Sigachi Industries Ltd — Q3 FY26

Sigachi Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ydmelg6C5rk Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Sigaji Industries Limited Q3 and 9 months FI26 earnings conference 0:09 9 seconds call. As a reminder, all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions after the presentation 0:17 17 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your Touchstone phone. Please 0:25 25 seconds note that this conference is being recorded. I now hand the conference over to Miss Fred Sha from Go India Advisors. 0:33 33 seconds Thank you and over to you ma'am. 0:36 36 seconds Thank you. Good afternoon everyone. It's my pleasure to welcome you on behalf of Sagachi Industries Limited. Thank you for joining us today for quarter 3 and 9 0:44 44 seconds months FI26 earnings call. We have on the call Mr. Amitra Simha, managing director and chief executive officer. 0:52 52 seconds Mr. OS Reddi, chief financial officer and Mr. Dr. Vivekumar, company secretary and compliance officer. Please note that the today's discussion may include 1:01 1 minute, 1 second certain forward-looking statements and therefore they must be viewed in conjunction with the risk that the company faces. May I now request Mr. 1:08 1 minute, 8 seconds Amitra Sa to take us through the company's business outlook and performance subsequently to which we will open the floor for Q&A. Thank you and over to you sir. 1:18 1 minute, 18 seconds Thank you Rei. Good afternoon everyone. 1:21 1 minute, 21 seconds Welcome to the Q3 FI26 earnings conference call of Seagachi Industries Limited. The financial results and the 1:28 1 minute, 28 seconds investor presentation have been uploaded on the stock exchanges. I hope everyone has had an opportunity to review them. 1:36 1 minute, 36 seconds Before I move into the quarter's operational and strategic update, I would like to reiterate that the past few months have been a period of 1:44 1 minute, 44 seconds reflection, learning and action for the organization. 1:49 1 minute, 49 seconds In Q2, we had committed to rebuilding Sagachi with stronger systems, deeper accountability and long-term resilience. 1:56 1 minute, 56 seconds And in Q3, we have followed through on these commitment with focus on EHS systems, reinforcing daily operating 2:04 2 minutes, 4 seconds discipline, establishing clear oversight and accountability across our manufacturing footprint. 2:11 2 minutes, 11 seconds This work is ongoing and it will remain a non-negotiable priority for us. 2:17 2 minutes, 17 seconds Sigachi has taken all necessary measures to ensure continuity in its operation and daily activities. Our teams have 2:24 2 minutes, 24 seconds continue to run organization with discipline, transparency and stability, ensuring that customer commitments and business routine remains firmly on track. 2:36 2 minutes, 36 seconds During the quarter, we also continue to engage with industry and academic forums focused on quality and compliance, including the national cgmp day 2:45 2 minutes, 45 seconds conducted by the center for cgmp at Mah Manipal, which aligns well with our priority of strengthening manufacturing and quality systems. 2:55 2 minutes, 55 seconds From an operational standpoint, our plants are running at plank capacity. 3:00 3 minutes Supply chains remain stable and customer demand continue to be strong. Today our current cellulose based XCPN capacity 3:07 3 minutes, 7 seconds stands at around 18,000 metric ton peranom with exports accounting for nearly 62% of production. 3:14 3 minutes, 14 seconds Alongside operational stability, our focus on building a safer and more responsible organization remains central and we continue to extend our support to 3:22 3 minutes, 22 seconds affected families while strengthening internal systems across the company. 3:29 3 minutes, 29 seconds On the growth front, our capacity expansion plans continue to progress steadily. The 12,000 metric tons peranom 3:35 3 minutes, 35 seconds MCC DH capacity expansion remains on track and once commissioned, our total cellulosebased XCPN capacity is to touch 3:43 3 minutes, 43 seconds 30,000 metric tons peranom with a commissioning target of U3 FY27. 3:50 3 minutes, 50 seconds In parallel, our 1,800 tons uh CCS disintegrant facility at DeHe SCZ is also progressing well and is expected to 3:59 3 minutes, 59 seconds be commissioned in the same timeline of Q3 FI27, supporting our portfolio and diversifying into high value XCPs. 4:08 4 minutes, 8 seconds On the API side, we continue to strengthen our regulated market readiness through R&D and complianceled initiatives while our OM vertical 4:16 4 minutes, 16 seconds remains steady contributor and continues to evolve as a scalable services platform aligned with long-term goal priorities. 4:25 4 minutes, 25 seconds As I conclude, I would like to reiterate that our operation remains stable and well-managed and our ongoing projects continue to progress in line with plan. 4:34 4 minutes, 34 seconds The action we have taken over the past few quarters have reinforced the resilience of our businesses and ensured that our long-term directions remain firmly on course. 4:48 4 minutes, 48 seconds Looking ahead, we remain confident in our ability to deliver consistent and sustainable growth over the next two to three years and of course beyond that. 4:57 4 minutes, 57 seconds Our exent portfolio, expanding API initiatives and the O andM services business vertical together provide a 5:04 5 minutes, 4 seconds diversified and balanced growth platform with clear demand visibility and disciplined execution. We believe these 5:12 5 minutes, 12 seconds businesses are well positioned to support steady value creation over the coming years. 5:17 5 minutes, 17 seconds Our strategic priorities remain unchanged. Expanding capacity, strengthening our product miss and improving profitability through 5:25 5 minutes, 25 seconds operational excellence. Continued investment in quality systems, safety, compliance, R&D and infrastructure will 5:33 5 minutes, 33 seconds remain central to this journey, ensuring that the growth is not only scalable but also responsible and durable. The recent 5:40 5 minutes, 40 seconds period has tested the organization in many ways. But it has also reaffirmed the strength of our teams. We responded with speed and responsibility, 5:49 5 minutes, 49 seconds prioritized safety and business continuity, and maintained momentum on our strategic initiatives. I would like to sincerely thank our employees, 5:58 5 minutes, 58 seconds partners and shareholders for their continued trust and support. As we move forward, our focus remains firmly on 6:05 6 minutes, 5 seconds safety, disciplined execution and long-term sustainable growth. With a clear road map and a committed team, we 6:12 6 minutes, 12 seconds believe Sagachi is well positioned to emerge stronger and more resilience in the period ahead. With that, I now 6:19 6 minutes, 19 seconds invite CFO Mr. who are ready to take you through the financials and operational highlights for Q3 FI26. Thank you. 6:32 6 minutes, 32 seconds Thank you sir. Good evening everyone. 6:35 6 minutes, 35 seconds During Q3 FI26, Sigachi reported total operating income of rupees 117.2 crores. 6:42 6 minutes, 42 seconds The EITA for the quarter stood at rupees 5.7 crores with a margin of 4.6%. 6:49 6 minutes, 49 seconds Net loss came in at rupees 0.02 crores translating to a bad margin of 0.01% 6:57 6 minutes, 57 seconds negative. The MCC segment contributed rupees 61.72 crores while the W&M and 7:04 7 minutes, 4 seconds ABI segments recorded revenues of rupees 13.35 crores and rups 14.13 crores respectively. That concludes my update. 7:15 7 minutes, 15 seconds Now we can open the floor for questions. Thank you. 7:20 7 minutes, 20 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 7:28 7 minutes, 28 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 7:39 7 minutes, 39 seconds In order to ensure that the management is able to address questions from all the participants in the conference call, please limit your questions to three per 7:47 7 minutes, 47 seconds participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 7:54 7 minutes, 54 seconds The first question is from the line of Sirui from NX Wealth. Please go ahead. 8:05 8 minutes, 5 seconds Hello. Am I audible? 8:08 8 minutes, 8 seconds Yes. this article please. Yeah, this is fuse right just want to know uh whatever the sales we are generating earlier we 8:16 8 minutes, 16 seconds used to in the range of 20% or plus something so is there anything related 8:22 8 minutes, 22 seconds to a fire plant earlier event what happened is there any bearing of those events on the margin or any additional 8:31 8 minutes, 31 seconds cost here or do we see there is some competition impact or pricing challenges because of which vector has gone to around 5% or something. 8:42 8 minutes, 42 seconds Yeah. Yeah. Uh exactly. This is consequent to the fire accident uh that carrying in third quarter also because 8:50 8 minutes, 50 seconds the all hydrobed unit overheads are spread across the other units. That is one thing and also the uh the material transportation cost from hydro unit. 9:01 9 minutes, 1 second There is a lot of uh raw material was available and uh this has been moved to the the hij and jagardia units. There is an involvement of the transportation 9:10 9 minutes, 10 seconds cost and the landing cost of the material uh increase thereby the raw material consumption also it is increased and also the custom duty uh 9:18 9 minutes, 18 seconds normally when we import the wood pulp we uh import the material against advanced licensing here because the facility is 9:26 9 minutes, 26 seconds not there we had to uh take the goods by paying custom duty that is also impacted that uh finally that is moved to the 9:33 9 minutes, 33 seconds other units because of that uh there is uh lower Habitita is there in the third quarter and uh these are the main uh 9:42 9 minutes, 42 seconds reasons the one thing custom duty is transient or it is a permanent impact that is anyway we have taken transit 9:50 9 minutes, 50 seconds only this is transit because already the material has come in and uh the wood pulp ordering is almost 6 months ahead we'll plan we'll plan accordingly the 9:59 9 minutes, 59 seconds material came in and uh this is only this transit only next uh that will not be there because we don't import any material for this facility whatever 10:07 10 minutes, 7 seconds runless the facility is ready that's why there would not be any unforeseen this what is the future future uh visibility 10:16 10 minutes, 16 seconds where the earning picks up and the revenue picks up and the margin also comes back to the existing level because 10:23 10 minutes, 23 seconds the last two quarters three quarters even the last quarter we had done some 7% or a beta but today the today this 10:31 10 minutes, 31 seconds quarter the beta even gone down to below 5%. Uh yes yes because this is a material moved from the hydroad unit to the other units. 10:40 10 minutes, 40 seconds Correct. So when we when we will come back to normaly uh normaly maybe after uh fourth quarter 10:48 10 minutes, 48 seconds it would be better and then uh gradually maybe in first second quarter of the next year it comes to we expect uh that 10:55 10 minutes, 55 seconds it comes to now and and fourth quarter it would be better. 11:01 11 minutes, 1 second What is the size of the capex addition we are doing and total capex size? 11:06 11 minutes, 6 seconds Uh capex size 12,000 metric tons we are coming with MCC expansion in at the h facility what'ss are going on 11:14 11 minutes, 14 seconds and but do we see demand in the MCC because our MCC revenue percentage share is going down in current quarter also this 11:21 11 minutes, 21 seconds MCC sphere is going down from 83% to 70%. Yeah, that is because the production is not there, supply is not there, that is demand is there for we we 11:31 11 minutes, 31 seconds don't see any challenges in the demand and the pricing erosion. Correct. 11:34 11 minutes, 34 seconds Not not at all. Not at all. Pricing also it is increasing and then demand is there and only this is because of the last year. Yes. 11:44 11 minutes, 44 seconds Can you share the gross margin of last year and now currently what is the gross margin you are making? uh gross margin 11:52 11 minutes, 52 seconds this year it has uh gone up overall around uh 50 plus some uh 6 7% increase is there over last year 7% increase this 12:01 12 minutes, 1 second quarter gross margin has increased by 7% you are saying uh not gross margin racial cost increased sorry uh gross margin reduced okay six 7% so what is 12:10 12 minutes, 10 seconds our steady state gross margin sorry to interrupt sir but can you please rejoin the question cube yeah sure this 12:18 12 minutes, 18 seconds thank you the Next question is from the line of Deep Sanche from Mana Finance. Please go ahead. 12:26 12 minutes, 26 seconds Yeah. Hi, am I audible? Yes, audible. Please go ahead. 12:30 12 minutes, 30 seconds Yeah. Okay. Uh in the light of the volume impact following the incident in Hyderabad, uh is there any revision of the company's guidance in terms of revenues and margins for FI27 and FI28? 12:42 12 minutes, 42 seconds FI 2728 those it will go as is as it was earlier because now the transition period is 12:49 12 minutes, 49 seconds going on and then because of that the internal audits and uh safety terms redefining those things are going on because of that there is a production 12:58 12 minutes, 58 seconds slowdown also is there in the existing units otherwise that will be very uh steady and then like 27 28 it will be as 13:07 13 minutes, 7 seconds like before uh it was there the same thing uh would continue. So from FI27 13:12 13 minutes, 12 seconds itself uh I mean the whole of FI27 27 we are expecting 27 the additional 13:22 13 minutes, 22 seconds capacities we are expecting once those additional capacities comes everything would be normalized because uh the production uh the revenue also it has 13:30 13 minutes, 30 seconds reduced because uh this side and then uh the overheads uh to be distributed uh within the available units uh that is 13:38 13 minutes, 38 seconds one thing and then when the new capacities comes in then It will absorb the overheads overall overheads. Right now 13:47 13 minutes, 47 seconds right now old capacity at present we have 18,000 uh 18,000 metric tons is the capacity uh at the h 13:55 13 minutes, 55 seconds around 9,882 metric tons and jagardia it is 8,18 total 18,000 metric tons capacity is 14:04 14 minutes, 4 seconds there and uh going forward that another 12,000 metric tons will be added total 30,000 will be there 14:13 14 minutes, 13 seconds 18,000 metric ton it is going at full capacity utilization. 14:18 14 minutes, 18 seconds Yeah, it is around it is around 72 73% it's there. 14:25 14 minutes, 25 seconds Yeah, in this quarter ending slowly going forward it is increasing because this is this uh transitional uh problems 14:32 14 minutes, 32 seconds there is a little slowdown is there uh it picks up. There is a good demand is there for MCC only now right now the 14:40 14 minutes, 40 seconds production uh constraints production is not there that is the thing um uh there is a lower side is there 14:49 14 minutes, 49 seconds okay uh so could you provide segment wise margin for API on M and MCC forments FI26 and for your outlook for 14:59 14 minutes, 59 seconds uh FI27 uh yeah segment wise margin s mean uh MCC uh this is is a transitional period 15:08 15 minutes, 8 seconds uh but right now this this is on lower side is there and it is con consistently it is giving around 22% uh gross margin 15:18 15 minutes, 18 seconds and API is around 10%. other uh thing also around 15% is there uh MCC as of 15:25 15 minutes, 25 seconds now it is gross margins are around we can say 40% gross margin is there the 15:33 15 minutes, 33 seconds net margin this inm only whatever except this manpower cost 15:41 15 minutes, 41 seconds there will not be any major additional cost is there in windm and that is net profit or raita we can take that 22% and 15:49 15 minutes, 49 seconds whereas Whereas in MCC right now we have seen around 5% around 5% is there in Aita and this will go up to in normal uh 15:59 15 minutes, 59 seconds this thing once it is resumed to normaly then it will be about 20%. 16:05 16 minutes, 5 seconds Okay and even for API you expect FI27 you Mr. Deep but can you please rejoin the queue? Sure. 16:13 16 minutes, 13 seconds Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on the touch telephone. The next question is 16:22 16 minutes, 22 seconds from the line of W Solanki from RSP and Ventures. Please go ahead. 16:29 16 minutes, 29 seconds Uh hi, good afternoon man. 16:32 16 minutes, 32 seconds Uh my question is on the legal proceedings of the MD and CEO Amidra Sha that uh he is just released. So is there 16:41 16 minutes, 41 seconds any uh additional proceedings going on like uh there can be a chances that uh the again uh the legal proceeding can 16:51 16 minutes, 51 seconds start then we can face the issue with the ministerial side anything but uh as of now uh there is no uh this 16:58 16 minutes, 58 seconds thing uh uh we can we we don't see any uh question of any other proceedings normally it takes the case uh but maybe 17:07 17 minutes, 7 seconds uh maybe one year or one and a half year or so it can run but there is no question of arrest we can see 17:15 17 minutes, 15 seconds uh the matter is subjudist so at this moment it'll be uh challenging to speak anything further on this I'm sure you understand that okay 17:23 17 minutes, 23 seconds to interrupt you Mr. Salanki but can you please ask business related questions? 17:28 17 minutes, 28 seconds Okay. Yeah. Yeah. Uh and uh you just told that the 23 73 to 74% utilization 17:36 17 minutes, 36 seconds but uh like what is the total number of MCC revenue? It's around 82 crores from this quarter right from MCC. 17:46 17 minutes, 46 seconds Yeah. Yes. Total 117 is there uh on consolidated basis around 80 plus is 17:55 17 minutes, 55 seconds there from the MCC but this is because during this uh transition there are many uh audits 18:04 18 minutes, 4 seconds internal audits and external audits and the safety measurement safety audits those things are took place in the units 18:12 18 minutes, 12 seconds that is the reason production there was a slowdown it picks up in uh Q4 and thereafter. 18:20 18 minutes, 20 seconds Okay. Uh what is MCC volumes for this quarter? Uh MCC volume. Yeah. 18:28 18 minutes, 28 seconds In this quarter. Yes. 18:31 18 minutes, 31 seconds Yeah. Yeah. This is for 9 months around uh 10,000 metric tons is 18:40 18 minutes, 40 seconds okay. And uh this 9 months capacity if you see this 18:49 18 minutes, 49 seconds full year it is 18,000 metric tons for 9 months it would be around 13,000 500 metric tons. 18:56 18 minutes, 56 seconds Okay. Yeah. And also there is no change in the average realization price per kg right like because of the economic scenario and the mechan economic 19:04 19 minutes, 4 seconds scenario between India US and all uh is there any change in the average realization price of MCC or CSS or FPI 19:12 19 minutes, 12 seconds anything? Yeah, nothing there is no negative impact even little increase only is there. Uh but uh there is no negative impact on the pricing. 19:21 19 minutes, 21 seconds And uh just one last question that are we uh trading some of thing in the CCS or API uh in this quarter. 19:33 19 minutes, 33 seconds Yeah, CCS uh it is not a trading but see our customers they are asking along with the MCC they are asking us to supply CCS also. 19:42 19 minutes, 42 seconds And uh in this process we used to get it some uh uh pre uh CCS n minus one kind 19:50 19 minutes, 50 seconds of thing and one process we do at our facility and then we export the same thing but not from the scratch. One process n minus one stage we buy and 19:58 19 minutes, 58 seconds then we process and sell it in the market. Right now we are uh setting up of the CCS facility also our because of 20:06 20 minutes, 6 seconds that the customers are demanding for the CCS. 20:11 20 minutes, 11 seconds Okay thank you that's from my side and all the best for the future. Thank you. Thank you sir. 20:16 20 minutes, 16 seconds Thank you. The next question is on the line of P from NX wealth. Please go ahead. 20:25 20 minutes, 25 seconds Okay. 20:26 20 minutes, 26 seconds Yeah. Thank you again for the opportunity. Uh on this uh promoter shareholding in on pledge side is this uh our shareholding has reduced in last 20:35 20 minutes, 35 seconds two quarters is because of the invocation of pledge or because of the stock movement there could be further uh 20:42 20 minutes, 42 seconds possibility of stock uh plagum uh sorry shareholding decline. uh we see there 20:50 20 minutes, 50 seconds would not be any further but uh that is uh the uh invocation because of the invocation only but uh as of now uh 20:58 20 minutes, 58 seconds around 3.77 uh crores uh shares worth pledged that is in overall if you see around 10% less than 10% out of the 21:06 21 minutes, 6 seconds total share capital is 38.2 2 crores n that 3.77 crores are in the pledge less than 10% and uh if you see among only in 21:15 21 minutes, 15 seconds the promoter shareholding that is around 26%. 21:19 21 minutes, 19 seconds But we don't further yes further uh this thing invocation. 21:24 21 minutes, 24 seconds Okay. And the last question on this key by when this Hyderabad issue plant issue resolved and we become a normaly operation and we expect a beta of 20% 21:32 21 minutes, 32 seconds plus that anyway once the additional expanded capacities comes in the H the with the 21:40 21 minutes, 40 seconds bigger facility but hydroat facility that is a very small facility only 2 acres by when uh that uh yeah this is in another 12 21:49 21 minutes, 49 seconds months we are expecting this uh the H 12,000. 21:53 21 minutes, 53 seconds Okay. So what is our 2027 guidance because I I don't know the earlier guidance. 22:00 22 minutes Yeah, right now earlier it was growing around 25% uh growth rate because of this u incident uh it has uh now it is 22:08 22 minutes, 8 seconds in slow down and by fi 27 also full year the capacities also it comes it takes now we are in 26 27 another one year it 22:17 22 minutes, 17 seconds will take maybe last quarter few months would be the production uh we can generate from the expanded capacities 22:24 22 minutes, 24 seconds and uh fi 28 onwards we can see it will resume the normaly before earlier it was there in 27 also we can expect some but 22:32 22 minutes, 32 seconds uh right now we cannot comment uh much on that and margin margin guidance margin guidance fi 28 onwards that would 22:40 22 minutes, 40 seconds be good 27 partially that will be a momentum will we achieve double digit yeah yeah yeah double we are expecting 22:47 22 minutes, 47 seconds double double digits okay thank you all the best thank you thank you bish thank you the next question is from the 22:57 22 minutes, 57 seconds line of shik mujib ahmed from SM Capital. Please go ahead. 23:05 23 minutes, 5 seconds Hello. Hello. Yeah, please. Hello. Can you hear me? Yes. Yes. Yes. Please. 23:13 23 minutes, 13 seconds Sir, one question I have. When this Hyderabad plant will be reopened 23:20 23 minutes, 20 seconds that is a small facility area only 2 acres that we have not taken any decision on that. uh but uh it takes uh 23:30 23 minutes, 30 seconds little time because uh that is not a uh big uh land is available. Moreover, it is it has come into the city limits. Now 23:38 23 minutes, 38 seconds the government has given a notification that the the land in that area uh can convert into uh even residential or 23:46 23 minutes, 46 seconds commercial space and moreover if you even construct now also how long the CFO would be in live consent for operation. 23:55 23 minutes, 55 seconds uh but that's why we are not taking any decision but Mr. 23:59 23 minutes, 59 seconds Yeah, I would just say that you know that uh Hyderabad facility uh was housing a 6,000 metric tons peranom 24:05 24 minutes, 5 seconds facility of MCC. Current expansion at DH SCZ is building up a 12,000 metric tons peranom facility. So that's nearly 24:14 24 minutes, 14 seconds double the capacity. So I would say that at this moment our focus is not really to ramp up the Hyderabad facility because you know there are legal angles 24:22 24 minutes, 22 seconds to it. Our focus is to look at the the hijz facility as to how fast the cap cycles turn around and we are able to 24:30 24 minutes, 30 seconds commission the whole plant and then ramp it up to full capacities. 24:36 24 minutes, 36 seconds Okay. Now so as a investor should we uh understand in such a way that the Hyderabad plant you are not at all 24:45 24 minutes, 45 seconds taking into picture all the raw materials from there have been shifted to the H. 24:51 24 minutes, 51 seconds Yes. Yes. the Okay. Okay. Uh 24:59 24 minutes, 59 seconds uh uh the pressure uh of the raw material which have been shifted from other to other two plants is that going to be continued further. 25:11 25 minutes, 11 seconds So already it has come and then now already this thing thereafter whatever the material is coming to hydroat directly we are taking it to bah and 25:19 25 minutes, 19 seconds jagaria and gujarat. No further material is coming to Hyderabad unless there is a clarity. 25:27 25 minutes, 27 seconds Right now we are not taking any material from the head. Yes, we are not buying this. 25:33 25 minutes, 33 seconds Okay. Okay. Okay. Thank you. Thank you very much. Thank you. 25:38 25 minutes, 38 seconds Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star N1 on the DTON telephone. 25:47 25 minutes, 47 seconds The next question is from the line of Shrea, an individual investor. Please go ahead. Hello. Hi. Can you hear me? 25:55 25 minutes, 55 seconds Yes. Yes. Yes, please. 25:56 25 minutes, 56 seconds Okay. Uh, so sir, could you uh elaborate on the strategic objectives and development road map for the new R&D 26:04 26 minutes, 4 seconds facility in Hyderabad? And also uh has there been any CP uh filings this quarter? And what are the CP targets for 26:12 26 minutes, 12 seconds FY26 and FY27? Um and with respect to the uh cystic fibrosis API uh what 26:21 26 minutes, 21 seconds revenue contribution do you anticipate during the initial stage of the commercialization particularly in the first half following the commencement please. Thank you. 26:32 26 minutes, 32 seconds So Shrea uh for the API R&D at Hyderabad, our initial focus was to have 26:39 26 minutes, 39 seconds six CP filings from uh from the data and the content generated of the API facility. Now when we look back at our 26:46 26 minutes, 46 seconds earlier CP filings before the API uh R&D came in uh we had already put in uh six other C filings. So we are trying to 26:54 26 minutes, 54 seconds kind of uh establish and see because some of the C filings have had some kind of queries. So working on building up on the data and content of those queries. 27:03 27 minutes, 3 seconds So at this moment uh metformin is the CPU which we have got approval done around two quarters back. Uh and there 27:11 27 minutes, 11 seconds are other CS which are in the process as and when the C approval comes in we will of course intimate the exchange. Now in 27:18 27 minutes, 18 seconds terms of this translating to sales uh you know uh as as the CP approval comes in we will be seeding molecules to our 27:25 27 minutes, 25 seconds customers and then they will be taking their particular finished product and putting it into stability. So at this moment it's difficult to quantify as to 27:33 27 minutes, 33 seconds which CP will amplify and will contribute to what magnitude of sales. 27:43 27 minutes, 43 seconds Okay. Okay. Great. Thank you. Thank you so much. Thanks. Thank you. 27:49 27 minutes, 49 seconds Thank you. The next question is from the line of Deep Sanjetti from Mana Finance. Please go ahead. 27:57 27 minutes, 57 seconds Yeah, I just wanted to understand uh what is the uh update on the insurance which was uh supposed to be received from for the Hyderabad missile. 28:09 28 minutes, 9 seconds Yeah. Yeah. Uh insurance uh there are a few documents to be submitted. One is from the inspector of factories. The other one is uh fire brigade attendance. 28:17 28 minutes, 17 seconds Uh these things are pending. The next week we are uh uh submitting those documents and uh before 31st March we 28:25 28 minutes, 25 seconds are expecting some hardark amount uh and uh post 31st March uh the final uh claim may be received. 28:35 28 minutes, 35 seconds Uh so uh how much is so what is the insurance? Total total uh total insurance towards the fixed assets 28:43 28 minutes, 43 seconds around 48 crores and then around 4 crores of uh the inventory is there and apart from this there is a business 28:51 28 minutes, 51 seconds interruption u loss BI loss of profit for a period of 12 months that is around 25 crores it's there uh we expect in 29:00 29 minutes total around nearly 70 crores but uh business interruption policy after 12 months only that can be considered because the policy period is coverage 29:09 29 minutes, 9 seconds period This is 12 months and u now we are expecting some ad hoc amount maybe 29:15 29 minutes, 15 seconds around 20 to 25 crores and then uh later on the fixed effects and inventory will be settled and thereafter uh the BI 29:23 29 minutes, 23 seconds policy business interruption uh policy would be settled. So once this entire amount has been realized, do we expect 29:31 29 minutes, 31 seconds that the promoters will uh again get uh you know get their shareholding up? 29:39 29 minutes, 39 seconds Is there any possibility? 29:41 29 minutes, 41 seconds Uh even uh yes there is this promoters intended to increase their shareholding uh always that is there. 29:53 29 minutes, 53 seconds Okay. Um I mean is are we looking at any uh increase of uh this uh in this 30:01 30 minutes, 1 second quarter or maybe in the next quarters few quarters coming in the in going forward maybe a few quarters coming or Yeah. 30:09 30 minutes, 9 seconds Okay. quarter. Yeah. 30:12 30 minutes, 12 seconds Just one question on this. The company had guided for around 250 crores of revenue from uh cystic fibrosis API. 30:21 30 minutes, 21 seconds What that is uh that is after 12 months. 30:24 30 minutes, 24 seconds Yeah. After 12 months there is uh because uh that is uh in R&D that product has been uh that is development 30:32 30 minutes, 32 seconds took place and then uh that is uh post development then uh there is a possibility to get this revenue 250 30:40 30 minutes, 40 seconds crores after 12 months that will be commercialized and then there is a expectation. 30:46 30 minutes, 46 seconds Okay. And how confident are you how confident is a company in secure formulator or commercial partner for its area? 30:53 30 minutes, 53 seconds Yeah. Yeah. Company is very pretty confident and expecting um that the margins and uh the based upon the R&D 31:02 31 minutes, 2 seconds findings u then u we we are hoping that we'll come into operations and then 31:09 31 minutes, 9 seconds we'll secure that trading also. Yes. So who are the other key players operating within this therapy segment? 31:19 31 minutes, 19 seconds Yeah, because this is a new this thing not known exactly but our RD team they have developed this and it is uh 31:28 31 minutes, 28 seconds fine-tuning uh the other aspects in this uh drug. 31:34 31 minutes, 34 seconds So there is no other key player uh who listed on listed there. Oh yeah yeah yeah would be there but so far there is no announcement because since we are 31:42 31 minutes, 42 seconds released after reaching some milestone no we have to announce uh because this is a price sensitive information that's why we had announced 31:51 31 minutes, 51 seconds okay okay thank you so much thank you thank you Mr. 31:55 31 minutes, 55 seconds Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star N1 on the Touchstone Telephone. 32:03 32 minutes, 3 seconds The next question is from the line of Rishih from RB Investments. Please go ahead. 32:10 32 minutes, 10 seconds Thanks for the opportunity and uh I wanted to understand uh what exactly is the net debt amount right now uh into the balance sheet and also would like to 32:19 32 minutes, 19 seconds understand the trajectory of the net debt uh going forward in the year FY27. 32:24 32 minutes, 24 seconds How does the uh company look at having a particular net debt number throughout the year and current net debt number? 32:31 32 minutes, 31 seconds Yes. Yes. Uh thank you Reshikesh. 32:34 32 minutes, 34 seconds Uh actually as of now there is no long-term debt outstanding in the books and uh the total the debt whatever it is there that is only working capital is 32:43 32 minutes, 43 seconds there and uh going forward for the completion of the capex and all if it is required either we raise u equity or 32:52 32 minutes, 52 seconds debt but uh based upon the situation and then requirement as of now there is no long-term debt in 33:00 33 minutes the books except working capital going forward you expect to raise more equity and uh for the capital purposes. 33:08 33 minutes, 8 seconds Yeah. Either some uh for the capex either equity or debt that is not yet uh decided that our board will decide 33:16 33 minutes, 16 seconds and this will be particularly for the DH facility. 33:19 33 minutes, 19 seconds Yeah, the H and further capex based upon when uh once the board takes a decision then we'll come up with an announcement. 33:27 33 minutes, 27 seconds any ballpark figure that you have in mind uh that the uh the overall equity plus debt raise that you are expecting 33:34 33 minutes, 34 seconds to do uh right now uh anyway at the appropriate time we'll u come with an announcement but there is a capex is 33:43 33 minutes, 43 seconds there capex requirement is there and u regarding the h facility and CCS facility also is there CC all would look 33:51 33 minutes, 51 seconds forward to uh know that number thanks a lot please thank you shikesh Thank you. A reminder to all 34:00 34 minutes participants. Anyone who wishes to ask a question may press star N1 on the touchstone telephone. 34:08 34 minutes, 8 seconds I repeat, a reminder to all participants. Anyone who wishes to ask a question may press star N1 on the touchstone telephone. 34:17 34 minutes, 17 seconds Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir. 34:28 34 minutes, 28 seconds As we close today's call, our focus remains on sensing operations, advancing our expansion projects and moving forward on our journey towards becoming 34:37 34 minutes, 37 seconds a fully integrated pharmaceutical company with focus and disciplined execution. We are confident of creating sustained value for all the 34:44 34 minutes, 44 seconds stakeholders. Thank you for joining us and we look forward to interacting with you again next quarter. Thank you. Thank you. 34:53 34 minutes, 53 seconds Thank you on behalf of Go India Advisors. That concludes this conference. Thank you for joining us and you may now disconnect your lines.