RPG Life Sciences Limited — Q4 FY26

RPG Life Sciences Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=qyTBmNZBNAU Published: 13 days ago

0:00 Ladies and gentlemen, good day and welcome to the RPG Life Sciences Q4 FI26 results conference call hosted by Dollar Capital Markets Private Limited. 0:12 12 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:20 20 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:28 28 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over 0:35 35 seconds to Miss Candace Pereira from Dollar Capital. Thank you and over to you ma'am. 0:42 42 seconds Thank you. Good evening everyone. I Candace Pereira on behalf of Dollar Capital welcome you all to the Q4 FY26 0:50 50 seconds earnings conference call of RPG Life Sciences Limited. I would like to thank the management for giving us this opportunity to host the call. Today from 0:59 59 seconds the management we have Mr. Ashoke Nyak managing director and Mr. Amul Lon CFO. 1:05 1 minute, 5 seconds I now hand over the conference to the management for the opening remarks. Over to you sir. 1:11 1 minute, 11 seconds Yeah thank you very much. Uh good day and warm welcome to everyone and thank you for joining us today. It's a 1:18 1 minute, 18 seconds pleasure to connect with all of you and share our performance for the fourth quarter as well as for the full financial year FI26. 1:26 1 minute, 26 seconds We sincerely appreciate your continued interest and support. Now, RPG Life Sciences continues to strengthen its position as an integrated pharmaceutical 1:35 1 minute, 35 seconds company with a clear focus on quality, execution, excellence, and a long-term value creation. As you are aware, RPG 1:43 1 minute, 43 seconds Life Sciences has a rich legacy spanning over five decades. From its origins as a joint venture between JD CERN and RPG, 1:52 1 minute, 52 seconds the company has evolved into a diversified pharmaceutical business with presence across branded formulations, global generics and synthetic API space. 2:02 2 minutes, 2 seconds Over the past few years, we have undertaken a structured transformation journey, sharpening our portfolio, strengthening execution capabilities and 2:12 2 minutes, 12 seconds building a more disciplined and scalable operating model. This transformation is reflected not only in our financial 2:19 2 minutes, 19 seconds performance but also in the way we approach markets, engage with healthcare professionals and improve productivity across the organization. 2:28 2 minutes, 28 seconds Over time, we have built strong capabilities across our wide portfolio backed by robust manufacturing and R&D 2:35 2 minutes, 35 seconds which enables us to operate not only pan India but also export to across 50 plus countries. 2:42 2 minutes, 42 seconds Today we reach over 100,000 doctors including more than 36,000 specialists across a wide range of therapy areas. 2:50 2 minutes, 50 seconds Our digital engagement platform RPG serve supports this outreach by enabling more structured data and targeted 2:59 2 minutes, 59 seconds interactions with healthare professionals. Our reach expands to wide range of doctors including nephologist, 3:06 3 minutes, 6 seconds rheumatologist, oncologist, urologist, neurossychiatrist, gastronenterologist, cardiologist and of 3:14 3 minutes, 14 seconds course the GP and CP. Our portfolio of six textbook brands continues to be 3:21 3 minutes, 21 seconds widely prescribed and taught in medical colleges reflecting strong brand equity built over decades. Our manufacturing 3:30 3 minutes, 30 seconds footprint includes three state-of-the-art facilities, two for domestic and international formulation 3:37 3 minutes, 37 seconds and another one for APIs. Supported by integrated R&D along with a robust portfolio, we continuously focus on 3:45 3 minutes, 45 seconds broadening our portfolio tech and therapy expertise through new product development and strategic partnerships. 3:53 3 minutes, 53 seconds We have a professional team size of over 1,350 employees providing us with the right set of talent, intent and 4:02 4 minutes, 2 seconds capability to further accelerate our growth. 4:08 4 minutes, 8 seconds If you see our performance for quarter 4 and quarter F26, let me give you a brief performance deep time. 4:15 4 minutes, 15 seconds As far as domestic formulation continues to be the core of our business, contributing to 69% of our business, I'm 4:22 4 minutes, 22 seconds proud to share with you that quarter 4 has been a period of robust performance for us. Our revenue from operations grew by 23.6% 4:31 4 minutes, 31 seconds along with 48% increase in EITA and 58.1 increase in PAT excluding exceptional items. While 4:40 4 minutes, 40 seconds the Indian farmer market grew by 10.1 in quarter 4, our domestic formulations has outpaced the market with a growth of 18.2%. 4:50 4 minutes, 50 seconds Which means that we have grown 1.8 times the market. The quarter performance has made us the fourth fastest growing pharma company in quarter 4 among the 4:58 4 minutes, 58 seconds top 50 farmer companies as per farmer March 2026 database. We were also able 5:04 5 minutes, 4 seconds to advance our IPM ranking by six places from rank 58 in FI25 to rank 52 in FI26. 5:13 5 minutes, 13 seconds Importantly, this growth is driven by well plan and focus efforts of our team towards volume expansion, improved 5:20 5 minutes, 20 seconds specialtity coverage, stronger execution quality, strategic brand building and sharp medical marketing initiatives. 5:28 5 minutes, 28 seconds This trend has been consistent across all c four quarters of the year where we are consistently growing ahead of the market for the full year FI26 while the 5:38 5 minutes, 38 seconds Indian pharmaceutical market grew by 8.6%. 5:41 5 minutes, 41 seconds We delivered a strong 13.7% growth meaning that we grew 1.6 times the market backed by a robust volume growth. 5:50 5 minutes, 50 seconds We have successfully launched key products to strengthen our for patient care and such focus launches have helped us achieve meaningful sales number for 5:59 5 minutes, 59 seconds products within 9 months of launch. We look into our brand strength and portfolio tab. Our leading brand in the pain management category naposin 6:08 6 minutes, 8 seconds continues to deliver performance with 24% growth in quarter 4 and 15.6% growth in FI26. 6:16 6 minutes, 16 seconds This is among the highest growth performance in the past few years for Naproin and validates the success of our medical marketing interventions. We 6:25 6 minutes, 25 seconds remain on track to build this into an 100 crore brand especially with the launch of new SKUs to advance naprosense brand architecture. 6:33 6 minutes, 33 seconds Our imunosuppressent portfolio anchored by large brands such as Azoron and Mafet continues to show steady traction. We 6:42 6 minutes, 42 seconds are strengthening this segment through therapy expansions, life cycle management and deeper engagement with specialtity doctors to make it a 100 cr basket first and accelerated further. 6:54 6 minutes, 54 seconds In biolyics, our monoconal antibiotic portfolio called maps recorded a healthy 12.0% growth in quarter 4. We are now 7:03 7 minutes, 3 seconds present in most big and progressive map space and are continuously focused on increasing our market share. We have also revitalized our legacy brands like 7:12 7 minutes, 12 seconds Norpace and Serin. Norpace in particularly grew 50% in FI26 and we are scaling up awareness through CMEs 7:21 7 minutes, 21 seconds journal publications and targeted campaigns across our top therapy baskets especially pain cardiovascular nephro 7:30 7 minutes, 30 seconds oncology and rumor. We continue to see steady doubledigit growth supported by better execution. Nephloy grew by 55% in FI26 supported by new launches. 7:42 7 minutes, 42 seconds Rheumatology portfolio grew by 40% and oncology grew by 23% and pain management grew by 19% in FI26. 7:51 7 minutes, 51 seconds Our focus remains on building depth within therapist to sustain our growth trajectory. 7:57 7 minutes, 57 seconds A key driver of our performance has been improvement in execution metrics. 8:02 8 minutes, 2 seconds Operationally we have made significant strides in Salesforce productivity which now stands at 6.5 lakhs per per month up 8:10 8 minutes, 10 seconds from 5.7 lakhs last year. Whereas the specialtity segments our productivity has improved from 13.2 lakhs to 16.7 8:18 8 minutes, 18 seconds lakhs reflecting strong execution and high value therapies. We also improved our sales hygiene reduced expireies and 8:26 8 minutes, 26 seconds returns. We have improved our doctor call leverage, improved the success concentration for feed force and enhanced doctor engagement through rapid 8:35 8 minutes, 35 seconds digital first and AI first platform. We have strengthened our operating discipline through a set of focused initiatives designed to improve field 8:43 8 minutes, 43 seconds effectiveness by integrating digital tools and automation into our workflows. 8:49 8 minutes, 49 seconds We are enabling our medical representatives to make better use of the time and we're already seeing enhanced productivity in the field. 8:57 8 minutes, 57 seconds New launches have contributed meaningfully during the year. Products such as preserve and RP set have shown encouraging traction based on our 9:07 9 minutes, 7 seconds differentiated positioning. Going forward, we continue to focus on relevant therapy gaps and invest in building a stronger pipeline particularly in speciality segments. 9:18 9 minutes, 18 seconds As far as a digital and capability building, our proprietary doctor engagement platform RPG serve continues 9:25 9 minutes, 25 seconds to play a central role in strengthening our digital engagement with doctors. 9:33 9 minutes, 33 seconds We are currently enhancing the platform further with more intelligent and personalized capabilities including AI content delivery and sharper 9:41 9 minutes, 41 seconds segmentation. This helps us move from a one-sizefits-all approach to more contextual engagement with our doctors. 9:49 9 minutes, 49 seconds Going forward, RPGs serve will continue to play big roles in deepening and customizing our reach and engagement. 9:57 9 minutes, 57 seconds Moving to international foundation which contributes 17% of our revenues, we are executing executing a long-term build strategy focused on regulatory 10:06 10 minutes, 6 seconds readiness, R&D output and audit preparedness during the year. 10:11 10 minutes, 11 seconds Performance in this segment was impacted due to inventory rationalization by certain customers and some regulatory delays in host countries. We are 10:20 10 minutes, 20 seconds expanding our customer relationship in Canada, Africa and continue to focus on measures to enhance customer engagement. 10:28 10 minutes, 28 seconds Our R&D site is strength and lab capabilities has increased and we are actively tracking market gaps to drive 10:35 10 minutes, 35 seconds revenue. We have taken steps to strengthen this business through expansion of customer relationship, onboarding of CDMO opportunities and increasing our presence in new markets. 10:47 10 minutes, 47 seconds Amidst global uncertaintities and pharma tariff threats, we are focusing on consolidating our business into our core export regulator and emerging markets. 10:57 10 minutes, 57 seconds With a clear focus on three pillars, new customers, new markets and new products. 11:03 11 minutes, 3 seconds We are actively expanding into emerging markets such as Myanmar, Vietnam, Philippines, Thailand, Sri Lanka, Egypt, 11:13 11 minutes, 13 seconds Sudan, and South Africa with multiple product registrations underway. As far as the API business, this API segment 11:22 11 minutes, 22 seconds which contributed around 14% of the revenues, we experienced disruption earlier in the year due to the fire incident. During our last call, I had 11:31 11 minutes, 31 seconds shared how the restoration process was completed on time and in September 25 and validation process started 11:38 11 minutes, 38 seconds thereafter. I'm happy to share that despite this disruption, the API business has demonstrated strong 11:45 11 minutes, 45 seconds recovery with quarter 4 revenues at 33.3 crores reflecting a meaningful bounce back. Despite our plan remaining 11:53 11 minutes, 53 seconds affected due to the fire impact for the larger part of the year, we are happy to share that we have grown a 5% year on year. Thanks to the team's resilience 12:02 12 minutes, 2 seconds and strong fundamentals of our IPI business, our plant is now fully operational and we are further strengthening our product pipeline 12:10 12 minutes, 10 seconds organically which has improved significantly over the last couple of years. 12:15 12 minutes, 15 seconds are continuously monitoring the West Asia war developments. While we don't foresee any severe impact due to the war, we have built an internal task 12:23 12 minutes, 23 seconds force to effectively navigate through current conditions. 12:28 12 minutes, 28 seconds If you look over our overall financial performance at the overall company level, we have delivered a steady and robust financial performance. Our 12:36 12 minutes, 36 seconds revenue from operations for quarter 4 stood at 176.9 cr versus 143.1 cr in 12:43 12 minutes, 43 seconds quarter 4 last year. This means an healthy 23.6% growth in revenue. Our grew by 48.0% 12:52 12 minutes, 52 seconds from 30.6 crores in quarter 4 last year to 45.2 crores this quarter helping improve our margin from 21.4% in quarter 13:01 13 minutes, 1 second 4 FI25 to 25.6% this quarter. Our PBT before exceptional 13:07 13 minutes, 7 seconds item is also up y from 17.5% to 22.1% this quarter. Coming to annual 13:15 13 minutes, 15 seconds performance, FYI26 stood at 707.5 crores reflecting an healthy 8.3% growth over 13:22 13 minutes, 22 seconds last year despite API business being disrupted due to fire related restoration for larger part of India. On 13:30 13 minutes, 30 seconds the profitability front, AIA for the year FI26 stood at 172.7 crores versus 13:38 13 minutes, 38 seconds 172 crores in FI25 with a healthy AITA margin of 24.4 and PBT of 21.2% and PAT of 15.8% for FI26. 13:50 13 minutes, 50 seconds We continue to maintain a strong balance sheet with a cash surplus of approximately 275 crores despite 13:57 13 minutes, 57 seconds investing over 140 crores capex over last four five years. These investments has enabled us to modernize and expand 14:04 14 minutes, 4 seconds our facilities bringing cost efficiencies and position of business to drive future growth. The long-term IKRA 14:12 14 minutes, 12 seconds rating has been reffmed at A+ with the outlook remaining stable while the short-term rating has been reffmed at 14:19 14 minutes, 19 seconds E1. Our strong financial foundation and prudent capital deployment empower us to pursue both organic and inorganic growth 14:28 14 minutes, 28 seconds opportunities strengthening our presence in domestic and international market. 14:33 14 minutes, 33 seconds If you look the recognition during this year, we were recognized as the leading mid corporate of India 2025 at D and Brad Street. This award is in line with 14:42 14 minutes, 42 seconds the best corporate, best brand, best patent and the best corporate citizen and best value in action awards that we 14:49 14 minutes, 49 seconds have received in recent years. As part of our diversified 5.2 billion RPG group, we operate with a strong emphasis 14:57 14 minutes, 57 seconds on corporate governance, ethical conduct and people first philosophy. 15:03 15 minutes, 3 seconds We view investment in our people and organizational capability as equally important as our business strategy in 15:10 15 minutes, 10 seconds driving long-term success. The RPG group is also unique in recognizing happiness as a core organizational value, 15:18 15 minutes, 18 seconds reinforcing our commitment to a positive and purpose-driven organization. We continue to invest in strengthening our organizational capabilities and 15:27 15 minutes, 27 seconds leadership pipeline through focus succession planning and capability building initiatives. This ensures we have the depth and talent required to 15:36 15 minutes, 36 seconds sustain our growth momentum in the years ahead. 15:40 15 minutes, 40 seconds In parallel, we are advancing our ESG agenda with a clear emphasis on responsible business practices, regulatory compliance and sustainability. 15:50 15 minutes, 50 seconds These priorities are embedded into our day-to-day operations and are central to how we create long-term value for our stakeholders. Thank you very much for 15:59 15 minutes, 59 seconds your continued support and my pleasure that we'll now open the floor for questions. Thank you. 16:08 16 minutes, 8 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 16:16 16 minutes, 16 seconds star N1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 16:24 16 minutes, 24 seconds two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 16:58 16 minutes, 58 seconds The first question is from the line of Rajas Johi from Chris Capital. Please go ahead. 17:04 17 minutes, 4 seconds Yeah. Uh thank you for the opportunity and congratulations on your good numbers. Uh my first question would be on the breakup of uh our growth. So if 17:13 17 minutes, 13 seconds you can just help us with uh the break up of our growth number into volume price and new introductions please. 17:20 17 minutes, 20 seconds Yeah. So I'll speak first about quarter 426 our volume growth has been 9%. 17:28 17 minutes, 28 seconds As compared to the market of 1.1%. Our price growth has been 3.3 as compared to 5.5 of the market and our new 17:37 17 minutes, 37 seconds introductions has been 5.1 as compared to the market of 3.5%. 17:42 17 minutes, 42 seconds So overall we are at 18.2 as compared to 10.1 as far as the quarter is concerned. 17:47 17 minutes, 47 seconds Just to give you for the full year our volume has grown by 7.0 as compared to 0.7 of IPM price is 2.6 as compared to 17:57 17 minutes, 57 seconds 5.4 4 and our new introductions is 4.1 as compared to 2.5 of market. So overall 13.7% 18:05 18 minutes, 5 seconds compared to 8.6% almost 1.6 times in the market. 18:11 18 minutes, 11 seconds Thank you. Uh my next question will be on uh margins right so now that our API plant is back online and fully 18:19 18 minutes, 19 seconds operational uh how you going to look at gross margins for the next year and uh medium term because I think earier with 18:26 18 minutes, 26 seconds the effect plant nonoperational and gross margins have been depressed a bit just wanted to get some uh clarity on that 18:35 18 minutes, 35 seconds so if you look the past 3 four years you would notice that our API margins have been consistent of % and that first 9 18:45 18 minutes, 45 seconds months of course you were aware what would have happened. So looking into the past we will sustaining we'll be sustaining the same thing and you don't 18:54 18 minutes, 54 seconds challenges from that front the margin stabilization already started happening with the API coming back so 19:01 19 minutes, 1 second got it sir got it and uh lastly a small bookkeeping query other expenses for this quarter have been on an elevated 19:09 19 minutes, 9 seconds level uh so just uh just want to know if there any oneoffs uh in in other expenses for this quarter 19:17 19 minutes, 17 seconds can come again. Sorry, I didn't get uh for this quarter Q4 uh other expenses have been at an elevated level compared 19:26 19 minutes, 26 seconds to our our level earlier in the preceding few quarters. So they just wanted to know was there any one-off 19:33 19 minutes, 33 seconds with regards to other expenses for this quarter? 19:36 19 minutes, 36 seconds So uh hi this is Amul here CFO. So I'll address this question. Basically there's no oneoff per se. This being a quarter 4 19:46 19 minutes, 46 seconds uh is a pharma trend that we have expireies uh are coming in this quarter and which is normal in if you compare 19:53 19 minutes, 53 seconds same quarter last year but no enough to answer your question. 19:58 19 minutes, 58 seconds Understood. All thank you sir. Wishing you all the very best. 20:06 20 minutes, 6 seconds Thank you. The next question is from the line of Anesh Burman from Varya fund. Please go ahead. 20:14 20 minutes, 14 seconds Hi uh good evening. Thanks for taking my question. I have two questions. One on the uh raw material price cost increases 20:22 20 minutes, 22 seconds that you would be seeing and it could be raw material, could be utility cost increases. Uh I just wanted to know how 20:30 20 minutes, 30 seconds um you are planning to pass it on or absorb in your two broad buckets of businesses. One is the domestic side and 20:37 20 minutes, 37 seconds one is the international side. And if this has happened in the past, is there a precedent of you know passing these 20:45 20 minutes, 45 seconds cost inflation in its entirety or uh the case is more of like absorbing like some some pain is absorbed by your suppliers 20:53 20 minutes, 53 seconds and some by you and then some by the customers. How does it pan out? 20:58 20 minutes, 58 seconds So the first is uh we also are closely monitoring uh evolving geopolitical situation as of now and currently there 21:06 21 minutes, 6 seconds is no material impact on our business and we've been covered now at least for the next 3 months. So we do not see any 21:14 21 minutes, 14 seconds foresee any significant disruption at this stage. Having said that, we have also passed our uh price increases to 21:22 21 minutes, 22 seconds some of our customers and few of them uh have actually uh accepted our increased price. So we'll be able to do that. Uh 21:30 21 minutes, 30 seconds we also have now factored the situation what is that we should do if this situation currently is as it is and what 21:39 21 minutes, 39 seconds we should do if it becomes more volatile and what the third is if it get escalates. So we have a very clear road 21:46 21 minutes, 46 seconds map on this on what exactly we need to do. Uh if you look our intent is very 21:52 21 minutes, 52 seconds simple. Uh we quantify the exposure with uh clear triggers confirm where we stand today and we summarize the mitigation 22:01 22 minutes, 1 second actions already under the way. So netnet we are not watching this passively. We have a measurable triggers and a 22:08 22 minutes, 8 seconds quantified cost range and a mitigation engine is already moving on this. So for now we don't see foresee any challenges here. 22:18 22 minutes, 18 seconds Okay. Uh the second question is also kind of related. Uh I'm assuming that a part of the manufacturing that you do 22:25 22 minutes, 25 seconds for your domestic business is outsourced to your CMO partners. In that case if your CMO partners see let's say a 22:34 22 minutes, 34 seconds reasonable increase in their API prices or packaging material prices or solvent prices. It could be any part of their bill of materials. Then u because they 22:43 22 minutes, 43 seconds typically work on thinner margins than a a marketing company. Do they pass it on uh entirely to you or there is the pain shared? 22:54 22 minutes, 54 seconds So uh you can call it serendipity. When February the war broke out uh in March first week in fact we met most of the 23:03 23 minutes, 3 seconds important clients where our major APIs and major products were sourced from them and we were able to log prices for 23:11 23 minutes, 11 seconds 6 months. So that's something has actually protected us. Yeah there is always a constant uh ask from the 23:20 23 minutes, 20 seconds clients also that whether we can increase the price. currently uh we've been able to protect it. Uh I think for the next six months we should not have 23:29 23 minutes, 29 seconds any challenge uh plus almost for us 25 to 30% is outsourced but we already have 23:36 23 minutes, 36 seconds the inventory coverage with us. So and that so that's something which the second thing is we also see that there can be an upside due to the exchange 23:45 23 minutes, 45 seconds rate in our export business which contributes to business. So overall I think uh we are in a good place now. 23:53 23 minutes, 53 seconds U okay just to just to make sure I understood it correctly. You are saying that whatever API prices increased your CMO partners would have seen because 24:02 24 minutes, 2 seconds your prices are locked for 6 months. Uh so it's basically it comes on to their P&L and not your PNL at least for the next 6 months. Is is that the understanding? 24:11 24 minutes, 11 seconds That's exactly the understanding. 24:14 24 minutes, 14 seconds Thank you so much. I'll get back in the queue. 24:18 24 minutes, 18 seconds Thank you. Next question is from the line of Vanjit WHMA from Sami Sha Capital. Please go ahead. 24:27 24 minutes, 27 seconds Yes. First of all, congratulations on a great set of number. I have a few questions. First one, if you look at the 24:35 24 minutes, 35 seconds cash flow, the same has declined mainly because of the working capital days have increased. So do we see that working 24:41 24 minutes, 41 seconds capital uh level going forward and uh do we expect inventory levels to remain at a higher level going forward as well as it is higher. 24:53 24 minutes, 53 seconds So our cash flow are are uh at a steady states it's uh not declined. So if you see the reserves the bank balance on the 25:01 25 minutes, 1 second investment we're at 275 cr versus 266 cr last year. Uh so having said that uh the 25:09 25 minutes, 9 seconds so working capital cycle is increased uh with an increase in the business uh we don't see any risks or any obsess 25:18 25 minutes, 18 seconds impact on the working capital on your business. Just to add to amole uh the working capital is also due to the 25:25 25 minutes, 25 seconds strategic procurement and increased share of our business which operates at an higher credit cycle. 25:34 25 minutes, 34 seconds Okay. So my next question is uh other current assets have increased by more than 20 crores if you compare to last year. So what's the reason for the same? 25:46 25 minutes, 46 seconds So uh one of the impact in this is uh uh the inverted duty supply uh the GST structure where we have uh 5% at uh for 25:56 25 minutes, 56 seconds our outward products and 12 18% for our inward. So that is uh the major increase. Other than that this is purely related to business. 26:07 26 minutes, 7 seconds Okay. Okay. Thank you. Thank you. Thank you. 26:14 26 minutes, 14 seconds Thank you. The next question is from the line of Yeshi from Unifi Capital Private. Please go ahead. 26:22 26 minutes, 22 seconds Yeah. Hi sir. Uh uh congratulations for a good set of numbers. I had a few clarifications. Oh, one thing on the 26:30 26 minutes, 30 seconds other expense part actually I didn't get it. So, what was the reason for the increase in other expense? 26:37 26 minutes, 37 seconds So uh see as I explained uh from the pharma uh so basically in the pharma industry all the expireies the supply 26:46 26 minutes, 46 seconds chain is through uh the CFS and the stock east and uh and the expireies are uh accounted or you know returned all 26:55 26 minutes, 55 seconds the stockies accumulated and sent in quarter 4 uh of the financial year. So if you see the similar is there in uh 27:03 27 minutes, 3 seconds the previous year same quarter as well and it's a general trend of that. So we have the expireies which were come uh in 27:10 27 minutes, 10 seconds this quarter. That is why if you see uh that is why the trend as compared to the previous quarter is higher in this quarter. There is nothing else. Uh in 27:18 27 minutes, 18 seconds addition to this uh uh the percentage of uh I mean the revenue has been gone up and then the sales and uh admin expenses 27:26 27 minutes, 26 seconds which is in line with the revenue will be uh up nothing nothing more than that. 27:32 27 minutes, 32 seconds So going forward in next quarter onwards the other expense will once again normalize right. Yes. Yes. Absolutely. Absolutely. 27:39 27 minutes, 39 seconds If you also see as a percentage of revenue of operations, it has actually degraded same. So uh 27:48 27 minutes, 48 seconds Okay. Understood. And uh another part was uh basically uh in the international formulation segment uh a few of our 27:56 27 minutes, 56 seconds customers had a rationalization of inventory. So just wanted to check uh whether uh it's a kind of uh temporary 28:05 28 minutes, 5 seconds blip or it's more of a uh what do you say uh medium-term like they'll be ordering less in the specific I wanted 28:14 28 minutes, 14 seconds to understand uh going forward how will the order flow from the clients be in the international segment. 28:22 28 minutes, 22 seconds So basically what happens it's just a temporary play because an inventory correction happens only once time. So they were carrying out an inventory of 28:31 28 minutes, 31 seconds 90 to 95 days which has come down to 30 to 35 days. So that has now become the standard base. So for this year and that 28:38 28 minutes, 38 seconds will what will continue and then we will not have any challenges and suddenly there's going to be. So we are very clear it will be more of a sustainable and we now clear that what is the 28:47 28 minutes, 47 seconds inventory days they're going to maintain. 28:51 28 minutes, 51 seconds Okay. And uh and uh another thing I wanted to ask was uh is there any new launches which we are targeting in RO and emerging markets? 29:01 29 minutes, 1 second Before RO and emerging market we have a good pipeline in domestic. We have increased our not not only increased we 29:10 29 minutes, 10 seconds have created another business for cardiology and urology. So we have a very strong pipeline of new cardiac 29:17 29 minutes, 17 seconds products and uh urology products coming into this. Second also in our pain management we are coming out with newer 29:24 29 minutes, 24 seconds naprosin line extensions. Now as far as RO and internationally you said we the has now five CDMO projects uh which we 29:34 29 minutes, 34 seconds are developing and almost three should be happening in this year and two in the FY28 29:41 29 minutes, 41 seconds and our if R&D pipeline has already 10 molecules and our API has 13. So we are overall investing in seeing how we can 29:49 29 minutes, 49 seconds increase our share of new products both in emerging markets, regulated market and in the API business. So that's the idea. 29:58 29 minutes, 58 seconds Yeah. Just uh two questions more. Uh one is in napto collect. Last time we had the discussion regarding in Canada we 30:06 30 minutes, 6 seconds had applied for OTC in partnership with Walmart. So any update on that sir? 30:13 30 minutes, 13 seconds Yeah. So as said we already have got an approval uh from the Canadian regulatory authorities and also from the Walmart 30:22 30 minutes, 22 seconds but the client has to undergo a social compliance. So that is where we are at. 30:28 30 minutes, 28 seconds So once that happens uh by September October is what we should be actually be able to commercialize our macro. 30:38 30 minutes, 38 seconds Okay. uh by September uh and just a broad understanding uh on uh the like 30:47 30 minutes, 47 seconds international formulation segment what I get to know is next year onwards we'll be once again back to the growth phase 30:57 30 minutes, 57 seconds you're talking of if yeah we considering uh as I said the inventoryization is a temporary play and we have also if you 31:06 31 minutes, 6 seconds recolct that I said we have expanded into newer markets especially in Africa and others. So we should be back to the growths where we were for the last four five years. 31:17 31 minutes, 17 seconds Okay. And uh considering like uh we had an API uh fire uh last year. So are we 31:25 31 minutes, 25 seconds considering of having another API unit in the form of an M&A that we can basically diversify our risk. So next 31:33 31 minutes, 33 seconds time we shouldn't be in a situation where uh the same uh problem we face are 31:40 31 minutes, 40 seconds we any contemplating about it. So if you look as a strategy we are always in the lookout and inorganic for both 31:47 31 minutes, 47 seconds formulations and uh the API business. So for us it has to be of prudent value or 31:55 31 minutes, 55 seconds it has to be value equity. So we are looking into multiple assets and as the due course of time and things are perfectly for us I think we should be able to come back to you. 32:06 32 minutes, 6 seconds Okay. And uh just last one uh regard the growth uh for uh domestic uh 32:14 32 minutes, 14 seconds international and your API uh can you provide a guidance like uh maybe in the medium-term how we are looking at and I 32:23 32 minutes, 23 seconds think specific one of your interview API will be the next flow driver for the company. So can you just uh give a brief on that? 32:35 32 minutes, 35 seconds So if you see again I need to mention that if you see consist for the last four years consistently our domestic has grown at 12%. API has grown at 9 to 10% 32:44 32 minutes, 44 seconds and international formation 9 to 5%. If you look our quarter 4 we almost grown by 144% in API that's also a strong 32:52 32 minutes, 52 seconds bounce back. So going forward uh we will continue to maintain that we'll continue to sustain that particular growth and of course as we API is our growth driver. 33:03 33 minutes, 3 seconds So a lot of efforts are going into API to see that we grow further better and we have a very strong pipeline the 33:11 33 minutes, 11 seconds API as mentioned almost around 13 products are there and newer markets are there. So in fact our growth is structured and fundamental and the basis 33:19 33 minutes, 19 seconds is that we should be able to further expand and the growth trajectory looks good. 33:26 33 minutes, 26 seconds Yeah. Okay sir. Thank you. I'll sign in the clear. Thank you. Thank you. 33:34 33 minutes, 34 seconds Thank you. A reminder to all the participants. Anyone who wishes to ask a question may press star N1. 33:48 33 minutes, 48 seconds The next question is from the line of Adept Goyel from Maton Investment. Please go ahead. 33:56 33 minutes, 56 seconds Hello. Um good afternoon and congratulations on a great set of numbers. Uh I have a couple of questions. Number one is a follow-up 34:04 34 minutes, 4 seconds from the previous one. Uh so when uh so for the guidance of growth uh where do you expect the growth to come from for 34:13 34 minutes, 13 seconds the next couple of years? Uh will it be more of volume price or new introductions? Uh if you could give an idea similar to what you had given a break up earlier for this year. 34:23 34 minutes, 23 seconds Yeah. So if you look again uh we have a very strong volume pack growth uh considering almost 30% of our products 34:33 34 minutes, 33 seconds are DPCO. So for us going behind the price increase uh the strategy is to grow the volumes and you will see that 34:41 34 minutes, 41 seconds we are growing at 9.8% volume versus 1.1 of the industry. And the second biggest growth driver for us 34:48 34 minutes, 48 seconds will be new products. Again if you look this year we have been all around by 5.1% as around 2%. So for us the key 34:55 34 minutes, 55 seconds will be this two the volume back and the new product. Having said that the products which are in the pipeline in 35:02 35 minutes, 2 seconds the domestic are the ones which will be actually launching with a higher gross margins. So we will be able to protect 35:10 35 minutes, 10 seconds and there should be a far better price increase growth than the earlier years. 35:17 35 minutes, 17 seconds Okay understood. Uh my second question is uh related to uh US FDA approval. So 35:24 35 minutes, 24 seconds couple of quarters back uh in the conol you had mentioned that uh the company would like to go for an approval subject to development of the product portfolio. 35:33 35 minutes, 33 seconds So with all the developments that are happening right now and how the portfolio and the execution capabilities set up with the plan modernization 35:41 35 minutes, 41 seconds uh do you think uh you are closer to planning a USDA going for an approval like that? So as I mentioned earlier 35:50 35 minutes, 50 seconds also see while our plans are of a level that would be USFD approval we would actually seek approval only when there 35:58 35 minutes, 58 seconds significant basket of product with strong market share will in the US of course the rational is that the approval process is lengthy and the market 36:06 36 minutes, 6 seconds dynamics often shift by the time approval is secured. So the company is also mindful of the cost benefit equation and does not want to burden the 36:16 36 minutes, 16 seconds profit and loss statement with high US FDI related cost. Having said that we have a strong presence minus US in every 36:23 36 minutes, 23 seconds other geographies and markets. So that should actually be far greater and helpful for us going forward. 36:32 36 minutes, 32 seconds Understood. Okay. Thank you so much. Thank you. Thank you. 36:38 36 minutes, 38 seconds Thank you participants. You may please press star and one to ask a question. 36:45 36 minutes, 45 seconds Ladies and gentlemen, we will take that as the last question for today. I now hand the conference over to the management for closing comment. 36:54 36 minutes, 54 seconds So, thank you very much everybody. 36:56 36 minutes, 56 seconds Thanks for attending and participating and thank you again. 37:04 37 minutes, 4 seconds Thank you very much on behalf of Dollar Capital Markets Private Limited. That concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.