Senores Pharmaceuticals Ltd — Q4 FY26

Senores Pharmaceuticals Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=-B6DfID-Jks Published: 14 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to Sellerist Pharmaceuticals Limited Q4 FY26 earnings conference call hosted by Ambbit Capital. 0:12 12 seconds This conference call may contain forward-looking statements about the company which are based on beliefs, opinions, and expectations of the company as on the data of this call. 0:22 22 seconds These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant 0:30 30 seconds lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:38 38 seconds during the conference call, please signal an operator by pressing star then zero on it at touchstone phone. Please note that this conference is being 0:46 46 seconds recorded. I now hand the conference over to Mr. Gorav Pinani from Ambit Capital. 0:52 52 seconds Thank you and over to you sir. 0:56 56 seconds Yeah, thank you. Uh good evening everyone. On behalf of Ambit Capital, we welcome you all on the Q4 and FI26 1:05 1 minute, 5 seconds earnings conference call for Senis Pharmaceuticals Limited. Today on the call, we are joined by Mr. Smil Sha the promoter and managing director, Mr. 1:16 1 minute, 16 seconds Sanjay Majmodar, the chairman and Mr. 1:19 1 minute, 19 seconds Deal Sha, the chief financial officer of Senores Pharmaceuticals Limited. We will begin the call with opening remarks from 1:27 1 minute, 27 seconds the management followed by a question and answer session. Thank you and over to you sir. 1:34 1 minute, 34 seconds Yes, thank you. U good evening everyone. 1:37 1 minute, 37 seconds Uh thank you for joining us on Senate Pharmaceuticals Limited Q4 and FY26 earnings conference call. We have 1:46 1 minute, 46 seconds uploaded our results. Let's release an investor presentation on stock exchanges and companies website. Guided by our 1:54 1 minute, 54 seconds well-defined strategies and strong execution capabilities, we delivered a robust performance across segments during the quarter and throughout FI26. 2:04 2 minutes, 4 seconds Our focus on operational discipline and consistent execution along with sustained momentum in key growth areas 2:11 2 minutes, 11 seconds and our diversified business verticles enabled us to maintain healthy business performance despite an uncertain 2:18 2 minutes, 18 seconds operating environment. The diversity of our business across vertical geographies provides tremendous resilience in 2:25 2 minutes, 25 seconds challenging market conditions but has also helped strengthen our overall performance. For FI26, we achieved 2:33 2 minutes, 33 seconds approximately 62% revenue growth and 108% patch growth over FI25, showcasing 2:40 2 minutes, 40 seconds the strength of our business model and our execution excellence. Total revenue stands at about 663 crores with a profit 2:48 2 minutes, 48 seconds of 122 crores. This clearly surpasses our guidance for the year. It is gratifying that even after eight 2:57 2 minutes, 57 seconds quarters after our IPO, we continue to deliver performance ahead of our stated commitments despite an uncertain 3:05 3 minutes, 5 seconds environment. This consistency reflects the credibility of our long-term strategy and the strong execution 3:13 3 minutes, 13 seconds culture embedded across the organization. We remain optimistic about sustaining this momentum in the years to 3:20 3 minutes, 20 seconds come. Our confidence is supported by a robust product pipeline, expanded manufacturing capacities and standard 3:28 3 minutes, 28 seconds R&D infrastructure coupled with our proven ability to identify develop commercialized niche products in 3:35 3 minutes, 35 seconds developed markets as well as our deep understanding of market dynamics. We believe we will continue to outperform 3:41 3 minutes, 41 seconds industry growth trends. In parallel, we have continued to diversify our product portfolio, geographic presence by 3:50 3 minutes, 50 seconds strengthening our reach in emerging and domestic markets, thereby creating additional revenue for sustainable long-term growth. We are consciously 3:59 3 minutes, 59 seconds building a balanced revenue mix to ensure that over the past 18 months we have made significant investments in expanding our product market and 4:07 4 minutes, 7 seconds entering manufacturing R&D capacities broadening our global footprint onboarding experienced industry professionals across critical functions 4:16 4 minutes, 16 seconds which will fetch huge benefits in the future. With a strong foundation differentiated capabilities and a clear 4:22 4 minutes, 22 seconds growth growth map, we are confident in our ability to continue delivering similar performance in FI27 and beyond. 4:31 4 minutes, 31 seconds For FI27, our initial outlook indicates our revenue growth of approximate 30 to 40%. And our P growth of about 50 to 4:39 4 minutes, 39 seconds 60%. This confidence is supported by robust order pipeline and a clear visibility on upcoming product launches 4:47 4 minutes, 47 seconds over the coming over the coming quarters. 4:52 4 minutes, 52 seconds Speaking about the segmental performance revenue from the regulated market registered a robust growth of 83% Y in 5:01 5 minutes, 1 second FI26 driven by expansion of our product portfolio product selection of sales challenge and differentiated 5:10 5 minutes, 10 seconds go to market strategies. Our A&D portfolio continues to stand through a combination of in-house development initiatives and strategic acquisitions. 5:19 5 minutes, 19 seconds As of March 2026, we had a portfolio of 51 approved ANDAS collectively covering 5:26 5 minutes, 26 seconds more than 150 product trends. Over the past year, our approved ANA portfolio has more than doubled, increasing from 5:32 5 minutes, 32 seconds 22 ANDAs in March 25 to 51 approved ANDAS in March 26, reflecting the scale and the pace of our execution. Out of 5:41 5 minutes, 41 seconds approved product portfolio 20 andds have already been commercially launched while an additional 30 approved ANDDAS covering over 30 strengths will be 5:50 5 minutes, 50 seconds launched over next few quarters. Beyond our approved product portfolio we have we currently have 27 molecules involving more than 60 strengths under various 5:59 5 minutes, 59 seconds stages of development. This broad and differentiated product pipeline provides strong visibility for growth over next 6:06 6 minutes, 6 seconds 24 months. Our team continues to identify available products that stand in our pipeline and provides sustainable growth visibility over years to come. 6:15 6 minutes, 15 seconds Our CDM CMO segment is also witnessing steady momentum and growing traction. A key differentiator of this business lies 6:23 6 minutes, 23 seconds in our ability to offer end toend solution to customers. training, product development, scaleup, exhibit, batch manufacturing, supply chain planning, 6:31 6 minutes, 31 seconds commercial production, comprehensive regulatory support covering both pre and post approval requirements. Our CDMO 6:38 6 minutes, 38 seconds business compromises of specialty complex and NDAs application with Firefly D2 and other differentiated 6:46 6 minutes, 46 seconds formulation strategies. Our co our CMO business not only helps absorb a 6:53 6 minutes, 53 seconds significant portion of our operating cost but also drives large scale volumes thereby creating meaningful oper operating leverage for the company. In 7:02 7 minutes, 2 seconds this segment we partner with several market global and domestic leaders reinforcing confidence in our capabilities to consistently deliver 7:11 7 minutes, 11 seconds highquality products on time and with a competitive price. Speaking about recent developments, we acquired 75% stake in 7:18 7 minutes, 18 seconds Applian Farming Cup for by 26 with the remaining 25% is expected by end of this year. The plant acquisition with its USF 7:27 7 minutes, 27 seconds approved manufacturing facility provides significant strategic advantages establish a strong platform for long-term sustainable growth. The 7:36 7 minutes, 36 seconds relatively new facility equipped with multiple pre-constructed clean rooms and and expansion ready infrastructure 7:43 7 minutes, 43 seconds enhances our manufacturing capacity and operational flexibility while India based manufacturing enables cost efficiency. Additionally, the 7:51 7 minutes, 51 seconds diversified manufacturing footprint standards scalability accelerates product commercialization and enhances 7:59 7 minutes, 59 seconds our ability to pursue broader range of CDM or CM opportunities across both facilities. Beyond the US, this facility 8:07 8 minutes, 7 seconds is also approved by UK H Canada, Health Canada uh which enables immediately to leverage upon current existing approval 8:15 8 minutes, 15 seconds in this markets. We have already commenced products roll out from this facility. Revenue for uh this quarter 8:24 8 minutes, 24 seconds from this facility was modest. However, we have already started significant commercials from this quarter onwards. 8:30 8 minutes, 30 seconds In line with our our strategy to deepen our presence in US market, we acquired Soraya Pharmaceuticals as a step down 8:38 8 minutes, 38 seconds subsidiary in Q3 FI26, bolstering our marketing and distribution strength in the US. SA manages full cycle 8:46 8 minutes, 46 seconds pharmaceutical commercialization with the partner team bringing over a decade of sales and marketing experience and 8:53 8 minutes, 53 seconds commercialization in the US. In April we we entered into a strategic agreement on 9:00 9 minutes a joint venture called Ammerin marking a significant strategic milestone for several US operations. This partnership 9:07 9 minutes, 7 seconds enables us into high barrier US government procurement markets positioning us to supply our portfolio to the US federal government veteran 9:15 9 minutes, 15 seconds affairs and military programs. Our experienced partners bring expertise in government procurement and liending will help us leverage specialized credential 9:24 9 minutes, 24 seconds for long-term asset contracts and FSS uh tenders. Overall, all the initiatives that we have taken are to scandle and 9:32 9 minutes, 32 seconds solidify our US uh uh operations which are more strategic to us. Moving to emerging market business, emerging market revenue grew by 20% in FI26. 9:42 9 minutes, 42 seconds IBITA margin has improved towards uh low to mid double digits range. We achieved our highest stable quarterly revenue 9:49 9 minutes, 49 seconds IITA impact in emerging market business in Q4. Importantly the business is now cash flow positive and Q4 IITA which is 9:56 9 minutes, 56 seconds notably was 18 18 to 19%. Uh which we think that will be continued IITA percentage for our emerging market 10:04 10 minutes, 4 seconds business going forward. A shift towards niche molecules refined go to market strategies is driving improvements across key metrics in emerging markets including better pricing and margins. 10:15 10 minutes, 15 seconds Overall emerging market business is demonstrating steady momentum in both growth and profitability. We are also in the process of obtaining fixed approvals 10:24 10 minutes, 24 seconds for our emerging market facility by uh by June July of this year. This approvals will enable us to put into key 10:32 10 minutes, 32 seconds mid-tier market some of them in in like South Africa, Vietnam and so on so forth. Um coming to India business, our 10:40 10 minutes, 40 seconds branded generic business segment continued to build on the strong momentum witness over past few quarters. 10:46 10 minutes, 46 seconds Revenue for FI26 stood at about 40 crores growing nearly five times from FI25. This growth was driven by 10:54 10 minutes, 54 seconds expansion of our field force and broader mark portfolio enabling us to strengthen our reach both wider and deeper across India. We have also commenced supplies 11:03 11 minutes, 3 seconds to several marquee hospitals across the country providing providing us with a steady revenue visibility while creating opportunities to deepen engagement and 11:12 11 minutes, 12 seconds existing with with existing clients and external customers based products on a consolidated basis. We continue to remain strong focus uh continue to 11:20 11 minutes, 20 seconds maintain a strong focus on cash flow generation with an operating cash flows demonstrating a steady upward trajectory. Despite a very high business 11:29 11 minutes, 29 seconds growth, our return to operating cash flow conversion has improved meaningfully compared to last year reflecting enhanced operational 11:37 11 minutes, 37 seconds efficiency discipline working capital management. Our cash flow performance has shown consistent and sustainable improvement and we remain confident of 11:46 11 minutes, 46 seconds maintaining and further strengthening this metrics going forward. Also, we see a long and promising growth trajectory 11:53 11 minutes, 53 seconds for senoras and are well positioned to capitalize on the same with our deep industry experience and extensive exper 12:01 12 minutes, 1 second experience deep industry expertise and extensive experience. We are confident in our ability to continue driving 12:08 12 minutes, 8 seconds sustainable and profitable growth in years to come. 12:14 12 minutes, 14 seconds With that, I would like to hand over the call to Mr. Deal Sha, our chief financial officer to take you through the financial and operational performance. Thank you and over to you. 12:25 12 minutes, 25 seconds Thank you. 12:27 12 minutes, 27 seconds A warm welcome to everyone on our Q4 and FI26 calls. I'd like to take you through our financial and operational 12:34 12 minutes, 34 seconds performance for the quarter end and year ended 31 March 2026. 12:41 12 minutes, 41 seconds Starting with the quarterly performance consolidated income for Q4 of 26 stood at 190 cr reflecting a strong growth of 12:49 12 minutes, 49 seconds 66% on the Y basis driven by robust growth in regulated markets. Revenue 12:56 12 minutes, 56 seconds from regulated market grew by 83% Y and came to 118 crores. 13:02 13 minutes, 2 seconds This was driven mainly by product portfolio expansion. 13:07 13 minutes, 7 seconds Revenue from emerging market grew by 26% and stood at 20 y and stood at 20% in 20 Q4 of 2026. 13:17 13 minutes, 17 seconds India branded business doubled on a Y basis with the revenue coming to around 9 crores. Consolidated ITA for Q4 62 13:26 13 minutes, 26 seconds crores growing more than three times on a Y basis. ITA margin came at 32.7% 13:32 13 minutes, 32 seconds improving to almost 1151 bps. Y profit after tax and minority interest 13:40 13 minutes, 40 seconds for the quarter grew by 78% Y and came to approximately 32 crores. 13:46 13 minutes, 46 seconds Speaking on the full year performance, consolidated income for FI264 crores is flagging a strong growth of 13:55 13 minutes, 55 seconds 62%. Y revenue from regulated markets for FI26 14:01 14 minutes, 1 second stood at 427 crores going by growing by 75%. 14:07 14 minutes, 7 seconds Revenue from emerging market grew by 20% while stood at 145 crores. 14:15 14 minutes, 15 seconds Revenue from India branded business grew almost five in FY 26 and stood at around 40 crores. 14:23 14 minutes, 23 seconds Consider that for 2026 stood at around 200 crores more than doubling it from FI25. 14:31 14 minutes, 31 seconds Capital margin improved by 527 BPS y and stood at 30%. 14:38 14 minutes, 38 seconds profit after tax and minority interest for 2026 22 crores more than doubling on a y basis. 14:48 14 minutes, 48 seconds We are maintaining a strong focus on cash flow generation. Operating cash flow for 25 26 stands at around 75 14:55 14 minutes, 55 seconds crores showing a significant improvement over last year. 15:00 15 minutes To summarize, we have witnessed a strong performance across segments during the year. You have delivered on our guidance of 50% revenue growth and 100% tax 15:09 15 minutes, 9 seconds growth for the year 2026. 15:14 15 minutes, 14 seconds You're in position to continue healthy momentum and are confident of delivering sustained profitable growth going forward. 15:21 15 minutes, 21 seconds With this, I would like to open the floor for questions. Thank you. Thank you very much sir. 15:29 15 minutes, 29 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. 15:38 15 minutes, 38 seconds If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 15:48 15 minutes, 48 seconds Ladies and gentlemen will wait for a moment while the question queue assembles. 15:57 15 minutes, 57 seconds Participants to join the question queue you may press star and one question is from the line of Tarun 16:05 16 minutes, 5 seconds Krishna from I thought PMS please go ahead. 16:10 16 minutes, 10 seconds Uh thank you for the opportunity. Uh my question is on so based on our older filings I find that there was a source 16:17 16 minutes, 17 seconds product segment within the architected product segment. Can you please comment on how has that evolved over the years? 16:25 16 minutes, 25 seconds I think your voice is not clear. You said source product and architect. 16:32 16 minutes, 32 seconds Can you repeat your question please? 16:35 16 minutes, 35 seconds Yeah. Yeah. So based on our older filing I find that we had a source product segment within the regulated markets. So 16:43 16 minutes, 43 seconds can you please comment on how has that segment evolved over the years? Yes. Go ahead. 16:48 16 minutes, 48 seconds Yes. Hi. So um thank you Peru for your question. Um so this is uh usually the 16:55 16 minutes, 55 seconds squad business that has been done uh the business has more or less remained consistent and we don't expect any any 17:03 17 minutes, 3 seconds further growth from that particular business so to speak. Um it's it's all spot business that we are able to uh we 17:11 17 minutes, 11 seconds are able to do through our network uh within the US. 17:17 17 minutes, 17 seconds Got it. And as of now, how much is that as a percentage of total revenue? 17:24 17 minutes, 24 seconds 10 to 12%. 17:27 17 minutes, 27 seconds Got it. And uh the next question on the working capital uh it has been 114 days 17:33 17 minutes, 33 seconds as of uh 2025. Uh as of 2026 it has gone to 187 days. So uh why has this uh jump 17:42 17 minutes, 42 seconds happened and what do you expect as a steady state? 17:51 17 minutes, 51 seconds I think we have uh held the thing coming in this last quarter. 17:58 17 minutes, 58 seconds So the working has shown that jump has not come in from up. 18:04 18 minutes, 4 seconds So that has inserted our phone paper. It is also around if we take out it is around 104 days networking cycle. 18:14 18 minutes, 14 seconds Understood. And going forward you see up reaching the console level uh uh working capital days. 18:25 18 minutes, 25 seconds No I think we see coming in from next year mean current year now. So it will be at par with our current operating cycles. 18:33 18 minutes, 33 seconds Operating nothing different. 18:36 18 minutes, 36 seconds Okay, thank you. That is it for my Thank you participants. To ask a question, you may press star and pand. 18:47 18 minutes, 47 seconds Next question is from the line of matri from choice institutional equities. Please go ahead. 18:54 18 minutes, 54 seconds Uh hi, congratulations on a great set of numbers. Just two questions from my end. 18:59 18 minutes, 59 seconds Uh we've mentioned at least 30 andda launches. uh can you tell me how much of these are expected to be CGD products 19:06 19 minutes, 6 seconds and uh second on the margins front uh margins has come around come in around 26.5 uh what kind of margins are we looking 19:14 19 minutes, 14 seconds at going forward from 27 onwards that's all yes I I thank you uh so exact CGP number 19:24 19 minutes, 24 seconds would be difficult to uh difficult to demonstrate right now but quite bit of uh product that we have that would 19:31 19 minutes, 31 seconds qualify for CG2. Uh and some of those products are first to first to launch, first to market. Uh there we can we can 19:39 19 minutes, 39 seconds specifically give you a number what would qualify for CGT in subsequent discussions. Uh that is one. Uh the second is for the margin. I think there 19:48 19 minutes, 48 seconds there about 100 basis point being being suppressed because of uh acquisition of 19:55 19 minutes, 55 seconds upnar where we've incur we have incurred the expenses over last 3 months but the 20:02 20 minutes, 2 seconds subsequent revenue has not come in uh as of as of last quarter which we are already seeing coming in this quarter from April onwards right so I feel 20:11 20 minutes, 11 seconds planned where we've guided 29 to 31% of the bitter margin which we probably would see in in coming quarters is upnar 20:19 20 minutes, 19 seconds will start giving us about uh the revenue that we anticipate. So for the full year we expect upna to give us about 100 kores 80 to 100 crores of 20:27 20 minutes, 27 seconds revenues from that particular plant and that will be that is already started giving us from this last month onwards. 20:35 20 minutes, 35 seconds So we already made commercial shipments. 20:37 20 minutes, 37 seconds There have been shipments have already gone to US. As we speak more shipments are going on. Uh and that means ramp up uh will already started from month of April. 20:47 20 minutes, 47 seconds Um is it okay? 20:55 20 minutes, 55 seconds Yes, that help. Thank you so much. Thank you. Thank you. 21:02 21 minutes, 2 seconds Next question is from the line of Rashikesh Rajes Sha from Alcami Capital. Please go ahead. 21:11 21 minutes, 11 seconds Hi. Uh am I audible? 21:14 21 minutes, 14 seconds Yes, please go ahead. Yes. Uh thank uh good set of numbers sir. So I had just one question. It say look at our balance 21:22 21 minutes, 22 seconds sheet. There's one line item other financial assets. So if you look over the years this has kept on increasing. 21:29 21 minutes, 29 seconds Last year it was 116 crores. This year FY26 it's at 172 crores. And if I look 21:36 21 minutes, 36 seconds at last year's balance sheet, this figure was actually unbuilt revenue. So if you can explain us what this actually means. 21:47 21 minutes, 47 seconds Yes. Um Rishikesh. So Rishikesh the way the business is structured is you know we we are in a B2B uh B2B business 21:56 21 minutes, 56 seconds wherein goods that we supply are uh build at a cost plus margin basis. So we 22:04 22 minutes, 4 seconds don't realize the complete net pricing of that goods until and goods are being being uh being sold in the marketplace 22:11 22 minutes, 11 seconds that we are in. So the part of the revenue each goods that is being sold is already been been considered in our uh 22:20 22 minutes, 20 seconds P&L but however the goods profit been sold been categorized as those other assets that you will see on the books. 22:28 22 minutes, 28 seconds So as we ramp up and as the product gets commercialized this this amount will probably be at some point of time we'll 22:35 22 minutes, 35 seconds plateau it and then we'll start decreasing but since over last few quarters there have been lot of launches have happened that's why you see that 22:43 22 minutes, 43 seconds amount that is that has increased from last year to this year uh which is subsequent quarter I think it will reach to a level and then it will start coming down as we speak. 22:53 22 minutes, 53 seconds So uh so if you can help me understand the is this a volity part or 23:00 23 minutes what part is this unbuilt revenue? So it's quite hard to understand that it's going up every quarter 23:09 23 minutes, 9 seconds I think with the new as he explained with the new launch fields. 23:12 23 minutes, 12 seconds Yeah. But when we launch a product I think as per India has to recognize the revenue and they recognize it right. So 23:22 23 minutes, 22 seconds my collection as he says the profit share will come in gradually it is collected. It is nothing to do 23:30 23 minutes, 30 seconds with warranty. It is not warranty or royalty or nothing like that. There's no warranty. 23:36 23 minutes, 36 seconds Okay. Conceptually the revenue that is due as a profit share is booked as income and it is parked as a financial asset till it is realized. 23:47 23 minutes, 47 seconds And usually what is the period between you booking at and when you start getting the money for this? Usually what is the difference? 23:57 23 minutes, 57 seconds Typically it can be anywhere between one or two months to maximum 6 months. 24:03 24 minutes, 3 seconds Okay. Got it. Okay. Yeah, that's all from my channel. Thank you, sir. Thank you. 24:10 24 minutes, 10 seconds Thank you. 24:13 24 minutes, 13 seconds Next question is from the line of Sumit Gupta from Antique Stock Broking. Please go ahead. All right. I'm audible. 24:22 24 minutes, 22 seconds Yes. Yes. 24:25 24 minutes, 25 seconds Uh congrats on the great set of numbers sir. Uh so I have a few questions. So first is like you mentioned a bit for emerging markets is nearly around 20%. 24:34 24 minutes, 34 seconds So how like how should we see the margins going forward over the next three to four years at least and what can be the optimal margins in the segment? 24:44 24 minutes, 44 seconds Yes. Yes. I so thank you for your question. So emerging market we anticipate uh next year our projection 24:51 24 minutes, 51 seconds is about 180 uh within 180 crores of revenue that we are looking to get from emerging markets. uh as I stated in my 24:59 24 minutes, 59 seconds opening remarks the last quarter our income margin uh stood at about 18 to 19% on emerging market as we add another 25:07 25 minutes, 7 seconds 10 20 cr 30 40 cr of revenue as we move forward I think the margin will sustain at 181 19 maybe add another 100 200 25:16 25 minutes, 16 seconds basis points so may can um settle at about 20 21% on iota so we feel that is 25:23 25 minutes, 23 seconds the optimum number that that next year we can look at emerging market on on an IITA basis. Uh probably once we cross 25:32 25 minutes, 32 seconds about 220 250 crores then we will probably see another 200 300 basis point jump in emerging market uh margins. Just 25:39 25 minutes, 39 seconds to give you a little more perspective uh when we started I mean probably about a year year and a half back 25:47 25 minutes, 47 seconds per unit realization on emerging market capacity was about 1 rupe 20 pesa which we are already about 1 rupe 90 pesa. You 25:55 25 minutes, 55 seconds can see that significant about 60 70% jump realization with the same capacity that we have now on on emerging market 26:04 26 minutes, 4 seconds uh unit metrics. So which we feel that will continue to improve as we move forward and we get more products and we have more than 4,000 products u under 26:13 26 minutes, 13 seconds under approval u uh registration approval for emerging market. Uh so that's a significant growth that we also 26:20 26 minutes, 20 seconds anticipate out of emerging market in in in quarters to come. 26:26 26 minutes, 26 seconds Okay. Uh and next question is up. So like what kind of uh revenue and a bit we can uh see over the next two two to three years. 26:38 26 minutes, 38 seconds So this u this year we did about two and a half three crores of um uh revenue last three months it was again we just 26:46 26 minutes, 46 seconds we could make only two shipments uh one to US and one to UK um and this quarter 26:53 26 minutes, 53 seconds as we speak we we are we are expecting revenue to be around uh 15 15 to 20 crores 10 to 10 to 20 kores um from a 27:03 27 minutes, 3 seconds plant facility and shady said maybe full year we are looking at it about 80 to 100 crores. As far as upnar is concerned in two to three year time frame we we we 27:12 27 minutes, 12 seconds feel we should be able to do about 180 to 200 crores uh revenue from the upnar facility. Of course it will require a little bit of more expansion on on the production suites and so on so forth. 27:23 27 minutes, 23 seconds But I think 180 to two 200 crores in two to three years from is is quite visible as we speak in terms of keeping all the 27:31 27 minutes, 31 seconds products that we are currently making it. There are a lot of site transfer products that are happening and new approvals will come come from plant. So 27:38 27 minutes, 38 seconds that's something which which is visible to us as we speak today. 27:43 27 minutes, 43 seconds Yes sir. So the follow up on this is like the the opportunities that you see for what is the market size opportunity 27:50 27 minutes, 50 seconds for this and uh what exactly will drive this growth? 27:56 27 minutes, 56 seconds So market size opportunity just for upnar will be tough to say right I mean it's it's across the board. We don't look at UPNAR as a as a separate company 28:04 28 minutes, 4 seconds as a separate uh separate opportunity when we look at we look at as a US business console right that includes our facility in the US our facility in India 28:12 28 minutes, 12 seconds and so on so forth so from a from that standpoint total accessible market for our own currently approved products for 28:21 28 minutes, 21 seconds us it it's close to about a billion dollar so with all all 51 odd ends that are going to be commercialized in next 28:30 28 minutes, 30 seconds few quarters out of It's just 20 are there and there are another 27 and areas at a different stage and there's a CDMO CMO segment. So if you see going forward 28:40 28 minutes, 40 seconds as a US uh business for us in next 2 to 3 years time frame that's a significant growth that we anticipate as a company 28:48 28 minutes, 48 seconds building at least 2500 to 3,000 cr of revenue just coming out of US in next next 3 to four years time frame. So 28:56 28 minutes, 56 seconds everything that that we aspire to be become uh about a 3 through 4,000 cr revenue from the US uh as we speak uh 29:06 29 minutes, 6 seconds all efforts are being done products are being mapped uh commercialization are being done so whether we reach or not 29:14 29 minutes, 14 seconds probably in next few quarters will be more visible but we are putting in all the efforts to reach that kind of revenue number from the US uh operation 29:24 29 minutes, 24 seconds now that comp compromise is the Indian operation as well as uh the US plan both put together. 29:31 29 minutes, 31 seconds Understood sir. Thank you. All the best. Thank you. Thank you. 29:39 29 minutes, 39 seconds Next question is from the line of Kash Takur from Ilara Capital. Please go ahead. 29:46 29 minutes, 46 seconds Uh hi, thank you. Uh congratulations on the great set of numbers, sir. Uh so I just wanted uh to ask uh a question on 29:54 29 minutes, 54 seconds tax rate. Uh for FI 27 uh FI25 our tax rate was somewhere around 17% going in FI 26 it's somewhere around 20 23.6%. 30:05 30 minutes, 5 seconds Uh why a drastic jump in this and going ahead what can be a normal tax rate drastic jump is I think US taxes and Indian taxes are at 26% US is at 20 21%. 30:18 30 minutes, 18 seconds So since we have started earning in ratna trace with that exposition on ratna trace which is being affected so overall my 21 30:27 30 minutes, 27 seconds to 23% rate is going to be a long-term thing depending on where I earn the Indian rate standalone is again 26%. 30:42 30 minutes, 42 seconds USA are less than Indian companies also started coming earning the rate as the 30:48 30 minutes, 48 seconds rate has gone up but you can say by 17 18% what you're talking of uh is because 30:55 30 minutes, 55 seconds of the old car losses that we declared in US for which the exclusion was not required 31:04 31 minutes, 4 seconds so going ahead what kind of uh rate we can expect 23 23 questions around 80%. 31:12 31 minutes, 12 seconds Understood. Another booking question. 31:16 31 minutes, 16 seconds What kind of capex we included in FI26 and what we are planning for FI7? 31:22 31 minutes, 22 seconds FI26 is around 230 crores including my acquisition of A and everything. I'm talking of 27 26. 31:31 31 minutes, 31 seconds Okay. Actually yes actual I'm talking of okay and can you break break that round 31:38 31 minutes, 38 seconds how much we have spent acquisition of and how much is the maintenance 31:45 31 minutes, 45 seconds and acquisition is almost 65 rows 60 70 rows 31:53 31 minutes, 53 seconds plus the development beyond the acquisition is also taking place on the same molecule so that is again uh area but everything taken together I'm I'm telling you. 32:05 32 minutes, 5 seconds Understood. And what will be for 97? 32:09 32 minutes, 9 seconds 27 we are expecting around around 200 rows taken together. 32:16 32 minutes, 16 seconds Understood. Uh and the last question uh sir what has been our uh growth rate for CDMO business and uh I I think we have 32:26 32 minutes, 26 seconds not disclosed cuz what kind of we have done from CDMO and CDM and product are almost same we 32:34 32 minutes, 34 seconds continue to do around 50 to 53% of home products and 50 47 48% of CDM together 32:42 32 minutes, 42 seconds and we expect it to continue at the same time two or 3% here and there yes our product will increase this year with the 32:50 32 minutes, 50 seconds launch of more products we have acquired. Wonderful. 32:57 32 minutes, 57 seconds Thank you. Thank you so much. Thank you. 33:02 33 minutes, 2 seconds Next question is from the line of Nishita from Safire Capital. Please go ahead. 33:08 33 minutes, 8 seconds Um yes. Hello. So uh I just wanted a clarification on the uh margin blended margin that you have given. So uh on 33:17 33 minutes, 17 seconds blended basis we can do uh we can do a margin of 29 to 30%. Is that right? 33:26 33 minutes, 26 seconds In fi on yes aa yeah that's yeah it also depends on how you work out your 33:34 33 minutes, 34 seconds because when we work out ouras it is taking all operating other income. get my point. But if you are excluding 33:42 33 minutes, 42 seconds everything then 26 and a half can become around 28 or 28 and a half. 33:49 33 minutes, 49 seconds Okay. Okay. Understood. Understood. And on up you mentioned that we can do a revenue of 100 crores in FY27, right? 34:00 34 minutes Yeah. Yeah. 80 to 100 crores is what uh we have budgeted for the year. Okay. Thank you. 34:13 34 minutes, 13 seconds Thank you. 34:16 34 minutes, 16 seconds Next question is from the line of forum Parik from BB Capital. Please go ahead. 34:23 34 minutes, 23 seconds Thank you for the opportunity. Uh my first question is on our um uh IPO fund. 34:30 34 minutes, 30 seconds Uh so we almost have 100 crores of unutilized funds. So if you can just uh 34:37 34 minutes, 37 seconds help us understand um uh do we plan to utilize this fund in the near term 34:44 34 minutes, 44 seconds towards any more acquisition or any such things? 34:50 34 minutes, 50 seconds Yes I uh forum so that 100 crores of IPO fund is uh is for a specific purpose 34:59 34 minutes, 59 seconds that is already been uh been been given in our DRP. So we plan to start the operations for that particular purpose 35:08 35 minutes, 8 seconds within this year. So I think uh part of it will be utilized this year subsequently going forward for next couple of years in terms of the 35:17 35 minutes, 17 seconds development of our uh sterile uh sterile manufacturing. 35:23 35 minutes, 23 seconds Okay. And uh my second question is on this uh regulated business US business. 35:28 35 minutes, 28 seconds So we have given a guidance of almost uh US uh regulated business reaching uh 35:34 35 minutes, 34 seconds 3,000 to 4 thou or 2,500 to 3,000 cr. So if you can just help us break uh you know uh understand like how much would 35:42 35 minutes, 42 seconds be from organic and inorganic activities since we have done so many uh inorganic activities. 35:50 35 minutes, 50 seconds Yes. So um what we anticipate in terms of uh the 51 and that we have currently 35:58 35 minutes, 58 seconds approved and that 27 more products coming in accessible market for opportunity for us can be of the number 36:05 36 minutes, 5 seconds that that we have spoken about in next 3 to 5 years time frame. Um in terms of organic inorganic I think it will be 36:12 36 minutes, 12 seconds very difficult to pinpoint in terms of what could be the organic or inorganic for us everything becomes uh organic 36:20 36 minutes, 20 seconds because not necessary the product that is acquired is immediately been been launched right there are a lot of modifications happens on the products 36:28 36 minutes, 28 seconds there are differentiated strategies being worked out on individual products that has been acquired so there are a lot of things there are a lot of development over and above acquisition 36:37 36 minutes, 37 seconds that happens right so uh for us everything is organic um and uh that that is our strategy and we'll continue 36:44 36 minutes, 44 seconds to uh demonstrate and and and derive that strategy going forward. 36:50 36 minutes, 50 seconds Okay. And uh my third question is on the branded business. So if you can help us understand how many fields we have 36:58 36 minutes, 58 seconds currently and what's the strategy there like um u within five years time frame how big can we expect this business to 37:06 37 minutes, 6 seconds scale up to and do we intend to add more MRS? 37:12 37 minutes, 12 seconds Yes, definitely. Uh we have already increased our MR uh capacity um MR count from last year to this year 37:21 37 minutes, 21 seconds significantly. Uh we had about 120 to 130 people today on the field as we speak. We are already approved in uh we 37:29 37 minutes, 29 seconds are already approved in a lot of marquee hospitals as we spoken about that will continue to drive our further growth. So this year we have budgeted about 60 to 37:38 37 minutes, 38 seconds 70 cr of uh branded generic business in India. I mean we could still do better but this is what the uh what what we 37:45 37 minutes, 45 seconds have budgeted so far. Uh that will probably require us to hire some more uh field force some more MRS uh in 37:52 37 minutes, 52 seconds different parts of parts of India. But this uh branded generics for uh the business that we operate is little different from typically how the branded generics that are that exist in India. 38:03 38 minutes, 3 seconds So not necessary we need to hire a lot more fil force to kind of scale up the business. So we'll definitely higher but 38:10 38 minutes, 10 seconds uh to to to relatively to the lesser number as you speak. 38:16 38 minutes, 16 seconds So would you be comfortable giving this the quantum of air marks that we intend to plateau at or you know we all we need 38:23 38 minutes, 23 seconds to have at least yeah about 200. Yeah if if you have to 38:30 38 minutes, 30 seconds um put a number to it. So I think at 200 we will try and uh kind of consolidate on that side. 38:38 38 minutes, 38 seconds Okay, that's helpful. Thank you. Thank you. 38:44 38 minutes, 44 seconds Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participant in the question queue, please restrict 38:51 38 minutes, 51 seconds yourself to two questions only. Should you have a follow-up question, please rejoin the queue. 38:57 38 minutes, 57 seconds Next question is from the line of Gorak Pinani from Ambbit Capital. Please go ahead. 39:04 39 minutes, 4 seconds Yeah, thank you. Uh so sir just uh on your guidance you've guided for a 30 to 39:10 39 minutes, 10 seconds 40% kind of a growth on the revenue and 50 to 60% on the profitability. 39:18 39 minutes, 18 seconds So uh you've already done you know 30% kind of margin in FI26 and you're guiding for margins to stay at the same 39:26 39 minutes, 26 seconds levels next year. So then with a 40% revenue crer you know how does the 50 to 39:33 39 minutes, 33 seconds 60% profitability is that or is that a data that you are guiding for? 39:39 39 minutes, 39 seconds Yes. Hi thank you for the question. So there are um as you know there are a lot of um moving parts right in terms of 39:48 39 minutes, 48 seconds currently in scenario. So margin is in effect of multiple things that that that prevails. Our our aim is to grow our 39:57 39 minutes, 57 seconds margin from what we've guided for not necessarily every time because of the uncertainties that we're currently 40:04 40 minutes, 4 seconds living in will probably result into something like that. If you historically see we've grown our operations by 60 odd% on the revenue and 100 plus% on the 40:14 40 minutes, 14 seconds uh on the profitability side. So keeping the same metrics in place uh if you ask me will we'll be able to 30 to 40% on 40:22 40 minutes, 22 seconds the revenue grid to 50 to 60% on the back doable because that we have demonstrated so far over last couple of years. Uh however from a margin 40:32 40 minutes, 32 seconds standpoint uh blended margin I think we're comfortable picking at about 29 to 31% that we have spoken about on the 40:39 40 minutes, 39 seconds IETA basis. So I think currently we would not want to change uh our ITA blended uh guidance uh for the next year 40:48 40 minutes, 48 seconds but uh if if we we are able to do and there's a there's a geopolitical and microeconomy microeconomic sectors turn 40:57 40 minutes, 57 seconds favorable of course that can further improve but at this point of time do you do you think our margins to improve on this I think we don't want to guide it 41:06 41 minutes, 6 seconds we would don't want to guide more than the 29 to 31% that we have been talking about on their perfect 41:14 41 minutes, 14 seconds so uh you know looking at your guidance a little differently so uh 30 to 40% 41:21 41 minutes, 21 seconds topline growth I'm assuming includes 100 cr from upar as well so yeah uh so then 41:30 41 minutes, 30 seconds you know x of upnar only guiding for you know something closer to 20 to 25% growth on your rest of the business and 41:38 41 minutes, 38 seconds this is with you know your CDMO business also growing your own India launches to gather from here. So isn't it you know 41:48 41 minutes, 48 seconds it you've been growing at 60% now with upna you're driving for 40 and you know without for 25 and your product must be 41:56 41 minutes, 56 seconds also changing and you know so it's a little difficult to comprehend you know why you're being so conservative or maybe you know we are 42:05 42 minutes, 5 seconds so I this is what we want to convey is that this is the minimum 30 35% 40% top 42:15 42 minutes, 15 seconds line is range we are giving for three reasons. As we speak there are lot of moving parts in terms of external 42:22 42 minutes, 22 seconds environment which is not very conducive shipping lines everything overall atmosphere even in US in terms of the 42:31 42 minutes, 31 seconds inflationary pressures etc. So we have decided to be a little conservative. Let us wait for one or two quarters. Let us 42:39 42 minutes, 39 seconds see how things settle in the world in today's scenario to talk of a 35% group itself is a a very courageous thing I 42:47 42 minutes, 47 seconds would say. But I think we have lot of visibility to at least say that this could be regarded as minimum achievable. 42:54 42 minutes, 54 seconds Let us wait for couple of at least one or two quarters and then we will see whether we need to revise the guidance. 43:01 43 minutes, 1 second So let's go with this number for now. 43:05 43 minutes, 5 seconds Okay sir. and and uh I think the second question from mine would be you know you've generated OCS now in FI26 43:13 43 minutes, 13 seconds uh FI27 I didn't get the capeex number you've been guiding for and do you see you know uh what kind of you know it can 43:20 43 minutes, 20 seconds be the first year we generate FCF also free cash flow let's see currently the guidance is that out of the current year 43:29 43 minutes, 29 seconds we have about 100 cr funds available from IPO correct so I think we should generate free cash flow in 2627. Yes. 43:39 43 minutes, 39 seconds But what would be the capex number for FI 27 maintenance and growth which includes that 100 cr for 43:47 43 minutes, 47 seconds injectable and balance 100 for various other plans plus maintenance capex etc. 43:55 43 minutes, 55 seconds Okay. 100 crores IPO 100 own. That's right. I'll join. Thank you. 44:02 44 minutes, 2 seconds Thank you. Thank you. 44:06 44 minutes, 6 seconds Next question is from the line of Sujal Janar from Opportune Wealth Advisers Private Limited. Please go ahead. 44:16 44 minutes, 16 seconds So, hi. Am I audible? Yes. 44:22 44 minutes, 22 seconds So, sir, I want to ask about the uh the CV which you had within the US. So, how much able do you will give the better 44:30 44 minutes, 30 seconds margins on the pet side with the help of this JV? Can you give me the um kind of guidance on that part sir? 44:37 44 minutes, 37 seconds No no no you mean to say the new GP. 44:40 44 minutes, 40 seconds Yeah the from the GV you did in the US business uh how much uh there will be a incremental margin we will be able to make with the help of GV. 44:50 44 minutes, 50 seconds No no we will go with the overall guidance that includes whatever we have internally calculated from within our the new JVS that are happening. 45:01 45 minutes, 1 second Okay sir. And my second question on the part of sir uh is are you able to seeing any product mix change uh between regulatory emerging and branded genre uh 45:10 45 minutes, 10 seconds in upcoming four three to five years like uh branded becoming the uh more business coming more business than emerging markets. 45:18 45 minutes, 18 seconds So all all all segment business uh you see are in the growth stage right I mean each each segment that we operate in are 45:27 45 minutes, 27 seconds growing at a at a fast pace uh changing the product mix yeah of course uh you know emerging market we've already 45:34 45 minutes, 34 seconds spoken about that new and new products are getting approved which are higher margin first to file first to launch kind of opportunity even in US there are 45:42 45 minutes, 42 seconds a lot of CGP kind of opportunities first to launch um kind of opportunity so of course as we move forward uh the the lucriveness of product may 45:51 45 minutes, 51 seconds come in which will which will probably represent the larger share as we speak uh what percentage it will change going 45:59 45 minutes, 59 seconds into granularity will be little tough to kind of point out at this point of time we we'll address it at a later date you know if there is any significant change 46:07 46 minutes, 7 seconds on that side okay thank you so much thank you thank you 46:16 46 minutes, 16 seconds next question is from the line of Rachel Maheshwari from Nared Investments. Please go ahead. 46:24 46 minutes, 24 seconds Hi, am I order this? Yes, please go ahead. 46:28 46 minutes, 28 seconds Uh yeah. Hi, congratulations on set of numbers. I just had a few questions. Uh first is can you repeat your FI27 46:37 46 minutes, 37 seconds emerging markets revenue? How much was it? FI27 what you say revenue? 46:46 46 minutes, 46 seconds Yeah. Yeah. What you think is about? Yeah. 180 crores. 46:51 46 minutes, 51 seconds Uh okay. And uh so earlier we were talking about an uh facility at in Atlanta and OSD facility that was coming 46:59 46 minutes, 59 seconds up in US. Is it still coming or so OSD is already there right? We've 47:08 47 minutes, 8 seconds been operating that facility for almost a decade now. Uh no I think uh uh we were putting line 47:15 47 minutes, 15 seconds two more lines there. So uh yeah so we we have currently commercialized three lines. Fourth line 47:24 47 minutes, 24 seconds was to be fourth line was to be commercialized or was to be installed but we have pushed that plan because we 47:33 47 minutes, 33 seconds acquired APNAR in month of December 2025. 47:37 47 minutes, 37 seconds So uh we will get utilization of both the facilities to a level that we would be comfortable in. Then we'll probably 47:44 47 minutes, 44 seconds see whether we want to install a fourth line in the US or maybe expand uh lines at our upar facility in Boda. So um I 47:54 47 minutes, 54 seconds think probably in the next two quarters we'll have more clarity in terms of where that expansion will be followed through. So fourth line is currently 48:02 48 minutes, 2 seconds being being pushed to a later date as we speak. Okay. Uh answer I had one more question. 48:09 48 minutes, 9 seconds Uh that is what is the thought process behind moving towards you know front end sales in marketing in the US. 48:18 48 minutes, 18 seconds Um there are um I I would brief I would like to be brief about it. So yeah uh 48:26 48 minutes, 26 seconds there are a lot of acquisition of products that we have done um and those acquisitions are largely an approved 48:33 48 minutes, 33 seconds product. So for us to access the market relatively is quicker than doing a completely new development of a product. 48:40 48 minutes, 40 seconds Right? So the idea is to get access to market quickly with our own front-end presence that kind of helps us create 48:48 48 minutes, 48 seconds our visibility and the and the marketing presence you know on those acquisition 48:55 48 minutes, 55 seconds approved. uh cash wise the cash requirement to launch those already offered products is significantly lower 49:04 49 minutes, 4 seconds than developing a new product and then going into market with your own own marketing presence. So overall all we 49:11 49 minutes, 11 seconds looked at a differentiated strategy we compared and we thought this will be a right strategy for us specifically for an acquisition portfolio to go on and 49:19 49 minutes, 19 seconds launch our own uh front end presence. So largely currently our printed presence our own marketing our own sales and 49:26 49 minutes, 26 seconds marketing distribution company is through our acquisition portfolio. 49:31 49 minutes, 31 seconds Right. Thank you so much. Those are my questions. Thank you. 49:38 49 minutes, 38 seconds Next question is from the line of Smith Doshi from Okain Capital. Please go ahead. Yeah. Am I audible? 49:46 49 minutes, 46 seconds Yeah. 49:48 49 minutes, 48 seconds Yeah. So I have two questions. Uh first is on the forex gain part uh in emerging market we have uh Mr. Smith are you on a speaker phone 49:56 49 minutes, 56 seconds request you to please use your handset sir. 50:01 50 minutes, 1 second Yeah I have two questions uh first is with regards to forex gain in our emerging market portfolio we have done 50:07 50 minutes, 7 seconds around 20% kind of margin compared to earlier quarter three of 13%. So how 50:14 50 minutes, 14 seconds much would be uh due due to forex uh kind of uh movement and how much is due 50:22 50 minutes, 22 seconds to operational efficiency like what uh sir said that 1.2 rupees to 1.9 rupees per unit that is uh first question and 50:30 50 minutes, 30 seconds second question is with regards to the earlier participant question with regard to other financial assets. So if you can 50:37 50 minutes, 37 seconds elaborate that uh uh answer that 172 rupees of other financial asset with example of let's say 100 rupees of sales 50:46 50 minutes, 46 seconds then it would be very helpful for the overall audience to understand 50:53 50 minutes, 53 seconds I think to answer your first question whatever in emerging market whatever you have seen the improvement in margins are 51:03 51 minutes, 3 seconds mainly due to the product change what we have received So the forex due to forex yes but these are all realized forex 51:11 51 minutes, 11 seconds because you received the realization on the sales. So yes that is partly it is due to the exchange rate increase I'll 51:19 51 minutes, 19 seconds say but still it's about 3 cr 3 cr emerging market around 3 crores due to 51:26 51 minutes, 26 seconds that forex favorable movement effect during the year. Yeah. Right. 51:34 51 minutes, 34 seconds I think on the second question see giving examples etc. What we would suggest is let's take this offline with 51:42 51 minutes, 42 seconds tomorrow or any other day and he will explain. Okay. No issue. No issue. Thank you. 51:50 51 minutes, 50 seconds Thank you. 51:52 51 minutes, 52 seconds Next question is from the line of Diam Dhi from 923 Capital. Please go ahead. 51:58 51 minutes, 58 seconds Uh congratulations sir on the good set of numbers. I just wanted to ask you that uh we have 51 and right now out of 52:05 52 minutes, 5 seconds which 21 are launched and 30 are not launched. So can you give me a expected timeline when you are going to launch these? 52:16 52 minutes, 16 seconds Yes. Um thank you D. So we expect complete roll out of uh remaining 52:23 52 minutes, 23 seconds products um in next about 6 to 8 quarters. uh the remaining approved ANDAS 52:30 52 minutes, 30 seconds um and um uh you know it's it's it's a it's an ongoing strategy right so we'll acquire probably a few more 52:37 52 minutes, 37 seconds strategically in in in quarters to come so we we we feel that this this trajectory this strategy for us is is 52:45 52 minutes, 45 seconds going to is going to continue uh but as we if we speak specifically of this 51 I 52:52 52 minutes, 52 seconds think in another 6 to 8 quarters we should have at least 90 to 95% of 51 is is to be commercialized. 53:00 53 minutes Okay. So, thank you. And uh what would be the average revenue of Anda could generate? 53:08 53 minutes, 8 seconds Um very tough to comment on this at this point of time. Um we'll um we will we'll 53:15 53 minutes, 15 seconds come back right in terms of you can have a specific question and we can answer that. 53:19 53 minutes, 19 seconds No, but just to add you see all these launches will not immediately give peak revenue. Big revenue take three to five 53:26 53 minutes, 26 seconds years or at least two to three years for the product to reach but from a time perspective software has already given 53:34 53 minutes, 34 seconds you an invitation. So yeah it's a slightly different expectation over next 3 to 5 years. 53:42 53 minutes, 42 seconds Okay so I I get that. Thank you so much. 53:44 53 minutes, 44 seconds And one last question that uh the US JV that is Amir region uh what uh the our 53:51 53 minutes, 51 seconds target is basically revenue right because that are government contracts so the margins will be very thin right 54:00 54 minutes no um you you're talking about a medicine right particularly yes sir particularly 54:09 54 minutes, 9 seconds um well u margins are not very thin u um I mean you know it's it's a it's a 54:18 54 minutes, 18 seconds different vertical of business that that that that's out there. Um we we we feel this year probably we'll do about uh 54:27 54 minutes, 27 seconds about 80 to 100 crores of revenue from from that um uh JV maybe little uh 54:34 54 minutes, 34 seconds little conservatively maybe 50 to 70 crores um that's what is been budgeted between say 70 80 odd crores right on an 54:43 54 minutes, 43 seconds average basis um we feel we'll be able to achieve that uh with a decent profitability profitability which will 54:49 54 minutes, 49 seconds be uh almost an average of what what our US beta business is which is about upwards to about 40%. So I think that is 54:58 54 minutes, 58 seconds within that um the guidance uh within the pre framework that we have for your business. 55:05 55 minutes, 5 seconds Okay. I thank you so much and all the best. Thanks. 55:11 55 minutes, 11 seconds Thank you ladies and gentlemen. Due to time constraint we will take this as the last question for the day. I now hand the conference over to the management for the closing comments. 55:27 55 minutes, 27 seconds I'd like to once again thank you everyone uh for joining our earnings call. Uh we will keep updating the investor community on regular basis uh 55:35 55 minutes, 35 seconds of the developments at Senas. I hope we have been able to address all your queries. For any further information, kindly get in touch with us directly or 55:44 55 minutes, 44 seconds through our uh investor relations partner. Thank you once again. Thank you and have a good evening. Thank you. 55:51 55 minutes, 51 seconds Thank you sir. On behalf of Amit Capital, that concludes this conference.