Sanjivani Paranteral Ltd — Q4 FY26

Sanjivani Paranteral Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=PBjKgLr2m0w Published: 1d ago

0:01 1 second Ladies and gentlemen, good day and welcome to Sanjini Parental Limited Q4 FI26 earnings conference call hosted by 0:10 10 seconds Green Advisor Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask 0:18 18 seconds questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:25 25 seconds zero on a touchstone phone. Please note that this conference is being recorded. 0:29 29 seconds I now hand conference over to Mr. Karan Hakur from Korean Advisor Private Limited. Thank you and over to you sir. 0:38 38 seconds Uh yeah good morning. Thank you. On behalf of Kan Advisor I welcome you all to the conference call of parent limited from the management team we have Mr. 0:48 48 seconds Ashoni Kimka chairman and managing director and Mr. Fites Jin chief financial officer. With that now I hand 0:55 55 seconds over the call to Mr. Fred Jen for the opening remark. Over to you sir. 1:01 1 minute, 1 second Thank you sir. Good morning ladies and gentlemen and thank you for joining us for the Sanjini parental limited Q4 and 1:09 1 minute, 9 seconds full year financial year 26 post results earning conference call. Disclaimer before I begin let me mention the 1:17 1 minute, 17 seconds standard disclaimer. The presentation that we have uploaded on the stock exchange including the interaction in this call contain or may contain certain 1:26 1 minute, 26 seconds forward-looking statements concerning our business prospects and profitability which are subject to uncertainties and 1:33 1 minute, 33 seconds actual results could differ from those in such forward-looking statements about the company. For the benefits of the 1:41 1 minute, 41 seconds participants who may be joining us for the first time, Sanjimi Parental Limited is a WHGMP certified pharmaceutical 1:49 1 minute, 49 seconds manufacturer with over 25 years of operating experience. We specialize in sterile injection injectables and oral 1:57 1 minute, 57 seconds solid doses formed with a primary focus on essential and life-saving therapies. 2:03 2 minutes, 3 seconds Our products are exported to more than 25 countries across the emerging markets and we operate manufacturing facilities 2:10 2 minutes, 10 seconds in Navia, Mumbai and Zhaz supported by an in-house R&D capability. In addition 2:17 2 minutes, 17 seconds to our core formulation business, we are building new growth platforms through joint ventures in IV fluids in India and neutrutical manufacturing in Europe. 2:27 2 minutes, 27 seconds Financial year 26 marks an important year for the company as we transition from a single engine business to a multiple vertical growth platform. 2:38 2 minutes, 38 seconds It is a first year of contribution from Pune infusions facility to the consolidated revenues. Our overseas 2:45 2 minutes, 45 seconds neutraitical venture continues to build commercial transaction. 2:49 2 minutes, 49 seconds This is a result of strategic investments we made over the past few years to diversify both our 2:56 2 minutes, 56 seconds manufacturing base and the revenue streams. 3:01 3 minutes, 1 second Macro markets during quarter 4 financial year 26. The export environment remained normal during Jan and most of February. 3:10 3 minutes, 10 seconds However, towards the end of February, Iran related geopolitical conflict disrupted the trade activities across 3:18 3 minutes, 18 seconds the Middle East region. The situation impacted shipping routes, vessel movement, cargo handling and export 3:26 3 minutes, 26 seconds logistics across the region. Since the medal is a medal east is a key export market for the company. We were not able 3:33 3 minutes, 33 seconds to execute exports during the month of March 2026 due to disruption in the shipping and trade movement. As a 3:42 3 minutes, 42 seconds result, revenues for the quarter were impacted. In addition, the company witnessed an increase in the raw material and the packing input cost 3:51 3 minutes, 51 seconds during March 26. Higher input prices along with lower operating leverage due to export dispatches impacted the gross 4:00 4 minutes margins during the quarter. Pharma sector the pharmaceutical environment across a key export market remains 4:08 4 minutes, 8 seconds robust with stable demand and healthy business activity during the quarter. We continue to see steady inquiries and 4:15 4 minutes, 15 seconds consistent demand across key product categories and geographies. Export opportunities for the Indian pharmaceutical companies remain strong 4:24 4 minutes, 24 seconds driven by cost competitiveness, manufacturing capabilities and rising global demand for quality generates. 4:31 4 minutes, 31 seconds Management is opt is optimistic about the medium to long-term outlook and sees a significant opportunities in the 4:38 4 minutes, 38 seconds international markets. company performance. Coming to the company's business performance, due to disruption in export operations during the month of 4:47 4 minutes, 47 seconds March 26 and resulting loss of export revenues, Q4 revenues witness a year onyear decline. However, the company 4:57 4 minutes, 57 seconds subsequently implemented alternative export and logistic arrangements to stabilize the shipments and normalize 5:03 5 minutes, 3 seconds export operations. management is now seeing improvement in export execution and expects an broader recovery in the 5:11 5 minutes, 11 seconds export revenues during Q1 FY27 that is April to June 2026 quarter. Hence we 5:19 5 minutes, 19 seconds believe that the impact of the disruption is now largely behind us IVF facility in Pune 5:26 5 minutes, 26 seconds had reported revenue contribution of approximately 1.2 2 cr in Q3 financial year 26 which increased to 2.7 cr in Q4 5:35 5 minutes, 35 seconds 25 in Q4 FI26 the business is witnessing encouraging traction on the commercial front with 5:43 5 minutes, 43 seconds customer engagement and order execution gradually improving as highlighted earlier while the 5:50 5 minutes, 50 seconds facility itself is approved and commercialized productwise approvals remain an ongoing process commercial 5:57 5 minutes, 57 seconds scaleup is therefore linked to addition and approval of individual products over the time. The company continues to 6:04 6 minutes, 4 seconds continues to make progress on this front and part of operational traction is already reflected in Q4 FI26 6:12 6 minutes, 12 seconds performance. Management expects sequential further improvement in the business contribution from the facility 6:18 6 minutes, 18 seconds during Q1 FI27 and over the subsequent quarters as additional products get commercialized and scale up continues. 6:28 6 minutes, 28 seconds outlook for financial year 27. Now coming to the broader outlook for financial 20, we expect stronger 6:36 6 minutes, 36 seconds momentum across all three verticles. In the base business with export operations now broadly normalized, we expect 6:44 6 minutes, 44 seconds recovery in the growth in line with underlying demand environment and continued expansion in export markets. 6:52 6 minutes, 52 seconds In IVF business, FY27 should see a clearer fullear impact of operations supported by gradual scale up in 6:59 6 minutes, 59 seconds commercialization and product portfolio expansion. Similarly, in product based neutritical venture, we expect improved 7:07 7 minutes, 7 seconds track during financial 27 as commercial activities continue to progress. 7:13 7 minutes, 13 seconds Overall, we remain optimistic that financial year 27 will be a stronger year for the company supported by improving contribution from all three 7:22 7 minutes, 22 seconds business verticles. Transactional factors. Now on some of the transactional factors, crude oil prices 7:30 7 minutes, 30 seconds and USDR movement remain important variable in for the input cost of the business. Certain raw material prices 7:38 7 minutes, 38 seconds are linked to oil derived supply chain while a meaningful portion of raw material procurement remains import dependent. 7:47 7 minutes, 47 seconds Accordingly, sustained elevated crude oil prices and unfavorable currency movement can 7:55 7 minutes, 55 seconds have some impact on input cost. While part of the cost increase can be passed on, some portion of the input cost pressure may have an impact on margins. 8:06 8 minutes, 6 seconds during the period. However, these are largely transitional factors and should moderate as operating conditions normal. 8:17 8 minutes, 17 seconds Now coming to the financial performance. 8:21 8 minutes, 21 seconds So let me share the financial performance of the company for Q4 FI26. 8:26 8 minutes, 26 seconds Standalone business performance. The base business reported a revenue of 105.1 million reflecting continual 8:33 8 minutes, 33 seconds operational movement across our core markets. AITA stood at 16.58 million 8:39 8 minutes, 39 seconds while AITA margins were at 14.7% during the quarter. Profit after tax came at 8:47 8 minutes, 47 seconds 9.4 million. Segment wise performance injectable revenues stood at 46.7 8:53 8 minutes, 53 seconds million contributing to 44.43 43 of the revenue from operations. Tablet revenues crrewed at 54.6 million contributing 9:03 9 minutes, 3 seconds 51.95 of the revenue from operations. 9:07 9 minutes, 7 seconds Marketwise performance export constituted 85.26 of the revenue from operations at 89.62 million while domestic business accounted 14.74. 9:20 9 minutes, 20 seconds Core markets of Latin America, Middle East and Africa and CS accounted for 76.09 9:29 9 minutes, 29 seconds of the revenue of from the operations consolidated performance. On consolidated basis, the company reported 9:37 9 minutes, 37 seconds a revenue of 132.1 million during Q4 FI26. AITA stood at 21.73 million with AITA margins at 15.74. 9:48 9 minutes, 48 seconds Profit after tax stood at 3 5.5 million with a pat margins of 3.97 9:55 9 minutes, 55 seconds during the quarter. With this we can now open the floor for question and answers. Thank you. 10:02 10 minutes, 2 seconds Thank you very much. We will now begin the question answer session. Anyone who wishes to ask the question may press 10:08 10 minutes, 8 seconds star N1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press R and two. 10:16 10 minutes, 16 seconds Participants are requested to raise hands and while asking a question. 10:20 10 minutes, 20 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 10:27 10 minutes, 27 seconds We have first question from the line of Vinosha from VS Venture. Please go ahead. Yeah, good morning sir. I'm audible. 10:36 10 minutes, 36 seconds Yeah, you're audible. Morning. 10:39 10 minutes, 39 seconds So, our revenue was down uh this uh financial year. So like uh what were the reason for that like especially in this 10:46 10 minutes, 46 seconds quarter? So and how do we accelerate from here? 10:52 10 minutes, 52 seconds Uh so uh as I discussed earlier when the uh during my opening speech uh the March 10:58 10 minutes, 58 seconds month for this quarter uh was highly affected due to the geopolitical tensions on account of war between US 11:07 11 minutes, 7 seconds and Iran. So the shipping uh routes availability of the containers and the logistical chain was disrupted and hence 11:16 11 minutes, 16 seconds we couldn't do major shipments which we normally do every year in the month of March. So that was the prime reason for 11:24 11 minutes, 24 seconds drop in the revenues for the current quarter. Going forward as I again said in the opening speech 11:30 11 minutes, 30 seconds we have found out alternate routes and modes to ship our materials. So we have already started the shipments and we expect a fair bit of recovery happening 11:39 11 minutes, 39 seconds in the Q1 numbers for the current financial year. 11:45 11 minutes, 45 seconds Okay sir and what would be your like target for FI27? 11:52 11 minutes, 52 seconds uh the targets uh for FI27 on a base business we should be around 11:59 11 minutes, 59 seconds 80 85 and on the IV plant from the Pune we should be in the range of 60 to 65 12:07 12 minutes, 7 seconds for the annual though these are annual numbers but the quarterly numbers may vary but on an annual basis we would be 12:16 12 minutes, 16 seconds committed to those numbers okay and so currently with tablet I think in this table 12:24 12 minutes, 24 seconds have over 50% of our revenue. So how do you see this products like in next two three years? Uh so are you in which Yeah. Hello. 12:35 12 minutes, 35 seconds Yeah. 12:37 12 minutes, 37 seconds Yeah. So I was saying your voice is not clear. 12:46 12 minutes, 46 seconds Yeah. Is it better now? Yeah. Yeah. Better. 12:50 12 minutes, 50 seconds Yeah. So I would think tablets currently contribute around 50% of the revenue. So 12:56 12 minutes, 56 seconds how do you see this product evolving? Uh let's just say over next two three years in two three years down the line the 13:05 13 minutes, 5 seconds injectable study and it will be increasing but tablet and capsule portfolio will be uh substantially increasing because tablet and capsule do 13:13 13 minutes, 13 seconds those years we have planned in various other countries and those do those years acceptance and approvals are expected in the coming year. P we got it last year 13:21 13 minutes, 21 seconds and this we are expecting the same and it will be increasing tablet portfolio will be increasing more and when IV 13:28 13 minutes, 28 seconds comes in picture so I will be separate and there also same thing we'll have export and domestic and institution 13:37 13 minutes, 37 seconds okay okay sir thank you sir I will join back with you thank you 13:44 13 minutes, 44 seconds reminder to reminder to all the participants that you press star to ask a question. Reminder to all the participants that you may press star to 13:52 13 minutes, 52 seconds ask a question. The next question from the line of Abishek Basar from Alpha Well, please go ahead. 14:01 14 minutes, 1 second Hello sir. Hello. 14:05 14 minutes, 5 seconds So my first question will be uh the new IV fluid infusion plants in Pune that have commenced commercial production. 14:13 14 minutes, 13 seconds What are the current utilization levels and what does the ramp up timeline looks like over the next four to six quarters? 14:22 14 minutes, 22 seconds Sever started commercial production last year December 2025 and it's gradually picking up and in the 14:29 14 minutes, 29 seconds current coming year in the four quarters so it'll be gradually like 40% 45% 60 and by the fourth quarter it'll be at 14:38 14 minutes, 38 seconds the 70% utilization. 14:42 14 minutes, 42 seconds Oh okay. Okay. Yeah. Uh so when do you expect the Pune facility to make material and visible contribution to 14:50 14 minutes, 50 seconds your top line and margins and what revenue potential does this plant represent at full capacity. 14:57 14 minutes, 57 seconds This year it will be giving a representation in the balance sheet also as our CFO told you very clearly that this year annually we will be doing 15:06 15 minutes, 6 seconds around a revenue of 60 crores and it will having a profit that will be contributing to the main balance sheet 15:14 15 minutes, 14 seconds and by gradually it improve improves and the capacity and utilization will be exceed exceeding. 15:22 15 minutes, 22 seconds Okay. Okay sir, understood. And also I would do uh know about the neutrauticals 15:29 15 minutes, 29 seconds uh contribute only appro 3.445% four four five% of your revenue right so yeah is something you plan to invest 15:38 15 minutes, 38 seconds behind and scale meaningfully or does it remain a small opportunistic uh part of your portfolio 15:45 15 minutes, 45 seconds currently currently owns 45% in that JV and we are under negotiation for major 15:53 15 minutes, 53 seconds majority state but it is yet to happen when it will be happen we'll be announcing it so in our balance sheet the sales won't reflect because we are 16:01 16 minutes, 1 second minority shareholders What is the profit will be added to this manage? 16:08 16 minutes, 8 seconds Okay. Uh also I would like to know about the exports contribution that are nearly 16:15 16 minutes, 15 seconds 78.5% of your revenue heavily consist 16:26 16 minutes, 26 seconds of this region. uh how are you like thinking about the geographic diversification and drisk the business? 16:33 16 minutes, 33 seconds No we are not uh we have done a export revenue contribution in the total turnover is 76%. 16:41 16 minutes, 41 seconds Our risk is spread we are into Latin America Mina region CIS Southeast Asia 16:49 16 minutes, 49 seconds so nobody's having a lopsided effect CS region is a very small contributor to the total turnouts. 16:57 16 minutes, 57 seconds Okay. Okay. Okay. Yeah. I will be joining back in the queue. If I have further question, I will ask. 17:03 17 minutes, 3 seconds Thank you. Thank you. Reminder to all the participants that you want to ask a question. The next question from the 17:11 17 minutes, 11 seconds line of Pratik Sha who is an in individual investor. Please go ahead. 17:16 17 minutes, 16 seconds Uh thank you. Good morning. So uh I just wanted to uh I just wanted to understand on Henry Pony L. So they have guided for 17:26 17 minutes, 26 seconds approximately 15 million bottles for annual capacity. So could you share the productions and the sales volume achieved in the last quarter along with 17:34 17 minutes, 34 seconds what your what is the expectation for FY27? 17:39 17 minutes, 39 seconds See the capacity installed is correct 50 million and last quarter we did uh 17:46 17 minutes, 46 seconds approximately we uh we had a revenue of 3 5 crores in all four months. 17:54 17 minutes, 54 seconds Yeah. And as far as the bottle counts are concerned it would be roughly two odd lakh bottles only as of now. 18:03 18 minutes, 3 seconds Okay. And what about the revenue out for Prague ventures? 18:12 18 minutes, 12 seconds Prague venture is a neutrautical and as we told earlier also in the replies we own 45%. We did a revenue of 500 to 18:21 18 minutes, 21 seconds 600,000 euro last year and there accounting Jan to December and being the first year the profit did not uh come to 18:30 18 minutes, 30 seconds our books. It will be released only in current year and that is ramping up and this year we have a good order book in 18:38 18 minutes, 38 seconds Prague and we are doing healthy business there and that is not affecting much due to the logistic issues. As you all are 18:47 18 minutes, 47 seconds aware the logistic issues have been a big issue. Not only logistic is only a part but with the logistic comes many supplies from Middle East like 18:55 18 minutes, 55 seconds [clears throat] aluminium. India is dependent heavily on aluminium from Middle East. plastics. So those things are theoretic in supplies and the prices 19:04 19 minutes, 4 seconds have gone up. So you have to maintain like inventories when to procure the orders and have a stock with you to suffice the current year. 19:13 19 minutes, 13 seconds Sir can you please guide me like how two bottles give us the three crores revenue in uh Pune? Can you please elaborate? 19:23 19 minutes, 23 seconds Yeah, just to correct. 19:26 19 minutes, 26 seconds Yeah, just to correct myself when I said it two lakh. It wasn't two lakh, it was 2 million bottles. So that is one correction from my side. 19:35 19 minutes, 35 seconds Okay. 19:35 19 minutes, 35 seconds So 2 million uh bottles is contributing a revenue of around 3.5 crores. 19:42 19 minutes, 42 seconds Okay. So considering we have seen the logistic uh deception in the last quarter, how we are seeing this panning out for the next one or two quarters? 19:53 19 minutes, 53 seconds Will we see some pain in the next one or two quarters or we are already over with it? 19:59 19 minutes, 59 seconds No see this uh till it is normalized I don't know how long it will take we wait before the government is negotiating but we have found out different routes we 20:08 20 minutes, 8 seconds are transporting our goods to Saudi Arabia to Turkey and from there we are distributing it uh and it is cost has 20:15 20 minutes, 15 seconds also increased in the logistic fair and other route is to Southeast Asia. So these are the tools everybody is uh 20:23 20 minutes, 23 seconds focusing on and due to shortages of container and the shipping lines. 20:29 20 minutes, 29 seconds So this challenge will be there for few one or two uh 3 months and then it we hope it will be normalized. 20:38 20 minutes, 38 seconds So as you mentioned the logistic cost and every expenses will be so what 20:45 20 minutes, 45 seconds margins can we expect for F27 it will be dip or it will be in the range of 16 17%. 20:52 20 minutes, 52 seconds No the margin dip will not be there as you know the dollar has appreciated so that is covering up most of the things. 21:01 21 minutes, 1 second So that part will be taken care of on that margins will be added the live what has been told. 21:09 21 minutes, 9 seconds So thank you uh thank you so much sir. 21:15 21 minutes, 15 seconds Thank you. The next question from the line of Matria from Sappire Capital. Please go ahead. 21:25 21 minutes, 25 seconds Hello. Hello. Yeah. Hello. Good morning. 21:30 21 minutes, 30 seconds Um first thing on the IV side uh could you help me out with what sort of steady state margins do you expect on the IV business going forward? 21:41 21 minutes, 41 seconds Uh going forward on an annualized basis we expect uh EITA margins of around 17 to 18 percentage. 21:50 21 minutes, 50 seconds Mhm. 21:51 21 minutes, 51 seconds And uh currently uh for FI26 did we break even on the margins for for the IT business or 21:59 21 minutes, 59 seconds uh yes we were able to achieve the AITA margin targets which we mentioned right now. Uh but the interest is the 22:08 22 minutes, 8 seconds depreciation part is taking since it was an newly operated or newly started business. So gradually even that will 22:17 22 minutes, 17 seconds even out and the bottom line will come out properly. 22:20 22 minutes, 20 seconds So we expect to break even uh in FI27 is that is that definitely yes yes 100%. 22:29 22 minutes, 29 seconds And uh the capacity year is 60 million or 1616 million. 22:36 22 minutes, 36 seconds The capacity for the whole year is 16 million on annual 6. Okay. 22:44 22 minutes, 44 seconds Okay. And uh the 2 million bottles that we uh kind of had sales for the 3.5 cr that was for quarter 3 and quarter four 22:51 22 minutes, 51 seconds is that yes correct. 22:55 22 minutes, 55 seconds Okay. Okay. Um secondly you mentioned that we'll be uh also increasing the IV business internationally. So the 23:02 23 minutes, 2 seconds guidance that you gave of 60 65 cr are we expecting any international sales coming in this year or yes we still need to 23:11 23 minutes, 11 seconds oh this year okay yeah we expecting same this current year only okay that is great and the margins on 23:19 23 minutes, 19 seconds the export side are on the similar range 17 to 18%. Yeah. Yeah. Similar and compare better also. 23:26 23 minutes, 26 seconds Sometimes better also. Okay. And the 8085 cr kind of base guidance you've given for this year. Um it seems 23:35 23 minutes, 35 seconds uh what sort of growth are we expecting on the tablets on the injectables and neutrauticals? Where do you see the growth coming in from? um for this 23:44 23 minutes, 44 seconds effect or guided the growth is coming uh majorly from the inertive side and tablet also coming to 23:52 23 minutes, 52 seconds equally 10 12% growth will come from injectable and tablet is 7 to 8%. 23:58 23 minutes, 58 seconds And neutrautical will also ra to 9%. 8 to 9% and on the neutrautical 24:06 24 minutes, 6 seconds side uh any timelines on when we can be the majority stakeholders for that business or it's still in the 24:13 24 minutes, 13 seconds No, we we have been trying since last two years. We are waiting hope for the good. 24:19 24 minutes, 19 seconds Okay. So the neutrautical business we are directly adding the PAT to our numbers. Is that correct? Right now we noting any revenue. 24:28 24 minutes, 28 seconds Yes, we we add the pat number to the balance sheet but this year we could not add because that was the first year and limitations were not here. Current year 24:36 24 minutes, 36 seconds it will be limited and it will be added to the balance. 24:39 24 minutes, 39 seconds Okay. So they say there was no uh kind of proportion from neutropetical. 24:44 24 minutes, 44 seconds No no no it was in our notes we have mentioned it we had like our contribution was there and since it's 24:53 24 minutes, 53 seconds the first year the European Union doesn't allow to take the dividend on the profits first year next year it will be due 25:00 25 minutes okay okay that is great and any any issues on the sales in April and May to Middle East right now because it kind of 25:09 25 minutes, 9 seconds contributes the majority portion of our export revenue so Oh major it's not majority it's a divided 25:17 25 minutes, 17 seconds in all our regions yeah know we face some challenges but now we have found a different route where we can uh supply 25:25 25 minutes, 25 seconds our materials to those areas as I told my in my earlier statements we are looking via Saudi Arabia and to pass on 25:32 25 minutes, 32 seconds the consignments in those areas and they are agreeing to take on the kind of extra charge on the logistics that is being added 25:39 25 minutes, 39 seconds yeah some some yeah yeah you have read some government notification also some portion of this is going to be reimbured 25:46 25 minutes, 46 seconds by the government of India some small portion will be and some government buyer okay and on the aluminum and plastics 25:56 25 minutes, 56 seconds also you mentioned that there's sourcing difficulties so are we able to kind of find alternative channels for those as well for raw mater 26:05 26 minutes, 5 seconds yeah yeah raw material there's not much issue here only the packaging but like plastic is a major component and aluminium so that we have various speakers from uh China. 26:20 26 minutes, 20 seconds Yeah, that is it from my side. Thank you. Thank you. 26:25 26 minutes, 25 seconds Reminder to all the participants that you press star N1 to ask the question. 26:32 26 minutes, 32 seconds And next question from the line of Tri Vikram Gupta from who is an individual investor. Please go ahead. 26:40 26 minutes, 40 seconds Yeah. Hi. uh firstly uh I just wanted to understand a bit on the uh receivable 26:47 26 minutes, 47 seconds side. So we actually see receivables from FI25 to FI26 have stayed at similar 26:55 26 minutes, 55 seconds levels but if we compare to FI 24 numbers there is a huge jump in receivable. So I just wanted to 27:02 27 minutes, 2 seconds understand uh the underlying reasons behind this. 27:08 27 minutes, 8 seconds Yeah. uh the receipts if I compare to previous financial year that is March 25 27:15 27 minutes, 15 seconds at 173 last year this year we are at 11.5 so there is an improvement in number of days yes 27:22 27 minutes, 22 seconds reserve business this year yeah so I want but if you see last to last year uh the receivables were 27:30 27 minutes, 30 seconds considerably less so why has this part in receivables come yeah so if I see the turnover for last to last year the turnover was too low. 27:41 27 minutes, 41 seconds We were at around 54 and we were still growing from that stages. So as we grow further this number may vary even further. 27:52 27 minutes, 52 seconds Okay. But uh sort of sales has grown by 14 crores and receivables have grown by 27:59 27 minutes, 59 seconds around 10 crores. So I just wanted to get an idea around that. 28:07 28 minutes, 7 seconds So uh dear see uh the receivable numbers may not be in proportion to the increase in the revenues. 28:16 28 minutes, 16 seconds It all depends on my new customers terms of payment with the customers. 28:22 28 minutes, 22 seconds As you uh gentlemen just see we had a sales of the base business was 65 cr and 28:30 28 minutes, 30 seconds the receivable was 11 and a half cr. Okay. And this is just 28:37 28 minutes, 37 seconds uh 2 months 65 days cycle and if you see last year it had gone up to 90 days. So it is it has 28:45 28 minutes, 45 seconds improved. So the entire market is not a cash market or an market. So 60 days is a very fairly good uh for a farmer in 28:54 28 minutes, 54 seconds today's scenario if you're able to receive the uh our receivers within 60 days. 29:01 29 minutes, 1 second U thank you for that. Next question that I have is regarding the infusion plant 29:09 29 minutes, 9 seconds that we have. So you've been guiding for uh great good volume growth from this 29:16 29 minutes, 16 seconds quarter. So u I just wanted to understand when is the timeline when we'll be on a 10 to 15 cr quart 29:25 29 minutes, 25 seconds quarterly run rate. U can you just shed some light on this? 29:31 29 minutes, 31 seconds From second quarter it will be same lines and we have already started ramping up and this quarter will be also a good quarter but analyze we have told 29:40 29 minutes, 40 seconds very clearly that we are going to cross around 60 crores. 29:45 29 minutes, 45 seconds Okay. Is there some quarter that you're expecting that we'll have an inflection point where we can reach 10 to 15 crores? 29:56 29 minutes, 56 seconds It would be difficult to comment on this right now because as I earlier said the we are more focused for the annualized 30:04 30 minutes, 4 seconds numbers and commenting or uh saying anything for the quarter and quarter would be difficult at this juncture 30:13 30 minutes, 13 seconds but definitely uh as we move forward from Q1 to Q4 we will be moving northwards moving. 30:21 30 minutes, 21 seconds Oh. And uh lastly, what uh margin profile are we expecting from our base baseline business going ahead? 30:31 30 minutes, 31 seconds So the baseline uh business the EIT would range around 15.5 to 16.5%age manage. 30:42 30 minutes, 42 seconds Thank you. 30:46 30 minutes, 46 seconds Thank you. We have next question from the line of Rupen Sha who is an individual industry. 31:04 31 minutes, 4 seconds So my first question is that uh the pharmaceutical and injectable space is seeing increase in competition from both like domestic and international players. 31:13 31 minutes, 13 seconds So how are we differentiating on quality or pricing or customer relationship? Uh where is our competitive mode? I want to ask. 31:24 31 minutes, 24 seconds See we are in the industrial business for more than uh almost uh two and a half 25 years more and we have not any 31:32 31 minutes, 32 seconds quality issues and everything and our customer support and our customer tires are more than 15 years old and we have 31:39 31 minutes, 39 seconds been in developing new products every year for this markets and finding new doses every year. So our base business 31:48 31 minutes, 48 seconds is stable and with the customer base it is increasing gradually and we have opening new markets uh every years. 31:59 31 minutes, 59 seconds Okay. Okay. So it's like a legacy and relationship we have. 32:06 32 minutes, 6 seconds Yes. Plus we have more focus on the quality. So that is what is differentiating us plus the turnar around time for deliveries of the 32:15 32 minutes, 15 seconds material with the customers new as well as the past. So that is one more point which is differentiating us from the other players in the market. 32:23 32 minutes, 23 seconds Okay. Okay. Uh can you use any players direct like appletole comparison player? 32:32 32 minutes, 32 seconds It would be difficult to comment on other peers for an apple to apple comparisons because the markets which we 32:39 32 minutes, 39 seconds deal the products which we deal may or may not be the similar markets and the products for them as well. 32:45 32 minutes, 45 seconds Okay. So any few if you want to mention that yeah I didn't get the last sentence 32:54 32 minutes, 54 seconds which you mentioned. I mean any few if it's not an apple to apple but any business vertical uh we are you know 33:01 33 minutes, 1 second similar with them so any peer you would like to mention uh like see there is a company life 33:09 33 minutes, 9 seconds science is there okay and uh these are the companies they do what similar portfolios 33:17 33 minutes, 17 seconds and similar cannot be 100% similar but they okay okay uh my second question Have you 33:25 33 minutes, 25 seconds seen any pricing pressure in your uh sport market that in the past years or have you are you managing without 33:34 33 minutes, 34 seconds packetizing margin that's the case? No, we are not importing much of our material 33:42 33 minutes, 42 seconds import contribution is less than 1% of the total. Okay. 33:50 33 minutes, 50 seconds Thank you. And my sorry for the disability. 33:59 33 minutes, 59 seconds Third question. Sorry. Sorry. Yeah. My actually third question is uh could you give us a phase of our current working 34:06 34 minutes, 6 seconds capital cycle like data days or inventory days and there's there's a disturbance from your side. 34:14 34 minutes, 14 seconds Please uh there's a call coming to you either. We are not able to hear you. 34:19 34 minutes, 19 seconds Sorry. Let me repeat my question that would you give us the sales of your current working capital cycle like data days, inventory days. 34:29 34 minutes, 29 seconds Uh see the data days uh as I said earlier also we are improving year on year uh we would continue to improve. So 34:38 34 minutes, 38 seconds right now from this financial year uh financial year the data days were around 65 to 70 days. We would be in the range 34:46 34 minutes, 46 seconds of 55 to 60 in the coming periods. uh the creditors will also improve because 34:53 34 minutes, 53 seconds uh the more we have a fleet cash flow we can better manage the creditors and get higher discounts if at all. So this is 35:01 35 minutes, 1 second how the working capitals will go uh look like going forward. 35:06 35 minutes, 6 seconds Okay. Any any strange point uh there are especially in given high expectations? 35:13 35 minutes, 13 seconds No. 35:15 35 minutes, 15 seconds Okay. Okay. And when do you think uh when do you think about five years from now as our future? Where does we look at 35:24 35 minutes, 24 seconds like you know revenue or geographics or any product profile? 35:29 35 minutes, 29 seconds Uh so it's a too long a period to comment right now. So we won't be commenting commenting right now anything beyond a year. 35:39 35 minutes, 39 seconds Okay. Okay. 35:41 35 minutes, 41 seconds Fine. Just uh let me get back to the queue again. Thank you for answering the questions. Thank you. 35:48 35 minutes, 48 seconds Thank you. Reminder to all the participants that you have pressed R1 to ask a question. We have next question 35:54 35 minutes, 54 seconds from the line of San Shura Karn from Financial Fitness. Please go ahead. 36:01 36 minutes, 1 second Uh thank you. So sir, what is the contribution of release for our top line? 36:12 36 minutes, 12 seconds So it's in the range of 40 to 45 percentage region. So when we say middle east we 36:21 36 minutes, 21 seconds say middle east and Africa region go both. 36:24 36 minutes, 24 seconds Oh all right. Okay. And can you please quantify the impact of this raw material price hike on the margin? 36:35 36 minutes, 35 seconds Raw money price has increased though in the month of March it was it had skyrocketed 36:41 36 minutes, 41 seconds abnormally due to the uh war and certain speculation in the market who has a material they jack up the prices but now 36:49 36 minutes, 49 seconds it is settling down and we are covered and we know we usually keep inventory of almost two months 36:58 36 minutes, 58 seconds okay I mean if this price continues or sustain will we be able to pass on the 37:06 37 minutes, 6 seconds uh raw material price increase to the customers. 37:09 37 minutes, 9 seconds Yes. Yes. Yes. We are very well aware of and we have done the same in the past also uh during co times also we had passed on this one to the customers. 37:19 37 minutes, 19 seconds Thank you. And for the Pune IV facility how many products are currently approved and how many are in the pipeline? 37:28 37 minutes, 28 seconds Currently we have five approval and 18 are in the pipeline. 37:34 37 minutes, 34 seconds And uh what could be a timeline for the uh approval you know which are in the pipeline? 37:41 37 minutes, 41 seconds The pipeline approval should have come in the month of February in March but due to the issues in the approval process and uh 37:51 37 minutes, 51 seconds transfer of people in the government it takes some time but we expect a quite chunk of approval in this month only 37:58 37 minutes, 58 seconds and now the approval process initially it used to be very easier now if anybody who 38:07 38 minutes, 7 seconds started a new plant and getting approval it is taking people two two years with three years since we are in this field and injectable to many years so it was 38:16 38 minutes, 16 seconds easier for us to get it but though it took some time and now we are in the line with this excellent thank you and when you 38:24 38 minutes, 24 seconds projected a topline of around 60 crores from this IV line so are you considering doing you know this 18 products which 38:33 38 minutes, 33 seconds are in the pipeline as well to contribute not not full 18 from that 18 maybe 38:43 38 minutes, 43 seconds All right. Thank you. That's all from my side. Thank you. 38:49 38 minutes, 49 seconds Reminder to all the participant that you press star and one to ask the question. 38:54 38 minutes, 54 seconds The next question from the line of Shaki Sinde from Shency. Please go ahead. 39:03 39 minutes, 3 seconds Hello. Am I on? Yeah, you are on. I have two questions. 39:12 39 minutes, 12 seconds I don't mean at 16. Uh perfect at 16. Your voice is your voice is not clear. 39:20 39 minutes, 20 seconds Voice is not clear. They're not able to hear us. 39:23 39 minutes, 23 seconds Ma'am, can you uh come closer to the No. Uh sir, my question is on margins on ibida margins. Uh I I think this we 39:32 39 minutes, 32 seconds reported softer margin compared to the polar margin. So uh my question is to understand what will be the margin before I release everything. 39:44 39 minutes, 44 seconds So this the big business we made the margin will be increasing as we have been in this uh similar market and the last 39:53 39 minutes, 53 seconds hookups were there for the month of February and March and our many approvals are expected in this month and 40:00 40 minutes by this quarter. So newer and good higher person than again for the fat if we look we have 40:10 40 minutes, 10 seconds lower your mic is crashing we are not able to hear a single word your voice is cracking your are you able to hear me now sir are you 40:18 40 minutes, 18 seconds able to hear me now yes now a little better yeah okay so my next question is again 40:25 40 minutes, 25 seconds on margin on pat margin which is like a lower compared to the full 40:31 40 minutes, 31 seconds So could you just uh walk us through a key drivers of that gap and whether any of those are onoff in nature. 40:43 40 minutes, 43 seconds See the pat margins are derived from thea margins only. So the way my debita margins will vary the similar variance 40:53 40 minutes, 53 seconds would be also visible in the pat margins. So as we said key we have some good products which are expected with 41:01 41 minutes, 1 second higher epida margins. So if those come into and as I already provided the guidance scheme the base business would 41:08 41 minutes, 8 seconds have an epic margin of 15.5 to 16.5 percentage range. So accordingly the pat margins will also reflect going forward. 41:18 41 minutes, 18 seconds Okay. And as a new pave plant scaler how do you expect the fixed c absorbation to play? Okay. And what is your medium-term margin target for the business? 41:32 41 minutes, 32 seconds Uh ma'am for even for Pune uh we have said key for the whole year we would be looking at a number of around 60 grows 41:39 41 minutes, 39 seconds on the top line and with an AIA margin in the range of 17 to 18%. So this will play out throughout the quarters. Maybe 41:48 41 minutes, 48 seconds a quarter or two we may see initial two quarters we may see a low of AIA or strain on margins because the plant is 41:55 41 minutes, 55 seconds newer the expenses would be higher but as we scale up in Q3 Q2 and Q4 uh the 42:02 42 minutes, 2 seconds margins would be better and we will we would end up the whole year at around 17 to 18% of a plan for Pune plant actually. 42:13 42 minutes, 13 seconds Thank you so much. Thank you and good. Thank you. Thank you. 42:21 42 minutes, 21 seconds We have next question from the line of vinosa from VS Master. Please go ahead. Yeah. Hello sir. Uh I'm audible. 42:31 42 minutes, 31 seconds Yeah, you are audible. Yeah. 42:33 42 minutes, 33 seconds Um so sir, uh manufacturing you highlighted the manufacturing team. So could you walk us through like some 42:40 42 minutes, 40 seconds specifically operational changes or process in improvements that you made in FI26 and uh that could structurally improve our margin. 42:53 42 minutes, 53 seconds uh see uh improvement of margins come from various sources as everybody knows and even you know uh 43:02 43 minutes, 2 seconds but as far as the structural changes we are very closely monitoring our input cost the API the packing material cost 43:10 43 minutes, 10 seconds so that the margins which we are targeting should be delivered to you. Okay. Okay. 43:18 43 minutes, 18 seconds And are we able to pass on the input cost or are we like uh uh taking a gate on our PM? So how is it? 43:28 43 minutes, 28 seconds Yes, we are able to pass on because we don't have a long-term contract with our buyers wherein we are stuck for the price fixation. So our price part is 43:37 43 minutes, 37 seconds open depending on the international price reveals and rates. Okay. 43:44 43 minutes, 44 seconds Thank you. 43:47 43 minutes, 47 seconds Thank you. That was the last question. I now had confess over to Mr. Karant Takur for closing comments. 43:58 43 minutes, 58 seconds Uh yes. Uh thank you everyone for joining the conference call of Sanjuni parental living. If you have any further 44:05 44 minutes, 5 seconds queries you can write to us at research direct.com. 44:10 44 minutes, 10 seconds Once again thank you everyone for joining the conference. 44:16 44 minutes, 16 seconds Ladies and gentlemen on behalf of green advisor that conclude this conference. 44:22 44 minutes, 22 seconds Thank you for joining us and you noticed. Thank you.