Lincoln Pharmaceuticals Ltd — Q3 FY26

Lincoln Pharmaceuticals Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ArxdsJAutnU Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q3 and 9 months FI26 earnings conference call of Lincoln 0:09 9 seconds Pharmaceuticals Limited. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:27 27 seconds your touchstone phone. Please note that this conference is being recorded. 0:33 33 seconds I now hand the conference over to Miss Rush Sha, company secretary and compliance officer, Lincoln Pharmaceuticals Limited. Thank you and over to you Misha. 0:45 45 seconds Thank you. Good evening everyone. I on behalf of Lincoln Pharmaceuticals Limited once again welcome you all to 0:52 52 seconds company's quarter 3 financial year 26 investor conference call. On this call from the management we have Mr. Munjal Patel wholetime director along with Mr. 1:02 1 minute, 2 seconds Darit Sha chief financial officer myself Tusha Sha company secretary and compliance officer and our investor 1:10 1 minute, 10 seconds relations team. Before we begin the earnings call I would like to mention that some of the statements made during today's call might be forwardlooking in 1:19 1 minute, 19 seconds nature. These statements are based on current current expectations, forecast and assumptions that are subject to risk and uncertaintities. I will now hand 1:28 1 minute, 28 seconds over the call to Mr. Munjal Patil for his opening remarks. We will then open the forum for question and answer. Over to you sir. 1:38 1 minute, 38 seconds Hello everybody. Good afternoon or good evening and uh welcome to the 1:46 1 minute, 46 seconds investor call of Lincoln Pharma. My name is Munjal Patel and we are I'm one of 1:54 1 minute, 54 seconds the management partner in the company as a wholetime director. 1:59 1 minute, 59 seconds Uh particularly for the Q3 we are looking at the numbers of uh the revenue is 2:07 2 minutes, 7 seconds 166 uh.32 compared to last year which was uh 14655. 2:16 2 minutes, 16 seconds This is quarter 3 to quarter uh 3 FY26 to quarter 3 FY25. 2:24 2 minutes, 24 seconds Uh uh the ITA is uh 38.74 2:33 2 minutes, 33 seconds compared to last year it uh was 32.63 last year. Uh PA uh profit before tax is 2:41 2 minutes, 41 seconds 34.72 wherein last year it was 28.68. 68 2:47 2 minutes, 47 seconds NP net profit is 28.60 compared to last year it was 20.77 2:56 2 minutes, 56 seconds and EPS is 14.28 compared to last year which was 10.37. 3:03 3 minutes, 3 seconds So this is the uh regarding the uh quarterly comparison of Q3 uh last year 3:12 3 minutes, 12 seconds and Q3 this year. There has been uh some minimum plus and minuses during the uh 3:20 3 minutes, 20 seconds quart uh quartertoquarter results because of the geopolitical kind of situations but eventually we have 3:27 3 minutes, 27 seconds achieved the number as of now the EPS for 9 months is coming close to 41 uh uh 3:35 3 minutes, 35 seconds is coming to 38.07 which last year as a whole was somewhere around 41.11. 3:43 3 minutes, 43 seconds So I think so we are going on the right track and we will be achieving a good numbers uh by the end of the year. So 3:51 3 minutes, 51 seconds just to brief you with uh what we have done till now is the company is going at a reasonable pace of 12 to 18% that's what we are targeting to grow at. 4:04 4 minutes, 4 seconds uh also the company has uh diversified and started investing more into the 4:11 4 minutes, 11 seconds regulatory part of the product uh of the registration of the products. So we are now expanding the portfolios in the 4:19 4 minutes, 19 seconds different regions also where we are entering into some niche uh therapeutic index in domestic market also as well as 4:28 4 minutes, 28 seconds in the international markets also doing all the research and the uh what do you call the B studies as 4:36 4 minutes, 36 seconds well as the whole uh do those documentation process at our own site and uh we'll be submitting it into 4:42 4 minutes, 42 seconds multiple countries regulated countries also which will give us uh growth and also 4:50 4 minutes, 50 seconds for that we have already bought a special building which we are about to finish up or you know it will start uh 4:59 4 minutes, 59 seconds working within about two or two and a half months. So there it's a special dedicated R&D center will be there for 5:06 5 minutes, 6 seconds the development of the new products. So that is one step which we have done. Uh second step is uh the CIFA block which 5:15 5 minutes, 15 seconds was about to commence has already commenced and you know the revenue has started turnurning around in that one also. Uh still lot of regulatory has to 5:24 5 minutes, 24 seconds come but uh whatever we could start with and the regulatories we have uh we are waiting on that will add on to the value 5:33 5 minutes, 33 seconds but today we are doing uh about roughly around 45 CR of business which we are targeting this year. So that would be 5:42 5 minutes, 42 seconds something which will be coming up and uh overall our growth and the target for 5:50 5 minutes, 50 seconds for thousand CR is still there and we will achieve it anyhow that would be something from my side if 5:58 5 minutes, 58 seconds you have any questions I'll please happy to take it for you 6:05 6 minutes, 5 seconds thank you very much we will now begin with the question and answer session anyone one who wishes to ask a question may press R and one on the touchstone 6:14 6 minutes, 14 seconds telephone. If you wish to remove yourself from the question queue, you may press R and two. Participants are requested to use handsets while asking the question. 6:25 6 minutes, 25 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 6:32 6 minutes, 32 seconds Participants, you may press star and one to ask a question. 6:46 6 minutes, 46 seconds The first question is from the line of pranav shik from phenamony growth fund. Please go ahead. 6:54 6 minutes, 54 seconds Hello sir. Uh good afternoon and uh congratulations on good set of numbers. 6:58 6 minutes, 58 seconds So my question was key for a long-term uh target of,000 crores. uh where will the major growth come from domestic land 7:05 7 minutes, 5 seconds to generate exports or the regulated markets and what is the realistic timeline for regulated market 7:13 7 minutes, 13 seconds contribution to happen and where are we currently over there can you share some light on that uh thank you Mr. 7:21 7 minutes, 21 seconds First of all, uh the growth which we are expecting will of course come from the 7:28 7 minutes, 28 seconds basic growth will come from the existing facility wherein the new dosers as well as the new products which we have 7:35 7 minutes, 35 seconds launched and are being exhibited will come from there that is the first growth because that is the existing business 7:43 7 minutes, 43 seconds what we are doing. We are still looking at an upwards of another 10 15% by next year first at the first slot. 7:52 7 minutes, 52 seconds Yeah. 7:53 7 minutes, 53 seconds Secondly, uh our C4 block which is just contributing to 45 as of now that will gradually our uh target is to achieve 8:02 8 minutes, 2 seconds 150 but we will closely come to at least 9200 by next year. That's what is our 8:10 8 minutes, 10 seconds next target. And also with the current business since the in the domestic market also you see that our products 8:18 8 minutes, 18 seconds have spread in a bigger way in comparison to what we were our Tex molecule which is one of the key amongst 8:26 8 minutes, 26 seconds the ENT segment. Today we are one of the brand leaders in the ENT segment. So you 8:33 8 minutes, 33 seconds know and now we are even uh exploring other market uh therapeutic index in the 8:40 8 minutes, 40 seconds uh what do you call the different uh horizon of the industry. So this is what we will have the growth from. Also 8:48 8 minutes, 48 seconds regarding the regulated markets, we have done CMO and CDMOS already signed with the company wherein we are looking at 8:56 8 minutes, 56 seconds total right now we have 18 or 19 something which is already been processed. 9:02 9 minutes, 2 seconds Welcome and five. Hello. 9:10 9 minutes, 10 seconds Yeah. Go ahead sir. 9:12 9 minutes, 12 seconds Yeah. So five we have already signed. So probably around 24 25 uh CDM projects will be commercialized. So that's where 9:19 9 minutes, 19 seconds we'll get the regulated market approval from and whatever new we are developing that also we will put in these regulated markets. So that will be a bonus which 9:28 9 minutes, 28 seconds will again help the business to grow and touch the thousand. We might even cross the thousand. 9:34 9 minutes, 34 seconds Understood. And so for our domestic business what is our doctor coverage expansion strategy and uh which therapy 9:43 9 minutes, 43 seconds are therapy areas are delivering the highest prescription growths and uh can you tell something about that? 9:51 9 minutes, 51 seconds See if you see our basic our highest therapeutic growth is coming up from anti- uh infectives then is the 10:01 10 minutes, 1 second respiratory then is the elmary and metabolism uh which is what we are looking at another is urinary then 10:10 10 minutes, 10 seconds hormones and then is the musculine and other other uh therapeutic index. So this is our major contributors. 10:20 10 minutes, 20 seconds Understood. Thanks sir. Uh I'll join back in the queue for it. Thank you. 10:29 10 minutes, 29 seconds Uh say he will join by the queue for a follow-up question. Okay. Okay. 10:34 10 minutes, 34 seconds Thank you. Participants you may press star and one to ask a question. 10:40 10 minutes, 40 seconds Next question is from the line of Vikas an individual investor. Please go ahead. 10:45 10 minutes, 45 seconds Yeah. Hi thanks for the opportunity. I have two questions. One is that uh the company's dividend payout has been 10:53 10 minutes, 53 seconds negligible over the last few years. So what is the out the line for the participant dropped? 11:02 11 minutes, 2 seconds You may go ahead he's just asking about the dividend and 11:09 11 minutes, 9 seconds then I think so it dropped right. So for the dividends we are uh giving the consistent dividend till now we are 11:17 11 minutes, 17 seconds thinking on to whether to revise or what to do. So that would be something which we are discussing internally with the 11:25 11 minutes, 25 seconds management and it also with the growth structure of the company whether you know the revenues are pretty the reserve 11:34 11 minutes, 34 seconds what we have is pretty good for us to develop as a debtree company or not. So depending on that we will be exploring 11:41 11 minutes, 41 seconds whether we should go for extra or more dividend. Thank you. So we have Vicas reconnected. 11:50 11 minutes, 50 seconds Yes. Hi. Uh the second question I had was that on the loans and advances if you could explain that the substantial amount of loans and advances what is the 11:59 11 minutes, 59 seconds nature of that and when are they like likely to be paid back? 12:04 12 minutes, 4 seconds See these loans and advances are either given to companies who are giving us which are uh few of them are uh those 12:14 12 minutes, 14 seconds kind of ICDs which are giving us returns because we have substantial cash flow which is already there in the 12:21 12 minutes, 21 seconds company and we are we have to not have everything in the one basket. So uh few 12:28 12 minutes, 28 seconds we have been giving it as ICD wherein secured uh assets or loans are being 12:35 12 minutes, 35 seconds given to us or you know the mortgages have been done with us. So we are secure 12:41 12 minutes, 41 seconds and they are being paying us regular returns on the investments what we have been given. Plus we have also given to 12:50 12 minutes, 50 seconds people who help us for uh getting the materials at a cheaper rate. So if we 12:56 12 minutes, 56 seconds are getting um some discounts at about 2 3% or 4% up to even the printers they 13:04 13 minutes, 4 seconds give up to 10% also if we pay out in cash. So we give it to such uh uh people who we demand a discount which 13:13 13 minutes, 13 seconds contributes to the business. So anything what is being given as a loans and advance it is till now we haven't have any defaults and we have been secured 13:22 13 minutes, 22 seconds and we are getting returns which are upwards of 10 to 12% and uh our main 13:29 13 minutes, 29 seconds goal is to have the money which is sitting there not until we invest it at least it should be giving us something 13:36 13 minutes, 36 seconds more than the inflation rate just to cover the cost of the money what we are having on 13:44 13 minutes, 44 seconds And we have parked even in the mutual funds and various other FD kinds of instruments also and even land is also 13:51 13 minutes, 51 seconds there. So that's all in the books of the company. 13:54 13 minutes, 54 seconds Yes. Uh I missed the answer of my first question but just connecting the two points that uh given the fact that there's substantial surplus cash it will 14:02 14 minutes, 2 seconds be then the best interest of the shareholders that instead of investing in the non-core activities like say the secured against loan against property 14:11 14 minutes, 11 seconds etc. It will be best if you could increase the dividend payout so that over a period of time this uh this gets normalized. 14:19 14 minutes, 19 seconds We are trying to you are right but you know we are scared right now is only our problem is that we if we can find 14:26 14 minutes, 26 seconds something uh inorganic growth which we are expecting so we are you know trying to dig into different parts of the 14:35 14 minutes, 35 seconds uh pharma industry where we could find something which is an inorganic and we could uh take an exponential growth by 14:44 14 minutes, 44 seconds uh having such funds on hand rather than if I take a payout. You know, we will be the uh since we are the promoters, we 14:52 14 minutes, 52 seconds would be the happiest ones to get. But we are not doing it is just to safeguard the company as a whole wherein you know 15:00 15 minutes if I uh get a kind of business wherein I can have an additional revenue. It is a beneficiary for the investor also and 15:09 15 minutes, 9 seconds the company also. So that is our key focus wherein you know the pricing and right now the inorganic growth if we can 15:17 15 minutes, 17 seconds get that's what we are looking at or we will grow uh from scratch by building up a green field project. So the money 15:25 15 minutes, 25 seconds filling there is just for that purpose only. 15:29 15 minutes, 29 seconds Yes sir I totally agree it's just that you could balance the two I guess the two objectives and find a mid balance that will be the great for the company. 15:37 15 minutes, 37 seconds Thank you. 15:44 15 minutes, 44 seconds Thank you participants. You may press star and one to ask a question. 15:52 15 minutes, 52 seconds Next question is from the line of Shahija mic for financial consulting. Please go ahead. 16:01 16 minutes, 1 second Thanks for the opportunity sir. Am I audible? Yes sir. 16:08 16 minutes, 8 seconds Yeah sir. Uh uh I think in our last interaction we mentioned something about 16:15 16 minutes, 15 seconds uh Canada, Australia and EU business. So true. 16:19 16 minutes, 19 seconds Uh if you could provide more color on how we are doing on all those three fronts uh what are the current revenue levels and what kind of ramp up we are expecting from those regions. 16:32 16 minutes, 32 seconds Okay, that's what I was coming to when you said that. I already uh uh before also in the 16:40 16 minutes, 40 seconds uh the Canadian business we have already uh started with the 15 or 17 products 16:47 16 minutes, 47 seconds commercialized. So various products have been given to them. It is through a CDMO and a CMO project which is contributing 16:54 16 minutes, 54 seconds to this year somewhere around about uh 4 to5 million of business roughly and also 17:04 17 minutes, 4 seconds another total of all is 25 products which we have 23 or 25 products which we have signed till now and those products 17:13 17 minutes, 13 seconds will be developed as well as commercialized. out of that uh commercialization has been done and it is being giving contribution to the 17:20 17 minutes, 20 seconds company. Regarding the TGA we have been uh getting the products identified 17:27 17 minutes, 27 seconds because entering TGA was like you know uh whether we should have a MA which is already ready and we can do the site 17:35 17 minutes, 35 seconds transfer on that one. So we were working on that uh base that we we had an opportunity to get about uh 15 to 18 MAS 17:42 17 minutes, 42 seconds in a with somebody who already has it but we couldn't get successfully transferred those products to our 17:49 17 minutes, 49 seconds commercial angle but uh we will now we are in a process wherein you know we we 17:56 17 minutes, 56 seconds have to file our own products from the start. So we'll do that again and that 18:03 18 minutes, 3 seconds will be taking another year or so for us to start the TGA and EU is about to get 18:10 18 minutes, 10 seconds reinspected. So we are just waiting for the reinspection to be commenced because QP has already audited it and until 18:18 18 minutes, 18 seconds unless we don't get it uh reodited. So we are waiting from it. We have applied it from two countries. So as fast as we 18:26 18 minutes, 26 seconds can we will be able to get the back the approval and we can go ahead with it. 18:30 18 minutes, 30 seconds But since we have the SR approval from Canada we are open to all the markets as of now. So there is no such kind of a business loss which we are facing. 18:45 18 minutes, 45 seconds Understood. Uh sir uh you mentioned $45 million uh business from Canada. uh are 18:52 18 minutes, 52 seconds we expecting any ramp up going forward or is this the maximum level that we could do with current set of molecules? 19:00 19 minutes As I told you it is just about 15 or something products and total is about 23 products which we have to commence and 19:08 19 minutes, 8 seconds once uh that is the basic benchmark and that is only the tablet line which we are looking at. Now since Health Canada 19:16 19 minutes, 16 seconds inspected us in January, we got the tablet capsule uh ointment uh sachets, 19:23 19 minutes, 23 seconds dry syrup and our uh liquid syrup line approved. So six lines are now approved from Health Canada. So it helps us in 19:32 19 minutes, 32 seconds various markets which are indirectly uh accepting the accredititions of such markets which are SR markets and help us 19:41 19 minutes, 41 seconds to enter in those markets through these approvals. So you know of course it will increase and it may cross even uh $10 19:50 19 minutes, 50 seconds million or $15 million down the line. So we are expecting more business to grow not even only from this particular region but we can even grow it from 19:59 19 minutes, 59 seconds Latin America. We can grow it from Southeast Asia and other countries wherein these certificates are useful 20:06 20 minutes, 6 seconds for us to get the products registered and going forward it will give us a commercial value. 20:17 20 minutes, 17 seconds Got it sir. And sir you mentioned something about reinspection from EU. 20:22 20 minutes, 22 seconds I'm uh I'm sorry I didn't understand that part. Uh is this a timeline thing that we have to get inspected again in 20:30 20 minutes, 30 seconds the time? 20:33 20 minutes, 33 seconds So every 3 years they do have an audit but sometimes you know they are in a phase wherein they are already booked 20:40 20 minutes, 40 seconds with lines the auditors have they have a queue open. So we firstly we had an audit from EU Germany but Germany was 20:49 20 minutes, 49 seconds full. So now we are targeting even Hungary. So our QP audit which is the first phase of the audit that has been cleared now we are just waiting for the 20:58 20 minutes, 58 seconds final audit to come up. So probably we can get it sometime in the middle of uh uh May June sometime. That's what we are targeting. 21:10 21 minutes, 10 seconds Understood sir. And when should we start a business coming from that region if we get that approval in May June? 21:19 21 minutes, 19 seconds See we we'll start once these uh we have already submitted three products and 21:26 21 minutes, 26 seconds once uh these uh approvals are clear we can again push up to more products and 21:33 21 minutes, 33 seconds then we might get the products approval for those three products also. 21:41 21 minutes, 41 seconds Understood sir. 21:43 21 minutes, 43 seconds uh on the long-term revenue targets of 1,000 crores I think uh earlier we guided for FY28 21:52 21 minutes, 52 seconds uh but uh yeah uh yeah so are we still sticking to that uh year or are we like pushing it 22:00 22 minutes forward frankly telling you we are still sticking to that but it might take five 22:07 22 minutes, 7 seconds 6 months here and there but we are still sticking to the number what we are 22:14 22 minutes, 14 seconds in mind because we have to achieve that number and we have to cross that signal and for that we are also that's the reason that we are also waiting for 22:23 22 minutes, 23 seconds either we can't expand in the domestic territories or even through an inorganic growth or even through registrations or 22:31 22 minutes, 31 seconds even by putting up a new facility. So we have everything uh we are exploring and we have hands on many things right now. 22:40 22 minutes, 40 seconds So probably we'll be successful to achieve that number in the timeline what we have told otherwise it will be 22:47 22 minutes, 47 seconds maximum to maximum somewhere around 6 months got it sir and currently sir we are 22:55 22 minutes, 55 seconds doing around 15% in eida margins should we expect expansion on that front as well 23:05 23 minutes, 5 seconds frankly telling you to be on a secure side I would say 15 would uh ideal but no uh we might go up to 23:14 23 minutes, 14 seconds between 15 to 18 that's what we can expect. 23:19 23 minutes, 19 seconds Perfect. So makes makes sense. Uh so last question. 23:23 23 minutes, 23 seconds I don't want to overcommit you guys and then you know I don't perform and then again I have a question so it's just 23:32 23 minutes, 32 seconds understood sir. Perfectly understandable sir. Makes sense actually. So last question on sephilosporin's block. uh uh 23:39 23 minutes, 39 seconds what kind of revenues are we doing from that and uh have we achieved the break even levels 23:46 23 minutes, 46 seconds today as of now while I'm uh speaking to you uh this year has already crossed the 23:54 23 minutes, 54 seconds break even and we are at least on the positive side of the balance sheet with whatever business we are doing first 24:00 24 minutes thing uh secondly uh the revenue from that by the end of this year we expecting is between somewhere around 45 24:09 24 minutes, 9 seconds CR that is what we are expecting this year 24:15 24 minutes, 15 seconds out of which I think so 32 to 34 it is done 24:24 24 minutes, 24 seconds understood sir understood so I'll come back in the queue if I have more questions thank you 24:31 24 minutes, 31 seconds thank you next question is from line of me ma from person exponential please go ahead 24:39 24 minutes, 39 seconds Yeah. Uh thank you. My uh question has been answered. This one question I wanted to uh know what is your R&D 24:46 24 minutes, 46 seconds expenses as a percentage of revenue and how should I look into that going forward. 24:54 24 minutes, 54 seconds See as of now our R&D expenses roughly comes to around 1.8 to 2%. But with this 25:02 25 minutes, 2 seconds aggressive planning what we are trying to do is we are we might come up to 3% 25:09 25 minutes, 9 seconds or 3.2 or 3.25 that's what is what we are targeting uh just to now scale up to 25:16 25 minutes, 16 seconds the next level because in the regulated markets we have to pay the higher fees as well as you know we we want to have 25:24 25 minutes, 24 seconds the doers and all the intangible asset which is there on our name. So for that whatever expenses we have to do we'll 25:31 25 minutes, 31 seconds do. So it will be the R&D expenses as of now is roughly around uh 1.8 to 2% which we are targeting to 3 to 3.25. 25:42 25 minutes, 42 seconds Okay. Understood. Thank you. Thank you. 25:50 25 minutes, 50 seconds You may press star and one to ask a question. 25:54 25 minutes, 54 seconds Next followup question is from nanopano shik from growth fund. Please go ahead. 26:00 26 minutes Uh sir uh what is the market share in top five brands and uh on that front are we compensating on price or price 26:08 26 minutes, 8 seconds prescription stickiness and uh what is the strategy over there? 26:15 26 minutes, 15 seconds See our top five uh brands. If you talk about it would be especially in international it varies country to 26:23 26 minutes, 23 seconds country because you know we are into a different uh segment of mode wherein we are there. So you know country to 26:32 26 minutes, 32 seconds country the brand and the brand value keeps on uh changing but we are uh significantly present in each country at 26:41 26 minutes, 41 seconds least whatever we are present with our top brands are contributing around 26:47 26 minutes, 47 seconds starting from uh $100,000 to sometimes to $2 million a brand and in the 26:54 26 minutes, 54 seconds domestic market you know that as I told you the therapeutic index which we are focusing so the major is the Trixon 27:02 27 minutes, 2 seconds brand which is there also with that there is this um VVN brand as well as mobile brand as well as the uh the PMX 27:12 27 minutes, 12 seconds which is the innovator brand for the year and uh bell uh what do you calling 27:20 27 minutes, 20 seconds so that is the brands which we are focusing the most and overall that is what is our target which we are Sorry. 27:31 27 minutes, 31 seconds Understood. Understood. And sir, what percentage of exports comes from underdriven Africa market versus uh the 27:38 27 minutes, 38 seconds branded emerging markets versus the regulated markets? 27:43 27 minutes, 43 seconds See to be specific for now if I consider Africa market or regulated market uh mostly now everything has become the 27:52 27 minutes, 52 seconds same as per the GMP what has been applied to in even Africa also. So I think so the markets are the same but if 27:59 27 minutes, 59 seconds you would ask me for like a Canada one which I told you as of now we are doing about3 to4 million so we would deduct that much from our current sales which 28:08 28 minutes, 8 seconds is a regulated market rest everything is coming from Africa Southeast Asia Latin America and the other tendering business 28:16 28 minutes, 16 seconds like UNW or UNICEF or other kit projects which we can have tender projects 28:26 28 minutes, 26 seconds Okay. Okay. So that's that's it from my side. Thanks. 28:31 28 minutes, 31 seconds Thank you. Next question is from Prashant individual investor. Please go ahead. Hello. Is my voice audible? 28:40 28 minutes, 40 seconds Yes sir. 28:41 28 minutes, 41 seconds Yes. Your voice is uh thanks for the opportunity and uh uh congratulations on 28:48 28 minutes, 48 seconds a decent set of members to the team. I have basically two questions and I joined a bit late so pardon me if it is repetitive. The first question is 28:56 28 minutes, 56 seconds regarding other income. So for the 9 months if we see it works out to around 50% of the EIT uh going forward how 29:04 29 minutes, 4 seconds sustainable do you see what is this other income and will this be in the same trench or can you give some more insights into this? 29:14 29 minutes, 14 seconds Okay. See the other income is two types of income. One is the dollar difference income which is being generated. 29:23 29 minutes, 23 seconds So that is one part of the other income and second part of the other income is whatever the results which we have put and the earnings which we are getting in 29:32 29 minutes, 32 seconds terms of uh the return that is also part of the other income. So these two are contributing to the other income. 29:41 29 minutes, 41 seconds And so when you say I mean the the foreign action different differences so that means uh our uh uh uh exports are 29:49 29 minutes, 49 seconds we we don't do basically any any gene and uh any de uh rupee devaluation is boosting the income. Is that understanding correct? 30:00 30 minutes See what happens is you know we do hedge but we don't hedge fully because if we fully hedge sometimes you know uh today 30:08 30 minutes, 8 seconds as you see that there are lot of dollar plus and minuses. So we also don't know whether we would be right or wrong to do 30:15 30 minutes, 15 seconds the hedge right now or not and also with the country also we don't know whether the in the country also the scenario 30:23 30 minutes, 23 seconds would be such that they might not able to remit it because of the globally what we have seen since uh January February 30:31 30 minutes, 31 seconds of this year that you know last year that you know the plus and minuses of the currency was going on so we don't do 30:39 30 minutes, 39 seconds full hedging yes we do hedge but uh we don't fully hedge the currency. Okay. 30:47 30 minutes, 47 seconds Fair. The second thing is I mean you mentioned about uh know uh increasing our presence in Canada, Latin America, 30:55 30 minutes, 55 seconds uh certain parts of Africa, Europe. So uh in uh two parts in this basically how many of our products are registered in 31:04 31 minutes, 4 seconds each of these markets like how many products registered in Europe, Canada, Latin America uh what has been the cost 31:11 31 minutes, 11 seconds and and how do we see the trend going forward? Have we put a number of like I mean how much are we going to spend in getting product and formulations 31:19 31 minutes, 19 seconds registered uh dossiers filed? I mean any details on that if you can provide 31:27 31 minutes, 27 seconds I would give you a rough idea because exactly it really depends on the timeline of the R&D as well as the B 31:35 31 minutes, 35 seconds studies to be passed and the different tests to be conducted and the validation batches to be performed and the stability to be done and after that only 31:43 31 minutes, 43 seconds we will be able to register these products but with Canada as I told you the revenues have already been started since it was a CDMO and a CMO project. 31:53 31 minutes, 53 seconds So with that I have earlier on the call uh given a number that this year we will be touching around uh three between 3 32:01 32 minutes, 1 second to4 million as of now in Canada but uh in Latin America we have products but we 32:08 32 minutes, 8 seconds have products which belongs to the uh local partner. So now we are registering either the same products or even the 32:16 32 minutes, 16 seconds newer products which would be uh not uh which would be not competing but it would be the ownership of Lincoln only. 32:25 32 minutes, 25 seconds So that's the model that we want to uh implement and altogether that would be 32:32 32 minutes, 32 seconds implying to various markets. So we are taking a gradual step. Every year we are targeting somewhere between 5 to 7 32:42 32 minutes, 42 seconds crores of uh between uh in terms of registrations B studies that is what we 32:50 32 minutes, 50 seconds are targeting and uh this would be the part of your R&D cost or another line item. 32:58 32 minutes, 58 seconds It would be aggregated into two parts. 33:01 33 minutes, 1 second One would be the R&D cost which is uh the technical part but when the doers will be submitted it has to be in the 33:08 33 minutes, 8 seconds registration uh and the regulated part which would be kind of an asset also and which can be 33:16 33 minutes, 16 seconds uh on the expense side. So you will see that on the books as expense side. Uh 33:23 33 minutes, 23 seconds understand uh uh just a suggestion I mean uh what you have explained if you can put a slide or two of that in your 33:30 33 minutes, 30 seconds investor presentation uh it will be helpful for us investors to know uh get information about it and we'll be able 33:38 33 minutes, 38 seconds to track it on a more meaningful way going forward. That's just a suggestion from my side. 33:45 33 minutes, 45 seconds on the website some it is there if you can just give me uh put it on our investor email they will send you the 33:54 33 minutes, 54 seconds link to the uh page where it is 34:05 34 minutes, 5 seconds sure I will do that uh that's all from myself wish you all the best thank you thank Thank you. 34:16 34 minutes, 16 seconds Next question is from Nanosakit Sorum from Sadi Capital Partners. Please go ahead. 34:22 34 minutes, 22 seconds Hi, thanks for the opportunity. Am I audible? Yeah, you are audible. 34:27 34 minutes, 27 seconds Yeah. So sir, uh exports has emerged as a major driver for us this quarter and even if I look at other uh Indian farmer 34:35 34 minutes, 35 seconds companies also, exports is driving a lot of growth especially non US. So sir, I just wanted to double click on that. So 34:42 34 minutes, 42 seconds uh around currently almost 400 crores of our revenue comes from exports. So how does that sir break up across Latam, 34:50 34 minutes, 50 seconds Africa, South Asia, uh say Europe and Canada? 34:56 34 minutes, 56 seconds to be frank enough you know on this particular answer if uh I could I can 35:04 35 minutes, 4 seconds just uh I have a rough estimate which would be uh like you know Africa would be somewhere between 40%. 35:14 35 minutes, 14 seconds Uh these are all the rough estimates what I'm talking I can give you the exact numbers if you can email us then I'll give you the 35:22 35 minutes, 22 seconds exact numbers then Latin and Southeast Asia combined would be somewhere between 25%. 35:31 35 minutes, 31 seconds Then uh another 15% would be the UNICEF, UN and other tender business and the 35:39 35 minutes, 39 seconds rest of the component would be Canada business and other some smaller other businesses which we do. 35:46 35 minutes, 46 seconds Fair enough sir. And sir, how much in dosage form is it like what percentage would we say injectables because mostly 35:54 35 minutes, 54 seconds these countries and tender wise injectable is a great uh offering for most of the companies. So how does that break up for us like what's what 36:02 36 minutes, 2 seconds percentage comes from injectables what from oral solid and say different dosage forms we have total as of now in Lincoln total 36:12 36 minutes, 12 seconds about 17 different line items which are I mean by that that is the segment so 36:19 36 minutes, 19 seconds tablet is one of the segment and injectable itself has got another three segments into it so uh like that that 36:28 36 minutes, 28 seconds are only four segment what I'm talking about we have total 17 different line items and in that we have sub uh lines 36:35 36 minutes, 35 seconds of uh production as well as packaging as well as uh everything. So altogether if 36:43 36 minutes, 43 seconds you look at our uh the top seller of course would be the tablets then would be the injectables and injectables would 36:51 36 minutes, 51 seconds be dry injectables and then would be the capsules and other uh mules and dry syrup and all that. 37:01 37 minutes, 1 second Okay, fair point sir. Sir do we have uh do we largely distribute via importers or we have our own distribution setup also in some of these countries? 37:12 37 minutes, 12 seconds We don't have our own distribution uh setup but yes we do have our own marketing team we have our own country 37:20 37 minutes, 20 seconds managers and that is what which we are doing. So as of now we don't have our own setup because we don't want to have 37:28 37 minutes, 28 seconds local currency problems. We do not want to tackle with the local any other kind of issues wherein we are not aware of 37:36 37 minutes, 36 seconds of. So whatever business which we are doing it is uh B2B but in fact we are tracking it down to B2C also since we 37:45 37 minutes, 45 seconds have our country manager and our team of marketing team who is uh going and spreading these products into various countries into various areas. 37:55 37 minutes, 55 seconds Okay got it sir. So why why I was asking is that many companies nowadays like you know Kaplane they're setting up their own warehouses because they feel that 38:02 38 minutes, 2 seconds you know having an inventory in that particular country helps you better market your products because you can then supply this so is that in the work 38:10 38 minutes, 10 seconds say in some of the countries where you have meaningful sales now so you want to deep dive or augment your presence 38:18 38 minutes, 18 seconds we don't want to get into that because you know uh I think so you are you rightly said that you know Keplane has a 38:25 38 minutes, 25 seconds strength over that and since they have created that strength it is good that you can they could explore that but our 38:33 38 minutes, 33 seconds strength is not in that our strength is into manufacturing and marketing of the product through the distribution channel only. So for now we are going on that 38:42 38 minutes, 42 seconds line of action only and we feel comfortable as well as the whole uh business cycle uh is visible that way. 38:51 38 minutes, 51 seconds So we don't need to worry about the outstanding payments, currency variations into different markets and 38:59 38 minutes, 59 seconds many other local issues. So that is something which we have a piece of mind as of now since we have that channel. 39:05 39 minutes, 5 seconds But we would like to go with the channel what we have as of now. 39:10 39 minutes, 10 seconds Fair point sir. So currently I think uh the domestic export share is around 30 70% exports. Now for the thousand uh cr guideline guidance that you have given. 39:21 39 minutes, 21 seconds So what's the mix? Is it 7030 or it would be more say domestic driven? 39:27 39 minutes, 27 seconds See it will be both sides. It will grow the same and probably it might be that we will come up to 6535 or 6040. We 39:35 39 minutes, 35 seconds might there is always a bit of a shift in the numbers but since it is Lincoln by itself and until it is giving the 39:44 39 minutes, 44 seconds same margins what we are expecting I think so you know for us as a BB both are the same but uh yes um this would be 39:54 39 minutes, 54 seconds plus and minus here and there but the value would be somewhere between 60 40 40:00 40 minutes range that's what we are looking Fair point you talked about know there is a lot of focus on branding or branded 40:08 40 minutes, 8 seconds genics within our portfolio but sir for a branded company don't you think this 15% IA is slightly on the lower side uh 40:16 40 minutes, 16 seconds because more in India at least many branded pharma companies easily enjoy say margins upwards of 20 25% even in 40:24 40 minutes, 24 seconds exports uh you know those who largely uh again um the model asset light model that we are right now focusing on the 40:32 40 minutes, 32 seconds margins are uh you know upwards of 20 25% in fact capine has 35 odd% but okay that's a scaled up company so that might 40:41 40 minutes, 41 seconds be slightly different so uh uh so any reason for why uh uh slightly lower than average uh margin sir 40:50 40 minutes, 50 seconds that's what I told you we have uh we are expecting 15 as the bare minimum and we might go to 18 and we might even cross 40:59 40 minutes, 59 seconds to see this all depends on the product mix and the seasonal aspect which is there. So you know we 41:06 41 minutes, 6 seconds have products we are branding the products and nothing comes at just the one shot. So you know branding is such 41:14 41 minutes, 14 seconds an activity that uh everybody is trying and you know uh we have to work a lot in 41:20 41 minutes, 20 seconds terms of people development skills of the people as well as the marketing team and everybody has to be aligned 41:29 41 minutes, 29 seconds accordingly. So we are doing all the activities possible into various regions and various areas also in the 41:36 41 minutes, 36 seconds therapeutic index wherever we are possible we can do that and uh we will try to uh grow and give a better number 41:45 41 minutes, 45 seconds but this is what I told us first also that you know to be secure enough I can say that between 15 to 18% we will 41:53 41 minutes, 53 seconds achieve got it sir sir yeah if I look at our current revenue mix is it 100% is say 42:01 42 minutes, 1 second marketed by us or we also say act as CMOS or CDMOS to other partners who again we have the manufacturing license and they are the ones who are marketing. 42:10 42 minutes, 10 seconds So in that case the uh margin might come down slightly. So what's the mix between say own brands versus say CMOS/ CDMO for our revenue. 42:21 42 minutes, 21 seconds See uh particularly in CDM CMO model we are the manufacturer and since we have such kind of key especially for domestic 42:30 42 minutes, 30 seconds we don't manufacture for anybody except for abert and uh 42:37 42 minutes, 37 seconds so you know we only one product which we are doing for them so in the plant as of now we are not manufacturing anything 42:45 42 minutes, 45 seconds for somebody who is locally doing it or third party manufacturing and domestic also we don't uh entertain any kind of 42:53 42 minutes, 53 seconds uh manufacturing or they are manufacturing at our site and marketing it to somewhere. So the margin and whatever is there is there in the business itself. 43:04 43 minutes, 4 seconds Okay sir. Okay no sir thanks uh uh for responding to my queries patiently sir appreciate and best of luck. 43:12 43 minutes, 12 seconds Thank you. 43:13 43 minutes, 13 seconds Thank you participants you may press star and one to ask question. Next followup question is from NRAA 43:21 43 minutes, 21 seconds from Financial Consulting. Please go ahead. 43:26 43 minutes, 26 seconds Yes. Uh thank you for the opportunity again sir. Uh sir with the current uh existing manufacturing base uh what is the peak revenues that uh we can do? 43:39 43 minutes, 39 seconds I think so we can uh see what we are doing is you know as of now we are we have still a gap of another 43:47 43 minutes, 47 seconds uh I would say around 15 to 20% which we can still cope up with in the existing 43:54 43 minutes, 54 seconds site keeping a bit of uh hollow just in case of um needed that is separate but 44:04 44 minutes, 4 seconds yes we can grow another 20% from the existing uh site when we use all the lines. Uh actually it depends on the uh 44:13 44 minutes, 13 seconds usage and the uh usage of the lines what we are doing and that's how the product mix is being developed. So whenever we 44:20 44 minutes, 20 seconds are doing even R&D we are looking at what lines we have and what we should develop so all our lines can be fully occupied whenever since they have been 44:29 44 minutes, 29 seconds audited by so many countries and we can go ahead and do that. 44:35 44 minutes, 35 seconds So therefore would would be our major thought on it. 44:42 44 minutes, 42 seconds So if I'm getting it correct uh from here onwards we can do around 750 to 800 44:48 44 minutes, 48 seconds crores with our existing base. Obviously keeping in mind all of the uh details that you mentioned but if we want to go 44:57 44 minutes, 57 seconds beyond that we'll be we'll either need a new plant or inorganic expansion like you mentioned during this call 45:05 45 minutes, 5 seconds is my sense correct also that and uh this you are excluding CIFFA so CIFA is another uh which is 45:13 45 minutes, 13 seconds already uh 45 we are doing it would be we targeting 150 on that also so it will 45:20 45 minutes, 20 seconds add up to another uh that plant is still you know in the phase of approvals and uh you know production. So that would be 45:29 45 minutes, 29 seconds another value which will be added to the business and also we buy many products finished products in many countries from 45:37 45 minutes, 37 seconds outside also that business is also there. So we can even uh have an expansion in that business also. So you 45:46 45 minutes, 46 seconds know altogether we have different avenues to grow the business and yes we our basic uh requirement would be a unit 45:55 45 minutes, 55 seconds or a inorganic growth. So that is there and that's what we are looking for 46:03 46 minutes, 3 seconds on this inorganic side. Is there any specific uh niche that we are looking at? maybe some uh drug type or some 46:14 46 minutes, 14 seconds therapy that we are looking at or delivery system just to get a broad sense. 46:21 46 minutes, 21 seconds Uh what my bread and butter is mostly uh the tableing and the uh injectable 46:28 46 minutes, 28 seconds parts. So firstly we would be looking at the tableting block somewhere if possible and that to if they have such kind of a credit what we are looking at. 46:38 46 minutes, 38 seconds So then only we'll go with that and then would be the injectable one. Since we are already into that business, we would like to cover that business first and 46:46 46 minutes, 46 seconds then go to something different again now uh into oncology or hormones which we are also planning to move forward. But 46:54 46 minutes, 54 seconds firstly we want to take this as a challenge and take it up from there. 47:03 47 minutes, 3 seconds Understood sir. Thank you for answering my question. Thank you. 47:12 47 minutes, 12 seconds A reminder to all the participants you may press star one to ask a question. 47:19 47 minutes, 19 seconds Next question is from line of paraji individual investor. Please go ahead. 47:30 47 minutes, 30 seconds Yes. opportunity. 47:35 47 minutes, 35 seconds I am the shareholder of the income public. I have seen the growth of the company. 47:44 47 minutes, 44 seconds Sorry to interrupt you. Your voice is coming little muffled. Can you speak for the handset please? 47:52 47 minutes, 52 seconds Yes. Hello. 48:03 48 minutes, 3 seconds Hello Baj. Hello. 48:07 48 minutes, 7 seconds Yes. Go ahead. Uh sir, thank you for the opportunity sir. Sir uh a few questions. 48:13 48 minutes, 13 seconds Uh most of the question covered by the previous participant. pursuing there is a basic fund for the buyback of the 48:21 48 minutes, 21 seconds share and uh we are not any kind of 48:30 48 minutes, 30 seconds okay previously in the past uh 3 years back there is a promoter shareholding 48:36 48 minutes, 36 seconds has been gradually increased but uh right there is no more major buying so 48:44 48 minutes, 44 seconds is there any to increase the share Rolling up the promoter sir. Likewise. 48:50 48 minutes, 50 seconds Yes. Uh as and when required and uh whenever we uh see an opportunity. Yes. 48:57 48 minutes, 57 seconds We will uh again uh go with whenever we have that additional funds. Of course we will invest first in the company only 49:06 49 minutes, 6 seconds because we will be the most beneficial one out of it. And since we are sitting here all day so you know we will uh do 49:14 49 minutes, 14 seconds that. So that promoted uh holding will be increased gradually and we will keep on doing that. 49:22 49 minutes, 22 seconds Sorry. Uh thank you sir. Thank you for your s one thing sir. Why there is a di holding is not increasing in our 49:32 49 minutes, 32 seconds companies even though FI has increased their shareholding. 49:38 49 minutes, 38 seconds The DII have a criteria of something wherein you know they have a benchmark 49:45 49 minutes, 45 seconds limit of uh the market cap and after that only they can enter a company. So you know that's the reason that they 49:53 49 minutes, 53 seconds don't directly enter the company and FIS are looking at the positive results and 50:01 50 minutes, 1 second whatever growth they are looking at so they can directly invest. So that's the reason that you see the FIS are there 50:09 50 minutes, 9 seconds but BIS are still not there regarding that Africa market I think 50:16 50 minutes, 16 seconds they are 40% uh directly depend upon Africa market in export so we are facing 50:23 50 minutes, 23 seconds any sort of cash rule is there any delay because of this sort of uh currency 50:30 50 minutes, 30 seconds fluctuation in forex fluctuation We we don't see any kind of losses till 50:39 50 minutes, 39 seconds now in such kind of even situation geobolitically. Yes, money comes in like you know 10 15 days plus and minus but 50:48 50 minutes, 48 seconds that is something which we have to uh do sometimes whenever that happens otherwise you know money flow is going on in the correct direction. 50:59 50 minutes, 59 seconds Yes. 51:01 51 minutes, 1 second Last two questions sir in other income part sometimes in some quarter we see positive 51:09 51 minutes, 9 seconds positive contribution in other quarter we are seeing negative contribution is that means uh why those sir means our 51:16 51 minutes, 16 seconds whatever the investment is is not generating that much uh uh return sir 51:24 51 minutes, 24 seconds no see what happened was in the se uh in February when we all saw that this in the market then you know that was seen 51:33 51 minutes, 33 seconds in the balance sheet also at that point of time also and the recovery is now being done in the market. So that's why you know last two quarters you are 51:41 51 minutes, 41 seconds seeing a bit of an increment and now you are seeing much more of an increment in the other income. So gradually down the line you will see a bit of a better one also. 51:52 51 minutes, 52 seconds Yes. 51:54 51 minutes, 54 seconds Thank you sir. Thank you from my side sir. Uh uh we kindly focus on the increasing the wealth of the 52:01 52 minutes, 1 second shareholders sir. I am part of this company for the last four years. So hope that our company do good things expand 52:10 52 minutes, 10 seconds the shareholder wealth and at the same time promoter wealth. Thank you sir. Thank you once again. 52:16 52 minutes, 16 seconds We agreed. work with us for so long and uh 4 years is a long time and we are 52:23 52 minutes, 23 seconds really grateful for that and we commit that you know we'll grow the company and being part of Lincoln Thinkers as a 52:31 52 minutes, 31 seconds family you are a shareholder of the company so you can come and visit the office as well as the factory whenever 52:39 52 minutes, 39 seconds you want so we invite you anytime to come to and visit the factory also 52:47 52 minutes, 47 seconds Thank Thank you sir. One thing from my side please continue this call I every 52:54 52 minutes, 54 seconds quarter we are saying that uh there is a no call from the last two quarters I 53:00 53 minutes think. So I request friendly we try and do that. Thank you. Thanks. 53:09 53 minutes, 9 seconds Thank you. Next question is from Lanobia from Sapphire Capital Partners. Please go ahead. 53:18 53 minutes, 18 seconds Hello sir, am I audible? Yes ma'am. 53:23 53 minutes, 23 seconds So this 45 crores of revenue that we are expecting by this year end. This is from which segment 53:31 53 minutes, 31 seconds that is the FIFA block that is another factory which we bought 53:37 53 minutes, 37 seconds in. So it is uh gradually commence and this year we we are touching about 45 cr. 53:47 53 minutes, 47 seconds Okay. So and any revenue and margin expectations for FI27? 53:55 53 minutes, 55 seconds FYI 27 or this current year. 54:00 54 minutes Next year sir next year we as I told you we will be somewhere between 15 to 18% that is 54:07 54 minutes, 7 seconds guaranteed might be we cross above that also so looking see there are a lot of dynamics which are going on in the 54:14 54 minutes, 14 seconds market if I commit something right now and you know uh something goes wrong or and as an industry also uh you know lot 54:24 54 minutes, 24 seconds of uh trade barriers come into it then we don't know but yes we are looking at a better uh return on whatever we are 54:34 54 minutes, 34 seconds committing at least over 18 if possible but we'll try and do uh touch the 18 and 54:41 54 minutes, 41 seconds above benchmark if possible okay sir thank you all the best 54:52 54 minutes, 52 seconds thank you as there are no further questions I'll now hand the conference over to Mr. Mjal Patel for closing comments. 55:02 55 minutes, 2 seconds Firstly, thank you everyone for joining us today for discussing company's third quarter result and business performance. 55:11 55 minutes, 11 seconds For any other question, queries or plant visit, please write to us. We would try to respond them at the earliest 55:18 55 minutes, 18 seconds possible. Thank you very much again for attending this call and have a nice day. 55:25 55 minutes, 25 seconds Thank you very much. On behalf of Lincoln Pharmaceuticals Limited, that concludes this conference. Thank you for joining us and you may now disconnect. 55:34 55 minutes, 34 seconds Thank you. Thank you.