Vimta Labs Ltd — Q4 FY26

Vimta Labs Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=gEGv6UFs7Fc Published: 7 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Vima Labs Limited Q4 FYI26 earnings call hosted by Systematic 0:11 11 seconds Institutional Equities. As a reminder, all participle lines will be in the listenon mode and there will be an 0:18 18 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an 0:25 25 seconds operator by pressing star then zero on a touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Misal 0:34 34 seconds Machenda from Systematics Institutional Equities. Thank you and over to you sir. Thank you Nesh. Good evening everyone. 0:43 43 seconds On behalf of systematics institutional equities, I welcome you to the Q4 FI26 earnings call of Vimar Labs. We thank 0:51 51 seconds the VIMTA management for giving us an opportunity to host the call. We have with us the senior management of the company represented by Miss Harita 0:59 59 seconds Vasireti managing director, Mr. Satya Sinas Niruka, executive director, Mr. 1:05 1 minute, 5 seconds Shiva Raak Krishna, chief financial officer and Miss Sugjani Basieri, company secretary. I now hand the call to the company management for opening remarks. 1:17 1 minute, 17 seconds Thank you Vishal. 1:20 1 minute, 20 seconds Good afternoon and a warm warm welcome everyone to our Q4 and FI26 earnings call of Winterlaps Limited. Please note 1:28 1 minute, 28 seconds that the investor presentation and the financial results are available on the company website and the stock exchanges. 1:34 1 minute, 34 seconds Also, anything said on this call which reflects our outlook for the future or which could be construed as a forward-looking statement must be 1:42 1 minute, 42 seconds reviewed in conjunction with the risks that the company faces. 1:46 1 minute, 46 seconds The conference call is being recorded and the transcript along with the audio of the same will be made available on the website of the company as well as on the stock exchanges. 1:56 1 minute, 56 seconds Please also note that the audio of the conference call is the copyright material of winter limit and cannot be copied, rebroadcasted or attributed in 2:06 2 minutes, 6 seconds the press or media without specific and written consent of the company. 2:11 2 minutes, 11 seconds From the management we have with us Miss Harita Vaseri, managing director, Mr. 2:17 2 minutes, 17 seconds Satis Nirund, executive director, myself Krishna Kamakati, CFO and Miss Sujini Vaseri, company secretary. 2:27 2 minutes, 27 seconds Now I request our managing director Miss Harris Vaseri to provide you with the updates for the quarter and year ended 2:36 2 minutes, 36 seconds 31st March 26. Thank you and over to you ma'am. Thank you Shiva. Good evening everyone. 2:42 2 minutes, 42 seconds Thank you for joining us on this call today. FY26 has been a year of uh strong 2:49 2 minutes, 49 seconds execution, resilience and uh strategic progress for VIPA Labs. As we reflect on the year, I'm pleased to say that we 2:58 2 minutes, 58 seconds have continued to build on our four strengths while laying the foundation for the next phase of growth. Throughout FI26, Winter has delivered consistent 3:06 3 minutes, 6 seconds growth across its core service lines, supported by robust demand, disciplined execution, and unwavering focus on 3:14 3 minutes, 14 seconds quality. Pharmaceutical research and testing services remained our largest contributor, driven by good demand from 3:23 3 minutes, 23 seconds both domestic and international customers. Food testing also demonstrated good momentum while our electronics and electrical testing and 3:32 3 minutes, 32 seconds environmental testing continued to scale in line with expectations. 3:37 3 minutes, 37 seconds The broader environment continues to be favorable driven by tightening quality norms, increasing regulatory scrutiny, 3:46 3 minutes, 46 seconds innovation in pharmaceuticals and allied industries and an expanding wellness ecosystem as such in the life sciences. 3:57 3 minutes, 57 seconds These strengths reinforce the relevance of our services and strengthen our confidence in the long-term outlook of the industry. One of VITA's defining 4:06 4 minutes, 6 seconds strengths is its commitment to quality and compliance. 4:10 4 minutes, 10 seconds During the year, we successfully underwent multiple regulatory and customer audits, reinforcing the trust that global customers place in our 4:18 4 minutes, 18 seconds systems, science, and people. These outcomes are a testament to the strength of our processes and the dedication of our team. 4:27 4 minutes, 27 seconds FYI26 also marked a strategic milestone with our entry into biologics contract research and development services. The 4:36 4 minutes, 36 seconds first year which is this year FY27 will be about execution, learning and building credibility. Our focus is on 4:45 4 minutes, 45 seconds delivering well for customers, earning their trust and establishing MITA as a reliable partner in this complex and evolving space. 4:56 4 minutes, 56 seconds We believe the long-term potential is significant but we will approach this opportunity with characteristic discipline and patience. 5:07 5 minutes, 7 seconds VIPA continues to maintain very healthy AIDA margins clocking about 35.8% 5:13 5 minutes, 13 seconds in 25 in FY26 which we believe are among the best in the industry even by global standards. 5:21 5 minutes, 21 seconds While there may be natural fluctuations due to capacity rampups, maintenance costs, people investments and of course 5:29 5 minutes, 29 seconds now the geopolitical issues, our focus remains on sustaining margins in a stable and competitive range over the 5:36 5 minutes, 36 seconds medium term. Our progress in FI26 would not have been possible without the dedication and expertise of our people. 5:45 5 minutes, 45 seconds While talent availability and attrition remain industry-wide challenges, we have successfully retained critical scientific and leadership talent which 5:54 5 minutes, 54 seconds remains central to sustaining quality, innovation and growth. As we look ahead, we remain confident the opportunities 6:02 6 minutes, 2 seconds across pharmaceuticals, food testing, electronics are real and growing. At the same time, we remain mindful of the 6:10 6 minutes, 10 seconds global uncertaintities, cost pressures, and competitive intensity. I would like to thank our teams, our customers, our 6:19 6 minutes, 19 seconds partners, and all our shareholders for their continued trust and support. We remain committed to building long-term 6:25 6 minutes, 25 seconds value through quality, consistency, and thoughtful growth. Thank you for being with us, and we look forward to continuing this journey together. 6:36 6 minutes, 36 seconds Thank you, Mr. 6:38 6 minutes, 38 seconds Good evening everyone once again and thank you for joining our Q4 and FA26 earning call. 6:45 6 minutes, 45 seconds I'll begin with an overview of our financial performance for the quarter and the year ended 31st March 26. After 6:52 6 minutes, 52 seconds that we'll open the floor for any questions. 6:57 6 minutes, 57 seconds Before we move into the financials I'd like to highlight that the following u the divestment of our diagnostic and pathological services business in 24. 7:06 7 minutes, 6 seconds The figures for the previous period have been regrouped to ensure a like-to-lifeike comparison with the current quarters. 7:15 7 minutes, 15 seconds I will start with the financial highlights for the quarter. 7:19 7 minutes, 19 seconds Total income for Q4 FI26 stood at 1,120 million as compared to rups 961 million 7:28 7 minutes, 28 seconds in Q4 FI25 up by almost 16.6 6 year year on year with a quarteron quarter increase of 11.5% when compared to Q4 FY25. 7:40 7 minutes, 40 seconds The staggering growth was on a cont for food and farmer division performing exceptionally well. 7:47 7 minutes, 47 seconds EITA stood at 421 million in Q4 FI26 as compared to 347 million in Q4 FI25 up by 7:56 7 minutes, 56 seconds almost 21.5% Iranian margins for the quarter stood at 37.6%. 8:04 8 minutes, 4 seconds Profit after tax in Q4 FI26 stood at 211 million rupees as compared to 183 8:12 8 minutes, 12 seconds million in FI25 a growth of 15.2% 2% year on year 8:19 8 minutes, 19 seconds past margins for the quarter stood at 18.9%. Basic EPS was at 4.7 rupees. 8:30 8 minutes, 30 seconds Coming to yearly performance, total income for FI26 was at 4,63 8:38 8 minutes, 38 seconds million rupees as compared to 3,482 million in FI25 up by 19.5% yearon year. 8:48 8 minutes, 48 seconds AITA for FI26 was 1,489 million as compared to rupees 1,262 8:56 8 minutes, 56 seconds million in FI25. A growth of 18% yearon year. EITA margin for the year is at 35.8%. 9:06 9 minutes, 6 seconds That was at 7 775 million rupees as compared to 668 million in FI25 increased by 16.1% yearonear. 9:18 9 minutes, 18 seconds Pack margin was at 18.6%. 9:22 9 minutes, 22 seconds Basic EPS for the full year was at 17.4 rupees per share. 9:28 9 minutes, 28 seconds On the balance sheet side, we continue to have a net debtfree balance sheet with the cash and cash equivalent uh including bank balances close to 650 million rupees. 9:40 9 minutes, 40 seconds With that, we can now open the floor for any question and answers. Thank you. 9:46 9 minutes, 46 seconds Thank you very much. We will now begin the question answer session. Anyone who wishes to ask the question may press 9:52 9 minutes, 52 seconds star N1 on the touchstone telephone. If you wish to remove yourself from the question Q, you may press star N2. 10:00 10 minutes Participants are requested to use handsets while asking a question. 10:04 10 minutes, 4 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 10:19 10 minutes, 19 seconds A reminder to all the participants you may press star and one to ask a question. 10:28 10 minutes, 28 seconds Reminder to all participants that you may press star and one to ask a question. 10:40 10 minutes, 40 seconds We have first question from the line of Shri Chhaterji from Ageless Capital. Please go ahead. 10:48 10 minutes, 48 seconds Uh hello sir, thank you for taking my question and congratulations on the results. Uh my question would be that uh on your four verticals would it be 10:56 10 minutes, 56 seconds possible to give out the margin profile of each of the verticles and uh like going into the future what would be the 11:03 11 minutes, 3 seconds highest uh driver of the uh like which vertical will grow the highest and if you could also give some update on your biologic vertical. Thank you. 11:15 11 minutes, 15 seconds We don't differentiate the margins between our service lines. It's all treated as one service. So that's that 11:22 11 minutes, 22 seconds information is not available and uh going forward no um 90% of our revenues 11:29 11 minutes, 29 seconds are driven by uh research and testing services for pharmaceuticals and food. 11:33 11 minutes, 33 seconds So this will continue both these service lines will continue to drive the growth of the organization 11:41 11 minutes, 41 seconds and um question on the biological yeah vertical. 11:47 11 minutes, 47 seconds Yeah. So we have um put in place the processes, systems, equipment, people um 11:54 11 minutes, 54 seconds to start working on contract research services uh for uh biologics and peptides development. So the machinery 12:02 12 minutes, 2 seconds and people infrastructure systems everything is ready. 12:08 12 minutes, 8 seconds So when do you see this biologics to be a significant uh contributor to your revenue profile? 12:15 12 minutes, 15 seconds Maybe not in its maiden year um too soon to uh comment on that but this year what 12:22 12 minutes, 22 seconds we hope to do is uh build traction in the market on board at least a few good clients and deliver well 12:31 12 minutes, 31 seconds if I may ask like uh if it's possible to disclose how much of your uh like service profile or the contract profiles are FTE versus FFS for these four verticles. 12:43 12 minutes, 43 seconds um FTES are only in the pharma uh service lines. Food and other businesses uh don't really have FTES and even on 12:52 12 minutes, 52 seconds the farmer side um it's limited to analytical uh services as of now. So it's not a major percentage. 13:01 13 minutes, 1 second So FFS would be the major percentage. Yes. Yes. Okay. Thank you. 13:11 13 minutes, 11 seconds Reminder to all the participants that you may ask question by pressing star and one. 13:19 13 minutes, 19 seconds Reminder to all the participants that you may press star and one to ask the question. 13:28 13 minutes, 28 seconds Then next question from the line of yog individual investor. Please go ahead. 13:34 13 minutes, 34 seconds Uh thank you very much for giving me opportunity. I just want to know what are the growth drivers uh which you see 13:40 13 minutes, 40 seconds which is panning out the next one or two years and how does the business visibility going forward in terms of 13:47 13 minutes, 47 seconds maybe I'm not asking for u very bigger hypothetical but in let's say on quarter and quarter basis or month-on-month 13:55 13 minutes, 55 seconds basis how do you see uh that your long-term strategy is aligning with the revenues and and do you think uh the in 14:03 14 minutes, 3 seconds current environment it does it does have any kind of impact on current environment uh in terms of revenue booking or maybe deferment of client due 14:12 14 minutes, 12 seconds to this uh US trade or maybe supply chain issues arises due to uh Iran US war is there is is there is there any 14:21 14 minutes, 21 seconds impact of uh any global environment point number one second growth drivers in near-term and how do you see the visibility in near-term in terms of when 14:30 14 minutes, 30 seconds you talk to your clients or maybe a new prospective client yeah that's it from 14:38 14 minutes, 38 seconds The growth drivers per our industry uh which we call contract research and testing have more or less been same 14:46 14 minutes, 46 seconds during the last decade. Um the only thing is outsourcing uh whether it is for testing or research where whether it 14:53 14 minutes, 53 seconds is pharmaceuticals, neutrauticals, medical devices or even for that matter electronics or food the outsourcing is 15:00 15 minutes growing. So all these industries um on their own globally are growing at the rate of anywhere between 7 to even 11 15:09 15 minutes, 9 seconds 12%. So that itself provides an opportunity for all the players within the industry. Further to that we we have 15:16 15 minutes, 16 seconds been dominantly playing with just a few markets. Uh so our uh business development efforts are to go out overseas and uh gain more market share. 15:28 15 minutes, 28 seconds Um so other than that there's no nothing that is significantly or drastically shifting in terms of growth drivers 15:35 15 minutes, 35 seconds within these um industries. Coming to business visibility what we see for our food pharma and electronics um and 15:44 15 minutes, 44 seconds electronics uh testing um is that it's it's good visibility. These are uh going 15:51 15 minutes, 51 seconds to be industries that will flourish in the future as well because some of them are essential uh and uh we see that more 16:01 16 minutes, 1 second and more R&D spending is happening. The pipelines especially for pharmaceutical are shifting more towards large 16:08 16 minutes, 8 seconds molecules. So the innovation aspect is um I think on the upward trend um 16:16 16 minutes, 16 seconds because the shift is from small molecules to large molecules and we also see a lot of smaller companies coming 16:25 16 minutes, 25 seconds into the space of R&D wherein even the large companies are collaborating with the smaller companies to strengthen 16:33 16 minutes, 33 seconds their R&D pipelines. So all in all I think for farmer food and electronics 16:40 16 minutes, 40 seconds um good visibility coming to electronics uh I think India's atma initiative and 16:49 16 minutes, 49 seconds the focus on know um indigenizing a lot of defense uh tools and uh no vehicles 16:58 16 minutes, 58 seconds whatever uh is high and that calls for a lot of testing and Hyderabad is a hub 17:05 17 minutes, 5 seconds for defense OEM. Uh so I think we are in a good space for now. But even putting aside defense overall the electronic 17:14 17 minutes, 14 seconds industry what we hear what we see also happening on the ground level is that there is a lot more uh activity in terms 17:21 17 minutes, 21 seconds of investments that is happening. The manufacturers are who were also predominantly playing only in the domestic market look now towards 17:30 17 minutes, 30 seconds overseas markets to know sell their products. So all this is a healthy environment for a testing lab as a third 17:37 17 minutes, 37 seconds party to know verify safety, compliance and quality of the products. uh coming to 17:46 17 minutes, 46 seconds what our long-term strategies are now they are perfectly I think aligned to how these industries are growing and the 17:54 17 minutes, 54 seconds macro trends within the industry impact of war is there uh on us the cost of 18:01 18 minutes, 1 second some uh input materials consumables uh has gone up slightly there is a 18:08 18 minutes, 8 seconds slightly longer lead time for us in um the supply chains So there is some impact directly on us as a result of 18:16 18 minutes, 16 seconds this war. What will the future impact be is uh is a wait and watch. We'll have to see how things pan out uh for everybody. 18:26 18 minutes, 26 seconds And coming to last year, yes, I think the pharmaceutical industry was under strain because of the tariffs imposed by 18:34 18 minutes, 34 seconds US. I think these have now been um reversed. So whatever uh small lull that 18:41 18 minutes, 41 seconds we had observed last year we are hoping that will quickly be reversed at least on the tariff side of things 18:50 18 minutes, 50 seconds at least from environment point of view it means global environment or industry prospects outlook uh the fi 27 would be 18:58 18 minutes, 58 seconds better than 26 do you think based on your client uh interaction or experience because more and more defense 19:05 19 minutes, 5 seconds electronics and plus your farmer pharmaceutical uh launches I think uh I don't know how is 19:13 19 minutes, 13 seconds which segment going to benefit us but based on your interaction with clients because see all these are the very very 19:21 19 minutes, 21 seconds high growth areas in terms of uh clients interest and visibility even from government point of view so and you are in right spot uh sweet spot sorry u in 19:30 19 minutes, 30 seconds terms of launching any products CDMO and electronics and plus food is again a growing industry so I just try to 19:37 19 minutes, 37 seconds understand is is there any uh in terms of client deferment of new product or is there any competition or do you see in 19:45 19 minutes, 45 seconds terms of structural growth let's say maybe fi 27 to uh 20 uh fi 30 uh based on your 19:53 19 minutes, 53 seconds clients interaction it means first is your client and second is sector and third is competition in terms of margins how do you see going forward 20:02 20 minutes, 2 seconds in a flourishing industry in a growing industry competition is always going to be there and competition only 20:09 20 minutes, 9 seconds intensifies because it's a very good environment. Now coming to u no in near 20:17 20 minutes, 17 seconds term you're talking 2027 to 2030 if if we talk um 20:25 20 minutes, 25 seconds subtracting the situation geopolitical situation and also know putting aside the sudden surprise tariffs that these 20:33 20 minutes, 33 seconds based countries are imposing on each other. Now if you remove those factors I think uh no things should be good better 20:41 20 minutes, 41 seconds than what we have seen now things should only become better but given the uncertaintities no I can only comment uh 20:49 20 minutes, 49 seconds when those things happen because it's anybody's guess I I completely agree but uh uh you your 20:57 20 minutes, 57 seconds company is very difficult to track because in other sectors you can track export data or maybe uh certain uh IP growth and all in our our kind of 21:06 21 minutes, 6 seconds business very difficult to get uh uh any basically uh uh growth drivers or maybe 21:13 21 minutes, 13 seconds because all these business or in uh B2B and or is not in public domain actually we can't nobody can track it in terms of 21:21 21 minutes, 21 seconds that's why if you get some uh give some visibility let's get can uh uh our 21:28 21 minutes, 28 seconds company can grow let's take 20 to 25% kind of cure on of three to four years and maintaining the profit club that is 21:35 21 minutes, 35 seconds possible or it is a very optimistic scenario. 21:40 21 minutes, 40 seconds Now it's a stretch number but definitely doable no and that's what we target uh each each year. 21:48 21 minutes, 48 seconds Okay. 21:50 21 minutes, 50 seconds Okay. And in terms of let's say expertise any clients uh we are dealing so that client is coming to us or he 21:56 21 minutes, 56 seconds also it means is it launching he also what what I'm trying to understand is is 22:02 22 minutes, 2 seconds client is a price sensitive or more for some services which are very routine 22:09 22 minutes, 9 seconds um low technology low science no those those kind of services uh price competition will always be there but 22:17 22 minutes, 17 seconds then there are some specialty services where um the scientific input is very critical. Um so there I think VITA has an edge. 22:27 22 minutes, 27 seconds So it's a mix basically especially on the farmer's side. Food tends to be more and more um leveled ground for 22:35 22 minutes, 35 seconds everybody. But uh companies that move fast whenever there's a regulation change there is some advantage that can 22:44 22 minutes, 44 seconds be taken out of that and that's VITA has been quite good at that so far. Okay. So it means uh uh from here we maintaining 22:52 22 minutes, 52 seconds gross margin and the incremental profit could be driven by only revenue growth right. 22:59 22 minutes, 59 seconds Yeah, margins I think we are already doing well at aida level I would say. So you can expect a correction of 1 2%, you 23:08 23 minutes, 8 seconds know, depending on how things are, you know, panning out right now because if the input cost goes up know there could be some impact for us there and also 23:17 23 minutes, 17 seconds manpower is something that continuously keeps on increasing but we try to offset with the topline growth. So we can 23:26 23 minutes, 26 seconds expect some correction u but more or less I think it will be maintained. 23:32 23 minutes, 32 seconds Okay. But it would be manageable uh or maybe it can be nullified due to uh revenue growth also. Yes. Yes. 23:39 23 minutes, 39 seconds Thank you. Thank you very much. Thank you and all the best. Thank you. Thank you. 23:46 23 minutes, 46 seconds Reminder to all the participants that you may press star and one to ask a question. 23:53 23 minutes, 53 seconds Reminder to all the participants that you may press star and one to ask a question. 24:07 24 minutes, 7 seconds We have next question from the line of Mr. Vishal Manchandanda from systematic in institutional equities. Sir please go ahead. 24:17 24 minutes, 17 seconds Yeah. Uh hi good evening everyone. uh on uh on in one of your slides on the presentation that you've published it 24:25 24 minutes, 25 seconds says the pharma analytical testing industry is about uh $9.7 billion uh uh 24:32 24 minutes, 32 seconds so could you kind of uh give us a sense like considering this industry size we we are pretty very we are small and but 24:41 24 minutes, 41 seconds we despite being small we are meaningfully large in the in Indian context so just wanted to understand uh 24:48 24 minutes, 48 seconds why Why is that? So despite the industry being large uh India the Indian market seems to be uh much smaller. So where 24:56 24 minutes, 56 seconds where are the gaps like where where does uh is is testing not happening enough in India? What could be that reason? 25:07 25 minutes, 7 seconds I wouldn't say that testing is not happening in India because uh regulators such as US FDA, EMA level the ground for 25:15 25 minutes, 15 seconds everybody and India remains uh you know on the generic side one of the largest players in these markets but um having 25:24 25 minutes, 24 seconds said that the R&D side of things I think is on a much lower scale in India compared to these developed markets. So 25:32 25 minutes, 32 seconds maybe that's uh one of the main reasons and um the for my understanding now 25:39 25 minutes, 39 seconds these are just um the numbers that I know is by that by 2030 now the Indian 25:46 25 minutes, 46 seconds analytical testing market will be around approximately $300 million. So it's really really small compared to the 25:55 25 minutes, 55 seconds global market. Um and the main reason why we will not be able to tap into all 26:02 26 minutes, 2 seconds that uh big size global market is because this tends to be something that is outsourced to local players because 26:10 26 minutes, 10 seconds it's not worth you know shipping a sample overseas for um simple analysis or a short-term analysis only where you 26:19 26 minutes, 19 seconds know the project is of higher value would would the customer also benefit in going to a country like India which 26:26 26 minutes, 26 seconds gives the advantage of both time price you know so I think these are the factors 26:33 26 minutes, 33 seconds so in in that uh would if NC R&D picks up in India that would be a trigger for the for the industry to become larger 26:43 26 minutes, 43 seconds so on side yeah could so when I say NCI mean new chemical entity R&D 26:49 26 minutes, 49 seconds yes yeah possible more R&D definitely is more work on all sides of testing and 26:56 26 minutes, 56 seconds research right not only for analytical but also for preclinical clinical research everywhere and like [clears throat] in your 27:04 27 minutes, 4 seconds existing revenue would large part of and your existing pharma analytic revenue would large part of that be driven by&da 27:11 27 minutes, 11 seconds filings in the US uh generic filings in the US or there is uh uh something else beyond the filings that you support 27:20 27 minutes, 20 seconds analytical testing uh I think by and large remains um on the ND side. I would ask three to supplement if there is anything else here. 27:31 27 minutes, 31 seconds Yeah, mostly on the ander side and on for the product release. 27:40 27 minutes, 40 seconds Sorry, you said product release. 27:44 27 minutes, 44 seconds Are there general product release uh which is already what do you call approved in the market and if they are filing and then to support their and 27:52 27 minutes, 52 seconds findings includes both approved products and new products 505 B2s NDAs there could be some part of NDA analysis 28:01 28 minutes, 1 second which is also done majority towards the generic 505 B2 NDA and okay uh and uh one on the bioimilar 28:10 28 minutes, 10 seconds business biologics business that you started trade. Would you only do contract research and manufacturing there or would you also do some 28:18 28 minutes, 18 seconds offthe-shelf products which you can uh offload to some companies willing to do biosimilars in the like bioimilars in 28:25 28 minutes, 25 seconds the US like you'd kind of do the initial development on bioimilar and keep it ready and maybe someone wants to kind of leverage that would is that also a 28:33 28 minutes, 33 seconds strategy to start with uh it is mostly contract research that's what we are going to start we are going to develop products 28:40 28 minutes, 40 seconds for uh our sponsors or clients uh maybe at the later stage but uh initially that's the plan. 28:48 28 minutes, 48 seconds Okay. And have you signed clients yet on the biosimilar side? 28:52 28 minutes, 52 seconds We have good inquiries uh and we will be closing them soon. We have a good traction from Europe, from India, a couple of them from US as well. So we're 29:01 29 minutes, 1 second just finalizing the product and uh the modality. 29:04 29 minutes, 4 seconds Great. Thank you. I'll come back in with you. Thank you very much. 29:10 29 minutes, 10 seconds Thank you. Reminder to all the participants that you may press star and one to ask the question. 29:16 29 minutes, 16 seconds Reminder to all the participants that you may press star and one to ask the question. 29:24 29 minutes, 24 seconds The next question is from the line of Rohan Sha from RS investment. Please go ahead. 29:31 29 minutes, 31 seconds Hello. Thanks for the opportunity ma'am. 29:33 29 minutes, 33 seconds Uh I want to understand what has led to the growth this quarter. uh I think we have achieved the highest ever revenue 29:41 29 minutes, 41 seconds and do you think we'll be able to keep the keep up with this momentum maybe 120 130 cr every quarter in the revenues 29:51 29 minutes, 51 seconds yes u that's the intent to keep um moving at this momentum and the prime 29:58 29 minutes, 58 seconds drivers for Q4's u uh good revenues are are pre-clinical and also food has done 30:05 30 minutes, 5 seconds well food testing because Q4 tends to be you know a good quarter for food testing. So these were the main reasons 30:13 30 minutes, 13 seconds why we could push we could have done better u because um in some areas we did 30:20 30 minutes, 20 seconds not uh see the kind of growth that we were uh expecting but definitely know the intent and effort will be towards maintaining this momentum. 30:34 30 minutes, 34 seconds Okay ma'am that's helpful. Uh ma'am one more question uh on the environmental testing front how is the performance and 30:40 30 minutes, 40 seconds I understand we are only providing post uh project monitoring so just wanted to get some color on that 30:48 30 minutes, 48 seconds it's a very tiny part of our u of work that we do at um we have moved away from 30:56 30 minutes, 56 seconds EIA which is environmental impact assessment and now sticking only to PPM which is post project monitoring and in 31:04 31 minutes, 4 seconds this transition position where we were moving away from EIA getting into PPM. 31:08 31 minutes, 8 seconds What we could do is uh just keep the revenues there. Um mid next year these years uh we will try to push up the 31:16 31 minutes, 16 seconds revenue but as such know this is not a high focus area for the company because the growth opportunities are not that high in this segment. 31:28 31 minutes, 28 seconds Got it ma'am. Got it. Uh ma'am, how has uh food been this quarter and uh has the war impacted in any way? 31:36 31 minutes, 36 seconds There have there was an impact especially the last fortnight of March because we serve exporters and uh we 31:44 31 minutes, 44 seconds also support import testing at the NFL in Nari Mumbai. So there was an impact in the last fortnight. 31:54 31 minutes, 54 seconds Okay ma'am understood that's helpful ma'am. I have more question but uh I will join back in the queue. Thank you. Sure. Yeah. 32:03 32 minutes, 3 seconds A reminder to all the participants that you may press star and one to ask a question. 32:09 32 minutes, 9 seconds A reminder to all the participant that you may press star and one to ask a question. 32:15 32 minutes, 15 seconds Then next question from the line of Anjali Singh from Bunal family office. Please go ahead. 32:22 32 minutes, 22 seconds Hello. Uh thanks for the opportunity. So my first question is on the export side could you please quintify what is the 32:30 32 minutes, 30 seconds percentage of exported revenue in Q4 it has been around 38%. 32:42 32 minutes, 42 seconds Okay. And uh one more question now that we have a new facility up and running. 32:48 32 minutes, 48 seconds So how are what are the overall utilization levels? 32:54 32 minutes, 54 seconds Utilization will slowly pick up because you don't build a facility uh wherein you're going to occupy it you know 33:01 33 minutes, 1 second immediately. That's not how you plan facilities. So utilization will pick up this year a little more next year more 33:09 33 minutes, 9 seconds the following year. So that's how it is done infrastructure wise. 33:14 33 minutes, 14 seconds Okay. Okay. One last question ma'am. So you have mentioned that the new biologics contract research will 33:21 33 minutes, 21 seconds commence from FI27 that is next quarter means. So how are we placed at the moment and how are the efforts being put 33:29 33 minutes, 29 seconds to bring in new projects for the company? 33:33 33 minutes, 33 seconds Some projects are under discussion like I was mentioning in my opening remarks. 33:37 33 minutes, 37 seconds Now um the people, systems, infrastructure, equipment, it's all ready and we are discussing some 33:46 33 minutes, 46 seconds projects and we hope uh something will materialize soon. Okay. Okay. That's all from my side. 33:54 33 minutes, 54 seconds Thank you so much ma'am. All the best. Thank you. 33:59 33 minutes, 59 seconds Reminder to all the participants that you press star and one to ask a question. 34:05 34 minutes, 5 seconds Reminder to all the participants that you may press star and one to ask the question. 34:11 34 minutes, 11 seconds Next question from the line of Ush Matkar from Shushil Financial Services. Please go ahead. 34:19 34 minutes, 19 seconds Uh yes, thank you for the opportunity. 34:22 34 minutes, 22 seconds Uh uh ma'am I would like to know about uh the uh subsidiary that uh has been 34:28 34 minutes, 28 seconds approved in US. So uh in which segment are we uh looking uh into and also what 34:36 34 minutes, 36 seconds sort of uh investments uh are we uh going to incur uh for the US uh subsidiary. 34:48 34 minutes, 48 seconds The purpose of undertaking this is to u be closer to our customers because we have a sizable population there and also to give them greater confidence here. 34:58 34 minutes, 58 seconds they are on their soil. So it gives greater confidence for them. So for as of now that is the intent that we have. 35:05 35 minutes, 5 seconds If something develops in the future no beyond this I will certainly come back to all of you. 35:14 35 minutes, 14 seconds Okay. And does it give advantage to us in case of uh tariffs if we uh set up a subsidy in US? 35:25 35 minutes, 25 seconds No. Um not much. So there's hardly any impact of tariffs on the services that we provide. As the MD has just 35:33 35 minutes, 33 seconds mentioned, this is uh the main purpose of opening uh the subsidiary there is to be closer to the customers. 35:41 35 minutes, 41 seconds Right. And my last question is Yeah. Got it. Go ahead. 35:50 35 minutes, 50 seconds Yeah. Uh and my uh last question is uh with the uh new capacity that has gone up come up. So what sort of uh revenue 36:00 36 minutes can we uh look into uh say once it uh fully uh gets off uh uh get utilized. 36:13 36 minutes, 13 seconds The idea is to when we took up this project of expansion the idea was to have a facility that can take care of our growth at least for the next four 36:22 36 minutes, 22 seconds five years. So I think um we are good so far know um we have moved into these uh facilities and we see growth happening 36:31 36 minutes, 31 seconds as you have seen for the last financial year and the idea is to keep on continuing uh this momentum. 36:40 36 minutes, 40 seconds Okay. Uh thank you very much and wish you all the best. Thank you. Thank you. 36:47 36 minutes, 47 seconds Reminder to all the participants that you may press star to ask a question. 36:53 36 minutes, 53 seconds Reminder to all the participants that you may press star to ask a question. 37:00 37 minutes We have next question from the line of uh Adat Baykar from ENY. Please go ahead sir. 37:17 37 minutes, 17 seconds As there is no response, we take the next question. We have next question from the line of Mr. Rohan Sha from RF Investment. Please go ahead. 37:27 37 minutes, 27 seconds Uh thanks. Thanks. Uh ma'am, uh how are the electronics and electrical testing scaling and uh what is their uh medium-term potential? 37:41 37 minutes, 41 seconds Last year for us has not been very exciting in this segment. We were u hoping that we would pick up some more 37:50 37 minutes, 50 seconds momentum here. But uh we had leadership challenges which are fixed now. Uh leadership challenges on both the 37:58 37 minutes, 58 seconds technical and operational uh sorry operational and BD side. So this is fixed now. But despite those challenges, 38:05 38 minutes, 5 seconds I think the team has progressed which is very encouraging for us. We have retained most of our customers and the word of mouth is strong for us in this 38:14 38 minutes, 14 seconds uh region. So now since uh that factor is addressed, we hope to see some strong movement coming here. 38:25 38 minutes, 25 seconds Got it. That's helpful. Uh ma'am uh also uh with a net debt-free balance sheet and uh you know 650 plus million cash uh 38:34 38 minutes, 34 seconds how does management plan to deploy capital uh going forward? 38:40 38 minutes, 40 seconds Very good question. As of now there are no firmed up thoughts on what we will do with this money but uh it's good to 38:48 38 minutes, 48 seconds always have cash on hand especially in these uncertain times. Um so for now I have no specific information to share. 38:58 38 minutes, 58 seconds Okay ma'am I understand that ma'am one more question if I may squeeze in. Uh are there any plans for acquisition uh 39:06 39 minutes, 6 seconds capacity expansions or investing in any new service lines? 39:12 39 minutes, 12 seconds Like I said nothing concrete as of now but if something materializes I'll definitely come back to you. 39:20 39 minutes, 20 seconds All right ma'am. All right. Uh ma'am uh how should investors think about margins in the biologics business compared to the core testing business? 39:31 39 minutes, 31 seconds Honestly know we think the margin should be around this region. No um our 39:38 39 minutes, 38 seconds expectation is that um it'll it might be a percent or a few% here and there. Um 39:46 39 minutes, 46 seconds the reason why we say this is because uh the early projects may come more from you know the domestic client. Uh and 39:54 39 minutes, 54 seconds also the other aspect is the cost of input material is quite high here. But once we develop some traction here uh 40:02 40 minutes, 2 seconds and we have a track record of successful products uh processes that we have developed you know under our belt. uh we 40:11 40 minutes, 11 seconds can go overseas and I think when we go overseas the margins can be um good. 40:19 40 minutes, 19 seconds All right ma'am that's from my side. Thank you ma'am. Thank you. 40:25 40 minutes, 25 seconds A reminder to all the participant that you may press star N1 to ask a question. 40:29 40 minutes, 29 seconds A reminder to all the participants that you may press star N1 to ask a question. 40:34 40 minutes, 34 seconds We have next question from the line of Amit Modi individual investor. Please go ahead. 40:41 40 minutes, 41 seconds Ma'am, our original plan was to clock find 5 find 5 find 5 find 5 find 5 find 5 find 5 find 5 find 5 find 5 find revenue 40:47 40 minutes, 47 seconds annualize so where do we stand is it possible to achieve it in FI27 40:54 40 minutes, 54 seconds and secondly how confident we are to maintain our average margin over 35%. 41:03 41 minutes, 3 seconds Yes, we have had a very good CAGGR during the last five to seven years. Uh we want to maintain that CAGR and if you extrapolate that then yes the number 41:12 41 minutes, 12 seconds that we are talking about uh is what we are also targeting. Our goal was to hit 500 um by last year but because of 41:21 41 minutes, 21 seconds divestment of diagnostics we said no we will try and uh get to those run rates by Q4 but again Q4 some headwinds in 41:31 41 minutes, 31 seconds terms of external factors. I think we put a very strong effort and we would have really gone close to that number 41:38 41 minutes, 38 seconds but some things did not um happen for us which we were expecting but um going 41:45 41 minutes, 45 seconds forward we are hopeful very very hopeful but there are uncertaintities in the uh environment now as you all know. 41:54 41 minutes, 54 seconds Uh one more question. Uh is there any plan to raise money to ramp up the capex 42:00 42 minutes plan like we have cap of 65 uh million on hand but is there any plan near term by way of right issue or some other way? 42:12 42 minutes, 12 seconds As of now we don't need anything uh from that kind of a method. If there is then we will definitely share that news. 42:22 42 minutes, 22 seconds Okay. Thank you. 42:28 42 minutes, 28 seconds Thank you. Reminder to all the participants that you may press star and one to ask a question. 42:38 42 minutes, 38 seconds As there are no further questions from the participants. I now hand conference over to management for closing comments. 42:47 42 minutes, 47 seconds Thank you um to all the participants who took the time to join uh the call. I also wish to thank uh systematics 42:54 42 minutes, 54 seconds especially Vishal for being here and facilitating this call. Good day to all of you. 43:01 43 minutes, 1 second On behalf of systematic institutional equities and vima labs limited that conclude this conference. Thank you for 43:08 43 minutes, 8 seconds joining us and you may not distank your lines. Think.