Sakar Healthcare Limited — Q4 FY26

Sakar Healthcare Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=l3WjblpRO3g Published: 1d ago

0:01 1 second Ladies and gentlemen, good day and welcome to Sakar Healthcare Limited Q4 FI26 earnings conference call. 0:09 9 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing start then zero on your touchstone phone. 0:24 24 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. 0:29 29 seconds Say from MFG in time. Thank you and over to you sir. 0:34 34 seconds Thank you. Welcome to Sakar Healthcare Q4 FI26 earnings call. Today on the call 0:42 42 seconds we have Mr. Bikramjit Gosh Vice President Strategy and Business Development Mr. Dh Takar CFO Mr. Bat 0:50 50 seconds Sony Company secretary and Miss Pushpa Pummani Manager. Before we proceed with the call, I would like to give a small 0:58 58 seconds disclaimer that a call may contain certain forward-looking statements which are based on the business opinions and expectations of the company as on date. 1:08 1 minute, 8 seconds A detailed disclaimer has been given in the company's investor presentation which is uploaded on the stock exchange. 1:14 1 minute, 14 seconds Now I would like to hand over the call to Miss Pushba. Over to you ma'am. 1:20 1 minute, 20 seconds Good morning. I welcome all our shareholders, investors and analysts to the earnings call of Sakar Healthcare 1:28 1 minute, 28 seconds Limited for the quarter and financial year ended 31st March 2026. 1:34 1 minute, 34 seconds Over the last few years, Sakar Healthcare has consciously invested in building a dedicated oncology platform. 1:43 1 minute, 43 seconds This platform brings together oncology API, finished formulation, R&D capability and globally compliant manufacturing infrastructure. 1:55 1 minute, 55 seconds These investments were made with a clear objective to transform Sakar from a diversified pharmaceutical manufacturer 2:04 2 minutes, 4 seconds into a focused specialtity on quality company with exports as the primary growth driver. 2:12 2 minutes, 12 seconds The benefits of these investments are now beginning to materialize. 2:18 2 minutes, 18 seconds Progress on regulatory approvals, technology transfers, and customer validations along with a steady rise in 2:26 2 minutes, 26 seconds export orders had started translating into tangible commercial momentum. 2:33 2 minutes, 33 seconds Quarter 4 marked a significant milestone in this journey with oncology exports 2:40 2 minutes, 40 seconds gaining traction and profitability improving bringing the company closer to its long-term vision of becoming a plot play expert-led oncology player. 2:54 2 minutes, 54 seconds The EU GMP approved oncology facility at Ba Gujarat is API integrated and 3:01 3 minutes, 1 second designed to serve regulated global markets. It can manufacture complex oncology products across oral liquids, 3:11 3 minutes, 11 seconds oral solids, ingestible, oral liquids and API supported by advanced containment systems, formulination 3:19 3 minutes, 19 seconds development, analytical capability and flow chemistry infrastructure. 3:26 3 minutes, 26 seconds During the year we achieved an important milestone with the approval to manufacture immunity for accord healthcare UK for supplies into Europe. 3:37 3 minutes, 37 seconds This validation is a strong endorsement of our quality systems compliance standards and manufacturing 3:45 3 minutes, 45 seconds capabilities. It also establishes SAK as a credible partner for global oncology 3:52 3 minutes, 52 seconds companies looking for reliable manufacturing and supply from India. 3:59 3 minutes, 59 seconds Our oncology business is now entering the scale up phase. We have already signed more than 60 oncology business 4:08 4 minutes, 8 seconds contracts with over 35 discussions currently ongoing. Out of 250 dosier 4:15 4 minutes, 15 seconds shared globally, 125 had been filed and 12 have received marketing authorizations. 4:24 4 minutes, 24 seconds Across our developed oncology portfolio, 11 approvals has been received for key 4:30 4 minutes, 30 seconds molecules including imagat, abeteron, capacitabin, gensyen, caroplatin, irinotic and doxil. 4:43 4 minutes, 43 seconds In addition technology transfer projects are underway with partners such as accord 4:50 4 minutes, 50 seconds torrent mcure glenmark and zidus with site radiation approvals already 4:57 4 minutes, 57 seconds received in the UK and EU. The accord intact portfolio alone comprising 10 on 5:04 5 minutes, 4 seconds quality products to be manufactured by SAK represents a potential opportunity 5:10 5 minutes, 10 seconds of rupees 50 cr to 100 cr depending on the commercialization strategy across Europe. 5:19 5 minutes, 19 seconds Commercial exports to regulated markets are expected to commence in phases with euro likely to be the initial focused 5:27 5 minutes, 27 seconds market. At the same time, oncology exports are already underway to markets 5:34 5 minutes, 34 seconds such as the UK, Mauritius, Lebanon, Algeria, and several African countries. 5:42 5 minutes, 42 seconds Going forward, oncology is expected to become the core growth engine of Sakai Healthcare. In financial 2026, the 5:52 5 minutes, 52 seconds oncology division contributed around 38% of total revenues while the current mix 5:58 5 minutes, 58 seconds is balanced between domestic and export markets. We expect exports to become the dominant contributor over the medium 6:07 6 minutes, 7 seconds term as more approvals convert into commercial supplies. 6:13 6 minutes, 13 seconds Our focus will remain on three key priorities. 6:17 6 minutes, 17 seconds increasing doyear approvals, deepening international partnerships and scaling product launches across regulated and emerging markets. 6:28 6 minutes, 28 seconds Over the next two years, we aim to cross 300 doyear approvals, achieve more than 6:34 6 minutes, 34 seconds 100 overseas business contracts, and build a strong base of marketing authorizations. 6:43 6 minutes, 43 seconds The scalability of this platform is one of our biggest strength. The Bala oncology facility designed for large 6:52 6 minutes, 52 seconds scale operations is expected to scale up over the next four to five years and can potentially generate revenues of rupes 7:01 7 minutes, 1 second 800 cr to,000 cr at optimal utilization without requiring significant increment 7:09 7 minutes, 9 seconds incremental capex. Since current utilization remains low, there is substantial room for operating leverage 7:17 7 minutes, 17 seconds as export volume scale up. Given the higher margin nature of oncology products, we expect EVITA margins in 7:26 7 minutes, 26 seconds this division to remain in the range of 25% to 30 over the medium term. 7:34 7 minutes, 34 seconds While oncology will remain our primary strategic focus, our CDMMO and non-oncology business continue to 7:42 7 minutes, 42 seconds provide stability, cash flow, and strong customer relationships. We continue to manufacture leading pharmaceutical 7:51 7 minutes, 51 seconds companies such as Zidus, Mure, Glenmau, Sipla, Ipka and Abot across multiple 8:00 8 minutes dosage forms including oral liquids, tablets, injectables, dry powder 8:06 8 minutes, 6 seconds formulations and inhalers. Our Changoda facility continues to support the non-alcology business while our broader 8:15 8 minutes, 15 seconds portfolio includes liquid and lipoly injectables, oral solids and liquid 8:22 8 minutes, 22 seconds exports of sakarin, hparine based formulations, sephalospherins and other products. Our branded formulations 8:30 8 minutes, 30 seconds business is also expanding across APAC, Latin America, CIS, Africa, and select European markets. 8:41 8 minutes, 41 seconds We were also pleased to be recognized by the Ethiopian Pharmaceutical Supply Services as one of the best suppliers 8:47 8 minutes, 47 seconds for 2024 2025, which reflects our improving credibility and execution in international markets. 8:57 8 minutes, 57 seconds Now coming to the financial performance for quarter 4 and financial year 2026 consolidated results. 9:07 9 minutes, 7 seconds For quarter 4 financial year 2026, revenue from operations stood at rupees 9:14 9 minutes, 14 seconds 7109.70 lakhs compared to rupees 5024.18 9:23 9 minutes, 23 seconds lakhs in quarter 4 financial year 2025 reflecting a robust 42% yearon-year 9:32 9 minutes, 32 seconds growth. Abita for the quarter was rupees 2623.57 lakh compared to rupees 9:41 9 minutes, 41 seconds 1572.47 lakhs in quarter 4 financial year 2025 9:48 9 minutes, 48 seconds an increase of 66 67% yearonear with EITA margins at 37%. 9:58 9 minutes, 58 seconds Profit after tax stood at rupees 11102.4 43 lakhs compared to INR 576.11 10:08 10 minutes, 8 seconds lakhs in quarter 4 financial year 2025 delivering a strong 91% yearon-year 10:16 10 minutes, 16 seconds growth supported by our oncology division operational leverage and cost discipline 10:24 10 minutes, 24 seconds gross margins remained healthy at 60% driven by improved efficiency and scale benefits across are on political 10:33 10 minutes, 33 seconds vertical for the year ended financial year 2026 the revenue stood at rupees 10:42 10 minutes, 42 seconds 25173.60 lakhs as against rupees 17758.47 10:51 10 minutes, 51 seconds 47 lakh in financial year 2025 reflecting a 22 42% 10:58 10 minutes, 58 seconds yearon-year increase. EITA in financial year 2026 was INR 688.82 11:08 11 minutes, 8 seconds 82 lakhs compared to INR 4968.32 11:14 11 minutes, 14 seconds lakhs in the financial year 2025 an increase of 39% yearonear 11:22 11 minutes, 22 seconds profit after tax for financial year 2026 was rupees 3048.46 11:29 11 minutes, 29 seconds lakhs compared to rupees 1750.20 20 lakhs in the financial year 2025 reflecting a 74% year-on-year growth. 11:43 11 minutes, 43 seconds Overall, the strong financial and operational performance reflects the scalability of our integrated onquality 11:51 11 minutes, 51 seconds platform, the growing acceptance of our manufacturing quality by global partners 11:58 11 minutes, 58 seconds and the long-term opportunity emerging from our oncologyled export strategy. 12:04 12 minutes, 4 seconds Before I conclude, I would like to thank our managing director, Mr. Sanesha, our management team, our dedicated 12:12 12 minutes, 12 seconds employees, and our global partners for their continued commitment and contribution. I also extend my gratitude 12:20 12 minutes, 20 seconds to all shareholders and analysts for their continued trust and support in Sakar Healthcare's journey. Thank you 12:28 12 minutes, 28 seconds for your time. We will now open the floor for questions. 12:36 12 minutes, 36 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 12:44 12 minutes, 44 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 12:53 12 minutes, 53 seconds question. We also request participants to please limit their question to two per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 13:08 13 minutes, 8 seconds The first question is from the line of Rupees Tatia from Long Equity Partners. Please go ahead. 13:14 13 minutes, 14 seconds Uh thank you. Thank you for the opportunity sir and congratulations on fantastic set of numbers. Uh because I I 13:22 13 minutes, 22 seconds must congratulate you uh for giving you know very realistic guidance and then meeting it. Uh my Mike first question 13:30 13 minutes, 30 seconds sir is on the I think next year we have you know aspiration of going to 380 K uh revenue. Uh do you do you still hold 13:39 13 minutes, 39 seconds on to that guidance uh considering you know whatever is happening in the world crude oil prices going up so much disruption in shipping and all that. So 13:48 13 minutes, 48 seconds how how are you looking at FI27? Do we still hold on to the you know 380 K guidance? 13:55 13 minutes, 55 seconds Yeah, thank you so much uh for uh sharing your wishes and it's indeed a achievement for us as well. Uh 14:03 14 minutes, 3 seconds particularly the oncology uh setup is uh giving us turning us to be you know re revenue generating for us. Yes indeed we 14:12 14 minutes, 12 seconds are looking forward for the year of yearover-year growth uh with the same momentum which we have picked up this year. uh means if you see we have 14:21 14 minutes, 21 seconds already registered 42% this year and we wanted to hold in the similar line for the next financial year where also I 14:30 14 minutes, 30 seconds have told earlier that oncology will be the main driving force in that uh considering the infrastructure of setup 14:37 14 minutes, 37 seconds what we are building up in terms of our doas in terms of our product development and in terms of our registrations worldwide. 14:49 14 minutes, 49 seconds So, so just to summarize, you you still expect 40% type of growth next year also if if goes well. 14:56 14 minutes, 56 seconds Yeah, that is that that we are actually eyeing for for the next financial year with the intera taking off. 15:03 15 minutes, 3 seconds Okay. Okay. And then the second question sorry you you said this Apollo partnership has 100 cr revenue potential. Uh so how much of that was 15:12 15 minutes, 12 seconds realized in FI26 and and how how can we see full full revenue potential can be realized in FI27? 15:20 15 minutes, 20 seconds Uh yeah actually if you have gone mean earlier whatever has been uh briefed about in terms of accord we have nine 15:28 15 minutes, 28 seconds different molecules and 12 cues which have been uh under tech transfer out of which two already have been done and 15:36 15 minutes, 36 seconds based on that we have generated the sales in terms of accord export. So the full potential has not been tapped uh in 15:44 15 minutes, 44 seconds the last financial year uh which we are expecting to come up this year. So the potential which we are looking forward 15:51 15 minutes, 51 seconds to is multiple of that and that ranges between 50 to 100 cr depending upon the partners reach within the territory of 15:59 15 minutes, 59 seconds EU and the UK. So absolutely you are right that this potential is going to come from Accord's 16:07 16 minutes, 7 seconds end uh the business in terms of accord export this financial year with the nine molecules. 16:15 16 minutes, 15 seconds Okay. Okay. and and and can you sorry to interrupt your question maybe like it's just a follow just a followup 16:22 16 minutes, 22 seconds it's just a follow up to this question one clarification so so for other other partners right torrent uh Glenmark Zidus 16:30 16 minutes, 30 seconds and Mure so so maybe all of them put together what is the revenue potential of the rest of the partners I mean I we know Accord is a very big player in the 16:38 16 minutes, 38 seconds euro but how how about other players what what kind of revenue potential we're looking at revenue potential that is what I 16:46 16 minutes, 46 seconds mentioned in terms of growth means we are looking forward for oncology to almost uh doubling the sale in the next 16:53 16 minutes, 53 seconds year uh that is what we are aspiring for considering the infrastructure of what we have built in terms of overseas and 17:01 17 minutes, 1 second and as well as the partners which you have rightly mentioned the Zidas in Glenmark Mure and we have another 13 14 17:10 17 minutes, 10 seconds domestic players who are adding up to the sales so that will add up to this uh overall business uh growth what we are looking forward to. 17:20 17 minutes, 20 seconds Okay. Okay. Thank you for answering my question. So I I I'll come back in with you. 17:25 17 minutes, 25 seconds Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all participants, we would request you to please limit your question to two per participant. 17:36 17 minutes, 36 seconds The next question is from the line of Anish Davari from Varna. Please go ahead. 17:41 17 minutes, 41 seconds Hi. uh how much was the export oncology revenue in fourth quarter and fiscal 26 17:50 17 minutes, 50 seconds and how much are you budgeting for FI27? 17:59 17 minutes, 59 seconds Yes. So the fourth quarter export revenue from the onology business was around 30 lakh rupees which in comparison to the last quarter yearon-year basis in FI25 was 22 lakhs. 18:11 18 minutes, 11 seconds So there has been a growth in the exports in the ontology segment and in terms of the code business that we have 18:18 18 minutes, 18 seconds uh in that the export turnover was around 29 crores in comparison to the last quarter the of FI25 was 26 crores and uh we seemed as said by Mr. 18:32 18 minutes, 32 seconds with FI27 we are expecting a substantial growth in the exports based on the pipeline that has been created. 18:41 18 minutes, 41 seconds So there 30 lakh you said right for full quarter. Last quarter. Yeah. Export inco. Yes. 18:49 18 minutes, 49 seconds How much are the domestic uh oncology revenue in fourth quarter and how much are you budgeting for next full year? 18:56 18 minutes, 56 seconds The last quarter revenue in oncology domestic is 31 crores and uh it would be 19:04 19 minutes, 4 seconds almost in same lines probably more than this in the year to come quarteron quarter basis. 19:11 19 minutes, 11 seconds or more. Okay, thank you. 19:16 19 minutes, 16 seconds Thank you. The next question is from the line of Hendra Pradhan from Maximal Capital. Please go ahead. 19:24 19 minutes, 24 seconds Yeah. Hi sir. Uh thanks for the opportunity and hope I'm audible. So just to again you know confirm the 19:30 19 minutes, 30 seconds numbers uh uh so for us the enco versus non-enco if we can give the silence for Q4 and fi26 19:38 19 minutes, 38 seconds and uh the oncology exports uh you mentioned it was 30 lakhs uh um uh in Q4 19:45 19 minutes, 45 seconds right I mean and uh we expect the revenue potential to be 55 to 100 C over next three years for the nine molecules 19:54 19 minutes, 54 seconds if you can confirm that uh that would be helpful Right. 20:00 20 minutes And so what will be the enco versus non- enco like u overall like uh our like uh 20:06 20 minutes, 6 seconds uh revenue split the revenue 20:14 20 minutes, 14 seconds revenue revenue split yes okay this year the noncology noncology is around 62% contribution whereas the 20:22 20 minutes, 22 seconds oncology contributed to 38% of the total revenue in comparison to the last financial year where it was oncology was 20:29 20 minutes, 29 seconds only contributing 21% of the total revenue. So this year it is 38%. And for Q4 sir Q4 what was the number? 20:38 20 minutes, 38 seconds Absolute number. 20:42 20 minutes, 42 seconds In Q4 the absolute number for the onology business was 31 cr 46 lakhs and down onology was 39 cr 64 lakhs and the 20:51 20 minutes, 51 seconds export portion was still less but we expect it to pick up. Um yeah that is second specific to this quarter. It is 20:59 20 minutes, 59 seconds not an overall but specific to this quarter. Got it sir. And sir on the interrupting Mr. Pradan. 21:06 21 minutes, 6 seconds May we request to please rejoin the queue sir. We have participants waiting for the turn. Okay. 21:11 21 minutes, 11 seconds Thank you. The next question is from the line of Van Nar from ICA securities. Please go ahead. 21:18 21 minutes, 18 seconds Uh hello. Hi. Am I audible? Yes you are. Please go ahead. 21:25 21 minutes, 25 seconds Uh thank you for the opportunity and congratulations to the for a great set of numbers. Uh so my first question is 21:31 21 minutes, 31 seconds on the 1,000 cr uh 800 2,000 cr uh long-term revenue guidance that we have given up in the uh starting remarks. Um 21:41 21 minutes, 41 seconds by when can we uh by when are we looking to achieve it and what will be the key drivers for it? 22:00 22 minutes I'm sorry to interrupt, sir. We are unable to hear you. Hello. 22:08 22 minutes, 8 seconds Hello. Can you hear? Yes. Now, please go ahead. Yes, sir. 22:13 22 minutes, 13 seconds Yeah. Yeah. Coming back to your query, it is basically as we have been pitching earlier also the oncology is the driving 22:21 22 minutes, 21 seconds force for moving ahead for us and you can see the means encouragement what we are receiving from the business revenues 22:30 22 minutes, 30 seconds what we are uh getting over year over year in the past couple of years. So what we are looking forward to is almost doubling the sale of oncology in the 22:39 22 minutes, 39 seconds coming two years so that we can initially reach a milestone of around 500 cr first comprising of both the 22:47 22 minutes, 47 seconds units. So that is the first milestone we are looking forward to maybe covering up in next two years. 22:55 22 minutes, 55 seconds Okay sir. And my second question is on the capacity utilization. If you could please share the capacity utilization for the enco plant and how it is 23:02 23 minutes, 2 seconds expected to scale up in the next two years. 23:06 23 minutes, 6 seconds The uh oncology plant capacity utilization is still under 30%. Absolute 23:12 23 minutes, 12 seconds will be around 20 29% uh plus uh so the thing is that this is principally as you can uh understand from the previous 23:21 23 minutes, 21 seconds answers that it is predominantly the domestic business which is right now contributing for oncology. Now with the 23:28 23 minutes, 28 seconds per unit cost built up with the exports with the oncology products. So you can see that this uh ramp up with the 23:36 23 minutes, 36 seconds business will increase the capacity utilization accordingly and we can increase to around 50 to 55% 23:44 23 minutes, 44 seconds with around in the next couple of two years what we are projecting in terms of revenue to match up for that. 23:53 23 minutes, 53 seconds Okay. Thank you. Request Mr. to please rejoin the queue sir. Yes sir. 23:59 23 minutes, 59 seconds Thank you. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead. 24:04 24 minutes, 4 seconds Yeah, thanks for the opportunity and congratulations for a good set of numbers. Sir, my first question was on the growth that we are expecting in the oncology. You know we expecting from 24:13 24 minutes, 13 seconds around 9500 cr this year we are planning to reach 200 cr sales in uh FI27. So 24:20 24 minutes, 20 seconds will the growth uh be uh be equally divided in the coming few quarters or it will be like backended because the I 24:27 24 minutes, 27 seconds think the tech transfer uh revenues for indas and eccord products is yet to start. So how should we see uh you know 24:36 24 minutes, 36 seconds the growth spread out across the coming few quarters for oncology segment. 24:42 24 minutes, 42 seconds Um in that case I feel a brief background of the current setup what we have built up maybe in the last couple of years will help. So as you rightly 24:51 24 minutes, 51 seconds mentioned the tech transfer projects are about to pick up from the first quarter only of AI27. 24:57 24 minutes, 57 seconds Uh so it has already started even in this quarter one uh with four uh right now tech transfer projects approved for 25:05 25 minutes, 5 seconds Europe and the UK. two from Accord, two from u sorry five are actually there two 25:12 25 minutes, 12 seconds from Accord, two from uh UK, Germany both torrent and another company from the UK. So there are five tech project 25:20 25 minutes, 20 seconds for which we are right now commercializing the products from the quarter one. Apart from that as I mentioned there are total nine projects 25:28 25 minutes, 28 seconds or nine products there for accord which are set to get added along with that and apart from that we have another couple of uh tech transfer projects which are 25:37 25 minutes, 37 seconds currently going on in our plant uh with companies like lenmark and incure. So those will added up to that. So this is 25:44 25 minutes, 44 seconds the technology transfer projects which will start gearing up maybe from the quarter two or quarter three of this year. Along with that we have already 25:52 25 minutes, 52 seconds set up a robust in terms of submission of dosiers which is rough roughly accounting right now 26:00 26 minutes around 130 plus doia submitted in different regions across the world which includes the Europe as well as uh 26:08 26 minutes, 8 seconds Australia as well as uh other emerging markets like uh Africa, Southeast Asia and uh Latin American markets. So these 26:17 26 minutes, 17 seconds 130 plus doers uh will transform into marketing authorization or registration of the products so that it can be 26:25 26 minutes, 25 seconds supplied which will start coming from the quarter 2. Already it has started as already mentioned earlier that we have received two. We are in the process of 26:32 26 minutes, 32 seconds commercializing those products from quarter 1 only. Uh because there are number of processes which needs to be followed before we go for 26:40 26 minutes, 40 seconds commercialization particularly to the stringent market. But having said that we have another 220 doers which has already been shared with the partners. 26:49 26 minutes, 49 seconds So that makes up a total figure of 300 plus doers which we are looking forward to in next two years to get converted into active registration so that we can 26:57 26 minutes, 57 seconds supply the product to the overseas market in terms of exports of encology products. So this is basically the background I feel will give you uh the 27:05 27 minutes, 5 seconds setup what we currently have 300 registrations or product doers going into the market will transform into registration in one hand technology 27:14 27 minutes, 14 seconds transfer from this big multinationals like Zidas Inas Lenmark MQ and other local players. So I feel so this is a 27:22 27 minutes, 22 seconds white good mean mix in terms of exports and import uh domestic and we expect that next year it will be almost neck to 27:30 27 minutes, 30 seconds neck in terms of domestic and export in terms of sales considering this export uh registrations will convert into 27:38 27 minutes, 38 seconds commercial supplies. So okay so my question was like from Q1 Q2 onwards should should we start seeing a run rate 27:46 27 minutes, 46 seconds of around 40 cr in the oncology segment and then you know it will increase to 50 60 cr from Q2 onwards or it will be like 27:53 27 minutes, 53 seconds how should we see the growth for oncology in the coming few quarters see in exports basically as I told you 28:01 28 minutes, 1 second there are number of sequences which needs to be followed and it does not follow a simple pattern of that it has to be of optic will be there every 28:10 28 minutes, 10 seconds alternate man or with water. So it may happen that the inter offtake for an eer may happen at one go and particularly 28:18 28 minutes, 18 seconds oncology is a product where it goes for tender supplies also. So that gives a full view of maybe a full tech off tech 28:25 28 minutes, 25 seconds will happen in quarter three only. So it is very difficult to right now actually set the pattern in terms of that quarter 28:33 28 minutes, 33 seconds over quarter will be growing on this percent. But having said that what I have told you somewhere or the other the business will be definitely coming up in 28:41 28 minutes, 41 seconds terms of product registration or maybe a tech transfer project. Apart from that we are already supplying some domestic layers which is the backbone since last 28:50 28 minutes, 50 seconds 2 three years because they are already giving a standard sale of around maybe 30% or 20% of the business what we are 28:58 28 minutes, 58 seconds registering in terms of domestic. So I feel so from quarter two basically you can see a outflow of or uptake of export 29:06 29 minutes, 6 seconds business but exact pattern is very difficult to comment right now. 29:11 29 minutes, 11 seconds Sure. Got it. Second question was on the margins. If you look at it, you know, in this quarter, we have done almost 37% 29:18 29 minutes, 18 seconds AITA margins and you know uh we have always highlighted that our margins will remain uh around 25 to 30% uh for the 29:28 29 minutes, 28 seconds combined business with oncology scaling up. So but this quarter we saw significant improvement in margins for 29:35 29 minutes, 35 seconds 30 of 37%. So what was the reason for the same and how do you see the margins for the company for FI27? 29:47 29 minutes, 47 seconds So the margins like improvement in the margins I would say that was more towards the operational efficiencies and the major contribution to this came from 29:56 29 minutes, 56 seconds the reduction in the cost of productions and uh as well as the various fixed expenses that we were getting the absorption rate 30:05 30 minutes, 5 seconds has improved. So that has led to the improvement in the beta margins and we look forward to have the same trend going forward. 30:15 30 minutes, 15 seconds Sorry to interrupt. May we request Mr. 30:16 30 minutes, 16 seconds Gupta to please rejoin the queue. Thank you. The next question is from the line of Danil Sha from Ialth. Please go ahead. 30:28 30 minutes, 28 seconds Good good afternoon sir. Uh congrats on a great set of numbers and thank you for the opportunity. Uh am I audible? 30:37 30 minutes, 37 seconds Yeah. Yeah. Absolutely. 30:39 30 minutes, 39 seconds Yeah. Uh sir uh just just wanted to check uh on the gross margin which the earlier participant was also trying to 30:46 30 minutes, 46 seconds understand right I mean sequentially sir if you see our onology of the sales are are pretty similar 30 31 o right so so 30:54 30 minutes, 54 seconds there is a gross margin increase of 10 11%. So was there any inventory benefit 31:00 31 minutes we got in this quarter particularly and and I think we were earlier guiding for a closer to 40 cr run rate for this 31:10 31 minutes, 10 seconds quarter I think we've done only 30 odd cr so if you can just explain that also also better 31:21 31 minutes, 21 seconds so in for the margin part of it uh we would say that yes the inventory part of it which we have been able to plan 31:28 31 minutes, 28 seconds properly. So that has given the advantage on that as well. So the stocking pattern has improved. So that has also led to the efficiencies in 31:37 31 minutes, 37 seconds terms of the cost which has come down and uh with respect to the sales part of it because it can throw some light on that. 31:58 31 minutes, 58 seconds If that answers your question, Mr. Sha. 32:02 32 minutes, 2 seconds Yeah, I mean I think Vikram is going to revert to the second part on the on the oncology sales. I can't hear him. 32:12 32 minutes, 12 seconds I just uh repeat your uh query. I mean sir on the oncology side I think we were earlier uh guiding to closer to 3840 32:22 32 minutes, 22 seconds crores for this quarter but sequentially s we've been flagged on that just only 32:28 32 minutes, 28 seconds to understand what happened uh on that more or less uh just to uh make sure 32:35 32 minutes, 35 seconds that we are on track only because uh there are certain processes which needs to be complied with as as I told you 32:43 32 minutes, 43 seconds earlier in terms of exports because You can see that already we have 12 uh registrations which we have received. 32:50 32 minutes, 50 seconds Now in order to move ahead with this uh registration supplies. So we need to have the number of uh processes aligned 32:59 32 minutes, 59 seconds in terms of serialization of the product. Then we need to have certain artwork approvals commercials uh 33:07 33 minutes, 7 seconds logistic commercial purchase order logistics. Then we have the supply chain in place. So the initial supply takes a 33:15 33 minutes, 15 seconds little bit of time any anyway. So whatever we may have uh planned for that 33:22 33 minutes, 22 seconds is right on track. Maybe a little bit of few weeks here and there may have happened. Uh but uh having said that uh 33:30 33 minutes, 30 seconds as on date we have around uh 23 plus uh products which have already been submitted in different parts and we are 33:39 33 minutes, 39 seconds expecting the registrations coming up maybe in few months time. So that will pump up the sales whatever we are looking forward to in the coming uh couple of quarters. 33:50 33 minutes, 50 seconds Sure. Got it. And and sir my my second question is uh on the on the API integration right I think for our uh uh 34:00 34 minutes uh for the exports to happen to the Europe I believe that we haven't yet got the approvals on the API block. Correct. 34:09 34 minutes, 9 seconds So when do you all expect that to come in? 34:13 34 minutes, 13 seconds Yeah. Uh right now whatever the APIs we have uh developed uh inhouse uh that is 34:19 34 minutes, 19 seconds around 21 APIs in cytotoxic range and uh definitely uh that will be the objective that we should backward integrate with 34:28 34 minutes, 28 seconds all our products which are going commercially. So as an initial phase what we have already done is that we 34:34 34 minutes, 34 seconds have already submitted four for the C which is required when you are moving ahead for the regulated market in terms 34:43 34 minutes, 43 seconds of integrated API supplies or finished formulation. 34:47 34 minutes, 47 seconds Now in that case already we have received uh two API with C uh Jeffitin and Cetabin are the two products. So 34:56 34 minutes, 56 seconds these two products right now we can integrate with our current formulation and we can export to all the regulated markets. Obviously it's emerging market 35:05 35 minutes, 5 seconds is included in that. Apart from that we have also planned for another two API with C which have been submitted and 35:13 35 minutes, 13 seconds that also we are expecting maybe next couple of quarters. So that makes a tally of around four already applied to 35:22 35 minutes, 22 seconds we have received and we have also planned for five more APIs we have identified which can be integrated 35:30 35 minutes, 30 seconds properly. This definitely is always uh based on the commercial uh visibility what we get from the market. So this 35:38 35 minutes, 38 seconds file will then be submitted accordingly and roughly this takes around 6 months time. It may be a little more depending upon whatever the time you are 35:47 35 minutes, 47 seconds submitting to the application. But in a net or summarized way if I tell already we have got approval for two in terms of 35:57 35 minutes, 57 seconds 21 APIs which we can right now move ahead for the regulated market. Two are in process which can come in next two 36:04 36 minutes, 4 seconds months and rest five we are planning for in the coming few quarters so that we can make the tally total to nine out of 21 which we have developed in house. 36:16 36 minutes, 16 seconds Got it sir. 36:20 36 minutes, 20 seconds Thank you. The next question is from the line of Disha from Sapphire Capital. Please go ahead. Hello. 36:28 36 minutes, 28 seconds Am I audible sir? Yeah. Yeah. 36:32 36 minutes, 32 seconds Yes. Thank you so much for this opportunity and congratulations sir for a great set of numbers. So as the previous part one of the previous participants has asked so we've seen a 36:40 36 minutes, 40 seconds meaningful improvement in our margins and you highlighted the reasons why. So how should we look? So what are the base margins that we're looking at for FI27 36:47 36 minutes, 47 seconds and as the oncology segment scales up what are the steady state margins that we can expect at optimal levels? 36:59 36 minutes, 59 seconds Yeah, as said the the margins we are expecting right now on the same levels that we have been able to achieve but probably yes the 37:07 37 minutes, 7 seconds margins would definitely improve as the contribution from the oncology improves because oncology gives better margin in comparison to the core business that we 37:15 37 minutes, 15 seconds have. So exact numbers probably we might not be able to tell right now but yes the trend would be almost increasing in the time to come. 37:26 37 minutes, 26 seconds So this 27 28% that we've done on a full year basis that is sustainable right? 37:31 37 minutes, 31 seconds Yeah that will be sustained probably improved over that. 37:35 37 minutes, 35 seconds Okay. And so how should we look at the tax rate for FI27? 37:40 37 minutes, 40 seconds Uh for tax rate for the FI27 we would be moving into the normal tax rates going forward in FI 27. 37:49 37 minutes, 49 seconds So around 25%. 25%. Yes. Okay. Okay. That is it from my side. Thank you. 37:56 37 minutes, 56 seconds Thank you. The next question is from the line of Danil Desai from Total Capital. Please go ahead. 38:02 38 minutes, 2 seconds Uh hi, good afternoon uh everyone and congratulations for a very good year. Uh so first question is uh you know we 38:10 38 minutes, 10 seconds talked about the nine uh you know uh tax transfer with accord uh you know that is uh in the pipeline out of which two we 38:18 38 minutes, 18 seconds have already kind of uh got approved and we have started supplies. uh how should we look at the timeline in terms of the 38:26 38 minutes, 26 seconds commercializing the rest seven eight products which are with the accord uh and typically once you uh get an tech 38:34 38 minutes, 34 seconds transfer approval what's the timeline with which we should work in terms of commercials uh you know production and 38:41 38 minutes, 41 seconds uh supply to uh the account normally the pet transfer as I mentioned 38:49 38 minutes, 49 seconds the seven products are on the pipeline right now the it has been submitted in EMA for uh the approval by the European 38:56 38 minutes, 56 seconds authority. So one by one they will be approved and we can start supplying them. So there is no access threshold 39:04 39 minutes, 4 seconds time but it's the normal lead time what basically is required because the product is already there in the market. 39:11 39 minutes, 11 seconds So everything is ready in terms of artwork and everything. So they will just replic do a replica here at our facility 39:18 39 minutes, 18 seconds based on the grant of uh this variation what they have filed and approved. So it can be supplied. So there is no lack 39:26 39 minutes, 26 seconds phase as such for uh this approved uh products which are basically coming from 39:33 39 minutes, 33 seconds accord. But having said that the seven products will come one by one maybe we can expect one one or two this quarter 39:41 39 minutes, 41 seconds and maybe the following quarter the rest. So once this comes up then uh we can start looking for the commercials from there or else. 39:52 39 minutes, 52 seconds Okay. Okay. And at this 50 to 100 cr number range that we have given from uh this business uh is it contingent upon 40:00 40 minutes uh we getting all nine approvals or you know a certain number of approvals that we have factored in and what is the risk 40:07 40 minutes, 7 seconds of that sleeping away uh you know uh because of uh various regulatory reasons uh uh you know how should we look at 40:16 40 minutes, 16 seconds that risk you know of not getting into that 5200 cr number that we are facing uh the number is basically the number 40:25 40 minutes, 25 seconds which we have derived based on the forecast or business plan what we have received from Accord but again that is a business plan and there is no binding 40:33 40 minutes, 33 seconds forecast on that nobody will give that that is the practical thing and Europe being a vast or wider region there are number of countries in included in that 40:42 40 minutes, 42 seconds so estimation of the actual number is very difficult because with 28 countries coming into picture but having said that that is the reason why we have taken 40:50 40 minutes, 50 seconds number of buffers and filters on that and we pitching for 50 cr out of it. So if any of the products sell less or any 40:58 40 minutes, 58 seconds of the country of tax gets low still we will be achieving that number. So that is a full year number of 50 cr to 100 cr 41:05 41 minutes, 5 seconds what we can look forward to. Got it. Got it. And then second question on the uh you know so total 100 cr delta that we 41:13 41 minutes, 13 seconds are looking for the next year. Let's say this year we did oncology 96 crores next year maybe another 90 to 100 cr. So out 41:21 41 minutes, 21 seconds of that 50 60 K will come from uh you know the tech transfer part the rest will come from our own brand those years which we which we will launch in Europe. 41:31 41 minutes, 31 seconds Is that understanding correct? And if so uh are we uh are we already kind of you know we have got I think five approvals. 41:39 41 minutes, 39 seconds Uh so are we already commercializing any of that? How should we see the scale up of our own uh brand registration in 41:46 41 minutes, 46 seconds Europe to kind of get to that 100 cr additional number for 27? 41:53 41 minutes, 53 seconds Yeah, as I mentioned uh earlier also the domestic business whatever we are getting that will sustain the number and have its own growth based on the 42:01 42 minutes, 1 second domestic uh right now growth of around 10% on the oncology segment. But having said that the export growth will be 42:08 42 minutes, 8 seconds primarily uh driven by this tech transfer project and our own registrations what we are looking forward to that is the own registration 42:15 42 minutes, 15 seconds means the exports basically that is the registration where we have licensed out the doias and partners have registered the products in the overseas market. So 42:23 42 minutes, 23 seconds as I told you already we have submitted 23 + 8 so 31 doers have already been there in the market which are currently 42:31 42 minutes, 31 seconds on the registration and thereby we are expecting that maybe this calendar year or maybe this financial year end this uh 42:40 42 minutes, 40 seconds 31. So out of that if we expect also 80% coming in uh in terms of commercials because we need a commercial lead time 42:47 42 minutes, 47 seconds of around 30 120 to 150 days for the first supply. So if we consider that by quarter three we get around 80% of this 42:55 42 minutes, 55 seconds registration also which roughly comes around 25 registrations. So we will be commercializing these 25 products in this year this financial year and that 43:03 43 minutes, 3 seconds will boost up the sale what of what we are mentioning earlier also that it will catch up the domestic sale from the 43:12 43 minutes, 12 seconds export part considering the tech transfer and export of these registered products. 43:20 43 minutes, 20 seconds Thank you. The next question is from the line of Ahman from Varya. Please go ahead. 43:27 43 minutes, 27 seconds Hi. Uh good afternoon. Thanks for taking my question. Uh Vik G just one question on uh the 500 K uh ambition that you 43:36 43 minutes, 36 seconds outlayed for the next two years. Can you give some breakup on how this 500 cr is split between one uh oncology and 43:44 43 minutes, 44 seconds non-oncology and second within oncology how is it split between enco domestic 43:51 43 minutes, 51 seconds see the aspiration is 60 enco 40 uh the non-nonco because oncology per uh unit 43:59 43 minutes, 59 seconds value is always higher and our uh means right now focus as well as the total setup what we have supports that. So we 44:08 44 minutes, 8 seconds will run for that 60% plus from oncology and in that also if we look forward to uh basically it will be again a break 44:16 44 minutes, 16 seconds off of around maybe 6535 with 65% on the exports and 35% on the domestic. 44:27 44 minutes, 27 seconds Hello am I? Yes you are. 44:34 44 minutes, 34 seconds Yeah, because you were saying 65% export and 35% domestic. Did I hear that right? Yeah. Yeah. Right. 44:41 44 minutes, 41 seconds Okay. Okay. Uh my second question was uh on the uh on the cost increases that the business might be seeing because of the 44:49 44 minutes, 49 seconds Middle East conflict and this could be from various angles either raw material or RMP or uh you know freight costs, 44:58 44 minutes, 58 seconds insurance costs, whatever the case might be. How are you handling that? are you passing it on to the customers or are you part passing it part absorbing it? 45:06 45 minutes, 6 seconds If you could just throw some light on that. 45:11 45 minutes, 11 seconds Uh the first part is that we do not have that much of dependency on the Middle East in terms of our present business. 45:19 45 minutes, 19 seconds Uh or maybe the business setup what we have for oncology also the stick on that part is significantly less. 45:27 45 minutes, 27 seconds The second part is that yes obviously if something is happening there in Middle East the impact may come over indirectly 45:34 45 minutes, 34 seconds to us in terms of API or logistic or something else. For that we have already the business contract saying that if 45:41 45 minutes, 41 seconds there is a significant increase after a certain level uh we will be uh passing on to the partners regarding the same. 45:50 45 minutes, 50 seconds So we are well protected from that part uh as on date. 45:57 45 minutes, 57 seconds Okay. Thanks. Uh I have a couple more but I'll get back to the Thank you ladies and gentlemen. That was 46:05 46 minutes, 5 seconds the last question for today. With that I now hand the conference over to management for closing comments. 46:17 46 minutes, 17 seconds Thank you everyone for joining the Haka Healthcare P4 financial 26 counter speech. 46:23 46 minutes, 23 seconds Uh thank you so much. 46:27 46 minutes, 27 seconds Thank you ladies and gentlemen on behalf of Sakar Healthcare Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.