, 15 seconds which remains Hester's core area of expertise and long-term competitive ad advantage. 5:20 5 minutes, 20 seconds Speaking of the animal healthcare division which includes the ruminant and pet health segment, the animal health division recorded a 38% decline in Q3 5:29 5 minutes, 29 seconds and 40% over 9 months in the financial year primarily due to delays in government in uh immunization programs 5:37 5 minutes, 37 seconds um in the ruminance segment particularly PPR and Goldpox vaccine. Um uh it is important for me to reiterate that this 5:44 5 minutes, 44 seconds is a timing delay again not a demand issue as we had also mentioned in the last quarter. Execution under the national PPR immunization program and 5:53 5 minutes, 53 seconds goatpox program to immunize against LSD is expected to commence from February 2026 and we anticipate improved momentum 6:02 6 minutes, 2 seconds in the latter part of the financial year which is Q4. 6:06 6 minutes, 6 seconds In addition to institutional delays, the ruminant business was also impacted by some seasonal factors including lower incidence of clinical cases in farm 6:15 6 minutes, 15 seconds animals. Feed supplement performance was also affected by higher feed costs and reduced cooperative milk prices which influenced purchasing behavior. 6:24 6 minutes, 24 seconds Coming to the pet care segment, it continues to scale gradually and organically with steady traction across selected therapeutic and supplement 6:31 6 minutes, 31 seconds products. uh while still it is an early stage pet care remains a strategic focus area for us. We are exploring pet vaccine opportunities for India as well 6:40 6 minutes, 40 seconds as Africa using our existing facilities without any incremental capeex uh also evaluating potential licensing 6:48 6 minutes, 48 seconds opportunities as a part of a phased long-term approach in petare. 6:53 6 minutes, 53 seconds Um a few uh development on the other operating income that you might have seen in the results. I would like to 7:01 7 minutes, 1 second briefly clarify that a part of our other operating income during the period includes grant income linked to the development milestones under the Galmmit 7:09 7 minutes, 9 seconds supported vital program where we are working on a combined PPR vote vaccine. 7:15 7 minutes, 15 seconds This is a development focused collaboration where funding is released against clearly defined technical milestones. At this stage the objective is to advance science and enable access 7:23 7 minutes, 23 seconds rather than any near-term commercialization. any potential commercial path pathway if at all will be evaluated at a much later stage in 7:31 7 minutes, 31 seconds alignment with the uh program objectives. 7:34 7 minutes, 34 seconds an update on the capeex and the capacity. Um uh as discussed earlier some of you have asked about the status on our 182 cr capital work in progress. 7:45 7 minutes, 45 seconds Um during the quarter I'm happy to share that we capitalized our fill finish facility effectively doubling our drug 7:51 7 minutes, 51 seconds product capacity. The remain CWIP will is expected to be capitalized over the coming months. Our capeex has been 7:58 7 minutes, 58 seconds structured in phases to support scale up across products and markets with returns expected uh to acrew progressively as 8:05 8 minutes, 5 seconds the utilization increases. 8:10 8 minutes, 10 seconds Coming on to our internal operations on a consolidated basis the revenue grew by 22% in Q3 while 9 months sales remained 8:18 8 minutes, 18 seconds broadly stable. uh profitability for 9-month period improved uh substantially supported by operational discipline and 8:25 8 minutes, 25 seconds better execution across subsidiaries in Africa. While Q3 was impacted by timing delay in institutional order 8:33 8 minutes, 33 seconds execution and higher operating costs, performance over 9 months has remained positive. Uh the PPR reducation program 8:41 8 minutes, 41 seconds in Africa are long-term initiatives supported by multilateral funding. 8:45 8 minutes, 45 seconds Hester continues to be prepared for as a global supplier and while demand visibility remains strong, execution is dependent on funding releases and 8:53 8 minutes, 53 seconds country level uh country level rollout timeline. 8:57 8 minutes, 57 seconds Um overall our um Africa strategy has evolved um from opportunity-led participation more to structured 9:04 9 minutes, 4 seconds execution with sharper focus on working capital discipline and selective uh geographic exposure. I would like to add some context on our position in Africa. 9:14 9 minutes, 14 seconds Hester today is one of the very few animal health companies in Africa with capabilities across multiple vaccine technologies. Uh this technological 9:22 9 minutes, 22 seconds depth allows us to respond to diverse disease profiles and regulatory expectations across the countries in the continent. Our ongoing engagement with 9:31 9 minutes, 31 seconds government and institutional stakeholders there uh indicates that animal healthcare remains a high priority area given its importance to food food security and livelihoods. 9:42 9 minutes, 42 seconds While the past couple of months uh saw elections and temporary disturbances in parts of the region in Tanzania, our engagement with authorities has remained active. 9:53 9 minutes, 53 seconds In parallel, we have also registered products in the neighboring countries to widen our addressable markets. Speaking of Nepal operations, we are operating 10:01 10 minutes, 1 second through challenging phase and are carefully evaluating operational and strategic measures to ensure stability and long-term sustainability. 10:09 10 minutes, 9 seconds As we look ahead, uh the current year and particularly the last few quarters has been a period of consolidation, execution, improvement, and capacity 10:16 10 minutes, 16 seconds strengthening for us. Our strategic priorities remain clear to reduce dependence on tender-driven revenues and deepening our presence across commercial 10:25 10 minutes, 25 seconds and export markets. to leverage our expanded manufacturing capacity to support future growth to strengthen our poultry vaccine portfolio including 10:33 10 minutes, 33 seconds avian influenza preparedness to continue investing in innovation with a long-term disciplined approach. Many of the questions we've received quarter after 10:42 10 minutes, 42 seconds quarter relate to long cycle uh initiatives on capeex recominant vaccines government immunization programs. While quarteronquarter updates 10:50 10 minutes, 50 seconds may appear less visible or measured, the underlying progress remains steady and aligned with long-term road map and uh 10:57 10 minutes, 57 seconds we remain confident that uh with the groundwork laid over the past few quarters, it will translate into stronger and more balanced performance 11:05 11 minutes, 5 seconds going forward. Uh thank you once again uh for continued trust. I did receive a few questions and I've tried answering them uh through my talk, but uh I'm now 11:14 11 minutes, 14 seconds looking forward to taking any more questions. Thank you. 11:18 11 minutes, 18 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 11:27 11 minutes, 27 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 11:36 11 minutes, 36 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 11:50 11 minutes, 50 seconds The first question is from the line of Madur Rati from counter cyclical investments. Please go ahead. Please go ahead. 11:58 11 minutes, 58 seconds Uh thank you for the opportunity. I wanted to understand this 20 k quarterly aeta that we are doing currently. Is this sustainable or we heard that there 12:07 12 minutes, 7 seconds was a board few uh in Kerala during the month of November and December. Uh was this the re poultry segment revenue jump 12:15 12 minutes, 15 seconds because of that or can we expect these aata numbers to be sustainable going forward? 12:21 12 minutes, 21 seconds Uh yeah [clears throat] Rajiv Gandhi here the bird flu attack in Kerala has nothing to do with these numbers. 12:29 12 minutes, 29 seconds Neither does it show a spurt in sales which has caused this uh profitability. 12:35 12 minutes, 35 seconds As Priya mentioned in her talk that uh we are here at the moment trying to 12:42 12 minutes, 42 seconds streamline rationalize many activities in the plant and take a long-term view 12:49 12 minutes, 49 seconds and the profitability forecasted is even higher than this and we are determined to at the least keep this profitability. 13:03 13 minutes, 3 seconds Got it. So going forward we can expect this uh 20 G up a quarterly a beta number of upwards of 20 G. 13:12 13 minutes, 12 seconds Uh being so specific is very no not specific but we can uh we can expect to be on a higher trajectory that 13:21 13 minutes, 21 seconds would be a fair understanding. uh I think at the uh you can say that on a yearon-year basis we will be doing 13:30 13 minutes, 30 seconds better on a quartertoquarter basis such trajectory should not be measured I think uh it's the yearon-year definitely 13:38 13 minutes, 38 seconds we will be on a higher trajectory got it and so now we have mentioned uh capitalized our c the fill finish 13:47 13 minutes, 47 seconds facility so there has been no jump in our depreciation or so why is And have we commercial commercialized it in Q4 or Q3? 13:58 13 minutes, 58 seconds Uh see the depreciation will come into effect because it was just capitalized at the end of the Q3. You know the 14:04 14 minutes, 4 seconds impact will come in this Q4 now. So you might not see the impact because it is just capitalizing uh the last quarter uh you know Q3 the last uh days of the Q3. 14:18 14 minutes, 18 seconds Got it. And uh sir have we planned on how do we plan to scale up this new facility that has doubled our capacity? 14:25 14 minutes, 25 seconds So what kind of products do we plan to launch or or do we just plan to scale our existing product base and maybe 14:32 14 minutes, 32 seconds launch a few? So if you could just help us understand uh the scale up of this uh incremental volumes between our existing product and the new products. 14:44 14 minutes, 44 seconds No. Hi. Uh so I did mention in my talk about the existing products product mix as well as some products that we are 14:51 14 minutes, 51 seconds trying to work uh you know which are a part of our developmental program. Um the the the additional capeex was 14:58 14 minutes, 58 seconds obviously planned given the fact that how the growth numbers would be and how the revenue and the you know the budgets will increase and keeping that factor in 15:07 15 minutes, 7 seconds mind is how the calculation and had done which is why we had to invest in a cape. 15:11 15 minutes, 11 seconds That is all in line with that. Uh to answer your question uh simply it will be uh right now to cater to the existing 15:19 15 minutes, 19 seconds product. Maybe we will look at more export markets that we will be able to fulfill through this increased capacity. 15:26 15 minutes, 26 seconds Uh so are we in discussion to uh supply to the some export market either via contract manufacturing route or maybe 15:36 15 minutes, 36 seconds innovator manufacturing some something on that front? 15:40 15 minutes, 40 seconds No, none of that at the moment. We want to retain our brand and we will be uh you know Hester will only be exporting these. Yes, the way it is going on right now. 15:51 15 minutes, 51 seconds Got it. Uh that was from my end. Thank you so much and all the best. Thank you. 15:56 15 minutes, 56 seconds Thank you. Uh participants you are requested to limit your question to two per participant. The next question is 16:04 16 minutes, 4 seconds from the line of Hershel Mata from Zen Nish. Please go ahead. Hello. Am I audible? 16:12 16 minutes, 12 seconds Yes. 16:15 16 minutes, 15 seconds Yeah. So, uh thank you for the opportunity. Uh I just wanted to ask that uh recently that uh the result notification that we have released now 16:23 16 minutes, 23 seconds in that voice. 16:34 16 minutes, 34 seconds Yeah, he got disconnected. So we'll move to the next participant. The next question is from the line of Ravi Ma from OneUp. Please go ahead. 16:46 16 minutes, 46 seconds Yeah. Hi. Uh thanks for this opportunity. Uh just a couple of questions. Uh on the poultry side, uh 16:53 16 minutes, 53 seconds what have you done structurally that I'm seeing margins upwards of 20% consistently for last four quarters. uh you mentioned product mix in the opening 17:02 17 minutes, 2 seconds remark but uh what is structurally changing and uh how we should see these 17:09 17 minutes, 9 seconds margins uh yeah [clears throat] Rajiv we are uh 17:16 17 minutes, 16 seconds it's this is all driven by the product mix that we choose and uh the the 17:25 17 minutes, 25 seconds profitability of the product. So it's basically a mixh of these two things and 17:32 17 minutes, 32 seconds uh that is what it is. We are conscious to improve the bottom line and therefore on a quartertoquarter basis we try to 17:40 17 minutes, 40 seconds budget and try to push products wherein it impacts our profitability positively. 17:47 17 minutes, 47 seconds Um it's just yeah I mean that's the uh this is an reaction of that action. 17:55 17 minutes, 55 seconds Okay. Because when we hear about product mix in many companies, it's it's a you know phenomena of a quarter or two because ultimately baskets of product 18:04 18 minutes, 4 seconds has to be sold to the markets and then the margin reverts. That's why this question that you know when you are pivoting to a better product makes is 18:11 18 minutes, 11 seconds this mix sustainable or there are low margin products which the market will require and you will have to you know supply at some point. So just wanted to 18:19 18 minutes, 19 seconds get that clarity of how are you moving towards this mix. 18:23 18 minutes, 23 seconds uh as I mentioned it's on a quartertoquarter basis there are seasonal changes uh everything that go 18:31 18 minutes, 31 seconds into it while our endeavor is to improve the margins it cannot be guaranteed and assured that the every product mix will 18:40 18 minutes, 40 seconds yield an x margin as I mentioned in the earlier to the earlier question also 18:49 18 minutes, 49 seconds look at it on a yearon-year basis rather than a quarter quarter onquarter basis on a yearon-year basis we assure improvement of margins. 18:58 18 minutes, 58 seconds Sure. Sure. Sure. No, that's why I uh refer to last four quarters together. It's been uh a good journey. That's why. Yeah. 19:07 19 minutes, 7 seconds We've been working hard. 19:08 19 minutes, 8 seconds Yeah. Thank uh thanks. And and we received this license of HN2 uh recently. Uh so how big this 19:17 19 minutes, 17 seconds opportunity can be and how are you planning about uh you know uh scaling up this product in terms of any aspiration 19:25 19 minutes, 25 seconds numbers whatever you can talk uh see we we get this question very often on the H9N2 opportunity in India 19:32 19 minutes, 32 seconds and export very honestly speaking it is very very difficult to get one number and give it to you right now that this is the market size it's not as organized 19:42 19 minutes, 42 seconds data is not as organized all we can tell is it's a very very important disease and it is a cause of a lot of challenges 19:49 19 minutes, 49 seconds in poultry and uh you know it is an upcoming market it's just recently got licensed here in India so we have been getting these questions to give a number 19:58 19 minutes, 58 seconds but uh to be honest uh unfortunately it's very difficult to give any market size number at this point 20:04 20 minutes, 4 seconds okay and in your animal health segment uh what I see is uh you alluded to the fact that this immunization drives are 20:12 20 minutes, 12 seconds getting delayed uh I just wanted some sense sense of how big is the uh pet care business within this segment if you 20:20 20 minutes, 20 seconds can give us some ballpark uh number on mix of the pet care segment is not participating in any immunization the 20:28 20 minutes, 28 seconds immunization I have mentioned is only on the large animal the ruminants the dairy animal that's you know PPR goat pox 20:36 20 minutes, 36 seconds vaccine is all in the ruminant section so pet care is nothing to do with uh the national immunization and uh the petare market Again, you know, it it varies. 20:46 20 minutes, 46 seconds There is um you know, therapeutics, supplements, grooming, accessory. It is it is a pet food. It's a very very big 20:53 20 minutes, 53 seconds market. But our focus right now continues to be rather the you know, the objective with which we started was more on the the technical and the therapeutic 21:02 21 minutes, 2 seconds and the prescription based market right now. Now my question was that if out of 91 crores of animal health revenue you 21:09 21 minutes, 9 seconds did in 9 months what would be pet care because it gets clubbed into the segment or uh so how should we look at that uh segment? 21:20 21 minutes, 20 seconds It's it's uh under 5% of the animal healthcare number and that's been steady like it's been 21:28 21 minutes, 28 seconds under five uh for last year or 24. It's been that strange or yes we started we've only started this 21:35 21 minutes, 35 seconds uh two financial years ago. So it it's been two years and yes it's it's right now it's been steady we are uh in a very 21:43 21 minutes, 43 seconds nent stage as mentioned and uh we want to increase the share substantially. 21:48 21 minutes, 48 seconds Sure. And just one bookkeeping question was that Africa revenue is not mentioned in the press release. So if you can just help us with that number. 21:58 21 minutes, 58 seconds The Africa number is mentioned in the press note. It is mentioned in the subjective part if queried under the consolidated numbers. Um 22:08 22 minutes, 8 seconds minute uh so on page two it is mentioned consolidated financial highlights and then in that there is Hester Africa and 22:16 22 minutes, 16 seconds Hester Nepal. So um if you see our revenue is you can just give me a minute. 22:26 22 minutes, 26 seconds Africa. Okay. You know I uh it is yeah it is uh 27.5 crores of revenue for 22:34 22 minutes, 34 seconds for the 9 for 9 months for 9 months. Okay 27 crores for 9 months. 22:39 22 minutes, 39 seconds Uh yes uh sorry I uh just beg your pardon. I think in the consolidated result we've given a full number and in 22:46 22 minutes, 46 seconds Nepal and Africa I've mentioned on the profit and loss numbers. Uh yes that's what I have mentioned but in the results that we have given that has the breakup 22:55 22 minutes, 55 seconds of the numbers okay I'll check I'll come back thank you so much yeah thank you thank you the next question is from the 23:04 23 minutes, 4 seconds line of hersel ma from zen nish please go ahead hello am I audible 23:11 23 minutes, 11 seconds yes yeah uh sorry uh got disconnected last time uh so I just wanted to understand that uh in our notification we have 23:19 23 minutes, 19 seconds mentioned that company remains focused on building more uh balanced and resilience business by reducing the dependence on tender based revenues. So 23:28 23 minutes, 28 seconds maybe if you can you know uh just uh uh uh brief us about as in at what stage we are in this transformation and 23:36 23 minutes, 36 seconds tentatively if you can break it down into phases uh you know that will help us understand this whole process better. 23:47 23 minutes, 47 seconds Uh yes uh Rajiv here this is an ongoing process. It is our endeavor. Now 23:54 23 minutes, 54 seconds sometimes it may happen that we get very good tender business s and that that tender business may again seem to be 24:01 24 minutes, 1 second higher but yes over a long period of time we definitely would want to reduce 24:08 24 minutes, 8 seconds the stress on the tender business and that uh uh uh that is going to happen 24:16 24 minutes, 16 seconds over a period of time and we are very conscious of that. So at the moment we are doing good in tenders and even 24:24 24 minutes, 24 seconds overall the market even is showing a little bit of a shift. Everybody in India does not necessarily wait for the 24:33 24 minutes, 33 seconds tender market. Now people private enterprises private dairy farms of course in poultry everybody uses 24:41 24 minutes, 41 seconds independent of any tenders. It is shifting. So one is that the market is very slowly shifting and two we are 24:49 24 minutes, 49 seconds increasing the market increasing our reach directly to the dairy farms in India as well as in exports we are 24:59 24 minutes, 59 seconds aiming at supplying directly without the tender business. So this is our approach. 25:06 25 minutes, 6 seconds Uh thank you so much sir. So uh one more question uh on our portry business only. 25:12 25 minutes, 12 seconds So uh uh we understand that poetry business is mainly uh uh in uh in a cyclical nature. So 25:21 25 minutes, 21 seconds how how long do you feel that uh this cycle uh this time it can last? It would be somewhere in the range of last time 25:28 25 minutes, 28 seconds that we saw or uh you think uh this time it is something uh different uh in that manner. 25:36 25 minutes, 36 seconds Uh uh uh sorry are you referring to our performance sir or what exactly are you referring to? 25:44 25 minutes, 44 seconds So we are seeing growth in uh on our uh portry business side. Right. Right. 25:51 25 minutes, 51 seconds So I just wanted to understand that uh it it is a this particular business is cyclical in nature if I'm not wrong. 25:59 25 minutes, 59 seconds See animal health, poultry, even human health is all cyclic right? It is seasonal. There are particular seasons in which human health will also require 26:07 26 minutes, 7 seconds probably more there will be more illnesses etc. So yes likewise like that in animal health also in ruminance 26:14 26 minutes, 14 seconds typically monsoon quarter 2 quarter 1 is when the season is and poultry is the other way around it is Q3 Q4. So yes, 26:21 26 minutes, 21 seconds these are very natural cycles and that's also probably what a part of it reflects in our performance but apart from that 26:29 26 minutes, 29 seconds it is it is it is going to be a constant factor. 26:33 26 minutes, 33 seconds Got it. So uh I just wanted to understand that just bas on basis of your uh uh wide experience in this 26:40 26 minutes, 40 seconds particular segment as in uh you feel that uh this cycle is going to last for you know uh uh longer duration from here also. 26:51 26 minutes, 51 seconds There is nothing uh I'm not understanding what cycle are you referring to. 26:57 26 minutes, 57 seconds One is that our business is not just it is dependent on cycles but it is not 27:04 27 minutes, 4 seconds only dependent on cycles and if you look at it we have grown poultry business on a quartertoarter basis ducking all the cyclical issues. 27:16 27 minutes, 16 seconds So it is which cycle you are referring to is not clear. We are here to grow our poultry business as well as the age business. 27:26 27 minutes, 26 seconds That's all that we can say. 27:29 27 minutes, 29 seconds Thanks a lot sir. It answers uh pretty well. Thank you sir. 27:35 27 minutes, 35 seconds Thank you. The next question is from the line of Arya Sha from Whit Stone PMS. Please go ahead. 27:42 27 minutes, 42 seconds Yes. Hi. Thanks for the opportunity. So I just have one question. The BSL3 we were going to repurpose it. So what will 27:50 27 minutes, 50 seconds be the capacity addition to the new facility? 27:57 27 minutes, 57 seconds uh the BSL3 facility which was originally created to manufacture the uh the drug 28:05 28 minutes, 5 seconds substance for the COVID vaccine has now we have got the repurpose uh thing uh 28:13 28 minutes, 13 seconds the ability to repurpose for veterary vaccines. We are evaluating this uh situation and we will convert it 28:22 28 minutes, 22 seconds into an animal vaccine facility. We have yet to pin down on what exactly we would be doing over there. 28:33 28 minutes, 33 seconds Okay. Thank you. 28:37 28 minutes, 37 seconds Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. 28:47 28 minutes, 47 seconds Thank you all for joining us and hearing us out. Uh we do try our best to answer as many questions. A lot of the questions today were on whether we will 28:55 28 minutes, 55 seconds be able to sustain the growth that we've started showing specifically in poultry healthcare and of course um as management that will anyway be our 29:03 29 minutes, 3 seconds endeavor. So whether it is our IITa which is the trend which is showing or a growing poultry division um you know of 29:10 29 minutes, 10 seconds course the straight answer uh and the ceiling is that yes this is the base and we want to continue with our efforts to grow this substantially 29:19 29 minutes, 19 seconds um and and yes take things forward and uh you know meet everyone's expectations and thank you all for your continued 29:26 29 minutes, 26 seconds support on behalf of ICICI securities limited that concludes this conference Thank you for joining us.