Indoco Remedies Limited — Q4 FY26

Indoco Remedies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=z2CQYDD7ZP4 Published: 6 days ago

0:00 [music] 0:03 3 seconds Ladies and gentlemen, good day and welcome to the Indico Remedies Q4 FI26 earnings call hosted by Dollar Capital. 0:12 12 seconds As a reminder, all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds Should you need assistance during the conference call, please signal an operator by pressing start and zero on your touchstone phone. Please note that 0:29 29 seconds this conference is being recorded. I now hand the conference over to Miss Candace Pereira from DollarP. Thank you and over to you ma'am. 0:39 39 seconds Thank you Roja. Good evening everyone. I Candace Pereira on behalf of Dollar Capital. Welcome you all to the F FY26 0:47 47 seconds earnings conference call of Indoko Remedies Limited. I would like to thank the management for giving us this opportunity to host the call. Today from 0:56 56 seconds the management team we have with us Miss Arji Panandikar managing director, Mr. 1:01 1 minute, 1 second Sandep Bambulkar man joint managing director and Mr. Pramm Gorpare CFO. I'll now hand over the call to the management 1:10 1 minute, 10 seconds for their opening remarks. Over to you sir. 1:14 1 minute, 14 seconds Thank you Candace. Uh good afternoon everyone. Thank you for thank you all for joining this call. Let me draw your attention to the fact that on this call 1:23 1 minute, 23 seconds our discussion will include certain forward-looking statements which are projections or estimates about our future events. These estimates reflect 1:31 1 minute, 31 seconds the management's current expectation of the future performance of the company. 1:35 1 minute, 35 seconds Please note that these estimates involve se several risk and uncertainties that could cause our actual results to defer materially from what is expressed or 1:44 1 minute, 44 seconds implied. Indoor does not undertake any obligation to publicly update any forward-looking statement whether as a 1:51 1 minute, 51 seconds result of the new confirmation future events or otherwise. Thank you so much. 1:56 1 minute, 56 seconds Now let us request our managing director Miss Aditi Panandikar for her opening comments. 2:01 2 minutes, 1 second Yeah, thank you pra. Uh good afternoon everybody and thank you for joining us on a few FY26 call this afternoon. It 2:09 2 minutes, 9 seconds gives me great joy to announce that after almost six quarters we are in positive in the in this quarter uh for 2:17 2 minutes, 17 seconds performance. This performance has been possible due to a great acceleration shown by international formulations 2:24 2 minutes, 24 seconds business both in the regulated markets as well as emerging markets. 2:29 2 minutes, 29 seconds While in India as the season did not support performance quarter four numbers were muted. anti-infective and 2:36 2 minutes, 36 seconds respiratory in particular gave a significant hit. However, at the level of productwise prescriptions generated 2:45 2 minutes, 45 seconds almost all our main and important products are showing good growth in prescriptions emphasizing the 2:52 2 minutes, 52 seconds fundamental strength of the brands and ensuring that there is great demand for those products in the market. In US we 3:00 3 minutes received approval for uh the ANDDAS of liquid orals for privileg and 3:08 3 minutes, 8 seconds in India we launched a new brand extension of cycloparmal our number one brand our manufacturing plant at 3:16 3 minutes, 16 seconds Pataganda made us proud with their ecoid score we were also recognized for our CR 3:22 3 minutes, 22 seconds work at IDMA's annual day I'm also happy to announce that u as of 3:31 3 minutes, 31 seconds January this year and even for the month of uh uh on max basis for the month of March Rexidian M4 sport gel has become 3:40 3 minutes, 40 seconds the most prescribed stomatological brand in the market. Um we also overtook as a 3:47 3 minutes, 47 seconds company in prescription audit we have overtaken Fizer to become the 20th most prescribed uh company for for the number 3:55 3 minutes, 55 seconds of prescriptions we generate. Last week, Indoko entered into an agreement to hive off a soft business in India and Africa 4:04 4 minutes, 4 seconds to Sunway. This move was made in the interest of our wonderful brands and portfolios which should now get the 4:12 4 minutes, 12 seconds requisite attention they deserve and therefore grow. 4:16 4 minutes, 16 seconds This highwalk could also help us at Indoco focus on areas of strength in uh 4:23 4 minutes, 23 seconds and those which are our core areas uh for uh growing the ethical business. The 4:30 4 minutes, 30 seconds OTC business has also done well and our efforts to add presence of our products with the grocerers, the modern trade and 4:38 4 minutes, 38 seconds quick commerce are underway and should soon give promising results as well. The macroeconomic factors at this time are 4:46 4 minutes, 46 seconds certainly not at all conducive for doing business especially as regards the cost of goods and the likely disruption in 4:55 4 minutes, 55 seconds exports. We hope as a management to steer our business with responsibility during these tumitive times. Thanking you once again and I hand over to Mr. 5:05 5 minutes, 5 seconds Sep now to take you through the quarter nor. 5:09 5 minutes, 9 seconds Thank you Aditi. Good afternoon everyone. Let me first begin with the business highlights. 5:16 5 minutes, 16 seconds Standalone net revenues of the company for the fourth quarter FY 2526 are at rupees 4,291 5:24 5 minutes, 24 seconds million compared to rups 3,411 million for the same quarter last year 5:31 5 minutes, 31 seconds and rups 3,896 million for the immediately preceding quarter that is Q3 of FY26 5:40 5 minutes, 40 seconds growing at 25.8 8% and 10.1% growth respectively. 5:46 5 minutes, 46 seconds Consolidated net revenues of the company for the fourth quarter are at rupees 4,559 5:54 5 minutes, 54 seconds million compared to rups 3,839 million for the same quarter last year and rups 4343 6:03 6 minutes, 3 seconds million for the immediately preceding quarter with 18.8% 8% and 5% growth respectively. 6:12 6 minutes, 12 seconds Standalone AITA to net sales for the quarter is 14.7% 6:18 6 minutes, 18 seconds at rupees 630 million compared to 1% at rupees 35 million and for immediately 6:26 6 minutes, 26 seconds preceding quarter EIA was 6.6% at rupees 259 million. Consolidated EITRA to net 6:35 6 minutes, 35 seconds sales for the quarter is 10.9% at rupees 497 million compared to 6:42 6 minutes, 42 seconds minus.2% at 8 million last year and for the immediately preceding quarter 7.3% at 315 million. 6:55 6 minutes, 55 seconds Revenues from domestic formulation business for the quarter are at rupees 1,739 million as compared to rups 1,851 7:05 7 minutes, 5 seconds million. Major therapeutic segments like vitamins, anti-diabetics, tomatology, gastrointestinal and cardiac performed 7:14 7 minutes, 14 seconds well during the quarter as compared to the same quarter last year. Revenues from international formulation business 7:22 7 minutes, 22 seconds grew by 94.6% 6% at rupes 2,147 million compared to rups 1,14 7:30 7 minutes, 30 seconds million. Revenues from rag markets for the quarter grew by 78.3% 7:37 7 minutes, 37 seconds at rupees 1,41 million against rupees 785 million. 7:45 7 minutes, 45 seconds Revenues from US business for the quarter grew by 77.5% at rupes 546 million as against rupees 308 million. 7:56 7 minutes, 56 seconds Revenues from Europe for the quarter grew by 68.7% at 786 million as against rupees 466 million. 8:07 8 minutes, 7 seconds And for South Africa, Australia and New Zealand the quarter grew by uh the base being small uh the revenues 8:16 8 minutes, 16 seconds were at 692 million as against 122 million. Revenues from emerging markets 8:23 8 minutes, 23 seconds for the for the quarter grew by 134% at rupees 746 million as against rupees 318 million. 8:33 8 minutes, 33 seconds Revenues from API business for the quarter degrrew by 23% at rupees 315 8:39 8 minutes, 39 seconds million as against rupees 409 million and the services part MSF CRO and 8:47 8 minutes, 47 seconds Indokco analytical solutions for the quarter grew by 65.3% at rupees 895 million as against rupees 8:57 8 minutes, 57 seconds 467 million. That is all about the business highlights for the fourth quarter and I now request all the 9:05 9 minutes, 5 seconds participants to put forth their questions. Thank you very much for your patient listening. 9:12 9 minutes, 12 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 9:20 9 minutes, 20 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 9:29 9 minutes, 29 seconds question. Ladies Hansen, wait for a moment while the question cembles. 9:48 9 minutes, 48 seconds The first question is from the line of Sajil Kapoor from Antifragile Thinking. Please go ahead. 9:54 9 minutes, 54 seconds Yeah. Hi, thanks for the opportunity. Um uh Azil um the performance is definitely a recovery uh sequentially uh for sure. 10:04 10 minutes, 4 seconds Um and that's heartening to note. I have a couple of questions around the receivables and the debt if I may. So 10:11 10 minutes, 11 seconds the standalone trade receivables grew 45% while revenues grew only about 9% 10:17 10 minutes, 17 seconds and Q4 alone saw a disproportionate um spike. So can you break down the 10:24 10 minutes, 24 seconds receivables aging? Um identify which geographies or channels are driving the elongation of collection uh concerns and 10:33 10 minutes, 33 seconds confirm what percentage of Q4 revenue was kind of recognized on shipment versus actual uh receipt um because it's 10:42 10 minutes, 42 seconds kind of looking slightly disturbing uh and the interest payments and the debt. 10:47 10 minutes, 47 seconds Um so both the working capital receivables and the MSN uh payables are getting stretched that's one concern and 10:56 10 minutes, 56 seconds the other one is the overall debt levels um it has been alarming for a while now it's it's probably getting worse now 11:04 11 minutes, 4 seconds so um I will quickly answer your questions can you hear me yes I can thank you and then promote will probably give you 11:12 11 minutes, 12 seconds more details for this quarter in particular what you have seen is that the international business has done so well and typically our 11:21 11 minutes, 21 seconds collections for international business especially collections for the emerging market international business are uh have a long credit period so that has 11:30 11 minutes, 30 seconds probably impacted uh coming back to the borrowings and um uh happy to share that efforts are underway to ensure that the 11:38 11 minutes, 38 seconds borrowings get reduced at the earliest and uh with performance improving uh I'm sure we will be able to do that But I 11:46 11 minutes, 46 seconds will allow promote give you answers on some of your concerns. Yeah. Thank you. 11:52 11 minutes, 52 seconds So Mr. Sjan as madam mentioned uh specifically about the receivables uh you're right uh our fourth quarter performance if you see uh the in terms 12:01 12 minutes, 1 second of our exports to egg market uh which is you know overall up by close to about 28 29%. out of that emerging market uh uh 12:10 12 minutes, 10 seconds you know growth is about significant growth I would say in a fourth quarter uh where you know we have 12:18 12 minutes, 18 seconds receivables uh uh you know longer receivable I would say as compared to uh domestic uh business and APA business so 12:25 12 minutes, 25 seconds that is the primary reason of uh you know uh receivables which are number of days of receivables which are going up your second question about uh the uh 12:34 12 minutes, 34 seconds overall uh loan position that remains more or less uh same uh you know as compared to last year March 25 12:44 12 minutes, 44 seconds we are at total consider consolidation level we are at 960 odd uh number 12:51 12 minutes, 51 seconds long-term 620 cr and short-term of 344 cr uh more or less you know that was the 12:58 12 minutes, 58 seconds same position during last year in between uh whatever you know repayment commitment uh were there uh with the you 13:05 13 minutes, 5 seconds know uh funders banks which we have uh repaid along with interest plus you know additional borrowing in some pockets 13:13 13 minutes, 13 seconds initially during 6 month for our uh you know capex but of course we are very sure in terms of you know uh servicing 13:22 13 minutes, 22 seconds the debt along with interest with you know a bit number which we would like to maintain during next four quarters. 13:30 13 minutes, 30 seconds Thank you. 13:31 13 minutes, 31 seconds Yeah. Additionally uh as we have uh disclosed earlier there is uh very tight 13:37 13 minutes, 37 seconds control on uh capex now and uh good effort is going on to bring down the operating expense also going forward. 13:45 13 minutes, 45 seconds This should all help. 13:48 13 minutes, 48 seconds Sure ma'am and just one followup can can you help me double click on supplier pay pay bills and the MSN dues because they have risen sharply. 14:00 14 minutes Yeah, there has been some uh um you know where we have uh not paid suppliers on time uh given some of the cash flow 14:09 14 minutes, 9 seconds situation we had. But I'm confident within a week we should be able to finish this. 14:16 14 minutes, 16 seconds All right. Okay. Thank you. Thank you so much. I'll rejoin the queue. 14:23 14 minutes, 23 seconds Thank you. Participants who wishes to ask a question may press star and one now. 14:30 14 minutes, 30 seconds The next question is from the line of Nirm from Uni PMS. Please go ahead. 14:36 14 minutes, 36 seconds Yes. Hi. Uh thank you for the opportunity. 14:39 14 minutes, 39 seconds So my first question is on the domestic business. Um now as you mentioned in the opening remarks also that the season was not good for us. Um 14:48 14 minutes, 48 seconds do you see this growth coming back in the next uh say year or two? And 14:54 14 minutes, 54 seconds secondly uh considering we have seen prescription growth. So uh is there some 15:02 15 minutes, 2 seconds way that we can I mean what is the challenge when we see prescription growth but then the medicines are not 15:10 15 minutes, 10 seconds sold. So one is that and secondly is there uh any more optimization on the portfolio front. So we I think we 15:17 15 minutes, 17 seconds discontinued some tail brands during this year also. further we've sold off some more optal 15:25 15 minutes, 25 seconds division also. So any more such reigs for the next year. 15:30 15 minutes, 30 seconds Okay. So I'll start with your first question on the what we call primary, secondary and tertiary which is the prescription group. So typically the 15:38 15 minutes, 38 seconds numbers you see in IQVR or any of the agencies like Karmarat on our products 15:45 15 minutes, 45 seconds is what we consider secondary that is what is sold from stockish to retailer and then uh the number of prescriptions 15:53 15 minutes, 53 seconds we generate we use it as a measure to understand demand for our products and therefore the absolute optic at the chemist counter which is tertiary. So if 16:02 16 minutes, 2 seconds you look at first of all what we call primary which is the booking of sales that for the the quarter ended March is 16:11 16 minutes, 11 seconds often dependent on the motivation morale and how many people in your field staff 16:18 16 minutes, 18 seconds are actually going to do their annual target and they start going a little low despite of all efforts from our side we always see this kind of a performance 16:27 16 minutes, 27 seconds I'll give you an example for let's take the category of Um I mean if we take tomatological itself then uh as per IBI 16:36 16 minutes, 36 seconds we are down only by 8% but my primaries are down 20%. And then if you look at the prescriptions on those products they are all in high growth. What it simply 16:45 16 minutes, 45 seconds means is that if you're seeing an RX performance now then your achieve should follow after that and unless there is 16:52 16 minutes, 52 seconds too much stock in the market your primary should automatically get corrected. However, you're concerned about if we are really generating 17:00 17 minutes demand. What if our products are getting either substituted or not available for that? This year in particular, we are um 17:08 17 minutes, 8 seconds undertaking a major exercise to reach out to the stockist who stock our products and the retailers. I can give 17:16 17 minutes, 16 seconds you some statistics directly and indirectly. um uh our organization reaches around 1 lakh 50,000 um chemists 17:26 17 minutes, 26 seconds that is both through volume remedies which is OTC arm and our own prescription business. However, if you look at availability of cyoparm it is 17:34 17 minutes, 34 seconds available at three and a half lakh chemists. So generally it is prescriptions and demand created which is expected to make your product 17:42 17 minutes, 42 seconds available. That is how we work. But uh typically because our products are seasonal, what always happens is when the season doesn't come in, you see the 17:51 17 minutes, 51 seconds stock is not very motivated to increase the inventory carries on certain products and therefore he goes muted. 17:59 17 minutes, 59 seconds Down the line there are very few shortages because there is there are stocks in market. Uh let's take our product fit for example. It is a utility 18:06 18 minutes, 6 seconds alkalizer and typically does very well in summers. But this year in the month of March uh I think there were few rains 18:14 18 minutes, 14 seconds also and summer did not kick in the way it it should have. So sitan if you look at internal performance it is down um you know for the quarter it is down 10%. 18:23 18 minutes, 23 seconds And it is down 1%. But in ITVI it is growing and so our prescription on it. And the 18:31 18 minutes, 31 seconds other day I had a pharma review where they disclosed that I in the market there is less than 30 days stock of this 18:38 18 minutes, 38 seconds product. So typically now sit should fire but these are not things we can always control because always motivating 18:46 18 minutes, 46 seconds the stockist to purchase from us uh pretty much depends a lot on many factors including the morale of the field staff who are going to do their 18:55 18 minutes, 55 seconds annual targeting. I hope that answers your question. Yes ma'am. 19:00 19 minutes And the second thing on the non-core uh ah okay so of pharmacology in particular 19:08 19 minutes, 8 seconds uh I wouldn't say it was non-core for us because we had a division we tried to create two divisions we were very bullish on it because as you know we we 19:16 19 minutes, 16 seconds have filed several of in US so as a therapy it remains an area of attention for us but in India for the last four 19:25 19 minutes, 25 seconds years we were not able to grow the business too much and it remained very much dependent on whether conjunctivitis 19:32 19 minutes, 32 seconds came in or not and things like that and uh at the size at which it was we could not give it enough attention. So that is 19:39 19 minutes, 39 seconds why the high other than this if you look at the present uh uh portfolio we hold most of it is uh coming within the four 19:47 19 minutes, 47 seconds or five main segments of the company. So you will have products either in respiratory, anti-infective, tomatological, GI or vitamins and 19:56 19 minutes, 56 seconds minerals which is carried by a GC division. At this point I don't see any more such identified opportunities for the India business. 20:06 20 minutes, 6 seconds Okay. And just to confirm so this division was uh also not done to tide over the liquidity situation, right? 20:15 20 minutes, 15 seconds Because uh no there is absolutely not. It is a very small division. At primary level for 20:22 20 minutes, 22 seconds internal sales for the year we have clocked 37 crores in India. 20:32 20 minutes, 32 seconds And we have to recognize that we are 13th player in this market where companies like NTO, Sunways, uh even 20:39 20 minutes, 39 seconds very small organizations are able to get a lead on us obviously because for them it is a very very fundamentally poor area of business. So they they approach it differently. 20:50 20 minutes, 50 seconds Okay. Understood. Yeah. 20:53 20 minutes, 53 seconds But coming to our international business. So we see good growth across all the markets US, Europe. So uh we 21:00 21 minutes expect this traction to continue in the next year as well. And uh particularly for the US because our sterile products are uh I mean the plant is still not 21:08 21 minutes, 8 seconds resolved. Uh so do you see this growth continuing in the US without uh approve uh without the FDA approval? 21:16 21 minutes, 16 seconds So um you know uh what we have done which I have said on earlier calls is for our key products we have gone into 21:24 21 minutes, 24 seconds uh adding uh second sites. So much of some of the sterile sales for us that you see in this quarter has actually got 21:32 21 minutes, 32 seconds build from those sites and that has helped. Uh so therefore uh what will really impact us if the plant situation 21:40 21 minutes, 40 seconds doesn't get resolved really is the future uh approvals which should be coming on time. 21:46 21 minutes, 46 seconds But uh otherwise we are okay. Of course we carry and continue to spend a lot on that site. So that uh that will is of 21:54 21 minutes, 54 seconds area of concern and we trying to resolve that as soon as possible. But um other than that uh US today is not just fair. 22:03 22 minutes, 3 seconds We do considerable amount of uh um you know solid or now we are getting into liquidals as well. Uh also the UK and 22:12 22 minutes, 12 seconds Europe business um uh has done very well. So and we have a decent order book right now and I'm sure our team will 22:20 22 minutes, 20 seconds work very hard to uh continue this kind of performance. 22:24 22 minutes, 24 seconds Sure. Uh so one question on the interest cost for this quarter. So if you look at the consolidated numbers the interest 22:31 22 minutes, 31 seconds has gone up materially um is there some forex impact also here? Yes. Yes. 22:38 22 minutes, 38 seconds So I think it is particularly common for foreign remedies. Therefore comes in the constraints because there's a one zone 22:44 22 minutes, 44 seconds uh in foreign currency and uh as such it is notional unless the war goes on and on and on then it will actually impact us but maybe pro like to say something. 22:55 22 minutes, 55 seconds So this quarter exchange loss itself on a foreign currency loan ECB loan is substantial almost a half a portion of 23:04 23 minutes, 4 seconds this finance cost is towards the exchange uh loss. So 20 cr impact. 24 cr impact. 23:12 23 minutes, 12 seconds 24 cr. Okay. And what would be your issue loan? 23:19 23 minutes, 19 seconds Uh 10 million euro. 10 million. Um okay. I'll join back with you. 23:31 23 minutes, 31 seconds Thank you. 23:33 23 minutes, 33 seconds Participants who wishes to ask a question please press start and one. 23:39 23 minutes, 39 seconds The next question is from the line of Kenel Meta from Boring AMC. Please go ahead. 23:44 23 minutes, 44 seconds Uh ma'am I had one question. Uh last quarter we had a loss of 34 crores in uh 34. We had a network negative of 34 cr. 23:53 23 minutes, 53 seconds This quarter it's 82 crores. Any reason why SPD which has seen increase in sales from 35 crores to 48 crores has seen a 24:01 24 minutes, 1 second negative net worth of 50 crores in this quarter increase. 24:07 24 minutes, 7 seconds So act okay I can okay go ahead so can as you know for it is early years 24:15 24 minutes, 15 seconds uh it's all about investment uh uh so the negative network which you see is the losses incurred during last couple 24:24 24 minutes, 24 seconds of years and uh we expect now this to turn around in coming years but uh the network which you are referring is uh 24:32 24 minutes, 32 seconds the impact of the losses uh incurred since uh acquisition till No no the last quarter as per your 24:41 24 minutes, 41 seconds result uh press release it was 35 network this quarter 82 crores. So what the reason for 50 cr jump in a quarter 24:49 24 minutes, 49 seconds of okay uh if you look at as you know FPC had a historical business of purchase 24:56 24 minutes, 56 seconds and sale from others and uh it typically depends on the portfolio of FP in that particular quarter. So whenever SP only 25:06 25 minutes, 6 seconds sells products supplied by Indoko we do much better but when they are purchasing finished good fruit good fruit good 25:10 25 minutes, 10 seconds fruit good fruit good fruit good fruit 25:18 25 minutes, 18 seconds the maximum jump now kil you are looking at number which not which includes not only FP but 25:25 25 minutes, 25 seconds Warren also another little entity there also we have a negative number so that is both put together not only FP PPP plus Warren. 25:35 25 minutes, 35 seconds Okay. So, uh you have not specified the warrant part in that. 25:41 25 minutes, 41 seconds Warren as you know is an OTC business and we have uh very clearly decided for that for at least 3 years we will uh consistently support it for advertising 25:50 25 minutes, 50 seconds and any other things required to build that business. 25:54 25 minutes, 54 seconds Understood. And ma'am uh we accept a lot of products in the Europe market if we see based on product basket for in 2025 26:03 26 minutes, 3 seconds and 2026 but uh based on your export data we are not seeing that uh expansion in that product basket except for 26:10 26 minutes, 10 seconds aloponol and paracetamol and uh poly chain your product purchasing purchasing okay so um what 26:19 26 minutes, 19 seconds happens is as you know uh uh Europe and UK uh there is major the fluctuation in pricing. So um sometimes some of these 26:29 26 minutes, 29 seconds small molecules u uh if the current uh business environment doesn't support in a manner that we should make margin on 26:37 26 minutes, 37 seconds it then we choose not to sell. Yeah would like to say something. Yeah. Uh hello. Yeah. 26:44 26 minutes, 44 seconds Yeah. Uh see besides alopanol and what you mentioned now we are also selling pablin and zonisomide very well. these two molecules. 26:55 26 minutes, 55 seconds So with contract manufacturers of course there's cetriine, there's paracetamol, zonicomide, pregablin cochin. So there 27:02 27 minutes, 2 seconds are many products we are not dependent on one or two but but we have we have got lot of like 27:09 27 minutes, 9 seconds a pixel van uh then eos. 27:17 27 minutes, 17 seconds Yeah, a pixel van should come in uh soon. 27:21 27 minutes, 21 seconds Okay. Understood. Understood. And uh and on the uh 27:29 27 minutes, 29 seconds on the API business side as we have got approval for the warren remedies part should we see the increased scale up now 27:36 27 minutes, 36 seconds for that part of business to for outside consumption. 27:40 27 minutes, 40 seconds Yeah. So Warren remedies doesn't yet have a reg market approval. So till now it makes key key starting materials for 27:48 27 minutes, 48 seconds us which we finish in Pataga and sell in the reg market. Uh therefore warren remedies actually carries we are not 27:56 27 minutes, 56 seconds able to optimize it fully because what is made at war remedies does not fetch reg market prices as of now. Understood. 28:04 28 minutes, 4 seconds And that is partly the reason uh financials also get disturbed. 28:10 28 minutes, 10 seconds Understood. And then wanted to know any reason why uh we have got a approval for river bakaban but only we have supplied 28:19 28 minutes, 19 seconds very negligible compared to other peers or capture the market share over last 6 months 28:26 28 minutes, 26 seconds for us market we have got approval only for one strength. Okay. Yeah. 28:34 28 minutes, 34 seconds Understood. No problem. Thank you. Yeah. 28:40 28 minutes, 40 seconds Thank you. The next question is from the line of Molly from BK Securities. Please go ahead. 28:51 28 minutes, 51 seconds Hi. Uh thank you for the opportunity. Um ma'am just wanted to understand uh what has driven the growth uh for our US 28:59 28 minutes, 59 seconds business. So I understand uh you answered that sterile products which were self transferred uh drove growth. 29:06 29 minutes, 6 seconds Uh so uh what what else uh was the reason why uh we witnessed this growth? 29:13 29 minutes, 13 seconds So same quarter last year in particular if you uh remember we were undergoing a major part of our master manufacturing 29:20 29 minutes, 20 seconds cycle uh at two of our large solid oil sites plant one in Goa and uh Bati 3. uh 29:28 29 minutes, 28 seconds plant one in Goa in particular supplies solids to us and uh this plant therefore had got impacted as in we we could not 29:36 29 minutes, 36 seconds supply it to optimum uh uh requirement uh and uh it is not just but we also 29:44 29 minutes, 44 seconds have a considerable amount of solids coming as well as oxylic what is between us and if I'm not mistaken I know from a 29:53 29 minutes, 53 seconds year a quarter it should be quarter it is uh 10 12 rest is 30:00 30 minutes so oral solids are sterile is only 12 in this so rest is all oral solids 30:08 30 minutes, 8 seconds okay sterile is 12 million and the rest is uh not million 12 cr 10 cr 12 cr 30:15 30 minutes, 15 seconds 12 cr we've got quite a basket of solid or and you're doing very yeah 30:22 30 minutes, 22 seconds understood okay okay ma'am and also there was one uh exceptional gain for 4Q. Uh can you just help us quantify? I think in the north it was for full year. 30:32 30 minutes, 32 seconds So was not able to understand. Can you help with that please? Uh which number you referring to? Sorry. 30:39 30 minutes, 39 seconds Around 34 crores of exceptional gain I think in 4Q number. 30:44 30 minutes, 44 seconds Uh no no you're talking about other income 16. Oh, in the exceptional uh 30:52 30 minutes, 52 seconds operating revenue then it is 16 cr exchange on the currency cr income is not there. No, you got the number wrong. 31:03 31 minutes, 3 seconds Ah sorry sorry ma'am sorry my mistake. It is 3.7 crores. Sorry. Ah okay. What is 3.7? 31:18 31 minutes, 18 seconds Okay. Some small amounts like reevaluation of graduate ETA. 31:22 31 minutes, 22 seconds Oh, okay. Okay. Okay. Related to the labor code only. Yeah. Yeah. Yeah. 31:27 31 minutes, 27 seconds Understood. Okay. Okay. Thank you so much, ma'am. Thank you so much. Thank you. 31:35 31 minutes, 35 seconds Participants who wishes to ask a question, please press star and one. 31:46 31 minutes, 46 seconds Anyone who wishes to ask a question may press star and one. Now 31:53 31 minutes, 53 seconds [clears throat] 31:55 31 minutes, 55 seconds the next question is from the line of nam from unique PMS. Please go ahead. 32:01 32 minutes, 1 second Yes. Thank you for the opportunity again. 32:04 32 minutes, 4 seconds Yeah. So just uh two three questions on the balance sheet item. So one is there's a entry asset classified as held 32:12 32 minutes, 12 seconds for sale in the balance sheet about 23 cr. So uh what is this regarding? 32:18 32 minutes, 18 seconds We have a land parcel we are looking at. 32:22 32 minutes, 22 seconds So we looking to sell that that land line. 32:24 32 minutes, 24 seconds Yeah. Yeah. Yeah. It was lying idle for the longest time. 32:28 32 minutes, 28 seconds Okay. Um secondly uh so in the cash flow statement I could see some provisions for uh doubtful debt and that has 32:36 32 minutes, 36 seconds increased uh year on year so about 10 crores this year. Um so uh we expect so 32:43 32 minutes, 43 seconds is this in line with what we generally do or uh that there is some issue? 32:49 32 minutes, 49 seconds Yes. So normal uh uh it's a combination of both one is uh one of the party where you know we have supplied some material 32:56 32 minutes, 56 seconds they have declared their bankruptcy so that is one so we have provided for that and second is uh this is in line with 33:03 33 minutes, 3 seconds our you know policy for provision for patents uh based on the aging analysis we do provide uh you know for uh patents 33:13 33 minutes, 13 seconds some old you know aging where you know we are discussing with them in terms of you know certain uh stocks, expireies, 33:22 33 minutes, 22 seconds price differences, you know, so on a safer side, we provide for those receivables. 33:27 33 minutes, 27 seconds Okay. Now coming to Warren again. So this quarter also I think we have a loss and I think because of the advertisement 33:34 33 minutes, 34 seconds that we did in the world cup or something which you mentioned in the previous call. 33:39 33 minutes, 39 seconds So what level of opex do or advertisement do you have budgeted for the next year and what kind of growth can we see in volume? 33:52 33 minutes, 52 seconds So um the business has I think grown from 90 or 90 92 or 94 last year to 120 34:00 34 minutes yes or 300 this year. So that is a good jump. are all our key brands sensor K, KF, Kodent uh as well as the new 34:09 34 minutes, 9 seconds launches DSP and DPC of the SensoDent family. Uh the Sensor, DSP, DPC has been well received. The first consignment 34:18 34 minutes, 18 seconds which has gone into the market, we are now looking for additional orders and uh as such the division looks set uh to 34:25 34 minutes, 25 seconds continue to grow. Of course, we need to add more products to the basket in order to justify because we have close to 350 34:33 34 minutes, 33 seconds people in the field. So with three or four products, it's not uh very effective. We have a few tooth toothbrushes also which our team calls 34:41 34 minutes, 41 seconds fillers. They are doing well now. But Kodite in particular which used to be a RX product only has been taken OTX. So 34:50 34 minutes, 50 seconds both the ethical team as well as the OTC team uh sort of focuses on this brand and it's doing very well. 34:58 34 minutes, 58 seconds So with the toothpaste I have less concerns despite all the advertising expenses etc etc the toothpaste side of 35:05 35 minutes, 5 seconds the business at at a is uh doing decently all right. it is the API um uh capex done and the operating cost at API 35:14 35 minutes, 14 seconds level from where we are really not able to sell anything right now because most products are under validation. So once you see the API side turn around which 35:24 35 minutes, 24 seconds is likely to take couple of quarters more then the warrant remedies standalone will also start looking good. 35:31 35 minutes, 31 seconds Okay now understood. So about one more year for the approvals and the validations to get over. Yes. Yes. Yes. 35:38 35 minutes, 38 seconds Okay. And uh so again on the emerging business we saw pretty good growth this year and uh so you've mentioned in the 35:48 35 minutes, 48 seconds past calls that we have a good uh field uh stuff going there and good work. So do you expect this to continue over the 35:56 35 minutes, 56 seconds next two three years? Do you have the port uh portfolio basket the products and approvals? 36:03 36 minutes, 3 seconds Yes certainly. I think Sep. 36:06 36 minutes, 6 seconds Yeah. Yeah. Uh I'll just come in here quickly. Yes. Uh we do have a very impressive uh basket and a portfolio and 36:15 36 minutes, 15 seconds we are mainly operating in eastern Africa that is Kenya, Tanzania, Zambia these three countries where we have 36:22 36 minutes, 22 seconds field force on the ground and uh about eight countries in French West Africa 36:28 36 minutes, 28 seconds that is Ivory Coast, Mali, Burkina Faso, Benin Ner, Cameroon, Seneagal and Charts. 36:37 36 minutes, 37 seconds So these are our main areas and uh it is absolute promotion, scientific promotion 36:43 36 minutes, 43 seconds that is uh getting us prescriptions and secondary business is more important to 36:49 36 minutes, 49 seconds us which is actual sale from the glosses as they are called the stockist in these countries to the retailer and that is 36:58 36 minutes, 58 seconds being measured. We also have a software installed there um high doctor. So Salesforce effectiveness is getting 37:07 37 minutes, 7 seconds measured in a very proper way and uh we are measuring the per head yield as we call it that is how much per 37:16 37 minutes, 16 seconds representative we are getting in terms of euros. So uh to answer your question in short uh yes the confidence level is 37:24 37 minutes, 24 seconds pretty high uh for next two to three years on this uh business. 37:31 37 minutes, 31 seconds Understood. uh on the MMP uh that we had undertaken. So you know till last 37:38 37 minutes, 38 seconds quarter we were still facing some challenges some customer approvals were delayed uh everything so now is 37:45 37 minutes, 45 seconds everything solved we can only see growth from here I business did show a good uh 37:51 37 minutes, 51 seconds uptake but any more uh challenges uh if I'm not mistaken a very small liy 37:59 37 minutes, 59 seconds of paracetamol remains remains in the old smaller size in bhi one just one but 38:06 38 minutes, 6 seconds otherwise almost all PL you know custom approvals have come in. So we should be able to scale Europe and scale it with uh addition in margin from here. 38:17 38 minutes, 17 seconds So we should still see some margin benefits coming in the next years. 38:23 38 minutes, 23 seconds Certainly certainly sorry to interrupt. May we request you to please rejoin the queue sir. We have other participants waiting for the turn. 38:32 38 minutes, 32 seconds Sure. 38:32 38 minutes, 32 seconds Thank you. The next question is from the line of Madhav from Shastra Capital. Please go ahead. 38:38 38 minutes, 38 seconds [clears throat] 38:38 38 minutes, 38 seconds Hi ma'am. Good evening and congratulations for the good numbers. Thank you. 38:44 38 minutes, 44 seconds Yeah madam see you know so what is you know depth uh expectation for this financial year and for the next pan as 38:51 38 minutes, 51 seconds well the debt debt. So as we said in IRL alone there is 630 cr debt lock 38:59 38 minutes, 59 seconds uh which is some combine and uh for the total entirely it is close to 950 uh of all this our 39:08 39 minutes, 8 seconds short-term um debt which has to be repaid will be around 300 cr right uh so next year repayment is 147 39:16 39 minutes, 16 seconds 140 for the next year yeah so 140 crores to be repaid in the next year coming year So during the final year of 2027 is there any plan for any reduction madam? 39:28 39 minutes, 28 seconds Yeah obviously we are working on. 39:33 39 minutes, 33 seconds So what would be the number is it 150 which is 147 crores is for this financial year for the next financial year. No no 14. Okay. 39:40 39 minutes, 40 seconds Yeah. So Mr. Mad. Uh so next financial year which is 26 27 we have a commitment to repay 140 another 140 in a year after 39:50 39 minutes, 50 seconds that and almost similar amount after in 28th 29th. So about 140 cr every year 39:56 39 minutes, 56 seconds for next 3 years while our target will be to repay or to prepay little more than this. 40:05 40 minutes, 5 seconds Okay. So is there any additional capex than you know the the normal capex are we planning for any capacity expenses 40:13 40 minutes, 13 seconds kind of thing is that the e the current year or next year no no we don't plan any major capex now 40:20 40 minutes, 20 seconds next two years yeah okay thank you on the on the Europe side I know when I was talking to the si 40:28 40 minutes, 28 seconds during QFI 26 call so there was an uh update from me is that he want to update on the no clarity karma there was no product for the 18 months. I think that 40:36 40 minutes, 36 seconds that 18 months are getting completed by now. So the current work because Europe is doing well and is there any 40:43 40 minutes, 43 seconds contribution come from that or so any any light you know uh Ben want to share with us on the Europe the clarity farmer unit. 40:52 40 minutes, 52 seconds So clarity farmer as separate products and uh probably at that time in Q2 when he spoke to you few were being 41:00 41 minutes transferred. Now some more products especially in liquid category are also going. However uh as I said in answer to 41:08 41 minutes, 8 seconds one of the calls earlier uh we are very careful uh the whole purpose of being on ground is in UK is to be able to get 41:15 41 minutes, 15 seconds more margin and not lose it. So if we see that the market is not opportune uh on price front then we hold. So um in 41:24 41 minutes, 24 seconds that manner um clarity business is yet to come to a sizable level where we can talk about 41:31 41 minutes, 31 seconds Understood. Anyway, that's natural that you are taking active participation depending upon the market situation. Understood? 41:39 41 minutes, 39 seconds Yeah. On the domestic madam actually know so I think there is we could not 41:46 41 minutes, 46 seconds other than the legacy product we cannot uh bring any other product or the flagship product other than the old change. So 41:54 41 minutes, 54 seconds so we have done extremely well on new launches sir. Um I think uh fourth quarter total new launch has contributed 42:03 42 minutes, 3 seconds to more than uh uh 2 cr total 20 cr in this particular financial year in the financial year 20 cr. 42:12 42 minutes, 12 seconds Yes. 42:12 42 minutes, 12 seconds Yeah. And uh we are getting a sizable amount in new launches and they are doing very well. So products like PM6, 42:19 42 minutes, 19 seconds Dropin, Droy Techch M. Um then we have no kodi od3 we have weapon ci lot of new 42:28 42 minutes, 28 seconds products as well as brand extensions being launched the latest product which we have launched in this quarter is 42:35 42 minutes, 35 seconds cyclop suspension uh there's also strawberry all our new products are being received pretty well so on that 42:42 42 minutes, 42 seconds front I think I'm sorry yeah if you can add one thing in the management presentation 42:51 42 minutes, 51 seconds offers a lot of that helps as well. Yeah. Thank you. Thank you. Thank you for Thank you. 42:57 42 minutes, 57 seconds Thank you. The next question is from the line of Mik from BNK Securities. Please go ahead. 43:05 43 minutes, 5 seconds Ma'am, thank you for the opportunity. 43:06 43 minutes, 6 seconds Again, I just wanted to understand what are our growth triggers uh for the uh regulated markets uh for the next uh year which is FI 2728. 43:18 43 minutes, 18 seconds So um um you know uh for the red market of course the Europe business of base contract manufacturing will continue to 43:25 43 minutes, 25 seconds grow but more than topline growth that business is likely to give us better margins in the coming year because it could be manufactured in plants which 43:33 43 minutes, 33 seconds has completed all its uh MLP scaleups and all those things. uh in US while historically we were only dependent more 43:41 43 minutes, 41 seconds on steroid we have now added a substantial uh solid oil base and that is also doing very well. Uh in this year 43:49 43 minutes, 49 seconds both in Europe and US we intend to launch our liquid or uh which is not as crowded a space as uh you know uh other 43:58 43 minutes, 58 seconds solids and we expect to do well here also. So there are a lot of plans uh lot of products filed uh being approved and 44:07 44 minutes, 7 seconds getting approved also and um uh we you will see um a good combination of uh uh 44:15 44 minutes, 15 seconds efficiency in manufacturing with the value ad of uh u uh you know good orders in place helping us grow these businesses. 44:27 44 minutes, 27 seconds Okay. Okay. Thank you so much. Thank you. 44:31 44 minutes, 31 seconds Thank you. So the next question is from the line of Kennel Meta from Boring EMC. Please go ahead. 44:37 44 minutes, 37 seconds Um ma'am would like to know what is the capacity utilization for our oral business and warrant remedies out of the four lines and what are the initiatives 44:46 44 minutes, 46 seconds we are taking to increase our other than export or contract manufacturing for some bigger players. Yeah, thank you for 44:55 44 minutes, 55 seconds that uh question because we have started uh uh exports from that site uh through uh at this stage uh to South Africa 45:04 45 minutes, 4 seconds manufacturer of uh uh toothpaste toothpaste I don't know whether it is coming this quarter yeah it 45:11 45 minutes, 11 seconds 37 lakh a small amount to start with and we are seeking other such opportunities meanwhile about four lines you said no 45:19 45 minutes, 19 seconds so we have actually installed only one so although provision was made we installed only one. There was a second 45:26 45 minutes, 26 seconds line of mouthwashes but we have not gone for that yet because we continue to make mouthwashes at other locations. Uh so 45:33 45 minutes, 33 seconds capacity utilization of the phase block is not a very big concern for us because we have set up a state-of-the-art unit 45:41 45 minutes, 41 seconds and we are able to make 500 5,000 kilo batches with only five people inside. So that is our better managed plant. uh so 45:49 45 minutes, 49 seconds um you know we will uh uh we really have good control on efficiency in that plant. It is the API plant as I said 45:58 45 minutes, 58 seconds where we have both u uh capital expenditure done. We also have operating expenses because we are doing 46:05 46 minutes, 5 seconds validations of products with but these validations are not resulting into sales right now because those products are not yet approved out of that site and that 46:13 46 minutes, 13 seconds is putting pressure on the entire war remedies numbers. I hope I can and as somebody said uh earlier it will take us 46:21 46 minutes, 21 seconds one more year to get red market approval. We are trying to hasten it by varying sight of a product from Pataganda to Oric. Hopefully that should 46:29 46 minutes, 29 seconds bring USFDA faster but I cannot promise that. 46:34 46 minutes, 34 seconds Uh understood and uh one more question ma'am uh over uh India business over last few quarters we 46:42 46 minutes, 42 seconds have seeing uh growth in cardiac and uh anti-diabetic. Is it due to low base or we have launched new products? 46:50 46 minutes, 50 seconds No, it is uh our base is very low which is why you're seeing the growth. 46:54 46 minutes, 54 seconds Understood. And uh what will the actual revenue based you will see growing for the India business apart from the OTC 47:04 47 minutes, 4 seconds in line with IPM or uh it will degrow with IPM? 47:12 47 minutes, 12 seconds Understood. Understood. Understood. And uh during the quarter SP was technically profitable as we have seen in last 47:20 47 minutes, 20 seconds quarter if we exclude the warrant losses. 47:24 47 minutes, 24 seconds No uh SP as promote explained uh we were impacted with some some extraordinary 47:32 47 minutes, 32 seconds costs which were taken at end of this quarter on expired products etc. Which is why it has been a hit negative four. Yeah, four cr almost 4 cr 47:41 47 minutes, 41 seconds was impacted uh was the impact seen but also the product mix. So we actually looked into this because the cogs on the 47:49 47 minutes, 49 seconds u Q4 sales of SP have been extraordinarily high um during Yeah. 47:55 47 minutes, 55 seconds Yeah. Yeah. because some of our products are not uh we do have a few products in our basket which don't get very good margins and when we sell more of that or 48:04 48 minutes, 4 seconds when we have to do a shelf state uh shelf stock adjustment or things like that and in that quarter you see a hit. 48:12 48 minutes, 12 seconds So going forward will you see that again or it will reduce videos as we are seeing increase in the it should 48:22 48 minutes, 22 seconds and can we get the new product series revenue mix in the overall India business during the year of water? 48:30 48 minutes, 30 seconds uh I think I think we have done close to 20 in new uh new launches this year in 48:38 48 minutes, 38 seconds India and uh one of the highest uh is come from Droy Techch M has done well 48:46 48 minutes, 46 seconds your uh um web brace there are many products um what you could do like somebody requested is possibly from next 48:55 48 minutes, 55 seconds time if possible and the MDA will give you a note a line out to all Uh and ma'am if we exclude the anti- 49:02 49 minutes, 2 seconds respiratory and anti-infective uh which has seen deg growth our uh base would have seen the volume growth is it correct? 49:12 49 minutes, 12 seconds Um yes there is another category which got impacted in this quart in particular which is the urological which this is 49:19 49 minutes, 19 seconds our urinary alkalizer sital but like I explained uh that should kick off this. 49:25 49 minutes, 25 seconds So you know because of season these there are shifts in these products you get it sometimes in Q4 then sometimes in Q1 of the next year uh depending on how 49:34 49 minutes, 34 seconds summer uh or rains kick off. So for India it is better to look at a MAT performance and uh to review whether the 49:42 49 minutes, 42 seconds products are doing all right what is happening to them because otherwise there will be these kind of peaks and trough. 49:49 49 minutes, 49 seconds Understood. Understood. And ma'am the asset for held sold land is it uh is it at the book value or uh we will get a 49:58 49 minutes, 58 seconds more value than uh we have shown on the balance sheet right now? We should get more. This is book value. 50:05 50 minutes, 5 seconds Okay. Understood. No questions. All the best. 50:11 50 minutes, 11 seconds Thank you. A reminder to the participants. Anyone wishing to ask a question may please press star in one. 50:21 50 minutes, 21 seconds The next question is from the line of mother from Shashka Capital. Please go ahead. 50:26 50 minutes, 26 seconds What is the what is the revenue for the current quarter? Madam um just check for the year it's 120. I think this quarter is 27. 50:36 50 minutes, 36 seconds 27 cr. Yeah. 27.4. 50:40 50 minutes, 40 seconds Okay. And uh so what is the you know uh uh uh plan for I mean so what how much 50:47 50 minutes, 47 seconds reduction in interest expenses can be considered for both standalone and consolidated for the current financial year. 50:56 50 minutes, 56 seconds So uh father if you see our repayment schedule is 140 as I mentioned and our average interest rate is in the range of 51:03 51 minutes, 3 seconds 8.5 to 9. So you can you know consider that much reduction in overall interest uh cost. 51:12 51 minutes, 12 seconds Okay. So then so the 960 minus 140 means so 960 140 means around 120 crition will be there. 51:23 51 minutes, 23 seconds Yeah. for 40 cr repayment if you consider in a stagger stagard manner then average cost of borrowing is just short of 9%. 51:34 51 minutes, 34 seconds Understood. Understood. Yeah. 51:36 51 minutes, 36 seconds Understood. Thank you. Thank you very much. Okay. Okay. 51:42 51 minutes, 42 seconds Thank you. A reminder to the participants. Anyone wishing to ask a question may please press star in one 51:57 51 minutes, 57 seconds as there are no further questions from the participants. I now hand the conference over to the management for the closing comments. 52:06 52 minutes, 6 seconds Yeah, thank you everybody for joining us uh on this uh uh discussion and call and for the very interesting questions 52:13 52 minutes, 13 seconds you've asked. uh wishing everybody a great uh weekend ahead. Thank you. Thank you. Thank you. 52:20 52 minutes, 20 seconds Thank you very much. 52:22 52 minutes, 22 seconds Thank you members of the management team. Ladies and gentlemen, on behalf of Dollar Capital, that concludes this conference call. We thank you for joining us and you may now disconnect your lines. Thank you.