Shree Ganesh Remedies Ltd — Q4 FY26

Shree Ganesh Remedies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Xmvuej-NTe0 Published: 1d ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to the Shri Ganesh Remedies Limited Q4 FI26 earnings conference 0:10 10 seconds call. As a reminder, all partisan lines will remain in the listen only mode and there will be an opportunity for you to 0:17 17 seconds ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchstone telephone. 0:29 29 seconds Please note that this conference has been recorded. 0:33 33 seconds I will now hand the conference over to Mr. Abhishek Mera from TIL Advisor for opening remarks. Thank you and over to you. 0:43 43 seconds Good afternoon ladies and gentlemen and thank you for joining this Q4 and FI26 earnings conference call of Shri Gan Limited. The results and investor 0:52 52 seconds presentation have been uploaded on the stock exchange. To take us through the results of the quarter and answer your questions, we have with us today Mr. 0:58 58 seconds Bundin Kotier, head of business development and innovation and Mr. Pat Kotia, full-time director and chief financial officer. We'll be starting the 1:06 1 minute, 6 seconds call with a brief overview of the performance which will be followed by the Q&A session. I would like to remind you all that everything said in this call that reflects any outlook for the 1:13 1 minute, 13 seconds future which can be construed as a forward-looking statement must be viewed in conjunction with the risks and uncertainty that the company faces. With that said, I'll now hand over the call to Mr. Parka for the opening remarks. 1:24 1 minute, 24 seconds Over to you, sir. 1:26 1 minute, 26 seconds Thank you, Abish. Good afternoon ladies and gentlemen and very warm welcome to all of you joining us today on the 1:33 1 minute, 33 seconds quarter 4 SI 26 and full year SI 26 earnings conference call of Shri Ganesh Limited. Thank you for taking up the time to be with us this afternoon. 1:44 1 minute, 44 seconds Before I take you through the operational and strategic developments of the quarter and the year, allow me to briefly walk you through the financial performance. 1:53 1 minute, 53 seconds Quarter four of FI 26. Our revenue from operations for the quarter stood at 33.20 cr as compared to 24.43 cr in 2:01 2 minutes, 1 second quarter 4 of previous financial year in 21.11 cr in immediately preceding quarter. 2:08 2 minutes, 8 seconds This translates to yearon year growth of 36% and strong sequential growth of 57%. 2:15 2 minutes, 15 seconds The sequential improvement in particular reflects the recovery from the deferred shipments we have spoken about in quarter 3 after 26 commented along with 2:22 2 minutes, 22 seconds the improved execution during the quarter. The VA for the quarter excluding other income and exceptional 2:28 2 minutes, 28 seconds items uh stood at 11.37 K against 9.88 K in quarter 4 of previous year and 6.73 K 2:38 2 minutes, 38 seconds in the previous quarter. This represents an year-on-year growth of 15% and a sharp sequential growth of 69%. The EITA 2:47 2 minutes, 47 seconds margins for the quarter remain in 34.3% as compared to the 40.4% in quarter 4 and 31.9% in previous quarter. 2:57 2 minutes, 57 seconds The profit after tax for the quarter stood at 6.27 Kores as compared to 6.6 3:04 3 minutes, 4 seconds K in quarter 4 of the previous year and 3.10 10 cr in the previous quarter. This 3:10 3 minutes, 10 seconds represents a marginal year decline of 5% while doubling on the sequential basis with a growth of 103%. 3:19 3 minutes, 19 seconds As we had communicated at the beginning of the financial year and we have consistently reiterated through our subsequent interactions with the 3:27 3 minutes, 27 seconds investor community, FRA 26 was always and a year of consolidation for the company 3:35 3 minutes, 35 seconds and the numbers in many ways reflect exactly that the financial performance doesn't point out to the material growth on a fullear basis and I want to be 3:43 3 minutes, 43 seconds candid with you. However, FY26 was never designed as a year of aggressive topline extension. It was a year of deliberate 3:51 3 minutes, 51 seconds groundwork and on account of that, I'm pleased to say it has been a productive year. Structurally and fundamentally, 3:58 3 minutes, 58 seconds the business has become considerably stronger over the course of 26. We have used the years to secure important 4:05 4 minutes, 5 seconds approvals to advance our work on newer and more innovative molecules and to build up our capabilities as well as the cap capacities. 4:15 4 minutes, 15 seconds Let me now share some of the key developments during the quarter and the year. I want to start with what I believe is the most significant update. 4:24 4 minutes, 24 seconds I'm very pleased to share with you that we have made a strong progress on our grants uh engagement across the agrochemical, 4:31 4 minutes, 31 seconds pharmaceuticals and electronic applications. As you are aware, we have been working on active grants projects with customers in Europe and Japan. 4:40 4 minutes, 40 seconds During quarter 426, we have successfully completed the pilot trial for this project. This is the important milestone for us and one that we have been working 4:48 4 minutes, 48 seconds towards over current quarters. We will now move to the commercial trial stage of this molecule subject to the 4:56 4 minutes, 56 seconds necessary customer and regulatory approvals. We expect to thereafter commerce uh commence the commercial production. The crank business has 5:04 5 minutes, 4 seconds always been a centerpillar for our long-term strategy and the progress we have made this far has given us the 5:12 5 minutes, 12 seconds confidence that this segment will begin contributing in more visible manner in the years ahead. 5:19 5 minutes, 19 seconds On the capacity front, I'm happy to confirm that our block 7 expansion program is on track. We expect commercial production from the block 7 to commence in quarter 2 of FY27. 5:31 5 minutes, 31 seconds Block 7 has been purposefully designed to support a pipeline of niche and application molecules including the 5:38 5 minutes, 38 seconds grants molecules I just spoke about. It will play an important role in next phase of our growth. 5:45 5 minutes, 45 seconds Alongside blocks, our pilot facility, which we commissioned earlier in the year, is now fully operational and has 5:53 5 minutes, 53 seconds been instrumental in helping us accelerate new product development and respond more quickly to the persistent customer requirements. 6:01 6 minutes, 1 second The environment frankly has continued to remain challenging. The slowdown in Europe has persisted throughout the 6:07 6 minutes, 7 seconds year. The ongoing war situation in different parts of the world has added further layers to uncertaintity to the global trade landscape. The raw material 6:16 6 minutes, 16 seconds presence have remained volatile which has placed pressure on procurement decisions across the industry and we have seen several of our 6:25 6 minutes, 25 seconds customers defer their purchases as they themselves navigate this uncertain environment. 6:31 6 minutes, 31 seconds We have stayed focused on our long stage strategy of building a robust platform and growing a niche application where 6:38 6 minutes, 38 seconds the competitive intensity is limited and the opportunity to differentiate is genuinely meaningful. I'm conscious that 6:46 6 minutes, 46 seconds this approach may at times appear gradual perhaps slower than what some of you 6:53 6 minutes, 53 seconds might prefer to see but we firmly believe it is the right part for the company. It is the part that will allow us to create a more sustainable and more profitable business over the long term. 7:04 7 minutes, 4 seconds Rather than chasing growth in commoditizing the segments, the realizations are under structural pressure. 7:13 7 minutes, 13 seconds Looking ahead, let me share briefly how we are thinking about the road map from here. FI27 should be the year in which the groundwork laid during the FI26 7:22 7 minutes, 22 seconds begins to translate into more visible business outcomes. With our pilot facility now fully active, the block fan expected to commence commercial 7:31 7 minutes, 31 seconds production in quarter two of FI27. With our CR projects transitioning from pilot 7:38 7 minutes, 38 seconds trials to commercial trials and with the strengthened product development pipeline, we believe the company is 7:44 7 minutes, 44 seconds structurally ready than any at any point in its recent history. We expect the momentum to gradually improve through 7:53 7 minutes, 53 seconds the course of FA 27 and we expect the Queen's business in particular to begin gaining traction as the year progress. 8:02 8 minutes, 2 seconds With that said, I will be happy to take your questions. Thank you. 8:08 8 minutes, 8 seconds Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a 8:15 8 minutes, 15 seconds question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, 8:22 8 minutes, 22 seconds you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and 8:29 8 minutes, 29 seconds gentlemen, we will wait for a moment while the question queue assembles. 8:37 8 minutes, 37 seconds We take the first question from the line of Arnav Al Navka from Tricola Capital. Please go ahead. 8:43 8 minutes, 43 seconds Um, hi part. Uh, thanks for the opportunity. Um so we're fairly new in our journey of understanding the company. So just wanted to know uh in 8:52 8 minutes, 52 seconds the broader realm of specialty chemicals and APIs what chemistries exactly are you focusing on? What's the percentage contribution to revenue? Uh what are the 9:01 9 minutes, 1 second use cases of these chemistries? And then who are your main competitors in each of these chemistries? And what exactly is your strategy uh to uh win against them? 9:16 9 minutes, 16 seconds Yes. Uh so thank you for the question. 9:18 9 minutes, 18 seconds For the chemistry wise I think if you go over our uh at least you know the corporate presentation and the past if 9:27 9 minutes, 27 seconds you refer to the past we have mentioned that there are certain core chemistries that we have expertise on. So hogenation 9:35 9 minutes, 35 seconds reduction and uh so on there are multiple chemistries that which we operate our products in based on those chemistries we get our product 9:44 9 minutes, 44 seconds selection. So I would say chlorination is one of the core competencies that we practice and majority of our products which we do even today uh involves some 9:53 9 minutes, 53 seconds other the kind of product steps from the chlorination part. 10:00 10 minutes uh un understood and uh uh in oration and uh what exactly is our competitive strategy against them? 10:10 10 minutes, 10 seconds So just for the competitors part it's a very I would say there's no appletole comparison because uh and like the 10:18 10 minutes, 18 seconds industry which we operate in it's a multi-step uh product. So there involves more than four to five steps uh up to 10 10:25 10 minutes, 25 seconds to 12 steps product which involves chlorination with additional reduction and so on. So there is no company as 10:34 10 minutes, 34 seconds such which we know of. Uh which does the same reaction. Uh every company has their own chemistries. They definitely 10:42 10 minutes, 42 seconds there are many companies in the industry which does the chlorination which does the reduction. But uh they have their 10:49 10 minutes, 49 seconds own expertise on and uh in from our part uh as of now for some of the molecules which we practice in uh there's no direct competition in India. 11:01 11 minutes, 1 second Right with that we have a second question. So we have spoken about the special chemicals semiconductors and electronic space in Japan also about the 11:08 11 minutes, 8 seconds agrochemical project in Europe. So if you could just help us size the revenue contribution of such what you would say complex niche of post kinds of post 11:16 11 minutes, 16 seconds trend molecules as a proportion of a current topline and also given that we have a block seven coming online in second half of 27. So what is the 11:24 11 minutes, 24 seconds realistic growth expectation of such niche niche segments so to say over say next two to three years if you could give us a broad range. 11:34 11 minutes, 34 seconds So I think uh we have previously mentioned that uh that we are doing a grants project but we have stopped 11:41 11 minutes, 41 seconds giving the specific project wise because there are certain uh NDAs and CDs signing the customer. The outline which 11:49 11 minutes, 49 seconds we can give is that all these products are significant uh in terms of revenue size and revenue portion from our side. 11:57 11 minutes, 57 seconds So for the next three years we can see if all of them are commercialized it will be uh significant amount from the 12:04 12 minutes, 4 seconds existing uh revenue members. But just with the lack of the figures, what is this say the revenue contribution on a 12:12 12 minutes, 12 seconds top line about about these niche chemistry that you're working with as a wholeation would be one of Yeah, sorry. 12:23 12 minutes, 23 seconds Hogenation is one of the uh you're asking about the chemistry, right? 12:28 12 minutes, 28 seconds Not not specifically about the chemistry in terms of the general revenue contribution of this chemistry. So we are having this. 12:37 12 minutes, 37 seconds Yeah. Yes. So there is no as such fixed contribution of this chemistry is because we are not focusing on one 12:46 12 minutes, 46 seconds chemistry as far as site. So we practice more than 10 different chemistries and that is what uh the that is the unique point of SG. 12:55 12 minutes, 55 seconds So when there is a customer who is looking for a toll manufacturing project that is to be done by an Indian partner which has an expertise over multiple 13:04 13 minutes, 4 seconds chemistries then we come in to this picture. So as such we cannot define which chemistry is contributing highest 13:12 13 minutes, 12 seconds to the revenue but what we can say for sure is the there are three chemistries which are giving SGR and edge is 13:20 13 minutes, 20 seconds hogenation vineyard and reduction. So these are the three main chemistries that we do but in a nutshell we do more than 10 plus chemistries. So basically 13:30 13 minutes, 30 seconds we are not promoting SG as a chemistry narrow focus company but we are doing 13:38 13 minutes, 38 seconds multiple projects with multiple steps involved with multiple chemistries involved. So we are basically promoting 13:44 13 minutes, 44 seconds SGR as a multiple chemistrydriven manufacturing partner and Indian manufacturing partner which 13:52 13 minutes, 52 seconds you can rely on against the manufacturing done by the Chinese or the Japanese or the European companies. 14:00 14 minutes So we are not focusing again I would say like we are not focusing just that we work with innovator or we work with 14:08 14 minutes, 8 seconds generic. If the product fits our chemistry capabilities if the product fits our margins then we take those 14:16 14 minutes, 16 seconds products and uh because we have been focusing on the chemistry capabilities and developing new infrastructure 14:24 14 minutes, 24 seconds according to the different chemistry capabilities to our strength. We have been receiving new projects that belongs to both either innovator or generic market. 14:35 14 minutes, 35 seconds Got it. My next question is if you could give the sense of the consolidate capacity utilization across unit one today across all the blocks and what is the peak utilization levels that we can 14:43 14 minutes, 43 seconds attain and also in terms of block eight where are we 14:52 14 minutes, 52 seconds for the block eight I would say the utilization is still at the same level what we have commented it's still not at its peak I would say it's still 14:59 14 minutes, 59 seconds operating roughly at the 50% capacity uh we would expect the blockade to utilize its full capacity by the end of 15:08 15 minutes, 8 seconds this year. And in the meantime, we also expect as part said in the speech, we expect the block seven to be also 15:16 15 minutes, 16 seconds operational in this financial year. And all our blocks are designed on a specific specific chemistry. So the 15:24 15 minutes, 24 seconds realization or the utilization go here and there. that overall our utilization capacity considering the new capacity being 15:32 15 minutes, 32 seconds continuously added it's between 60 to 70%. 15:37 15 minutes, 37 seconds 60 to 70% is the consolidated utilization for the entire for the old blocks. 15:42 15 minutes, 42 seconds No, not uh 60% for the old uh consolidated. Yes, with the eight and seven and the new blocks coming, we keep 15:50 15 minutes, 50 seconds on pushing more and more chemistries and utilization. So, it's very hard to I 15:56 15 minutes, 56 seconds would say comment on the uh utilization per block. We can mainly comment on the 16:04 16 minutes, 4 seconds consolidated figures because every block supports each other. 16:09 16 minutes, 9 seconds Got it. Got it. So the last question is that I would request you to please turn back the queue for follow-up questions. Thank you. 16:17 16 minutes, 17 seconds Thank you. 16:19 16 minutes, 19 seconds Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to one question and one follow-up question per participant. 16:28 16 minutes, 28 seconds We take the next question from the line of Yashi from Molecule Ventures. Please go ahead. Hi, am I able? 16:37 16 minutes, 37 seconds Uh, Yashi, your audio is too low. Could you please use your handset? Yeah. Am I audible now? 16:44 16 minutes, 44 seconds Yes, this is better. Please go ahead. 16:46 16 minutes, 46 seconds Yeah. Hi. Um, I wanted to ask given the entire geopolitical volatility, I just wanted to understand the operating environment collectively. So on the 16:55 16 minutes, 55 seconds competitive intensity which part of the portfolio are seeing the sharpest pressure on generalizations and on Europe are we witnessing any early signs 17:04 17 minutes, 4 seconds of recovery in the inquiry level or order book or does the demand tend to subdued 17:11 17 minutes, 11 seconds on the geopolitical situation. Yes. um we are facing the same issue as faced by 17:18 17 minutes, 18 seconds all the chemical manufacturers because crude is the main raw material source for all the solvents that are used in 17:27 17 minutes, 27 seconds the chemical manufacturing. So due to this reason we have been heavily impacted across all our products 17:35 17 minutes, 35 seconds and talking about the customers scenario across Europe and uh other regions. The April has been quite 17:44 17 minutes, 44 seconds cold because um you know customers have been waiting to uh waiting and watch scenario. They were 17:51 17 minutes, 51 seconds expecting that the situation would go back to normal. However, we see that situation is now slowly opening up 17:58 17 minutes, 58 seconds because customer cannot wait for a longer time to place the order. So, they have started placing orders for bits and pieces as per the requirement. But we 18:07 18 minutes, 7 seconds cannot comment for sure how long the situation will continue or when will the customer be in a more comfortable position to place a longerterm orders. 18:16 18 minutes, 16 seconds But we also wait for a final call on the war situation and how this will impact the overall scenario. Having said that, 18:24 18 minutes, 24 seconds yes, the war has affected to us in a similar manner as they have affected to other chemical industries. 18:30 18 minutes, 30 seconds Okay. And on the raw material side, what proportion of your basket is import dependent and how is this impacting your supply chain and do we look at another 18:39 18 minutes, 39 seconds soft quarter before block seven and the new projects cooking? 18:45 18 minutes, 45 seconds for the raw material side I think I can take here uh around 15% is the raw material uh which is being imported but 18:53 18 minutes, 53 seconds uh of course the number changes depending on the pricing so sometimes if we are able to get uh raw material from the domestic market so depending on that 15 to 20%. 19:04 19 minutes, 4 seconds What was the other question? 19:06 19 minutes, 6 seconds So for the next quarter are we looking at a softer quarter like before the block seven and the new class kick in. 19:12 19 minutes, 12 seconds So as mentioned earlier we refrain from giving quarter to quarter comment because um like but we can definitely 19:20 19 minutes, 20 seconds project for the longerterm business. So yeah. 19:26 19 minutes, 26 seconds Okay. And my last question is on the margins front. So your FI26A margins also has come to 32% which is again well 19:35 19 minutes, 35 seconds above your stated benchmark range. So could you help us understand what has driven this performance is the contribution from commercialized CRAS 19:42 19 minutes, 42 seconds project or a better product mix and going forward as new CRAS projects begin to scale up over FI 27 and 28 would it 19:51 19 minutes, 51 seconds be reasonable to expect margins to sustain at these current elevated levels or do you view it still at 24 and 28%. 20:00 20 minutes So for this margins I think better product mix was definitely uh aspect uh going forward as we have still take like 20:10 20 minutes, 10 seconds the normal margins which is sustainable for the longer term is in the range of 26 to 28%. Uh but definitely we are more 20:17 20 minutes, 17 seconds than happy to for the initial time when there is a product approval from the client side uh for the initial approval we can enjoy the higher margins. Yeah. 20:28 20 minutes, 28 seconds So that's one of the reasons. Okay. Thank you. 20:34 20 minutes, 34 seconds Thank you. We take the next question from the line of Ankit Gupta from Bamboo Capital. Please go ahead. 20:42 20 minutes, 42 seconds Uh thanks for the opportunity on the you know on our uh like if you can give an 20:49 20 minutes, 49 seconds update on uh some of the orders that we won in the last one and a half years. 20:54 20 minutes, 54 seconds They were supposed to commence operations. So if you can uh talk about first the Japanese uh we had three products for which we had signed agreement with the Japanese partners. 21:04 21 minutes, 4 seconds They were supposed to you know start operations in this financial year like small quantity in uh you know FI27. So 21:14 21 minutes, 14 seconds like how do you see the ramp up happening there? Similarly on the European agrochemical product like when 21:22 21 minutes, 22 seconds is it like it was supposed to start this year for the in calendar year. So like what is the update for that and how do 21:30 21 minutes, 30 seconds you see the ramp up and same for the European farmer innovator products. Yeah, I think uh there's a confusion. 21:38 21 minutes, 38 seconds There's no specific uh three products uh given with the Japanese market. But let me just comment uh as for the timeline 21:47 21 minutes, 47 seconds uh for the Japanese as well as European market. I'll I'll answer jointly. It is going as per the schedule. Uh definitely 21:54 21 minutes, 54 seconds for the European as well as Japanese there are some regulatory approval take time. So it it 22:01 22 minutes, 1 second was expected and we have also successfully completed the pilot scale and now the commercial scale has started. So uh the current projects for 22:09 22 minutes, 9 seconds those both of those countries are going as per the initial discussion and what 22:14 22 minutes, 14 seconds we have uh planned for the scale up. So currently the commercial trials will 22:22 22 minutes, 22 seconds start for that and then going forward uh once we get the approval from pilot side then the commercial production will 22:30 22 minutes, 30 seconds start in the later half of later half of this year. 22:33 22 minutes, 33 seconds Okay. And for the other two projects the agrochemical and for the European farmometer the advanced intermediate 22:42 22 minutes, 42 seconds product that we were talking about in Spanish financial year that's the same for also for the agro as well as for the 22:50 22 minutes, 50 seconds farmer side and the electronic side the same timeline has been going on. So basically the the scale up will largely 22:58 22 minutes, 58 seconds happen from FI28 is what we should assume in all the all these projects or should we see significant ramp up 23:06 23 minutes, 6 seconds this year this financial year also I think it definitely depends on the customer's approval side as well. So uh 23:16 23 minutes, 16 seconds it can go a quarter here or there but definitely we are looking for some positive approval in this uh year. 23:25 23 minutes, 25 seconds Okay. So what you're saying is even this financial year we should start seeing uh decent ramp up from these projects like 23:32 23 minutes, 32 seconds of course quarterly can but we should see decentations. 23:37 23 minutes, 37 seconds So there's no major impact on this year but uh we will see some approval side. 23:44 23 minutes, 44 seconds So currently where the pilot approach are going on and the commercial uh price are starting we'll see the firm uh 23:52 23 minutes, 52 seconds commitment like we will see the firm thing from the commercial side for the approach and sure and you know like over the next two 24:02 24 minutes, 2 seconds three years when they ramp up will this you know three products have a combined potential of let's say 80 to 100 cr kind 24:10 24 minutes, 10 seconds of topping is that possible at full capacity when whenever they ramp So the revenue side as I mentioned 24:16 24 minutes, 16 seconds earlier I think uh let's just wait for all the products to get approval and then we'll see but we have refrained 24:24 24 minutes, 24 seconds from giving uh like crime specific revenue numbers but it will it definitely uh significant 24:32 24 minutes, 32 seconds amount sure and uh are we like on the domestic side we used to we we had seen some 24:40 24 minutes, 40 seconds significant decline in realization so is that cycle taken behind us or we are still continuing to see pressure on our pricing 24:50 24 minutes, 50 seconds in the pricing side can answer. 24:55 24 minutes, 55 seconds So Ankit we are mainly feeling the pressure in the domestic markets and the domestic uh the old generic products 25:03 25 minutes, 3 seconds because more and more players are entering into this field and uh that was also one of our key reasons to change 25:11 25 minutes, 11 seconds our business model since last four five years. So going forward our main focus is to cater to the spectrum and the 25:18 25 minutes, 18 seconds innovator and uh big players around Europe, Japan and other Asian countries. 25:24 25 minutes, 24 seconds So uh definitely we are going to face some challenges with the domestic products and the margin realization but 25:31 25 minutes, 31 seconds uh that is not our key focus uh and that is not uh uh on our main uh table to 25:39 25 minutes, 39 seconds focus on. Our main energy and focus is currently to help our partners across 25:46 25 minutes, 46 seconds Europe, Japan and USA to commercialize the product at the earliest scale. 25:52 25 minutes, 52 seconds Sure. There is some followup you know part like last year was a year of consolidation despite your guide uh you 26:00 26 minutes know guidance of lower margins we have still done pretty decent margins in this financial but in terms of growth do you 26:07 26 minutes, 7 seconds think you know FI27 we can start seeing the growth that uh you know that that we used to see in our earlier years and 26 26:17 26 minutes, 17 seconds uh the worst is behind in terms of growth and now we should be we are back on you 15 20% wrote at least 26:24 26 minutes, 24 seconds it I think so there are certain aspects for this uh one of key thing was that 26:31 26 minutes, 31 seconds due to this global uncertaintity of war and all the other geopolitical issues uh the end product approval from the customer's end is also an important 26:40 26 minutes, 40 seconds part. So sometimes where the product from our end is approved to the customer uh that end product which takes the government trade approval takes a time. 26:49 26 minutes, 49 seconds So the product is definitely on the positive side but uh 3 to 6 months is easily taken from any specific. So for example, 26:58 26 minutes, 58 seconds a European government um after this war has t is is taking more time for that 27:06 27 minutes, 6 seconds approvals for that specific product which we are planning on and uh easily 6 months is getting stretched for that 27:13 27 minutes, 13 seconds product approval and uh sometimes on the farmer side uh more than one year is 27:19 27 minutes, 19 seconds taken for the approval time which uh the product is get definitely getting commercialized but the approval time you guys. Thank you. 27:31 27 minutes, 31 seconds Thank you. We take the next question from the line of Sanjay Kumar Salawagi who is an individual investor. Please go ahead. 27:39 27 minutes, 39 seconds I wanted to ask when the company is getting listed on N could you please provide me the expected timing. 27:50 27 minutes, 50 seconds N uh thank you Sanjay Kumar G. uh so for MSC we have planned internally but as of now there is no specific timeline or the 27:59 27 minutes, 59 seconds guideline uh which we anticipate uh I think currently we are listed on Bombay stock exchange and after discussion with 28:08 28 minutes, 8 seconds board of directors we'll definitely take up this question and uh decides thereafter 28:15 28 minutes, 15 seconds I just wanted to ask this because N is quite a has big uh exchange So there will be much more volume in it. 28:26 28 minutes, 26 seconds That's why we are not thinking right now. 28:32 28 minutes, 32 seconds There is definitely a plan but uh once we are in discussion with the board of directors then we'll answer the thing. 28:40 28 minutes, 40 seconds Okay. Thank you. Thank you. 28:44 28 minutes, 44 seconds Thank you. We take the next question from the line of Sajjul Kapoor from Antifragile Thinking. Please go ahead. 28:53 28 minutes, 53 seconds Yeah, thanks for the opportunity. Uh, hi Jim. Um, when it comes to cramps, um, there are, uh, many small molecule 29:01 29 minutes, 1 second players in India, uh, let alone Asia, right? So in that context, what capabilities does SGL need to build over 29:11 29 minutes, 11 seconds the next um 3 to 5 years to sort of become materially more relevant to the 29:19 29 minutes, 19 seconds global customers and and increase the stickiness in the relationship? That's my first question. Thank you. 29:27 29 minutes, 27 seconds I think uh thanks for the question. But the one that you are referring to the small molecules and APIs uh we are not into that product category I would say. 29:36 29 minutes, 36 seconds So our brand projects are mostly based on the chemistry wise. So in in regardless of the end product segment 29:44 29 minutes, 44 seconds some of the products are on agrochemical side. So there are certain chemistry I think where the bigger companies are are 29:52 29 minutes, 52 seconds addressing the larger molecules from the insecticides or the pesticides or the other aggrochemical products. the one which we do a value addition to our 30:00 30 minutes customer is based on the multic chemistry and niche which is a new or tricky agrochemical intermediate or directive from the customer side. So I 30:08 30 minutes, 8 seconds think that's one of the thing and other like the big players in this industry where CDMO and API players are doing. So we are not into API players. 30:16 30 minutes, 16 seconds So that's why I think that's a different segment where we don't also uh operate or compete with this bigger players. uh 30:24 30 minutes, 24 seconds our se sector or sub segment would be in KRM, KSM, some of the key intermediates 30:31 30 minutes, 31 seconds or speciality chemicals side where there's a new molecule which a customer wants to develop that there's only one manufacturer from the Japan side and 30:40 30 minutes, 40 seconds there's only one manufacturer from the China side then they want the additional manufacturer so then SGR comes in the picture 30:49 30 minutes, 49 seconds more helpful so assuming that you are pretty satisfied with the current capabilities that you have um given the visibility you have uh in terms of the 30:58 30 minutes, 58 seconds the current and the um prospect contracts etc. What is the biggest uh bottleneck today in converting the 31:07 31 minutes, 7 seconds chemistry capability into commercial scale? 31:15 31 minutes, 15 seconds Julian you want to answer? 31:19 31 minutes, 19 seconds Yes. So Mr. Kapoor um currently I would say the bottlenecks in scaling 31:26 31 minutes, 26 seconds up these products are the technologies that are used for manufacturing the products. When you try to manufacture 31:34 31 minutes, 34 seconds something that is manufactured to a highest quality either in Japan or in China, there is something not only 31:42 31 minutes, 42 seconds driven by chemistry but something is also driven by manufacturing technologies or some niche equipments. 31:50 31 minutes, 50 seconds Having said that, we have already passed this hurdle and we are currently scaling up on a pilot or a commercial 31:57 31 minutes, 57 seconds scale. So for us to get the realization from our ongoing products, it's just a 32:04 32 minutes, 4 seconds matter of approval and the registration timelines by the final customers or our end customers or their end customers. 32:14 32 minutes, 14 seconds So we are quite consolidated and we are trying to consolidate further going down the line on our side to have us best 32:24 32 minutes, 24 seconds technology for manufacturing the targeted products required by our spectrum or the high-end customers. The main bottleneck is the regulatory 32:32 32 minutes, 32 seconds approval and sometimes for example some of our customers they wish to supply these products to either 32:40 32 minutes, 40 seconds US or to Russia or to some other countries but sometimes this war situation prolongs the registration or the 32:49 32 minutes, 49 seconds submission of files. So geopolitical situation is affecting our approval timelines our customers approval 32:56 32 minutes, 56 seconds timelines simultaneously. But uh as such there is no bottleneck at SG side at the moment. 33:05 33 minutes, 5 seconds That's wonderful. Thank you so much. Um thank you and all the very best. Thank you. Thank you. 33:13 33 minutes, 13 seconds We take the next question from the line of Aush Shagarval from Maple Value Investing Fund. Please go ahead. 33:22 33 minutes, 22 seconds Yeah. Hi. Uh thanks for the opportunity. 33:25 33 minutes, 25 seconds Uh my first question is similar to what you know Ankit has asked earlier. Uh just you know for uh has been that the 33:34 33 minutes, 34 seconds company has consolidated and for reason and we were quite focused on the trans business that we have. So we want to 33:42 33 minutes, 42 seconds understand that you know with the scale up now uh given that company had been in this 90 to 120 cr last four years uh 33:52 33 minutes, 52 seconds with this scram scaling up can can change us to a structural growth phase where you know companies break out of uh 34:00 34 minutes this range and probably go above 200 uh and you know uh it basically sustains for the next two three years and we 34:08 34 minutes, 8 seconds don't uh stop there again like did in this last four years. 34:15 34 minutes, 15 seconds Hi Aish um thank you for this question. 34:18 34 minutes, 18 seconds So as we have been mentioning uh that currently the pilot approvals are ongoing in last year the development was 34:27 34 minutes, 27 seconds ongoing and R&D trials are ongoing. So I cannot comment on the figures but I can say for sure that 34:35 34 minutes, 35 seconds in this year we are expecting for some commercial quantities for this projects. 34:41 34 minutes, 41 seconds However, having said that, we expect that our customer does finish the registration filing for their end product into the respective 34:50 34 minutes, 50 seconds markets. And so from next year, we are trying our best to break this uh 34:57 34 minutes, 57 seconds uh the cage that we are stuck in around 120 as you said. But uh all I can say at the moment confidently is that all the 35:06 35 minutes, 6 seconds commercial and pilot trials are ongoing and so we expect to see some growth from these products 35:13 35 minutes, 13 seconds by the end of this financial year. But definitely in next year we expect these products to pick up subject to condition 35:21 35 minutes, 21 seconds that our customers are able to finish their final registration in the respective countries of the finished products. 35:32 35 minutes, 32 seconds Understood. So the second question is that you know in SI26 how much this grants actually contribute 35:40 35 minutes, 40 seconds so that we can also like you know see the police separately and according to how much can the police business grow up for the next two years. 35:49 35 minutes, 49 seconds So in F26ish uh there is no significant like because as mentioned the pilots are ongoing. So 35:55 35 minutes, 55 seconds from the revenue side uh only the one project which was ongoing uh has been still ongoing but apart from that uh the 36:04 36 minutes, 4 seconds new projects are still in the approval phase like I would say the pilot scale and the commercial scale which will go on for this year. So there is no uh 36:13 36 minutes, 13 seconds significant uh I would say percentage from the overall revenue. 36:18 36 minutes, 18 seconds And the second part of that question is what do you think the business can look like for the next 3 years? 36:27 36 minutes, 27 seconds The base business is uh pretty much at the plateau I would say there is no because this molecules which we operate 36:35 36 minutes, 35 seconds in is in generic market and it has been going on since last more than a decade. 36:40 36 minutes, 40 seconds So I think the base business is a stable business. 36:45 36 minutes, 45 seconds Why are we not increasing like you know a product portfolio on that side? Uh while because you know cramps will be very lumpy and this will be a challenge going ahead also. 36:56 36 minutes, 56 seconds So for you mean the farmers? Yeah. Or specialty chemical as well. 37:04 37 minutes, 4 seconds I I think so for these new projects which we are going on uh we have not selected specifically that we want to go into crimes or non-crimes or farmer 37:12 37 minutes, 12 seconds facility uh all the projects which we are working on currently or in the future are from the customers and only. 37:20 37 minutes, 20 seconds So any new projects which we work with the customers they only tend to give us a projects which is very much helpful 37:27 37 minutes, 27 seconds because there's a trust and history with the customer since long. So they know us they know the quality and the supply chain and everything we have also been 37:35 37 minutes, 35 seconds audited and approved by them. So it's much better for us uh in that aspect to engage on new projects new molecules 37:42 37 minutes, 42 seconds from them. Being said that we all like currently our farmer side as well as the speciality chemical side both are 37:50 37 minutes, 50 seconds ongoing for the new projects selection as well as discussions and pipeline as well. 38:00 38 minutes Um understood. My final question is that you know even on the cramp side uh companies that we have seen at least from the listed side who have 38:09 38 minutes, 9 seconds successfully uh scaled up their cramps business they have a very very wide portfolio and out of that you know maybe one or two products sometimes three 38:17 38 minutes, 17 seconds products click and those become the hero products. Uh while what we understand is that our CRM project uh those will still 38:24 38 minutes, 24 seconds not be like a 100 molecule. So when can we enter that you know phase in the France business where uh we are we 38:32 38 minutes, 32 seconds trying to target those management that can at you know peak potential reach 100 200 cr in potential and how are we you 38:39 38 minutes, 39 seconds know increasing the breadth in our trans portfolio. 38:43 38 minutes, 43 seconds So there are two things on this uh first when we sign on a contract there's a revenue possibility and potential when 38:51 38 minutes, 51 seconds the customers and product will go commercial. So there's a projections from the customer end as well but no one is able to say very firmly that this is 39:00 39 minutes the you know revenue or the project take off with you see from our end I think the projects that which we have received 39:07 39 minutes, 7 seconds is very well uh positioned and the industry as well. So sometimes when we 39:15 39 minutes, 15 seconds when we begin the project uh eventually there's so the project picks up eventually because it goes into multiple 39:24 39 minutes, 24 seconds industries sometimes that industry uh itself grows a lot. So depending on the end products, customers approval and 39:32 39 minutes, 32 seconds their end products uh the project increases. Definitely the project which we operate right now has a potential to grow but uh there's no specific uh we 39:41 39 minutes, 41 seconds cannot pick and choose the crimes project where we only want above 100 cr projects. uh we can definitely increase the size of the project scale like the 39:49 39 minutes, 49 seconds total addressable market has uh increased I would say drastically from our own side uh where we were previously 39:56 39 minutes, 56 seconds catering to the smaller size of products now the products which we are getting are of the mid size 40:06 40 minutes, 6 seconds all right understood yeah that was it thank you thank you participants a Reminder if you 40:15 40 minutes, 15 seconds wish to ask a question please press star and one. 40:20 40 minutes, 20 seconds We take the next question from the line of Arnav Lavala from Tricula Capital. Please go ahead. 40:26 40 minutes, 26 seconds Hi. Um so so you said that u you know going forward focus will be on uh helping partners abroad commercialize their products. So so is it fair to say 40:34 40 minutes, 34 seconds that going forward you're thinking of the company mainly as a cramps company? 40:44 40 minutes, 44 seconds Um let me answer this. Yeah. 40:48 40 minutes, 48 seconds So I know going forward u we would like to position ourself as a key 40:56 40 minutes, 56 seconds manufacturing partner especially in a speciality chemicals. So cre word we use mainly to 41:04 41 minutes, 4 seconds make public understand like what is cramps. But our main focus is on a spectrum followed by agrochemicals where 41:13 41 minutes, 13 seconds we can realize our chemistry expertise to manufacture the bulk volumes and uh cater to the significant uh volume in the market. 41:25 41 minutes, 25 seconds One thing we are quite clear on the SG part is SG is not going to be involved in any of the Finnish pharmaceutical products or small molecules. 41:36 41 minutes, 36 seconds So SG has no intention to enter into the Finnish formulations, Finnish APIs in 41:43 41 minutes, 43 seconds the farmer market. But SG definitely wish to be a name in the spectrum manufacturing 41:52 41 minutes, 52 seconds and as a reliable Indian manufacturing partner where any of the companies can collaborate to transfer the technology 41:59 41 minutes, 59 seconds or develop the technology or scale up the processes. So what we are promoting asia is a key manufacturing partner for 42:08 42 minutes, 8 seconds the spectrum and agrochem where they have a chemistrydriven background and chemistrydriven capabilities to manufacture those products that were 42:16 42 minutes, 16 seconds never manufactured either in India or there is only one manufacturer in the world either in USA or China or Japan. 42:24 42 minutes, 24 seconds So we position ourselves as a spectrum manufacturer as a Indian spectrum manufacturer where they want the second 42:31 42 minutes, 31 seconds reliable partner apart from their existing partners in the developed or developing countries. 42:38 42 minutes, 38 seconds Understood. Understood. Thank you. Uh just another followup on uh what my colleague had asked regarding peak utilization. So if you could just 42:46 42 minutes, 46 seconds outline uh what the peak utilization could be uh on a console level. 42:54 42 minutes, 54 seconds So the utilization for the current financial year you asking? No. No. Uh what it could be potential? 43:02 43 minutes, 2 seconds Oh so uh and we operate in a batch process. So it's in the range of 80 to 85% that's the maximum it can go for the manufacturing operations. Understood. 43:14 43 minutes, 14 seconds Thank you very Thank you ladies and gentlemen. If you 43:21 43 minutes, 21 seconds wish to ask a question, please press star and one. 43:28 43 minutes, 28 seconds We take the next question from the line of Nages K who is an illegal investor. Please go ahead. 43:34 43 minutes, 34 seconds Hello. My wife is Yes, please go ahead. 43:41 43 minutes, 41 seconds Uh what is the to asset ratio for your company? 43:51 43 minutes, 51 seconds Sorry uh repeat your question again. No sir code for what is the original rate? 44:03 44 minutes, 3 seconds So the asset turnover you asking? Yeah. Yes sir. 44:07 44 minutes, 7 seconds It's roughly around 1.8 to2 uh from the asset. 44:14 44 minutes, 14 seconds Okay. Thank you sir. Uh next question. 44:16 44 minutes, 16 seconds Is there any development on this plan to manage capital? 44:23 44 minutes, 23 seconds Yes. of the DH expansion. Uh currently as we mentioned previously as well in our invested presentation uh the current 44:32 44 minutes, 32 seconds phase of expansion which we are focusing on is in the recently acquired land uh in the unlacial plant where the 7A was 44:41 44 minutes, 41 seconds recently commissioned and uh it will commission in this coming year. The H plant is uh where the common utilities 44:49 44 minutes, 49 seconds construction was started. It's still in the construction phase and going forward once we get the 44:57 44 minutes, 57 seconds enclosure fully utilized then we'll go go for the h uh plant expansion 45:06 45 minutes, 6 seconds roughly week from the down the line when we can expect the next from today 45:15 45 minutes, 15 seconds for the timeline you're asking yes sir time from from today manufacturing capacity you are going to commercialize maybe 2 years or 3 years 45:24 45 minutes, 24 seconds what is the time you're expecting yeah so I think uh the will start after 1 years and it will take around six uh 45:30 45 minutes, 30 seconds 16 to 18 months to 20 months to get the new plant commission and append so after 45:37 45 minutes, 37 seconds that yes okay finally regarding any new we got 45:44 45 minutes, 44 seconds for molecules there we got one there we are having three molecules one from pharma one from one from electronic 45:53 45 minutes, 53 seconds engine. Is there any new molecule we are working on that anyway? 46:00 46 minutes Um so I'll repeat it again. So when we have given previously uh the crimes 46:08 46 minutes, 8 seconds project for the specific market but due to the certain restrictions from the customers and as well as for the competitive landscape we have stopped 46:17 46 minutes, 17 seconds giving a number of CR project that we are doing. uh currently there are multiple projects which are being ongoing that's all I can say uh but uh 46:25 46 minutes, 25 seconds once we gain some kind of uh traction from those we'll definitely 46:32 46 minutes, 32 seconds announce and uh give the public information for that but uh three were the previous ones which you mentioned and there are multiples after that which we have uh going on. 46:44 46 minutes, 44 seconds Thank you very much sir. 46:49 46 minutes, 49 seconds Thank you ladies and gentlemen. If you wish to ask a question, please press star and one. 47:01 47 minutes, 1 second As there are no further questions from the participants, I now hand the conference over to Mr. Paria for his closing comments. 47:09 47 minutes, 9 seconds Thank you. Uh thank you everyone who joined us today and to all of you who took time to engage with us through your 47:16 47 minutes, 16 seconds questions. If any of your questions remain unanswered or if you wish to engage with us further, please do reach out to our investor relations team and 47:25 47 minutes, 25 seconds we would be happy to address them. With that, I would like to thank you once again and I wish you a pleasant evening ahead. Thank you. 47:35 47 minutes, 35 seconds Thank you. On behalf of Shri Tanesh Remedies Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.